BHP has pledged to reduce emissions from its operations by 30 per cent by 2030, adding that it will continue to thrive under net zero emissions in the future.
In its climate change report 2020, the company said it will speed up the 30 per cent reduction of it operational (scope 1 and scope 2) emissions by 2030, while also working towards decreasing the carbon footprint of its value chain (scope 3).
BHP chief executive officer Mike Henry said the company’s portfolio is well-positioned to meet net zero operational emissions by 2050.
“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,” he said.
“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.”
Henry said that BHP’s commodities, including iron ore and metallurgical coal would be resilient in a decarbonised world due to ongoing steel demands, but the company would work alongside stakeholders and the community to the emission reductions are ‘mutually beneficial’.
“Many of BHP’s commodities would further benefit from an accelerated decarbonisation pathway,” Henry said.
“We are already a major producer of copper and nickel and are seeking further options in these commodities, which see strengthening demand as the world moves to decarbonise. Potash also sees upside in a decarbonising world.”
“The world will need more steel for continued economic growth and to build the infrastructure required by decarbonisation. At the same time, steelmakers will need to reduce their emissions intensity, an effort that will be supported in the coming decades by the iron ore and higher quality metallurgical coals that BHP produces.”
Across its value chain, BHP will aim to support the development of technologies and pathways capable of a 30 per cent reduction.
To achieve this, the company will work alongside the steel industry and the maritime sector to reduce emissions in its value chain.
“We will continuously manage our portfolio for value and risk, taking into account the latest science and our scenario analysis,” Henry said.