BHP CEO predicts strong future under all scenarios

BHP's chief executive said his company had a strong future no matter how climate change and other developments play out.

Andrew Mackenzie told a conference the FTSE 100 miner's mix of businesses would do well under almost all scenarios. Decarbonisation, electric transport, the future of work and food security are among the themes BHP monitors, he said.

"Developments such as climate change and dramatic shifts in technology present both challenges and opportunities," Mackenzie said. "To make sure that we secure the future prosperity of our company, we constantly test our current assets and future options against many divergent scenarios for how the world will look well into the future.

"While nobody can predict what will happen with absolute precision, I am confident BHP's portfolio can thrive under almost all plausible outcomes in this changing world."

Miners and oil companies are under increasing pressure from campaigners and investors to minimise their impact on the environment and make their businesses sustainable for the long term. BHP has a target of net zero emissions by the second half of the century, in line with the UN goals for cutting carbon emissions.

Mackenzie said BHP had reduced its net debt by $16bn (£12.4bn) since the beginning of 2016, reinvested $20bn in the business and returned more than $25bn to shareholders.

"We have increased volumes, reduced costs, and kept our people safer at work. These actions lifted return on capital by around 50%," Mackenzie said. "These are strong outcomes. There is still substantial opportunity to maximise the value of existing assets to release latent capacity and improve performance … Regardless of how the world evolves, BHP is set up for a strong future."