Lothian backs fossil fuel resolutions for Shell and BP AGMs
Author: LAPF Investments | Published: January 22, 2026
Three local authority pension funds have joined an international coalition of investors to file fossil fuel-related shareholder resolutions at oil giants BP and Shell.
Lothian Pension Fund, Falkirk Pension Fund, and the West Yorkshire Pension Fund have all backed the resolutions, led by Dutch shareholder campaign group Follow This.
The campaign group highlighted that its approach had moved away from previous campaigns, which had focused on reducing the companies’ carbon emissions, and instead it is focusing on “financial performance and value creation”.
The campaign group highlighted that its approach had moved away from previous campaigns, which had focused on reducing the companies’ carbon emissions, and instead it is focusing on “financial performance and value creation”.
Investors call for board transparency
“These resolutions are designed to increase shareholder pressure and focus attention on the financial unsustainability of fossil fuel business models,” said Mark van Baal, founder of Follow This. “If declining oil and gas demand undermines shareholder value, boards must be transparent about whether they plan to transition or manage an orderly wind-down.
“Every shareholder needs to know how the board will create shareholder value in declining demand scenarios projected by the International Energy Agency.”
Gillian de Candole, head of responsible investment at Lothian Pension Fund, said: “As an active owner, we expect the companies in which we invest to be transparent about the strategic levers their management can utilise to create resilience and generate shareholder value under a range of plausible scenarios.
“We acknowledge complexity in the shifting regulatory environment and macroeconomic impacts of climate change. This is particularly relevant for companies in the energy sector, where the energy transition requires both capital and time for progress to be achieved. We are engaging with BP and Shell to enhance their strategic resilience.”
Councillor Andrew Thornton, chair of West Yorkshire Pension Fund’s investment advisory panel, said: “Despite massive demand growth for electricity, the rapid addition of renewables means that fossil fuel demand will likely peak before the end of the decade. The UK oil majors must have credible and robust business plans in place to deal with this energy transition.”
A changing approach to engagement
Follow This said its previous shareholder resolutions had centred on reducing emissions and encouraging investment in renewable energy. However, in recent years, support for this approach had “stagnated” – although not before both Shell and BP had pledged to act on emissions and renewables.
“After extensive discussions with institutional investors and analysis of voting rationales, we concluded that a disclosure request focused on financial performance is the most effective way forward,” Van Baal explained. “This approach addresses investors’ core responsibility: assessing value and risk.”
Last year, a campaign from Follow This resulted in 24% of investors voting against the reappointment of BP’s then-chair Helge Lund. Lund has since been replaced by Albert Manifold. The campaign group said this year’s resolutions were designed to build on the momentum of last year’s votes “by addressing risks that boards cannot dismiss as non-financial”.
For both oil companies, the resolution calls for the publication of a report “disclosing the company’s strategy to create shareholder value under scenarios of declining demand for oil and gas”, based on forecasts from the International Energy Agency. The report should include 10-year estimates of capital expenditure on new oil and gas sources, as well as production and sales forecasts.
A version of this article first appeared on LAPF Investments’ sister publication Pensions Expert.
