(Alliance News) - BP PLC late Wednesday said it would "engage with shareholders" on strategy after a proposal calling for greater action on climate change was defeated at its annual general meeting.
BP said 79% of investors voted against a resolution proposed by shareholder group Follow This, which encourages oil companies to reduce their emissions. BP noted 21% of votes were in favour of the proposal.
The Dutch activist group sought to make BP set targets that are aligned with the Paris climate goals, in opposition to a recommendation by the board, but votes fell short of the 75% threshold needed to pass.
BP had said it already has a Paris-consistent strategy that will cut the carbon intensity of products it sells in half by 2050.
"We note that Resolution 13, a shareholder resolution on climate change targets, that the board of directors recommended not to approve, has been rejected by shareholders. However, we recognise that some shareholders (20.65% of votes cast) chose to support this resolution.," BP said.
"We will continue to engage with shareholders on our strategy, targets and aims so as to ensure their views are fully understood. We will publish an update on this engagement, in accordance with the UK Corporate Governance Code, within six months of the 2021 AGM," the oil major added.
The stock closed up 3.5% at 315.30 pence, the best performer in the FTSE 100 on Wednesday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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