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Helge Lund is to step down as chairman of BP as the energy giant slashes green spending and pivots back to oil amid pressure from investors.

The London-based company said Friday it had started a search for a successor to Lund, who would likely depart next year. Lund has chaired BP since 2019 and had championed the company’s push into low-carbon energy such as wind, solar and electric-vehicle charging.

BP is now abandoning its green strategy and re-embracing fossil fuels amid pressure from investors. Those include activist hedge fund Elliott Investment Management, which has taken a stake in the company with a view to pushing for significant changes.

Since Elliott’s stake was first reported, Lund’s position was regarded by analysts as vulnerable due to his support of BP’s now jettisoned low-carbon strategy.

In February, BP said it would boost oil-and-gas production and sharply cut investments in clean energy in a bid to revive its share price, which has lagged behind rivals Shell, Exxon Mobil and Chevron.

The company also said it was targeting $20 billion of asset sales by 2027 to help reduce debt. Divestments could include BP’s lubricants business, Castrol, which the company said it was reviewing with all options on the table.

Having reset the company’s strategy, “now is the right time to start the process to find my successor,” Lund said Friday.

Lund’s decision should be well received by investors and reinforces BP’s decision to change its strategic direction, Jefferies analysts Giacomo Romeo and Kai Ye Loh wrote in a note to clients. His departure also shows the first real impact of Elliott’s involvement, they added.

BP shares were down 2% in morning trading in London..

Write to Adam Whittaker at adam.whittaker@wsj.com