BHPLF BHP Billiton Ltd (PK)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

27 August 2024

BHP GROUP LIMITED

(ABN 49 004 028 077)

(Exact name of Registrant as specified in its charter)

VICTORIA, AUSTRALIA

(Jurisdiction of incorporation or organisation)

171 COLLINS STREET, MELBOURNE,

VICTORIA 3000 AUSTRALIA

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: ☒ Form 20-F ☐ Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: ☐ Yes ☒ No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a

BHP CLIMATE ACTION TRANSITION PLAN 2024 Bringing people and resources together to build a better world

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Important notice The Climate Transition Action Plan 2024 is available at bhp.com BHP Group Limited’s registered office and global headquarters are at 171 Collins Street, Melbourne, Victoria 3000, Australia. ‘BHP’, the ‘Group’, ‘our business’, ‘organisation’, ‘we’, ‘us’ and ‘our’ refer to BHP Group Limited and, except where the context otherwise requires, our subsidiaries. Refer to Financial Statements note 30 ‘Subsidiaries’ in the BHP Annual Report 2024 available at bhp.com for a list of our significant subsidiaries. Those terms do not include non-operated assets. This Climate Transition Action Plan (CTAP) covers functions and assets (including those under exploration, projects in development or execution phases, and sites and operations that are closed or in the closure phase) that, as at the date of this CTAP, are wholly owned and operated by BHP or are owned as a BHP-operated joint venture (referred to in this CTAP as ‘operated assets’ or ‘operations’), unless otherwise stated. BHP also holds interests in assets that are owned as a joint venture but not operated by BHP (referred to in this CTAP as ‘non-operated joint ventures’ or ‘non-operated assets’). Notwithstanding that this CTAP may include greenhouse gas (GHG) emissions data and/or other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise. References in this CTAP to a ‘joint venture’ are used for convenience to collectively describe assets that are not wholly owned by BHP. Such references are not intended to characterise the legal relationship between the owners of the asset. BHP Group Limited has a primary listing on the Australian Securities Exchange. BHP holds an international secondary listing on the London Stock Exchange, a secondary listing on the Johannesburg Stock Exchange and an American Depositary Receipts program listed on the New York Stock Exchange. Purpose This CTAP has been prepared for submission to an intended shareholder advisory vote at the 2024 Annual General Meeting of BHP. It has not been prepared as financial or investment advice or to provide any guidance in relation to the future performance of BHP. Nothing in this CTAP should be construed as either an offer or a solicitation of an offer to buy or sell BHP securities, in any jurisdiction, or be treated or relied upon as a recommendation or advice by BHP. This CTAP is intended to provide information from a perspective that may be different to that which is applicable to other disclosures, including our filings with the US Securities and Exchange Commission (US SEC). For instance, materiality, as used in the context of climate-related and/or sustainability-related disclosures may differ from the materiality standards applied by particular reporting regimes, including as defined for US SEC reporting purposes. Any issues identified as material for purposes of climate-related and/or sustainability-related matters in this CTAP are therefore not necessarily material for US SEC reporting purposes or for filings under other reporting regimes. Forward-looking statements This CTAP contains forward-looking statements, which involve risks and uncertainties. Forward-looking statements include all statements, other than statements of historical or present facts, including: statements regarding climate-related targets, goals and commitments; planned actions in relation to operational and/or value chain GHG emissions reductions or GHG emissions intensity reductions; projected GHG emissions; trends in commodity prices, carbon prices and currency exchange rates; demand for commodities; global market conditions; global responses to climate change; development and production forecasts; guidance; expectations, plans, strategies and objectives of management; the resilience of our portfolio under climate scenarios; approval of projects and consummation of transactions; suspension, closure, divestment, acquisition or integration of certain assets, operations or facilities (including associated costs or benefits); anticipated production or construction commencement dates; capital costs, operating costs and scheduling; availability of skilled employees; anticipated productive lives of projects, mines and facilities; the availability, implementation and adoption of new technologies, including artificial intelligence; and tax, legal and other regulatory developments. Forward-looking statements may be identified by the use of terminology including, but not limited to, ‘aim’, ‘ambition’, ‘anticipate’, ‘aspiration’, ‘believe’, ‘commit’, ‘continue’, ‘could’, ‘ensure’, ‘estimate’, ‘expect’, ‘forecast’, ‘goal’, ‘guidance’, ‘intend’, ‘likely’, ‘may’, ‘milestone’, ‘must’, ‘need’, ‘objective’, ‘outlook’, ‘pathway’, ‘plan’, ‘project’, ‘schedule’, ‘seek’, ‘should’, ‘target’, ‘trend’, ‘will’, ‘would’, or similar words. These statements discuss future expectations or performance, or provide other forward-looking information. Examples of forward-looking statements contained in this CTAP include, without limitation, statements describing: (i) our strategy, our values and how we define our success; (ii) our expectations regarding future demand for certain commodities, in particular copper, nickel, iron ore, steelmaking coal, potash and steel, and our intentions, commitments or expectations with respect to our supply of certain commodities, including copper, nickel, iron ore, potash, and uranium; (iii) our future exploration and partnership plans and perceived benefits and opportunities, including our focus to grow our copper and potash assets; (iv) our business outlook, including our outlook for long-term economic growth and other macroeconomic and industry trends; (v) our projected and expected production and performance levels and development projects; (vi) our expectations regarding our investments, including in potential growth options and technology and innovation, and perceived benefits and opportunities; (vii) our plans for our major projects, such as operational decarbonisation, and related budget and capital spend allocations and commitments; (viii) our expectations, commitments and objectives with respect to sustainability, decarbonisation, structural GHG emissions abatement, natural resource management, climate change and portfolio resilience; (ix) timelines and plans to seek to achieve or implement our objectives, including our approach to equitable change and transitions, our climate change strategy (including our approach to mitigation and adaptation), and our goals, targets, plans, pathways and programs to seek to reduce or support the reduction of GHG emissions, and related perceived risks (threats and opportunities), costs and benefits for BHP; (x) the assumptions, beliefs and conclusions in our climate-related statements and strategies, for example, in respect of future temperatures, energy consumption and GHG emissions, technology developments, credibility and availability of carbon credits and climate-related impacts; (xi) our commitments to social value; (xii) our approach to climate policy advocacy; (xiii) our commitments to sustainability reporting, frameworks, standards and initiatives; and (xiv) our commitments to achieve certain targets and outcomes with respect to Indigenous peoples and the communities where we operate. Forward-looking statements are based on management’s expectations and reflect judgements, assumptions, estimates and other information available, as at the date of this CTAP and/or the date of BHP’s planning processes or scenario analysis processes. These statements do not represent guarantees or predictions of future financial or operational performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual results to differ materially from those expressed in the statements contained in this CTAP. BHP cautions against reliance on any forward-looking statements. For example, the potential decarbonisation pathways and stages of progression that individual steelmakers in our value chain may take will vary, influenced by a range of factors, including: (i) global and national economic trajectories; (ii) government policy and regulatory settings; (iii) steel grades that need to be produced; (iv) land, labour and capital stock (including the age of existing infrastructure); (v) materials and energy; and (vi) technological advances. Other factors that may affect our future operations and performance, including the actual construction or production commencement dates, revenues, costs or production output and anticipated lives of assets, mines or facilities include: (i) our ability to profitably produce and deliver the products extracted to applicable markets; (ii) the impact of economic and geopolitical factors, including foreign currency exchange rates on the market prices of the commodities we produce and competition in the markets in which we operate; (iii) activities of government authorities in the countries where we sell our products and in the countries where we are exploring or developing projects, facilities or mines, including increases in taxes and royalties or implementation of trade or export restrictions; (iv) changes in environmental and other regulations; (v) political or geopolitical uncertainty; (vi) labour unrest; (vii) weather, climate variability or other manifestations of climate change; and (viii) other factors identified in the risk factors discussed in section 8.1 of the Operating and Financial Review in the BHP Annual Report 2024 and BHP’s filings with the US SEC (including in Annual Reports on Form 20-F), available on the US SEC’s website at www.sec.gov. In addition, there are limitations with respect to scenario analysis, including any climate-related scenario analysis, and it is difficult to predict which, if any, of the scenarios might eventuate. Scenario analysis is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eventuate, and scenarios may be impacted by additional factors to the assumptions disclosed. Except as required by applicable regulations or by law, BHP does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. Reliance on third party information This CTAP may contain climate- and sustainability-related disclosures that have been prepared by BHP on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. BHP has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness, reasonableness or reliability of such information. 2 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Contents Important notice 2 Resilience in our 1.5°C scenario 34 Copper, nickel, uranium and potash in our Important information about this 1.5°C scenario 35 Climate Transition Action Plan (CTAP) 4 Steelmaking, iron ore and steelmaking coal in our 1.5°C scenario 37 Introduction 5 A message from BHP Chair, Ken MacKenzie, Climate policy advocacy 39 and BHP Chief Executive Officer, Mike Henry 6 Our approach to policy advocacy 40 Our portfolio changes and highlights of our climate change strategy delivery so far 7 Our recent and planned policy engagements 41 Our climate change strategy and this CTAP at a glance 8 Physical risk and adaptation 42 Operational GHG emissions 10 Our approach to physical climate-related risk 43 Our target and net zero goal for operational Our management of physical climate-related risk 45 GHG emissions (Scopes 1 and 2 emissions) 11 Case study: Fostering community climate Spotlight: How we plan operational GHG resilience in Northern Chile 45 emission reductions in a dynamic environment 14 Our areas of focus to reduce operational Equitable change and transition 46 GHG emissions 15 Our approach to equitable change and transition 47 Spotlight: The Australian Government’s methods Spotlight: Our equitable change and transition for measuring fugitive methane emissions 16 principles 47 Spotlight: Influences on our operational Case study: Equitable transition for our Mt Arthur 48 GHG emissions target- and goal-setting 18 Coal mine Value chain GHG emissions 19 Enabling delivery 49 Our net zero goal for value chain GHG Our governance 50 emissions (Scope 3 emissions) 20 Our management, remuneration and organisational Steelmaking: Longer-term industry pathways 22 capability 51 Steelmaking: Our Scope 3 emissions goal to support How we manage climate-related risk (threats and capability for GHG emissions intensity reduction 24 opportunities) 52 Case studies: Steelmaking GHG emissions intensity How we manage capital 53 reduction projects 26 How we manage carbon credits 54 Direct suppliers: Our Scope 3 emissions net zero target for direct suppliers’ operational GHG emissions 28 Additional information 55 Shipping: Our Scope 3 emissions goal to support GHG Our Transition Plan Taskforce alignment 56 emissions intensity reduction and net zero target 29 Definitions and key details for our GHG emissions Spotlight: The International Maritime Organisation targets and goals 57 and its levels of ambition for international shipping 29 Our 1.5°C scenario assumptions and the signposts we monitor 61 Portfolio 31 Our 1.5°C scenario compared to benchmarks 62 Our portfolio strategy 32 Independent assurance report 63 Spotlight: Our planning range – what it is and Notes 64 how we use it 32 Glossary 66 Spotlight: Our 1.5°C scenario – what it is and how we use it 33 A Caterpillar zero-exhaust emissions haul truck, technology which is at a trial stage and key to future reductions in our operational GHG emissions 3 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Important information about this Climate Transition Action Plan (CTAP) How to use this CTAP 1 Navigation This CTAP is structured to present the most important areas of our climate change strategy. Navigate by clicking the menu at the top of every page. 2 Endnotes This CTAP uses clickable endnote numbers that will take you from any page that contains an endnote number to the Notes on pages 64 and 65. 3 Page references This CTAP uses clickable page cross-references to other pages in this CTAP. 4 Definedtermsandabbreviations This CTAP uses defined terms (without capital letters) and should be read in conjunction with all terms defined in the Glossary on pages 66 to 69. Certain key terms are hyperlinked at their first use in a relevant paragraph or section so you can click on it to go to the page in the Glossary that provides the definition. Later references to that term in the paragraph or section should be taken to have the same defined meaning. 1 3 2 4 Important information Presentation of our greenhouse gas (GHG) emissions data All the GHG emissions data in this CTAP is presented on an adjusted basis to provide the information most relevant to assessing progress against our GHG emissions targets and goals. The BHP GHG Emissions Calculation Methodology explains the different calculation approaches based on the purpose for which the data is being provided. Inherent uncertainty and limitations in measuring GHG emissions mean all GHG emissions data or volumes (including ratios or percentages) in this CTAP are estimates. Third-party data may not be comparable to our data due to different calculation methodologies or reporting approaches. The is available latest BHP at bhp. GHG com/climate Emissions Calculation Methodology Wheretofindimportantinformationin this CTAP and our annual reporting suite Our GHG emissions targets and goals We reference our GHG emissions targets and goals throughout this CTAP. for For the the targets essential and definitions, goals for our assumptions operational and GHG adjustments emissions (Scopes value chain 1 and GHG 2 emissions emissions from (Scope our 3 operated emissions), assets) as well and as Additionalinformation–Definitionsandkeydetailsfor more information on factors that inform them, refer to our GHG emissions targets and goals on pages 57 to 60 Non-operated assets Non-operated assets have their own operating and management standards. Non-operated assets do not form part of our operational GHG emissions as we use an operational control boundary for our calculation approach. Scopes 1 and 2 emissions from our non-operated joint venture interests are reported in our Scope 3 emissions inventory under Category 15 ‘Investments’ but are an insignificant source of Scope 3 emissions when compared to our total annual reported Scope 3 emissions inventory (based on FY2024 figures). refer For more to Value information chain GHG on our emissions approach – to Our non-operated net zero goal assets, for value 20 and chain 21 GHG emissions (Scope 3 emissions) on pages Alignment with the voluntary UK Transition Plan Taskforce Disclosure Framework When developing this CTAP, we considered the voluntary UK Transition Plan Taskforce Disclosure Framework, which aims to support companies to develop high-quality, consistent and comparable transition plan disclosures. this We illustrate CTAP with the the extent disclosure of the alignment elements of of the our Transition disclosures Plan in Taskforce Our Transition Disclosure Plan Taskforce Framework alignment in Additional on page information 56 – BHP Annual Reporting Suite We recommend this CTAP be read in conjunction with the latest BHP Annual Report to provide a more comprehensive view of past performance and future plans and for our annual reported Scopes 1, 2 and 3 emissions inventories (presented on both an adjusted and unadjusted basis): – The BHP Annual Report: Operating and Financial Review provides recent prior year and current progress against our climate change strategy, GHG emissions targets and goals, commitments and key metrics. – The BHP Annual Report: Governance provides an overview of governance structures, activities and remuneration incentives, some of which relate to our climate change strategy. – The BHP Annual Report: Financial Statements reflect or explain the potential financial statement impacts, where material or relevant, of the assumptions, plans and actions of our climate change strategy. The bhp. com/investors/annual-reporting latest BHP Annual Report is available at BHP ESG Standards and Databook The BHP ESG Standards and Databook provides detailed disclosures on our energy consumption and reported Scopes 1, 2 and 3 emissions inventory, including GHG emissions data for recent prior years (presented on both an adjusted and unadjusted basis). The is available latest BHP at bhp. ESG com/climate Standards and Databook BHP GHG Emissions Calculation Methodology The BHP GHG Emissions Calculation Methodology details how we calculate the GHG emissions in our reported Scopes 1, 2 and 3 emissions inventories and our alignment with the GHG Protocol series of standards and relevant guidance. The is available latest BHP at bhp. GHG com/climate Emissions Calculation Methodology 4

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Introduction AmessagefromBHPChair,KenMacKenzie,andBHPChiefExecutiveOfficer,MikeHenry Our portfolio changes and highlights of our climate change strategy delivery so far Our climate change strategy and this CTAP at a glance Enel Green Power’s hybrid renewable energy park. Enel Green Power provides renewable electricity to our Escondida and Spence assets 5 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 AmessagefromBHPChair,KenMacKenzie,andBHPChiefExecutiveOfficer,MikeHenry We’re pleased to share the latest update on our climate change strategy. It continues our multi-decade focus on climate and underscores our commitment to becoming a more sustainable and resilient business. This is important work that will help set us up to grow long-term value for shareholders. Much has changed in our portfolio since we released our first Climate Transition Action Plan in September 2021. We have increased our exposure to commodities that stand to benefit from the trends that will shape the world in the decades to come. We have divested our petroleum business. We are focusing our coal portfolio on the higher-quality steelmaking coals increasingly preferred by customers. And we have increased our exposure to copper and potash, with further growth to come. We expect the traditional drivers of demand for our key commodities to endure. That demand will only be amplified by the energy transition. What has not changed is our resolve to operate our business in ever more sustainable ways. Since the 1990s, we have set and achieved targets for Scopes 1 and 2 greenhouse gas (GHG) emissions from our operated assets. We call these operational GHG emissions and we are working to extend our track record of delivery through this plan. In doing so, we seek to give our partners and stakeholders confidence in the integrity of our plans and our ability to deliver them. That confidence is important – not just for shareholders, but also the broader public and policymakers. And we will all need to hold that confidence over multiple decades to achieve the world’s net zero transition. We remain on track to meet our operational GHG emissions target of at least a 30 per cent reduction by FY2030 against an FY2020 baseline.  Much of our early progress has come from the purchase of renewable electricity from large scale, grid-connected power assets. Importantly, nine out of our 10 power purchase agreements for renewable electricity are enabling the development of new generation. As a major and, in some cases, foundational customer, we play a key role in delivering the demand needed to secure investment in these projects. The next wave of our operational decarbonisation is going to require even more effort and investment. We estimate up to US$4 billion (nominal terms) in spend and commitments over the decade to FY2030 to execute our operational decarbonisation plans. This incorporates capital expenditure and lease commitments that were previously expected to be classified as capital expenditure. We apply our Capital Allocation Framework to help maximise the returns we achieve from the capital we invest to reduce operational GHG emissions. Our biggest remaining source of operational GHG emissions is diesel. Since CY2021, we have been working with the likes of Caterpillar and Komatsu to support the development of battery-electric trucks. We are trialling electric mining equipment and vehicles in Western Australia Iron Ore (WAIO) and Copper South Australia and will continue working with manufacturers on the electrification of more equipment in the years ahead. We are developing pathways for our long-term goal to achieve net zero operational GHG emissions by CY2050. Progress towards our medium-term target and long-term goal won’t be linear. To help achieve global net zero and support population growth, we will have to provide more of the resources the world needs, not less. That means production growth. More copper for electrification of transport and energy networks. More steelmaking raw materials to develop our cities and build renewable infrastructure. More potash to underpin our food security with more sustainable land use. While we work to decarbonise our operations, we also seek to support our suppliers and customers to do the same. As Scope 3 GHG emissions relate to their businesses, we cannot directly control them, however, we can seek to influence better outcomes through our procurement decisions and the investments and partnerships we choose to pursue. Our iron ore and coal products are mostly used for steelmaking, which is a GHG emissions intensive process that is currently hard-to-abate. We’re supporting multiple potential pathways to a lower GHG emissions future for steelmakers. We are working with and investing alongside our customers like ArcelorMittal, China Baowu, JFE, HBIS, POSCO, Tata Steel and Zenith – representing around 20 per cent of the world’s reported steel production – on projects to help support future reductions in steelmaking’s GHG emissions intensity. Another example is the partnership we have entered into with Rio Tinto and BlueScope on a potential Australian ironmaking electric smelting furnace pilot. This is promising technology, which could materially lower GHG emissions intensity and is also amenable to a wider range of iron ores. Through BHP Ventures, we are also investing directly in companies like Boston Metal and Electra, which are working to develop breakthrough processes that could one day produce near zero emissions steel. In shipping, we are using five dual-fuelled LNG vessels within our time-chartered fleet that, when run on LNG, reduce GHG emissions by voyage compared to conventional fuel. We are also working with other miners and shipping stakeholders to explore the potential for alternative fuels, such as low to zero GHG emission ammonia, in the future. By supporting and investing in various potential pathways, we want to help accelerate the development of technology that could not just benefit our value chain, but that of our broader industry. The road from ambition to abatement is hard. No business can navigate it alone. In fact, we need industry and government to walk it together to achieve the world’s net zero ambitions. This is why we continue to support government policies aligned with the goals of the Paris Agreement and conduct our advocacy efforts consistent with our Climate Policy Principles. Ken MacKenzie and Mike Henry This Climate Transition Action Plan reaffirms our intent to play our part in this global effort – producing more of the essential commodities the world needs to develop and decarbonise; investing to reduce our operational GHG emissions; and collaborating to support lower GHG emissions in our value chain. In doing this, we continue to reflect our purpose of bringing people and resources together to build a better world. We appreciate the engagement of shareholders and other stakeholders in the development of this plan and look forward to hearing your feedback on it in the weeks and months ahead. Thank you. Ken MacKenzie Mike Henry Chair Chief Executive Officer this For more message, information such as on ‘lower the defined GHG emissions’, terms used ‘near in zero Additional emissions’ information and ‘low to – Glossary zero emissions’, on pages refer 66 to to 69 6 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our portfolio changes and highlights of our climate change strategy delivery so far This page includes highlights of our delivery on our climate change strategy and portfolio changes since our first Climate Transition Action Plan (CTAP) in CY2021. Since the 1990s, we have set and achieved targets for our operational GHG emissions (Scopes 1 and 2 emissions from our operated assets),1 since the 2010s we have incorporated regional carbon price assumptions in our planning, investment decisions and asset valuations, and since CY2015 we have been analysing and periodically disclosing how various climate change scenarios might impact our portfolio. CY2021 CY2022 CY2023 CY2024 Published our first CTAP, which received an 84.9 per cent approval vote at our 2021 AGM Approved Stage 1 of our Jansen potash project to increase our exposure to future-facing commodities Jointly launched the ‘Charge On Innovation Challenge’ to develop new concepts for haul truck electrification Began steelmaking decarbonisation partnerships with HBIS, JFE and POSCO Invested (via BHP Ventures) in Boston Metal to accelerate the development of steelmaking electrolysis technology Became a founding member of the Global Centre for Maritime Decarbonisation Much has changed in our portfolio since we released our first CTAP. What has not changed is our resolve to operate our business in ever more sustainable ways.” BHP Chair and Chief Executive Officer Divested our Petroleum business to provide shareholders with further choice as to their exposure to oil and gas Divested our interest in BHP Mitsui Coal and Cerrejón to concentrate on higher-grade steelmaking coal Achieved our operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) short-term target2 Began trials with our first fully-electric jumbo (used to drill holes underground) Invested (via BHP Ventures) in Electra to accelerate the development of steelmaking electrolysis technology Launched the world’s first dual-fuelled LNG Newcastlemax bulk carrier vessel Joined the First Movers Coalition for the shipping sector and committed to 10 per cent of our time-chartered vessel shipped products being on vessels using zero GHG emission fuels by CY2030 Developed our principles for equitable change and transition Approved Stage 2 of our Jansen potash project to double future production capacity Acquired OZ Minerals to support the creation of a South Australia copper basin Achieved 100 per cent renewable electricity use at our Chilean operations in CY2022 and CY2023 Jointly established a ‘Mining Taskforce’ through CharIN to develop a global standard for electric mining equipment charging Established new steelmaking decarbonisation partnerships in India, South Korea and China Began a design study with Hatch for an electric smelting furnace pilot Updated and published our Climate Policy Principles to guide our government climate policy advocacy efforts Conducted and released our industry association review of our material memberships and their climate policy advocacy Agreed to jointly acquire Filo Corp with Lundin Mining to develop an emerging copper district with world-class potential Further high-graded our steelmaking coal portfolio through the divestment of BHP Mitsubishi Alliance’s (BMA) Blackwater and Daunia mines Began trials with our first fully-electric excavator Partnered with BlueScope and Rio Tinto to investigate the development of Australia’s first ironmaking electric smelting furnace pilot plant Putting this CTAP to an advisory vote at our 2024 AGM Portfolio Potash Oil and gas Copper Steelmaking coal Other areas of delivery Operational Climate policy GHG emissions advocacy Value chain Equitable change GHG emissions and transition 7 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our climate change strategy and this CTAP at a glance Our company strategy Our strategy is to responsibly manage the most resilient long-term portfolio of assets in highly attractive commodities, and to grow value through excellence in operations, discovering and developing resources, acquiring the right assets and options, and disciplined capital allocation. Through our differentiated approach to social value, we aim to be a trusted partner that creates value for all stakeholders. We do this by creating mutual benefit for BHP, our shareholders, Indigenous partners and the broader community. We are positioning our portfolio of commodities and assets to create value for today and the future. Over the last few years, we have repositioned our portfolio towards commodities that enable and support decarbonisation and electrification, urbanisation and a growing population. In our portfolio we have copper, iron ore, steelmaking coal, nickel, uranium and energy coal. Among other end uses, copper is used in electric vehicles, renewable energy technologies and the power grid; nickel is used in batteries; uranium is a feedstock for nuclear power; potash is used in fertilisers, which can assist with food security for a growing population and more sustainable land use; while iron ore and steelmaking coal create steel to build new infrastructure. As the global population grows and urbanises and the world pursues decarbonisation and electrification, we are positioning our portfolio to increase our exposure to these megatrends. We have made significant changes to our portfolio since our previous CTAP in CY2021. As we continue to build a portfolio of high-quality assets producing more of our chosen commodities, we are mindful of a global transition towards net zero. Operational (Scopes 1 and GHG 2 emissions emissions from our operated assets) from page 10 Our long-term goal is to achieve net zero operational GHG emissions by CY2050 Our medium-term target is to reduce our operational GHG emissions by at least 30 per cent by FY2030 from an FY2020 baseline 30% net FY2030 zero CY2050 Medium-term target Long-term goal Reducing our operational GHG emissions through structural GHG emissions abatement and staying on track to meet our medium-term target Procuring renewable electricity where feasible, and incentivising new renewable generation projects Working with original equipment manufacturers and industry groups to bring electric mining equipment/ vehicles to market safely and cost-effectively Working to minimise fugitive methane emissions to the greatest extent technically and commercially viable, through existing or emerging technology FY2024 reported operational GHG emissions inventory: 9.2 MtCO2-e (adjusted for acquisitions, divestments and methodology changes) (Scope Value chain 3 emissions) GHG emissions from page 19 We have a long-term goal of net zero Scope 3 GHG emissions by CY2050. Achievement of this goal is uncertain, particularly given the challenges of a net zero pathway for our customers in steelmaking, and we cannot ensure the outcome alone Our long-term targets are to achieve net zero by CY2050 for the GHG emissions from all shipping of BHP products and for the operational GHG emissions of our direct suppliers Our medium-term goals for CY2030 are to support industry to develop steel production technology capable of 30 per cent lower GHG emissions intensity relative to conventional blast furnace steelmaking3 and to support 40 per cent GHG emissions intensity reduction of BHP-chartered shipping of BHP products4 Supporting the development of steel production technology to help the steel sector reach near zero emissions by partnering with our customers and others Encouraging direct suppliers to pursue net zero for their operational GHG emissions Establishing demand and incentivising the shipping industry to develop and adopt lower GHG emission and low to zero GHG emission fuels FY2024 reported value chain GHG emissions inventory: 377.0 MtCO2-e (adjusted for acquisitions, divestments and methodology changes) Commitments, targets and goals What we are doing 8 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our climate CTAP at change a glance strategy and this CTAP at a glance continued goals and Portfolio from page 31 targets We are positioning our portfolio of commodities and assets to create value for today and the future by increasing our Commitments, exposure to decarbonisation, electrification and other global megatrends doing Supplying commodities that are key are to the global transition to net zero we Pursuing growth opportunities in What future-facing commodities, such as copper and potash Planning to close our last remaining energy coal asset High-grading our steelmaking coal portfolio Climate from page policy 39 advocacy We are committed to conducting our advocacy on government climate policy (direct and indirect) consistent with the goals of the Paris Agreement Translating this into action by using our Climate Policy Principles in how we advocate (direct) and how we encourage industry associations where we are a material member to advocate (indirect) Increasing the transparency of our direct and indirect climate policy advocacy through industry association reviews and the publication of our major direct advocacy positions Physical adaptation risk from and page 42 We are continuing our studies to assess physical climate-related risks and to inform potential adaptation responses to prioritise safety and maintain productivity of our operations Working to quantify physical climate-related risk exposure for our operated assets Enabling design and implementation of adaptation responses, where appropriate, to protect value and enable growth Equitable transition change from page and 46 We are committed to working with communities where we operate in periods of change and transition to achieve long-term mutual value Working to leave a positive legacy from our mining in the Hunter Valley as we move towards the planned closure of Mt Arthur Coal More broadly embedding our approach to equitable change and transition in the way we operate 9 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) We are on track to meet our medium-term target. Our pathway is challenging yet realistic and reflects current technology maturity, our increased production ambition and early investment to support our long-term net zero goal. Our target and net zero goal for operational GHG emissions (Scopes 1 and 2 emissions) Spotlight: How we plan operational GHG emission reductions in a dynamic environment Our areas of focus to reduce operational GHG emissions Spotlight: The Australian Government’s methods for measuring fugitive methane emissions Spotlight:InfluencesonouroperationalGHGemissionstarget-andgoal-setting A Komatsu America Corp. electric haul truck, technology which is at a trial stage and key to future reductions in our operational GHG emissions 10 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our target and net zero goal for operational GHG emissions (Scopes 1 and 2 emissions) Our medium-term target is to reduce operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) by at least 30 per cent by FY2030 from an FY2020 baseline. Our long-term goal is to achieve net zero operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) by CY2050. We use FY2020 as the reference year for our long-term net zero goal. Our operational GHG emissions medium-term target and long-term net zero goal apply to our entire reported Scopes 1 and 2 emissions inventory. We adjust these GHG emissions for our medium-term target’s baseline year and long-term net zero goal’s reference year and subsequent performance for acquisitions, divestments and methodology changes. adjustments For the essential for this definitions, medium-term assumptions target and and long-term net that zero inform goal, them as refer well as to more Additional information information on factors – targets DefinitionsandkeydetailsforourGHGemissions and goals on pages 57 to 60 For with how reference we set to our the medium-term ‘well-below 2°C’ target Paris in FY2020 our Agreement operational goal, refer GHG to emissions Spotlight:Influenceson target- and goal-setting on page 18, later in this section In FY2024, our reported Scopes 1 and 2 emissions inventory was 9.2 MtCO2-e, a reduction of 32 per cent compared to our FY2020 baseline (both years adjusted for acquisitions, divestments and methodology changes). For comparison, our reported Scope 3 emissions inventory was 377.0 MtCO2-e (adjusted for acquisitions, divestments and methodology changes). We apply a different calculation approach to our reported Scope 3 emissions inventory. For the Climate more information change section on our in latest the latest progress, BHP refer Annual to Report, available at bhp.com/investors/annual-reporting For Australia’s information temporary on the suspension implications on of our Western operational GHG emissions, refer to page 13 Pathway to our medium-term target We adjust our medium-term target’s baseline year and subsequent performance for acquisitions, divestments and methodology changes to provide a like-for-like comparison for our operational GHG emissions for continuing operations. We do not adjust our baseline year and subsequent performance for organic changes in our production of commodities, so increasing production will require us to achieve additional GHG emission reductions. At the end of FY2030, we also aim to be at or below a cumulative carbon budget (i.e. a total net amount of GHG emissions that can be emitted). The carbon budget is defined by our operational GHG emissions being at or below a hypothetical straight line between our adjusted baseline in FY2020 and a 30 per cent reduction to that baseline in FY2030, despite our pathway being non-linear. Our plan is to meet our medium-term target through structural GHG emissions abatement instead of offsetting. We will not use regulatory carbon credits (i.e. those used for compliance under regulatory schemes, such as Australia’s Safeguard Mechanism) to meet our medium-term target. In addition, in our projected pathway, we have not planned to use voluntary carbon credits to meet our medium-term target. However, if there is an unanticipated shortfall in our pathway, we may need to use voluntary carbon credits that meet our integrity standards to close the performance gap. regulatory For more information and voluntary on the carbon difference credits, between and the integrity standards source, refer we to apply Enabling to the delivery voluntary – carbon How we credits manage we carbon credits on page 54 We aim to design new facilities and major projects to emit or be ready to enable lower GHG emissions than a conventional business as usual design. We also assess the operational GHG emissions profile of potential acquisitions and their potential impact on our overall operational GHG emissions. Both are critical to support our increased production of commodities. Figure 1.1: Projected pathway to our operational GHG emissions medium-term target5 Scopes 1 and 2 emissions (MtCO2-e) (adjusted for acquisitions, divestments and methodology changes) 16 –32% 14 12 10 8 6 4 2 0 FY2020 Electricity changes Other FY2024 growth Organic Electricity Diesel Other sources FY2030 Diesel Electricity Other sources Organic growth Range of uncertainty The projected pathway to our medium-term There are significant challenges ahead in achieving target, as shown in Figure 1.1, is expected to set our medium-term target as we: us up well for greater GHG emission reductions Increase our production of commodities in after FY2030 through the following actions: line with expected increases in demand to support Procuring renewable and other low decarbonisation and other global megatrends to zero GHG emissions electricity Adjusttothechangingprofileofextraction and production at our operated assets, Working to minimise the increase in where we expect resource depletion to require operational GHG emissions from organic us to mine more deeply, more remotely and with production growth and new operational greater energy intensity sites Work with original equipment manufacturers Accelerating development and reducing to help accelerate development and increase risk exposure to diesel displacement confidence in options for electric mining solutions through testing and sequenced equipment/vehicles to displace diesel, most of deployment which are early-stage and not yet ready to be deployed Pursuing solutions to abate Prepare to manage the risk associated with fugitive methane emissions significantchangestoouroperations from adopting diesel displacement solutions and integrating renewable electricity resources 11 

