Daily Management Review

Shareholders Of BHP Demand Consistent Climate Policy


Activist shareholders of BHP Group have demanded that the company includes climate sensitivity analysis in its financial statements beginning in 2023, as well as consistency in climate policy, according to the world's largest listed miner and an advocacy group on Tuesday.

The demands are part of resolutions submitted to BHP on behalf of shareholders by the Australasian Centre for Corporate Responsibility (ACCR), which asks the miner to "proactively advocate for Australian policy settings that are consistent with the Paris Agreement's goal of limiting global warming to 1.5°C."
Shareholders also requested that beginning in fiscal 2023, BHP's financial statements include a climate sensitivity analysis, including a scenario aligned with limiting warming to 1.5°C.
The resolutions come as companies around the world face increasing pressure to adopt climate plans, with votes closely watched even though the resolutions are non-binding. BHP aims for net zero emissions by 2050, but it has faced shareholder backlash over concerns that some of its long-term plans are vague. more info
The miner, for its part, has refrained from setting a target due to uncertainty about how technology will evolve.
"BHP remains a member of industry associations that have a toxic influence on Australia's climate policy. This resolution does not let BHP off the hook from also having to constrain the advocacy of those associations," said Harriet Kater, Climate Lead (Australia) at ACCR.
"BHP needs to move beyond its industry associations by positively advocating for ambitious policy," they said.
The resolutions will be presented for consideration at BHP's annual general meeting in 2022.