BHP to reassess industry ties after climate review

BHP plans to reconsider its relationships with industry groups that have contrasting stances on climate and energy policies by August next year.

The major miner completed its first review in 2017, which put the company’s membership with the World Coal Association (WCA) in doubt.

BHP broke ties with the WCA a few months later, stating there would be little benefit for the company to stay with the organisation.

The company, however, remained a member of the United States Chamber of Commerce, despite conflicting stances on energy and climate change.

Its 2019 review put the spotlight on material differences between the two organisations once again, leaving the Chamber as one of four associations BHP would consider parting ways with.

BHP will also reconsider its relationship with the New South Wales Minerals Council, the Mining Association of Canada and the American Petroleum Institute.

“In relation to the New South Wales Minerals Council, BHP considered the nature of the identified material difference – the relative prioritisation of emissions reductions over other energy policy objectives – to be significant,” BHP stated.

“BHP’s view is that emissions reductions should be fully integrated with energy affordability and reliability in an energy policy framework.”

Though certain investors have put pressure on BHP in respect to its coal mining activities, the company’s shareholders voted against cutting ties with lobby groups during its annual general meetings (AGMs) this year.

“We recognise that expectations continue to move,” BHP stated. “This has been reflected in the support for the industry association resolution at the 2019 AGMs.

“As we continue to examine our overall approach in this area we will further engage with investors widely to understand their perspective on this year’s review.”

The 2019 review compared the organisations’ positions against BHP’s 10 core climate and energy principles.

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