Value chain (Scope 3):

In FY2022

Progressed our work supporting steelmaking and maritime industries to accelerate decarbonisation.

By 2030

Steelmakers: a goal 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.

Shipping: support 40 per cent emissions intensity reduction of BHP-chartered shipping of BHP products.

By 2050

We’re 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 our 2050 goal²

We’re targeting net zero by 2050 for the operational GHG emissions of our direct suppliers³, and for GHG emissions from all shipping of BHP products. We will continue to partner with customers and others to try to accelerate the transition to carbon neutral steelmaking and other downstream processes.

Footnotes

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.

Our commitments provide a pathway for action

A shared global challenge

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.