BHP has announced a long-term goal to achieve net zero Scope 3 GHG emissions by 2050, focusing on collaboration and technology development to influence progress. The company identifies several climate-related risks and opportunities, including policy, legal, and reputational risks, operational decarbonization technology availability, and accelerated decrease in steelmaking coal demand. BHP also outlines its strategy for managing these risks and opportunities, including partnerships and technology trials.
Material actions and disclosures
BHP has set a long-term goal of net zero Scope 3 GHG emissions by 2050, with a focus on influencing progress through collaboration and technology development. The company identifies several climate-related risks and opportunities, including policy, legal, and reputational risks, operational decarbonization technology availability, and accelerated decrease in steelmaking coal demand. BHP also outlines its strategy for managing these risks and opportunities, including partnerships and technology trials.
BHP’s Scope 1 emissions are primarily from fuel consumption by haul trucks and fugitive methane emissions from coal production. Scope 2 emissions are from purchased or acquired electricity, steam, heat, or cooling. The company has also identified climate-related transition risks and opportunities and asset carrying values, and has committed to an incremental operational GHG emissions reduction spend of US$65 million and an incremental value chain decarbonisation spend of US$36 million.
Forward commitments
BHP plans to invest US$50 million in FY2027 for incremental operational GHG emissions reduction capital expenditure and lease payments, and US$0.5 billion over the medium term (FY2028 to FY2031) for operational GHG emissions reduction. The company also expects to spend US$75 million per annum (BHP share, nominal) for carbon credits to satisfy regulatory liabilities in the short to medium term (FY2027 to FY2030).
BHP has also committed to a US$30 million investment in FY2026 for operational decarbonisation capital expenditure and a US$71 million investment in carbon credit assets.
These commitments reflect BHP’s strategy to manage climate-related risks and opportunities, including the availability and commercial viability of operational decarbonisation technology, and the potential for an accelerated decrease in steelmaking coal demand.
For more information on climate-related risks and opportunities, including current and anticipated financial effects, and BHP’s strategy and management actions, refer to the Sustainability Report.