BHP.AX - BHP Group

ASX - ASX Delayed price. Currency in AUD
36.26
+0.25 (+0.69%)
At close: 4:10PM AEST
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Previous close36.01
Open36.00
Bid38.10 x 0
Ask32.64 x 0
Day's range35.94 - 36.39
52-week range24.05 - 41.98
Volume2,458,632
Avg. volume7,178,239
Market cap183.4B
Beta (5Y monthly)1.00
PE ratio (TTM)19.54
EPS (TTM)1.86
Earnings date18 Aug 2020
Forward dividend & yield2.13 (5.88%)
Ex-dividend date05 Mar 2020
1y target est25.45
  • U.S. Cases Rise Most Since May 9; Texas Mask Order: Virus Update
    Bloomberg

    U.S. Cases Rise Most Since May 9; Texas Mask Order: Virus Update

    (Bloomberg) -- U.S. cases jumped the most since May 9 and Florida’s new coronavirus infections rose by a record. Texas ordered residents to wear masks as the state reported its second-most daily infections of the outbreak.The coronavirus may be mutating in a way that may make it easier to spread, said Anthony Fauci, the top U.S. infectious disease researcher. Houston reported a 4.3% jump in intensive-care patients, and may need to tap extra beds in less than two weeks.New York City plans to reopen its public schools in September. The U.S. labor market rebound accelerated in June as broader reopenings spurred hiring, though recent virus pickups put the gains in jeopardy.Key Developments:Global Tracker: Cases pass 10.7 million; Deaths top 518,000Life, liberty and face masks: a virus preys on AmericaRights of American workers could change after virusAn unfestive July 4th as states call off the celebrationsDining out means plexiglass, planters, hand-washing stationsUnderstanding the virus and its unanswered questionsCovid-19 isn’t killing cash. People are hoarding more of itThe post-pandemic hotel looks a lot like a cruise shipSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click VRUS on the terminal for news and data on the coronavirus.Texas Cases Rise Tops 7-Day Average (5 p.m. NY)Texas recorded its second-worst day of the pandemic with 7,915 new cases, according to state health department data on Thursday. The 4.7% growth rate surpassed the seven-day average of 4.2%. That followed Wednesday’s record tally of 8,076 new diagnoses.Virus-related hospitalizations expanded by 6.9% to 7,382, the data showed, as medical facilities in Houston and elsewhere showing increasing signs of strain. Fatalities rose by 1.8% to 2,525. Texas Issues Mask Order (4:30 p.m. NY)Texas Governor Greg Abbott ordered residents to wear face coverings amid a spike in cases in the second-most populous U.S. state.In a reversal of his months-long opposition to such a mandate, Abbott on Thursday said the order applies to all counties with 20 or more virus cases. He also barred people from gathering in groups larger than 10.The Republican governor has been under growing pressure from Democratic mayors and county leaders to crack down or at least grant them authority to mandate masks and other restrictions.U.S. Cases Rise the Most Since May 9 (4 p.m. NY)Coronavirus cases in the U.S. rose by 56,800 from a day earlier to 2.72 million, according to data collected by Johns Hopkins University and Bloomberg News. The 2.1% increase was higher than the average daily increase of 1.7% over the past week and the biggest jump since May 9. Deaths rose 0.6% to 128,439.Florida reported 169,106 cases, up 6.4% from a day earlier, compared with an average increase of 5.6% in the previous seven days.Arizona reported 3,333 new cases, an increase of 4% to 87,425. Deaths increased by 37, to a total of 1,757.California cases rose 1.7% to 240,195 while deaths rose 1.2% to 6,163, according to the state’s website.N.J. Doubles Outdoor Gathering Limit (4 p.m. NY)New Jersey Governor Phil Murphy doubled the state’s outdoor gathering limit, to 500, starting Friday morning. Outdoor religious services and political activities, such as demonstrations, have no cap. Indoors, the crowd maximum remains 25% of a space’s capacity, with 100 people at most.Murphy this week indefinitely delayed lifting a ban on indoor dining, which was to restart on Thursday, citing “knucklehead” non-distancing behavior at New Jersey outdoor establishments and spiking cases nationally. New Jersey reported 13,251 dead who tested positive for the novel coronavirus and another 1,854 fatalities with a probable but untested link.Djokovic, Wife Test Negative (3:15 p.m. NY)Novak