Pathway to our medium-term target continued Risks to our medium-term target The ‘range of uncertainty’, as shown in Figure 1.1 on the previous page, reflects the potential range of applied risking factors (based on assessments, such as technology readiness levels) and options to increase the scale or pace of abatement. Our projected pathway is represented by the top of the ‘range of uncertainty’, which should enable us to meet our medium-term target. The bottom of the ‘range of uncertainty’ exceeds a 30 per cent reduction to protect against individual project risks and allow for sufficient options to meet our medium-term target, as well as maintaining momentum on developing technologies required to achieve our long-term net zero goal. Pathway to our long-term net zero goal Our potential pathway to our long-term net zero goal beyond FY2030, as shown in Figure 1.2, requires us to: Displace diesel via electric mining equipment/ vehicles (e.g. haul trucks, locomotives, excavators, shovels) Procure additional renewable and other low to zero GHG emissions electricity to support the increased amount of electricity required for electric mining equipment/vehicles Minimise fugitive methane emissions to the greatest extent technically and commercially viable, through enhanced application of existing or emerging technology Many of the technologies we will need to achieve our long-term net zero goal are not yet ready to be deployed. A pathway between our medium-term target in FY2030 and our long-term net zero goal in CY2050 will require a significant technological step change in safety, reliability, productivity, availability and economics. The ‘range of uncertainty’, as shown in Figure 1.2, reflects the potential for additional GHG emission reductions from options we have currently identified, including possible options to increase the scale or pace of GHG emissions abatement. These options may enable faster or more substantive reduction of GHG emissions, but they also currently have a relatively low technology readiness, higher operational integration risk and/or are not yet commercially viable. We believe there are sufficient encouraging developments in the market, including with our suppliers, to identify a challenging but feasible potential pathway to our long-term net zero goal. We are working closely with suppliers to accelerate the readiness of new technologies in this decade, including several planned pilots and proof of concept trials primarily as alternatives for diesel-consuming mining equipment/vehicles. For more information on our industry collaborations, refer to Our areas of focus to reduce operational GHG emissions on pages 15 to 17, later in this section Our target and net zero goal for operational GHG emissions (Scopes 1 and 2 emissions) continued Figure 1.2: Projected (to FY2030) and potential (beyond FY2030) pathways to our operational GHG emissions long-term net zero goal6 Scopes 1 and 2 emissions (MtCO2-e) (adjusted for acquisitions, divestments and methodology changes) FY2020 FY2025 FY2030 FY2035 FY2040 FY2045 CY2050 -2 16 12 14 8 4 0 2 6 10 Olympic Dam Iberdrola PPA Escondida and Spence Enel PPA and Colbun PPA BMA CleanCo power purchase agreement (PPA) WAIO First electric excavator trials WAIO First electric truck trials WAIO Beginning of electric haul truck adoption Escondida and Spence Trolley assist electric haul truck adoption WAIO Beginning of electric locomotive adoption Organic growth with no GHG emissions reduction Our GHG emissions reduction pathway Electricity Diesel Natural gas Fugitives Other sources Negative GHG emission solutions Organic growth with n Range of uncertainty o GHG emissions reduction Broadmeadow at BMA Destruction of drained methane WAIO Inland renewable energy WAIO APA PPA Olympic Dam Neoen PPA BMA CleanCo PPA 2.0 WAIO First electric locomotive trials Escondida and Spence Boiler diesel displacement Our GHG emissions reduction pathway Contents Introduction Physical risk and adaptation Equitable change and transition Climate policy advocacy Enabling delivery Additional Portfolio information Value chain GHG emissions BHP Climate Transition Action Plan 2024 12 Operational GHG emissions

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our target and net zero goal for operational GHG emissions (Scopes 1 and 2 emissions) continued Pathway to our long-term net zero goal This is based on the projected improvements to the Spend and commitments Key actions technologies we need, the nature of our business continued Investment in the reduction of operational GHG – Continue electric mining equipment/vehicle trials and the GHG emissions profile of our operations We anticipate many of the new technologies will have emissions is embedded in our corporate planning to test and learn in FY2025 (particularly fugitive methane emissions). We believe unique or new benefits, as well as challenges. processes, which are used to prioritise and allocate – Pursue maximum renewable electricity penetration a feasible pathway to net zero operational GHG capital across our business. at all grid-connected operated sites, with an aim We anticipate electric haul trucks (compared to emissions will require the use of some offsetting. of 100 per cent purchased renewable electricity by current state diesel haul trucks) will have superior For more information on our Capital Allocation fuel-to-wheel energy efficiency and trucks are For carbon more credits, information refer to on Enabling our approach delivery to sourcing – How Framework and how it supports our operational FY2030, where available and commercially viable GHG emission reduction strategy, refer to Enabling able to drive faster on trolley assist than on diesel we manage carbon credits on page 54 delivery – How we manage capital on page 53 – Investigate and collaborate on novel techniques motors. However, significant operational challenges On current assumptions, our overall collection of for fugitive methane emissions measurement and exist, including how we manage our fleet, how we Risks to our long-term net zero goal operational GHG emission reduction projects that reduction at our steelmaking coal mines, including integrate a mix of static and dynamic charging, atmospheric monitoring and open-cut mine Our ability to pursue a pathway beyond our support meeting our medium-term target remain net gas drainage how electrification impacts mine design and mine medium-term target in FY2030 to our long-term present value positive under current technology and planning, and how we manage the risks associated net zero goal in CY2050 is affected by a range of cost assumptions and when factoring in our internal with new technologies. Improvements to battery size, Western Australia Nickel and its impact considerations and potential complications, including: carbon price protocol. cost, weight, capacity and replacement cycles are In July 2024, we announced our Nickel West operations also needed before large-scale adoption. – availability of commercially viable renewable and We estimate up to US$4 billion (nominal and West Musgrave project (Western Australia Nickel) other low to zero GHG emissions electricity terms) in spend and commitments over the When renewable and other low to zero GHG – procurement strategies for electric mining would be temporarily suspended from October 2024. emissions electricity production is localised or on-site, decade to FY2030 to execute our operational We intend to review the decision to temporarily suspend it can increase the security and stability of supply equipment/vehicles, battery and charging decarbonisation plans. Western Australia Nickel by February 2027. and offer improved economics over the lifecycle of an infrastructure in a constrained supply environment This incorporates capital expenditure and lease We will continue to report on Western Australia investment. However, wind and solar generation must – scaling and incorporating electric mining commitments that were previously expected to Nickel’s operational GHG emissions, including as part also be sized (compensating for seasonal changes in equipment/vehicles may not be as efficient or be classified as capital expenditure. Our estimate of our baseline year for our medium-term target and electricity production) and must be firmed (ensuring effective as projected represents incremental capital spend and lease reference year for our long-term net zero goal. the reliability and stability of energy supply over time). – cost competitiveness of, and social concern commitments of the lower GHG emissions option regarding, the use of biofuels for hard-to-electrify above ordinary business as usual spend or For our reported Scopes 1 and 2 emissions Minimising fugitive methane emissions continues applications commitment (e.g. the additional cost of an electric inventory (adjusted for acquisitions, divestments and to be challenging as it requires a mix of enhanced truck versus a diesel combustion truck). methodology changes), Western Australia Nickel’s use of currently available solutions and significant – the technical feasibility of fugitive methane operational GHG emissions were 11 per cent in technology development, as well as challenges with emissions abatement and its commercial The majority of our capital expenditure profile in this FY2024 and 8 per cent in FY2020 (the baseline year integration into existing operations. There are also integration into mine designs and mine plans decade is weighted towards diesel displacement and for our medium-term target and reference year for our considerations and complexities in adapting currently weighted towards the late 2020s. – design of mine and processing facilities and long-term net zero goal). available abatement solutions, including safety, our ability to integrate new technologies into integration and commercial viability. While some of our operational GHG emission Western Australia Nickel’s planned incremental capital existing operations reduction projects have a higher degree of delivery spend and lease commitments on operational GHG We will continue to look for opportunities to help – impact of our acquisitions and divestments, as certainty, we also continue to study and progress emission reductions are less than five per cent of the see the emerging technologies we need to reach well as our new country and commodity entries projects that have a lower degree of certainty. As estimated US$4 billion (nominal terms) in spend and technological readiness and commercial viability. we progress necessary studies, we will learn more, – availability of specialist skills for future operations commitments over the decade to FY2030 to execute Based on what we know today, and our estimates of our spend and commitments to our operational decarbonisation plans. This was For supports more our information operational on how GHG our emission risk framework reduction FY2030 and beyond will evolve over time. calculated prior to the decision to temporarily suspend we estimate we can reduce our strategy, refer to Enabling delivery – How we manage Western Australia Nickel. climate-related risk (threats and opportunities) on Our estimated spend and commitments will support gross operational GHG emissions page 52 our projected pathway to our medium-term target Western Australia Nickel’s temporary suspension by up to around 85 per cent against and our potential pathway to our long-term net does not change our strategy to reduce operational zero goal. However, most of our estimated spend GHG emissions, nor materially impact our projected FY2020 levels by CY2050 (adjusted and commitments prior to FY2030 is focused pathway to our medium-term target or our potential on advancing diesel displacement solutions via pathway to our long-term net zero goal or our planned for acquisitions, divestments and electric mining equipment/vehicles. This would not incremental capital spend and lease commitments. methodology changes), without the significantly impact operational GHG emissions by FY2030 and we expect our estimated spend and use of offsetting. commitments to more significantly impact operational GHG emissions post-FY2030. 13

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Spotlight How we plan operational GHG emission reductions in a dynamic environment Our operational GHG emissions reduction (beyond FY2030) pathways to our long-term net zero Likely future changes Our estimated spend and commitments over the planning processes goal (as shown in Figure 1.2 on page 12, earlier in decade to FY2030 for operational GHG emission As our studies, trials and pilots progress, we expect this section) has been updated for FY2024, with the reductions will continue to evolve as we seek to Each year, as part of our annual planning processes, there will be future changes in our operational GHG primary changes being: maximise returns while growing the business and we re-assess our operational GHG emission reduction emissions plans. decarbonising our operations. To do this, we apply plans for our operated assets, including legacy – a decrease in diesel GHG emissions abatement We anticipate, in some cases, we may have been our Capital Allocation Framework to seek to ensure assets and major projects. We use a standardised due to new and unforeseen challenges experienced conservative in our assessment of when the market our decisions are aligned with our medium-term target set of requirements, guidance and tools to develop by original equipment manufacturers, resulting can innovate and develop new technologies that and long-term net zero goal, as applicable, and rank a demonstrable and verifiable plan that considers a in less certainty of technology and commercial are safe and productive, while in other cases, there highly against the risk and return metrics we use to range of factors, both internal and external. readiness of diesel displacement options. An may be unforeseen delays and challenges impacting evaluate decarbonisation projects. example is questions around the ability to apply We monitor and manage changes in these plans electrification to certain mining equipment/vehicles our planning. each year for a variety of reasons, including the (e.g. drill rigs, dozers, tugboats) before CY2050, Critical to minimising impacts to our plans is our overall BHP strategy, individual asset strategies, our which have led to an increase in projected residual identification and management of varying types of Capital Allocation Framework, growth plans, business GHG emissions from diesel risks, including asset-, technology- and project-specific. performance to date, external regulations and carbon – an increase in the range of uncertainty due We aim to do this primarily through the integration of pricing. We incorporate updated views on market to less certainty of technology and commercial decarbonisation into our corporate planning and capital availability and demand for lower GHG emission readiness of diesel displacement options, as well project delivery processes. technologies, and the outcomes of our early-stage studies, trials and pilots. Our teams monitor technology as our enhanced understanding of the challenges progress and actively engage and collaborate with presented by a change to our operations our suppliers, where relevant, to enable our plans to as complex and far-reaching as large-scale reflect the dynamic nature of the energy transition and electrification emerging lower GHG emission technologies. Additionally: Senior management continues to play an important – our Jansen potash project’s heightened focus role in reviewing the progress of our planned activities onoperationalreadinessforfirstproduction towards our operational GHG emissions medium-term has deferred certain studies on low to zero GHG target and long-term net zero goal, and the rationale emission energy options and GHG emission for any changes. Senior management approves the reduction technologies until after first production plan and the Executive Leadership Team (ELT) and commences (expected in late CY2026). We continue Board maintain regular oversight over the progress to pursue commercial solutions with our partners to of our climate change strategy. reduce operational GHG emissions for Jansen We also aim to be transparent by disclosing in the – the planned FY2024 drilling program at BMA, BHP Annual Report, where appropriate, when and which will assist in obtaining a deeper understanding why these changes occurred. When disclosing in of methane quality and quantity (in both magnitude the BHP Annual Report, we have these disclosures and density), will now commence during FY2026/27 assured by a third party. For measurement, more information management on our approach and mitigation to methane at BMA, refer Changes to our projected and potential to Our areas of focus to reduce operational GHG pathways to our long-term net zero goal emissions on pages 15 to 17, later in this section In the BHP Annual Report 2023, we published our These changes are not expected to have any material operational GHG emissions projected pathway to impact on our ability to meet our medium-term target. FY2030 and potential pathway between FY2031 and CY2050. Incorporating the outcomes of our most recent annual planning process, our operational GHG emissions projected (to FY2030) and potential The tugboats we operate at our WAIO asset are an example where we have less certainty of technology and commercial readiness of diesel displacement options 14

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our areas of focus to reduce operational GHG emissions Electricity In some of our more isolated locations (e.g. our WAIO The introduction of vehicle autonomy at a number We consider biofuels as a backup option if Most of our operated assets are in locations that are asset in the Pilbara region in Western Australia) of our sites has taught us valuable lessons about electrification is delayed or unsuccessful, and we grid-connected and have access to renewable and there is currently a shortage of renewable electricity adopting and de-risking new technology, which we continue to monitor developments in this area. other low to zero GHG emissions electricity through under development. We are working with electricity intend to incorporate into our electrification plans. Our position on biofuels is informed by a trial in a network. generators, network operators, renewable electricity This includes taking a site-by-site approach to learn FY2023 that provided us valuable insights into using developers and Traditional Owners to explore and adapt our plans as we progress, and to identify hydrogenated vegetable oil in multiple types of mining This has enabled us to establish a number opportunities to increase availability in these locations. any implications of these changes to the safety of our equipment. The trial also helped us understand the of low to zero GHG emission power purchase teams and the productivity of our operations. biofuels value chain and the importance of standards agreements rapidly and at scale for a significant Diesel and quality assurance to mitigate potential concerns Trials and pilots of electric mining equipment/vehicles proportion of our total FY2024 electricity demand. with these fuels (e.g. competition with food production, Diesel combustion was the single largest source have begun, such as excavators, jumbos (used to water use, land use, and transparency of feedstocks). We aim to prioritise and encourage new renewable of GHG emissions – 63 per cent – in our FY2024 drill holes underground) and light vehicles, and will generation where commercially feasible to help reported Scopes 1 and 2 emissions inventory continue until adopted as business as usual. All trial, While our plan for displacing diesel used in most of drive a broader and positive change in the grid’s (adjusted for acquisitions, divestments and pilot and adoption dates (as shown in Figure 1.2 on our mining equipment/vehicles is clear, our potential profile mix, instead of increasing the burden on methodology changes). Finding new ways of page 12, earlier in this section) are current estimates pathway to decarbonise hard-to-electrify mining existing generation. Nearly all of our power purchase extracting and moving material is critical to achieving and we expect some could change due to external equipment/vehicles (e.g. drill rigs, dozers, tugboats) and agreements signed in or before FY2024 enable new our long-term net zero goal. factors. These include possible manufacturing other ancillary equipment is less clear. Biofuels are a renewable generation projects as a foundational or challenges as they move from research and technically viable option, but remain relatively expensive We expect to displace diesel primarily via electrification development to mass production, and the degree and subject to the potential environmental and ethical major customer. of mining equipment/vehicles (including locomotives) of acceleration of new technologies. concerns we noted from our trial. We will continue to Diesel displacement via electric mining equipment/ and the associated use of low to zero GHG emissions look for opportunities to collaborate to support further vehicles will increase the amount of electricity electricity sources. These trials and pilots will inform the operational innovation for hard-to-electrify equipment. required at some of our operated assets by between changes we need to make and help validate our The potential for additional upside benefits of GHG emission reduction models. This will enable two and four times by CY2050. Future electricity electrification over diesel and other low to zero GHG investment decisions and also inform future operating Fugitive methane emissions demand from the grid will also be amplified by the emission alternatives (e.g. biofuels) includes: and maintenance strategies, including safety and broader electrification trend we are seeing within operating conditions for future electrified sites. Fugitive emissions occur when methane or CO2 our mining peers and other industries. We expect – improved maintenance performance contained within and near coal seams are released demand-side management and load optimisation – elimination of diesel particulate matter and any Our trials, pilots and other supporting studies aim to during the mining process. will become more important, including matching other tail-pipe emissions understand and address a wide and essential range time-of-use and time-of-consumption. Depending on of variables, including: Fugitive emissions come from our steelmaking coal our ability to manage load and reduce peak power – reduction in heat, noise and vibrations asset BMA (which has four open-cut mines that demand or add on-site generation and storage, many – compatibility with autonomous driving technology – additional safety considerations comprise the bulk of our steelmaking coal production of our sites are likely to require increased capacity in such as easier pairing with trolley lines, reduced and one underground mine) and our energy coal asset – performance in high temperature, high altitude, New South Wales Energy Coal (NSWEC). For BMA, transmission lines providing electricity to site. idle time, and overall efficiency improvements dusty and rough environments although we have a 50 per cent ownership interest, We are studying the spare network capacity and the We have been working with original equipment – battery lifecycle and recycling as the operator we incorporate 100 per cent of its ability to meet this load growth with existing networks. manufacturers and our mining peers on electric – high-power static and dynamic charging operational GHG emissions in our reported inventory. We will continue to work with our network service vehicles/mining equipment through groups such as the providers to understand and plan for future capacity. Our International Council on Mining and Metals’ ‘Innovation – mixed diesel and electric mining equipment/vehicles Our strategy to address fugitive emissions focuses on management of this risk considers the significant long for Cleaner Safer Vehicles’ initiative to help accelerate – integration with autonomous haulage BMA as we plan to cease mining at NSWEC by the lead time for approvals, permitting, availability of key the availability of mining equipment and vehicles that end of FY2030. Our strategy also focuses on fugitive We expect original equipment manufacturers to be methane emissions, as the volume of fugitive CO2 equipment (e.g. transformers) and specialised workforce are safe and reliable. ready to produce electric mining equipment/vehicles emissions occurring at BMA is relatively small. with skills in building high voltage transmission and The electrification of our mining equipment/vehicles at scale in the late 2020s. distribution networks, substations, and other tasks Our analysis shows we currently have lower will also be a change to the way we operate at our sites, associated with electrification of our operations. fugitive methane emissions intensity at our coal which we will need to manage so that our operations Our WAIO asset will likely mines relative to Australian and international remain safe and productive. For example, electrification be our first operated asset to coal mines. will require a significant increase in high voltage electrical infrastructure for trailing cables, trolley lines, progressively roll-out electric haul fast chargers and other infrastructure that will need to trucks and excavators towards the be safely integrated into our operations. end of the 2020s. 15

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our areas of focus to reduce operational GHG emissions continued Fugitive methane emissions continued All our open-cut steelmaking coal mines and our energy Prevention coal mine now employ direct, site-specific measurement Spotlight Our methane emissions intensity is expected to increase Abating fugitive methane emissions is a more difficult of their fugitive emissions, known as ‘Method 2’ under over time as mining deeper coal seams typically prospect in our open-cut mines (compared to our only The Australian Government’s Australia’s National Greenhouse and Energy Reporting releases more methane than from shallower seams. underground mine, Broadmeadow at BMA). methods for measuring fugitive (NGER) rules, which more accurately estimates fugitive Mitigating fugitive methane emissions presents methane emissions than ‘Method 1’. This is because it Gas drainage is a proven technology for methane emissions significant challenges for BMA, as it does for many is based on site-specific in-situ gas content rather than underground mining and is used primarily for of our mining peers. These challenges include: default emission factors. safety reasons. However, gas drainage is novel for open-cut mining. This is especially the case Method 2 is a ‘higher order’ direct measurement – the relatively low fugitive methane emissions For more information on ‘Method 2’ direct, site-specific measurement of fugitive emissions, refer to at established mines where the integration of gas approach that more accurately estimates fugitive intensity of our open-cut mines, while positive, Spotlight: The Australian Government’s methods for drainage and handling is likely to lead to planning methane emissions associated with a mine site than means abatement using current prevention measuring fugitive methane emissions on this page and operational challenges. the Australian state-specific default emission factors technologies is either not feasible or viable In addition, we recently worked with researchers specified in the NGER rules for Method 1. – the configuration and scale of open-cut mines Use of drainage in open-cut mines is currently in its and service providers on ‘top-down’ atmospheric Method 2 uses a Commonwealth Scientific and make it hard to accurately apply less intrusive infancy, with potential impacts to safety, the environment monitoring using satellite, aerial and ground-based Industrial Research Organisation (CSIRO)-developed ‘atmospheric’ monitoring techniques necessary and productivity still being explored. Its current sensing techniques, which detected varying methane technique for determining in-situ gas contents that for targeted and effective prevention measures effectiveness in open-cut mines is highly variable and is levels leading to inconclusive measurement results. has been operationalised using industry standard gas – we need to supplement our existing, advanced limited by multiple factors, including geology, reservoir Through this work, we have learned that applying sampling, testing and modelling techniques to enable long-term coal resource knowledge with characteristics, lead time, engineering design, access ‘top-down’ techniques to geographically large, site-specific measurements that meet the NGER comparable gas resource data to inform effective and operating parameters. Additionally, not all our topographically complex and diffuse methane regime’s stringent requirements for data sufficiency, methane mitigation plans open-cut mines will allow drainage due to their relatively sources, such as our open-cut coal mines, is very integrity and auditability. To the best of our knowledge, low fugitive methane emissions intensity. Our strategy is to achieve accurate measurement complicated. We believe more research is required, it is the only direct measurement method for open-cut and forecasting, and then advance to fugitive including the trialling of different combinations of Deployment of drainage in suboptimal conditions coal mine fugitive methane emissions in the world and methane emissions prevention and, where necessary, methane detection instruments and atmospheric could result in wasted investment and misprioritisation represents the most scientifically rigorous approach mitigation. This will be a multi-year journey that we modelling techniques, to enable a proper that could divert expenditure from more impactful currently available for this source. are progressing now. understanding of the role of ‘top-down’ monitoring management or mitigation options. Even if the Method 2 has two primary steps: in complementing and/or verifying the ‘bottom-up’ challenges posed by drainage could be overcome, it measurement methods we currently employ. is unlikely to prevent 100 per cent of fugitive methane Measurement Analyse core samples and geological emissions at our mines. characteristics to develop a model that identifies We are currently partnering with other companies in the distribution and composition of gas content We are developing a gas industry research and are supporting, where suitable, We are working to address these challenges, across the mine (or for a particular mine plan resource characterisation drilling other ‘top-down’ measurement trials by credible including by collaborating with other miners in the horizon). The model may take the form of a stakeholders, such as the Australian Government and Australian Coal Industry Research Program. We are three dimensional ‘grid’ of different gas contents plan that is intended to provide the United Nations International Methane Observatory. also actively monitoring for new and evolving fugitive per coal seam and location, or one or more methane emission abatement technologies and intend data we need to identify potentially Our aim is to identify the potential for emerging ‘zones’ containing similar strata for which gas to allocate funding to explore suitable opportunities technologies to improve our understanding of real-time content and composition are averaged. The viable sites and seams for as they arise. relationships of fugitive methane emission levels and standards for development of the gas model prevention measures. mining activities and use that to inform our future are strict and govern the procedures for core efforts in measurement, prevention and mitigation. Mitigation sample acquisition and laboratory testing, Certain methane management studies have been We continue to monitor the developing potential of At our only underground coal mine, Broadmeadow gas data validation and screening, geological completed at BMA that identified some changes to these technologies to enable effective monitoring and at BMA, we have made good progress destroying interpretation, and the skills of the person or the long-term characterisation of its methane gas assessment of methane emissions. drained methane through flaring (which converts team performing the estimations. profile. Combined with investigation of other technical methane into less harmful CO2), when safe and operational factors (e.g. coal seam thickness and Yearly mapping of the location and quantity We disclose our fugitive methane and CO2 emissions and practical to do so. In FY2024, we abated permeabilities, drilling techniques and mining and by mine site in the latest BHP ESG Standards and of the coal and other carbonaceous material approximately 85,000 tCO2-e using this approach. drainage operational interfaces), improved knowledge Databook, available at bhp.com/climate extracted against the mine’s gas model to and insight (including the study findings) will inform Our efforts are now focused on maximising the determine the estimated amount of methane and enable the development of a more targeted volume of methane destroyed, including a recent and CO2 released to the atmosphere. This methane measurement, management and mitigation investment to upgrade our gas drainage gathering includes a portion of gas that is assumed to be strategy for our open-cut mines. pipeline to enable more methane to be safely flared. released from any coal seams up to 20 metres below the open-cut pit floor. 16

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our areas of focus to reduce operational GHG emissions continued Industry collaboration – Komatsu, who we partnered with to seek to develop We are working with our mining commercially viable zero GHG emission trucks – Rio Tinto, a mining peer with whom we plan to peers and suppliers to find and mutually share Caterpillar and Komatsu truck accelerate development of trial outcomes – Progress Rail, a Caterpillar company, that will technologies and better solutions supply two battery electric locomotives for our to reach net zero operational planned trials in CY2025 GHG emissions. – Wabtec, where we plan to use two battery electric locomotives supplied by Wabtec for our planned We have been active in industry collaborations. trials in CY2025 Collaboration between industry stakeholders, with – Toyota Australia, who we partnered with to essential support from professional services firms enhance our approach to reducing operational and academia, is critical to demonstrating that it is GHG emissions and improving safety measures technically and commercially feasible to decarbonise for vehicles at our Minerals Australia assets heavy industry. We have also collaborated in the Our engagement with industry associations, such electrification of mining equipment, where we work as the Chilean Mining Council and Minerals Council with mining peers through industry-led consortiums. of Australia (MCA), are important platforms for Our industry collaborations include our work with: cross-industry collaboration to support our efforts – Australian Industry Energy Transitions to reduce operational GHG emissions. An example Initiative, which brought together key of this is our work within the MCA to provide feedback stakeholders across the Australian industry to in support of the reforms to Australia’s Safeguard build demonstrable pathways to decarbonisation Mechanism from the perspective of the Australian mining sector. – International Council on Mining and Metals’ ‘Innovation for Cleaner, Safer Vehicles’ We have also been active in executive-level initiative, which brought together suppliers and collaborations to facilitate senior level discussion mining operators to help accelerate the transition across industry, such as the World Economic Forum’s Transitioning Industrial Clusters and Clean Our electric utility vehicle pilot trial with Toyota Australia to electrified mining equipment/vehicles – CharIN’s ‘Mining Taskforce’, which brought Power for Industry initiatives. Outcomes from these together equipment manufacturers, mining collaborations have had meaningful benefits for us, operators and industry bodies to standardise the including the progression of reporting frameworks to charging connectors for future electrified heavy enable renewable electricity supply to be matched mining equipment with consumption, helping inform the mix of electricity generation sources we plan to contract. – Clean Technology Institute, where Chilean universities, mining companies and other industry through For more industry information memberships, on our indirect refer to policy the Climate advocacy companies will collaboratively develop projects to policy advocacy section on pages 39 to 41 support the electrification of mining operations – Caterpillar, who we are collaborating with through its Early Learner program to develop and deploy Cat zero-exhaust emission trucks 17

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Spotlight InfluencesonouroperationalGHGemissionstarget-andgoal-setting Nationally determined contributions Influencesonouroperational While there is no universal standard for determining Other regulatory mechanisms GHG emissions target- and goal-setting the alignment of targets with the goals of the Paris The Nationally Determined Contributions (NDC) of the A pathway to our operational GHG emissions Agreement, SBTi is often cited as a means of countries where we have significant operations are: To determine whether we should adjust our long-term net zero goal, as for most companies, providing some assurance on the level of ambition. – Australia is committed to reducing GHG medium-term target or long-term net zero goal is a multi-decade challenge. It requires in the future, we monitor key factors, including: At the end of FY2024, SBTi had not developed fundamental shifts in market design, reporting emissions by 43 per cent below its CY2005 levels a methodology to assess the diversified mining regimes and energy infrastructure. by CY2030 and achieving net zero GHG emissions – advances in knowledge and insight from the sector. It currently excludes target verification for by CY2050 scientific community Climate-related regulations and policies are key to any company deriving more than five per cent – Chile is committed to reducing its CO2 emissions – government climate policies revenue from fossil fuel assets – drawing no our success because they enable effective long-term per GDP unit by 30 per cent below its CY2007 levels distinction between coal used for steelmaking and strategic decision-making and are directly or indirectly – international developments, such as the by CY2030 and achieving GHG emissions neutrality coal produced for energy generation. SBTi criteria supportive of actions that reduce GHG emissions. Conference of the Parties to the United Nations by CY2050 also currently require companies to set Scope 3 Framework Convention on Climate Change (COP) The recent introduction of climate-related regulations – Canada is committed to reducing GHG emissions emissions targets related to the GHG emissions such as reforms to Australia’s Safeguard Mechanism, – technology readiness and commercial viability from the steel sector that are aligned with a 1.5°C by 40 to 45 per cent below its CY2005 levels by – the expectations and decarbonisation progress Canada’s Greenhouse Gas Pollution Pricing Act CY2030 and achieving net zero GHG emissions pathway. However, our analysis indicates the steel and Chile’s Climate Change Law seek to create and by CY2050 of our mining peers, suppliers and customers sector, particularly in the developing world, is far from maintain commercial environments that help to support – the expectations of our shareholders and other being aligned with a 1.5°C pathway with significant the transition to a lower GHG emissions economy. Country NDCs are relevant signposts for our own technological uncertainty and challenges remaining stakeholders and partners These types of policies and regulations help create operational GHG emissions trajectory for our for the decarbonisation of steelmaking. Therefore, operated assets in those locations. However, NDCs an environment where business can invest in lower Medium-termtargetinfluences it is not possible for us to set and verify a suite of GHG emission solutions with increased certainty. For for countries where we have significant operations targets that the SBTi would validate at this stage. have baseline years of CY2005 to CY2007, which example, Australia’s Renewable Energy Target resulted Our medium-term target percentage reduction was in the scale-up of cost-competitive renewable energy makes it hard to compare their trajectory with the established in FY2020 by applying the same rate FY2020 baseline we have for our medium-term target Long-termnetzerogoalinfluences being available to us. of reduction to our operational GHG emissions and against which we track progress towards our Our operational GHG emissions long-term net zero We support government policies through our policy as the rate of reduction to global GHG emissions long-term net zero goal. goal was influenced by the Paris Agreement, the NDCs advocacy that enable technology development and required to meet the Paris Agreement goal to hold of the countries we have significant operations in, the deployment, as well as incentives for decarbonisation, Our position is to support appropriate sectoral the global average temperature increase to well expectations of our shareholders and key stakeholders, in line with our Climate Policy Principles. policy responses that, in aggregate, contribute to below 2°C (based on the Science Based Targets and the general scientific consensus that the world must the delivery of NDCs at a country level, such as initiative’s (SBTi) absolute contraction approach Our latest Climate Policy Principles are available at be operating in a net zero GHG emissions environment Australia’s Safeguard Mechanism. at that time). bhp.com/sustainability/climate-change/advocacy-on-by CY2050 to hold the global average temperature climate-policy increase to well below 2°C. 18

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Value chain GHG emissions (Scope 3 emissions) Net zero Scope 3 emissions requires the development of enabling technologies for near zero emissions steelmaking, which we are supporting through our strategy and medium-term goal for steelmaking. Our net zero goal for value chain GHG emissions (Scope 3 emissions) Steelmaking: Longer-term industry pathways Steelmaking: Our Scope 3 emissions goal to support capability for GHG emissions intensity reduction Case studies: Steelmaking GHG emissions intensity reduction projects Direct suppliers: Our Scope 3 emissions net zero target for direct suppliers’ operational GHG emissions Shipping: Our Scope 3 emissions goal to support GHG emissions intensity reduction and net zero target Spotlight: The International Maritime Organisation and its levels of ambition for international shipping Draining molten iron produced in an electrolysis test cell from BHP ores, as part of our partnership with Boston Metal to support scaling up of the molten oxide electrolysis cell, a potential steelmaking technology pathway 19

