BHP and Rio Tinto recommit to diversity, ESG initiatives

Mining giant BHP is doubling down on its commitment to diversity, equity and inclusion (DEI) initiatives, while Rio Tinto has agreed to improve its scope 3 emissions disclosures

BHP chief executive Mike Henry, facing a question from an investor who pleaded for the company to reject DEI and return to “meritocracy”, argued the company’s diversity policies had boosted “operational performance” and rejected the position there was a disconnect between DEI aspirations and delivering shareholder returns.

“At the same time we have been focused on those things, company performance has lifted,” he said.

“We’ve gone from being an operational laggard in the industry to now leading the industry when it comes to our op performance. Returns for shareholders have been strong.

“And so not only do I believe both things can be achieved in parallel, I believe that what is required to achieve some of those things actually boosts underlying performance as well.”

The $214bn behemoth is pursuing a range of diversity and environmental, social and governance commitments, from a gender balanced workforce by 2025 to net-zero operational emissions by 2050.

Mr Henry reaffirmed the company was working with equipment manufacturers to deliver battery electric trucks and locomotives to its mine sites at the end of this decade.

BHP has already signed an MOU with car giant Toyota to electrify its 5000 diesel-powered work vehicles.

It is also purchasing renewable energy to power its mine sites.

Meanwhile, Rio Tinto on Tuesday agreed to enhance its focus on working with customers to reduce their carbon emissions during the steel making process.

The miner committed to improve disclosure on investments to reduce scope 3 emissions.

Rio has budgeted up to $US6 billion on decarbonisation efforts until the end of the decade, which is lower than the $US7.5b goal it had up until December.

Last month Rio and BHP joined forces to accelerate the decarbonisation of iron ore and future-proof the viability of WA’s Pilbara region in a net zero economy.

Rio Tinto and BHP in conjunction with Bluescope Steel announced they would launch a feasibility study to create an electric smelting furnace that would create a lower carbon product and pave the way for a net zero steelmaking industry in Australia.