BHP Targets Net Zero for Suppliers, Shippers, But Not for Steelmaking Customers
By Jaime Llinares Taboada
BHP Group PLC set targets to achieve net-zero emissions for its
suppliers and shippers, but said that it can't do the same for
heavily polluting downstream activities such as steelmaking.
The world's largest miner by market value on Tuesday published
an updated climate-transition plan, which includes enhanced targets
for value chain (Scope 3) emissions. In order to progress toward
its ambition of achieving net-zero Scope 3 emissions by 2050, the
company is now targeting net zero for its direct suppliers and for
the maritime transport of its products by 2050.
However, BHP said it couldn't do the same for the pollution
caused by the processing of the commodities it sells:
"...recognizing the particular challenge of a net-zero pathway for
customers' processing of our products, which is dependent on the
development and downstream deployment of solutions and supportive
policy, we cannot set a target".
BHP said it will continue to partner with customers to
accelerate the transition to carbon-neutral steelmaking and other
downstream processes, and that it will pursue carbon-neutral
production of commodities such as copper, nickel and potash that
are seen as essential for the energy transition.
In 2020, the Anglo-Australian miner committed at least $400
million to fund emission-cutting projects across its assets and
value chain, and in 2021 committed to spending up to $65 million in
partnership with its steel customers.
Scope 3 emissions are generated by suppliers, logistics,
customers and non-operated investments. They represent 96% of BHP's
total reported emissions, because it sells huge amounts of iron ore
and metallurgical coal for its customers to produce steel.
Steelmaking accounted for 300.5 million metric tons of
carbon-dioxide equivalent of BHP's 402.5 million tons total Scope 3
emissions in the year through June, according to the company. In
comparison, procurement generated 10.4 million tons and maritime
activities produced 7.4 million tons.
"In any net-zero future, steel will play an essential role...
The challenge for steelmaking is to produce this vital commodity to
enable sustainable growth, while reducing the emissions footprint
of the production process itself," BHP said in its
Write to Jaime Llinares Taboada at firstname.lastname@example.org;
(END) Dow Jones Newswires
September 14, 2021 06:01 ET (10:01 GMT)
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