BHP has revealed a $400m initiative to tackle climate change as it chases a long-term goal of zero emissions by the middle of this century.
Its new five-year plan was unveiled today just a couple of weeks after TradeWinds uncovered a near $1bn tender from BHP for up to 14 LNG-fuelled newcastlemax newbuildings.
The mining giant is also involved in a bio-fuels trial for vessels along with John Fredriksen's Golden Ocean.
Andrew Mackenzie, the chief executive of BHP, said during a Financial Times' Climate for Change speech in London there was no one simple ‘silver bullet’ for tackling climate change.
He stressed BHP must take a product stewardship role in cutting emissions and commit to work with shippers, processors and users of its products.
“The evidence is abundant: global warming is indisputable,” he said.
“The planet will survive. Many species may not.”
“This is a confronting conclusion but as a veteran geologist once said: ‘you can’t argue with a rock’.”
Under the plan, the major charterer will establish a new medium-term, science-based target for emission in line with the Paris Agreement and strengthening the link between emissions performance and executive remuneration.
Mackenzie said BHP had acted on global warming for over two decades as it was the right thing to do.
“It is also a strategic imperative for us to deliver long-term shareholder value,” he added in the speech.
BHP’s 2017’s emissions were below those in 2006 and is targeting capping 2022 at 2017 levels.
“Our long-term goal is to achieve net zero emissions from our own operations,” Mackenzie said,
“Next year we will set a medium-term, science-based target for the decarbonisation of BHP operations, which will reflect the goals of the Paris Agreement.”
