BHP urges investors to reject motions cutting links with lobby groups

BHP on Thursday urged shareholders to reject two resolutions that would force the mining giant to cut its ties with industry lobbying groups whose aims contradict the Paris climate change accord.

The company has come under increasing pressure from activist investors to suspend membership of bodies like the Minerals Council of Australia which has informal links to Coal21 - a pro-coal campaigning group.

"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," the company said in a statement on Thursday.

The Australian Centre for Corporate Responsibility (ACCR) filed a shareholder resolution supported by investors with more than $90bn in assets, including the Church of England Pensions Board and ACTIAM, a Dutch fund management group.

Australian billionaire Mike Cannon-Brookes’ private investment vehicle Grok Ventures is also backing the move.

BHP is scheduled to hold an its annual meeting in the UK in October and in Australia in November. The firm conducted a review of its memberships in 2017 and quit the World Coal Association later that year.

“Responding to global warming remains a priority governance and strategic issue for BHP and the company will continue to take action,” BHP said in its latest filing to the London Stock Exchange.