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BHP asks shareholders to reject resolutions against coal lobbying

BHP Group's board recommended shareholders vote against resolutions filed by activist investors seeking to suspend the mining giant's involvement with coal lobby groups such as the Minerals Council of Australia and Coal21 for having policies inconsistent with the Paris Agreement on climate change.

The Australasian Centre for Corporate Responsibility, the Church of England Pensions Board, Australian billionaire Mike Cannon-Brookes' Grok Ventures, and other institutional investors want BHP to stop funding groups that run counter to the company's commitment to reduce emissions. To be valid, the proposal would first need amendments to the company's constitution, which the investors raised in a separate resolution.

The resolutions will be voted on during BHP's annual general meeting on Oct. 17 in London and Sydney on Nov. 7.

BHP said Sept. 5 that it has been reviewing its industry memberships since 2017, when it cut ties with the World Coal Association and worked with the Minerals Council of Australia and the U.S. Chamber of Commerce to develop new climate and energy policy positions. The company noted that it is currently undertaking a similar review that will be published this year, which includes the climate change policies of affiliated industry groups since January 2018.

BHP defended its memberships in such groups, saying that they have the ability to make a positive impact in various issues in the mining sector, something which the investors did not acknowledge in their calls for the resolutions.

"Membership provides BHP with the ability to lead, influence and strengthen standards in relation to various issues, including workplace health and safety, environmental protection, global warming, community engagement, workforce skills and diversity, and measures that support economic growth, which would not be possible to replicate," BHP said.

"Industry has an important role to play in working with governments and other stakeholders to inform the development of an effective, long-term policy framework to respond effectively to the climate challenge," the company added.