Djokovic and his wife tested negative for the coronavirus, his media team said Thursday, 10 days after announcing they had contracted the disease, the Associated Press said.The top-ranked player tested positive after playing in an exhibition series he organized in Serbia and Croatia. No social distancing was observed at the matches in Belgrade and Zadar, Croatia. Both were in self-isolation in the Serbian capital since testing positive, the statement said.Other players to come down with the virus after participating in the matches in Belgrade and Zadar were Grigor Dimitrov, Borna Coric and Viktor Troicki.Serbia Curbs Club, Cafe Hours as Cases Jump (3 p.m. NY)Serbia reported 359 new cases on Thursday, a level last seen in mid-April, with the biggest surge in the capital Belgrade. President Aleksandar Vucic said the government will limit hours for nightclubs and cafes, ordering them to close by 11 p.m. for the next two weeks, and shutting student campuses at universities.The authorities also will impose fines for those not wearing protective masks in closed spaces, and may tighten measures further if necessary, Vucic said.Covid-19 Mutation May Enable Spread (2:10 p.nm. NY)The novel coronavirus is showing some signs of mutating in a way that may make it easier to spread, according to Anthony Fauci, the director of the National Institute for Allergy and Infectious Diseases.Research currently underway suggests a single mutation is emerging that lets the virus replicate better and create a higher viral load, measures that could make it easier to transmit, Fauci said at an online event Thursday hosted by the Journal of the American Medical Association.There is some dispute about the findings and it’s not clear whether people who become infected with a newer variation of the pathogen fare worse than those with the original strain, he said. “It just seems that the virus replicates better and may be more transmissible,” he said. “This is still at the stage of trying to confirm that.”Moderna Sets Human Trial for Vaccine (1:40 p.m. NY)Drug-maker Moderna Inc. said a 30,000-patient trial of its Covid-19 vaccine candidate will start late this month, although a Stats News article earlier Thursday said the work had been expected to begin next week. Shares fell as much as 9.4% after the report. Company spokesman Ray Jordan confirmed to Bloomberg the trial should start in or by late July, which he said is consistent with the window previously communicated. The company is “working through finalizing of sites,” he said.Stats earlier said Moderna is making changes to the trial, which delayed the start date, and investigators told the news site that changes are common.Houston May Tap Surge ICU Beds (12:40 p.m. NY)Houston posted a 4.3% increase in Covid-19 patients in intensive care, and at the current rate of expansion the city’s hospitals will have to tap a second tranche of so-called surge beds on July 14, according to the Texas Medical Center.In the first phase of surge capacity, 5.4% of the 373 beds already are occupied after the normal ICU space was overwhelmed earlier this week, the medical center said on its website on Thursday. The second phase has 504 beds available. To be sure, 62% of the city’s ICU capacity is occupied by non-virus patients.Trump: Three Vaccine Candidates ‘Really Good’ (12:10 p.m. NY)Three vaccine candidates are “looking really, really good” in trials, President Donald Trump said Thursday at a White House event showcasing small businesses. Trump said three more vaccines will begin trials “shortly,” without elaborating.The military is standing by, ready to distribute the vaccines, Trump said. A vaccine will be out “soon,” the president said.GOP Lawmaker Urges End of Task Force (12:35 p.m. NY)An influential U.S. House Republican from Arizona, which is enduring one of the worst Covid-19 spikes, urged President Donald Trump to disband the White House coronavirus task force because he said it’s hindering the economic recovery.Scientists are causing an unnecessary “panic,” Representative Andy Biggs, who represents the suburbs east of Phoenix, said in a statement. “Dr. Anthony Fauci and Dr. Deborah Birx continue to contradict many of President Trump’s stated goals and actions for returning to normalcy as we know more about the Covid-19 outbreak,” said Biggs, chairman of the House Freedom Caucus, a