River

Climate change

GHG emissions

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 Climate Transition Action Plan 2021 for more information. 

A shared pathway to action

BHP’s climate change strategy contains a series of targets and goals. We hold senior management accountable for progressive implementation through a direct linkage between these targets and goals, and executive remuneration. 

We are committed to advocate for public policy in pursuit of global. We 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 continue to monitor developments and review our approach as appropriate, responding to evolving approaches to climate change and climate-related disclosures. 

We also recognise our role in collaborating with others to achieve progress in managing the challenges of climate change. We continue to seek opportunities to collaborate with value chain partners, investors, researchers, and governments to develop and commercialise, at scale and acceptable cost, low emissions and negative emissions technologies. 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 in working towards global net zero GHG emissions.  

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, and the quality of life of hundreds of millions of people around the world would be better. Investing in future-facing commodities 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.  

For more information, refer to the pages above about our position, our climate change strategy and its implementation, and our climate-related financial disclosures, as well as our Climate Transition Action Plan 2021.

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. 

Governance and oversight, engagement, disclosure and performance  

  • Governance and oversight 

    Climate change is a material governance and strategic issue for BHP. The Board’s oversight of and management’s role in assessing and managing climate-related risks (threats and opportunities) are explained in this diagram.

     

    The Board and its Committees and management regularly consider climate change-related items, including as part of discussions and decisions on performance, strategy, risk, sustainability and executive remuneration. 

     

  • Engagement 

    Achieving the aims of the Paris Agreement will require supportive policy across jurisdictions, globally. We believe BHP can best support policy development by ensuring we meet our own climate targets, goals and strategies, continuing to make the case for the economic opportunities arising from the energy transition, and focusing on those policy areas where we are likely to have the greatest ability to influence change. 

     

    Policy advocacy  

     

    We have an important role to play in helping the world achieve the aims of the Paris Agreement. Part of this involves taking concrete steps to progress towards achieving our operational and value chain GHG emissions targets and goals. It also involves engaging with governments and the other stakeholders in pursuit of policies that support a global transition to net zero.   

     

    We engage with governments on climate policy both directly through our own advocacy and indirectly through our industry association memberships. More information on our approach to direct advocacy is available here, while we detail our approach to indirect advocacy here

     

    Shareholder engagement  

     

    BHP uses a range of formal and informal communication channels to seek to understand and take into account the views of shareholders.  

     

    Throughout the year, BHP engages with shareholders through results roadshows and other investor engagement meetings, including on key issues such as climate change, industry associations and social value. BHP also hosts live webcasts and Q&A sessions with our senior leaders for shareholders to directly ask questions of management, including on corporate governance and ESG matters, steel decarbonisation technologies, strategy, finance and operating performance.  

     

    We also facilitate and encourage shareholder participation at our Annual General Meeting (AGM). The AGM provides an update for shareholders on our performance and offers an opportunity for shareholders to ask questions and vote.  

  • Disclosure

    We are committed to providing transparency over our climate-related governance, risks (threats and opportunities), strategy, commitments,  and targets and goals, enabled through regular and comprehensive disclosures.   

     

    Our most recent climate-related disclosures and performance data can be found in the BHP Annual Report 2023, Operating and Financial Review 6.12 - Climate change and the BHP ESG Standards and Databook 2023, and additional climate-related disclosures are available in the Sustainability downloads section at the bottom of this page.   

  • Performance
    Our most recent climate-related performance data and disclosures can be found in our BHP Annual Report 2023, Operating and Financial Review 6.12 - Climate change and the BHP ESG Standards and Databook 2023

Case studies, Prospects articles and presentations