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our net zero goal for value chain GHG emissions (Scope 3 emissions) Scope 3 emissions result from the activities of others, Strategy outside our direct control, so we seek opportunities Our strategy to support reduction of GHG emissions to partner with customers, suppliers and others in our in our value chain has four primary focus areas: value chain. 1. Support the development and adoption of We have a long-term goal of net GHG emissions intensity reduction technologies zero Scope 3 GHG emissions in steelmaking by CY2050. Achievement of this 2. Enhance the quality of the iron ore and steelmaking coal we produce goal is uncertain, particularly 3. Encourage direct suppliers to pursue net zero for given the challenges of a net their operational GHG emissions (Scopes 1 and 2 emissions) zero pathway for our customers 4. Support the development and adoption of GHG in steelmaking, and we cannot emission reduction technologies in shipping ensure the outcome alone. emissions For more information medium-term on goals our value and chain long-term GHG net zero targets and our approach to: We use FY2020 as the reference year for our – supporting GHG emissions intensity reductions for long-term net zero goal. Our value chain GHG emissions steelmaking, goal refer to to support Steelmaking: capability Our for Scope GHG 3 emissions long-term goal of net zero Scope 3 emissions intensity reduction on pages 24 and emissions by CY2050 applies to our entire reported 25, later in this section Scope 3 emissions inventory. We adjust value chain – encouraging direct suppliers to pursue net zero GHG emissions (Scope 3 emissions) for our long-term suppliers: operational Our GHG Scope emissions, 3 emissions refer to Direct net zero net zero goal’s reference year and subsequent target for direct suppliers’ operational GHG performance for acquisitions, divestments and emissions on page 28, later in this section methodology changes. – supporting refer to Shipping: GHG emission Our Scope reductions 3 emissions from shipping, goal For the essential definitions, assumptions and and to support net zero GHG target emissions on pages intensity 29 and 30, reduction later in adjustments for our long-term net zero goal, as well as more information on factors that inform them, including this section how for offsetting, we and our refer value to Additional chain may use information carbon credits – These focus areas have been set with consideration targets DefinitionsandkeydetailsforourGHGemissions and goals on pages 57 to 60 of the scale of GHG emissions in our value chain (the dominant source being from processing of our We also have medium-term goals for steelmaking iron ore and steelmaking coal by our customers for and BHP-chartered shipping of our products, and steelmaking), as shown in Figure 2.1, the level of long-term net zero targets for the shipping of BHP impact we can achieve with stakeholders and products and the operational GHG emissions of industry, as shown in Figure 2.2, and the alignment our direct suppliers. to our portfolio strategy. In FY2024, our reported Scope 3 emissions inventory We estimate the current committed or planned was 377.0 MtCO -e (adjusted for acquisitions, funding and in-kind contributions from FY2020 2 divestments and methodology changes). For to FY2029 by BHP and our industry partners in comparison, our reported Scopes 1 and 2 emissions these steelmaking and shipping focus areas would inventory was 9.2 MtCO2-e (adjusted for acquisitions, result in a co-investment total of approximately divestments and methodology changes). US$820 million, based on available information and our assumptions. We apply a different calculation approach to our reported Scope 3 emissions inventory than for our Scopes 1 and 2 emissions inventory. For the Climate more information change section on our in latest the latest progress, BHP refer Annual to Report, available at bhp.com/investors/annual-reporting Figure 2.1: Reported Scope 3 emissions inventory covered by our long-term net zero goal Value chain GHG emissions (MtCO2-e) (adjusted for acquisitions, divestments and methodology changes) FY2020 FY2024 FY2020 Category 10 (subset) 292.9 314.4 Steelmaking Category 11 39.1 38.4 Energy coal FY2024 Categories 4 and 9 (subset) 6.6 6.2 Shipping of BHP products 0 100 200 300 400 Categories 1, 3, 6 and 7 11.6 14.3 Supplier-related GHG emissions Other categories 1.8 3.7 Primarily copper processing, nickel processing and investments Figure 2.2: Our ability to support reductions in our reported Scope 3 emissions inventory Control Influence Support the development and Collaborative adoption of GHG emissions intensity partnerships BHP Standardisation reduction technologies in steelmaking Research and consortiums Ventures and traceability Enhance the quality of the Enhance the quality of the iron ore iron ore and steelmaking and steelmaking coal we produce coal we produce Encourage direct suppliers to pursue net zero for their operational GHG Selective Supportive Measurement emissions (Scopes 1 and 2 emissions) purchasing engagements and monitoring Support the development and adoption Lower GHG emissions of GHG emission reduction and low to zero GHG Efficiency Improve carbon technologies in shipping emission alternative fuels improvements accounting Steelmaking Shipping ~US$420m co-investment from BHP ~US$400 co-investment from BHP and our steelmaking strategic partners and our maritime industry partners Total of committed and planned funding Our estimate of actual or committed from us and our estimate of committed or co-investment from us and our maritime anticipated funding and in-kind contributions industry partners from FY2021 to FY2024 from our strategic partners from FY2020 led to by our shipping strategy. to FY2029. For steelmaking more information co-investment on how estimates, we have calculated refer to: our For shipping more co-investment information on estimates, how we have refer calculated to: our – support Steelmaking: capability Our Scope for GHG 3 emissions emissions goal intensity to – support Shipping: GHG Our emissions Scope 3 emissions intensity goal reduction to reduction on pages 24 and 25, later in this section and this section net zero target on pages 29 and 30, later in 20

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our net zero goal for value chain GHG emissions (Scope 3 emissions) continued Strategy continued Other important considerations Measuring Scope 3 emissions Non-operated assets Iron ore and steelmaking coal quality For more information on the calculation methodologies, Improving GHG emissions measurement is essential Our non-operated assets, like Samarco and Antamina, assumptions, and key references treatment used of in divestments the preparation and of acquisitions our to quantifying the GHG emission reductions occurring have their own operating and management standards. The GHG emissions intensity of conventional blast reported GHG emissions data, refer to the latest BHP in our value chain as a result of our actions and furnace steelmaking can be reduced with higher Operational GHG emissions from our non-operated GHG Emissions Calculation Methodology, available at support, as well as those occurring as a result of quality iron ore and steelmaking coal. We anticipate bhp.com/climate joint venture interests are reported in our Scope 3 a global transition to net zero. that steelmakers will increasingly prefer higher quality emissions inventory under Category 15 ‘Investments’ raw materials as the steel sector decarbonises. We Changes in our portfolio We currently estimate certain Scope 3 emission and are an immaterial source of Scope 3 emissions have increased the ratio of high grade lump ore that categories using methodologies that rely on when compared to our FY2024 reported Scope 3 we produce through the recent development of our Since our previous CTAP in CY2021 we have industry assumptions rather than supplier- or emissions inventory. We see our role in non-operated South Flank mine which completed its ramp up to full made changes in our portfolio relevant to our customer-specific data. As a result, estimated GHG joint ventures as primarily to encourage and seek to production capacity in FY2024. reported Scope 3 emissions inventory, primarily emissions for those categories may be higher or lower influence them through their respective governance In recent years we have divested our interests in BHP the divestment of our Petroleum business in FY2022 than calculated by the supplier or customer. This also structures to reduce their operational GHG emissions, Mitsui Coal (BMC) and BMA’s Blackwater and Daunia and the divestment of our interest in the energy coal means a significant proportion of our reported Scope as well as sharing decarbonisation knowledge and mines to high-grade our steelmaking coal portfolio. asset Cerrejón in FY2022. Subsequently, Scope 3 emissions inventory is currently not able to reflect experience where appropriate. 3 emissions in Category 11 ‘Use of sold products’ GHG emission reductions that our suppliers and Samarco, which is jointly owned (50:50) by BHP (which covers GHG emissions from the end use of customers may achieve. We are also assessing other options to enhance Billiton Brasil LTDA and Vale S.A., has a target to goods and services sold by the reporting company, the quality of our product portfolio in a targeted reduce Scopes 1 and 2 emissions by 30 per cent by such as the combustion of energy coal or natural gas) manner, including: We are seeking ways to improve CY2032 compared to a CY2015 baseline, which is an are a significantly smaller source of GHG emissions important step towards its ambition to reach net zero – beneficiating (i.e. using physical processes in our reported Scope 3 emissions inventory. the availability and reliability of to remove impurities from ore) our iron ores supplier- and customer-specific for operational GHG emissions longer-term.7 We project the planned closure of our Mt Arthur Coal – washing our steelmaking coals to reduce ash content mine by FY2030 would result in Scope 3 emissions in Scope 3 emissions data, and we Antamina, which we partly own (33.75 per cent), did – supporting customers to pelletise our iron ores Category 11 becoming an insignificant source in our not have public GHG emission reduction targets or to improve steelmaking efficiency reported Scope 3 emissions inventory. have included this as part of our goals in FY2024. strategy for steelmaking, shipping Carbon credits used for offsetting and suppliers. We anticipate offsetting by our customers, suppliers and other third parties will play a role in meeting our We are developing technology projects to streamline, long-term net zero goal (and potentially our long-term net automate and enhance carbon accounting and better zero targets), particularly for residual GHG emissions in integrate Scope 3 emissions data sources, as well as steelmaking which are not currently expected to reach a pilot project for a data exchange platform to learn net zero by CY2050. about viability and scalability. Over time, as transparency improves over third-party We regularly engage with our steelmaking customers offsetting of their GHG emissions that appear in to discuss ways to align GHG emission calculation our reported Scope 3 emissions inventory, we plan methodologies. to recognise and report the net Scope 3 emissions after offsetting. We have started to introduce contractual requirements Carbon credits sourced by third parties in our value chain for regular GHG emissions reporting by our suppliers and associated with GHG emissions that appear in our that will help to build their measurement capability and reported Scope 3 emissions inventory would need to improve our ability to report Scope 3 emissions. be high-integrity before we recognised that offsetting We have already had some early successes with in our reporting. data availability for shipping stemming from our partnership with DNV and our use of its Veracity data that For more we apply information to the carbon on our credits integrity we standards source, refer platform for validation and reporting of shipping-related value chain GHG emissions since FY2022. to credits Enabling on page delivery 54 – How we manage carbon 21

Steelmaking: Longer-term industry pathways For the world to transition to a net zero economy and produce the steel needed to meet the demands of increasing urbanisation, population growth and energy transition infrastructure, widespread deployment of near zero emissions steelmaking technology is needed. Today, integrated steelmaking via blast furnaces dominates ore-based steel production and has evolved to be more energy efficient, but it remains GHG emissions intensive. Lowering the GHG emissions intensity of ore-based steelmaking will require innovation through the adoption of alternative process routes, new equipment design and different operating parameters. Near zero emissions steel can be successfully produced from scrap today in an electric arc furnace powered by renewable or other low to zero GHG emissions electricity. However, production is limited by the amount of scrap that can be recovered and there is expected to be a large deficit between scrap-based steel production and steel demand through to CY2050. We therefore expect ore-based steel production will continue to be a vital part of the industry. We use our conceptual ‘steel decarbonisation framework’ as a foresight tool for how ore-based steel production may evolve. It consists of the four process routes which, in our view, offer the greatest potential for developing into near zero emissions steelmaking with sufficient flexibility, scalability and efficiency to support widespread adoption. The four process routes, as shown in Figure 2.3, are described by the core ironmaking furnace or reactor used: 1. Blast furnace 2. Electric arc furnace 3. Electric smelting furnace 4. Electrolysis The electric arc furnace and electric smelting furnace process routes are collectively referred to as direct reduced iron routes as they both require a direct reduced iron processing step prior to the electric furnace. Under our framework, reaching an end state where near zero emissions steel production is widespread would involve the sector migrating through three stages of progression: 1. Optimisation 2. Transition 3. End state Estimates of the typical GHG emissions intensity in the end state for the four process routes are shown in Figure 2.3. For residual GHG emissions, it may be technically feasible to reduce them even further, however offsetting methods may be a more cost-effective alternative. Overall, the pathways and stages of progression that individual steelmakers may take will vary, influenced by a range of factors, including: – global and national economic trajectories – government policy and regulatory settings – steel grades that need to be produced – land, labour and capital stock (including the age of existing infrastructure) – materials and energy, particularly the availability, grade and cost of iron ore, scrap metal, low to zero GHG emissions electricity and key reductant fuel sources (steelmaking coal, natural gas and low to zero GHG emissions hydrogen) – technological advances These factors will largely determine how extensively hydrogen, natural gas, CCUS and electrolysis is used, as the industry pursues near zero emissions steel production. They will also mean there are likely to be significant differences in the prevalence of the four process routes, their configurations and the timing of adoption between regions, particularly between Asia and Europe. We support government policies through our policy advocacy which enables technology development and deployment, as well as incentives for decarbonisation, in line with our Climate Policy Principles. Figure 2.3: Potential ore-based (integrated) steelmaking technology pathways8 Blast furnace Blast furnace – basic oxygen furnace Electric arc furnace Direct reduced iron – electric arc furnace Electric smelting furnace Direct reduced iron – electric smelting furnace – basic oxygen furnace Electrolysis Electrolysis cell (molten oxide or low temperature) Process routes Sequence of furnaces or reactors used for process CCUS Top gas recycling Low to zero GHG emission hydrogen Biomass Low to zero GHG emission hydrogen Abundant renewable electricity Low to zero GHG emission hydrogen Abundant renewable electricity Abundant renewable electricity Steelmaking coal Now: Natural gas or coal (any) Future: Hydrogen Now: Natural gas or coal (any) Future: Hydrogen Electricity Primary reactor technology readiness Raw material flexibility Steel grade flexibility Integration with existing plants Primary reductant source GHG emission intensity (tCO2 per tonne of steel) End state enablers 1 2 3 4 2.2 0.4 Today End state 1.0 0.3 Today End state 1.2 0.4 Today End state 2.6 <0.1 Today End state Unknown Unknown Our latest Climate Policy Principles are available at bhp.com/sustainability/climate-change/advocacy-on-climate-policy Operational Contents Introduction GHG emissions Physical risk and adaptation Equitable change and transition Climate policy advocacy Enabling delivery Additional information BHP Climate Transition Action Plan 2024 22 Value chain GHG emissions Portfolio

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Steelmaking: Longer-term industry pathways continued We believe a feasible GHG emissions intensity Our view is that decarbonisation of the steel reduction trajectory for steelmaking will involve a sector is likely to occur more slowly than has been combination of existing blast furnace assets (modified projected by many low GHG emission scenarios, to reduce their GHG emission intensities), as well as including our 1.5°C scenario. the progressive introduction of near zero emission process routes. scenario, For more information refer to Portfolio on the – steel Steelmaking, sector in our iron 1.5°C ore Our strategy is to support the and pages steelmaking 37 and 38 coal in our 1.5°C scenario on development of technologies We also believe decarbonisation of the steel across all four process routes. sector will occur more slowly than what has been projected by the International Energy Agency’s Net Currently there are no near zero emissions Zero Emissions by 2050 scenario. That scenario technologies for iron ore-based steelmaking that are incorporates a larger role for electrolysis in the period ready for widespread commercial adoption. This must to CY2050, which we believe is unlikely to be feasible change for us to achieve our long-term net zero goal. based on current technical and commercial readiness. Near zero emissions steelmaking options for the Our view of a near zero emissions steel trajectory traditional blast furnace require CCUS in combination for the sector informs our strategy and actions, and with other complementary technologies (e.g. top reflects the signposts we have observed, particularly gas recycling). over the past three years. Our view is informed by: Low to zero GHG emissions hydrogen has the – insights from our customers potential to decarbonise the electric arc furnace and – investment commitments from steelmakers the electric smelting furnace process routes to near – lead time for permits and construction for zero emissions. new operations or retrofitting of existing blast The electric arc furnace route is relatively mature but furnace assets Electra (which we invested in through BHP Ventures) and their pilot plant facility in Boulder, Colorado lacks flexibility and there are insufficient high-quality – policy settings in the dominant steel producing iron ore resources to rely exclusively on this route regions (particularly China and India) to meet global demand. In CY2023, only 3 to 4 per – cost cent of global seaborne iron ore supply met the – technology readiness levels specifications currently accepted in the market for production of direct reduced iron for electric arc – lifespan of existing assets (particularly for regions furnaces.9 It is critical the steel sector develops with younger blast furnace fleets) alternative technology pathways to near zero emissions steel that are compatible with a wider We continue to monitor these signposts and range of iron ore types. incorporate their signals into our views on a feasible For new process routes, we estimate the electric transition for the steel sector and its likely timeframe. smelting furnace will begin to play a substantive role from the early- to mid-2030s, while electrolysis is unlikely to be ready for widespread deployment until the late 2030s. These estimates remain subject to further advancements and testing required to demonstrate technical and commercial viability. For development case studies of the on electric how we’re smelting supporting furnace the and BHP iron ore (left), direct reduced iron produced from BHP iron ore (middle) and iron after electric smelting of BHP direct reduced iron (right) electrolysis Case studies for on steelmaking, pages 26 and refer 27, to later Steelmaking: in this section  23

Our pipeline of projects spans a wide range of process routes and levels of technological maturity. Our medium-term goal is to support industry to develop steel production technology capable of 30 per cent lower GHG emissions intensity relative to conventional blast furnace steelmaking, with widespread adoption expected post-CY2030. For the essential definitions, assumptions and adjustments for this medium-term goal, as well as more information on factors that inform it, and more information on how we define the GHG emissions intensity of the unmodified blast furnace process route, refer to Additional information – Definitions and key details for our GHG emissions targets and goals on pages 57 to 60 We have revised the language used in our mediumterm goal for steelmaking to provide greater clarity and to reflect the range of steelmaking process routes that now form part of our strategy. This is due to technological advances as well as the evolution of our strategy. We have clarified that ‘technologies and pathways’ (as used in our original language) means ‘steel production technology’. We have also replaced ‘reduction in integrated steelmaking’ with ‘relative to conventional blast furnace steelmaking’, which broadens the scope of our medium-term goal to encompass GHG emissions abatement across more process routes than just the conventional blast furnace route. This brings the wording of our medium-term goal in line with our current activities (as described on this page) and plans across all four steelmaking process routes (as described on the previous pages). For the previous language of our medium-term goal for steelmaking, refer to the Climate change section in the BHP Annual Report 2023, available at bhp.com/investors/annual-reporting We are technically and financially contributing to the development of technologies that can potentially provide a GHG emissions intensity reduction of at least 30 per cent. These technologies may be deployed either in isolation or in combination. While some of the technologies we are supporting have a potential GHG emissions intensity reduction exceeding 30 per cent, none has the commercial readiness and flexibility needed for widespread adoption today. We currently estimate steelmaking-associated Scope 3 emissions using a methodology that relies on industry assumptions rather than customer-specific data. As a result, any GHG emission reductions achieved by our steelmaking customers because of our actions are not reflected in our FY2024 reported Scope 3 emissions inventory. We continue to engage with our steelmaking customers on ways to enhance GHG emission data collection and calculation methodologies with an eventual aim to increase visibility of the Scope 3 emissions associated with the processing of our sold products. For more information on our latest progress, refer to the Climate change section in the latest BHP Annual Report, available at bhp.com/investors/annual-reporting Our strategy and actions Since publishing our previous CTAP in CY2021, we have made substantial progress toward the achievement of our medium-term goal for steelmaking. Drawing upon our in-house iron and steelmaking industry expertise, we have developed our steelmaking decarbonisation project program, as shown in Figure 2.4. Our ambition is for multiple technology pathways to mature so that there are commercially feasible options available to steelmakers in different regions. More information on the projects we have in our steelmaking decarbonisation program is available at bhp.com/climate The primary criteria we use to identify and prioritise projects for our program are: – Scale: The depth of GHG emission abatement that could be attained, how quickly it could be brought to readiness, and how broadly it could be adopted across the industry – Influence: Our capabilities and the leverage available to us to have a tangible impact on development and help enable the technology to be successfully propagated – Alignment: Relevance to our assets, our commodities and our customers, and the fit within the wider technology landscape Steelmaking: Our Scope 3 emissions goal to support capability for GHG emissions intensity reduction 48 partners 20% coverage Distinct industry partners, including 9 steelmakers, 16 research institutes and 11 technology companies (both start-ups and vendors)10 Partnerships with steelmakers represent 20 per cent of CY2023 reported global steel production11 i. GHG emission intensity reduction compared to the conventional blast furnace – basic oxygen furnace route Project scale of testing Abatement potentiali range 95% 10% 30% Scoping Executing Complete Testing components in industrial conditions Full-scale deployment in customer facilities Concept development Project workstream stage Process routes Electrolysis Blast furnace Electric arc furnace or electric smelting furnace Multiple processes Demonstrating integrated process systems in industrial conditions Case study #1: Page 26 Case study #3: Page 27 Case study #5: Page 27 Case study #6: Page 27 Case study #2: Page 26 Case study #4: Page 27 Laboratory testing of components or process steps Figure 2.4: Our project workstreams for steelmaking GHG emissions intensity reduction15 Project workstreams (not all project workstreams are shown) Operational Contents Introduction GHG emissions Physical risk and adaptation Equitable change and transition Climate policy advocacy Enabling delivery Additional information BHP Climate Transition Action Plan 2024 Value chain GHG emissions Portfolio 24

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Steelmaking: Our Scope 3 emissions goal to support capability for GHG emissions intensity reduction continued Our strategy and actions continued 3. In FY2024, we formed a consortium with BlueScope technologies toward the technical demands of efficient, All investments related to steelmaking GHG emission and Rio Tinto to conduct a joint pre-feasibility study scalable iron and steelmaking. These technologies reductions that are above a certain financial threshold Our steelmaking decarbonisation program has four for a pilot facility. This arose from a shared ambition have now progressed through from the laboratory to are subject to existing capital management processes. components: to collaborate and advance near zero emissions pilot-scale, with plans for demonstration-scale options. For more information on how we review proposed 1. Collaborative partnerships and consortiums: steelmaking in Australia. If the study is successful and investments, refer to Enabling delivery – How we We partner to develop and execute high-impact further investment is approved by all partners, a pilot Standardisation and transparency manage capital on page 53 tests, trials, pilots and demonstrations that can be plant could be commissioned as early as CY2027. We advocate for the harmonisation of sustainability-shared with steelmakers and are aligned with our Key actions related standards, including Scope 3 emission conceptual steel decarbonisation framework. Research 2. Research: We directly fund, produce and measurement methodologies in steel value chains. Key actions are included in each of the case studies The research we conduct is a foundation for outlined on the next two pages. disseminate industry-leading research, collaborate As a member of ResponsibleSteel, we are actively effective technological development. Our laboratory with technology developers and support the engaged in the development of broader sustainability experimental programs and published research build the establishment of cooperative research centres. performance standards that promote responsible understanding of fundamental processes to inform the: production improvements in steel value chains. 3. BHP Ventures: We invest in early-stage ~US$420m – scope of larger and more costly industrial trials technologies with breakthrough potential and – optimisation of our customers’ operations to lower participate in their development journey. their GHG emissions Co-investment co-investment this decade 4. Standardisation and transparency: We – design of GHG emission abatement technology Through our steelmaking decarbonisation program, we Total of committed and planned funding from us and advocate for consolidated, robust sustainability aim to leverage our own funding by significant multiples our estimate of committed or anticipated funding and and reporting standards that are fit-for-purpose We are expanding our established and industry-leading by attracting and enabling investment (financial and in-kind contributions from our strategic partners from and support transparency and traceability research programs with further funding and enhancing in-kind) from our strategic partners. As shown in FY2020 to FY2029 in support of steelmaking GHG improvements in the value chain. the key metrics on the right, we estimate a potential emissions intensity reductions12 our own capabilities to help accelerate the generation and sharing of knowledge. co-investment figure by combining funding by us and Thisfigureincludestheestimated Across all four areas, we regularly monitor the merits funding and in-kind contributions from our partners for of technologies under development. contributions from our strategic partners, During FY2024, we strengthened our funding the period from FY2020 to FY2029, to indicate how our as well as: commitment to the BHP Centre for Sustainable funding can amplify impact. This figure is not a forecast Collaborative partnerships Steelmaking Research (formerly the Centre for and relies on estimation that is limited by available ~US$140m funding and consortiums Ironmaking Materials Research) at the University information and our assumptions. We hope to see of Newcastle in Australia. Through this and other certain projects in our program qualify for government We collaborate with strategic partners in the steel committed by BHP research activities, we have been focusing on areas funding available to accelerate pre-commercial sector through bilateral partnerships and through larger such as demonstrating the performance of BHP ores innovation, which can further amplify impact. in the past five years consortiums. Our partners share a common aim to in pellet blends in China, testing hydrogen reduction accelerate GHG emission reductions in steelmaking – Committed funding (including BHP Ventures and electric smelting of BHP ores, and studying 13 for existing and new steelmaking assets. The scope of Governance investments) from FY2020 to FY2024 biomass utilisation in coke-making. each of our partnership projects is consistent with our Our strategy, actions and progress to support and partners’ technology roadmaps. steelmaking GHG emission reductions are subject BHP Ventures To support the development of near zero emissions Through our venture capital arm, BHP Ventures, to existing Board and management governance. ~US$75m funding steelmaking technologies, we aim to progress specific Between FY2021 and FY2023, we have included partnerships to more mature development phases we search for and invest directly in early-stage and planned by BHP for the next developing technologies with breakthrough potential. measures related to steelmaking and the support over time, while also considering options for greater of our steelmaking medium-term goal as part of the five years collaboration to increase the scale and impact of BHP Ventures’ participation in the technology ecosystem affords us early visibility of potential breakthroughs and the determination of remuneration outcomes for our Chief Estimated additional funding (including BHP knowledge sharing. Our electric smelting furnace Executive Officer (CEO) and other ELT members. pilot plans are an example where: opportunity to access and accelerate their development Ventures investments) for FY2025 to FY202914 creating real strategic benefits and financial returns. For more information on our climate-related governance 1. In FY2022, we successfully tested electric smelting of and remuneration, refer to: our iron ores at laboratory scale (at the University of In the iron and steel sector, BHP Ventures is invested in 39% alignment Newcastle) and prioritised the technology for scale up. transformative electrochemical reduction technologies, – Enabling delivery – Our governance on page 50 which utilise electrons instead of carbon to reduce iron – Enabling remuneration delivery and – organisational Our management, capability on Proportion of our FY2024 iron ore and steelmaking 2. In FY2023, we formed a partnership with the oxide ores to metallic iron. Leading startups Boston page 51 coal revenue from customers that have set net engineering firm, Hatch, to design an electric Metal and Electra have demonstrated to us their focus zero operational GHG emissions targets or smelting furnace pilot plant. The design study and capability to rapidly advance and adapt their goals for CY2050 or sooner was completed in February 2024. 25

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Case study #1 Case study #2 Optimising carbon capture for blast furnace gas Hydrogen reduction and electric smelting of BHP ores Process route Blast furnace Process route Electric smelting furnace Technology route CCUS Technology route Hydrogen reduction and smelting GHG emissions intensity 45 per cent, or 1.0 tCO2 per tonne The installation of the carbon GHG emissions intensity 85 per cent, or 1.8 tCO2 per tonne reduction potential15 of steel capture unit on our Ghent blast reduction potential15 of steel Technology readiness Component tests in operational Technology readiness Laboratory validation (TRL 4 to 5) level (TRL) (1 to 9)16 environment (TRL 5 to 6) furnace is a great example of a level (TRL) (1 to 9)16 Collaboration model Consortium step towards CO2-free processes.” Collaboration model Research Project type Industry trial ArcelorMittal Belgium Project type Laboratory scale optimisation Chief Executive Officer, Manfred Van Vlierberghe program Partners Partners ArcelorMittal: Leading multinational steelmaker Recent activities BHP Centre for Sustainable Steelmaking Mitsubishi Heavy Industries: Technology vendor Research at the University of Newcastle in and trial operator – Designed, constructed and commissioned industrial Australia: Leading ironmaking research centre pilot equipment at ArcelorMittal’s Ghent steelworks Mitsubishi Development: Mineral resources in Belgium – a flagship operation for blast furnace developer and investor in Australia, and wholly BHP contribution GHG emissions intensity reduction research Direct funding support, supply of raw materials owned subsidiary of Mitsubishi Corporation – Commenced carbon capture trials in FY2024, for testing and technical resources testing its efficiency and effectiveness on blast BHP contribution furnace gas streams BHP Centre for Sustainable Steelmaking Research conducting Trial funding, technical support and guidance, Project aims a laboratory electric smelting furnace test and project structuring Next steps – Test hydrogen reduction and electric smelting of BHP iron ore using laboratory prototype – Conduct the carbon capture testing pilot at Ghent equipment Project aims Pilot the performance of a commercially available for 12 to 18 months, including testing of other – Investigate iron ore performance, optimise the carbon capture process on blast furnace gas and on-site GHG emission point sources test methodology and scale up the experiments other on-site point sources in order to test the – Continue engineering studies for commercial to 100kg to 200kg scale Our laboratory tests and advanced efficiency and effectiveness of CCUS for various installation as part of ArcelorMittal’s research are revealing the gas streams and support the scale-up of CCUS decarbonisation roadmap for its Ghent operations Recent activities mechanisms of hydrogen-based Successfully used hydrogen to convert our WAIO iron ore fines into direct reduced iron, then electrically steelmaking using BHP iron ores smelted the direct reduced iron to produce molten iron – critical knowledge for successful at laboratory scale scale up of the technology.” Next steps University of Newcastle – Further research into hydrogen reduction of Professor Tom Honeyands our iron ores in shaft furnace and fluidised bed laboratory scale tests – Planned optimisation experiments at the kilogram scale and continue smelting batch testing at hundreds of kilograms scale – Evaluation of the potential to utilise electric smelting furnace slag waste as a cement The information and analysis in each of the case studies on this page has been prepared by BHP and does not necessarily reflect substitute (thereby avoiding GHG emissions the views of BHP’s partner(s) in the collaboration featured by the associated with the production of Portland cement) case study. Carbon capture plant at ArcelorMittal’s Ghent steelworks 26

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Case study #3 Case study #4 Case study #5 Case study #6 Molten oxide electrolysis China customer partnerships to Low temperature electrolysis Electric smelting improveblastfurnaceefficiency furnace pilot plant Process route Electrolysis Process route Blast furnace Process route Electrolysis Process route Electric smelting furnace Technology route Electrolysis Technology route Raw materials efficiency and coke Technology route Electrolysis Technology route Smelting ovens gas injection GHG emissions intensity 95 per cent, or 2.1 tCO2 per tonne GHG emissions intensity 5 per cent, or 0.1 tCO2 per tonne GHG emissions intensity 95 per cent, or 2.1 tCO2 per tonne GHG emissions intensity 85 per cent, or 1.8 tCO2 per tonne reduction potential15 of steel reduction potential15 of steel reduction potential15 of steel reduction potential15 of steel Technology readiness Pilot validation (TRL 5) Technology readiness Integrated system demonstrations Technology readiness Pilot validation (TRL 5) Technology readiness Laboratory validation (TRL 4 to 5) level (TRL) (1 to 9)16 level (TRL) (1 to 9)16 (TRL 8 to 9) level (TRL) (1 to 9)16 level (TRL) (1 to 9)16 Collaboration model BHP Ventures-led investment Collaboration model Customer partnerships Collaboration model BHP Ventures-led investment Collaboration model Consortium Project type Laboratory test program and Project type Industry trial and full-scale Project type Laboratory test program and Project type Pilot plant pilot plant implementation pilot plant Partners Partners Partners Partners Boston Metal: Technology startup based in the US HBIS: Leading Chinese steelmaker Electra: Technology startup based in the US BlueScope: Leading Australian steelmaker BHP contribution Zenith: Leading Chinese steelmaker Rio Tinto: Mining peer BHP contribution – Equity investment (through BHP Ventures) as a BHP contribution – Equity investment (through BHP Ventures) as a BHP contribution strategic partner, supply of ores for testing and strategic partner, supply of ores for testing and – Funding, project resources, technical knowledge technical knowledge exchange – Funding, project resources, technical knowledge and technical knowledge exchange and supply of ores for testing supply of ores for testing Project aims Project aims Project aims Project aims – Support the development of molten oxide electrolysis – Support the development of low temperature – Demonstrate the potential viability of near zero technology, which has the potential to provide a – Study and undertake GHG emission reduction electrolysis technology, which has the potential to emissions electric smelting to our customers scalable, near zero emissions ironmaking process initiatives on multiple blast furnaces at commercial provide a scalable, near zero emissions ironmaking without fossil fuels or hydrogen and may have the scale that can have immediate impact – Work towards a pilot-scale facility to seek to resolve process with the flexibility to process a variety of iron flexibility to process a variety of iron ore types technical questions that cannot be answered in the Recent activities ore types laboratory – Understand its breakthrough potential and establish – Installed a novel lump iron ore screening plant at a – Understand its breakthrough potential and establish the performance of our iron ore products early in the – Optimise for safe and efficient processing of Pilbara HBIS site to more efficiently clean lump iron ore before the performance of our iron ore early in the development lifecycle iron ores at full scale charging into the blast furnace, allowing high ratios development lifecycle of lump to be used instead of more GHG emissions – Accelerate the opportunity for scale-up of this Recent activities – Explore performance impacts when rapidly turned intensive pellets and sinter technology in a configuration suitable for our ores down or idled, as this could enable the use of variable – In CY2023, we increased our investment by renewable electricity without power storage participating in Boston Metal’s Series C funding – Completed an engineering design study and began the Recent activities installation of a commercial-scale drying system at the – In FY2023, we announced a pre-feasibility design study – We have collaborated closely with Boston Metal Recent activities HBIS site to further improve the use of lump iron ore in for a pilot-scale electric smelting furnace facility with since CY2020, including sharing expertise to support place of pellets and sinter, and lower fuel use and GHG – In March 2024, Electra announced the launch of a pilot technology development and supplying iron ore to Hatch. The study examined scale, configuration, and emissions plant in Boulder, Colorado to produce 1m² pure iron support scaling up of the molten oxide electrolysis cell location of a potential pilot facility and was completed plates. Our iron ore has been supplied for testing – Began an engineering study with Zenith to install in FY2024. Next steps hydrogen-rich byproduct coke oven gas injection into Next steps – In FY2024, we announced a collaboration with Rio Tinto the blast furnace to lower coal use and GHG emissions and BlueScope to consolidate and advance the work – Boston Metal plans to commission new test equipment – Continue testing of our iron ores at Electra’s pilot intensity of steel production. The parties have since each has undertaken to date in CY2024 to validate and integrate design components plant to extend our understanding of the performance agreed and announced their plans to jointly fund the at larger scale, with a full-scale industrial cell prototype of our iron ores and support the development of the installation of coke oven gas injection equipment Next steps anticipated as early as CY2026 electrochemical and hydrometallurgical process – We commenced a larger scale, longer testing Next steps – We will assess locations in Australia for a pilot facility campaign in May 2024 to extend our understanding together with Rio Tinto and BlueScope, considering – Construction of the HBIS lump iron ore dryer project supporting infrastructure, workforce, access to target of the performance of our iron ores in Boston Metal’s and the Zenith coke oven gas injection will continue commercial-scale cell industry and suppliers, and the suitability for operational into FY2025 trials. This study is expected to conclude in FY2025. If approved, the pilot facility could be commissioned as early as CY2027 The information and analysis in each of the case studies on this page has been prepared by BHP and does not necessarily reflect the views of BHP’s partner(s) in the collaboration featured by the case study. 27