group of conservatives whom Trump often consults.Italy Hospitals Cases Under 1,000 (12:05 p.m. NY)Italy’s hospitalized Covid-19 patients fell to 963 on Thursday, the first time its been under 1,000 since early March, according to the Health Ministry. Hospitalizations peaked at about 29,000 in early April; patients in intensive-care units fell to 82.The country, once the outbreak’s European epicenter, registered 201 new cases, in line with the previous 7-day average of 193, and 30 deaths, down from 21 on Wednesday. Total fatalities are 34,818.Arizona Cases Climb 4% (11:50 a.m. NY)Arizona reported 3,333 new cases Thursday, an increase of 4% to 87,425. The number of deaths increased by 37, to a total of 1,757, the Department of Health Services said.The state registered a record-high 4,878 daily infections and 88 new deaths Wednesday. Vice President Mike Pence visited Arizona the same day but didn’t mention the record figures. He said he was optimistic as the number of “fatalities are declining across the country.”NYC Schools Plan September Reopening (11:15 a.m. NY)New York City plans to reopen the nation’s largest public school system in September with social-distancing guidelines and the maximum number of students at the start, Mayor Bill de Blasio said Thursday.De Blasio said he anticipates some schools will have enough space for all their students, even with new guidelines. Those schools that can’t accommodate all students will operate on a staggered schedule, which will be announced “well in advance,” he said.Everyone will be required to wear face masks and facilities will undergo a deep cleaning each day.Houston Hospitals Tested (11:05 a.m. NY)In Houston and the nine counties surrounding it, virus patients in regular hospital beds outnumber intensive-care cases by almost 3-to-1, according to data from the SouthEast Texas Regional Advisory Council. The figures underscore the pressure on medical staff to care for patients not sick enough to require the most-invasive measures.There were 691 Covid-19 patients in ICU wards Wednesday night in the region including Houston, one of the hardest-hit cities in the U.S. Sunbelt’s accelerating outbreak, according to Setrac data Thursday. That population was dwarfed by the 1,948 virus cases in regular hospital care.Covid-19 patients of all types accounted for 26% of hospitalizations in the region, up from 7.6% at the end of May. Setrac doesn’t publish data on regional ICU or hospital capacity.Nashville Reverses on Reopening (10:45 a.m. NY)Tennessee’s Davidson County, which includes Nashville, reversed course after reporting a one-day record for new cases and will close socially driven businesses such as event and entertainment venues, Mayor John Cooper said in a statement.Restaurants can remain open but must cut capacity to 50% from 75%, he said, noting the rate of new cases fell while bars and eating places were at half capacity. The city -- a popular U.S. tourist attraction -- will operate under the rules for several weeks, he said.Denmark Allows More Travelers (10:40 a.m. NY)Denmark will allow leisure travel from Australia, Canada, Japan, New Zealand, South Korea and Thailand, the Ministry of Foreign Affairs said in a statement. Citizens from the six countries can enter if they have booked at least six nights of stay, the Danish ministry said.Florida Deaths Rise Most in Month (10:30 a.m. NY)Florida reported 169,106 Covid-19 cases on Thursday, up 6.4% from a day earlier, compared with an average increase of 5.6% in the previous seven days. Deaths among Florida residents reached 3,617, an increase of 67, the most in a month, according to a statement that includes data through Wednesday. Daily hospitalizations reached a record 325. The median age of cases increased to 37 from 36 a day earlierAirlines Get U.S. Loans (10:15 a.m. NY)The U.S. Treasury agreed on loan deals with American Airlines Group Inc. and four other carriers, further bolstering liquidity as the virus all-but killed travel demand. American confirmed it will borrow $4.75 billion to weather the travel crisis caused by the pandemic. Frontier Airlines, Hawaiian Airlines, SkyWest and Spirit Airlines also reached deals to borrow from the Treasury.Mnuchin Hints at School Aid in Stimulus (10:20 a.m. NY)Treasury Secretary Steven Mnuchin said the Trump administration is in contact with schools and universities on