Professional Documents
Culture Documents
Sustainability and ESG Navigators and Databook 2021
Sustainability and ESG Navigators and Databook 2021
Sustainability and ESG Navigators and Databook 2021
Methodology Definition and calculation of the sustainability performance metrics included in this document. Definition
GRI and SDGs Global Reporting Initiative (GRI) Content Index and link to relevant UN Sustainable Development Standards Index
Goals (SDGs)
TCFD Task Force on Climate-related Financial Disclosures (TCFD) Index Standards Index
TCFD Supplementary Guidance for Non-Financial Groups Index
UNGC and CEO Water Mandate UN Global Compact Progress against 10 Principles Index Standards Index
CEO Water Mandate Index
ICMM International Council on Mining and Metals (ICMM) Mining Principles Index Standards Index
International Council on Mining and Metals (ICMM) Position Statement Index
TSF – CoE Tailings storage facilities disclosure: response to the Church of England Pensions Board and the Tables
Council on Ethics Swedish National Pension Funds
Health and safety (H&S) – performance data Workforce health and safety – Regional summary Tables
Injury rates and numbers
TRIF and HPI Total recordable injury frequency Tables and graphs
High–potential injuries
Occupational illness (OI) Region Occupational illness incidence – employee by region Tables and graphs
Occupational illness incidence – contractor by region
Occupational illness (OI) Employee Occupational illness incidence – employee Table and graph
Occupational illness (OI) Contractor Occupational illness incidence – contractor Table and graph
Significant fines Significant fines for non-compliance with health, safety and environmental laws and/or regulations Tables
Scope 1 & 2 GHG emissions Historical operational emissions and targets Graphs
Operational GHG emissions by source
Biodiversity GRI 304-1 Operated assets owned, leased, managed in, or adjacent to, protected areas and areas of high Table
biodiversity value outside protected areas as at 30 June 2021
Biodiversity GRI 304-3 Areas of habitat protected or restored by the operated assets of BHP as at 30 June 2021 Table
Biodiversity GRI 304-4 Total number of IUCN Red List species and national conservation list species with habitats in areas Table
affected by the operated assets of BHP as at 30 June 2021
Water by asset charts Water withdrawals by asset (by source) Table and graph
Water discharges by asset (by destination)
Water consumption by asset
Disclaimers
Boundary and scope
The terms ‘BHP’, the ‘Company’, the ‘Group’, ‘our business’, ‘organisation’, ‘we’, ‘us’, ‘our’ and ‘ourselves’ refer to BHP Group Limited, BHP Group
Plc and, except where the context otherwise requires, their respective subsidiaries as defined in the notes to BHP’s financial statements in our
Annual Report. Those terms do not include non-operated assets.
The sustainability content published on the BHP website covers BHP’s assets (including those under exploration, projects in development or
execution phases, sites and closed operations) that are wholly owned and/or operated by BHP and assets that are owned as a joint venture
operated by BHP (referred to as ‘assets’ or ‘operated assets’). Our functions are also included.
BHP also holds interests in assets that are owned as a joint venture but not operated by BHP (referred to as ‘non-operated joint ventures’ or ‘non-
operated assets’). Notwithstanding that the sustainability content published on the BHP website may include references to non-operated assets,
non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our
operated assets unless stated otherwise. Our non-operated assets include Antamina, Cerrejón, Samarco, Atlantis, Mad Dog, Bass Strait and North
West Shelf.
References to a ‘joint venture’ are used for convenience to collectively describe assets that are not wholly owned by BHP. Such references are not
intended to characterise the legal relationship between the owners of the asset
Annual Report BHP Reports
References
The table below provides a list of documents and webpages mentioned in this document.
Regional Indigenous Peoples Plans such as 2017–2020 Reconciliation Action Plan Document
Closure Website
Community Website
Environment Website
Governance Website
Health Website
People Website
Safety Website
Sustainability Website
Tailings storage facilities Website
Water Website
We use various sustainability performance metrics (SPMs) to reflect our sustainability performance.
The SPMs are externally verified and a copy of the EY assurance statement is available in the BHP Annual Report 2021 section 1.13.16.
This section outlines why we believe the SPMs are useful to the BHP Board, management, investors and other stakeholders, and the methodolog
behind the metrics. A detailed definition and explanation is provided in the below methodology tables for each of our most material SPMs.
All references to section numbers are to sections of the BHP Annual Report 2021, unless otherwise indicated.
People-related metrics
Our global workforce is the foundation of our business and we believe supporting the wellbeing of our people and promoting an inclusive and diverse culture are vit
SPMs for gender, employment type and turnover are key indicators, which allow the Board, management, investors and other stakeholders to measure and track our
TRIF
High-potential injury events
Occupational exposures
Community-related metrics
We seek to create and contribute to social value in the communities where we operate through the positive social and economic benefits generated by our core busi
advocacy on important issues and our contribution as community partners. Our community SPMs allow the Board, management, investors and other stakeholders t
value in the communities where we operate and monitor our relationships and engagement with this important stakeholder group.
Environment-related metrics
We acknowledge the nature of our operations can have significant environmental impacts. Our environmental SPMs allow the Board and management to manage an
adverse impacts our operations may have on, air quality, water resources, biodiversity and habitats. They also allow the Board, management, investors and other sta
performance towards our environmental commitments. These measures are used to inform strategic focus areas, support planning and investments in infrastructure
potentially reduce environmental impacts. BHP respects legally designated protected areas and commits to avoiding areas or activities where we consider the enviro
Additionally, our operations and growth strategy depend on obtaining and maintaining access to environmental resources, such as land and water. Significant envir
compliance can lead to material adverse impacts including costly environmental liabilities, which hinder our growth and expansion strategies.
Assumptions and key references used in the preparation of our energy and greenhouse gas (GHG) emissions data can be found in the associated BHP Scope 1, 2 and 3 GHG E
Annual Report BHP Reports
Methodology
dation of our business and we believe supporting the wellbeing of our people and promoting an inclusive and diverse culture are vital for maintaining a competitive advantage. The
pe and turnover are key indicators, which allow the Board, management, investors and other stakeholders to measure and track our near and long-term progress.
Proportional data for average number of employees is based on the average of the number of employees at the last day of each calendar month for a 10-month period from July
to April, which is then used as the average for FY2021.
The number and average number (and percentages) of employees by region shows the weighted average number of employees based on BHP ownership.
Contractor data is collected from internal surveys and our organisation systems and averages for a 10-month period from July 2020 to April 2021, which is then used as the
average for FY2021.
The gender numbers in section 1.12 People and culture are a ‘point in time’ snapshot at 30 June 2021 used in internal management reporting for the purposes of monitoring
progress against our aspirationalal goal of a gender-balanced workforce by the end of FY2025.
These methodologies have been prepared in accordance with GRI standard 102-8 and GRI standard 405-1.
Data for employee new hires, including by gender, age group and region, is based on the number of employee new hires for a 10-month period from July 2020 through to April
2021 divided by the average number of employees at the last day of each calendar month for the same period, which is then used to calculate a weighted average for FY2021
based on our operated assets. Employee new hires refers to all employment types.
Data for employee turnover, including by gender, age group and region, is based on the number of employee new terminations for a 10-month period from July 2020 through to
April 2021 divided by the average number of employees at the last day of each calendar month for the same period, which is then used to calculate a weighted average for
FY2021 based on our operated assets. Employee new terminations refers to all employment types.
These methodologies have been prepared in accordance with GRI standard 401-1.
of our worforce and the communities where we operate. This is why we focus on identifying safety risks and implementing controls designed to minimise the likelihood and
he health and safety SPMs allow the Board, management, investors and other stakeholders to measure and track health and safety performance at our operated assets, including
s, occupational illness and exposures. We focus on strengthening in-field verification of material and fatal risks, enhancing our internal investigation process and widely sharing
ng additional quality field time to engage our workforce.
TRIF (total recordable injury frequency) is an indicator highlighting broad personal injury trends and refers to the number of recordable injuries per hours worked during the
financial year. TRIF equals the sum of (fatalities + lost-time cases + restricted work cases + medical treatment cases) x 1,000,000 (or 200,000) ÷ actual hours worked. In
accordance with the SASB Metals and Mining Standard we also report TRIF per 200,000 hours worked. BHP adopts the US Government's Occupational Safety and Health
Administration (OSHA) guidelines for the recording and reporting of occupational injury and illnesses. TRIF statistics exclude non-operated assets.
Year-on-year improvement of TRIF is one of our five-year sustainability targets and is one of the indicators used to assess our safety performance.
FY2016 to FY2018 data includes Continuing operations and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued operations (Onshore US assets)
to 28 February 2019 and Continuing operations.
This methodology has been prepared in accordance with GRI standard 403-9 and OSHA guidelines.
High-potential injury (HPI) events refers to the number of recordable injuries and first aid cases where there was the potential for a fatality during the financial year. High-potentia
injury event trends remain a primary focus to assess progress against our most important safety objective – to eliminate fatalities, and provides insight into our performance on
preventing future fatalities.
The basis of calculation for high-potential injuries was revised in FY2020 from event count to injury count as part of a safety reporting methodology improvement.
FY2016 to FY2018 data includes Continuing operations and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued operations (Onshore US assets)
to 28 February 2019 and Continuing operations.
This methodology has been prepared in accordance with GRI standard 403-9.
An occupational illness is an illness that occurs as a consequence of work-related activities or exposure and includes acute or chronic illnesses or diseases, which may be
caused by inhalation, absorption, ingestion or direct contact. Illness is determined by reference to the US OSHA Recordkeeping Handbook.
Occupational illness incidence is a lag indicator highlighting broad occupational illness trends and refers to the number of employees that suffer from an occupational illness per
million hours worked during the financial year.
Incidence of occupational illness is used to identify situations where exposure controls were effective (no illness occurrence) and where exposure controls were potentially
ineffective (illness occurs). It also informs priorities for exposure reduction projects.
The data for FY2016 to FY2018 includes Continuing operations and Discontinued operations. FY2019 data includes Discontinued operations (Onshore US assets) to 31 October
2018 and Continuing operations.
The data excludes potentially work-related COVID-19 cases. Refer to Annual Report section 1.13.5 for more information.
This methodology has been prepared in accordance with GRI standard 403-10 and the OSHA Recordkeeping Handbook.
Occupational exposures refers to the number of employees who have potential exposure to an agent in the workplace that exceeds either regulatory or the sometimes stricter
BHP internal occupational exposure limits (OELs). These employees are required to wear personal protective equipment (PPE). Reported occupational exposure data in all
cases discounts the effect of PPE.
BHP has adopted a five-year sustainability target to reduce by at least 50 per cent (compared to the adjusted FY2017 exposure data) the number of employees exposed to diese
exhaust particulate matter, coal mine dust and silica.
An OEL is the level of exposure to an agent to which it is believed nearly all people may be repeatedly exposed throughout a working life without adverse effect.
The exposure profile 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. The 95 per cent upper confidence limit of the mean exposure is compared to our OELs.
Quantitative occupational exposure measurements are undertaken to provide assurance that implemented controls remain effective.
e to social value in the communities where we operate through the positive social and economic benefits generated by our core business, our constructive engagement and
nd our contribution as community partners. Our community SPMs allow the Board, management, investors and other stakeholders to track our performance in contributing to social
we operate and monitor our relationships and engagement with this important stakeholder group.
Our voluntary social investment is calculated as 1 per cent of the average of the previous three years’ pre-tax profit. Social investment is our voluntary contribution towards
projects or donations with the primary purpose of contributing to the resilience of the communities where we operate and the environment, aligned with our broader business
priorities. By building common ground through collective impact and partnerships, our social investments will purposefully create social value to strengthen the communities
where we operate, to improve the resilience of the natural environment, and address the strategic priorities of the business. Donations from BHP to the BHP Foundation are
included in the calculation of our 1 per cent target as are the costs of administering our social investment programs. The Sustainability Committee reviews our social investment
spend on a quarterly basis.
Our social investment spend is one of the metrics used to monitor our performance against our commitment to making a contribution to social value and meeting our five-year
sustainability target.
A significant event resulting from BHP operated activities is one with an actual severity rating of four or 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. A significant community event is an event that could have a serious or severe
impact on the community (including impacts to livelihoods, infrastructure, health, safety, security or cultural heritage) or a substantiated human rights violation.
This metric assists the Board and management in monitoring BHP’s social performance and is one indicator of the health of our relationship with the communities where we
operate.
This methodology has been prepared in accordance with GRI standard 413-2 and GRI standard MM6.
Community complaints refers to a verbal or written notification made directly to a BHP representative by a member of a community relating to an alleged adverse impact on that
community arising from BHP’s activities and/or employee or contractor behaviour. Trends in community complaints are analysed by management every six months and this data
is used as one of the inputs for management to determine whether we are operating within our risk appetite.
This metric assists the Board and management to monitor BHP’s social performance and is one indicator of the health of our relationship with the communities where we operate
This methodology has been prepared in accordance with GRI standard MM7.
ur operations can have significant environmental impacts. Our environmental SPMs allow the Board and management to manage and monitor the inherent risks relating to, and any
may have on, air quality, water resources, biodiversity and habitats. They also allow the Board, management, investors and other stakeholders to measure and track our
nmental commitments. These measures are used to inform strategic focus areas, support planning and investments in infrastructure and identify improvement opportunities that
l impacts. BHP respects legally designated protected areas and commits to avoiding areas or activities where we consider the environmental risk is outside BHP’s risk appetite.
growth strategy depend on obtaining and maintaining access to environmental resources, such as land and water. Significant environmental events and incidents of non-
adverse impacts including costly environmental liabilities, which hinder our growth and expansion strategies.
Land may refer to sea, lake or river beds if appropriate and includes land for infrastructure to support extractive operations.
Land disturbed includes the total land area at the time of reporting that is physically impacted by the activities of the business that substantially disrupts the pre-existing habitats
and land cover.
Land rehabilitated refers to an area developed into a condition that meets the agreed post-disturbance land use developed in consultation with relevant regulators and other
stakeholders.
Area restored, for the purposes of GRI 304-3, refers to areas that were used during or affected by operational activities, and where remediation measures have either restored th
environment to its original state, or to a state where it has a healthy and functioning ecosystem.
Land managed for conservation is the total area at the time of reporting managed for the purposes of biodiversity conservation only. It includes land that the business has formall
assigned and manages as a compensatory action as well as other land that the business has protected from disturbance activities and manages for conservation.
Land data is calculated as the total land area owned, leased or managed by BHP as at 30 June of the reporting year, expressed as hectares. Data does not include land
managed for rehabilitation or conservation as part of voluntary social investment.
This methodology has been prepared in accordance with GRI standard MM1 and these metrics assist the Board and management in understanding the magnitude of land that is
under direct control of BHP and its operational footprint.
Water withdrawals
The volume of water, in megalitres (ML), received and intended for use by the operated asset from the water environment and/or a third-party supplier. We disclose water
withdrawal in ML by operated asset and source (sea, ground and surface waters and third party) as defined in BHP Annual Report section 4.11.4). Volumes by quality type (as
defined in BHP Annual Report section 4.11.4) are also disclosed. Withdrawal volumes disclosed per annum include rainfall and runoff volumes captured and used during the
reporting year. Rainfall and runoff volumes that have been captured and stored are excluded in withdrawals and will be reported in the future year of use. Withdrawal volumes
also include water entrained (as defined in BHP Annual Report section 4.11.4) in ore. Change in water storage over the annual reporting period is reported separately.
Water withdrawal metrics assist the Board and management in understanding the significance of our water resource use, collectively for the Group and by individual operated
assets, and to assess trends over time. It also helps inform investment in infrastructure to reduce water withdrawals and improve efficiency of water use.
Water discharges
The volume of water, in ML, removed from the operated asset and returned to the environment and/or distributed to a third party. This may include discharge to sea, surface
waters, groundwater seepage or aquifer reinjection. We disclose water discharges in ML by operated asset and destination. Volumes by quality type (as defined in BHP Annual
Report section 4.11.4) are also disclosed.
Water discharge metrics assist the Board and management in understanding the amount of water that operated assets must handle and release in line with water quality
requirements. It also helps inform investment in infrastructure to improve water quality, reduce water withdrawals and improve efficiency of water use.
Water diversions
The volume of water, in ML, that is actively managed by an operated asset but not used for any operational purposes. Diversions are reported as both withdrawals and
discharges and may include:
• flood waters that are discharged to an external surface water body
• dewatering volumes produced by aquifer interception that are reinjected to groundwater or discharged to surface water
• ground or surface water that is removed by or supplied to a third party, such as a community
• water removed as part of accessing crude oil that is returned to the sea without use
• water used for ecosystem irrigation
Withdrawal and discharge diverted water may occur in different annual reporting periods, so in any given annual period there may be a differential between withdrawals and
discharges for diverted water.
Water diversion metrics assist the Board and management in understanding the volumes of water handled by the operated asset. This information assists in forecasting water
management costs and identifying opportunities to reduce them.
Water consumption
The volume of water, in ML, used by the operated asset and not returned to the environment or a third party. We disclose consumption by total consumption and use
(evaporation, entrainment and other as defined in BHP Annual Report section 4.11.4).
Water consumption metrics assist the Board and management in the planning of water supplies and infrastructure for future production, expansions or new projects. The metrics
are also used to identify the areas where we have opportunity to reduce water use.
Water recycled/reused
The volume of water, in ML, that is reused or recycled at an operated asset. Reused water is water that has previously being used at the operated asset that is used again withou
further treatment. Recycled water is water that is reused but is treated before it is used again.
Water recycled/reused metrics assist the Board and management in assessing opportunities to reduce water withdrawals. These metrics assist with comparisons of water
recycling/reuse performance and trends between our operated assets and with peers, which can be used to inform and prioritise reuse and recycling improvements and
technological investments.
Water stress
Water stress is defined as the ability, or lack thereof, to meet human and ecological demand for fresh water consistent with definition provided by the CEO Water Mandate. It is a
broad term which considers a number of physical aspects, including water availability, quality and accessibility. For example, water stress may be considered to be high if water
resources are physically scarce; are not directly suitable for use due to quality constraints; or are not available for access due to regulatory restrictions or a lack of infrastructure.
Water stress contributes to the overall baseline risk profile of a site or location
These methodologies have been prepared in accordance with ICMM A Practical Guide to Consistent Water Reporting for the Mining and Metals Industry (Version 1), GRI
standard 303-3, GRI standard 303-4 and GRI standard 303-5 and these metrics assist the Board and management in understanding the volumes of water that the company
interacts with the and water volume and use efficiency trends over time.
Mineral waste refers to the large quantities of material arising as a result of extractive activities. Non-product materials (overburden) have to be removed to give access to
product-bearing material (ores), which are processed, physically or chemically, to release them from their matrix and convert them into output products and waste products
(tailings, slags, sludges, slimes or other process residues). For minerals waste, the figures represent the total deposited in the reporting year, expressed as kilotonnes (kt).
This methodology has been prepared in accordance with GRI standard MM3 and these metrics assist the Board and management in understanding the volumes and types of
waste generated and trends over time.
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. The severity rating considers the nature, extent and duration of the impact and
any corrective actions required to restore ecosystem function.
This metric assists the Board and management in monitoring BHP’s environmental performance and is one indicator of the impacts on the environments where we operate.
mate change may impact BHP in a range of areas. Climate-related risks include the potential physical impacts of acute and chronic risks, and transition risks arising from the
nomy. Our climate change SPMs help us monitor our climate change commitments to manage the risks (threats and opportunities) associated with climate change to BHP, as well as
igations. The SPMs allow the Board, management, investors and other stakeholders to measure BHP’s performance against these commitments.
sed in the preparation of our energy and greenhouse gas (GHG) emissions data can be found in the associated BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology 2021, available a
GRI content index
For the year-ended 30 June 2021
102-5 Ownership and legal form Annual Report 2021 section 4.3 Information on mining operations and
section 4.10.3 Organisational structure.
102-6 Markets served Annual Report 2021 section 1.4 Our business today and section 1.6.1 Our
a. Markets served, including: business model.
i. geographic locations where products and services are offered
ii. sectors served
iii. types of customers and beneficiaries
102-7 Scale of the organization i. Annual R eport 2021 section 1.12 People and culture.
i. total number of employees
ii. total number of operations ii. Annual Report 2021 section 1.10.1 Locations.
iii. net sales
iv. total capitalization broken down in terms of debt and equity iii. iv. Annual Report 2021 section 1.8.2 Key performance indicators, section
v. quantity of products or services provided 1.8.3 Financial results and section 4.1 Financial information summary.
102-8 Information on employees and other workers Annual Report 2021 section 1.12 People and culture and section 4.8.1
a. T otal number of employees by employment contract, by gender People performance data.
b. T otal number of employees by employment contract, by region
c. Total number of employees by employment type, by gender a. b.and c. We do not report total number of employees but we provide a
d. Whether a significant portion of the organization's activities are performed percentage. We are working to improve our disclosures in this area in
by workers who are not employees. If applicable, a description of the nature coming years.
and scale of work performed by workers who are not employees.
e. Any significant variations in the numbers reported in Disclosures 102-8-a, d. We do not report against GRI 102-8-d as the information is unavailable.
102-8-b, and 102-8-c. We are working to improve our disclosures in this area in coming years.
f. An explanation of how the data have been compiled, including any
assumptions made. e. Annual Report 2021 section 1.12 Our People.
102-9 Supply chain Annual Report 2021 section 1.6.1 Our business model.
a. A description of the organization’s supply chain, including its main
elements as they relate to the organization’s activities, primary brands, Modern Slavery Statement FY2021 – Our supply chain.
products, and services.
102-10 Significant changes to the organization and its supply chain i. Annual R eport 2021 section 1.10 Our business – Key developments in
i. changes in the location of, or changes in, operations, including facility F Y2021.
openings, closings, and expansions
ii. changes in the share capital structure and other capital formation, ii. Annual Report 2021 section 2.3.2 Share capital and buy-back programs
maintenance, and alteration operations and section 2.3.18 Share capital, restrictions on transfer of shares and other
iii. changes in the location of suppliers, the structure of the supply chain, or additional information.
relationships with suppliers, including selection and termination
iii. We do not report against GRI 102-10 iii as the information is unavailable.
We plan to progress our disclosure for F Y2022.
102-11 Precautionary Principle or approach Annual Report 2021 section 1.9 How we manage risk.
a. Whether and how the organization applies the Precautionary Principle or
approach. Climate Transition Action Plan 2021 and Climate Change Report 2020 Our
Position under Climate Change and section 3.3 Emerging risks.
The precautionary approach is defined as follows: “Where there are threats
of serious or irreversible damage, lack of full scientific certainty shall not be Information can be found at bhp.com on Environment; Climate Change;
used as a reason for postponing cost-effective measures to prevent Water; and the Our Requirements for Environment and Climate Change
environmental degradation.” standard.
102-12 External initiatives Annual Report 2021 section 1.13.1 Our sustainability approach.
a. A list of externally-developed economic, environmental and social
charters, principles, or other initiatives to which the organization subscribes, Information can be found at bhp.com on Sustainability Disclosures and
or which it endorses. commitments.
102-13 Membership of associations Information can be found on our website at bhp.com on Industry association;
a. A list of the main memberships of industry or other associations, and Interacting with governments; Global Climate Policy Standards; and BHP
national or international advocacy organizations. Industry Association Review 2019.
102-14 Statement from senior decision-maker Annual Report 2021 section 1.3 Chief Executive Officer's review.
a. A statement from the most senior decision-maker of the organization
(such as CEO, chair, or equivalent senior position) about the relevance of Climate Change Report 2020 section Chief Executive Officer introduction.
sustainability to the organization and its strategy for addressing
sustainability.
102-15 Key impacts, risks, and opportunities Annual Report 2021 section 1.16 Risk factors.
102-16 Values, principles, standards, and norms of behavior Information can be found at bhp.com on Our Charter; and Our Code of
a. A description of the organization’s values, principles, standards, and Conduct.
norms of behavior.
102-17 Mechanisms for advice and concerns about ethics Annual Report 2021 section 1.13.6 Ethics and business conduct; section
a. A description of internal and external mechanisms for: 1.16 Risk factors – Ethical misconduct and section 2.1.15 Our conduct.
i. seeking advice about ethical and lawful behavior, and organizational
integrity Information can be found at bhp.com on Ethics and Business Conduct.
ii. reporting concerns about unethical or unlawful behavior, and
organizational integrity
102-18 Governance structure Annual Report 2021 section 2.1.2 Board of Directors and Executive
a. Governance structure of the organization, including committees of the Leadership Team; section 2.1.3 BHP governance structure; section 2.1.10
highest governance body. Risk and Audit C ommittee Report and section 2.1.11 Sustainability
b. C ommittees responsible for decision-making on economic, Committee Report.
environmental, and social topics.
Information can be found on our website at bhp.com on Governance.
102-19 D elegating authority Annual Report 2021 section 2.1.3 BHP governance structure, section 2.1.10
Process for delegating authority for economic, environmental, and social Risk and Audit C ommittee Report; section 2.1.11 Sustainability Committee
topics from the highest governance body to senior executives and other Report and section 2.1.14 Management.
employees.
Information can be found at bhp.com on Risk and Audit Committee T erms of
Reference; Sustainability Committee T erms of Reference; and Board
Governance Document.
102-20 Executive-level responsibility for economic, environmental, and Annual Report 2021 section 2.1.10 Risk and Audit Committee Report and
social topics section 2.1.11 Sustainability Committee Report.
a. Whether the organization has appointed an executive-level position or
positions with responsibility for economic, environmental, and social topics. Information can be found at bhp.com on Risk and Audit Committee T erms of
b. Whether post holders report directly to the highest governance body. Reference and Sustainability C ommittee Terms of R eference.
102-21 C onsulting stakeholders on economic, environmental, and social Annual Report 2021 section 2.1.6 Stakeholder engagement.
topics
a. Processes for consultation between stakeholders and the highest
governance body on economic, environmental, and social topics.
b. If consultation is delegated, describe to whom it is delegated and how the
resulting feedback is provided to the highest governance body.
102-22 C omposition of the highest governance body and its committees Annual Report 2021 section 2.1.2 Board of Directors and Executive
Composition of the highest governance body and its committees by: Leadership Team; section 2.1.7 Director skills, experience and attributes
i. executive or non-executive and section 2.1.9 N omination and Governance Committee Report.
ii. independence
iii. tenure on the governance body We do not currently report the composition of the Board by stakeholder
iv. number of each individual's other significant positions and representation. We are considering disclosures in this area for coming
commitments, and the nature of the commitments years.
v. gender
vi. membership of under-represented social groups
vii. competencies relating to economic, environmental, and social topics
viii. stakeholder representation
102-23 C hair of the highest governance body Annual Report 2021 section 2.1.2 Board of Directors and Executive
a. Whether the chair of the highest governance body is also an executive Leadership Team.
officer in the organization.
b. If the chair is also an executive officer, describe his or her function w ithin
the organization’s management and the reasons for this arrangement.
102-24 N ominating and selecting the highest governance body Annual Report 2021 section 2.1.7 Director skills, experience and attributes –
a. N omination and selection processes for the highest governance body and Skills matrix and section 2.1.9 Nomination and Governance Committee
its committees. Report.
b. C riteria used for nominating and selecting highest governance body
members, including whether and how: When considering succession planning and a diverse pipeline of talent, the
i. stakeholders (including shareholders) are involved Nomination and Governance Committee considers Board diversity, size,
ii. diversity is considered tenure and the skills, experience and attributes needed to effectively govern
iii. independence is considered and manage risk within BHP.
iv. expertise and experience relating to economic, environmental, and social T he Board skills matrix identifies the skills and experience the Board needs
topics are considered for the next period of BHP’s development, considering BHP’s circumstances
and the changing external environment.
T he Board collectively possesses all the skills and experience set out in the
skills matrix.
Directors stand for election (if it is their first year on the Board) or re-election
(if they have previously been elected) at the Annual General Meetings
(AGMs) each year. Before an AGM, shareholders are provided with all
material information in BHP’s possession relevant to their decision on
whether or not to elect or re-elect a Director.
102-25 C onflicts of interest Annual Report 2021 section 2.1.9 Nomination and Governance Committee
a. Processes for the highest governance body to ensure conflicts of interest Report – Independence and section 4.10.5 Constitution - R estrictions on
are avoided and managed. voting by Directors.
b. Whether conflicts of interest are disclosed to stakeholders, including, as a
minimum: Information can be found on our website at bhp.com on Policy on the
i. cross-board membership Independence of Directors.
ii. cross-shareholding with suppliers and other stakeholders
iii. existence of controlling shareholder
iv. related party disclosures
102-26 R ole of highest governance body in setting purpose, values, and Annual Report 2021 section 2.1.3 BHP governance structure.
strategy
a. H ighest governance body’s and senior executives’ roles in the Information can be found at bhp.com on the Board Governance Document.
development, approval, and updating of the organization’s purpose, value or
mission statements, strategies, policies, and goals related to economic,
environmental, and social topics.
102-27 C ollective knowledge of highest governance body Annual Report 2021 section 2.1.9 Nomination and Governance Committee
a. Measures taken to develop and enhance the highest governance body’s Report – Director induction, training and development.
collective knowledge of economic, environmental, and social topics.
102-28 Evaluating the highest governance body’s performance Annual Report 2021 section 2.1.8 Board evaluation.
a. Processes for evaluating the highest governance body’s performance
with respect to governance of economic, environmental, and social topics. T he evaluation considers the balance of skills, experience, independence
b. Whether such evaluation is independent or not, and its frequency. and knowledge of the Group and the Board, its diversity, including gender
c. Whether such evaluation is a self-assessment. diversity, and how the Board works together as a unit.
d. Actions taken in response to evaluation of the highest governance body’s
performance with respect to governance of economic, environmental, and T he evaluation review supported the Board’s decision to endorse those
social topics, including, as a minimum, changes in membership and Directors standing for re-election.
organizational practice.
