BHP Group Limited
Climate Impact & Sustainability Data (2004, 2004-07-01 to 2005-06-30, 2007, 2007-07 to 2008-06, 2009, 2010, 2011, 2011-07 to 2012-06, 2012, 2013, 2014, 2014-07 to 2015-06, 2015, 2016, 2016-07 to 2017-06, 2017-07 to 2018-06, 2018, 2018-07 to 2019-06, 2019, 2020, 2021, 2022, 2023, 2024)
Reporting Period: 2004
Environmental Metrics
ESG Focus Areas
- Health
- Safety
- Environment
- Community
Environmental Achievements
- Reduced greenhouse gas intensity by 9% against the baseline.
- Reduced hazardous waste intensity by 12% against the baseline.
- Life cycle assessments completed for all major minerals products.
Social Achievements
- Community contributions totalled US$46.5 million (1.3% of pre-tax profit), exceeding the target of 1%.
- Reduced incidence of occupational illness by 15% against the baseline.
- No transgressions of the principles embodied within the United Nations Universal Declaration of Human Rights.
Governance Achievements
- Risk registers in place and maintained at all sites, CSG and Corporate levels.
- All required sites are certified to the ISO 14001 Environmental Management System standard.
- Executive remuneration is directly linked to financial and non-financial performance.
Climate Goals & Targets
- 50% reduction in Classified Injury Frequency Rate by June 2007.
- 10% reduction in fresh water consumption per unit of production by June 2007.
- 20% reduction in waste per unit of production by June 2007.
- 20% reduction in incidence of occupational disease by June 2007.
- 5% reduction in greenhouse gas emissions per unit of production by June 2007.
- Full conformance with HSEC Management Standards by June 2005.
Environmental Challenges
- 17 fatalities in controlled activities.
- Increase in water intensity (10% above baseline).
- Increase in general waste intensity (25% above baseline).
Mitigation Strategies
- Implementation of Fatal Risk Control Protocols.
- Improved PPE program and standardized approach.
- Company-wide Closure Standard developed.
- Focus on reducing greenhouse gas emissions per unit of production.
Supply Chain Management
Responsible Procurement
- Black Economic Empowerment Procurement Policy (Southern Africa).
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Global Reporting Initiative (GRI) 2002 Sustainability Reporting Guidelines
Certifications: ISO 14001
Third-party Assurance: URS Corporate Sustainable Solutions
Awards & Recognition
- Global Business Coalition on HIV/AIDS award – Business Excellence for Innovation
- Association of Certified Chartered Accountants (Australia and New Zealand) award for Best Environment Report
- Australasian Reporting Awards – Best Occupational Health and Safety Report
- Special Award for Impact on a Community in the Australian Prime Minister’s 2003 Awards for Excellence in Community Business Partnerships
Reporting Period: 2004-07-01 to 2005-06-30
Environmental Metrics
ESG Focus Areas
- Health, Safety, Environment, and Community (HSEC)
- Sustainable Development
Environmental Achievements
- Reduced energy consumption from 327 petajoules to 309 petajoules.
- Reduced land newly disturbed by 12% compared to the previous period.
- Lifecycle assessments completed for all major minerals products.
Social Achievements
- Reduced number of new cases of occupational illness by 36% compared to the 2002/03 baseline.
- Contributed US$57.4 million to community programs.
- Received the ‘Company of the Year’ at the Business in the Community Awards in the UK.
Governance Achievements
- Established a Sustainable Development Policy.
- Implemented Enterprise-Wide Risk Management (EWRM) strategy.
- Linked executive remuneration to financial and non-financial performance, including HSEC targets.
Climate Goals & Targets
- 20% reduction in waste (excluding recycled and mining-related materials) per unit of production by 30 June 2007.
Environmental Challenges
- Three employee fatalities during the fiscal year.
- Data collection challenges for certain indicators (e.g., contract payments, supplier breakdown).
- Complexity of the business in reporting certain financial data.
Mitigation Strategies
- Continued focus on Zero Harm objective.
- Improved data collection methods for future reporting.
- Regional breakdown of data instead of country-level for certain indicators.
Supply Chain Management
Responsible Procurement
- Evaluation of contractors' social and environmental performance, including human rights records.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI 2002 Sustainability Reporting Guidelines, GRI Mining and Metals Sector Supplement Pilot Version 1.0
Certifications: ISO 14001
Third-party Assurance: URS Australia Pty Ltd
Awards & Recognition
- Company of the Year at the Business in the Community Awards (UK)
- Minerals Council of Australia National Safety and Health Innovation Award (BMA Blackwater Mine)
- WA Government annual 'Golden Gecko' award (WA Iron Ore)
- Queensland Central Region Award and State Chief Inspector's Safety Management Award (BMA Crinum Mine)
- 'Gold Karratza' award (Cerrejón)
Reporting Period: 2007
Environmental Metrics
ESG Focus Areas
- ethics
- safety
- environmental practice
- community engagement
- sustainable development
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Not disclosed
Environmental Challenges
- Not disclosed
Mitigation Strategies
- Not disclosed
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2007-07 to 2008-06
Environmental Metrics
ESG Focus Areas
- Health and Safety
- Environment
- Community
- Climate Change
- Biodiversity
- Water Management
- Waste Management
- Human Rights
- Community Development
- Stakeholder Engagement
- Governance
Environmental Achievements
- 95% of sites requiring ISO 14001 are certified
- 7% improvement in the ratio of water recycled/reused to high-quality water consumed
- WestVAMP project reduced greenhouse gas emissions by 250,000 tonnes of CO2 equivalent per year
Social Achievements
- US$141 million (1% of pre-tax profits) invested in community programs
- US$4.8 million contributed to organizations through employee matching donations
- No human rights transgressions reported
- 84% of operating sites and development projects completed human rights self-assessments
Governance Achievements
- Revised Code of Business Conduct
- Enhanced assurance processes
- Implementation of Enterprise-wide Risk Management framework
Climate Goals & Targets
- 13% reduction in carbon-based energy use per unit of production by 2012
- 6% reduction in greenhouse gas emissions per unit of production by 2012
- 10% improvement in the ratio of water recycled/reused to high-quality water consumed by 2012
- 50% reduction in Total Recordable Injury Frequency Rate by 2012
- 30% reduction in incidence of occupational diseases by 2012
- Complete baseline occupational hygiene exposure surveys for all operating sites
Environmental Challenges
- Climate change
- Reducing high-quality water consumption
- Access to land and potential impact on biodiversity
- Eliminating fatal risks
- Addressing major infectious diseases (HIV/AIDS, Malaria)
- Building effective stakeholder relationships
- Effective closure planning
- Respecting traditional rights
- Managing potential exposure to human rights issues
- Accessing skills in a tight labor market
- Influencing product life cycle aspects outside of direct control
Mitigation Strategies
- New five-year HSEC targets
- Fatal Risk Control Protocols
- Investment in research and development of low-carbon technologies
- Community engagement programs
- Human rights self-assessments and management plans
- Stewardship programs
- Improved risk management framework
- Community investment programs
- Life of Asset planning process for closure
Supply Chain Management
