River

Climate change

BHP’s climate change targets and goals1

 
To support the net zero transition that the world must make, we will continue to pursue sustainable provision of our products, many of which are essential building blocks of decarbonisation. 

 

For operational greenhouse gas (GHG) emissions (Scope 1 and Scope 2 from our operated assets) we have: 

 

mining site, bridge, employees
In FY2022

achieved  and exceeded our short-term target to maintain operational GHG emissions at or below FY2017 levels

mining
By 2030

a medium- term target to reduce operational GHG emissions by at least 30 per cent from FY2020 levels by FY2030

escondida, employees, mining, view
By 2050

a long-term goal to achieve net zero operational GHG emissions by 2050

For value chain greenhouse gas (GHG) emissions (Scope 3):

We  are  pursuing the long-term goal of net zero Scope 3 GHG emissions by 2050.

Achievement of this goal is uncertain, particularly given the challenges of a net zero pathway for our customers in steelmaking, and we cannot ensure the outcome alone. To progress towards this goal:2

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For direct suppliers

We will target net zero by 2050 for the operational GHG emissions of our direct suppliers.3

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For shipping of BHP products

We will target net zero by 2050 for GHG emissions from all shipping of BHP products.

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For steelmaking and other downstream processes

We will continue to partner with customers and others to try to accelerate the transition to carbon neutral steelmaking and other downstream processes.

Our 2030 goals are to:

  • support industry to develop technologies and pathways capable of 30 per cent emissions intensity reduction in integrated steelmaking, with widespread adoption expected post 2030
  • support 40 per cent emissions intensity reduction of BHP-chartered shipping of BHP products
1 These  positions are expressed using terms that are defined in the 'Glossary' below, including the terms ‘target’, ‘goal’, ‘net zero’ and ‘carbon neutral’. The baseline year(s) of our targets will be adjusted for any material acquisitions and divestments, and to reflect progressive refinement of emissions reporting methodologies. The targets’ boundaries may in some cases differ from required reporting boundaries. The use of carbon offsets will be governed by BHP’s approach to carbon offsetting described at Carbon offsets and natural climate solutions.
2 The targets are referable to a FY2020 baseline year. Our ability to achieve the targets is subject to the widespread availability of carbon neutral solutions to meet our requirements, including low/zero-emissions technologies, fuels, goods and services.
3 ‘Operational GHG emissions of our direct suppliers’ means the Scope 1 and Scope 2 emissions of our direct suppliers included in BHP’s Scope 3 reporting categories of purchased goods and services (including capital goods), fuel- and energy-related activities, business travel and employee commuting.
Electric car
Our climate targets and goals
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Our climate targets and goals

Listen to Fiona Wild (Vice President, Sustainability and Climate Change) discuss BHP's climate targets and goals.

Read about our decarbonisation strategy, targets and goals below.

Discover more

Clear direction for our climate change strategy


Our purpose, our strategy and our position and commitments on climate change provide a clear direction for our climate change strategy. Essential resources we produce are critical for sustainable economic development and decarbonisation and we are committed to supplying them more safely, responsibly and efficiently. Our iron ore and metallurgical coal create the steel that goes into the infrastructure needed for growing cities around the world, including to support the energy transition. Our copper and nickel are required for electrification, such as copper-intensive electric vehicles and nickel-intensive batteries that can reduce the need for fossil fuels and support decarbonisation; and potash enables more efficient and sustainable farming, which we expect will be increasingly important in feeding a growing global population and in meeting the world’s need to decarbonise.
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Our position on climate change

Warming of the climate is unequivocal, the human influence is clear and physical impacts are unavoidable. We're taking action.
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Carbon offsets and natural climate solutions

We work with others to promote the development of carbon market mechanisms, particularly for natural climate solutions.
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Climate change engagement, disclosure and reporting 

Achieving the aims of the Paris Agreement  will require supportive policy across jurisdictions globally.

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Operational (Scope 1 and 2) decarbonisation

Reducing GHG emissions at our operated assets is a key component of our climate change strategy.
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Value chain (Scope 3) GHG emissions

We recognise the importance of supporting efforts to reduce emissions in our value chain.

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Climate change portfolio analysis and capital alignment

Our most recent portfolio analysis indicated that under our 1.5°C scenario, the world would need around twice as much steel and copper, and four times as much nickel in the next 30 years as it did in the last 30.
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Addressing climate risk

Risk management accountability and oversight is an integral part of BHP’s governance.

Our commitments provide a pathway for action


We have laid out a comprehensive series of metrics, targets and goals. We have committed to holding management to account through a direct linkage of climate-related targets and goals to executive remuneration. And we have affirmed our commitment to advocate for public policy in pursuit of global decarbonisation. We will remain alert to technological, political and societal developments that may indicate changes to our signposts and the development of new uncertainties for our portfolio analysis. We will continue to monitor developments and review our approach as appropriate, to respond to evolving approaches to climate change and climate-related disclosures. See the BHP Climate Transition Action Plan 2021 for more information.

