Climate-related physical risk and adaptation

Our latest disclosures

Information is valid at August 2026. 

Our most recent disclosures about climate-related physical risk can be found in the BHP Annual Report 2026, Operating and Financial Review 9.10 – Climate change and Sustainability Report. 

Our approach to climate-related physical risk

A changing climate could exacerbate and trigger climate-related physical risks, which include:

• Acute climate-related physical risks: extreme climatic events, such as floods, cyclones and heatwaves, that may become more severe and/or more frequent because of a changing climate
• Chronic climate-related physical risks: such as prolonged drought, rising temperatures and the incremental increases in extreme heat days 

The mining sector is exposed to both acute and chronic climate-related physical risks because of its remote outdoor operations with labour and physical capital exposed to the elements, and because of its dependency on global value chains. The long lives of mining assets mean they could encounter deteriorating conditions in later decades. Geographically dispersed sites and value chains increase the diversity of climate-related physical impacts we may face. 

The identification, assessment and monitoring of climate-related risks and opportunities is incorporated into our Risk Framework. Our approach to evaluating our operational climate-related physical risks is shown in the chart below. 

To understand how a changing climate may alter the frequency and severity of the climate hazards and associated potential operational and productivity impacts under different climate-related scenarios and time horizons, we have undertaken scenario analysis studies to evaluate our operational climate-related physical risks. These studies have been informed by our climate hazard dataset (CHD), which covers our sites and operations, alongside local observational data and other sources of climate projections. The CHD incorporates climate projections from CMIP6 climate models for the period CY2026 to CY2085 informed by three Shared Socio-economic Pathway (SSP) scenarios used by the Intergovernmental Panel on Climate Change (IPCC). 

The results of these studies have been incorporated into our risk management routines and we continue to strengthen our embedment of climate-related physical risk into other business processes. 

To prioritise safety and mitigate the operational interruption risk from climate hazards, we consider climate-related physical risks as part of our capital projects decision-making process, including, where relevant, the incorporation of weather conditions and climate projections in asset design.  We expect to continue to update risk profiles and adaptation plans as the latest knowledge of climate-related risks and potential impacts further evolves.