102-29 Identifying and managing economic, environmental, and social Annual Report 2021 section 1.9 How we manage risk – BHP Board and
impacts Committees; section 2.1.5 Key Board activities during FY2021; section 2.1.6
a. H ighest governance body’s role in identifying and managing economic, Stakeholder engagement; section 2.1.10 Risk and Audit Committee R eport
environmental, and social topics and their impacts, risks, and opportunities – and section 2.1.11 Sustainability Committee Report.
including its role in the implementation of due diligence processes.
b. Whether stakeholder consultation is used to support the highest
governance body’s identification and management of economic,
environmental, and social topics and their impacts, risks, and opportunities.
102-30 Effectiveness of risk management processes Annual Report 2021 section 1.9 How we manage risk - BHP Board and
a. H ighest governance body’s role in reviewing the effectiveness of the Committees; section 2.1.10 Risk and Audit Committee Report -
organization’s risk management processes for economic, environmental, Effectiveness of systems of internal control and risk management (RAC and
and social topics. Board) and section 2.1.11 Sustainability C ommittee Report.
102-31 R eview of economic, environmental, and social topics Annual Report 2021 section 2.1.4 Board and Committee meetings and
a. F requency of the highest governance body’s review of economic, attendance.
environmental, and social topics and their impacts, risks, and opportunities.
Information can be found at bhp.com on the Risk and Audit Committee
T erms of Reference and Sustainability Committee T erms of Reference.
102-32 H ighest governance body’s role in sustainability reporting T he Strategic Report is made in accordance with a resolution of the Board.
a. T he highest committee or position that formally reviews and approves the T he Sustainability Committee oversees the preparation and presentation of
organization’s sustainability report and ensures that all material topics are sustainability disclosures.
covered. Annual Report 2021 section 2.1.11 Sustainability Committee Report.
102-33 C ommunicating critical concerns Annual Report 2021 section 2.1.6 Stakeholder engagement; section 2.1.10
a. Process for communicating critical concerns to the highest governance Risk and Audit C ommittee Report - Effectiveness of systems of internal
body. control and risk management (RAC and Board) and section 2.1.15 Our
conduct.
102-34 N ature and total number of critical concerns We do not currently report the total number and nature of critical concerns
a. T otal number and nature of critical concerns that were communicated to that were communicated to the highest governance body due to
the highest governance body. confidentiality constraints. However we report the total number of reports
b. Mechanism(s) used to address and resolve critical concerns. received into EthicsPoint. We are considering disclosures in this area for
coming years.
102-35 R emuneration policies Annual Report 2021 section 2.1.12 Remuneration Committee R eport;
a. R emuneration policies for the highest governance body and senior section 2.2 Remuneration Report; section 2.2.1 Annual statement by the
executives for the following types of remuneration: Remuneration Committee Chair; section 2.2.2 Remuneration policy report;
i. fixed pay and variable pay, including performance-based pay, equity- and section 2.2.3 Annual report on remuneration.
based pay, bonuses, and deferred or vested shares
ii. sign-on bonuses or recruitment incentive payments
iii. termination payments
iv. clawbacks
v. retirement benefits, including the difference between benefit schemes and
contribution rates for the highest governance body, senior executives, and
all other employees
b. H ow performance criteria in the remuneration policies relate to the highest
governance body’s and senior executives’ objectives for economic,
environmental, and social topics.
102-36 Process for determining remuneration Annual Report 2021 section 2.1.12 Remuneration Committee R eport;
a. Process for determining remuneration. section 2.2.2 Remuneration policy report and section 2.2.3 Annual report on
b. Whether remuneration consultants are involved in determining remuneration – Board oversight and the Remuneration Committee.
remuneration and w hether they are independent of management.
c. Any other relationships that the remuneration consultants have with the
organization.
102-37 Stakeholders’ involvement in remuneration Annual Report 2021 section 2.2.2 Remuneration policy report and section
a. H ow stakeholders' views are sought and taken into account regarding 2.2.3 Annual report on remuneration – Statement of voting at the 2020
remuneration AGMs.
b. If applicable, the results of votes on remuneration policies and proposals
102-38 Annual total compensation ratio Annual Report 2021 section 4.8.1 People performance data FY2021 – Employee remuneration for FY2021 and section 2.2.3 Annual report on remuneration – CEO pay ratio disclosure.
a. R atio of the annual total compensation for the organization’s highest-paid
individual in each country of significant operations to the median annual total
compensation for all employees (excluding the highest-paid individual) in
the same country.
102-39 percentage increase in annual total compensation ratio Annual Report 2021 section 4.8.1 People performance data FY2021 - Employee remuneration for FY2021.
a. R atio of the percentage increase in annual total compensation for the
organization’s highest-paid individual in each country of significant
operations to the median percentage increase in annual total compensation
for all employees (excluding the highest-paid individual) in the same
country.
102-40 List of stakeholder groups Annual Report 2021 section 1.14 Section 172 Statement.
a. A list of stakeholder groups engaged by the organization.
Information can be found at bhp.com on Sustainability – Our stakeholders.
102-41 C ollective bargaining agreements Annual Report 2021 section 4.8.1 People – performance data FY2021.
a. Percentage of total employees covered by collective bargaining
agreements.
102-42 Identifying and selecting stakeholders Annual Report 2021 section 1.14 Section 172 Statement and section 2.1.6
a. T he basis for identifying and selecting stakeholders with w hom to engage. Stakeholder engagement.
102-43 Approach to stakeholder engagement Annual Report 2021 section 1.14 Section 172 Statement and section 2.1.6
a. T he organization’s approach to stakeholder engagement, including Stakeholder engagement.
frequency of engagement by type and by stakeholder group, and an
indication of whether any of the engagement was undertaken specifically as We are working to improve our disclosures in this area in coming years.
part of the report preparation process.
102-44 Key topics and concerns raised Annual Report 2021 section 1.14 Section 172 Statement and section 2.1.6
a. Key topics and concerns that have been raised through stakeholder Stakeholder engagement.
engagement, including:
i. how the organization has responded to those key topics and concerns, We are working to improve our disclosures in this area in coming years.
including through its reporting
ii. the stakeholder groups that raised each of the key topics and concerns
102-45 Entities included in the consolidated financial statements Annual Report 2021 section 1.18 Other Information.
a. A list of all entities included in the organization's consolidated financial
statements or equivalent documents. F or a complete list of the Group’s subsidiaries, refer to Annual Report 2021
b. Whether any entity included in the organization's consolidated financial section 3.2 BHP Group Plc – note 13 'Related undertakings of the Group'.
statements or equivalent documents is not covered by the report.
Our sustainability reporting boundaries are aligned with our Consolidated
F inancial Statements.
102-46 D efining report content and topic boundaries Annual Report 2021 section 1.13.1 Our sustainability approach; section
a. An explanation of the process for defining the report content and the topic 1.13.2 Our material sustainability issues; and section 1.18 Other
boundaries. Information.
b. An explanation of how the organization has implemented the Reporting
Principles for defining report content. Our sustainability reporting boundaries is aligned with our Consolidated
F inancial Statements.
102-47 List of material topics Annual Report 2021 section 1.13.2 Our material sustainability issues.
A list of the material topics identified in the process for defining report
content. Information can be found at bhp.com on Sustainability – Our material
sustainability issues.
102-48 R estatements of information Where relevant, w e explain reasons for any restatements in our footnotes
The effect of any restatements of information given in previous reports, and throughout our reports.
the reasons for such restatements.
102-49 C hanges in reporting Our list of sustainability material topics to be included in our Annual Report
Significant changes from previous reporting periods in the list of material is review ed every year based on our materality assessment.
topics and topic Boundaries. Note that topic boundaries vary based on the topics reported and significant
changes, if any, would be described in each of the relevant topics in our
Annual Report or website.
102-50 R eporting period T he reporting period for the information provided is the 2021 financial year
The reporting period can be, for example, the fiscal or calendar year. (1 July 2020 to 30 June 2021).
102-51 D ate of most recent report September 2020 for FY2020 Report
a. If applicable, the date of the most recent previous report. September 2021 for FY2021 Report
102-53 Contact point for questions regarding the report Contact us at bhp.com/contact-us/
102-54 C laims of reporting in accordance with the GRI Standards T his report has been prepared in accordance with the GRI Standards:
The claim made by the organization, if it has prepared a report in Comprehensive option.
accordance with the GRI Standards, either:
i. ‘This report has been prepared in accordance with the GRI Standards:
Core option’
ii. ‘T his report has been prepared in accordance with the GRI Standards:
Comprehensive option’
102-55 GRI content index This document is our GRI content index.
a. T he GRI content index, which specifies each of the GRI Standards used
and lists all disclosures included in the report.
b. F or each disclosure, the content index shall include:
i. the number of the disclosure
ii. the pace number(s) or URL(s) where the information can be found, either
within the report or in other published materials
iii. if applicable, and where permitted, the reason(s) for omission when a
required disclosure cannot be made
102-56 External assurance a. BHP has had its Sustainability disclosures externally assured for more
a. A description of the organization's policy and current practice with regard than 10 years.
to seeking external assurance for the report.
b. If the report has been externally assured. b. i. EY Independent Auditors' report conclusion on the sustainability data
i. a reference to the external assurance report, statements, or opinions. If not and disclosures is available in the Annual R eport 2021 section 1.13.16
included in the assurance report accompanying the sustainability report, a Independent limited assurance report.
description of what has and what has not been assured and on what basis,
including the assurance standards used, the level of assurance obtained, EY Independent Auditors' report opinion on the Consolidated Financial
and any limitations of the assurance process Statements is available in Annual R eport 2021 Section 3.6 Independent
ii. the relationship between the organization and the assurance provider Auditors' reports.
iii. whether and how the highest governance body or senior executives are
involved in seeking external assurance for the organization's sustainability b. ii. Since FY2019, EY has provided external assurance. They are our
report financial auditors and maintain independence from BHP. EY is accountable
to the Accounting Professional and Ethical Standards Board (APESB) 110
Code of Ethics for Professional Accountants. T herefore, they are able to
reach and publish an objective and impartial opinion or conclusions about
our Report.
Management approach
GRI 103: 103-1 Explanation of the material topic and its Boundary
Manag ement Ap proach 2016 Our management approach is described in our Annual Report and in each
relevant section in our sustainability content at bhp.com.
103-2 The management approach and its components We do not provide detailed management approach, per GRI 103, for GRI
topics that are not considered material to BHP, such as GRI 416 Customer
health and safety and GRI 417 Marketing and labeling.
103-3 Evaluation of the management approach
Information can be found at bhp.com on Sustainability.
Economic
Economic performance
GRI 201: 201-1 Direct economic value generated and distributed Annual Report 2021 section 3.1.1 Consolidated Income Statement.
Econ omic performance 2016 a. D irect economic value generated and distributed (EVG&D) on an accruals
basis, including the basic components for the organization's global Economic Contribution Report 2021.
operations as listed below. If data are presented on a cash basis, report the
justification for its decision in addition to reporting the following basic Our Economic Contribution Report 2021 is prepared on a cash basis in
components: accordance with the Reports on Payments to Governments Regulations
i. direct economic value generated: revenues 2014 as amended by the Reports on Payments to Governments
ii. economic value distributed: operating costs, employee wages and (Amendment) R egulations 2015.
benefits, payments to providers of capital, payments to government by
country, and community investments
iii. economic value retained: 'direct economic value generated' less '
economic value distributed'
b. Where significant, report EVG&D separately at country, regional, or
market levels, and the criteria used for defining significance.
201-2 Financial implications and other risks and opportunities due to climate Annual Report 2021 section 1.13.7 Climate change and portfolio resilience
change and section 1.16 Risk factors – Low -carbon transition and Inadequate
Risks and opportunities posed by climate change that have the potential to business resilience.
generate substantive changes in operations, revenue, or expenditures,
including: Climate Transition Action Plan 2021 and Climate Change Report 2020
i. a description of the risk or opportunity and its classification as either section 2.2 Reducing our GHG emissions and section 3 Risk Management.
physical, regulatory, or other
ii. a description of the impact associated with the risk or opportunity We disclose climate-related issues including potential financial impact and
iii. the financial implications of the risk or opportunity before action is taken cost of response to risk in our CD P response section C2.3.
iv. the methods used to manage the risk or opportunity
v. the costs of actions taken to manage the risk or opportunity
201-3 Defined benefit plan obligations and other retirement plans Annual Report 2021 section 3.1.6 Notes to the F inancial Statements – note
a. If the plan's liabilities are met by the organization's general resources, the 26 Employee benefits, restructuring and post-retirement employee benefits
estimated value of those liabilities. provisions, and note 27 'Pension and other post-retirement obligations'.
b. If a separate fund exists to pay the plan's pension liabilities:
i. the extent to which the scheme's liabilities are estimated to be covered by a. Gross and net liability of our pension defined benefit plan and other
the assets that have been set aside to meet them obligations is disclosed in Annual Report 2021 section 3.1.6 Notes to the
ii. the basis on which that estimate has been arrived at F inancial Statements - note 27 Pension and other post-retirement
iii. when that estimate was made obligations.
c. If a fund set up to pay the plan's pension liabilities is not fully covered,
explain the strategy, if any, adopted by the employers to work towards full b. The Group has closed defined benefit plan(s) to new entrants.
coverage, and the timescale, if any, by which the employer hopes to achieve
full coverage. c. Generic description of remaining plan as well as accounting treatment
d. Percentage of salary contributed by employee or employer. and estimates is provided Annual Report 2021 section 3.1.6 Notes to the
e. Level of participation in retirement plans, such as participation in F inancial Statements - note 27 Pension and other post-retirement
mandatory or voluntary schemes, regional, or country-based schemed, or obligations.
those with financial impact.
d. e. We do not report this information as pensions are not material to the
BHP balance sheet. In accordance with International Financial Reporting
Standards (IF RS), w e disclose only material disclosures in relation to nature
and assumption of our pension plans.
201-4 Financial assistance received from government Economic Contribution Report 2021 for details on tax matters.
a. T otal monetary value of financial assistance received by the organization
from any government during the reporting period, including: We do not report against GRI 201-4 as this information is not currently
i. tax relief and tax credits available. We are working to improve our disclosures in this area in coming
ii. subsidies years.
iii. investment grants, research and development grants, and other relevant
types of grant
iv. awards
v. royalty holidays
vi. financial assistance from Export Credit Agencies (ECAs)
vii. financial incentives
viii. other financial benefits received or receivable from any government for
any operation
b. T he information in 201-4-a by country.
c. Whether, and the extent to which any government is present in the
shareholding structure.
Market presence
GRI 202: 202-1 Ratios of standard entry level wage by gender compared to local a. Annual Report 2021 section 4.8.1 People – performance data FY2021.
Market Presence 2016 minimum wage Individuals classified as entry level are those in an operator and general
a. When a significant proportion of employees are compensated based on support role, and have been with the organisation for less than one year.
wages subject to minimum wage rules, report the relevant ratio of the entry
level wage by gender at significant locations of operation to the minimum b. BHP requires contractors remuneration to comply with statutory and
wage. regulatory requirements in the relevant jurisdiction. We are working to
b. When a significant proportion of other workers (excluding employees) improve our disclosures in this area in coming years.
performing the organization's activities are compensated based on wages
subject to minimum wage rules, describe the actions taken to determine c. We report the male to female ratio by average basic salary (US$) and by
whether these workers are paid above the minimum wage. average total remuneration (US$) for each region. Minimum wage is
c. Whether a local minimum wage is absent or variable at significant determined as per local regulation for all locations except for Singapore and
locations of operation, by gender. In circumstances in which different Switzerland, as they do not have a minimum wage mandated by their
minimums can be used as reference, report which minimum wage is being governments and therefore have been excluded from the calculation.
used.
d. T he definition used for 'significant locations of operation'. d. For the purpose of GRI 202-1, we define significant locations of operation
as geographical regions in which we have a significant operational
presence.
202-2 Proportion of senior management hired from the local community a. In FY2021, 65 per cent of senior leaders had been hired from the local
a. Percentage of senior management at significant locations of operation community.
that are hired from the local community.
b. T he definition used for 'senior management'. b. For the purpose of GRI 202-2, senior leaders are defined as role grades
c. The organization's geographical definition of 'local'. 15 and above.
d. T he definition used for 'significant locations of operation'.
c. For the purpose of GRI 202-2, w e define local as nationality of the country
in where we operate.
203-2 Significant indirect economic impacts Annual Report 2021 section 1.14.8 Community and section 1.13.11 Social
a. Examples of significant identified indirect economic impacts of the investment.
organization, including positive and negative impacts.
b. Significance of the indirect economic impacts in the context of external Economic Contribution Report 2021 section 1. Our contribution.
benchmarks and stakeholder priorities, such as national and international
standards, protocols, and policy agendas. Information can be found at bhp.com on Community including in our case
studies.
Procurement practices
GRI 204: 204-1 Proportion of spending on local suppliers a. Information can be found at bhp.com on Social investment - Supporting
Procurement Practices 2016 a. Percentage of the procurement budget used for significant locations of local economic growth and Distribution of supply expenditure.
operation that is spent on suppliers local to that operation (such as
percentage of products and services purchased locally). b. For the purpose of GRI 204-1, we define local spend as spend w ithin the
b. T he organization's geographical definition of 'local'. communities w here w e operate.
c. The definition used for 'significant locations of operation'.
c. For the purpose of GRI 204-1, w e define significant locations of operation
as geographical regions where we have a significant operational presence.
Anti-corruption
GRI 205: 205-1 Operations assessed for risks related to corruption a. All operated assets and functions (100 per cent) have been assessed for
A nti-co rrup tion 2016 a. T otal number and percentage of operations assessed for risks related to risks related to corruption, at least once in past years.
corruption.
b. Significant risks related to corruption identified through the risk b. Information can be found at bhp.com on Anti-corruption compliance.
assessment.
205-2 Communication and training about anti-corruption policies and a. All (100 per cent ) Executive Leadership Team (ELT) members are
procedures required to complete our annual training on Our Code of C onduct (Our
a. T otal number and percentage of governance body members that the Code).
organization’s anti-corruption policies and procedures have been
communicated to, broken down by region. b. We require annual training for all employees (100 per cent), on Our Code,
b. T otal number and percentage of employees that the organization’s anti- which prohibits all forms of bribery and corruption. As part of this training,
corruption policies and procedures have been communicated to, broken employees are required to confirm that they will act according to Our Code,
down by employee category and region. and that they will seek clarification (including from the Ethics and
c. Total number and percentage of business partners that the organization’s Compliance team) if they do not understand any part of Our Code. We also
anti-corruption policies and procedures have been communicated to, broken expect contractors, consultants and others who may be assigned to perform
down by type of business partner and region. Describe if the organization’s work or services for our Group to follow Our Code in connection with their
anti-corruption policies and procedures have been communicated to any work for us.
other persons or organisations.
d. T otal number and percentage of governance body members that have c. In F Y2021, 892 suppliers acknowledged, through our Global Contract
received training on anti-corruption, broken down by region. Management System (GCMS), that:
e. T otal number and percentage of employees that have received training on (1) they are expected to read, understand and adhere to BHP’s Our C harter
anti-corruption, broken down by employee category and region. values and Our Code
(2) they agree to meet our Minimum requirements for suppliers, or already
commit to equivalent or higher standards
(3) they will not authorise, offer, give or promise anything of value, directly or
indirectly, to (a) a government official to influence official action, or (b)
anyone to induce them to perform his or her w ork duties disloyally or
otherwise improperly
(4) they will comply with all laws, including anti-corruption laws, which apply
to their interactions with or in relation to BHP
205-3 Confirmed incidents of corruption and actions taken We do not report against GRI 205-3 a, b and c due to confidentiality
a. T otal number and nature of confirmed incidents of corruption. constraints. These constraints include the maintenance of legal professional
b. T otal number of confirmed incidents in which employees were dismissed privilege.
or disciplined for corruption.
c. Total number of confirmed incidents when contracts with business d. Public legal cases regarding corruption brought against the organisation
partners were terminated or not renewed due to violations related to or its employees during the reporting period have been zero.
corruption.
d. Public legal cases regarding corruption brought against the organization
or its employees during the reporting period and the outcomes of such
cases.
Anti-competitive behaviour
GRI 206: Anti-co mpetitive 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly We do not currently report against GRI 206-1 a and b in relation to any non-
B eh avio ur 2016 practices public legal actions, as we may be subject to confidentiality obligations that
a. N umber of legal actions pending or completed during the reporting period would prevent us from disclosing such information.
regarding anti-competitive behavior and violations of anti-trust and
monopoly legislation in which the organization has been identified as a T here were no relevant public legal actions concerning anti-competitive
participant. behaviour of which we are aw are during the reporting period.
b. Main outcomes of completed legal actions, including any decisions or
judgments.
Tax
GRI 207: 207-1 Approach to tax BHP’s approach to tax is outlined in our Economic Contribution Report
T ax 2019 a. A description of the approach to tax, including: 2021, and based on our Tax Principles, Our Charter and Our Code of
i. whether the organisation has a tax strategy available and, if so, a link to Conduct. T hese documents have been endorsed by the BHP Board,
this strategy if publicly including the Economic Contribution Report which is formally reviewed and
ii. the governance body or executive-level position w ithin the organisation approved by the Board annually.
that formally reviews and approves the tax strategy, and the frequency of
this review
iii. the approach to regulatory compliance
iv. how the approach to tax is linked to the business and sustainable
development strategies of the organisation
207-2 Tax governance, control, and risk management T he Risk and Audit Committee (RAC) assists the Board with the oversight of
a. A description of the tax governance and control framework, including: risk management for BHP and this includes the oversight of tax risks. T he
i. the governance body or executive-level position within the organization Chief Financial Officer and the Group Tax Officer are accountable for the
accountable for compliance with the tax strategy management of tax risk. Our Annual Report 2021 (refer to section 1.9 How
ii. how the approach to tax is embedded within the organization we manage risk), Economic Contribution Report 2021 (page 16) and Our
iii. the approach to tax risks, including how risks are identified, managed, T ax Strategy sets out our approach to tax risk management and
and monitored governance, including the frameworks in place to identify, manage and
iv. how compliance with the tax governance and control framework is monitor tax risks.
evaluated Our Code of Conduct sets out the standards of behaviour for our people.
b. A description of the mechanisms for reporting concerns about unethical or Individuals are encouraged to report breaches of our Code, including
unlawful behaviour and the organization’s integrity in relation to tax. unethical or unlawful behaviour relating to tax.
c. A description of the assurance process for disclosures on tax and, if
applicable, a reference to the assurance report, statement, or opinion.
207-3 Stakeholder engagement and management of concerns related to tax Our approach to stakeholder engagement is described in our Annual Report
a. A description of the approach to stakeholder engagement and 2021 (1.13.6 Ethics and business conduct, 1.14 Section 172 Statement,
management of stakeholder concerns related to tax, including: 2.1.6 Stakeholder engagement, 2.1.15 Our conduct) and online at
i. the approach to engagement with tax authorities Sustainability approach – Our stakeholders, w ith commentary on tax matters
ii. the approach to public policy advocacy on tax provided in the Economic Contribution R eport and Our T ax Strategy.
iii. the processes for collecting and considering the views and concerns of We work openly, transparently and constructively with tax authorities and
stakeholders, including external stakeholders regularly engage with them, including as part of regular assurance
programs, and consultation on tax policy. We also engage with a broader
group of stakeholders on tax policy matters through our participation in a
number of global industry and local associations.
207-4 Country-by-country reporting We will comply with GRI 207-4 by reporting country-by-country information
a. All tax jurisdictions where the entities included in the organization’s for the year ended 30 June 2020. The Country-by-C ountry Report 2020 will
audited consolidated financial statements, or in the financial information filed be available on our website.
on public record, are resident for tax purposes. GRI 207-4 recognises that country-by-country report information for the time
b. F or each tax jurisdiction reported in Disclosure 207-4-a: period covered by the most recent audited Consolidated Financial
i. names of the resident entities Statements may not be available and therefore permits disclosures of
ii. primary activities of the organization information for the time period covered by the audited C onsolidated
iii. number of employees, and the basis of calculation of this number F inancial Statements immediately preceding the most recent one.
iv. revenues from third-party sales
v. revenues from intra-group transactions with other tax jurisdictions
vi. profit/loss before tax
vii. tangible assets other than cash and cash equivalents
viii. corporate income tax paid on a cash basis
ix. corporate income tax accrued on profit/loss
x. reasons for the difference between corporate income tax accrued on
profit/loss and the tax due if the statutory tax rate is applied to profit/loss
before tax
c. The time period covered by the information reported in Disclosure 207-4.
Environment
Energy
GRI 302: 302-1 Energy consumption within the organization Annual Report 2021 section 4.8.5 Climate change performance data – Operational energy consumption by source.We do not currently report against GRI 302-1 c ii, iii and iv and 302-1 d i, ii, iii and iv (heating, cooling, and steam) as this information is currently unavailable. We are working to improve our disclosures in this area in coming years.
Energy 2016 a. T otal fuel consumption within the organization from non renewable
sources, in joules or multiples, and including fuel types used.
b. T otal fuel consumption within the organization from renewable sources, in
joules or multiples, and including fuel types used.
c. In joules, watt-hours or multiples, the total:
i. electricity consumption
ii. heating consumption
iii. cooling consumption
iv. steam consumption
d. In joules, watt-hours or multiples, the total:
i. electricity sold
ii. heating sold
iii. cooling sold
iv. steam sold
e. T otal energy consumption within the organization, in joules or multiples.
f. Standards, methodologies, assumptions, and/or calculation tools used.
g. Source of the conversion factors used.
302-2 Energy consumption outside of the organization We do not currently report against GRI 302-2 as this information is currently
a. Energy consumption outside of the organization, in joules or multiples. unavailable.
b. Standards, methodologies, assumptions, and/or calculation tools used.
c. Source of the conversion factors used. BHP discloses Scope 3 emissions in its value chain.
302-3 Energy intensity Annual Report 2021 section 4.8.5 Climate change performance data – Operational energy consumption by source.c. Fuel and electricity are included in the intensity ratio.d.The ratio uses energy consumption within the organisation.
a. Energy intensity ratio for the organization.
b. Organization-specific metric (the denominator) chosen to calculate the
ratio.
c. Types of energy included in the intensity ratio; whether fuel, electricity,
heating, cooling, steam, or all.
d. Whether the ratio uses energy consumption w ithin the organization,
outside of it, or both.
Water
Information can be found at bhp.com on Water.
GRI 303:
Water and Efflu ents 2018
303-03 Water withdrawal Annual Report 2021 section 4.8.4 Environment performance data and
a. T otal water withdrawal from all areas in megaliters, and a breakdown of section 4.8.6 Water performance data.
this total by the follow ing sources, if applicable:
i. surface water a. iv. Produced water only relates to Petroleum – it is our seaw ater and
ii. groundwater groundwater withdrawal volumes for Petroleum.
iii. seawater
iv. produced water b. v. We do not report a breakdown of third-party water sources from all
v. third-party water areas with water stress as this information is currently unavailable. We are
b. T otal water withdrawal from all areas with water stress in megaliters, and working to improve our disclosures in this area in coming years.
a breakdown of this total by the following sources, if applicable:
i. surface water c. BHP has continued to group water quality into three categories in line with
ii. groundwater the Minerals Council of Australia’s Water Accounting Framework (WAF ) as
iii. seawater this provides more granularity. Type 1 and type 2 equate to high-quality
iv. produced water water, while type 3 equates to low-quality water under the ICMM Guidelines.
v. third-party water, and a breakdown of this total by the withdrawal sources
listed in i-iv d. Refer to our Methodology tab.
c. A breakdown of total water withdrawal from each of the sources listed in
Disclosures 303-3-a and 303-3-b in megaliters by the following categories:
i. freshwater (≤1,000 mg/L Total Dissolved Solids)
ii. other water (>1,000 mg/L Total Dissolved Solids)
d. Any contextual information necessary to understand how the data have
been compiled, such as any standards, methodologies, and assumptions
used.
303-4 Water discharge Annual Report 2021 section 4.8.4 Environment - performance data and
a. T otal water discharge to all areas in megaliters, and a breakdown of this section 4.8.6 Water performance data.
total by the following types of destination, if applicable:
i. surface water b. BHP has continued to group water quality into three categories in line with
ii. groundwater the Minerals Council of Australia’s Water Accounting Framework (WAF ) as
iii. seawater this provides more granularity. Type 1 and type 2 equate to high-quality
iv. third-party water, and the volume of this total sent for use to other water, while type 3 equates to low-quality water under the ICMM Guidelines.
organisations, if applicable
b. A breakdown of total water discharge to all areas in megaliters by the d. i. and ii. Information is unavailable. We are working to improve our
following categories: disclosures in this area in coming years.
i. freshwater (≤1,000 mg/L Total Dissolved Solids) d. iii. Annual R eport 2021 section 4.8.6 Water performance data - Water-
ii. other water (>1,000 mg/L Total Dissolved Solids) related legal performance.
c. Total water discharge to all areas with water stress in megaliters, and a
breakdown of this total by the following categories: e. Refer to our Methodology tab.
i. freshwater (≤1,000 mg/L Total Dissolved Solids)
ii. other water (>1,000 mg/L Total Dissolved Solids)
d. Priority substances of concern for which discharges are treated, including:
i. how priority substances of concern were defined, and any international
standard, authoritative list, or criteria used
ii. the approach for setting discharge limits for priority substances of concern
iii. number of incidents of non-compliance with discharge limits
e. Any contextual information necessary to understand how the data have
been compiled, such as any standards, methodologies, and assumptions
used.
