Climate Change
The global community has the potential to reduce the worst effects of climate change and clearly the greatest benefits will come from acting early to meet this challenge. Alliances to tackle this challenge will need to cross national and cultural boundaries, but the developed world has a clear leadership responsibility. Scientists tell us the world must aim to stabilise global carbon dioxide concentrations in the range of 450 parts per million to avoid the most severe climate impacts. A post-2012 international climate framework must establish binding commitments for all developed and major developing economies if real reductions in global emissions are to be achieved.
From our perspective, we see the key principles for an effective global response as including:
- a global regime that prices carbon to allow enough certainty for investment in abatement opportunities to occur
- strong measures to help avoid deforestation and fund reforestation
- policy solutions that promote energy efficiency.
Business leadership and ingenuity is important to achieving lower carbon growth and as a major natural resources company we are committed to playing our part. We are working within our businesses and with governments, industry and other stakeholders to address this global challenge and find lasting solutions. We have taken measures to improve our management of energy and greenhouse gas emissions and to prepare for the regulatory, physical and reputation risks of climate change. Details of these actions are provided in our public response to the Carbon Disclosure Project.
Measurement of greenhouse gas and energy use
We have set efficiency targets for our greenhouse gas emissions and energy use to assist in improving our performance.
In FY2009, we experienced a six per cent decrease in our overall greenhouse gas emissions. This was mainly due to the closure of several operations related to the global economic downturn.
We have five-year targets of a six per cent reduction in our greenhouse gas emissions intensity index and a 13 per cent reduction in our carbon-based energy intensity index, both by 30 June 2012.
Our greenhouse intensity index is currently tracking at three per cent above our FY2006 base year. The chart displays our greenhouse gas intensity for FY2008 and FY2009 as a percentage of the base year (FY2006 = 100 per cent). This represents our intensity performance minus the impact of changing electricity generation factors over which we had no control.
Our carbon-based energy intensity index is currently tracking at eight per cent above our FY2006 base year. The Australian Government passed the Energy Efficiency Opportunities (EEO) Act in 2006 to improve the identification and evaluation of energy efficiency opportunities by large energy users. The results of our second year in the EEO program will be available publicly on our website in December 2009.
Data measurement and reporting
We have had energy and greenhouse gas data collection and verification processes in place for many years to support our voluntary reporting. However, the activity required to comply with emerging reporting obligations has increased significantly. In Australia, a National Greenhouse and Energy Reporting (NGER) Scheme was launched in July 2008, intended to provide emissions liability information to underpin the proposed Australian Carbon Pollution Reduction Scheme.
To assist in meeting these reporting requirements, along with external assurance requirements, BHP Billiton is investing in improvements to our energy and greenhouse data collection processes. Recent developments include launching a new data reporting system.