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Direct suppliers: Our Scope 3 emissions net zero target for direct suppliers’ operational GHG emissions Our long-term target is to Industry pathways Figure 2.5: Reported Scope 3 emissions inventory covered by our long-term net zero target for achieve net zero by CY2050 for Most of our reported Scope 3 emissions inventory direct suppliers covered by our long-term net zero target for direct Scope 3 emissions (MtCO -e) (adjusted for acquisitions, divestments and methodology changes) the operational GHG emissions suppliers is in Category 1, as shown in Figure 2.5. 2 of our direct suppliers. FY2020 FY2024 Around five per cent of our FY2024 reported Scope 3 emissions inventory for Category 1 (adjusted FY2020 Category 1 9.1 11.5 Purchased goods and services (incl. capital goods) We use FY2020 as the reference year for our for acquisitions, divestments and methodology changes) was from suppliers providing engineering, Category 3 2.3 2.3 long-term net zero target. This long-term net zero Fuel- and energy-related activities target covers the Scopes 1 and 2 emissions (i.e. financial, labour, insurance and consulting services. Operational GHG emissions from these types of FY2024 Category 6 0.1 0.1 operational GHG emissions) of our direct suppliers Business travel in our reported Scope 3 emissions inventory in: suppliers are typically dominated by electricity use. We expect that because reducing operational GHG Category 7 0.2 0.3 – Category 1 ‘Purchased goods and services 0 5 10 15 Employee commuting emissions from electricity is one of the relatively (including capital goods)’ easier GHG emission abatement pathways to pursue, – Category 3 ‘Fuel-related and energy-related these types of suppliers should be more willing and activities’ able to set a net zero operational GHG emissions Strategy We also recognise selective purchasing will be a – Category 6 ‘Business travel’ target or goal – and potentially for a timeframe well progressive strategy as many suppliers are still early Each year we spend billions of dollars on goods and before CY2050. in the journey towards setting and progressing towards – Category 7 ‘Employee commuting’ services from thousands of suppliers. Our strategy their GHG emission reduction targets and goals. Around 44 per cent of our FY2024 reported Scope targets our top 500 suppliers by spend, which We adjust supplier-related value chain GHG 3 emissions inventory for Category 1 (adjusted for contributed to 78 per cent of our FY2024 total spend emissions (Scope 3 emissions in the above Supportive engagements acquisitions, divestments and methodology changes) on suppliers. categories) for our reference year and subsequent Our supportive engagements intend to identify, was from types of suppliers whose GHG emissions performance for acquisitions, divestments and assess and pursue opportunities to partner with are hard-to-abate. These include suppliers of major Selective purchasing methodology changes. our direct suppliers to support their GHG emission mobile and fixed equipment, tyres, air transportation, Our selective purchasing approach sets a commercial reduction initiatives. For the essential definitions, assumptions and chemicals and explosives. Due to their hard-to-requirement that, over time, a supplier must actively adjustments for this long-term net zero target, as well abate operational GHG emissions profile, these as more information on factors that inform it including suppliers can find it more challenging to set a net reduce its operational GHG emissions and/or Measurement and monitoring how we and our value chain may use carbon credits for maintain a competitive level of GHG emissions offsetting, refer to Additionalinformation–Definitions zero operational GHG emissions target or goal. Measurement and monitoring are essential to and key details for our GHG emissions targets and This situation is further complicated by the relatively intensity for their product or service. We expect that, assessing performance against our long-term net goals on pages 57 to 60 smaller pool of these types of suppliers, requiring for contracts where we implement this, it will add zero target for direct suppliers. Our current calculation us to work more closely to encourage their GHG commercial value for direct suppliers with robust For more information on our latest progress, refer to the methodology for Scope 3 emissions reporting Climate change section in the latest BHP Annual Report, emission reduction efforts. plans and demonstrated performance improvement. depends on industry averages. available at bhp.com/investors/annual-reporting The level of difficulty in abating the remainder of our We have also recently begun to incorporate new GHG We plan to improve the accuracy of our Scope 3 FY2024 reported Scope 3 emissions inventory for emission reduction criteria into our supplier selection emissions inventory reporting over time, noting there Category 1 sits somewhere in between easier-to- and tendering processes, including the setting of net is currently a wide range of reporting capabilities abate and hard-to-abate. zero targets and goals, the GHG emissions intensity among our suppliers. We have started to introduce of the goods and services being provided, or specific Our long-term net zero target for direct suppliers contractual requirements for regular GHG emissions and relevant GHG emission reduction initiatives. also covers Category 3, 6 and 7. We aim to apply reporting by our suppliers that will help to build their our strategy to these other categories where We have seen a year-on-year increase in the measurement capability and improve our ability to feasible, noting that they have significantly less proportion of our top 500 suppliers that have a report progress against our long-term net zero target GHG emissions than Category 1. target or goal aligned with our long-term net zero for direct suppliers. We have also made incremental target for direct suppliers – from 27 per cent in improvements in the calculation of this part of our FY2022, increasing during FY2023 and up to reported Scope 3 emissions inventory, moving from 78 per cent in FY2024. spend-based emission factors to quantity-based measurement for certain supplied items. 28

Shipping: Our Scope 3 emissions goal to support GHG emissions intensity reduction and net zero target Our medium-term goal is to support 40 per cent GHG emissions intensity reduction of BHP-chartered shipping of BHP products by CY2030, from a CY2008 baseline. Our long-term net zero target is to achieve net zero by CY2050 for the GHG emissions from all shipping of BHP products. We use FY2020 as the reference year for our long-term net zero target. We adjust shipping-related value chain GHG emissions (Scope 3 emissions, Category 4 ‘Upstream transportation and distribution’ and Category 9 ‘Downstream transportation and distribution’ emissions) for our CY2008 baseline year for our medium-term goal and FY2020 reference year for our long-term net zero target, and subsequent performance for acquisitions, divestments and methodology changes. For the essential definitions, assumptions and adjustments for this medium-term goal and long-term net zero target, as well as more information on factors that inform them, including how we and our value chain may use carbon credits for offsetting, refer to Additional information – Definitions and key details for our GHG emissions targets and goals on pages 57 to 60 We have also committed that, by CY2030, 10 per cent of our total products shipped to our customers using our time charter vessels will be using zero GHG emission fuels. This commitment is subject to the availability of technology, supply, safety standards and the establishment of reasonable thresholds for price premiums. Our medium-term goal for shipping relies on sector-wide progress being made by the shipping industry and so we have framed it as a goal and aligned it with the approach of the International Maritime Organisation (IMO), which has set levels of ambition for GHG emissions for the international shipping sector. We selected CY2008 as our goal’s baseline year to align with the base year for the IMO’s CY2030 goal and its corresponding reasoning and strategy. Together, shipping industry participants, including us, have made significant progress, particularly through vessel efficiency, to enable GHG emissions intensity reductions compared to CY2008 for BHP-chartered shipping of our products. In FY2024, the GHG emissions intensity of BHP-chartered shipping was 42 per cent below CY2008 (adjusted for acquisitions, divestments and methodology changes), as shown in Figure 2.6, achieved through a combination of lower GHG emission fuel use and vessel efficiency improvements. We believe it will be possible to at least maintain, if not reduce, GHG emissions intensity in the coming years although this will be more challenging because of our expanding business activity and the associated dependence on the availability of GHG emission reduction solutions for the shipping industry. We see the potential for emerging pathways to enable net zero GHG emissions from shipping in the future based on the industry’s ambition and promising progress so far in the development and trialling of low to zero GHG emission fuels. Our long-term net zero target reflects this ambition and progress. For more information on our latest progress, refer to the Climate change section in the latest BHP Annual Report, available at bhp.com/investors/annual-reporting Industry pathways The IMO has set levels of ambition, strategies and regulations governing the GHG emissions resulting from the international shipping sector. As a result, we are seeing the shipping industry beginning to focus on the next stage of what will be required to decarbonise to net zero. For more information on the IMO’s levels of ambition for international shipping, refer to Spotlight: The International Maritime Organisation and its levels of ambition for international shipping on this page Figure 2.6: Reported Scope 3 emissions intensity covered by our medium-term goal for shipping Grams of CO2-e per deadweight tonne per nautical mile (gCO2-e/dwt/nm) (adjusted for acquisitions, divestments and methodology changes) CY2008 FY2024 0 2 4 6 8 CY2008 FY2024 Category 4 (subset) 5.8 3.4 BHP-chartered shipping of BHP products Figure 2.7: Reported Scope 3 emissions inventory covered by our long-term net zero target for shipping Scope 3 emissions (MtCO2-e) (adjusted for acquisitions, divestments and methodology changes) FY2020 FY2024 0 2 4 6 8 FY2020 FY2024 Category 4 (subset) 4.5 4.3 BHP-chartered shipping of BHP products Category 9 (subset) 2.1 1.9 Third party-chartered shipping of BHP products Spotlight The International Maritime Organisation and its levels of ambition for international shipping The IMO is the United Nations agency responsible for measures to improve international shipping and prevent pollution. The IMO has set the following levels of ambition for the international shipping sector: – reduce CO2 emissions per transport work (i.e. the transport of a unit of cargo or passengers per nautical mile), as an average, by at least 40 per cent compared to CY2008, by CY2030 – uptake of zero or near zero GHG emission technologies, fuels and/or energy sources17 to represent at least five per cent, striving for 10 per cent, of the energy used, by CY2030 – peak GHG emissions as soon as possible, and reach net zero GHG emissions by or around CY2050 The IMO is supporting shipping industry progress to achieve these ambitions through current and proposed regulatory measures and a capacity building and technical assistance program that includes a range of global projects. For more information on the IMO’s work to cut GHG emissions from ships, refer to the IMO website, available at imo.org/en/MediaCentre/ HotTopics/Pages/Cutting-GHG-emissions.aspx Operational Contents Introduction GHG emissions Physical risk and adaptation Equitable change and transition Climate policy advocacy Enabling delivery Additional information BHP Climate Transition Action Plan 2024 Value chain GHG emissions Portfolio 29

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Shipping: Our Scope 3 emissions goal to support GHG emissions intensity reduction and net zero target continued Industry pathways continued Our strategy to support our pathway encompasses three areas of focus: In the 2020s, the largest GHG emission reduction opportunities for international shipping are expected 1. Efficiencyimprovements:Drive operational to come from improved operational and technological efficiency through vessel and voyage optimisation energy efficiencies, including voyage optimisation and and technological energy efficiency improvements. energy saving technologies. Lower GHG emission Operational efficiency measures include consolidating alternative fuels that have reached a suitable level parcel sizes to use larger and more efficient vessels of technological readiness are also expected to and using alternative routes. Technological measures play some role in the 2020s. For example, on a include chartering vessels with energy saving well-to-wake basis, a B24 biodiesel blend has a technologies such as vessels with premium hull potential to reduce GHG emissions by up to 19 per coatings and wind-assisted propulsion, which we are cent compared to conventional fuel oils.18 However, trialling with Pan Pacific Copper and Norsepower. widespread use of these fuels is dependent on the 2. Lower GHG emission and low to zero GHG availability and commercial viability of supply in emission alternative fuels: Establish demand and shipping routes. incentivise industry uptake of lower GHG emission In the 2030s and beyond, switching to low to zero fuels and low to zero GHG emission fuels, such GHG emission fuels (e.g. ammonia produced with low as our dual-fuelled LNG chartered vessels and to zero GHG emissions, civil nuclear technologies biodiesel-fuelled voyages, respectively. We are also for commercial vessel propulsion) is expected to be working across the ammonia value chain for the a significant lever. The transition to low to zero GHG design and build of ammonia fuelled vessels, and emission fuels will require the alignment of many supply of low to zero GHG emissions ammonia. factors, including technology readiness, appropriate 3. Improve carbon accounting: Step change safety regulations, crew competency, availability improvements in the completeness and accuracy and security of fuel supply and commercially viable of our carbon accounting through digitisation charter and fuel pricing. The alignment of these and automation in our value chain. This builds The retrofit installation of a wind rotor on a BHP-chartered vessel, with our partners Pan Pacific Copper and Norsepower factors is likely to be a continuing challenge for the on our partnership with DNV and our use of their shipping industry and will require collaboration and Veracity data platform for validation and reporting partnerships to solve. of shipping-related value chain GHG emissions Stewardship We intend to start deploying since FY2022. Strategy International shipping is a hard-to-abate industry. ammonia-fuelled vessels on our We estimate our shipping strategy since FY2021 Demand signals for vessels powered by low to zero As one of the world’s largest dry bulk charterers, has led to actual or committed co-investment from GHG emission fuels are important to establish the iron ore shipping routes in the we play an important role in supporting the maritime BHP and our maritime industry partners totalling business case for investment and development of new latter half of this decade, subject to industry to meet or exceed the GHG emission approximately US$400 million19 for the period from shipping fuel supply chains. reduction ambitions set by the IMO. FY2021 to FY2024. technical and commercial viability. Considering this, we have launched an expression Our shipping medium-term goal, long-term net The vast majority of the co-investment figure is based of interest for establishing an ammonia value chain zero target and CY2030 commitment are generally on our assumptions about the cost to the owners of five for the maritime industry, which includes the design consistent with or exceed the IMO’s CY2030 ambitions new dual-fuelled LNG chartered vessels to meet our and build of ammonia-fuelled vessels and supply of and CY2050 ambition as outlined above, and therefore chartering requirements in alignment with our strategy, low to zero GHG emissions ammonia for use as a we expect to have a similar pathway as the sector. Our together with actual and committed future spend on shipping fuel. We are now working closely with vessel pathway will be accelerated directly by our actions and the Global Centre for Maritime Decarbonisation by owners and fuel providers, as well as shipyards indirectly by the impact of our actions and influence in BHP, its other five founding partners and the Singapore and regulators, on critical developments to address the industry. Maritime and Port Authority. challenges for use of ammonia onboard vessels. 30

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Portfolio We are positioning our portfolio of commodities and assets to create value for today and the future. Our portfolio strategy Spotlight: Our planning range – what it is and how we use it Spotlight: Our 1.5°C scenario – what it is and how we use it Resilience in our 1.5°C scenario Copper, nickel, uranium and potash in our 1.5°C scenario Steelmaking, iron ore and steelmaking coal in our 1.5°C scenario Copper, one of the commodities we produce, can be used in renewable energy technologies 31

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our portfolio strategy Our strategy is to responsibly manage the most To continue responding to changes in the external resilient long-term portfolio of assets, in highly environment and help shape a more resilient strategy, Spotlight attractive commodities, and grow value through being we carefully monitor key signposts for economic, Our planning range – what it is and how we use it excellent at operations, discovering and developing societal, political and technological changes that resources, acquiring the right assets and options, could materially move our long-term forecast for and capital allocation. demand, supply and price across our commodities (referred to as ‘our planning range’). We regularly Our planning range refers to our long-term 2020 (containing our previous portfolio analysis), Through our differentiated approach to social value, reassess our views on commodity and asset forecast for demand, supply and price across we have updated our planning range to reflect an we will be a trusted partner who creates value for attractiveness to this end. our commodities. It is comprised of three unique acceleration in policy and progress on climate all stakeholders. Climate change, climate scenarios and the progress independent planning cases: a ‘most likely’ base change for certain sectors, such as power We are positioning our portfolio of towards the global net zero transition are among the case, and an upside case and downside case and transport. commodities and assets to create key drivers of decision-making that support our risk that provide the range’s boundaries. The modelled outputs of our planning range result in appetite and commodity outlook to inform strategy global CO emission pathways implying a projected These three cases reflect proprietary forecasts for 2 value for today and the future. and corporate planning. global temperature increase of around 2°C by CY2100. the global economy and associated sub-sectors In our portfolio we have copper, nickel, uranium, iron Insights from commodity and portfolio reviews are (i.e. energy, transport, agriculture, steel) and the How we use our planning range ore, steelmaking coal and, currently, energy coal. presented to our ELT and Board. They inform major resulting market outlook for our core commodities. portfolio decisions and cascade through our planning Our planning range’s demand, supply and Among other end uses, copper is used in electric We regularly make updates to our planning range, processes, including how we allocate capital and how price forecasts for key commodities are used vehicles, renewable energy technologies and the power which is informed by key signposts associated we unlock new business opportunities. Our strategy to inform data inputs into operational modelling grid, nickel is used in batteries, uranium is a feedstock with the global economy and sub-sectors, as formation, capital allocation and planning processes and drive operational planning. Our planning for nuclear power, potash is used in fertilisers, which well as commodity markets. For example, since enable deliberate and timely responses to the range is also used for strategy formation and can assist with food security for a growing population we published the BHP Climate Change Report climate-related risks (threats and opportunities) our investment decisions. and more sustainable land use, while iron ore and steelmaking coal create steel to build new infrastructure. portfolio is facing. We have made or announced significant changes We maintain a strong balance sheet and monitor our to our portfolio since our previous CTAP in CY2021, net debt and gearing ratio (the ratio of net debt to including: net debt plus net assets). This gives us the flexibility – the acquisition of OZ Minerals in FY2023 to respond to changing external factors, including to support the creation of a South Australia climate-related risks, as they arise. This, coupled copper basin with our Capital Allocation Framework, enables us to execute our portfolio positioning decisions for the – sanctioning of our Jansen Stage 2 potash benefit of shareholders. investment in FY2024 (following approval of Jansen Stage 1 in FY2022) commodity For more information and asset on attractiveness, how we form refer our views to: on – the divestment of our Petroleum business in – – Spotlight: what it is Our and planning how we use range it on this page FY2022 to provide shareholders with further – Spotlight: Our 1.5°C scenario choice as to their exposure to oil and gas – consolidation of our coal portfolio to concentrate – what it is and how we use it on the next page on higher-quality (grade) coals through the processes, For more information refer to Enabling about our delivery capital – management How we divestment of our interest in BMC and Cerrejón manage capital on page 53 in FY2022 and divestment of the Blackwater and Daunia mines from our BHP Mitsubishi Alliance (BMA) joint venture in FY2024 – agreement with Lundin Mining Corporation to jointly acquire Filo Corp and form a 50:50 joint venture to develop an emerging copper district with world-class potential Prominent Hill in South Australia, which we – planned closure of our Mt Arthur Coal mine acquired in FY2023, produces one of the highest by FY2030 grades of copper concentrate in the world. 32

Scenarios Scenarios highlight different hypothetical pathways for the future and are not necessarily what we or others expect to happen. We use scenarios to explore different themes or end states to stress test business decisions and portfolio resilience. Among the scenarios we use are climate scenarios with lower global average temperature outcomes to assess climate-related transition risks as they imply a more rapid transition and therefore greater potential exposure to transition risk. This is in contrast to physical climate-related risk, which would be expected to be more pronounced in higher temperature outcomes. Our studies of physical climate-related risks at our operated assets include scenarios aligned to higher global average temperature outcomes to assess our potential exposure. For more information on the scenarios we are using in our physical climate-related risk studies, refer to Physical risk and adaptation – Our approach to physical climate-related risk on pages 43 and 44 1.5°C scenarios present a significant acceleration in efforts to reduce GHG emissions from what we see today, and therefore are considered among the most effective scenarios for testing potential impacts of climate-related transition risks. All 1.5°C scenarios require historically unprecedented global annual GHG emission reductions across all sectors, sustained for decades, to stay within a 1.5°C carbon budget (i.e. the total net amount of GHG emissions that can be emitted worldwide to limit global average temperature increase to 1.5°C by CY2100). Nonetheless, we include a 1.5°C scenario as one aspect of our analysis to inform our understanding of the potential impacts of an acceleration in global decarbonisation. We have used an internally developed 1.5°C scenario, benchmarked against external scenarios, to test the modelled impacts of potential pathways towards deep decarbonisation and the climate-related transition risks it would give rise to. For potential pathways to 1.5°C, refer to Additional information – Our 1.5°C scenario compared to benchmarks on page 62 There are limitations to scenario analysis, including any climate-related scenario analysis, and it is difficult to predict which, if any, of the scenarios might eventuate. Scenario analysis is not a forecast and is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eventuate. Our new 1.5°C scenario In FY2024, we developed a new 1.5°C scenario (which we refer to in this CTAP as ‘our 1.5°C scenario’) to reflect recent technology changes and efforts to reduce GHG emissions globally. We use this CTAP to present our new 1.5°C scenario for the first time and describe in detail the pathway it charts, recognising the level of shareholder and other stakeholder interest in the resilience of our portfolio should global ambitions be realised in the future. We believe it is unlikely this pathway will play out, because of current trends and global efforts to date to address climate change. Our 1.5°C scenario uses aggressive assumptions around political, technological and behavioural change, particularly for hard-to-abate sectors, such as steel. It is designed to specifically test our current portfolio following the changes to our portfolio since our previous 1.5°C scenario was developed in CY2020 and presented in the BHP Climate Change Report 2020 (which we refer to in this CTAP as ‘our CY2020 1.5°C scenario’). The assumptions used in our 1.5°C scenario result in an almost immediate impact to pricing for some commodities and carbon markets. Our 1.5°C scenario charts one of many potential pathways in which future GHG emissions are constrained within a carbon budget that is aligned to scenarios from the Intergovernmental Panel on Climate Change which limit global average temperature increase to 1.5°C by CY2100.21 In our 1.5°C scenario, there is a smaller carbon budget than in our CY2020 1.5°C scenario to reflect that GHG emissions have continued to grow over the last four years, requiring steeper GHG emission reductions to achieve net zero and to meet a 1.5°C temperature outcome. We do not see our 1.5°C scenario as being any more likely than our CY2020 1.5°C scenario. For the key metrics for our 1.5°C scenario and our CY2020 1.5°C scenario, together with other third-party 1.5°C scenarios, refer to Additional information – Our 1.5°C scenario compared to benchmarks on page 62 How we use our 1.5°C scenario We use our 1.5°C scenario in two distinct ways. First, we use it to derive commodity price sensitivities to assess potential impacts on portfolio value compared with our base case valuations using our planning range. We calculate the net present value for all assets and the overall portfolio using commodity prices and carbon prices from our 1.5°C scenario, and we then assess the impact of these prices on portfolio value relative to the base case of our planning range. All other inputs into this sensitivity test are derived from the base case of our planning range. The results of this analysis, as described on the next page, are presented to the ELT and the Board and provide insights about resilience against changing commodity and carbon prices to inform strategic decision-making (such as acquisitions or divestments to reposition our portfolio). Second, we consider our 1.5°C scenario as a sensitivity in capital allocation processes, which compares the demand outlook for our products in our planning range to that of a rapidly decarbonising global economy, should that eventuate. We use our 1.5°C scenario commodity and carbon prices as one of the stress tests to the assessment based on our planning range, to support investment decisions. Before developing our new 1.5°C scenario, we used our CY2020 1.5°C scenario in these two processes. We do not use our 1.5°C scenario: – for operational planning, which is based on our planning range – to inform how we plan to achieve our GHG emissions targets and goals – in the studies we are undertaking to assess physical climate-related risks Approaches to scenario analysis continue to evolve, with an increasing number of external scenarios becoming available as reference points for the full range of commodities we produce. Recognising this, and the increasing maturity of those external scenarios, in future years we plan to transition to the use of externallydeveloped 1.5°C scenarios, where appropriate, to derive commodity price sensitivities to inform resilience testing of our portfolio and to consider as a sensitivity in capital allocation processes. 1.5°C scenarios are inherently ambitious and currently have a low likelihood of eventuating, therefore we will be able to draw more useful insights from a broader range of 1.5°C scenario versions than only our own. For the key assumptions, carbon budget and carbon prices used in our 1.5°C scenario, refer to Additional information – Our 1.5°C scenario assumptions and the signposts we monitor on page 61 Figure 3.1: Global indicators in our planning range and our 1.5°C scenario20 Spotlight Our 1.5°C scenario – what it is and how we use it GDP growth CO2 emissions intensity CO2 emissions Our planning range Our 1.5°C scenario 100 400 0.1 0.2 500 900 Source: BHP analysis Cumulative economic output in the 30 years from CY2021 to CY2050 versus the previous 30 years, % Average tonnes of CO2 emissions per US$ of GDP, CY2021–CY2050 Cumulative CO2 emissions CY2021–CY2050, billion tonnes Additional policy, technology, behavioural changes and investment required to move from our planning range to our 1.5°C scenario’s CO2 emissions trajectory Operational Contents Introduction GHG emissions Physical risk and adaptation Equitable change and transition Climate policy advocacy Enabling delivery Additional information Value chain GHG emissions BHP Climate Transition Action Plan 2024 Portfolio 33

Resilience in our 1.5°C scenario Our portfolio remains resilient under our 1.5°C scenario. The net present value of our portfolio under our 1.5°C scenario is approximately the same as under the current base case of our planning range, indicating we would be resilient in an accelerated transition to this 1.5°C outcome, as described in this section and as shown in Figure 3.2. The impact of our 1.5°C scenario is different on each of our commodities. The value of our copper, potash and nickel assets increases relative to our base case, and offsets the effect to our portfolio from some downside risk to steelmaking coal. The base case of our planning range now incorporates a significant acceleration in the pace of renewable energy deployment and electrification of transport, which aligns with recent trends (relative to our planning range when we conducted scenario analysis in CY2020). The gap between demand for copper and nickel in our 1.5°C scenario and our base case has narrowed. This reflects the significant growth we have seen in these areas over the last four years. In order to test the resilience of our steelmaking commodities, we have assumed an aggressive decarbonisation pathway for the steel sector in our 1.5°C scenario, which sets a trajectory for the sector that we see as unlikely to occur at this pace. The pathway for the steel sector in our 1.5°C scenario is far from what we see unfolding today, and it diverges significantly from the base case of our planning range. It is important to note this assessment of our portfolio’s performance doesn’t account for changes that could be made or actions that could be taken if our 1.5°C scenario was to eventuate. This could include harnessing new opportunities or mitigating potential financial impacts. Our 1.5°C scenario results in a marginal decrease in the value of our iron ore assets and some loss of value in steelmaking coal relative to the base case of our planning range. Western Australia Nickel’s temporary suspension has not altered our scenario analysis, which includes nickel in our portfolio. The overall portfolio outcome indicated by our 1.5°C scenario is different to our portfolio analysis presented in the BHP Climate Change Report 2020. There was a larger increase in demand for copper, nickel, potash and iron ore between our CY2020 1.5°C scenario and the base case of our planning range at that time than there is between our 1.5°C scenario and the current base case of our planning range. Signposts for our 1.5°C scenario Based on current trends, it is unlikely our 1.5°C scenario will play out, however different elements of the scenario may be more or less likely. For our 1.5°C scenario to eventuate, it would require every sector of the economy to transform to net zero or net negative or, in the case of hard-toabate sectors, to otherwise deeply decarbonise22 by CY2050. In some sectors, such as power and light duty transport, there are one or more clear pathways for such a transition, albeit challenging ones. However, some hard-to-abate sectors, such as the steel sector, require much larger technological, political and behavioural shifts from today’s settings to achieve this end state. We see two important factors influencing likelihood: 1. The electrification megatrend is well underway, which we expect to lead to upside demand for copper, nickel and uranium in our portfolio. 2. The global steel sector, like many hard-to-abate sectors, is not currently seeing the investment, policy settings or technological progress needed to align with a 1.5°C trajectory. Based on these trends, we believe the modelled outcome for our iron ore and steelmaking coal portfolio is unlikely to occur. We remain aware of non-linear transition risks that could impact commodity markets. We regularly monitor signposts related to decarbonisation and the energy transition and incorporate them into our annual planning processes and asset strategies. For more information about the key signposts that we monitor, refer to Additional information – Our 1.5°C scenario assumptions and the signposts we monitor on page 61 Figure 3.2: Our diversified portfolio in our 1.5°C scenario Net present value of our 1.5°C scenario versus our planning range base case i. Uranium included under Copper. ii. Other includes legacy assets and corporate overheads. Source: BHP analysis Upside Downside Note: Analysis reflects a price-only sensitivity using the commodity and carbon price outlooks from our 1.5ºC scenario. It assumes that all other factors in the asset valuations, such as production and sales volumes, capital and operating expenditures, remain unchanged from those used in the base case of our planning range as disclosed in the BHP Annual Report 2024 Financial Statements. Base case of our planning range Copperi Potash Nickel Iron ore Coal Otherii Our 1.5°C scenario Figure 3.3: Commodity cumulative demand over the 30 years from CY2021 to CY2050 compared to the 30 years preceding that period Demand change (100 per cent = cumulative demand from CY1990 to CY2019) 100% 200% 300% 400% 500% 0% i. Iron ore and steelmaking coal demand accounts for contestable market = global seaborne market plus Chinese domestic demand. ii. Nickel and copper demand references metal derived directly from ore rather than scrap. Steel Iron orei Steelmaking coali Primary nickelii Primary copperii Uranium Potash Our planning range Our 1.5°C scenario Source: BHP analysis Operational Contents Introduction GHG emissions Physical risk and adaptation Equitable change and transition Climate policy advocacy Enabling delivery Additional information Value chain GHG emissions BHP Climate Transition Action Plan 2024 Portfolio 34

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Copper, nickel, uranium and potash in our 1.5°C scenario Powerandelectrification Copper Figure 3.4: Global light duty electric vehicle sales penetration in our 1.5°C scenario In transport, battery cost reductions and policy support Penetration (%) lead to rapid penetration of electric vehicles, as shown Copper demand grows rapidly due to strong in Figure 3.4. Electricity is also vital for producing renewable electricity uptake, the expansion of low to zero GHG emissions electrolytic hydrogen 100% and ammonia for use in hard-to-abate sectors. electricity networks and electrification of transport, Our 1.5°C scenario as shown in Figure 3.5. Our 1.5°C scenario sees power demand triple Our 1.5°C scenario sees cumulative total copper between CY2021 and CY2050 driven by the consumption (primary and recycled) increase large-scale trend towards electrification. 2.1 times and cumulative copper (primary) demand Demand for the metals needed to build power increase 1.9 times over the 30 years from CY2021 50% generation, storage and infrastructure grows as a result to CY2050 compared to the 30 years preceding Our planning range of this electrification megatrend in our 1.5°C scenario. that period. The scenario assumes most governments ban This increase in demand for copper flows through new coal-fired power in the mid-2020s and force to higher valuations of our copper assets and all unabated fossil power generation offline two growth options. decades later. Extraordinary growth in renewable energy and efficient storage capacity is required Our 1.5°C scenario sees healthy growth of copper- 0% to displace retiring plants and meet rapidly growing intensive energy transition technologies. Wind and CY2021 CY2030 CY2040 CY2050 electricity demand. Large transmission infrastructure solar facilities are more copper-intensive than fossil upgrades, growing consumer demand and zero GHG power generation. Electric vehicles require about emission dispatchable power are required for last-mile three times as much copper as internal combustion Figure 3.5: Copper’s energy transition demand adds upside in our 1.5°C scenario decarbonisation of the power grid. Vast electricity engine vehicles. With all countries looking to electrify Copper demand (thousand tonnes copper contained) networks must also be enhanced and expanded to simultaneously in our 1.5°C scenario, this leads to an connect dispersed renewable electricity supply and unprecedented upswing in demand. 70,000 demand centres. transition Energy Scrap availability remains constrained, particularly There is an increase in the recycling of metals, in developing countries, even after assuming much demand but the limited availability of scrap metals means higher recovery and collection rates than today. it only slightly dampens demand growth in our 1.5°C scenario. Scrap is particularly limited in The current pipeline of copper supply projects developing economies as there is not a large is unlikely to be able to meet the rapidly growing Energy pool of existing stock to draw from. demand in our 1.5°C scenario. This creates risks for transition demand a supply shortfall in the latter half of the 2020s, which Our portfolio of copper, nickel and could lead to prices rising materially above the cost curve. Our 1.5°C scenario assumes the dynamics in uranium is positioned to benefit this period prompt manufacturers to thrift copper use Non-energy Non-energy from megatrends of population where feasible (e.g. by using thinner foil in electric transition transition vehicle batteries) and to look for opportunities for demand demand growth, urbanisation and rising substitution (e.g. replacing copper with aluminium cables or wires). Nevertheless, substitution and living standards. In our 1.5°C 0 product redesign have proven to be relatively CY2021 Traditional Data centres Electric vehicles Power generation Grids and charging CY2050 scenario, the demand for these slow-moving trends. We would expect this to create growth leversi and storage infrastructure commodities increases even further risks to the overall energy transition during this Non-energy transition demand Energy transition demand period. In time, the ramp up of new projects, higher i. Includes copper demand growth from buildings, consumer durables, electronics, machinery and non-electrified vehicles. due to the scale of electrification scrap collection and recovery rates, and new mining Source: BHP analysis technologies such as sulphide leaching, would help that would be required. to alleviate potential shortfalls. 35

