A leaked internal memo from mining giant BHP reveals the company has significantly backtracked on its climate commitments, delaying key decarbonisation projects in its Western Australian iron ore operations. The documents, obtained by the Guardian and ABC's Four Corners, show BHP has cancelled a major emissions-reducing project, postponed vast renewable energy initiatives, and continued purchasing polluting diesel trucks despite earlier plans to fully electrify its fleet.
BHP's Climate Pledge Reversal
In 2019, BHP's then-CEO Andrew Mackenzie delivered a landmark speech in London, calling climate change an 'existential' threat and urging a global mobilisation akin to World War II. The company subsequently pledged to reduce operational emissions by 30% by 2030 and achieve net zero by 2050. However, a May 2025 memo presented to senior executives indicates the urgency to source renewables has 'diminished,' and the plan to hit net zero in the Pilbara now has a 'low probability of success.'
Delayed Renewable Projects
The memo details options that would massively delay decarbonisation. A large wind and solar project, capable of powering 150,000 homes, has been put on ice. BHP also considered three scenarios for electrifying its truck and rail fleets: a central case pushing rollout to 2035, a deferred investment case starting in 2040, and a do-nothing option that would break commitments to shareholders.
An earlier solar and battery project near Jimblebar mine, approved with $390 million funding, was cancelled and amalgamated into a broader renewables project that now has no capital funding until at least 2031. Staff were shocked by the decision, which risked 'reputational risks to BHP as communities, government and shareholders expect near term action.'
Emissions and Subsidies
BHP's Australian operations emitted 7.22 million tonnes of CO2 last financial year, more than half of Western Australia's electricity grid emissions. The company consumed 1.23 billion litres of diesel and received $622 million in fuel tax credits, making it the largest recipient of Australia's fuel subsidy. Despite this, BHP has slowed its decarbonisation efforts, blaming the lack of available battery-electric truck technology.
Failed Beneficiation Plant
BHP quietly shelved plans for a beneficiation plant in the Pilbara that would have reduced scope-three emissions by 1.7 million tonnes annually, equivalent to taking 350,000 cars off the road. The project was rated as having 'excellent social value' and aligned with its climate plan, but was cancelled due to marginal economics.
Criticism of Government Policy
Experts say BHP's backtrack exposes weaknesses in Australia's safeguard mechanism, which allows companies to buy carbon offsets instead of making direct cuts. BHP has lobbied for changes to reduce its costs, including introducing cheap international offsets. The company's emissions from more than half its sites exceeded government limits last year, requiring it to purchase 225,000 carbon credits at a cost of less than $9 million.
Climate Energy Finance director Tim Buckley called BHP's climate transition plan 'marketing and greenwashing,' noting that its emissions cuts to date were largely due to a renewable energy agreement in Chile and the closure of a nickel mine. BHP's annual report forecasts direct emissions will increase in the five years to 2030.
In response, BHP stated it has reduced global emissions by 36% from 2020 levels and shifted 70% of its electricity use to renewables. It emphasised that the technology for electric trucks and trains is not yet ready for operational scale, and it is partnering with manufacturers on trials.