Responsible Procurement
- HSEC Management Standards require suppliers to identify and minimize HSEC risks
Climate-Related Risks & Opportunities
Physical Risks
- Changes in rainfall patterns
- Water shortages
- Changing sea levels
- Changing storm patterns and intensities
- Changing temperature levels
Transition Risks
- Government regulations
- Market shifts
Opportunities
- Development of energy-efficient products
- Emissions trading
Reporting Standards
Frameworks Used: GRI G3
Certifications: ISO 14001
Third-party Assurance: Ernst & Young (limited assurance)
UN Sustainable Development Goals
- MDG 1: Eradicate extreme poverty and hunger
- MDG 2: Achieve universal primary education
US$40.7 million spent on programs to help achieve MDGs
Awards & Recognition
- ACCA Best Report Award (2007 Sustainability Report)
- Business in the Community Big Tick Award (Social Impact Category)
- CDP Climate Leadership Index
Reporting Period: 2009
Environmental Metrics
ESG Focus Areas
- Safety
- Health
- Environment
- Social Responsibility
- Community
- Governance
Environmental Achievements
- Reduced the proportion of employees potentially exposed in excess of OELs by 10%
- Reduced perfluorocarbon gas emissions by 20% at Mozal aluminium smelter
- Reduced surface freshwater demand at EKATI Diamond Mine to less than 2% of total volume required without water recycling programs
- Successfully implemented an in-lake biological treatment process for acid rock drainage at Island Copper Mine
Social Achievements
- Increased paid parental leave component to a global minimum of 18 weeks
- Implemented a Retirement as a Productive and Creative Stage of Life program at Cerro Matoso
- Implemented a Poverty Relief and Alleviation project in Peru, generating $3 million in sales and creating 1,187 jobs
- eMalahleni Water Reclamation Project in South Africa supplying 20% of the local community’s daily water requirements
Governance Achievements
- Revised Code of Business Conduct
- Improved the operation of the Business Conduct Advisory Service
- Established a Global Ethics Panel
Climate Goals & Targets
- 10% improvement in the ratio of water recycled to high-quality water consumed by 30 June 2012
- 10% improvement in land rehabilitation index by 30 June 2012
Environmental Challenges
- Loss of seven work colleagues due to work-related accidents
- Downturn in the global economy leading to job losses
- Need to work with governments and stakeholders on effective climate change policies
- Increased energy and greenhouse gas reporting requirements
- Reducing consumption of high-quality water
- Influencing aspects of product life cycles not directly controlled
- Ensuring stakeholder requirements are integrated into asset lifecycle
- Spontaneous combustion of pyritic shale at Mount Whaleback Mine
- Acid rock drainage at Island Copper Mine
- Community issues related to land acquisition at Cerrejón Coal
- Concerns about the effects of exploration and potential mine on farming country and aquifers at Caroona Coal Project
- Acid mist in electrowinning process at Minera Spence
- Limited experience of construction sites and occupational health and safety processes among workforce at Zamzama gas plant expansion in Pakistan
- Community concerns at Caroona Coal Project
Mitigation Strategies
- Implemented catastrophic risk management methodology
- Improved control of site access and site traffic management standards
- Implemented new Health and Hygiene Standard
- Implemented exposure control plans
- Developed and implemented a new pot startup procedure at Mozal to reduce perfluorocarbon emissions
- Implemented water conservation and recycling programs at EKATI
- Implemented an in-lake biological treatment process at Island Copper
- Signed an agreement with the Tabaco Relocation Committee at Cerrejón Coal
- Undertook a review of exploration and development plans at Caroona Coal Project
- Implemented an acid mist control and recovery system at Minera Spence
- Implemented well-defined health, safety, environment and community requirements for Zamzama gas plant expansion
- Implemented a range of measures to strengthen safety systems and processes at BHP Billiton Iron Ore in Western Australia
- Implemented a system for classifying shale to prevent spontaneous combustion and explosions at Mount Whaleback Mine
- Developed a biological monitoring program at Cerro Colorado to monitor the impact of acid mist
- Designed a practical and ergonomically friendly meals area for underground miners at Gregory Crinum mine
- Implemented a Middle Layer Lifting system at Island Copper to manage the internal distribution of water within the lake
Supply Chain Management
Responsible Procurement
- Supply Management Standard
- Minimum performance requirements for sourcing and contract management
- Supplier corporate social responsibility management consistent with BHP Billiton’s Code of Business Conduct and HSEC Management Standards
- Zero tolerance requirements for child labour, forced labour, inhumane treatment, and living wage
- Minimum sustainability requirements for safe workplace, respect for freedom of association, ethical conduct, compliance with laws, and non-discrimination
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, ICMM Sustainable Development Framework
Certifications: ISO 14001 (implied)
Third-party Assurance: Ernst & Young and KPMG (limited assurance)
Reporting Period: 2010
Environmental Metrics
ESG Focus Areas
- Governance
- Employees
- Safety and Health
- Environment
- Social Responsibility
Environmental Achievements
- Improved water use intensity by an estimated 50% at Olympic Dam.
- Successful geomorphic reclamation at La Plata Mine, withstanding extreme rainfall events.
- Reduced road accident-related fatalities and injuries by 25% and 29% respectively in the Worsley Road Safety Alliance area.
Social Achievements
- Reduced employee turnover to 8.9% from 15.5% in the previous year.
- Average training hours for employees were 120 hours for full-time and 32 hours for part-time employees.
- Implemented Impact Benefit Agreements (IBAs) at EKATI Diamond Mine, exceeding annual business spend target of 70% with Northern businesses (27% with Northern aboriginal-owned businesses).
Governance Achievements
- Implemented a new data reporting system to improve the quality of environmental data.
- Established a Business Conduct Advisory Service with multilingual hotline and online case management tool.
- Conducted a review of closure planning and provisioning requirements.
Climate Goals & Targets
Environmental Challenges
- Small increase in the proportion of employees potentially exceeding Occupational Exposure Limits (OELs) due to improved data quality and changes to operations.
- Road safety concerns due to long distances traveled by employees, contractors, and service providers on an ageing and increasingly busy road network.
- Water supply challenges at Olympic Dam for projected expansion.
- Community dissatisfaction with decreased employment levels at Klipspruit Colliery after construction.
Mitigation Strategies
- Improved data quality and changes to operations.
- Formation of the Worsley Road Safety Alliance for collaborative road safety improvements.
- Proposed construction of a seawater desalination plant at Olympic Dam powered by renewable energy.
- Proactive communication with Klipspruit's host communities about BBBEE achievements and opportunities for participation in socio-economic and enterprise development initiatives.
Supply Chain Management
Responsible Procurement
- Supplier segmentation based on Corporate Social Responsibility risk assessment.
- Minimum performance requirements for sourcing and contract management outlined in Supply Management Group Level Document (GLD).
