BP’s chairman, Helge Lund, has announced plans to resign following mounting shareholder opposition to the company’s net zero strategy.
Lund, who has led the oil giant since 2019, is expected to step down once a successor is appointed, likely in 2026.
The decision comes after BP was forced to scale back its green transition plans due to pressure from Elliott Investment Management, a powerful New York-based hedge fund.
Elliott acquired a significant stake in BP earlier this year, pushing for changes amid shareholder dissatisfaction with the company’s move away from fossil fuels.
BP’s net zero strategy was initially championed by former CEO Bernard Looney, who was appointed by Lund in 2020. The company aimed to transition from a traditional oil business into an integrated energy company, investing heavily in renewable energy.
However, soaring global oil and gas prices made fossil fuel investments more profitable, creating tension between BP’s green ambitions and shareholder interests. Looney’s sudden departure in 2023, following revelations about undisclosed past relationships with colleagues, added further instability to the company’s leadership.
New CEO Murray Auchincloss initiated a strategic overhaul in response to shareholder pressure, scaling back over £4bn in low-carbon investments and refocusing on fossil fuel production.
The move angered climate activists while failing to significantly boost investor confidence, as BP’s shares continued to underperform compared to industry rivals.
Lund’s resignation follows growing pressure from climate activist groups such as Follow This, which had planned to vote against him at BP’s upcoming annual shareholder meeting.
Mark van Baal, the group’s founder, criticised BP’s recent policy shifts, calling for a new chair with strong climate and energy transition expertise.
BP has now tasked Amanda Blanc, CEO of Aviva and a senior independent BP director, with leading the search for Lund’s successor.
Before joining BP, Lund built a strong reputation in the energy sector. He transformed Norwegian oil company Statoil (now Equinor) into a global player and later led BG Group, the former exploration arm of British Gas.
However, his tenure at BG was marked by controversy over a £25m pay package, which was later revised following shareholder backlash.
As BP enters its next chapter, the company faces ongoing challenges in balancing shareholder demands, climate commitments, and global energy market shifts. The search for a new chair will be a critical step in determining BP’s future direction.
