Sustainability
Report2019

Our Charter
We are BHP,a leading global resources company.
Our Purpose

Our Values

To bring people and resources
together to build a better world.

Sustainability

Our Strategy
Our strategy is to have the best
capabilities, best commodities
and best assets, to create
long-term value and high returns.

Putting health and safety first, being environmentally responsible
and supporting our communities.

Integrity
Doing what is right and doing what we say we will do.

Respect
Embracing openness, trust, teamwork, diversity and relationshipsthat are mutually beneficial.

Performance
Achieving superior business results by stretching our capabilities.

Simplicity
Focusing our efforts on the things that matter most.

Accountability
Defining and accepting responsibility and delivering on our commitments.

We are successful when:
Our people start each day with a sense of purpose and end the day witha sense of accomplishment.
Our teams are inclusive and diverse.
Our communities, customers and suppliers value their relationships with us.
Our asset portfolio is world-class and sustainably developed.
Our operational discipline and financial strength enables our future growth.
Our shareholders receive a superior return on their investment.

Andrew Mackenzie
Chief Executive Officer

May 2019

In this Sustainability Report
BHP at a glance
Chief Executive Officer’s Review
About this Sustainability Report
Our FY2019 sustainability performance

2
3
5
8

Our sustainability approach
SamarcoTailings dams

9
18
22

Health and safety

25

Environment

32

Climate change

37

Water

44

Society58

People70

Ethics and business conduct

74

Appendix
Performance data – Environment
Performance data – Climate change
BHP water sensitivity assessment
Detailed significant water-related risks
Performance data – Water
BHP asset-level water data summary
Performance data – Society
Performance data – People

77
78
80
83
84
87
90
91
91

EY Assurance statement

93

BHP Locations

94

Corporate directory96

BHP Sustainability Report 20192018

1

BHP at a glance

We employ overWho work in over

Safety is our top priority

employees and contractors (1)locations worldwide

The number of high-potential
injury events (2) declined by

72,00090

7% compared to FY2018
54
in FY2018(3)(4)

We created value for the community
We made a social investment of

US$93.5 million

to communities around the world (6)We continued to take action
on climate change

We are minimising
our water impact

We are investing

Fresh water withdrawal (7)reduction

US$400 million

into a Climate Investment Programto accelerate our efforts to address
climate change(3)50
in FY2019(5)1% lowercompared to FY2017 (8)Our Operating Model
AssetsMinerals Americas

Petroleum

Coal, copper, iron ore, nickel

Coal, copper, iron ore, potash

Petroleum

Operated assets
Western Australia Iron Ore
Queensland Coal (BMA and BMC)New South Wales Energy Coal
Olympic Dam
Nickel West

Operated assets
Escondida
Pampa Norte
JansenOperated assets
ShenziAngostura
Pyrenees
MacedonMinerals Australia

Non-operated assets
Antamina
CerrejónSamarcoNon-operated assets
Atlantis
Mad Dog
Bass Strait
North West Shelf

Commercial
Functions
Centres of Excellence
Leadership(1) Data includes Continuing operations and Discontinued operations (Onshore US assets).
(2) Includes recordable injuries and first aid cases where there was the potential for a fatality.
(3) FY2018 data includes Continuing and Discontinued operations (Onshore US assets).
(4) FY2018 data has been readjusted due to reclassification of an event after the reporting period.
(5) FY2019 data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations.
(6) FY2019 social investment figure includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
(7) Where ‘withdrawal’ is defined as water withdrawn and intended for use (in accordance with ‘A Practical Guide to Consistent Water Reporting’, ICMM (2017)). ‘Fresh water’is defined as waters other than sea water, waste water from third parties and hypersaline ground water. Fresh water withdrawal also excludes entrained water that would
not be available for other uses. These exclusions have been made to align with the target’s intent to reduce the use of fresh water sources subject to competition from otherusers or the environment.
(8) The FY2017 baseline data has been adjusted to account for the materiality of the strike affecting water withdrawals at Escondida in FY2017 and improvements to water balancemethodologies at WAIO and Queensland Coal and the divestment of our Onshore US assets in FY2019. Discontinued operations (Onshore US assets) have been excluded.

BHP Sustainability Report 20192

Chief Executive Officer’s Review

Tailings dams

Thank you for downloading BHP’s Sustainability Report 2019.
This Report tracks our progress against a range of health, safety,
environmental and community measures that we voluntarily
disclose as part of our commitment to greater transparency.

Nothing is more important than the safety of our people andcommunities. That’s why we significantly increased the rigour
of our assessment and management of tailings facilities since
the tragic failure of the Fundão dam at Samarco in 2015. In FY2019,building on the work we did in 2016, we initiated dam safety reviews
at significant active, inactive and closed tailings facilities across
BHP. The reviews assessed dam design, construction, operations,emergency response and governance to determine the current
level of risk and make sure the controls we have in place are
adequate and effective.

Though the Report covers our performance in FY2019, sustainability
has long been hardwired into all the decisions we make, the actions
our people take and the processes adopted by our business acrossthe globe.
Global shifts in investor, political and community sentiment amid
the rapid pace of change inspired us to refresh our purpose andcontribution to society. Our profits must have a purpose anda socially responsible purpose generates greater shareholder
value. Our updated purpose is: to bring people and resources
together to build a better world. It acknowledges people as
the driving force behind our ability to deliver sustainable andcommercial outcomes.

The tragic failure of Vale’s Brumadinho tailings dam in Brazil in
January 2019 shows we all must act with even greater urgency
to make sure these incidents do not happen. That’s why we areworking closely with industry to achieve more consistent disclosure.
We established a Tailings Taskforce to oversee improvement
and assurance for our operated tailings dams and we will
participate in setting new international and independent
tailings management standards.

This is an intrinsic part of how we build social value, which is ourcontribution to our people, the environment and communities.
It informs the way in which we provide resources, achievecommercial success and make our workplace safe.

Environment

The environmental challenges we face are complex and
unprecedented. They demand concerted and collective action
to reduce impacts to water resources and biodiversity and curb
carbon emissions. We acknowledge our responsibility to takeaction on climate change to reduce our greenhouse gas (GHG)
emissions as a major producer and consumer of fossil fuels.

Health and safety

Safety will always be our top priority. Last December, one of ourcolleagues, Allan Houston, died at work at BMA’s Saraji Mine in
Queensland. I extend my deepest sympathies to Allan’s family,
friends and colleagues impacted by this tragic incident. In response,
we have redoubled our efforts to make sure our people go homesafely each day.

We remain committed to our five-year target to maintain total
operational GHG emissions at or below FY2017 levels. In FY2019,
our operational GHG emissions were 3 per cent below our target
baseline. We know we must do more. In line with the Paris
Agreement, our long-term goal is to achieve net-zero emissions
from our operations in the latter half of this century and next
year we will establish an additional medium-term target.

Throughout the year, our leaders held safety engagements with
contractors and employees across the business. The success ofour safety programs helped reduce the number of events withthe potential to cause a fatality by 7 per cent, which is a criticalindicator of our future safety performance across our business.
However, we had a slight rise in total recordable injury frequency
to 4.7 per million hours worked. Though we are encouraged by the
success of our safety leadership program, we know we have more
to do to make our workplace safer.

In July, we announced we had set up a five-year US$400 million
Climate Investment Program to find the best technologies andother solutions to reduce GHG emissions from our businessand across our value chain.

This year, we introduced significant changes to the way we engage
and manage contractors given they comprise two-thirds of ourworkforce. We also took a leadership role within the International
Council on Minerals and Metals to strengthen the health and safety
performance of our contract suppliers.

BHP Sustainability Report 2019

This year, we launched our Water Stewardship Position Statementthat outlines our vision for a water secure world by 2030. It setsout our actions to improve water management within ouroperations and contribute to more effective water governancebeyond our business. Since 2011, BHP contributed more than
US$75 million towards conservation to improve biodiversity,
climate and water outcomes.

3Chief Executive Officer’s Review continued

Community

BHP’s success depends on healthy, prosperous and engaged global
communities. Success is measured by the value communities placeon our presence and whether we achieve environmental andeconomic sustainability. We have made good progress inmeeting our five-year community targets that tackle a numberof sustainable development challenges.
This Report also examines progress towards our 2025 aspirationof gender balance. This includes our push for more flexible ways
of working and a respectful culture that boost our inclusivity
and diversity.
As part of our social value commitment, we publicly endorsed
the Uluru Statement from the Heart in January 2019, which calls
for a greater voice and constitutional recognition for Indigenous
Australians. Our partnerships with Traditional Owners of the landon which we operate are important to us and critical to ourbusiness so we support their actions to elevate Indigenous voices.
In FY2019, our voluntary social investment totalled US$93.5 million,
including US$55.7 million in direct community development
projects and donations. This was up from US$77.1 million in FY2018.
We are committed to transparency and must never lose sight of
the importance of delivering meaningful gains for our stakeholders
today as we pursue long-term value.
To meet our sustainability challenges and stay at the forefront ofchange, we must continue to invest in a workforce that is genuinely
inclusive and diverse because our people will move us towards
a more sustainable and successful future. I thank them for their
hard work and dedication.

Andrew Mackenzie
Chief Executive Officer

BHP Sustainability Report 20194

About this Sustainability Report• Environment (page 32) shows how we work to minimise
environmental impacts from our operations, tracks ourenvironmental performance and tells how we look beyond
our own operations to support conservation, the sustainable
use of natural environments and how we contribute to resilient
natural ecosystems for future generations.
• Climate change (page 37) discloses data on GHG emissions
and how we manage climate-related risk.
• Water (page 44) discloses data on our water use, performanceand interactions, which follows on from our inaugural BHP Water
Report in 2018.
• The closing three sections of our Report focus on fostering
ethical and respectful relationships with our people; andthe communities, small businesses, Indigenous peoples
and governments of the regions in which we operate.
These sections are:–– Society addresses community concerns, respecting humanrights, our social investment and recognising the traditionalrights of the Indigenous peoples who are the custodiansof the land on which we operate.
–– People tells how we support our global workforce’s wellbeing
and promote an inclusive and diverse corporate culture.
We show how we are tracking against our aspirational goalof gender balance by 2025 and outline the steps we are taking
to ensure women, Indigenous peoples and LGBT+ people want
to work in the resources sector.
–– Ethics and business conduct reinforces our commitment
to transparency and outlines governance of Our Codeof Conduct, including anti-corruption compliance.

This Sustainability Report lays out an overview of BHP’s long-termand ongoing commitment to sustainability, which is underpinned
by Our Charter values and our company purpose: to bring people
and resources together to build a better world.
This Report provides an opportunity for engagement with our
stakeholders, who we know are more concerned than ever about
our short-term delivery and long-term performance in sustainability.
This includes our investors, our communities and our people.
As such, we have endeavoured to provide within this Reporta balanced picture of our progress to date as well as key areas
for improvement. We voluntarily disclose data to be transparent
and keep ourselves accountable.
The data and information published in this Report serve as animportant record of how BHP is performing from year-to-yeararound themes that are critical to a sustainable future. These
themes are both global in nature (such as how we can respondto the impacts of climate change) and more locally focused(such as rehabilitating the natural environment and supportingthe communities in which we operate). All case studies in thisReport are available online at bhp.com.
For ease of reference, data is presented in this Report in thefollowing sections:• Our sustainability approach (page 9) gives an overview of ouractions and strategy, as well as responding to issues of public
interest, such as our response to the Fundão tailings dam failure
in Samarco in 2015 and our subsequent steps toward rehabilitationof the area and resettlement of the community. In this section,
we also disclose our approach to tailings dam management.
• Health and safety (page 25) discloses data around the healthand safety of our workforce. Safety is always our top priority.

BHP Sustainability Report 20195

About this Sustainability Report continued

Our reporting approach

As such, information and data in this Sustainability Report relating
to the Group (other than FY2019 safety performance data) has
been presented on a Continuing and Discontinued operations
basis to include the contribution from Onshore US assets prior
to completion of their sale, unless otherwise stated. FY2019 safety
performance data in this Sustainability Report has been presented
on a Continuing and Discontinued operations basis to include thecontribution from Onshore US assets to 28 February 2019.

We pride ourselves on voluntarily and transparently disclosing datausing sustainability guidelines, standards and recommendations
informed by external sources. This year, for the first time, we report
data on our tailings dams.
This Sustainability Report aligns with the International Council on
Mining and Metals (ICMM) Sustainable Development Frameworkand is prepared in accordance with the Global Reporting Initiative(GRI) Standards comprehensive-level reporting.

Continuing operations means the assets, operations and entities
that are owned and/or operated by BHP, excluding Onshore US
and assets, operations and entities included in the demergerof South32. For FY2014 to FY2019, Discontinued operations
includes the assets, operations and entities that were owned
by and/or operated by BHP during FY2019 and sold as part of
our Onshore US sale, which was announced on 27 June 2018.
For FY2014 to FY2015, Discontinued operations also includes
assets, operations and entities that were owned and/or operated
by BHP during FY2015 and demerged into a new company(South32) on 25 May 2015.

As signatories to the principles of the United Nations Global
Compact (UNGC), this Sustainability Report serves as our UNGC
Communication on Progress on implementation of the principles
and support for its broader development objectives.
More information is available online at bhp.com and we invite
readers to access case study information and topic-specific detail
via this platform. We have obtained external limited assurance over
our Sustainability Report disclosures. Refer to EY’s assurance reportfor the full assurance statement.

On 14 May 2019, BHP announced we would fully integrate Nickel
West into the BHP Operating Model. During FY2019, Nickel Westwas not fully integrated into our Operating Model. Accordingly,
it was granted exemptions from certain Our Requirements
standards, including the requirements to conduct a human rights
impact assessment every three years, and have a quantified waterbalance model (unless required by a material risk). Statements inthis Sustainability Report concerning these matters do not apply
to Nickel West. It is expected that Nickel West will be fully
integrated into our Operational Model in FY2020.

Reporting boundary and scopeThis Sustainability Report covers BHP’s assets (including thoseunder exploration, projects in development or execution phases,
sites and closed operations) that have been wholly owned and/or
operated by BHP and assets that have been owned as a joint
venture(1) operated by BHP (referred to in this Sustainability Reportas ‘assets’, or ‘operated assets’ or ‘operations’) during the period
from 1 July 2018 to 30 June 2019. Our functions are also included.
On 28 September 2018, BHP completed the sale of 100 per centof the issued share capital of BHP Billiton Petroleum (Arkansas) Inc.
and 100 per cent of the membership interests in BHP Billiton
Petroleum (Fayetteville) LLC, which held the Fayetteville assets,
for a total cash consideration of US$0.3 billion.

BHP also holds interests in assets that are owned as a joint venture
but not operated by BHP (referred to in this Sustainability Reportas ‘non-operated joint ventures’ or ‘non-operated assets’). Our
non-operated joint ventures are not included within the scopeof this Sustainability Report, unless otherwise stated. Data for
non-operated joint ventures is not presented in this Sustainability
Report, unless otherwise stated. Comparative information includes
divested assets unless otherwise stated.

On 31 October 2018, BHP completed the sale of 100 per centof the issued share capital of Petrohawk Energy Corporation,
the BHP subsidiary which held the Eagle Ford (being Black Hawk
and Hawkville), Haynesville and Permian assets, for a total cash
consideration of US$10.3 billion (less preliminary customarycompletion adjustments of US$0.2 billion).
While the effective date at which the right to economic profitstransferred to the purchasers was 1 July 2018, the Group continued
to control the Onshore US assets until the completion dates of
their respective transactions. In addition, the Group provided
transitional services to the buyer, which ceased in July 2019.

(1) References in this Sustainability Report to a ‘joint venture’ are used for convenience to collectively describe assets that are not wholly owned by BHP. Such references are notintended to characterise the legal relationship between the owners of the asset.

BHP Sustainability Report 20196

About this Sustainability Report continued continued

Forward looking statements

A note on terminology

This Sustainability Report contains forward looking statements,
including statements regarding plans, strategies and objectivesof management; closure or divestment of certain assets,
operations or facilities; and regulatory developments.

In this Sustainability Report, 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 thecontext otherwise requires, their respective subsidiaries as definedin note 13 ‘Related undertakings of the Group’ in section 5.2 of
BHP’s Annual Report 2019 on Form 20-F. Notwithstanding that thisReport may include production, financial and other informationfrom non-operated assets, non-operated assets are not includedin the BHP Group and, as a result, statements regarding ouroperations, assets and values apply only to our operated assets
unless otherwise stated.

Forward looking statements may be identified by the use ofterminology, including, but not limited to, ‘intend’, ‘aim’, ‘project’,‘anticipate’, ‘estimate’, ‘plan’, ‘believe’, ‘expect’, ‘may’, ‘should’,‘will’, ‘continue’ or similar words. These statements discuss future
expectations or provide other forward looking information.
These forward looking statements are not guarantees or predictionsof future performance and involve known and unknown risks,
uncertainties and other factors, many of which are beyond ourcontrol and which may cause actual results to differ materiallyfrom those expressed in the statements contained in thisSustainability Report. Readers are cautioned not to put undue
reliance on forward looking statements.

The Boards of Directors of BHP Group Limited and BHP Group Plc
are referred to collectively as ‘the Board’.

Actual results may differ materially from those expressed in suchstatements as a result of a variety of factors, including our ability
to profitably produce and transport the minerals, petroleum and/or
metals extracted to applicable markets; the impact of foreign
currency exchange rates on the market prices of the minerals,
petroleum or metals we produce; activities of government
authorities in the countries where we are exploring or developing
projects, facilities or mines, including increases in taxes, changes
in environmental and other regulations and political uncertainty;
labour unrest; and other factors identified in the risk factors set out
in our Annual Report 2019, available online at bhp.com.
Except as required by applicable regulations or by law, BHP does
not undertake to publicly update or review any forward looking
statements, whether as a result of new information or future events.
Past performance cannot be relied on as a guide to future
performance.

Voluntary initiatives and public commitments

BHP Sustainability Report 20197

Our FY2019 sustainability performance

TargetPeopleZero work-related fatalities

Year-on-year improvement of total recordable
injury frequency(3) (TRIF) per million hours worked
50 per cent reduction in the number of workers
potentially exposed (6) to our most material
exposures of diesel particulate matter, respirable
silica and coal mine dust as compared to our
FY2017 (7) baseline by FY2022

Society

Zero significant community events (9)ResultWorkplace fatalities

FY2017:(1) 1
FY2018:(1) 2
FY2019:(2) 1

Total recordable injury frequency

FY2018:(4) 4.4
FY2019:(5) 4.7

Occupational exposures reduction

Adjusted FY2017
baseline: 4,266
FY2019:(8) 2,192

1

4.7

49%
0

Not less than 1 per cent of pre-tax profits (10) invested
in community programs that contribute to improved
quality of life in host communities where we havea presence and support the achievement of the
UN Sustainable Development Goals

US$93.5 million

By FY2022, implement our Indigenous Peoples
Strategy across all our assets through thedevelopment of Regional Indigenous Peoples Plans

Regional Indigenous
Peoples Plans

Community investment spend(11)

FY2017: (12) US$80.1 million
FY2018: (12) US$77.1 million
FY2019: (13) US$93.5 million

Protecting the Environment

ClimateChangedeveloped across all
geographically relevant assets
By FY2022, maintain operational (Scope 1 and 2)
GHG emissions at or below FY2017 levels(14)(15)
while we continue to grow our business

Zero significant environmental events (9)Reduce FY2022 fresh water withdrawal(18) by
15 per cent from FY2017(19) levels

By FY2022, improve marine and terrestrial
biodiversity outcomes by developing aframework to evaluate and verify the benefitsof our actions, in collaboration with others

Greenhouse gas emissions

3%

below FY2017 baseline(14)FY2018: (16) 16.5 million
tonnes carbon dioxide
equivalent (Mt CO2-e)
FY2019: (17) 14.7 Mt CO2-e

01%fresh water withdrawal reduction

Adjusted FY2017
baseline: (18) 157,320 ML
FY2019 freshwater
withdrawal:(19) 155,500 ML

Progressed developmentof framework

to evaluate and verify the benefits of ouractions, in collaboration with others(1) FY2017 and FY2018 data includes Continuing and Discontinued operations (Onshore US assets).
(2) FY2019 data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations.
(3) The sum of (fatalities + lost-time cases + restricted work cases + medical treatment cases) multiplied by 1 million ÷ actual hours worked by our employees and contractors. Stated in units ofper million hours worked. We adopt the US Government’s Occupational Safety and Health Administration Guidelines for the recording and reporting of occupational injuries and illnesses.
(4) FY2018 TRIF data includes Continuing and Discontinued operations (Onshore US assets).
(5) FY2019 TRIF data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations.
(6) For exposures exceeding our FY2017 baseline occupational exposure limits discounting the use of personal protective equipment, where required. The baseline exposure profile (as at
30 June 2017) is derived through a combination of quantitative exposure measurements and qualitative assessments undertaken by specialist occupational hygienists consistent withbest practice as defined by the American Industrial Hygiene Association.
(7) New FY2017 baseline due to the removal of 98 exposures attributed to the Petroleum Onshore US assets.
(8) Data excludes Discontinued operations (Onshore US assets).
(9) A significant event, resulting from BHP operated activities, is one with a severity rating of four and above, based on our internal severity rating scale (tiered from one to five by increasing
severity) as defined in the revised Our Requirements for Risk Management standard.
(10) Our voluntary social investment is calculated as 1 per cent of the average of the previous three years’ pre-tax profit.
(11) Expenditure includes BHP’s equity share for operated and non-operated joint ventures, and comprises cash, administrative costs, including costs to facilitate the operation of the BHP Foundation.
(12) FY2017 and FY2018 social investment figures include Continuing operations and Discontinued operations (Onshore US assets).
(13) FY2019 social investment figure includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
(14) Comparison calculated on a Continuing operations basis. The FY2017 baseline has been adjusted for the divestment of our Onshore US assets to ensure onoing comparability of performance.
(15) With the use of carbon offsets, as required.
(16) FY2018 GHG data includes Continuing operations and Discontinued operations (Onshore US assets).
(17) FY2019 GHG data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
(18) The FY2017 baseline data has been adjusted to account for the materiality of the strike affecting water withdrawals at Escondida in FY2017 and improvements to water balance methodologies
at WAIO and Queensland Coal in FY2019. Discontinued operations (Onshore US assets) have been excluded.
(19) Where ‘withdrawal’ is defined as water withdrawn and intended or use (in accordance with ‘A Practical Guide to Consistent Water Reporting’, ICMM (2017)). ‘Freshwater’ is defined as waters
other than sea water, waste water from third parties and hypersaline ground water. Freshwater withdrawal also excludes entrained water that would not be available for other uses. These
exclusions have been made to align with the target’s intent to reduce the use of freshwater sources subject to competition from other users or the environment.
BHP Sustainability Report 20198

Our sustainability
approach
Sustainability is one of BHP’s corevalues. It means putting health andsafety first, being environmentally
responsible and supporting thecommunities in which we operate.
The wellbeing of our people, thecommunity and the environment
is considered in everything we do.
But it goes beyond that – we arecommitted to making a positive
contribution to a sustainable future
for all by acknowledging andresponding to global issues.
BHP Sustainability Report 2019

In this section:
Why sustainability is important to us
Our purpose
Our contribution to social value
Social value highlights
Sustainability at BHP
Contributing to sustainable development
Sustainability governance
Sustainability targets
How we manage sustainability
Our material sustainability issues
Promoting sustainability in our value chain
Sustainability at our non-operated minerals joint
ventures and petroleum non-operated assets
SamarcoTailings dams

9

Our sustainability approach

Why sustainability is important to us

BHP has long been committed to building a sustainable future. Demand will continue to grow for our natural
resources as the world shifts to a decarbonised future. We keep our asset portfolio simple, with an increased
focus on commodities that will shape a greener world and continue to power economic growth.
Our Charter. Since then, we have evolved as the external businesslandscape has changed. While value creation is central to what wedo, this purpose did not fully reflect the story behind why we exist.
We believed our purpose must encompass all of our stakeholders
and more accurately capture our long-term approach.

Our exploration activities are heavily copper focused, for example,
as copper plays an important role in creating cleaner renewableenergy. Recyclable, durable and highly conductive, copper is an
essential component in electric vehicles and wind turbines.
To responsibly meet future demand for our commodities, we must
invest in a diverse and highly skilled workforce and sustainable
processes and practices.

To better understand the relationship between our purpose
and stakeholders, we consulted retail and institutional investors,
community leaders, customers, suppliers and our people in early2018. They said a revised purpose must have people front andcentre, it should not shy away from the fact we are a resources
company and it must demonstrate how we make a broader
contribution to the world.

At BHP, we know we must build trust and forge mutually beneficial
partnerships for the long-term because the value we create
together is central to shareholder value. As such, our successis not just measured in profitability; we also seek to create social
value. Social value is an important barometer of our performance
because it measures our ability to produce strong safety outcomes,
meaningfully contribute to communities, build environmental
resilience and uphold human rights. We embrace inclusion anddiversity in our workforce, empower and advocate for Indigenous
peoples and encourage business across our supply chain to adopt
a similar commitment to sustainability.

Following a year of feedback and testing with more than 1,000
employees, BHP’s Board endorsed our new purpose as: to bringpeople and resources together to build a better world.
Our new purpose reflects a spirit, approach and ambition that
already exists at BHP and will guide us in everything we do. Creating
long-term shareholder value remains a strategic imperative. Withoutthat focus, BHP would not exist because our shareholders entrust
us with their funds and expect competitive returns.

In 1997, we set global sustainability targets for the first time and in
2011, Our Charter was revised to include Sustainability as a corevalue. This year, we updated our company purpose to recognise
the vital role our people play in our success and the broader
contribution we make.

Our contribution to social value

To fulfil our purpose, we have evolved our thinking about ourpartnerships with the communities where we operate andour contribution to society and the environment more broadly.

On a global level, we are committed to playing our part in creatinga sustainable future by acknowledging and responding to risks that
impact everyone, such as climate change and water availability.

For many years, BHP has maintained relationships and achievedsocial, environmental and economic outcomes that werenecessary to operate, otherwise referred to as social licence.
However, we believe this is no longer enough to maintain
BHP’s long-term success. Our focus has shifted to identifying
opportunities that contribute to social value, while continuing
to meet our legal, regulatory and ethical requirements.

We use international benchmarks to track our performance, suchas the United Nations (UN) Sustainable Development Goals andthe International Council on Mining and Metals (ICMM) principles.
We also conduct an annual materiality assessment to identify key
sustainability issues for BHP. Good governance is essential to thesuccess of our sustainability approach, with oversight from theBoard and a dedicated Sustainability Committee.

The long-term success of our business depends on the long-term
health of society and a sustainable natural environment; ourapproach must be about the long-term value we can create
together with our stakeholders. If we do not do this well, our ability
to earn and maintain the trust of our stakeholders, attract the rightemployees and secure access to capital, resources and markets
will be hampered.

Our purpose

For more than 130 years, BHP has sought to operate a safe,
sustainable and productive business that makes a faircontribution to society. As custodians of natural resources, wehave a responsibility to shape the future in a way that creates
prosperity for shareholders, our communities and society.

Importantly, social value is not new to BHP – there are already many
examples of BHP’s contribution to social value: from global water
stewardship and Indigenous advocacy to our Local Buying Program.

In 2011, BHP expressed its purpose as the creation of long-term
shareholder value. That statement of purpose was laid out in'Social value is our contribution to society– to our people, partners, economy,
environment and the local communities.'
Ken MacKenzie
BHP Chairman

BHP Sustainability Report 201910

Our sustainability approach continued

Social value highlights

1925

BHP Safety First campaign was launched with medical practitioners hired to provide support to our
workforce and their families.

1930

The People’s Fund was established to provide education, medical and social services to our workforce.

1947

The Female Staff Provident Fund was introduced, recognising the contribution of the women in BHP’s workforce.

1996

BHP acknowledged scientific consensus on climate change and committed to a range of operational projects toimprove energy efficiency and address greenhouse gas emissions.

1997

BHP set global sustainability targets for the first time and sustainability reporting began with BHP producing
its first Environmental Report.

2000

A social investment target of not less than one per cent of pre-tax profits was established. In 2001, $19.3 million
was invested.

2002

BHP Billiton committed to the United Nations Global Compact and its principles, which address human rights,
labour standards and the environment.

2008

The World-Class Supplier Program in Chile was launched, to engage local suppliers to develop innovative solutions
to manage our operations and help build world-class suppliers that can export their services around the world.

2009

BHP Billiton Sustainable Communities, the precursor to the BHP Foundation, was established to partnerwith organisations to deliver large-scale, long-term social and environmental development projects.

2012

Our Local Buying Program was established with an emphasis on building better relationships between ouroperations and local small businesses, to build local capacity and capability.

2016

Gender balance by 2025 was set as an aspirational goal, from a base of 17 per cent female representation.

2017

BHP is one of the first companies in the world to adopt the recommendations of the Task force on Climate-related
Financial Disclosures.

2018

Our inaugural Water Report was published.

2019

The Uluru Statement from the Heart was endorsed by BHP, supporting a greater voice and constitutionalrecognition for Indigenous Australians.

2019

We announced a Climate Investment Program of US$400 million over five years to invest in and develop
technologies to reduce emissions.

2019

We launched our Water Stewardship Position Statement, further demonstrating our commitment towards water
security and stewardship.

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Sustainability at BHP

Sustainability governance

BHP aims for the best culture and capabilities in the best
commodities, with the best assets, underpinned by a strong
balance sheet and capital allocation process.

BHP’s Board oversees our approach to sustainability, with theBoard’s Sustainability Committee having oversight of health,safety, environmental and community (HSEC) matters andassisting the Board with governance and monitoring. Membersof the Sustainability Committee are Non-executive Directors
determined by the Board to have appropriate skills in HSEC
matters. Members of the Sustainability Committee in FY2019
were Malcolm Broomhead, Ian Cockerill (from 1 April 2019),
Ken MacKenzie (until 1 April 2019) and John Mogford.

Our success depends on the value communities place on ourcontribution. We cannot succeed without access to high-quality
resources and people. We must form and maintain respectful andreciprocal partnerships with our stakeholders, embed long-termsocial, environmental and economic performance into ourplanning and decision-making and demonstrate the highest
environmental, health and safety standards in our operations.

The Sustainability Committee also oversees the adequacy of thesystems to identify and manage HSEC-related risks, legal andregulatory compliance and overall HSEC and other human rights
performance. The Board’s Risk and Audit Committee assists withoversight of the Group’s risk management systems. For more
information, refer to section 2.13 of our Annual Report 2019.

Sustainability is a core value set out in Our Charter. That means
putting health and safety first, being environmentally responsible
and supporting the communities in which we work.

Contributing to sustainable development

The Sustainability Committee recommends to the Board theapproval of the Sustainability Report for publication. The Committee
also guides the Remuneration Committee in setting HSEC-related
scorecard targets and offers guidance to the Remuneration
Committee of the evaluation of performance against those targets.

The UN Sustainable Development Goals (SDGs) are ambitious
goals to improve the wellbeing of present and future generations.
The 17 SDGs promote sustainable development to tackle theworld’s most pressing challenges.
We contribute towards the achievement of the SDGs through:For more information about the Sustainability Committee and its
work, refer to section 2.13 of our Annual Report 2019.

• our direct business activities – the products we produce andthe way we produce them;• the taxes and royalties we pay that host governments use,the direct and indirect employment opportunities we create
and our supply chain; and• our voluntary social investment.

Our stakeholders

BHP is committed to building strong relationships with our
stakeholders to achieve long-term sustainable social,environmental and economic outcomes. At a global and regional
level, we participate in government consultations and voluntary
initiatives, and engage with industry associations to support
positive change and sustainable practices. Locally, our assets
develop reciprocal relationships with communities and plan,
implement and document stakeholder engagement activities.
For a detailed description of our stakeholders, their interestsand how we engage with them, refer to our Sustainability
Reporting Navigator at bhp.com.

This approach means we can work in genuine partnership withothers towards shared outcomes.

Bringing our people together is an intrinsic part of our purpose.
Our leaders and managers regularly communicate our visionand goals, and encourage feedback and comment from ourpeople through internal communication channels and surveys.
For more information, refer to the People section.

Sustainability targets

We set clear targets to challenge ourselves to improve oursustainability performance, transparency and accountability.
To realise these targets, we embed sustainability performancemeasures throughout the Group. They include Group-wide
key performance indicators to balanced scorecards forindividual employees.
Our five-year targets set in FY2017 help us to operate safely,
manage water sustainably, reduce our environmental impact,
look after our people and contribute to improved quality of lifein the communities where we have a presence. These targets
were created in consultation with our assets and key internaland external stakeholders, and approved by the Sustainability
Committee. Achieving these goals is fundamental to the successof our business and our commitments to the objectives of theParis Agreement and the SDGs. They are outlined earlier in Our
FY2019 sustainability performance and in each relevant section.

BHP Sustainability Committee members visit Broadmeadow Mine, Queensland.

