BP faces activist investor pressure to ditch clean energy pledges

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Activist investor Bluebell Capital Partners has called on BP to ditch its commitment to cut oil and gas output as well as other keys parts of its strategy to transform the company into a clean energy provider.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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29 Jan 2024

Bluebell, a London-based hedge fund that previously took on Danone and Glencore, wrote to BP chair Helge Lund in October shortly after acquiring a small stake in the London-listed energy major.

In the letter, seen by the Financial Times, Bluebell said BP’s pledge to reduce oil and gas production by 25 per cent by 2030 compared with 2019 levels meant it was destroying shareholder value by moving away from hydrocarbons faster than society.

“This irrational strategy has, quite understandably, depressed the value of BP’s share price,” it said.

BP’s commitment to shrink the size of its oil and gas business remains the only hard target to cut output in the sector.

Launched by former chief executive Bernard Looney in 2020, the strategy was welcomed by environmentalists but has failed to fully convince investors. BP has trailed behind