Own BHP shares? Here's how the ASX 200 miner plans to slash emissions

Miners have come under pressure around the globe to mitigate the environmental impacts of their operations.

| More on:
Happy woman miner with her thumb up signalling Wyloo's commitment to back IGO's takeover of Western Areas nickel

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • BHP shares are looking greener
  • The company’s social value plan focuses on six ESG objectives, including decarbonisation
  • The ASX 200 miner’s 2030 scorecard enables shareholders to measure its progress and performance

BHP Group Ltd (ASX: BHP) shares are down 0.58% in early afternoon trade.

This comes amid a wider bout of selling that sees the S&P/ASX 200 Index (ASX: XJO) down 1.12% at this same time.

Despite the dip, the BHP share price remains up 7.6% over the past five days.

But let's take a closer look at how the ASX 200 mining giant plans to meet its emissions reduction and other social value targets.

BHP shares looking greener

It's been three years since BHP unveiled its preliminary social value plans.

Yesterday the miner's chief legal, governance, and external affairs officer, Caroline Cox, provided BHP shareholders with an update on those plans.

BHP is hardwiring social value into every level of decision-making across our global business, from company strategy and capital allocation to everyday activities at our operations…

Our new social value framework and 2030 scorecard outline the goals, metrics and milestones against which our investors and stakeholders can measure our progress and performance.

The scorecard in question has six ESG objectives: decarbonisation, environment, Indigenous partnerships, workforce, communities, and supply chains.

On the environmental front and adding a tinge of green to BHP shares, the scorecard sets a new environmental goal. By 2030, the miner aims to have at least 30% of the land and water that it holds under "conservation, restoration or regenerative practices".

According to Cox:

By embedding social value into the way we do business, we believe we will further strengthen our relationships and access to the best resources, partners, markets and talent to discover and produce the minerals required for global economic development and decarbonisation, which will in turn create competitive advantage.

Essential commodities

Cox also reminded BHP shareholders of the essential nature of the company's business.

"The commodities we produce are essential to everyday life," she said. "From infrastructure that connects us globally to providing the fundamental ingredients for renewable energy and decarbonisation, and food security."

Atop that, she pointed to the "significant economic contribution" BHP makes to the nations and communities where it operates.

"In FY21, we contributed more than 40 billion US dollars in wages, taxes, royalties, dividends, and payments to suppliers," she said.

How have BHP shares been performing?

Taking a longer-term view, BHP shares are up 85% over the past five years. That compares to a 17% gain posted by the ASX 200 over that same period.

BHP also pays an 11.6% trailing dividend yield, fully franked.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ESG

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
ESG

Why I don't invest in 'ethical' ASX shares

Here's why we need to be careful when investing 'ethically'.

Read more »

a close up of two people shake hands in front of the backdrop of a setting sun in an outdoor setting.
Resources Shares

Rio Tinto share price marching higher amid $426 million 'industry-leading' step

Rio Tinto shares are outpacing the ASX 200 on Monday. But why?

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

Own Woodside shares? Here's why tomorrow is shaping up to be a big day

Why is Wednesday so important for Woodside shareholders?

Read more »

Image of a woman holding a model of earth on a green backdrop.
ESG

The ESG investing revolution: What you need to know to profit

ESG investing is changing the way investors approach the ASX.

Read more »

asx share penalty represented by lots of fingers pointing at disgraced businessman Crown royal commission WA
Resources Shares

Rio Tinto share price slips amid an unrelenting ESG grilling

ESG advocates and investment managers questioned Rio Tinto management at last night's British AGM.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Energy Shares

Australian first: Why Woodside shares are making news this week

Woodside shares are making news after the ASX 200 energy stock took this Australian first ‘valuable step’.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
ESG

3 ethical ASX shares poised to outperform in 2024

This leading fund manager sees strong potential gains ahead in 2024 for these three ethical ASX shares.

Read more »