05/04/2018

BHP Formally Leaves World Coal Association Over Climate Change Stance

AFR - James Thomson

BHP has welcomed the new energy stance from Australia's Mineral's Council. PETER BRAIG
BHP has officially dumped its membership of the World Coal Association due to the lobby group's stance on energy and climate change, but will retain its membership of the United States Chamber of Commerce for now.
The mining giant had made a preliminary decision to leave the WCA in December last year, but provided the lobby group with an opportunity to provide a response on the decision, which centred on BHP's belief there were "material differences" between its stance on climate change and that on the WCA, particularly around issues.
BHP was particularly unimpressed with comments made by WCA chief executive Benjamin Sporton in The Australian Financial Review in September, where he backed the federal government's abandonment of its clean energy target and said Australian banks should continue to lend to projects that underpinned high-efficiency, low-emissions coal-fired power stations.
BHP believes lobby groups such as the WCA and Australia's Minerals Council should be "technology neutral" when it comes to energy policy, and not push coal over other energy sources.
BHP said on Thursday that it "appreciates the constructive approach undertaken by the WCA" in discussions following its initial review but "material difference identified by the review and the narrow range of activities of benefit to BHP from membership" had led to its final decision.
The resources giant continues to have issues with the US Chamber of Commerce's stance on energy and climate change issues, but said it "derives a range of benefits from the broader activities of the Chamber, particularly its advocacy on economic issues such as free trade".
"On the basis of these broader benefits, and in light of the chamber's willingness to engage further on climate and energy issues through an invitation extended to BHP to join its energy and environment committee, BHP has determined to remain a member of the chamber," the mining giant said.

Keeping the pressure
But BHP will keep the pressure on the USCC by requesting it to refrain from policy activity or advocacy in the areas of climate change and energy, and by keeping its membership of the chamber under review.
The final review made no major changes to BHP's stance on its membership of the MCA, beyond saying that it welcomed the release of the association's new energy policy on March 14.
The Minerals Council's energy policy had previously focused on the "importance of access to reliable, affordable energy" but the new stance gave a clear nod to BHP's view that energy policy should encompass what it calls the "trilemma" of reliability, affordability and emissions reduction.
"Reliable and affordable energy is central to our economy," said the MCA in the statement. "Policy measures must deliver reliable and affordable energy at least cost while putting Australia on a pathway to meeting its emissions reduction targets."
BHP said on Thursday that it "welcomes this revised policy position, which is aligned with BHP's approach to climate and energy policy".
"In particular, from a policy perspective, the updated MCA position addresses the two areas identified as material differences by BHP, relating to the energy trilemma and technology neutrality."
The miner also said it rates the "broader benefits provided by its membership of the MCA, relating to health and safety, environment, community, workforce and economics" as high.
BHP's review of its industry association memberships was sparked by a shareholder resolution lobbed at last year's annual general meeting by the Australasian Centre for Corporate Responsibility. The green group also targeted Rio Tinto.

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