- Zero tolerance requirements for child labour, forced labour, inhumane treatment, and living wage.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI G3 Guidelines, ICMM Sustainable Development Framework
Third-party Assurance: KPMG
Awards & Recognition
- WA Local Government Road Safety Awards (Safe Roads Users and Safe Roadside and Roadways categories)
- WA Chamber of Minerals and Energy’s 2010 Health and Safety Innovation Awards (People category)
- 2009 Excellence in Surface Coal Mining Reclamation Award from the United States Office of Surface Mining
- BHP Billiton Environment Excellence Award
- BHP Billiton CEO’s Sustainability Excellence Award
Reporting Period: 2011
Environmental Metrics
ESG Focus Areas
- Health and Safety
- Environment
- Community
- Climate Change
- Water Use
- Biodiversity
- Human Rights
- Ethical Business Practices
Environmental Achievements
- Reduced absolute greenhouse gas (GHG) emissions by more than 5 million tonnes compared to FY2010
- Reduced carbon-based energy intensity by 17% and GHG emissions intensity by 18% below the FY2006 baseline
- Exceeded US$300 million commitment to energy efficiency and low GHG emission technologies, reaching US$325 million
Social Achievements
- Improved total recordable injury frequency (TRIF) from 5.3 to 5.0 per million hours worked
- Reduced the incidence of occupational disease by 39% since FY2007, exceeding the target of 30%
- Voluntary community investment totaled US$195.5 million, including US$30 million to BHP Billiton Sustainable Communities
Governance Achievements
- Implemented a new policy requiring all Directors to seek annual re-election by shareholders
- Increased emphasis on establishing performance standards for material risk critical controls
- Reported no significant environmental incidents during FY2011
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Reduce water consumption by 10% by 2012
- Improve land rehabilitation index by 10% by 2012
- Improve water recycled to high-quality water consumed ratio by 10% by 2012
- Reduce GHG emissions intensity by 6% and carbon-based energy intensity by 13% by 2012
- Reduce potential employee exposures over occupational exposure limits by 15% by 2012
- Reduce the incidence of occupational disease among employees by 30% by June 2012
Environmental Challenges
- Two fatalities at operations in South Africa
- Persistent and severe wet weather affecting Queensland metallurgical coal operations
- Drilling moratorium in the Gulf of Mexico impacting production
- Capital cost pressure on large-scale projects
- Potential impacts from regulations to control greenhouse gas emissions
- Water stress and quality concerns
- Competition for land and biodiversity loss
- Potential security risks in countries with high governance risk
Mitigation Strategies
- Focused on improving risk-based safety, fatal risk controls, leadership verification, and competency training
- Implemented energy efficiency measures in compliance with the EEO Act 2006
- Developed GHG emissions abatement cost curves to identify emission-saving opportunities
- Intensified focus on addressing water stress and quality, including water substitution and stewardship
- Implemented water management plans at all operations, including controls to mitigate impacts
- Developed water reduction cost curves at material sites
- Implemented local-level processes to facilitate resolution of complaints and grievances
- Developed preventative controls and security management plans to address security risks
- Undertook country risk assessments and implemented mitigation plans
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Local procurement where possible
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Sea level changes
- Changes in rainfall patterns
Transition Risks
- Regulations to control GHG emissions
Opportunities
- Low-carbon emissions power sector
Reporting Standards
Frameworks Used: JORC Code
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2011-07 to 2012-06
Environmental Metrics
ESG Focus Areas
- People
- Environment
- Society
- Governance
Environmental Achievements
- Achieved a 16% reduction in GHG energy intensity compared with the FY2006 base year
- Achieved a 15% reduction in carbon-based energy per unit of production compared with the FY2006 base year
- Achieved a 29% improvement in the ratio of water recycled/reused to high-quality water consumed compared with the FY2007 base year
Social Achievements
- Invested US$214 million in community programs
- Achieved target of contributing one per cent of pre-tax profits, on a three-year rolling average, to community programs across our regions
Governance Achievements
- No significant environmental or community incidents reported
- Increased emphasis on critical control verification through a GMC key performance indicator
Climate Goals & Targets
- Zero fatalities at controlled operations by 2017
- No significant environmental incidents resulting from controlled operations by 2017
- Reduce potential occupational exposure to carcinogens and airborne contaminants by 10% by 2017
- Maintain total greenhouse gas emissions below FY2006 levels by 2017
- Not disclosed
Environmental Challenges
- Three fatalities at controlled operations
- Did not achieve target of remaining fatality free
- Did not meet land rehabilitation target
- Fell short of target in two health metrics
- Increased number of occupational illness cases (43.7 cases per 10,000 employees)
- Industrial disruption at some operations (e.g., South America, Australia)
Mitigation Strategies
- Thorough investigation of fatalities with lessons learned shared and acted upon
- Development of new HSEC targets for FY2013-FY2017 focusing on eliminating fatal risks, minimizing occupational exposures, and improving efficient use of energy and water resources
- Increased focus on control effectiveness for noise and musculoskeletal illness hazards
- Implementation of exposure reduction projects to reduce exposures to carcinogens and airborne contaminants
- Development of comprehensive contingency plans to minimize industrial disruption impact
Supply Chain Management
Supplier Audits: Facility visits to assess compliance with zero tolerance requirements for selected suppliers
Responsible Procurement
- Alignment with BHP Billiton Charter, Code of Business Conduct, Anti-corruption GLD, and HSEC GLDs; zero tolerance of child labor, inhumane treatment, and forced labor
Climate-Related Risks & Opportunities
Physical Risks
- Changes in precipitation patterns, increased storm intensities, higher average temperature levels
Transition Risks
- Regulatory changes to control GHG emissions, changes in cost structures of GHG-intensive assets
Opportunities
- Implementation of energy-efficient and low GHG emission technologies
Reporting Standards
Frameworks Used: GRI G3 Sustainability Reporting Guidelines, Mining and Metals Sector Supplement, ICMM Sustainable Development Framework, UN Global Compact Principles
Certifications: Null
Third-party Assurance: KPMG
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2012
Environmental Metrics
ESG Focus Areas
- Community Relations
- Land Rehabilitation
- Industrial Relations
- Environmental Impact (Air and Water Quality)
- Climate Change
- Free Prior Informed Consent
- Potash Market Outlook
- Joint Venture Governance
- Geographic Diversification
Environmental Achievements
- Greenhouse gas intensity of production declined by 16% compared to 2006.
- US$430 million invested in energy efficiency projects since 2008.
- New Mexico Coal operation received awards for land rehabilitation.
- Remediation works on Hunter River, Australia, received awards.
Social Achievements
- 20 out of 24 key actions to improve Cerrejon’s community engagement completed.
- Significant progress in relocating residents of Tabaco community and establishing community foundations.
- Cerro Matoso supports healthcare services for nearby communities.
- Cerro Matoso paid over US$2.5 billion in taxes and royalties from 1998 to 2011.
- IndoMet project partnered with Fauna & Flora International for US$1.9 million in funding for sustainable land use planning.
Governance Achievements
- Commitment to freedom of association and collective bargaining.