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Forum on Corporate Responsibility
To help us engage with our stakeholders and ensure we have access to leading specialist expertise, we regularly
seek advice from external experts and forums on sustainability issues.
The BHP Forum on Corporate Responsibility (the Forum) is a key part of our stakeholder engagement program.
The Forum comprises nine independent civil society leaders in various fields of sustainability, who make a vitally
important contribution to our approach to a range of social and environmental issues and the development of
our standards. They provide insight into current and emerging issues, challenge our thinking and allow us tounderstand and consider the broader impacts of our actions. The Forum members advise our operational
management teams as well as BHP’s Sustainability Committee and Board.
The Forum met twice during FY2019 and discussed a range of topics, such as BHP’s Water Stewardship Position
Statement, social value and purpose, and advocacy for Indigenous peoples. The future of work at BHP was also
discussed, including the impacts and opportunities arising from automation. Members during FY2019 included:• Professor Yaa Ntiamoa-Baidu, Centre for African Wetlands, University of Ghana (Ghana)• Professor Michael (Mick) Dodson, Treaty Commissioner (Northern Territory) and Professor Emeritus,
Australian National University• Catalina Cock Duque, Executive Director, Fundación Mi Sangre (Colombia)• Cristina Echavarria, Board Member, Alliance for Responsible Mining (Colombia)• Professor Don Henry, Public Policy Fellow – Environmentalism, University of Melbourne (Australia)• Dr Simon Longstaff, Executive Director, The Ethics Centre (Australia)• Ray Offenheiser, Director, Notre Dame Initiative for Global Development (USA)• Phil Vernon, Independent Peacebuilding and International Development Expert (United Kingdom)• Changhua Wu, China/Asia Director, Office of Jeremy Rifkin (China)

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How we manage sustainability

commercial; people and culture; health and safety; environment,
climate change and community; technology, innovation andsystems; financial management and legal, compliance andstakeholder management. The revised Framework evaluates thefull risk exposure and the aggregate impact of cumulative risks.
Our risk management is monitored against our defined risk
appetite through key risk indicators at the enterprise level andthrough regular and ad hoc reviews of risks and controls for eachindividual risk.

We are committed to complying with the laws and regulationsof the jurisdictions in which we operate and aim to exceed legal
and regulatory requirements where they are less stringent thanour own.
We set clear sustainability accountabilities. Everyone involved in
our operations and our functions is guided in the execution ofthese accountabilities by Our Charter and supported by Our Codeof Conduct and the Our Requirements standards. These standards
and related functional controlled documents set out our mandatory
minimum performance and establish the requirements for
management systems at our assets. They are consistent with
the ICMM Sustainable Development Framework, the UN Global
Compact, the UN Declaration of Human Rights and the Voluntary
Principles on Security and Human Rights.

A ‘three lines of defence’ model of risk governance and management
outlines how responsibilities for risk management are divided
between business owners, standard setters and internal audit.
This enables operational management to own and verify risks,
supported by the relevant functions and is independently assured
by our Internal Audit and Advisory (IAA) team.
We embed risk management in critical business activities and theprocesses and systems of our assets and functions through acommon global risk process. Our assets and functions are required
to identify and manage current and emerging material risks acrossour business activities, functions and processes in accordancewith the Our Requirements for Risk Management standard.

Although these standards are for internal use, we have made the
HSEC-related elements of several of the Our Requirements
standards and related functional controlled documents publicly
available on our website (bhp.com), where we believe they clarify
our management approach and where there is a broader
community or industry benefit.

IAA evaluates the design and effectiveness of our sustainability
processes each year. These results help improve these processes
and are reported to the Executive Leadership Team and senior
operational leaders, with summary reports provided to the
Sustainability Committee and the Risk and Audit Committee.

Managing risk

BHP applies a Risk Framework to identify and manage risks. In
FY2019, we refined the Framework, which allows us to consistently
apply a risk-based approach to sustainability. The Framework
includes a Group Risk Architecture through which we consider thematerial risk impact on all categories of risk. This covers: strategy;
exploration, growth and development; production and operations;

We have obtained external limited assurance over our Sustainability
Report disclosures. Refer to EY’s assurance statement at the endof this Sustainability Report.

Keeping ourselves accountable

Through reporting, we are accountable to our stakeholders
for results.

Results
Targets

Identifying metrics and indicators to track performance and setting
clear targets challenge us, drive improvement and allow stakeholders
to assess our performance in the areas that matter most.

Metrics/indicators
Systems

Our Requirements standards are the foundation for developing
and implementing effective management solutions.

Our Requirements standards

Our Code of Conduct supports Our Charter and reflects manyof the standards and procedures applied throughout BHP.

Our Code of Conduct

Our Charter articulates our common purpose, our values, how wemeasure success and is the basis for decision-making.

Our Charter

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Our sustainability approach continued

Our material sustainability issues

Water, dams, tailings and climate change are critical issues forus as they have the potential to impact safety, the environment
and the community and have the potential to impact our ability
to continue to operate and grow. The issue of trust in institutions
and corporations was assessed as a material concern for BHP in
FY2019. This drives our concerted efforts to build trust with all our
stakeholders. The issues identified by the materiality assessment
conducted in FY2019 are outlined below and include links to othersections in this Report, our Annual Report 2019 or online.

We conduct a materiality assessment each year to identify thesustainability issues that are most critical to our business andstakeholders. We also assess the impact our activities have on theeconomy, the environment and society.
We review a wide variety of internal and external sources and consult
with stakeholders using surveys, investor round tables and advisorygroups to identify the issues of most concern to them and to ourbusiness. The Sustainability Committee reviews the assessment
and provides feedback on the issues. The Forum on Corporate
Responsibility reviewed the methodology in November 2018.

Our materiality assessment and stakeholder engagement processes
are detailed in our Sustainability Reporting Navigator 2019 available
online at bhp.com.

This helps us to track ongoing issues and identify emerging ones.
The materiality assessment informs our sustainability strategies
and provides transparent coverage of key topics in line with Global
Reporting Initiative (GRI) principles.

Our material issues

Page

Our sustainability approach9• Trust in institutions• Board competency, succession and accountability• Governance and management of our non-operated joint ventures• Response to Samarco• Product stewardship• Dams and tailings management
Health and safety

25• Safety and health of our people and the community
Environment

32• Biodiversity and land management• Environmental impacts of our operations• Managing air emissions
Climate change37• Portfolio resilience• Physical impacts of climate change• Minimising greenhouse gas emissions from our operations and from the use of our products• Global response to climate change
Water

44

• Water management and accessSociety58• Community relationships• Respecting human rights• Indigenous peoples• Automation• Economic support for communities and social investment
People70• Inclusion and diversity• Training and development of our people
Ethics and business conduct74• Anti-corruption and bribery• Transparency and disclosure
Economic Contribution Report

Online at bhp.com• Tax and royalty payments

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Our sustainability approach continued

Promoting sustainability in our value chain

Product stewardshipAs a leading global resources company, we must work with ourcustomers, suppliers and other value chain participants to promotesustainable practices across the full life cycle of our products.

BHP encourages the responsible design, use, reuse, recycling anddisposal of our products throughout our value chain, in line with
the ICMM Sustainable Development Framework.

Sustainable procurement

We support industry association programs and other initiatives
that bring together participants in a product’s life cycle to improvesustainability performance. For example, we support Responsible
Steel and the European Copper Institute’s product stewardshipinitiatives, and participate in the ICMM Materials Stewardship
Facility. In FY2019, we participated in the London Metal Exchange’s
consultation on responsible sourcing standards, and in thedevelopment of the Copper Mark, a new assurance program for
responsible copper production established by the International
Copper Association.

We encourage the people we work with to put sustainability at
the heart of their operations. Contractors working at our assets
are required to comply with our HSEC standards. We are focusedon how we can support suppliers and service providers to adopt
sustainable business standards in health, safety, human rights,
anti-corruption and environmental protection that are as rigorous
as our own. We also look for opportunities to minimise safety,
health, human rights, environmental and climate impacts
throughout our value chain.

Where possible, BHP also works directly with those involved inprocessing and using our products to improve environmental
performance throughout the value chain, and to promote thesustainable use of our products. For example, we work withindividual customers to design and test raw material blends
that optimise environmental performance. We also collaborate
on research with customers, industry bodies and academia to
identify sustainable product and process improvements.

We use a risk-based approach to identify potential suppliers toassess their compliance against our requirements that is basedon a combination of questionnaires, due diligence and third
party data.
New supplier management processes introduced in FY2018 havestrengthened our compliance controls, particularly in relation toanti-corruption and sanctions. In FY2019, we began integrating
human rights due diligence into our supplier management
processes. This includes steps to encourage them to improve
human rights risk management (including modern slavery)
among subcontractors and across their own supply chain.
To read more, refer to Respecting human rights.

In FY2020, we will develop a more strategic and integrated
approach to addressing sustainability across our value chain.
The strategy will consider our procurement processes, productdesign and placement, and our stewardship role in promoting
sustainability throughout our products’ life cycles.

Sustainable shipping

BHP is one of the largest global shippers of bulk commodities.
We engage with industry bodies, governments and regulators toleverage technological developments and promote improvements
in sustainability standards. We continue to take a collaborative
approach to better understand human rights and ethics risks(including the potential for forced labour and unacceptableworking conditions) that seafarers may be exposed to, and identify
opportunities to improve our processes, particularly with respect
to our own charter vessels.
GHG emissions resulting from the transportation and distributionof our products represent a significant source of Scope 3 emissions.
We are working on initiatives to reduce freight emissions associatedwith our business and to encourage immediate and long-termchange in the shipping industry.
BHP is a part-owner and collaborator with RightShip, a leading
maritime risk management and environmental assessment
organisation that has developed a GHG emissions rating for
all dry bulk vessels. Adopting this rating allowed us to eliminate
the poorest rated vessels from our chartered fleet and make
immediate emissions reductions.
The development of liquefied natural gas (LNG) as a bunker fuel isa priority and we are working to bring LNG-fuelled dry bulk vessels
to BHP’s supply chain. LNG is projected to produce 25 per cent lesscarbon dioxide than marine diesel as well as almost zero sulphur,which is a major contributor to harmful air pollution.
The use of biofuel for dry bulk shipping is also promising in termsof reducing GHG emissions in the longer term. BHP is supporting
the trial of second generation biofuel as an alternative fuel sourcefor dry bulk vessels with the Singapore Maritime and Port Authority.
For more information, read our case study BHP embraces
emissions reduction innovations in shipping industry at
bhp.com/community/case-studies.

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Our sustainability approach continued

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

point of accountability for all NOJVs within BHP. While NOJVs havetheir own operating and management standards, we encourage
operator companies to adopt appropriate governance and risk
management standards (within the limits of the relevant joint
venture agreements).

BHP holds interests in companies and joint ventures that we
do not operate. These are described in our Annual Report 2019,
which is available online at bhp.com.

We have performed BHP Field Leadership Program activities acrossvarious NOJV sites. These activities are designed to facilitate safe
work discussions to identify potential safety issues, promote near
miss and hazard reporting and to use real-time safety
investigations to improve awareness and culture. The goal of theField Leadership Program is to promote a resilient safety culture
where employees are able to identify positive behaviours, at-risk
behaviours and opportunities for system improvement.

Petroleum non-operated assets

In our current petroleum non-operated assets, we have processes
in place to identify and manage risks within the rights afforded by
the respective joint operating agreements. This includes (aspermitted by the relevant operator and/or joint operating
arrangements) verification of risk control strategies through fieldvisits, review and analysis of the operator’s performance data,
participation in operator audits and sharing BHP risk management
strategies and processes.

We challenge our NOJV operators to reduce the risk of water andair quality impacts for workers and communities, and request that
communities are adequately consulted, informed and have accessto appropriate complaints and grievance mechanisms. We aim tostrengthen our NOJVs’ compliance with national regulations andalignment with the ICMM Sustainable Development Framework.

Non-operated minerals joint ventures

Our non-operated minerals joint ventures include Antamina(33.75 per cent ownership), Cerrejón (33.33 per cent ownership),Resolution (45 per cent ownership), Samarco (50 per centownership) and Nimba (45.45 per cent ownership) (NOJVs).

More information on our NOJVs is available in our Annual Report 2019,available online at bhp.com.

Our Non-Operated Joint Ventures team engages with our nonoperated joint venture (NOJV) partners and companies and otherrelevant internal and external stakeholders, and provides a single

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Our sustainability approach continued

SamarcoThe Fundão dam failure

On 5 November 2015, the Fundão tailings dam operated by Samarco
Mineração S.A. (Samarco) failed. Samarco is a non-operated joint
venture owned by BHP Billiton Brasil Limitada (BHP Billiton Brasil)and Vale S.A. (Vale), with each having a 50 per cent shareholding.
A significant volume of tailings (water and mud-like waste resulting
from the iron ore beneficiation process) was released. Tragically,
19 people died – five community members and 14 people who
were working on the dam when it failed. The communities of Bento
Rodrigues, Gesteira and Paracatu were flooded. A number of othercommunities further downstream in the states of Minas Gerais andEspírito Santo were also affected by the tailings, as was theenvironment of the Rio Doce basin.

Monitoring of the Doce river water.

Our response and support for
Fundação Renova

More than three years into the recovery process, we remaincommitted to doing the right thing for the people and theenvironment in the Rio Doce region in a challenging andcomplex operating context.
The Framework Agreement entered into between Samarco, Valeand BHP Billiton Brasil and the relevant Brazilian authorities inMarch 2016 established Fundação Renova, a not-for-profit, private
foundation that has developed and is implementing 42 remediationand compensatory programs to restore the environment andre-establish affected communities. As well as remediating theimpacts of the dam failure, Fundação Renova is implementing
a range of compensatory actions aimed at leaving a lasting,positive legacy for the people and environment of the Rio Doce.

Houses being built in Bento Rodrigues.

Brasil and the Interfederative Committee. In the near term,
representatives of impacted communities are also expected
to join the Board of Governors. The Board of Governors appoints
an Executive Board, including the CEO, which is responsible forthe operational management of Fundação Renova.

BHP is focused on supporting Fundação Renova’s operations
through representation on the Board of Governors and Board
Committees, making available secondees who work within
Fundação Renova to provide their technical expertise on priority
areas, and regular peer engagement on issues such as safety,
risk management, human rights and compliance.

Fundação Renova’s governance structure also comprises a Fiscal
Council, Advisory Council, seven Board Committees, a ComplianceManager and an Ombudsman. The Advisory Council includes
representation from impacted communities and community
development and education experts.

Fundação Renova

Fundação Renova’s staff of approximately 530 people is supported
by about 6,200 contractors. Its CY2019 budget is R$3.1 billion.

On 25 June 2018, Samarco, Vale and BHP Billiton Brasil signed
a Governance Agreement with the other parties to the Framework
Agreement, the Public Prosecutors Office and the Public Defense
Office. The Governance Agreement augments the participationof impacted people in the decision-making process, throughrepresentation on both the Fundação Renova Board of Governors
and the Interfederative Committee.

The activities of Fundação Renova are overseen by an Interfederative
Committee comprising representatives from the Brazilian Federal
and State Governments, local municipalities, environmental
agencies, impacted communities and the Public Defense Office,who monitor, guide and assess the progress of actions agreed
in the Framework Agreement. The Interfederative Committee
is supported by the Technical Chambers, made up of specialists
from the various government departments, which are establishedto assist the Interfederative Committee in the performance of its
purpose of guiding, monitoring and supervising the execution of
the socio-economic and socio-environmental programs managed
by Fundação Renova. There are 11 Technical Chambers in thefollowing areas: communication, participation, dialogue andsocial control; economy and innovation; social organisation andemergency aid; Indigenous peoples and traditional communities;
reconstruction and infrastructure recovery; health, education,
culture, leisure and information; conservation and biodiversity;
tailings and environmental safety management; forestry restoration
and water production; and water safety and quality.

In addition, during FY2019, a network of 18 local commissions,
made up of affected people, was established along the Rio Doceto represent the affected people in the governance process forfull reparation of the damages.
Participants in the local commissions will be offered training by
the technical advisers (non-profit organisations that aim to defend
the rights of affected people, providing access to information andproviding technical guidance) to enable them to actively participate
in the process by submitting proposals, recommendations andcomments on the work of the Interfederative Committee, Technical
Chambers and Fundação Renova. Each commission should also
be able to work with other local commissions to discuss andimprove the results in each territory. Due to the diversity, scaleand complexity of the programs, Fundação Renova collaborates
and engages broadly with affected communities, scientific andacademic institutions, regulators and civil society.

Fundação Renova is governed by a Board of Governors, currently
comprising representatives nominated by Vale, BHP Billiton

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Our sustainability approach continued

First house-building works in Bento Rodrigues.

Resettlement

In Paracatu, by June 2019, all licences and authorisations tocommence construction were granted and works to prepare
the construction site were under way (117 houses).

One of Fundação Renova’s priority social programs is the livelihood
restoration program to relocate and rebuild the communities of
Bento Rodrigues, Paracatu and Gesteira. A key to the success of
this program is the participation of affected community members,
their technical advisers, State Prosecutors, municipal leaders,regulators and other interested parties.

In December 2018, land was purchased for the resettlementof 37 families of Gesteira following a protracted negotiation
with the landowner. The urban plan design is being designedwith the community.

The process involves the identification and acquisition of land,
design and planning for the urban plan, including all infrastructureservices (roads, power, water, drainage, sewerage) and publicbuildings (schools, health centres, squares, sports grounds andreligious buildings), and construction of new houses for the affected
people. The resettlement project provides local employment forcommunity members where possible and support to help affected
people restore their livelihoods.

In addition to these three community resettlements, 14 families
from the rural area chose to rebuild their houses on their previous
property, and of these, six houses have been rebuilt and delivered
to the families.
Eighty-three families have chosen not to live in one of the threevillages or in their previous houses. Fundação Renova is assisting
them. Twenty-two properties have been purchased for thesefamilies (as of June 2019).

In Bento Rodrigues, preparation for construction of the publicschool has commenced and infrastructure works are progressing.
Unfortunately, work is behind schedule due to delays in projectengineering and in the permitting process. Fundação Renova hassigned an agreement to provide additional resources requiredby the municipality to analyse the individual house projects for
permitting approval. Of the 257 houses, as of June 2019, 112
families had concluded the conceptual design of their houses
and around 76 house projects have permits submitted to start
construction. In June 2019, Renova signed Letters of Intent withtwo major Brazilian construction companies to undertake
construction of the houses and infrastructure.

BHP Sustainability Report 2019

Financial assistance and compensation

Fundação Renova had paid R$1.7 billion in indemnification andfinancial aid up to June 2019.
Fundação Renova has distributed about 13,160 financial assistancecards to those whose livelihoods were impacted by the dam failure,including registered and informal commercial fisherfolk who areunable to fish due to the imposition of fishing bans in the Rio Doceand along the coast of Espírito Santo. The payments are designed
to provide those affected with the capacity to support themselves
and their families pending the re-establishment of conditions thatenable them to resume their economic activities.

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Our sustainability approach continued

Fundação Renova is also undertaking Brazil’s largest mediatedcompensation program to fairly compensate all individuals
impacted by the dam failure. It comprises two key components:• The Water Damages component compensated people for
an interruption to public water supplies for seven to 10 days
following the dam failure. Over 268,000 people participatedin the program, and were paid a total of approximately
R$267 million. Between judicial and extrajudicial processes,
about 300,000 settlements have been reached in small claims
filed by impacted people in Minas Gerais and Espírito Santorequesting the payment of moral damages related to theshortage of public water supply.
• The General Damages component covers all other impacts,
including loss of life, injury, property, business impacts, lossof income and moral damages. The program was designed
based on inputs from public agencies, technical entities
and impacted families and has been validated by theInterfederative Committee.

Bento Rodrigues’ paving works.

Compensation represents 36 per cent of Fundação Renova’s
budget, which is approximately R$1 billion for CY2019.

Environmental remediation

Of the 19 fatalities, 16 families have been fully indemnified and one
partially. The remaining two families are still in legal negotiations.

Fundação Renova had successfully concluded works to stabilise
the impacted land areas by June 2019. The riverbanks andfloodplains have been vegetated, river margins have beenstabilised and, in general, water and sediment qualities havereturned to historic conditions. Regarding long-term remediation,
work is continuing with landowners and regulators to define theland use objectives, further interventions that may be required,
and the indicators and monitoring programs that will be used
to demonstrate success of the program.

Other socioeconomic programs

While resettlement, compensation and restoring fishing livelihoods
are an important focus, Fundação Renova continues to implementa wide range of other socioeconomic programs in areas suchas health and social protection, education, small businessdevelopment, economic diversification, Indigenous peoples
and traditional communities (i.e. sand-gold miners):

One of the main concerns held by stakeholders regarding thetailings related to the potential contamination of water, sediment,
soil and biota. Fundação Renova commissioned human healthand ecological risk assessment studies to answer these questions.
Although the tailings have low concentrations of trace metals,
the background concentrations of some elements are elevatedin the area due to previous human activity or natural conditions.
It is therefore important that studies are well designed and results
clearly show the source of any potential health risks. BHP has
been working with Fundação Renova to make sure robust data iscollected, the correct methodologies are applied and clear causes
for any health impacts are identified so that health authorities haveaccurate information to support their decision-making.

• There are two work fronts of Fundação Renova in the area of
health: (i) conducting epidemiological and toxicological studies
to investigate the health risk of tailings and heavy metals fromthe Doce River and to monitor the impact of dust on people’s
lives and (ii) supporting the public management of municipalities
by strengthening existing municipal structures, both in clinicalcare and social protection. In March 2019, more than 60
professionals, including doctors, nurses, social workers andpsychologists hired by Fundação Renova worked in Mariana
and Barra Longa (Minas Gerais).
• Fundacão Renova seeks to promote the local economy tostimulate the resumption of the economic activity of the
impacted region. To promote small business development andeconomic diversification, Fundação Renova launched, amongst
others, a fund of R$40 million, to finance micro and medium
companies with loans ranging from R$10,000 to R$200,000.
• Fundação Renova prioritises the local workforce in repair actions
and in March 2019, reported that 57 per cent of people directly
engaged or engaged via suppliers were from affectedmunicipalities. Fundação Renova’s goal is for this percentage
to stabilise at or exceed 70 per cent.
• Actions to protect and restore the quality of life of Indigenous
peoples and traditional communities aim to repair andcompensate for the social, cultural, environmental and economic
impacts on four communities and a total of 1,600 families. Impact
studies are being developed to be the foundation of an integrated
development action plan to recover the livelihoods of each ofthese communities.

BHP Sustainability Report 2019

Water quality, aquatic habitat and fish surveys are continuing in therivers and coastal zone to understand the impact of the tailings flow
and the rate of recovery of the ecological systems. Results fromthese studies indicate that, while sediment in the river channels
along the spill flow path upstream of the Candonga reservoir
continues to limit the re-establishment of habitats and aquatic fauna
diversity and abundance, the natural sediment transport processes
will ultimately restore suitable habitat. Methods to enhance the rateof habitat recovery in the upstream section of the river closest to
the dam failure are under implementation.
Research institutions have been progressing with studies along
the river and coast required by regulators and prosecutors, withpreliminary results scheduled for late 2019. In May 2019, Brazil’s
National Sanitary Surveillance Agency (ANVISA) attested to thesafety of the consumption of fish and crustaceans from the DoceRiver Basin and the coastal region, within daily limits of 200 grams

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Our sustainability approach continued

Progress on our commitments

per adult and 50 grams per child. Given the significant impacts ofthe fishing bans on the livelihoods of commercial and subsistence
fisherfolk and the social cohesion within their communities,
BHP Billiton Brasil has continued providing technical support toFundação Renova to accelerate the collection of data to address theconcerns of regulators and the community. This includes analysisof the safety of fish for human consumption and the status of fish
populations to support lifting of the fishing bans currently in place.

Following the investigation into the causes of the dam failure,
Samarco and its shareholders identified a number of specificactions to help prevent a similar event from occurring. The actions
were in addition to the overall improvements we identified
to further improve the management of our tailings dams
(as discussed in the Tailings dams section).
Monitoring: A centralised monitoring system and control
room with emergency warning and response protocols has
been established for the Samarco tailings dams. Specificallytrained personnel staff the control room 24 hours a day,seven days a week.

Legal proceedings

BHP Group Limited, BHP Group Plc and BHP Billiton Brasil are
involved in legal proceedings relating to the Samarco dam
failure. For more information on the significant legal proceedings
in which BHP is currently involved, refer to section 6.6 of our
Annual Report 2019.

Dam decommissioning plan: Due to legislative changes in Brazil,
Samarco is currently progressing plans for the accelerated
decommissioning of its upstream tailings dams (the Germano
dam complex). Plans for the decommissioning are at an earlystage and work is in progress on finalising the conceptual design.

Restart

While restart remains a focus and is expected to provide a positiveeffect on livelihoods in impacted communities, restart will only
occur if it is safe, economically viable and has the support ofthe community.

Emergency drills: Emergency drills are conducted once a year,
bringing together the communities, employees and civil defence
to validate the efficiency of the Emergency Response Plan, so thatall parties that may potentially be affected are aware and prepared
to respond in case of an emergency.

Works at the Alegria Sul pit in Samarco’s Germano complex.

BHP Sustainability Report 201921

Our sustainability approach continued

Tailings damsTailings dams are dynamic structures and maintaining theirintegrity requires consideration of a range of factors, including
appropriate engineering design, quality construction, ongoing
operating discipline and effective governance processes.
Nothing is more important than the safety of our people andcommunities. Immediately following the tragic failure of theFundão dam at Samarco in 2015, the BHP Board and senior
management initiated a dam risk review to assess the managementof significant(1) tailings storage facilities,(2) both active and inactive.
This review was in addition to existing review processes alreadybeing undertaken by our operated assets. The review, conductedby a combination of external tailings experts and BHP personnel,
assessed dam design, construction, operations, emergency
response and governance to determine the current level of risk
and the adequacy and effectiveness of controls.

Elliot Lake closed site tailings storage facility, Canada.

actively assisting the International Council on Mining and Metals(ICMM) Tailings Working Group to contribute to improvements intailings storage management across the broader mining industry.

The scope of the review included:• significant tailings facilities across all operated assets andnon-operated joint ventures;• any proposed significant tailings or water dams as part of major
capital projects;• consideration of health, safety, environmental, community andfinancial impacts associated with the failure of a tailings dam,
including the physical impacts of climate change.

Prior to the tragic collapse of the Brumadinho dam at Vale’s ironore operation in Brazil in January 2019, we already had a significant
focus on looking at how we could deliver a step change reduction
in tailings risk. Together with our peers across the resource sector,
Brumadinho further strengthened our resolve to collaborate to
reduce tailings risk by sharing and implementing best practice.
As well as implementing a comprehensive tailings governanceplan, we established an internal Tailings Taskforce team reportingto the Executive Leadership Team and the Board’s Sustainability
Committee. The Taskforce is accountable for the continued
improvement and assurance of our operated tailings storage
facilities, progressing the development of technology to improvetailings management storage, and engaging in the setting of new
international tailings management standards. BHP continues toreview our approach to tailings management as information on
the causes of the Brumadinho dam failure come to light, and willcontinue to consider any industry guidance, standards andregulation as they emerge.

Improvement actions were assigned to address facility-specificfindings. Our Internal Audit and Advisory team subsequently
followed up to assess quality and completeness. These actions
resulted in enhancements such as buttressing of dam walls andinstallation of additional instrumentation to monitor dam integrity.
Following such findings, we have subsequently undertaken and willcontinue to undertake dam safety reviews, which provide external
assurance statements on dam integrity.
Improvement actions were also identified at the Group level toaddress common findings and lessons learned across the Groupso that our approach to dam risk management could be further
improved. As part of this, a central technical team was set up toenhance oversight and assurance. We also increased our investment
in research and development to reduce and eliminate tailings
storage risks, including research into static liquefaction failure
mechanisms and evaluating dewatering of tailings. We are also

We welcome a common, international and independent body tooversee integrity of construction and operation of all tailings
storage facilities across the industry. In addition, we support calls
for greater transparency in tailings management and plan to workwith community, regulatory and financial stakeholders to promote
the application of consistent disclosure that informs better tailings
dam stewardship.

Dam risk management

BHP’s approach to dam risk management at our operated dams
is integrated into our standard approach to risk management,
assurance and continuous improvement with particular focus
on four key areas:
1. Maintenance of dam integrity;
2. Governance of dam facilities;
3. Monitoring, surveillance and review;
4. Emergency preparedness and response.
Supporting this approach to dam risk management at our operated
assets are Group-wide processes of technical support and oversight.
Escondida tailings storage facility, Chile.
(1) Significance was determined as part of the review process taking account of the dam classification under the Canadian Dam Association and/or the Australian National
Committee on Large Dams for both active and inactive facilities.
(2) A tailings storage facility could comprise multiple dams or cells that have: a contiguous, structurally similar interconnected wall, operated under the same tailings disposal
regime, are interdependent for stability, of similar height and risk profile.

BHP Sustainability Report 201922

Our sustainability approach continued

Maintenance of dam integrity

5. Dam safety reviews – conducted by an external third party
as set out below;
6. Tailings review or Stewardship Boards(1) – a panel of qualified
independent individuals established, whose capability iscommensurate with dam significance, under specific termsof reference to review aspects such as the current statusof the dam; any proposed design changes; and outcomesof any inspections or dam safety reviews. The review board
is approved by and accountable to the asset General Manager.

Central to our approach is the recognition that maintaining dam
integrity is a process of continuous assessment that needs to be
maintained for the life (including into closure and post-closure)of a tailings facility. As a result, we have identified five key
dimensions to maintaining dam integrity:
1. Design – the basis of dam design is guided by design criteria
specified through the Australian National Committee on Large
Dams (ANCOLD), the Canadian Dam Association (CDA) andlocal regulation, taking account of dam classification;
2. Construction – quality assurance and quality control acrossall construction phases (from initial construction to dam lifts/
expansions during operation to closure and post closure);
3. Operations and maintenance – operating and maintaining
the dam in accordance with its design requirements;
4. Change management – identifying, assessing and mitigating
the impacts of any changes on dam design and integrity;
5. Monitoring, surveillance and review – ensuring the dam
is functioning as intended.

The type and frequency of monitoring, surveillance and review
is informed by the consequence classification, complexity andoperational status of the dam. Dams that are likely to havea greater level of consequence, as a result of failure, that havegreater technical complexity and that are actively operating
will have monitoring, surveillance and reviews with greater
rigour and frequency.

Dam safety reviews

Dam safety reviews are central to our approach to dam integrity
and continuous improvement. We engage an external engineer
to undertake dam safety reviews consistent with the guidance
provided by the CDA in their 2016 Technical Bulletin on Dam Safety
Reviews. As per this guidance, review frequency is informed by
the dam classification under the CDA.

Governance of dam facilities

We believe that effective governance encompasses a rangeof aspects from the management of change in our businessto appropriately employing and enabling qualified personnel
with clear accountabilities.

Dam safety reviews are detailed processes that include a thoroughreview of dam integrity, dam governance and include a review ofthe dam break assessment and dam consequence classification.
Reviews are led by an external qualified professional engineer(selected for their appropriate level of education, training andexperience), with support and input from other technicalspecialists from fields that may include, for example, hydrology,
geochemistry, seismicity, geotechnical and mechanical. At theconclusion of the review, the qualified professional engineer
provides a signed assurance statement, which includes a commentas to the integrity of the facility.

We have mandated three key roles across our operated assets,accountable to the Asset General Manager of the relevant asset:• Dam Owner – the single point of accountability for maintaining
effective governance and integrity of the tailings storage facility
throughout its life cycle;• Responsible Dam Engineer – a suitably qualified BHP individual
accountable for maintaining overall engineering stewardshipof the facility, including planning, operation, surveillance
and maintenance;• Engineer of Record – an independent, suitably qualified
professional engineer retained by the Dam Owner for the
purpose of maintaining dam design, certifying dam integrity
and supporting the Dam Owner and the Responsible Dam
Engineer on any other matters of a technical nature.

Emergency preparedness and response

We believe the final key element in our approach to dam risk
management is emergency preparedness and response. Our
approach to emergency response planning for our tailings facilities
is designed to be commensurate with risk, with the following steps
taken as appropriate given the risk:

Monitoring, surveillance and review• identifying and monitoring stability and operating conditions,with thresholds that prompt preventive or remedial action;• assessing and mapping the potential impacts from a hypothetical,
significant failure, including infrastructure, communities andenvironment, both on and offsite, regardless of probability;• establishing procedures to assist operations personnel
responding to emergency conditions at the dam;• testing and training in emergency preparedness ranges fromdesktop exercises to full-scale simulations. Desktop and field
drills are scheduled at a frequency commensurate with thelevel of risk of the facility.

Given tailings dams are dynamic structures, we believe effective
monitoring, surveillance and review is central to ongoing dam
integrity and governance. We believe these processes span six
dimensions, with the level of utilisation of each dimension being
dependent on the specific needs of the relevant facility. These six
dimensions include:
1. Monitoring systems – operating in real time or periodically;
2. Routine surveillance – undertaken by operators;
3. Dam inspections – more detailed inspections undertaken
periodically by the Responsible Dam Engineer;
4. Dam safety inspections – annual inspections undertaken by
the external Engineer of Record reviewing aspects acrossboth dam integrity and governance;(1) BHP assesses the dam classification, risk and operational circumstances in determining whether to empanel a tailings review or Stewardship Board. Not all facilities will havetailings reviews or Stewardship Boards. Tailings reviews or Stewardship Boards are either in place or in the process of being established for our operated assets with very highand extreme classified tailings facilities.

BHP Sustainability Report 201923

Our sustainability approach continued

BHP’s operated and non-operated
tailings portfolio

There are nine tailings facilities at our non-operated joint ventures.
All non-operated facilities are located in the Americas. There are
two active tailings facilities: Antamina in Peru, which is ofdownstream/centreline construction and Cantor TSF at Cerrejón
in Colombia, which is of downstream construction. In addition,
there are seven inactive facilities. These include: two upstream
facilities at Samarco (Germano) in Brazil that are being
decommissioned following the February 2019 rulings by theBrazilian Government on upstream dams in Brazil; three upstream
inactive facilities and one inactive modified centreline facility
at Resolution Copper in the United States; and one downstream
inactive facility at Bullmoose in Canada. The highest classification
facilities, rated as extreme, are the downstream facility at
Antamina and the upstream Germano facilities at Samarco.

