BHP (ASX:BHP) share price struggles amid renewed climate pressure

BHP shares are in the red, instead of being in the green.

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The BHP Group Ltd (ASX: BHP) share price is slipping amid calls for the company to strengthen its adherence to the Paris Agreement.

The calls were put forward by the Australasian Centre for Corporate Responsibility (ACCR) on behalf of BHP shareholders as a movement to be considered at BHP’s annual general meeting. The ACCR is a shareholder advocacy group.

Right now, the BHP share price is $51.70, 0.77% lower than its previous closing price.

Let’s take a closer look at the news that might be weighing on the resource company’s share price today.

BHP will consider adhering better to Paris Agreement

The BHP share price is slipping after the ACCR’s request for the company to review its links with lobby groups advocating against the Paris Agreement.

The ACCR is representing shareholders calling for BHP to cut ties with industry groups working against the Paris Agreement’s goals.

After Friday’s close, BHP announced the movement would be put to the board at the company’s annual general meeting.

ACCR’s director of climate and environment Dan Gocher commented on the resolution potentially impacting the BHP share price today:

The advocacy by key BHP industry associations throughout the COVID-19 pandemic has been fundamentally at odds with the Paris Agreement’s goals…

The Australian Petroleum Production and Exploration Association (APPEA) claims credit for the Government’s ‘gas-fired recovery’; the Minerals Council of Australia continues to block meaningful environmental and climate action—as well as having the gall to claim that Australian thermal coal could reduce global emissions; while the American Petroleum Institute has recently opposed the Biden Administration’s electric vehicle policy.

It’s the second time the ACCR has brought shareholders’ concerns regarding the Paris Agreement to BHP’s board.

In 2020 ACCR gained the support of 22.4% of BHP’s shareholders when asking for a similar stance from the company. It called for BHP to influence its industry associations to transition to greener practices. Additionally, the ACCR asked BHP not to accept the pandemic as an excuse for their associates neglecting the Paris Agreement.

According to the ACCR, these expectations haven’t been met. It urges shareholders to vote for its latest proposal.

ACCR’s calls came the same day BHP announced it will forge forward with 2 new oil projects.

BHP share price snapshot

Despite today’s slump, the BHP share price has been performing well on the ASX lately.

It has gained 20% since the start of 2021. It is also 29% higher than it was this time last year.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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