BHP Group Ltd (ASX: BHP) may face renewed pressure over its connections to pro-coal lobby groups at its annual shareholder meeting later this year.
Bloomberg is reporting that Aussie billionaire Mike Cannon-Brookes, founder and CEO of Atlassian (a US-based tech giant) is among backers of a motion demanding BHP sever ties with industry groups that are blocking efforts to reduce global carbon emissions contributing to climate change.
Mr Cannon-Brookes owns Grok Ventures, a private venture capital investment company. Grok is a signatory to the shareholder resolution filed by the Australasian Centre for Corporate Responsibility (ACCR), which states that "Melbourne-based BHP should suspend membership of industry associations that carry out lobbying or other work that's at odds with the Paris climate accord."
Lobby groups such as the Mineral Council of Australia and the Business Council of Australia that BHP is associated with were singled out as "coal lobbyists" and ACCR's director Brynn O'Brien stated that "suspension of memberships where advocacy is inconsistent with Paris is the only sensible way forward."
Mr Cannon-Brookes explained his support by stating that "until BHP stops funding for coal lobbyists, we're extremely sceptical of their environmental or green credentials."
BHP has made an effort to burnish its commitment to climate change action recently with support for the Paris Agreement, emissions reduction targets, a $400 million 'green' investment program and leaving the World Coal Association last year. The company has said it would monitor advocacy by other groups, including the Minerals Council of Australia, following a review of its associational involvement.
However, coal and petroleum are still the third and fourth largest commodities contributions to BHP's earnings base, respectively (behind iron ore and copper), so it will perhaps need to put some more money where its mouth is to convince the ACCR, Mr Cannon-Brookes and others that is indeed serious about fighting climate change.