- Emphasis on direct communication with employees for good industrial relations.
- Rigorous environmental and community assessment processes for all projects.
Climate Goals & Targets
Environmental Challenges
- Failure to achieve 2007 land rehabilitation target.
- Concerns about historical community relocation at Cerrejon.
- Potential environmental impact of IndoMet coal project in Kalimantan.
- Balancing increasing coal and oil production with climate change concerns.
- Managing industrial relations and preventing prolonged industrial action.
- Navigating evolving views on Free Prior Informed Consent.
Mitigation Strategies
- Learning from past failures and setting new targets for improved environmental performance.
- Engaging with local community representatives and seeking fair resolution of issues at Cerrejon.
- Conducting rigorous environmental and community assessments for IndoMet project.
- Investing in energy efficiency and reducing greenhouse gas intensity.
- Promoting direct communication and trust with employees.
- Working with joint venture partners to uphold company values.
Supply Chain Management
Climate-Related Risks & Opportunities
Awards & Recognition
- Awards for land rehabilitation (New Mexico and Hunter River)
Reporting Period: 2013
Environmental Metrics
ESG Focus Areas
- Health
- Safety
- Environment
- Community
Environmental Achievements
- FY13 greenhouse gas (GHG) emissions were lower than FY06 baseline
- No significant environmental incidents at our controlled operations
- Land and Biodiversity Management Plans were developed at all our operations
- Two projects of international conservation significance established – total value US$17.9 million
Social Achievements
- US$246 million invested in community programs. Successful performance against target for tenth consecutive year
- 63% of spend was with local and regional suppliers
- Extended matched giving program
- Colombia Resilience Project (US$29 million funding for a five-year project)
Governance Achievements
- Anti-corruption requirements across group
- Product stewardship – participation in industry product stewardship initiatives
- Transparently reporting – supported the Extractive Industries Transparency Initiative (EITI), Global Reporting Initiative (GRI), public disclosure of taxes paid on a country-by-country basis, greenhouse Gases (GHG) and community investment data audited for reasonable assurance by KPMG
Climate Goals & Targets
- Maintain total GHG emissions below FY06 levels while continuing to grow our business
- All operations with water-related material risks will set targets and implement projects to reduce their impact on water resources
- Zero fatalities at our controlled operations
- Year-on-year improvement of our TRIF
- Reduce potential occupational exposure to carcinogens and airborne contaminants by 10%
Environmental Challenges
- Three fatalities at our controlled operations
- Potential exposure to carcinogens and airborne contaminants
Mitigation Strategies
- Year-on-year improvement of TRIF
- Annual reviews for alignment with the Voluntary Principles on Security and Human Rights
- Reduce potential occupational exposure to carcinogens and airborne contaminants by 10%
- Cannington carbon reduction project to improve health of underground personnel
- Review of occupational exposure limits (OELs) supported by scientific evidence and independent review
Supply Chain Management
Responsible Procurement
- 63% of spend was with local and regional suppliers
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI
Third-party Assurance: KPMG
Reporting Period: 2014
Environmental Metrics
ESG Focus Areas
- Economic
- Environmental
- Social
- Governance
- Human Rights
Environmental Achievements
- GHG emission reduction projects
- Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
- Water stewardship initiatives
- Biodiversity and land management initiatives
- Land rehabilitated
Social Achievements
- Programs and practices that assess and manage the impacts of operations on communities
- Building mutual respect initiatives
- Strengthening our business through diverse and inclusive teams
- Supporting our people initiatives
- Training and education programs
Governance Achievements
- Robust Anti-Corruption Management Policies and Procedures
- Robust Human Rights Management Policies and Procedures
- Robust Labour Management Policies and Procedures
- Robust Environmental Management Policies and Procedures
- Stakeholder engagement
Climate Goals & Targets
Environmental Challenges
- Climate change
- Managing risks related to corruption
- Managing impacts on communities
- Managing security-related material risks
- Managing environmental impacts of products and services
Mitigation Strategies
- Addressing climate change initiatives
- Anti-corruption training
- Programs and practices that assess and manage the impacts of operations on communities
- Security personnel training
- Product stewardship initiatives
Supply Chain Management
Supplier Audits: See Sustainability in our supply chain p10 (number/year or % coverage)
Responsible Procurement
- Sustainability in our supply chain p10
- Benefiting our communities through local procurement p48
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI G3 Sustainability Reporting Guidelines, Mining and Metals Sector Supplement, International Council on Mining and Metals (ICMM), United Nations Global Compact
Third-party Assurance: KPMG
Awards & Recognition
- 2014 Annual Report Australasian Reporting Award – Governance – Gold
Reporting Period: 2014-07 to 2015-06
Environmental Metrics
ESG Focus Areas
- Safety
- Human rights
- Health
- Environment
- Community
- Governance
- People
- Climate Change
Environmental Achievements
- Greenhouse gas emissions were lower than the FY2006 baseline.
- Land and Biodiversity Management Plans were in place at all our operations.
- The Valdivian Coastal Reserve achieved formal conservation status as Chile’s largest private conservation easement.
- All our operations that identified water-related material risks, implemented at least one project to improve the management of associated water resources.
- 40 per cent reduction in potential occupational exposures to carcinogens and airborne contaminants requiring the use of personal protective equipment compared to our FY2012 baseline.
Social Achievements
- US$225 million invested in community programs, including US$83 million to the BHP Billiton Foundation.
- All operating assets have local procurement plans in place with targets.
- Female representation increased by 13 per cent in manager and senior leadership roles to 21 per cent and 2 per cent in our overall workforce representation to 17 per cent.
- Female representation in our graduate intake increased by 7.6 per cent at a global level to 42 per cent and by 10 per cent to 46 per cent in Australia.
Governance Achievements
- US$7.3 billion total payments to governments.
- 1,677 business conduct cases were recorded and investigated, with appropriate actions taken.
- Resolution of SEC investigation into potential breaches of the US Foreign Corrupt Practices Act (FCPA) with a US$25 million civil penalty.
Climate Goals & Targets
- A 40% reduction in potential exposures compared with our FY2012 baseline (by 30 June 2017).
- Maintain total greenhouse gas emissions below FY2006 levels while continuing to grow the business (by 30 June 2017).
- Zero work-related fatalities.
- Annual year-on-year improvement of total recordable injury frequency (TRIF).
Environmental Challenges
- 5 work-related fatalities in FY2015.
- Two significant community incidents during FY2015, both being collisions on public roads.
- Increase in employee occupational illness (74% on FY2014).
- Variability in the robustness of reporting processes for occupational illnesses.
- Noise-induced hearing loss (NIHL) remains an ongoing health issue.
- Concerns expressed by communities near Cerrejón operation in Colombia (resettlements, livelihoods, drought).
- Historic land compensation matters at IndoMet Coal Project (IMC), Indonesia.
Mitigation Strategies
- Company-level safety intervention initiated in FY2015.
- Independent investigations undertaken for each fatality, with remedial action taken.
