‘Growing disquiet’ over BHP’s decarbonisation walk back

BHP has deferred much of the investment needed to decarbonise its operations this decade, leaving investors with reduced visibility over how the company intends to achieve its 2050 net zero commitment. While BHP has already met its modest 2030 decarbonisation target, it has no targets set between 2030 and 2050, meaning there are no clear emissions milestones driving medium-term decarbonisation, the critical period for fleet electrification.

New research by ACCR, Latest insights into BHP’s operational decarbonisation pathway, shows a company walking back key electrification projects, dramatically deferring 87.5% of planned operational decarbonisation spend this decade.

The research identifies:

• While BHP has met its modest 2030 operational target largely through renewable power agreements in Chile, only 4% of emissions reductions have been made in Australian operations and there is heavy lifting ahead.
• With no interim targets between 2030 and 2050, investors lack assurance that BHP has a credible pathway to net zero by 2050.
• Major diesel displacement and fleet electrification projects have been deferred into the 2030s, despite requiring enabling infrastructure and investment well in advance of deployment.
• BHP has attributed delays in part to "low technology readiness". However, in any technology scenario, the company should be acting now to maintain optionality to progressively electrify its fleet.
• As Australian policy evolves and diesel rebates face increasing scrutiny, BHP could be exposed if it is not prepared for changing transition economics and policy settings. BHP received over A$620million in fuel tax credits for the 2025 financial year.

Naomi Hogan, Head of Engagement and Sector Strategy at ACCR said:

“BHP has significantly walked back its commitment to decarbonisation and, the reality is, there are significant risks to this strategy for investors.

“There is strong investor interest and a growing disquiet around the lack of transparent information from the company on the potential costs of pushing back decarbonisation and what it means for BHP’s emissions reduction pathway.

“As Australian policy evolves, and rebates for diesel use face increasing scrutiny, BHP may be caught flat-footed if it is not prepared for changing transition economics and policy settings.

“The removal of the Fuel Tax Credit would materially impact the business case for decarbonisation at BHP. Our analysis shows that most of BHP’s fleet electrification projects become financially viable with just the removal of this policy.

“Corporate investment decisions often involve trading off competing objectives, and the removal of the fuel tax credit would likely make these decisions clearer.

“BHP has work to do to rebuild trust with investors and demonstrate its commitment to the pressing need to protect long-term shareholder value and to mitigate risks that come with ongoing reliance on fossil fuels.