Our Purpose and Our Strategy provide a clear direction for our climate change strategy. The materials we provide are central to modern life and we constantly evolve our approach so we can continue to deliver them sustainably into the future. Our iron ore and metallurgical coal create the steel that builds cities and makes renewable energy infrastructure possible; our copper is needed for electrical appliances and wind turbines; our oil powers mobility; our natural gas and energy coal provide energy and heat; and our nickel enables the development of storage solutions for intermittent wind and solar power. And looking to the future, potash has the potential to support more efficient and sustainable agriculture by making crops more productive.
In 2020, BHP published our Climate Change Report 2020, a special publication designed for a more detailed discussion of our approach to identifying and managing climate-related risks and opportunities, which aligns with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. It outlines our story – our successes, our learnings and our plans for future initiatives.
Our commitments provide a pathway for action
The BHP Climate Change Report 2020 is a foundation 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 necessary, to respond to evolving approaches to climate change and climate-related disclosures.
A shared global challenge
We also recognise our role in collaborating with others to achieve progress in managing the challenges of climate change. Without collaboration, the world will not be able to achieve the goals of growth, equity and decarbonisation for the long-term. The challenges inherent in the 1.5°C scenario described in the BHP Climate Change Report 2020 illustrate the scale of the task ahead. We will seek opportunities to work with partners to commercialise, at scale and acceptable cost, low emissions and negative emissions technologies that are critical for the transition to a 1.5°C world. These technologies include carbon capture, utilisation and storage, direct air capture and the natural climate solutions of reforestation and afforestation. Consideration of the 1.5°C scenario in our portfolio analysis highlights that the world needs these technologies without delay and at scale. We will continue to seek opportunities to collaborate with value chain partners, investors, researchers and governments to work towards net-zero emissions globally by 2050.
Building a better world
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 create a brighter future for the decades to come. Building that future around a stable climate would mean that the potential 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.