303-5 Water consumption Annual Report 2021 section 4.8.4 Environment performance data and
a. T otal water consumption from all areas in megaliters. section 4.8.6 Water performance data.
b. T otal water consumption from all areas with water stress in megaliters.
c. Change in water storage in megaliters, if water storage has been c. We do not report change in water storage as this information is currently
identified as having a significant water-related impact. unavailable. In F Y2021, we commenced collation of data on water storage
d. Any contextual information necessary to understand how the data have with the intention of including changes in storage volumes for relevant
been compiled, such as any standards, methodologies, and assumptions operated assets in our future disclosures. This included collection of
used, including w hether the information is calculated, estimated, modeled, information to evaluate which of our operated assets may have water
or sourced from direct measurements, and the approach taken for this, such storage that potentially has a significant water-related impact. We are
as the use of any sector-specific factors. working to improve our disclosures in this area in coming years.
Biodiversity
GRI 304: 304-1 Operational sites owned, leased, managed in, or adjacent to, Annual Report 2021 section 4.8.4 Environment performance data – Operated assets owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. ii. We report at an operated asset level and all our operated assets have at least one element of sub-surface or underground land that we have taken in consideration for our assessment.The information provided is correct as of 30 June 2021. Data for this metric was obtained from the Protected Planet's website via the Integrated Biodiversity Assessment Tool.
B io diversity 2016 protected areas and areas of high biodiversity value outside protected areas
For each operational site owned, leased, managed in, or adjacent to,
protected areas and areas of high biodiversity value outside protected
areas, the following information:
i. geographic location
ii. subserface and underground land that may be ow ned, leased, or
managed by the organization
iii. position in relation to the protected area (in the area, adjacent to, or
containing portions of the protected area) or the high biodiviersity value area
outside protected areas
iv. type of operation (office, manufacturing or production, or extractive)
v. size of operational site in km2 (or another unit, if appropriate)
vi. biodiversity value characterized by the attribute of the protected area or
area of high biodiversity value outside the protected area (terrestrial,
freshwater, or maritime ecosystem)
vii. biodiversity value characterized by listing of protected status (such as
IUCN Protected Area Management Categories, Ramsar Convention,
national legislation)
304-2 Significant impacts of activities, products, and services on biodiversity a. Information can be found at bhp.com on Biodiversity and Land -
a. N ature of significant direct and indirect impacts on biodiversity with Responsibly managing land and supporting biodiversity.
reference to one or more of the following
i. construction or use of manufacturing plants, mines, and transport b. We do not currently report against GR I 304-2 as this information is
infrastructure unavailable. We are working to improve our disclosures in this area in
ii. pollution (introduction of substances that do not naturally occure in the coming years.
habitat from point and non-point sources)
iii. introduction of invasive species, pests, and pathogens
iv. reduction of species
v. habitat conversion
vi. changes in ecological processes outside the natural range of variation
(such as salinity or changes in groundwater level)
b. Significant direct and indirect positive and negative impacts with
reference to the following:
i. species affected
ii. extent of areas impacted
iii. duration of impacts
iv. reversibility or irreversibility of the impacts
304-3 Habitats protected or restored Annual Report 2021 section 4.8.4 Environment performance data – Areas of habitat protected or restored by the operated assets.b. Information can be found at bhp.com on Biodiversity and Land - Contributing to a resilient environment.The information provided is correct as of 30 June 2021.
a. Size and location of all habitat areas protected or restored, and whether
the success of the restoration measure was or is approved by independent
external professionals.
b. Whether partnerships exist w ith third parties to protect or restore habitat
areas distinct from where the organization has overseen and implemented
restoration or protection measures.
c. Status of each area based on its conditions at the close of the reporting
period.
d. Standards, methodologies, and assumptions used.
304-4 IUC N Red List species and national conservation list species with Annual Report 2021 section 4.8.4 Environment performance data – Total number of IUCN Red List species and national conservation list species with habitats in areas affected by the operated assets of BHP.We report totals at an operated asset level, not at a Group level. Note that a Group level total would be less than the summation of operated asset level totals due to a number of species being commonly listed across two or more operated asset level lists.In FY2021, 0.074 km2 of disturbance was associated with exploration activities in Chile, Ecuador, Peru and the United States. As per BHP’s Our Requirements for Environment and Climate Change standard, baseline biodiversity studies were undertaken prior to exploration activities to identify key species and habitats. The mitigation hierarchy was implemented to avoid, minimise and rehabilitate impacts from the activities. Due to the small amount of disturbance over a short time period, species potentially impacted by these activities are not included.The information provided is correct as of 30 June 2021 and is subject to change as more information is obtained about species ranges, habitats and impacts from operated assets.
habitats in areas affected by operations
Total number of IU CN Red List species and national conservation list
species w ith habitats in areas affected by the operations of the organization,
by level of extinction risk:
i. critically endangered
ii. endangered
iii. vulnerable
iv. near threatened
v. least conern
Emissions
GRI 305: 305-1 Direct (Scope 1) GHG emissions Annual Report 2021 section 4.8.5 Climate change - performance data.
Emission s 2016 a. Gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent.
b. Gases included in the calculation; whether C O2, CH4 , N2 O, HFCs, PF Cs, b. For BHP reporting purposes, the gases included are the aggregate
SF 6, NF3 , or all. anthropogenic carbon dioxide equivalent emissions of carbon dioxide (CO2),
c. Biogenic CO2 emissions in metric tons of CO2 equivalent. methane (CH4), nitrous oxide (N2 O), hydrofluorocarbons (HF Cs),
d. Base year for the calculation, if applicable, including: perfluorocarbons (PFCs) and sulphur hexafluoride (SF 6). We do not produce
i. the rationale for choosing it a material amount of nitrogen trifluoride (NF3 ) emissions.
ii. emissions in the base year
iii. the context for any significant changes in emissions that triggered c. We do not report Scope 1 emissions in relation to biogenic emissions as
recalculations of base year emissions this is not a material source of emissions for us.
e. Source of the emission factors and the global warming potential (GWP)
rates used, or a reference to the GWP source. d. Annual Report 2021 section 1.13.7 Climate change and portfolio
f. C onsolidation approach for emissions; whether equity share, financial resilience.
control, or operational control.
g. Standards, methodologies, assumptions, and/or calculation tools used. f. We report Scope 1 and Scope 2 emissions using operational control,
equity share and financial control boundaries. Our primary consolidation
approach is operational control.
305-2 Energy indirect (Scope 2) GHG emissions Annual Report 2021 section 4.8.5 Climate change - performance data.
a. Gross location-based energy indirect (Scope 2) GHG emissions in metric
tons of C O2 equivalent. c. Information is not available.
b. If applicable, gross market-based energy indirect (Scope 2) GHG
emissions in metric tons of CO2 equivalent. d. Annual Report 2021 section 1.13.7 Climate change and portfolio
c. If available, the gases included in the calculation; whether C O2, CH4, N2 O, resilience.
HFCs, PF Cs, SF6, NF3 , or all.
d. Base year for the calculation, if applicable, including: f. We report Scope 1 and Scope 2 emissions using operational control,
i. the rationale for choosing it equity share and financial control boundaries. Our primary consolidation
ii. emissions in the base year approach is operational control.
iii. the context for any significant changes in emissions that triggered
recalculations of base year emissions e. g. Information can be found at bhp.com on BHP Scope 1, 2 and 3 GH G
e. Source of the emission factors and the global warming potential (GWP) Emissions Calculation Methodology 2021.
rates used, or a reference to the GWP source.
f. C onsolidation approach for emissions; whether equity share, financial
control, or operational control.
g. Standards, methodologies, assumptions, and/or calculation tools used.
305-3 Other indirect (Scope 3) GHG emissions Annual Report 2021 section 4.8.5 Climate change - performance data -
a. Gross other indirect (Scope 3) GHG emissions in metric tons of CO 2 Scope 3 GHG emissions by category.
equivalent.
b. If available, the gases included in the calculation; whether CO2 , CH 4, N2O, b. d. Information can be found at bhp.com on BHP Scope 1, 2 and 3 GH G
HFCs, PF Cs, SF6, NF3 , or all. Emissions Calculation Methodology 2021.
c. Biogenic CO2 emissions in metric tons of CO2 equivalent.
d. Other indirect (Scope 3) GHG emissions categories and activities c. We do not report Scope 3 emissions in relation to biogenic emissions as
included in the calculation. this information is currently unavailable.
e. Base year for the calculation, if applicable, including:
i. the rationale for choosing it e. Annual Report 2021 section 1.13.7 Climate change and portfolio
ii. emissions in the base year resilience.
iii. the context for any significant changes in emissions that triggered
recalculations of base year emissions f. g. Information can be found at bhp.com on BHP Scope 1, 2 and 3 GHG
f. Source of the emission factors and the global warming potential (GWP) Emissions Calculation Methodology 2021.
rates used, or a reference to the GWP source.
g. Standards, methodologies, assumptions, and/or calculation tools used.
305-4 GHG emissions intensity Annual Report 2021 section 4.8.5 Climate change - performance datac. Scope 1 and Scope 2 emissions are included in the intensity ratio.d. For BHP Scope 1 emissions reporting purposes, the gases included are the aggregate anthropogenic carbon dioxide equivalent emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). We do not produce a material amount of nitrogen trifluoride (NF3) emissions.
a. GHG emissions intensity ratio for the organization.
b. Organization-specific metric (the denominator) chosen to calculate the
ratio.
c. Types of GHG emissions included in the intensity ratio; whether direct
(Scope 1), energy indirect (Scope 2), and/or other indirect (Scope 3).
d. Gases included in the calculation; whether C O2, CH4 , N2 O, HFCs, PF Cs,
SF 6, NF3 , or all.
305-5 Reduction of GHG emissions In FY2021, as a direct result of GHG emissions reduction initiatives at our
a. GHG emissions reduced as a direct result of reduction initiatives, in metric WAIO operated asset, we re-designed a reinjection borefield enabling it to
tons of C O2 equivalent. operate under gravity. Based on our calculation and assumption, we
b. Gases included in the calculation; whether C O2, CH4 , N2 O, HFCs, PF Cs, estimate an annual scope 1 GHG emissions savings of approximately 3,400
SF 6, NF3 , or all. t CO 2-e were avoided as a result of this gravity fed design. Gases included
c. Base year or baseline, including the rationale for choosing it. in this calculation include CO2, CH4 and N2O.
d. Scopes in which reductions took place; whether direct (Scope 1), energy
indirect (Scope 2), and/or other indirect (Scope 3).
e. Standards, methodologies, assumptions, and/or calculation tools used.
305-6 Emissions of ozone-depleting substances (ODS) We do not report against GRI 305-6 as this information is unavailable.
a. Production, imports, and exports of ODS in metric tons of CFC-11 T his has not been identified as a material issue and not included in our
(trichlorofluoromethane) equivalent. environmental data collection systems.
b. Substances included in the calculation.
c. Source of the emission factors used.
d. Standards, methodologies, assumptions, and/or calculation tools used.
305-7 Nitrogen oxides (N OX), sulfur oxides (SOX), and other significant air a. i. and ii. Annual Report 2021 section 4.8.4 Environment performance data - Air emissions.a. iii. iv. v. vi. vii. b. and c. In Australia where required, BHP reports air emissions using site-specific data via publicly available submissions to the National Pollutant Inventory (NPI). Submissions to the NPI cover the air pollutants emissions listed under GRI 305-7, as well as additional pollutants that are required by regulatory agencies where BHP operates. Calculations are aligned with the NPI reporting rules and NPI emissions estimation methodology. This data is available to the public at npi.gov.au. Outside of Australia, BHP reports air emissions according to the relevant regulatory requirements, however, this information is not publicly available. We are looking to further develop our reporting of this information for future years.
emissions
a. Significant air emissions, in kilograms or multiples, for each of the
following:
i. NOX
ii. SOX
iii. Persistent organic pollutants (POP)
iv. Volatile organic compounds (VOC)
v. Hazardous air pollutants (HAP)
vi. Particulate matter (PM)
vii. Other standard categories of air emissions identified in relevant
regulations
b. Source of the emission factors used.
c. Standards, methodologies, assumptions, and/or calculation tools used.
Waste
GRI 306: 306-1 Waste generation and significant waste-related impacts
Waste 2020 a. F or the organization’s significant actual and potential waste-related
impacts, a description of:
i. the inputs, activities, and outputs that lead or could lead to these impacts
ii. whether these impacts relate to waste generated in the organization’s
own activities or to waste generated upstream or downstream in its value
chain
Environmental compliance
GRI 307: 307-1 Non-compliance with environmental laws and regulations a. i. Annual Report 2021 section 2.3.17 Performance in relation to environmental regulation and section 4.8.2 Health and safety performance data – Significant fines for non-compliance with health, safety and environmental laws and/or regulations.a. ii. We do not currently report the number of non-monetary sanctions as this information is unavailable. We are working to improve our disclosures in this area in coming years.a. iii. We do not currently report the number of cases brought through dispute resolution mechanisms due to confidentiality constraints.
Environ mental Com pliance 2016 a. Significant fines and non-monetary sactions for non-compliance with
environmental laws and/or regulations in terms of:
i. total monetary value of significant fines
ii. total number of non-monetary sanctions
iii. cases brought through dispute resolution mechanisms
b. If the organization has not identified any non-compliance with
environmental laws and/or regulations, a brief statement of this fact is
sufficient.
308-2 Negative environmental impacts in the supply chain and actions taken We do not report against GRI 308-2 as this information is currently
a. N umber of suppliers assessed for environmental impacts. unavailable. We plan to progress our disclosure in this area in coming years.
b. N umber of suppliers identified as having significant actual and potential
negative environmental impacts.
c. Significant actual and potential negative environmental impacts identified
in the supply chain.
d. Percentage of suppliers identified as having significant actual and
potential negative environmental impacts w ith which improvements were
agreed upon as a result of assessment.
e. Percentage of suppliers identified as having significant actual and
potential negative environmental impacts w ith which relationships were
terminated as a result of assessment, and why.
Society
Employment
GRI 401: 401-1 New employee hires and employee turnover Annual Report 2021 section 4.8.1 People performance data – Turnover and new hires.
Emp loyment 2016 a. T otal number and rate of new employee hires during the reporting period,
by age group, gender and region.
b. T otal number and rate of employee turnover during the reporting period,
by age group, gender and region.
401-2 Benefits provided to full-time employees that are not provided to We do not currently report against GRI 401-2 as the information is not
temporary or part-time employees available. We are working to improve our disclosures in this area in coming
a. Benefits which are standard for full-time employees of the organization years.
but are not provided to temporary or part-time employees, by significant
locations of operation. These include, as a minimum: BHP offers market-aligned benefits reflecting the standard practice and
i. life insurance applicable legislation in each country in which we operate for our full-time
ii. health care and part-time employees. These may include retirement/pension benefits,
iii. disability and invalidity coverage parental leave and other leave categories, recognition program benefits,
iv. parental leave share ownership via our Shareplus plan and, in some locations,
v. retirement provision medical/health insurance benefits.
vi. stock ownership T emporary employees are also offered retirement/pension benefits (as per
vii. others standard market practice/legislation), recognition program benefits, and
b. T he definition used for ‘significant locations of operation’. share ownership.
401-3 Parental leave Annual Report 2021 section 4.8.1 People performance data – Employee parental leave for FY2021.a. All employees are entitled to parental leave at BHP.
a. T otal number of employees that were entitled to parental leave, by
gender.
b. T otal number of employees that took parental leave, by gender.
c. Total number of employees that returned to work in the reporting period
after parental leave ended, by gender.
d. T otal number of employees that returned to work after parental leave
ended that were still employed 12 months after their return to work, by
gender.
e. R eturn to work and retention rates of employees that took parental leave,
by gender.
Labor/management relations
GRI 402: 402-1 Minimum notice periods regarding operational changes a. Minimum notice periods for termination of employment can vary from one
L abor/Management Relations 2016 a. Minimum number of weeks’ notice typically provided to employees and to fourteen weeks, depending on the employee’s location, role and terms of
their representatives prior to the implementation of significant operational contract, and may extend up to six months for senior management.
changes that could substantially affect them.
b. F or organisations w ith collective bargaining agreements, report whether b. Provisions for consultation and negotiation are specified in collective
the notice period and provisions for consultation and negotiation are agreements.
specified in collective agreements.
403-2 Hazard identification, risk assessment, and incident investigation Information can be found at bhp.com on Safety and Our Requirements for
a. A description of the processes used to identify work-related hazards and Safety standard.
assess risks on a routine and non-routine basis, and to apply the hierarchy
of controls in order to eliminate hazards and minimize risks, including:
i. how the organization ensures the quality of these processes, including the
competency of persons who carry them out
ii. how the results of these processes are used to evaluate and continually
improve the occupational health and safety management system
b. A description of the processes for workers to report work-related hazards
and hazardous situations, and an explanation of how workers are protected
against reprisals.
c. A description of the policies and processes for workers to remove
themselves from work situations that they believe could cause injury or ill
health, and an explanation of how workers are protected against reprisals.
d. A description of the processes used to investigate work-related incidents,
including the processes to identify hazards and assess risks relating to the
incidents, to determine corrective actions using the hierarchy of controls,
and to determine improvements needed in the occupational health and
safety management system.
403-4 Worker participation, consultation, and communication on Information can be found at bhp.com on Safety.
occupational health and safety
a. A description of the processes for worker participation and consultation in
the development, implementation, and evaluation of the occupational health
and safety management system, and for providing access to and
communicating relevant information on occupational health and safety to
workers.
b. Where formal joint management–worker health and safety committees
exist, a description of their responsibilities, meeting frequency, decision-
making authority, and w hether and, if so, why any workers are not
represented by these committees.
403-5 Worker training on occupational health and safety Annual Report 2021 section 1.13.4 Safety and section 1.13.5 Health
A description of any occupational health and safety training provided to
workers, including generic training as well as training on specific work- Information can be found at bhp.com on Safety and Health
related hazards, hazardous activities, or hazardous situations.
403-6 Promotion of worker health Annual Report 2021 section 1.13.5 Health
a. An explanation of how the organization facilitates workers’ access to non-
occupational medical and healthcare services, and the scope of access Information can be found at bhp.com on Health.
provided.
b. A description of any voluntary health promotion services and programs
offered to workers to address major non-work-related health risks, including
the specific health risks addressed, and how the organization facilitates
workers’ access to these services and programs.
403-7 Prevention and mitigation of occupational health and safety impacts Annual Report 2021 section 1.16 Risk factors.
directly linked by business relationships
A description of the organization’s approach to preventing or mitigating Information can be found at bhp.com on Safety and Health; Our
significant negative occupational health and safety impacts that are directly Requirements for Health standard; and Our Requirements for Safety
linked to its operations, products or services by its business relationships, standard.
and the related hazards and risks.
403-8 Workers covered by an occupational health and safety management Refer to Annual Report 2021 section 4.8.1 People performance data for total
system number of employees and contractors.
a. If the organization has implemented an occupational health and safety
management system based on legal requirements and/or recognized a. i. All (100 per cent) of BHP employees and contractors are working under
standards/guidelines: the BHP safety and health management system.
i. the number and percentage of all employees and workers who are not
employees but whose work and/or workplace is controlled by the a. ii. All (100 per cent) BHP operated assets have been internally audited in
organization, who are covered by such a system regards to safety and health at least once. We conduct sufficient procedures
ii. the number and percentage of all employees and workers who are not at sampled operations within our operated assets to conclude on safety and
employees but whose work and/or workplace is controlled by the health controls at operated asset level.
organization, who are covered by such a system that has been internally
audited a. iii. Most, (close to 100 per cent), BH P operated assets have been
iii. the number and percentage of all employees and workers w ho are not externally audited at least once. The occupational safety and health
employees but whose work and/or workplace is controlled by the management system was tested at a selection of the operated assets that
organization, who are covered by such a system that has been audited or are outlined in our external provider audit reports (available in previous
certified by an external party. Sustainability Reports), applying rotation and sampling rationale.
b. Whether and, if so, why any workers have been excluded from this
disclosure, including the types of worker excluded. b. No workers have been excluded from this disclosure.
c. Any contextual information necessary to understand how the data have
been compiled, such as any standards, methodologies, and assumptions
used.
403-9 Work-related injuries a. b. c-ii: Annual Report 2021 section 1.13.4 Safety and section 4.8.2 Health
a. F or all employees: and Safety performance data.
i. the number and rate of fatalities as a result of work-related injury
ii. the number and rate of high-consequence work-related injuries (excluding c. d. Information can be found at bhp.com on Safety. Group-wide safety
fatalities) risks and associated controls can be found at bhp.com on Our
iii. the number and rate of recordable work-related injuries Requirements for Safety standard.
iv. the main types of work-related injury
v. the number of hours worked e. Refer to our footnotes in our Annual R eport, we caculate safety rates
b. F or all workers who are not employees but whose work and/or workplace using both 200,000 and 1,000,000 hours worked.
is controlled by the organization:
i. The number and rate of fatalities as a result of work-related injury; f. No workers have been excluded from this disclosure.
ii. T he number and rate of high-consequence w ork-related injuries
(excluding fatalities); g. Refer to our Methodology tab.
iii. The number and rate of recordable work-related injuries;
iv. T he main types of work-related injury;
v. The number of hours w orked.
c. The work-related hazards that pose a risk of high-consequence injury,
including:
i. how these hazards have been determined;
ii. w hich of these hazards have caused or contributed to high-
consequence injuries during the reporting period;
iii. actions taken or underway to eliminate these hazards and minimize
risks using the hierarchy of controls.
d. Any actions taken or underw ay to eliminate other work-related hazards
and minimize risks using the hierarchy of controls.
e. Whether the rates have been calculated based on 200,000 or 1,000,000
hours worked.
f. Whether and, if so, why any workers have been excluded from this
disclosure, including the types of worker excluded.
g. Any contextual information necessary to understand how the data have
been compiled, such as any standards, methodologies, and assumptions
used.
403-10 Work-related ill health Annual Report 2021 section 1.13.5 Health and section 4.8.2 Health and
a. F or all employees: Safety - performance data.
i. the number of fatalities as a result of w ork-related ill health
ii. the number of cases of recordable work-related ill health No fatalities as a result of work-related ill health was recorded for our
iii. the main types of work-related ill health employees or contractors in FY2020.
b. F or all workers who are not employees but whose work and/or workplace
is controlled by the organization: c. We are currently piloting the A Participative Hazard Identification and Risk
i. tThe number of fatalities as a result of work-related ill health Management (APHIRM) approach in several of our Minerals Australia
ii. the number of cases of recordable work-related ill health operations to reduce incidence of musculoskeletal illness. We are working to
iii. the main types of work-related ill health improve our disclosure next year.
c. The work-related hazards that pose a risk of ill health, including:
i. how these hazards have been determined d. No workers have been excluded from this disclosure.
ii. which of these hazards have caused or contributed to cases of ill health
during the reporting period e. Refer to our Methodology tab.
iii. actions taken or underw ay to eliminate these hazards and minimize risks
using the hierarchy of controls
d. Whether and, if so, why any w orkers have been excluded from this
disclosure, including the types of worker excluded.
e. Any contextual information necessary to understand how the data have
been compiled, such as any standards, methodologies, and assumptions
used.
404-2 Programs for upgrading employee skills and transition assistance a. Annual Report 2021 section 1.12 People and culture – Developing our
programs capabilities and an enabled culture.
a. T ype and scope of programs implemented and assistance provided to
upgrade employee skills. b. Employees who leave BHP via retrenchment ordinarily receive support
b. T ransition assistance programs provided to facilitate continued services through our allocated providers in each region. We are working to
employability and the management of career endings resulting from improve our disclosures in this area in coming years.
retirement or termination of employment.
404-3 Percentage of employees receiving regular performance and career Annual Report 2021 section 4.8.1 People performance data – Employee regular performance discussion records.
development reviews
a. Percentage of total employees by gender and by employee category who
received a regular performance and career development review during the
reporting period.
405-2 Ratio of basic salary and remuneration of women to men a. Annual Report 2021 section 4.8.1 People performance data – Employees
a. R atio of the basic salary and remuneration of women to men for each by category and diversity; and Employee remuneration.
employee category, by significant locations of operation. We do not currently report this information for each employee category by
b. T he definition used for ‘significant locations of operation’. significant locations of operation. We are working to improve our disclosures
in this area in coming years.
Non-discrimination
GRI 406: 406-1 Incidents of discrimination and corrective actions taken a. Annual Report 2021 section 1.13.6 Ethics and business conduct.
N on-d iscrimination 2016 a. T otal number of incidents of discrimination during the reporting period.
b. Status of the incidents and actions taken with reference to the following: We do not currently report the number of incidents of discrimination and
i. incident reviewed by the organization corrective actions taken due to confidentiality constraints. However we
ii. remediation plans being implemented report the percentage of reports related to discrimination (8 per cent)
iii. remediation plans that have been implemented, with results reviewed received into EthicsPoint in F Y2021. We are working to improve our
through routine internal management review processes disclosures in this area in coming years.
iv. incident no longer subject to action
Information can be found at bhp.com on Ethics and Business Conduct –
EthicsPoint reports.
Child labor
GRI 408: 408-1 Operations and suppliers at significant risk for incidents of child labor Modern Slavery Statement FY2021 Our supply chain and Due diligence and
C hild Labo r 2016 a. Operations and suppliers considered to have significant risk for incidents risk management in our supply chain.
of:
i. child labor We report relevant data by reviewing our operated assets and suppliers
ii. young workers exposed to hazardous work using the Verisk Maplecroft Modern Slavery Index 2021.
b. Operations and suppliers considered to have significant risk for incidents
of child labor either in terms of:
i. type of operation (such as manufacturing plant) and supplier
ii. countries or geographic areas with operations and suppliers considered at
risk
c. Measures taken by the organization in the reporting period intended to
contribute to the effective abolition of child labor.
Security practices
GRI 410: 410-1 Security personnel trained in human rights policies or procedures a. Security and security-related human rights training is conducted regularly.
Security Practices 2016 a. Percentage of security personnel who have received formal training in the F or FY2021, 78 per cent of security officers completed security-related
organization’s human rights policies or specific procedures and their human rights training in Minerals Australia, 64 per cent in Minerals Americas
application to security. and 22 per cent in Petroleum assets.
b. Whether training requirements also apply to third-party organisations Note that w hile it is an expectation for all our security officers to complete
providing security personnel. human rights training, our F Y2021 training data were impacted by high
turnover and C OVID -19 restriction.
Seven (100 per cent) operated assets were subject to human rights reviews
or human rights impact assessments in Australia.
One (50 per cent) operated assets and legacy sites has been subject to
human rights reviews or human rights impact assessments in Canada.
T wo (100 per cent) operated assets have been subject to human rights
review s or human rights impact assessments in Chile.
No (0 per cent) operated assets and legacy sites have been subject to
human rights reviews or human rights impact assessments in Mexico,
T rinidad and T obago, or the U nited Staes.
412-2 Employee training on human rights policies or procedures Modern Slavery Statement FY2021 T raining and culture.
a. T otal number of hours in the reporting period devoted to training on
human rights policies or procedures concerning aspects of human rights that In FY2021, the Introduction to human rights training has been completed by
are relevant to operations. over 61 employees (approximately 2 per cent) of our workforce. This
b. Percentage of employees trained during the reporting period in human equates to close to 112 hours of training.
rights policies or procedures concerning aspects of human rights that are
relevant to operations.
Local communities
Public policy
Customer privacy
GRI 418: 418-1 Substantiated complaints concerning breaches of customer privacy BHP's Data Protection and Privacy Office (DPPO) has not been made
C ustom er Privacy 2016 and losses of customer data aware of any complaints related to BHP concerning breaches of customer
a. T otal number of substantiated complaints received concerning breaches privacy nor identified leaks, thefts, or losses of customer data in F Y2021.
of customer privacy, categorized by:
i. complaints received from outside parties and substantiated by the
organization
ii. complaints from regulatory bodies
b. T otal number of identified leaks, thefts, or losses of customer data.
c. If the organization has not identified any substantiated complaints, a brief
statement of this fact is sufficient.
Socioeconomic compliance
GRI 419: 419-1 Non-compliance with laws and regulations in the social and economic a. i. Annual Report 2021 section 4.8.2 Health and safety performance data - Significant fines for non-compliance with health, safety and environmental laws and/or regulations.a. ii. We do not currently report the number of non-monetary sanctions as this information is unavailable. We are looking to further develop our reporting of this information for future years.a. iii. We do not currently report the number of cases brought through dispute resolution mechanisms due to confidentiality constraints. c. We do not currently report the context against which significant fines and non-monetary sanctions were incurred due to confidentiality constraints. We are considering disclosures in this area for coming years.
Socio eco nomic Co mpliance 2016 area
a. Significant fines and non-monetary sanctions for non-compliance with
laws and/or regulations in the social and economic area in terms of:
i. total monetary value of significant fines
ii. total number of non-monetary sanctions
iii. cases brought through dispute resolution mechanisms
b. If the organization has not identified any non-compliance with laws and/or
regulations, a brief
statement of this fact is sufficient.
c. The context against which significant fines and non-monetary sanctions
were incurred.
Annual Report BHP Reports
The entity shall disclose its gross global Scope 1 greenhouse gas (GHG) emissions
to the atmosphere of the seven GHGs covered under the Kyoto Protocol – carbon
dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3).
The entity shall disclose the percentage of its gross global Scope 1 GHG emissions
that are covered under an emissions-limiting regulation or program that is intended
to directly limit or reduce emissions, such as cap-and-trade schemes, carbon tax/fee
systems and other emissions control (e.g. command-and-control approach) and
permit based mechanisms.