reopening, and officials are considering help in the next round of economic stimulus to “properly equip” schools for social distancing and to make other adjustments. “In most cases, schools will be able to open safely,” Mnuchin said at the White House.As Cases Surge, South Africa Hub Adds Beds (9:26 a.m. NY)South Africa’s Gauteng province, which includes Johannesburg and Pretoria, will add more than 2,000 hospital beds this month and is considering localized lockdowns and curbs on alcohol as the number of cases surges.The country’s commercial hub has recorded about 3,000 infections a day in the past two weeks, the most nationwide, and hospitalizations and the mortality rate have increased “dramatically,” David Makhura, the province’s premier, said Thursday. Currently 144 patients require ventilators in the region, up from just four a month ago.England’s Infection Rate Has Leveled Off: ONS (9:20 a.m. NY)An average of 0.04% of the community population, the equivalent of 25,000 people, had Covid-19 between June 14 and June 27, the Office for National Statistics estimated. The figure was 0.06% in the previous two-week period and more than 0.3% when the survey started in April. Estimates are based on tests performed on a sampling of people outside of hospitals, care homes and other institutional settings.U.S. June Jobs Rise Above-Forecast 4.8 Million (8:30 a.m. NY)The rebound in the U.S. labor market accelerated in June as broader reopenings spurred more hiring, though filings for unemployment benefits remained elevated last week as coronavirus cases picked up. Payrolls rose by 4.8 million in June after an upwardly revised 2.7 million gain in the prior month, according to a Labor Department report. The unemployment rate fell for a second month to 11.1%, still far above the pre-pandemic half-century low of 3.5%.Wells Fargo Hits Brakes on Student Loans (8:11 a.m. NY)Wells Fargo & Co. is pulling back from student lending as the U.S. surge in coronavirus cases threatens to further disrupt higher education and the broader U.S. economy.The firm, which has been reviewing businesses under new Chief Executive Officer Charlie Scharf, said student loans for the upcoming academic year will be granted only to people who submitted applications before July 1 or to customers who already have an outstanding balance on a prior student loan from the bank.England’s Schools to Reopen From September (7:48 a.m. NY)Restrictions on class sizes will be lifted to allow English schools, colleges and nurseries to fully reopen in September, at the start of the next academic year, Education Secretary Gavin Williamson said. Prime Minister Boris Johnson’s government is trying to persuade schools to return to normal, amid concerns that pupils are falling behind in their education and parents are unable to work effectively while educating their children.Botswana President Quarantines After Aide Tests Positive (7:18 a.m. NY))Botswana President Mokgweetsi Masisi started 14 days of quarantine after an “official closely serving him” tested positive for coronavirus, according to a statement emailed by the Office of the President.Airbnb Restricts Bookings for Some U.S. Guests Under 25 (7:12 a.m. NY)Airbnb Inc. will restrict guests under the age of 25 with less then three positive reviews from booking entire home listings that are close to where they live, the company said in a statement. The measure will support “safe and responsible” travel in the U.S. and follows a similar initiative in Canada that was implemented earlier this year.EU Seeks to Secure Remdesivir Doses (7:01 a.m. NY)The European Union is in negotiations with Gilead on the possibility of reserving a “sufficient number of doses” of remdesivir for the bloc’s member states, a European CommissionGerman Parliament Backs $246-Billion Debt Binge to Spur Growth (6:10 a.m. NY)Germany’s lower house of parliament approved additional borrowing that will raise new debt this year to 218 billion euros ($246 billion) to fund spending to put the economy back on track.The Bundestag also backed the government’s stimulus package designed to boost long-term competitiveness and help achieve climate targets, as the country seeks to emerge from its worst recession since World War II.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Chevron Snaps Up Gas Sales Deal With BHP in Western Australia
    Zacks