- Review of occupational illness across the Group to identify and address reporting process variability.
- Implementation of exposure controls and programs to address NIHL and musculoskeletal illnesses.
- Cerrejón management engaging with communities to address drought impacts and resettlement issues.
- IMC committed to working with community and government to resolve land compensation matters.
Supply Chain Management
Responsible Procurement
- Supplier relationships managed in accordance with contractual arrangements, regulatory frameworks, Our Charter, Our Code of Business Conduct, and relevant GLDs.
- Zero tolerance for breaches of law and human rights infringements.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (e.g., floods and cyclones)
- Chronic changes in climate conditions (e.g., temperature changes)
- Cumulative impacts from direct and indirect climate impacts (e.g., changes to water availability)
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI G4 Comprehensive-level reporting, ICMM Sustainable Development Framework, UNGC
Third-party Assurance: KPMG
Reporting Period: 2015
Environmental Metrics
ESG Focus Areas
- Health and safety
- Environmental responsibility
- Supporting communities
- Climate change
- Governance
- Human capability and social inclusion
Environmental Achievements
- Six per cent reduction in greenhouse gas emissions (CO2-e)
Social Achievements
- US$225 million invested in local communities across the world on projects that include improving access to education and healthcare
- Developed a new BHP Billiton Social Investment Framework
Governance Achievements
- Completed the demerger of South32
- Appointed Anita Frew to the Board as a Non-executive Director
Climate Goals & Targets
- Reduce potential occupational exposure to carcinogens and airborne contaminants by 10% by FY2017
Environmental Challenges
- Five work-related fatalities
- Disappointing safety performance
- Lower commodity prices
- Global economic volatility
- Reduction in Chinese demand
- Actions by governments or political events in the countries in which we operate
- Climate change impacts
- Cost pressures and reduced productivity
- Unexpected natural and operational catastrophes
- Non-operated assets may not comply with our standards
- Breaches in IT security processes
Mitigation Strategies
- Company-wide program of engagement to make our workplaces safer
- Focus on productivity, offsetting some of the downturn in commodity prices
- Demerger of South32 to create a more focused portfolio
- Improved operational productivity
- Reduced capital and exploration expenditure
- New BHP Billiton Social Investment Framework
- Taking action to reduce emissions, build the resilience of our operations and supply chains, and work with others to support effective policy development
- Exploring opportunities to invest in low-emission technologies
- Risk management and business continuity plans
- Global sourcing arrangements to ensure continuity of supply and competitive costs for key supply inputs
- IT security controls
Supply Chain Management
Responsible Procurement
- Seek to ensure our customers, suppliers, agents and service providers maintain business practices and workplaces that are aligned with our GLDs
Climate-Related Risks & Opportunities
Physical Risks
- Changes in rainfall patterns
- Water shortages
- Rising sea levels
- Increased storm intensities
- Higher temperatures
- Cyclone management
- Storm intensity and storm surge levels
Transition Risks
- Regulatory responses to greenhouse gas emissions
- Divestment campaigns focused on fossil fuels
- Potential gap between the current valuation of fossil fuel reserves and the reduced value that could result if a significant proportion of reserves were rendered incapable of extraction
Opportunities
- Upside for uranium, high-quality hard coking coal, iron ore lump product, copper, and gas
Reporting Standards
Frameworks Used: International Financial Reporting Standards (IFRS), International Council on Mining and Metals (ICMM) Sustainable Development Framework, United Nations Global Compact, United Nations Declaration of Human Rights, Voluntary Principles on Security and Human Rights
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- Health and safety
- Environmental responsibility
- Community support
- Climate change
- Human rights
- Governance
Environmental Achievements
- Reduced GHG emissions by 13% compared to the adjusted FY2006 baseline.
- Achieved targets for land and biodiversity management planning.
Social Achievements
- Voluntary social investment totalled US$178.7 million.
- Improved inclusion index by 1% in the CY2016 Employee Perception Survey.
- Increased female representation in manager and senior leadership roles by 1% to 22%.
Governance Achievements
- Implemented a new Operating Model to simplify the portfolio and increase agility.
- Established a CEO-led Inclusion and Diversity Council.
- Completed an external Board evaluation and internal evaluations of individual Directors.
Climate Goals & Targets
- Maintain a strong balance sheet and solid 'A' credit rating.
- Achieve US$2.2 billion in productivity gains over two years to the end of FY2017.
- Increase system capacity at WAIO to 290 Mt in FY2019.
- Reduce potential occupational exposure to carcinogens and airborne contaminants by 10% by 30 June 2017.
Environmental Challenges
- Samarco dam failure and its significant environmental and social impacts.
- Fluctuations in commodity prices and global economic volatility.
- Reduction in Chinese demand for commodities.
- Potential liabilities from litigation and other actions resulting from the Samarco dam failure.
- Cost pressures and reduced productivity.
- Climate change risks and opportunities.
Mitigation Strategies
- Established a permanent presence in Belo Horizonte to support Samarco's remediation and response work.
- Entered into a Framework Agreement for the restoration of the environment and communities affected by the dam failure.
- Implemented cost reduction measures and productivity gains.
- Diversified portfolio of commodities, geographies, and currencies.
- Engaged with governments and stakeholders to mitigate potential adverse impacts.
