BHP’s climate change targets and goals1
For operational greenhouse gas (GHG) emissions (Scope 1 and Scope 2 from our operated assets) we have:
achieved and exceeded our short-term target to maintain operational GHG emissions at or below FY2017 levels
a medium- term target to reduce operational GHG emissions by at least 30 per cent from FY2020 levels by FY2030
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
For direct suppliers
We will target net zero by 2050 for the operational GHG emissions of our direct suppliers.3
For shipping of BHP products
We will target net zero by 2050 for GHG emissions from all shipping of BHP products.
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
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.
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.
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.
Operational (Scope 1 and 2) decarbonisation
Value chain (Scope 3) GHG emissions
We recognise the importance of supporting efforts to reduce emissions in our value chain.
Climate change portfolio analysis and capital alignment
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 challengeWe 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.
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.