    Chevron Snaps Up Gas Sales Deal With BHP in Western Australia

    Chevron (CVX)-run Gorgon and Wheatstone natural gas facilities are expected to churn out 500 terajoules of domestic gas daily for the Western Australian market.

  • Do BHP Group's (ASX:BHP) Earnings Warrant Your Attention?
    Simply Wall St.

    Do BHP Group's (ASX:BHP) Earnings Warrant Your Attention?

    Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...

  • The Zacks Analyst Blog Highlights: VALE, BHP, RIO and FSUGY
    Zacks

    The Zacks Analyst Blog Highlights: VALE, BHP, RIO and FSUGY

    The Zacks Analyst Blog Highlights: VALE, BHP, RIO and FSUGY

  • The Zacks Analyst Blog Highlights: Tesla, BHP and Blackrock
    Zacks

    The Zacks Analyst Blog Highlights: Tesla, BHP and Blackrock

    The Zacks Analyst Blog Highlights: Tesla, BHP and Blackrock

  • What's So Special About These 3 Mining Stocks?
    Zacks

    What's So Special About These 3 Mining Stocks?

    Here are 5 stocks with improving prospects.

  • New Strong Buy Stocks For June 11th
    Zacks

    New Strong Buy Stocks For June 11th

    New Strong Buy Stocks For June 11th

  • The Zacks Analyst Blog Highlights: Apple, Wells Fargo, BHP Group, Amazon.com and Marriott International
    Zacks

    The Zacks Analyst Blog Highlights: Apple, Wells Fargo, BHP Group, Amazon.com and Marriott International

    The Zacks Analyst Blog Highlights: Apple, Wells Fargo, BHP Group, Amazon.com and Marriott International

  • Top Research Reports for Apple, Wells Fargo & BHP Group
    Zacks

    Top Research Reports for Apple, Wells Fargo & BHP Group

    Top Research Reports for Apple, Wells Fargo & BHP Group

  • Iron Ore Prices Surge as Vale Ordered to Shut Itabira Mines
    Zacks

    Iron Ore Prices Surge as Vale Ordered to Shut Itabira Mines

    Concerns over worsening coronavirus situation in Brazil likely to lead to a supply crunch for iron ore as demand in China remains strong have driven iron prices north.

  • Iron-Ore Prices Surge on Impending Demand-Supply Imbalance
    Zacks

    Iron-Ore Prices Surge on Impending Demand-Supply Imbalance

    Iron-ore prices are riding high on increased demand from China and fears of supply disruption as coronavirus cases spike in Brazil.

  • The Zacks Analyst Blog Highlights: Pfizer, Comcast, salesforce.com, Costco Wholesale and BHP Group
    Zacks

    The Zacks Analyst Blog Highlights: Pfizer, Comcast, salesforce.com, Costco Wholesale and BHP Group

    The Zacks Analyst Blog Highlights: Pfizer, Comcast, salesforce.com, Costco Wholesale and BHP Group

  • Top Research Reports for Pfizer, Comcast & salesforce
    Zacks

    Top Research Reports for Pfizer, Comcast & salesforce

    Top Research Reports for Pfizer, Comcast & salesforce

  • Reasons to Hold BHP Group (BHP) Stock in Your Portfolio Now
    Zacks

    Reasons to Hold BHP Group (BHP) Stock in Your Portfolio Now

    Investors can retain BHP Group (BHP) stock in their portfolio, for the time being, on the company's solid prospects.