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Copper, nickel, uranium and potash in our 1.5°C scenario continued Nickel Uranium Potash Higher demand is assumed to In our 1.5°C scenario, nickel demand grows Nuclear power plays a stronger role in our 1.5°C The value of potash in our portfolio would increase translate to higher potash prices strongly in the late CY2020s and into the CY2030s scenario than the base case of our planning range, in our 1.5°C scenario, with demand modelled to and therefore higher valuation due to the penetration of electric vehicles in the especially to enable last-mile decarbonisation in rise above our planning range. This is driven by for our Jansen asset in our automotive sector. renewables-heavy power grids, although construction increasing competition for land and the need for 1.5°C scenario. of new conventional and small modular reactors agricultural productivity. Our 1.5°C scenario sees cumulative primary nickel remains a relatively expensive generation option demand increase 3.7 times over the 30 years from Potash is used in fertilisers to enable more efficient Potash mining and processing also has a more with currently comparatively long lead times. CY2021 to CY2050 compared to the 30 years and sustainable farming. The need to further improve favourable upstream environmental footprint preceding that period. Our 1.5°C scenario sees uranium demand productivity yields in our 1.5°C scenario adds upside among the major fertiliser nutrients. Beyond the In July 2024, we announced our Nickel West increase 2.3 times over the 30 years from CY2021 to the outlook in the base case of our planning range. mine gate, potash does not generate some of the operations and West Musgrave project (Western to CY2050 compared to the 30 years preceding With the world’s population continuing to grow and negative environmental impacts (e.g. leaching into Australia Nickel) would be temporarily suspended that period. rising concerns around food security and competition and polluting waterways and the release of GHG from October 2024. Over the longer-term, our 1.5°C for land use, potash demand could rise significantly. emissions in the application process) that are Land use for agriculture An intensification of farming in our 1.5°C scenario associated with excessive application of nitrogen, scenario and the base case of our planning range see and to a lesser extent, phosphorus fertilisers. nickel demand growing in response to the transition. means the uptake of natural potassium in the soil In our 1.5°C scenario, greater demand for food, fibre, However, the decision to temporarily suspend is higher and therefore needs to be more regularly biofuels and land for afforestation over the years to operations follows oversupply in the global nickel replenished in the form of potash fertiliser. market. At the time of our announcement, forward CY2050 requires the world to increase crop production consensus nickel prices over the next half of the with less agricultural land. The need to improve Our 1.5°C scenario sees potash demand increase decade had fallen sharply reflecting strong growth of agricultural productivity is increased due to the higher 2.3 times over the 30 years from CY2021 to alternative low-cost nickel supply. land competition associated with building out a large- CY2050 compared to the 30 years preceding scale distributed renewables power network, bioenergy that period. infrastructure, as well as afforestation of CO2 removals. Potash production at Jansen is expected to start in late CY2026 36

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Steelmaking, iron ore and steelmaking coal in our 1.5°C scenario Steelmaking Four major technology options drive the scenario’s Figure 3.6: Global steelmaking GHG emissions outlook and key reduction levers in our 1.5ºC scenario technological GHG emission reductions: While overall steel demand grows, iron ore demand is GHG emissions (MtCO ) slightly reduced by the increased use of scrap metal 2 1. Blast furnace – basic oxygen furnace route instead of iron ore. with carbon capture, utilisation and storage Demand (CCUS) and powered by low to zero GHG increase Our 1.5°C scenario sees cumulative steel demand emissions electricity, which is a modification increase 1.8 times over the 30 years from CY2021 of the incumbent technology 4,000 to CY2050 compared to the 30 years preceding that period. 2. Hydrogen-based, direct reduced iron – electric arc furnace route, which is mature but less flexible, with low to zero GHG emissions hydrogen Scrap Our 1.5°C scenario incorporates and direct and low to zero GHG emissions electricity reduced policies and technological iron Low to Better 3. Hydrogen-based, direct reduced iron – electric zero GHG quality smelting furnace route, which is an emerging emission Process advances in the steel sector that raw alternative, with low to zero GHG emissions power optimisation could challenge our steelmaking materials hydrogen and renewable electricity Blast commodities, although these 4. Electrolysis route powered by low to zero Lower carbon furnace GHG emissions electricity, which is relatively fuel in blast modification are unlikely to occur at the pace furnace early-stage and CCUS Hydrogen direct assumed in our 1.5°C scenario. For more information about near zero emissions reduced iron steelmaking process routes, refer to Value chain and electrolysis 0 In particular, it assumes: GHG industry emissions pathways – Steelmaking: on pages 22 and Longer-term 23 CY2020 CY2050 – countries and regions increase scrap collection Source: BHP analysis The likelihood and timing of the technology roll-out – the steel sector progresses or accelerates a vary by region and are influenced by factors, including: number of currently challenging, evolving or early-stage steel decarbonisation technologies – availability of scrap, lower carbon feedstock (e.g. low to zero GHG emission hydrogen and – governments enact top-down policies that bioenergy) and CO2 emissions storage constrain investment in new and re-lined blast – age of existing steelmaking facilities furnaces and the continued operations of existing steel mills – access to a consistent supply of low to zero These measures are in addition to carbon pricing GHG emissions electricity – levels of policy support significantly ramping up in all regions, compared to – levels of investment today’s levels. – regions’ dependence on export markets In our 1.5°C scenario, the maturation of near zero – continued demand for affordable steel emissions steelmaking technologies from research stage to adoption is significantly faster than has been typically seen in the steel sector. Our 1.5°C scenario also considers the different age and size of the existing steelmaking stock in different regions in determining the potential pace of change. 37

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Steelmaking, iron ore and steelmaking coal in our 1.5°C scenario continued Iron ore Figure 3.7: Primary iron and scrap use in steelmaking and primary iron making in our 1.5°C scenario Iron ore demand is slightly reduced by the increased Primary iron and scrap use (million tonnes) use of scrap metal instead of iron ore in our 1.5°C China 100% scenario. This is partially offset by an increase in 2,500 50% demand due to higher overall steel demand. Our 1.5°C scenario sees cumulative iron ore 0% Scrap demand increase 1.6 times over the 30 years from 2,000 India and other 100% CY2021 to CY2050 compared to the 30 years emerging Asia preceding that period. 50% 1,500 The roll-out of hydrogen-based direct reduced iron Electrolysis 0% from the mid-2030s has a negligible impact on total electric Direct reduced arc furnace iron seaborne iron ore demand as this technology still Developed 100% requires primary ore. However, higher deployment of 1,000 Direct reduced iron Asia electric smelting furnace 50% electric arc furnace steelmaking increases demand for higher quality ores, which reduces the value-in-use of 0% comparatively lower grades (including Australian iron 500 Modified blast furnace with CCUSi ores). This effect is dampened by the assumed uptake European 100% Union of the electric smelting furnace in Asia, which is a key Blast furnacei 50% market for Australian iron ores today. 0 i. Includes output from conventional blast CY2015 CY2020 CY2025 CY2030 CY2035 CY2040 CY2045 CY2050 furnace, modified blast furnaces and smelting 0% Our 1.5°C scenario results in a marginal decrease in reduction routes. Also includes a small amount 2020 2030 2040 2050 Source: BHP analysis of unconventional coal and charcoal smelting. the value of our iron ore assets relative to the base case of our planning range. Demand for our iron ore is resilient in our 1.5°C scenario, but the spread in prices between different Steelmaking coal emission reductions. Because of these factors, Steelmaking coal continues to be an attractive ore grades widens due to demand for ore suitable higher-quality (grade) steelmaking coal, like what we commodity for us over the next several decades. for use in direct reduced iron electric arc furnaces. produce at BMA, will be the most resilient given the In our 1.5°C scenario, demand for steelmaking coal Demand for steelmaking coal could decline in the Any potential discount for lower grade ores could be lower associated GHG emissions of steelmaking coal peaks in the late CY2020s followed by a modest future depending on the pathways taken by the partially offset by premiums for low impurity iron ore during use. decline over the following decade. The blast furnace steel sector, however we are not yet seeing signals fines and direct charge materials (i.e. materials that The near- to medium-term demand resilience of the decarbonisation needed to align with our equipped with CCUS, which requires steelmaking can be fed directly into furnaces without significant means that cumulative seaborne steelmaking coal 1.5°C scenario. coal, remains an important route for steel production processing, such as iron ore lump that we produce) demand in our 1.5°C scenario is only marginally out to CY2050. for use in blast furnaces, as steel mills look to improve lower to the base case of our planning range until For pathways our view for on steelmaking, more likely as longer-term well as our industry medium-term efficiency and reduce GHG emissions. Our 1.5°C scenario sees cumulative the mid-2030s. However, the assumed rapid roll- goal, strategy and actions to support the reduction of steelmaking coal demand increase 1.25 times over out of hydrogen-based direct reduced iron begins GHG emissions intensity from steelmaking in our value Significant technical and commercial progress is chain, refer to: required to move towards the technological end state the 30 years from CY2021 to CY2050 compared to to erode steelmaking coal demand thereafter. By the 30 years preceding that period. CY2050, approximately half of all global primary iron – Value chain GHG emissions – Steelmaking: assumed by our 1.5°C scenario. In CY2023, only 3 Longer-term industry pathways on pages 22 to 4 per cent of global seaborne iron ore supply met production no longer requires steelmaking coal under and 23 Higher carbon pricing leads to a growing preference our 1.5°C scenario. the specifications currently accepted in the market for higher-quality hard steelmaking coal by remaining – Scope Value chain 3 emissions GHG emissions goal to support – Steelmaking: capability Our for for production of direct reduced iron for electric blast furnaces to reduce GHG emissions intensity. GHG emissions intensity reduction on pages 24 arc furnaces.9 Even when using higher-grade ores, High-strength coke made from higher-quality hard While there is some loss of and 25 electric arc furnaces are currently unsuitable for steelmaking coal is essential to improving energy value in steelmaking coal in our producing the best grades of steel (e.g. auto sheets efficiency for large-sized blast furnaces in the initial 1.5°C scenario, the outlook for for car manufacture). If lower grade ores are used, ‘optimisation’ stage of decarbonisation. It also today’s processes are inefficient, and generate large enables lower carbon fuels (including hydrogen steelmaking coal in the base case of volumes of operational GHG emissions (primarily injection) to displace lower-quality steelmaking coal from fossil fuel power and the use of fossil carbon as mills enter the ‘transition’ stage of steeper GHG our planning range remains robust. reductants) and larger amounts of mine waste. 38

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Climate policy advocacy We are committed to the progress of climate policies aligned to the long-term goals of the Paris Agreement in areas where we believe we have the greatest ability to influence change: our policy engagements, our advocacy with governments and our advocacy within our material industry association memberships. Our approach to policy advocacy Our recent and planned policy engagements Our Group Sustainability and Social Value Officer, Dr Fiona Wild, discussing the ‘Net Zero Energy Speedway’ at the Responsible Investment Association Australasia conference 39

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our approach to policy advocacy Governments have a central role How we focus our advocacy efforts Governance and oversight 4. Direct advocacy disclosure: We believe governments have a vital role to play in addressing to play in responding to climate The global climate policy environment is The Board approves significant social, community climate change. We advocate in support of continually evolving. and sustainability policies, including those related change. Engaging constructively proposed climate policies that are aligned with to climate change and public sustainability goals We focus our advocacy efforts on areas where we our Climate Policy Principles, where relevant to and targets. In FY2023, the Board approved our with governments on climate have the greatest ability to influence positive change. our operations and strategy. Each quarter, we Climate Policy Principles and Industry Association disclose on our website our direct advocacy on policy is an important way we can In addition to our Climate Policy Principles, we Review 2023. Management, primarily our Chief Legal, climate policy, including how this advocacy is typically consider three factors in determining which Governance and External Affairs Officer, President help the world decarbonise and aligned with our Climate Policy Principles. climate policy issues to engage on and how to do so: Minerals Australia, President Minerals America, build resilience to the impacts of Group Sustainability and Social Value Officer and Our Associations, Principles as for well Participating as our current in Industry industry 1. The relevance of the issue, taking into account Group Corporate Affairs and Communications Officer, climate change. association memberships, latest Industry our previous advocacy efforts, the extent of the oversees the day-to-day implementation of our Association Review, progress to address any areas connection between the issue and our business climate policy engagement approach and practices. of misalignment and any results from our ‘real time’ We believe governments around the world should monitoring are available at bhp.com/about/operating-or industry, and the views of our stakeholders. adopt and progress policies aligned with the goals of We maintain four processes to assist stakeholder ethically/industry-associations the Paris Agreement to limit the increase in the global 2. The materiality of the issue, in terms of how it visibility and understanding of our climate policy Our latest disclosures on our direct advocacy on average temperature by CY2100 to well below 2°C could contribute to achieving the goals of the Paris engagement approach and practices: climate climate-change/advocacy-on-climate-policy policy are available at bhp.com/sustainability/ above pre-industrial levels and pursue efforts to limit Agreement and its potential implications for our 1. Industry association review (IAR): Every two the increase to 1.5°C. We commit to conducting our strategy or operations. years, we undertake a comprehensive review Key actions climate policy advocacy consistent with these goals 3. Ourabilitytoinfluencepolicydiscussions of the alignment between the advocacy of our in our direct advocacy and our indirect advocacy. on the issue, which will largely be driven by the material association memberships and our Climate – Engage with the Australian Government on its Our Climate Policy Principles show how we intend degree of relevance of the issue to us, the strength proposed sectoral decarbonisation pathways and Policy Principles. Where we identify misalignment, Nationally Determined Contribution for CY2024. this commitment to be translated into action. They of our stakeholder relationships, and the extent to which may be material or non-material, we represent our views on how governments can best which we share a similar view on the issue with This will support us in determining any synergies take steps consistent with our Principles for and impacts to our projected (to FY2030) and pursue the goals of the Paris Agreement, with a focus other relevant companies. Participating in Industry Associations. We on policymaking principles and policy outcomes. We potential (beyond FY2030) pathways to our Our industry association memberships also play an publish the findings and outcomes of our IARs operational GHG emissions (Scopes 1 and 2 use our Climate Policy Principles to inform and guide important role in our engagement approach. They on our website. In the intervening years, we our own advocacy (our ‘direct advocacy’) and to seek to emissions from our operated assets) long-term provide an avenue for us to help influence industry have committed to publish an update on the net zero goal influence the advocacy of the industry associations of views on climate policy issues and allow us to progress we have made in addressing areas which we are a member (our ‘indirect advocacy’). extend and augment our own advocacy efforts (e.g. of misalignment from the prior review and any by undertaking policy monitoring, commissioning relevant findings from our real time monitoring. Our bhp. latest com/sustainability/climate-change/advocacy-on- Climate Policy Principles are available at research, and engaging with governments on climate-policy 2. Real time monitoring: We monitor the advocacy behalf of members). We believe these associations of our material23 association memberships (as perform a number of functions that can lead to better represented on their websites and in the media). outcomes on public policy, practice and standards. We are committed to disclose on our website if we We expect these associations to act with integrity, be identify advocacy that is materially misaligned with constructive in their engagements with governments our Climate Policy Principles. and stakeholders and reflect the consensus views and positions of their members. 3. Membership disclosure: Every year, we disclose Our approach to policy advocacy has been informed the industry associations of which we are a by our regular engagement with investors and member on our website. We categorise all our other stakeholders. memberships in terms of their materiality, broad purpose and location. For our material association memberships, we separately provide information We engage on a wide and varying range of policy and regulatory issues in line with the principles and on our base membership fees and the highest factors engagements, outlined refer here. to For Our more recent information and planned on these policy governance role we play in the association. engagements on the next page 40

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our recent and planned policy engagements Our recent engagements on climate policy24 The Australian Government’s reform of the International and national policy approaches Theintroductionofnewclimate-relatedfinancialreporting Safeguard Mechanism to critical minerals requirements in Australia and the United States Our position Our position Our position We supported the objective of the Government to align the Safeguard Mechanism with We have highlighted the importance of mining to the energy transition, and the We have supported the objectives of the International Sustainability Standards Board Australia’s national GHG emission reduction targets. We made proposals during the policy settings that will allow countries to unlock new supplies of minerals like (ISSB), the Australian Government and the United States Securities and Exchange consultation process aimed at enhancing the new Safeguard Mechanism and Australia’s copper and nickel. Commission (US SEC) to introduce new corporate reporting requirements that meet general approach to emissions reduction. investor demands for consistent, comparable, and decision-useful information. We Our activities have advocated for international alignment across these standards. Our activities – We have released a thought leadership piece on the changes we believe are – We have engaged directly with the Government on the reforms (including by making necessary in Australia, made a number of submissions (including in relation to Our activities two submissions, participating in industry roundtables, and sharing our views with Australia’s Critical Minerals Strategy, the Australian Federal Budget, and the Biden – We have made submissions to the ISSB, the Australian Accounting Standards Board, senior decision makers) Administration’s proposed mining law reform), and supported the advocacy of bodies the Australian Government and the US SEC – We reviewed and commented, where relevant, on the submissions developed by like the Minerals Council of Australia – We reviewed and commented, where relevant, on the submissions developed by the the Minerals Council of Australia and the Business Council of Australia – Our ELT has given numerous speeches on the issue Minerals Council of Australia and the Business Council of Australia Issue status Issue status Issue status – The Government secured parliamentary support for its reforms, and the new – While there is wide acceptance among governments of the need to accelerate supply – In March 2024, the US SEC adopted a rule setting out climate-related disclosure Safeguard Mechanism commenced in July 2023 of battery and other critical/strategic minerals, work is still needed to ensure policy requirements for SEC-reporting companies, including foreign private issuers, such – We continue to engage in a number of processes associated with the reforms, settings are best aligned with government ambitions as BHP. However, following a number of legal challenges, the SEC voluntarily including the Government’s Carbon Leakage Review – We continue to advocate in international and national forums on this issue stayed implementation of the Rule pending completion of the judicial review of consolidated challenges – The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 to introduce a new climate-related financial disclosure regime is expected to pass into law in Australia in the near term Our planned climate policy engagements to support our CTAP The current and proposed decarbonisation approaches of governments and climate resilience The use of ESG-related performance standards initiatives in our core operating jurisdictions of Australia, Canada and Chile to support global decarbonisation efforts Our direct activities Our direct activities Participating in government consultation processes and sharing our views in public forums, where relevant. Participating in government consultation processes and sharing our views in public forums, where relevant, to advocate for design and implementation of standardised, internationally-aligned requirements for climate-related disclosures. Our indirect activities – Helping to shape the positions adopted by industry associations of which we are a member Our indirect activities – Working with other member companies to evolve and advance the initial three-year Climate Action Plan of the Minerals Council – Engaging with civil society and other stakeholders, and helping to shape the positions adopted by industry associations of which we of Australia are a member – Working with civil society and other industry stakeholders to design and implement a program aimed at strengthening the climate resilience of communities near our operations in Chile, including engagement with relevant communal and regional authorities Expected principal contribution – Providing a mining and multinational company view on the practicality and likely effectiveness of current and proposed standards Expected principal contribution – Providing an industry view on decarbonisation pathways should help ensure relevant policy frameworks are as effective and efficient as possible – Knowledge sharing to maximise the effectiveness of adaptation measures to contribute to the knowledge bank available to build broad-based climate resilience in society 41

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Physical risk and adaptation We are continuing our studies to assess physical climate-related risks to inform potential adaptation responses designed to prioritise safety and maintain productivity of our operations. Our approach to physical climate-related risk Our management of physical climate-related risk Case study: Fostering community climate resilience in Northern Chile Our WAIO asset is located in the Pilbara, which has historically been subject to extreme climate conditions 42

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our approach to physical climate-related risk As the world is already Operated assets The climate dataset includes a baseline (CY2001 Figure 5.1: Our approach to physical to CY2020) and projections for three future experiencing the impacts of a Our approach to evaluating our operational physical climate-related risk time horizons (CY2026 to CY2045, CY2046 to climate-related risks is illustrated in Figure 5.1. changing climate, we must test CY2065, CY2066 to CY2085) for the following For many years, we have managed weather-related Intergovernmental Panel on Climate Change our resilience and be prepared risks through our Risk Framework and business SSP-based GHG emission scenarios:25 Climate data projections: Use of climate planning routines, including through the use of historical data and projections for different scenarios to adapt to enable the ongoing – Low-case: Estimated average global temperature and time horizons data (e.g. allowances for weather-related downtime increase of 1.8°C by CY2100 (SSP1-2.6) safety and productivity of our in production planning and designing and upgrading operations and the dependability infrastructure to improve weather-related resilience). – Mid-case: Estimated average global temperature To enhance our risk management approach, we are increase of 2.7°C by CY2100 (SSP2-4.5) Operational site impacts: Engineering of our value chain. also drawing on a range of forward-looking scenarios. assessments to understand the potential – High-case: Estimated average global temperature direct impact of climate-related events on For supports more our information approach on to how physical our Risk climate-related Framework increase of 4.4°C by CY2100 (SSP5-8.5) our sites Risks risk, refer to Enabling delivery – How we manage Our studies of physical climate-related risks are A changing climate can exacerbate and create climate-related risk (threats and opportunities) on page 52 considering at least two of these scenarios for each physical climate-related risks, which include: of the potentially relevant climate-related hazard Safety, productivity and cost impacts: – Acute physical climate-related risks: Climate modelling given the range of uncertainty inherent in climate Applying internal models to assess potential Extreme climatic events, such as floods, cyclones We commissioned WTW (one of our insurance modelling and the divergence of scenarios particularly impacts to safety, cost and productivity and heatwaves, that may be more severe or more advisors) to develop a climate dataset covering our later in the century. frequent because of a changing climate operated assets and some key value chain locations, Our planning range (i.e. our long-term view on – Chronic physical climate-related risks: The to develop a more holistic understanding of the demand, supply and price across our commodities) Financial impacts and value-at-risk: incremental worsening of conditions, such as the potential parameters of our physical climate-related that we use for operational planning implies a Incorporating assessment results into gradual increase in the number of extreme heat risk exposure and how it may change over time. projected global average temperature increase internal planning models to understand days over the years, or rising sea levels This climate dataset is based on the publicly available of around 2°C by CY2100. Our studies of physical potential financial impacts and value-at-risk Shared Socioeconomic Pathways (SSP) scenarios climate-related risks are using a set of scenarios The mining sector is exposed to both acute and that are different to the scenarios we use to test the chronic physical climate-related risks because used by the Intergovernmental Panel on Climate Change, and includes latest generation (Coupled resilience of our portfolio against climate-related Incorporating into business planning, of its remote outdoor operations with labour and transition risks (including our 1.5°C scenario). This physical capital exposed to the elements, and Model Intercomparison Project Phase 6 (CMIP6)) risk management and capital allocation: and CMIP5 climate models, applied to our operated is due to higher temperature outcomes usually being Embedding consideration of physical because of its dependency on global value chains. associated with greater physical climate-related risks. The long lives of mining assets mean they could assets. The dataset covers more than 20 climate- climate-related risk (including value-at-risk) related hazards potentially relevant to our global The scenarios we are considering in our studies of into business planning, risk management, encounter deteriorating conditions in later decades. physical climate-related risks are intended to help Geographically dispersed sites and value chains operations, such as average temperature, extreme and capital allocation, as required precipitation, and cyclones, which can represent inform a risk-based approach rather than reflect any increase the diversity of physical climate-related view on future climate outcomes. impacts we could encounter. physical climate-related risks. Alongside this, we apply local observational climate data and other For more information on our planning range, our 1.5°C sources of climate projections. This approach allows scenario and how we test the resilience of our portfolio, Assessment us to develop a localised view of potential impacts, refer to the Portfolio section on pages 31 to 38 We are undertaking studies to assess our exposure including changes in rainfall patterns, average and to physical climate-related risks that draw on science- maximum temperatures and sea level rise. based climate data (as discussed later on this page). We are working to complete these studies and continue verification and review of results in FY2025. 43

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our approach to physical climate-related risk continued Assessment continued Value chain Table 5.1: Potential physical climate-related risks at our operated assets and in their value chains Riskquantificationstudies We are also in the process of conducting value We are undertaking our studies of physical chain-specific assessments to deepen our Potential productivity or operating cost understanding of how physical climate-related Climate hazard Potential operational site impacts impacts(forquantification) climate-related risks to progressively identify, risks may impact certain existing upstream and assess and quantify the potential future impacts to downstream risks. Our value chain assessments are Inundation of mines and/or key production – Production disruption site operations, productivity and estimated cost for using climate data to estimate potential downtime due infrastructure – Pumping and repair costs our operated assets. to key climate-related hazards, both on an average Disruption and/or damage to water supply – Production disruption The first stage of our analysis looks at our operated annual basis and for certain extreme events. Extreme precipitation infrastructure – Repair costs assets that are currently producing (excluding We have also undertaken a preliminary assessment of and/orflooding Exacerbation of tailings storage facility – Production disruption NSWEC and former OZ Minerals sites) and our compound risk, whereby multiple climate hazards could failure risk – Repair costs Jansen potash project. We plan to include currently result in greater impact than the component individual producing former OZ Minerals sites and to expand events, or impacts could accumulate along the value and adapt our approach to incorporate our legacy chain. Potential opportunities to progress include: assets and NSWEC in FY2025. Disruption and/or damage to port and – Production disruption – Reviewing related business continuity plans to coastal infrastructure and operations – Repair costs Our studies are focusing on the climate scenario with identify whether there may be over-reliance on Coastal hazards (including higher sea the most significant potential impacts for the identified levels, cyclones, storm surge and changes a few alternative suppliers or locations climate hazards (generally the high-case) and the in marine ecosystems) scenario that most closely aligns to the world’s current – Exploring how we can encourage greater GHG emissions trajectory (the mid-case).26 In certain resilience in our value chain through engagement circumstances, the low-case has also been assessed with suppliers and enhancements to procurement Disruption and/or damage to electrical – Production disruption and contractual processes. infrastructure – Repair and additional maintenance costs where it has the most significant potential impact (e.g. for certain extreme rainfall events at our Minerals Extreme temperatures We are incorporating outputs of our value chain Americas operations due to the complexities of assessments into routine annual risk evaluations, climate modelling). Our studies, will support ongoing as applicable, to determine if additional controls evaluation and maturation of our approach. (including adaptation measures) are needed. Water shortages for operational activities – Production disruption Table 5.1 shows the physical climate-related risks Changes in rainfall, temperature that our studies to date indicate could have potential Community and/or evaporation patterns impact for our operated assets (including via impacts 27 Adaptation measures that we may implement can in our value chain). – Production disruption have broader social value benefits but need to be Workforce health and safety incidents – Additional rostering costs designed to avoid or minimise maladaptation risks. We are aiming to build our capability for future Disruption in the supply of critical engagement with the communities where we operate Extreme weather events (including – Production disruption production inputs, and access to supply on the topic of climate resilience. extreme heat, extreme precipitation – Logistics disruption chain infrastructure We acknowledge the importance of an inclusive and and/or flooding, cyclones) equitable approach to community adaptation that seeks to incorporate Indigenous and local knowledge. community For a case study climate of adaptation a social investment-funded project that prioritised the incorporation Case study: Fostering of Indigenous community and local climate knowledge, resilience refer to in Northern Chile on the next page 44

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our management of physical climate-related risk Case study Fostering community climate resilience in Northern Chile Risk controls and potential We also maintain value chain-related contingency Key actions adaptation measures plans, which cover how we would respond to As we build further upon our knowledge base and In the Tarapacá region of Chile we are supporting various scenarios that could impact our access capability with respect to physical climate-related community climate adaptation through an initiative We have a range of existing controls in place to key markets, including physical disruptions called Kuskalla (“Together” in Quechua), funded for extreme weather-related risks. risks, our risk quantification studies will evolve and to outbound logistics. we will continue to refine how to assess, manage by our voluntary social investment. The project has These controls are designed to prioritise safety and monitor these risks. been co-developed with local communities, drawing Completion of our risk quantification studies for our on local knowledge to identify potential innovative at our operating sites, including weather detection operated assets will enable us to identify and design, Once the results of the risk quantification studies technological and infrastructure responses that monitoring, associated weather preparation, support or influence adaptation responses additional for our operated assets are completed, we propose could support resilience to the impacts of a changing emergency management plans and personnel to existing controls, where appropriate. to use the results to: climate through improved water and energy security. trained in emergency response. Adaptation measures may include steps designed – inform updates to our risk profile, including This includes the following initiatives in the We are also committed to conforming with the Global to maintain asset integrity, safe and productive new risk management activities communities of Mamiña, Iquiuca and Macaya: Industry Standard on Tailings Management, including operations and value chain resilience. Through our its climate-related requirements. studies of climate-related risks we aim to identify – inform corporate planning – Energy: Installation of a solar microgrid (Mamiña) To guard against potential equipment failure or opportunities to continue to protect value and enable – identify areas where we should focus our and solar photovoltaic system (Iquiuca) inefficiencies we: growth, such as those shown in Table 5.2. assessment of new or strengthened controls or adaptation responses – Water: Development of a water monitoring – aim to operate equipment in accordance with For more information on how we manage water system supporting improved agricultural water industry best practice and tailings-related risks, including those that are management (Iquiuca and Macaya) climate-related, refer to the Sustainability section of our – assess the financial and social value website, available at bhp.com/sustainability of adaptation measures – Waste: Waste management pilot producing – have robust inspection and maintenance routines – hold inventory of critical spares based on our bio-fertilisers for local use from organic waste risk appetite (Mamiña) – undertake contingency planning Kuskalla has been implemented by a multidisciplinary consortium comprising EBP Chile, SER Patrimonio, The Sustainable Minerals Institute at the University of Queensland and Power Ledger. Table 5.2: Examples of potential adaptation responses that could help to protect value and enable growth Kuskalla is one of three projects selected for social investment support through Súmate, BHP and Acute physical climate-related risks Chronic physical climate-related risks Fundación Chile that sought to identify projects to help communities in Tarapacá and Antofagasta adapt Supply chain resilience: to the impacts of a changing climate. The other two Improved safety for our people and communities: – ports resilient to sea-level rise projects include: Protect value: – enhanced bushfire risk management – geographically diverse suppliers – Risk mitigation and prevention Reduced outage time: – larger inventory and stockpiles – Proyecto PURI, which is installing grey water – Maintain productivity – increased pumping capacity in pits Mitigate business interruption: recycling technology in a kindergarten and social – higher capacity spillways – extreme heat resilient rail and runways housing in Antofagasta, in order to irrigate and – increased raw water storage improve access to green spaces Enhanced capital planning: – AcuyMinAgro, which aims to support fishing – tailored sustaining capital expenditure plans Optimising returns on capital: communities in the Antofagasta region, through – more resilient mine plans – adjusted truck scheduling in wet conditions to maximise productivity the development of aquaculture facilities in marine Increased reliability of critical infrastructure: – climate informed predictive maintenance routines Enable growth: management areas – power grid – Continuous improvement Talent attraction: – rail and roads All projects prioritise involvement of the local – Competitive advantage – extreme heat resilient accommodation for fly-in fly-out workers – ecosystem-based adaptation measures to reduce flood risk with environmental co-benefits community in their design and implementation Social value: Insuranceportfolioefficiency: to support appropriateness and sustainability – community initiatives on shared risks – targeted controls to preserve/optimise cover of the solutions. – deeper coverage for named risks 45

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Equitable change and transition We aim to ensure change and transitions are equitable, and we are implementing our principles in working towards the planned closure of Mt Arthur Coal. Our approach to equitable change and transition Spotlight: Our equitable change and transition principles Case study: Equitable transition for our Mt Arthur Coal mine Our people involved in Mt Arthur Coal’s operations and closure planning 46

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our approach to equitable change and transition Spotlight Our equitable change and transition principles We recognise many of the communities where we – Healthy environment: Opportunities for We have committed to principles that guide our – Recognise our responsibility to our workforce: operate rely on mining and associated activities to non-operational land to be under nature-positive approach to equitable change and transitions: Where a major change in our business is expected support their livelihoods. management practices (i.e. conservation, to affect our workforce, we will engage in – Create opportunity for meaningful engagement restoration or regenerative practices), including meaningful dialogue and support those impacted. and co-designed processes: We will seek We aim to ensure change and projects in partnership with Indigenous peoples to develop relationships with stakeholders and – Recognise the impacts associated with and local communities transitions are equitable and partners, including government, local businesses, gender, land connectedness and social and deliberately considered across the – Indigenous partnerships: Enable or support community members, suppliers, Indigenous economic vulnerability: We will not assume Indigenous access and cultural practices in peoples and workers, that support understanding all people are affected similarly. We will seek lifecycle of our business and for the post-closure land use options of the issues and co-creation of solutions. We will to understand how impacts may be differently communities where we operate. – Thriving, empowered communities: communicate transparently on the types of changes experienced, including for Indigenous peoples, Co-designed transitions that deliver positive the business needs to make and enable active and recognise plans and solutions must take long-term economic, social and environmental participation of those most impacted. into account the particular strengths of each We also acknowledge and consider that, while the outcomes beyond closure; targeted analysis of – Recognise the economic, social and community and tackle the unique impacts energy transition is essential, the world’s repositioning factors that may influence levels of vulnerability environmental dimensions of sustainable they experience. must be aligned with international human rights or adaptive capacity within communities where development are interrelated: We will aim Given change and transitions involve multiple obligations and the United Nations Sustainable we operate to support climate resilience to avoid or mitigate adverse environmental stakeholders and partners, we seek to be a catalyst Development Goals. impacts of change and transitions, while pursuing to bring people together and draw on our relationships Our Closure and Legacy Management Global Implementation Standard, Community and Indigenous Peoples Global opportunities to build climate resilience and to advocate for equitable change and transition in line Standard, Climate Change Global Standard and environmentally sustainable communities. with these principles. Our approach is grounded in our existing strategies, Environment Global Standard set out requirements policies, standards and frameworks in relation to aligned to our equitable change and transition our people, the environment, communities and principles. These Global Standards aim to achieve other stakeholders and partners. optimised closure outcomes and objectives, set minimum requirements for engagement and As equitable change and transition is intrinsically communication with stakeholders and partners, founded in human rights standards, our Human implement our commitments to human rights and Rights Policy Statement, Indigenous Peoples Policy Indigenous peoples’ rights, and manage environmental Statement, and Inclusion and Diversity Position risks, in addition to meeting compliance obligations. Statement help underpin our approach. For our approach to and reporting on our social value Our social value framework pillars provide opportunities framework and the goals, metrics and milestones, refer to to directly support equitable change and transitions, the available Sustainability at bhp.com/investors/annual-reporting section of the latest BHP Annual Report including for example: Our performance Global Standards requirements describe and provide our mandatory the foundation minimum – Decarbonisation: Opportunities for post-closure to develop and implement management systems at our land use options that support the energy transition; operated assets. Public versions of our Global Standards nature-based mitigation projects; and adaptation are corporate-governance available at bhp.com/about/operating-ethically/ measures with potential for wider benefits to Our Human Rights Policy Statement, Indigenous Peoples ecosystems and communities Policy Statement, are available and Inclusion and Diversity Position and Statement bhp.com/careers/inclusion-diversity at bhp.com/local-communities More engagements information and on initiatives our community-related is available at bhp. insights, com/ local-communities Municipal governments, First Nations, Métis and local organisations visiting our Jansen asset to discuss progress and the path ahead 47

