Page 66 - Annual Report 2020

1.7.7 Value chain sustainability continued
Process stewardship
We support industry association programs and other initiatives A focus on maritime sector emissions
that bring together participants in a product’s life cycle to improve
sustainability performance. For example, we are members of the We are prioritising support for emissions solutions in the maritime
ICMM, apply the ICMM Mining Principles and participate in the sector. Ocean freight is vital to our success as a reliable global
ICMM Materials Stewardship Facility. In FY2020, we developed supplier and is coming into focus as an area in which, in
and implemented a plan to conform to the updated ICMM Mining partnership with the shipping industry, progress can be made to
Principles, which now include clearly articulated performance reduce emissions. We are one of the largest dry bulk charterers in
expectations and requirements for asset-level validation. We are the world, procuring freight for approximately 250 million tonnes
members of Responsible Steel, participated in the London Metal of iron ore, coal and copper and completing approximately
Exchange’s consultation on responsible sourcing standards and 1,500 voyages each year.
participated in the development of the Copper Mark, a new The International Maritime Organisation (IMO) has set goals
assurance program for responsible copper production established to reduce the carbon intensity of international shipping by
by the International Copper Association. Our participation in these 40 per cent by CY2030 and by 70 per cent by CY2050, as well
initiatives is aimed at ensuring the standards and thresholds are as reducing the total annual GHG emissions from international
meaningful and drive a fundamental change in the industry. shipping by at least 50 per cent by CY2050. We believe we can
Product stewardship make an important contribution to bringing about change in the
bulk carrier segment.
BHP encourages the responsible design, use, reuse, recycling and
disposal of our products throughout our value chain, in line with Our Maritime and Supply Chain Excellence team is taking
the ICMM Mining Principles. a proactive role and seeking to drive change in the industry
Our Sales and Marketing team works with our operated assets to increase the focus on safety, environmental sustainability,
innovation and efficiency. BHP has continued to collaborate
to maintain compliance with all product regulatory requirements with RightShip, the world’s leading maritime risk management
(1)
in relevant markets. This includes assessing the hazards of the organisation to use their GHG ratings system that encourages
products of mining according to UN Globally Harmonised System charterers to use ships designed for greater energy efficiency.
of Hazard Classification and Labelling or equivalent relevant In response, we have seen ship owners improve engine
regulatory systems, and communicating through safety data performance and reduce drag. In July 2019, we released the
sheets and labelling as appropriate. world’s first bulk carrier tender for LNG-fuelled transport for up
Where possible, BHP also works directly with those involved to 10 per cent of BHP’s iron ore. Introducing LNG-fuelled ships
in the processing and use of our products to improve environmental into BHP’s maritime supply chain is expected to significantly reduce
performance throughout the value chain, and to promote the CO 2 and NO x (nitrogen oxide) emissions and eliminate SO x (sulphur
sustainable use of our products. For example, we work with oxide) emissions along the busiest bulk transport routes globally.
individual customers to design and test raw material blends that
optimise environmental performance. We also collaborate on More information on value chain sustainability is available
research with customers, industry bodies and academia to identify at bhp.com/sustainability.
sustainable product and process improvements. We seek to
improve traceability and transparency of products through piloting
blockchain initiatives with industry consortia.
In July 2019, BHP committed to set public goals related to
Scope 3 GHG emissions. During FY2020, we investigated BHP’s
opportunities to influence GHG emissions reductions through
an analysis of our value chain and consultation with suppliers,
customers, investors and other stakeholders. As a result, we have
set Scope 3 GHG emissions goals for CY2030.
For more information on our approach to value chain
sustainability visit bhp.com/sustainability.

(1) RightShip is equally owned by BHP, Rio Tinto and Cargill. More information is available at rightship.com.

64 BHP Annual Report 2020