BHP to cut 30% of greenhouse gas emissions by 2030

11 / 09 / 2020

By Marwa Nassar - -

BHP announced its commitment to cutting its greenhouse gas emissions to 30 percent by 2030 as the company plans to reach net zero emissions in 2050.

The company pledged in its 2020 climate change report to accelerate its own actions and help others to do the same.

The company stressed its commitment to Scope 3 actions to contribute to decarbonization in its value chain.

The company added it will strengthen linking of executive remuneration to delivery of BHP’s climate plan in addition to an insight into the performance of BHP’s portfolio in a transition to a 1.5°C scenario.

BHP provided an update on its progress on climate action, new climate commitments, and how it integrates climate change into corporate strategy and portfolio decisions.

BHP’s climate change approach focuses on reducing operational greenhouse gas emissions, investing in low emissions technologies, promoting product stewardship, managing climate-related risk and opportunity, and partnering with others to enhance the global policy and market response.

BHP supports the aim of the Paris Agreement to limit global warming to well below 2°C above pre-industrial levels, and pursue efforts to limit warming to 1.5°C.

BHP has been active in addressing climate risks for more than two decades, and has already established its long-term goal of achieving net zero operational (Scope 1 and 2) emissions by 2050 and its short-term target of maintaining operational emissions at or below FY2017 levels by FY2022, using carbon offsets as required.

In the past year, BHP has made good progress. The Escondida and Spence copper mines in Chile will move to 100 percent renewable energy by the mid-2020s, and last week BHP awarded new renewable energy contracts for its Queensland coal assets, and the world’s first LNG-fuelled Newcastlemax bulk carrier tender.

BHP Chief Executive Officer, Mike Henry, said: “I’m pleased today to show how we are accelerating our own actions and helping others to do the same in addressing climate change. We see ourselves as accountable to take action. We recognize that our investors, our people and the communities and nations who host our operations or buy our products have increasing expectations of us – and are responsive to these.”

“Our approach to climate change is defined by a number of key requirements. Our actions must be of substance. They must be real, tangible actions to drive emissions down. We must focus on what we can control inside our business, and work with others to help them reduce emissions from the things that they control. To create long-term value and returns over generations, we must continue to generate value and returns within the strong portfolio we have today, while shaping our portfolio over time to benefit from the megatrends playing out in the world including decarbonization and electrification.”

“Our portfolio is well positioned to support the transition to a lower carbon world aligned with the Paris Agreement. Our commodities are essential for global economic growth and the world’s ability to transition to and thrive in a low carbon future. Climate change action makes good economic sense for BHP and enables us to create further value.”