- Incorporated climate change considerations into Group scenario planning and investment decisions.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Changes in rainfall patterns
- Water shortages
- Rising sea levels
- Increased storm intensities
- Higher temperatures
Transition Risks
- Regulatory responses to greenhouse gas emissions
- Stranded asset risk
Opportunities
- Development of low-emissions technology
- Renewable energy
Reporting Standards
Frameworks Used: International Financial Reporting Standards (IFRS)
Awards & Recognition
- Included in the Climate Disclosure Leadership Index in 2015
Reporting Period: 2016-07 to 2017-06
Environmental Metrics
ESG Focus Areas
- Safety
- Climate Change
- Community Engagement
- Indigenous Peoples
- Human Rights
- Environmental Management
- Governance of Non-Operated Joint Ventures
- Ethics and Integrity
- Supply Chain Sustainability
- Workforce Diversity and Inclusion
- Water Management
- Biodiversity
- Transparency
Environmental Achievements
- 21% reduction in GHG emissions compared with the FY2006 base year
- Projects achieved more than 975,000 tonnes of CO2-e of annualised abatement in FY2017
- All assets with water-related material risks implemented at least one project to improve water resource management
- Land and biodiversity management plans in place at all operations
- Committed over US$50 million towards the conservation and continuing management of 620,000 hectares of high biodiversity and ecosystem value land
Social Achievements
- US$80.1 million invested in FY2017 in community programs
- 22% of external expenditure with local suppliers
- Improved gender balance in external hiring and reduction of the turnover rate for women
- Increased Indigenous employees from 829 in FY2016 to 921 in FY2017
Governance Achievements
- Annual reviews for alignment with the Voluntary Principles on Security and Human Rights were conducted
- All assets have local procurement plans in place with targets
- Risk review of all significant dams across operated assets and non-operated joint ventures confirmed dams to be stable
- Developed a global standard defining requirements for managing BHP’s interest in non-operated joint ventures
Climate Goals & Targets
- Achieve net-zero operational GHG emissions in the second half of this century
- Collaborate to enable integrated water resource management in all catchments by FY2030
- Improve marine and terrestrial biodiversity outcomes by FY2022; measurable contribution to conservation, restoration and sustainable use of marine and terrestrial ecosystems by FY2030
- Zero work-related fatalities
- Year-on-year improvement of TRIF
- Zero significant community events
- Invest not less than one per cent of pre-tax profit in community programs
- Reduce FY2022 fresh water withdrawal by 15 per cent from FY2017 levels
- Maintain FY2022 GHG emissions at or below FY2017 levels
- Develop regional Indigenous Peoples Plans
Environmental Challenges
- Two workplace fatalities
- Samarco dam failure
- Water-related material risks at some assets
- Potential occupational exposures to carcinogens and airborne contaminants
- Coal workers' pneumoconiosis cases
- Concerns expressed by resettled communities near Cerrejón
- Labour dispute at Escondida
Mitigation Strategies
- Independent investigations into fatalities and implementation of preventative measures
- Establishment of Fundação Renova to rebuild communities and restore the environment impacted by the Samarco dam failure
- Implementation of projects to improve water resource management
- Exposure-reduction projects including innovation and new technologies
- Review and enhancement of dust controls across coal operations, support for government reviews and inquiries, and work with stakeholders to address gaps in the Queensland Coal Mine Workers Health Scheme
- Continued work with Cerrejón and resettled communities to address concerns
- Gradual restart of operations at Escondida following resolution of labour dispute
Supply Chain Management
Supplier Audits: Risk-based approach to assessing suppliers
Responsible Procurement
- Commercial framework aligned with Our Charter values and regulatory frameworks
- Zero tolerance for child labour, forced labour, etc.
- Support for local suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of low-emissions technologies, renewable energy integration
Reporting Standards
Frameworks Used: GRI Standards (comprehensive level), ICMM Sustainable Development Framework, UN Global Compact
Certifications: Null
Third-party Assurance: KPMG
UN Sustainable Development Goals
- Goal 1, 2, 3, 4, 5, 6, 8, 10, 13, 14, 15, 16
BHP's social investment and business activities contribute to the achievement of these SDGs.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Industrial Desalination Plant of the Year Prize (Escondida Water Supply project)
Reporting Period: 2017-07 to 2018-06
Environmental Metrics
ESG Focus Areas
- Climate Change
Environmental Achievements
- Maintained total operational emissions in FY2018 at or below FY2017 levels while growing the business (though a 1% increase was noted, primarily due to increased Scope 2 emissions from Minerals Americas).
Social Achievements
- Not disclosed
Governance Achievements
- Board-level oversight of climate-related issues; incentives for management linked to emissions reduction targets; Sustainability Committee actively engaged in climate change strategy and governance.
Climate Goals & Targets
- Achieve net-zero operational GHG emissions in the latter half of this century.
- Not disclosed
- Maintain total operational emissions in FY2022 at or below FY2017 levels (16.3 million tonnes CO2e) while growing the business.
Environmental Challenges
- Reduced demand for energy coal products due to technological shifts and policy changes; increased likelihood of extreme weather events impacting production; enhanced emissions-reporting obligations increasing operating costs.
Mitigation Strategies
- Portfolio diversification; robust risk-based approach to adapting to physical climate impacts; engagement with stakeholders on reporting obligations and policy development.
Supply Chain Management
Supplier Audits: 100% of suppliers by number and procurement spend
Responsible Procurement
- Application of BHP's standards of health, safety, anti-corruption, and environmental protection to direct suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Increased severity and frequency of extreme weather events (cyclones, floods, hurricanes)
Transition Risks
- Regulatory changes, market shifts impacting demand for fossil fuel products, enhanced emissions-reporting obligations
Opportunities
- Increased demand for copper and nickel in low-emission technologies; growth opportunities for natural gas as a transition fuel.
Reporting Standards
Frameworks Used: GHG Protocol, IPCC Guidelines for National Greenhouse Gas Inventories, 2006, TCFD
Certifications: Null
Third-party Assurance: KPMG
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Copper, nickel, natural gas (avoided emissions)
Awards & Recognition
- Not disclosed
Reporting Period: 2018
Environmental Metrics
ESG Focus Areas
- Transparency
- Tax
- Social Investment
- Community Relations
Social Achievements
- Voluntarily invested US$77.1 million in social projects across host communities.
Governance Achievements
- Increased transparency by disclosing profit, number of employees, and effective tax rates on a country-by-country basis for key jurisdictions.
Environmental Challenges
- Australia's declining tax competitiveness compared to other OECD countries.
- Tax disputes with the Australian Taxation Office (ATO).
Mitigation Strategies
- Advocating for a reduction in Australia's corporate tax rate.
- Engaging with tax authorities to resolve disputes.
- Implementing a conservative approach to tax and avoiding aggressive tax planning.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Australian Voluntary Tax Transparency Code, UK Regulations implementing the EU Accounting Directive
Third-party Assurance: KPMG
Reporting Period: 2018-07 to 2019-06
Environmental Metrics
ESG Focus Areas
- Safety
- Portfolio
- Capital discipline
- Culture and capability
- Social value
- Climate change
- Human rights
- Community wellbeing
Environmental Achievements
- Combined Scope 1 and Scope 2 emissions (operational emissions) in FY2019 totalled 14.7 million tonnes of carbon dioxide equivalent (CO2-e), 3 per cent below our FY2017 target baseline.
- Increased proportion of desalinated water in use at Escondida to 40% at the end of FY2019.
- Rehabilitated and closed 1,470 hectares of land in Australia.
Social Achievements
- Increased representation of women working at BHP by 2.1 percent.
- Increased Indigenous employment in Minerals Australia from 4.4% to 5%.
- Invested US$93.5 million in voluntary social investment.
Governance Achievements
- Completed the sale of Onshore US oil and gas business, returning US$10.4 billion to shareholders.
- Established a dedicated Transformation Office to focus on workforce capability and technology deployment.
- Welcomed two new Board members, Ian Cockerill and Susan Kilsby.
Climate Goals & Targets
- Achieve net-zero operational GHG emissions in the latter half of this century.
- Achieve gender balance globally by CY2025.
- Develop a medium-term target for operational emissions in FY2020.
- Collaborate to enable integrated water resource management in all catchments where we operate by FY2030.
- Reduce FY2022 freshwater withdrawal by 15% from FY2017 levels.
- Reduce coal mine dust OEL from 2 mg/m3 to 1.5 mg/m3 by 1 July 2020.
- Reduce potential exposure to silica in coal mine workers by 50% by 1 July 2021.
Environmental Challenges
- Slight rise in total recordable injury frequency to 4.7 per million hours worked.
- Production impacts from a train derailment and Tropical Cyclone Veronica.
- Lower average realised prices for copper and thermal coal.
