BHP

InfluenceMap Score
D+
Performance Band
56%
Organisation Score
47%
Relationship Score
Sector:
Metals & Mining
Head​quarters:
Melbourne, Australia
Official Web Site:
Wikipedia:

Climate Lobbying Overview: BHP appears to have mixed engagement on climate policy, albeit with limited engagement on specific regulations in 2021-22. The company is supportive of ambitious climate action in its top-line messaging, but continues to support a sustained role for fossil fuels in the energy mix. At the same time, the company remains a member of many highly oppositional industry associations, including the Minerals Council of Australia.

Top-line Messaging about Climate Policy: BHP appears broadly supportive of ambitious climate action in its top-line messaging. In its 2022 Annual Report, published in September 2022, the company appeared to recognize the need for urgent action to combat climate change, and supported the goals of the Paris Agreement. BHP also supported reaching global net-zero greenhouse gas emissions but did not specify a date by which this should be achieved. In its Notice of AGM 2022 release, BHP also appeared to support achieving greenhouse gas (GHG) emissions reductions in line with 1.5°C target. BHP also appeared to support the US reaching its nationally determined contributions, as stipulated in the Paris Agreement, in its Q4 Lobbying Report published in January 2022.

Engagement with Climate-Related Regulations: BHP appears to have limited its transparent engagement with specific climate policies in 2021-22, however it appears to have increased its engagement in September 2022. In a September 2022 consultation response to Australian Safeguard Mechanism Reforms, BHP expressed mixed positions on reforms to the policy, expressing support for removing headroom from the policy, and did not support free allocations or adjusted baseline decline for emissions-intensive, trade-exposed industry. BHP did however advocate for the use of international offsets alongside SM credits and supported the extension of multi-year monitoring periods. In the same consultation response, BHP also supported an increase in Australia's GHG emissions reduction target from 28% to 43% by 2030. BHP has disclosed some positive high-level positions on climate policies, although with limited details on the activities it undertakes to advocate these positions. In its 2021 Climate Transition Action Plan, published in September 2021, BHP disclosed its opposition to the Trump administration’s rollback of methane emissions regulation. In the same report, BHP appeared to support the development of international and sub-national carbon market mechanisms.

Positioning on Energy Transition: BHP appears to support a continued role for fossil fuels, despite top-line support for the energy transition. In an October 2022 interview at the Financial Times Mining Summit, BHP CEO Mike Henry opposed Queensland’s decision to increase royalties on the state’s coal mining sector. Additionally, in a September 2022 Australian Financial Review article, Henry stated that an Australian energy transition needed to be “grounded in reality”, and claimed that Australia does not have the same natural advantages in renewable energy compared to other regions. In April 2021, the Sydney Morning Herald reported that BHP directly advocated the Australian federal government to retain the existing fuel tax credit system, which is a form of fossil fuel subsidy. In contrast, in its 2022 Annual report, published in September 2022, BHP supported the decarbonization of the steel and maritime shipping industries. Similarly, in a July 2022 press release, CCO Vandita Pant supported the decarbonization of the steel industry.

Industry Association Governance: BHP has disclosed annual reviews and updates of its industry association memberships from 2017-2020, but has not published a review in 2021-22. BHP’s 2020 review outlined detailed actions to be taken at four ‘partly aligned’ associations: American Petroleum Institute (API), Mining Association of Canada, NSW Minerals Council, and US Chamber of Commerce. However, BHP retains membership to these organizations (bar API) as well as other highly oppositional groups including and Minerals Council of Australia.

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q4 2022.

A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.

QUERIES
DATA SOURCES
21NA2122
12NS121NS
02NS0NS1NS
11NS1122
0NA0NANANANS
0NS0-2-20NS
11001NSNS
NSNS1NSNSNSNS
NSNSNS-2-2-2NS
11-1000-1
1101NSNSNS
1NS1NANANANS
1NSNSNSNSNSNS
Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
54%
 
54%
 
51%
 
51%
 
38%
 
38%
 
51%
 
51%
 
53%
 
53%
 
47%
 
47%
 
45%
 
45%
 
35%
 
35%
 
36%
 
36%
 
48%
 
48%
 
77%
 
77%
 
28%
 
28%
 
67%
 
67%
 
45%
 
45%
 
44%
 
44%
 
67%
 
67%
 
41%
 
41%
 
29%
 
29%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.