BHP
Mining & MetalsAustraliaDemo Report

Overview

Climate risk summary for BHP — Mining & Metals, Australia

BHP is a leading global resources company with a diverse portfolio spanning iron ore, copper, coal, and petroleum. Headquartered in Australia, BHP faces significant transition risks from decarbonization and physical risks from climate hazards affecting its mining operations across multiple continents.

Emissions

Greenhouse gas emissions across all scopes — current year and reduction trajectory

Scope 1 Emissions
7M
tCO₂e
1.9% of total
Scope 2 Emissions
1M
tCO₂e
0.3% of total
Scope 3 Emissions
378M
tCO₂e
97.8% of total
WACI — Scope 1
145.2
tCO₂e / $M revenue
WACI — Scope 1 & 2
170.7
tCO₂e / $M revenue
WACI — All Scopes
7592.9
tCO₂e / $M revenue
Baseline Trajectory
Emissions without active decarbonisation targets (MtCO₂e)
Targets-Based Trajectory
Emissions assuming company reduction targets are met (MtCO₂e)
How are these emissions estimated?

Emissions are modelled using machine learning models trained on reported emissions from 9,000+ public companies. Non-linear patterns are encoded into estimates using financial metrics as inputs.

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Climate Risk

Financial value at risk from transition and physical climate exposures

Climate Scenario
Assumptions used for this analysis
A range of financial assumptions can affect the climate transition risk analysis where carbon pricing is applied throughout the pro forma.
EV/EBITDA: 6.18xP/E Ratio: 13.00xCOGS (% of Revenue): 53.4%SG&A (% of Revenue): 6.0%Accounts Receivable (% of Revenue): 10.0%Accounts Payable (% of Revenue): 8.0%Revenue Growth Rate: 4.0%CapEx (% of Revenue): 4.0%Interest Rate: 5.8%Tax Rate: 40.2%Dividend Payout Ratio: 65.0%Max Cash (% of Revenue): 10Debt Adjustment Toggle (1=On, 0=Off): 1FCF Threshold ($M): $0MWACC (Discount Rate): 8.0%
Total Climate Value at Risk
Scenario: NGFS Below 2°C · USD millions · $0 = no risk, more negative = greater exposure

Transition Risk

Financial impact of carbon pricing, regulatory costs, and market transition on company value

2025 Annual Carbon Cost
$1.0B
2.0% of revenue
NPV Total Carbon Exposure
$17B
Net present value of all future carbon costs
Enterprise Value Erosion
-13.0%
-$20B on current EV
Carbon Cost Trajectory
Scenario: NGFS Below 2°C · USD millions
EBITDA Impact of Carbon Pricing
Baseline vs Targets based EBITDA impact · USD millions
Pro Forma Financials from carbon budget and price
Scenario: NGFS Below 2°C
USD millions
Metric2025 Baseline2025 w/ Targets2030 Baseline2030 w/ Targets2050 Baseline2050 w/ Targets
Income Statement
EBITDA-$1.0B-$1.0B-$3.1B-$1.7B-$32.7B$0.0M
EBITDA Margin-0.0%-0.0%-0.0%-0.0%-0.2%0.0%
EBIT-$1.0B-$1.0B-$3.1B-$1.7B-$32.7B$0.0M
Net Income-$626.1M-$626.1M-$1.8B-$1.0B-$19.6B$0.0M
Net Income Margin-0.0%-0.0%-0.0%-0.0%-0.1%0.0%
Carbon Cost
Carbon Cost$1.0B$1.0B$3.1B$1.7B$32.7B$0.0M
Carbon Cost % Revenue0.0%0.0%0.0%0.0%0.2%0.0%
Carbon Cost Cash Outflow$1.0B$1.0B$3.1B$1.7B$32.7B$0.0M
NPV Carbon Costs$79.7B$16.7B
Balance Sheet & Credit
Total Assets$0.0M$0.0M-$2.0B-$1.4B-$61.5B-$6.8B
Total Debt$0.0M$0.0M$0.0M$0.0M$0.0M$0.0M
Total Equity$0.0M$0.0M-$2.0B-$1.4B-$61.5B-$6.8B
Retained Earnings$0.0M$0.0M-$2.0B-$1.4B-$61.5B-$6.8B
Debt / EBITDA0.060.060.130.070.630.00
Interest Coverage-0.74-0.74-2.16-1.18-23.090.00
Cash Flow
Free Cash Flow (Levered)-$626.1M-$626.1M-$1.8B-$1.0B-$19.6B$0.0M
Ending Cash Position$0.0M$0.0M-$2.0B-$1.4B-$61.5B-$6.8B
Valuation
Debt/EBITDA ratio0.060.060.130.070.630.00
EV/EBITDA Valuation-$7.8B-$7.8B-$18.8B-$10.2B-$91.4B$0.0M
P/E Valuation-$11.7B-$11.7B-$25.9B-$14.1B-$104.5B$0.0M
EV Erosion (DCF)-$0.6M-$0.1M
Blended TVaR-$9.8B-$9.8B-$22.3B-$12.2B-$98.0B$0.0M

