World鈥檚 number one miner BHP (ASX:BHP) it has decided to leave the World Coal Association (WCA) over differences on climate change, but said it will keep its affiliation to the US Chamber of Commerce, which was also under review.
The miner, which publicly supports the Paris climate accord, first signalled its intent to potentially leave the global coal-lobbying group last year, as part of a to industry groups.
BHP said at the time it wanted to ensure the associations it belonged to aligned with the company鈥檚 climate and energy stance, which includes tackling global warming through emission reductions.
鈥淚n light of the material difference identified by the review and the narrow range of activities of benefit to BHP from membership, BHP has reached a final view that it will cease membership of the WCA,鈥� it .
BHP said the WCA鈥檚 policy conflicted with its view that energy markets should be fuel- and technology-neutral and take into account costs and benefits.
The WCA at BHP鈥檚 decision to leave the group, based on 鈥渙ne claimed material policy difference鈥�. It added that the association supported a that integrates climate and energy policy, which works towards a low emission future.
鈥淏HP is one of the world鈥檚 largest exporters of coal. We have compared our position on energy and climate policies with those set out in BHP鈥檚 Industry Association Review, and believe there are no material differences between the two,鈥澛燱CA chief executive, Benjamin Sporton, said in the statement.
BHP鈥檚 move follows , which last year lobbied for the company to quit associations whose policies did not line up with its stance on climate change.
Under scrutiny
The Melbourne, Australia-based mining giant also considered withdrawing from the US Chamber of Commerce over its rejection of the Paris Agreement and a carbon-pricing policy. But in it said it would remain a member to benefit from the body鈥檚 advocacy on free trade and tax reform.
Coal makes up for about 20% of BHP鈥檚 revenue, but the miner is targeting net zero emissions from its operations in the second half of this century.
鈥淚n particular BHP notes the position the chamber has taken on issues of policy significance including its commentary on the issue of steel and aluminium tariffs in the United States,鈥� it noted.
The firm also said it would work with the Minerals Council of Australia to advocate policies aligned with its own.
The Paris Climate Accord is an agreement within the United Nations Framework Convention on climate change. It set out a global action plan to put the world on track to limiting global warming to well below 2掳C
Australia is among the US trade partners exempted from President Donald Trump鈥檚 contentious tariffs on steel and aluminum imports announced last month.
Coal currently makes up for about 20% of BHP鈥檚 revenue, but the miner is targeting net zero emissions from its operations in the second half of this century.
Rival Rio Tinto (LON:RIO) last week , after completing the sale of more than $4 billion coal assets in Australia.