BHP sets out targets to cut own emissions by 30% by financial year 2030

FILE PHOTO: Visitors to the BHP (formerly known as BHP Billiton) booth speak with representatives during the Prospectors and Developers Association of Canada (PDAC) annual convention in Toronto, Ontario, Canada March 4, 2019. REUTERS/Chris Helgren

MELBOURNE (Reuters) - BHP Group BHP.AX will focus on cutting its operational emissions by 30 percent by the 2030 financial year from 2020 levels, and will link executive bonuses to its progress, its chief executive is expected to say in a climate strategy update on Thursday.

The world’s biggest listed miner will focus on using cleaner forms of power supply as well a taking steps to electrify its diesel-powered truck fleet as part of initial steps that will eventually see it reach net zero operational emissions by 2050.

“We are...realistic about the magnitude of the task that the world faces in meeting the Paris goals,” Mike Henry said, according to a copy of an embargoed speech.

“Unfortunately, today the world is not currently on track,” he said.

“Neither the current aggregate commitments of nations, nor progress against those commitments, is sufficient. The world will need to increase action if it is to achieve the ambitions of Paris.”

BHP said it will work with the steel and maritime industries, both among the world’s most heavily polluting, to develop ways to cut emissions intensity, by 30 percent for the steel industry and by 40 percent for BHP-chartered shipping.

“We expect our actions to catalyse broader emissions reductions throughout the steel and maritime sectors,” Henry said, adding that 10% of short term incentives for the executive leadership team will be linked to the firm’s climate change progress.

Reporting by Melanie Burton; Editing by Shri Navaratnam