Mining giant Rio Tinto pressures BCA on climate as more members departThe chief executive of mining giant Rio Tinto has pressured the leadership of the Business Council of Australia to step up its climate change advocacy, in another sign of tensions within the membership base of the nation's top corporate lobbying group.
The Age and The Sydney Morning Herald have confirmed Rio Tinto chief executive Jean-Sebastien Jacques has pushed the Business Council of Australia to update its climate change policies. The mining giant is a member of the BCA and Mr Jacques is on its board. Mr Jacques raised the issue with chairman Tim Reed and chief executive Jennifer Westacott, sources who spoke on the condition of anonymity said.
The $100 billion miner joins big-four bank Westpac and telecommunications company Telstra as flagship members willing to question the council's climate change policies, with Telstra threatening to rescind its membership of the body unless the BCA changes its policies.However, Rio has also faced significant pressure from shareholder groups over its climate stance and membership of lobby groups including the Minerals Council of Australia, which it has put on review, and the BCA.
Rio and the BCA both declined to comment.
Numerous members have left the BCA in recent months, including AMP, Santos, JB Hi-Fi, QBE and News Corporation, though none mentioned climate change as the reason for their departure.
In addition, The Age and the Herald can reveal $8.7 billion commercial explosives company Orica has ceased its membership, with a spokesman citing a refocusing of its industry association memberships on "long-term energy affordability and security".
Electricity distribution company Ausgrid also flagged a review of its membership, saying while it was currently a member it "annually reviews all its membership and subscriptions, including the Business Council of Australia".
However, Rio has also faced significant pressure from shareholder groups over its climate stance and membership of lobby groups including the Minerals Council of Australia, which it has put on review, and the BCA.
Rio and the BCA both declined to comment.
Numerous members have left the BCA in recent months, including AMP, Santos, JB Hi-Fi, QBE and News Corporation, though none mentioned climate change as the reason for their departure.
In addition, The Age and the Herald can reveal $8.7 billion commercial explosives company Orica has ceased its membership, with a spokesman citing a refocusing of its industry association memberships on "long-term energy affordability and security".
Electricity distribution company Ausgrid also flagged a review of its membership, saying while it was currently a member it "annually reviews all its membership and subscriptions, including the Business Council of Australia".
In 2018, the BCA drew widespread criticism after describing federal Labor's plan for a 45 per cent reduction in emissions by 2030 as "economy wrecking". The Business Council is also a supporter of the government's controversial use of Kyoto carryover credits.
These stances have prompted activist shareholder groups including the Australasian Centre for Corporate Responsibility to pressure numerous BCA members to leave the organisation, along with other prominent lobby groups such as the Minerals Council of Australia.Mr Cannon-Brookes' criticism followed a call from the BCA for "credible" climate policy earlier this week after Prime Minister Scott Morrison indicated he may look at changes to policy in the wake of Australia's bushfire crisis, though he stopped short of committing to a new emissions target or putting a price on carbon.
The BCA is one of Australia's biggest industry groups, with about 130 members including the big-four banks, Qantas, Facebook, Google, BHP and AGL.
https://www.watoday.com.au/business/companies/mining-giant-rio-tinto-pressures-bca-on-climate-as-more-members-depart-20200116-p53ryr.html
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