* Aberdeen Standard says lobby groups an obstacle to
progress
* BHP says carrying out review
* Says committed to change, advocates positive engagement
(Updates with Aberdeen Standard comment)
By Barbara Lewis and Simon Jessop
LONDON, Oct 9 (Reuters) - One of BHP's
biggest shareholders Aberdeen Standard Investments on Wednesday
added to pressure for the world's leading miner to cut ties with
lobby groups it says are at odds with the company's pledges on
climate leadership.
Earlier, the Church of England Pensions Board urged
shareholder advisers to review their opposition to a resolution
calling on BHP to withdraw from groups that lobby for policies
inconsistent with global climate change limitation goals.
Aberdeen Standard Investments, which holds around 3.2% of
BHP's stock, said it was taking the rare step of speaking out
ahead of a vote at BHP's annual shareholder meeting in London on
Oct. 17 because of the urgency of tackling climate change, and
after its research found the lobby groups were the biggest
single obstacle to progress.
In a telephone interview, Bill Hartnett, stewardship
director at Aberdeen Standard, said BHP had shown climate
leadership in many ways, but that stance was contradicted by its
membership of some industry groups.
"Failure to implement effective governance of its industry
group lobbying activities serves to undermine the integrity of
BHP's climate leadership position and causes damage to its
reputation," Hartnett said. He did not specify which lobby
groups.
Aberdeen Standard Investments, part of Standard Life
Aberdeen, is a top-five shareholder according to
Refinitiv data.
Shareholders are intensifying pressure on resource companies
because of the urgency of preventing potentially catastrophic
climate change. But in Australia, where many of dual-listed
BHP's shareholders are based, there is strong support for coal
as a historic provider of jobs and wealth.
Industry groups such as Minerals Council of Australia have
repeatedly called for coal friendly policies.
BHP, whose income derives primarily from iron ore and coking
coal, used to make steel, says it is committed to cutting
emissions and making mining sustainable.
It also said it is reviewing its membership of industry
groups and has withdrawn from some of them, but believes
engagement can promote best practice.
Also on Wednesday, the Church of England Pensions Board,
which manages the retirement funds of clergy and other staff,
said investors representing more than 2.1 trillion pounds
($2.57 trillion) of assets under management had indicated they
would support a resolution on lobbying.
The resolution, first made public in September, recommends
"membership of industry associations be suspended where their
advocacy demonstrates overall inconsistency with the Paris
Agreement's goals".
The international agreement in 2015 aims to restrict global
warming and the resolution's authors say lobbying for the use of
coal is inconsistent with this.
The pensions board said proxy voting advisory firms ISS and
Glass Lewis, who guide institutional investors, had not
recommended its clients support the resolution and called for a
meeting with them and the investors to discuss the issue.
Asked to comment, Aaron Bertinetti, Glass Lewis' senior vice
president, research and engagement said climate change was "a
very serious and material issue", but not the only issue that
needed to be considered.
ISS declined to comment.
Last month, BHP said its board would recommend shareholders
oppose the resolution at its annual general meetings in London
next week and in Sydney on Nov. 7.
($1 = 0.8169 pounds)
(Reporting by Barbara Lewis and Simon Jessop; additional
reporting by Carolyn Cohn; editing by Philippa Fletcher and Jane
Merriman)