The following classifications align to the CDA classification
system. It is important to note that the classification is basedon the modelled, hypothetical most significant failure modeand consequences possible without controls, and not on thecurrent physical stability of the dam. It is also important to notethat it is possible for dam classifications to change over time,for example, following changes to the operating context of a dam.
As such, this data represents the status of the portfolio as at May
2019. The dam classification informs the design, surveillance andreview components of risk management and, therefore, dams thatwill likely have a greater level of consequence as a result of failure
will have more rigorous requirements than dams that will havea lesser level of consequence.

More information on dams and tailings is available online at bhp.com.

In total, we have 67 tailings facilities(1) at our operated assets,
29 of which are of upstream design. Of the 67 operated facilities,
we have five classified as extreme and a further 16 classified as veryhigh. Thirteen of our operated facilities are active. The substantial
inactive portfolio (54) at our operated assets is due largely tothe number of historic tailings facilities associated with our
North American legacy assets portfolio.

Classificationof operated
tailings facilities (2)(3)(4)Types of operated
tailings facilities

Operational statusof operated
tailings facilities

Low 20

Upstream 29

Inactive 54(6)Significant 13

Centreline 8

Active 13

High 11

Downstream 16

Very high 16

Other(5) 14

Extreme 5
N/A 2(1) The number of tailings storage facilities is based on the definition agreed to by the ICMM Tailings Advisory Group.
(2) The following classifications align to the CDA classification system. It is important to note that the classification is based on the modelled, hypothetical most significant failuremode and consequences possible without controls, and not on the current physical stability of the dam.
(3) For the purposes of this chart, ANCOLD and other classifications have been converted to their CDA equivalent. Hamburgo and Island Copper tailings facilities are
not considered dams and are, therefore, not subject to classification: Hamburgo TSF at Escondida is an inactive facility where tailings were deposited into a naturaldepression; and Island Copper TSF in Canada, acquired in the 1980s, is also an inactive facility. 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 to not dispose of mine waste rock or tailings in riveror marine environments.
(4) These classifications align to the CDA classification system and reflect the modelled, hypothetical most significant failure mode and consequences possible without controls,
and not the current physical stability of the dam.
(5) Other includes dams of a design that combines upstream, downstream and centerline, and the two non-dam tailings facilities of Hamburgo TSF in Chile and Island Copper
TSF in Canada.
(6) Inactive includes facilities not in operational use, under reclamation, reclaimed, closed and/or in post-closure care and maintenance.

BHP Sustainability Report 201924

Healthand safety
Our highest priority is the healthand safety of those impacted byour operations, including our
employees and contractors,
and the communities in which
we operate. Protecting the healthand wellbeing of our workforce
is vital to our business.

BHP Sustainability Report 2019

In this section:
Our safety performanceContractor safety
High occupancy vehicles
Security, Crisis and Emergency Management,
and Business Continuity plans
Occupational illness
Occupational exposures
Coal mine dust lung diseases
Mental health25

Health and safety

SafetyOur highest priority is the safety of our operations, including our employees and contractors and thecommunities in which we operate. We achieve nothing if we do not do it safely.
Tragically, one of our colleagues died at work on 31 December 2018.
Allan Houston suffered fatal injuries while he was operating a dozer
at BHP Mitsubishi Alliance’s Saraji Mine. After a thoroughinvestigation, we could not determine the direct cause of theincident. However, we identified several areas for improvement
and are actively sharing the learnings from the investigation
throughout our operations, with contract partners and the broader
resources industry.

Safety incident investigations
BHP has a goal of zero work-related fatalities. During FY2019,
we continued to improve investigation processes, leadershipand culture to effectively embed the lessons from safetyincidents across our business.
We prioritise near misses and injuries with fatality potential for
in-depth investigation and appoint those with investigation
expertise to facilitate and lead these investigations. Seniorleaders are actively involved in leading high potential incident
investigations, providing them with an opportunity to learn
through practice, which we believe will positively impact theirability to share lessons and influence learning across their
existing leadership networks and routines.

On 5 November 2018, Western Australia Iron Ore (WAIO)
experienced a train rollaway event. There were no injuries as
our team at Train Control intentionally derailed the train at a time
when it was considered the safest to do so. Post the incident andbefore rail operations recommenced, we implemented additional
procedures to help prevent a similar event from re-occurring.
In FY2019, we established new requirements for engaging andmanaging contractors. The contractor safety requirements
were rolled out across BHP and assurance programs havebeen established to monitor and verify the implementationof the requirements.

Organisational, cultural and leadership factors are examined
to understand whether they have contributed to an incident.
A repository of investigation findings from across the Group
is available to our people, with investigation findings presented
in a standard format that can be filtered and searched.

To strengthen our safety leadership and culture, we are educating
our people about chronic unease, that is, being mindful of thepossibility of what could go wrong, and creating a culture where
it is safe to speak up and report hazards and incidents. One ofthe objectives of our global Field Leadership Program is tostrengthen the reporting culture. We monitor reporting culture
across all our operations and coach and support our leaders
to improve the quality of our field leadership activities with our
employees and contractors.

In FY2019, we improved the quality of investigations andestablished a network of investigation facilitators across theGroup. We will also investigate positive safety performanceand apply those lessons where applicable across the Group.

Our safety performance

Total recordable injury frequency (TRIF) performance increasedby 7 per cent to 4.7 per million hours worked, compared to
4.4 in FY2018. This was due to an increase in injuries in bothMinerals Australia and Minerals Americas.

We also introduced a new event management system for recording
health, safety, environmental and community events. The system
is designed to capture, analyse and track events in real time andwill be implemented in FY2020.

High potential injuries declined by 7 per cent from FY2018 due
to reductions at WAIO, Olympic Dam and Potash; the frequency
rate declined by 18 per cent. High potential injury trends remaina primary focus to assess progress against our most importantsafety objective: to eliminate fatalities.

We continue to play a key role in supporting the International
Council on Mining and Metals (ICMM) in its development anddelivery of the Innovation for Cleaner, Safer Vehicles initiativethat promotes cleaner and safer mining vehicles. Our CEO
Andrew Mackenzie is the Chair of the ICMM Advisory Council
for this initiative.
Read our case study Towards cleaner, greener
and safer mining vehicles at bhp.com/community/case-studies.

Total recordable injury frequency
Per million hours worked
5.0

4.0

3.0

2.0

1.0

0.0

4.1

4.3

4.2

4.4

4.7

FY2015 FY2016 FY2017 FY2018 FY2019

FY2015 to FY2018 data includes Continuing and Discontinued operations.
FY2019 data includes Discontinued operations (Onshore US assets) to
28 February 2019 and Continuing operations.

BHP Sustainability Report 201926

Health and safety continued

Field Leadership Program

Workplace fatalities (FY2010–FY2019)

Leaders spending time in the field is vital to maintaining safe
operations. Through our Field Leadership Program, leaders from alllevels of BHP spend time in the field engaging with employees andcontractors about safety. They are also responsible for verifying
fatality risk controls that are behavioural in nature and ensuringthat elements of our Health, Safety and Environment management
system are working as intended. Through this engagement we
identify positive behaviours, at-risk behaviours and opportunities
for system improvements.

6
5
4
3
2

High potential injury events(1)The Field Leadership Program was deployed with a Group-widecommon approach in FY2019. This included common training
and a system to support the recording of field leadership
activities. Over the past two years, more than two million field
leadership activities with our employees and contractors havebeen completed, which continues to highlight how well thisprogram has been embedded into our daily leadership routines.
We monitor field leadership participation and coaching in all
operations, which has supported continual improvement andembedment of the program.

100

During FY2019, field leadership work focused on:

1
0

5

2

3

3

0

5

0

1

2

1

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

FY2014 to FY2018 data includes Continuing and Discontinued operations.
FY2019 data includes data for Discontinued operations (Onshore US assets)
to 28 February 2019 and Continuing operations.

• embedding field leadership activities with operational leadersin each asset;• identifying and analysing critical control failures andimplementing improvement plans;• completing actions to address critical control failure.

80

60

We introduced the following lead indicators for field leadershipto track the quality and further enhance the program. These
indicators formed part of the performance scorecard for our
executives in FY2019 and included:

40

20

0

88

61

54

50

• increasing field leadership coaching activities;• identifying and analysing critical control failures andimplementing improvement plans;• ensuring all risks that have behavioural controls are covered
and completing the field leadership activities to plan;• timely completion of actions to address critical control failures.

FY2016 FY2017 FY2018 FY2019(3)(2)(1) High potential injuries (HPI) are recordable injuries and first aid cases where there
was the potential for a fatality. FY2016 to FY2018 HPI data includes Continuing
and Discontinued operations (Onshore US assets).
(2) FY2018 data has been adjusted due to the reclassification of an event after
the reporting period.
(3) FY2019 data includes Discontinued operations (Onshore US assets)
to 28 February 2019 and Continuing operations.

Contractor safety

The last seven fatalities at our operations involved contractors
or subcontractors. This brought into sharp focus the issue ofcontractor safety, given our 40,000 contractors comprise around
two-thirds of our workforce, and precipitated significant changes
to the way we engage and manage contractors.

We continuously improve our programs under our global safety
priorities established in FY2016 and our focus remains on:• reinforcing that safety comes before productivity;• in-field verification of material and fatal risks through embedding
our Field Leadership Program;• enhancing our internal investigation process and widely sharing
and applying lessons;• enabling additional quality field time to engage our workforce.

Global contractor safety requirements now form an integral part of
the Our Requirements for Safety standard and are based on lessons
from previous fatalities at BHP. The standard guides leaders on how
they can effectively help to keep contractors and subcontractors
safe while at work. In addition, assurance activities from frontline
leaders and Internal Audit and Advisory team audits have been
implemented to monitor, verify and improve contractor safety.

In FY2019, we focused on improving critical control design andperformance (controls that alone or in conjunction with othercontrols significantly reduce the likelihood and/or impact ofmaterial risks) and continued to remove people from sourcesof danger through standardised work and new technologies.
We increased the quality of our global safety incident
investigations, with the focus on better organisational learning.
The Field Leadership Program remains one of our core leadership
activities as we build the quality of engagements in the field.

The next phase of this work is to integrate the following guiding
principles into our contractor management:• inclusive culture – contractors and BHP employees are treated
and operate as one team;• mutually beneficial relationships – we actively work to develop
long-term relationships with our contractors;• simple processes and systems – our processes and systems
are fit-for-purpose and deliver a simpler, safer user experience.

Hazard identification and reporting continued to be a priority
given a healthy reporting culture provides us with the signals
to urgently and swiftly respond. This will be supported bya new incident management system and process that will
be implemented in FY2020.

BHP Sustainability Report 201927

Health and safety continued

High occupancy vehicles

Security, Crisis and Emergency Management,
and Business Continuity Plans

We transport employees and contractors in high occupancy
vehicles every day, which presents a high potential material
risk exposure for the Group.

We updated the Our Requirements for Security, Crisis andEmergency Management, and Business Continuity Plans standard
in FY2019. New requirements were introduced for security
management, including the designation of a single point ofaccountability for security management and the use of approved
security specialists. The requirements also provide guidance on
when to undertake security risk assessments and when to prepare
security management plans. In addition, the standard includes
guidance on how to set up response teams and provide crisisand emergency management training.

We also continue to actively work with the National Road Safety
Program Partnership, which is part of the Australia Road Research
Board. A working group with participants from organisations
across a number of business sectors has been established todevelop and implement strategies to better manage and monitor
high occupancy vehicles.

BHP Sustainability Report 201928

Health and safety continued

HealthOur goal is to protect the health and wellbeing of our workforce from potential occupational injury,
now and into the future, through the setting of clear requirements for our operations.
Occupational illness

We set minimum mandatory controls to identify and manage
health risks for our employees and contractors. Our workplace
health risks include occupational exposures to noise, silica, diesel
particulate matter (DPM), coal mine dust, musculoskeletal stressors
and mental health impacts. The effectiveness of our health controls
is regularly reviewed and subjected to periodic audit to verify thecontrols are implemented and operating as designed.

Employee occupational illness
Per million hours worked
6
5

0.36
0.73

We continue to monitor emerging health issues and trends throughour membership of industry and professional associations, informal
benchmarking, networking and participation in national andinternational conferences. We also monitor information fromscientific journals, occupational health regulatory setting andadvisory agencies.

4

1.52

0.51

0.66

2.55

3

1.75

2

Fatigue management supports the wellbeing of our people,
including their mental and physical health. We have reviewed
our fatigue management strategy to identify areas that require
further focus. In FY2020, we will evaluate factors that contributeto the risk of fatigue during shift work to identify opportunities tofurther control potential causes of fatigue. Shift work that involves
circadian disruption is under review by the International Agency
for Research on Cancer and outcomes from the evaluation will
be used to inform potential updates to our health requirements.

0.72

2.71

2.48

1
0

3.05

1.75

1.48

1.19

1.11

FY2015 FY2016 FY2017 FY2018 FY2019

Noise-induced hearing loss
Musculoskeletal illness
Other illnesses
FY2015 to FY2018 data includes Continuing and Discontinued operations.
FY2019 data includes Discontinued operations (Onshore US assets) to
31 October 2018 and Continuing operations.

We set internally specified occupational exposure limits (OELs)
to manage exposures to DPM, silica, coal mine dust and otherpotentially harmful agents. For our most material exposures,
our process to set those OELs involves periodic monitoringand evaluation of scientific literature, benchmarking against
peers as well as engagement with regulators, OEL-setting agencies
and expert independent advice. Our approach to monitor andreview our internal OELs is designed to ensure they continue
to be aligned with, or are more conservative than, applicableregulated health limits.

The incidence of employee occupational illness in FY2019 was
4.38 per million hours worked, an increase of 5 per cent comparedwith FY2018. The reported incidence of contractor occupational
illness was 1.62 per million hours worked, a decrease of 16 per centcompared with FY2018. The overall decrease in contractor illnesses
was predominantly driven by the 23 per cent increase in hours
worked in FY2019. We do not have full oversight of the incidenceof contractor noise-induced hearing loss (NIHL) cases in many
parts of BHP due to regulatory regimes and limited access to data.
We continue to work with our contractors and regulatory agencies
to resolve these issues.

Our periodic medical surveillance programs help us support early
identification of potential occupational exposure illness and enable
us to assist our people through illness management and recovery.
In FY2019, we established key performance indicators that requirea 90 per cent adherence to schedule for health surveillance
activities, achieving 79 to 100 per cent across the Group.
We also reviewed our medical testing programs through internaland external benchmarking with industry peers and standards.
Improvement opportunities identified from the review are
expected to be evaluated and the implementation of endorsed
recommendations are expected to commence in FY2020,
along with plans to further increase adherence to planned
surveillance activities.

The majority of our reported occupational illnesses aremusculoskeletal illness. The improved identification and more
effective control of causes of musculoskeletal stressors will besupported by the progressive implementation of the StandardisedWork program. Standardised Work is a key foundational tool of
the BHP Operating System that seeks to empower individuals todesign work in a way that supports efficiency and ergonomics,
where health and other risks are identified, and enables additional
controls to be identified and incorporated.
Our continued focus on implementing our requirements for fit
testing for hearing protection devices has supported a 6.7 per centreduction in NIHL illness rate.

In line with Our Charter and our culture of care, we support
the proactive management of mental wellbeing through theprovision and promotion of the Employee Assistance Program(EAP), a mental health toolkit called Thrive, education andawareness campaigns, including stigma reduction and the
BHP Resilience Program.

We have seen an increase in the number of other illnesses reported,which include short-term, low-impact conditions such as blisters,skin conditions (dermatitis/eczema), bites and stings, due to asmall increase in cases across most Minerals Australia operations.
The dermatitis/eczema cases arose from different work locations
across Olympic Dam and could be attributed to the continued
education campaign on the prevention and management ofskin conditions, which encourages early reporting of signs
and symptoms.

BHP Sustainability Report 201929

Health and safety continued

To a lesser extent, the increase was also driven by increases inmental stress conditions and heat stress cases at Olympic Dam inSouth Australia. These conditions are currently captured as ‘otherillnesses’ but, with our strong focus on mental health, we plan toestablish a stand-alone category for ‘mental stress conditions’ in
FY2020. Across the Group, mental stress conditions continue tobe reported in low numbers and the number of cases were notsignificantly different to FY2018. Through the BHP Mental Health
Framework, we continue to seek to foster a work environment
where our people feel comfortable to raise their experience ofmental stress and to access appropriate support when needed.

Projects focused on reducing silica exposure will continue inFY2020 in Minerals Australia and Minerals Americas. In FY2019,
pilot studies commenced at Escondida (Chile) and BMA’s
Broadmeadow mine (Queensland) to install and test real-timemonitoring equipment for silica in Escondida and DPM and coalmine dust in Broadmeadow as a method to support targeted
exposure assessment and verify exposure controls. The pilots
will continue in FY2020 and findings will inform subsequent
application of the technology into other operations.
An overall reduction in DPM exposures in Minerals Australia wasachieved due to the implementation of control plans at Olympic
Dam (South Australia) and Nickel West (Western Australia).
Olympic Dam continued to replace or retrofit equipment withdiesel particulate filters, which enabled a reduction in exposurefor mine production workers. Nickel West continued to replaceend of life fleet with Tier 4 engine equipment, changed equipment
maintenance schedules based on diesel particulate emissions
and introduced improvements to the management of secondary
ventilation. BMA’s Broadmeadow mine continued to implement
DPM exposure reduction controls, including engine upgrades
to underground loaders. Both Olympic Dam and Broadmeadow
continue to participate in a light electric vehicle pilot as a potential
opportunity to further reduce DPM exposures and other emissions.
Read more in our case study Light electric vehicles inunderground pilot at bhp.com/community/case-studies.

Occupational exposures

For our most material exposures to DPM, silica and coal mine dust,
we have committed to a five-year target to achieve a 50 per centreduction in the number of workers potentially exposed(1) ascompared to our baseline exposure profile (as at 30 June 2017(2))
by 30 June 2022.
In Petroleum, the divestment of our Onshore US assets during
FY2019 changed the exposure profile for the region as workplace
exposures to silica and DPM are no longer present. Our baseline
exposure profile for the Group for the five-year target was therefore
adjusted to remove the baseline exposures attributed to the
Onshore US assets.
In FY2019, planned exposure reduction projects were implemented
across the Group, involving a collaborative effort from operationaland maintenance teams, supported by the Health, Safety andEnvironment, Supply and Technology teams. Many assets exceededplanned exposure reductions, resulting in an overall reductionof 49(3) per cent compared to the revised FY2017 baseline. Planned
growth projects across the Group may result in an increase in somepotential exposures over the short term; however, commitments
to achieve planned exposure reductions over the five-year target
period remain unchanged.

Through the continued implementation of exposure control plansfor coal mine dust, there were no workers exposed over the OEL
at the end of FY2019.
In addition to these exposure reduction projects, BHP continues
to play a key role in supporting the ICMM in its development anddelivery of the Innovation for Cleaner, Safer Vehicles initiative that
promotes technological innovation to reduce emissions of DPM
and greenhouse gases and reduce vehicle interactions (and theassociated safety risk). Our CEO Andrew Mackenzie is the Chairof the ICMM Advisory Council for this initiative, with a numberof BHP employees leading or participating in key working groups.
The strong alignment and common ambition between ICMM
member companies and Original Equipment Manufacturers
represents an important change in partnership and collaboration,
which will help accelerate delivery of the technology required fora safer and cleaner world.

In Minerals Americas, silica exposure reduction projects weresuccessfully implemented at our Escondida and Pampa Norte
assets in Chile. This included the installation of dust collection units
within ore concentrator plants at Escondida and the installationof a central vacuum system to reduce dust exposure during plantmaintenance activities at Pampa Norte’s Spence mine. Designchanges to the conveyor belt transfer and discharge areas werealso introduced at Spence to further reduce dust release andpotential exposures.

Coal mine dust lung diseases

In our Sustainability Report for FY2017, we reported on the
re-identification of coal workers’ pneumoconiosis (CWP) in our
industry, the number of our current employees and former
workers who had been diagnosed with CWP and the steps
we had taken in response.

Across Minerals Australia, all assets contributed to the reduction
in silica exposures. The main factors that influenced the reduction
in silica exposures included:• developing and implementing control plans to reduce airborne
dust generated from surfaces and environmental conditions;using engineered water spray systems on hoppers and conveyers;
introducing intelligent cabin pressurisation systems; eliminatingwhere practical the use of compressed air for cleaning; andimproving maintenance strategies;• increasing task rotation through organisational changes andmovement into areas of higher-grade ore;• additional monitoring and re-baselining as part of the FY2019
silica exposure assessment, which identified a number ofworkgroups exposed below the OEL.

As at 30 June 2019, 10 cases of coal mine dust lung diseases(CMDLD(4)) among our current employees were reported to the
Queensland Department of Natural Resources, Mines and Energy.
We continue to provide counselling, medical support andredeployment options (where relevant) for all 10 colleagues(seven of the 10 have been able to continue working).

(1) For exposures exceeding our baseline occupational exposure limits discounting the use of personal protective equipment, where required.
(2) The baseline 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.
(3) FY2019 data excludes Discontinued operations (Onshore US assets).
(4) CMDLD is the name given to the lung diseases related to exposure to coal mine dust and includes CWP, silicosis, mixed dust pneumoconiosis and chronic obstructive
pulmonary disease.

BHP Sustainability Report 201930

Health and safety continued

During FY2019, one former BHP employee had a worker’s
compensation claim accepted for CMDLD, resulting in a total,
as at 30 June 2019, of six former workers diagnosed with CMDLD
since January 2016 (noting that no Australian coal mine worker
had been diagnosed with CMDLD in the preceding two decades).
In addition to these confirmed cases, as at 30 June 2019, there were
six intimated worker’s compensation claims for CMDLD fromcurrent and former employees that had not yet been determined.
Our Charter values guide our response and the support we offer,
and we are actively reviewing how we can improve timeframes
and processes for determination of claims.
To further protect the health of our people we remain committed to:• a reduction in our coal mine dust OEL from 2 mg/m3 to 1.5 mg/m3
to be achieved as soon as reasonably practicable and no later
than 1 July 2020 (as compared with the regulatory OEL of
2.5 mg/m3), noting that all operations have developed exposure
reduction plans;• a reduction in potential exposure to silica in coal mine workers
that exceeds a level 50 per cent lower than the current regulatorylevel by no later than 1 July 2021.
To strengthen the regulatory framework and health surveillancesystem, we will continue to provide input and share improvements
in technical knowledge and controls with the Queensland
Government and the coal mining industry more broadly throughindustry associations and working groups.

We launched the inaugural BHP Mental Health Week to raiseawareness of BHP’s mental health resources and tools, andencourage conversations about mental health. By leveraging theexisting communication platforms across our operations and offices,
we sparked conversations about how to check in with colleagues,
highlighted strategies to manage stress, pressure and working awayfrom home, and raised awareness about the EAP support options.

We believe that our stricter OELs combined with the statutory
health surveillance scheme will prevent serious disabling and fatal
cases of CMDLD arising in our workforce from existing conditions.
We achieved this through the combination of further reductions
in coal mine dust and silica potential exposures across ouroperations (driven by our current five-year exposure reduction
targets and reductions in OELs, as described earlier) and thestatutory health surveillance schemes in Queensland and
New South Wales.

Proactive use of our EAP continues to be promoted across all ouroperating regions and functions. Online and face-to-face EAP
sessions were offered across our sites to increase awareness of thecounselling services and manager assistance program, as well as
information sessions on how to support longer term wellbeing.
Our people supported World Mental Health Day and R U OK? Day
and we again embarked on a global Movember campaign to raiseawareness and funds (A$396,954 as of 30 June 2019) for key men’s
health issues, including mental health and suicide prevention.
BHP was the highest fundraising organisation within the mining
challenge that supported the CY2018 campaign, contributing to the
Movember Foundation’s programs and research into men’s health.

Mental health

BHP has prioritised the mental health of our people since 2015.
We have subsequently made good progress with theimplementation of our Group-wide Mental Health Framework.
We have focused on reducing the stigma associated with mental
illness and raising awareness of mental health conditions, as wellas building capacity and confidence to recognise and support
individuals experiencing mental health issues.

We conducted a global mental health risk assessment with internaland external stakeholders to identify critical parts of our Mental
Health Framework that promote a supportive work environment.
The Western Australian Government released the Code of Practiceon mentally healthy workplaces for fly in, fly out workers in the
resources and construction sectors. The outcomes from the risk
assessment and our review of the Code of Practice will help to
inform and strengthen our long-term mental health strategy.

In FY2019, we continued to embed programs and resources that
support a healthy, thriving workforce. This included the peer-led
Resilience Program in which 3,392 people had participated,
as at the end of FY2019.
We held a workshop with our Human Resources function andexternal representatives from Beyondblue, Keil Centre, and BSS(one of our Employee Assistance Program (EAP) providers) andbenchmarked companies to discuss strategies to embed existing
resources and inform our five-year mental health and wellbeing
strategy. The workshop reinforced the need to continue topromote existing resources. This led to the development of the
Resilience Program meeting series and program refresher session
materials, which can be built into existing team routines.

FY2019 was the third year that the wellbeing category was included
in our annual Engagement and Perception Survey. There wasno change overall at the Group level, but we continue to evaluate
the differences at the asset and function levels from the previous
year’s results to inform local plans.
We will continue to better integrate all BHP priorities that contributeto mental health, such as diversity and inclusion, flexible work
options and the strengthening of leadership awareness and skills.
For more on how we are addressing fatigue when working
at altitude, read our case study New program tackles fatigue
at Escondida at bhp.com/community/case-studies.

BHP Sustainability Report 201931

Environment
We focus on minimising andmitigating our impact on water,
land, air quality and biodiversity,and working with stakeholders
on effective solutions to complex
environmental challenges.

BHP Sustainability Report 2019

In this section:
Minimising environmental impacts
Our environmental performanceContributing to a resilient environment

32

Environment

We acknowledge that the nature of our operations can have significant environmental impacts. There is
growing pressure on and competition for environmental resources, such as land, biodiversity, water and air.
Climate change amplifies the sensitivities of our natural systems. Our operations and growth strategy dependon obtaining and maintaining the right to access these environmental resources. The long-term health ofour business depends on a sustainable natural environment. BHP’s approach to environmental stewardshipis twofold – we aim to minimise the environmental impacts from our activities and work in partnership withothers to contribute to a resilient environment.

Minimising environmental impacts

In line with Our Charter, we seek to minimise impacts throughout
every stage of our operations. BHP has comprehensive governance,risk management, policies and processes that set the basis for how
we manage risk and realise opportunities to achieve ourenvironmental objectives.

Protecting threatened environments

We are committed to avoiding areas where the risk of impacts
on threatened environments from resource extraction would
be too great. Our commitments are:
• We do not explore or extract resources within the boundaries
of World Heritage-listed properties.
• We do not explore or extract resources adjacent to World
Heritage-listed properties, unless the proposed activity iscompatible with the World Heritage outstanding universal values.
• We do not explore or extract resources within or adjacent tothe boundaries of the International Union for Conservation of
Nature (IUCN) Protected Areas Categories I to IV, unless a planis implemented that meets regulatory requirements, takes into
account stakeholder expectations and contributes to the values
for which the Protected Area is listed.
• We do not operate where there is a risk of direct impacts toecosystems that could result in the extinction of an IUCN Red
List Threatened Species in the wild.
• We do not dispose of mined waste rock or tailings into a riveror marine environment.

Mitigate

Rehabilitate

Compensate

Avoid negative
impacts to theenvironment
within our areaof influence.

Minimise theseverity of any
unavoidable
impact.

Rehabilitate
disturbed
areas that are
no longer
required for
operational
purposes,
includingclosed mines.

Implement
appropriate,
effective andenduring
compensatory
measures forany residual
impacts.

Read how we are applying the mitigation hierarchy to new
projects with our case study Protecting ghost bats in the Pilbara.

Environmental management

BHP’s environmental performance and management ofenvironmental impacts on communities where we operate are
critical to creating social value. BHP’s approach to environmental
management is set out in the Our Requirements for Environment
and Climate Change and Our Requirements for Risk Management
standards. These standards have been designed taking accountof the ISO management system requirements, such as ISO14001
for Environmental Management. The Our Requirements standards
include specific minimum performance standards in a numberof areas. In FY2019, we began updating the Our Requirements
for Environment and Climate Change standard to reflect recentchanges in BHP’s Risk Framework and other Our Requirements
standards, new Technical Standards for water and our evolving
climate change and water stewardship programs.

The mitigation hierarchy

We aim to operate and invest to avoid adverse impacts on theenvironment and communities in which we operate. We work withaffected stakeholders to mitigate impacts and contribute toenvironmental resilience where impacts cannot be avoided.
Our assets are required to put in place controls and plans thatreflect the mitigation hierarchy, an approach that helps us tominimise, and if necessary, compensate for potential environmental
impacts. Steps one and two of the hierarchy – avoid and mitigate– seek to prevent adverse impacts as far as possible. Steps threeand four – rehabilitate and compensate – seek to reduce the effectof those impacts that cannot be avoided.

BHP Sustainability Report 2019

Avoid

Our internal audit processes check compliance with the Our
Requirements standards, which are designed to cover operatingsites at our assets on a two-year rotation.

33

Environment continued

Our environmental performance

In FY2020, we will progress the next phase of framework
development with our conservation partners by combining
operational-level indicators into indicators at a region or Grouplevel. We will continue actions to minimise the biodiversity impacts
associated with our activities and support effective, progressive
rehabilitation and closure.

Outlined below is our progress in the past year against our
five-year and longer term environmental targets for water andbiodiversity, as well as other key environmental stewardship
activities. We also progressed our global strategy on water
stewardship and actions in each of the strategy pillars, set out
below and in more detail in the Water section. To achieve thesetargets, we identify and implement on-ground improvement
projects, investigate technologies to monitor and reduce
potential environmental impacts, and collaborate withgovernments, communities and other industries to share
information and promote collective action.

BHP looks for opportunities to improve the conservation,
restoration and sustainable use of marine and terrestrial
ecosystems in all regions in which we operate, through our own
activities and in collaboration with others. In FY2019, our Petroleum
business continued to appraise Mexico’s deepwater offshore Trion
block with its joint venture partner, Pemex and engaged with the
Mexican Government to develop Mexico’s offshore petroleum
environmental regulatory framework. This involved use ofenvironmental guidance from networks such as the International
Petroleum Industry Environmental Conservation Association andthe International Association of Oil and Gas Producers.

While no significant environmental events occurred at any BHP
operated assets in FY2019, activities are ongoing to address thesignificant environmental impacts of the tailings dam failure
at our non-operated joint venture, Samarco, in November 2015.

Responsibly managing land and supporting
biodiversity

Rehabilitation and closure

As a global leader in the development of natural resources, we arecommitted to implementing a planned approach to closure andrehabilitation through the life cycle of our operations. We do this byfollowing our closure management process, taking into consideration
our values, obligations, commitment to safety, cost risks/benefits
and the expectations of external stakeholders, and developing
a closure management plan that delivers enduring environmental
and social benefits.

The nature of our operations means we have a significant
responsibility for land and biodiversity management. BHP owns
or manages more than 10 million hectares of land and sea;
however, less than 2 per cent of it is disturbed for operations.
Our activities have inherent risks for land, marine and aquatic
biodiversity in the areas we operate. We are committed to reducing
those risks and to contributing to a resilient environment beyond
the immediate areas of our operations.

Our current closure management process set out in the Our
Requirements for Closure standard was implemented in FY2018.
It requires all assets to develop a closure management plan,
including a financial assessment, to minimise any closure-relatedrisks over the life of the asset. The focus is to aim to achieve an
optimal closure outcome in consultation with local communities
and other stakeholders. In addition to environmental
rehabilitation, closure outcomes may include recreationalor other community uses.

Our assets have plans and processes in place that reflect local
biodiversity risks and regulatory requirements. At a Group level,
we have a five-year target to improve marine and terrestrial
biodiversity outcomes by developing a framework to evaluate andverify the benefits of our actions in collaboration with others. Thisis being designed to allow us to better monitor, avoid, reduce andoffset biodiversity impacts of our activities in a coordinated way.
We started work on the framework in FY2018 and completed initial
phase pilot testing using data from three operating sites and a social
investment project during FY2019. We are progressing this workwith Conservation International and Proteus, a voluntary partnership
between the United Nations Environment World Conservation
Monitoring Centre and 12 extractive industry companies.

In Western Australia’s Pilbara, a pilot study is looking at alternative
uses for an inactive mine site. Using an agribusiness market
assessment, the study aims to identify multi-land uses for the sitethat could form the basis of a sustainable commercial opportunity.
This will be co-designed with key stakeholders to ensure outcomesare fit-for-purpose and aligned to strategic regional initiatives.

We are continuing with initial phase pilots at two more sites toensure the approach is robust across a range of geographies,
marine and terrestrial environments, and operating sites andsocial investment projects. We intend to use the framework to
track achievement of BHP’s longer term biodiversity goal: ‘in linewith United Nations Sustainable Development Goals 14 and 15,
BHP will, by FY2030, have made a measurable contribution to
the conservation, restoration and sustainable use of marine
and terrestrial ecosystems in all regions where we operate.’

In our Petroleum business, we are assessing the extent to which
seafloor infrastructure provides beneficial habitat for local fish
species, which is important when considering offshoredecommissioning options.
For more information, read ourcase study : Ecological implications of decommissioning subsea
infrastructure in northwest Australia at bhp.com/community/
case-studies.
More information on financial provisions related to our closure liabilities
is available in our Annual Report 2019, available online at bhp.com.

BHP Sustainability Report 201934

Environment continued

BMA Queensland rehabilitated land.

