Sunday 29th Mar, 2020

BHP invests $570M to fight climate change

Photo: BHP Billiton

BHP will invest around $570 million ($US400 million) over the next five years to develop technology to reduce emissions from its own operations and from the use of its resources.

The Climate Investment Program aims to help BHP scale up emissions reducing technology at its operations and target the emissions generated when its commodities are turned into products such as steel.

Technology already outlined includes the use of hydrogen and carbon capture utilisation and storage.

BHP will also establish new a medium-term target for scope one and two emissions in line with the Paris Agreement, which is in addition to its short-term goal to cap 2022 emissions at 2017 levels. The company currently has a long-term goal of reaching net-zero emissions by mid-century.

A new climate portfolio analysis report will be developed in 2020, following from BHP’s 2015 two-degree scenario analysis. This will evaluate the potential impacts of a broader range of scenarios and transition to a ‘well below’ two-degree world.

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BHP also aims to strengthen the link between emissions performance and executive remuneration. From 2021, this will be clarified further to reinforce the strategic importance and responsibility of reducing emissions as a business.

BHP CEO, Andrew Mackenzie, said the program will scale up low carbon technologies critical to the decarbonisation of BHP’s operations and drive investment into nature-based solutions.

“Commercial success of these investments will breed ambition and create more innovative partnerships to respond collectively to the climate challenge,” Mackenzie said.

“We must take a product stewardship role for emissions across our value chain and commit to work with shippers, processors and users of our products to reduce scope three emissions.

“We require a considered and orderly transition to a lower carbon world, in which resource companies like BHP have both critical expertise and a key role to play.”