On 2 September 2020, BHP announced that it had "signed a firm renewable power purchasing agreement to meet half of its electricity needs across its Queensland Coal mines from low emissions sources, including solar and wind. The agreement will help BHP reduce emissions from electricity use in its Queensland operations by 50% by 2025, based on FY2020 levels."

(a) Discuss the demand and supply implications for electricity and coal from this announcement. 


(b) Discuss how the above announcement might impact investor sentiment towards BHP as well as other commodity companies listed on the ASX. 

Answer rating: 100% (QA)

a This announcement has largely positive implications for electricity and coal demand and supply Thi... View the full answer