EM-MM-110a.2 Discussion of long-term and short-term strategy or plan to manage Scope 1 Annual Report 2021 section 1.13.7 Climate change and portfolio resilience.
emissions, emissions reduction targets and an analysis of performance against Climate Transition Action Plan 2021.
those targets. Climate Change Report 2020 section 2.2 Reducing our GHG emissions.
The entity shall discuss its long-term and short-term strategy or plan to manage its BHP’s strategy is not driven by any regulatory emissions trading scheme.
Scope 1 GHG emissions.
The entity shall discuss its emission reduction target(s) and analyze its performance
against the target(s).
The entity shall discuss the activities and investments required to achieve the plans
and/or targets, and any risks or limiting factors that might affect achievement of the
plans and/or targets.
The entity shall discuss the scope of its strategies, plans, and/or reduction targets,
such as whether they pertain differently to different business units, geographies or
emissions sources.
The entity shall discuss whether its strategies, plans and/or reduction targets are
related to, or associated with, emissions limiting and/or emissions reporting-based
programs or regulations (e.g. the EU Emissions Trading Scheme), including
regional, national, international, or sectoral programs.
Air quality EM-MM-120a.1 Air emissions of the following pollutants: (1) CO, (2) NOx (excluding N2O), (3) SOx, (2) (3) (5) Annual Report 2021 section 4.8.4 Environment – performance data – Air emissions for FY2021.(1), (4), (6) and (7) In Australia where required, BHP reports air emissions using site-specific data via publicly available submissions to the National Pollutant Inventory (NPI). Submissions to the NPI cover the air pollutants emissions liste
(4) particulate matter (PM10), (5) mercury (Hg), (6) lead (Pb), and (7) volatile organic
compounds (VOCs).
The entity shall disclose its emissions of air pollutants, in metric tons per pollutant,
that are released into the atmosphere.
Energy management EM-MM-130a.1 (1) Total energy consumed, (2) percentage grid electricity and (3) percentage Annual Report 2021 section 4.8.5 Climate change – performance data – Energy consumption.
renewable.
The entity shall disclose (1) the total amount of energy it consumed as an aggregate
figure, in gigajoules (GJ).
The entity shall disclose (2) the percentage of energy it consumed that was supplied
from grid electricity.
The entity shall disclose (3) the percentage of energy it consumed that is renewable
energy.
Water management EM-MM-140a.1 EM-MM-140a.1. (1) Total fresh water withdrawn, (2) total fresh water consumed, Annual Report 2021 section 4.8.4 Environment – performance data and
percentage of each in regions with High or Extremely High Baseline Water Stress. section 4.8.6 Water – performance data.
The entity shall disclose the amount of water, in thousands of cubic meters, that was Two of our assets are located in area classified as 'water stressed' based on
withdrawn from freshwater sources. the physical risk rating from the WWF Water Risk Filter and in line with the
Fresh water may be defined according to the local statutes and regulations where CEO water mandate definition of water stress.
the entity operates. Where there is no regulatory definition, fresh water shall be
considered to be water that has less than 1000 parts per million of dissolved solids Total water withdrawals from operated assets in FY2021 was 438,660 ML.
per the U.S. Geological Survey. Of this total withdrawals, the volume of freshwater was 113,444 ML. The
total withdrawals from operated assets located in high or very high water-
The entity shall disclose the amount of water, in thousands of cubic meters, that was stressed areas (as determined by WWF water risk filter) was 233,190 ML.
consumed in its operations. Over 90 per cent of the total withdrawals in water stress areas is from
seawater and therefore not classified as fresh water.
The entity shall analyze all of its operations for water risks and identify activities that
withdraw and consume water in locations with High (40–80%) or Extremely High Total consumption, from both fresh water and other water sources (eg
(>80%) Baseline Water Stress as classified by the World Resources Institute’s (WRI) seawater, hypersaline groundwater) in FY2021 was 267,130 ML and
Water Risk Atlas tool, Aqueduct. 106,950 ML in high or very high water-stressed locations respectively (40
The entity shall disclose its water withdrawn in locations with High or Extremely High per cent). Note that due to the complexity of water movements within our
Baseline Water Stress as a percentage of the total water withdrawn. operated assets, the volume of fresh water consumed separately to total
The entity shall disclose its water consumed in locations with High or Extremely High consumption is not available.
Baseline Water Stress as a percentage of the total water consumed.
BHP defines ‘fresh water’ 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 BHP freshwater public target’s
intent to reduce the use of freshwater sources of potential value to other
users or the environment.
EM-MM-140a.2 Number of incidents of non-compliance associated with water quality permits, Annual Report 2021 section 4.8.6 Water – performance data – Water-related
standards, and regulations. legal performance.
The entity shall disclose the total number of instances of non-compliance, including During FY2021, we had three incidents of water-related non-compliance that
violations of a technology-based standard and exceedances of quality-based resulted in a formal enforcement action. These all occurred in our Minerals
standards. Australia assets with two at BMA and one at BMC. None of these were
associated with non-compliance with discharge limits set by regulatory
permits.
Waste and hazardous materials EM-MM-150a.1 Total weight of tailings waste, percentage recycled. For FY2021, our total tailings waste was 187,150 kilotonnes.
management
The entity shall disclose the total amount of tailings waste generated by the entity We recycled immaterial amount of tailings waste. We are working to improve
during the reporting period. our disclosures in this area in coming years.
The amount of total tailings waste shall be calculated in metric tons, where waste is
defined as anything for which the entity has no further use and which is discarded or
released to the environment.
The scope includes tailings waste generated from mining activities.
The scope of disclosure excludes waste rock and overburden.
The entity shall disclose the percentage of tailings waste that was recycled during
the reporting period.
The percentage recycled shall be calculated as the weight of tailings waste material
that was reused plus the weight recycled or remanufactured (through treatment or
processing) by the entity plus the amount sent externally for further recycling divided
by the total weight of tailings waste material.
EM-MM-150a.2 Total weight of mineral processing waste, percentage recycled. Annual Report 2021 section 4.8.4 Environment - performance data.
BHP reports Hazardous waste – Mineral total (including tailings) and Non-
The entity shall disclose the total amount of mineral processing waste generated by hazardous waste - Mineral tailings.
the entity during the reporting period.
We are working to better align our corporate reporting with SASB definitions
The amount of total mineral processing waste shall be calculated in metric tons, in coming years.
where waste is defined as anything for which the entity has no further use and which
is discarded or released to the environment.
The scope includes waste generated during metals processing (e.g., smelting and
refining), such as slags, dusts, sludges, and spent solvents.
The scope includes scrap metal, reject coal, used oil, and other solid wastes and
excludes gaseous wastes.
The entity shall disclose the percentage of mineral processing waste that was
recycled during the reporting period.
EM-MM-150a.3 Number of tailings impoundments, broken down by MSHA hazard potential. Annual Report 2021 section 1.13.15 Tailings storage facilities (TSFs).
The entity shall disclose the number of tailings impoundments according to the The classifications described in the Annual Report align to the Canadian
following U.S. Mine Safety and Health Administration (MSHA) hazard potential Dam Association (CDA) classification system. It is important to note the
classification. tailings storage facility (TSF) classification is one element of TSF risk
management, but does not represent risk itself. It reflects the modelled,
hypothetical, most significant possible failure and consequences without
controls. It does not reflect the current physical stability of the TSF and it is
possible for TSF classifications to change over time, for example, following
changes to the operating context of a dam.
Biodiversity impacts EM-MM-160a.1 Description of environmental management policies and practices for active sites. Information can be found at bhp.com under Environment; Biodiversity and
Land and Our Requirements for Environment and Climate Change standard.
The entity shall describe its environmental management plan(s) implemented at
active sites. Our policies and practices are partially aligned with the International Finance
Corporation’s (IFC) Performance Standards 1, 3, 4 and 6.
The entity shall disclose the degree to which its policies and practices are aligned
with the International Finance Corporation’s (IFC) Performance Standards on We are working to improve of our disclosures to better align with the SASB
Environmental and Social Sustainability, January 1, 2012, including specifically: requirement in coming years.
Performance Standard 1 — Assessment and Management of Environmental and
Social Risks and Impacts.
Performance Standard 3 — Resource Efficiency and Pollution Prevention.
Performance Standard 4 — Community Health, Safety, and Security.
Performance Standard 6 — Biodiversity Conservation and Sustainable Management
of Living Natural Resources.
EM-MM-160a.2 Percentage of mine sites where acid rock drainage is: (1) predicted to occur, (2) AMD mitigation and management requirements are detailed in the BHP
actively mitigated, and (3) under treatment or remediation. minimum mandatory performance requirements, which are applicable to all
BHP operated mine sites. Acid and Metalliferous Drainage (AMD) has the
The entity shall disclose the percentage of its mine sites (by annual production potential to occur at 100 per cent of our producing mine sites (based on
output from mines in metric tons) where acid-generating seepage into surrounding annual ore production). Mined waste materials are managed to actively
surface water and/or groundwater is: (1) predicted to occur, (2) actively mitigated, mitigate AMD at 99.5 per cent of our producing mine sites (based on annual
and (3) under treatment or remediation. ore production). AMD is not currently treated at any of our producing mines.
Refer to the notes below for clarification of this response against the SASB
Acid Rock Drainage (ARD) is predicted to occur if, based on computer simulations, Accounting metrics for this item.
chemical evaluations, and/ or acidbase accounting, it is biochemically likely that
ARD could form at the mine site. Notes:
ARD is considered to be actively mitigated if the entity is preventing the formation of • BHP uses the term Acid and Metalliferous Drainage (AMD) rather than
ARD through methods thatinclude, but are not limited to: storing or covering sulfite- Acid Rock Drainage (ARD) and the BHP definition of AMD includes
bearing minerals to prevent oxidation, flood prevention and mine sealing, mixing of drainage, which is considered as metalliferous without being acidic, i.e.
acid buffering materials with acid-producing materials, or chemical treatment of Neutral Metalliferous Drainage (NMD) and Saline Drainage (SD).
sulfide wastes (e.g., organic chemicals designed to kill sulfide-oxidizing bacteria). • Reflecting BHP’s minimum mandatory performance requirements, the
ARD is considered under treatment or remediation, if the acidic water discharged statement above states that AMD has the 'potential' to occur rather than
from the mine area is captured and undergoes a wastewater treatment process being 'predicted' to occur. This includes all sites with at least one mined
(active or passive). waste with the potential to generate AMD; however, AMD is not necessarily
predicted to occur and/or impact surface water or groundwater at these
sites, nor does the ‘potential’ for AMD to occur necessarily mean AMD is
actually occurring and so requires treatment.
• Calculations only include mines that had production tonnes in FY2021.
Production tonnages used in calculations are from the 2021 Annual Report
section 4.5.1 Production – Minerals.
• Copper tonnages include both concentrate plus cathodes where
applicable.
• Production tonnes are based on primary production minerals and do not
include subsidiary minerals such as gold, silver or uranium.
• Non-operated joint ventures are not included.
EM-MM-160a.3 Percentage of (1) proved and (2) probable reserves in or near sites with protected Annual Report 2021 section 4.8.4 Environment – performance data provides
conservation status or endangered species habitat. information on the total number of IUCN Red List species and national
conservation list species with habitats in areas affected by our operated
The entity shall disclose the percentage and grade (in percentage metal content) of assets as at 30 June 2021 as well as the list of operated assets owned,
proved reserves in sites with protected conservation status or in areas of leased, managed in or adjacent to protected areas and areas of high
endangered species habitat. biodiversity value outside protected areas as at 30 June 2021.
The entity shall disclose the percentage and grade (in percentage of metal content) We are working to better align our reporting with the SASB definition,
of probable reserves in sites with protected conservation status or in areas of including consideration of the feasibility of an accurate correlation with
endangered species habitat. proved and probable reserves in coming years.
Security, human rights and rights EM-MM-210a.1 Percentage of (1) proved and (2) probable reserves in or near areas of conflict. Of the six countries in which we operate mining activities, none is classified
of Indigenous peoples as an area of conflict.
The entity shall disclose the percentage and grade (in percentage metal content) of
proved reserves that are located in or near areas of active conflict. 0 per cent of proved and probable mineral and ore reserves.
0 per cent of proved petroleum reserves.
The entity shall disclose the percentage and grade (in percentage metal content) of
probable reserves that are located in or near areas of active conflict. Reserves are considered to be in or near an area of active conflict if it is
located in the same country where active conflict exists, as defined by the
Active conflict is defined according to the Uppsala Conflict Data Program (UCDP) Uppsala Conflict Data Program (UCDP).
definition.
Ore and petroleum reserve data used in calculations was sourced from the
Reserves shall be considered to be in or near an area of active conflict if it is located Annual Report 2021 section 4.6.1 Petroleum reserves and section 4.6.2
in the same country as the active conflict. Mineral Resources and Ore Reserves. Only proved reserve data was
available for petroleum reserves. Reserves part of non-operated joint
ventures have not been included in the calculations.
EM-MM-210a.2 Percentage of (1) proved and (2) probable reserves in or near indigenous land. Annual Report 2021 section 4.8.3 Society – performance data FY2021
provides data on the number of our operations located in or adjacent to
The entity shall disclose the percentage and grade (in percentage metal content) of Indigenous peoples’ territories for FY2021.
proved reserves that are located in or near areas that are considered to be
indigenous peoples’ land. We are working to better align our reporting with the SASB definition,
including consideration of the feasibility of an accurate correlation with
The entity shall disclose the percentage and grade (in percentage metal content) of proved and probable reserves in coming years.
probable reserves that are located in or near areas that are considered to be
indigenous peoples’ land.
For the purposes of this disclosure, “near” is defined as within 5 kilometers of the
recognized boundary of an area considered to be indigenous land to the location of
the entity’s proven and probable reserves.
EM-MM-210a.3 Discussion of engagement processes and due diligence practices with respect to Modern Slavery Statement FY2021.
human rights, indigenous rights, and operation in areas of conflict.
Our engagement processes and due diligence practices with respect to
The entity shall describe its due diligence practices and procedures with respect to human rights, Indigenous peoples' rights and operation in areas of conflict
indigenous rights of communities in which it operates or intends to operate. are described at bhp.com under Human rights and Indigenous peoples.
The entity shall describe its due diligence practices and procedures with respect to Information can be found at bhp.com on Our Code of Conduct; Human
human rights. Rights Policy Statement; Indigenous Peoples Policy Statement; Indigenous
Peoples Strategy; Our Requirements for Community standard; and our
The entity shall discuss its practices and procedures while operating in areas of Minimum requirements for suppliers.
conflict.
Community relations EM-MM-210b.1 Discussion of process to manage risks and opportunities associated with community Our process to manage risks (both threats and opportunities) associated
rights and interests. with community rights and interests are described in the Annual Report
2021 section 1.9 How we manage risk, section 1.13.8 Community; section
The entity shall discuss its processes, procedures, and practices to manage risks 1.13.9 Human Rights; and section 1.16 Risk factors – Significant social or
and opportunities associated with the rights and interests of communities in areas environmental impacts.
where it conducts business.
In our Human Rights Impact Assessment, the list of rights assessed include
The entity shall disclose the following, where relevant: (but are not limited to): Economic and social impacts – housing and
Lifecycle stages to which its practices apply, such as: pre-bid (when the entity is employment, fair and equitable treatment, air and dust, water, Indigenous
considering acquisition of a site), exploration and appraisal, site development, peoples, cumulative impacts, local supply chain, noise and tailings.
mineral production, and during closure, decommissioning,
and restoration. Information can be found at bhp.com under Community; Human Rights; and
The community rights and interests (enumerated above) specifically addressed by Our Requirements for Community standard.
the practices.
The underlying references for its procedures, including whether they are codes, Our policies and practices are fully aligned with the International Finance
guidelines, standards, or regulations and whether they were developed by the entity, Corporation’s (IFC) Performance Standards 5 – Land Acquisition and
an industry organization, a third-party organization (e.g., a non-governmental Involuntary Resettlement and partially aligned with the IFC Performance
organization), a governmental agency, or some combination of these groups. Standards 4 and 8.
The entity shall disclose the degree to which its policies and practices are aligned Our practices apply to business partners, such as contractors,
with the International Finance Corporation’s (IFC) Performance Standards on subcontractors and suppliers as described at bhp.com under Our Code of
Environmental and Social Sustainability, January 1, 2012, including specifically: Conduct and our Minimum requirements for suppliers. Information about our
Performance Standard 4 — Community Health, Safety, and Security. approach to joint venture partners can be found on our website at bhp.com
Performance Standard 5 — Land Acquisition and Involuntary Resettlement under Non-operated joint ventures.
Performance Standard 8 — Cultural Heritage
The discussion shall include how practices apply to business partners such as
contractors, sub-contractors, suppliers, and joint venture partners.
EM-MM-210b.2 Number and duration of non-technical delays. In FY2021, there were no protest events or project delays as a result of
community concerns, community or stakeholder resistance or protest, or
The entity shall disclose the total number and aggregate duration (in days) of site armed conflict in relation to BHP’s operated assets.
shutdowns or project delays due to non-technical factors.
The scope includes shutdowns and project delays including, but not limited to, those
resulting from pending regulatory permits or other political delays related to
community concerns, community or stakeholder resistance or protest, and armed
conflict.
The scope of disclosure excludes delays due to strikes and lockouts that are
disclosed according to EM-MM-310a.2.
Labor relations EM-MM-310a.1 Percentage of active workforce covered under collective bargaining agreements, Annual Report 2021 section 4.8.1 People – performance data – Active employee workforce globally on collective bargaining agreements.There were no employees in the United States on collective bargaining agreements during FY2021.
broken down by U.S. and foreign employees.
The entity shall disclose the percentage of U.S. employees and the percentage of
foreign employees in the active workforce that are covered under collective
bargaining agreements during any part of the reporting period.
EM-MM-310a.2 Number and duration of strikes and lockouts. Annual Report 2021 section 1.12 People and culture.
The entity shall disclose the number of work stoppages and total duration, in worker In the collective bargaining between BHP Chile Inc. and the Specialists
days idle, of work stoppages involving 1,000 or more workers lasting one full shift or and Supervisors Union, there were 13 days of legal strike action (27 May
longer. 2021 to 8 June 2021).
The scope of disclosure includes work stoppage due to disputes between labor and
management, including strikes and lockouts.
Workforce health and safety EM-MM-320a.1 (1) MSHA all-incidence rate, (2) fatality rate, (3) near miss frequency rate (NMFR) (1), (2) and (4) Annual Report 2021 section 4.8.2 Health and Safety – performance data.Note that average hours of health and safety training for contractors is not currently available. We are working to improve our disclosure for next year.(3) Near miss frequency rate for FY2021 is 1.12 for employees and 0.20 for contractors per 200,000 hou
and (4) average hours of health, safety, and emergency response training for (a) full-
time employees and (b) contract employees.
Business ethics and transparency EM-MM-510a.1 Description of the management system for prevention of corruption and bribery Information on our management system for prevention of corruption and
throughout the value chain. bribery throughout the value chain can be found at bhp.com under Ethics
and Business Conduct.
The entity shall describe its management system and due diligence procedures for
assessing and managing corruption and bribery risks internally and associated with
business partners in its value chain.
EM-MM-510a.2 Production in countries that have the 20 lowest rankings in Transparency BHP has no production in the countries that have the 20 lowest rankings in
International’s Corruption Perception Index. Transparency International’s Corruption Perception Index 2020.
The entity shall disclose its net production from activities located in the countries with
the 20 lowest rankings in Transparency International’s Corruption Perception Index
(CPI).
The entity shall use the most current version of the CPI.
Production shall be disclosed in saleable tons of minerals.
Activity metrics EM-MM-000.A Production of (1) metal ores and (2) finished metal products Annual Report 2021 section 4.5.1 Production – Minerals.
EM-MM-000.B Total number of employees, percentage contractors Annual Report 2021 section 4.8.1 People – performance data.
Annual Report BHP Reports
Describe management’s role in In describing management’s role related to the assessment and management Annual Report 2021 section 1.15.7 Climate change and portfolio resilience -
assessing and managing climate- of climate-related issues, organizations should consider including the Governance and management; section 2.1.3 BHP governance structure;
related risks and opportunities. following information: section 2.1.5 Key Board activities during FY2021 - Climate change; section
‒ whether the organization has assigned climate-related responsibilities to 2.1.10 Risk and Audit Committee Report; section 2.1.11 Sustainability
management-level positions or committees; and, if so, whether such Committee Report; and section 2.1.14 Management.
management positions or committees report to the board or a committee of
the board and whether those responsibilities include assessing and/or Climate Change Report 2020 section 1. Governance.
managing climate-related issues,
‒ a description of the associated organizational structure(s), Information can be found at bhp.com in Sustainability Committee Terms of
‒ processes by which management is informed about climate-related issues, Reference.
and
‒ how management (through specific positions and/or management
committees) monitors climate-related issues.
Strategy Describe the climate-related risks and Organizations should provide the following information: We disclose climate-related issues across a range of time horizons in our
opportunities the organization has ‒ a description of what they consider to be the relevant short-, medium-, and CDP response section C2.3.
identified over the short, medium, and long-term time horizons, taking into consideration the useful life of the
long term. organization’s assets or infrastructure and the fact that climate-related issues Information can be found at bhp.com in Climate change – Risk
often manifest themselves over the medium and longer terms, management.
‒ a description of the specific climate-related issues for each time horizon
(short, medium, and long term) that could have a material financial impact on We are working to improve our disclosures in our Annual Report in coming
the organization, and years.
‒ a description of the process(es) used to determine which risks and
opportunities could have a material financial impact on the organization.
Describe the impact of climate-related Building on recommended disclosure (a), organizations should discuss how Annual Report 2021 section 1.13.7 Climate change and portfolio resilience;
risks and opportunities on the identified climate-related issues have affected their businesses, strategy, and section 1.16 Risk factors and section 3.1.5 Consolidated Statement of
organization’s businesses, strategy, financial planning. Organizations should consider including the impact on Changes in Equity.
and financial planning. their businesses and strategy in the following areas:
‒ Products and services Climate Change Report 2020 section 1. Governance; section 2. Taking
‒ Supply chain and/or value chain action through targets, goals and strategies; and section 3.1 Risk
‒ Adaptation and mitigation activities Framework.
‒ Investment in research and development
‒ Operations (including types of operations and location of facilities) Information can be found at bhp.com in Climate change – Risk
Organizations should describe how climate-related issues serve as an input management.
to their financial planning process, the time period(s) used, and how these
risks and opportunities are prioritized. Organizations’ disclosures should We are working to improve our disclosures in our Annual Report in coming
reflect a holistic picture of the interdependencies among the factors that affect years.
their ability to create value over time. Organizations should also consider
including in their disclosures the impact on financial planning in the following
areas:
‒ Operating costs and revenues
‒ Capital expenditures and capital allocation
‒ Acquisitions or divestments
‒ Access to capital If climate-related scenarios were used to inform the
organization’s strategy and financial planning, such scenarios should be
described.
Describe the resilience of the Organizations should describe how resilient their strategies are to Annual Report 2021 section 1.6.3 How our choice of commodities and
organization’s strategy, taking into climaterelated risks and opportunities, taking into consideration a transition to assets helps deliver value; section 1.13.7 Climate change and portfolio
consideration different climate-related a lower-carbon economy consistent with a 2°C or lower scenario and, where resilience and section 1.16 Risk factors – Sensitivity of our portfolio to
scenarios, including a 2°C or lower relevant to the organization, scenarios consistent with increased physical demand for fossil fuels.
scenario. climate-related risks. Organizations should consider discussing:
‒ where they believe their strategies may be affected by climate-related risks Climate Change Report 2020 section 2.1 Portfolio analysis; section 2.5
and opportunities; Adaptation strategy; section 2.6 Advocacy strategy; and section 3.1 Risk
‒ how their strategies might change to address such potential risks and framework.
opportunities; and
‒ the climate-related scenarios and associated time horizon(s) considered.
Risk management Describe the organization’s processes Organizations should describe their risk management processes for Annual Report 2021 section 1.9 How we manage risk; section 1.13.7
for identifying and assessing climate- identifying and assessing climate-related risks. An important aspect of this Climate change and portfolio resilience and section 1.16 Risk factors.
related risks. description is how organizations determine the relative significance of
climate-related risks in relation to other risks. Climate Change Report 2020 section 3. Risk Management and Glossary.
Organizations should describe whether they consider existing and emerging
regulatory requirements related to climate change (e.g. limits on emissions) Information can be found at bhp.com on Climate change – Risk
as well as other relevant factors considered. Organizations should also management.
consider disclosing the following:
‒ processes for assessing the potential size and scope of identified climate- We are working to improve our disclosures in our Annual Report in coming
related risks and years.
‒ definitions of risk terminology used or references to existing risk
classification frameworks used.
Describe the organization’s processes Organizations should describe their processes for managing climate-related Annual Report 2021 section 1.9 How we manage risk and section 1.16 Risk
for managing climate-related risks. risks, including how they make decisions to mitigate, transfer, accept, or factors.
control those risks. In addition, organizations should describe their processes
for prioritizing climate-related risks, including how materiality determinations Climate Change Report 2020 section 3. Risk Management.
are made within their organizations.
Information can be found at bhp.com on Climate change – Risk
management.
Describe how processes for Organizations should describe how their processes for identifying, assessing, Annual Report 2021 section 1.9 How we manage risk and section 1.16 Risk
identifying, assessing, and managing and managing climate-related risks are integrated into their overall risk factors.
climate-related risks are integrated management.
into the organization’s overall risk
management.
Metrics and targets Disclose the metrics used by the Organizations should consider including metrics on climate-related risks Annual Report 2021 section 1.13.7 Climate change and portfolio resilience
organization to assess climate-related associated with water, energy, land use, and waste management where and section 2.2.3 Annual report on remuneration.
risks and opportunities in line with its relevant and applicable.
strategy and risk management Where climate-related issues are material, organizations should consider Climate Change Report 2020 section 1.1 Role and responsibilities of the
process. describing whether and how related performance metrics are incorporated Board – Remuneration policy and outcomes.
into remuneration policies.
Where relevant, organizations should provide their internal carbon prices as We are working to improve our carbon price disclosures in our Annual
well as climate-related opportunity metrics such as revenue from products Report in coming years.
and services designed for a lower-carbon economy.
Metrics should be provided for historical periods to allow for trend analysis. In
addition, where not apparent, organizations should provide a description of
the methodologies used to calculate or estimate climate-related metrics.
Disclose Scope 1, Scope 2, and, if Organizations should provide their Scope 1 and Scope 2 GHG emissions Annual Report 2021 section 1.13.7 Climate change and portfolio resilience
appropriate, Scope 3 greenhouse gas and, if appropriate, Scope 3 GHG emissions and the related risks. and section 4.8.5 Climate change - performance data.
(GHG) emissions, and the related GHG emissions should be calculated in line with the GHG Protocol
risks. methodology to allow for aggregation and comparability across organizations Information can be found at bhp.com on BHP Scope 1, 2 and 3 GHG
and jurisdictions. As appropriate, organizations should consider providing Emissions Calculation Methodology 2021.
related, generally accepted industry-specific GHG efficiency ratios.
GHG emissions and associated metrics should be provided for historical
periods to allow for trend analysis. In addition, where not apparent,
organizations should provide a description of the methodologies used to
calculate or estimate the metrics.
Describe the targets used by the Organizations should describe their key climate-related targets such as those Annual Report 2021 section 1.13.3 Our sustainability performance: Non-
organization to manage climate- related to GHG emissions, water usage, energy usage, etc., in line with financial KPIs.
related risks and opportunities and anticipated regulatory requirements or market constraints or other goals.
performance against targets. Other goals may include efficiency or financial goals, financial loss Information can be found at bhp.com on BHP Scope 1, 2 and 3 GHG
tolerances, avoided GHG emissions through the entire product life cycle, or Emissions Calculation Methodology 2021.
net revenue goals for products and services designed for a lower-carbon
economy. In describing their targets, organizations should consider including
the following:
‒ whether the target is absolute or intensity based,
‒ time frames over which the target applies,
‒ base year from which progress is measured, and
‒ key performance indicators used to assess progress against targets. Where
not apparent, organizations should provide a description of the
methodologies used to calculate targets and measures.
Describe the resilience of the Organizations with more than one billion U.S. dollar equivalent (USDE) in Annual Report 2021 section 1.13.7 Climate change and portfolio resilience;
organization’s strategy, taking into annual revenue should consider conducting more robust scenario analysis to section 1.16 Risk factors – Sensitivity of our portfolio to demand for fossil
consideration different climate-related assess the resilience of their strategies against a range of climate-related fuels and section and section 3.1.5 Consolidated Statement of Changes in
scenarios, including a 2°C or lower scenarios, including a 2°C or lower scenario and, where relevant to the Equity.
scenario. organization, scenarios consistent with increased physical climate-related
risks. Climate Transition Action Plan 2021 – 4. Assessing capital alignment with a
Organizations should consider discussing the implications of different policy 1.5°C world.
assumptions, macro-economic trends, energy pathways, and technology
assumptions used in publicly available climate-related scenarios to assess Climate Change Report 2020 section 2.1 Portfolio analysis.
the resilience of their strategies.
For the climate-related scenarios used, organizations should consider Information can be found at bhp.com in Climate change; Climate change:
providing information on the following factors to allow investors and others to portfolio analysis (2015); and Climate change: Portfolio analysis – Views
understand how conclusions were drawn from scenario analysis: after Paris (2016).
‒ Critical input parameters, assumptions, and analytical choices for the
climaterelated scenarios used, particularly as they relate to key areas such as
policy assumptions, energy deployment pathways, technology pathways, and
related timing assumptions.
