Major investors withdraw push for more climate disclosures from BHP after improvements
Activist funds have backed down on their push for a vote on better climate disclosures at the BHP annual meeting, after the company’s own report satisfied their demands.
Activist investors Vision Super and Denmark’s PFA Pension Fund have withdrawn a resolution for a vote on better climate reporting by global miner BHP, after the company’s latest Climate Transition Action Plan satisfied their demands.
The two funds, in collaboration with the Australasian Centre for Corporate Responsibility (ACCR), last month put up a resolution to be voted on at the BHP annual meeting, calling for additional disclosures about the company’s Scope 3 emissions from the production of iron ore.
Specifically they wanted to see more detail on the company’s plans for expenditure towards the decarbonisation of the steel value chain over the next three years, and its plan for delivering net zero emissions from iron ore processing by 2050.
The funds were asking for these disclosures to be made before the company’s 2025 AGM, however over the weekend they revealed they would withdraw their resolution.
The group said new disclosures in the CTAP were welcomed.
“BHP’s 2024 CTAP improves disclosures on steel decarbonisation investment, providing clear insight into its forward financial allocation over the next five years to support steelmaking greenhouse gas emissions intensity reductions,’’ they said.
“The company also discloses a prioritisation framework for its steel decarbonisation plan.
“Co-filers look forward to ongoing engagement with the company towards further clarity on BHP’s plans for achieving net zero Scope 3 steelmaking emissions by 2050.’’
Vision Super chief investment officer Michael Wyrsch said BHP had come a long way since 2019, “with a strategy that better fits the world we are moving to’’.
“The company is also more frank about its plans and the challenges it faces,’’ Mr Wyrsch said.
“BHP has heard and addressed the concerns about long-term shareholder value that led us to co-sponsor the resolution, and as a result the resolution has been withdrawn.
“It’s a clear demonstration of the effectiveness of engagement with companies addressing the need to decarbonise the economy.
“However, 2023 was a record year for greenhouse gas emissions and atmospheric carbon now stands at more than 423 parts per million. We all need to do better and quickly.”
BHP on Monday published the notice of meeting for its 2024 AGM, which will be held on October 30.
Shareholders will vote on the election of the entire board, as per BHP’s usual practice, as well as the CTAP and equity grants to chief executive Mike Henry.
BHP said the CTAP includes details of the company’s performance in relation to Scope 1 and 2 emissions from its operated assets, medium and long-term emissions reduction targets, and its position and performance regarding Scope 3 emissions.
“The advisory vote (on the CTAP) is non-binding but the board will take the outcome of the vote and discussion at the meeting into account in continuing to determine how BHP progresses and evaluates the initiatives set our in the 2024 CTAP to advance BHP’s climate change strategy,’’ the company said.
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