BHP’s climate plan divides shareholders ahead of AGM
The big miner has updated its climate plan ahead of an AGM vote to address concerns about its role in decarbonising steelmaking. Some shareholders remain unconvinced by its ambition.
BHP has dodged a potentially explosive situation at its upcoming AGM after two institutional shareholders withdrew a resolution demanding more transparency on its climate transition strategy.
But scepticism lingers, with some shareholders questioning whether BHP’s updated plan — reliant on carbon capture technologies — goes far enough to decarbonise steelmaking and lead the industry on climate action.
“I think in general BHP’s climate plan is reasonably favourable, but BHP is more conservative [than its peers], and ultimately, they would want to bring all the stakeholders along on this journey,” said Jun Bei Liu, portfolio manager at Tribeca Investment Partners, which holds BHP shares.
“I would have expected to see more disclosure on the specific technologies they are investing in to decarbonise steelmaking, and their climate plan should be updated more often than three years and have more up to date thinking to reflect rapid shifts in the technological curve."