‒ Potential qualitative or quantitative financial implications of the climate-
related scenarios, if any.
Metrics and targets Disclose the metrics used by the For all relevant metrics, organizations should consider providing historical Annual Report 2021 section 1.13.3 Our sustainability performance: Non-
organization to assess climate-related trends and forward-looking projections (by relevant country and/or financial KPIs; section 1.13.7 Climate change and portfolio resilience; and
risks and opportunities in line with its jurisdiction, business line, or asset type). Organizations should also consider section 4.8 Sustainability performance data.
strategy and risk management disclosing metrics that support their scenario analysis and strategic planning
process. process and that are used to monitor the organization’s business environment Refer 'illustrative examples' table below for example metrics for the
from a strategic and risk management perspective. Organizations should Materials and Buildings group.
consider providing key metrics related to GHG emissions, energy, water, land
use, and, if relevant, investments in climate adaptation and mitigation that Information can be found at bhp.com on BHP Scope 1, 2 and 3 GHG
address potential financial aspects of shifting demand, expenditures, asset Emissions Calculation Methodology 2021.
valuation, and cost of financing.
Refer "illustrative examples" table below for example metrics for the Materials
and Buildings Group.
Illustrative examples
Materials and Buildings Group - Metals and Mining
Financial category Climate-related category Example metric Unit of measure BHP response
Revenues Risk adaptation and mitigation Revenues/savings from investments Local currency Annual Report 2021 section 1.13.7 Climate change and portfolio resilience -
in low-carbon alternatives (e.g. R&D, Green revenue.
equipment, products or services).
Climate Change Report 2020 section 2.2 Reducing our GHG emissions.
Expenditures Risk adaptation and mitigation Expenditures (OpEx) for low-carbon Local currency Annual Report 2021 section 1.13.7 Climate change portfolio resilience –
alternatives (e.g. R&D, technology, Investing in decarbonisation.
products, or services).
We do not currently disclose our expenditures (OpEx) for low-carbon
alternatives. We are working to better align our disclosures in this area in
coming years.
Expenditures Energy/fuel Total energy consumed, broken down GJ Annual Report 2021 section 1.13.7 Climate change and portoflio resilience and section 4.8.5 Climate change performance data
by source (e.g. purchased electricity
and renewable sources).
Expenditures Energy/fuel Total fuel consumed – percentage GJ Annual Report 2021 section 1.13.7 Climate change and portoflio resilience and section 4.8.5 Climate change performance data
from coal, natural gas, oil and
renewable sources.
Expenditures Energy/fuel Total energy intensity – by tons of GJ Annual Report 2021 section 4.8.5 Climate change performance data.
product, amount of sales, number of
products depending on informational
value.
Expenditures Water Percent of fresh water withdrawn in Percentage Annual Report 2021 section 4.8.4 Environment – performance data and
regions with high or extremely high section 4.8.6 Water – performance data.
baseline water stress.
Total water withdrawals from operated assets in FY2021 was 438,660 ML.
Of this total withdrawals the volume of freshwater was 113,444 ML. The total
withdrawals from operated assets located in high or very high water-
stressed areas (as determined by WWF water risk filter) was 233,190 ML.
Over 90 per cent of the total withdrawals in water stress areas is from
seawater and therefore not classified as freshwater.
Assets Location Area of buildings, plants or properties Percentage probability, costs to insure We assess our operated assets for water-related risk, which include
located in designated flood hazard in local currency flooding, and assign a water-related risk rating for each site.
areas.
Information can be found at bhp.com in Water – Our water-related risks.
We do not currently disclose the area of our assets nor the probability or
costs to insure. Our risk financing approach is, where appropriate, to self-
insure for certain risks, including property damage and business
interruption, sabotage and terrorism, marine cargo reinsurance,
construction, public liability and applicable employee benefits, or to not
Square meters purchase external insurance for certain risks.
or acres
We are working to better align our disclosures in this area in coming years.
Assets Risk Adaptation and mitigation investment Local currency Annual Report 2021 section 1.13.7 Climate change portfolio resilience –
(CapEx) in low-carbon alternatives Investing in decarbonisation.
(e.g. capital equipment or assets).
In FY2021, US$29 million invested in GHG emissions reduction across our
operated assets and value chain, and committed to spend significantly
more, including up to US$65 million over coming years towards partnerships
with our customers in the steel sector under our Climate Investment
Program (at least US$400 million over the five-year life of the Program).
Annual Report
Our Requirements
Metric (a): The company has made a qualitative net zero GHG emissions ambition statement that
explicitly includes at least 95% of Scope 1 and 2 emissions.
Metric (b): The company’s net zero GHG emissions ambition covers the most relevant Scope 3 GHG
emissions categories for the company's sector, where applicable.
Sub-indicator 2.2
The long term (2036 to 2050) GHG reduction target covers at least 95% of Scope 1 and 2 emissions
and the most relevant Scope 3 emissions (where applicable).
Metric (a): The company has specified that this target covers at least 95% of total Scope 1 and 2
emissions.
Metric (b): If the company has set a Scope 3 GHG emissions target, it covers the most relevant
Scope 3 emissions categories for the company's sector (for applicable sectors), and the Group has
published the methodology used to establish any Scope 3 target.
Sub-indicator 2.3
The target (or, in the absence of a target, the company's latest disclosed GHG emissions intensity) is
aligned with the goal of limiting global warming to 1.5°C.
The intent is for the long-term target to be aligned with a trajectory to achieve the Paris Agreement
goal of limiting global temperature increase to 1.5°C with low or no overshoot (equivalent to IPCC
Special Report on 1.5°C pathway P1 or net zero emissions by 2050).
If the company's current emissions intensity is aligned with the assessment scenario used (or will be
aligned in the short or medium term), it is assumed that the intensity will continue to be aligned in the
long term.
Sub-indicator 3.2
The medium term (2026 to 2035) GHG reduction target covers at least 95% of Scope 1 and 2
emissions and the most relevant Scope 3 emissions (where applicable).
Metric (a): The company has specified that this target covers at least 95% of total Scope 1 and 2
emissions.
Metric (b): If the company has set a Scope 3 GHG emissions target, it covers the most relevant
Scope 3 emissions categories for the company’s sector (for applicable sectors), and the company has
published the methodology used to establish any Scope 3 target.
Sub-indicator 3.3
The target (or, in the absence of a target, the company’s latest disclosed GHG emissions intensity) is
aligned with the goal of limiting global warming to 1.5°C. The intent is for the medium term target to
be aligned with a trajectory to achieve the Paris Agreement goal of limiting global temperature
increase to 1.5°C with low or no overshoot (equivalent to IPCC Special Report on 1.5°C pathway P1
or net zero emissions by 2050).
If a company’s current emissions intensity is aligned with the assessment scenario used (or will be
aligned in the short term), it is assumed that the intensity will continue to be aligned in the medium
term.
Sub-indicator 4.2
The short-term (up to 2025) GHG reduction target covers at least 95% of scope 1 & 2 emissions and
the most relevant scope 3 emissions (where applicable).
Metric a): The company has specified that this target covers at least 95% of total scope 1 and 2
emissions.
Metric b): If the company has set a scope 3 GHG emissions target, it covers the most relevant scope
3 emissions categories for the company’s sector (for applicable sectors), and the company has
published the methodology used to establish any scope 3 target.
Sub-indicator 4.3
The target (or, in the absence of a target, the company’s latest disclosed GHG emissions intensity) is
aligned with the goal of limiting global warming to 1.5°C.
The intent is for the short-term target to be aligned with a trajectory to achieve the Paris Agreement
goal of limiting global temperature increase to 1.5°C with low or no overshoot (equivalent to IPCC
Special Report on 1.5° Celsius pathway P1 or net-zero emissions by 2050).4 If a company’s current
emissions intensity is aligned with the assessment scenario used, it is assumed that the intensity will
continue to be aligned in the short term.
5 Decarbonisation strategy
Sub-indicator 5.1
The company has a decarbonisation strategy to meet its long and medium-term GHG reduction
targets.
Metric a): The company identifies the set of actions it intends to take to achieve its GHG reduction
targets over the targeted timeframe. These measures clearly refer to the main sources of its GHG
emissions, including Scope 3 emissions where applicable.
Metric b): The company quantifies key elements of this strategy with respect to the major sources of
its emissions, including Scope 3 emissions where applicable (e.g. changing technology or product
mix, supply chain measures, R&D spending).
Sub-indicator 5.2
The company’s decarbonisation strategy includes a commitment to ‘green revenues’ from low-carbon
products and services.
Metric (a): The company already generates ‘green revenues’ and discloses their share in overall
sales.
Metric (b): The company has set a target to increase the share of ‘green revenues’ in its overall sales
OR discloses the ‘green revenue’ share that is above sector average.
Metric a): The company explicitly commits to align future capital expenditures with its long-term GHG
reduction target(s).
Metric b): The company explicitly commits to align future capital expenditures with the Paris
Agreement’s objective of limiting global warming to 1.5° Celsius
Sub-indicator 6.2
The company discloses the methodology used to determine the Paris alignment of its future capital
expenditures.
Metric a): The company discloses the methodology it uses to align its future capital expenditure with
its decarbonisation goals, including key assumptions and key performance indicators (KPIs).
Metric b): The methodology quantifies key outcomes, including the share of its future capital
expenditures that are aligned with a 1.5° Celsius scenario, and the year in which capital expenditures
in carbon intensive assets will peak
Metric (a): The company has a specific commitment/position statement to conduct all of its lobbying
in line with the goals of the Paris Agreement.
Metric (b): The company lists its climate-related lobbying activities, e.g. meetings, policy
submissions, etc
Sub-indicator 7.2
The company has Paris Agreement-aligned lobbying expectations for its trade associations, and it
discloses its trade association memberships.
Metric (a): The company has a specific commitment to ensure that the trade associations the
company is a member of lobby in line with the goals of the Paris Agreement.
Metric (b): The company discloses its trade associations memberships.
Sub-indicator 7.3
Disclosure of indirect climate policy engagement positions, activities and governance processes,
including the following.
Metric (a): The company conducts and publishes a review of its trade associations’ climate
positions/alignment with the Paris Agreement.
Metric (b): The company explains what actions it took as a result of this review.
8 Climate Governance
Sub-indicator 8.1
The company’s board has clear oversight of climate change.
Metric (a): The company discloses evidence of board or board committee oversight of the
management of climate change risks via at least one of the following:
• there is a C-suite executive or member of the executive committee that is explicitly responsible for
climate change (not just sustainability performance) and that executive reports to the board or a board
level committee
• the CEO is responsible for climate change AND he/she reports to the board on climate change
issues • there is a committee (not necessarily a board-level committee) responsible for
climate change (not just sustainability performance) and that committee reports to the board or a
board-level committee
Metric (b): The company has named a position at the board level with responsibility for climate
change, via one of the following:
• a board position with explicit responsibility for climate change
• the CEO is identified as responsible for climate change, if he/she sits on the board
Sub-indicator 8.2
The company’s executive remuneration scheme incorporates climate change performance elements.
Metric (a): The company’s CEO and/or at least one other senior executive’s remuneration
arrangements specifically incorporate climate change performance as a KPI determining
performance-linked compensation (reference to ‘ESG’ or ‘sustainability performance’ are insufficient).
Metric (b): The company’s CEO and/or at least one other senior executive’s remuneration
arrangements incorporate progress towards achieving the company’s GHG reduction targets as a KPI
determining performance linked compensation.
Sub-indicator 8.3
The board has sufficient capabilities/competencies to assess and manage climate related risks and
opportunities.
Metric (a): The company has assessed its board competencies with respect to managing climate
risks and discloses the results of the assessment.
Metric (b): The company provides details on the criteria it uses to assess the board competencies
with respect to managing climate risks and/or the measures it is taking to enhance these
competencies.
9 Just transition
Sub-indicator 9.1
The company considers the impacts from transitioning to a lower-carbon business model on its
workers and communities.
10 TCFD Disclosure
Sub-indicator 10.1
The company has committed to implement the recommendations of the Task Force on Climate-
relat_x0002_ed Financial Disclosures (TCFD).
Metric (a): The company explicitly commits to align its disclosures with the TCFD recommendations
OR it is listed as a supporter on the TCFD website.
Metric (b): The company explicitly signposts TCFD-aligned disclosures in its annual reporting or
publishes them in a TCFD report.
Sub-indicator 10.2
The company employs climate-scenario planning to test its strategic and operational resilience.
Metric (a): The company has conducted a climate-related scenario analysis including quantitative
elements and disclosed its results.
Metric (b): The quantitative scenario analysis explicitly includes a 1.5°C scenario, covers the entire
company, discloses key assumptions and variables used, and reports on the key risks and
opportunities identified.
Annual Report BHP Reports
Our approach
BHP response
Human rights Principle 1 Businesses should support and respect the protection of Annual Report 2021 section 1.13.9 Human rights.
internationally proclaimed human rights.
Modern Slavery Statement FY2021.
The responsibility for human rights does not rest with governments or nation
states alone. Human rights issues are important both for individuals and the Information can be found on our website at bhp.com in Human Rights; Our
organizations that they create. As part of their commitment to the Global Code of Conduct; and Our Human Rights Policy Statement.
Compact, businesses have a responsibility to uphold human rights both in
the workplace and more broadly within their sphere of influence. A growing
moral imperative to behave responsibly is linked to the recognition that a
good human rights record can support improved business performance.
Principle 2 Make sure that they are not complicit in human rights abuses. Annual Report 2021 section 1.13.9 Human rights.
There are several types of complicity. Direct complicity occurs when a Modern Slavery Statement FY2021.
company actively assists in human rights violations committed by others.
Beneficial complicity suggests that a company benefits directly from human Information can be found at bhp.com in Human rights; Value chain
rights abuses committed by others. Silent complicity describes a situation sustainability – Responsible sourcing; Our Human Rights Policy Statement;
where a company may not be assisting or encouraging human rights and the Minimum requirements for suppliers.
violations, nor benefiting from the actions of those that commit abuses, but
is viewed as staying silent in the face of human rights abuses.
Labour Principle 3 Businesses should uphold the freedom of association and the We commit to operating in a manner consistent with the UNGC Ten
effective recognition of the right to collective bargaining. Principles including Principle 3 that businesses should uphold the freedom
of association and the effective recognition of the right to collective
Freedom of association implies a respect for the right of employers and bargaining. This commitment is also contained in our publicly available Our
workers to freely and voluntarily establish and join organizations of their own Human Rights Policy Statement.
choice. It further implies that these organizations have the right to carry out
their activities in full freedom and without interference. Collective bargaining Information can be found at bhp.com in People, Human Rights, Our Human
refers to the process or activity leading up to the conclusion of a collective Rights Policy Statement; and the Minimum requirements for suppliers.
agreement. Collective bargaining is a voluntary process used to determine
terms and conditions of work and the regulation of relations between
employers, workers and their organizations.
Principle 4 The elimination of all forms of forced and compulsory labour Modern Slavery Statement FY2021
Forced labour is a fundamental violation of human rights. Most victims Information can be found at bhp.com in Our Code of Conduct; Human
receive little or no earnings, and work for long hours in extremely poor Rights Policy Statement; Our Requirements for Community standard; and
conditions of health and safety. Forced or compulsory labour is any work or the Minimum requirements for suppliers.
service (whether or not wages or compensation are offered) that is extracted
from any person under the menace of any penalty, and for which that person
has not offered himself or herself voluntarily. By right, labour should be
freely given and employees should be free to leave. While companies
operating legally do not normally employ such practices, forced labour can
become associated with enterprises through their use of contractors and
suppliers.
Principle 5 The effective abolition of child labour. Modern Slavery Statement FY2021
Child labour is work that is damaging to a child’s physical, social, mental, Information can be found at bhp.com in Our Code of Conduct; Our Human
psychological and spiritual development because it is work performed at too Rights Policy Statement; Our Requirements for Community standard; and
early an age. Child labour deprives children of their childhood and their the Minimum requirements for suppliers.
dignity. They are deprived of an education and may be separated from their
families. Children who do not complete their basic education are likely to
remain illiterate and never acquire the skills needed to get a job and
contribute to the development of a modern economy. Consequently, child
labour results in under-skilled, unqualified workers and jeopardizes future
improvements of skills in the workforce. The ILO’s Minimum Age Convention
calls for the fixing of a minimum working age (usually about 15) in line with
the end of compulsory schooling. It gives flexibility options (for instance in
developing countries) for work done in the context of training, or for light
work that does not affect schooling.
Principle 6 The elimination of discrimination in respect of employment and We promote a workplace that is free from discrimination based on personal
occupation. attributes unrelated to job performance, such as race, age, ethnicity,
nationality, gender identity, sexual orientation, intersex status, physical or
Discrimination in employment means treating people differently or less mental disability, mental health condition, relationship status, religion,
favourably because of characteristics that are not related to their merit or the political opinion, industry/union affiliations, pregnancy, breastfeeding or
inherent requirements of the job (e.g. race, age, disability, gender). family responsibilities. This is subject to BHP’s requirement to comply with
Discrimination can arise in a variety of work-related activities, including local laws in the jurisdictions in which we operate.
access to employment, to particular occupations, and to training and
vocational guidance. Information can be found at bhp.com in People; Ethics and Business
Conduct; our Human Rights Policy Statement; Our Code of Conduct' and
the Minimum requirements for suppliers.
Environment Principle 7 Businesses should support a precautionary approach to Annual Report 2021 section 1.9 How we manage risk and section 1.16 Risk
environmental challenges. factors.
The precautionary approach is defined as follows: 'Where there are threats Climate Change Report 2020 Our Position on Climate Change and section
of serious or irreversible damage, lack of full scientific certainty shall not be 3.3 Emerging risks.
used as a reason for postponing cost-effective measures to prevent
environmental degradation.' Precaution involves the systematic application Information can be found at bhp.com in Environment; Biodiversity and Land;
of risk assessment (hazard identification, hazard characterization, appraisal Climate Change; Water; Tailing storage facilities and Our Requirements for
of exposure and risk characterization), risk management and risk Environment and Climate Change standard.
communication. When there is reasonable suspicion of harm and decision-
makers need to apply precaution, they have to consider the degree of
uncertainty that appears from scientific evaluation.
Principle 8 Undertake initiatives to promote greater environmental Annual Report 2021 section 1.16 Risk factors - Significant social or
responsibility environmental impacts.
Companies have the responsibility to ensure their activities do not cause Information can be found at bhp.com in Sustainability; Environment;
harm to the environment of their neighbours. Society also expects business Biodiversity and Land; Water; Our Charter; Our Code of Conduct; Our
to be good neighbours. Business gains its legitimacy through meeting the Requirements for Environment and Climate Change standard; and Our
needs of society, and increasingly society is expressing a clear need for Requirements for Community standard.
more environmentally sustainable practices.
Principle 9 Encourage the development and diffusion of environmentally Annual Report 2021 section 1.13.7 Climate change and portfolio resilience
friendly technologies and section 1.16 Risk factors - Low-carbon transition and Adopting
technologies and maintaining digital security.
Environmentally sound technologies are those that protect the environment,
are less polluting, use resources in a more sustainable manner, recycle Information can be found at bhp.com in Climate change; Tailings storage
more of their wastes and products, and handle residual wastes in a more facilities; Water; Waste; our Minimum requirements for suppliers; and Water
acceptable manner than the technologies for which they were substitutes. Stewardship Position Statement.
Environmentally friendly technologies include a variety of cleaner production
processes and pollution prevention technologies, as well as end-of-pipe and
monitoring technologies. They also refer to total systems, including know-
how, procedures, goods and services and equipment, as well as
organizational and managerial procedures.
Anti-corruption Principle 10 Businesses should work against corruption in all its forms, Annual Report 2021 section 1.13.6 Ethics and business conduct and section
including extortion and bribery. 1.16 Risk factors – Ethical misconduct.
Corruption, defined as the abuse of entrusted power for private gain, can Information can be found at bhp.com in Ethics and business conduct and
take many forms that vary in degree from the minor use of influence to Our Code of Conduct.
institutionalized bribery.Corruption poses risk to a company’s reputation and
increases exposure to legal, financial and other risks. OECD defines
extortion as: 'the solicitation of bribes is the act of asking or enticing another
to commit bribery. It becomes extortion when this demand is accompanied
by threats that endanger the personal integrity or the life of the private actors
involved.'
Bribery is defined as 'an offer or receipt of any gift, loan, fee, reward or other
advantage to or from any person as an inducement to do something which is
dishonest, illegal or a breach of trust, in the conduct of the enterprise’s
business.'
Set targets for our operations related to water conservation and waste-water Information can be found at bhp.com in Water and Our Water Stewardship
treatment, framed in a corporate cleaner production and consumption Position Statement.
strategy.
We will continue to further our understanding and look for opportunities to
progress in this area.
Seek to invest in and use new technologies to achieve these goals. Information can be found at bhp.com in Water – Water management can
create opportunities.
Raise awareness of water sustainability within corporate culture. Information can be found at bhp.com in Water and Our Requirements for
Environment and Climate Change standard.
Include water sustainability considerations in business decisionmaking – Information can be found at bhp.com in Water – Water governance and Our
e.g. facility-siting, due diligence, and production processes. Water Stewardship Position Statement.
Supply chain Encourage suppliers to improve their water conservation, quality monitoring, We continue to work on opportunities to engage our suppliers on water
and watershed management waste-water treatment, and recycling practices. management.
Build capacities to analyze and respond to watershed risk. Information can be found at bhp.com in Water – Our approach; Water and
risk at BHP; and Water governance.
Encourage and facilitate suppliers in conducting assessments of water We continue to work on opportunities to engage our suppliers on water
usage and impacts. management.
Share water sustainability practices – established and emerging – with Suppliers have access to our publicly available information as per other
suppliers. external parties.
Encourage major suppliers to report regularly on progress achieved related We continue to work on opportunities to engage our suppliers on water
to goals. management.
Collective action Build closer ties with civil society organizations, especially at the regional Information can be found at bhp.com in Water and Our Water Stewardship
and local levels. Position Statement.
Work with national, regional and local governments and public authorities to Information can be found at bhp.com in Water and Water Stewardship
address water sustainability issues and policies, as well as with relevant Position Statement.
international institutions – e.g. the UNEP Global Programme of Action.
Encourage development and use of new technologies, including efficient Information can be found at bhp.com in Water – Water management can
irrigation methods, new plant varieties, drought resistance, water efficiency create opportunities and Our Water Stewardship Position Statement.
and salt tolerance.
Be actively involved in the UN Global Compact’s Country Networks. We are an active member of the UN Global Compact Network Australia,
refer to https://unglobalcompact.org.au for our Communication of Progress.
Support the work of existing water initiatives involving the private sector – Information can be found at bhp.com in Water – Examples of significant
e.g. the Global Water Challenge; UNICEF’s Water, Environment and water-related risks.
Sanitation Program; IFRC Water and Sanitation Program; the World
Economic Forum Water Initiative – and collaborate with other relevant UN
bodies and intergovernmental organizations – e.g. the World Health
Organization, the Organisation for Economic Co-operation and
Development, and the World Bank Group.
Public policy Contribute inputs and recommendations in the formulation of government Information can be found at bhp.com in Water – Our approach and Our
regulation and in the creation of market mechanisms in ways that drive the Water Stewardship Position Statement.
water sustainability agenda.
Our Water Stewardship Strategy includes a collective action and a
disclosure pillar, both of which focus on water governance and collaborating
with host communities, government, industry peers and other stakeholders.
Exercise 'business statesmanship' by being advocates for water Information can be found at bhp.com in Water – Our approach and Our
sustainability in global and local policy discussions, clearly presenting the Water Stewardship Position Statement.
role and responsibility of the private sector in supporting integrated water
resource management. Our Water Stewardship Strategy includes a collective action and a
disclosure pillar, both of which focus on water governance and collaborating
with host communities, government, industry peers and other stakeholders.
Partner with governments, businesses, civil society and other stakeholders Information can be found at bhp.com in Water.
– for example specialized institutes such as the Stockholm International
Water Institute, UNEP Collaborating Centre on Water and Environment, and We will continue to further our understanding and look for opportunities to
UNESCO’s Institute for Water Education – to advance the body of progress in this area.
knowledge, intelligence and tools.
Join and/or support special policy-oriented bodies and associated We are willing to collaborate with appropriate policy-oriented groups when
frameworks – e.g. UNEP’s Water Policy and Strategy; UNDP’s Water the right opportunities arise.
Governance Programme.
Community engagement Endeavor to understand the water and sanitation challenges in the Information can be found at bhp.com in Water – Examples of significant
communities where we operate and how our businesses impact those water-related risks.
challenges.
Be active members of the local community, and encourage or provide Annual Report 2021 section 1.13.8 Community.
support to local government, groups and initiatives seeking to advance the
water and sanitation agendas. Information can be found at bhp.com in Water – Examples of significant
water-related risks – Water access, sanitation and hygiene risk
Undertake water-resource education and awareness campaigns in Information can be found at bhp.com in Water – Our operational water-
partnership with local stakeholders. related risks.
For example, we have worked with CSIRO to assist with Ningaloo Reef
public data collection, and we actively participate with the Fitzroy Basin
Association and Queensland Reefs groups which both do public education.
Work with public authorities and their agents to support – when appropriate Information can be found at bhp.com on Water – Examples of significant
– the development of adequate water infrastructure, including water and water-related risks – Water access, sanitation and hygiene risk
sanitation delivery systems.
Transparency Include a description of actions and investments undertaken in relation to Annual Report 2021 section 1.13.13 Water and section 4.8.6 Water –
The CEO Water Mandate in our annual Communications on Progress for the Performance data.
UN Global Compact, making reference to relevant performance indicators
such as the water indicators found in the Global Reporting Initiative (GRI) We have disclosed performance indicators aligned with a number of
Guidelines. frameworks. Refer to our GRI Content Index, International Council on Mining
and Metals (ICMM) Position Statement Index and Sustainability Accounting
Standards Board (SASB) Index.
Publish and share our water strategies (including targets and results as well Annual Report 2021 section 1.13.13 Water and section 4.8.6 Water -
as areas for improvement) in relevant corporate reports, using – where Performance data.
appropriate – the water indicators found in the GRI Guidelines.
Refer to GRI and SDGs tab for our detailed alignment with the GRI
Standards.
Be transparent in dealings and conversations with governments and other Our dealings with government and other public authorities follow the ethics
public authorities on water issues. and documentation requirements set out by Our Code Conduct and Our
Requirements for Community standard.
BHP’s Sustainability policies and standards are fully in alignment with the ICMM Mining Principles (2020) and mandatory Position Statements as stated in EY
Independent Assurance Report disclosed in Annual Report 2021 section 1.13.16 Independent limited assurance report.
1.2 Implement policies and practices to prevent bribery, corruption and to Annual Report 2021 section 1.13.6 Ethics and business conduct – Anti-
publicly disclose facilitation payments. corruption.
1.3 Implement policies and standards consistent with the ICMM policy Our Charter, Our Code of Conduct and Our Requirements standards are
framework. consistent with the ICMM Mining Principles Framework.
1.4 Assign accountability for sustainability performance at the Board and/or Annual Report 2021 section 2.1.3 BHP governance structure; 2.1.11
Executive Committee level. Sustainability Committee Report; and section 2.2 Remuneration Report.
1.5 Disclose the value and beneficiaries of financial and in-kind political Annual Report 2021 section 2.3.13 Political donations.
contributions whether directly or through an intermediary.
We maintain a position of impartiality with respect to party politics and do not
make political contributions or expenditure/donations for political purposes
to any political party, politician, elected official or candidate for public office.
We do, however, contribute to the public debate of policy issues that may
affect BHP in the countries in which we operate.
Principle 2 Integrate sustainable 2.1 Integrate sustainable development principles into corporate strategy and Annual Report 2021 section 1.13.14 Land and biodiversity – Closure and
development in corporate decision-making processes relating to investments and in the design, section 1.16 Risk factors – Significant social or environmental impacts.
strategy and decision- operation and closure of facilities.
making processes. Our Charter, Our Code of Conduct and Our Requirements standards are
consistent with the ICMM Mining Principles Framework.
2.2 Support the adoption of responsible health and safety, environmental, Annual Report 2021 section 1.16 Risk factors – Significant social or
human rights and labour policies and practices by joint venture partners, environmental impacts.
suppliers and contractors, based on risk.
Our Modern Slavery Statement FY2021 details our approach to working with
joint venture partners and suppliers in relation to human rights and labour
policies.
Principle 3 Respect human rights 3.1 Support the UN Guiding Principles on Business and Human Rights by We are committed to respecting internationally recognised human rights as
and the interests, developing a policy commitment to respect human rights, undertaking set out in the Universal Declaration on Human Rights and the Voluntary
cultures, customs and human rights due diligence and providing for or cooperating in processes to Principles on Security and Human Rights, and operating in a manner
values of employees and enable the remediation of adverse human rights impacts that members have consistent with the UN Guiding Principles on Business and Human Rights
communities affected by caused or contributed to. and the UNGC Ten Principles; refer to our UNGC Index.
our activities.
Modern Slavery Statement FY2021.
3.2 Avoid the involuntary physical or economic displacement of families and In FY2021, no resettlements or physical or economic displacement of
communities. Where this is not possible apply the mitigation hierarchy and families and communities occurred as a result of our operated assets.
implement actions or remedies that address residual adverse effects to
restore or improve livelihoods and standards of living of displaced people. Information can be found at bhp.com in Community; Human Rights and Our
Requirements for Community standard.
3.3 Implement, based on risk, a human rights and security approach We are committed to respecting internationally recognised human rights as
consistent with the Voluntary Principles on Security and Human Rights. set out in the Voluntary Principles on Security and Human Rights and are
listed as a participating corporate member.
