BHP share price: Group urges investors to vote down resolutions

on Sep 5, 2019
Updated: Mar 11, 2020
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BHP Group (LON:BHP) has urged investors to vote down resolutions which would force it to cut ties with industry lobbying groups whose goals are not aligned with those of the Paris agreement. The move comes ahead of the mining giant’s annual general meetings (AGMs).

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BHP’s share price has fallen deep into the red in today’s session, with the stock going ex-dividend. As of 13:45 BST, the shares were changing hands 4.06 percent lower at 1,733.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.75 percent lower at 7,256.76 points.

BHP turns to investors

BHP announced in a statement today that it was urging investors to reject resolutions recommending that the mining giant suspend memberships of industry associations which undertake lobbying relating to climate or energy policy, and whose record of advocacy since January last year is inconsistent with the goals of the Paris Agreement.

Proactive Investors noted in its coverage of the news that shareholders including the Church of England pension fund and the Australasian Centre for Corporate Responsibility (ACCR), had proposed the resolution this week ahead of the group’s AGM in Sydney on November 7, and in London on October 17.

The FTSE 100 group meanwhile noted that it supports the Paris Agreement and that it was conducting a review of industry associations.

Analysts on blue-chip miner

Deutsche Bank lifted its stance on the Anglo-Australian miner from ‘sell’ to ‘hold,’ while trimming its target on the BHP share price from 1,900p to 1,750p, while UBS, which is ‘neutral’ on the shares, set a valuation of 1,900p on the stock last week. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 1,805.38p.

BHP updated investors on its performance last month, reporting that it had made its largest annual profit in five years and announcing a record final dividend.

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