Greenhouse Gas Emissions
Refer to the following sections for details on our key sustainability challenge of greenhouse gas emissions:
Our Challenge
Our challenge as a member of global society is to help meet the world's minerals and energy needs while mitigating the potential impact of greenhouse gas emissions on the climate.
BHP Billiton is both a user and producer of fossil fuel energy products that create greenhouse gas emissions. Scientific evidence suggests that greenhouse gas emissions associated with fossil fuel consumption and other human activity are contributing to global warming. Global warming may be associated with an increasing frequency of extreme weather conditions that could have a significant impact on the environment and the quality of human life.
Looking forward over the next two decades, global demand for minerals and energy is anticipated to continue to grow, with the strongest growth in developing countries. Access to affordable energy, minerals and metals is a critical component of poverty alleviation and social and economic development and, therefore, will remain central to society.
Our Drivers
Our approach to addressing the challenge of climate change is driven by a desire to:
- respond to customer needs. Many of our customers, particularly in Europe, have their greenhouse gas emissions regulated. We can create value by continuing to explore ways to assist customers to reduce their emissions footprint.
- respond to community expectations and government regulations. The communities in which we operate and where we sell our products are concerned about the impacts of climate change within their national borders and globally. To earn their respect and attract and retain employees, we must take a stewardship approach and be recognised as a responsible company.
- protect long-term growth in shareholder value. As a result of climate change, we expect that customers will seek to diversify their fuel supplies. The range of possible changes to energy markets is wide, and analysis and actions to take account of these is one driver of our strategy. Failure to respond to customer needs and to anticipate regulatory change will ultimately impact on the demand for our products and the costs of doing business.
- Protect the value of our assets. We must assess risk and prepare appropriately for climate change-related events that could affect our operations.
Our Approach
Our approach to this sustainability challenge is focused on:
- controlling the emissions that we produce at our sites
- seeking ways to reduce the emissions produced by our customers when they consume our products, both now and in the future.
Read more:Environment>Our Approach>Climate Change.
Our 2006 Priorities
In 2005/06, our focus was directed towards:
- continuing to improve energy efficiency at our sites, and managing knowledge in this area
- improving the preparedness of our operations for climate change-related events
- product stewardship – the impacts on climate change of sourcing, producing, supplying and using products.
Read more:Environment>Our Performance>Emissions for a full description of emissions performance in 2005/06.
Our 2006 Performance
Targets |
2005/06 Performance Against Target |
|
|---|---|---|
Legal Compliance |
 |
Seven fines greater than US$1,000. Total fines paid US$479,809 (FY05: US$20,836)2 |
All sites to undertake annual self-assessments against the BHP Billiton HSEC Management Standards3 and have plans to achieve conformance with the Standards by 30 June 2008 |
 |
94 per cent of required self-assessments were completed at operating sites (FY05: 100 per cent) |
 |
An overall conformance of 3.9 out of 5 has been achieved, compared to our conformance target of greater than 4 (FY05: 3.9 out of 5) |
|
All sites4 to maintain ISO 14001 Certification |
 |
98 per cent of sites requiring ISO 14001 are certified or have been recommended for certification by their ISO auditor (FY05: 100%) |
Risk Management |
|
Risk registers are in place at 99 per cent of required sites, businesses and Corporate offices (FY05: 100%) |
Energy and Greenhouse |
|
Energy conservation plans in place at 98 per cent of required sites and at eight sites that were below the emissions threshold (FY05: 100%, 11 sites) |
All sites with emissions greater than 100,000 tonnes per year of carbon dioxide equivalent5 are required to have and maintain greenhouse gas management programs |
|
Greenhouse gas management programs in place at 98 per cent of required sites and at seven sites that were below the emissions threshold (FY05: 100%, 12 sites) |
Aggregate Group target for reduction in greenhouse gas emissions per unit of production of 5% by 30 June 2007 |
 |
During the year our greenhouse gas intensity index increased by 3 per cent, resulting in an overall reduction to date of 8 per cent against the baseline6 |
-
Performance change since last reporting period:
Overall performance against target:
Target exceeded or ahead of schedule 
Performance tracking steadily 
Target achieved (≥ 95%) or on track 
Performance has improved 
Target behind schedule 
Performance has declined Target not achieved
1. Fines reported may relate to incidents that occurred in previous years.
2. Prosecutions included are those that have been determined during the year and
resulted in fines. They may relate to incidents that occurred in previous years.
The only exception is a safety fine, which was received in the 2005 reporting period but was not reported last year as it was being held in trust pending appeal. The fine became payable in the 2006 reporting period.3. Issue 3 of the BHP Billiton HSEC Management Standards was introduced in
September 2005.4. Includes 59 sites in total, excludes exploration and development projects,
sites being divested, closed sites, and offices. Also excludes recent acquisitions
e.g. WMC, which have two years to achieve compliance with target.5. Forty-eight sites have emissions greater than 100,000 tonnes per year of carbon
dioxide equivalent and, combined, account for 98 per cent of the Group’s
greenhouse gas emissions.6. The Group’s intensity indices have been modified to exclude data from the
Chrome business in all years, including the base year, as it was divested.
Ex-WMC sites data have not been included in intensity indices as they were
not part of the business when the baselines were set.
Read more: Targets Scorecard for a review of performance against all Company sustainability targets.
Our Goals
- Establish a process for Australian operations to meet Energy Efficiency Opportunity legislation, effective 1 July 2006.
- Undertake further energy efficiency reviews at all BHP Billiton sites to continuously improve our performance
- Participate in sector initiatives to define and share leading energy efficiency practice.