Making progress on water stewardship

We regularly reassess for improvement the way we rehabilitateareas that are no longer required for operational purposes.
In collaboration with key government stakeholders in Queensland,
Minerals Australia developed completion criteria for five postmining land uses: grazing, cropping, native woodland habitat,water storage and diversions.

Water stewardship is about safeguarding our shared water
resources for future generations.
Our Water Stewardship Strategy was adopted in FY2017 to improve
our management of water, increase transparency and help resolve
shared water challenges. In FY2018, we produced our firststandalone Water Report and in FY2019, we developed our Water
Stewardship Position Statement that outlines BHP’s commitment
and advocacy focus on water stewardship. Implementationof the Position Statement will commence in FY2020.

In November 2018, 1,176 hectares of rehabilitated subsidencewith a post-mining land use of mixed cropping and grazingat Gregory Crinum Mine (now sold to Sojitz) was certified ascomplete. At the Norwich Park Mine in Queensland, a further
294 hectares of spoil dump was certified as complete forgrazing in February 2019, bringing the total rehabilitated landarea certified as complete to 1,470 hectares. In total, in FY2019,rehabilitation and closure strategies for assets in Australiadelivered just under 20,000 hectares rehabilitated land.

For information on our approach to water stewardship andwater performance in FY2019, refer to the Water section.

Reducing air emissions

Greenhouse gases (GHG) and dust are our most significant
emissions to air across the BHP portfolio. Our actions to reduce
GHG emissions are described in more detail in the Climate change
section. We manage and monitor our air emissions, such as dust,
to reduce the potential for air quality impacts on our workforce,surrounding communities and ecosystems.

Technical experts at our Resource Engineering Centre of Excellencedevelop and assure technical standards, share best practice,provide technical training and access to the latest research,and support continual improvement in our business systems.
The Centre developed five standards across BHP in geotechnical,
water and closure disciplines that each share common attributes.
For example, a global Acid and Metalliferous Drainage (AMD)Management Standard will enable improvement in how we manage
mineral wastes through mine plans that include considerationof ground and surface water and has an overarching long-term
objective of preventing AMD by source control rather thantreatment in-perpetuity.

In some locations, other activities, including adjacent mining or
industrial operations, also contribute to emissions that affect theenvironment. In the last year, we reviewed air quality management
across our mine and port facilities and benchmarked air quality
management practices across a number of industries andgeographic regions. The insights from the review informed
an update of the WAIO Air Quality Strategy and the Our
Requirements for Environment and Climate Change standard.
We shared the learnings to our other operating regions to support
continuous improvement.

The Centre collaborates with international experts and participateson industry forums to share learnings and benchmark performanceto ensure our assets and operations have access to best practicein resource engineering. We actively participate in several industry
bodies focused on closure aspects, including the International
Council on Mining and Metals Closure Working Group, the AustralianInstitute of Mining and Metallurgy Community and Environment
Committee, and the International Network on Acid Prevention.

BHP Sustainability Report 2019

Together with operating practices, technology has an importantrole in minimising air emissions. In our Petroleum operations,
we are increasingly applying detection technologies, such as
optical gas imaging and drones, to detect and address fugitive
methane emissions.

35

Environment continued

We use real-time air monitoring networks to provide live feedback
to operations on the potential for off-site dust impacts at a numberof our mining and port operations in Australia and Chile. This
allows operations to make real-time adjustments to production
and dust mitigation activities in response to changes in weather,product properties, or combined impacts from adjacent operations.
In some instances, we share this data with community andregulatory authorities to make transparent our air emissions
performance and effectiveness of mitigation actions.

Contributing to a resilient environment

A report published by the Intergovernmental Panel on Biodiversity
and Ecosystem Services in May 2019 found that nature is declining
globally at rates unprecedented in human history. It also warned
that about one million animal and plant species are threatenedwith extinction, many within decades. This is deeply concerning
for the health of our ecosystems and their ability to support
human wellbeing.

With other partners, we progressed a number of environmentfocused social investment programs in the last year. In the UnitedStates, our partnership with The Nature Conservancy in the
Sustainable Rivers and Forests Initiative supports conservation
and restoration in the Columbia Bottomlands region in Texasand five counties in Arkansas.
For more, read our case study
Supporting conservation projects in Texas and Arkansas at
bhp.com/community/case-studies.

We also recognise that we have a broader role to play incontributing to environmental resilience. We achieve this throughour Social Investment Framework and work with strategic partners
and communities to invest in voluntary projects that contributeto the management of areas of national or international
conservation significance.

Another significant US project is the Terrebone Biodiversity
and Resilience Program with America’s WETLAND Foundation(refer to the Society section). In Australia, our most significant
environment-focused investments include:

Since 2011, we have committed more than US$75 million tobiodiversity conservation through our alliance with Conservation
International and other partners. We look for projects that can
provide multiple benefits, improve water quality or quantity,
nature-based solutions to climate change, local livelihoods orcultural benefits, as well as improve biodiversity conservation.

• the Martu ranger program with the Martu Indigenous people
in the Western Australian desert;• our partnership with the Australian Government supporting
Bush Blitz across Australia;• our partnership with the CSIRO on the Ningaloo Reef Research
project in Western Australia;• support for the Arid Recovery wildlife reserve in the northernarid area of South Australia;• the Raine Island Recovery Project in Queensland in collaboration
with the Queensland Government, the Great Barrier Reef
Foundation and local Traditional Owners.

Our investments with Conservation International in the seven-year
alliance, which started in 2011, included the Five Rivers Conservation
Area in Tasmania, Australia; Valdivian Coastal Reserve in Chile;
Alto Mayo in Peru; and the Kasigau Corridor in Kenya. Last year,
we renewed our alliance, with the next phase of our partnershipto focus on: financing natural solutions that address climatechange and contribute to halting biodiversity loss; and developing
the framework to support BHP’s efforts in evaluating and verifying
the benefits of our actions on biodiversity – both operational andsocial investments.

BHP Sustainability Report 2019

In FY2020, we will begin a number of new social investment
projects that contribute to environmental resilience in terrestrial,
marine and coastal ecosystems. We prioritise those that contributeto combined benefits for water quality, biodiversity, habitat
conservation and carbon sequestration.

36

ClimatechangeWe manage and minimise
greenhouse gas emissions,build resilience of our portfolio
to climate change risks,
and work to build operational,
community and ecosystem
resilience to the physicalimpacts of climate change.

BHP Sustainability Report 2019

In this section:
Operational emissions
Scope 3 emissions
Contributing to the global response
Managing risk and opportunity
Engagement and disclosure

37

Climate change

Our climate change strategy focuses on reducing our operational greenhouse gas (GHG) emissions,investing in low emissions technologies, promoting product stewardship, managing climate-related
risk and opportunity, and working with others to enhance the global policy and market response.
BHP’s position on climate change is available online at bhp.com.
Climate change is a global challenge that requires collaboration.
Resources companies such as BHP, our customers andgovernments must play their part to meet this challenge.

Scope 1 and 2 GHG emissions(a)millions of tonnes CO2-e

Responding to climate change remains a priority governanceand strategic issue for us. Our Board is actively engaged in thegovernance of climate change issues, including our strategic
approach, supported by the Sustainability Committee.
Management has primary responsibility for the design andimplementation of our climate change strategy and our
performance against our targets (outlined below) is reflected
in senior executive and leadership remuneration. From 2021,
the link between our targets and management remuneration
will be further strengthened to reinforce the strategic importanceof action to reduce emissions.

40.0

30.0

17.6

20.0

6.7
10.0 20.7

11.3

Operational emissions

0.0

As a major energy consumer, managing energy use, ensuring
energy security and reducing GHG emissions at our operations
are key components of our climate change strategy. We set targets
in order to hold ourselves accountable for these goals and regularly
review them as our strategy and circumstances change.

2015

2016

Scope 1(b)

1.7

1.7

5.8

5.9

4.9

8.8

8.9

9.3

2017

2018

2019

Scope 2(c)

0.5

14.7

Onshore US

FY2017 baseline(d)(a) Scope 1 and 2 emissions have been calculated on an operational control basis
in accordance with the GHG Protocol Corporate Accounting and ReportingStandard. 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 dateof the divestment and 30 June 2015). Data over the period FY2017 to FY2019
is displayed with Onshore US 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).
(b) Scope 1 refers to direct GHG emissions from operated assets.
(c) Scope 2 refers to indirect GHG emissions from the generation of purchased
electricity and steam that is consumed by operated assets (calculated using
the market-based method).
(d) FY2017 is the base year for our current five-year GHG emissions reduction target,
which took effect from FY2018. The FY2017 baseline has been adjusted for thedivestment 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 GHG emissions at the time of thetransaction; carbon offsets will be used as required.

Our five-year GHG emissions reduction target, which took effectfrom 1 July 2017, is to maintain our total operational emissions in
FY2022 at or below FY2017 levels(1) while we continue to grow ourbusiness. Our target builds on our success in achieving ourprevious five-year target.
We have also set the longer term goal of achieving net-zero
operational GHG emissions in the latter half of this century,
consistent with the Paris Agreement. In order to set the trajectory
towards achieving that goal, in FY2020 we intend to develop
a medium-term target for operational emissions.

Operational emissions performance

Our combined Scope 1 and Scope 2 emissions (operationalemissions) in FY2019 totalled 14.7 million tonnes of carbon dioxide
equivalent (CO2-e), 3 per cent below our FY2017 target baseline.(2)This decrease is primarily due to a change in the electricity
emissions factor for Minerals Americas that resulted from theinterconnection of Chile’s northern grid system, which
is mainly fossil fuel-based, and southern grid system, which hasa higher proportion of renewable energy.
For an exampleof how BHP is reducing its operational emissions, read our casestudy Keeping greenhouse gas emissions reductions rolling at
bhp.com/community/case-studies.

Investing in low emissions technologies

Defining a pathway to net-zero GHG emissions for our long-life
assets requires planning for the long term and a deep
understanding of the development pathway for low emissions
technologies (LETs).
Our LET strategy is threefold. First, we work to adapt maturetechnologies such as light electric vehicles, in order to integratethem safely and effectively into our operations. Second, in themedium term, we create road maps for development and adoptionof LETs that support our goal of net-zero emissions, which may
include trials and demonstrations of technology in our production
environments. Finally, we look for early stage LETs that hold highpotential for future results. For these emerging technologies,
we seek opportunities for collaboration, research and otherways to accelerate their development and adoption.

We have disclosed operational emissions performance at the asset
level for the first time in this year’s Report (refer to Performancedata – Climate Change in the Appendix).

(1) FY2017 baseline will be adjusted for any material acquisitions and divestments based on GHG emissions at the time of the transaction. Carbon offsets will be used as required.
(2) Calculated on a Continuing operations basis. The FY2017 baseline has been adjusted for the divestment of our Onshore US assets to ensure ongoing comparability of performance.

BHP Sustainability Report 201938

Climate change continued

Scope 3 emissions

Our LET strategy has been developed to address BHP’s key sourcesof operational GHG emissions. Emissions from electricity use makeup 43 per cent of our operational emissions.(1) This includes thepower we generate ourselves, as well as the power we buy fromgrids around the world. To support the goal of moving toward
zero emissions electricity, we are considering ways to accelerate
the integration of renewable energy into our operations, such as
through electricity contracts and, in some cases, through directly
supplying our operations with greater proportions of lower
carbon energy.

While reducing our operational emissions is vital, emissions fromour value chain (Scope 3 emissions) are significantly higher thanthose from our own operations. We work with our customers,
suppliers and other value chain participants to seek to influenceemissions reductions across the life cycle of our products.
As we work to develop an integrated product stewardship strategy
in FY2020 we intend to look to identify additional opportunities towork with others in our value chain to influence emissions reductions.
We also intend to set public goals related to Scope 3 emissions.

Emissions from fuel and distillate make up 42 per cent of ouroperational emissions, much of which is from diesel used inmoving material (for example, haul trucks). The first phase ofmoving to net-zero diesel emissions is focused on adapting our
fleet. We are currently trialling the use of light electric vehicles at
Olympic Dam, by converting a diesel vehicle to run on lithium ion
batteries. This has the added benefit of reducing diesel particulatematter, which has the potential to contribute to improved healthand safety in our underground mining operation. One of the highpotential options for GHG reduction in the longer term is greenhydrogen (hydrogen created using renewable energy). Part of our
LET strategy is focused on studying the potential role of zero
emissions fuels like green hydrogen in our mining operations.

Scope 3 emissions performance

The most significant contributions to Scope 3 emissions in ourvalue chain come from the downstream processing and use of our
products, in particular emissions emanating from the steelmaking
process (the processing and use of our iron ore and metallurgicalcoal). In FY2019 emissions associated with the processing of ournon-fossil fuel commodities (iron ore to steel; copper concentrateand cathode to copper wire) were 305 million tonnes of CO2-e.
Emissions associated with the use of our fossil fuel commodities(metallurgical and energy coal, oil and gas) were 233 million
tonnes of CO2-e.

Fugitive methane emissions from our petroleum and coal assets
make up 15 per cent of our operational emissions and are among
the most technically and economically challenging to reduce.
We are investing in research, development and trial projects
with partners, such as the CSIRO and the University of San Diego.
In our open-cut coal operations, we are working to better measure
our emissions as a first step toward effective abatement. We arealso collaborating with research institutions to investigate solutions
for our underground operations, such as the viability of using
methanotrophs (methane eating bacteria) to abate fugitive
methane emissions.

(1) Includes Scope 1 emissions from our natural gas-fired power generation as well as Scope 2 emissions from purchased electricity.

BHP Sustainability Report 201939

Climate change continued

Scope 3 GHG emissions(1)(2)
Scope 3 emissions(million tonnes CO2-e)
Scope 3 category

FY2019FY2018Purchased goods and services (including capital goods)

17.3

8.2

Fuel and energy related activities

1.3

1.4

3.6

3.6

Upstream

Upstream transportation and distribution(3)

Business travel

0.1

0.1

Employee commuting

<0.1

<0.1

Downstream
4.0

5.0

Processing of sold products(5)

304.7

322.6

–– Iron ore to steel

299.6

317.4

Downstream transportation and distribution(4)

5.1

5.2

Use of sold products

232.7

253.8

–– Metallurgical coal

111.4

112.3

–– Copper to copper wire–– Energy coal

67.0

71.0

–– Natural gas

28.3

36.4

–– Crude oil and condensates(6)

23.3

29.6

–– Natural gas liquids

2.8

4.5

Investments (i.e. our non-operated assets)(7)

3.1

1.7

(1) Scope 3 refers to all other indirect GHG emissions (not included in Scope 2) from activities across our value chain, including upstream emissions related to the extraction
and production of purchased materials and fuels; downstream emissions related to the processing and use of our products; upstream and downstream transportation anddistribution; and emissions from our non-operated joint ventures. Scope 3 emissions have been calculated using methodologies consistent with the GHG Protocol Corporate
Value Chain (Scope 3) Accounting and Reporting Standard.
(2) FY2018 data includes Continuing operations and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued operations (Onshore US) to 31 October 2019
and Continuing operations.
(3) Includes product transport where freight costs are covered by BHP, for example under Cost and Freight (CFR) or similar terms, as well as purchased transport services forprocess inputs to our operations.
(4) Product transport where freight costs are not covered by BHP, for example under Free on Board (FOB) or similar terms.
(5) All iron ore production is assumed to be processed into steel and all copper production is assumed to be processed into copper wire for end use. Processing of nickel, zinc,gold, silver, ethane and 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
apply.Processing/refining of petroleum products is also excluded as these emissions are considered immaterial compared to the end-use product combustion reported
in the ‘Use of sold products’ category.
(6) All crude oil and condensates are conservatively assumed to be refined and combusted as diesel.
(7) Covers the Scope 1 and 2 emissions (on an equity basis) from our assets that are owned as a joint venture but not operated by BHP.

BHP Sustainability Report 201940

Climate change continued

These projects added to our existing portfolio of CCS projects,
including:

Scope 3 emissions reporting necessarily requires a degree ofoverlap in reporting boundaries due to our involvement at multiple
points in the life cycle of the commodities we produce andconsume. A significant example of this is that Scope 3 emissions
reported under the ‘Processing of sold products’ category in thetable above include the processing of our iron ore to steel. This
third party activity also consumes metallurgical coal as an input,
a portion of which is produced by us. For reporting purposes,
we account for Scope 3 emissions from combustion of metallurgicalcoal with all other fossil fuels under the ‘Use of sold products’
category, such that a portion of metallurgical coal emissions
is accounted for under two categories.

• Establishment of the International CCS Knowledge Centre toshare lessons from SaskPower's Boundary Dam CCS projectin Saskatchewan, Canada.
• Work with Peking University and other partners to identify the key
policy, technical and economic barriers to CCS deployment in
the industrial sector, with a particular focus on the iron and steel
industry in China.
• Establishment of a research collaboration between the Universityof Melbourne, University of Cambridge and Stanford University
to support fundamental research into the long-term storage
mechanisms of CO2 in subsurface locations.

This is an expected outcome of emissions reporting between the
different scopes defined under standard GHG accounting practices
and is not considered to detract from the overall value of our
Scope 3 emissions disclosure. This double counting means thatthe emissions reported under each category should not be addedup, as to do so would give an inflated total figure. For this reason
we do not report a total Scope 3 emissions figure. Further detailsof the calculation methodologies, assumptions and key referencesused in the preparation of our Scope 3 emissions data can befound in the associated Scope 3 calculation methodology
document available online at bhp.com/climate.

Supporting the development of climatechange solutions
In July 2019, our CEO Andrew Mackenzie announced that
BHP’s Board had approved a new Climate Investment Programthat will invest in technologies to reduce emissions, andresearch and development of potential future solutions.
The Program will build on BHP’s existing program of investingin low emissions technologies and carbon capture and storage.
It includes a total investment amount of US$400 million over
five years from FY2020. Investments will target operationalemissions reduction and potential reductions of Scope 3
emissions, including from the processing and use of
our products.

Accelerating the development of carbon captureand storage

We are working in partnership with others across our value chain
to accelerate the development of technologies with the potential
to reduce emissions from the processing and use of our products.
Carbon capture and storage (CCS) is a key low emissions
technology with the potential to play a pivotal role in reducing
emissions from industrial processes, such as steel production,
as well as emissions from the power sector and from oil andgas production.

The Program will target mature and disruptive technologies,
designed to achieve near-term emissions outcomes andlonger term, higher-risk goals. We expect technology
investment to be critical in meeting our short- and mediumterm targets for operational emissions reduction, our longer–term goal of operational net-zero emissions and our goals
in relation to Scope 3 emissions. The Program will also drive
investment in nature-based solutions.

While we recognise progress is required in developing policy
frameworks to support the wider deployment of this technology,
our CCS investments and partnerships focus on mechanisms to
reduce costs and accelerate development timeframes. Ourinvestments include activities aimed at knowledge sharing fromcommercial-scale projects, development of sectoral deployment
road maps and funding for research and development at leading
universities and research institutes.

Contributing to the global response

Climate change is a global challenge that requires collaboration.
We prioritise working with others to enhance the global policy
and market response.

For example, in March 2019 we committed to invest US$6 million
in Carbon Engineering Ltd to progress the development of aground-breaking technology to reduce carbon emissions byaccelerating the development of Direct Air Capture, whichremoves CO2 from the atmosphere.
For more information,
read our press release at bhp.com.

Promoting market mechanisms to reduce
global emissions

In addition to measures to reduce our emissions, we support
the development of market mechanisms that reduce global
GHG emissions through projects that generate carbon credits.

In June 2019, we also committed to invest US$5 million in CO2CRC,
a research project to develop subsurface storage technologies
aimed at reducing the cost and environmental footprint oflong-term CO2 storage monitoring.

BHP Sustainability Report 2019

Our climate change strategy includes a focus on reducing
emissions from deforestation through support for REDD+, theUnited Nations program that aims to reduce emissions fromdeforestation and forest degradation. For example, in partnershipwith the International Finance Corporation (IFC) and Conservation
International (CI) we developed a first-of-its-kind US$152 million
Forests Bond, issued by the IFC in 2016. We provide a pricesupport mechanism for the bond, which supports the Kasigau
Corridor REDD project in Kenya. During FY2019, we purchased
additional carbon credits from the Kasigau Corridor project.

41

Climate change continued

In partnership with CI and Baker McKenzie, we launched the
Finance for Forests (F4F) initiative in FY2018, which aims to share
our experiences to help encourage replication of these investments
and the exploration of other innovative private finance tools toconserve forests and further advance REDD+. As the first phaseof F4F came to a close in June 2018, there was broad recognition
among the F4F participants that many companies understood theopportunity provided by REDD+ and were now seeking opportunities
for investment. We launched the Finance for Forests 2.0 (F4F2.0)
initiative with CI and Baker McKenzie in FY2019, to develop a suiteof innovative financial mechanisms to channel private sector
investment in REDD+.

Industry association membership
We believe industry associations have the capacity to play a keyrole in advancing the development of standards, best practices
and constructive policy that are of benefit to members, theeconomy and society. We also recognise there is stakeholderinterest in the nature and role of industry associations and theextent to which the positions of industry associations on key
issues are aligned with those of member companies.
We were one of the first major companies to review ouralignment with the advocacy positions on climate and energy
policy taken by industry associations to which we belong,and to share the findings and outcomes of this review publicly.
Our initial review was published in December 2017.

In FY2020, we will organise engagements to promote F4F2.0 andcontinue to deliver our REDD+ strategy, with scoping of our next
project investment underway. We are also exploring investmentsin blue carbon (carbon captured in coastal and marine ecosystems).

We continue to monitor the climate and energy policy
positions of our industry association memberships and tokeep our memberships of industry associations that holdan active position on climate and energy policy under review.
A further review of our industry associations was commenced
during FY2019. More information on our approach to industry
associations, including our updated register of material
differences on climate and energy policy, is available
online at bhp.com.

Supporting the development of effective climate
and energy policy

Industry has a key role to play in supporting policy development.
We engage with governments and other stakeholders to contributeto the development of an effective, long-term policy frameworkthat can deliver a measured transition to a lower carbon economy.
We believe an effective policy framework should include
a complementary set of measures, including a price on carbon,
support for low emissions technology and measures to build
resilience. We are a signatory to the World Bank's Putting a Priceon Carbon statement and a partner in the Carbon Pricing
Leadership Coalition, a global initiative that brings together
leaders from industry, government, academia and civil society
with the goal of putting in place effective carbon pricing policies.
Our CEO Andrew Mackenzie has also been appointed to theWorld Bank’s High-Level Commission on Carbon Pricing
and Competitiveness.

Managing risk and opportunity

We recognise the physical and non-physical impacts of climatechange may affect our assets, productivity, the markets in which
we sell our products and the communities in which we operate.
Risks related to the physical impacts of climate change include
acute risks resulting from increased severity of extreme weather
events and chronic risks resulting from longer term changes inclimate patterns. Non-physical risks arise from a variety of policy,
regulatory, legal, technological and market responses to thechallenges posed by climate change and the transition to a lower
carbon economy.

We also advocate for a framework of policy settings that will
accelerate the deployment of CCS. We are a member of the
Global CCS Institute and the UK Government’s Council on
Carbon Capture Usage and Storage.

A broader discussion of our climate-related risk factors and risk
management approach is provided in our Annual Report 2019,available online at bhp.com.

We contribute to policy reviews throughout our global operating
regions. For example, in FY2019 we made a submission to theAustralian Government’s consultation on the operation of the
Emissions Reduction Fund Safeguard Mechanism. We also
engaged with the Australian Energy Security Board, directly andthrough our industry association memberships, on the designof the National Energy Guarantee. We look forward to continuing
to work with governments to ensure climate and energy policy
frameworks are market based and technology neutral, andappropriately balance the goals of energy reliability, energy
affordability and emissions reduction.

Adapting to the physical impacts of climate change

We take a risk-based approach to adapting to the physical impactsof climate change. We work with globally recognised agencies
to obtain regional analyses of climate science to inform resilienceplanning at an asset level and improve our understanding of thepotential climate vulnerabilities of our operations and communities
in which we operate.
Our operations are required to build climate resilience into theiractivities through compliance with the Our Requirements forEnvironment and Climate Change standard. We also require
new investments to assess and manage risks associated withthe forecast physical impacts of climate change. As well as thisongoing business resilience planning, we continue to look atways we can contribute to community and ecosystem resilience.
We recognise the body of scientific knowledge about the potential
impacts of climate change is rapidly expanding and in FY2019,
we commenced a review of our adaptation approach in lightof the latest climate science.

BHP Sustainability Report 201942

Climate change continued

Engagement and disclosure

Evaluating the resilience of our portfolio

We consider the impacts of climate change in our strategy process.
We recognise the world could respond in a number of different
ways to address climate change. We use a broad range of scenarios
to consider how divergent policy, technology, market and societal
outcomes could impact our portfolio, including low plausibility,
extreme shock events. We also continually monitor a range ofdata sources to identify climate change-related developmentsthat would serve as a call to action for us to reassess the resilienceof our portfolio.

Our climate change strategy is supported by active engagementwith our stakeholders, including investors, policymakers andnon-governmental organisations, and with peer companies
where appropriate.
We periodically hold one-on-one and group meetings withinvestors and their advisers to explain our approach to climatechange. In FY2019, our climate-related investor engagement
included meetings held in Australia, the United Kingdom,
the Netherlands and the United States.

Our investment evaluation process includes an assessment of
non-quantifiable risks, such as those that could impact the people
and environment that underpin our contribution to social value.
The process has also incorporated market and sector-basedcarbon prices for more than a decade.

We also seek input and insight from external experts, such as the
BHP Forum on Corporate Responsibility (FCR). The FCR, which iscomposed of civil society leaders and BHP executives, has playeda critical role in the development of our position on climate change.
During FY2019, the FCR met twice, with one of the meetings
including discussion of the review of our climate change strategy.

Our Climate Change: Portfolio Analysis (2015) and Climate Change:
Portfolio Analysis – Views after Paris (2016) reports, which areavailable online at bhp.com/climate, describe in more detail how
we have used scenario analysis to evaluate the resilience of ourportfolio to an orderly and more rapid transition to a 2°C world.
We will update our portfolio analysis in FY2020, evaluating thepotential impacts of a broader range of scenarios, including
a transition to well below 2°C.

Informed by this engagement, we regularly review our approach
to climate change in response to emerging scientific knowledge,changes in global climate policy and regulation, developments inlow emissions technologies and evolving stakeholder expectations.

Climate-related financial disclosures

BHP was one of the first companies to align our disclosures withthe recommendations of the Financial Stability Board’s Task Forceon Climate-related Financial Disclosures (TCFD). We believe the
TCFD recommendations represent an important step towards
establishing a widely accepted framework for climate-related
financial risk disclosure and we have been a firm supporter of thiswork. Our Vice President of Sustainability and Climate Change,
Dr Fiona Wild, is a member of the Task Force.

We are committed to keeping our stakeholders informed of thepotential impact of climate change on our business and continue
to review and consider developing best practices and evolving
stakeholder expectations.

We are committed to continuing to work with the TCFD and ourpeers in the resources sector to support the wider adoption of the
TCFD recommendations and the development of more effective
disclosure practices within the sector.
For details of our TCFD-aligned disclosures on climate-related financial
risk, refer to our Annual Report 2019, available online at bhp.com.

BHP Sustainability Report 201943

WaterAccess to safe, clean water is abasic human right and essential
to maintaining healthy ecosystems.
In this section, we disclose how
we manage our water interactions
and risks – from extraction to use
and discharge. We also share our
performance and how we aretracking against targets.

In this section:
Water stewardship: a shared responsibility
Our approach
Water and risk at BHP
Water governance
Water performance

For our water data disclosures,
see the Appendices:
BHP water sensitivity assessment
Detailed significant water-related risks
Performance data – water
BHP asset-level water data summary

BHP Sustainability Report 201944

Water

Water is central to livelihoods, the health of the environment and the sustainability of our business.
Without access to water, our business simply could not operate.

Water stewardship: a shared responsibility

For a more detailed example of how we interact with water,
read our case study Water stewardship at Olympic Dam at
bhp.com/community/case-studies.

Communities, governments, business and civil society must work
together so that fresh and marine water resources are conserved,
become resilient and continue to support healthy communities
and ecosystems, maintain cultural and spiritual values and sustain
economic growth.

We have a responsibility to effectively manage our interactions
and minimise impacts on water resources. We also recognise
the importance of working with others to enable more effective
water governance and stewardship across the communities,
regions and countries where we operate.

Water is a vital shared resource that is essential to life. Access toclean, safe water is a basic human right.

Effective water stewardship must begin within our operations.
From there, we can more credibly collaborate with others toward
solutions to shared water challenges.

Water is integral to what we do and vital to the sustainability of ourbusiness. We cannot operate without it. We interact with waterin a number of ways, including:

Responsible water management will ultimately make our businessmore resilient in the long term and positively contribute to an
enduring environment and social value.

• extracting it for activities including ore processing, cooling,
dust suppression and processing mine tailings;• managing it to access ore through dewatering, as part of the oilrecovery process and at our closed operations;• providing drinking water and sanitation facilities;• discharging it back to the receiving environment;• interacting with marine water resources through our offshore
Petroleum business and port facilities;• utilising marine water for desalination.

Other industry
Government

GroundwaterCommunity

Surfacewater

Environment

Resourcesindustry

Agriculture

Resourcesindustry
Sea water

BHP Sustainability Report 201945

Water continued

About this water section

Complementing our Water Stewardship Strategy are our public
target and longer term goal, established in FY2017. Our five-year
water target seeks to reduce FY2022 freshwater withdrawal(1)by 15 per cent from FY2017(2) levels. Our longer term goal is tocollaborate to enable integrated water resource management
in all catchments where we operate by FY2030 (in support of
the UN Sustainable Development Goal 6).

We produced our inaugural Water Report in FY2018 to highlight
our efforts and reflect water’s importance to society and ourbusiness. For more information, refer to our Water Report 2018,available online at bhp.com.
While our focus remains as strong as ever on disclosure of ourwater activities, we have brought our water reporting back into
the context of a Sustainability Report to integrate all aspectsof our sustainability approach.

Progress against our Water Stewardship Strategy, target and goalis reported in the Our water performance section.
In FY2019, we developed our Water Stewardship Position Statementthat expresses BHP’s commitment to, and advocacy for water
stewardship. The Position Statement will be implemented
from FY2020. It outlines our vision for a water-secure world by2030. The Statement was developed following broad internaland external engagement and is aligned to the UN Sustainable
Development Goals and other initiatives. It describes thechallenges facing fresh and marine waters across the globe andreinforces that it is everyone’s responsibility take action together.
Our approach to realising this vision includes taking action toenhance water management within our business and catalyse
actions to strengthen water governance beyond our operations.

This water section is based on the International Council on Mining
and Metals (ICMM) ‘A Practical Guide to Consistent Water Reporting’minimum disclosure standard. For more information on how thissection meets this standard, refer to our 2019 Sustainability
Reporting Navigator, available online at bhp.com.
This section has also taken account of other disclosure frameworks,
such as the United Nations (UN) Global Compact’s CEO Water
Mandate (CEO Water Mandate), the G4 Global Reporting Initiative,
and the Carbon Disclosure Project Water disclosure requirements
and serves as BHP’s annual Communication of Progress against
the core elements of the CEO Water Mandate.

Our approach

Aligned to this vision, we will set additional asset-based andregionally specific water targets. These targets will seek to improve
our water management and support shared approaches to address
water challenges within the regions in which we operate.

Our Water Stewardship Strategy was adopted in FY2017 to improve
our management of water, increase transparency and contribute to
the resolution of shared water challenges.

Beyond our operations, we will work with others on a sharedapproach to effective water governance. Our priorities will bearound transparency, collaboration, and knowledge and innovation.

We have reported our water withdrawals and discharges, andhad water-specific public targets in place for more than 15 years.
While water stewardship is not new for us, we can do more.

For more information, refer to the Next steps section.

BHP’s approach to Water Stewardship
Drivers

Outcomes

ClimatechangeOur vision

Water Stewardship Position Statement:
Water secure world by 2030

Water
scarcity

Our strategy

Water Stewardship Strategy:
Value, Collective Action, Risk, Technology, Disclosure

Water
excessOur progress

2030 longer-term goal supporting integrated water resource management
FY2022 withdrawal reduction target
Asset-level, context-based targets (in development)

Societalrisk

Our standards

Environment &Climate Change
Our Requirements

Businessrisk

Beyond ouroperations

Water
Management
Standards

Other Group-widestandards
e.g. risk, planning

Contributing to improved water governance through transparency,
collaboration and knowledge and innovation

Water
securitySocialvalue
Environmental
resilience
Businessresilience(1) Where ‘withdrawal’ is defined as water withdrawn and intended for use (in accordance with ‘A Practical Guide to Consistent Water Reporting’, ICMM (2017)). ‘Freshwater’is defined as waters other than sea water, waste water from third parties and hypersaline ground water. Freshwater withdrawal also excludes entrained water that would not
be available for other uses. These exclusions have been made to align with the target’s intent to reduce the use of freshwater sources subject to competition from other users
or the environment.
(2) The FY2017 baseline data has been adjusted to account for: the materiality of the strike affecting water withdrawals at Escondida in FY2017 and improvements to water balancemethodologies at WAIO and Queensland Coal. Discontinued operations (US Onshore assets) have been excluded.

BHP Sustainability Report 201946

Water continued

BHP Water Stewardship Position Statement
Our water stewardship visionA ‘water secure’ world by 2030

Now is the time for us all to think big and take action to tackle the challenges facing water.
Fresh and marine waters on which the environment, communities and livelihoods depend areunder increasing pressure, especially from climate change, pollution and population growth.
BHP’s vision is for a ‘water secure’ world by 2030, an aim consistent with the United Nations
Sustainable Development Goals. A world where water resources are conserved and resilient
so they can continue to support healthy ecosystems, maintain cultural and spiritual values
and sustain economic growth. A world where the human right to safe and accessible waterand the traditional rights of Indigenous peoples are realised and upheld. A world wherewater governance is effective and beneficial, ensuring communities and ecosystems thrive
for future generations.
To make this vision a reality, we all have a role to play.

