BHP Overcomes Opposition From Some Investors to Climate Plan

(Bloomberg) — BHP Group’s London investors voted to support the biggest mining company’s climate change plan, despite some opponents of the strategy saying it doesn’t go far enough.

Most Read from Bloomberg

BHP’s has said it will target net-zero greenhouse gas emissions from its direct suppliers and the shipment of its products by 2050. But the miner stopped short of extending that to steelmaking customers due to what it describes as the technical challenges facing the industry.

That refusal to set hard targets for its customers’ pollution, which account for 96% of its overall emissions, drew criticism from some investors, including prominent advisory firm Glass, Lewis & Co., which urged shareholders to vote down the plan. Most ignored that advice, with 83% of the BHP’s London investors supporting the plan at the company’s annual meeting on Thursday.

“There’s a need for urgent action, many different views about what that action should look like and you see that coming forward in the way that some parties are reacting to the plan,” BHP Chief Executive Officer Mike Henry said after the meeting in London.

The company’s Australian investor base will vote next month, before full results are released.

The world’s top miners are seeking to reassure investors they can curb their environmental impact amid growing pressure from shareholders and advocacy groups. Scope 3 emissions — created when customers such as Chinese steel mills use the raw materials they mine — are among the hardest to reduce. Miners such as BHP say they can’t give hard targets before the technology to curb that pollution has been proven.

“As our understanding of the underlying opportunities continues to evolve, as technologies continue to evolve, we will refresh the direction we are traveling and the goals and target we’ve set,” Henry said.

Most Read from Bloomberg Businessweek

©2021 Bloomberg L.P.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

If you would like to receive our free newsletter via email, simply enter your email address below & click subscribe.

MOST ACTIVE MINING STOCKS

 Daily Gainers

 Australian Mines Ltd. AUZ.AX +900.00%
 Adex Mining Inc. ADE.V +50.00%
 Casa Minerals Inc. CASA.V +30.00%
 Rare Element Resources Ltd. REE +26.63%
 Astro Resources NL ARO.AX +25.00%
 Tearlach Resources Ltd. TEA.V +21.05%
 MacDonald Mines Exploration BMK.V +16.67%
 GME Resources Ltd. GME.AX +16.67%
 Standard Lithium SLL.V +16.42%
 Black Iron, Inc. BKI.TO +16.28%