BP's chair Helge Lund was re-elected at the company's annual general meeting yesterday, albeit with opposition from many shareholders, writes Callum Mason.

Lund received a near 25 per cent vote against his re-election at the meeting in Sunbury-on-Thames, amid criticism from climate-focused investors.

It follows BP announcing a shift away from investing in renewables in February after some shareholders pushed for a refocus on fossil fuels to boost its profits and share price, which have dropped more than 10 per cent in the past six months.

A group of 48 institutional investors criticised the board for not offering a direct vote on the oil major's revised strategy, while environmental groups fiercely criticised the climate row-back. A resolution for Lund's re-election received a provisional 24.3 per cent of opposed votes, which marks a major rebuttal for a FTSE 100 company.

Lund, who played a key role in setting BP's green agenda, announced he will step down as the company plots a new course, meaning votes against his re-election were largely seen as a protest.

He announced earlier in April that he would probably step down next year. Board member Amanda Blanc, who is in charge of finding Lund's successor, told shareholders that it was in everyone's interest to keep the transition period as brief as possible and that the search for the next chair was under way.

During the 90-minute meeting, board members and executives discussed the new strategy, with a large sign saying "A reset bp" on the set above their seats.

Lund spoke about recent concerns over energy costs and security and "more complex" geopolitical and trade tensions. He added: "The company pursued too much while looking to build new low-carbon businesses."

Chief executive Murray Auchincloss told the meeting: "We were optimistic for a fast transition but that optimism was misplaced.

"A fundamental reset was needed which is exactly what we've done," he added, telling investors that the board's "one simple goal" is to "grow the long-term value of your investment".

In 2020, BP announced some of the most ambitious goals among fossil fuel companies to cut oil and gas production by 40 per cent by 2030 and invest heavily in renewables.

BP has now said it wants to increase its production of oil by 2030.

BP made about £7.2bn in profit last year, which was down a third compared with the year before, after oil and gas prices fell from the highs seen in the wake of Russia's invasion of Ukraine.

Photo: Helge Lund. Photographer: Andrey Rudakov/Bloomberg via Getty Images