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Sheet 1: Index
| BHP ESG Standards and Databook 2021 | ||
| The table below provides a reference to the tabs used in this ESG Standards and Databook 2021. | ||
| Section | Title | Type |
| References | Link to public documents and webpages mentioned in this document. |
Index |
| 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 Goals (SDGs) |
Standards Index |
| SASB | Sustainability Accounting Standards Board (SASB) Index Industry Standard: Metals and Mining |
Standards Index |
| TCFD | Task Force on Climate-related Financial Disclosures (TCFD) Index TCFD Supplementary Guidance for Non-Financial Groups Index |
Standards Index |
| CA 100+ | Climate Action 100+ Net-Zero Company Benchmark |
Standards Index |
| UNGC and CEO Water Mandate | UN Global Compact Progress against 10 Principles Index CEO Water Mandate Index |
Standards Index |
| ICMM | International Council on Mining and Metals (ICMM) Mining Principles Index International Council on Mining and Metals (ICMM) Position Statement Index |
Standards Index |
| TSF – CoE | Tailings storage facilities disclosure: response to the Church of England Pensions Board and the Council on Ethics Swedish National Pension Funds |
Tables |
| People – performance data | Workforce data and diversity by region Employees by category and diversity Turnover and new hires Remuneration Employee parental leave Employee training Employee regular performance discussion records Active employee workforce globally on collective bargaining agreements |
Tables |
| Society – performance data FY2020 | Community complaints Indigenous peoples' territories |
Tables |
| Health and safety (H&S) – performance data | Workforce health and safety – Regional summary Injury rates and numbers |
Tables |
| TRIF and HPI | Total recordable injury frequency High–potential injuries |
Tables and graphs |
| Occupational illness (OI) Region | Occupational illness incidence – employee by region Occupational illness incidence – contractor by region |
Tables and graphs |
| 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 |
| Climate change – performance data | Climate change data Energy consumption Operational energy consumption by source Operational energy consumption by commodity Greenhouse gas (GHG) emissions Operational GHG emissions by source Operational Scope 1 GHG emissions from Petroleum operations by source (kilotonnes CO2-e) Operational GHG emissions by commodity and asset Equity share GHG emissions by commodity and asset Financial control GHG emissions by commodity and asset |
Tables |
| Energy consumption | Historical operational energy consumption by source Operational energy consumption by source |
Graphs |
| Scope 1 & 2 GHG emissions | Historical operational emissions and targets Operational GHG emissions by source |
Graphs |
| Scope 3 GHG emissions | Scope 3 greenhouse gas emissions |
Graphs |
| Environment – performance data | Land Water Minerals waste Air emissions |
Tables |
| Biodiversity GRI 304-1 | Operated assets owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas as at 30 June 2021 |
Table |
| 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 affected by the operated assets of BHP as at 30 June 2021 |
Table |
| Water – performance data | Water performance data data by asset |
Tables |
| Water withdrawals | Water withdrawals by quality Water withdrawals by source |
Table and graphs |
| Water discharges | Total discharges by quality Total discharges by destination |
Table and graphs |
| Water by asset charts | Water withdrawals by asset (by source) Water discharges by asset (by destination) Water consumption by asset |
Table and graph |
| 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 | ||
| Definition and calculation of sustainability performance metrics | ||
| For the year-ended 30 June 2021 | ||
| 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 methodology 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. |
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| Reference and SPM | Methodology | |
| 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 vital for maintaining a competitive advantage. The SPMs for gender, employment type and turnover are key indicators, which allow the Board, management, investors and other stakeholders to measure and track our near and long-term progress. | |
|
| Workforce by gender, region, category and employment type | 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. There is no significant seasonal variation in employment numbers. These methodologies have been prepared in accordance with GRI standard 102-8 and GRI standard 405-1. |
|
| Employee new hires and turnover | 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. |
|
| Health and safety-related metrics | ||
| Our highest priority is the safety 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 potential impact of those risks. The 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 trends related to personal injuries, occupational illness and exposures. We focus on strengthening in-field verification of material and fatal risks, enhancing our internal investigation process and widely sharing and applying lessons and enabling additional quality field time to engage our workforce. | |
|
| TRIF | 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 events | 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-potential 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. |
|
| Occupational illness incidence | 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 | 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 diesel 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. Where employees are exposed in excess of an OEL: • exposure controls in accordance with the hierarchy of control must be implemented • PPE is provided and must be worn • health surveillance must be undertaken Quantitative occupational exposure measurements are undertaken to provide assurance that implemented controls remain effective. |
|
| 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 business, our constructive engagement and advocacy on important issues and our contribution as community partners. Our community SPMs allow the Board, management, investors and other stakeholders to track our performance in contributing to social value in the communities where we operate and monitor our relationships and engagement with this important stakeholder group. | |
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| Social investment spend | 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. |
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| Significant community events | 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. |
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| Community complaints | 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. |
|
| 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 and monitor the inherent risks relating to, and any adverse impacts our operations 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 performance towards our environmental commitments. These measures are used to inform strategic focus areas, support planning and investments in infrastructure and identify improvement opportunities that potentially reduce environmental 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. Additionally, our operations and growth strategy depend on obtaining and maintaining access to environmental resources, such as land and water. Significant environmental events and incidents of non-compliance can lead to material adverse impacts including costly environmental liabilities, which hinder our growth and expansion strategies. | |
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| Land owned, leased or managed, Land disturbed, Land rehabilitated, Area restored and Land set aside for conservation | 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 the 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 formally 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. |
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| Water withdrawals, Water discharges, Water diversions and Water consumption | 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. |
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| 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. |
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| Water recycled/reused and Water stress | 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 without 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. |
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| Mineral waste (including tailings) | 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). Mineral waste (hazardous) Includes the following if classified as hazardous by local legislation: • mineral waste from raw or intermediate materials that have been processed as part of the production sequence, such as beneficiation, refining and smelting • tailings, slimes, sludge, residues, slag, fly ash, gypsum, coal rejects Includes non-hazardous waste co-disposed/mingled with hazardous material. Excludes any hazardous mineral waste that is rehandled to prevent double counting. Tailings waste (non-hazardous) Includes tailings, slimes and residue resulting from the processing of ore which is not classified as hazardous by local legislation. 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. |
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| Significant environmental events | 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. |
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| Climate change-related metrics | ||
| We recognise the impacts of climate 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 transition to a lower carbon economy. 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 fulfil our regulatory reporting obligations. The SPMs allow the Board, management, investors and other stakeholders to measure BHP’s performance against these commitments. | |
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| 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 Emissions Calculation Methodology 2021, available at bhp.com. | |
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