Climate change

Our greenhouse gas (GHG) emissions targets and goals 

Notes and definitions 

1. The baseline year, reference year and performance data of our GHG emissions targets and goals will be adjusted for any material acquisitions and divestments, and to reflect progressive refinement of GHG emissions reporting methodologies.  
2. Our operational GHG emissions medium-term target is referrable to an FY2020 baseline year and all our other targets and goals are referrable to a FY2020 reference year, except that our medium-term goal for shipping is referrable to a CY2008 baseline (which was selected to align with the base year for the International Maritime Organisation’s CY2030 emission intensity goal and its corresponding reasoning and strategy). The boundary of each target and goal may, in some cases, differ from required reporting boundaries. The use of carbon credits will be governed by BHP’s approach to offsetting, available at bhp.com/carbon-offsetting.  
3. Our ability to achieve the target is subject to the widespread availability of carbon neutral solutions to meet our requirements, including low to zero GHG emission technologies, fuels, goods and services.  
4. Operational GHG emissions of our direct suppliers means the Scopes 1 and 2 emissions of our direct suppliers included in BHP’s Scope 3 reporting categories of: Category 1, Purchased goods and services (including capital goods); Category 3, Fuel- and energy-related activities, Category 6, Business travel; and Category 7, Employee commuting.  
5. For FY2026, BHP has not published a standalone GHG Emissions Calculation Methodology document. Refer to the BHP Annual Report 2026, Sustainability Report 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions. Prior year versions of the BHP GHG Emissions Calculation Methodology are available here. 

• Baseline/baseline year (in relation to GHG emissions targets and goals): A year used as a basis to compare and measure performance of future years.
• Carbon credit: The reduction or removal of carbon dioxide, or the equivalent amount of a different GHG, using a process that measures, tracks and captures GHGs to compensate for an entity’s GHG emissions emitted elsewhere. Credits may be generated through projects in which GHG emissions are avoided, reduced or removed from the atmosphere or permanently stored (sequestration). Carbon credits are generally created and independently verified in accordance with either a voluntary program or under a regulatory program. The purchaser of a carbon credit can ‘retire’ or ‘surrender’ it to claim the underlying reduction towards their own GHG emissions reduction targets or goals or to meet legal obligations, which is also referred to as carbon offsetting or offsetting. We define regulatory carbon credits to mean carbon credits used to offset GHG emissions for regulatory compliance in our operational locations (such as the Safeguard Mechanism in Australia). We define voluntary carbon credits to mean carbon credits generated through projects that reduce or remove GHG emissions outside the scope of regulatory compliance (including Australian Carbon Credit Units not used for regulatory compliance).  
• Carbon neutral: Making or resulting in no net release of GHG emissions into the atmosphere, including as a result of offsetting. Carbon neutral includes all those GHG emissions as defined for BHP reporting purposes.  
• Goal (for BHP with respect to GHG emissions): An ambition to seek an outcome for which there is no current pathway(s), but for which efforts are being made or will be pursued towards addressing that challenge, subject to certain assumptions or conditions. Such efforts may include the resolution of existing potential or emerging pathways.  
• GHG (greenhouse gas): For BHP reporting purposes, these 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). Nitrogen trifluoride (NF₃) GHG emissions are currently not relevant for BHP reporting purposes.  
• Low to zero GHG emission(s) (for shipping): Capable of between 81 per cent to 100 per cent lower GHG emissions intensity (gCO₂ -e/joule) on a well-to-wake basis compared to conventional fossil fuels used in shipping.  
• Low to zero GHG emission(s) (for energy products other than shipping fuels): Capable of between 90 per cent to 100 per cent lower GHG emissions intensity during generation and/or combustion (as applicable) compared to conventional fossil fuel generation and/or combustion.  
• Net zero (for a BHP GHG emissions target, goal or pathway, or similar): Includes the use of carbon credits as governed by our approach to carbon offsetting, available at bhp.com/climate.  
• Offsetting (in relation to GHG emissions): The use of carbon credits. Refer to the definition of carbon credit.  
• Reference year (for a BHP GHG emissions target or goal): A year used to track progress towards GHG emissions targets and goals. It is not a baseline for GHG emissions targets and goals.  
• Sustainability Report: BHP’s report of that title containing our climate-related disclosures in accordance with the Australian Corporations Act 2001 (Cth) and Australian Accounting Standard Board’s Australian Sustainability Reporting Standard AASB S2 Climate-related Disclosures (AASB S2) for the year ended 30 June 2026, which is contained within BHP’s Annual Report 2026. 
• Target (for BHP with respect to GHG emissions): 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. 

Our position on climate change 

Our position on climate change continues to be shaped, broadened and strengthened by our strategic interests and the dynamic global response.  

We believe:  

• Warming of the climate is unequivocal and human influence is clear, with impacts expected to intensify over time.  
• The world must continue to increase both the levels of ambition and pace of greenhouse gas (GHG) emissions reductions to meet the aims of the Paris Agreement.  
• Demand for renewable and low to zero GHG emissions energy and lower GHG emissions technologies is likely to grow at unprecedented rates as the world seeks to meet the aims of the Paris Agreement while supporting responsible global economic development, including progress on the United Nations Sustainable Development Goals.  
• Commodities and materials we produce underpin this transition and are critical to achieving global climate ambitions.  
• A circular economy plays an important role in reducing GHG emissions associated with the extraction and use of mining products.  
• An acceleration of global effort to drive energy efficiency is a critical element in avoiding, reducing and removing GHG emissions.  
• Policies to encourage rapid action should be implemented in an equitable manner to address competitiveness concerns, achieve lowest cost abatement, and support equitable change and transition. 

We will continue to:  

• support the aims of the Paris Agreement to hold global average temperature increase to well below 2°C above pre-industrial levels, and pursue efforts to limit the temperature increase to 1.5°C 
• integrate evaluation of climate-related risks and opportunities into our business strategies and planning processes  
• take action to reduce our operational GHG emissions (Scopes 1 and 2) in line with our medium-term target and our long-term goal of net zero through investment, development and deployment of technologies and other solutions  
• support our customers, our suppliers and others as we pursue our long-term goal of net zero GHG emissions in our value chain (Scope 3), through investment, development and deployment of technologies and other solutions. 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  
• adapt to potential physical climate-related impacts by progressively enhancing the resilience of our operated assets, investments, portfolio and supply chains, and contributing to the resilience of communities and ecosystems  
• advocate to enhance the policy response to climate change through balanced, fact-based and focused contributions in areas where we can have influence  
• recognise the importance of nature-positive¹ outcomes in our approach to climate change, including water and biodiversity stewardship, as well as building social value 
• work with communities where we operate, which may be affected by changes in our business, to pursue equitable change and transition and achieve long-term mutual value

Footnote:

1 A high-level goal and concept describing a future state of nature (e.g. biodiversity, ecosystem services and natural capital), which is greater than the current state.