Our water stewardshipcommitment
Realising the vision
within our operations

Within our operations, BHP commits to realising our 2030 vision by setting public,
context-based, business-level targets that will aim to both improve our managementof water and support shared approaches to water management within the regions
where we operate. Our Water Stewardship Strategy will underpin these targets, acrossthe life cycle of our operations:• Value – Effectively value the social, environmental and economic dimensions of water in ourdecision-making.
• Risk – Embed processes and systems to manage water-related risks and realise opportunities
in the short and longer term.
• Disclosure – Transparently disclose water-related risks, management and performanceat an asset level.
• Collective action – Work with stakeholders within the regions where we operate to support
shared approaches to water management.
• Technology – Leverage technology solutions that drive a step-change reduction in waterrelated risks, realise opportunities and deliver multiple benefits.
We commit to listening and learning from others to better understand and continuously improve
our approach to water stewardship. We will share our learnings and engage with our suppliers,
customers and non-operated asset partners on their journeys towards water stewardship.

Our water stewardshipcontribution
Realising the vision
beyond our operations

Beyond our operations, BHP will contribute to realising our 2030 vision by engaging acrosscommunities, government, business and civil society with the aim of catalysing actions toimprove water governance, increase recognition of water’s diverse values and advancesustainable solutions.
We will work with others to make regional, national and international progress towards
addressing shared water challenges by focusing on the following priority areas of action:• Transparency – Enhancing the collection and meaningful reporting of water use andperformance data by all users is fundamental to effective governance of water resources.
• Collaboration – Enabling inclusive water governance is essential to delivering outcomesthat reflect water’s shared spiritual, cultural, recreational, ecological and economic values.
• Knowledge and innovation – Expanding knowledge of water issues and opportunities andsupporting solutions-driven collaborations are crucial to accelerating policy-, natureand technology-based innovations.

BHP Sustainability Report 201947

Water continued

Water and risk at BHPRegulation: The regions in which we operate have reasonably
mature regulatory systems for water extraction, use and discharge.
Typically, our licences prescribe the quantity of water we are
permitted to extract during a defined period and the quantityand quality of water discharged.

BHP’s strategy means we must plan our water use and interactions
for the long term. We need to consider both our operational
needs and the potential for regional changes to water resources
due to climate change, pollution, population growth andchanging expectations.

For a detailed summary of our water sensitivity assessments
for each asset and the catchment in which they are located,refer to the BHP Water senstivity assessment in the Appendix.
It is estimated that 64 per cent of our assets are operating inareas of moderate-to-high water sensitivity. We have seen an
increase in water sensitivity at our Queensland Coal assets
compared to FY2018. This is due to an increased focus bystakeholders and regulators in relation to water interactionsin the region more broadly.

As part of our risk management processes, our assets andfunctions are required to assess and manage the potential
water-related risks from their activities. Our Water Stewardship
Strategy has been progressing a range of improvements inrelation to water-related risk management.

BHP and water sensitivity

The management of water-related risks needs to reflect the different
settings in which we work. These include the physical environment,
hydrological systems and socio-political and regulatory contexts.
Risk management must also take into account the interactions that
we and others have with water resources.

Escondida and Pampa Norte also rate as having high water
sensitivity due to the extremely dry and remote locations ofthese operations. Groundwater resources in these regions arelimited and highly significant to both the environment and local
communities, including Indigenous peoples. Given the different
operating contexts in the United States and Canada, this year
we have split out our North American legacy assets assessmentin the BHP Water senstivity assessment in the Appendix,
to provide more granularity.

To better understand the water-related risks for our business at
a portfolio level, BHP has assessed the water sensitivity of thelocations in which we operate.
We define water sensitivity as the degree (high, moderate or low)
to which a region is sensitive to a range of water-influencing factors.
This assessment is primarily qualitative.
The factors we assess are:Climate: Different climatic conditions influence the availabilityof water and the way in which water interacts with the physicalenvironment. We operate in a range of climate zones.
BHP water source interactions: The water resources we extractfrom and discharge to vary across each asset and influence theexposure we have to particular water resources (i.e. surface, groundor marine water resources).
Competition for resources: Most of our assets share water
resources with others, including communities, agriculture,industry and the natural environment. As a result, we consider
a number of factors, including stakeholder concerns andexpectations, cumulative impacts and the extent to which
the resource is shared with communities and the environment.
We apply baseline water stress (using World Resources Institutecategories) to inform the sensitivity of the water resource tocompetition by evaluating the total withdrawal from the resourcecompared to the total water resource available. A higher ratio
indicates more potential for competition and thus the risk ofhigher stress.
Sustainability of water resource: Water resources havehydrological properties, such as the inherent quality andsustainable quantity of the water resource required to maintainthe resource itself, and the dependent environmental and social
values. Understanding water resource sustainability and thetolerance to climatic and other changes is essential to effectively
manage the impacts to and from BHP. This is the first year we haveincluded this category.

BHP Sustainability Report 201948

Water continued

BHP water sensitivity assessment

Water sensitivity across BHP assets

Australia
Asset or Region
1. Queensland Coal (BMA/BMC)
2. NSW Energy Coal
3. Petroleum
4. Nickel West3

5. Olympic Dam

61

6. Western Australia Iron Ore
7. Escondida

45

8. Pampa Norte2

9. Potash
10. Legacy assets Canada
11. Legacy assets United States
Catchment Level Sensitivity(BHP Assessed)High
Moderate
Low

Canada, North America and South America

Climate zone(1)(2)10Warm temperate
humid, hot

910Warm temperate
humid, coolWarm temperate
to arid11
3

Warm temperatesteepe, hot
3

Subtropical to tropical(offshore)
Boreal to warm
temperate
Cold humid,seasonal extremes

8
7

Arid, cold desert
Arid, hot desert(1) In accordance with Köppen-Geiger climate classification terminology.
(2) Climate zones are one element, but not all, that contribute to our assessment of water sensitivity (BHP assessed). Refer to the appendix BHP Water sensitivity assessment
for further details.

BHP Sustainability Report 201949

Water continued

Our water-related risks

A more detailed description of BHP’s significant water-related risks,
their potential impacts and the controls BHP employs to manage
these risks is included in the Detailed significant water-related risks
in the Appendix.

Our water-related risks are influenced by the water sensitivity inthe regions where we operate. Water-related risk management
is conducted according to BHP’s Risk Framework. For information
on risk management, refer to the Managing risk section.

The significant water-related risks across our assets are summarisedin the table below. This year, we have classified the significanceof BHP’s water-related risks as follows:

Each risk has the potential to impact:• the health and safety of our employees, contractors andcommunity members;• communities, including social and economic viability, as well as
spiritual and cultural values;• environmental resources, including water, land and biodiversity;• legal and regulatory compliance;• reputation;• production and financial outcomes.

• Tier 1: Water-related risks that may have significant
consequences, in the absence of controls;• Tier 2: Water-related risks that are still important, but may havelower consequences, in the absence of controls or are still
emerging risks;• n/a – Risk that is not applicable at that asset.
Given this assessment has not taken into account the effectivenessof controls to manage these risks, the table should be read asa hypothetical representation of the worst-case potential risk.

Significant water-related risks across BHP assets

Escondida

NickelWest

North
AmericanlegacyassetsNSW
EnergyCoal

Olympic
Dam

Pampa
Norte

Petroleum

Catchment level

1

1

1

1

1

1

n/a

1

1

1

Climate change

2

2

2

2

2

2

2

2

2

2

Closure

2

2

1

2

2

2

1

2

2

1(2)

Compliance

1

1

1

1

1

1

1

1

1

1

Dewatering

1

2

n/a

2

2

1

n/a

2

2

1

Risk area

(1)

(3)

Queensland Queensland
Coal (BMA) Coal (BMC)

WAIO

Extreme weather

1

2

2

2

2

1

1

1

1

1

Marine

1

2

2

n/a

n/a

n/a

1

1

1

2

Tailings

1

1

1

1

1

n/a

n/a

1

1

1

Water accesssanitation andhygiene

1

1

1

2

1

1

1

1

2

1

Water
infrastructure

1

1

2

2

1

1

2

1

1

2

Water quality

2

2

1

2

1

2

2

1

1

2

Water security

1

2

n/a

2

2

1

n/a

1

2

2

1 – Tier 1

2 – Tier 2

n/a – not applicable(1) This rating does not include water-related risks associated with current operations facilities that may emerge at closure.
(2) For closure, the WAIO asset assessment includes the Beenup and Newcastle legacy assets that are currently managed by WAIO.
(3) The removal or drainage of water from rock, soil or tailings.

BHP Sustainability Report 201950

Water continued

Examples of significant water-related risks

Extreme weather risk

A number of our assets are already managing extreme weather
risks. These risks have been identified as Tier 1 at WAIO (cyclones),
Escondida (extreme precipitation events), Pampa Norte (extreme
precipitation events), Queensland Coal (extreme rainfall andcyclones) and Petroleum (cyclones).

Catchment-level risk

Catchment risk has been classified as Tier 1 across all mining assets
as the nature of these operations coupled with their physicalcontext means there is the potential to significantly impact water
resources and related environmental and/or social values. This may
arise either as a result of direct impacts from BHP’s operations or
cumulative impacts arising from our activities combined with thoseof others within a region.

The climate at our Queensland Coal operations is characterised
by wet season rainfall, which includes tropical cyclone events that
produce most of the annual rainfall and a dry season during whichlittle rainfall occurs.

For example, our Western Australia Iron Ore (WAIO) operations in
the Pilbara region of Western Australia are located alongside othermining companies’ operations. The cumulative effect of combined
activities has the potential to impact aquifers of groundwater that
support local ecosystems and have important spiritual and cultural
significance for Indigenous communities.

Mine-affected water (MAW) is one of the key water risks for
Queensland Coal. MAW is rainfall runoff from active mining areas
and other water that has been used in the mining process. MAW
is typically stored in mine pits and dams. Over time, this water may
become more saline due to evaporation or it may have increased
suspended solids due to wash down or erosion from surrounding
mining activity. MAW is used for dust suppression and coal washing.
Too little MAW may limit production. Similarly, excess water inoperational pits may obstruct access and limit production.

To better understand potential impacts, WAIO conducted astrategic environmental assessment that took a regional approach.
A key element of the assessment was to understand the potential
cumulative impacts and management strategies associated withsurface water and groundwater. An analysis was undertaken to
identify key, water-dependent environmental assets within theupper Fortescue River catchment.

Water management activities aim for the balance between too
much and too little water on each site. This allows sufficient storage
for runoff from rainfall events, while not impacting production andnot allowing unauthorised site discharge of MAW. Discharge of MAW
needs to be managed in accordance with licence conditions,which in some cases may require treatment of MAW prior todischarge. Appropriate management will minimise out-of-season
flow in ephemeral creeks and rivers, which has the potential(if not controlled) to increase sediment and salt loads.

This innovative approach has allowed WAIO to develop proactive,
outcome-based management actions to cumulative-impact risks.
These actions now inform short and long-term mine planning to
avoid and minimise impacts to water-dependent environments.
Escondida’s operations have the potential to impact the culturaland spiritual values associated with local water resources. In 2017,
Escondida ceased its operational extraction from one of the main
local aquifers, Salar de Punta Negra. In line with our sustainability
principles and to perform a transition to a fully desalinated watersupply, by 2020, Escondida has committed to reduce the water
extraction from the aquifer underlying the Monturaqui wellfield
by approximately 70 per cent, and to cease all groundwater
extractions for its operation by 2030. Planning for this gradualdecrease in extractions is taking place in close consultation with
the Lickanantay Indigenous communities. Escondida’s desalination
plant is now in operation, supporting this transition away fromregional groundwater aquifers.

Due to a series of extreme rainfall events, excess water
management is central to Queensland Coal’s operating strategy.
Some BMA sites still hold excess water after the 2011 and 2013
floods and cyclone Debbie in 2017. One way of managing thisis to move MAW from sites with water excess to sites that have
too little water. An additional control is to avoid the accumulationof additional water from excess rainfall events. BHP undertakes
detailed studies on an ongoing basis that assess the benefit andcost of various options to manage excess water.
In addition, ongoing modelling and simulations are used to estimate
flood risk. These estimations inform appropriate flood risk mitigation
activities, which include construction of flood levees andpreparation of emergency evacuation plans.
Climate change presents an emerging risk for all BHP assets
which is why it is currently rated as Tier 2 for all assets. It is
expected to heighten existing risks, such as these extreme
weather risks and introduce new ones.

BHP Sustainability Report 2019

51

Water continued

Value chain riskMarine risk

From a marine perspective, key risk events include, for ourpetroleum assets, loss of containment of hydrocarbons andfor our mineral assets, desalination facilities that dischargehigh salinity water in low volumes; port operations located in
proximity to communities and/or key marine areas; and otherpotentially uncontrolled operational discharges.

Water-related risks can indirectly affect operations via our value
chain, from supply to operations to customers. For example,
floods in one part of the world may affect supplies of a critical
input or item of equipment necessary to sustain our operations.
Additionally, tightening regulation around water discharges
in a particular country or region may constrain our customers’
manufacturing operations. This may have flow on effects toour ability to sell certain commodities.

A catastrophic hydrocarbon (oil) loss of containment from an
offshore facility into the marine environment is a major incident
event with the potential for serious environmental and social
impacts. A number of controls are in place to manage this risk
to as low as reasonably practical. These include:

Following a high-level assessment of our value chain risk
undertaken in FY2018, we identified a concentration of suppliersand customers in China. In FY2019, we began a more detailed
assessment of value chain water-related risks in this region,
which will further our understanding of opportunities to workwith suppliers and customers to better manage water-related risks.

• pressure relief systems, engineering design specifications,passive protection and bunding, treatment and collection
systems and continuous monitoring during operations;• use of management controls, such as job risk assessment,
management of change process, on the job assessments,
toolbox talks and emergency preparedness plans and drills;• oil plume modelling to inform potential impacts and controls
to minimise impacts;• operational procedures that include performance standards
for critical equipment and maintenance activities, inspections
and audits, and testing of emergency systems.

Non-operated assets

For information on BHP’s interests in companies and joint venturesthat we do not operate and how we engage with them aroundsustainable development, refer to the Sustainability at our
non-operated minerals joint ventures and petroleum nonoperated assets section.

Petroleum non-operated assets

In our current petroleum non-operated assets, we have processes
in place to identify and manage risks within the rights afforded by
the respective joint operating agreements. An example is in Bass
Strait, offshore Victoria, Australia, where a number of water-relatedrisks are being monitored by the operator as part of our joint
venture arrangement. These include risks associated with perfluoroalkyl and poly-fluoroalkyl substances, non-aqueous phase
contamination and oil-in-water metering.

Water access, sanitation and hygiene risk

Water access, sanitation and hygiene is a Tier 1 risk at all assets
where drinking water and sanitation facilities are provided forthe workforce and/or communities.
For example, WAIO provides drinking water to the communityof Newman, five operational mining areas and one closed mine,and supplements supply to its port and rail assets. Therefore,
management of this water is critical to our operations andsurrounding communities. To manage this risk, WAIO adopts
a management system approach based on ISO 9001, which
integrates World Health Organisation and the Australian Drinking
Water Guidelines requirements, as well as a number of international
standards to enable a holistic approach to drinking water safety
and infrastructure management.

BHP Sustainability Report 2019

Non-operated minerals joint ventures

Water stewardship is as vital for our non-operated joint ventures(NOJVs) as for our operated assets. We have actively engaged with
our NOJVs to better understand their water-related requirements.
For example, we have worked with Antamina and its shareholders
to secure their commitment to align with ICMM sustainability
principles. In addition, Cerrejón is implementing a water
management approach focused on efficient use of water anda basins-based approach. It is also increasing stakeholder
engagement to better understand the needs and concerns oflocal communities. For more information, refer to cerrejon.com.

52

Water continued

Risk management can create opportunities

Although the ICMM Guidelines are in general alignment with the
WAF and the basic reporting requirements of the Global Reporting
Initiative, alignment to the ICMM Guidelines has resulted in somechanges to the way we now report water data.

Effective water-related risk management can contribute tolong-term business, social and environmental benefits, such as:• increased productivity;• improved community benefits;• improved water disclosure and governance;• reputational benefits;• increased business opportunities;• reduced liabilities and long-term legacy issues;• increased long-term business resilience.

A key change relates to the terminology we use. We now describe
our water inputs as water withdrawals and what we previously
referred to as water outputs is now referred to as water
consumption or water discharges.
We report our water withdrawals (water intended for use by thesite or operational facility) by source and water discharges andconsumption (water used by the site or operational facility) byreceiving body.

An example of an opportunity from effective risk management
is how our WAIO operations manage dewatering. Dewatering at
WAIO produces more water than is required for mining activities.
This surplus water is a valuable resource and WAIO’s preference
is to implement a controlled return of this water to aquifers througha managed aquifer recharge process. This approach has a numberof benefits. It preserves the water resource for future use by BHP
or other parties, minimises our environmental footprint andplaces less impact on the cultural heritage values of thesurrounding landscape, which is an important consideration
for Traditional Owners.

During FY2019, BHP continued to focus on improving therobustness of water data in line with the ICMM Guidelines.

Glossary: ICMM water reporting terms used by BHP

BHP’s Water Stewardship Strategy seeks to leverage technology
solutions to significantly reduce water-related impacts and deliver
benefits beyond our operations.
We have initiated a global review of emerging and potentially newtechnology, which could provide solutions within the themesof water treatment and water recovery. Some examples include:• Olympic Dam tailings decant water treatment for reuse andto partially offset Great Artesian Basin supply;• Escondida tailings dam water recovery/treatment for reuse;• Queensland Coal mine affected water treatment for reuseor discharge.

Term

Description

Withdrawal

The volume of water received by the site oroperational facility from the water environment
and/or a third party supplier.

Discharge

The volume of water removed from the siteor operational facility to the water environment
and/or a third party supplier.

Consumption

The volume of water used by the site oroperational facility and not returned to thewater environment or a third party.

Diversion

Water actively managed by a site or operational
facility but not used for any operational
purposes. Diversions are reported as bothwithdrawals and discharges and may include:• flood waters that are discharged to an externalsurface water body;• dewatering volumes produced by aquiferinterception that are reinjected to
groundwater or discharged to surface water.

Water governance

We have a range of core business processes, requirements andguidance materials that apply to our management of waterat Group and operational levels. These include:• our corporate planning, scenario, strategy and investment
evaluation processes;• standards such as Our Requirements and other Group-widestandards, including those on risk management, environmentand climate change, closure, human rights, community andstakeholder engagement;• technical water management standards.
For more information, refer to Our sustainability approach section.
BHP has established cross-functional teams to implement ourapproach to water stewardship at Group and regional levels.
These teams include representatives from Planning; Engineering;
Strategy; Health, Safety and Environment; Community; Corporate
Affairs; Operations; Risk; and Legal.

Water accounting

Water of high quality that would require
minimal (if any) treatment to meet drinking
water standards.

Water quality– Type 2

Water of medium quality that would require
moderate treatment to meet drinking water
standards (it may have a high salinity thresholdof no higher than 5,000 milligrams per litre
Total Dissolved Solids and other individual
constituents).

Water quality– Type 3

Water of low quality that would requiresignificant treatment to meet drinking water
standards. It may have individual constituentswith high values of Total Dissolved Solids,
elevated levels of metals or extreme levels of
pH. This type of water also includes sea water.

BHP has continued to group water quality into three categories
in line with the WAF as this provides more granularity. Type 1
and Type 2 equate to high-quality water, while Type 3 equates
to low-quality water under the ICMM Guidelines.

We have publicly reported our water withdrawals and discharges
for more than 15 years, since the establishment of the Minerals
Council of Australia’s Water Accounting Framework (WAF) InputOutput Model.
We transitioned our reporting in FY2019 to align with the ICMM
‘A Practical Guide to Consistent Water Reporting’ (ICMM Guidelines),
an international accounting framework for our sector.

BHP Sustainability Report 2019

Water quality– Type 153

Water continued

Water performance
Progress on our Water Stewardship Strategy
Strategy pillar

What we did in FY2019

Risk

We issued an internal Water Management Standard that set mandatory requirements
for water-related risk management, planning and review. This standard will help toensure consistency across all operations, while accommodating regional context.

Embed processes and systems to effectively
manage water-related risk and realise
opportunities at a catchment level in the
short and longer term.

We developed two internal global water standards to improve our approach todrinking water and water data management processes.
All three standards form part of BHP’s ‘three lines of defence’ model of risk
governance and management. The business is currently progressing towards
compliance with these standards.
We reviewed priority water-related risks, undertook a review of the robustness of
our water-related data and commenced the integration of long-term water strategy
in standard planning practices for all assets.
We identified actions to improve our understanding of risks within the catchments
in which we operate, taking account of environmental, community and third party
interactions.

Technology
Leverage technology solutions that drivea step-change reduction in water-relatedrisks, realise opportunities and deliver
multiple benefits.
Value
Effectively value water in investment andoperational decisions through integration into
strategy, planning and evaluation frameworks.
Disclosure
Transparently disclose water-related risks,management and performance at an
asset level.
Collective action
Collaborate with stakeholders to improve
regional water policy and catchment
governance and address shared water
challenges within our communities andacross our value chain.

BHP Sustainability Report 2019

We continued to progress our technology road map and reviewed technologies
available for water recovery from tailings, water data management systems andwater treatment options.

We collaborated with the Columbia University Water Center (in the United States)
to explore approaches to water valuation through a retrospective case study of ourEscondida desalination decision. A synthesis report of the findings can be viewed
at www.water.columbia.edu/research-themes/risk-and-financial-instruments/
risk-based-water-valuation-for-mining-companies/.
We sought feedback from investors, NGOs and other stakeholders on our first
Water Report and have sought to reflect and build on that feedback in this Report.
We transitioned our water reporting to align with the ICMM Guidelines.
We have developed a Water Stewardship Position Statement following broad
engagement with external stakeholders.
We have continued to collaborate with the CEO Water Mandate, including supporting
an initiative to harmonise water accounting.
We developed internal guidance on collective actions and participated in collective
action initiatives across our portfolio to address shared water risks.

54

Water continued

Our water target and goal

Performance against freshwater withdrawal
reduction target megalitres

In FY2017, we announced a new five-year Group-wide water target
and longer term goal. The five-year target is to reduce FY2022
freshwater withdrawal(1) by 15 per cent from FY2017(2) levels. The
target was developed taking account of each asset’s circumstancesand focused on the use of freshwater as it is generally the mostimportant water resource for communities and the environment.

200,000

150,000

Our longer term goal is to collaborate to enable integrated water
resource management in all catchments where we operate by
FY2030. It is aligned to the United Nations Sustainable
Development Goal 6 that seeks to ‘ensure availability andsustainable management of water and sanitation for all’.

100,000

50,000

Performance against freshwater withdrawal reduction target

Freshwater withdrawal increased 9 per cent in FY2019 comparedto FY2018. However, overall we remain on track to attain the
15 per cent reduction target by FY2022, with FY2019 withdrawals
1 per cent below the FY2017 adjusted baseline, as shown on theright. Continued improvements in data quality and understanding,particularly at WAIO and our Queensland Coal assets, resulted indata changes that required restatements to FY2017 data which form
part of the FY2017 baseline. Reductions in freshwater continued
as a result of increased throughput of the desalination plant at
Escondida and the subsequent reduced reliance on the region’s
aquifers. The most material increase in water withdrawal was at
WAIO, due to increases in production and water required for dust
suppression and ore processing.

0

FY2017 FY2018 FY2019 FY2020 FY2021

Freshwater withdrawal

FY2022 target

All data excludes Discontinued operations (Onshore US).

Performance against our longer term goal

Much of our initial collective action work is directed at supporting
local integrated water resource management (IWRM) initiatives.
During FY2019, we commenced the development of guidanceon how to approach collective action in support of IWRM. Effective
disclosure is fundamental to the success of IWRM initiatives andwe have continued to collaborate with the CEO Water Mandate
to support harmonisation of water accounting standards. We see
this as a critical step to enhancing transparency and collaboration
across all sectors for improved water governance. In line with ourWater Stewardship Position Statement, we anticipate releasing
the initial set of context-based, business-level targets by FY2022.

(1) Where ‘withdrawal’ is defined as water withdrawn and intended for use (in accordance with ‘A Practical Guide to Consistent Water Reporting’, ICMM (2017)). ‘Freshwater’ isdefined as waters other than sea water, waste water from third parties and hypersaline ground water. Freshwater withdrawal also excludes entrained water that would not
be available for other uses. These exclusions have been made to align with the target’s intent to reduce the use of freshwater sources subject to competition from otherusers or the environment.
(2) The FY2017 baseline data has been adjusted to account for: the materiality of the strike affecting water withdrawals at Escondida in FY2017 and improvements to water balancemethodologies at WAIO and Queensland Coal in FY2019. Discontinued operations (Onshore US assets) have been excluded.

BHP Sustainability Report 201955

Water continued

Water performance summary

The below summarises BHP’s global water performance for FY2019.

over 80 per cent of our withdrawals being either Type 2 or Type 3
water quality.

For a Group-wide, year-on-year comparison of our water data,
refer to Performance data – Environment and Performance data
– Water appendices. For asset-level performance for FY2019, referto the BHP asset-level water data summary appendix.

This is the first year we have reported consumption (these data
were previously captured in output, now termed discharge, data).
Evaporation and entrainment(3) data, account for the majority
of consumed water.

It should be noted that for all water performance data presented
in this section, Discontinued operations (Onshore US assets) havebeen excluded.

Over 80 per cent of our assets measure elements of their withdrawal
and discharge volumes. We simulate or estimate elements, such as
evaporation and entrainment volumes, as these are challenging tomeasure and vary over time due to seasonal and product variability.
Estimation is also used in some instances (e.g. for runoff at
Queenlsand coal) for quality categorisation.

Sea water continues to be our largest source of water withdrawn,
representing close to half of total withdrawals, influenced largely
by desalination at Escondida. Groundwater is our next mostsignificant withdrawal, at over one-third of total withdrawals,
driven by WAIO and Escondida. Surface water withdrawals, largely
influenced by rainfall, are primarily driven by our Queenlsand coalassets. Where possible, we seek to use lower-quality water withDuring FY2019, BHP continued to improve our water data fromboth a volume and quality categorisation perspective. We also
released an internal Group-wide water data standard. As a result,
we expect our water reporting to continue to strengthen.

Consumption(1)
Total

268,620 ML
Evaporation

139,980 ML (52%)

Entrainment(3)107,270 ML (40%)

Other21,370 ML (8%)

Withdrawals(2)Discharges

Total

Total

352,950 ML

119,250 ML

Withdrawals (by source)

Discharges (by destination)

Sea water

Sea water

169,100 ML (48%)

114,450 ML (96%)
Surface water

Ground water

2,940 ML (2.4%)

133,260 ML (38%)

Groundwater

Surface water

50,580 ML (14%)

1,540 ML (1.3%)

BHP
Operations

Third party

320 ML (0.3%)

Total
discharges

Total
withdrawals(by type)(by quality)

Type 1 – 58,850 ML (16%)
Type 2 – 37,560 ML (11%)
Type 3 – 256,550 ML (73%)

Type 1 – 0 ML (0%)
Type 2 – 3,060 ML (2.5%)
Type 3 – 116,190 ML (97.5%)

Diversions
Diversions

Diversions(Discharges)(Withdrawals)

Total

101,520 ML

Total

Dewatering

Stormwater
management

Third-party
water supply

72,500 ML(1) Evaporation and entrainment, previously reported as water outputs under the WAF, have been reported under consumption to align with the ICMM Guidelines.
(2) Includes rainfall and runoff volumes captured and used during the reporting year; rainfall and runoff volumes that have been captured and stored are excluded
and will be reported in the future year of use.
(3) Entrainment includes water incorporated into product and/or waste streams, such as tailings, that cannot be easily recovered.

BHP Sustainability Report 201956

Water continued

Next steps

During FY2019, we continued to work on our Water Stewardship
Strategy. Significant milestones included the development of
our Water Stewardship Position Statement and Group-wide
technical standards.
Water stewardship will enter a new phase of implementation in
FY2020; firstly, within our businesses, as we embed enhancements
to risk management and then more broadly, as we seek to establish
additional collaborations to move towards our vision of water
security for all.
We will build on our current public targets with the developmentof context-based, business-level water targets. The developmentof these targets will vary across our assets, as we consider boththe nature of our interactions with water and the shared water
challenges within each region.
We anticipate releasing an initial set of context-based, businesslevel water targets by FY2022.

Image: 'The Pilbara Project'. Photograph by Peter Eastway 2001.

BHP Sustainability Report 201957

Society
We are committed to developing
and strengthening relationships
with communities based on respect,honesty and trust.
Our collaborative approach tobuilding meaningful and sustainable
partnerships lays the foundation forsocial value and delivers a positive
contribution to the quality of lifeand resilience of communities
where we have a presence.

BHP Sustainability Report 2019

In this section:
Working with communities
Respecting human rights
Indigenous peoples

58

Society

We believe we are successful when we work in partnership with communities to achieve long-term social,environmental and economic outcomes. To support this, we must consider social value in our decisionmaking and work with communities where we have a presence. Social value is the sum of our contribution tosociety underpinned by respectful and mutually beneficial partnerships that prioritise social, environmental
and economic outcomes. Through this approach, we can create opportunities and address challenges that
we cannot solve alone.
where we have a presence and supporting the achievementof the United Nations (UN) Sustainable Development Goals.
Our long-standing commitment to invest not less than 1 per centof our pre-tax profit(1) continued in FY2019.

In FY2019, we completed an in-depth review of how we understandand support social value. The purpose of the review was to identify
areas for improvement that will help us achieve our goal of building
social value. The review focused on how we can improve ourcapacity to connect to communities, understand their ambitions
and work to empower these communities. Implementation of
the review’s recommendations commenced in FY2019, basedon a phased approach according to business and community
priority needs.

Guided by our Social Investment Framework, community
development projects and donations align to three core themesof governance, human capability and social inclusion, andenvironment. However, we understand that without building
meaningful partnerships and connections, social investments
will not achieve their maximum potential. That is why we workwith communities to embrace collective action and advocacy.

Understanding what communities and stakeholders think of BHP
is central to our ability to build social value. We need to know our
stakeholders and their areas of interest and influence, and we needto spend time with them. We understand the significance ofdialogue with communities to develop a common approach to
managing the impact of and realising benefits from our operations.

The BHP Foundation, a charitable organisation establishedand funded by BHP, continues to work in partnership withinternationally recognised institutions, think tanks and nongovernment organisations to address some of the most criticalsustainable development challenges facing society that are
directly relevant to the resources sector. For more informationon the BHP Foundation’s work, refer to the Charitable entity
funding in this section.

We also continue to recognise the important role our social
investment programs and initiatives play in making a positive
contribution towards improving the quality of life of communities

Our social investment approach
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(a) We aim to contribute to good governance with a focus on reducing corruption, enhancing transparency and strengthening of institutions.
(b) We aim to enhance human capability and social inclusion through increasing the number of people with improved health and wellbeing, access to quality education andvacational training, and enhanced livelihood opportunities.
(c) We aim to contribute to enduring environmental and social benefits through biodiversity conservation, water stewardship and climate change mitigation and adaptation.

(1) Calculated as 1 per cent of the average of the previous three years pre-tax profit.

BHP Sustainability Report 201959

Society continued

Engaging with communities

approach to community engagement, community development
and social investment activities that aim to be culturally sensitiveand socially inclusive.

At the centre of our stakeholder engagement approach is anunderstanding that healthy and sustainable relationships are built
on open, honest and mutually respectful dialogue. Our Codeof Conduct and the Our Requirements for Communications,
Community and External Engagement standard govern ouractions in making a positive contribution to communities where
we have a presence and minimising adverse impacts where thesecannot be avoided.

By assessing the social, economic, political, security andenvironmental factors affecting communities, we can identify
and monitor emerging social trends, better manage social
impacts and reputational risks associated with our operations
and contribute to social value.
At a broader level, we actively participate in forums, think tanks
and discussions on themes that span our global communities, suchas the environment, energy, automation, sustainable development,
transparency and human rights. Our public commitments andvoluntary initiatives are listed on our website (bhp.com).

Our community practitioners apply a range of systems, processes
and tools across our operations to help us understand, plan,
implement and evaluate our engagement activities. This includes
social baseline analysis, social impact and opportunity assessments,
human rights impact assessments, stakeholder mapping andcommunity perception surveys. This information informs ourOur collaborative community approach

Comprehensive planning

Defining host community
boundaries

Stakeholder Engagement
Management Plan

Identifying stakeholders

Human Rights
Management Plan

Conducting social
baseline studies
Assessing social impacts
and opportunities
Understanding the local
human rights context
and associated impacts
Working with local people
to identify and secure
Indigenous cultural heritage

Effective implementation

Monitoring performance

Culturally aware staff

Community perception
surveys

Inclusive and culturally
appropriate decision-making
and engagement
Collaborative managementof community partner
performance

Complaints andgrievance mechanisms
Community Development
Management Plan

Robust governanceframeworks and community
partner due diligence forsocial investment activities

Local Procurement Plan
Indigenous Peoples Plans

Timely response tocommunity incidents

Complaints and grievanceanalysis
Community incident analysis
Research and benchmarking
Consistent monitoringand evaluation
Annual independent
verification of data andsocial performance

Outcomes

Understanding communities

Outcomes

Working together

Contributing to improved quality of life

Addressing social risks and impacts

In FY2019, we developed a globally consistent methodology to
the design of our grievance mechanisms, with sufficient flexibility
to account for the local cultural and operational context. Thismethodology will be piloted and rolled out across our assets
in FY2020. For more information on grievance mechanisms andaccess to remedy within our supply chain, refer to our FY2019
Modern Slavery Act Statement, available at bhp.com.

