The BHP Group Ltd (ASX: BHP) share price is marginally down as Bloomberg reports a group of shareholder activists are pushing the multinational mining giant to keep and close its fossil fuel assets rather than sell them.
BHP confirmed last month it was looking to exit the oil and gas sector. Woodside Petroleum Limited (ASX: WPL) is the rumoured front runner to acquire these assets globally.
At the time of writing, the BHP share price is trading at $52.61 – up 0.17%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.04% higher.
Let's take a closer look.
"Companies…can no longer get away with green-washing"
Market Forces, a group that aids shareholders in pushing companies on climate change, has tabled a resolution for the annual general meeting (AGM) on behalf of 100 small investors to "wind down production (of fossil fuels) in line with international targets" rather than sell them to other businesses.
In a statement, the group said:
By providing a leading example of responsibly managing down fossil fuel assets, BHP can preserve and realise the genuine value that exists in these assets, align with global climate goals, and support its workers in the transition to a decarbonised economy.
BHP has already begun divesting from thermal coal, with the first deals announced in late June. The BHP share price fell 0.87% on the day this news was announced.
Climate activists previously wanted companies like BHP to sell their high polluting assets. They have changed course over concerns buyers will be less transparent than the original owner, according to Bloomberg.
As well, by selling the assets instead of shutting them down, they will still emit greenhouse gases – it just won't be on the books of the sellers.
Combined, these shareholders make up less than 0.01% of the ownership of BHP's ASX shares and less than 0.006% of the entire company. BHP is also listed on the London Stock Exchange. BHP's board will respond to the resolution before the AGM.
BHP share price snapshot
Over the past 12 months, the BHP share price has increased 31.8%. The ASX 200 is up 23.8% over the same time.
BHP has a market capitalisation of around $244 billion.
