Operational GHG emissions (Scopes 1 and 2 emissions from our operated assets)

Our ambition

We believe warming of the climate is unequivocal, the human influence is clear and physical climate-related impacts are unavoidable. We recognise the role we play in supporting the net zero transition the world must make.   

Notes and definitions

1. The baseline year, reference year and performance data of our greenhouse gas (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 a FY2020 baseline year and long-term goal is referrable to a FY2020 reference year. 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.

• 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).
• 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 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.
• Greenhouse gas (GHG): 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.
• Net zero (for a BHP GHG emissions target, goal or pathway, or similar): Net zero includes the use of carbon credits as governed by BHP’s approach to carbon offsetting, available at bhp.com/carbon-offsetting.
• 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.
• Scope 1 (GHG emissions): Scope 1 emissions are direct GHG emissions from operations that are owned or controlled by the reporting company. For BHP, these are primarily emissions from fuel consumed by haul trucks at our operated assets, as well as fugitive methane emissions from coal production at our operated assets.
• Scope 2 (GHG emissions): Scope 2 emissions are indirect GHG emissions from the generation of purchased or acquired electricity, steam, heat or cooling that is consumed by operations that are owned or controlled by the reporting company. BHP’s Scope 2 emissions have been calculated using the market-based method unless otherwise specified.
• 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 approach and position

Our projected pathway to our medium-term target

 To achieve our FY2030 medium-term target, we are taking the following actions: 

• sourcing renewable and other low to zero GHG emissions electricity for our grid-connected operations, where commercially viable
• minimising fugitive methane emissions to the greatest extent technically and commercially viable
• actively assessing, and implementing where technically and commercially viable, lower GHG emissions options in those of our major capital projects that are expected to either sustain or increase production

Our GHG emissions trajectory toward the medium-term target (and our long-term goal) is not expected to be linear as the business grows, including through investments in our copper assets and our Jansen potash project. We intend to achieve our medium-term target through structural abatement. However, if an unexpected shortfall arises, we may use voluntary carbon credits that meet our integrity standards to address the remaining gap. We will not use regulatory carbon credits (i.e. those used for compliance under regulatory schemes, such as the Safeguard Mechanism in Australia) to meet our medium-term target.

Our potential pathways to our long-term net zero goal

As with our medium-term target, our operational GHG emissions long-term net zero goal remains unchanged from prior years. However, many of the technologies we will need for diesel displacement and fugitive methane abatement to achieve our goal are not yet ready to be deployed. A pathway between our medium-term target in FY2030 and our long-term net zero goal in CY2050 will require a significant step change in the readiness, commercial availability and commercial viability of the low to zero GHG emissions technology needed, and the pace of development of some decarbonisation technology has slowed since we published our Climate Transition Action Plan (CTAP 2024).

To progress towards our operational GHG emissions net zero long-term goal, we are taking the following actions:

• working towards a reduction in risk exposure to diesel displacement solutions through testing, piloting and de-risking battery-electric haul truck technology, battery-electric locomotives, and the electrification of excavators and other diesel equipment used for mining and materials movement. Deployment of diesel displacement technologies and supporting infrastructure is expected post FY2030
• pursuing solutions to abate fugitive methane emissions by prioritising improving measurement and forecasting confidence, alongside the advancement of methane prevention and mitigation technologies. Our mitigation strategy is focussed on BMA, as we plan to cease mining at NSWEC by the end of FY2030. Based on current technology, we do not expect to be able to fully abate our fugitive methane emissions by CY2050
• pursuing opportunities to produce or procure additional renewable and other low to zero GHG emissions electricity with the aim beyond FY2030 to transition the remaining grid-connected sites at our operated assets to 100 per cent zero GHG emissions electricity, where available and commercially viable. Additional renewable (and/or other low to zero GHG emissions) electricity will be required to support the increased demand associated with production growth and electrifying mining and rail equipment to displace diesel

We intend to achieve structural reductions in our operational GHG emissions by CY2050 reflecting technology readiness, commercial availability and commercial viability. We expect carbon credits will be used in achieving our long-term goal to address residual emissions.

Performance and disclosure

Information is valid at August 2026.

Our most recent climate-related disclosures (including performance data) can be found in the:

• BHP Annual Report 2026, Operating and Financial Review 9.10 – Climate change and Sustainability Report
• BHP Annual Report 2026, Financial Statements – note 16 'Climate change' , Financial Statements – note 16 'Climate change' 
• BHP Climate Transition Action Plan 2024, subject to updates of certain aspects of our assumptions and plans in the BHP Annual Report 2025, Operating and Financial Review 9.8, and BHP Annual Report 2026, Operating and Financial Review 9.10 – Climate change and Sustainability Report
• BHP ESG Standards and Databook 2026

Case studies