BHP is preparing itself for a backlash over its plans to cut greenhouse gas emissions at next month’s annual shareholder meeting in London, according to a report by FT on Tuesday.
- Glass Lewis, the influential proxy advisor, has advised clients to vote against the BHP’s Climate Transition Action Plan, indicating concerns about its scope and alignment of its targets with the latest climate science.
- The advice of proxy advisor services such as Glass Lewis can be important in votes ranging from executive pay to nominations of board members as their recommendations are followed by passive investment funds.
- The world’s biggest miner is one of the growing numbers of natural resource companies providing investors a “say on climate” vote at AGMs and a way to obtain feedback on their plans.
- The position taken by Glass Lewis will have consequences across the sector as shareholders are unlikely to approve climate plans just because they are being offered a vote on the subject.
BHP has committed to reducing its direct carbon emissions by nearly 30% from 2020 levels over the next ten years with a focus on being net-zero by 2050. BHP down -2.25%