  • The Zacks Analyst Blog Highlights: Amgen, BHP, Altria, Apple and Target
    Zacks

    The Zacks Analyst Blog Highlights: Amgen, BHP, Altria, Apple and Target

    The Zacks Analyst Blog Highlights: Amgen, BHP, Altria, Apple and Target

  • Top Research Reports for Amgen, BHP, Altria & Others
    Zacks

    Top Research Reports for Amgen, BHP, Altria & Others

    Top Research Reports for Amgen, BHP, Altria & Others

  • Did You Participate In Any Of BHP Group's (ASX:BHP) Respectable 60% Return?
    Simply Wall St.

    Did You Participate In Any Of BHP Group's (ASX:BHP) Respectable 60% Return?

    It hasn't been the best quarter for BHP Group (ASX:BHP) shareholders, since the share price has fallen 20% in that...

  • Is BHP Group (ASX:BHP) A Risky Dividend Stock?
    Simply Wall St.

    Is BHP Group (ASX:BHP) A Risky Dividend Stock?

    Could BHP Group (ASX:BHP) be an attractive dividend share to own for the long haul? Investors are often drawn to...

  • A Sliding Share Price Has Us Looking At BHP Group's (ASX:BHP) P/E Ratio
    Simply Wall St.

    A Sliding Share Price Has Us Looking At BHP Group's (ASX:BHP) P/E Ratio

    To the annoyance of some shareholders, BHP Group (ASX:BHP) shares are down a considerable 32% in the last month. Even...

  • It Might Be Better To Avoid BHP Group's (ASX:BHP) Upcoming Dividend
    Simply Wall St.

    It Might Be Better To Avoid BHP Group's (ASX:BHP) Upcoming Dividend

    Readers hoping to buy BHP Group (ASX:BHP) for its dividend will need to make their move shortly, as the stock is about...

  • Is BHP Group's (ASX:BHP) 20% ROE Better Than Average?
    Simply Wall St.

    Is BHP Group's (ASX:BHP) 20% ROE Better Than Average?

    While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...

  • Here's What BHP Group's (ASX:BHP) ROCE Can Tell Us
    Simply Wall St.

    Here's What BHP Group's (ASX:BHP) ROCE Can Tell Us

    Today we'll look at BHP Group (ASX:BHP) and reflect on its potential as an investment. Specifically, we'll consider...