We recognise our responsibility to contribute to and respect thehealth, safety and wellbeing of communities.
BHP has a target of zero significant community events. Overseenby the Board’s Risk and Audit Committee, we identify, assess
and manage significant community events using our global
Risk Framework.

We also introduced a new event management system for recording
health, safety, environmental and community events. For more
information, refer to the Health section. The new system includes
an expanded category for community complaints and grievances
relating to amenity, behaviour, human rights and Indigenous rights.
This will allow us to improve our investigation, management andanalysis of issues and impacts on the community.

We are also conscious that we must facilitate and enable appropriate
access to regular, open and honest dialogue, so that we understandthe expectations, concerns and interests of stakeholders andincorporate these into our business plans. Aligned with the UN
Guiding Principles on Business and Human Rights, all BHP assets
are required to have local mechanisms in place to support
engagement with the community, record complaints andgrievances, and address these in a timely and culturally
appropriate manner.

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In FY2019, there were no new social, environmental or human rights
grievance cases recorded by our asset teams. However, the numberof community complaints received through our local complaints
and grievance mechanisms increased during the 12-month reporting
period, from 71 to 138 incidents. This increased number ofcomplaints was primarily attributed to dust-related issues at ourcoal operations, associated with drier than normal conditions in
Queensland and the prolonged drought in New South Wales, as wellas an increase in odour complaints at our Nickel West operation.
We continue to work with these stakeholders to seek to address
their concerns through engaging in open and honest dialogue.

that aim to improve water governance and address water
challenges by focusing on shared spiritual, cultural, recreational,
ecological and economic values. For more information on ourwork in this area, refer to the Water section.

Community concerns raised in FY2019

An overview of community concerns relating to BHP’s operating
assets raised in FY2019 is provided below. For information on
how we are responding to these concerns, refer to the following
Regional community focus section.

We continue to work collaboratively with local, regional andnational stakeholder groups to enable people to express theirviews and experiences to the business. This shared dialogue
helps inform our decision-making on issues that are important
to communities, develop appropriate mitigation measures toresolve concerns and identify new partnership opportunities
that can support local aspirations.

In FY2019, community interest continued to focus on environmental
impacts (water usage and access), economic development andemployment opportunities. Our Environment team is working with
communities, government, business and civil society on projects

BHP stakeholder concerns by region

Canada• Environmental impacts• Employment and training• Board sanction commitment

Queensland and
New South Wales• Environmental impacts• Economic development• Health (physical and mental)• Opportunities for engagement• Fly in, fly out and drive in, drive out

Western Australia

United States• Environmental impacts• Employment and training• Economic development• Environmental impacts• Employment and training• Economic development

Chile• Environmental impacts• Employment and training• Economic development• Protection of cultural heritage

BHP Sustainability Report 2019

South Australia• Economic development• Health (physical and mental)• Youth engagement and support• Housing prices

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Regional community focus

Queensland

In recognition that a thriving region is critical for the long-term
interests of both communities and business, BHP entered into athree-year partnership with the Greater Whitsunday Alliance (GW3).
The partnership aims to encourage better collaboration among
stakeholders to progress the region’s development priorities andinitiatives. The scope of the partnership is two-fold and includes
enhancing GW3’s capacity to effectively advocate, engage andpromote the region, and also deliver a number of priority projects
that are designed to have a direct and positive impact on theregion’s future.

In addressing regional community concerns, we work collectively
with multiple stakeholders to identify, develop and advocate forpartnerships and strategies that will make a real difference in thosecommunities. Below are some examples of how we are doing this.

Australia
Local Buying Program

Now in its seventh year, our Local Buying Program remains a corecommunity program in providing regional economic development
opportunities to local businesses in those regions where ourassets are located. The Program is designed to encourage better
relationships between our operations and small businesses,
and build capability and capacity across the local supply chain.
A critical element of the Local Buying Program is the streamliningof onboarding, procurement and payment processes, which
includes 21-day payment terms from receipt of invoice.

For more information, read our case study A collective
approach to regional development in Queensland at
bhp.com/community/case-studies.

New South Wales

In partnership with Upper Hunter Community Services, our
Mt Arthur Coal asset supports a Community Capacity Building
Project. The project employs community development officers
to engage with community members, conduct research into
potential community development projects and explore
mechanisms for building collaboration between services andcommunity-based organisations. Muswellbrook’s Work for the
Dole program was developed under the partnership and assists
unemployed community members to return to work. The projectis also working to develop a mental health app that provides
details of local medical and mental health practitioners, drug
and alcohol support services and direct links to hotlines andwebsites, including Lifeline, Beyond Blue and Headspace.

In FY2019, more than 1,380 local suppliers across Queensland,
New South Wales, South Australia and Western Australia registeredwith the Program. Approval was given for over 9,100 work packages
and local business expenditure of more than US$82 million.
For all approved transactions processed through the Local Buying
Program, BHP makes a financial contribution to established Local
Buying Foundations located in Queensland and New South Wales,with the rollout of foundations in South Australia and Western
Australia planned for 2020. Funds allocated to these foundations
are used to establish business development programs that target
genuine community needs and complement social investment
projects already being delivered by BHP.

South Australia

Through our Olympic Dam operations, BHP’s partnership with
the Adelaide Football Club Women’s competition is supporting
grassroots and pathway development for young Indigenous
and non-Indigenous women in regional areas. The three-year
partnership has a strong emphasis on inclusion and diversity,with a focus on the mental and physical health of young people
to build resilience and social connections through a fun andsupportive program.

A Local Buying Foundation Advisory Committee is established foreach foundation, comprising community members who have aninterest, skills and expertise in regional economic development.
The committees provide guidance and market/environmental
intelligence to inform, identify and support the investment anddisbursement of the funds and oversee effective governanceof the foundations.

Local Voices Project

Trinidad and Tobago

In FY2019, we engaged the CSIRO for a three-year project toprovide communities neighbouring our operations in Central
Queensland (Dysart and Moranbah), New South Wales, South
Australia and Western Australia, an opportunity to express theirviews and experiences of BHP’s presence in their community.
Known as Local Voices, feedback received through this projectwill help inform our decision-making on the issues that matter mostto these communities. This data will help us better understand theconcerns and aspirations of the communities in which we havea presence, building trust through improved relationships thatis based on mutual understanding of the different aspects of
our operations and how they affect the community.

We have partnered with United Way Trinidad and Tobago,
a non-profit organisation that raises charitable donations fromcompanies and individuals and channels these funds to nongovernment organisations to deliver critical social services
to citizens in need. The partnership is focused on developing
medium-to long-term flood relief and mitigation activities
in vulnerable locations across Trinidad and Tobago.

Western Australia

We developed an education strategy to establish early childhood,primary/secondary and tertiary (both vocational and university)
partnerships with government and education institutions;develop pathways to employment through improving accessto scholarships, apprenticeships and trainee programs; andinvest in technology and automation programs within secondary
schools. The strategy also focuses on education initiatives thatprovide up-skill opportunities for our employees and potential
future workforce.

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Social investment

CanadaWe are focused on managing external expectations related to
the Jansen Potash Project and anticipating the growth that would
occur if the project was sanctioned. Social investment is targetedat capacity building programs for First Nations groups in the areasof social inclusion, education and training, and improving thehealth and wellness indicators and access to public services
for local communities. We are also progressing the developmentof a new Petroleum project in Eastern Canada and exploring
ways to work with other industry operators in the Atlantic
coastal region to address community and First Nations
concerns in a collaborative way.

We recognise the opportunity our social investment programs
have to make a positive contribution to the quality of life of thecommunity and to complement our broader business priorities
and activity. Through our long-standing commitment to invest
not less than 1 per cent of our pre-tax profit in social andenvironmental projects and donations, we generate social value
through greater engagement with a broad set of stakeholders.
Our contribution to sustainability challenges at the local, regional,
national and global levels is a key element in managing current
and future risks. It also provides an opportunity to build long-term
reciprocal relationships with stakeholders.

United States

We seek to develop strategic social investment partnerships by
advocating collective action, bringing together key stakeholders
to support the self-determination of communities, with a sharedapproach to solving local challenges, and building local
opportunities. We generate social value through our contribution
to grass roots initiatives, such as community donations, employee
volunteering, our Local Buying Program and the BHP Matched
Giving Program.

Coastal restoration and environmental and social capacity building
in local communities are the focus of social investment in our
US Petroleum business. Through our programs, we aim to develop
sustained employment opportunities, safeguard water quality andaccess, and limit cumulative impacts on coastal areas.
Our partnership with the America’s WETLAND Foundation (AWL)and Resource Environmental Solutions (RES) has restored 60.7
hectares (150 acres) of wetlands in the Barataria-Terrebonne
National Estuary, one of the largest and most productive systems
in the United States with an economic value of US$1.2 million
per year. A hallmark of the partnership is educating the media,
general public and government on the value of natural or
green engineering in building resilience into the environment,
as well as the role of public-private collaborations in advancing
these projects.

In FY2019, we commenced the management of our social
investment contracts for community projects and donations
through our Global Contract Management System. The new
system enables an integrated end-to-end partnership management
approach that is auditable, transparent and enhances our ability
to communicate and report on our social investment activities.
Our voluntary social investment in FY2019 totalled US$93.5 million,(1)consisting of US$55.7 million in direct community development
projects and donations, US$8.9 million equity share to non-operated
joint venture programs, a US$16.57 million donation to the BHPFoundation and US$4 million to the Matched Giving andcommunity small grants programs. Administrative costs tofacilitate social investment activities at our assets totalled
US$6.27 million and US$2 million supported the operationsof the BHP Foundation.

Read our case study about America’s WETLAND Foundation:
Terrebone biodiversity and community resilience projects
at bhp.com/community/case-studies.

Chile

In August 2018, we launched an Indigenous Peoples Plan (IPP)for South America, which lays the foundation to strengthen
recognition, trust and long-term relationships based on four pillarsof governance, economic empowerment, social and cultural
support, and public engagement. To facilitate this, during 2019
we created two external advisory groups to help check the
progress of the plan, including an Indigenous Peoples Plan
Consultative Council and Indigenous Peoples Plan Committeeof Experts.

Under our Social Investment Framework theme of governance,
we invested US$6.24 million in projects that aim to reduce
corruption, enhance transparency and strengthen institutions
in Australia, Canada, Chile, China and Trinidad and Tobago.
In FY2019, more than 145 non-government organisations andapproximately 679 small businesses participated in BHP-fundedcapacity building activities. This increase in the participation rateof small businesses was predominantly from new opportunities
associated with our Local Buying Program in Queensland,
New South Wales, South Australia and Western Australia,
a new partnership with the Port Hedland Chamber of Commercein Western Australia and GW3 in Queensland.

The Council was established in April 2019 and comprises
representatives of Indigenous communities around our Escondida
and Cerro Colorado copper mines in northern Chile. The Council is
independent from BHP and focuses on more effective participationof Indigenous communities in the IPP’s implementation. The expert
committee comprises specialists with experience in working on
Indigenous issues relating to human rights, the environment, climatechange, territory and heritage. The committee is responsible fordeveloping a governance framework that recognises the collective
rights of Indigenous peoples in Chile. It is also helping to strengthen
BHP’s relationships by addressing shared challenges and ensuring
our actions on Indigenous peoples’ lands where we operate can besustainable. Together with BHP, these advisory groups are working
to achieve greater inclusion and opportunities for collaboration
with Indigenous communities.

Through our social investment in human capability and social
inclusion, we contributed a total of US$33.15 million, which saw
more than 78,458 people positively benefit from education andtraining, health and wellbeing, and social inclusion programs.

(1) FY2019 social investment figure includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.

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BHP Foundation

These programs supported approximately 66,277 school-aged
students from Australia, Chile, China, Singapore and Trinidad
and Tobago who participated in BHP-funded education programsof which nearly 7,764 were girls and women and 4,548 were
Indigenous people. Some 519 scholarships were awarded,
including 341 received by Indigenous students and 10,867 people
were provided with access to new or improved health services(1),including 224 Indigenous people and 801 women. Through ourcommunity partners, some 795 people received job-related
training, with programs designed to support the careerdevelopment of individuals and contribute to the prosperityof local organisations.

Many of the world’s most pressing social and environmental
challenges need solutions at global and national levels. The BHPFoundation (Foundation), a US-based charitable organisation
established and funded by BHP, has embarked on a bold andambitious program to take on these issues and enhance thecontribution the global resources sector can make to achieving
many of the UN’s Sustainable Development Goals.
The scale and complexity of these global challenges are enormous:• 1.8 billion people in mineral-rich regions live in extreme poverty;• 6.5 million hectares of forest are lost every year, driven by
growing demand for food and natural resources;• 263 million children globally are not in school and a further
330 million who go to school are not learning basic skills.

Our contribution to environmental projects totalled US$16.3 million
in Australia, Chile, China, Kenya, Peru, Trinidad and Tobago andthe United States. These projects aim to contribute to enduring
environmental and social benefits through biodiversity conservation,water stewardship and climate change mitigation and adaption.

Since 2015, the Foundation has been working with leading global
non-government organisations and institutions to implement
practical and long-term solutions designed to bring about
large-scale, transformative change. The Foundation has threeglobal priorities:

Matched Giving Program

We are proud to support the organisations that are importantto our employees. Through our Matched Giving Program, BHP
matches personal donations made by our employees to eligible
not-for-profit organisations at a ratio of 2:1, which equates toa BHP donation of two dollars for every dollar donated.

• Natural resource governance – the ambition is to harness thepower of natural resource wealth for sustainable and inclusive
human development.
• Environmental resilience – the ambition is to support new
ways of conserving and sustainably managing large-scale,globally significant natural environments for the benefit
of future generations.
• Education equity – the ambition is to harness the potential of
marginalised and under-represented young people by enabling
equitable access to quality education.

In FY2019, we introduced some important changes, modelled on
how most employees were already using the Program. In order tocreate greater impact with the organisations most popular with
our employees and to strengthen the governance of the Program,a list of 50 eligible organisations (along with their chapters inother eligible locations) and a new matching cap of US$10,000
per employee, per financial year, were introduced. Legacy
donations were also matched to enable a smooth transition
from the previous program.

Complementing the global programs are country programs, which
aim to support national development priorities and draw on BHP’sexpertise to support the Foundation’s work. Country programs
have been implemented in Australia and Chile, and in the future
will be implemented in Canada and the United States.

Throughout the year, 4,175 of our employees participated in
the Matched Giving Program, supporting 350 not-for-profit
organisations. These organisations received over US$3.21 million
via the Program.

The Foundation has projects in 36 countries and works with morethan 30 partner organisations that are leaders in their fields.
Projects are selected based on their potential to forge new models
for addressing complex issues and set new standards, and aredesigned to deliver measurable, effective and practical solutions for
local impact. The Foundation also advocates on the global stage forthe change it wants to see. For more information about theFoundation’s programs, visit bhp.com/community/bhp-foundation.

Charitable entity funding
BHP Billiton Sustainable Communities

BHP Billiton Sustainable Communities (BSC), based in the United
Kingdom, was established to partner with organisations to deliverlarge-scale, long-term social and environmental development
projects. We continued to transition to a single BHP-fundedcharitable entity (the BHP Foundation) in FY2019, while BSC
honoured its remaining project commitments.
Two of the three remaining BSC flagship programs were concluded
during FY2019: the ANDA Project in Colombia and the ACDI/VOCA
Project in Mozambique. The final program is due to be completed
in FY2020, at which time BSC will commence winding up.
In FY2019, BSC provided US$764,590 to its sole remaining
program, a five-year initiative with WaterAid©. This program
works to improve the lives of thousands of people in Mozambiquethrough access to equitable, inclusive and sustainable water,
sanitation and hygiene services.
For more information, read our case study Supporting
vulnerable populations in regional Colombia at
bhp.com/community/case-studies.

(1) 'Access to health services' includes awareness and training initiatives linked to the delivery of available health services, the provision of mental and physical health services
and health-related infrastructure and equipment.

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Supporting local economic growth

We engage with and respond to civil society, communities,
investors and other stakeholder groups on issues related toour business and strive for transparency in all our interactions.
In FY2019, we collaborated with external stakeholders throughbusiness and industry groups, human rights organisations andgovernment representatives on the progression of the corporate
responsibility to respect human rights.

BHP proudly supports the growth of local businesses in the regions
where we operate, through sourcing and promoting locally available
products and services. Our assets develop local procurement
plans that identify opportunities for local suppliers, including
small businesses to deliver capacity building and employment
creation initiatives. These initiatives are designed to be sustainable
post BHP’s presence.

Managing human rights risks

During FY2019, 14 per cent of our external expenditure was withlocal suppliers. An additional 82 per cent of our supply expenditure
was located within the regions in which we operate. We contributed
US$16 billion to more than 10,000 suppliers globally, of which
US$2 billion supported local community suppliers where we
operate. These figures remain comparable to previous years,
although local spend was lower due to the sale of our Onshore
US assets during FY2019.

The most relevant human rights to BHP are those specific to ourbusiness and of vulnerable or marginalised groups impacted byour operations. These include rights related to:• workplace health, safety and labour conditions (including
non-discrimination and the avoidance of forced and bonded
labour and child labour);• activities of security providers;• land access and use;
• water and sanitation;• impacts on the rights of Indigenous peoples and othercommunities that live near our operations, including
resettlement and consultation and consent processes.

Our expenditure with local suppliers in FY2019 was mostly in
Trinidad and Tobago (57 per cent), the United States (31 per cent),
Chile (14 per cent) and Australia (12 per cent). See the Regional
community focus section for more information about our Local
Buying Program in Australia.

We recognise our accountability for continually assessing thehuman rights landscape, including those indirect impacts that
may be contributed to by our activities.

Distribution of supply expenditure(a)Governance of human rights

Our Code of Conduct sets the standards of behaviour and humanrights commitments for our people, as well as our contractors,
suppliers and others who perform work for BHP. The commitments
in Our Code of Conduct are implemented through mandatory
minimum human rights performance requirements in the Our
Requirements standards and through our policy statements.

Local 14%
Regional 82%
External to home country 4%

Human rights are also integrated into BHP’s Risk Framework
through these standards. Our Board’s Sustainability Committee
assists with governance and monitoring of our approach, overseeing
health, safety, environmental, community (HSEC) and other humanrights matters. This includes the adequacy of the systems in place
to identify and manage HSEC-related risks, legal and regulatorycompliance and overall performance.

(a) Local spend refers to spend within the communities in which we operate.
Regional and national spend refers to spend within the regions, such as statesand provinces, and the home country of operation, excluding local spend.

Respecting human rights

We believe respecting human rights and contributing to thepositive realisation of rights is not only critical to the sustainable
operation of our business, it is the right thing to do. Respecting
human rights is important to our ability to contribute meaningful
and ongoing social value to our stakeholders. Simply put, oursuccess depends on how well we respect the rights of individuals
and groups who interact with us and are impacted by our business.

We are continuing to build our understanding of the human rights
risks across all our activities and we have an active program ofembedding enhancements to our approach.
We consolidated our existing human rights commitments andmanagement approaches in FY2019 into a Group-wide policy
statement. This action reflects Principle 16 of the UN Guiding
Principles on Business and Human Rights.(1) Our Human Rights
Policy Statement sets out the expectations of our people, business
partners and other relevant parties to respect human rights.
The Statement has been developed in consultation with Shift(a non-profit organisation that provides guidance on the UN
Guiding Principles on Business and Human Rights), BHP employees,
the Global Business Initiative (a business and human rights
cross-industry member group) and other key external humanrights stakeholders and experts.

We are committed to respecting internationally recognised humanrights as set out in the Universal Declaration on Human Rights
and the Voluntary Principles on Security and Human Rights,
and operating in a manner consistent with the UN Guiding
Principles on Business and Human Rights and the 10 UN Global
Compact Principles.
We recognise the potential for human rights exposures and risks inall jurisdictions and are committed to working broadly to promoterespect through stakeholder engagement, collaboration, advocacy
and public policy.

(1) Principle 16 states: ‘As the basis for embedding their responsibility to respect human rights, business enterprises should express their commitment to meet this responsibility
through a statement of policy.’

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Human rights due diligence and risk management

Human rights due diligence is one of the methods we use, in
accordance with the Our Requirements standards, to identify,
seek to prevent and mitigate adverse human rights impacts.
This also helps to identify new opportunities for BHP to bolster
human rights and support communications externally to
stakeholders about BHP’s human rights risks and contributions.
The inclusion of human rights in our global Risk Framework allows
us to identify risks specific to a particular activity and also risks
that are of a strategic and/or emerging nature, and to apply
required controls at a site, functional and Group level.
With the establishment of our new Group Risk Architecture (refer to
the Our sustainability approach section), human rights is a key risk
indicator within the environment, climate change and community
Group risk category. For information on our Risk Framework, risk
factors and management approach, refer to our Annual Report
2019, available online at bhp.com.

Capacity building and collaboration

In FY2019, a high-level, broad-based human rights training video
was designed to prompt employees to consider relevant humanrights, understand the business case for respecting human rights
and the necessary processes designed to implement our humanrights commitments across the business. The training will be rolled
out to relevant members of our workforce in FY2020.

The Our Requirements standards require assets to complete
a human rights impact assessment at least every three years(and review it whenever there are changes that may affect the
impact profile). If a material human rights risk is found, a Human
Rights Management Plan must be developed. A new globallyconsistent approach to human rights impact assessments wasdeveloped in FY2019 to enable a more comprehensive
understanding of our human rights exposures across our assets
and functions. The new methodology will be mandated under the
Our Requirements standards. Following pilot programs in selectlocations, we expect this approach to be implemented across ourassets by the end of FY2020. We are working closely with our Risk
function to further integrate the learnings from these assessments
into our broader risk assessments.

We continue to be members of the Global Business Initiative andShift, and have engaged both organisations to provide guidanceon the development of our Human Rights Policy Statement andtraining video. Members of our operational and functional teams
regularly participate in peer learning opportunities relating to theimplementation of human rights principles in business.

Setting requirements for our suppliers

We are taking a multi-year, systemic approach to integrating
human rights due diligence for our supply chain process. Thisapproach will allow us to align, formalise, continuously review
and deepen our understanding and assessment of suppliers.
At the centre of our approach is engagement with our direct
suppliers to assess and encourage continuous improvementin their own capacity to manage human rights risks (including
modern slavery) in their subcontractors and broader supply chain.

Using the new Risk Framework, in FY2019 human rights risks wereassessed in functional, exploration and project risk assessments.
This includes inputs into a risk assessment for exploration activities
in Ecuador and a human rights and Indigenous peoples'
assessment for activities in Mexico.
The Our Requirements standards also require human rights risks
to be taken into account regarding decisions on acquisitions anddivestments, new activities in high-risk countries and major
projects to include the consideration of human rights andcommunity impacts in their risk-based approach.

Our FY2019 UK Modern Slavery Act Statement provides a detailed
overview of our approach to managing human rights risks relating
to modern slavery and trafficking in our supply chain andoperations. The Statement is prepared under the UK Modern
Slavery Act (2015) and is available online at bhp.com.

A human rights risk assessment was conducted on our global
inbound supply chain in FY2019. Nine cross-functional teams
across eight global locations participated in the two-day session.
Behaviour resulting in human rights abuse by a direct or indirect
supplier within BHP’s supply chain was identified as a material risk
to the business. Controls at both a functional and Group level havebeen identified and assigned.

Modern slavery legislation

The Australian Modern Slavery Act 2018 took effect from January
2019. BHP’s first statement under this legislation will be publishedfor FY2020 by 31 December 2020. We engaged with the AustralianGovernment throughout the consultation period of the legislation’s
development, through direct engagement with the Department ofHome Affairs and through the Global Compact Network Australia
and the Business Council of Australia. We also provided input tothe Minerals Council of Australia’s submission on the Government’s
draft Guidance for Reporting Entities about the legislation.
We continue to review best practice and work with the Global
Compact Network Australia to ensure we are prepared for the
new reporting requirement.

Security

We seek to manage security according to our values, risk profiles
and business requirements. This involves reviewing our alignment
with the Voluntary Principles on Security and Human Rights
annually and completing improvement plans to address any gaps.
There were no significant security-related incidents with possible
human rights implications recorded in FY2019.

We continue to improve our understanding and management ofmodern slavery and human trafficking risks in our supply chain,
and identify opportunities to work with other businesses, suppliers
and regulators to seek to eradicate modern slavery from global
supply chains.

Stakeholder engagement

We engage regularly with investors, civil society, communities,
Indigenous stakeholders, human rights experts and industry
associations to understand current social expectations, trends
and perceptions relating to human rights and the real andperceived impacts of our operations on communities.

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Indigenous peoples

Indigenous Peoples Strategy

For BHP, Indigenous peoples are critical partners and stakeholders
in many of our operations. Globally, many of our operations arelocated on or near traditional Indigenous lands and the long-term
nature of our operations allows us to establish lasting relationships
with the Indigenous communities in which we operate and thoseneighbouring our operations. We respect the rights of Indigenous
peoples and the special connection they often have with the land,
water and natural environment, and we understand that thisconnection can be spiritual, reaching beyond tangible objects or
locations. We recognise that we must work alongside Indigenous
peoples, building trust, meaningful engagement and genuine
understanding of their views and interests.

Our Code of Conduct outlines the expectation to recognise thetraditional rights of Indigenous peoples and acknowledges theirright to maintain their culture, identity, traditions and customs.

We acknowledge that in the past we have not always listened
as well as we could have, and our activities have had impacts
on Indigenous peoples, culture, places and connection to country.
Incorporating Indigenous voices into our activities strengthens ourability to positively contribute to the full realisation of the rights
of Indigenous peoples.

• develop, govern and manage the implementation of our
Policy Statement and Strategy;• identify opportunities to position BHP as a global leader
in working with Indigenous peoples;• provide global and cross-functional leadership to promotea consistent position on our work with Indigenous peoples;• support regional teams to develop and implement regional
Indigenous Peoples Plans.

BHP’s Indigenous Peoples Policy Statement articulates our approachto engagement and support for Indigenous peoples and ourcommitment to the ICMM Indigenous Peoples Position Statement.
Our Indigenous Peoples Strategy guides the implementation of
our Policy Statement. For information on our Strategy, refer toour website at bhp.com.
Our Global Indigenous Peoples Working Group (GIPWG) wasestablished in 2016 to:

The GIPWG met regularly throughout FY2019 to discuss regional
activities, global trends and issues of relevance to theimplementation of the Indigenous Peoples Strategy.

BHP Indigenous Peoples Policy Statement
BHP aims to be a partner of choice for Indigenous peoples through which our relationships contributeto their economic empowerment, social development needs and cultural wellbeing.

BHP Indigenous Peoples Strategy

Governance

Economic empowerment

Indigenous peoples will derive significant
and sustainable benefit from BHP operations
through the effective governance andmanagement of land access, cultural
heritage, agreement making and benefit
distribution processes.

BHP will contribute to the economic
empowerment of Indigenous peoples
through providing opportunities for
employment, training, procurement andIndigenous enterprise support.

Outcomes
Public engagement

Social and cultural support
BHP will contribute to improved qualityof life for Indigenous peoples throughvoluntary social investment, promotionof Indigenous culture and building theIndigenous cultural awarenessof our workforce.

BHP will contribute to specific initiatives,
programs and public policy processes that
advance the interests of Indigenous
peoples consistent with the BHP
Indigenous Peoples Policy Statement.

BHP Good Practice Guidance

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South America

In Chile, engagement and dialogue with Indigenous peoples has
been a fundamental element of ongoing operations and thedevelopment of the Indigenous Peoples Plan for South America.
In April 2019, BHP publicly released our FY2019–FY2023 SouthAmerican Indigenous Peoples Plan in San Pedro de Atacama,
Chile, attended by key Indigenous stakeholders. The plan focuseson opportunities for advocacy and strengthening opportunities
for Indigenous employment. It defines the vision in each of thefour pillars of BHP’s Indigenous Peoples Strategy, incorporates
BHP’s global commitments, identifies and seeks to address current
gaps in our approach and considers our local context, and thehistory and evolution of the Indigenous peoples in South America,
particularly those in the areas where our activities are located.
The plan is the first of its kind by a mining company in Chile.
It establishes a platform of participation, dialogue and governancewith Indigenous peoples in South America, helping us to ensure
our activities on Indigenous lands are sustainable and built on
open and transparent engagement.

Regional Indigenous Peoples Plans

To complement the consultation requirements of environmental
assessments and agreement-making, we have developed avoluntary dialogue and participation process with Indigenous
stakeholders in Chile. The process prioritises truth telling,building relationships based on trust and mutual respect,and enabling impacted Indigenous peoples to make informed
decisions through their traditional decision-making processes.

Minerals Australia

Ultimately, we aim to build an agreement-making process thatis transparent and allows Indigenous peoples to participate
in the environmental management of the operation andstrengthen the socio-environmental management of theirtraditional territory.

In FY2019, each of our regions had an active Indigenous Peoples
Plan that operationalised the Indigenous Peoples Strategy acrossour regions. Each plan is aligned with the Indigenous Peoples
Strategy and prioritises the local and regional context andoperational footprint and relevant Indigenous stakeholders.
Minerals Australia continued to make good progress against the
2017–2020 Elevate Reconciliation Action Plan (RAP), the documentthat gives effect to BHP’s Indigenous Peoples Strategy inAustralia. The RAP is an external framework that encourages
national reconciliation.
Continued efforts to adopt a consistent approach acrossMinerals Australia based on successful asset-based Indigenous
peoples strategies saw improvement in performance areas,such as Indigenous procurement, Indigenous employment
and agreement-making. In FY2019, a national cultural heritage
plan was implemented to improve efficiencies and best practicein managing cultural heritage across our Minerals Australia
activities. We also completed Native Title negotiations with
the Tjwarl in FY2019, for the Nickel West expansion.

To support the economic empowerment of Indigenous
peoples across Minerals Australia, in FY2019 we implemented
strategies to increase Indigenous procurement and content.
Through our Local Buying Program, we have been able toidentify specific opportunities or ‘carve outs’ for Indigenous
businesses and build a targeted approach to increasing thenumber of Aboriginal and Torres Strait Islander registeredsuppliers. We have seen an increase of over 40 per cent in
direct Indigenous contracting spend across Minerals Australia
between FY2018 and FY2019, as a result of these initiatives.
We are committed to ensuring that Traditional Owner
businesses share in the value generated by activities
conducted on native title land or adjacent to their communities
and will continue to build strategies to increase opportunities.

BHP Sustainability Report 201968

Society continued

North America

Indigenous employment

The primary interaction with Indigenous peoples in North America
is through the Jansen Potash Project in Canada and several US
closed sites. Petroleum has no direct interaction with Indigenous
peoples in the United States. The Jansen Potash Project has anestablished program with First Nations people connected to theProject. Opportunity Agreements to fund community development
programs have been established with five of the six First Nationsgroups. Engagement activities have commenced with six First
Nations groups in relation to the Jansen Outbound Logistics project.

In FY2019, we consolidated our efforts across our global
operations to provide employment opportunities in communities
where we operate.
In Minerals Australia, Indigenous employment within our overall
workforce increased from 4.4 per cent to 5 per cent (1,090 to 1,168),
our as we aim to achieve 5.75 per cent by the end of FY2020.
Twenty per cent of all apprentices were Aboriginal and Torres Strait
Islander people and there were positive outcomes through our
Indigenous leadership programs (refer to Developing ourcapabilities in the our People section). In FY2020, the Minerals
Australia Indigenous Employment Plan will focus on opportunities
for Traditional Owners and establish skill development initiatives
that assist the transition into roles that support automation.

Promoting Indigenous culture and building the Indigenous
cultural awareness of our workforce is critical to building
relationships based on trust and respect, which not only
upholds Our Charter values, but also contributes to theimproved quality of life for Indigenous peoples.

In North America, we have focused on working with our contracting
partners to support the employment of First Nations and Metis
people, who now comprise 9 per cent of our workforce at theJansen Potash Project. Chile has implemented a number of
initiatives that will result in formal performance reporting in FY2020.

The Jansen Potash Project has been running Aboriginal
Awareness training for all Jansen employees since 2012,
which is mandatory for all employees and made available
to contractor leaders. The primary objectives of the training
are to build respect and integrity between Indigenous andnon-Indigenous people. The training program teaches theunpleasant history of Indigenous peoples in Canada,addresses stereotypes that can impact relationships with
Indigenous peoples, seeks to remove bias and improves
employee understanding when engaging with Indigenous
people or businesses.

Tjiwarl Agreement Work Readiness Program
As part of our historic agreement with the Tjiwarl people in
the Northern Goldfields region in Western Australia, signed
on 1 November 2018, BHP committed to provide a minimumof 10 positions to suitable Tjiwarl candidates either with Nickel
West directly or one of our major contracting partners in thefirst 12 months of the agreement. BHP worked with the Tjiwarl
community to establish a program to develop work skills
leading to employment.

BHP has taken a leadership stance when it comes to ourrelationships with Indigenous peoples in Saskatchewan.
We have developed new initiatives and approaches that havecreated positive outcomes in our relationships with First
Nations and Metis people, and encouraged improved practiceacross the industry and government in the region.

The first 10-week Work Readiness Program, run in partnershipwith Chandler Macleod (a labour hire vendor) and Carey
Training (an Indigenous Registered Training Company),saw 12 students complete a Certificate II in Resource andConstruction Industry and three weeks of work experienceat a Nickel West site. Seven of these graduates will shortly
commence employment, along with nine other Tjiwarl
people who have secured employment through the usual
recruitment processes.

