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BHP’s long-term and ongoing commitment to sustainability is defined by Our Charter and realised through Our Requirements standards. These standards describe our mandatory minimum performance requirements and provide the foundation for the management systems at our operated assets. They are designed to help ensure we maintain and promote the long-term health of our society and natural environment in everything we do.

They also guide our investments in the countries and communities in which we operate and include strong risk management and sustainable development components.

We have public sustainability performance targets and commitments, and continually work to improve our performance, transparency and accountability.

As a partner in the communities in which we operate, we share stewardship of the environment, support local cultures and help drive economic development. To ensure we consider social value in our business decision-making at every level of BHP, we have embedded requirements relating to social value into our annual business planning process for our operated assets.

Sustainability governance

We are committed to complying with applicable laws and regulations relating to health, safety, environment and community impacts in every country in which we operate, and to exceeding them where they are less stringent than our own standards.

BHP’s Board oversees our sustainability approach. The Board’s Sustainability Committee has oversight of health, safety, environmental and community (HSEC) matters and assists the Board with governance and monitoring. Members of the Sustainability Committee are Non-executive Directors determined by the Board to have appropriate skills in HSEC matters.

The Sustainability Committee also oversees the adequacy of the systems to identify and manage HSEC-related risks and overall HSEC and human rights performance.

The Sustainability Committee guides the Remuneration Committee in setting HSEC-related scorecard targets and evaluating performance against those targets.

In addition, the Board’s Risk and Audit Committee assists the Board in overseeing the Group’s risk management systems.

BHP also seeks advice from external experts and forums on issues relating to sustainability as part of our decision-making processes. The BHP Forum on Corporate Responsibility is a key part of our stakeholder engagement program. The Forum comprises independent civil society leaders in various fields of sustainability, who make an important contribution to our approach over a range of social and environmental issues and the development of our standards. They provide insight into current and emerging issues, challenge our thinking and allow us to understand and consider the broader impacts of our actions.

How we manage sustainability risks

Our priority is to identify and manage significant risks relating to sustainability. Our operated assets and functions approach risk management across our business activities and processes by applying our global Risk Framework. BHP believes effective risk management requires a single, consolidated view of risks across the business to understand the Group’s full risk exposure and to prioritise risk management and governance activity. As such, we apply a single framework (known as the Risk Framework) for all risks, including those relating to sustainability.

Embedding risk management into work processes and critical business systems helps us to develop a risk-informed approach to sustainability.

Our Internal Audit and Advisory (IAA) team evaluates the design and effectiveness of our sustainability processes and we create detailed management plans to address any identified gaps.

We set workplace health, safety, environment and community standards for our operated assets and work to enforce their application. Contractors working at our operated assets must comply with our standards and requirements and we seek to ensure our suppliers, agents and service providers maintain business practices and workplace standards comparable to our own.

Third party assurance providers visit selected operated assets and evaluate our sustainability approach to ensure we accurately represent our commitments and actions.

We provide a broader discussion of our approach to risk management in our Annual Report.

Our FY2020 sustainability performance

FY2020 Sustainability performance

(1) FY2018 and FY2019 data includes Continuing and Discontinued operations (Onshore US assets).
(2) FY2019 data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations.
(3) The sum of (fatalities + lost-time cases + restricted work cases + medical treatment cases) multiplied by 1 million/actual hours worked by our employees and contractors. Stated in units of per million hours worked. We adopt the US Government’s Occupational Safety and Health Administration Guidelines for the recording
and reporting of occupational injuries and illnesses.
(4) FY2018 TRIF data includes Continuing and Discontinued operations (Onshore US assets).
(5) FY2019 TRIF data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations.
(6) For exposures exceeding our FY2017 baseline occupational exposure limits discounting the use of personal protective equipment, where required. The baseline exposure profile (as at 30 June 2017) is derived through a combination of quantitative exposure measurements and qualitative assessments undertaken by specialist occupational hygienists consistent with best practice as defined by the American Industrial Hygiene Association.
(7) New FY2017 baseline due to the removal of 98 exposures attributed to the Onshore US assets.
(8) Data excludes Discontinued operations (Onshore US assets).
(9) A significant event resulting from BHP operated activities is one with an actual severity rating of four and above, based on our internal severity rating scale (tiered from one to five by increasing severity) as defined in our mandatory minimum requirements for risk management.
(10) Our voluntary social investment is calculated as 1 per cent of the average of the previous three years’ pre-tax profit.
(11) Expenditure includes BHP’s equity share for operated and non-operated joint ventures, and comprises cash, administrative costs, including costs to facilitate the operation of the BHP Foundation.
(12) FY2017 and FY2018 social investment figures includes Discontinued operations (Onshore US assets).
(13) FY2019 social investment figure includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
(14) Comparison calculated on a Continuing operations basis. The FY2017 baseline has been adjusted for the divestment of our Onshore US assets to ensure ongoing comparability of performance.
(15) With the use of carbon offsets, as required.
(16) FY2018 GHG data includes Continuing operations and Discontinued operations (Onshore US assets) and has been restated.
(17) FY2019 GHG data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations and has been restated.
(18) The FY2017 baseline data has been adjusted to account for: the materiality of the strike affecting water withdrawals at Escondida in FY2017 and improvements to water balance methodologies at WAIO and Queensland Coal and exclusion of hypersaline, wastewater, entrainment, supplies from desalination and Discontinued operations (Onshore US assets) in FY2019 and FY2020.
(19) Where ‘withdrawal’ is defined as water withdrawn and intended for use (in accordance with ‘A Practical Guide to Consistent Water Reporting’, ICMM (2017)).
‘Fresh water’ is defined as waters other than seawater, wastewater from third parties and hypersaline groundwater. Freshwater withdrawal also excludes entrained water that would not be available for other uses. These exclusions have been made to align with the target’s intent to reduce the use of freshwater sources subject to competition from other users or the environment

Sustainability at our non-operated minerals joint ventures and petroleum non-operated assets

BHP holds interests in companies and joint ventures that we do not operate, primarily within Minerals Americas (Samarco, Antamina, Resolution and Cerrejón) and Petroleum (Algeria, Australia and Gulf of Mexico). These are described in our Annual Report.

We actively engage with our partners and operator companies around sustainable development through formal governance structures and technical exchanges, and regularly evaluate their performance.

Petroleum non-operated assets

We have processes in place to identify and manage risks within the rights afforded by the respective joint operating agreements. These include (as permitted by the relevant operator and/or joint operating arrangements) verification of risk control strategies through field visits, review and analysis of the operator’s performance data, evaluation of their performance, participation in operator audits and sharing BHP risk management strategies and processes where appropriate.

Non-operated minerals joint ventures

We engage with our non-operated minerals joint ventures(NOJVs) partners and operator companies through our NOJV team. While NOJVs have their own operating and management standards, we seek to enhance governance processes and influence operator companies to adopt international standards (within the limits of the relevant joint venture agreements). We challenge our NOJV operators to effectively manage risks that may have potential adverse impacts on water and air quality and seek to ensure communities are properly consulted, informed and have access to appropriate complaints and grievance mechanisms. We aim to strengthen our NOJVs’ compliance with national regulations and alignment with the ICMM Sustainable Development Framework.

Value Chain Sustainability

BHP made payments to more than 9,000 suppliers in FY2020, including those in our local communities, and is one of the world’s largest bulk vessel charterers.

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