  • The Big Dirty Secret of the World's Biggest Companies
    Bloomberg

    The Big Dirty Secret of the World's Biggest Companies

    (Bloomberg Opinion) -- Lots of companies talk a good game about cutting planet-heating greenhouse emissions but their disclosures and targets have tended to focus on the emissions over which they have direct control and which are easiest to measure. That’s fine in an industry such as cement, where the bulk of carbon pollution occurs during the production process. From an environmental perspective these direct, or “Scope 1,” emissions are the main problem caused by these particular companies.But the approach falls down in companies working in oil, mining, carmaking, finance, and even fashion, because oftentimes most of their carbon footprint is contained in the products they sell or help finance — not their own operations.An oil giant can boast all it likes about how it’s reduced gas flaring; if car drivers are still filling up with its gasoline, the planet will keep getting hotter. The same goes for an iron ore producer that touts how its mining trucks are incredibly fuel efficient but whose main product is the basis for steel production. Luxury goods suppliers may run the greenest workshops imaginable, but use fabrics and materials that are deeply damaging to the planet.In the past, so-called “Scope 3” emissions — the pollution contained in products sold to customers or in goods and services purchased from suppliers — either weren’t calculated or were seen as someone else’s problem. Thanks to pressure from institutional investors and activists, plus leadership from a few enlightened chief executives, corporate attitudes about this subject are evolving fast. “Scope 3 is the elephant in the room,” Mark van Baal of investor advocacy group Follow This told the Norwegian oil major Equinor ASA’s annual meeting last year.The new impetus is welcome because unless companies try to reduce the environmental damage of their products and purchasing decisions, efforts to limit catastrophic climate change will fail. At the World Economic Forum in Davos last week the bosses of some of the world’s biggest oil producers debated setting targets for Scope 3 emissions, which typically make up about 90% of their carbon footprint. BP Plc’s new boss Bernard Looney is poised to abandon his predecessor Bob Dudley’s opposition to targeting customer emissions, according to Reuters. Royal Dutch Shell Plc, Repsol SA and Total SA have already set Scope 3 targets.In mining, Rio Tinto Plc argued it had “very limited control” over customer emissions but later bowed to pressure by promising to work with its customer (and China’s top steel producer) Baowu Steel Group on lowering the steel sector’s emissions. BHP Group Ltd. and Vale SA have gone further by promising to set goals for Scope 3 emissions. In BHP’s cases these are almost 40 times greater than its direct pollution.The European Union’s new guidelines on climate reporting also recommend that large companies disclose customer and supplier emissions. Banks and insurers, whose direct emissions are typically pretty negligible, should focus on their counterparties’ emissions, the guidelines say. Unfortunately, this is not yet legally binding.Reluctance to target this stuff is hardly surprising because the numbers can be huge. Volkswagen AG acknowledged last year that its vehicles are responsible for about 2% of all the CO2 produced by humans.(3)Among the largest Scope 3 polluters are companies that the public probably don’t immediately think of as big climate sinners. It’s no surprise that Shell and Petrobras make the list, but I hadn’t thought about Cummins Inc., which sells truck engines and industrial power generators, Nexans SA, whose cables transport electricity and data, and Daikin Industries Ltd, which builds air-conditioning units.I’m not knocking these companies; at least they’re disclosing these emissions and some are setting targets to reduce them. Cummins plans to reduce absolute lifetime emissions from newly sold products by 25% by 2030, for example.Calculating the emissions from sold products is a pretty complicated exercise too. ThyssenKrupp AG’s massive Scope 3 emissions include those contained in the steel in the cars we drive around, the cement plants its factory construction unit helped build and the elevators in office buildings. Daikin has to consider the probable lifespan of its air conditioners, their energy consumption and what kind of electricity they’re powered by, plus probable leakage rates of planet-heating refrigerants.Fortunately there’s no shortage of organizations and methodologies to help compile these data. (Michael Bloomberg, founder of Bloomberg News and its parent Bloomberg LP, chairs the FSB Task Force on Climate-related Financial Disclosures).Regrettably, not all large manufacturers have seen the light through the smoke. The copious sustainability reports of some companies still don’t spell out the total emissions of the products they sell. Volvo AB told me there’s no globally harmonized standard on how to calculate and disclose Co2 from heavy duty trucks, but that it’s evaluating opportunities to report on this in future. Daimler AG, which wants a completely CO2 neutral truck fleet in key markets by 2039, plans to start disclosing Scope 3 emissions for trucks in its next sustainability report.(1) You know something’s up when it takes a hedge fund to tell a company to clean up its act. The shortcomings in aircraft maker Airbus SE’s Scope 3 emissions reporting were highlighted in a critical letter late last year from Chris Hohn’s TCI Fund Management, the world’s most profitable activist fund. Airbus and rival Boeing have committed to halving the aviation industry’s net emissions by 2050. It would help focus minds on that urgent task if they fully accounted for their own role in flight pollution.(2) If Shell can do it, why not them?(1) Like other truck manufacturers, VW doesn't report Scope 3 emissions for heavy trucks but made the estimate based on its market share andthe truck sector's contribution to global emissions (plus its carbon footprint from cars)(2) It already does so for cars.(3) Boeing's environment reportonly counts Scope 3 emissions from business travel. Airbus has urged the aviation sector to develop a common methodology for Scope 3 emissions to aid consistency in reporting.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    The Big Problem Haunting Top Iron-Ore Miner Isn’t So Easy to Fix

