BHP has made big climate promises, but the real work of slashing emissions remains undone. The revelation that the world's biggest miner cancelled and delayed commitments to act on the climate crisis should be a wake-up call. Millions of additional tonnes of heat-trapping pollution will enter the atmosphere, exacerbating climate harm and making Australia's climate targets harder to reach.
BHP's Climate Backtracking Exposed
Leaked documents reveal BHP shelved its first major decarbonisation investment—a massive solar farm—after board approval. A larger solar, wind, and battery project for its Western Australia operations has been delayed by at least five years. The company also doubled down on diesel trucks despite promises to switch to electric vehicles powered by renewables. Internal documents acknowledge this inconsistency with its climate pledges.
Corporate Climate Action Under Threat
BHP is not alone in stepping back from climate action. Rio Tinto slashed spending on emission-reduction projects and disbanded its decarbonisation unit. Other corporations have either feared Donald Trump's rise or used it as an excuse to drop commitments. However, BHP's reversal is significant given its scale and influence.
Making promises is easy; delivering is tough. BHP's own estimates show full decarbonisation could cost US$7.5bn over 25 years, yet it earns that revenue from WA operations in under six months. Despite being a responsible corporate citizen and top taxpayer, BHP remains a historic polluter due to coal mining. The thinktank InfluenceMap ranks it 31st in cumulative climate contributions and 10th among private investor-owned companies.
Emissions Reduction Claims Under Scrutiny
BHP claims a 36% emissions cut since 2020, ahead of its 30% target by 2030. However, this reduction stems from renewable energy purchases in Chile and suspended nickel operations. Direct onsite emissions from diesel continue, and scope-three emissions (from product use) have increased by 7% since 2020, adding over 25 million tonnes annually—dwarfing the claimed cuts.
Policy Inconsistencies and Subsidies
The Australian Labor government sends mixed signals, offering miners over $4bn annually in diesel rebates—BHP benefiting most, saving $620m last year. This subsidises fossil fuels, contradicting the safeguard mechanism requiring industrial sites to cut emissions. Companies can buy unlimited offsets instead of direct cuts, and offsets remain cheap. BHP could reduce offset reliance but lacks incentives to act faster.
BHP has a duty to invest heavily in solutions given its historical contribution. Instead of taxpayer-subsidised fossil fuels, policies should encourage real action. The company must move faster to live up to its rhetoric.