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Case study Equitable transition for our Mt Arthur Coal mine Mt Arthur Coal is the mining operation of our Workforce Future land use options environmental and economic benefit locally and NSWEC asset. regionally, as well as creating greater economic Our ‘Tomorrow, together’ program aims to support Our rehabilitation strategy for Mt Arthur Coal is diversification for the Hunter Valley. We are working to leave a positive our employees to identify and progress towards a being progressively implemented as part of the career pathway that will be most appropriate for their current mining phase and will continue post-closure. We will continue to work closely with key legacy from our mining in the circumstances post-closure of Mt Arthur Coal. The Rehabilitation aims to improve the native ecosystem stakeholders and partners, including the community Hunter Valley as we transition to the program is about understanding each individual BHP and enhance the native woodland habitat. Our and government agencies, to determine the most employee’s future aspirations beyond FY2030 and how strategy is supported by rehabilitation completion appropriate land use options in closure. Most planned closure of Mt Arthur Coal, we can help support them to achieve these aspirations. criteria and performance indicators, overseen by alternative land uses will require planning and the New South Wales State Government. an open-cut energy coal mine in Key themes identified from these discussions have approval by both BHP and government agencies. led us to offer free financial planning advice for all We are engaging with multiple stakeholders and New South Wales, Australia. partners to seek ideas and feedback on the transition Key actions employees. Career advice sessions will also be available to enable individual career pathway plans and closure of the Mt Arthur Coal mine. We have – Obtain a decision on government approval of our This includes working with employees, contractors, for those who may decide to leave the mining industry completed a land capability assessment for the site mining extension. The decision is expected in the suppliers, the local community and other relevant as part of the planned closure. and we continue to explore opportunities to facilitate first half of CY2025 stakeholders and partners to achieve sustainable the ongoing use of the land at Mt Arthur Coal to – Continue to support employees in transition landforms and land uses to contribute to supporting We are also engaging in contractor and supplier enable alternative re-uses, such as recreation, career planning, skill mapping and attainment the needs of the Hunter region. forums and we are working on a plan to help support a transition for contractors and suppliers who depend large-scale renewable electricity generation, and of new skills land uses with high economic diversity and value. Pathway to 2030 on Mt Arthur Coal. We recognise individual needs There are a number of post-closure land use options – Continue progressive environmental rehabilitation In FY2022, we decided to retain Mt Arthur Coal, seek are unique for each contractor and supplier and their workforces. that have the potential to generate social, cultural, the relevant approvals to continue mining beyond the current consent that expires at the end of FY2026 and In FY2024, as part of our engagement with other proceed with a managed process to cease mining by regions undertaking a similar transition away the end of FY2030, which we refer to as our ‘Pathway from energy coal mining, our Mt Arthur Coal team to 2030’. This decision followed the review of our members undertook a site visit to Collie in Western lower grade steelmaking and energy coal assets that Australia. This provided an understanding of the State resulted in divestment of our interests in Cerrejón and Government’s Collie Just Transition Plan and how it is BHP Mitsui Coal in FY2022 and a trade sale process being implemented, which will see Collie’s coal-fired for NSWEC that did not result in a viable offer. power stations retired by CY2030. An important part of our Pathway to 2030 is to seek the relevant approvals to continue mining past expiry Community of the existing consent at the end of FY2026. This We recognise the importance of community timeframe is intended to provide the opportunity self-determination as we prepare to cease mining to consult, prepare, plan and make considered at Mt Arthur Coal. BHP is listening to community decisions for the long-term future of our people and members and other external stakeholders and surrounding communities. We have applied to the partners to better understand their values and New South Wales Department of Planning, Housing aspirations for the region. and Infrastructure for the extension. We expect additional maintenance capital spend of less than Through our assessment of closure legacy US$100 million will be required for the proposed life expectations and a research project with the extension of Mt Arthur Coal from FY2027 through to University of Newcastle, we have undertaken the end of FY2030. stakeholder interviews, community surveys and More information on our Pathway to 2030 and beyond, workshops to explore key issues and opportunities and understand how we can work in partnership including our plan for mining at Mt Arthur Coal beyond FY2026 is available at bhp.com/pathway-2030 to enable the continuation of a prosperous and diverse Upper Hunter region. It is anticipated these initiatives will help inform future plans and community investment programs. Community-based events, like the Upper Hunter Great Cattle Dog Muster, give the Mt Arthur Coal team a chance to both listen and share about the mine’s future 48

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Enabling delivery Our governance Our management, remuneration and organisational capability How we manage climate-related risk (threats and opportunities) How we manage capital How we manage carbon credits Our Commercial function seeks to maximise commercial and social value in our value chain 49

Climate change and climate transition planning is a material governance and strategic issue for our Board and management. Board reporting The Board met 16 times during FY2024 with climate-related issues regularly on the agenda for Board meetings, including reviewing and approving public sustainability disclosures, reviewing progress against our climate change targets and goals, assessing corporate strategy and portfolio options, approving certain investment requests, risk and policy setting. The Board is informed through board papers, progress updates from management, material risks reports, presentations from external subject matters experts and reports from the chair of each Committee following Committee meetings. Climate-related topics are also incorporated into Director induction programs, ongoing training, external speakers and site visits to assist the directors in their oversight. The Board will monitor and oversee progress against our GHG emissions targets and goals and the key commitments detailed in this CTAP. The Sustainability Committee, with assistance from the managementlevel Sustainability and ESG Steering Committee, will oversee BHP’s implementation and performance against this CTAP and climate-related matters. For more information on the Sustainability and ESG Steering Committee, refer to Our management, remuneration and organisational capability on the next page Board and Committees Climate change is a Board-level issue, including in relation to our strategic approach, risk management, public disclosures, annual budgets and business plans. The Board is responsible for the approval and oversight of BHP’s climate-related risks (threats and opportunities) and BHP’s climate change strategy. The Board has four standing Committees to assist in the discharge of its responsibilities, including in relation to climate-related matters. Each of these Committees reports to the Board on the key issues discussed, including, where applicable, climate-related issues: – The Board approves BHP’s significant social, community and sustainability policies (upon recommendation from the Nomination and Governance Committee), including those related to climate change and climate transition planning, public sustainability-related goals and targets (including for GHG emission reductions). The Board reviewed and approved BHP’s climate-related targets and goals, and approved this CTAP. – The Nomination and Governance Committee assists the Board with reviewing BHP’s significant social, community and sustainability-related policies (including those related to climate change and climate transition planning), and reviews and makes recommendations to the Board on BHP’s public sustainability-related targets and goals. The Nomination and Governance Committee reviewed and recommended this CTAP to the Board for approval. The Committee also assists with assessing the capability of the Board to deliver on BHP’s strategy by regularly assessing the Board skills matrix and the collective skills, experience and knowledge of the Board to be able to discharge its duties, including on the strategic direction of BHP. – The Sustainability Committee assists the Board with overseeing climate performance including monitoring implementation of BHP’s climate strategy, policies and processes, and performance against public targets and goals, and reviews and reports to the Board on the Group’s material climate risks. The Committee also makes recommendations to the People and Remuneration Committee on both setting climate performance measures and evaluating performance against those measures for the CEO and other members of the ELT. – The Risk and Audit Committee oversees and assists the Board in reviewing the emerging and principal risks facing BHP. This includes business risk, financial reporting risk and climate risk. The Committee also reviews and recommends to the Board for approval public financial disclosures, including financial information related to sustainability matters and financial information contained in climate change reports and climate transition action plans. The Risk and Audit Committee reviewed the climate-related financial disclosures appearing in this CTAP and the Financial Statements in the BHP Annual Report 2024, both prior to the Board’s approval. – The People and Remuneration Committee assists the Board with reviewing performance measures and performance outcomes for the CEO and approves performance measures and assesses and determines performance outcomes against those performance measures for the ELT. In doing so, the Committee considers recommendations from the Sustainability Committee in relation to climate performance measures. The responsibilities of the BHP Board and Board Committees are reflected in their respective charters available at bhp.com/about/operating-ethically/ corporate-governance Board skills 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. Skills in the current matrix related to the Board’s capability to assess and monitor climate-related risk (threats and opportunities) and climate transition strategies include Sustainability and decarbonisation transition, Strategy, Operating risk, Commodity value chain and customers, Social value, Community and stakeholder engagement, Technology and Capital allocation and cost efficiency. The Board collectively possesses the skills and experience set out in the skills matrix. The Directors also participate in an ongoing training and development program and receive updates on climate-related issues and reporting requirements, including from external experts on evolving climate-related developments where required. The latest Board skills matrix is in the Corporate Governance Statement in the latest BHP Annual Report, available at bhp.com/investors/annual-reporting Our governance Figure 7.1: Board and management governance of climate-related matters Board Reports and informs Directs and monitors CEO and Executive Leadership Team Sustainability and ESG Steering Committee Our asset and function teams Sustainability Committee Risk and Audit Committee People and Remuneration Committee Nomination and Governance Committee Operational Contents Introduction GHG emissions Physical risk and adaptation Equitable change and transition Climate policy advocacy Additional Portfolio information Value chain GHG emissions BHP Climate Transition Action Plan 2024 Enabling Delivery 50

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our management, remuneration and organisational capability Management key risk indicators to help monitor performance stakeholders and partners. Strategic drivers are The latest information about our performance against Management’s involvement in climate-related against our appetite for climate-related risks and reflected in incentive plan performance measures Remuneration our CDP climate Report change in the measures latest BHP is available Annual in Report, the monitors relevant signposts for emerging risks. linking executive incentives to actual performance. available at bhp.com/investors/annual-reporting matters includes: – The Risk team is responsible for providing The amount of remuneration actually received by For FY2025, our CDP climate-related performance – The CEO and ELT execute climate-related expertise, support, monitoring and challenge on executives each year depends on the achievement measures include: policies and strategy approved by the Board and risk-related matters and our internal audit team of business and individual performance measures are accountable for performance and achievement is responsible for providing independent and – reduction in operational GHG emissions (Scopes that generate sustained shareholder value. Before of BHP’s operational GHG emissions (Scopes 1 objective assurance over the control environment 1 and 2 emissions from our operated assets) deciding on the final incentive outcomes for and 2 emissions from our operated assets) and (governance, risk management and internal controls) the CEO and other executives, the People and – deliver the FY2025 actions in the approved value chain GHG emissions (Scope 3 emissions) to the Board and ELT. Additional assurance may Remuneration Committee considers the achievement climate adaptation work program targets and goals. also be provided by external providers, such as of pre-determined performance measures. – The Sustainability and ESG Steering Committee our external auditor, in relevant circumstances. – inclusion of capital for mitigating/preventative facilitates direction, review and management In FY2020, we strengthened the link between controls for physical climate-related risks in – The asset and function teams are responsible decisions on cross-functional, asset and strategic executive remuneration and the delivery of our climate future plans for undertaking climate-related activities. issues relating to BHP’s sustainability and change strategy, coinciding with the implementation Climate change measures, including reduction in ESG-related positions, including climate change of a revised remuneration framework, comprising Management skills operational GHG emissions, play a meaningful role in and climate transition planning. The membership fixed remuneration, the Cash and Deferred Plan the determination of remuneration outcomes for our of the Sustainability and ESG Steering Committee Our CEO and other members of the ELT attend (CDP) and Long Term Incentive Plan. CEO and other ELT members. includes the Chief Legal, Governance and External meetings and review papers and materials intended The CDP is an annual cash and equity award that Affairs Officer, Chief Financial Officer, Chief to provide them with new and additional knowledge, encourages and focuses executives’ efforts for the Employee remuneration Operating Officer, Chief Commercial Officer, skills and competencies required to oversee our relevant financial year on the delivery of our strategic President Minerals Australia and President climate change strategy. We have a short-term incentive plan that applies priorities, balancing financial and non-financial Minerals Americas from the ELT, and sustainability to the majority of employees below the ELT level Our CEO and other members of the ELT also make performance, to deliver short-, medium- and long-term and ESG leaders within BHP, including the Group (excluding employees under industrial or enterprise use of regular, structured forums that provide detailed success aligned to our purpose. For FY2025, the CDP Sustainability and Social Value Officer. agreements who have separate short-term incentive information on climate-related topics, including: scorecard includes performance measures related and bonus arrangements). A company scorecard – The Group Sustainability and Social Value to safety and sustainability (25 per cent weighting), – The Forum on Corporate Responsibility: used for this short-term incentive plan is similar to the Officer, Dr Fiona Wild, is responsible for driving financial (50 per cent weighting) and group and personal A forum we host that meets half-yearly and CDP scorecard and includes climate change-related BHP’s climate change strategy, including climate objectives (25 per cent weighting). CDP awards are convenes external leaders in sustainability-related performance measures, including targets related to considerations in broader company strategy and provided as cash and deferred shares vesting in fields to discuss views on current and emerging the reduction in our operational GHG emissions. portfolio evaluation, operational and value chain two and five years, respectively. Vesting of five-year decarbonisation, physical climate-related risk trends and risks, including climate change. deferred shares under the CDP is underpinned by a and adaptation, equitable change and transition, – The Quarterly Business Review: An internal holistic review of performance at the end of the five- Employees who have specific climate-related stakeholder engagement and disclosure. forum that meets quarterly to review and consider year vesting period, including a review of safety and responsibilities also have individual performance updates on strategic direction and tactical sustainability performance over the five-year period. goals related to climate-related progress. The achievement of these goals is used to determine The ELT receives progress and performance reports progress on operational GHG emission reduction. entitlement to short-term incentive outcomes. on operational GHG emissions, operational and value The safety and sustainability-related targets include chain GHG emission reduction activities, adaptation – Commodity and Market Outlook Review: An significant health, safety, environment and community strategy-related activities and climate-related risks internal forum that hosts discussions at least twice (HSEC) events, climate change and Indigenous Organisational capability from our asset and functions teams. a year about new events and challenges affecting partnerships. Climate change-related scorecard We conduct periodic capability reviews across our our forecasting of commodity demand, the global targets will represent 10 per cent weighting in the Management is supported by BHP’s asset and business for roles with climate-related accountabilities economy, financial markets and the overarching CDP scorecard for FY2025 and have been in place function teams: to help us design and deliver training to support potential impact of climate change and the net each year since FY2020. These performance capability improvement. Our training has completion – The Group Sustainability and Social Value team zero transition globally. measures seek to motivate executives to achieve and required and monitored for certain roles. is responsible for collaborating with BHP’s asset exceed internal targets, which support delivery of our and function teams, external partners and industry Remuneration GHG emissions targets and goals in this CTAP. to develop practical climate change solutions. The A CDP award is determined based on the assessment team regularly prepares information and advice for CEO and ELT remuneration of each scorecard performance measure by the People management-level and Board-level stakeholders Our executive remuneration framework is aligned and Remuneration Committee and the Board, with and committees on climate-related strategy, risks with key drivers of our business strategy, to help guidance provided by other relevant Board Committees, (threats and opportunities) and performance deliver the short-, medium- and long-term success including the Sustainability Committee with respect to against climate-related metrics. The team also uses of BHP and create value for shareholders and other safety and sustainability targets and outcomes. 51

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 How we manage climate-related risk (threats and opportunities) Climate change creates new risks and influences the Our mandatory minimum performance requirements Operational GHG emissions risk We then use this planning process to prioritise and nature, scale and frequency of the potential impacts for risk management and the Climate Change accelerate the delivery of our operational GHG of many existing risks (not primarily caused by climate Global Standard set the minimum requirements to We conduct annual long-term strategic planning emission reduction strategy where possible. This change) across our risk profile. manage climate-related risks and apply across our for our operated assets, which includes detailed typically includes a focus on technologies and GHG This CTAP has been developed to reflect the operated assets, functions, and regional teams, and operational GHG emissions reduction planning. As emission sources that are not as well progressed identification and management of climate-related our decision-making processes for procurement, part of this, we assess projects using criteria such or that do not have as high a level of technology or risks (threats and opportunities) that we face. sales and marketing. as technology readiness, operational risk and overall commercial readiness. We continue to study and We interpret external signals associated with risk associated with likelihood of progression. We identify options to accelerate our strategy, including We take an enterprise approach to risk management transition risk and physical climate-related risk, also consider project success at the planned scale by working with our suppliers, others in the industry and operate to one Risk Framework for all risks including material changes in climate-related of implementation required to meet our medium-term and our innovation and BHP Ventures teams to including climate-related risks (threats and political dynamics, policy and regulation, including target and achieve our long-term net zero goal. source new ideas or gain access to new technologies. opportunities). Our Risk Framework requires Impacts to our operational GHG emissions are legal developments, carbon pricing and markets, the identification and management of risks to included in our investment risk management framework stakeholder sentiments, and industry developments. be embedded in business activities and provides for minor projects, major capital projects, transactions, We also interpret external events and trends requirements and guidance on the tools and and greenfield exploration projects. Project teams are associated with transition and physical climate-processes to manage current and emerging risks. required to identify a potential investment’s operational related risk which may include, scientific, policy, legal, reputation and market developments. This supports GHG emissions profile and the availability of GHG the identification and management of climate-related emission abatement solutions to assess the impact on risks at BHP. our operational GHG emissions medium-term target and long-term net zero goal. Table7.1:HowweaddressBHP’sriskfactorsandclimate-relatedrisk(threatsandopportunities)inthisCTAP,asidentifiedforFY2024 Ourriskfactors,asidentifiedforFY2024andwhererelevanttothisCTAP Adopting Significantsocial technologies and Operational or environmental Low-carbon maintaining digital Optimising growth Accessing Inadequate business Climate-related risk factors Sections in this CTAP events impacts transition security and portfolio returns key markets resilience Operational GHG emissions, from page 10 Transition risk (climate-related) Value chain GHG Predominantly BHP company-wide risks that are emissions, from page 19 influenced or exacerbated by the global transition to net zero, but where climate change is not the sole driver. Portfolio, from page 31 The transition to a net zero global economy has the potential to influence these risks by driving, amplifying Climate policy advocacy, or accelerating one or more risk scenarios or causes. from page 39 Equitable change and transition, from page 46 Physical climate-related risk Risks where the potential physical impacts of a changing climate, chronic and acute, are the main Physical risk and driver, and which largely materialise through potential adaptation, from page 42 impacts to infrastructure and operations at our operated assets and in our value chain, and may affect the communities where we operate. 52

How we manage capital Decision evaluation and capital allocation Our Capital Allocation Framework is a fundamental mechanism for determining the amount and timing of investment in the progression of our climate change strategy and the delivery of this CTAP, while remaining well-positioned to maximise shareholder returns. As shown in Figure 7.2, our framework provides an overarching hierarchy for the potential uses of surplus operating cash and is used to guide short-, medium- and long-term business decision-making and planning processes. Capital is prioritised from a portfolio perspective consistent with our long-term strategy, to enable maximum value and returns. Operational GHG emissions Operational GHG emission reduction projects are considered as part of the maintenance capital category within this framework, along with other forms of risk reduction, asset integrity, compliance, and major, minor and sustaining projects intended to preserve the ability to generate value at our operated assets. This enables consideration of a risk assessment across qualitative and quantitative criteria relevant to each capital allocation decision. However, an important principle within the framework prioritises operational GHG emission reduction projects where they are critical in supporting the achievement of our operational GHG emissions medium-term target and long-term net zero goal. Individual operational GHG emission reduction projects must justify the investment based on abatement efficiency, technology readiness, maturity, operational impact and relative economics compared with other maintenance capital projects in the portfolio. Operational GHG emission reduction projects are incorporated into our corporate planning processes that includes review of our mine plans, which are critical to creating alignment across BHP. These processes guide the development of plans, targets and budgets to help us decide where to deploy our capital and resources. We have a number of Investment Review Committees that assist our decision-makers with review of proposed investments. The appropriate Investment Review Committee, based on investment size and any complexity elements, provides endorsement for whether to progress operational GHG emission reduction projects based on qualitative and quantitative measures. Our Quarterly Business Review forum also reviews and updates strategic direction and tactical progress on operational GHG emission reduction. For more information on the Quarterly Business Review forum, refer to Our management, remuneration and organisational capability on page 51, earlier in this section Execution is monitored through periodic reporting to senior leaders and project sponsors on key performance indicators. Value chain GHG emissions Value chain GHG emission reduction projects are usually considered and prioritised using similar criteria to compliance and risk reduction projects. For steelmaking-related projects (including our steelmaking customer partnerships), our Investment Review Committees operate in the same manner as described for operational GHG emission reduction projects. Carbon pricing We embed carbon prices, as shown in Table 7.2, within our planning range and planning cases that inform asset planning, asset valuations and operational decision-making, including the prioritisation of operational GHG emission reduction projects. Our carbon price forecasts are also used along with other qualitative and quantitative metrics in assessing investments and informing our portfolio strategy and investment decisions. Our internal carbon price for a region is based on existing and forecast carbon taxes or GHG emission allowance prices known as a ‘compliance carbon price’. In regions where there is currently no regulated carbon pricing method in place, we assume the implementation of these measures taking into consideration national or regional circumstances, including current and announced government climate-related policies, targets and goals (including net zero) and societal factors, such as public acceptance and demographics. As climate ambition differs by country or region and will likely evolve over time, we use regional carbon price trajectories from today to FY2050. The carbon price forecast for our operational countries and customer countries aligns with our planning range framing and associated regional net zero ambitions. For more information about our planning range and planning cases, refer to the Portfolio – Our planning range – what it is and how we use it on page 32 Figure 7.2: Our Capital Allocation Framework Operating productivity Net operating cash flow Excess cash Capital productivity Minimum 50% Maintenance capital payout ratio dividend Debt reduction Additional dividends Buy-backs Organic development Strong balance sheet Acquisitions and divestments Table 7.2: Our planning range’s forecast ranges of regional carbon prices for major BHP operational countries and key customer countries July 2024 US$ real per tCO2 FY2030 low-case FY2030 high-case FY2050 low-case FY2050 high-case Australia 28 83 166 248 Brazil 6 55 138 221 Chile 9 44 166 248 Canada 71 110 221 248 Key customer countries28 1 193 28 276 Operational Contents Introduction GHG emissions Physical risk and adaptation Equitable change and transition Climate policy advocacy Additional Portfolio information Value chain GHG emissions BHP Climate Transition Action Plan 2024 Enabling Delivery 53

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 How we manage carbon credits How we may use carbon credits Voluntary carbon credits – Demonstrates that the GHG emission Regulatory carbon credits reductions are additional: GHG emissions Our plan is to meet our operational GHG emissions We undertake risk-based screening and/or due We are subject to the Australian Government’s would not have been reduced in the absence of medium-term target through structural GHG diligence to test that carbon credits sourced by Safeguard Mechanism, under which facilities a carbon market. emissions abatement instead of offsetting our BHP meet our integrity standards. – Has a high likelihood of permanence: GHG we operate are required to maintain their Scope operational GHG emissions. However, if there is 1 emissions at or below progressively declining Our integrity standards are designed to align to global emissions reduction is ongoing and not reversed an unanticipated shortfall in our pathway to our legislated baselines (e.g. by surrendering carbon best practice for high-integrity carbon credits (such (e.g. for forestry projects, the trees are not cut medium-term target, we may need to use voluntary credits from eligible sources). ACCUs can be used as the International Carbon Reduction and Offsetting down or destroyed by a natural disaster). carbon credits that meet our integrity standards to to comply with the Safeguard Mechanism. The Alliance’s accreditation Code of Best Practice and close the performance gap. – Provides robust mitigation against leakage: principles underpinning the ACCU Scheme align to its list of endorsed carbon crediting standards, Does not increase GHG emissions elsewhere our own integrity standards for the carbon credits Our approach to the use of carbon credits for and the Integrity Council for the Voluntary Carbon (e.g. for forestry projects, another forest area is we source. The Australian Clean Energy Regulator offsetting for our other GHG emissions targets and Market’s Core Carbon Principles). We will review not destroyed). is responsible for approving and issuing ACCUs to goals varies and continues to evolve. and update alignment over time as best practices projects according to those principles. We do not apply on carbon credit integrity evolve. – Demonstrates high environmental and social For more information on: a vintage restriction to purchases of ACCUs because integrity: Does not cause broader social or – how we may use carbon credits to support the Carbon credits we intend to source go through a the additionality of projects is rigorously assessed. environmental harm (e.g. for forestry projects, no achievement of our operational GHG emissions target review process that includes technical, governance, community displacement occurs) and appropriate and goal We anticipate needing to source eligible carbon legal and stakeholder aspects, carried out by internal engagement is undertaken with local communities – how we and our value chain may use carbon credits credits to comply with the Safeguard Mechanism and external subject matter experts. and Indigenous groups, and the findings emissions to support targets the achievement and goals of our value chain GHG given its applicability to Scope 1 emissions only. We apply the following integrity standards to voluntary incorporated into project design (e.g. equitable Although we prioritise structural GHG emissions details refer to Additionalinformation–Definitionsandkey for our GHG emissions targets and goals on carbon credits that we source: benefit sharing is defined). abatement for our operational GHG emissions, many pages 57 to 60 – Restricts early vintage years: Not retiring of the technologies and solutions we need to abate – Registered under an internationally Scope 1 emissions (e.g. electric mining equipment/ credits with a vintage greater than five years recognised standard: Independent verification vehicles and fugitive methane emissions prevention Types of carbon credits to avoid concerns regarding unsophisticated and issuance of voluntary carbon credits and/or and mitigation) are not yet ready to be deployed. methodologies, non-additionality and inadequate Where commercially feasible, we prioritise carbon satisfaction of national standards for regulatory Accordingly, our need for eligible carbon credits may benefit sharing. credits from nature-based projects as they may carbon credits. Carbon credits we source are grow over time to support compliance. unlock the potential to bring wider benefits to predominantly issued under Verra’s and Gold In some cases, the integrity standards of carbon ecosystems and communities, in conservation Standard’s respective standards. credits may be set and monitored by certain While the Safeguard Mechanism in Australia and restoration of carbon sequestration. government agencies (e.g. Australian Carbon Credit is currently the primary regulatory driver of our – Adheres to a robust GHG emissions reduction Units (ACCUs)). Where the principles underpinning requirement for regulatory carbon credits, we are In the future, we may consider the sourcing and accounting methodology: Assurance of the their integrity standards are broadly aligned to our subject to other regulations that may require mandatory use of natural (e.g. forest-related) and technological volume of atmospheric carbon that is reduced own, we do not apply our review process. carbon credit surrender in the future. (e.g. direct air capture) carbon credits if there is a by a project. satisfactory increase in technology and commercial We will continue to evaluate our approach as the readiness, and they are supported by robust carbon regulatory environment evolves, including in other crediting methodologies. regions where we operate. 54

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Additional information Our Transition Plan Taskforce alignment DefinitionsandkeydetailsforourGHGemissionstargetsandgoals Our 1.5°C scenario assumptions and the signposts we monitor Our 1.5°C scenario compared to benchmarks Independent assurance report Notes Glossary 55

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our Transition Plan Taskforce alignment When developing this CTAP, The disclosure framework has three guiding principles: – Targets associated with governance – Impacts and dependencies that have engagement, business activity, operational beenidentifiedwithrespecttonature:We we considered the voluntary 1. Ambition 2. Action mattersandfinancialmetrics:The disclosure acknowledge the interdependencies between UK Transition Plan Taskforce framework requires publicly disclosed targets in climate and nature. Although not contained within 3. Accountability each of these areas. We actively monitor a range this CTAP, we do disclose information on our Disclosure Framework that was of climate-related metrics in these areas and strategies to manage land, water and biodiversity published in October 2023. As shown in Table 8.1, we have mapped where adjust our strategy and actions where necessary. in the BHP Annual Report and on our website. our disclosures in this CTAP seek to align with the – Absolute gross Scope 3 emissions reduction For more information on our land, water and biodiversity The disclosure framework disclosure framework. target: We are not currently in a position to commit strategies, refer to the latest BHP Annual Report, available aims to support companies to to a new absolute gross target for any part of our at available bhp.com/investors/annual-reporting at bhp.com/sustainability and our website, The Framework Transition is available Plan Taskforce at transitiontaskforce. Disclosure net value chain GHG emissions, given achievement of develop high-quality, consistent our value chain GHG emissions long-term net zero and comparable transition We acknowledge there are areas of the disclosure goal is uncertain, particularly given the challenges of framework that this CTAP does not address or a net zero pathway for our customers in steelmaking, plan disclosures. substantially align with, the most significant of which are: and we cannot ensure the outcome alone. Table 8.1: Transition Plan TaskforceDisclosureFrameworkandouraligneddisclosuresinthisCTAP(unlessotherwisespecified) Accountability: Metrics and targets, and Ambition: Foundations Action: Implementation and engagement strategy governance Operational GHG emissions Portfolio Introduction Portfolio continued Introduction – Our target and net zero goal for operational – Resilience in our 1.5°C scenario, on page 34 – Our climate change strategy and this CTAP at a glance, on – Spotlight: Our 1.5°C scenario – what it is and how we use – Our portfolio changes and highlights of our climate GHG emissions (Scopes 1 and 2 emissions), – Copper, nickel, uranium and potash in our pages 8 and 9 it, on page 33 change strategy delivery so far, on page 7 on pages 11 to 13 1.5°C scenario, on pages 35 and 36 – Spotlight: Influences on our operational GHG – Steelmaking, iron ore and steelmaking coal Operational GHG emissions Policy advocacy Enabling delivery emissions target- and goal-setting, on page 18 in our 1.5°C scenario, on pages 37 and 38 – Spotlight: How we plan operational GHG emission – Our approach to policy advocacy, on page 40 – Our governance, on page 50 reductions in a dynamic environment, on page 14 – Our recent and planned policy engagements, on page 41 – Our management, remuneration and organisational Value chain GHG emissions Physical risk and adaptation – Our areas of focus to reduce operational GHG emissions, capability, on page 51 – Our net zero goal for value chain GHG – Our approach to physical climate-related risk, on pages 15 to 17 Physical risk and adaptation – How we manage carbon credits, on page 54 emissions (Scope 3 emissions), on pages 20 on pages 43 and 44 – Our management of physical climate-related risk, on and 21 Value chain GHG emissions pages 45 Additional information – Steelmaking: Our Scope 3 emissions goal to Equitable change and transition – Our net zero goal for value chain GHG emissions (Scope 3 – Definitions and key details for our GHG emissions support capability for GHG emissions intensity, – Our approach to equitable change and emissions), on pages 20 and 21 Equitable change and transition targets and goals, on pages 57 to 60 on pages 24 and 25 transition, on page 47 – Steelmaking: Longer-term industry pathways, on pages – Spotlight: Our equitable change and transition principles, – Direct suppliers: Our Scope 3 emissions net 22 and 23 on page 47 BHP Annual Report zero target for direct suppliers’ operational Enabling delivery – Steelmaking: Our Scope 3 emissions goal to support – Case study: Equitable change and transition at Mt Arthur – We publish our climate-related metric, targets GHG emissions, on page 28 – How we manage capital, on page 53 capability for GHG emissions intensity, on pages 24 and Coal, on page 48 and goals as part of our annual climate change – Shipping: Our Scope 3 emissions goal to 25 disclosures in the BHP Annual Report, available at support GHG emissions intensity reduction – Case studies: Steelmaking GHG emissions intensity Enabling delivery bhp.com/investors/annual-reporting and net zero target, on pages 29 and 30 reduction projects, on pages 26 and 27 – How we manage climate-related risk (threats and – Direct suppliers: Our Scope 3 emissions net zero target for opportunities), on page 52 direct suppliers’ operational GHG emissions, on page 28 – How we manage capital, on page 53 – Shipping: Our Scope 3 emissions goal to support GHG emissions intensity reduction and net zero target, on Additional information pages 29 and 30 – Our 1.5°C scenario assumptions and the signposts we monitor, on page 61 Portfolio – Our 1.5°C scenario compared to benchmarks, on page 62 – Our portfolio strategy, on page 32 – Spotlight: Our planning range – what it is and how we use it, on page 32 56

