BHP pushed on climate change
MINING titan BHP is being pressured by investors to suspend its memberships of business groups, including Australia’s Minerals Council and Business Council, which have been accused by activists of undermining the Paris climate change goals.
Atlassian co-founder Mike CannonBrookes’ private investing vehicle Grok Ventures, Vision Super, Denmark’s MP Pension and the Church of England Pensions Board are among institutional who’ve backed a shareholder resolution filed by the Australasian Centre for Corporate Responsibility (ACCR) to be presented for a vote at BHP’s annual general meeting.
In the resolution to be heard at BHP’s annual meetings in London this month and Sydney in November, the group of shareholders praised the company’s commitment to the goals of the Paris climate accord – reiterated in July by BHP chief executive Andrew Mackenzie – but recommended suspending their membership of the lobby groups.
ACCR director Brynn O’Brien said that as perhaps the most influential company in Australia, BHP’s choice in directing shareholders’ money on policy advocacy had real world impacts.
“We have met with BHP on multiple occasions and we have given them a long list of examples of adverse climate lobbying by their industry associations,” Ms O’Brien said.
“The company does acknowledge that there is a serious issue but has been unable or unwilling to resolve it.”
In his much-publicised speech in July, Mr Mackenzie said the world’s dependence on fossil fuels posed an “existential” risk to the planet, with climate change escalating towards crisis point.
He pledged that BHP would extend its climate change policy to include monitoring and trying to influence its customers’ carbon emissions, with executive remuneration linked to the success of greenhouse gas reduction.
But Mr Cannon-Brookes said until BHP stopped funding for coal lobbyists, critics would continue to be extremely sceptical of the company’s environmental or green credentials.
Energy company Origin faced an investor rebellion last year when almost half of its shareholders backed a motion asking it to review its membership of certain lobby groups, and establish criteria for continued support.
In a letter sent to investors last week, Business Council chief executive Jennifer Westacott stated that the group supported strong action on climate change, and sought to clarify the “misinformation” suggesting BCA was blocking meaningful action on climate change.
“If we are to finally achieve a durable climate policy, we must have an open and honest debate about the impact of the changes required to become a lower emissions economy,” the letter said.
Backing Australia’s 26-28pc emissions reduction target by 2030 under the Paris accord, the BCA said it supported a market-based price signal to limit carbon emissions.