The BP Pensioner Group (BPPG) has called on law firm Freshfields to investigate potential breaches of BP’s code of conduct and values regarding the BP Pension Fund.

BP’s board appointed Freshfields to carry out an investigation into former CEO, Bernard Looney’s, conduct as CEO and BP’s broader culture.

The BPPG had previously written to BP and the pension fund trustees, claiming that decisions had led to a 17 per cent real terms reduction in pensioner income, and potentially breached written policies and assurances made by the company.

“We have also warned that we believe these decisions and actions represent a serious breach of the company’s code of conduct and values,” commented former BP senior manager, Mike Slingsby, on behalf of the BPPG.

“Mr Looney and fellow executives have ridden roughshod over the very real commitments made to staff who served the company loyally for most of their careers.”

The BPPG argued that if BP had agreed to the trustees’ recommended pension increase, it would not have cost the company any additional money in contributions.

It has also told the company and trustees that it intends to appoint counsel and solicitors to pursue a legal pathway to resolve the matter.

It claimed that BP and the trustees had given written and verbal assurances that their policy was to “increase pensions in line with cost-of-living increases wherever possible and provided the fund has sufficient resources”, and that thousands of BP employees had invested their own money into the pension fund as a result.

“Thousands made life-changing decisions based on the policy and assurances made in regard to cost-of-living increases to pensions,” Slingsby stated.

“The executives blocked the recommendation of the independent pension fund trustees to increase pensions by an additional 4 per cent in 2023. And they have repeatedly refused to meet and discuss the issue with pensioner representatives.

“It is because of this that we have been forced to call on Freshfields to investigate.”

Commenting in response, a BP spokesperson said: “BP is aware of difficulties that rises in the cost of living have created for many, including our current and former employees. In May 2023, the BP Pension Fund awarded a 5 per cent pension uplift (as its scheme’s rules permit) - the maximum increase guaranteed under the scheme’s rules.

“The pension was similarly increased by 5 per cent in May 2022. BP's decision not to agree to a request from the trustee for a discretionary additional increase (they requested an increase of an additional 4 per cent on top of the 5 per cent, ie to make a total of 9 per cent, for 2023) was a difficult one that BP took after careful consideration.

“This decision was based on BP’s need to balance the interests of our many stakeholders, including customers, employees, retirees and shareholders across the world. Importantly, many of BP’s retirees are outside the UK, and most are not in inflation-linked final salary pension schemes.”

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