BHP uncertain net zero emissions target will be reached by 2050

THE world’s biggest mining company, BHP Group, said it may not reach its goal of cutting greenhouse emissions created by its customers and suppliers to net zero by 2050.

“Achievement of this goal is uncertain, particularly given the challenges of a net zero pathway for our customers in steelmaking, and we cannot ensure the outcome alone,” BHP said, referring to its so-called Scope 3 emissions target in an investor presentation on Wednesday (Jun 26).

The major iron ore, coal and copper producer said it was still aiming for net zero by 2050 and had “made strong progress on our strategy in the areas of steelmaking and maritime decarbonisation via partnerships, trials and pilots”.

The global mining industry is facing growing pressure from investors and environmentalists to reduce its carbon footprint. For miners such as BHP that produce vast quantities of iron ore for steelmaking, a particularly carbon-intensive material that forms the backbone of the world’s housing and infrastructure, Scope 3 dwarfs the emissions that the companies are directly responsible for.

BHP said it’s on track to reach its a goal to slash its Scope 1 and 2 operational emissions by a third by 2030. It achieved this – albeit briefly – during fiscal 2023, but indicated it may see some volatility in its greenhouse gas emissions due to “planned activity and growth at our operations.”

The company’s head of carbon management, Graham Winkelman, said in a call with investors on Wednesday it will see a small increase in emissions in the year to Jun 30.

“The pathway to net zero will be non-linear as we organically grow our business,” BHP said. Cutting emissions would require “significant effort” and collaboration across the mining supply chain, from shipping through to smelting of iron ore. BLOOMBERG