Australia must pay close attention to tax incentives and business-friendly measures offered by countries such as Canada if it wants to compete more effectively for global investment, BHP chairperson Ross McEwan said on Thursday.

Speaking at BHP's annual general meeting, McEwan said, "Make no mistake, Australia must compete for capital if it wants to win – nationally, and in every State."

Canada had recently announced a "Productivity Mega Deduction", allowing businesses to immediately deduct the full cost of eligible capital investments, he said, adding that the country also allows miners to fully deduct mine development costs in the year they are incurred.

Such measures lower the tax burden on new investments, improve returns and give companies greater confidence to commit capital, McEwan said, describing Canada's approach as a practical example of how government policy can boost productivity and attract investment.

He said similar examples could be found in other countries where miner BHP invests, including Argentina and Chile.

"Australia should pay close attention to that."

BHP will face an investor campaign over the next year to set a 2040 emissions reduction target, Australasian Centre for Corporate Responsibility CE Brynn O'Brien said at the AGM.

BHP aims to cut its operational greenhouse gas emissions by at least 30% from 2020 levels by 2030 and has a longer-term goal of reaching net zero by 2050.

O'Brien urged the company to commit to setting a 2040 target within the next year, but McEwan declined, saying BHP was focused on advancing growth projects and reducing its reliance on diesel.

McEwan also said there would come a time when BHP will take a more serious look at uranium, but for now the market remained "too small" for the miner to pursue as a core commodity.

"There'll be a time when we'll have a look at that and say, is that commodity big enough for us to be involved in it as an asset that we are focusing on? At this stage, the answer to that is still no," he said.

BHP currently produces around 5% of global uranium supply from its South Australian operations.