3.4 Respect the rights of workers by: not employing child or forced labour; Modern Slavery Statement FY2021 Policies and governance.
avoiding human trafficking; not assigning hazardous/dangerous work to
those under 18; eliminating harassment and discrimination; respecting Information can be found on our sustainability website at bhp.com in Our
freedom of association and collective bargaining and; providing a Code of Conduct; the Minimum requirements for suppliers; Our Human
mechanism to address workers' grievances. Rights Policy Statement; and Our Requirements for Community standard.
3.5 Remunerate employees with wages that equal or exceed legal Annual Report 2021 section 4.8.1 People – performance data FY2021 –
requirements or represent a competitive wage within that job market Employee remuneration.
(whichever is higher) and assign regular and overtime working hours within
legally required limits. Information can be found at bhp.com in People.
3.6 Respect the rights, interests, aspirations, culture and natural resource Information can be found at bhp.com in Indigenous peoples; Our Code of
based livelihoods of Indigenous Peoples in project design, development and Conduct, Our Requirements for Community standard; Indigenous Peoples
operation; apply the mitigation hierarchy to address adverse impacts and; Policy Statement; Indigenous Peoples Strategy; and Regional Indigenous
deliver sustainable benefits for Indigenous peoples. Peoples Plans.
3.7 Work to obtain the free, prior and informed consent of Indigenous BHP's agreement-making processes must be built on the core principles of
peoples where significant adverse impacts are likely to occur, as a result of free, prior and informed consent in accordance with the ICMM Position
relocation, disturbance of lands and territories or of critical cultural heritage, Statement on Indigenous Peoples and Mining.
and capture the outcomes of engagement and consent processes in
agreements. Information can be found at bhp.com in Indigenous peoples; Indigenous
Peoples Policy Statement; Indigenous Peoples Strategy; and Regional
Indigenous Peoples Plans.
3.8 Implement policies and practices to respect the rights and interests of Annual Report 2021 section 1.12 People and culture; 1.13.4 Safety – Sexual
women and support diversity in the workplace. assault and sexual harassment; and 1.13.6 Ethics and business conduct.
Information can be found at bhp.com in People; Our Charter; and Our Code
of Conduct.
Principle 4 Implement effective risk- 4.1 Assess environmental and social risks and opportunities of new projects Annual Report 2021 section 1.9 How we manage risk; section 1.14 Section
management strategies and of significant changes to existing operations in consultation with 172 statement; section 1.13.8 Community; section 1.13.9 Human rights;
and systems based on interested and affected stakeholders, and publicly disclose assessment section 1.13.13 Water; section 1.16 Risk factors – Significant social or
sound science and which results. environmental impacts and section 2.1.6 Stakeholder engagement.
account
for stakeholder Modern Slavery Statement FY2021 – Due diligence and risk management.
perceptions of risks.
Information can be found at bhp.com in Community; Our Human Rights
Policy Statement; Our Requirements for Community standard; and Our
Requirements for Environment and Climate Change standard.
4.2 Undertake risk-based due diligence on conflict and human rights that Modern Slavery Statement FY2021.
aligns with the OECD Due Diligence Guidance on Conflict-Affected and
High-Risk Areas, when operating in, or sourcing from, a conflict-affected or In FY2021, we started to align our supply chain due diligence with the
high-risk area. OECD Due Diligence Guidance on Conflict-Affected and High Risk Areas.
This work is to be completed by the end of FY2022 with an update on
alignment activities planned for inclusion in our Modern Slavery Statement
FY2022.
4.3 Implement risk-based controls to avoid/prevent, minimise, mitigate Annual Report 2021 section 1.9 How we manage risk and section 1.16 Risk
and/or remedy health, safety and environmental impacts to workers, local factors.
communities, cultural heritage and the natural environment, based upon a
recognised international standard or management system. Information can be found at bhp.com in Sustainability; Our Requirements for
Safety standard; Our Requirements for Environment and Climate Change
standard; and Our Requirements for Community standard.
4.4 Develop, maintain and test emergency response plans. Where risks to Annual Report 2021 section 1.9 How we manage risk and section 1.16 Risk
external stakeholders are significant, this should be in collaboration with factors – Operational events and Inadequate business resilience.
potentially affected stakeholders and consistent with established industry
good practice. Information can be found at bhp.com in Safety; and Our Requirements for
Safety standard.
Principle 5 Pursue continual 5.1 Implement practices aimed at continually improving workplace health Information can be found at bhp.com on Safety; Health; Our Code of
improvement in health and safety, and monitor performance for the elimination of workplace Conduct; Our Requirements for Safety standard; and Our Requirements for
and safety performance fatalities, serious injuries and prevention of occupational diseases, based Health standard.
with the ultimate goal of upon a recognised international standard or management system.
zero harm.
5.2 Provide workers with training in accordance with their responsibilities for Annual Report 2021 section 1.13.4 Safety; section 1.13.5 Health and
health and safety, and implement health surveillance and risk-based section 4.8.2 Health and Safety – performance data FY2021 – Average
monitoring programmes based on occupational exposures. hours of health, safety and emergency response training.
Principle 6 Pursue continual 6.1 Plan and design for closure in consultation with relevant authorities and Annual Report 2021 section 1.13.4 Land and biodiversity – Closure; and
improvement in stakeholders, implement measures to address closure-related section 3.1.6 Notes to the Financial Statements – note 15 Closure and
environmental environmental and social aspects, and make financial provision to enable rehabilitation provisions.
performance issues, such agreed closure and post-closure commitments to be realised.
as water stewardship, Information can be found at bhp.com on Closure; Our Requirements for
energy use and climate Environment and Climate Change standard; and Our Requirements for
change Community standard.
6.2 Implement water stewardship practices that provide for strong and Information can be found at bhp.com in Water; Our Requirements for
transparent water governance, effective and efficient management of water Environment and Climate Change standard; and our Water Stewardship
at operations, and collaboration with stakeholders at a catchment level to Position Statement.
achieve responsible and sustainable water use.
6.3 Design, construct, operate, monitor and decommission tailings disposal/ Annual Report 2021 section 1.13.15 Tailings storage facilities and section
storage facilities using comprehensive, risk-based management and 1.16 Risk factors – Operational events.
governance practices in line with internationally recognised good practice, to
minimise the risk of catastrophic failure Information can be found at bhp.com in Tailings storage facilities.
6.4 Apply the mitigation hierarchy to prevent pollution, manage releases and Annual Report 2021 section 1.13.14 Land and biodiversity and section 1.16
waste, and address potential impacts on human health and the environment. Risk factors – Significant social or environmental impacts.
We are working to better align our reporting with the ICMM requirements in
the coming years.
6.5 Implement measures to improve energy efficiency and contribute to a Annual Report 2021 section 1.13.7 Climate change and portfolio resilience.
low-carbon future, and report the outcomes based on internationally
recognised Information can be found at bhp.com in Climate change.
protocols for measuring CO 2 equivalent (GHG) emissions.
Principle 7 Contribute to the 7.1 Neither explore nor develop new mines in World Heritage sites, respect Annual Report 2021 section 1.13.14 Land and biodiversity and section 4.8.4
conservation of legally designated protected areas, and design and operate any new Environment – performance data.
biodiversity and operations or changes to existing operations to be compatible with the value
integrated approaches to for which such areas were designated. Information can be found at bhp.com on Environment; Biodiversity and land;
land use planning. and Our Requirements for Environment and Climate Change standard.
7.2 Assess and address risks and impacts to biodiversity and ecosystem Information can be found at bhp.com in Biodiversity and land and Our
services by implementing the mitigation hierarchy, with the ambition of Requirements for Environment and Climate Change standard.
achieving no net loss of biodiversity
Principle 8 Facilitate and support the 8.1 In project design, operation and decommissioning, implement cost- As a producer of raw materials, we do not use a significant amount of input
knowledge-base and effective measures for the recovery, reuse or recycling of energy, natural materials to produce or package our products.
systems for responsible resources, and materials.
design, use, reuse, Information can be found at bhp.com in Value chain sustainability; Climate
recycling and disposal of change; Water; and Closure.
products containing
metals and minerals.
8.2 Assess the hazards of the products of mining according to UN Globally Information can be found at bhp.com in Value chain sustainability – Product
Harmonised System of Hazard Classification and Labelling or equivalent stewardship; Our Requirements for Safety standard; and Our Requirements
relevant regulatory systems and communicate through safety data sheets for Health standard.
and labelling as appropriate.
Principle 9 Pursue continual 9.1 Implement inclusive approaches with local communities to identify their Annual Report 2021 section 1.13.8 Community and section 1.14 Section
improvement in social development priorities and support activities that contribute to their lasting 172 statement.
performance and social and economic wellbeing, in partnership with government, civil society
contribute to the social, and development agencies, as appropriate. Information can be found at bhp.com in Community; Our Code of Conduct
economic and and Our Requirements for Community standard.
institutional development
of host countries and
communities. 9.2 Enable access by local enterprises to procurement and contracting Information can be found at bhp.com in Community; Supporting local
opportunities across the project life-cycle, both directly and by encouraging economic growth; and Value chain sustainability.
larger contractors and suppliers, and also by supporting initiatives to
enhance economic opportunities for local communities.
9.3 Conduct stakeholder engagement based upon an analysis of the local Annual Report 2021 section 1.13.8 Community and section 1.14 Section
context and provide local stakeholders with access to effective mechanisms 172 statement.
for seeking resolution of grievances related to the company and its activities.
Information can be found at bhp.com in Community and Our Requirements
for Community standard.
9.4 Collaborate with government, where appropriate, to support In FY2021, we had no reported artisanal and small-scale mining on or
improvements in environmental and social practices of local Artisanal and adjacent to our operated assets.
Small-scale Mining (ASM).
Principle 10 Proactively engage key 10.1 Identify and engage with key corporate-level external stakeholders on Annual Report 2021 section 1.14 Section 172 statement and section 2.1.6
stakeholders on sustainable development issues in an open and transparent manner. Stakeholder engagement.
sustainable development
challenges and Information can be found at bhp.com in Sustainability – Our stakeholders.
opportunities in an open
and transparent manner.
Effectively report and 10.2 Publicly support the implementation of the Extractive Industries Economic Contribution Report 2021 - Our approach to transparency; The
independently verify Transparency Initiative (EITI) and compile information on all material future of global tax transparency; Our payments to governments – Payments
progress and payments, at the appropriate levels of government, by country and by made by country and level of government; and Payments made on a
performance. project. project-by-project basis.
10.3 Report annually on economic, social and environmental performance at Our Annual Report content is aligned with the Global Reporting Initiative
the corporate level using the GRI Sustainability Reporting Standards. (GRI) principles.
Refer to GRI and SDGs tab for our detailed alignment with the GRI
Standards.
10.4 Each year, conduct independent assurance of sustainability Annual Report 2021 section 1.13.16 Independent limited assurance report.
performance following the ICMM guidance on assuring and verifying
membership requirements.
2. Not explore or mine in World Heritage properties. All possible steps will Information can be found at bhp.com in Environment; Biodiversity and land;
be taken to ensure that existing operations in World Heritage properties as and Our Requirements for Environment and Climate Change standard.
well as existing and future operations adjacent to World Heritage properties
are not incompatible with the outstanding universal value for which these
properties are listed and do not put the integrity of these properties at risk.
3. Ensure that potential adverse impacts on biodiversity from new operations Information can be found at bhp.com in Environment; Biodiversity and land;
or changes to existing operations are adequately addressed throughout the and Our Requirements for Environment and Climate Change standard.
project cycle and that the mitigation hierarchy is applied.
4. Through ICMM, to work with IUCN, governments, intergovernmental Achieved collectively through ICMM.
organisations, development and conservation NGOs and others to develop
transparent, inclusive, informed and equitable decision-making processes
and assessment tools that better integrate biodiversity conservation,
protected areas and mining into land-use planning and management
strategies, including ‘no-go’ areas
5. Through ICMM, work with IUCN and others in developing Achieved collectively through ICMM.
best practice guidance to enhance industry’s contribution to biodiversity
conservation.
2. Mining and Indigenous peoples 1. Engage with potentially impacted indigenous peoples with the objectives Annual Report 2021 section 1.13.10 Indigenous peoples.
(May 2013) of: (i) ensuring that the development of mining and metals projects fosters
respect for the rights, interests, aspirations, culture and natural resource- BHP's engagement and agreement-making processes must be built on the
based livelihoods of Indigenous peoples; (ii) designing projects to avoid core principles of Free, Prior and Informed Consent in accordance with the
adverse impacts and minimising, managing or compensating for ICMM Position Statement on Indigenous Peoples and Mining.
unavoidable residual impacts; and (iii) ensuring sustainable benefits and
opportunities for Indigenous peoples through the development of mining and Information can be found at bhp.com in Indigenous peoples; Our
metals projects. Requirements for Community standard; our Indigenous Peoples Policy
Statement; and our Indigenous Peoples Strategy.
2. Understand and respect the rights, interests and perspectives of Annual Report 2021 section 1.13.10 Indigenous peoples.
Indigenous peoples regarding a project and its potential impacts. Social and
environmental impact assessments or other social baseline analyses will be BHP's engagement and agreement-making processes must be built on the
undertaken to identify those who may be impacted by a project as well as core principles of Free, Prior and Informed Consent in accordance with the
the nature and extent of potential impacts on indigenous peoples and any ICMM Position Statement on Indigenous Peoples and Mining.
other potentially impacted communities. The conduct of such studies should
be participatory and inclusive to help build broad cross-cultural Information can be found at bhp.com in Indigenous peoples; Our
understanding between companies and communities and in support of the Requirements for Community standard; our Indigenous Peoples Policy
objectives described in commitment 1 above. Statement; and our Indigenous Peoples Strategy.
3. Agree on appropriate engagement and consultation processes with Annual Report 2021 section 1.13.10 Indigenous peoples.
potentially impacted indigenous peoples and relevant government
authorities as early as possible during project planning, to ensure the BHP's agreement-making processes must be built on the core principles of
meaningful participation of Indigenous peoples in decision-making. Where free, prior and informed consent.
required, support should be provided to build community capacity for good
faith negotiation on an equitable basis. These processes should strive to be Information can be found at bhp.com in Indigenous peoples; Our
consistent with Indigenous peoples’ decision-making processes and reflect Requirements for Community standard; our Indigenous Peoples Policy
internationally accepted human rights, and be commensurate with the scale Statement; and our Indigenous Peoples Strategy.
of the potential impacts and vulnerability of impacted communities. The
processes should embody the attributes of good faith negotiation and be
documented in a plan that identifies representatives of potentially impacted
indigenous communities and government, agreed consultation processes
and protocols, reciprocal responsibilities of parties to the engagement
process and agreed avenues of recourse in the event of disagreements or
impasses occurring (see commitment 6 below). The plan should also define
what would constitute consent from indigenous communities that may be
significantly impacted. Agreed engagement and consultation processes
should be applied in collaboration with potentially impacted indigenous
communities, in a manner that ensures their meaningful participation in
decision-making.
4. Work to obtain the consent of Indigenous communities for new projects Annual Report 2021 section 1.13.10 Indigenous peoples.
(and changes to existing projects) that are located on lands traditionally
owned by or under customary use of Indigenous peoples and are likely to BHP's agreement-making processes must be built on the core principles of
have significant adverse impacts on Indigenous peoples, including where free, prior and informed consent.
relocation of Indigenous peoples and/or significant adverse impacts on
critical cultural heritage are likely to occur. Consent processes should focus Information can be found at bhp.com in Indigenous peoples; Our
on reaching agreement on the basis for which a project (or changes to Requirements for Community standard; our Indigenous Peoples Policy
existing projects) should proceed. These processes should neither confer Statement; and our Indigenous Peoples Strategy.
veto rights to individuals or sub-groups nor require unanimous support from
potentially impacted Indigenous peoples (unless legally mandated). Consent
processes should not require companies to agree to aspects not under their
control.
5. Collaborate with the responsible authorities to achieve outcomes BHP's agreement-making processes must be built on the core principles of
consistent with the commitments in this position statement, in situations free, prior and informed consent.
where government is responsible for managing Indigenous peoples’
interests in a way that limits company involvement. Where a host Information can be found at bhp.com in Our Requirements for Community
government requires members to follow processes that have been designed standard; our Indigenous Peoples Policy Statement; and our Indigenous
to achieve the outcomes sought through this position statement, ICMM Peoples Strategy.
members will not be expected to establish parallel processes.
6. Address the likelihood that differences of opinion will arise, which in some BHP's agreement-making processes must be built on the core principles of
cases may lead to setbacks or delays in reaching a negotiated agreement in free, prior and informed consent.
good faith. Companies and potentially impacted Indigenous communities
should agree on reasonable tests or avenues of recourse at the outset, to be Information can be found at bhp.com in Community; Our Requirements for
applied where differences of opinion arise. This might include seeking Community standard; our Indigenous Peoples Policy Statement; and our
mediation or advice from mutually acceptable parties. Where commitment 4 Indigenous Peoples Strategy.
applies and consent is not forthcoming despite the best efforts of all parties,
in balancing the rights and interests of Indigenous peoples with the wider
population, government might determine that a project should proceed and
specify the conditions that should apply. In such circumstances, ICMM
members will determine whether they ought to remain involved with a
project.
3. Climate change 1. Implement governance, engagement and disclosure processes to ensure Annual Report 2021 section 1.9 How we manage risk; section 1.13.7
(December 2019) climate change risks and opportunities are considered in business decision- Climate change and portfolio resilience; and section 1.16 Risk factors –
making. Low-carbon transition and Inadequate business resilience.
2. Advance operational level adaptation and mitigation solutions, taking in Annual Report 2021 section 1.13.7 Climate change and portfolio resilience –
consideration local opportunities and challenges. Addressing climate risks and Investing in decarbonisation.
3. Engage with host communities on our shared climate change risks and Annual Report 2021 section 1.13.7 Climate change and portfolio resilience –
opportunities and help host communities understand how they can adapt to Just transition.
the physical impact of climate change.
Climate Change Report 2020 section 2.5 Advocacy strategy and section 3.2
Climate-related risks.
4. Disclose Scope 1 and 2 greenhouse gas emissions on an annual basis Annual Report 2021 section 1.13.7 Climate change and portfolio resilience –
and set emissions reduction targets at a corporate level. Operational greenhouse gas emissions and energy consumption and
section 4.8.5 Climate change – performance data.
5. Engage with governments, peers, and others to support the development Annual Report 2021 section 1.13.7 Climate change and portfolio resilience –
of effective climate change policies. Engagement and disclosure.
6. Support efforts to mitigate greenhouse gas emissions, in collaboration Annual Report 2021 section 1.13.7 Climate change and portfolio resilience –
with our peers by promoting innovation, developing and deploying low Value chain emissions; Investing in decarbonisation; and Natural climate
emissions technology, and implementing projects that improve energy solutions.
efficiency and incorporate renewable energy supply in our energy mix.
Information can be found at bhp.com in Climate change – Operational
decarbonisation and value chain emissions; and Value chain sustainability.
7. Support carbon pricing and other market mechanisms, that drive the Annual Report 2021 section 1.13.7 Climate change and portfolio resilience –
reduction of greenhouse gas emissions, deliver the least cost pathway to Investing in decarbonisation; and Carbon offsets.
emissions reductions and support predictable long-term pricing that
incentivise innovation. Climate Transition Action Plan 2021.
8. Support the global transition to a low carbon economy by continuing to Achieved collectively through ICMM.
contribute to the sustainable production of commodities essential to the
energy and mobility transition, working with our partners and key suppliers Annual Report 2021 section 1.13.7 Climate Change and portfolio resilience
along our value chains. – Value chain emissions.
9. Engage with external parties to determine a preferred approach to Achieved collectively through ICMM.
reporting Scope 3 emissions.
Annual Report 2021 section 1.13.7 Climate change and portfolio resilience –
Value chain emissions.
4. Mercury Risk Management 1. Not open any mines designed to produce mercury as the primary product. We do not extract or produce material amounts of mercury at any of our
(February 2009) BHP-operated assets.
2. Apply materials stewardship to promote the responsible management of We do not extract or produce material amounts of mercury at any of our
the mercury produced from ICMM members’ operations including that which BHP-operated assets.
naturally occurs in our products.
3. Identify and quantify point source mercury air emissions from our We do not extract or produce material amounts of mercury at any of our
operations and minimise them through the application of cost-effective best BHP-operated assets.
available technology, using a risk-based approach.
4. Report significant point source mercury emissions from our operations Annual Report 2021 section 4.8.4 Environment - performance data.
consistent with our commitment to report in accordance with the GRI
framework. We do not extract or produce material amounts of mercury at any of our
BHP-operated assets.
5. To participate in government-led partnerships to transfer low- to no- We do not have operated assets in close proximity to Artisanal and Small-
mercury technologies into the ASM sector in locations where ICMM member scale Mining (ASM) activity.
companies have operations in close proximity to ASM activity such that
livelihoods are enhanced through increased productivity and reduced
impacts to human health.
6. Through ICMM, to encourage the development of sound science on the Achieved collectively through ICMM.
fate and transport of mercury as well as natural sources of mercury in the
environment.
7. To work on an integrated multi-stakeholder strategy through ICMM to Achieved collectively through ICMM.
reduce and eventually cease supplying mercury into the global market once
policy and economically viable long-term technological solutions for the
retirement of mercury are developed.
5. Transparency of Mineral Revenues 1. Include a clear endorsement of efforts at the international level to Our profile is available on the EITI website at eiti.org/supporter.
(July 2009) enhance the transparency of mineral revenues, including EITI, on their
website and/or in their sustainable development reports. To submit a
completed international level self-assessment form to the EITI Secretariat
for posting on the EITI website.
2. Engage constructively in countries that are committed to implementing BHP is represented on the global EITI Board and is a member of the
EITI, consistent with the multi-stakeholder process adopted in each country. Australia EITI Multi Stakeholder Group.
3. Compile information on all material payments by country and by project at Economic Contribution Report 2021 Our payments to governments;
the appropriate levels of government. In the case of EITI implementing Payments made by country and level of government; Payments made on a
countries, this should be provided to the body assigned responsibility for project-by-project basis; and Independent auditor’s report to the Directors of
reconciling details of payments by companies and revenue data provided by BHP Group Plc and BHP Group Ltd.
government according to the agreed national template. Material payments
by companies are expected to have been independently audited, applying
international standard accounting practices.
4. Support the public disclosure (ie publication) of material payments by Economic Contribution Report 2021 Our approach to transparency; Our
country and by project. For EITI, this should be in line with the payments to governments – Payments made by country and level of
implementation approach adopted incountry. government; and Payments made on a project-by-project basis.
5. Engage constructively in appropriate forums to improve the transparency Achieved collectively through ICMM.
of mineral revenues – including their management, distribution or spending
– or of contractual provisions on a level-playing field basis, either BHP is represented on the global EITI Board and a member of the ICMM
individually or collectively through ICMM. Mineral Resources Working Group.
6. Mining: Partnerships for Development 1. Either individually or collectively through ICMM publicly express their Achieved collectively through ICMM.
(January 2010) willingness to work in partnership with development agencies, host
governments, civil society Information can be found at bhp.com in Community; Value chain
organisations, and local communities to enhance mining and metals’ sustainability; Our Requirements for Community standard; our Indigenous
contribution to social and economic development. Peoples Policy Statement; and our Indigenous Peoples Strategy.
2. For major investments in regions where socio-economic outcomes are Annual Report 2021 section 1.13.8 Community and 1.13.11 Social
highly uncertain or where there are significant opportunities to enhance such investment .
outcomes: (i) develop an understanding of the social and economic
contribution of the project, including an analysis of the barriers that might Information can be found at bhp.com on Community; Social investment;
weaken this contribution; and (ii) actively support or help develop Economic contribution; Our Requirements for Community standard; our
partnerships or collaborations with other stakeholder groups with the aim of Indigenous Peoples Policy Statement; and our Indigenous Peoples
ensuring the project’s potential socio-economic contribution is realised. Strategy.
3. Review the relative success of their development partnerships and Information can be found at bhp.com on Community; Social value; Social
collaborations at suitable intervals and adapt these over time to ensure they investment; Economic contribution; Our Requirements for Community
continue to contribute to the overall goal of enhancing the social and standard; and our Indigenous Peoples Strategy.
economic contribution of mining.
4. Provide an overview of their work on such partnerships, as appropriate, in Economic Contribution Report 2021.
their annual external reporting and communications.
Information can be found at bhp.com in Community; Social value; and on
our recent case studies about our progress in these areas.
7. Tailings Governance 1. Accountability, responsibility and competency: Accountabilities, Annual Report 2021 section 1.13.15 Tailings storage facilities.
(December 2016) responsibilities and associated competencies are defined to support
appropriate identification and management of TSF risks. Information can be found at bhp.com in Tailings Storage Facilities –
• Accountability for the overall governance of tailings facilities resides with Governance.
the owners and operators.
• Organisational structures and roles are established to support
management of TSF risks and governance accountability.
• Communication processes are maintained to ensure that personnel
understand their responsibilities. Training is conducted to maintain currency
of knowledge and skills.
• Role competency and experience requirements are defined for critical
roles within the established organisational structures.
2. Planning and resourcing: The financial and human resources needed to Information can be found at bhp.com in Tailings Storage Facilities; Tailings
support continued TSF management and governance are maintained Storage Facility Policy Statement; and Our Requirements for Tailings
throughout a facility’s life cycle. Storage Facilities.
• TSF operating and capital costs, and human resource needs, are included
in relevant business planning processes.
• Resources necessary to implement and maintain activities within this
governance framework are provided.
3. Risk management: Risk management associated with TSFs includes risk Annual Report 2021 section 1.9 How we manage risk; section 1.13.15
identifi cation, an appropriate control regime and the verification of control Tailings storage facilities and section 1.16 Risk factors - Operational events.
performance.
• Risk controls and their associated verification activities are identified based Information can be found at bhp.com in Tailings Storage Facilities - Our
on failure modes and their associated consequences, and evaluated on a journey to date and Tailings storage facilities risk management; and Our
TSF-specific basis considering all phases of the TSF life cycle. Requirements for Tailings Storage Facilities.
• Suitably qualified and experienced experts are involved in TSF risk
identification and analysis, as well as in the development and review of
effectiveness of the associated controls.
• Performance criteria are established for risk controls and their associated
monitoring, internal reporting and verification activities.
4. Change management: Risks associated with potential changes are Information can be found at bhp.com on Tailings Storage Facilities – Key
assessed, controlled and communicated to avoid inadvertently factors that may influence tailings dam integrity and Operation, surveillance
compromising TSF integrity. and maintenance.
• Processes are applied that involve the identification, assessment, control
and communication of risks to TSF integrity arising from both internally
driven and
externally driven change, to avoid introducing uncertain, unacceptable, and/
or unmanaged risks.
• Documents and records that support TSF planning, design, construction,
operation, surveillance, management and governance are maintained and
kept suitably current and accessible
5. Emergency preparedness & response: Processes are in place to Information can be found at bhp.com in Tailings Storage Facilities –
recognize and respond to impending failure of TSFs and mitigate the Emergency preparedness and response and Our Requirements for Tailings
potential impacts arising from a Storage Facilities.
potentially catastrophic failure.
• Action thresholds and their corresponding response to early warning signs
of potential catastrophic failure are established.
• Emergency preparedness and response plans are established
commensurate with potential failure consequences. Such plans specify
roles, responsibilities and communication procedures.
• Emergency preparedness and response plans are periodically tested.
6. Review & assurance: Internal and external review and assurance Information can be found at bhp.com in Tailings Storage Facilities – Tailings
processes are in place so that controls for TSF risks can be storage facilities risk management and Dam safety reviews.
comprehensively assessed and continually improved.
• Internal performance monitoring and inspections and internal and external
reviews and assurance are conducted commensurate with consequences of
TSF failure to evaluate and to continually improve the effectiveness of risk
controls.
• Outcomes and actions arising from TSF review and assurance processes
are recorded, reviewed, closed-out and communicated.
• Performance of risk management programs for TSFs is reported to
executive management on a regular basis.
8. Water Stewardship 1. Apply strong and transparent corporate water governance: Annual Report 2021 section 4.8.6 Water – performance data.
(January 2017) • Publicly disclose the company’s approach to water stewardship.
• Allocate clear responsibilities and accountabilities for water – from board Information can be found at bhp.com in Water; Water Stewardship Position
and corporate to site levels. Statement; and Our Requirements for Environment and Climate Change
• Integrate water considerations in business planning – including company standard.
strategy, life of asset and investment planning.
• Publicly report company water performance, material risks, opportunities
and management response using consistent industry metrics and
recognised approaches.
2. Manage water at operations effectively: Annual Report 2021 section 4.8.6 Water – performance data.
• Maintain a water balance and understand how it relates to the cumulative
impact of other users. We are committed to ensuring all sanitation and hygiene facilities are
• Set context-relevant water targets or objectives for sites with material appropriate for our workforce, including with respect to gender.
water-related risks.
• Proactively manage water quantity and quality to reduce potential socio- Information can be found at bhp.com in Water and Our Requirements for
environmental impacts and realise opportunities. Environment and Climate Change standard.
• Ensure all employees have access to clean drinking water, gender-
appropriate sanitation facilities and hygiene at their workplace.
3. Collaborate to achieve responsible and sustainable water use: Information can be found at bhp.com in Water; Our Water Stewardship
• Identify, evaluate, and respond to catchment-level water-related risks and Position Statement; and Our Requirements for Environment and Climate
opportunities. Change standard.
• Identify and engage proactively and inclusively with stakeholders that may
influence or be affected by a site’s water use and discharge.
