BHP’s strengthened expectations of industry associations have been welcomed by major institutional investors engaging with the company through the global Climate Action 100+ initiative.
The global mining giant has released a new industry associations expectations policy stating that it will work with its lobby groups to establish public standards and plans for how and what they will advocate on by the end of 2020 and then monitor their activities in real-time for consistency with BHP’s own positions.
BHP has also detailed new Global Climate Policy Standards that serve as a clear direction on the company’s expectations of its industry associations lobbying on climate policy.
● National emissions reduction targets (with increasing ambition over time and a focus on achieving net-zero emissions by 2050) consistent with the goals of the Paris Agreement.
● Policies to support this transition, including market mechanisms, carbon pricing, technology-neutral frameworks and the development of pre-commercial low emissions technologies.
● Broader principles to ensure lobbying is: balanced and not emphasising the cost of action without due considering of the cost of inaction; fact-based; not seeking to exacerbate tensions such as promoting the use of Kyoto carryover credits; and neutral so as not to attack or promote one technology or commodity, such as advocating against renewable energy.
The lobbying activities of industry associations were identified as a key area for engagement between investors and companies in the 2019 Climate Action 100+ Progress Report because of the significant role these groups can play in developing or blocking climate change policy.
Through Climate Action 100+ engagement, lead investors have been working directly with BHP to inform the development of the new industry association standards by setting out investor expectations
Read the full media release.