Mining giant BHP has committed to invest $400m as part of its Climate Investment Programme over the next five years to reduce greenhouse gas emissions.

The company’s Climate Investment Programme is aimed at developing technologies to reduce emissions generated from its own operations and through the use of its resources.

BHP CEO Andrew Mackenzie said: “Over the next five years this programme will scale up low-carbon technologies critical to the decarbonisation of our operations. It will drive investment in nature-based solutions and encourage further collective action on scope three emissions.

“Commercial success of these investments will breed ambition and create more innovative partnerships to respond collectively to the climate challenge.

“We must take a product stewardship role for emissions across our value chain and commit to work with shippers, processors and users of our products to reduce scope three emissions.”

Key measures under the BHP Climate Investment Programme include plans to set up a medium-term, science-based target for scope one and two emissions. This will be in line with the Paris Agreement.

The company plans to develop a new climate portfolio analysis report next year to evaluate the potential impacts.

BHP intends to strengthen the link between emissions performance and executive remuneration, which will be made clear from 2021.

Mackenzie concluded: “We require a considered and orderly transition to a lower-carbon world, in which resource companies like BHP have both critical expertise and a key role to play.”

BHP has a short-term goal to cap 2022 emissions at 2017 levels, aiming to have net-zero emissions by mid-century as its long-term goal.