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Sustainability approach

Sustainability is key to our purpose of bringing people and resources together to build a better world. 

Our ambition

We are committed to finding new ways of operating more sustainably while supplying products that are essential for the global transition towards a more sustainable future. We can only achieve our purpose through collective effort, and we value the opportunity of partnering across our value chain to make our business more sustainable and to contribute to global sustainable development goals.

Our approach and position

We recognise that our business interacts with a range of material sustainability topic areas. Furthermore, we recognise that a key to operating more sustainably is how we govern our approach to managing both our actual and potential impacts.

As illustrated below, our sustainability approach is defined by our purpose, building strong foundations, and creating social value. For more information, our social value framework, approach to governance, and annual performance against our social value scorecard are detailed on our Social value webpage and in the BHP Annual Report 2023, Operating and Financial Review 6.5 - 2030 goals. For more information on our approach to sustainability-related risk management, refer to our Sustainability-related risk management webpage and the BHP Annual Report 2023, Operating and Financial Review 8 How we manage risk.

 

Sustainability approach

  

Governance and oversight, engagement and performance

  • Governance and oversight

    The BHP Board has oversight of our approach to and delivery on sustainability and is supported by each of its Committees.

     

    The Board’s Sustainability Committee advises and assists the Board in its oversight of the Group’s management and performance in relation to health, safety, environmental, climate and community matters.

     

    The Sustainability Committee also advises the People and Remuneration Committee in setting safety and sustainability-related scorecard targets and evaluating performance against those targets.

     

    The Board’s Risk and Audit Committee is responsible for assisting the Board in overseeing and reviewing emerging and priority group risks, risk management and internal controls. The Risk and Audit Committee also reviews and recommends to the Board public financial disclosures related to sustainability matters.

     

    The Nomination and Governance Committee is responsible for reviewing and making recommendations to the Board on the Group’s significant social, community and sustainability policies. The Nomination and Governance Committee also reviews and makes recommendations to the Board on the Group’s public sustainability targets and goals.

     

    The People and Remuneration Committee is responsible for considering and assessing the performance measures for the Executive Leadership Team and performance outcomes against those measures. In doing so, the People and Remuneration Committee considers recommendations from the Sustainability Committee in relation to health, safety, environment, climate and community measures.

     

    More information on the Board and each Committee is set out in the 2023 Corporate Governance Statement, Board Governance Document and Committee Charters on the Corporate Governance webpage.

  • Engagement

    As a global company, we interact with a range of partners and stakeholders. Our methods, frequency of engagement and approach to listening to partners and stakeholders are diverse. We use a range of formal and informal communication and engagement channels to understand partner and stakeholder views. The following table provides an overview of our partner and stakeholder groups, their range of interests and how we engage with them.    

     

    Sustainability partners and stakeholders

    BHP also seeks advice from external experts and forums on issues relating to sustainability as inputs into our policy development and decision-making processes. The BHP Forum on Corporate Responsibility (FCR hereon) is an important part of our stakeholder engagement. Together with BHP’s CEO and other members of the Executive Leadership Team, the FCR comprises independent civil society leaders in various fields of sustainability, who make an important contribution to our approach over a range of sustainability-related topics and to the development of our related policies, strategies and standards. The majority of the membership is civil society members. They provide insight into current and emerging issues, challenge our thinking and allow us to understand and consider the broader impacts of our actions. More information on the FCR is available on our FCR webpage.

  • Performance

    We use various metrics to measure our sustainability progress and performance. Our sustainability performance metrics are independently audited and a copy of the EY independent assurance report is available in the BHP Annual Report 2023, Operating and Financial Review 6.17 - Independent limited assurance report. 

    Refer to the ESG Standards and Databook 2023 for details on our FY2023 sustainability performance data.  

    Refer to the Social value webpage for our 2023 social value scorecard. 

    ESG ratings agencies and benchmarks

    We actively report in alignment with, and/or respond to, a range of prominent ESG ratings agencies and benchmarks. More information on our performance is outlined in the table below. 

  • Contributing to sustainable development

    The United Nations Sustainable Development Goals (UNSDGs) aim to create a better, fairer and more sustainable world by 2030. The 17 UNSDGs address the global challenges society faces, including those related to poverty, inequality, climate change, conservation and economic growth. We can contribute to these broader goals through working in partnership with many different stakeholders, from global to local. 

    We recognise our business activities can create negative impacts. Therefore, sustainability must be integral to how we do business. The interconnectedness of the SDGs means that a positive contribution to one can either have a multiplier effect or lead to potential negative impacts for another, so we work to understand the linkages, manage and mitigate any adverse impacts, and determine how we can make a positive contribution to those most relevant to our business and social value priorities. 

    We contribute towards the achievement of the SDGs through: 

    SDG 1
    Our work on inclusion and diversity. Refer to our People webpage for information on our approach and how we are tracking against our aspirational goal for a gender-balanced employee workforce by the end of FY2025 (SDGs 5 and 8). 


    SDG2
    Our focus on water stewardship. Refer to our Water webpage for information on our approach to water management and our vision for a water secure world by 2030 (SDG 6).

     

    SDG3

    Our work on marine and terrestrial biodiversity. Refer to our Biodiversity and land webpage for information on our approach to biodiversity and our 2030 Healthy environment goal (SDGs 14 and 15). 

     

    SDG4

    The taxes and royalties we pay to governments where we operate, the direct and indirect employment opportunities we create and our supply chain. Refer to our Economic Contribution Report for more information (SDG 8). 

     

    SDG5

    Our voluntary social investment. Refer to our Social investment webpage for information on our social investment strategy and framework, comprising six foundational pillars: decarbonisation, the environment, Indigenous partnerships, workforce, communities and supply chains (SDGs 3, 4 and 11).

    SDG16

    Our commitment to the aims of the Paris Agreement and action to reduce our operational emissions help to address emissions in our value chain, build resilience and enhance the global response to climate change. Refer to our Climate change webpage for our approach to climate change (SDG 13).

    This approach allows us to work in partnerships with others to achieve mutually beneficial outcomes (SDG17).    

Disclosure

We commit to a number of sustainability frameworks, standards and initiatives and we disclose data both as required by law and according to the requirements of those frameworks, standards and initiatives. Our sustainability performance data is included in relevant sections of the BHP Annual Report 2023, Operating and Financial Review, and in our ESG Standards and Databook. Our Annual Reporting suite also includes our Modern Slavery Statement 2023, prepared under the Australian Modern Slavery Act (2018) and UK Modern Slavery Act (2015), and our Economic Contribution Report 2023. We have obtained external limited assurance over the sustainability disclosures included in the BHP Annual Report 2023, Operating and Financial Review and our ESG Standards and Databook 2023.  

Our sustainability disclosures are consistent with the principles, position statements and requirements of the following disclosure frameworks, standards and initiatives. 

Alignment BHP reporting landscape

Our approach to responsible production and sourcing standards, including details on some of our relevant memberships, is detailed on our Value chain sustainability webpage.