- Heightened policy uncertainty.
- Climate change risks (physical and transition).
Mitigation Strategies
- Shared findings of fatality investigation across the organisation.
- Implemented additional procedures to prevent train rollaway events.
- Established new requirements for engaging and managing contractors.
- Established a five-year US$400 million Climate Investment Program.
- Developed a Water Stewardship Position Statement.
- Implemented a comprehensive tailings governance plan and established an internal Tailings Taskforce.
Supply Chain Management
Responsible Procurement
- Local Buying Program
- Working with suppliers to improve product design and ensure diversity in their work teams.
Climate-Related Risks & Opportunities
Physical Risks
- Changes in precipitation patterns
- Water shortages
- Rising sea levels
- Increased storm intensities
- Higher temperatures
Transition Risks
- Policy, regulatory, legal, technological, and market responses to climate change
- Reduced demand for fossil fuels
- Increased competition for resources
Opportunities
- Development of low emissions technologies
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001
UN Sustainable Development Goals
- Goal 6
- Goal 7
- Goal 13
- Goal 14
- Goal 15
Initiatives contribute to these goals through water stewardship, emissions reduction, biodiversity conservation, and community development.
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Health and safety
- Environment
- Climate change
- Water
- Society
- People
- Ethics and business conduct
Environmental Achievements
- Operational GHG emissions were 3% below the FY2017 target baseline.
- Freshwater withdrawal reduction of 1% compared to FY2017.
- Rehabilitated and closed 1,470 hectares of land.
Social Achievements
- Social investment of US$93.5 million to communities around the world.
- Increased Indigenous employment in Minerals Australia from 4.4% to 5%.
- Launched a Group-wide campaign about respectful behaviour.
Governance Achievements
- Updated Our Requirements for Security, Crisis and Emergency Management, and Business Continuity Plans standard.
- Developed a globally consistent methodology for grievance mechanisms.
- Completed negotiations with Union N°1 at Minera Escondida Limitada and signed a new collective agreement.
Climate Goals & Targets
- Achieve net-zero operational GHG emissions in the latter half of this century.
- Develop a medium-term target for operational emissions in FY2020.
- Collaborate to enable integrated water resource management in all catchments by FY2030.
- Maintain total operational GHG emissions at or below FY2017 levels by FY2022.
- Reduce FY2022 freshwater withdrawal by 15% from FY2017 levels.
Environmental Challenges
- One workplace fatality.
- Slight rise in total recordable injury frequency.
- Significant environmental impacts of the tailings dam failure at Samarco.
- Increased number of community complaints (71 to 138 incidents).
Mitigation Strategies
- Redoubled efforts to improve workplace safety.
- Established new requirements for engaging and managing contractors.
- Introduced a new event management system.
- Continued support for Fundação Renova's operations.
- Working with stakeholders to address community concerns.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Compliance with HSEC standards for contractors.
- Integrating human rights due diligence into supplier management processes.
Climate-Related Risks & Opportunities
Physical Risks
- Increased severity of extreme weather events
- Longer-term changes in climate patterns
Transition Risks
- Policy, regulatory, legal, technological, and market responses to climate change.
Opportunities
- Development of low emissions technologies.
Reporting Standards
Frameworks Used: ICMM Sustainable Development Framework, GRI Standards, UNGC
Certifications: Null
Third-party Assurance: EY
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Health and safety
- Environmental responsibility
- Community support
- Inclusion and diversity
- Climate change
- Decarbonization
- Water stewardship
- Responsible copper production
- Indigenous Peoples' rights
- Ethical conduct
- Sustainable mining
Environmental Achievements
- Escondida began operating 100% with desalinated water
- Completed construction of the new Spence concentrator
- Replaced fossil fuel power purchase agreements with contracts based on renewable energy
- Spence reduced PM10 emissions by 24% compared to 2019
- Spence reduced exposure to silica by 21% compared to 2019
Social Achievements
- Launched the Vamos Juntos social investment plan to address the pandemic
- Share of women in BHP Minerals Americas increased to 23%
- Reduced accident rate (TRIF) from 2.02 in 2019 to 1.43 in 2020
- Created a US$25 million relief fund for contractor companies
- Implemented the Locales Conectados program in Sierra Gorda
- Increased the number of workers belonging to indigenous peoples from 6.6% in 2019 to 6.8% in 2020
Governance Achievements
- Presented Letter of Commitment to the Copper Mark Responsible Production Framework
- Achieved a conciliation agreement with Chile’s State Defence Council, the Indigenous Community of Peine and the Atacameño Peoples Council
- Updated the Community Concerns, Complaints and Grievances Procedure
- Implemented new measures to increase the hiring of people with disabilities
- Added sexual harassment and assault as a material risk
Climate Goals & Targets
- Net zero operational greenhouse gas emissions by 2050
- Achieve 100% renewable energy by mid-2020s
- Reduce water consumption
- Reduce PM10 emissions by 60% from the centers of Sierra Gorda and Spence by 2025
Environmental Challenges
- COVID-19 pandemic
- Decreased ore grade at Escondida (4%)
- Planned maintenance at Spence
- Climate change impacts
- Particulate matter emissions
- Water scarcity
Mitigation Strategies
- Implemented more than 100 measures to prevent the spread of COVID-19
- Record concentrator throughput at Escondida offset the impact of ore grade decline
- Completed Spence Growth Option (SGO) project
- Developed and implemented the Vamos Juntos plan
- Signed new renewable energy contracts
- Developed a plan to reduce PM10 emissions by 60% by 2025
- Ceased water extraction from high Andean aquifers
- Developed a Water Situation Analysis
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- BHP’s group-wide guidelines set out in Our Requirements for Supply, Contract Management Framework and Minimum Requirements for Contractors
- Local Buying Program
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI Standards (Core option)
Certifications: Null
Third-party Assurance: EY
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- BHP’s Local Buying Program recognized in the Sustainable Management category of the Antofagasta Industrialists Association’s 2020 awards ceremony
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
Climate Goals & Targets
- Achieve net zero operational GHG emissions by 2050.
- Reduce operational GHG emissions (Scope 1 and Scope 2 from operated assets) by at least 30 per cent from FY2020 levels by FY2030.
- Maintain total operational GHG emissions (Scope 1 and 2 from operated assets) at or below FY2017 levels by FY2022.
Environmental Challenges
- Improving the accuracy of GHG emissions estimates from non-operated assets and purchased goods and services.
- Addressing double counting of GHG emissions in the reported Scope 3 inventory.
Mitigation Strategies
- Developed improved methodologies for calculating GHG emissions from non-operated assets, purchased goods and services, and the processing of sold products.
- Updated approach to estimating GHG emissions from the processing of iron ore and metallurgical coal in steelmaking to eliminate double counting.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Greenhouse Gas Protocol, GRI Standard GRI 305, TCFD
Third-party Assurance: Ernst & Young (EY)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
Environmental Achievements
- Successfully developed and operationalised a carbon accounting and decision support system tailored to ship chartering, leveraging DNV’s Veracity platform.
