It has been an intense week for oil giant BP with its high profile annual general meeting in London. Protests both inside and outside the venue in Sunbury-on-Thames erupted over the company's decision to row back from its previous green first renewable energy strategy and re-focus its efforts on oil and gas.
Outside, activists from Fossil Free London and other groups had to be forcibly restrained from entering the meeting with shouts of "murderers and looters" being heard.
Inside the hill chair Helge Lund suffered a historic thumbs down when around a quarter of shareholders voted against his re-election. The result was academic given that Lund has already declared his intention to resign in 2026.
Large investors Legal and General voiced its concern that the decision, following pressure from activist investor Elliott Management, to shift back to oil and gas and away from renewables, had been taken without discussion and even a vote on the new direction. Its move looks even more controversial now that the oil price has declined rapidly given concerns over a global recession caused by President Donald Trump's tariffs tirade.
Lund was a key backer of BP’s tilt towards becoming a green energy giant, which included an ambition to cut its hydrocarbon output by 40% this decade. However, it share price has suffered dropping over 21% in the last 12 months.
Elliott’s campaign has already been successful in forcing BP to overhaul its green strategy and vow to slash spending on renewable energy projects by 70% and sell $20 billion of assets.
Lund told shareholders that BP had “pursued too much while looking to build new low-carbon businesses” but that lessons had been learned.
Chief executive Murray Auchincloss, who was more comfortably re-elected, said BP’s optimism in the global green energy transition was “misplaced".
The wider point highlighted by the BP fracas is how to successfully communicate a change in strategy to your shareholder base or investors.
It seems, if you go along with the Legal and General perspective, that BP has made the shift in response to the thoughts of one rather loud investor and failed to canvas the wider opinion of others. Perhaps they have responded to the weakening in political consensus around climate change, the move in the US by Trump to slash renewable energy spending and permits and ramp up oil and gas licences, and the cost of renewable projects such as offshore wind farms.
These are all valid business reasons for a pivot in policy but the oil giant should have worked harder to take their whole investor base with them.
So, here are some pointers on what businesses should do when looking at strategic change.

1- Engage early with investors in the process. Outline the changes being considered and get feedback. You could even run a form of public consultation - setting out a list of questions regarding the strategic change and seeking responses on what could be a good way forward and what would not. Do investors and shareholders feel there is any need for change?
2- Communication - once the process is started then keep shareholders and investors up to date on progress.This can be via email, on your website and preferably at face to face or online meetings. Set out a timeline so shareholders know when to expect updates. Make the shareholders feel that their views are being listened to.
3- Decision - This could be reached through a vote or by management after considering a wide range of views and opinions. Whatever decision is reached then again make sure that it is explained thoroughly and communicated widely.
4- Review - After the decision has been made put in a process of regular review. How is the strategic shift performing? Are aims, targets and ambitions being met? Again communicate and engage with shareholders to get their views and feedback.