Achieving the aims of the Paris Agreement will require supportive policy across jurisdictions, globally. The policy-making process is complex, and change is unlikely to be smooth or linear. 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.
Our Climate Policy Principles outlines our views on how governments can best pursue the aims of the Paris Agreement, with a focus on both the principles we believe should guide how governments approach policymaking, and the policy outcomes we believe governments should seek.
We first released our Climate Policy Principles (then referred to as our Global Climate Policy Standards) in August 2020. Reflecting recent changes to our strategy and portfolio, and the evolving nature of climate policy debates, we published an updated version of our Climate Policy Principles in May 2023.
We commit to conducting our own advocacy efforts consistent with our Climate Policy Principles, and to use our Climate Policy Principles to influence the advocacy of the industry associations of which we are a member.
Our approach to direct advocacy is outlined below, while information on the climate policy advocacy of our industry association memberships is available here.
Our direct advocacy
BHP engages directly and regularly with governments on issues relating to climate change and the transition to net zero GHG emissions. We remain committed to developing policy advocacy positions that align with our support for global efforts to meet the aims of the Paris Agreement, harnessing opportunities to decarbonise our operations as cost effectively as possible, and promoting policies that support our key markets, including for commodities with significant positive exposure to the energy transition.
Summary of our positions on climate policy
Our key positions on climate policy, as represented in our Climate Policy Principles, are outlined below.
|Paris-aligned targets||We believe national governments should set GHG emissions reduction targets (medium and long-term) that are consistent with the Paris Agreement and its long-term aims of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C.|
|Reliable, affordable, zero-GHG emissions power||Electrification will play a vital role in enabling the decarbonisation of mining. Governments should ensure the electricity sector is capable of meeting the electrification needs of other sectors, in terms of delivering sufficient supply of reliable, affordable and zero-GHG emissions power.|
|Incentives for decarbonisation||Governments should ensure businesses have sufficient incentives to decarbonise their operations, such as through the use of market-based approaches like carbon pricing. Technology availability will be a key driver of the pace of decarbonisation. Governments should support the development and deployment of pre-commercial low GHG emissions technologies, such as through research and development funding, measures to reduce investment risk (e.g., concessional financing), performance standards, and investments in enabling infrastructure.
|Technology development and deployment||Technology availability will be a key driver of the pace of decarbonisation. Governments should support the development and deployment of pre-commercial low GHG emissions technologies, such as through research and development funding, measures to reduce investment risk (e.g., concessional financing), performance standards, and investments in enabling infrastructure.|
|Efficient carbon markets||BHP prioritises GHG emissions reductions at our operated assets to achieve our Scopes 1 and 2 targets and goals. Nonetheless, we acknowledge a role for offsets in a temporary or transitional capacity while abatement options are being studied, as well as for ‘hard to abate’ emissions with limited or no current technological solutions, and where access to renewable energy is constrained. Accordingly, we believe governments can play an important role in enabling the trading of credible and high-quality offsets, domestically and internationally, in a manner that promotes sustainable development and ensures environmental integrity and transparency.|
|Climate-related disclosures||BHP was one of the first companies to align our climate-related disclosures with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). We support governments introducing climate-related disclosure requirements that are decision-useful, appropriately contextual and globally consistent.|
|Regional and community adaptation||We believe governments can play an important role in supporting regional and community adaptation to the potential physical impacts of climate change through coordination, regular planning and the provision of reliable and consistent information.|
|Equitable change and transitions||Governments should support communities to prepare for and manage structural adjustments associated with the transition to a net zero GHG emissions economy, including through coordination, ensuring education and training systems are capable of meeting current and future skills needs, and the provision of tailored support to vulnerable cohorts.|
|Responsible value chains||Governments should support the development of responsible transition mineral value chains, including through measures that help de-risk exploration and investment in downstream processing, and ensuring permitting processes are effective at achieving environmental, heritage and social objectives while delivering timely and predictable outcomes.|
Our advocacy on climate policy
The document below lists our direct advocacy on climate policy since July 2021. It focuses on advocacy that originates from BHP and is publicly available (such as submissions to consultation processes, speeches from senior leaders, and media releases).