Ethos, together with an international coalition of leading socially responsible investors, led in the USA by Christian Brothers Investment Services (CBIS), will oppose the BP annual report and accounts as well as certain members of BP's Safety, Ethics and Environmental Assurance Committee at the company's upcoming annual meeting to be held on 14 April 2011.
Following the blowout of the Deepwater Horizon platform and the unprecedented oil spill in the Gulf of Mexico in April 2010, a group of socially responsible investors engaged in dialogue with BP with the expectation that substantive disclosure would be provided on how risks will be managed and mitigated and the steps the company is taking to lead to a low carbon economy. While identifying many risks and challenges, BP's recently released annual report provides shareholders with an insufficient level of detail to determine how the company's safety and risk management function has been strengthened; how it is being evaluated, managed, and mitigated; how the board will oversee it; and how progress is to be assessed and measured. Investors have also raised concerns over BP's lack of information on transitioning to a low-carbon economy, which the annual report states is central to the company's long-term strategy. The company has not provided detailed information about this transition or explained what initiatives it will undertake to begin moving towards this goal.
In light of all the above, Ethos will oppose BP's 2010 annual report and accounts and the re-election of certain members of BP's Safety, Ethics and Environmental Assurance Committee. Investors aim at sending a strong signal to the management that they hold BP accountable for the gulf disaster and are expecting more detailed information about the company's short and long term strategy, as well as its role in averting catastrophic climate change.
For more information, please visit www.cbisonline.com