• Actively engage on external water governance issues, with governments,
local authorities and other stakeholders, to support predictable, consistent
and effective regulation that underpins integrated water resource
management.
• Support water stewardship initiatives that promote better water use,
effective catchment management and contribute to improved water security
and sanitation.
• Actively engage on external water governance issues, with governments,
local authorities and other stakeholders, to support predictable, consistent
and effective regulation that underpins integrated water resource
management.
• Support water stewardship initiatives that promote better water use,
effective catchment management and contribute to improved water security
and sanitation.
Tailings storage facilities disclosure: response to the Church of England Pensions
For the year-ended 30 June 2021
These footnotes explain how the questions have been interpreted for the purposes
of BHP-operated TSFs. This document contains the response of BHP for operated
assets. Non-operated joint ventures (NOJVs) have their own operating and
management standards, and do not apply BHP tailings management standards.
For more information regarding BHP’s NOJVs, visit bhp.com and the relevant
operator's website.
In providing the information enclosed, the number of TSFs is based on the Latitude, longitude
definition agreed to by the ICMM Tailings Advisory Group at the original time of
submission and expanded to align with the TSF definition established in the Global
Industry Standard for Tailings Management (GISTM). An increase of five TSFs is
reported since our Church of England submission in 2019 due to the updated BHP
definition of TSF to align with the GISTM. We keep this definition under review.
Island Copper TSF originally disclosed in our Church of England submission in
2019 for the purposes of transparency has been removed as it is not a dam nor
considered a TSF under the GISTM definition of a TSF. Tailings at Island Copper
were deposited in the ocean under an approved licence and environmental impact
assessment. This historic practice ceased in the 1990s. We have since committed
not to dispose of mine waste rock or tailings in river or marine environments. We
continue to conduct environmental effects monitoring.
ted assets.
elevant operator's website for more information.
Annual Report BHP Reports
General: Facilities listed as “owned and operated” are owned and operated by an entity in the BHP N/A N/A Where a facility is in
Group as that term is used in the BHP Annual Report 2021. References to the term “joint venture” in transition from
this document are is used for convenience to collectively describe assets that are not wholly owned operation to closure
by BHP and are not intended to characterise the legal relationship between the owners of the asset. BHP has applied the
Other joint ventures: BHP Mitsubishi Alliance (BMA) is operated by BM Alliance Coal Operations interpretation that it
Pty Ltd. BHP provides key services to BMA including labour services, logistics and supply services meets this design
and administrative support services. BMA also applies BHP risk management, safety and criteria when it is
environment policies and standards across its operations. BHP Mitsui Coal (BMC) is an incorporated following a defined
joint venture that is held 80% by BHP and 20% by Mitsui, although it is classified as a subsidiary rehabilitation plan.
under financial reporting rules and is therefore classified as 'owned and operated' for the purposes of
this document.
NOJVs: NOJVs are assets (including facilities of that asset) that are not wholly owned by BHP and
for which BHP is not the operator. These are not included in this document. For more information
regarding BHP’s NOJVs, visit bhp.com and the relevant operator's website.
Hybrid is used to describe a raising N/A These are These are based on N/A
method where the wall comprises a estimated through expected production
combination of construction various rates and may differ
methods within the context of the techniques of dependent on future
International Council on Mining and differing precision operational decisions.
Metals (ICMM) guidance. and therefore are
approximate
values only.
N/A – in-pit or natural depression NA 3.0 11.9 Not yet completed - new facility
In responding to question 12, The consequence BHP primarily adopts industry recognised classification systems, such as CDA or
BHP has applied interpretation category or classification ANCOLD, for dam hazard categorisation.
guidance provided by the of the TSF is based on
Church of England Pensions the most recent
Board to define 'relevant' classification of the TSF
engineering records for BHP- by the Engineer of
operated facilities as sufficient Record. This is subject
information to make a to change as ongoing
statement on the current reviews are conducted.
stability of the TSF.
Yes N/A NA
This refers to where an independent engineer has concluded The response has been provided in N/A
that there is: relation to the operator being BHP.
• For active TSFs, a deficiency sufficiently significant to trigger
an imminent, catastrophic failure for the current life/stage. For a
previous life/stage, a deficiency sufficiently significant to trigger
an imminent, catastrophic failure that was not addressed (as
vetted by an independent review).
• For inactive/closed TSFs, a deficiency sufficiently significant
to trigger an imminent, catastrophic failure that reflects the
current state of the TSF (versus a previous issue that has been
addressed through confirmed changed conditions via the
closure process).
No Yes to both No
No Yes to both No
N/A
13: The TSF does not have embankments. The formal assessment for GISTM to be
undertaken during CY2021.
16. Internal engineering support provided but no on-site oversight since this is a closed
facility.
7. Tailings contained within Miami Ave TSF were removed in FY2021 and placed within Cave
Sink, an adjacent abandoned mining pit located within the footprint of the sitewide water
management system. Work is ongoing to document that there are no credible failure modes in
the new location in Cave Sink.
7. Approximately 37 Million short tons (17.5 Mm3) of the tailings in Miami No. 2 were
reprocessed and relcated into Deep Pit, an abandoned mine pit located in the vicinity of the
Miami and Copper Cities sites.
9/10. An estimated 0.4 Mm3 of tailings remains in Miami No. 2 and 17.5 Mm3 are located in
Deep Pit.
13. Assumed low due to deemed negligible consequence of loss of containment. A planned
geotechnical program will verify hazard classification.
14. Formal assessment will follow Arizona Department of Environmental Quality guidelines,
GISTM and CDA.
17. Cone penetration testing will be conducted to assess the liquefaction potential of the
remaining tailings. Tailings runout analysis completed in FY2021 are being used to verify
hazard classification and inform overall closure strategy for residual tailings located within
Miami No.2 footprint.
11. Small historic tailings deposition area previously considered a landform. ITRB is planned
to review in FY2022, including results of the hazard classification.
13. Assumed low due to deemed negligible consequence of loss of containment. The results
of a geotechnical program are currently being used to verify hazard classification.
14. Formal assessment will follow Arizona Department of Environmental Quality guidelines,
GISTM and CDA and will be reviewed with the ITRB in 2022.
10. This facility is currently inactive but is planned for further deposition within the Five Year
Plan.
12. There are no construction records for this historic and inactive facility. There is a
comprehensive closure plan for the facility ready for execution. There is no operation records
of the facility.
12. There are no construction records for this historic and inactive facility. There is a
comprehensive closure plan for the facility ready for execution. There is no operation records
of the facility.
13. Assessments conducted have shown that there is no credible failure modes.
12. There are no construction records for this historic and inactive facility. There is a
comprehensive closure plan for the facility ready for execution. There is no operation records
of the facility.
13. Assessments conducted have shown that there is no credible failure modes.
3. Refer to footnotes.
12. This facility is a closed TSF with no population at risk, and is Low consequence. The
GISTM mandates a comprehensive knowledge base, and our approach is now based on
more conservative assumptions. A remediation plan is in place to address the information
gaps which includes comprehensive geotechnical investigations, stability reviews, and surface
water assessments.
13. Assumed low due to deemed negligible consequence of loss of containment. A planned
dam safety review will review the hazard category assessment, and will assess geotechnical
risks given the current state of the facility.
14. Formal assessment will follow Queensland Department of Environment and Heritage
Protection and/or ANCOLD guidelines.
17. An informal assessment has been completed which has indicated limited risk of loss of
containment and low risk to downstream areas.
3. Refer to footnotes.
12. This facility is a closed TSF with no population at risk, and is Low consequence. The
GISTM mandates a comprehensive knowledge base, and our approach is now based on
more conservative assumptions. A remediation plan is in place.
3. Refer to footnotes.
12. This facility is a closed TSF with no population at risk, and is Low consequence. The
GISTM mandates a comprehensive knowledge base, and our approach is now based on
more conservative assumptions. A remediation plan is in place.
3. Refer to footnotes.
3. Refer to footnotes.
3. Refer to footnotes.
12. This facility is a closed TSF with no population at risk, and is Low consequence. The
GISTM mandates a comprehensive knowledge base, and our approach is now based on
more conservative assumptions. A remediation plan is in place
3. Refer to footnotes.
3. Refer to footnotes.
12. This facility is a closed TSF with no population at risk, and is Low consequence. The
GISTM mandates a comprehensive knowledge base, and our approach is now based on
more conservative assumptions. A remediation plan is in place.
3. Refer to footnotes.
3. Refer to footnotes.
3. Refer to footnotes.
3. Refer to footnotes.
3. Refer to footnotes.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
3. Refer to footnotes.
12. Incomplete records have been addressed through a series of comprehensive site
investigation and assessment programs.
13. Assumed low due to tailings removed and deemed negligible consequence of loss of
containment. A hazard classification will be determined as a result of the closure review
process.
14. Formal assessment will follow ANCOLD guidelines.
People – performance data(1)(2)
Gender %
(1) Proportional data in the People section are based on the average of the number of employees at the last day of each calendar month for a 10-mon
for the year with the exception of the average number (and %) of employees in the data tables by region which shows the weighted average number o
There is no significant seasonal variation in employment numbers.
(2) Contractor data is collected from internal surveys and the organisation systems and averages for a 10-month period.
(3) Absenteeism comprises sick leave, hospitalisation leave, injury on duty, short-term disability, unauthorised absence, industrial action, union absen
and workers’ compensation.
(4) The salary increase ratio represents the percentage increase in annual total compensation for the highest-paid individual to the median percentage
for all employees (excluding the highest-paid individual) in the same location for each significant region. Salary increases do not include promotional in
the remuneration data.
(5) Individuals classified as entry level are those in operations and general support roles and have been with the company for less than one year. Mini
locations with the exception of Singapore and Switzerland as they do not have a minimum wage mandated by their respective governments and there
calculation. Contractors are excluded from the remuneration data.
(6) The number of training hours has been annualised using data from a 10-month period, July to April, to determine a total for the year. Percentages
number of employees at the last day of each calendar month for the same 10-month period. This data includes the training provided to apprentices an
Academy in Australia during FY2021, which totals more than 500,000 hours (on average over 1,100 hours per employee).
(7) The calculation includes primary parental leave only and does not include secondary parental leave. Secondary parental leave is a two-week paren
caregiver. All BHP employees are eligible for parental leave. Retention rate for employees that returned from parental leave in FY2020 calculated as a
(8) Data reflects the number of employees as at 30 June 2021 that have at least one performance review record in our core HR system for performanc
records for some employees at operations in Chile and Australia are not recorded in the core HR system and not captured in this data.
(9) Data is at 30 April 2021. No major fluctuation in workforce throughout the year.
Annual Report
Our Requirements
Region %
4:1 4:1
By gender Parental leave Due to return Return to work Returned and Retained
y of each calendar month for a 10-month period which calculates the average
shows the weighted average number of employees based on BHP ownership.
h period.
absence, industrial action, union absence, leave without pay, unpaid absence
e company for less than one year. Minimum wage is determined for all
heir respective governments and therefore have been excluded from the
mine a total for the year. Percentages are calculated using the average of the
the training provided to apprentices and trainees as part of the FutureFit
employee).
dary parental leave is a two-week parental leave benefit for the non-primary
arental leave in FY2020 calculated as at least 12 months from date of return.
Region
Region
Community complaints
Blasting 9
Cultural heritage 1
Conduct/behaviour 7
Dust 6
Infrastructure damage 4
Lighting 14
Noise 20
Odour 22
Other 11
Road/rail 4
Spill or contamination 1
Water 4
Total 103
Operations located
Operations with
in or adjacent to
Country a formal agreement
Indigenous peoples’
with Indigenous peoples
territories
Australia 24 13
Canada 6 1
Chile 2 2
Mexico 0 0
Trinidad and Tobago 0 0
USA 5 0
The number of training hours has been annualised using data from a 10-month period, July to April, to determine a total for the year. Percentages are calculated using the
average of the
number of employees at the last day of each calendar month for the same 10-month period. The training relates to the health, safety, or emergency preparedness of
employees with respect to occupational risks or hazards to which employees are reasonably likely to be exposed as assessed by BHP. This includes training related to
general health and safety behavioral expectations covered in Our Code of Conduct, inductions and general leadership courses.
Annual Report BHP Reports
100 5.0
4.7
90 88 4.5 4.4
4.3
4.2 4.2
80 4.0
3.7
70 3.5
61
60 3.0
54
50
50 2.5
42
40 2.0
33
30 1.5
20 1.0
10 0.5
0 0.0
FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2021 FY2020 FY2019 FY2018 FY2017 FY2016
(1) High-potential injuries (HPI) are recordable injuries and first aid cases where there was the potential for a fatality. High-potential injury basis of calculation was revised in FY2020 from event
count to injury count as part of a safety reporting methodology improvement.
(2) FY2017 to FY2018 data includes Continuing and Discontinued operations (Onshore US operated assets). FY2019 data includes Discontinued operations (Onshore US operated assets) to 28
February 2019 and Continuing operations.
(3) Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. No restatements were made to prior year injury and illness data.
Occupational illness incidence by region (1)(2)(3)
(1) The data for FY2017 and FY2018 includes Continuing and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued
(2) Occupational illnesses excludes COVID-19 related data.
(3) Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. No restatements were made to pr
Occupational illness incidence – employee by region
Occupational illness per million hours worked
Region 2021 2020 2019 2018 2017
Asia 0.00 0.00 0.00 0.00 0.00
Australia 5.11 5.09 4.63 4.35 4.61
Europe 0.00 0.00 0.00 0.00 0.00
North America 1.39 0.00 0.00 0.00 0.94
South America 3.64 2.45 4.84 5.19 7.59
Total 4.36 4.31 4.38 4.18 4.93
(Onshore US assets). FY2019 data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
may vary post reporting. No restatements were made to prior year injury and illness data.
Annual Report BHP Reports
(1) The data for FY2017 and FY2018 includes Continuing and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued ope
(2) Occupational illnesses excludes COVID-19 related data.
(3) Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. No restatements were made to prior y
350
6.00
300
53 5.00
250 57
43 38
29 4.00 0.75
0.87
200
3.00
190
150 141
153 142
185
2.69
2.00 2.84
100
50 1.00
68 77
65 67
39 0.92
0.59
0
FY2021 FY2020 FY2019 FY2018 FY2017 0.00
FY2021 FY2020
(1) The data for FY2017 and FY2018 includes Continuing and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued ope
(2) Occupational illnesses excludes COVID-19 related data.
(3) Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. No restatements were made to prior y
Annual Report BHP Reports
9 data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
0.73
0.75 0.72
0.87 0.51
2.71
2.55 2.48
2.69
2.84
1.48
1.11 1.19
0.92
0.59
9 data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
(1) The data for FY2017 and FY2018 includes Continuing and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued ope
(2) Occupational illnesses excludes COVID-19 related data.
(3) Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. No restatements were made to prior y
(4) Due to regulatory regimes and limited access to data, we do not have full oversight of the incidence of contractor noise-induced hearing loss (NIHL
200 2.50
180
160 2.00
55
140 57
57 56
0.57
120 1.50
100 35 0.51
80 1.00
60 125
109 104 1.30
102
40 78 0.50
0.92
20
Noise-induced hearing loss Musculoskeletal illness Other illnesses Noise-induced hearing loss
(1) The data for FY2017 and FY2018 includes Continuing and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued ope
(2) Occupational illnesses excludes COVID-19 related data.
(3) Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. No restatements were made to prior y
(4) Due to regulatory regimes and limited access to data, we do not have full oversight of the incidence of contractor noise-induced hearing loss (NIHL
Annual Report BHP Reports
9 data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
0.57 0.68
0.56
0.44
0.51
1.30 1.24
1.06 0.97
0.92
9 data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
Significant fines for non-compliance with health, safety and environmental laws and/or regulations
(1) Does not include the dam failure at Samarco, our non-operated minerals joint venture.
(2) Includes a fine at Escondida relating to a building permit under general construction and town planning laws (US$340).
Climate change – performance data(1)
Energy consumption(2)
Petroleum
United States – Conventional
Australia
Other
Total petroleum
Copper
Escondida, Chile
Total copper
Iron ore
Western Australia Iron Ore, Australia
Coal
Metallurgical coal – BMA, Queensland Coal, Australia
Total coal
Nickel
Nickel West, Australia
Total nickel
Total(17)
Scope 1
Diesel
Natural gas
Coal and coke
Fugitive sources
Other
Scope 2 (market-based)
Electricity
Total operational GHG emissions
Other combustion
Process emissions
Other vented emissions
Fugitive emissions from operations
Petroleum
United States – Conventional
Australia
Other
Total petroleum
Copper
Escondida, Chile
Iron ore
Western Australia Iron Ore, Australia
Coal
Metallurgical coal – BMA, Queensland Coal, Australia
Total coal
Nickel
Nickel West, Australia
Total nickel
Total(17)
Petroleum
United States – Conventional
Australia
Other
Total petroleum
Copper
Escondida, Chile
Total copper
Iron ore
Western Australia Iron Ore, Australia
Coal
Metallurgical coal – BMA, Queensland Coal, Australia
Total coal
Nickel
Nickel West, Australia
Total nickel
Non-operated assets(21)
Total(17)
Petroleum
United States – Conventional
Australia
Other
Total petroleum
Copper
Escondida, Chile
Total copper
Iron ore
Western Australia Iron Ore, Australia
Coal
Metallurgical coal – BMA, Queensland Coal, Australia
Total coal
Nickel
Nickel West, Australia
Total nickel
Non-operated assets(21)
Total(17)
(1) Unless otherwise noted, FY2019 data includes Continuing operations and Discontinued operations (Onshore US assets) to 31 October 2018.
FY2020 originally reported data that has been restated is 9.5 MtCO2-e for Scope 1 GHG emissions and 15.8 MtCO2-e for total operational GHG e
as part of the annual reconciliation process for Australian regulatory reporting purposes. FY2019 data that has been restated is 6.1 MtCO 2-e for S
MtCO2-e for total operational GHG emissions (adjusted for Discontinued operations) due to minor amendments to market-based emission factors
year asset-level data and changes to presentation of the data has, in certain instances, resulted in minor impacts to the rounding of data since it w
(2) Calculated based on an operational control approach in line with World Resources Institute/World Business Council for Sustainable Developm
of energy consumed from the combustion of fuel; and the operation of any facility; and energy consumed resulting from the purchase of electricity
energy consumption and operational GHG emissions occurs outside the UK and offshore area (as defined in the relevant UK reporting regulations
electricity consumption from our office in London. One TWh equals 1,000,000,000 kWh. Data has been rounded to the nearest 1 PJ or 0.1 TWh to
the sum of totals for sources, commodities and assets may differ due to rounding.
(3) In FY2021, we revised and tightened the definition of renewable energy consumption for our operations to better align with our market-based G
from renewable energy sources figures. Previously reported numbers for FY2020 and FY2019 for this data were 0.01 TWh for both years.
(4) For this purpose, copper equivalent production has been calculated based on FY2021 average realised product prices for FY2021 production,
realised product prices for FY2019 production. Production figures used are consistent with energy and GHG emissions reporting boundaries (i.e.
(5) BHP currently uses Global Warming Potentials (GWP) from the Intergovernmental Panel on Climate Change (IPCC) Assessment Report 5 (AR
Americas currently use IPCC Assessment Report 4 (AR4) and will be transitioning to AR5 GWP in FY2022.
(6) Scope 1 and Scope 2 GHG emissions have been calculated based on an operational control approach (unless otherwise stated) in line with th
information, see BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology, available at bhp.com/climate. Data has been rounded to the ne
information. In some instances the sum of totals for sources, commodities and assets may differ due to rounding.
(9) Scope 1 GHG emissions from BHP's facilities covered by the Safeguard Mechanism administered by the Clean Energy Regulator in Australia
Escondida covered by the Green Tax legislation in Chile.
(10) In the absence of a residual mix default emission factor for Queensland, the default grid factor has been applied for volumes supplied under c
between electricity consumers in the region. We are continuing to evaluate options to improve the accuracy of our Scope 2 GHG emissions repor
(11) Although we prioritise our internal GHG emission reduction projects, we acknowledge a role for high-quality offsets in a temporary or transitio
emissions with limited or no current technological solutions. In this context, we retired a quantity of high-quality carbon offsets in FY2021 equivale
FY2021. Further detail on our approach to carbon offset use is provided in the BHP Annual Report 2021 available at bhp.com/annualreport, includ
(12) In FY2021, we have calculated an additional operational GHG emissions total for the reporting year, including contributions from the retireme
number of carbon offsets retired (each equivalent to a single tonne of carbon dioxide equivalent reduced or ‘removed’ from the atmosphere) from
do not intend to establish a consistent or ongoing approach to the use of carbon offsets towards delivery of our operational GHG emissions target
Scope 2 GHG emissions totals used to assess performance against these targets. Instead, we may retire offsets as a viable low-cost abatement
decarbonisation opportunities with medium to long-term implementation timeframes. Further detail on our approach to carbon offset use, and the
(13) For BHP reporting purposes, these are the aggregate anthropogenic carbon dioxide equivalent emissions of carbon dioxide (CO2), methane (
sulphur hexafluoride (SF6). Nitrogen trifluoride (NF3) GHG emissions are currently not relevant for BHP reporting purposes.
(14) GHG emissions from flared hydrocarbons are included in fugitive GHG emissions.
(15) Based on FY2021, FY2020 and FY2019 production figures. Production figures used are consistent with the GHG emissions reporting bounda
for copper assets does not include gold, silver or uranium in the calculation. Saleable production data is used for Nickel West.
(16) The methodology for capturing this data is currently under review. A correction to this data may be made in the next reporting period.
(17) Total includes functions, projects, exploration, legacy assets and consolidation adjustments. Excludes material acquisitions and divestments.
(18) For the operational control organisational boundary, excludes Onshore US assets, which were divested in FY2019. For the equity share and
emissions (on equity basis) from Cerrejón are only accounted for in the first half of FY2021 due to the effective economic date of 31 December 20
customary competition and regulatory requirements and expected to occur in the first half of CY2022. Non-material acquisitions and divestments
(19) The equity share approach to calculate GHG emissions reflects BHP's equity share in the operations as defined under the Greenhouse Gas
access to the data from all operations in which it holds equity, certain assumptions have been made to estimate equity share GHG emissions from
included are provided in note (21). Comparison of year-on-year equity share GHG emissions may not be possible due to the assumptions made.
(20) The financial control approach to report GHG emissions is based on the accounting treatment in the company’s consolidated financial statem
equity interest owned; and for operations accounted for as a joint operation, the company’s interest in the operation. This approach does not repo
company’s financial statements. As BHP does not control or have access to the data from all operations in which it holds equity, certain assumpti
under BHP's operational control. Details are provided in footnote (21). Comparison of year-on-year financial control GHG emissions may not be p
(21) Non-operated assets include Antamina, Cerrejón, the Kelar Power Station and the petroleum assets in Australia, the United States and Alger
published their latest data and prior year data will not reflect Samarco becoming operational in FY2021. GHG emissions data was sourced directly
reporting year, FY2020 or CY2020 data was extrapolated to reflect FY2021 production levels. This allowed recalculation of prior year GHG emiss
based on analogous BHP operations. For equity share reporting of GHG emissions from non-operated assets, FY2020 originally reported data tha
Scope 2 GHG emissions and 3,930 ktCO2-e for total GHG emissions. For financial control based GHG emissions reported from non-operated ass
emissions, 10 ktCO2-e for Scope 2 GHG emissions and 3,440 ktCO2-e for total GHG emissions. Non-operated assets' GHG emissions are based
review and assurance by BHP as GHG emissions within BHP's operational control boundary.
(22) Scope 3 GHG emissions have been calculated using methodologies consistent with the Greenhouse Gas Protocol Corporate Value Chain (S
reporting necessarily requires a degree of overlap in reporting boundaries due to our involvement at multiple points in the life cycle of the commod
assumptions and key references used in the preparation of our Scope 3 emissions data can be found in the associated BHP Scope 1, 2 and 3 GH
(23) In FY2021, we have made improvements in how we calculate Scope 3 GHG emissions associated with the purchased goods and services ca
improving the accuracy of spend data. Previously reported emissions for the ‘Purchased goods and services (including capital goods)’ category a
for FY2019 are 0.1 MtCO2-e in the ‘Business travel’ category and <0.1 MtCO2-e for the ‘Employee commuting’ category. Emissions in FY2020 did
impact comparability with FY2018 and FY2017 data, which has not been restated.
(24) In FY2021, we have made improvements in how we calculate Scope 3 GHG emissions associated with the ‘Fuel and energy related activities
consumption at our petroleum operations as the majority of those emissions would be captured in our Scope 1 GHG emissions. Previously report
FY2020 and also in FY2019. These changes may impact comparability with FY2018 and FY2017 data, which has not been restated.
(25) Includes product transport where freight costs are covered by BHP, for example under Cost and Freight (CFR) or similar terms, as well as pu
(26) Product transport where freight costs are not covered by BHP, for example under Free on Board (FOB) or similar terms.
(27) For BHP, this category covers the Scope 1 and Scope 2 GHG emissions (on an equity basis) from our assets that are owned as a joint ventu
assets were developed from data provided directly by operators. GHG emissions from our non-operated Kelar Power Station asset are reported a
facility and therefore excluded from our Scope 3 GHG emissions totals. The previous FY2020 value of 3.9 MtCO 2-e has been restated to remove
emissions estimates for non-operated assets for which data was previously unavailable from operators. FY2021 Scope 1 and Scope 2 GHG emis
due to the effective economic date of 31 December 2020 for sale of BHP’s interest in Cerrejón. Completion is subject to the satisfaction of custom
CY2022. Details on assumptions and operations included are provided in footnote (21).
(28) All iron ore production and metallurgical coal is assumed to be processed into steel and all copper metal production is assumed to be proces
uranium oxide is not currently included, as production volumes are much lower than iron ore and copper and a large range of possible end uses a
of petroleum products is also excluded as these GHG emissions are considered immaterial compared to the end-use product combustion reporte
(29) In FY2021, we have addressed some key limitations associated with estimating Scope 3 GHG emissions. We have worked to eliminate doub
iron ore and metallurgical coal in steelmaking, by allocating GHG emissions between the two and reporting a single total Scope 3 GHG emissions
BHP’s metallurgical coal is based on the global average input mass ratio of metallurgical vs iron ore to the blast furnace-basic oxygen furnace (BF
Scope 3 Standard. We have also improved the accuracy of the emission factor used to estimate Scope 3 GHG emissions by reflecting the blast fu
materials portfolio is sold. The improved estimation also considers BHP iron ore product quality and its impact on the amount of ore required to pr
(such as direct reduced iron electric arc furnace (DRI-EAF)), we will adjust the balance of intensity factors to reflect these changes. Previously rep
299.6 MtCO2-e for FY2019. Previously reported numbers for metallurgical coal are 33.7-108.2 MtCO2-e for FY2020 and 34.7-111.4 MtCO2-e for F
(30) All crude oil and condensates are conservatively assumed to be refined and combusted as diesel. Energy coal, natural gas and natural gas li
energy coal products from Cerrejón are only accounted for in the first half of FY2021 due to the effective economic date of 31 December 2020 for
competition and regulatory requirements and expected to occur in the first half of CY2022.
(31) We reported a total figure for the Scope 3 GHG emissions inventory this year as major double counting of emissions from the processing of i
in reporting boundaries still occurs due to our involvement at multiple points in the life cycle of the commodities we produce and consume.
