Climate change and climate transition planning is a material governance and strategic issue for us, our Board and management as described in the BHP Annual Report 2025, Operating and Financial Review 9.2 – Sustainability governance. Therefore it is essential we continue to build capability and culture at appropriate levels across our organisation to enable us to deliver on our climate change strategy, including our greenhouse gas (GHG) emissions targets and goals. 

Board skills

The BHP Board is responsible for overseeing our approach to sustainability and sustainability performance, including the topics of safety, health, community, environment and climate change. All four standing Board Committees support the Board’s oversight of sustainability-related issues including climate-related risks (threats and opportunities).    

The Board maintains a skills matrix that identifies the skills and experience the Board needs for the next period of BHP’s development, considering BHP’s circumstances and the changing external environment.   

The Board collectively possesses all the skills and experience set out in the skills matrix. The Board, supported by the Nomination and Governance Committee, reviews the skills and diversity presented by the Directors on the Board and determines whether the composition and mix of those skills remains appropriate to achieve our purpose and strategy. 

Examples of activities in the training and development program include briefings, development sessions and deep dives to provide each Director with a deeper understanding of the activities, environment issues and direction of our assets, along with broader sustainability, climate-related, geopolitical and cybersecurity considerations.

Management skills

Management plays a key role in assessing and managing sustainability-related matters, which includes: 

• The CEO and Executive Leadership Team (ELT) execute sustainability-related policies and strategy approved by the Board and are accountable for performance and achievement of BHP’s sustainability-related commitments, targets and goals, including our climate change targets and goals. 
• The Operating Committee is a sub-committee established by the CEO pursuant to the Executive Leadership Team Charter to assist the CEO and the ELT in delivering BHP’s operational commitments and supporting excellent operational performance. 

Organisational training 

We conduct periodic capability reviews for our employee workforce for roles across our business with climate-related accountabilities to help us design and deliver training to support capability improvement. To support organisational capability, we: 

• Identify all roles with climate-related accountabilities: In our last organisational review, we identified over 2,000 roles. 
• Define the capabilities required in these roles: We have linked capabilities to role profiles. 
• Design and deliver training to enable capability lift: We develop training with subject-matter experts internally and externally. Our training is delivered via an internal organisational learning management system with completion required and monitored for certain roles. 

From our last organisational review, we identified, developed and delivered training including, ‘Introduction to climate change’, ‘Physical climate-related risk and adaptation’, ‘Scope 3 emissions’ and ‘Energy and Carbon accounting’. 

Organisational culture

Our enhancement of climate-related capabilities in turn enables a culture shift – as the practice of factoring climate-related risks, impacts and dependencies into decision-making increasingly becomes business-as-usual for those equipped with an understanding of these concepts. 

We regularly run internal communication campaigns to inform and educate our workforce about our climate change strategy and progress.  

We hold a quarterly internal Sustainability and Climate Community of Practice to deliver updates on external developments and our latest progress, and to enable sharing of best practice across the organisation. 

Our Health, Safety, Environment and Community (HSEC) Awards recognise and celebrate the innovation and contribution of our workforce to making our workplaces and the communities where we operate more sustainable, including through climate-related initiatives. They recognise achievement on an individual and team level, and are designed to identify, commend and replicate best practice, inspire new ideas and further embed consideration of areas, such as climate change, into what we do.