- Improved the equity share accounting approach for Minerals Americas assets in Chile to better reflect the overall net emissions position.
Climate Goals & Targets
- Net zero operational GHG emissions by 2050
- Net zero by 2050 for operational GHG emissions of direct suppliers
- Net zero by 2050 for GHG emissions from all shipping of BHP products
- Reduce operational GHG emissions (Scope 1 and Scope 2 from operated assets) by at least 30 per cent from FY2020 levels by FY2030.
- Maintain total operational GHG emissions (Scope 1 and Scope 2 from operated assets) at or below FY2017 levels by FY2022.
Environmental Challenges
- Challenges of a net zero pathway for customers in steelmaking.
- Data limitations in upstream Scope 3 emissions.
Mitigation Strategies
- Developed new methodologies for estimating emissions of copper and nickel products.
- Improved the accuracy of GHG emissions estimate by switching the emissions estimation of high-spend goods from spend-based emission factors to industry average quantity-based emission factors or emission factors sourced directly from suppliers.
Supply Chain Management
Responsible Procurement
- Target net zero by 2050 for operational GHG emissions of direct suppliers
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Greenhouse Gas Protocol, GRI Standard GRI 305, TCFD
Third-party Assurance: EY
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Decarbonisation
- Healthy environment
- Indigenous partnerships
- Safe, inclusive and future-ready workforce
- Thriving, empowered communities
- Responsible supply chains
Environmental Achievements
- Reduced operational GHG emissions by 11% from FY2022 levels; 32% reduction since FY2020.
- Signed two new renewable PPAs for Olympic Dam and WAIO's Port Hedland.
- Achieved 1.3% of land and water under nature-positive management practices.
Social Achievements
- Increased female employee representation to 35.2%.
- Increased Indigenous employee representation in Australia (8.6%), Chile (9.7%), and Canada (7.7%).
- Increased Indigenous procurement spend to US$332.6 million (more than double FY2022).
Governance Achievements
- Expanded the Climate Change Steering Committee to a Sustainability and ESG Steering Committee.
- Released updated Indigenous Peoples Policy Statement.
- Completed a review of the Human Rights Policy Statement.
Climate Goals & Targets
- Achieve net zero operational GHG emissions by 2050.
- Pursue net zero Scope 3 GHG emissions by 2050.
- Target net zero by 2050 for the operational GHG emissions of our direct suppliers.
- Support industry to develop technologies and pathways capable of 30% emissions intensity reduction in integrated steelmaking by CY2030.
- Support 40% emission intensity reduction of BHP-chartered shipping of BHP products by CY2030.
- Reduce operational GHG emissions by at least 30% from FY2020 levels by FY2030.
- Create nature-positive outcomes by having at least 30% of land and water under conservation, restoration, or regenerative practices by FY2030.
Environmental Challenges
- Two fatalities in the workplace.
- Cost inflation.
- Changing geopolitical landscape impacting global markets.
- Supply chain disruptions (e.g., heavy rain at Mt Keith, ore supply issues from Mincor Resources).
Mitigation Strategies
- Enhanced focus on safety systems and processes.
- Disciplined cost control.
- Portfolio reshaping to align with megatrends.
- Purchasing more third-party products to mitigate supply disruptions.
Supply Chain Management
Responsible Procurement
- Responsible Minerals Program
- Indigenous procurement program
- Assessment of decarbonisation targets of top 500 suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme high temperature
- Extreme precipitation
- Flood
- Tropical cyclones
- Sea level rise
- Storm surge
Transition Risks
- Policy, regulatory, legal, technological, market, and societal responses to climate change.
- Carbon pricing legislation in customer countries.
Opportunities
- Development of energy-efficient products and processes.
- Growth in demand for renewable energy commodities.
Reporting Standards
Frameworks Used: GRI Standards, TCFD recommendations
Certifications: ISO 14001
Awards & Recognition
- Shingo prize for operational excellence (Escondida Cathodes)
- ‘Elevate’ status from Reconciliation Australia (Reconciliation Action Plan)
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Decarbonisation
- Healthy environment
- Indigenous partnerships
- Safe, inclusive and future-ready workforce
- Thriving, empowered communities
- Responsible supply chains
Environmental Achievements
- Reduced operational GHG emissions (Scopes 1 and 2) by 32% from FY2020 baseline.
- Achieved 100% renewable electricity use at Chilean operations in CY2023.
- Increased area under nature-positive management practices by 3,295 hectares since FY2023 to 83,012 hectares.
Social Achievements
- Increased Indigenous procurement spend by 83% to US$609 million.
- Increased female employee participation to 37.1% by year-end.
- Improved employee engagement and perception survey wellbeing score to 87%.
Governance Achievements
- Completed the sale of Blackwater and Daunia mines, focusing portfolio on higher-quality steelmaking coal.
- Board updates with Ross McEwan and Don Lindsay joining the Board.
- Launched new Global Controlled Documents suite to streamline mandatory minimum performance requirements.
Climate Goals & Targets
- Achieve net zero operational GHG emissions by CY2050.
- Achieve net zero Scope 3 GHG emissions by CY2050.
- Achieve net zero GHG emissions from all shipping of BHP products by CY2050.
- Reduce operational GHG emissions by at least 30% by FY2030 from FY2020 baseline.
- Support 40% GHG emissions intensity reduction of BHP-chartered shipping by CY2030.
- Support industry to develop steel production technology capable of 30% lower GHG emissions intensity relative to conventional blast furnace steelmaking.
- Reduce water consumption
- Commence construction of boiler diesel displacement solution
- Deliver equipment for proof-of-concept trials for electrified rail and excavator solutions
Environmental Challenges
- Fatality at Saraji mine in January 2024.
- Oversupply in the global nickel market leading to temporary suspension of Western Australia Nickel operations.
- Challenges in achieving rapid GHG emission reductions due to lack of available technology solutions.
Mitigation Strategies
- Investigation into Saraji fatality and implementation of improvement areas.
- Investment of approximately US$300 million per annum in Western Australia Nickel facilities for potential restart.
- Focus on procuring renewable energy, minimizing emissions from production growth, accelerating diesel displacement solutions, and pursuing fugitive methane emission solutions.
Supply Chain Management
Responsible Procurement
- Ethical Supply Chain and Transparency (ESCT) program
- Responsible Minerals Program (RMP)
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Water shortages
- Coastal hazards
Transition Risks
- Regulatory changes
- Market shifts
- Technological advancements
Opportunities
- Development of energy-efficient products and processes
Reporting Standards
Frameworks Used: GRI Standards, SASB Mining and Metals Standards, TCFD recommendations
Certifications: ISO 14001
Third-party Assurance: EY
UN Sustainable Development Goals
- Goal 6 (Clean Water and Sanitation)
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Initiatives contribute to these goals through water stewardship, renewable energy use, and GHG emission reduction efforts.
Awards & Recognition
- Chamber of Minerals and Energy of Western Australia Women in Resources Awards (finalist)