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Value chain (Scope 3) greenhouse gas emissions

Supporting the reduction of greenhouse gas (GHG) emissions in our value chain is a key component of our climate change strategy, targets and goals.


To support positive climate outcomes in both the near term and long term, we believe it is important to help enable our customers at whatever stage of the ‘steel decarbonisation framework’ they are in. This ‘steel decarbonisation framework’ is designed by BHP to describe the technology pathways to decarbonising the global integrated iron and steel industry (see the table below for more information). 

BHP’s customers in steelmaking are diverse, with some integrated steelmakers in the ‘optimisation’ stage, focused on energy and process efficiency, increasing scrap ratios and raw materials optimisation. Other customers are exploring ‘transition’ stage solutions like alternative fuels, modified blast furnace (BF) operations, and end-of-pipe solutions like Carbon Capture and Utilisation (CCU) and Carbon Capture, Utilisation and Storage (CCUS). Some companies are investigating the viability of ‘green end-state’ technologies, such as hydrogen-based direct reduction iron (DRI) with electric arc furnace steelmaking and direct electrolysis processes, like molten-oxide electrolysis.   


Our strategy to support steelmaking is to partner, innovate, advocate and supply the optimal products across these stages. Access by steelmakers to higher-quality metallurgical coal and iron ore products, which enables them to be more efficient and lower emissions intensity, is an important component of the transition to a low-carbon future. To support this, we are assessing the opportunity to implement beneficiation at our Jimblebar iron ore operation and metallurgical coal product improvements at our BMA operations. 

Across our partnerships with Tata Steel, POSCO, Baowu, JFE and HBIS, we are working with companies that represent approximately 13 per cent of reported 2021 global steel production capacity. BHP has also committed to invest more than US$75 million in research and development to support these partnerships and our decarbonisation framework. 


Our strategy for supporting the maritime industry’s climate transition includes advocacy, adoption of low- and zero-emissions fuels or other efficiency technologies (like wind-assisted propulsion) and deploying real-time data analytics to optimise vessel and route selection to improve operational efficiency. For example, we continue our advocacy work with the Global Centre for Maritime Decarbonisation in Singapore, of which we are a founding member, we have formed a consortium with Rio Tinto, Oldendorff, Star Bulk and the Global Maritime Forum to analyse and support the development of an iron ore maritime green corridor, fuelled by green ammonia, and we are progressing use of LNG as a transitional fuel by chartering the world’s first LNG-fuelled Newcastlemax bulk carriers to transport iron ore from Western Australia to Asia from Eastern Pacific Shipping (EPS) for five years. 


In order to engage and incentivise our suppliers, we integrated climate commitments into our sourcing document and evaluation criteria. We intend to continue to refine and integrate metrics related to incentivising positive climate outcomes from our suppliers going forward. 

Value chain (Scope 3) GHG emissions reporting

Our latest value chain (Scope 3) GHG emissions can be found in our Annual Reports and Scope 1, 2 and 3 GHG emissions calculation methodology available in the ‘sustainability links and downloads’ section below. 


Maritime emissions

Championing sustainability in the maritime supply chain

The maritime industry accounts for 2 to 3 per cent of global greenhouse gas (GHG) emissions. Our goal for 2030 is to support a 40 per cent emissions intensity reduction of BHP-chartered shipping of our products.