BHP sets net-zero emissions target for its suppliers, shippers
02:45, 15 September 2021
Anglo-Australian mining conglomerate BHP Group has set a net-zero emissions target for its suppliers and shippers by 2050.
In its updated climate-transition plan released on Tuesday (14 September), BHP said that its goal is to not only reach net-zero emissions from its own operations by 2050 but also from its “suppliers and maritime transport” of its products.
While setting the lofty targets, the world’s largest miner by market capitalisation, said that its aim to move to net-zero emissions from suppliers by 2050 is “subject to the availability” of carbon-neutral goods and services for its requirements.
Shipping emissions in sight
Similarly, the target for its shippers is subject to the “widespread” availability of carbon-neutral solutions, including low/zero-emission technology onboard suitable ships and low and zero-emission marine fuels.
Further, BHP also did not set targets for the heavily polluting downstream activities of its products, such as steelmaking.
“Recognising the particular challenge of a net-zero pathway for customers’ processing of our products, which is dependent on the development of downstream deployment and supportive policy, we cannot set a target,” the company said in its climate transition plan.
BHP added that it will continue to work with customers to accelerate their transition to carbon-neutral steelmaking and other downstream processes.
BHP shares down
On Wednesday (15 September), a day after the release of the climate transition plan, the company’s shares slid and were trading 3.18% lower on the Australian Securities Exchange during midday trading in Sydney at AUD40.40.
According to the miner, the decarbonisation process across its operational assets will cost $100m to $200m per annum over the next five years. Besides this spending, the company had also committed $400m for investment in emissions-cutting projects across its assets and value chain. For 2021, it committed to spend $65m in partnership with its steel customers.
BHP’s Scope 3 emissions, which take into account emissions by suppliers, logistics, customers and non-operated investments, stood at 402.5 million tonnes of carbon dioxide equivalent in the year ending June 2021, slightly lower than 412.8 million tonnes of carbon dioxide equivalent in the previous year.
High steelmaking emissions
However, steelmaking customers remain a concern and its contribution to BHP’s Scope 3 emissions rose to 300.5 million tonnes of carbon dioxide equivalent in the year ending June 2021 compared with 292.9 million tonnes of carbon dioxide equivalent in the previous year.