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 DefinitionsandkeydetailsforourGHGemissionstargetsandgoals We have published a detailed description of how our measurement of GHG emissions aligns with the GHG Protocol series of methodology standards and The latest BHP GHG Emissions Calculation Methodology relevant guidance in the latest BHP GHG Emissions Calculation Methodology. We have published GHG emission data for recent prior year periods in the latest and bhp. BHP com/climate ESG Standards and Databook are available at BHP ESG Standards and Databook. Table8.2:OperationalGHGemissions(Scopes1and2emissionsfromouroperatedassets)medium-termtargetandlong-termnetzerogoaldefinitions,assumptions,adjustmentsandadditionalkeydetails Medium-term target Long-term net zero goal – Description: Reduce operational GHG emissions by at least 30 per cent from FY2020 levels by FY2030 – Description: Achieve net zero operational GHG emissions by CY2050 – Baseline year: FY2020 – Reference year: FY2020. FY2020 is used as a reference year to track progress towards our goal, but is not a baseline year for achieving – Period: FY2020 to FY2030 our goal. – Type: Absolute – Period: FY2020 to CY2050 – Reduction: Gross; at least 30 per cent – Type: Absolute – Reduction: Net; 100 per cent (where we currently estimate up to around an 85 per cent gross operational GHG emissions reduction against FY2020 levels by CY2050 without the use of carbon credits for offsetting) – Inventory boundary: Scopes 1 and 2 emissions: Operational control – Exclusions: Non-operated assets and equity investments (included in our value chain GHG emissions (Scope 3 emissions) long-term net zero goal) – GHGs included: CO2, CH4, N2O, HFC, PFC, SF6 – Offsetting: Our plan is to achieve our medium-term target through structural GHG emissions abatement instead of offsetting our operational – Offsetting: Planned, to close the performance gap beyond our current estimate of up to around an 85 per cent gross operational GHG GHG emissions. We will not use regulatory carbon credits (i.e. those used for compliance under regulatory schemes, such as the Australia’s emissions reduction against FY2020 levels by CY2050 without the use of carbon credits for offsetting Safeguard Mechanism) to meet our target. In our projected pathway, we have not planned to use voluntary carbon credits to meet our medium-term target, but if there is an unanticipated shortfall in our pathway, we may use voluntary carbon credits that meet our integrity standards to close the performance gap – Measurement approach: Scope 1 emissions are calculated using emission factors and methodologies required under mandatory local regulatory programs where BHP operates, including the National Greenhouse Energy and Reporting (NGER) scheme for Australian operations, Green Tax legislation (referencing Intergovernmental Panel on Climate Change (IPCC) emission factors) for Chilean operations and Canadian Greenhouse Gas Reporting Program (referencing IPCC emission factors) for our Jansen potash project. In the absence of mandatory local regulatory programs, the Australian NGER scheme emission factors and methodology is used. Scope 2 emissions are calculated using the market-based method using electricity emission factors sourced directly from the supplier where available, as evidenced by Renewable Energy Certificates and/or supplier-provided documentation. Where supplier-specific emission factors are not available, a default location-based emission factor for electricity, as published in local regulations or industry frameworks, is used – Key adjustments made to our baseline year, reference year and subsequent data: Baseline year (for our target) and reference year (for our goal) and performance data have been adjusted for divestment of our interest in BMC (completed on 3 May 2022), divestment of our Petroleum business (merger with Woodside completed on 1 June 2022), BMA’s divestment of the Blackwater and Daunia mines (completed on 2 April 2024), our acquisition of OZ Minerals (completed on 2 May 2023) and for methodology changes (use of IPCC Assessment Report 5 (AR5) Global Warming Potentials and the transition to a facility-specific GHG emission calculation methodology for fugitives at Caval Ridge and Saraji South) – Performance, adjusted: FY2020: 13.6 MtCO2-e | FY2021: 13.8 MtCO2-e | FY2022: 10.2 MtCO2-e | FY2023: 9.1 MtCO2-e | FY2024: 9.2 MtCO2-e – Target/goal setting method: Our target is measured on a cumulative GHG emission basis against an overall carbon budget. The target – Target/goal setting method: Our goal was developed with the ambition to achieve net zero for our operational GHG emissions by percentage reduction was established in FY2020 by applying the same rate of reduction to BHP’s GHG emissions as the rate at which the world’s CY2050. Our progress against this goal will be measured on an absolute basis GHG emissions would have to contract in order to meet the Paris Agreement goal to hold global average temperature increase to well-below 2°C – Target/goal derived using a sectoral decarbonisation approach: No, however our goal is consistent with the global net zero ambition above pre-industrial levels (known as the ‘absolute contraction method’) – Target/goal derived using a sectoral decarbonisation approach: No, our target was derived using the absolute contraction method specified earlier. At the time of setting the target, there were no mining sector-specific pathways for jurisdictions where we operate – Processes for reviewing the setting of our target/goal: The Board approves BHP’s significant social, community and sustainability policies (upon recommendation from the Nomination and Governance Committee), including those related to climate change and climate transition planning, public sustainability goals and targets (including for GHG emission reductions). We review our GHG emissions targets and goals as part of the periodic development of an updated CTAP, or more frequently if required – Processes for monitoring progress towards our target/goal: Monitored on an annual basis through our business planning processes, which forecast operational GHG emissions and identify planned, proposed or potential GHG emission reduction projects out to CY2050. As part of this process, an internal GHG emissions target is set for the relevant financial year, and monitored through our annual reporting processes, with progress reviewed by management and the Board as part of publication of our annual reporting disclosures, or more frequently if required. Our target is also monitored on a six-monthly basis through our social value scorecard framework, with progress reviewed by management and the Board as part of publication of our half-year results (as well as annual reporting disclosures), or more frequently if required – Third-party validation of our target/goal: No, but we obtain reasonable assurance over our externally reported performance against our target and goal – Carbon budget for our target/goal period: 126.9 MtCO2 -e (FY2020 to FY20230). This reflects a linear reduction between our baseline – Carbon budget for our target/goal period: For the period FY2020 to FY2030, refer to the carbon budget for our target. We do not year and the target year. In the interim years before FY2030, we periodically refer to our carbon budget to assess our cumulative GHG currently use a carbon budget for the period beyond FY2030 emissions against our carbon budget to FY2030. This enables us determine if we are on track to achieve our medium-term target or whether we anticipate potential use of voluntary carbon credits to close any performance gap by FY2030 (which we do not currently anticipate) – Expected progression: Progress towards our target and goal is expected to be non-linear and affected by organic changes in our production of commodities 57

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 DefinitionsandkeydetailsforourGHGemissionstargetsandgoalscontinued Table8.3:ValuechainGHGemissions(Scope3emissions)medium-termgoalsdefinitions,assumptions,adjustmentsandadditionalkeydetails Steelmaking medium-term goal Shipping medium-term goal – Description: Support industry to develop steel production technology capable of 30 per cent lower GHG emissions intensity relative to – Description: Support 40 per cent emissions intensity reduction of BHP-chartered shipping of BHP products. conventional blast furnace steelmaking, with widespread adoption expected post-CY2030 – Baseline year: CY2008 (reflecting International Maritime Organisation (IMO) objectives for the shipping industry) – Reference year: CY2020 (global average GHG emissions intensity for conventional blast furnace steelmaking as at CY2020, being 2.2 – Period: CY2008 to CY2030 tonnes of CO2 per tonne of crude steel. Source: IEA Iron and Steel Technology Roadmap (October 2020)). CY2020 is used as a reference – Type: Intensity year to assess the potential of collaborative partnerships and venture capital investments to which we may commit funding (refer to – Reduction: Gross; 40 per cent ‘measurement approach’ later in this table), but is not a baseline year for achieving our goal – Boundary: – Period: FY2020 to CY2030 – GHG emissions from maritime transportation not owned or operated by BHP, but chartered and paid for by BHP, where the transportation was – Type: Not applicable of BHP-produced products sold by BHP. In some cases, the goal’s boundary may differ from the boundaries under mandatory reporting – Reduction: Not applicable – Inventory boundary: Scope 3, Category 4, shipping of BHP products only – Boundary: Not applicable – Exclusions: – Exclusions: Not applicable – GHG emissions from maritime transportation owned, operated and/or chartered and paid for by a third party, where the transportation – GHGs included: Not applicable was of BHP-produced products sold by BHP – Offsetting: Not applicable – GHG emissions from maritime transportation not owned or operated by BHP, but chartered and paid for by BHP, where the transportation – Measurement approach: Committed funding (US$) for collaborative partnerships and venture capital investments with the aim to was of third-party-produced products sold by BHP (pursuant to our third-party-trading activity) support industry to develop steel production technology capable of 30 per cent lower GHG emissions intensity relative to conventional – GHG emissions from maritime transportation not owned or operated by BHP, but chartered and paid for by BHP or a third party, where blast furnace steelmaking the transportation was of products purchased by BHP – Key adjustments made to our baseline year, reference year and subsequent data: Not applicable – GHGs included: CO2, CH4, N2O – Performance: FY2022: US$75 million | FY2023: US$114 million | FY2024: US$140 million – Offsetting: Not planned but will be periodically assessed – Goal setting method: Qualitative. Tracked based on the funding (US$) we commit in collaborative partnerships and venture capital – Measurement approach: Average gCO2-e per deadweight tonne per nautical mile (gCO2-e/dwt/nm), weighted based on IMO defined investments with the aim to support industry to develop steel production technology capable of 30 per cent lower GHG emissions vessel size ranges utilised by BHP during the time period, using a well-to-wake CO2-e emission factor from EU Regulation 2023/1805 intensity relative to conventional blast furnace steelmaking – Key adjustments made to our baseline year, reference year and subsequent data: Baseline year and performance data have been – Goal derived using a sectoral decarbonisation approach: Not applicable adjusted to only include voyages associated with the transportation of commodities currently in BHP’s portfolio due to the data availability challenges of adjusting by asset or operation for CY2008 and subsequent year data. GHG emissions intensity calculations currently include the transportation of copper, iron ore, steelmaking coal, energy coal, molybdenum, uranium and nickel. Baseline year and performance data have also been adjusted for a methodology change to use maritime transport emission factors from EU Regulation 2023/1805, after The British Standards Institution EN 16258 standard (the source of the emission factors we previously used) was withdrawn in CY2023 – Performance, adjusted: CY2008: 5.8 gCO2-e/dwt/nm | FY2023: 3.5 gCO2-e/dwt/nm | FY2024: 3.4 gCO2-e/dwt/nm – Goal setting method: Set as a point in time, i.e. with the specific date of ‘by CY2030’ for our goal to support a 40 per cent GHG emissions intensity reduction of BHP-chartered shipping of BHP products, while reflecting the challenges and uncertainty and our inability (as BHP alone) to ensure Scope 3 emission reductions. As a result, the goal is not based on a trajectory and does not imply a specific carbon budget, and so Scope 3 emissions may fluctuate (with some increases and/or non-linear decreases) during the period before the goal date – Goal derived using a sectoral decarbonisation approach: No, although our goal is generally consistent with the IMO’s CY2030 emissions intensity goal for the international shipping sector and we selected CY2008 as our goal’s baseline year to align with the base year for the IMO’s CY2030 goal and its corresponding reasoning and strategy – Processes for reviewing the setting of the goal: The Board approves BHP’s significant social, community and sustainability policies (upon recommendation from the Nomination and Governance Committee), including those related to climate change and climate transition planning, public sustainability goals and targets (including for GHG emission reductions). We review our GHG emissions targets and goals as part of the periodic development of an updated CTAP, or more frequently if required – Processes for monitoring progress towards our goal: Monitored on a six-monthly basis through our social value scorecard framework, with progress reviewed by management and the Board as part of publication of our half-year results and annual reporting disclosures, or more frequently if required – Third-party validation of our goal: No, but we obtain limited assurance over our externally reported performance against our goals – Carbon budget for our goal period: Not applicable – Carbon budget for our goal period: Our goal is not based on a trajectory and does not imply a specific carbon budget – Expected progression: Not applicable – Expected progression: Progress towards our goal is expected to be non-linear and affected by organic changes in our production of commodities and associated increases in vessel chartering, due to the dependence on the availability of GHG emission reduction solutions more broadly across the shipping industry 58

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 DefinitionsandkeydetailsforourGHGemissionstargetsandgoalscontinued Table8.4:ValuechainGHGemissions(Scope3emissions)long-termnetzerotargetsandgoaldefinitions,assumptions,adjustmentsandadditionalkeydetails Value chain long-term net zero goal Shipping long-term net zero target Suppliers long-term net zero target – Description: We have a long-term goal of net zero Scope 3 GHG emissions by CY2050. – Description: Target net zero by CY2050 for the GHG emissions from all shipping of – Description: Target net zero by CY2050 for the operational GHG emissions of our Achievement of this goal is uncertain, particularly given the challenges of a net zero BHP products. Ability to achieve the target is subject to the widespread availability of direct suppliers. Ability to achieve the target is subject to the widespread availability of pathway for our customers in steelmaking, and we cannot ensure the outcome alone carbon neutral solutions to meet our requirements, including low to zero GHG emission carbon neutral solutions to meet our requirements, including low to zero GHG emissions technologies, fuels, goods and services technologies, fuels, goods and services – Reference year: FY2020. FY2020 is used as a reference year to track progress towards our targets and goal, but is not a baseline year for achieving our targets or goal – Period: FY2020 to CY2050 – Type: Absolute – Reduction: Net; 100 per cent – Boundary: – Boundary: – Boundary: – Total reported Scope 3 emissions are estimated on an equity basis for downstream GHG – GHG emissions from maritime transportation not owned or operated by BHP where the – Scopes 1 and 2 emissions of our direct suppliers included in BHP’s reported Scope emissions. For the upstream GHG emissions component, the boundary is defined on a transportation was of BHP-produced products sold by BHP. May be BHP-chartered or 3 emissions reporting categories of purchased goods and services (including category-by-category basis due to data limitations third-party-chartered. In some cases, the target’s boundary may differ from the boundaries capital goods), fuel- and energy-related activities, business travel and employee – Inventory boundary: Scope 3 emissions under mandatory reporting commuting. In some cases, the target’s boundary may differ from the boundaries under – Exclusions: Refer to exclusions for our shipping and suppliers targets – Inventory boundary: Scope 3 emissions, Categories 4 and 9, shipping of BHP mandatory reporting – GHGs included: Defined by the available data, which differs by Scope 3 emissions products only – Inventory boundary: Scope 3 emissions, Categories 1, 3, 6 and 7 (subset) emissions are category. We intend to continue to improve our GHG emission calculations over time to – Exclusions: being used as a proxy for the Scopes 1 and 2 emissions of our direct suppliers encompass specific greenhouse gases as data becomes available – GHG emissions from maritime transportation not owned or operated by BHP, but – Exclusions: Scope 3 emissions (for our direct suppliers) associated with our purchased chartered and paid for by BHP, where the transportation was of third-party-produced goods and services (including capital goods), fuel- and energy-related activities, business products sold by BHP (pursuant to our third-party-trading activity) travel and employee commuting – GHG emissions from maritime transportation not owned or operated by BHP, but – GHGs included: Defined by the available data, which differs by Scope 3 emissions chartered and paid for by BHP or a third party, where the transportation was of products category. We intend to continue to improve our GHG emission calculations over time to purchased by BHP encompass specific greenhouse gases as data becomes available – GHGs included: CO2, CH4, N2O – Offsetting: We anticipate offsetting by our customers, suppliers and other third parties will play a role in meeting our long-term net zero goal (and potentially our long-term net zero targets), particularly for residual GHG emissions in steelmaking which are not currently expected to reach zero by CY2050. Where third parties offset their GHG emissions that appear in our reported Scope 3 emissions inventory, we plan to recognise and report the net GHG emissions after offsetting. Carbon credits sourced by third parties in our value chain and associated with GHG emissions that appear in our reported Scope 3 emissions inventory would need to be high-integrity before we recognised that offsetting in our reporting. – Measurement approach: Description of the calculation methodology used for each Scope – Measurement approach: Vessel- and voyage-specific GHG emissions calculated using – Measurement approach: As a proxy for measurement of the Scopes 1 and 2 emissions 3 emissions category can be found in the BHP GHG Emissions Calculation Methodology maritime transport emission factors from EU Regulation 2023/1805 of our direct suppliers, progress is currently measured using Categories 1, 3, 6 and 7 2024, available at bhp.com/climate – Key adjustments made to our baseline year, reference year and subsequent data: emissions data using a mix of spend-based and activity-based methodology – Key adjustments made to our baseline year, reference year and subsequent Category 4 (maritime component) and Category 9 (maritime component) GHG emissions – Key adjustments made to our baseline year, reference year and subsequent data: data: Category 1, Category 3, Category 4 (maritime component), Category 9 (maritime in reference year and performance data have been adjusted for a methodology change to Category 1 and Category 3 GHG emissions in reference year and performance data component), Category 10, Category 11 and Category 15 GHG emissions in reference year use maritime transport emission factors from EU Regulation 2023/1805, after The British have been adjusted for the divestment of our interest in BMC (completed on 3 May 2022), and performance data have been adjusted for the divestment of our interest in Cerrejón Standards Institution (BSI) EN 16258 standard (the source of the emission factors we divestment of our Petroleum business (merger with Woodside completed on 1 June 2022), (with an effective economic date of 31 December 2020), divestment of our interest in BMC previously used) was withdrawn in CY2023, and have been adjusted for the divestment BMA’s divestment of the Blackwater and Daunia mines (completed on 2 April 2024) and (completed on 3 May 2022), divestment of our interest in the Rhourde Ouled Djemma (ROD) of our interest in BMC (completed on 3 May 2022), divestment of our Petroleum business acquisition of OZ Minerals (completed on 2 May 2023). Categories 6 and 7 were not Integrated Development (completed in April 2022), divestment of our Petroleum business (merger with Woodside completed on 1 June 2022), BMA’s divestment of the Blackwater adjusted due to their immateriality to our long-term net zero target (merger with Woodside completed on 1 June 2022), BMA’s divestment of the Blackwater and and Daunia mines (completed on 2 April 2024) and acquisition of OZ Minerals (completed – Performance, adjusted: FY2020: 11.6 MtCO2-e | FY2021: 11.7 MtCO2-e |    Daunia mines (completed on 2 April 2024), and acquisition of OZ Minerals (completed on 2 on 2 May 2023) FY2022: 11.5 MtCO2-e | FY2023: 13.0 MtCO2-e | FY2024: 14.3 MtCO2-e May 2023). The remaining categories have not been adjusted due to their immateriality to our – Performance, adjusted: FY2020: 6.6 MtCO2-e | FY2021: 7.2 MtCO2-e |    long-term net zero goal FY2022: 7.1 MtCO2-e | FY2023: 6.4 MtCO2-e | FY2024: 6.2 MtCO2-e – Performance, adjusted: FY2020: 352.0 MtCO2-e | FY2021: 356.3 MtCO2-e |    FY2022: 364.1 MtCO2-e | FY2023: 371.6 MtCO2-e | FY2024: 377.0 MtCO2-e 59

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 DefinitionsandkeydetailsforourGHGemissionstargetsandgoalscontinued Table8.4:ValuechainGHGemissions(Scope3emissions)long-termnetzerotargetsandgoaldefinitions,assumptions,adjustmentsandadditionalkeydetailscontinued Value chain long-term net zero goal Shipping long-term net zero target Suppliers long-term net zero target – Target/goal setting method: Set as a point in time, i.e. with the specific date of ‘by CY2050’ to reach the target or goal of net zero, while reflecting the challenges and uncertainty and our inability (as BHP alone) to ensure Scope 3 emission reductions. As a result, the target or goal is not based on a trajectory and does not imply a specific carbon budget, and Scope 3 emissions may fluctuate (with some increases and/or non-linear decreases) during the period before the target or goal date – Target/goal derived using a sectoral decarbonisation approach: No – Processes for reviewing the setting of our target/goal: The Board approves BHP’s significant social, community and sustainability policies (upon recommendation from the Nomination and Governance Committee), including those related to climate change and climate transition planning, public sustainability goals and targets (including for GHG emission reductions). We review our GHG emissions targets and goals as part of the periodic development of an updated CTAP, or more frequently if required – Processes for monitoring progress towards our target/goal: Monitored on a yearly basis through our annual reporting processes, with progress reviewed by management and the Board as part of publication of our annual reporting disclosures, or more frequently if required – Third-party validation of our target/goal: No, but we obtain limited assurance over our externally reported performance against our targets and goal – Carbon budget for our target/goal period: Our targets and goal are not based on trajectories and do not imply specific carbon budgets – Expected progression: Progress towards our targets and goal is expected to be non-linear and affected by organic changes in our production of commodities 60

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our 1.5°C scenario assumptions and the signposts we monitor Table 8.5: Our 1.5°C scenario key assumptions and signposts we monitor Table 8.6: Macroeconomic assumptions and carbon budget in our 1.5°C scenario Signposts we monitor to assess the likelihood of our Our 1.5°C scenario assumptions 1.5°C scenario eventuating Value – Carbon pricing in developing Asia grows significantly from – Carbon pricing in developing countries Population 0.7% compound annual growth rate from CY2021 to CY2050 CY2030 to CY2050 – Country-level policies restricting blast furnace investment Policy – Strong policy pushes to phase out GHG emission-intensive or operations GDP (purchasing power 3% compound annual growth rate from CY2021 to CY2050 steelmaking technologies and introduces incentives to parity) switch to the decarbonised end state Carbon budget 500 GtCO2 from CY2020 to CY2100 – Rapid roll-out of steel decarbonisation technologies – Regional investment, roll-out, and company preferences for Steel synchronised to technical and commercial readiness: steel decarbonisation technologies Global energy-related CO2 Mid-2020s Technology CCUS beginning in mid-2020s; hydrogen-based direct – Technology progress on near zero emissions steelmaking, emissions peak reduced iron from the mid-2030s; and electrolysis ironmaking and supporting infrastructure, such as hydrogen Net zero CO2 emissions CY2050 technologies from the 2040s and bioenergy – Policies incentivise higher scrap metal collection and a – Steel stock-in-use for regions and lifetime of existing capital stock Circularity faster turnover of GHG-emitting capital stock, which leads – Policies and technologies related to the enhanced domestic Table 8.7: Carbon prices in our 1.5°C scenario (January 2023 US$ real per tCO2) to greater global scrap consumption and international trade of scrap materials CY2030 CY2040 CY2050 – Virtually all unabated coal and gas-fired power generation – Country-level policies directed at decarbonising the power and banned at a global level in the 2040s transport sectors Global weighted average Policy 59 142 275 – Countries progressively ban the sale of light and heavy duty (by GHG emissions) internal combustion engine vehicles Australia 70 174 275 – Significant electrification of end-use sectors. Road – Progress made in cost reduction for renewables, lithium-ion transportation fleet is fully decarbonised by CY2050 batteries and nuclear technologies Brazil, Chile, China, Mexico 57 160 275 Technology – Large-scale roll-out of renewables and batteries, with – Battery chemistry technology evolution (cathodes, anodes and Power and Canada 104 228 275 nuclear, long-duration storage, and new power transmission electrolytes) end-use all required for last-mile decarbonisation Emerging and developing electrification 20 84 275 – Higher collection and recovery rates from growing stock – Metals stock-in-use for regions in electrified end-use economies (including India) of electric vehicles, as well as traditional sources of metal technologies; recovery and collection trends scrap (buildings, power cables, internal combustion engine – Substitution and thrifting trends over time Circularity vehicles, consumer durables) – Copper substitution and thrifting occurs due to prices rising materially above the cost curve during periods of supply-demand imbalance – Policy mandates drive demand for sustainable (including – Carbon policy frameworks and the development of nature-low to zero GHG emissions) aviation fuels based carbon credit markets Policy – Ramp-up of carbon pricing leads to more demand of – Policies related to the uptake of bioenergy nature-based carbon avoidance and removal credits – First generation biofuels (e.g. corn, soybean feedstocks) – Bioenergy feedstock evolution grow early on, but are displaced by second generation – Precision agriculture technological development Land use and biofuels (e.g. agricultural waste feedstocks) – Developments that would allow for lower land footprint agriculture Technology – Higher land-use and agriculture productivity required to for the energy transition, such as negative GHG emission accommodate nature-based carbon removals, distributed technologies power sector and growing low to zero GHG emission fuel sectors – Food waste, vegetarianism and veganism assumptions – Behavioural trends as they relate to food waste and Circularity consistent with historical levels vegetarianism and veganism 61

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Our 1.5°C scenario compared to benchmarks Table 8.8: Key metrics in CY2050 in our 1.5°C scenario versus our CY2020 1.5°C scenario and other 1.5°C scenarios Energy requirement (demand) Electrification Hard-to-abates CO2 removals Energy Biomass Energy sector efficiency(EJii Totalfinal Power share Wind Hydrogen share of cumulative CO 2 per unit of Primary energy Total primary of total Electricity and solar Wind and share of total total primary emissions removalsv BECCSii and GDPiii versus. fossil fuel consumption energy finalenergy share of capacity solar share Nuclear share CCUS finalenergy energy (CY2020 to required for DACii (Gt Scenarioi CY2019) demand (EJii) (EJii) demand (EJii) consumption transport (TWii) of power of power (Gtii capture) consumptioniv demand CY2050) 1.5°C capture) BHP 1.5°C FY2024 39% 200 392 615 50% 62% 24.8 72% 7% 8.0 5% 15% 663 163 2.2 (‘our 1.5°C scenario’) BHP VIVID (CY2020)vi 42% 284 407 558 35% 39% 12.2 45% 15% 4.3 2% 16% 596 96 1.3 (‘our CY2020 1.5°C scenario’) LGIM (CY2022) 42% 225 402 583 43% 29% 19.5 69% – 7.3 10% 19% – – – IEA NZE (WEO CY2023) 36% 88 343 541 53% 51% 26.3 71% 8% 7.8 5% 18% 498 2 1.7 IEA NZE (CY2021) 34% 96 337 532 52% 48% 23.7 71% 8% 6.2 10% 19% 464 -36 1.5 NGFS Net Zero avg. (CY2023) 46% 125 413 517 54% 40% 28.3 81% 6% 7.0 7% 19% 536 36 3.8 Shell Sky (CY2023) 46% 200 430 642 50% 38% 25.8 74% 5% 5.9 7% 12% 768 268 1.9 Shell Sky (CY2021) 60% 375 549 828 43% 18% 22.3 48% 10% 5.3 2% 13% 995 495 1.7 BP NZ (CY2023) 34% 116 335 630 51% 44% 20.2 68% 10% 6.0 10% 10% 625 125 1.3 BP NZ (CY2022) 33% 122 351 653 51% 42% 20.9 69% 10% 6.0 8% 10% 639 139 1.2 Equinor Bridges (CY2022) 38% 99 308 446 51% 49% 12.7 65% 8% 6.5 10% 12% 431 -69 2.0 S&P Global CCS (CY2023) 45% 192 376 578 43% 38% 27.1 67% 11% 6.4 9% 14% 630 130 2.5 S&P Global Multitech (CY2023) 42% 110 344 531 43% 38% 28.6 75% 10% 1.2 11% 13% 630 130 0.9 Wood Mackenzie 1.5°C (CY2021) 44% 172 374 481 – 48% 17.3 61% 7% 6.5 13% – 625 125 1.3 BNEF Net Zero Scenario 42% 169 404 558 45% 53% 28.3 76% 9% 7.3 10% 12% 537 37 0.8 IPCC SSP1-1.9 avg. 36% 217 394 508 48% 23% 14.9 63% 8% 8.8 6% 22% 571 71 4.5 IPCC SSP1-2.6 avg. 41% 365 466 591 38% 9% 11.7 52% 7% 5.5 1% 14% 870 370 2.2 IPCC AR6vii Q1 avg. 37% 97 336 458 42% 11% 15.1 41% 3% 3.9 2% 16% 431 -69 1.1 IPCC AR6vii Q2 avg. 45% 140 391 515 50% 21% 22.3 61% 5% 6.3 5% 20% 515 15 3.7 IPCC AR6vii Q3 avg. 49% 195 428 573 54% 28% 30.2 71% 9% 9.3 6% 24% 552 52 5.7 IPCC AR6vii Q4 avg. 54% 287 500 695 62% 38% 40.9 81% 20% 17.8 12% 32% 661 161 11.3 IPCC AR6vii min. 31% 42 243 301 33% 2% 8.2 28% 1% 0 0% 11% 357 -143 0 IPCC AR6vii max. 58% 415 555 808 68% 60% 51.9 96% 29% 23.5 25% 47% 886 386 21.0 Average total sample 42% 182 391 557 48% 36% 22.6 66% 9% 7.0 7% 17% 596 -96 2.8 Median total sample 42% 182 393 558 50% 38% 23.6 69% 8% 6.5 7% 16% 596 -96 2.0 i. All columns refer to output in CY2050 unless otherwise indicated. Blank cells are due to data unavailability. Deltas are percentage points where the data are shares summing to 100 per cent, and otherwise cells show the percentage change. Avg. = average. Min. = minimum. Max. = maximum. Average total sample and median total sample only include most recent scenario update. S&P Global was formerly known as IHS. LGIM = Legal and General Investment Management. IEA = International Energy Agency. NGFS = Network for Greening the Financial System. BNEF = BloombergNEF. IPCC SSP = Intergovernmental Panel on Climate Change Shared Socioeconomic Pathways. IPCC AR = Intergovernmental Panel on Climate Change Assessment Report. ii. EJ is Exajoule; TW is Terawatt; CCUS is carbon capture utilisation and storage; Gt is Gigatonnes; BECCS is biomass plus carbon capture and storage; DAC is direct air capture. iii. GDP is based on what has been reported for particular scenarios; the use of different weighting mechanisms means that the denominators of the efficiency metric are not all directly comparable across scenarios. iv. Only includes gaseous hydrogen in total final energy consumption for ease of comparison. Additional hydrogen-based fuels are included in most scenarios. In IEA NZE, hydrogen’s share grows to 13 per cent of total final energy consumption when aggregating gaseous and liquid hydrogen-based fuels. v. CO2 removals required to stay within a 1.5°C carbon budget. Calculated by subtracting cumulative GHG emissions from the energy sector from CY2020 to CY2050 (for many scenarios, annual GHG emissions are linearly extrapolated from decade intervals). Cumulative GHG emissions are subtracted from the Intergovernmental Panel on Climate Change’s carbon budget of ~500 Gt for 1.5°C for CY2021 to CY2100. Unless explicitly stated in the scenario, we assume non-energy-related GHG emissions linearly decline out to CY2050 in each of the benchmarks. A larger negative number implies the need to remove a greater amount of CO2 from the atmosphere over the forecast period. vi. Refer to the BHP Climate Change Report 2020 available at bhp.com for information about this scenario and its assumptions (referred to in this CTAP as ‘our CY2020 1.5°C scenario’). vii. IPCC AR6 refers to all scenarios from the Intergovernmental Panel on Climate Change Sixth Assessment report that are classified as 1.5ºC with no or limited overshoot. Q1, Q2, Q3 and Q4 refer to the average of each metric quartiles. 62

