Following the unprecedented drop in international financial exercise attributable to Covid-19, BHP Group CEO Mike Henry sees a restoration on the horizon, though it’s going to take a couple of years.”We’re anticipating there’s going to be a pointy contraction within the international financial system over this calendar yr,” he mentioned Wednesday on CNBC’s “Squawk on the Street.” “We then count on there to be a reasonably sharp uptick once more subsequent yr, so we foresee it taking a couple of yr for the world to get again to the degrees of financial exercise that existed pre-Covid, and possibly two or three years for the world to get again absolutely on the monitor that it could have been on if not for for Covid-19,” he added.Because the world’s largest miner, BHP is closely uncovered to financial booms and busts. One vibrant spot is China, the place Henry mentioned a “fairly strong V-shaped restoration” is underway.On Monday spot iron ore costs rose to their highest degree since 2014, amid an infrastructure growth in China, in line with commodity price reporting company Argus.In July the nation imported a report 112.65 million metric tons of iron ore — a 24% year-over-year soar — as the federal government continues to inject cash into the financial system. “The [Chinese] authorities has stepped in with some stimulus that we count on goes to create additional momentum by to subsequent calendar yr. So issues are wanting fairly optimistic and fairly resilient,” Henry mentioned.BHP’s outcomes for the yr ending June 30, which had been launched on Aug. 18, confirmed that iron ore accounted for 48% of the corporate’s income. Given the comparatively high-margin nature of the section, it made up 64% of the corporate’s earnings earlier than curiosity, taxes, depreciation and amortization. Local weather motion ‘good’ for BPESG investing, or when an organization’s environmental, social and governance elements are thought-about alongside conventional monetary metrics, is rising in recognition. Throughout the second quarter international belongings underneath administration in sustainability-focused funds topped $1 trillion for the primary time, in line with knowledge from Morningstar.A part of BHP’s operation focuses on coal, that means environmentally acutely aware buyers may shun the stock. However Henry mentioned that on the finish of the day motion on local weather change is sweet for the corporate since it’s going to construct a extra resilient world financial system. Moreover, he famous that the corporate is without doubt one of the world’s largest suppliers of nickel, which is utilized in batteries for electrical autos.BHP has mentioned that it plans to be carbon impartial by 2050, however has but to element a plan of the way it will attain that concentrate on.Shares of BHP are flat this yr.Subscribe to CNBC PRO for unique insights and evaluation, and stay enterprise day programming from world wide.