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Today we’re following the chronicles of the activist investor, grab your placards and read on!

Black Gold to Green Energy

With corporate annual meetings hitting the calendars, a number of activist investors are taking the opportunity to speak out. Top of the list is energy giant, BP. At it’s annual general meeting, investors called BS on BP’s change in climate plans.

As a reminder, in February, BP scaled back its commitment to cut oil and gas output by 40 per cent by 2030 and is instead targeting a 25% reduction. Their other targets saw similar reductions. Investors have been voicing their concerns ever since.

Despite adjusting their aims, BP did not ballot their shareholders for the change in direction as they did last year. They claim that nothing has really changed but activist investors insist it’s because they know BP would be unable to pass the new strategy. Provisional voting results from the meeting found that 17% of shareholders backed increased alignment with the Paris agreement.

Sounds like corporate doublespeak if you ask the Strawman. It’s like going to your parent-teacher meeting at school and saying: ‘No, teacher you’re wrong’ even though you know you messed up. The other school kids might respect you but everyone else will think you’re an idiot

Beyond BP’s BS

Aside from the direct emitters, a number of financial services firms have also come under fire from investors in the last week for the role they play in financing Big Oil.

It’s no small amount. In fact, the world’s 60 largest banks provided over $673bn of financing for fossil fuels last year. Activist investors aren’t just attacking the emitters but are going for their financiers and their customers - the strategy makes a lot of sense.

We’re seeing the initial pressures come through with 3 in 10 voting shareholders backing a resolution for Goldman Sachs to improve its climate risk transition plan. A similar size of investors at Bank of America and Wells Fargo voted the same way for similar proposals. The investor sentiment is creeping and their message is clear: we know the role you’re playing and we won’t stand for it.

Until next time,

The Strawman