Market Based Physical Risk

Enterprise value at risk from acute and chronic physical climate hazards

Market-Based Physical Value at Risk (PVaR)
Enterprise value at risk from acute and chronic physical hazards · company-level · Baseline scenario
2025 Total PVaR
$32M
NGFS Below 2°C
2030 Total PVaR
$94M
NGFS Below 2°C
2050 Total PVaR
$628M
NGFS Below 2°C
Total PVaR Trajectory
By scenario · USD millions

Asset Climate Hazard Analysis

Climate hazard exposure across 12 assets — average annual loss by peril and scenario

Current AAL (Baseline 1980)
$51M
RCP 4.5 AAL (2050)
$61M
RCP 8.5 AAL (2050)
$58M
Portfolio AAL Composition
Baseline + 2050 RCP 8.5 delta by hazard · USD / yr
BaselineRCP 8.5 Δ
Top Assets by Climate Δ AAL
2050 RCP 8.5 increase vs. baseline · USD / yr · top 5
AAL by Hazard Type
Portfolio total · click a pin to explore an asset
Asset value: $32B
How is Average Annual Loss (AAL) calculated?

AAL represents the expected financial loss from a physical hazard in any given year, averaged across all possible event intensities and their probabilities. It is derived from hazard models that combine historical climate data with forward-looking scenario projections, applied to each asset's location, construction type, and replacement value. Baseline AAL reflects current climate conditions; Scenario AAL incorporates projected shifts in hazard frequency and severity under each warming pathway.

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Asset Exposure Detail
AssetValueWildfire AALCyclone AALCoastal Flood AALRiver Flood AAL
BaselineRCP 4.5RCP 8.5BaselineRCP 4.5RCP 8.5BaselineRCP 4.5RCP 8.5BaselineRCP 4.5RCP 8.5
Peak Downs Coal Mine$6.2B$22073K$23026K$22196K$15K$920K$640K
Caval Ridge Coal Mine$5.1B$11683K$12120K$11756K$9K$471K$342K
Area C Mine$4.5B$4181K$6180K$6061K$0K$0K
South Flank Mine$3.6B$4050K$5824K$5754K$0K$0K
Goonyella-Riverside Coal Mine$4.8B$3568K$3644K$3573K$15K$563K$426K
Jimblebar Mine$3.1B$1848K$2587K$2538K$0K$0K
Mount Whaleback Mine$2.0B$1337K$1982K$1924K$0K$0K
Mount Arthur Coal Mine$300M$1043K$1439K$1241K
Yandi Mine$900M$652K$967K$961K$0K$0K
Eastern Ridge Mine$700M$525K$745K$729K$0K$0K$3K$3K
Yarnima power station$170M$107K$157K$152K$0K$0K
Kelar power station$600M