NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Markets / Commodities

Christopher Niesche: Miner's green move breaks new ground

Christopher Niesche
By Christopher Niesche
Business Writer·NZ Herald·
28 Jul, 2019 05:00 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Andrew Mackenzie says oil and coal giant BHP will also link emissions to it executive bonus scheme. Photos / Getty Images

Andrew Mackenzie says oil and coal giant BHP will also link emissions to it executive bonus scheme. Photos / Getty Images

Christopher Niesche
Opinion by Christopher Niesche
Business Writer
Learn more
BHP Billiton drawing powerful line in sand for industry in becoming first to set emissions goals for customers.

COMMENT

For as long as the world has been worried about greenhouse gases, miners have taken a head-in-the-sand approach to the carbon emissions produced by their products.

It's not our fault if someone buys the coal or the oil we produce and that their burning of our products emits carbon, the miners have argued. It's akin to saying coal doesn't cause emissions, people cause emissions.

But this all changed last week, when for the first time a mining company acknowledged some responsibility for how its products are used after they have left the mine gate.

Advertisement
Advertise with NZME.

And it wasn't just any miner, but the world's second largest miner, BHP, which was founded in far Western NSW in 1885.

The oil and coal miner announced it would become the world's first miner to set goals for its customers, such as steel mills and power plants, to cut their emissions.

"These emissions are generated as customers transport, transform and use our products to serve the needs of billions of people," chief executive Andrew Mackenzie said in a speech in London.

Linking its emissions reduction targets to the targets set at the Paris climate change conference in 2016, Mackenzie said the mining company will next year set targets to reduce emissions from its own operations as a first step to zero carbon emissions.

Advertisement
Advertise with NZME.

But it will also focus on what's known as Scope 3 emissions, those arising from an organisation's activities but occurring at sources beyond their ownership or control. These are usually the greatest share of an organisation's carbon footprint, covering emissions associated with business travel, procurement, waste and water. They are also the result of use of an organisation's products by other companies or people — that is customers.

Mackenzie saying that customers' emissions from the use of its products are almost 40 times higher than the emissions from its own operations.

Discover more

Business

Christopher Niesche: New Telstra strategy not without risk

30 Jun 07:00 AM
Business

Christopher Niesche: Where's the consumer guarantee for property?

14 Jul 03:07 AM
Business

The $1b Kiwi blockbuster you've never heard of

27 Jul 12:01 AM
Business

NZ dollar treads water ahead of central bank rate-cutting

29 Jul 05:17 AM

"We won't stop at the mine gate we will also increase our focus on Scope 3 emissions," he said.

"We must take a product stewardship role for emissions across our value chain and commit to work with shippers, processors and users of our products to reduce Scope 3 emissions."

BHP has also committed US$400 million ($603m) to develop new technologies to reduced its own and its customers' emissions. Additionally, the company will explicitly link carbon emissions to its executive bonus scheme.

"Over the next five years this programme will scale up low emissions technologies that decarbonise our operations. It will drive investment in nature-based solutions and encourage further collective action on Scope 3 emissions," Mackenzie said.

"We hope that greater commercial success of these investments will breed even greater ambition and create even more partnerships to respond effectively to the climate challenge."

Mining companies have long been reluctant to tackle the emissions caused by their customers' use of their products.

Advertisement
Advertise with NZME.

Much more typical than BHP's stance is the attitude BHP's rival Rio Tinto, which earlier this year rejected a resolution at its annual meeting to set targets for its emissions, including Scope 3.

The Anglo-Australian behemoth argued it had only "limited control" over the emissions of its customers.

Instead, Rio Tinto has focused on reducing carbon emissions from its own operations. While this allows the company to pose as a responsible corporate citizen and helps it pad out its environmental, social and governance reports, it does little to address the problem of global warming.

In light of this figure, it is hard to see the environmental "efforts" of any miner which isn't trying to reduce its customers' emissions as anything more than window dressing.

Rio Tinto's own operations generated 28.2 million tonnes of greenhouse emissions in 2018. This might sound like a lot, but is tiny when compared to the 536 million tonnes its customers emitted by consuming Rio Tinto products.

Of course, BHP wants to ensure a viable market for its products. It is smart to encourage their use in a less carbon intensive way.

It needs to stop or slow the growing movement for investors to divest fossil fuels from their portfolios by making those fuels more palatable. Other companies such as Rio Tinto have taken a different approach and have responded to the movement by divesting its coal assets, but BHP argues we still need coal, such as to make steel for cars and buildings.

While there is speculation that BHP might sell its thermal coal division — which produces coal for power stations — it will hold on to its metallurgical coal division, which mines coal for steel making, so it has a lot riding on this recent initiative.

Even so, there is some way to go for BHP on this initiative. Over the next year or so, it will have to set targets for Scope 3 emissions and detail how it will work with customers to reduce them. Only then will we have confirmation of how seriously it is taking its commitment. For instance, will it continue to sell coal to customers who can't or won't reduce their emissions?

Nonetheless, in an environment when consumers, investors and governments are asking companies to take more responsibility for the environmental and societal costs of their products, the move is highly significant.

It places a huge amount of pressure on others to follow suit.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from Commodities

Premium
Energy

NZ's power system well-placed for winter - analyst

08 Jun 11:00 PM
Premium
Agribusiness

Dairy prices end NZ season on a flat note, will they stay high in 2026?

20 May 11:58 PM
Premium
Shares

Gold hits $3500 as stocks rebound amid trade war fears

22 Apr 07:13 PM

Kaibosh gets a clean-energy boost in the fight against food waste

sponsored
Advertisement
Advertise with NZME.

Latest from Commodities

Premium
NZ's power system well-placed for winter - analyst

NZ's power system well-placed for winter - analyst

08 Jun 11:00 PM

Lake levels are close to average, easing fears of a power shortage.

Premium
Dairy prices end NZ season on a flat note, will they stay high in 2026?

Dairy prices end NZ season on a flat note, will they stay high in 2026?

20 May 11:58 PM
Premium
Gold hits $3500 as stocks rebound amid trade war fears

Gold hits $3500 as stocks rebound amid trade war fears

22 Apr 07:13 PM
Premium
Chicken exports normalising after flu outbreak – MPI

Chicken exports normalising after flu outbreak – MPI

20 Apr 07:00 PM
Engage and explore one of the most remote places on Earth in comfort and style
sponsored

Engage and explore one of the most remote places on Earth in comfort and style

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP