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Nearly one in four BHP investors has backed calls for the mining giant to suspend its membership of influential Australian lobby groups accused of being at odds with goals to tackle climate change.

Defying the recommendation of the board, more than 22 per cent of shareholders at BHP's annual investor meeting in London supported a resolution calling on the miner to resign from industry groups including the Minerals Council of Australia, the Business Council of Australia and Coal21, which face activist accusations of pushing policies inconsistent with the Paris climate agreement's aim of limiting global warming to 1.5 degrees above pre-industrial levels.

These policy positions are expressed through public support for fossil fuels including subsidies for coal-fired power stations in Australia, the development of a new thermal coal basin and the removal of gas drilling bans in parts of the country.

Although the resolution on Thursday night did not succeed, the significant show of support – including by major superannuation funds, investment houses and one of BHP's top-three shareholders, Aberdeen Standard Investments – was described by activists as a "phenomenal result" and a loud warning signal to the company’s board of directors.

"Lobbying counter to the goals of the Paris Agreement has been tolerated for far too long," said Brynn O'Brien of the Australasian Centre for Corporate Responsibility, the activist shareholder group which prepared the resolution.

 

"This is the beginning of the end."

 

A further 7.7 per cent of BHP investors abstained from the vote at the meeting in London. Australian shareholders of the dual-listed company will vote on the resolution when it is heard again at BHP's upcoming annual general meeting in Sydney on November 7.

BHP, the world's biggest mining company, has been a leading advocate among corporate Australia for climate change action, pushing policymakers for a price on carbon and recently setting ambitious goals to combat not only its own emissions but emissions from customers that use its products such as coal and iron ore. But the company has come under growing pressure over its links to lobby groups which have advocated for policies said to be inconsistent with its own positions and the goals of the Paris agreement. Adam Matthews, director of ethics and engagement for the Church of England Pensions Board, which supported the resolution, said it had the backing of investors with more than $US10 trillion ($14.7 trillion) of assets under management.

"Sophisticated, sustained and impactful negative lobbying continues despite promises made by BHP in 2017 that trade bodies should cease lobbying where its members are not aligned," he said. "Sophisticated, sustained and impactful negative lobbying continues despite promises made by BHP in 2017 that trade bodies should cease lobbying where its members are not aligned," he said. "Sophisticated, sustained and impactful negative lobbying continues despite promises made by BHP in 2017 that trade bodies should cease lobbying where its members are not aligned," he said. "Sophisticated, sustained and impactful negative lobbying continues despite promises made by BHP in 2017 that trade bodies should cease lobbying where its members are not aligned," he said.

"Sophisticated, sustained and impactful negative lobbying continues despite promises made by BHP in 2017 that trade bodies should cease lobbying where its members are not aligned," he said."Sophisticated, sustained and impactful negative lobbying continues despite promises made by BHP in 2017 that trade bodies should cease lobbying where its members are not aligned," he said. The Minerals Council of Australia, which supports the Paris goals, described some of the activists' accusations as "misinformed". It said it acknowledged that sustained global action was needed to reduce the risk of human-induced climate change and supported a "measured transition" to a low-emissions economy.The Minerals Council of Australia, which supports the Paris goals, described some of the activists' accusations as "misinformed". It said it acknowledged that sustained global action was needed to reduce the risk of human-induced climate change and supported a "measured transition" to a low-emissions economy.

The Minerals Council of Australia, which supports the Paris goals, described some of the activists' accusations as "misinformed". It said it acknowledged that sustained global action was needed to reduce the risk of human-induced climate change and supported a "measured transition" to a low-emissions economy.The Minerals Council of Australia, which supports the Paris goals, described some of the activists' accusations as "misinformed". It said it acknowledged that sustained global action was needed to reduce the risk of human-induced climate change and supported a "measured transition" to a low-emissions economy.

 

Source : https://www.smh.com.au/business/companies/