Resources giants face investor climate heat
BHP, Whitehaven Coal and Origin Energy are all facing pressure on climate initiatives from shareholders.
A host of Australia’s biggest resources companies face renewed pressure to detail strategies for reaching net zero emissions by 2050 ahead of annual shareholder meetings with Origin Energy committing to give investors a non-binding vote on its climate change reporting.
A shareholder resolution was filed with BHP by the Australasian Centre for Corporate Responsibility calling for the mining giant to strengthen its review of industry associations to ensure that lobbying is consistent with the Paris climate Agreement.
“The advocacy by key BHP industry associations throughout the Covid-19 pandemic has been fundamentally at odds with the Paris Agreement’s goals: demands for government support and subsidies, fast-tracked approvals for new fossil fuel developments, and an aggressive deregulation agenda,” the ACCR said, referencing lobby groups including the Minerals Council of Australia.
“This is nothing short of predatory, opportunistic behaviour – seeking to make the most of the economic crisis brought on by the pandemic.”
BHP’s board will respond to the issue and a primary resolution to change the company’s constitution as part of its annual general meeting notice.
Whitehaven also said on Friday it had been asked how its spending and operations will be managed in line with global climate change targets.
Activist group Market Forces, which filed the resolution, said Whitehaven’s current plans could see production of up to 51m tonnes beyond 2040, by which point coal power needs to have been phased out completely to keep global warming to 1.5 degrees.
Whitehaven said long-term demand for its high quality coal helps customers’ own plans to cut emissions because of the improved efficiency of its supplies.
Meanwhile Origin Energy will allow shareholders to make a non-binding vote on its climate change reporting at its 2022 general meeting, following a similar move by AGL Energy announced two weeks ago.
Chairman Scott Perkins said the company is continuing to plan for a low carbon future, and is continuing to work on a more ambitious emissions reduction target.
“Origin has been planning for a low carbon future for a long time and has included climate strategy, climate change risk, and scenario analysis in our reporting for many years,“ he said.
“The non-binding, advisory vote will complement the continuing conversations we are having with our shareholders and stakeholders about the risks and opportunities climate change presents for the business.”
More Australian companies have been handing investors a non-binding advisory vote on their climate change reports following pressure from hedge fund billionaire and activist Chris Hohn.