Activists are pushing BHP to shut down these assets rather than sell them.
The post BHP (ASX:BHP) share price lifts amid activist calls to halt fossil fuel asset sales appeared first on The Motley Fool Australia. –
The BHP Group Ltd (ASX: BHP) share price is marginally down as Bloomberg reports a group of shareholder activists are pushing the multinational mining giant to keep and close its fossil fuel assets rather than sell them.
At the time of writing, the BHP share price is trading at $52.61 – up 0.17%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.04% higher.
Let’s take a closer look.
“Companies…can no longer get away with green-washing”
Market Forces, a group that aids shareholders in pushing companies on climate change, has tabled a resolution for the annual general meeting (AGM) on behalf of 100 small investors to “wind down production (of fossil fuels) in line with international targets” rather than sell them to other businesses.
In a statement, the group said:
By providing a leading example of responsibly managing down fossil fuel assets, BHP can preserve and realise the genuine value that exists in these assets, align with global climate goals, and support its workers in the transition to a decarbonised economy.
BHP has already begun divesting from thermal coal, with the first deals announced in late June. The BHP share price fell 0.87% on the day this news was announced.
Climate activists previously wanted companies like BHP to sell their high polluting assets. They have changed course over concerns buyers will be less transparent than the original owner, according to Bloomberg.
As well, by selling the assets instead of shutting them down, they will still emit greenhouse gases – it just won’t be on the books of the sellers.
Combined, these shareholders make up less than 0.01% of the ownership of BHP’s ASX shares and less than 0.006% of the entire company. BHP is also listed on the London Stock Exchange. BHP’s board will respond to the resolution before the AGM.
BHP share price snapshot
Over the past 12 months, the BHP share price has increased 31.8%. The ASX 200 is up 23.8% over the same time.
BHP has a market capitalisation of around $244 billion.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of May 24th 2021
Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.