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BHP releases its FY2017 Annual Report

BHP today released its 2017 Annual Report to shareholders, together with the 2017 Sustainability and Economic Contribution reports, which detail performance against the company’s health, safety, environment and community (HSEC) measures, as well as total economic contribution in Australia and around the world.

Chief Executive Officer, Andrew Mackenzie, said these annual publications are in line with the company’s efforts to be more transparent, including in the way it shares information across a range of areas with shareholders and other stakeholders.

Highlights include:

  • Attributable profit of US$5.9 billion and strong free cash flow of US$12.6 billion;
  • A full year dividend of US$0.83 per share, equivalent to a 66% payout ratio;
  • An increase of 2.9% in female employees - more than double the increase achieved in the prior year and an important step towards BHP’s aspirational goal to achieve  gender balance at all levels of the organisation by FY2025;
  • Total economic contribution of US$26.1 billion in FY2017, which includes total social investment of US$72.9 million;
  • An adjusted effective tax rate of 34.5% in Australia; and
  • Maintaining total greenhouse gas (GHG) emissions below FY2006 levels, while growing our operations.

The 2017 Sustainability Report also contains a number of new targets to FY2022 covering safety, health, climate change, water stewardship, biodiversity conservation and community performance.

In addition, the Sustainability Report identifies longer-term goals through which BHP aims to:

  • achieve net-zero operational GHG emissions in the second half of this century (in line with international commitments);
  • enable water resource management systems in all catchments where we operate by FY2030 (in line with United Nations Sustainable Development Goal 6); and
  • have made a measurable contribution to the conservation, restoration and sustainable use of marine and terrestrial ecosystems in all regions where we operate by FY2030 (in line with United Nations Sustainable Development Goals 14 and 15).

“These targets are a public statement to our shareholders about our commitment to sustainability and are consistent with our commitment to the Paris Agreement and the United Nations Sustainable Development Goals.

“They are also at the heart of how we work at BHP – we are determined to make a positive difference through our performance,” Mr Mackenzie said.

“The publication of our third Economic Contribution report updates and expands our disclosure of the taxes and royalties we pay to governments around the world.

“The report assists informed debate on the integrity of tax regimes and strengthens anti-corruption measures globally, which is in the best interests of our shareholders, employees, customers and the wider community.

“For corporations like BHP, it is up to us to shape change for the better, through innovation, productivity and technology. It is our responsibility to have a voice and to be transparent.”

In a letter to shareholders introducing the Annual Report, BHP’s new Chairman, Ken MacKenzie said: “After several years of considered and deliberate effort, BHP is stronger, simpler and more productive. BHP has a world class management team, led by Andrew Mackenzie, and I look forward to supporting them in our pursuit of long-term value creation for all our shareholders’.”

The full reports and accompanying documents are all available online in our Annual Reporting section.