Investor Insight Webinar: Analysing BHP's 2024 Climate Transition Action Plan
While BHP’s disclosures have improved, its 2024 CTAP falls short on ambition and does not have a capital allocation strategy that matches the scale of the decarbonisation challenge. As a result, ACCR will be voting against this CTAP.
This week, ACCR hosted an investor briefing to discuss our analysis of BHP’s 2024 Climate Transition Action Plan (CTAP).
While BHP’s disclosures have improved, its 2024 CTAP falls short on ambition and does not have a capital allocation strategy that matches the scale of the decarbonisation challenge. As a result, ACCR will be voting against this CTAP.
Key points:
- 97% of BHP’s total emissions footprint is from its scope 3 - mostly from iron ore processing and metallurgical coal. While some disclosures are now clearer, the CTAP reveals a lack of ambition for addressing these emissions and raises concerns about BHP’s positioning as global demand shifts towards green steel.
- Disclosed direct capital allocation towards steel decarbonisation is low: just US$75 million between FY25 - FY29. BHP does not have a capital allocation strategy to match the scale of the green steel challenge and opportunity.
- BHP’s resilience testing and “1.5°C scenario” is bullish on carbon capture (CCUS) compared to more credible, industry-standard scenarios. This downplays the transition risks investors must consider.
- The CTAP lacks detail on how BHP’s metallurgical coal mine expansions fit within its climate strategy - there are no insights on BHP’s forward coal emissions trajectory, coal capex, or how its coal plans align with the IEA’s scenarios.
- Only available for an investor vote every 3 years, the CTAP reveals BHP does not yet have a credible decarbonisation pathway, and is therefore insufficiently aligned with the goals of net zero.
Our full analysis of BHP's 2024 CTAP can be read here.
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