BHP Group has said it will link a portion of bonus payments for Chief Executive Officer Mike Henry and key leaders to progress by the world’s top miner on lowering greenhouse gas emissions at both its own operations and those of its customers.
The organization is seeking to reassure investors it can curb its environmental impact. The most controversial area is Scope 3 emissions — mainly created when customers such as Chinese steel mills use the raw materials they mine. BHP has laid out goals to help its clients cut emissions intensity by 30 percent by 2030, but has stopped short of setting hard targets.
The company’s approach to Scope 3 emissions will attract the greatest scrutiny from investors and climate scientists. As with oil majors, supply-chain emissions typically account for more than 90 percent of BHP’s total, and the responsibility miners take for them is disputed. While the miner won plaudits for its targets to lower its own emissions, its plans for Scope 3 were less well received.