A shared global challenge

We also recognise our role in collaborating with others to achieve progress in managing the challenges of climate change. We will seek opportunities to work with partners to develop and commercialise, at scale and acceptable cost, low emissions and negative emissions technologies that are critical to meet the aims of the Paris Agreement. We believe technologies including carbon capture, utilisation and storage (CCUS), direct air capture and the natural climate solutions of reforestation and afforestation have a role to play. We will continue to seek opportunities to collaborate with value chain partners, investors, researchers and governments to work towards global net zero emissions. See the BHP Climate Transition Action Plan 2021 for more information.

Positioning for the future

Ultimately, BHP’s business is founded on providing the resources that communities and nations need to build better lives for their citizens today, and to provide the resources to support the way we will live in the future. We believe that building that future around a stable climate would mean that the potential of many of the resources we produce is maximised, their value should be higher, and the quality of life of hundreds of millions of people around the world would be better. Investing in future facing commodities, such as copper, nickel and potash, creates great opportunities for BHP – it means our strategic goals align with our climate goals – but it also creates challenges. The world needs to increase production of commodities that support the transition and do so ever more sustainably.

Glossary for BHP’s climate change goals and targets

  • Carbon neutral: Carbon neutral includes all those greenhouse gas emissions as defined for BHP reporting purposes.
  • Carbon offsets: The central purpose of a carbon offset for an organisation is to substitute for internal GHG emission reductions. Offsets may be generated through projects in which GHG emissions are avoided, reduced, removed from the atmosphere or permanently stored (sequestration). Carbon offsets are generally created and independently verified in accordance with either a voluntary program or under a regulatory program. The purchaser of a carbon offset can ‘retire’ or ‘surrender’ it to claim the underlying reduction towards their own GHG emissions reduction targets or goals or to meet legal obligations.
  • Greenhouse gas (GHG) emissions: For BHP reporting purposes, GHG emissions are the aggregate anthropogenic carbon dioxide equivalent emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). All are expressed in carbon dioxide equivalent (CO2-e). Nitrogen trifluoride (NF3) GHG emissions are currently not relevant for BHP reporting purposes. 
  • Goal: An ambition to seek an outcome for which there is no current pathway(s), but for which efforts will be pursued towards addressing that challenge, subject to certain assumptions or conditions.
  • Net zero (for a BHP goal, target or pathway, or similar): Net zero includes the use of carbon offsets as governed by BHP’s approach to carbon offsetting described at Carbon offsets and natural climate solutions. 
  • Net zero (for industry sectors, the global economy, transition or future, or similar): Net zero refers to a state in which the greenhouse gases (as defined in this Glossary) going into the atmosphere are balanced by removal out of the atmosphere.
  • Target: An intended outcome in relation to which we have identified one or more pathways for delivery of that outcome, subject to certain assumptions or conditions.
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Climate change governance

Climate change is a material governance and strategic issue and is routinely on the Board agenda, including as part of strategy discussions, portfolio reviews and investment decisions, risk management oversight and monitoring, and performance against our commitments.

Governance
A stack of copper cathodes with the light hitting them.
First carbon neutral copper cathode delivery

BHP is pursuing innovative collaborations to help reduce greenhouse gas emissions in the copper value chain.
Nickel West operations set against a cloudy blue sky
Nickel West takes big steps on pathway to net zero

Nickel West has signed three renewable power purchase agreements (PPAs) to reduce greenhouse gas emissions across the asset.
Two people, both in hi vis, walk towards a wind farm.
Responding to the potential impacts of climate change

BHP’s Escondida mine is responding to the potential physical impacts of climate change using the Intergovernmental Panel on Climate Change’s (IPCC) most severe climate scenario.

Sustainability case studies, organisational boundary & disclaimers, and downloads

BHP Annual Report 2022 pdf 9241549 download-img Sustainability reporting organisational boundary and disclaimers pdf 97477 download-img Límite organizativo de los informes de sostenibilidad y descargos de responsabilidad pdf 27433 download-img BHP ESG Standards and Databook 2022 xlsx 10641635 download-img BHP Modern Slavery Statement 2022 pdf 6760135 download-img BHP’s Climate Targets and Goals pdf 137671 download-img BHP Climate Transition Action Plan 2021 pdf 2677572 download-img BHP Climate Change Report 2020 pdf 3112031 download-img BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology 2022 pdf 385823 download-img BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology 2021 pdf 210140 download-img BHP Scope 1, 2 & 3 Emissions Calculation Methodology 2020 pdf 609426 download-img CDP 2022 Submission Not Graded pdf 903906 download-img BHP Tailings Storage Facility Policy Statement pdf 216318 download-img 2021 BHP Tailings Storage Facility Management Update link-icon FY2019 Church of England Disclosure pdf 902015 download-img Information for social investment partners pdf 264572 download-img Case studies link-icon