Public engagement

Public advocacy and leadership are important components of
the Minerals Australia strategy. After significant reflection andconsultation with critical stakeholders, in January 2019, our CEO
Andrew Mackenzie announced BHP’s support for the Uluru
Statement from the Heart.
As part of this support, BHP committed to a number of activities
in support of the areas of voice, treaty and truth; key themes
from the Uluru Statement from the Heart.

BHP Sustainability Report 201969

PeopleOur global workforce is thefoundation of our business.
Supporting their wellbeing
and promoting an inclusiveand diverse culture are vitalfor maintaining a competitive
advantage.

BHP Sustainability Report 2019

In this section:
Building an enabled culture to
support BHP’s transformation
Developing our capabilities
Inclusion and diversity
Employee relations

70

PeopleWe employ over 72,000 employees and contractors globally. We are committed to investing in our people sothey have the right skills and are supported by a healthy workplace culture that is inclusive and collaborative.
The FY2019 results indicated we have more to do to continue tosimplify our processes and make it easier for our team to performtheir work. Our focus for FY2020 will be to support ourtransformation initiatives and realise the benefits to our culture
and people (for information on our transformation initiatives, refer
to our Annual Report 2019). We will continue to enable our people
and address the obstacles that prevent them from doing their job
well by simplifying processes and increasing technology capability.
We expect that further capability development of our employees
in our new ways of working and continued development of ourleaders will set up our people and the organisation for success.

We are committed to empowering our people to find safer,more creative and more efficient ways of working. We continue
to develop a culture based on trust and collaboration and giveour people more say, new capabilities and tools, and new avenues
for technology and innovation to support BHP’s transformation.
We provide competitive remuneration to reward employees fortheir expertise and commitment to our business strategy andlong-term success. Our remuneration approach is designed toinspire our employees to embrace BHP’s core objectives andvalues. Performance against key performance indicators linked
to safety, productivity and culture drives our employees’ variable
reward outcomes.

Developing our capabilities

Building an enabled culture to support
BHP’s transformation

We believe that the changing nature of work presents significant
opportunity for BHP. Our approach is to invest in new skills, so ourpeople are ready for the jobs of the future.

Our annual Engagement and Perception Survey (EPS) is an
important tool to gauge our culture. The overall results in
FY2019 remained stable and showed we sustained the positive
improvements achieved in FY2018, despite the changes that
occurred across the business.

Over the past five years, we have invested in developing leadershipcapability, as these qualities are critical to guiding our people andnavigating changes to the work environment.
Our Operational Leadership Program aims to develop the technicaland operational leadership excellence of our operational generalmanagers and to identify successors to senior leadership roles thatdrive operational value. The program launched in FY2018 and wascompleted by 38 operational leaders in FY2019.

Our employees told us they feel proud to work at BHP and
described the work environment as collaborative and inclusive.
They have the confidence to make decisions required to do theirjob well and believe they have opportunities for professional andpersonal development.

The Step Up to Leadership and Leading Value programs continue
to drive our foundational leadership focus and in FY2019, 856
leaders completed the programs. Our Maintenance Academy
Program, introduced in FY2018, saw 39 maintenance managers
work to broaden their technical knowledge, leadership capability
and collaboration in FY2019.

We have seen improvements in our EPS results related to equal
opportunities at work for all employees, perceptions on how theleadership group communicates a vision of the future that is
exciting, how leaders are managing change, and perceived
opportunities for growth and development. These are important
indicators of people’s experiences at work.

BHP Sustainability Report 201971

People continued

We also focused in FY2019 on developing the leadership skills of
our Indigenous employees through our Indigenous Development
Program. The program is designed to identify Indigenous
employees with leadership potential, and to respond to issues
identified as barriers to career progression. By May 2019, 147
employees in Australia had completed the program. Of the 97
employees that completed the program in the first half of 2019,40 per cent have moved into new roles and 19 per cent havebeen promoted to leadership roles.
We are proud of our EPS results related to the performance of ourleaders. In particular, the results identified our leaders as strong incommunicating the vision of BHP and leading their teams throughsignificant change.
In FY2020, we expect to increase our focus on systems, processes,
tools and behaviours to improve operational capability. The BHP
Operating System sets out the foundation for long-term andin-depth learning and development, by developing practices
and capabilities that empower our people to pursue operating
excellence.

The campaign asks everyone to reflect on their own behaviours
and what they see around them and ask ‘Is that ok?’ We equipped
leaders and employees with materials to help them have
conversations about disrespectful behaviours, and take steps toaddress it. We also launched a new eLearning module on inclusionand continue to develop additional resources for our people as we
continue this critical initiative. Further development of a cultureof care within our business is a fundamental element of our
FY2020 business plan.

Operations Services, which provides maintenance and production
services across Minerals Australia, supports people to build theirskills through coaching and by performing in-field verifications.
This helps deliver consistent equipment operation andmaintenance that balances safety, maximum productivity
and equipment reliability. Participants report a high sense ofachievement as they leverage best practice from across BHP
to help perfect their daily activities and accelerate productivity.

Gender balance

We have an aspirational goal to achieve gender balance globally
by CY2025. In FY2019 we increased the representation of women
working at BHP by 2.1 per cent, resulting in 1,156 more female
employees than the same time in FY2018. Our overall
representation of women is 24.5 per cent.(1)Inclusion and diversity

We believe our people should have the opportunity to fulfil theirpotential and thrive in an inclusive and diverse workplace. In our
experience inclusion and diversity promotes safety, productivity
and wellbeing within BHP and underpins our ability to attract
new employees.

In FY2019, the percentage of people newly hired to work for BHP
was 62.3 per cent male and 37.7 per cent female. This female
representation outcome is a marked increase when comparedto FY2015 (10.4 per cent), the baseline for our aspirational goal.
Our growth projects have reported strong female representation.
For example, South Flank operational workforce in Western
Australia has achieved 41 per cent female representation asat the end of FY2019.
For more information, read our casestudy Inclusion and diversity in Minerals Americas at
bhp.com/community/case-studies.

We employ, develop and promote people based on merit and oursystems, processes and practices are designed to empower fairtreatment. We do not tolerate any form of unlawful discrimination,bullying or harassment.
Our employees are trained to recognise and mitigate potential bias
towards any employee. To help address gender pay disparities,
we have taken steps to reduce potential bias in recruitment andconduct an annual gender pay review, the results of which arereported to the BHP Remuneration Committee.

We have improved the voluntary turnover rate of women by
0.7 per cent, when compared to FY2018; the turnover of women(11.4 per cent) remains higher than the rate for men (10.3 per cent).

Respect is one of our six core Our Charter values and we believe
it is fundamental to building stronger teams, and being a truly
inclusive and diverse workplace. For some people in our business,this is not their experience of working at BHP. We are determined
to address this, so during FY2019 we began a Group-wide campaign
about respectful behaviour. The aim is to create greater awarenessand build understanding of what disrespectful behaviour is andhow it affects our people. We shared real-life examples of how
some people experience disrespectful behaviour at BHP, tohighlight the current environment and generate conversations.

Our strategy to achieve a more diverse and inclusive workplace
continues to focus on the following four areas:• embedding flexibility in the way we work;• encouraging and working with our supply chain partners
to support our commitment to inclusion and diversity;• uncovering and taking steps to mitigate potential bias in our
behaviours, systems, policies and processes;• ensuring our brand is attractive to a diverse range of people.

(1) Based on a ‘point in time’ snapshot of employees as at 30 June 2019, as used in internal management reporting for the purposes of monitoring progress against our goals.
This does not include contractors. This methodology differs from the data reported in Performance data – People, which is calculated based on the average of the numberof employees at the last day of each calendar month for a 10-month period from July through to April and in accordance with our reporting requirement under the UK
Companies Act 2006.

BHP Sustainability Report 201972

People continued

Indigenous employment

In communities in which we operate, we aim to provide employment
opportunities that contribute to sustainable social and economic
benefits for Indigenous peoples. For information on our approach
to Indigenous employment and our performance to date, refer tothe Indigenous peoples section.

LGBT+ inclusion

We want to provide a safe, inclusive and supportive workplace foreveryone at BHP. Jasper is BHP’s employee inclusion group for ourlesbian, gay, bisexual, transgender and others (LGBT+) community
and its allies. Inspired by the mineral rock jasper, which is known for
its unique multi-coloured patterns, the group was formally endorsed
by BHP’s Global Inclusion and Diversity Council in 2017 and issponsored by BHP Executive team member Laura Tyler. Jasper’s
aim is to drive a safe, inclusive and supportive work environment
for everyone by providing advice on ways to reduce bias andensure LGBT+ people are respected and valued irrespective of
their sexual orientation, gender identity or intersex variability.
Since its formation in 2017, Jasper has grown to over 900 members.
We rolled out LGBT+ inclusion awareness and education sessions
across all Minerals Australia operations in FY2019, with plans toextend to our operations and offices in FY2020. We also continue
to celebrate days of significance, including IDAHOBIT (International
Day Against Homophobia, Biphobia, Interphobia and Transphobia)
and Wear It Purple Day (awareness day for young people).

Flexible working

Flexible work supports the diversity and wellness of our workforce.
Some 41 per cent of our people worked flexibly in FY2019 and wecontinue to educate our workforce about flexible working at BHP.
We continue to challenge the mindset that flexibility is only
available for office-based employees, with a number of operations
implementing flexible rosters and job share arrangements thatassist employees both commuting long distances and living
locally. For example, the Crib Relief Program at BHP Mitsubishi
Alliance (BMA) changed the existing approach to truck crib relief
by reducing the shift length for relief drivers to better align withschool hours. This helped unlock a new and more diverse talentpool that also increased the workforce’s local community
representation. It also helped improve workforce culture andmorale as employees shared skills and knowledge with those
new to the industry.
For more information, read our Prospects
blog Cool change for hot seating at bhp.com/prospects.

Employee relations

The culture of care and trustful relationships is a fundamental
principle of our employee relations strategy. The three key focus
areas for employee relations at BHP has continued to be:• ensure BHP complies with legal obligations and regional
labour regulations;• negotiate, where there are requirements to collectively bargain;• close out agreements with our workforce in South Americaand Australia, with no lost time due to industrial action.
On 17 August 2018, Minera Escondida Limitada (Escondida)
successfully completed negotiations with Union N°1 and signed
a new collective agreement, effective for 36 months from
1 August 2018.

Working with suppliers

We continue to work with our suppliers on ensuring their products
and services are suitable for a diverse workforce, as well as
encouraging diversity in their own work teams. For example,
at Olympic Dam in Australia, following a request by an employeeof Muslim faith living at camp, we collaborated with our catering
supplier to ensure the availability of halal food. This helped ensurethat appropriate food was available for all living at camp, as wellas helping create a sense of one team among the workforce.
In FY2019, where practicable, we also introduced inclusionand diversity incentives into our supply contracts.

BHP Sustainability Report 201973

Ethics andbusiness conduct
Our Charter values of Integrity,
Respect, Performance, Simplicity
and Accountability underpin
how we do business. We arecommitted to behaving ethically,
being transparent and working
with integrity and respect.

BHP Sustainability Report 2019

In this section:
Transparency and accountability
Our conduct
Anti-corruption

74Ethics and business conduct

Our Charter values of Sustainability, Integrity, Respect, Performance, Simplicity and Accountability underpin
how we do business and reinforce our commitment to ethical behaviour. This commitment is based on
our understanding of the transformational potential of sustainable natural resource development and ourrecognition that operating ethically and transparently is fundamental to harnessing that potential.

Transparency and accountability

The projects help to improve the visibility of funds associatedwith natural resources in the respective country.

Transparency and accountability are fundamental to building trust.
BHP’s business model is premised on trust and public acceptancebecause our mines have long lifespans and cannot be moved
across jurisdictions in response to a breakdown in trust, changing
societal expectations or regulatory requirements. We mustearn the trust of our host communities and demonstrate ourcontribution to long-term social value. Our tax and royalty
payments help governments fund healthcare, education,
infrastructure and other essential services. Conversely, corruption
and poor governance of natural resources would divert funding
from those basic provisions and diminish our contribution.

BHP’s approach to transparency and tax is detailed in our Economic
Contribution Report 2019 and is available online at bhp.com.

Our conduct

We know consistent ethical behaviour cultivates loyalty and trustwith each other and our stakeholders.
Every day, all of us at BHP work hard to uncover the resources thatare the building blocks of an ever-changing world. It is something
we should all be proud of. While what we achieve is important –so is how we achieve it.

Our commitment to transparency

Transparency principles of responsibility, openness, fairness andaccountability underpinned a decision to become the first in our
sector to disclose payments to governments on a project-by-projectbasis in 2015. We continue to disclose our profit, number of
employees and adjusted effective tax rates on a country-bycountry basis.

How we work is guided by the core values in Our Charter. Theyare Sustainability, Integrity, Respect, Performance, Simplicity andAccountability. We are relentless in our pursuit of these values
and they guide our decision-making.
Our Code of Conduct (Our Code) brings them to life, reminds us
why they are important and helps us understand what it means towork with those values as our guiding principle. It strengthens ourrelationships, builds trust in the communities where we work andprotects the social value we deliver. Our Code sets the standard forour commitment to working with integrity and respect. Our Code
guides us in our daily work and demonstrates how to practically
apply the commitments and values set out in Our Charter. Actingin accordance with Our Code is a condition of employment foreveryone who works for and on behalf of BHP, and is accessible
to all our people and external stakeholders on our website.
See more at bhp.com.

Economic transparency is not our only focus. We have a strong
record of supporting robust reporting on climate change issues.
We were one of the first companies to report in accordance withthe recommendations of the Financial Stability Board’s Task Forceon Climate-related Financial Disclosures in our Annual Report.
In FY2018, we released our inaugural report of our water risks andusage, and this year integrated FY2019 data into this Sustainability
Report. Water stewardship is not only critical to our operations,but is central to the resilience of our communities and environment.
Greater transparency around water requirements and usage willencourage governments, industry and communities to work
together to safeguard our water supplies for future generations.

Governance of Our Code

Encouraging a broader dialogue

Safe to speak up

Our employees and those who work with us or who are associatedwith us should speak up if they see or hear something that
contradicts Our Code. Our Safe to Speak Up policy outlines
BHP’s commitment to confidentiality and zero tolerance against
retaliation. We continue to strengthen our Safe to Speak Up policy,
which aligns with the amendments to the Australian Corporations
Act (with effect from 1 July 2019) that provides greater protection
to those who speak up and report misconduct.

We work in partnership with Transparency International tocontribute to the global transparency and anti-corruption agenda.
BHP was a founding signatory in FY2018 to the Responsible Tax
Principles of the B Team, a not-for-profit initiative formed bya global group of business leaders to catalyse a better wayof doing business.
We are represented on the Board of the Extractive Industries
Transparency Initiative (EITI). EITI requires its 51 implementing
countries to develop ‘road maps’ towards the establishment ofbeneficial ownership registers. We also support and participate
in OpenOwnership, the first public global database of company
ownership information, and look for opportunities to encourage
our suppliers and partners to do the same. Disclosure of beneficial
ownership reduces opportunities for corruption (via secretownership interests) and helps ensure that company assets andincome are fully disclosed to relevant regulatory bodies, such as
revenue authorities, to promote compliance with taxation laws.

Our Code is not just for our employees and contractors – we also
want our external stakeholders to know how we expect our people
to behave and to speak up about any conduct inconsistent with
Our Code.
Employees and contractors can raise their concerns througha number of channels, including line leaders. Anyone can lodge
a report, including external stakeholders through EthicsPoint,a 24-hour, multilingual service for confidential reporting of potential
misconduct. EthicsPoint reports can be raised anonymously.

The BHP Foundation, a charitable foundation established andfunded by BHP, complements our support of global transparency
initiatives. The Foundation’s Natural Resource Governance Global
Signature Program aims to improve governance across theresources value chain, from consultation and consent processes
before licences and contracts are awarded to citizen services
and infrastructure funded by the payment of taxes and royalties.

BHP Sustainability Report 2019

We acknowledge, investigate as appropriate and document all
matters reported. Where matters are investigated and substantiated,
we take appropriate remedial actions, advise the reporter (where
possible) and document the outcome.
BHP does not tolerate any form of retaliation against anyone
who speaks up about potential misconduct or participatesin an investigation.
75

Ethics and business conduct continued

Complaints raised via EthicsPoint provide valuable insight into
cultural issues and areas for organisational improvement.
Complaints are reported biannually to the Board’s Risk and Audit
Committee by the Ethics and Compliance function. In FY2019, we
improved the EthicsPoint process, ethics reporting capability andthe quality of investigations and investigations outcomes. Thesechanges will make the reporting more holistic and permit detailed
reporting of ethical culture issues to management and the Board.

The breakdown of business conduct cases reported in EthicsPoint
in FY2019 was as follows:Business conduct cases by category
Harassment and bullying 30%
Behaviour 14%
Health and safety 14%
Other(1) 10%
Equality in employment 9%
Performance 7%
Conflict of interest 5%
Ask a question 4%
Absenteeism 4%
Alcohol, drug and tobacco use 3%

Anti-corruption

Corruption misallocates resources, reinforces poverty, undermines
the integrity of government and community decision-making andwastes opportunities that arise from resource development. We arecommitted to contributing to the global fight against corruption
and working with business, government and civil society tosupport this effort.
Our commitment to anti-corruption compliance is embodied in
Our Charter and Our Code. We also have a specific anti-corruption
procedure that sets out mandatory requirements to identify andmanage the risk of anti-corruption laws being breached. We prohibit
authorising, offering, giving or promising anything of value directly
or indirectly to a government official to influence official action,or to anyone to encourage them to perform their work disloyallyor otherwise improperly. We also require our people to take carethat third parties acting on our behalf do not violate anti-corruption
laws. A breach of these requirements can result in disciplinary action,
including dismissal, or termination of contractual relationships.

(1) Accuracy of data and information; unfair dismissal; physical theft or loss; protecting
BHP assets; maintaining supplier relationships; personal information and privacy;
communicating externally; accepting gifts, hospitality and entertainment; cybersecurity; corruption; engaging with our communities competition.

Training in Our CodeAs in previous years, we deliver annual training for employees
and contractors where required in mandatory annual training
plans to help them clearly understand Our Code and the standardsof behaviour that are acceptable at BHP. In FY2019, 38,587 people
completed Our Code training. We are also rolling out further
awareness training on how to treat and manage complaints forline leaders to improve timely, effective and respectful handlingof complaints, as well as safe to speak up culture. Our CEO
frequently raises the importance of culture within BHP in hismonthly CEO messages.

Our Ethics and Compliance function has a mandate to design andgovern BHP’s compliance frameworks for key compliance risks,
including anti-bribery and corruption. The function is independentof our assets and asset groups, and comprises teams that areco-located in our main global locations and a specialised
Compliance Legal team. The Chief Compliance Officer reports
twice a year to the Risk and Audit Committee and separately
to the Committee Chairman, also twice a year.

In FY2019, we ran a Disrespectful Behaviours campaign to increaseawareness about behaviours that are not consistent with Our
Charter values. The campaign was designed to stimulate
conversations about what constitutes disrespectful behaviours,
why they exist and how to stop these behaviours. The campaign
appears to have been effective in raising awareness of theseissues as demonstrated by a 38 per cent increase in harassment
and bullying cases raised in EthicsPoint and a doubling of the
behaviour-related concerns in EthicsPoint in FY2019 comparedto FY2018.

Our anti-corruption compliance program is designed to meet therequirements of the US Foreign Corrupt Practices Act, the UK
Bribery Act, the Australian Criminal Code and applicable laws of
all places where we do business. These laws are consistent withthe standards of the OECD Convention on Combating Briberyof Foreign Public Officials in International Business Transactions.
We regularly review our anti-corruption compliance program tomake any changes required by regulatory developments.

Investigations, governance and reporting

With culture at the centre of key strategic priorities, we have many
initiatives to improve our policies, procedures and practices,building on changes we have already delivered. They include
the implementation of:

In addition to anti-corruption training as part of annual training
on Our Code, additional risk-based anti-corruption training wascompleted by 9,374 employees in FY2019, as well as numerous
employees of business partners and community partners.

• an updated Our Requirements for Business Conduct standard,
to strengthen our investigations framework, including providing
clear guidance on how each EthicsPoint concern is assessed
and triaged;• an independent, dedicated Central Investigation team within
our Ethics and Compliance function that investigates the mostserious allegations of misconduct and provides guidance to drivea standardised, quality investigation process throughout BHP;
• an Integrity Working Group, chaired by our Chief Compliance
Officer and comprised of senior leaders across the Health, Safety
and Environment; Risk; Internal Audit; Legal; and Ethics andCompliance functions, with accountability for oversight of theoperational effectiveness of the Investigations Framework,
including oversight of investigations completed by the Central
Investigations team.

BHP Sustainability Report 2019

More information on our anti-corruption compliance program(including risk assessments, training and communication) is available
online at bhp.com/anticorruption.

76

Appendix

In this section
Performance data – Environment

78

Performance data – Climate Change

80

BHP Water sensitivity assessment

83

Detailed significant water related risks

84

Performance data – Water

87

BHP asset-level water data summary90

Performance data – Society91

Performance data – People

91

BHP Sustainability Report 201977

Appendix

Performance data – Environment
2019

2018(1)hectares10,018,600

10,001,500– Land disturbed

hectares148,800

141,500– Land rehabilitated(3)hectares27,46027,180hectares66,50028,000ML352,950

339,870

Water withdrawals by quality – Type 1

ML58,85034,900

Water withdrawals by quality – Type 2

ML37,56044,150

Water withdrawals by quality – Type 3

ML

256,550

260,820

Water withdrawals by source – Surface water(7)ML

50,58043,380

Water withdrawals by source – GroundwaterML

133,260

127,230

Water withdrawals by source – Sea waterML

169,100

169,250ML

119,250

118,940

Land(2)Land owned, leased or managed– Land set aside for conservation(3)(4)

Water(5)

Withdrawals(6)Discharges
Water discharges by quality – Type 1

ML

0

0

Water discharges by quality – Type 2

ML

3,060

1,150

Water discharges by quality – Type 3

ML116,190

117,790

Water discharges by destination – Surface water

ML

2,940

2,730

Water discharges by destination – Groundwater

ML

1,540

840

Water discharges by destination – Sea waterML

114,450

115,040

Water discharges by destination – Third party

ML

320

320

ML

268,620

Consumption – evaporation

ML

139,980

140,760

Consumption – entrainmentML107,270

17,870Consumption – otherML

21,3701,330

Recycled/reusedML

246,420

261,620

Diversions

ML

Consumption

Diversions – withdrawals

ML

101,520

16,290

Diversions – discharges

ML72,5007,860

Total oxides of sulphur

tonnes

13,20015,400Total oxides of nitrogen

tonnes81,50080,600Total mercury

tonnes0.0

0.0

Air emissions

Waste
Hazardous waste – Mineral total (including tailings)(8)kilotonnes

13,50013,100Non-hazardous waste – Mineral tailings

kilotonnes

167,000

137,000

Accidental discharges of water and tailings(10)(11)megalitres00(8)(9)

BHP Sustainability Report 201978

Appendix continued

Regional environment fines levied(11)2019

Number of Fines

US$45,529

5

North America

US$0

0

South America

US$3,573

1

Australia

Designated protected areas
Designated protectedareas adjacent to land
managed by
our assets
NumberDesignated protected Size of owned, leased
areas on or containing or managed land on orcontaining portions
portions of landof designatedmanaged byprotected area
our assets
NumberHectares

Terrestrial
Australia

16

3

8,501

North America

4

10

2,804

South America

4615,3001

176Maritime
Australia(1) Data in italics indicates that data has been adjusted since it was previously reported. Water restatements are because of the change from the Minerals Council of Australia’s
Water Accounting Framework to ICMM’s Water Reporting guidelines in 2019 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 ten to be consistent with asset/regional data presented in the Water section of 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).
(6) Third party water withdrawals have been reported by source.
(7) Includes rainfall and runoff volumes captured and used during the reporting year; rainfall and runoff volumes that have been captured and stored are excluded
and will be reported in the future year of use.
(8) For tailings related minerals waste these figures represent the total deposited in the reporting year. For details on our current total volume of tailings stored, refer to BHP Tailings Facilities
Disclosure: Response to the Church of England Pensions Board and Council on Ethics Swedish National Pension Funds (June 2019) at https://www.bhp.com/-/media/documents/
environment/2019/190607_coe.pdf?la=en.
(9) Year-on-year movement has been largely caused by an improvement in calculation methodology at our Coal assets in FY2019.
(10) Data reported for environmentally significant incidents.
(11) Does not include the dam failure at Samarco, our non-operated minerals joint venture.

BHP Sustainability Report 201979

Appendix continued

Performance data – Climate change(1)Energy consumption(2)Operational energy consumption by source
FY2019FY2018114

115

Consumption of fuelpetajoules– Coal and cokepetajoules

11– Natural gas

petajoules

24

31– Distillate/gasoline

petajoules

87

81– Otherpetajoules

32

Consumption of electricity

petajoules

35

35

Total operational energy consumption

petajoules

149

150

Operational energy consumption from renewable sources

petajoules

0.31

0.38

Operational energy intensity(3)gigajoules per tonne of copper
equivalent production

22

21

Operational energy consumption by commodity
FY2019Consumption offuel petajoules

FY2018

Total operational
Consumptionof electricity energy consumption
petajoules
petajoules

Petroleum

15.0

0.2

15.2

Copper20.7

24.6

Iron Ore

31.0

1.2

Coal

39.3

Total

114.4

Consumption offuel petajoules

Total operational
Consumptionof electricity energy consumption
petajoules
petajoules

24.1

0.3

24.4

45.3

19.6

24.6

44.2

32.2

29.3

1.2

30.5

5.3

44.6

34.7

5.2

39.9

34.6

149.0

115.5

34.5

150.0

FY2019FY2018

Greenhouse gas emissions
Operational GHG emissions by source(4)(5)(6)

Scope 1 GHG emissions

million tonnes CO2-e

9.7

10.6

Scope 2 GHG emissions(7)million tonnes CO2-e

5.0

5.9

million tonnes CO2-e

14.7

16.5

tonnes CO2-e per tonne of copper
equivalent production

2.2

2.3

Total operational GHG emissions
Operational GHG emissions intensity(3)

BHP Sustainability Report 201980

Appendix continued

Operational GHG emissions by commodity and asset(4)(5)FY2019FY2018

Scope 1 GHG
emissionskilotonnes CO2-e

Scope 2 GHG
emissionskilotonnes CO2-e

Total operational
GHG emissions
kilotonnes CO2-e

Scope 1 GHG
emissionskilotonnes CO2-e

Scope 2 GHG
emissionskilotonnes CO2-e

Total operational
GHG emissions
kilotonnes CO2-e

Petroleum

1,237

13

1,250

2,570

10

2,580

– Gulf of Mexico

200

0

200

220

0

220

– US Onshore(8)

467

3

470

1,680

10

1,690

– Australia

320

0

320

430

0

430

– Other

250

10

260

240

0

240

Copper

1,470

2,940

4,410

1,390

3,940

5,330

– Escondida

930

2,140

3,070

890

3,040

3,930

– Pampa Norte

340

330

670

320

480

800

– Olympic Dam

200

470

670

180

420

600

2,050

260

2,310

1,930

260

2,190

Iron Ore– Western Australia Iron Ore

2,050

260

2,310

1,930

260

2,190

Coal

4,500

1,180

5,680

4,280

1,150

5,430

– Queensland Coal

3,980

1,090

5,070

3,820

1,070

4,890

– New South Wales Energy Coal

520

90

610

460

80

540

Other assets

460

530

990

380

540

920

– Nickel West

460

530

990

380

540

920

9,730

4,970

14,70010,5905,950

16,540FY2019FY2018

17.3

8.2

Total

(9)

Scope 3 GHG emissions by category(10)Upstream
Purchased goods and services (including capital goods)

million tonnes CO2-e

Fuel and energy related activities

million tonnes CO2-e

1.3

1.4

Upstream transportation and distribution(11)million tonnes CO2-e

3.6

3.6

Business travel

million tonnes CO2-e

0.1

0.1

Employee commuting

million tonnes CO2-e

<0.1

<0.1

Downstream transportation and distribution(12)million tonnes CO2-e

4.0

5.0

Processing of sold products

million tonnes CO2-e

304.7

322.6

– Iron ore to steel(14)million tonnes CO2-e

299.6

317.4

– Copper cathode to copper wire

million tonnes CO2-e

5.1

5.2

Use of sold products

million tonnes CO2-e

232.7

253.8

– Metallurgical coal(14)million tonnes CO2-e

111.4

112.3

– Energy coal

million tonnes CO2-e

67.0

71.0

Downstream(13)– Natural gas

million tonnes CO2-e

28.3

36.4

– Crude oil and condensates(15)million tonnes CO2-e

23.3

29.6

million tonnes CO2-e

2.8

4.5

million tonnes CO2-e

3.1

1.7

– Natural gas liquids
Investments (i.e. our non-operated assets)(16)

BHP Sustainability Report 201981

Appendix continued(1) Unless otherwise noted, FY2018 data includes Continuing operations and Discontinued operations (Onshore US assets). FY2019 data includes Discontinued operations(Onshore US assets) to 31 October 2018 and Continuing operations.
(2) Calculated on an operational control basis in line with World Resources Institute/World Business Council for Sustainable Development guidance.
(3) Copper equivalent production has been calculated based on FY2019 average realised product prices for FY2019 production, and FY2018 average realised product prices
for FY2018 production. Production figures used are consistent with energy and emissions reporting boundaries (i.e. BHP operational control).
(4) BHP currently uses Global Warming Potentials (GWP) from the Intergovernmental Panel on Climate Change (IPCC) Assessment Report 4 (AR4) based on 100-year timeframe.
(5) Scope 1 and 2 emissions have been calculated on an operational control basis in line with the GHG Protocol Corporate Accounting and Reporting Standard.
(6) Scope 1 refers to direct GHG emissions from operated assets.
(7) Scope 2 refers to indirect GHG emissions from the generation of purchased electricity and steam that is consumed by operated assets. Our Scope 2 emissions have been
calculated using the market-based method using supplier specific emissions factors, in line with the GHG Protocol Scope 2 Guidance. Our market-based Scope 2 emissions
were 5.0 Mt CO2-e which compares to 5.1 Mt CO2-e if calculated using the location-based method. A residual mix is currently unavailable to account for voluntary purchases
and this may result in double counting between electricity consumers.
(8) Includes four months of emissions in FY2019 prior to divestment of this asset.
(9) Total includes functions, projects, exploration, closed sites and consolidation adjustments.
(10) Scope 3 emissions have been calculated using methodologies consistent with the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
Scope 3 emissions reporting necessarily requires a degree of overlap in reporting boundaries due to our involvement at multiple points in the life cycle of the commodities
we produce and consume. A significant example of this is that Scope 3 emissions reported under the ‘Processing of sold products’ category include the processing of ouriron ore to steel. This third party activity also consumes metallurgical coal as an input, a portion of which is produced by us. For reporting purposes, we account for Scope 3
emissions from combustion of metallurgical coal with all other fossil fuels under the ‘Use of sold products’ category, such that a portion of metallurgical coal emissions isaccounted for under two categories. This is an expected outcome of emissions reporting between the different scopes defined under standard GHG accounting practices
and is not considered to detract from the overall value of our Scope 3 emissions disclosure. This double counting means that the emissions reported under each category
should not be added up, as to do so would give an inflated total figure. For this reason we do not report a total Scope 3 emissions figure. Further details of the calculation
methodologies, assumptions and key references used in the preparation of our Scope 3 emissions data can be found in the associated Scope 3 calculation methodology
document available online at bhp.com/climate.
(11) Includes product transport where freight costs are covered by BHP, for example under Cost and Freight (CFR) or similar terms, as well as purchased transport services
for process inputs to our operations.
(12) Product transport where freight costs are not covered by BHP, for example under Free on Board (FOB) or similar terms.
(13) All iron ore production is assumed to be processed 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 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
apply. Processing/refining of petroleum products is also excluded as these emissions are considered immaterial compared to the end-use product combustion reported in the‘Use of sold products’ category.
(14) Scope 3 emissions reported under the ‘Processing of sold products’ category include the processing of our iron ore to steel. This third party activity also consumes
metallurgical coal as an input, a portion of which is produced by us. For reporting purposes, we account for Scope 3 emissions from combustion of metallurgical coalwith all other fossil fuels under the ‘Use of sold products’ category, such that a portion of metallurgical coal emissions is accountable for under two categories.
(15) All crude oil and condensates are conservatively assumed to be refined and combusted as diesel.
(16) For BHP, this category covers the Scope 1 and 2 emissions (on an equity basis) from our assets that are owned as a joint venture but not operated by BHP.