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Independent assurance report Independent Limited Assurance Report to the Management and Directors of BHP Group Limited Our approach to conducting the review Inherent limitations We conducted this review in accordance with the International Procedures performed in a review (i.e., a limited assurance Auditing and Assurance Standards Board’s International Standard engagement) vary in nature and timing from, and are less in extent Our Conclusion: on Assurance Engagements Other Than Audits or Reviews of than for, a reasonable assurance engagement. Consequently, the Ernst & Young (‘EY’, ‘we’) were engaged by BHP Group Limited (‘BHP’) to undertake a limited assurance engagement as defined by Historical Financial Information (‘ISAE 3000’) and the terms of level of assurance obtained in a limited assurance engagement International Auditing Standards, hereafter referred to as a ‘review’, over the BHP Climate Transition Action Plan 2024. Based on the reference for this engagement as agreed with BHP on 12 March is substantially lower than the assurance that would have been procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe the BHP 2024. That standard requires that we plan and perform our obtained had a reasonable assurance engagement been performed. Climate Transition Action Plan 2024 has not been prepared, in all material respects, in accordance with the Criteria (as defined below). engagement to express a conclusion on whether anything has Our procedures were designed to obtain a limited level of assurance come to our attention that causes us to believe that the CTAP is not on which to base our conclusion and do not provide all the evidence prepared, in all material respects, in accordance with the Criteria, that would be required to provide a reasonable level of assurance. What our review covered (the ‘Subject Matter’) – Reasonableness, including: and to issue a report. While we considered the effectiveness of management’s internal Ernst & Young (‘EY’) was engaged by BHP to provide limited – Transparency – that the CTAP details BHP’s approach to decarbonisation across its publicly stated climate-related Summary of review procedures performed controls when determining the nature and extent of our procedures, assurance over the BHP Climate Transition Action Plan (2024) targets, goals, and commitments A limited assurance engagement consists of making enquiries, our assurance engagement was not designed to provide assurance (‘CTAP’) in accordance with the Criteria (as defined below). primarily of persons responsible for preparing the CTAP and related on internal controls. Our procedures did not include testing controls – Neutrality – that the CTAP neither overstates, nor understates information and applying analytical and other review procedures. or performing procedures relating to checking aggregation or Criteria the impact calculation of data within IT systems. – Defensibility – that BHP’s approach to decarbonisation as set The nature, timing, and extent of the procedures selected depend In preparing the CTAP, BHP applied: on our professional judgement, including an assessment of the The greenhouse gas quantification process is subject to scientific – The Recommendations of the Task Force on Climate-related out in the CTAP is achievable, subject to the assumptions, risk of material misstatement, whether due to fraud or error. The uncertainty, which arises because of incomplete scientific Financial Disclosures limitations and uncertainties described therein, and does not procedures we performed included, but were not limited to: knowledge about the measurement of greenhouse gases. contradict credible external climate scenarios. Additionally, greenhouse gas procedures are subject to estimation – The Task Force on Climate-related Financial Disclosure – Evaluating the suitability of the Criteria and that the Criteria have The standards, recommendations, guidance, rules, BHP documents and measurement uncertainty resulting from the measurement and Recommendations Principles for Effective Disclosures been applied appropriately to the CTAP and principles referenced above in this Criteria section together calculation processes used to quantify emissions within the bounds – The Task Force on Climate-related Financial Disclosure constitute the ‘Criteria’, which is what we assured the CTAP against. – Interviewing select BHP personnel to understand the reporting Guidance on Scenario Analysis for Non-Financial Companies of existing scientific knowledge. process at group, business, asset, and site level, including – The UK Financial Conduct Authority Listing Rule 14.3.24R Key responsibilities management’s processes to identify BHP’s material climate-related Climate-related risk management is an emerging area, and often – BHP Scopes 1, 2, and 3 GHG Emissions Calculation Methodology BHP’s responsibility risks and opportunities for the purposes of identifying existence uses data and methodologies that are developing and subject 2024, as informed by the National Greenhouse and Energy Reporting BHP’s management is responsible for selecting the Criteria, and for and understanding completeness of reported information to a higher degree of uncertainty. The CTAP contains forward (Measurement) Determination 2008 for scope 1 and scope 2 GHG presenting the CTAP in accordance with that Criteria, in all material – Checking the CTAP to understand how BHP’s self-identified looking statements, including climate-related scenarios, targets, data, and the World Resource Institute/World Business Council for respects. This responsibility includes establishing and maintaining material climate-related risks and opportunities are reflected assumptions, climate projections, forecasts, statements of Sustainable Development Greenhouse Gas Protocol: A Corporate internal controls, maintaining adequate records and making within the qualitative disclosures, and considering whether this is future intentions and estimates and judgements that have not yet Accounting and Reporting Standard, including the GHG Protocol: estimates that are relevant to the preparation of the CTAP, such that consistent with the principles specified in the Criteria occurred and may never occur. We do not provide assurance on the Scope 2 Guidance and the Corporate Value Chain Scope 3 achievability of this prospective information. – Reviewing data, information and obtaining explanations, it is free from material misstatement, whether due to fraud or error. Accounting and Reporting Standard for scope 3 GHG data. undertaking analytical procedures, and reperforming calculations Other matters In preparing the CTAP, BHP also used the below list of principles to EY’s responsibility and independence to support the climate-related performance data and statements We have not performed assurance procedures in respect of any inform the approach to disclosing its 1.5°C scenario analysis; and Our responsibility is to express a conclusion on the CTAP based on included within the CTAP information relating to prior reporting periods, including those the assumptions and claims supporting BHP’s planned actions and our review. – Reviewing information on a sample basis, based on our presented in the CTAP. climate-related goals and targets: professional judgement, to support BHP’s stated actions towards We have complied with the independence and relevant ethical BHP’s publicly stated climate-related targets and goals Use of our Assurance Report – Completeness – requirements, which are founded on fundamental principles of – that the assumptions, approach and inputs forming the basis of integrity, objectivity, professional competence and due care, – Reviewing evidence underpinning BHP’s portfolio disclosures We disclaim any assumption of responsibility for any reliance on BHP’s 1.5°C scenario analysis, as presented within the CTAP, confidentiality and professional behaviour. including checking that the material assumptions and inputs this assurance report to any persons other than the management do not omit relevant, well-established and publicly available into BHP’s 1.5°C scenario analysis are substantiated and are and the directors of BHP, or for any purpose other than that for The firm applies Auditing Standard ASQM 1 Quality Management inputs that could reasonably be expected to affect decisions of benchmarked to credible sources, and where they deviate, are which it was prepared. for Firms that Perform Audits or Reviews of Financial Reports the intended users made on the basis of that CTAP information transparently justified and Other Financial Information, or Other Assurance or Related – that the assumptions, approach and inputs forming the basis Services Engagements, which requires the firm to design, – Reviewing quantitative and qualitative information within the of BHP’s planned actions and climate-related goals and implement and operate a system of quality management including CTAP for consistency and alignment across the CTAP and across targets, as presented within the CTAP, do not omit relevant, policies or procedures regarding compliance with ethical BHP’s annual reporting disclosures. well-established and publicly available inputs that could requirements, professional standards and applicable legal and We believe that the evidence obtained is sufficient and appropriate Ernst & Young Mathew Nelson reasonably be expected to affect decisions of the intended regulatory requirements. to provide a basis for our limited assurance conclusion. Melbourne, Australia Partner users made on the basis of that CTAP information, and 27 August 2024 incorporate BHP’s decarbonisation approach across its self-identified climate related risks and opportunities. A member firm of Ernst & Young Global Limited A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Liability limited by a scheme approved under Professional Standards Legislation 63 

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Notes 1 Includes achievement of the following targets set by BHP: Reduction in the GHG emissions intensity of our 8 The indicators presented (primary reactor technology readiness, raw material flexibility, steel grade flexibility, operations by 10 per cent between FY1995 and FY2000; reduction in the GHG emissions intensity of our and integration with existing plants) are the key factors that influence the timing, speed, and scale at which operations by 5 per cent between FY2002 and FY2007; maintaining operational GHG emissions below our these technologies could propagate through the steel sector. Reactor technology readiness demonstrates FY2006 baseline by FY2017, while growing our business; and the target described in endnote 2. the technologies already established (blast furnace and electric arc furnace indicated by the full dark blue bar) relative to those that are emerging and are yet to achieve commercial readiness (electric smelting 2 Our operational GHG emissions short-term target was, by FY2022, to maintain operational GHG emissions furnace and electrolysis). These factors influence expected time to market. Raw material flexibility indicates (Scopes 1 and 2 emissions from our operated assets) at or below FY2017 levels while we continue to grow whether the process route can use variable iron ore and scrap grades (indicated by the full dark blue bar) or our business. We exceeded this target with a 15 per cent decrease in operational GHG emissions from our is sensitive to ore and scrap quality (for example electric arc furnace). Steel grade flexibility indicates whether adjusted FY2017 baseline. The FY2017 baseline was adjusted for divestments and methodology changes. the process route can be used to produce a range of steel grades (such as the blast furnace and electric 3 With widespread adoption expected post-CY2030. smelting furnace) or produces a narrower range of products (such as the electric arc furnace). We expect technologies with wider raw material and steel grade flexibility to be more attractive options for steelmakers. 4 From a CY2008 baseline, reflecting International Maritime Organisation objectives for the shipping industry. Integration with existing plants reflects the ability for these process routes to use or be retrofitted to existing steelmaking infrastructure. 5 Future GHG emission estimates are based on current annual business plans. Includes former OZ Minerals The blast furnace process route GHG emissions intensity ‘today’ value has been calculated using a baseline Australian assets and plans. Excludes Blackwater and Daunia (divested on 2 April 2024). FY2020 to FY2024 reference of 2.2 tonnes of CO -e per tonne of crude steel, as sourced from IEA Iron and Steel Technology 2 GHG emissions data has been adjusted for acquisitions, divestments and methodology changes. ‘Other Roadmap (October 2020). The ‘end state’ value assumes a blast furnace basic oxygen furnace steel plant changes’ refers to changes in GHG emissions from energy consumption other than electricity. ‘Organic with electrolytic hydrogen injection, top gas recycling and CCUS applied to key point sources (coke ovens growth’ represents increase in GHG emissions associated with planned activity and growth at our operations. underfiring, blast furnace hot stoves and on-site power plant), utilising raw materials typically available in ‘Other’ refers to GHG emissions from fugitive CO2 and methane emissions, natural gas, coal and coke, fuel Asia markets and a 15 per cent scrap rate in the basic oxygen furnace. oil, liquefied petroleum gas or other sources. GHG emissions calculation methodology changes may affect the information presented in this chart. ‘Range of uncertainty’ refers to higher risk options currently identified The electric arc furnace route GHG emissions intensity ‘today’ value is sourced from an average of a sample that may enable faster or more substantive decarbonisation, but which currently have a relatively low of natural gas-based direct reduced iron electric arc furnace sites utilising up to 25 per cent scrap in CY2023, technology readiness level or are not yet commercially viable. as well as the CRU Steel Cost Model and BHP analysis. 6 Future GHG emissions estimates are based on current annual business plans. Includes former OZ Minerals All other GHG emissions intensity values are sourced from BHP analysis. Australian assets and plans. Excludes Blackwater and Daunia (divested on 2 April 2024). FY2020 to FY2024 GHG emissions data has been adjusted for acquisitions, divestments and methodology changes. 9 Wood Mackenzie analysis. Seaborne iron ore exports containing greater than 67.5 per cent Fe and less than ‘Organic growth with no GHG emissions reduction’ represents business as usual GHG emissions forecast 3.5 per cent gangue impurities (alumina and silica). without abatement projects. ‘Our GHG emissions reduction pathway’ represents planned decarbonisation activities to reach our operational GHG emissions medium-term target and long-term net zero goal. ‘Range 10 Distinct industry partners refers to individual corporate entities participating in our steelmaking projects to of uncertainty’ refers to higher risk options currently identified that may enable faster or more substantive support GHG emissions intensity reduction. decarbonisation, but which currently have a relatively low technology readiness level or are not yet commercially viable (noting that activities to FY2030 comprise our projected pathway and activities beyond 11 Global steel production sourced from World Steel in Figures 2024, World Steel Association. FY2030 comprise our potential pathway, reflecting the degree of certainty in our plans). ‘Negative GHG 12 Estimated co-investment includes the funding we committed from FY2020 to FY2024 (refer to endnote 13 emission solutions’ include carbon credits (avoidance, reductions or removals), or other technologies that for more information) and our additional funding planned from FY2025 to FY2029 (refer to endnote 14 for result in GHG emission reductions; this shows the requirement in order to reach net zero if decarbonisation more information), totalling around US$215 million. It also includes our estimate of actual and anticipated at the lower line of the ‘range of uncertainty’ were achieved (but does not reflect probability). GHG emissions funding and in-kind contributions from strategic partners for a number of the projects under our steelmaking calculation methodology changes may affect the information presented in this chart. ‘Fugitives’ (methane decarbonisation program from FY2020 to FY2029 totalling around US$205 million. Where all the partners emissions) estimated in accordance with the Australian National Greenhouse and Energy Reporting (including BHP) to a program project have agreed to share costs equally, our estimate assumes that each measurement methodology and does not reflect the tendency for methane density to increase as coal mines of our strategic partners has contributed or will contribute equivalently (through funding and/or in-kind deepen, due to current uncertainty with respect to future opportunities to manage methane at our BMA contribution) to our committed and budgeted funding for that project. The estimate also assumes projects mines. Western Australia Nickel milestones have been removed to reflect the temporary suspension of that require final approval at a future tollgate will be approved by all partners. operations, and a Jansen potash project milestone has been removed to reflect deferral of studies. 7 Samarco Sustainability Report 2023, available at samarco.com. 13 Funding committed by BHP in the past five years is made up our investments and contractual funding commitments for our steelmaking decarbonisation program from FY2020 to FY2024, including BHP Venture investments, research and development funding and collaborative partnerships (such as with our steelmaking customers). 64

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Notes continued 14 Funding planned by BHP in the next five years is our budgeted funding for our steelmaking decarbonisation 20 Energy-related CO2 emissions only. It does not include CO2 emissions from agriculture, forestry and other program from FY2025 to FY2029 but excluding funding we have contractually committed but not yet spent land use. (refer to endnote 13 for more information). 21 Pathways giving at least 50 per cent probability based on current knowledge of limiting global warming to 15 GHG emissions intensity reduction/abatement potential has been calculated relative to a baseline reference below 1.5°C are classified as ‘no overshoot’. Page 24 of Summary for Policymakers. In: Global Warming of of 2.2 tonnes of CO2-e per tonne of crude steel, as sourced from IEA Iron and Steel Technology Roadmap 1.5°C. IPCC, CY2018. GHG emissions in our 1.5°C scenario are constrained to a carbon budget of 500Gt (October 2020). CO2-e (on a net GHG emissions basis) between CY2020 and CY2050, and is modelled to have a global warming trajectory that temporarily overshoots 1.5°C before returning to below 1.5°C by CY2100, on the 16 Technology readiness levels (TRLs) are a globally accepted and widely used metric for benchmarking, basis of the median of probabilities. tracking progress and supporting development of technologies through from basic concept (i.e. TRL 1) to an actual, fully working system that has performed successfully across the full range of expected operating 22 Our 1.5°C scenario assumes the sectoral total GHG emissions in CY2050 compared to CY2021 declines conditions (i.e. TRL 9). A technology with a high TRL does not mean it has been commercially deployed. as follows: For the power sector there is a decline of 105 per cent; for the transport sector there is a decline We assess TRLs as a way of measuring the maturity of the technologies that form part of our steelmaking of 98 per cent; for the building sector there is a decline of 57 per cent; and for all other industry there is a decarbonisation program. decline of 74 per cent. 17 The International Maritime Organisation has not defined ‘zero’ or ‘near zero’, although we consider this to 23 We consider an industry association membership to be material if: (1) our annual base membership fee is mean technologies, fuels and/or energy sources capable of 90 per cent (‘near zero’) to 100 per cent (‘zero’) equal to or greater than US$100,000; and/or (2) there is significant stakeholder interest in the advocacy of lower GHG emissions intensity (gCO2-e/joule) on a well-to-wake basis compared to conventional fossil fuels the association (as determined by whether the association was listed on InfluenceMap’s ranking of industry used in shipping. associations). 18 Biodiesel GHG emission reduction calculations based on certified fuel product with the fuel certificates 24 Engagements on climate policy are as at the publication of this CTAP on 27 August 2024. provided by biodiesel suppliers. 25 Table SPM.1, Summary for Policymakers. In: Climate Change 2021: The Physical Science Basis. 19 Estimated co-investment for the period from FY2021 to FY2024 includes our spend on initiatives under our Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate shipping decarbonisation strategy and assumed third-party spend. The vast majority of our estimated co- Change. IPCC, CY2021. investment figure is made up of our actual and committed future spend on the Global Centre for Maritime Decarbonisation (GCMD) and the actual and committed future spend on the GCMD by its other five founding 26 Figure 8, Nationally determined contributions under the Paris Agreement: Synthesis report by the secretariat, partners and the Singapore Maritime and Port Authority, together with assumed third-party spend based on United Nations Framework Convention on Climate Change, CY2023. our estimated value of five new dual-fuelled LNG chartered vessels and one wind propulsion device of the 27 In accordance with the BHP Risk Framework, the Maximum Foreseeable Loss (MFL) is the estimated impact kind retrofitted to a BHP-chartered vessel in a trial with Pan Pacific Copper and Norsepower. We estimated (including financial, health and safety, environmental, community or reputational) to BHP in a worst-case the value of the five dual-fuelled LNG chartered vessels with reference to the resale value (as a proxy for new scenario without regard to probability and assuming all controls, including insurance and hedging contracts, build cost) at the date of the maiden voyage of the first of the five vessels by BHP, as sourced from an external are ineffective. shipping research portal. 28 Maximum low and high values found across China, India, European Union, United States, Japan, Korea, Indonesia, South Africa, Other Latin and Central America and Other Asia. 65

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Glossary Abbreviations Terms ACCU Australian Carbon Credit Unit IAR Industry Association Review ACCU Scheme Assets (in relation to BHP) AR Assessment Report IEA International Energy Agency A scheme established under the Australian A set of one or more geographically proximate Commonwealth Carbon Credits (Carbon Farming operations (including open-cut mines and BMA BHP Mitsubishi Alliance IMO International Maritime Organisation Initiative) Act 2011 and Carbon Credits (Carbon underground mines). Assets include our operated Farming Initiative) Rule 2015. assets and non-operated assets. BMC BHP Mitsui Coal IPCC Intergovernmental Panel on Climate Change Adjusted/unadjusted (with respect to GHG Base case CH4 Methane emissions data) One of three planning cases in our planning range, ISSB International Sustainability CO2 Carbon dioxide Adjusted means calculated to present the GHG being the ‘most likely’ base case in our planning Standards Board CO2-e Carbon dioxide equivalent LNG Liquified natural gas emissions data for a time period (such as a baseline range. Refer to the definition of our planning range. year or reporting year) as though relevant changes CCS Carbon capture and storage took effect from the start of that period even though Baseline/baseline year (with respect to GHG MCA Minerals Council of Australia emissions targets and goals) they occurred during or not until after the end of the CCUS Carbon capture, utilisation and storage A year used as a basis to compare and measure MtCO2-e Million tonnes of carbon dioxide equivalent period. Unless expressly stated otherwise, relevant performance of subsequent years. CDP Cash and Deferred Plan changes are all acquisitions, divestments and/or GHG N2O Nitrous oxide emission calculation methodology changes. CEO Chief Executive Officer BHP NDC Nationally Determined Contribution For example, when we adjust the FY2020 baseline BHP Group Limited and its subsidiaries. CMIP Coupled Model Intercomparison year for our operational GHG emission medium-term NF3 Nitrogen trifluoride Project Phase target and long-term net zero goal to compare our Bioenergy NGER National Greenhouse and adjusted FY2024 performance data against it: Energy produced from renewable biological sources, CSIRO Commonwealth Scientific and Industrial Energy Reporting such as biomass. Research Organisation 1. the FY2020 data is presented with our Scopes NSWEC New South Wales Energy Coal Biofuel/biodiesel CTAP Climate Transition Action Plan 1 and 2 emissions for operated assets that have PFC Perfluorocarbon been acquired or divested by BHP added or A fuel, usually a liquid fuel, produced from renewable ELT Executive Leadership Team removed (respectively), and applying methodology biological feedstock sources, such as plant material, SEC Securities and Exchange Commission changes that took effect, between 1 July 2019 and vegetation or agricultural waste. ESG Environmental, Social, Governance SF Sulphur hexafluoride 30 June 2024 GCMD Global Centre for Maritime 6 Biomass 2. the FY2024 data is then presented as though any Decarbonisation SSP Shared Socio-economic Pathway Plant material, vegetation, or agricultural waste used acquisitions, divestments and/or methodology as a fuel or energy source. This could be in solid, GDP Gross Domestic Product TRL Technology readiness level changes that occurred during the year took effect liquid or gaseous form. from the start of the year GHG Greenhouse gas WAIO Western Australia Iron Ore This enables a ‘like for like’ comparison that provides Carbon budget (for BHP) GWP Global warming potential the information most relevant to assessing progress A total quantity of GHG emissions from FY2020 to HFC Hydrofluorocarbon against our GHG emissions targets and goals. FY2030 equivalent to our cumulative operational Unadjusted means calculated to present the GHG emissions (Scopes 1 and 2 emissions from our GHG emissions data for a reporting year so that operated assets) being at or below a hypothetical any relevant changes that occurred during the straight line between our adjusted baseline in FY2020 year (including acquisitions, divestments and/or and a 30 per cent reduction to that baseline in methodology changes) are applied only from the date FY2030, despite our pathway being non-linear. they took effect. For target, how refer our to carbon Table budget 8.2 in Definitionsandkeydetails relates to our medium-term Adjustments (with respect to our GHG emissions earlier for our in GHG this section emissions targets and goals on page 57, targets and goals) Calculations to present GHG emissions data on an Carbon budget (for the global economy, transition adjusted basis. or future, or similar) The total net amount of greenhouse gases measured in CO2-equivalent tonnes that can be emitted while limiting global warming to a specified level. 66

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Glossary continued Carbon capture Carbon dioxide equivalent Energy (in relation to BHP) Global warming potential The process of separation of carbon dioxide from The universal unit of measurement to indicate the All forms of energy products where ‘energy products’ A factor describing the radiative forcing impact industrial and energy-related sources. global warming potential of each greenhouse gas, means combustible fuels, heat, renewable energy, (degree of harm to the atmosphere) of one unit of expressed in terms of the global warming potential electricity or any other form of energy from operations a given greenhouse gas relative to one unit of CO2. Carbon capture and storage of one unit of carbon dioxide. It is used to evaluate that are owned or controlled by BHP. The primary BHP currently uses GWP from the Intergovernmental The process of carbon capture and the subsequent releasing (or avoiding releasing) different greenhouse sources of energy consumption come from fuel Panel on Climate Change Assessment Report 5 transport of captured carbon to a storage location gases against a common basis. consumed by haul trucks at our operated assets, as well (AR5) based on a 100-year timeframe. where it is isolated from the atmosphere long-term. Climate Transition Action Plan (CTAP) as purchased electricity used at our operated assets. Goal (for BHP with respect to GHG emissions) Refer to the definition of carbon capture. Executive Leadership Team ‘This Climate Transition Action Plan’ or ‘this CTAP’ An ambition to seek an outcome for which there is no Carbon capture, utilisation and storage refers to this document, published on 27 August 2024. The team that directly reports to the Chief Executive current pathway(s), but for which efforts are being or The process of carbon capture and subsequently Our ‘previous Climate Transition Action Plan’, ‘previous Officer and is responsible for the day-to-day will be pursued towards addressing that challenge, either the use of captured carbon to create other CTAP’ or ‘Climate Transition Action Plan 2021’ refers to management of BHP and leading the delivery of our subject to certain assumptions or conditions. Such commercial products or services or the transport our CTAP published on 14 September 2021. strategic objectives. efforts may include the resolution of existing potential of captured carbon to a storage location where it is Co-investment Fugitive methane emissions or emerging pathways. isolated from the atmosphere long-term. Refer to the Goals of the Paris Agreement definition of carbon capture. Our estimation of the potential combined impact Methane emissions that are not physically controlled of funding by us and funding and/or in in-kind but result from the intentional or unintentional The central objective of the Paris Agreement is its Carbon credit contributions from third parties under our steelmaking releases of methane from coal mining. long-term goal to hold global average temperature The reduction or removal of carbon dioxide, or decarbonisation program and/or as a consequence of Functions increase to well below 2°C above pre-industrial levels the equivalent amount of a different greenhouse our shipping strategy. These figures seek to illustrate and pursue efforts to limit the temperature increase gas (GHG), using a process that measures, tracks the opportunity to leverage our funding and approach Functions operate along global reporting lines to to 1.5°C above pre-industrial levels. and captures GHGs to compensate for an entity’s for broader impact. They are not forecasts and rely on provide support to all areas of the organisation. Greenhouse gas GHG emissions exuded elsewhere. Credits may be estimation that is limited by available information and Functions have specific accountabilities and deep generated through projects in which GHG emissions our assumptions. expertise in areas such as finance, legal, governance, For BHP reporting purposes, these are the aggregate are avoided, reduced, removed from the atmosphere Electrolytic hydrogen/ammonia technology, human resources, corporate affairs, anthropogenic carbon dioxide equivalent emissions or permanently stored (sequestration). Carbon credits health, safety and community. of carbon dioxide (CO2), methane (CH4), nitrous oxide are generally created and independently verified in Hydrogen produced by splitting water into hydrogen (N2O), hydrofluorocarbons (HFCs), perfluorocarbons accordance with either a voluntary program or under a and oxygen using renewable or other low to zero Future-facing commodity (PFCs) and sulphur hexafluoride (SF6). Nitrogen regulatory program. The purchaser of a carbon credit GHG emissions electricity, commonly referred to as A commodity that BHP determines to be positively trifluoride (NF ) GHG emissions are currently not 3 can ‘retire’ or ‘surrender’ it to claim the underlying ‘green hydrogen’. leveraged in the energy transition and broader global relevant for BHP reporting purposes. GHG emissions reduction towards their own GHG emissions reduction response to climate change, with potential for decades- in this CTAP are presented in tonnes CO -e or its Ammonia produced by synthetically combining 2 targets or goals or to meet legal obligations, which is long demand growth to support emerging megatrends multiples, unless otherwise stated. nitrogen with low to zero GHG emission hydrogen like electrification and decarbonisation. Currently, the also referred to as carbon offsetting or offsetting. (ammonia synthesis) using renewable or other low to major commodities in the BHP portfolio that qualify Intergovernmental Panel on Climate Change We define regulatory carbon credits to mean carbon zero GHG emissions electricity commonly referred to within this criterion include copper, nickel and potash. The United Nations body for assessing the science credits used to offset GHG emissions for regulatory as ‘green ammonia’. GHG Protocol related to climate change. compliance in our operational locations (such as the Emission factor Legacy assets Australia’s Safeguard Mechanism). Globally recognised and standardised frameworks We define voluntary carbon credits to mean carbon A factor that converts activity data into greenhouse to measure and manage greenhouse gas emissions Those BHP operated assets, or part thereof, located credits generated through projects that reduce gas emissions data (e.g. kgCO2-e emitted per GJ from private and public sector operations, value in the Americas that are in the closure phase. or remove GHG emissions outside the scope of of fuel consumed, kgCO2-e emitted per KWh of chains and mitigation actions. regulatory compliance (including Australian Carbon electricity used). Credit Units not used for regulatory compliance). Carbon neutral Making or resulting in no net release of GHG emissions into the atmosphere, including as a result of offsetting. Includes all those greenhouse gas emissions as defined for BHP reporting purposes. 67

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Glossary continued Lower carbon feedstock/fuel (for steelmaking) Nature-based Operated assets Paris Agreement A steelmaking reductant feedstock and/or fuel source Actions that protect, sustainably manage or restore Operated assets are our assets (including those An agreement between countries party to the United capable of lower CO2 emissions intensity than the use natural or modified ecosystems. under exploration, projects in development or Nations Framework Convention on Climate Change of steelmaking coal in the blast furnace process route execution phases, sites and operations that are to strengthen efforts to combat climate change and (e.g. hydrogen, coke syngas, biomass and recycled Near zero emissions (for steelmaking or closed or in the closure phase) that are wholly owned adapt to its effects, with enhanced support to assist fuels). The degree of emissions intensity reduction ironmaking) and operated by BHP or that are owned as a BHP- developing countries to do so. varies significantly by source. 0.40 tonnes of CO2-e per tonne of crude steel for operated joint venture. References in this CTAP to a Physical risk/physical climate-related risk Lower GHG emission(s) (for shipping) 100 per cent ore-based production (no scrap), as ‘joint venture’ are used for convenience to collectively defined by the International Energy Agency (IEA) describe assets that are not wholly owned by BHP. Acute risks that are event-driven, including increased Capable of between 5 per cent to 80 per cent lower and implemented in ResponsibleSteel International Such references are not intended to characterise the severity and frequency of extreme weather events GHG emissions intensity (gCO2-e/joule) on a well-to- Standard V2.0 (‘near zero’ performance level 4 legal relationship between the owners of the asset. and chronic risks resulting from longer-term changes wake basis compared to conventional fossil fuels used threshold). IEA (2022), Achieving Net Zero Heavy Operational GHG emissions in climate patterns. in shipping. Industry Sectors in G7 Members, IEA, Paris, License: CC BY 4.0, which also describes the boundary for the Scope 1 emissions and Scope 2 emissions from our Planning cases Lower GHG emission(s) (other than shipping emissions intensity calculation (including in relation to operated assets. The three unique independent planning cases: a fuels) upstream emissions). ‘most likely’ base case, and an upside case and Capable of lower absolute GHG emissions or GHG Operations (for BHP and the mining sector) downside case that provide the boundaries of our emissions intensity than the current state or the Net negative Open-cut mines, underground mines and processing planning range. conventional or incumbent technology, as applicable. A state in which more greenhouse gases (as defined facilities which, in the case of BHP are within our in this Glossary) are removed from the atmosphere operated assets. Power purchase agreement Low to zero GHG emission(s) (for shipping) An agreement between a vendor and purchaser than are going into the atmosphere. Capable of between 81 per cent to 100 per cent lower Organic changes/production growth for the sale of electricity, which may be wholly or GHG emissions intensity (gCO2-e/joule) on a well- Net zero (for a BHP GHG emissions target, goal or Changes that comes from a company’s existing asset partially renewable or other low to zero GHG emission to-wake basis compared to conventional fossil fuels pathway, or similar) base. energy and either physically supplied directly to the used in shipping. Includes the use of carbon credits as governed by our purchaser or for supply from an electricity grid. approach to carbon offsetting. Our 1.5°C scenario Low to zero GHG emission(s) (for energy Our 1.5°C scenario we developed in FY2024 and Reference year (for a BHP GHG emissions target products other than shipping fuels) presented in this CTAP. or goal) Our approach to carbon offsetting is available at Capable of between 90 per cent to 100 per cent lower bhp.com/climate A year used to track progress towards GHG GHG emissions intensity during generation and/or For against the key the CY2020 metrics comparing 1.5°C scenario, our 1.5°C refer scenario to Our 1.5°C emissions targets and goals. It is not a baseline year combustion (as applicable) compared to conventional Net zero (for industry sectors, the global scenario compared to benchmarks on page 62, earlier for GHG emissions targets and goals. fossil fuel generation and/or combustion. economy, transition or future, or similar) in this section Scope 1 emissions Maladaptation A state in which the greenhouse gases (as defined in Our CY2020 1.5°C scenario Direct greenhouse gas emissions from operations that Where adaptation measures intended to create this Glossary) going into the atmosphere are balanced A 1.5°C scenario we developed in CY2020 and are owned or controlled by the reporting company. For resilience to physical climate-related risk by removal out of the atmosphere. presented in the BHP Climate Change Report 2020. BHP, these are primarily greenhouse gas emissions unintentionally have the opposite of the intended Non-operated asset/non-operated joint venture from fuel consumed by haul trucks at our operated effect, increasing vulnerability or causing new Non-operated assets/non-operated joint ventures are For scenario the key against metrics our comparing 1.5°C scenario our CY2020 (presented 1.5°C in this assets, as well as fugitive methane emissions from vulnerabilities or other harmful impacts. our interests in assets that are owned as a joint venture CTAP), refer to Our 1.5°C scenario compared to coal production at our operated assets. benchmarks on page 62, earlier in this section Market-based method/reporting (for GHG but not operated by BHP. References in this CTAP to a Scope 2 emissions emissions data) ‘joint venture’ are used for convenience to collectively Our planning range Indirect greenhouse gas emissions from the Scope 2 emissions based on the generators (and describe assets that are not wholly owned by BHP. Such Our long-term forecast for demand, supply and price generation of purchased or acquired electricity, therefore the generation fuel mix from which the references are not intended to characterise the legal across our commodities. It is comprised of three steam, heat or cooling that is consumed by operations reporter contractually purchases electricity and/or is relationship between the owners of the asset. unique independent planning cases: a ‘most likely’ that are owned or controlled by the reporting directly provided electricity via a direct line transfer). Offsetting (with respect to GHG emissions) base case, and an upside case and downside case company. BHP’s Scope 2 emissions have been that provide the range’s boundaries. calculated using the market-based method unless Mining peers The use of carbon credits. Refer to the definition of carbon credit. otherwise specified. Other major diversified mining companies. 68

Operational Value chain Climate policy Physical risk Equitable change Enabling Additional BHP Contents Introduction GHG emissions GHG emissions Portfolio advocacy and adaptation and transition delivery information Climate Transition Action Plan 2024 Glossary continued Scope 3 emissions Sustainability (including sustainable All other indirect greenhouse gas emissions (not and sustainably) included in Scope 2 emissions) that occur in the We describe our approach to sustainability and reporting company’s value chain. For BHP, these are its governance in the BHP Annual Report. Our primarily greenhouse gas emissions resulting from references to sustainability (including sustainable and our customers using and processing the commodities sustainably) in this CTAP and our other disclosures we sell, as well as upstream emissions associated do not mean we will not have any adverse impact with the extraction, production and transportation of on the economy, the environment or society, and the goods, services, fuels and energy we purchase do not imply we will necessarily give primacy to for use at our operations; emissions resulting from the consideration of, or achieve any absolute outcome transportation and distribution of our products; and in relation to, any one economic, environmental or operational greenhouse gas emissions (on an equity social issue (such as zero GHG emissions or other basis) from our non-operated joint venture assets. environmental effects). Short-term/medium-term/long-term (for Target (for BHP with respect to GHG emissions) a BHP GHG emissions target or goal) An intended outcome in relation to which we have Short-term refers to the target we set for our identified one or more pathways for delivery of operational GHG emissions between FY2018 that outcome, subject to certain assumptions and FY2022. or conditions. Medium-term refers to our current operational Task Force on Climate-Related Financial GHG emissions target for FY2030 and value Disclosures chain GHG emissions goals for CY2030. The task force created by the Financial Stability Long-term refers to our current operational GHG Board to improve and increase reporting of emissions goal and value chain GHG emissions climate-related financial information, which has goals and targets for CY2050. released recommendations designed to help Short-term/medium-term/long-term (with companies provide better information to investors references other than with respect to a and others about how they think about and assess BHP GHG emissions target or goal) climate-related risks and opportunities. Transition Plan Taskforce Disclosure Framework Short-term is defined as zero to two years, medium-term is defined as two to five years, and long-term is Disclosure framework developed by the UK Transition defined as five to 30 years (or longer in certain cases). Plan Taskforce that aims to be the gold standard for Social value robust and credible transition plan disclosures. Transition risk (climate-related) Our positive contribution to society through the creation of mutual benefit for BHP, our shareholders, Risks that arise from existing and emerging policy, Indigenous partners and the broader community. regulatory, legal, technological, market and other Steelmaking coal societal responses to the challenges posed by climate change and the transition to a net zero Metallurgical coal of a sufficient high quality (grade) global economy. that it is suitable for use in steelmaking. Value chain GHG emissions Structural GHG emissions abatement Scope 3 emissions in our reported GHG emissions Actions taken at a source of GHG emissions to avoid inventory. generating GHG emissions. For BHP, this includes Well-to-wake contractual power purchase agreements. Inclusive of the GHG emissions across the entire process of fuel production, delivery and use onboard vessels. 69

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.