BHP Group’s operational carbon emissions are set for a “small increase” this financial year, an executive revealed on Wednesday, as the miner said its “non linear” path to net zero requires overcoming growth and technological challenges.
Still, the world’s largest listed miner is on track to cut those emissions by at least 30% by 2030, President for Climate Graham Winkelman told an investor briefing. BHP has the least ambitious near-term target among the four biggest iron ore miners, with the most aggressive, Fortescue, aiming for zero operational emissions over the same time frame.
BHP has earmarked $4 billion for operational carbon cuts by 2030, having spent $122 million as of the end of its last fiscal year. The miner is increasing the use of solar power, particularly at its Chilean copper operations, and decarbonizing its trucking fleets over the medium term.
Emissions have climbed due to “organic growth” as miners must dig deeper to maintain production levels as ore quality declines, increasing diesel consumption. BHP aims to support the industry’s decarbonization by developing technologies like green iron production with Rio Tinto and exploring carbon capture and storage for blast furnace steelmaking.
The company does not intend to rely on carbon offsets to reach its 2030 target but may need to build an offset portfolio in the longer term for hard-to-abate sectors. BHP’s Scope 3 (customer) emissions stood at 370.5 million tons last year, around two-thirds of Rio Tinto’s levels, while its operational emissions were around one third of Rio’s.