Shareholders withdraw BHP resolution after improvements to climate plan
September 26, 2024
Three institutional investors representing $110 billion in assets have withdrawn a shareholder resolution against BHP following improved disclosures in the company’s climate transition plan.
Denmark’s largest pension fund, PFA Pension Fund, Vision Super and the Australasian Centre for Corporate Responsibility (ACCR) filed a resolution calling for detailed disclosures of BHP’s Scope 3 emissions and its plans to reduce them.
The resolution sought greater transparency to allow shareholders to better assess how BHP is managing Scope 3 emissions in the steel value chain and how it is preparing for the global shift towards green steel, which is made without coking coal, by 2025.
The resolution was submitted before the August 27 release of BHP’s climate transition action plan, which the shareholders felt addressed the matters raised in the resolution.
For example, the shareholders said this plan included improved disclosures on steel decarbonisation investment as they provided clear insight into its forward financial allocation over the next five years to support steelmaking greenhouse gas emissions intensity reductions.
The company also disclosed a prioritisation framework for its steel decarbonisation plan.
Naomi Hogan, company strategy lead at ACCR, said: “BHP has clearly heard that investors want greater insights into how it is tackling the critical issue of steel decarbonisation and has taken an important step forward.”
Even though the resolution was withdrawn due to improvements, the shareholders said further clarity was needed on BHP’s plans to achieve net zero Scope 3 steelmaking emissions by 2050.
Rasmus Bessing, co-CIO and head of ESG investments at PFA, added: “Much can still be done, and we look forward to our future dialogues.”
Last Updated: 26 September 2024