ISS recommends vote against BP board to scrap climate reporting

Institutional Shareholder Services (ISS) has recommended that investors vote against BP's board proposal to retire certain company-specific climate reporting commitments, a move that has intensified tensions ahead of BP’s April 23, 2026 annual general meeting.

In its client note — seen by Reuters — ISS described the board’s attempt to revoke the two resolutions adopted in 2015 and 2019 as "unprecedented in the UK context" and said the company's argument that those resolutions detract from clarity did not outweigh concerns about removing established disclosures. BP has said the proposal follows extensive engagement with its largest investors and that it will continue reporting under broader frameworks such as the Task Force on Climate-related Financial Disclosures and applicable disclosure regulations, while needing 75% shareholder approval to proceed.

Proxy adviser recommendations often guide a large share of institutional votes, so ISS’s advice is likely to affect the direction of shareholder ballots and could increase short-term volatility in investor sentiment toward BP. ISS also advised against a separate proposal to allow online-only shareholder meetings, raising additional governance and participation questions. Some investor groups have already signalled they may use director votes to express dissent if they remain dissatisfied with the company's approach.

The pushback comes amid an expanded campaign by European climate-focused investors, led by Dutch activist Follow This, which has sought greater disclosure on long-term strategy under declining oil demand scenarios. The debate also reflects wider regulatory and standard-setting shifts: global rulemakers have considered simplifying certain climate disclosure requirements, creating a backdrop of evolving expectations for companies and investors. BP’s recent strategic shift toward increased oil and gas focus and the arrival of CEO Meg O’Neill add governance and capital-allocation dimensions to the dispute.

Market participants say the outcome will hinge on how large institutional holders respond to ISS and whether activist-led proposals or legal challenges proceed. With the AGM on April 23 and possible court actions from shareholder groups if resolutions are excluded, investors will be closely watching votes, director support levels and any management responses that could reshape BP’s reporting and investment priorities.