    (Bloomberg) -- In the weeks and months after Vale SA’s deadly dam disaster, some of Brazil’s biggest investors snatched up shares in a bet they’d bounce back and then keep rising.A year later, the gamble paid off, but with a caveat: The stock rebounded, but Vale’s reputation hasn’t -- and that’s the problem. While the world’s largest iron ore producer, like all miners, has struggled with plenty of environmental issues in the past, there’s no denying that a company’s green credentials suddenly matter now more than ever.“With sustainability growing in importance by the day for the global investor, my big concern now relates to the long term and whether Vale is going to be able to change its image,” said Leonardo Rufino, portfolio manager at Pacifico Gestao de Recursos. “Because if it can’t, the risk is that Vale ends up being a cheap stock forever.”Pacifico, along with SPX Capital and Vinland Capital, were among asset managers that scooped up Vale stock after the dam break in January 2019 wiped out a quarter of the company’s market value. Although Tuesday marked an important milestone for Vale as shares closed at their highest since the accident, a look at the miner’s valuation tells a different story. Vale still trades at a discount of at least 20% to peers BHP Group Ltd. and Rio Tinto Plc, based on enterprise-value-to-expected-Ebitda ratio.Exposure to Vale shares and holding company Bradespar SA at Pacifico Acoes, a fund that Rufino helps manage, rose to about 12% of assets at its peak from 8% around the time of the dam break. The fund has since sold its position in Bradespar, but Vale is still among its top five holdings.Room to RunIf all else were equal, Vale’s fundamentals would signal that the stock has more room to run, Rufino said, adding that he still believes further gains are in its future. The company’s generating cash, and analysts from Bradesco, Scotiabank and Goldman Sachs see a good chance of dividends being reinstated sometime this year. Meanwhile, Rufino says the nuts-and-bolts fallout from the Brumadinho disaster, including potential liabilities and the hit to output, is “mostly priced in.”Vale has taken several steps to clean up its image in the aftermath. It replaced its chief executive officer, committed to decommissioning the type of dams that faltered and built a treatment plant to clean up polluted water. At investor meetings last month, it focused on green initiatives, including projects to help it become carbon neutral, and also launched an ESG website. The company declined to comment for this article.“The company’s been careful, taking a lot of provisions and focusing on handling the problem,” said Rufino, who helps oversee 2.2 billion reais ($530 million) in assets at Pacifico. “A discount to its global peers seems unjustified.”Vale shares were little changed at mid-day in Sao Paulo, trailing the 0.4% advance for Brazil’s benchmark Ibovespa, amid news of a fresh blow to output, albeit a limited one. Vale said Thursday that it halted operations at the newly acquired Esperanca mine near Brumadinho. The move was a precautionary step to improve safety conditions. Esperanca produces about 1 million tons of iron ore a year, the company said in note.An Urgent NoteBut as the world grows increasingly sensitive to environmental issues, money managers are plowing more and more funds into investments that fulfill environmental, social and governance -- or ESG -- standards. The Church of England dumped Vale after Brumadinho’s tragedy and blocked investments in the miner through an ethical exclusion process. And BlackRock, which upped its stake in Vale to above 5% as of December, struck an urgent note in its annual letter to corporate executives: Climate change will upend global finance sooner than they might think. CEO Larry Fink said his firm will take steps to address the issue across the thousands of companies in which it invests.Brazil’s own reputation isn’t helping Vale. President Jair Bolsonaro has questioned the need for action to combat global climate change and scoffed at his counterparts in Europe who called for him to do more to end the burning of the Amazon.That backdrop may continue to hinder any Vale upside.“At some point,” Rufino said, “we need to see a multiple expansion.”(Updates with new output halt, stock move in 9th paragraph.)To contact the reporters on this story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net;Sabrina Valle in Rio de Janeiro at svalle@bloomberg.netTo contact the editors responsible for this story: Daniel Cancel at dcancel@bloomberg.net, Jessica Brice, Brendan WalshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.