BHPs Carbon Emissions Set to Rise in 2024

Highlights:

• Expected Emission Increase: BHP Group Limited (ASX: BHP) anticipates a slight rise in carbon emissions in 2024, while remaining committed to its 2030 reduction targets.
• Sustainability Measures: The company is implementing renewable electricity and trialing electric haul trucks to counteract emission increases and support its 2030 goals.
• Long-term Goals: BHP plans to use technology and some carbon credits to achieve net-zero emissions by 2050, without relying on offsets for its 2030 targets.

Increase in Emissions Expected

The world’s largest miner, BHP Group Limited (ASX: BHP), is set to see an increase in carbon emissions this year. Despite this, company management assures investors that the $217 billion corporation remains on track to achieve its 2030 emissions reduction target without relying on carbon offsets. Graham Winkelman, BHP’s Vice President for Climate, informed investors at a meeting on Wednesday that carbon emissions from operations are expected to show a slight increase in 2024 compared to the previous financial year.

Commitment to 2030 Targets

Winkelman reiterated that BHP is committed to its goal of reducing emissions by 30% from June 2020 levels by 2030. He acknowledged that emissions might rise in line with business growth, but emphasized that BHP has implemented measures to mitigate these increases. “We’ve planned additional deployment of renewable electricity before the financial year 2030 and further efforts to deliver some level of abatement across greenhouse gas emissions from the use of diesel and gas,” Winkelman stated.

Innovative Measures

To achieve its ambitious targets, BHP is investing in innovative technologies. This includes the trial of electric haul trucks at its Pilbara mines within the next 12 to 18 months, with plans for a global rollout. Winkelman highlighted that the path to net-zero emissions by 2050 is not straightforward, and as the company continues to expand, it will leverage technology to decarbonize operations and utilize carbon credits.

Looking Ahead

Winkelman noted that while BHP does not plan to use carbon offsets to meet its 2030 target, the company anticipates the need for some carbon credits to achieve net-zero emissions by 2050. “While we do not plan for the use of offsetting to meet our financial year 2030 target, we do anticipate the need for some carbon credits to deliver on our net-zero goal by calendar year 2050,” he said.

BHP’s proactive approach and investment in renewable energy and innovative technology underscore its commitment to long-term sustainability, despite the short-term increase in emissions.

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