Annual Report BHP Reports
Consumption
of fuel 3,100 3,500
Consumption of electricity
0 0
Total operational energy consumption
3,100 3,500
Consumption
of fuel 4,300 4,800
Consumption of electricity
0 0
Total operational energy consumption
4,300 4,800
Consumption
of fuel 5,200 2,700
Consumption of electricity
20 50
Total operational energy consumption
5,220 2,750
Consumption
of fuel 12,600 11,000
Consumption of electricity
20 50
Total operational energy consumption
12,620 11,050
Consumption
of fuel 11,900 11,900
Consumption of electricity
19,900 19,700
Total operational energy consumption
31,800 31,600
Consumption
of fuel 4,300 5,100
Consumption of electricity
3,200 2,800
Total operational energy consumption
7,500 7,900
Consumption
of fuel 3,600 3,600
Consumption of electricity
3,800 3,700
Total operational energy consumption
7,400 7,300
Consumption
of fuel 19,800 20,600
Consumption of electricity
26,900 26,200
Total operational energy consumption
46,700 46,800
Consumption
of fuel 33,800 33,300
Consumption of electricity
1,300 1,200
Total operational energy consumption
35,100 34,500
Consumption
of fuel 33,800 33,300
Consumption of electricity
1,300 1,200
Total operational energy consumption
35,100 34,500
Consumption
of fuel 31,200 29,700
Consumption of electricity
4,600 4,600
Total operational energy consumption
35,800 34,300
Consumption
of fuel 4,500 4,000
Consumption of electricity
300 400
Total operational energy consumption
4,800 4,400
Consumption
of fuel 7,100 7,000
Consumption of electricity
400 300
Total operational energy consumption
7,500 7,300
Consumption
of fuel 42,800 40,700
Consumption of electricity
5,300 5,300
Total operational energy consumption
48,100 46,000
Consumption
of fuel 8,300 8,100
Consumption of electricity
3,400 3,400
Total operational energy consumption
11,700 11,500
Consumption
of fuel 8,300 8,100
Consumption of electricity
3,400 3,400
Total operational energy consumption
11,700 11,500
Consumption
of fuel 117,400 113,900
Consumption of electricity
37,000 36,300
Total operational energy consumption
154,400 150,200
rce (ktCO2-e)(14)
2021 2020
660 570
0 0
0 0
120 180
Scope 1 110 80
Scope 2 0 0
Equity share GHG total 110 80
Scope 1(16) 170 250
Scope 2 0 0
Equity share GHG total 170 250
Scope 1 160 90
Scope 2 0 10
Equity share GHG total 160 100
Scope 1 440 420
Scope 2 0 10
Equity share GHG total 440 430
Scope 1 110 90
Scope 2 0 0
Financial control GHG total 110 90
Scope 1(16) 170 250
Scope 2 0 0
Financial control GHG total 170 250
Scope 1 160 80
Scope 2 0 10
Financial control GHG total 160 90
Scope 1 440 420
Scope 2 0 10
Financial control GHG total 440 430
Discontinued operations (Onshore US assets) to 31 October 2018. Data in italics indicates that data has been adjusted since it was previously reported.
ope 1 GHG emissions and 15.8 MtCO2-e for total operational GHG emissions, due to minor amendments to fugitive emissions from the coal operated assets
purposes. FY2019 data that has been restated is 6.1 MtCO 2-e for Scope 2 GHG emissions, 15.8 MtCO2-e for total operational GHG emissions, and 15.3
ations) due to minor amendments to market-based emission factors for Minerals Americas operated assets. Additionally, non-material adjustments in prior
nstances, resulted in minor impacts to the rounding of data since it was previously reported.
esources Institute/World Business Council for Sustainable Development guidance. Consumption of fuel and consumption of electricity refers to annual quantity
cility; and energy consumed resulting from the purchase of electricity, heat, steam or cooling by the company for its own use. Over 99.9 per cent of BHP's
and offshore area (as defined in the relevant UK reporting regulations). UK energy consumption of 99,762 kWh and emissions of 21 tCO 2-e is associated with
0,000 kWh. Data has been rounded to the nearest 1 PJ or 0.1 TWh to be consistent with asset/regional energy information in this Report. In some instances
ding.
onsumption for our operations to better align with our market-based GHG emissions reporting. This resulted in the restatement of operational consumption
020 and FY2019 for this data were 0.01 TWh for both years.
d on FY2021 average realised product prices for FY2021 production, FY2020 average realised product prices for FY2020 production and FY2019 average
onsistent with energy and GHG emissions reporting boundaries (i.e. BHP operational control) and are taken on 100 per cent basis.
rnmental Panel on Climate Change (IPCC) Assessment Report 5 (AR5) based on a 100-year timeframe for Minerals Australia and Petroleum. Minerals
oning to AR5 GWP in FY2022.
operational control approach (unless otherwise stated) in line with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. For more
logy, available at bhp.com/climate. Data has been rounded to the nearest 10 ktCO 2-e or 0.1 MtCO2-e to be consistent with asset/regional GHG emissions
d assets may differ due to rounding.
ed or acquired electricity, steam, heat or cooling that is consumed by operated assets. Our Scope 2 GHG emissions have been calculated using the market-
house Gas Protocol Scope 2 Guidance unless otherwise specified. A residual mix emission factor is currently unavailable to account for grid electricity
parties; this may result in double counting of low emissions or renewable electricity contributions across grid-supplied consumers.
Mechanism administered by the Clean Energy Regulator in Australia and the distillate and gasoline GHG emissions from turbine boilers at the cathode plant at
the default grid factor has been applied for volumes supplied under contracts without generation mix specifications. This may result in some double counting
ptions to improve the accuracy of our Scope 2 GHG emissions reporting and may refine this approach in future years.
acknowledge a role for high-quality offsets in a temporary or transitional capacity while abatement options are being studied, as well as for ‘hard to abate’
e retired a quantity of high-quality carbon offsets in FY2021 equivalent to the net increase in our total Scope 1 and Scope 2 GHG emissions from FY2020 to
e BHP Annual Report 2021 available at bhp.com/annualreport, including information on the projects from which retired carbon offsets were sourced.
total for the reporting year, including contributions from the retirement of a quantity of carbon offsets. This figure has been calculated by subtracting the
dioxide equivalent reduced or ‘removed’ from the atmosphere) from the total GHG emissions reported under our operational control boundary for the year. We
bon offsets towards delivery of our operational GHG emissions targets and as such this carbon offset retirement is not integrated into the FY2021 Scope 1 and
gets. Instead, we may retire offsets as a viable low-cost abatement option during some reporting periods in the short term while we pursue material
rames. Further detail on our approach to carbon offset use, and the specifics of the carbon offsets retired in FY2021, is provided at bhp.com/offsets-2021.
bon dioxide equivalent emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and
ently not relevant for BHP reporting purposes.
missions.
gures used are consistent with the GHG emissions reporting boundary (i.e. BHP operational control and are taken on a 100 per cent basis). Production data
Saleable production data is used for Nickel West.
US assets, which were divested in FY2019. For the equity share and financial control organisational boundaries, FY2021 Scope 1 and Scope 2 GHG
alf of FY2021 due to the effective economic date of 31 December 2020 for sale of BHP’s interest in Cerrejón. Completion is subject to the satisfaction of
the first half of CY2022. Non-material acquisitions and divestments have not been included in discontinued operations and are included in the total.
quity share in the operations as defined under the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. As BHP does not control or have
ptions have been made to estimate equity share GHG emissions from operations not under BHP's operational control. Details on assumptions and operations
GHG emissions may not be possible due to the assumptions made.
accounting treatment in the company’s consolidated financial statements, as follows: 100 per cent for operations accounted for as subsidiaries, regardless of
he company’s interest in the operation. This approach does not report GHG emissions from operations which are accounted for using the equity method in the
he data from all operations in which it holds equity, certain assumptions have been made to estimate equity share of GHG emissions from operations not
arison of year-on-year financial control GHG emissions may not be possible due to the assumptions made.
n and the petroleum assets in Australia, the United States and Algeria. Samarco is excluded as operations re-commenced in FY2021 and Samarco has not
ng operational in FY2021. GHG emissions data was sourced directly from the operator in the first instance and, where not readily available for the current
roduction levels. This allowed recalculation of prior year GHG emissions for some assets that were previously estimated using GHG emissions intensities
ssions from non-operated assets, FY2020 originally reported data that is restated on this basis is 3,800 ktCO 2-e for Scope 1 GHG emissions, 130 ktCO2-e for
ancial control based GHG emissions reported from non-operated assets, FY2020 originally reported data that is restated is 3,430 ktCO 2-e for Scope 1 GHG
al GHG emissions. Non-operated assets' GHG emissions are based on third-party (operators') estimates and are therefore not subject to the same level of
ontrol boundary.
sistent with the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Scope 3 Standard). Scope 3 emissions
e to our involvement at multiple points in the life cycle of the commodities we produce and consume. More information on the calculation methodologies,
sions data can be found in the associated BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology, available at bhp.com/climate.
GHG emissions associated with the purchased goods and services category by assigning more accurate emission factors to some procurement categories and
Purchased goods and services (including capital goods)’ category are 16.9 MtCO 2-e in FY2020 and 17.3 MtCO2-e in FY2019. Previously reported emissions
2-e for the ‘Employee commuting’ category. Emissions in FY2020 did not materially change as a result of the improved methodology. These changes may
ated.
GHG emissions associated with the ‘Fuel and energy related activities’ category by removing the Scope 3 GHG emissions associated with natural gas
would be captured in our Scope 1 GHG emissions. Previously reported GHG emissions for the ‘Fuel and energy related activities’ category are 1.3 MtCO 2-e in
FY2018 and FY2017 data, which has not been restated.
xample under Cost and Freight (CFR) or similar terms, as well as purchased transport services for process inputs to our operations.
(on an equity basis) from our assets that are owned as a joint venture but not operated by BHP. In FY2021, GHG emissions estimates from non-operated
ons from our non-operated Kelar Power Station asset are reported as Scope 2 GHG emissions at the Minerals Americas operated assets supplied by the
previous FY2020 value of 3.9 MtCO 2-e has been restated to remove GHG emissions from the Kelar Power Station and include updated Scope 3 GHG
navailable from operators. FY2021 Scope 1 and Scope 2 GHG emissions (on an equity basis) from Cerrejón are only accounted for the first half of FY2021
terest in Cerrejón. Completion is subject to the satisfaction of customary competition and regulatory requirements and expected to occur in the first half of
tnote (21).
d into steel and all copper metal production is assumed to be processed into copper wire for end use. Processing of nickel, zinc, gold, silver, ethane and
er than iron ore and copper and a large range of possible end uses apply or downstream GHG emissions are estimated to be immaterial. Processing/refining
red immaterial compared to the end-use product combustion reported in the ‘Use of sold products’ category.
mating Scope 3 GHG emissions. We have worked to eliminate double counting in our reported inventory in relation to GHG emissions from the processing of
between the two and reporting a single total Scope 3 GHG emissions figure for GHG emissions from steelmaking. Allocation of steelmaking GHG emissions to
metallurgical vs iron ore to the blast furnace-basic oxygen furnace (BF-BOF) steelmaking route. This approach to improving accuracy is consistent with the
or used to estimate Scope 3 GHG emissions by reflecting the blast furnace integrated steelmaking route into which the majority of BHP’s steelmaking raw
ore product quality and its impact on the amount of ore required to produce steel. As our product evolves in its quality and flow through to other pathways
e balance of intensity factors to reflect these changes. Previously reported numbers for iron ore processing are 205.6-322.6 MtCO 2-e for FY2020 and 197.2-
al are 33.7-108.2 MtCO2-e for FY2020 and 34.7-111.4 MtCO2-e for FY2019.
and combusted as diesel. Energy coal, natural gas and natural gas liquids are assumed to be combusted. FY2021 Scope 3 GHG emissions associated with
FY2021 due to the effective economic date of 31 December 2020 for sale of BHP’s interest in Cerrejón. Completion is subject to the satisfaction of customary
lf of CY2022.
year as major double counting of emissions from the processing of iron ore and metallurgical coal in steelmaking was removed, however a degree of overlap
n the life cycle of the commodities we produce and consume.
BHP Reports
2014 2013
224 208
38 35
71 65
87 79
28 29
119 117
343 325
2014 2013
100% 100%
17% 17%
32% 31%
39% 38%
13% 14%
100% 100%
2014 2013
22.7 22.0
22.3 24.7
45.0 46.7
4.9
nce it was previously reported.
ons from the coal operated assets
ional GHG emissions, and 15.3
non-material adjustments in prior
perations.
Energy consumption(1)(2)
Operational energy consumption (PJ) Operational energy consumption FY2021 by source (PJ)
Coal & coke, 1, 1% Other, 2, 1%
400 Electricity
37
24%
350
300
250
200
154
150
Natural gas
23
15%
100
0
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
(1) Calculated based on an operational control approach in line with World Resources Institute/World Business Council for Sustainable Development guidance. Consumption of fuel and
consumption of electricity refers to annual quantity of energy consumed from the combustion of fuel; and the operation of any facility; and energy consumed resulting from the purchase
of electricity, heat, steam or cooling by the company for its own use. Over 99.9 per cent of BHP's energy consumption and operational GHG emissions occurs outside the UK and
offshore area (as defined in the relevant UK reporting regulations). UK energy consumption of 99,762 kWh and GHG emissions of 21 tonnes CO 2-e is associated with electricity
consumption from our office in London. One TWh equals 1,000,000,000 kWh. Data has been rounded to the nearest 1 PJ or 0.1 TWh to be consistent with asset/regional energy
information in this Report.
(2) Comparisons of data over the period FY2015 to FY2016 should be made with consideration of the divestment of South32 during FY2015 (FY2015 data excludes emissions from
South32 operations between the date of the divestment and 30 June 2015). Unless otherwise noted, FY2017 and FY2018 data includes Continuing operations and Discontinued
operations (Onshore US assets). Unless otherwise noted, FY2019 data includes Continuing operations and Discontinued operations (Onshore US assets) to 31 October 2018.
Annual Report BHP Reports
50.0 FY2010
40.0
FY2011
FY2012
FY2013
30.0
FY2014
FY2015
20.0 FY2016
FY2017
6.2 FY2018
10.0
FY2019
10.0 FY2020
FY2021
0.0
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Scope 1(2) Scope 2(3) Onshore US FY2006 baseline(5) FY2017 baseline(4) FY2020 baseline(6)
Fugitives Diesel
2.2 6.4
14% 40%
Label
Amounts
Percentages
Electricity
6.2
38%
(1) Scope 1 and 2 GHG emissions have been calculated based on an operational control approach in accordance with the Greenhouse Gas Protocol
Corporate Accounting and Reporting Standard. Includes data for Continuing and Discontinued operations for the financial years being reported.
Comparisons of data over the period FY2015 to FY2016 should be made with consideration of the divestment of South32 during FY2015 (FY2015 data
excludes GHG emissions from South32 operations between the date of the divestment and 30 June 2015). Data over the period FY2017 to FY2019 is
displayed with Onshore US GHG emissions shown separately for comparability (12 months of emissions in FY2017 and FY2018, and four months of
emissions in FY2019 prior to divestment of this asset).
(4) FY2017 is the base year for our current five-year operational GHG emissions reduction target, which took effect from FY2018. The FY2017 baseline has
been adjusted for the divestment of our Onshore US assets to ensure ongoing comparability of performance. The baseline will continue to be adjusted for
any material acquisitions and divestments based on the Scope 1 and Scope 2 GHG emissions levels for the acquired or divested operation in the baseline
year; carbon offsets will be used as required.
(5) The FY2006 baseline was adjusted as necessary for material acquisitions and divestments based on GHG emissions at the time of the applicable
transaction. This was the baseline for our prior five-year operational GHG emission reduction target.
(6) The FY2020 baseline was adjusted to integrate updates to fugitive emissions from coal assets (total operational GHG emissions restated from 15.8
MtCO2-e to 15.9 MtCO2-e).
Scope 3 greenhouse gas emissions FY2021 (1)
Scope 3 emissions(1)
MtCO2 -e
300
250
200
150
100
50
0
Purchased goods and Transportation and dis- Other (3) Iron ore processing to Metallurgical coal Copper processing Energy coal (6) Natural gas and natural Crude
services (including tribution (2) crude steel (4) (5) processing to crude gas liquids (6) dens
capital goods) steel (4) (5)
(1) Scope 3 GHG emissions have been calculated using methodologies consistent with the Greenhouse Gas Protocol Corporate Value Chain (Sc
Accounting and Reporting Standard (Scope 3 Standard). Scope 3 emissions reporting necessarily requires a degree of overlap in reporting bound
to our involvement at multiple points in the life cycle of the commodities we produce and consume. More information on the calculation methodolo
assumptions and key references used in the preparation of our Scope 3 emissions data can be found in the associated BHP Scope 1, 2 and 3 GH
Emissions Calculation Methodology, available at bhp.com/climate.
(2) Includes both upstream and downstream activities. Upstream covers product transport where freight costs are covered by BHP, for example u
and Freight (CFR) or similar terms, as well as purchased transport services for process inputs to our operations. Downstream covers product tran
where freight costs are not covered by BHP, for example under Free on Board (FOB) or similar terms.
(3) Includes Business Travel, Employee commuting, Fuel and energy related activities and Investments categories. Investment category for BHP,
Scope 1 and Scope 2 GHG emissions (on an equity basis) from our assets that are owned as a joint venture but not operated by BHP.
(4) All iron ore production and metallurgical coal is assumed to be processed into steel and all copper metal production is assumed to be process
copper wire for end use. Processing of nickel, zinc, gold, silver, ethane and uranium oxide is not currently included, as production volumes are mu
than iron ore and copper and a large range of possible end uses apply or downstream GHG emissions are estimated to be immaterial. Processing
petroleum products is also excluded as these GHG emissions are considered immaterial compared to the end-use product combustion reported in
of sold products’ category.
(5) In FY2021, we have addressed some key limitations associated with estimating Scope 3 GHG emissions. We have worked to eliminate double
in our reported inventory in relation to GHG emissions from the processing of iron ore and metallurgical coal in steelmaking, by allocating GHG em
between the two and reporting a single total Scope 3 GHG emissions figure for GHG emissions from steelmaking. Allocation of steelmaking GHG
to BHP’s metallurgical coal is based on the global average input mass ratio of metallurgical vs iron ore to the blast furnace-basic oxygen furnace (
steelmaking route. This approach to improving accuracy is consistent with the Scope 3 Standard. We have also improved the accuracy of the em
used to estimate Scope 3 GHG emissions by reflecting the blast furnace integrated steelmaking route into which the majority of BHP’s steelmakin
materials portfolio is sold. The improved estimation also considers BHP iron ore product quality and its impact on the amount of ore required to pr
steel. As our product evolves in its quality and flow through to other pathways (such as direct reduced iron electric arc furnace (DRI-EAF)), we wil
balance of intensity factors to reflect these changes.
(6) All crude oil and condensates are conservatively assumed to be refined and combusted as diesel. Energy coal, natural gas and natural gas liq
assumed to be combusted. FY2021 Scope 3 GHG emissions associated with energy coal products from Cerrejón are only accounted for H1FY20
the effective economic date of 31 December 2020 for sale of BHP’s interest in Cerrejón. Completion is subject to the satisfaction of customary co
and regulatory requirements and expected to occur in the first half of the 2022 calendar year.
Annual Report BHP Reports
cal coal Copper processing Energy coal (6) Natural gas and natural Crude oil and con-
to crude gas liquids (6) densates (6)
) (5)
ransport where freight costs are covered by BHP, for example under Cost
ocess inputs to our operations. Downstream covers product transport
OB) or similar terms.
vities and Investments categories. Investment category for BHP, covers the
e owned as a joint venture but not operated by BHP.
ombusted as diesel. Energy coal, natural gas and natural gas liquids are
rgy coal products from Cerrejón are only accounted for H1FY2021 due to
rrejón. Completion is subject to the satisfaction of customary competition
endar year.
Annual Report BHP Reports
Water(5)(8)
Withdrawals(6) ML 438,660 380,330 352,950 339,870
Water withdrawals by quality - Type 1 ML 54,310 51,610 58,850 34,900
Water withdrawals by quality - Type 2 ML 36,970 35,670 37,560 44,150
Water withdrawals by quality - Type 3 ML 347,390 293,060 256,550 260,820
Water withdrawals by source - Surface water (7)
ML 30,350 45,190 50,660 43,380
Water withdrawals by source - Groundwater ML 100,700 123,660 140,020 134,320
Water withdrawals by source - Sea water ML 284,700 211,510 162,260 162,160
Water withdrawals by source - Third party water (6) ML 22,910
Total water withdrawals (water stress areas) (9) ML 233,190
Discharges ML 203,450 147,850 119,250 118,940
Water discharges by quality - Type 1 ML 0 0 0 0
Water discharges by quality - Type 2 ML 2,390 3,740 3,060 1,150
Water discharges by quality - Type 3 ML 201,060 144,110 116,190 117,790
Water discharges by destination - Surface water ML 2,450 3,970 2,940 2,730
Water discharges by destination - Groundwater ML 9,670 9,440 1,540 840
Water discharges by destination - Sea water ML 190,660 134,120 114,460 115,040
Water discharges by destination - Third party ML 660 310 320 320
Total water discharges (water stress areas) ML 123,200
Consumption ML 267,130 259,070 271,680
Consumption - evaporation ML 141,430 127,080 143,040 140,760
Consumption - entrainment ML 107,270 109,550 107,270 17,870
Consumption - other ML 18,450 22,440 21,370 1,330
Total consumption (water stress areas) ML 106,950
Recycled / Reused ML 262,430 250,090 246,420 261,620
Diversions ML
Diversions - withdrawals ML 103,220 103,750 122,670 16,290
Diversions - discharges ML 68,910 79,430 72,500 7,860
Waste
Hazardous waste – Mineral total (including tailings)(10) kilotonnes 20,420 15,000 13,500 13,100
Non-hazardous waste - Mineral tailings(10) kilotonnes 178,000 175,000 167,000 137,000
Accidental discharges of water and tailings (11)(12)
megalitres 0 0 0 0
(1) FY2018 and FY2019 data includes Continuing and Discontinued operations (Onshore US assets) and FY2019 data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations unless otherwise stated. Data in italics
indicates that data has been adjusted since it was previously reported. Water restatements are a result of external assurance outcomes and ongoing improvements in data quality.
(2) Land data is calculated as the total land area at the time of reporting.
(3) Data does not include land managed for rehabilitation or conservation as part of social investment.
(4) Material contributor (38,022 ha) includes the Emerald Springs Significant Environment Benefit credit area approved by the South Australian Government.
(5) Data has been rounded to the nearest 10 megalitres to be consistent with asset/regional water information in this Report. In some instances the sum of totals for quality, source and destination may differ due to rounding. All water performance data excludes
Discontinued operations (Onshore US assets, divested in FY2019).
(6) Third party water withdrawals have been reported as a distinct category in FY2021 to align with external reporting frameworks (e.g. GRI/SASB) . These volumes were included under the originating source in prior years.
(7) Data includes rainfall and run-off volumes captured and used during the reporting year; rainfall and run-off volumes that have been captured and stored are excluded and will be reported in the future year of use.
(8) Data for water consumption metrics was collected for the first time in FY2019 across all operations. FY2018 data reflects partial volumes collected from Queensland and NSW Energy Coal, WAIO and Pampa Norte operations only.
(9) Based on the physical risk rating from the WWF Water Risk filter and the definition of water stress in the CEO Water Mandates “Corporate water disclosure guidelines (2014)”.
(10) For tailings related minerals waste these figures represent the total deposited in the reporting year.
(11) Data reported for environmentally significant incidents.
(12) Does not include the dam failure at Samarco, our non-operated minerals joint venture.
(13) Data drawn from Australian NPI and US EPA Emission Factors and represent emissions over CY2021 for all assets except Olympic Dam and US Petroleum, which report emissions for FY2021.
Operated assets owned, leased, managed in, or adjacent to, protected areas and a
as at 30 June 2021
Operated
Operated
Country/ Region Commodity asset
asset
size (km2)
Australia
Queensland Coal BMA 1,263
Queensland Coal BMA 1,263
Queensland Coal BMA 890
Queensland Coal BMA 1,263
Queensland Coal BMA 890
Queensland Coal BMC 349
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
South Australia Copper, uranium, gold, silver Olympic Dam 21,889
Western Australia Nickel Nickel West 5,427
Western Australia Nickel Nickel West 701
Western Australia Nickel Nickel West 5,427
Western Australia Nickel Nickel West 5,427
Western Australia Nickel Nickel West 5,427
Western Australia Nickel Nickel West 5,427
Western Australia Nickel Nickel West 5,427
Western Australia Iron ore WAIO 3,667
Western Australia Iron ore WAIO 3,667
Western Australia Iron ore WAIO 8,295
Western Australia Titanium Beenup 7
Western Australia Oil and gas Pyrenees 558
Western Australia Oil and gas Pyrenees 558
Western Australia Oil and gas Stybarrow 240
Victoria Oil and gas Minerva 66
Canada
Saskatchewan Potash Jansen 56
Nova Scotia Legacy assets/closed sites/R&CM East Kemptville 11
Nova Scotia Legacy assets/closed sites/R&CM East Kemptville 11
United States
Arizona Legacy assets/closed sites/R&CM San Manuel 115
Chile
Antofagasta Copper Spence 624
Antofagasta Copper Spence 624
Antofagasta Copper Spence 624
Antofagasta Copper Cerro Colorado 326
Antofagasta Copper Escondida 1,572
Antofagasta Copper Escondida 1,572
Type of Biodiversity
Habitat Area
operated area
type name
asset classification
ion. Manufacturing/production includes pastoral activities, refineries and other locations where products are made. Some operated assets may include both, but
HBVA site occurs within the boundary of the operated asset. Adjacent to = The operated asset occurs within 500 metres of the boundary. Contains portions of =
Annual Report
Our Requirements
Contains portions of
Adjacent to
Adjacent to National Reserve National IV
Contains portions of
Contains portions of
Contains portions of National Park National II
Contains portions of
cts are made. Some operated assets may include both, but for purposes of disclosure refers to the activity that has the highest operational footprint.
s within 500 metres of the boundary. Contains portions of = The operated asset contains some but not all of the DPA/HBVA site or the DPA/HBVA site contains
Annual Report BHP Reports
For HBVA –
Basis of recognition
IBA – other
Within ope
Australia
West Australia WAIO Iron ore 47.04
West Australia Nickel West Nickel 3.81
West Australia Beenup (closed site) Titanium 3.65
South Australia Olympic Dam Copper, uranium, gold, silver 0.00
West Australia, Victoria Australian Production Unit Oil and gas 0.00
Queensland BMC Coal 3.41
Queensland BMA Coal 0.00
New South Wales NSWEC Coal 6.50
Canada
Saskatchewan Jansen Potash 0.00
British Columbia, Nova Scotia, Ontario, Quebec Legacy assets Various 0.00
United States
Arizona, California, New Mexico, Utah Legacy assets Various 0.00
Gulf of Mexico Gulf of Mexico Production Unit Oil and gas 0.00
Central America
Trinidad and Tobago Trinidad Production Unit Oil and gas 0.00
Mexico Trion Oil and gas 0.00
Chile
Antofagasta Escondida Copper 0.00
Antofagasta Pampa Norte Copper 0.00
estore habitat areas distinct from where BHP has overseen and implemented restoration or protection measures.
Total number of IUCN Red List species and national conservation list species with habitats
as at 30 June 2021
7 9 13 487 4 7 8
6 9 16 390 0 3 1
4 4 14 283 4 12 8
11 13 26 550 6 10 15
70 185 181 3,149 7 23 59
3 7 20 607 3 7 15
29 146 174 2,419 5 20 36
4 22 27 653 6 8 24
1 7 8 327 0 2 7
12 33 47 870 0 5 26
18 29 26 1,132 0 8 8
23 52 48 1,853 0 8 13
43 72 48 2,216 1 1 4
14 11 6 487 0 14 0
17 26 31 488 8 9 28
21 25 31 502 7 12 31
ere available) using BHP's Area of Influence for operating and closed assets.
y aligns to their national ranking.
Annual Report BHP Reports
(1) Data has been rounded to the nearest ten. In some instances the sum of totals for quality, source and destination may differ due to rounding.
(2) Petroleum assets have been grouped due to their relatively lower volumes of water withdrawals, discharges and consumption compared to the mining assets.
(3) Based on the physical risk rating from the WWF Water Risk filter and is based on the definition of water stress in the CEO Water Mandate’s ‘Corporate Water Disclosure Guidelines (2014)’.
Those assetsrainfall
(4) Includes with aand
highrun-off
or very high physical
volumes riskand
captured rating areduring
used defined
theas being located
reporting in a ‘water-stressed
year; rainfall area’. that have been captured and stored are excluded and will be reported in the future year of use.
and run-off volumes
(5) Third-party water withdrawals were reported by source in prior years however have been reported as a distinct category in FY2021 for transparency.
(6) This third-party water is sourced from a combination of seawater (desalination), groundwater and surface water sources in varying proportions across the reporting period.
(7) This volume was discharged as water supply to a neighbouring organisation.
(8) This volume was discharged from BMA and supplied to BMC and is therefore not considered as water supplied to another organisation.
Annual Report BHP Reports
Year Type 1 Type 2 Type 3 Surface water Groundwater Sea water Third party water
FY2017 – FY2021 Total withdrawals (by quality) FY2017 – FY2021 Total withdrawals (by source)
Megalitres Megalitres
500,000.0 500,000.0
450,000.0 450,000.0
400,000.0 400,000.0
350,000.0 350,000.0
300,000.0 300,000.0
250,000.0 250,000.0
200,000.0 200,000.0
150,000.0 150,000.0
100,000.0 100,000.0
50,000.0 50,000.0
0.0 0.0
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Type 3 Type 2 Type 1 Sea water Groundwater Surface water Third party water
Annual Report BHP Reports
Year Type 1 Type 2 Type 3 Surface water Groundwater Sea water Third party water
FY2017 – FY2021 Total discharges (by quality) FY2017 – FY2021 Total discharges (by destination)
Megalitres Megalitres
250,000.0 250,000.0
200,000.0 200,000.0
150,000.0 150,000.0
100,000.0 100,000.0
50,000.0 50,000.0
0.0 0.0
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Type 3 Type 2 Type 1 Sea water Groundwater Surface water Third party water
Annual Report BHP Reports
FY2021 Withdrawals by asset (by source) FY2021 Withdrawals by asset (by source)
Megalitres Megalitres
Asset Sea water Surface water Groundwater Third party water TOTAL
250,000.0
Escondida 215,690.0 0.0 7,630.0 0.0 223,330.0
Petroleum 69,010.0 0.0 7,800.0 40.0 76,850.0
Western Australia Iron Ore 0.0 0.0 45,240.0 4,590.0 49,830.0 200,000.0
0.0
Escondida Petroleum Western Aus- BMA Nickel West Olympic Dam Pampa Norte NSW Energy BMC Legacy assets Jansen
tralia Iron Ore Coal Potash
Project
FY2021 Discharges by asset (by destination) FY2021 Discharges by asset (by destination)
Megalitres Megalitres
Asset Sea water Surface water Groundwater Third party water TOTAL
140,000.0
Escondida 121,340.0 0.0 1,860.0 0.0 123,200.0
Petroleum 69,000.0 0.0 7,800.0 0.0 76,810.0 120,000.0
BMA 270.0 970.0 0.0 300.0 1,540.0
Western Australia Iron Ore 50.0 1,390.0 0.0 0.0 1,440.0 100,000.0
0.0
Escondida Petroleum BMA Western Aus- Nickel West Jansen Legacy assets NSW Energy Olympic Dam Pampa Norte BMC
tralia Iron Ore Potash Coal
Project
0.0
Escondida Western Aus- BMA Nickel West Olympic Dam Pampa Norte NSW Energy BMC Legacy assets Jansen Petroleum
tralia Iron Ore Coal Potash
Project