BHP puts industry lobby groups on notice for climate change and carbon emission
Mining giant promises ‘real time’ disclosure of disputes with industry groups over policy positions.
BHP has put industry lobby groups on notice it will hold them accountable for lobbying on climate change and carbon emission issues, promising “real time” disclosure of disputes with industry groups over policy positions.
The global mining giant has changed its position again on its association with influential mining lobby groups – such as the Minerals Council of Australia, the Business Council of Australia and the Australian Petroleum Production and Exploration Association – shifting ground in the face of a concerted push by activists and climate-focused investor groups to jettison industry groups lobbying against action on climate change, or to use its position to bring them to heel over fossil fuel policy positions.
On Friday, BHP promised to disclose the membership fees it pays to industry associations, publish an annual list of association memberships that have an “active” position on climate policy, and “disclose in ‘real time’ if we determine that one of our material association memberships has materially departed from our Global Climate Policy Standards”.
BHP said it would also push industry groups to publish an “advocacy plan” each year, detailing the group’s key positions and lobbying activities they intend to undertake.
The new positions seem most likely to put BHP at odds with the NSW Minerals Council and APPEA – which have separately argued in public for the development of new gas projects and coal mines as a vehicle for Australia’s economic recovery from the coronavirus crisis.
But BHP said on Friday it had recently reviewed the NSWMC’s public comments – particularly around its advocacy for new planning standards in the state to make it easier to win approvals for new coal mines – and concluded the group had “adhered to its new climate change statement and has not undertaken advocacy that is inconsistent with BHP’s core climate and energy policy positions”.
“If BHP identifies any material deviations in the climate and energy policy advocacy of the NSWMC, the company will immediately review its membership of the association,” the company said.
BHP’s new standards also say the associations must ensure their lobbying is balanced, saying any lobbying that emphasises the cost of climate action without also considering the cost of inaction, could trigger action by the mining major.
The changes were welcomed on Friday by institutional investors associated with pressure group Climate Action 100+, which has played a key role in pressuring miners across the world over their approach to climate change.
Head of sustainable development at AMP Capital, Emily Woodland, said BHP’s new position was a “significant step forward”.
“On behalf of our clients’ long-term interests we appreciate the company’s leadership and ongoing commitment to the Climate Action 100+ engagement and will continue to support BHP in its climate strategy development and implementation,” she said.
Alice Evans, Co-head of Responsible Investment at BMO Global Asset Management said the fund manager was please BHP had moved to respond to investor concerns and interest.
“We warmly welcome BHP‘s new governance approach to preventing misalignment between its climate change position and the way the company represents itself in public policy debates through industry association,” she said.
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