BHP Sustainability Report 201982

Appendix continued

BHP Water sensitivity assessment

The following table provides a detailed summary of our water sensitivity assessment and the degree (high, moderate or low) to which
an asset is sensitive to a range of water-influencing factors. This assessment is primarily qualitative.
(L = Low influence on water sensitivity; M = Medium influence on water sensitivity; H = High influence on water sensitivity; NA = Not applicable)

BHP water source
interactions

Stakeholder concern

Shared water resource
within communities

Potential for
cumulative impacts

Proximity to highconservation area

Basin allocation

Level of water resource
sustainability

Water regulation

Salar deAtacama,
Coloso coastand Pampa
Colorado

Arid, cold
desert

No

H

L

H

Arid andlow water
use

H

H

M

H

H

M

M

High

LegacyAssetsCanadaMultiplecatchments

Boreal towarm
temperate

No

NA

NA

L

Low tomedium

L

L

L

L

NA

M

L

Low

LegacyAssets UnitedStatesMultiplecatchments

Warmtemperate
to arid

No

L

NA

NA

Mediumto high

M

L

M

H

NA

M

L

Moderate

Nickel West

Multiplecatchments

Warmtemperate,
steepe, hot

No

M

L

L

Arid andlow water
use

M

L

L

L

L

L

M

Low

NSW Energy
Coal

HunterWarm
temperate,
humid,
Cool

No

M

H

L

Mediumto high

H

H

H

M

M

L

M

Moderate

Olympic Dam

Great ArtesianBasin

Arid, hotdesert

No

H

L

L

Arid andlow water
use

M

H

M

H

M

M

L

Moderate

Pampa Norte

CuencasArid, cold
Fronterizas Salar desert
Michincha – Rio
Loa, Salar delHuasco, Pampa
del Tamarugal

No

H

M

L

Arid andlow water
use

H

H

M

H

H

M

M

High

Petroleum

Multiplecatchments

Subtropicalto tropical(offshore)

Yes

L

L

H

No Data

L

L

L

L

L

L

M

Low

PotashZelma ReservoirCold,humid,
seasonal
extremes

No

L

M

NA

Low tomedium

L

L

L

L

L

L

M

Low

Queensland
Coal (BMA/
BMC)

Fitzroy & Bowen

Warmtemperate,
humid, hot

Yes

H

H

M

Low

H

H

H

M

H

M

H

High

Western
Australia
Iron Ore

Upper Fortescue Arid, hotcatchment
desert

Yes

H

M

L

Arid andlow water
use

M

L

H

H

H

L

L

Moderate

Baseline water stress(2)Sea water

Escondida

Asset or region

Surface water

Competition for resources

Groundwater

ClimateCyclone prone

Catchment

Climate zone(1)Category

Watersensitivity
Sustainability(BHP
of resource Regulation assessed)(1) In accordance with Köppen-Geiger climate classification terminology.
(2) Derived from the World Resources Institute’s Aqueduct global water risk mapping tool and the associated descriptors for baseline water stress: Low (<10%); Low to medium(10–20%); Medium to high (20–40%); High (40–80%); Extremely high (>80%); Arid and low water use; and no data. Gassert, F., M. Luck, M. Landis, P. Reig, and T. Shiao. 2014.
Aqueduct Global Maps 2.1: Constructing Decision-Relevant Global Water Risk Indicators. Working Paper. Washington, DC: World Resources Institute. Available online at
wri.org/publication/aqueduct-global-maps-21-indicators.

BHP Sustainability Report 201983

Appendix continued

Detailed significant water-related risksThis table provides further details on BHP’s significant water-related risks, potential impacts and controls. For a summary of BHP’swater-related risks by asset see the Our water-related risks section of this report.
Risk area

Risk description

Potential impacts

Controls

Catchmentlevel

Catchment-level risks are
influenced by the physical,
environmental, socio-political,
water resource and regulatory
settings of our operations, theactivities of other water users
and present and past impacts
from our operations.

Potential impacts to the community from
BHP’s access to and use of water resources
within the catchment include reduced watersupply to communities, aesthetic impacts torecreational use for water or contaminationof water sources with potential reduction in
supply and availability for community wateruse. Ineffective catchment governance andregulation can compound these risks.

Controls to manage the impact to the water resource,
including the environmental and community impacts,
include ongoing and regular stakeholder engagement
to ensure effective collaboration, compliance withwater allocation permits, targets for reduced
freshwater use, participation in catchment-level
reviews, assessments to understand and improve
technical knowledge, challenges and interactions
at a catchment level, ongoing monitoring andmeasurement of water (quality, quantity, baseline andreference characteristics of water resource andmovements), water recovery or source substitution,
integration of water management practices into
asset business planning, identification and where
feasible implementation of opportunities for
reduced water use and, where practical, ongoing
monitoring of flora and fauna and other indicatorsof environmental health.

Most of our assets are exposed torisks associated with cumulative
impacts to shared water resources.
BHP acknowledges and seeks toinclude the cultural and spiritualvalues associated with water
resources, especially to Indigenous
communities, in considerationof this risk.
While BHP does not have theability to directly manage allcatchment risks, we need tomaintain a focus on managementof our contribution to the risk andcommit to participate in ongoingcatchment governance.

The impacts to the environment may
include changes to natural groundwaterlevels, changes to stream flows, water
quality issues in ground, surface or marine
environments, reduced pressure in
groundwater aquifers that, in turn, may
affect the biodiversity, habitats andspecies that rely on the water sources.
Environmental impacts can contribute tocommunity conflict and cause regulatory
breaches, legal liability and reputational
impacts. They can also alter the spiritualvalue of water/water features to Indigenous
groups and impact the value of water
resource for future generations. They may
have longer term financial implications andthreaten our business model, including ourability to expand or develop new resources.
Unsustainable use of the water resource
may impact production and a lack ofunderstanding of the water resource
may fail to provide transparency to theoperations on the long-term water
management limitations and opportunities.
The cumulative impacts resulting frommultiple uses within a catchment
may exacerbate the community andenvironmental impacts discussed above.

ClimatechangeClosureHuman rights impact assessments are also
conducted to understand potential community risks
and impacts. For more information on engaging with
communities, refer to the Society section.
Ongoing assessment is conducted of baseline
conditions at a catchment level and the potential
direct, indirect and cumulative impacts of ouroperations on this. Climate change science mustbe factored into this assessment. For more
information on the Our Requirements standards,
refer to the Environment section.
Our water stewardship strategy is inclusive ofa collective action and a disclosure work stream,
both of which focus on water governance andcollaborating with host communities, governments,
industry peers and other stakeholders.

Climate change can heighten
existing physical water risks andintroduce new ones. For example,
it may increase the intensity of
extreme weather events, such as
flooding and drought. Over the
longer term, reduced rainfall
can create water security issues,
while worsening excess water
management challenges for others.

Climate change can affect near-and
long-term business performance and createa risk of early asset closure. Climate change
effects may significantly increase the riskof other water-related risks, such as
management of excess water, water accessfor BHP and others, sea level rise, coastal
erosion, storm tide inundation and affects
from increased extreme weather events.

Controls for climate-related water risks can be similar
to those for water excess, security and extreme
weather events.

Operations that are closing,have closed, or are under ‘care
and maintenance’ can havewater quality (within the BHP
footprint and beyond) or water
accumulation issues.

Ineffectively managed closure water risks
may adversely affect the environment,
communities and our business.

Effective closure planning is an important control
across BHP. The closure plans consider issues such as
pit void lake formations, acidic and metalliferous
drainage and saline water accumulation and potential
impact to both surface and groundwater. For legacy
assets, controls may also be similar to those for excesswater, extreme weather and water quality risks.

For more information on our approach to climatechange, refer to the Climate change section.

For more information on our approach to closure,refer to the Environment section.
For more information on the financial provisions
relating to closure liabilities, refer to our Annual
Report 2019, available online at bhp.com.

BHP Sustainability Report 201984

Appendix continued

Risk area

Risk description

Potential impacts

Controls

Compliance

Our assets operate in medium-tostrong regulatory environments forwater and regulation compliancerequires constant vigilance.

Non-compliances could result in minor
infringements through to financial penalties
or enforcement orders or proceedings.

We need to continually monitor and, where required,improve our compliance with all water regulatory
requirements. We also engage with regulators
to understand their priorities and how regulatory
requirements apply to our assets and at acatchment level.
Ongoing dialogue takes place with regulatory
authorities to address any existing non-compliances
regarding surface water and groundwater.

Dewatering

Many of BHP’s ore bodies arelocated below the natural
groundwater level and to accessthe ore we need to pump water.
Dewatering is an important mine
production enabling activity toboth enable access to ore in thecase of ore located below thewater table or enable accessto ore by supporting pit stability.

This can potentially impact geotechnicalstability and safety, water supply, excesswater management, the environment,
communities and production.

Controls for dewatering include mine planning,
maintaining an operational and predictive waterbalance, defining dewatering and depressurisation
targets, monitoring and reviewing performance
metrics, environmental impact assessments,
managing excess/surplus water (such as the
re-injection of excess water to local aquifers,
where possible) and ongoing hydrology
assessments to inform planning.

Extremeweather

Extreme weather can cause
drought, snow or flood eventsand may arise from acute or
chronic climate cycles.

Extreme weather events may contributeto production, environmental, community
and reputational impacts. For example,
ineffective management during drought
conditions may constrain production due
to limitations on water availability.
Ineffective management of excess water
has the potential to impact geotechnicalstability and safety, prevent site access,cause injuries due to flooding andimpact the environment, communities
and production.

Forecasting and monitoring of extreme weather
events is important in assisting timely and appropriate
management. Other preventative controls include
design criteria for surface water infrastructure(including extreme weather events analysis)
and building integrity within the infrastructure.
Mitigating controls include emergency preparedness,
communications systems and adequately trained
staff. For example, all assets test the effectivenessof emergency preparedness for extreme weather
events by undertaking regular emergency drills that
include external agencies, such as regional fire andpolice as well as internal BHP resources.

MarineMarine ecosystems are susceptible
to impacts resulting from changes
to the physical (e.g. temperatureand pH) and chemical (metal,hydrocarbon concentrations)parameters of the water body.

Due to regional differences in marine
ecosystems and potential cumulative
impacts, the type and extent of the impacts
to the marine environment for each of ouroperations may be different.

Controls for hydrocarbon containment include
pressure relief systems, engineering design
specifications, operational procedures, passive
protection and bunding. Mitigating controls
include communication and emergency systems.

These may include biodiversity andcommunity impacts from catastrophic
impacts, which may arise from a Petroleum
loss of containment risk to chronic impacts
if, for example, discharges are noteffectively managed.

To minimise impacts associated with smaller
discharges in marine environments, treatment,
sediment, erosion and other collection and/or
treatment systems are utilised.

Key risk events that may contributeto marine impacts include:–– loss of containment ofhydrocarbons within Petroleum;–– desalination facilities thatdischarge high-salinity waterin low volumes;–– port operations located in
proximity to communities
and/or key marine areas;

Brine discharges at desalination facilities
may result in the alteration of marine
ecosystems.

Controls for desalination and port operations
include ongoing maintenance of criticalequipment, monitoring and technical studies
and stakeholder engagement.

–– other uncontrolled operational
discharges.
Tailings

Ineffective management of tailings
facilities can pose risks due tocatastrophic failure, seepage andinefficient water management.

BHP Sustainability Report 2019

Impacts arising from the ineffective
management of tailings facilities can range
from production impacts to catastrophic
impacts to employees, communities and theenvironment, with flow on financial andreputational impacts.

85

Following the Fundão tailings dam failure, BHP
has sought to enhance our tailings management,
governance and risk assessment processes andcontribute to raising industry-wide standards
generally. For more information, refer to theTailings dams section.

Appendix continued

Risk area

Risk description

Potential impacts

Controls

Water
access,sanitationand hygiene(WASH)The remote nature of many of ouroperations means BHP is often the
supplier of water to our workforce
for drinking and sanitation, andthe manager of effluent. Thisrole sometimes extends toneighbouring communities.

Ineffective controls may result in illness
and potential fatalities, which could disrupt
our operations and have financial andreputational impacts. Our operations also
have the potential to affect the culturaland spiritual values associated withwater resources.

Specific to the provision of drinking water,
understanding the baseline quality of the water we
receive, the performance of our treatment plants andmonitoring the water produced are WASH priorities.

Wherever we do this we arecommitted to providing accessto safe and reliable drinking water(potable water) and appropriate
sanitation and hygiene facilities.

Insufficient or poorly maintained
Water
infrastructure water infrastructure is central to
the security of supply and otherwater-related risks.

Other controls also include appropriate infrastructure,qualified operators, sampling and exception reports
and responses, maintenance strategies, emergency
response and business continuity planning.
Human rights impact assessments (HRIAs) area control that assess both direct impacts to theworkforce and communities, as well as potential
impacts to other human rights, such as Indigenous,
spiritual and cultural rights. All assets are required
to undertake HRIAs and these are reviewed regularly.
For more information on human rights at BHP, referto the Society section.

The inability for water infrastructure tosupply the required quantity or qualityof water necessary for our assets canresult in losses in production and impacts
to the long-term viability of our operations.

Controls include design and construction to internaland external standards, inspections and maintenanceof infrastructure, operating within set parameters,monitoring and response.

Changes to the quality of water that runs
through or under an operation can affectthe surrounding groundwater resources andstreams. This can affect other water users
and the environment. Changes in water
quality can also constrain production, or
result in water accumulation over time (dueto discharge restrictions), which makes
extreme rainfall events more challenging.
This risk can persist for years after mining
activity has ceased.

Management of water quality risks requires anunderstanding of what contributes to changes inwater quality, how this may affect sensitive receptors
within the environment and/or communities, and theappropriate management measures required.
Controls include avoiding contact with substancesthat may impact water quality, minimising any
impacts through treatment and monitoring of water
quality outcomes so that the effectiveness of controls
is understood and can be reviewed as appropriate.

Water quality

Water quality risks may occur fromrunoff or seepage (from exposed
ground, pit slopes, waste rock),
infiltration from water, tailings andprocess facilities, infrastructure,and increases in salinity due tolong-term storage of water.

Water
security

A continuous and sustainable water The inability to secure water access canconstrain production, affect the
supply is critical to our operations.
Location and climate impact water environment, create community concerns
availability and supply. For example, about water availability and have regulatory,
legal and financial implications.
availability has been a risk at our
NSW Energy Coal asset in the
Hunter region of eastern Australia
due to extended periods of
below-average rainfall.

Regular maintenance of water infrastructure, suchas treatment plants, pipelines and tanks is criticalto ensure that water is adequate for our assets,
both in quantity and quality.

An adequate understanding of technical aspectsof the water resource, hydrological conditions
and or long-term changes in water availability andmanagement is critical to ensure ongoing supply.
In addition, understanding demand through waterbalances, predictive modelling and monitoring,is central for effective water security.
Many of the controls in place for the managementof catchment risk are applied for management ofwater security risks. Refer to the controls listed forcatchment risk above.
We seek to use lower-quality water where feasible
and recover and recycle water to reduce
freshwater requirements.

BHP Sustainability Report 201986Appendix continued

Performance data – Water

FY2019 withdrawals by asset(by source)This section provides detailed disclosure of our water performanceacross various water metrics. It should be noted that for all data
presented, Discontinued operations (Onshore US assets) havebeen excluded.

180,000
150,000

Water withdrawals(1)120,000

FY2017–FY2019 total withdrawals(by source)

90,000

Megalitres

60,000400,000
30,000350,000

51K

300,0000

250,000

133K

Escondida Western Queens- Petroleum Nickel
Australia land CoalWest
Iron Ore (BMA/BMC)

Sea water

200,000

Olympic Pampa
Dam
Norte

Surface water

NSW
EnergyCoal

LegacyassetsPotashGroundwater

150,000
100,000

Total water withdrawals for FY2019 across our operations increased
relative to FY2018. The increase was due to an increase in
groundwater use at WAIO associated with dust suppression andore processing, and an increase in the use of sea water due toincreasing throughput of Escondida’s desalination plant.

169K

50,000
0

2017

2018

Sea water

2019

Groundwater

Surface water

While total water withdrawals for FY2019 were 352,950 megalitres,
only 16 per cent was of Type 1 water quality. Nearly half of our total
water withdrawals now come from sea water. Groundwaterremained a significant input at 38 per cent in FY2019, driven by
Escondida and WAIO. This is expected to reduce as Escondidatransitions to desalination.

FY2017–FY2019 total withdrawals(by quality)
Megalitres

Escondida, WAIO and Queensland Coal are the greatest terrestrial
water users across our business. WAIO has a high groundwater
dependency compared to Queensland Coal, which has a higher
surface water dependency (contributed to by rainfall).

400,000
350,000

59K

300,000

38K

Water discharges

250,000

Water discharges includes water that has been used anddischarged into a receiving water body. This includes seepage
from tailings dams to groundwater, discharges from operations
to surface waters (which are also affected by periods of higher
rainfall) and discharges to sea water. Water we treat and thenon-supply to third parties is captured as a diversion consistent
with ICMM Guidelines as it is not intended for operational
purposes. Water that is evaporated or entrained(2) is also
excluded from discharges and instead reported under thewater consumption category.(3)200,000
150,000

257K

100,000
50,000
0

2017

2018

Type 32019

Type 2Type 1(1) Includes rainfall and runoff volumes captured and used during the reporting year; rainfall and runoff volumes that have been captured and stored are excluded
and will be reported in the future year of use.
(2) Entrained water includes water incorporated into product and/or waste streams, such as tailings, that cannot be easily recovered.
(3) Evaporation and entrainment, previously reported as water outputs under the WAF, have been reported under consumption to align with the ICMM Guidelines.

BHP Sustainability Report 201987Appendix continued

FY2017–FY2019 total discharges(by destination)

FY2019 discharges by asset(by destination)

140,000

80,000

0.32K
2.9K
1.5K

120,000
100,000

60,00080,00040,000114K

60,00040,00020,00020,0000

2017

Sea water

2018

0

2019

Groundwater

Surface water

Third party waterSea water

140,000

3K

100,000
80,000116K

60,00040,00020,000
0

2017

2018

Type 3BHP Sustainability Report 20192019Type 2

Surface water0

Potash Olympic Pampa
Dam
Norte

Groundwater

0

0

NSW
EnergyCoal

LegacyassetsThird party water

Total water discharges for FY2019 were 119,250 megalitres.
The majority of water discharges are to sea water at over
97 per cent, with Escondida and Petroleum being the largest
contributors. The increase in discharges to sea water between
FY2017 and FY2019 is largely due to increased desalination at
Escondida. The second largest discharge volume is to surface
water; this is influenced by rainfall and results in discharges
typically to riverine systems. Approximately 40 per cent of ourassets did not report any water that was used and subsequently
discharged in FY2019. In previous years, water used and discharged
consisted of evaporated and entrained water. This is now reported
as consumption in line with ICMM Guidelines.

FY2017–FY2019 total discharges(by quality)

120,000

0
Escondida Petroleum Queens- Western Nickel
land Coal Australia West
(BMA/BMC) Iron Ore

Type 188

Appendix continued

Water recycled/reused

FY2019 consumption by asset

During FY2019, the total volume of water recycled/reused
was 246,420 megalitres. This represents a total efficiencyof 61 per cent when compared to total withdrawals excluding
sea water. BHP has ongoing work to improve the accuracyof recycled and reused data. Furthermore, BHP is assessing
opportunities to improve efficiency of water use, as describedin our Risk management can create opportunities section.

Megalitres
100,000

80,000

Water diversions

60,000FY2019 is the first year that BHP has disclosed diversions.
Diverted water is defined as water that is managed without any
intention to be used for operations. For example, this includes
the water that is removed from below the water table at WAIO
to access the ore but is returned to the environment and notconsumed in operations. Another example is when BHP withdraws
water and treats it for use as drinking water by local communities,
as Olympic Dam does for the town of Roxby Downs in South
Australia. In FY2019, 101,520 megalitres of water was withdrawn
and diverted (not used for BHP operations) largely driven by thewater that is treated by our Legacy assets in North America.

40,00020,0000

Water consumption

Water consumption was previously reported as outputs. With themove to using the ICMM Guidelines, consumption (the volume
of water used by the site or operational facility and not returnedto the water environment or a third party) is now a separate
reporting category. Data for evaporation and entrainment fromthe FY2017 and FY2018 reporting periods has been moved tothe consumption category in order to allow representative
year-on-year comparisons. Evaporation and entrainment(1) werethe most significant contributors to consumption in FY2019,representing over 90 per cent of total consumption. The categoryof ‘other’ for consumption includes water consumed, for example
as a result of potable water consumption at operations. This
increased focus on consumption will assist with increased andimproved data for entrainment and evaporation and assist withidentifying opportunities to reduce, where possible, losses suchas those associated with evaporation. Entrainment of water intailings is the largest contributor to consumption at Escondida
whereas evaporation is the key driver of consumption at WAIO
and Queensland Coal. All water withdrawn at our Petroleum
assets was either discharged or diverted.

0
Escondida Queens- Western Nickel Olympic Pampa
land Coal Australia West
Dam
Norte
(BMA/BMC) Iron Ore

Evaporation

Entrainment(1) Entrainment includes water incorporated into product and/or waste streams, such as tailings that cannot be easily recovered.

BHP Sustainability Report 2019

89

NSW
EnergyCoal

Legacyassets

Other

Potash Petroleum

Appendix continued

BHP asset-level water data summary(1)(2)FY2019 water performance data excludes Discontinued operations (Onshore US assets).

MetricTotal Escondida

LegacyassetsNickelWest

NSW
Energy Olympic
Coal
Dam

Pampa
Norte Petroleum(3)Queensland
Coal
Potash (BMA/BMC)

Western
Australia
Iron OreWithdrawals(4) (megalitres)

352,950

172,750

870

16,7108,680

11,7709,760

41,180630

43,92046,680

Water withdrawals by
quality – Type 1

58,850

20

870

2,430

3,190

0

0

80

0

18,62033,640

Water withdrawals by
quality – Type 2

37,560

0

0

4,550

2,800

9,440

0

0

630

19,0201,120

Water withdrawals by
quality – Type 3

256,550

172,730

0

9,730

2,700

2,330

9,760

41,100

0

6,280

11,920

Water withdrawals by
source – Surface water(5)50,580

20

870

440

6,610

280

5,990

80

590

35,7000

Water withdrawals by
source – Groundwater

133,260

45,570015,4302,080

11,480

3,760

0

40

8,220

46,680

Water withdrawals by
source – Sea water

169,100

127,160

0

840

0

0

0

41,100000Discharges (megalitres)

119,250

74,650

0

320

0

0

0

41,090

10

1,840

1,340

Water discharges by
quality – Type 1

0

0

0

0

0

0

0

0

0

0

0

Water discharges by
quality – Type 2

3,060

0

0

0

0

0

0

0

0

1,840

1,220

Water discharges by
quality – Type 3

116,190

74,650

0

320

0

0

0

41,09010

0120

Water discharges bydestination – Surface water

2,940

0

0

0

0

0

0

0

0

1,690

1,250

Water discharges bydestination – Groundwater

1,540

1,380

0

0

0

0

0

0

10

150

0

Water discharges bydestination – Sea water

114,455

73,280

0

0

0

0

0

41,0900090Water discharges bydestination – Third party

320

0

0

320

0

0

0

0

0

0

0

Consumption (megalitres)

268,620

93,5701,730

15,9006,960

10,680

9,140

0

90

67,61062,940Consumption – evaporation 139,980

26,760

1,730

300

3,430

5,550

6,150

0

70

53,04042,950Consumption –entrainment

66,360

0

0

3,220

1,960

2,850

0

0

12,89019,990Consumption – other107,270
21,370450

015,600

310

3,170

130

0

30

1,680

0

246,420

38,790

10

8,100

0

13,660168,630

0

0

6,580

10,650

Diversions – withdrawals

101,520370

39,460

0

0

0

790

0

0

24,58036,320

Diversions – discharges

72,500360

40,540

0

0

980

790

1,250

290

9,010

19,280Recycled/reused(megalitres)
Diversions (megalitres)(1) Excludes Discontinued operations (US Onshore assets).
(2) Data has been rounded to the nearest 10. In some instances the sum of totals for quality, source and destination may differ due to rounding.
(3) Petroleum assets have been grouped due to their relatively lower volumes of water withdrawals, discharges and consumption compared to the mining assets.
(4) Third party water withdrawals have been reported by source.
(5) Includes rainfall and runoff volumes captured and used during the reporting year; rainfall and runoff volumes that have been captured and stored are excluded
and will be reported in the future year of use.

BHP Sustainability Report 201990

Appendix continued

Performance data – Society(1)Community complaints
Operations withOperations locatedin or adjacent to formal agreementswith Indigenous
Indigenous
communities
peoples’ territories

2019

Country

Dust

33

Australia

Noise

26

Canada

1

1

Odour

16

Chile

2

2

Other

63

26

13

(1) FY2018 performance data for society includes Continuing operations and Discontinued operations (Onshore US). FY2019 performance data includes Discontinued operations to
31 October 2018 and Continuing operations.

Performance data – People(1)Workforce data by region

Fatalities(2)TRIF(2)Average
Employee
Contractor absenteeism
rate (hours
occupational occupational
illness
illness per employee
incidence(3)incidence(3) per hour)(3)(4)Average number and% of employees(3)(5)

Average number and% of contractors(3)(5)

Asia

0

–

0

0

37.31

1,744

6

1,711

3.93

Australia

1

6.5

4.63

2.55

73.57

18,146

63

21,01248.32

Europe

0

–

0

0

13.03

59

<1

9

0.02

North America

0

2.4

0

0

35.10

1,998

7

1,202

2.76

South America

0

1.9

4.84

0.58

65.10

6,979

24

19,554

44.96

Total

1

4.7

4.38

1.62

67.14

28,926100

43,488

100

Regional safety fines levied
Regional safety fines levied

FY2019Numberof fines

Australia

US$545

2

North America

US$363

1

South America

US$38,240

5Employees by gender and employment type

Employee by region and gender

Total %

Male %

Female %Total %

Male %

Female %Full-time

94.46

78.11

21.89

Asia

5.39

39.53

60.47

Part-time

3.04

56.82

43.18

Australia

66.67

78.81

21.19

Fixed-term full-time

2.43

52.48

47.52

Europe

0.18

49.15

50.85

Fixed-term part-time

0.06

9.52

90.48

North America

6.72

68.97

31.03

Casual

0.01

66.67

33.33

South America

21.03

82.68

17.32

100.00

76.79

23.21

Total

100

76.79

23.21

BHP Sustainability Report 201991

Appendix continued

Employee by category and diversity(7)Total %

Gender %Average Average total
basic salary remuneration
US$US$

Age group %FemaleMale

Under 30

30 – 39

40 – 49

Over 50

Ratio maleto female

Ratio maleto female

Senior leaders(org levels A to D)

0.90

23.71

76.29

0.34

11.00

51.89

36.77

1.07

1.10

Managers (Level E)

3.25

28.45

71.55

1.24

31.21

45.00

22.55

1.06

1.09

Supervisory andprofessionals (F and G)

39.46

29.70

70.30

11.98

40.62

29.91

17.49

1.13

1.17

Operators andgeneral support

56.39

18.36

81.64

15.38

30.67

29.08

24.87

1.33

1.37

100

23.21

76.79

13.44

34.44

30.13

21.99

1.13

1.17

Total

Employee new hires and turnover
Total

Employee new hires

Employee turnover

GenderAge group

RegionMale

FemaleUnder
30

30 – 39

40 – 49

Over 50

5,500

3,372

2,128

1,850

1,992

1,158

500

524

4,072

7

62

835

17.00%

13.58%

28.35%

42.55%

17.88%

11.87%

7.03%

30.06%

18.88%

11.86%

2.85%

12.26%

Asia Australia

North
South
Europe America America

3,523

2,571

952

656

1,177

872

818

208

1,855

10

1,045

405

10.89%

10.36%

12.68%

15.09%

10.56%

8.95%

11.50%

11.93%

8.60%

16.95%

48.05%

5.97%

Remuneration
Average basic
Average totalsalary US$ remuneration US$

Total
remuneration

Salary increase

Ratio standard entry level wage
to local minimum wage

Ratio maleto female

Ratio maleto female

Ratio highest
paid individual
to medianRatio highest
paid individual
to medianFemale

Male

Asia

1.84

2.01

97 : 1

0:1

3.81

3.71

Australia

1.11

1.15

59 : 1

0:1

1.83

2.14

Remuneration(8)Europe

1.27

1.21

7:1

2:1

–

–

North America

1.26

1.33

10 : 1

2:1

3.26

8.26

South America

0.90

1.00

119 : 1

0:1

4.46

5.31

Total

1.13

1.17

(1) Proportional data in our People section are based on the average of the number of employees at the last day of each calendar month for a 10-month period which calculates
an average for the year with the exception of the average number (and %) of employees in data table by region which shows the weighted average number of employees basedon BHP ownership. There is no significant seasonal variation in employment numbers.
(2) Data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations.
(3) Data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
(4) Absenteeism comprises sick leave, hospitalisation leave, injury on duty, short-term disability, unauthorised absence, industrial action, union absence, unpaid absence andworkers’ compensation. Additionally, in FY2019, 1,609 employees made use of parental leave, of which 38.39 per cent were women and 61.61 per cent were men. Data on return
to work is not reported due to methodology limitations and will be addressed in future reports.
(5) For UK law purposes, we are required to show information for ‘senior managers’, which are defined to include both senior leaders and any persons who are directors of any
subsidiary company, even if they are not senior leaders. In FY2019, 282 senior leaders comprised the top people in the organisation. There were 15 Directors of subsidiarycompanies who are not senior leaders, comprising 11 men and 4 women. Therefore, for UK law purposes, the total number of senior managers was 227 men and 70 women(24 per cent women) in FY2019. In FY2019, 90 per cent of our people worked in their country of nationality, including 63 per cent of our senior leaders. Senior leaders aredefined as organisational levels A–D. A number of our assets have practices to hire people from the local community.
(6) Contractor data is collected from internal surveys and 1 SAP from July 2018 to April 2019 and averaged for a 10-month period.
(7) As at 29 May 2019 the Boards of our significant subsidiary companies have 45 Directors comprising 22 per cent women, 13 nationalities, and 47 per cent are aged between
40 and 49 years.
(8) Remuneration:
Contractors are excluded from the Report.
The highest paid individual in each significant region has been excluded from the median determination.
The highest paid individuals in each region with the exception of Europe and North America, did not receive a salary increase in FY2019.
Salary increases do not include promotional increases.
Individuals classified as entry level are those in an Operator and General Support role, and have been with the organisation for less than one year.
Europe does not have any employees in Operators and General Support roles who have been with the organisation for less than one year in FY2019.
Minimum wage is determined for all locations except for Singapore and Switzerland, as they do not have a Minimum wage mandated by the government.

BHP Sustainability Report 201992

EY Assurance statement

Independent Limited Assurance Report to the Management and Directors of
BHP Group Limited and BHP Group Plc (BHP)
Our Conclusions► Limited Assurance
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that suggest that BHP’s
Sustainability Report including Asset Level Water Stewardship disclosures for the year ended 30 June 2019 (the Report) have not been preparedin accordance with the Criteria defined below.
► Reasonable Assurance
In our opinion, the Scope 1 and 2 greenhouse gas emissions, as reported in BHP’s Sustainability Report are prepared, in all material respects, inaccordance with the Criteria defined below.
► Checking the Report to understand how BHP’s identified material
risks and opportunities are reflected within the qualitative disclosures► Evaluating whether the information disclosed in the Report isconsistent with our understanding of sustainability management andperformance at BHP► Evaluating the suitability and application of the Criteria and that theCriteria have been applied appropriately to the Subject Matter► Conducting physical site visits at select BHP locations to evidencesite level data collection and reporting to Group as well as to identify
completeness of reported water and emission sources► Undertaking analytical procedures of the quantitative disclosures in
the Report► Reviewing data, information or explanation about the sustainability
performance data and statements included in the Report► On a judgemental sample basis, reperforming calculations to checkaccuracy of claims in the Report► On a sample basis, based on our professional judgement, agreeing
claims to source information to check accuracy and completeness ofclaims, which included invoices, incident reports, meter calibration
records, and meter data
► For our reasonable assurance scope, selecting key item andrepresentative sampling, based on statistical audit sampling tables
and agreeing claims to source information to check accuracy andcompleteness of claims, which included invoices, meter calibration
records and meter data.
We believe that the evidence obtained is sufficient and appropriate toprovide a basis for our reasonable and limited assurance conclusions.
Other Matters
We have not performed assurance procedures in respect of any
information relating to prior reporting periods, including those presented in
the Report. Our report does not extend to any disclosures or assertions
made by BHP relating to case studies and future performance plans
and/or strategies disclosed in the Report.
While we considered the effectiveness of management’s internal controls
when determining the nature and extent of our procedures, our assurance
engagement was not designed to provide assurance on internal controls.
Our procedures did not include testing controls or performing procedures
relating to checking aggregation or calculation of data within IT systems.

What our assurance covered
Ernst & Young (EY) was engaged by BHP to provide limited assurance
over the following information in accordance with the noted criteria:
What we assured
What we assured it against (Criteria)► International Council on Mining andMetals (ICMM) Sustainable
Development Framework Subject
Matters 1 to 4
BHP’s FY19 Sustainability
Report► Management’s own publicly disclosed
criteria► Global Reporting Initiative (GRI)
Standards
BHP’s Sustainability
ICMM Sustainable Development
policies and otherPrinciples and mandatory position
disclosuresstatements (Subject Matter 1)
BHP’s identification andreporting of its material
ICMM Subject Matter 2risks and opportunities
BHP’s implementation ofsystems and approaches
ICMM Subject Matter 3
to manage its material
risks and opportunities
Water stewardshipreporting in BHP’s FY19
ICMM Standard: A Practical Guide to
Sustainability Report, at
Consistent Water Reporting
an asset level
In addition, we were engaged by BHP to provide reasonable assurance
over the following information in accordance with the noted criteria:
What we assured
What we assured it against (Criteria)► World Resource Institute/World
Scope 1 and 2
Business Council for Sustainable
Greenhouse Gas
Development (WRI/WBCSD)
emissionsGreenhouse Gas Protocol► BHP’s Basis of Preparation
Key responsibilities
EY’s responsibility and independence
Our responsibility was to express limited and reasonable assurance
conclusions on the noted subject matter as defined in the ‘what we
assured’ column in the tables above (Subject Matter).
We were also responsible for maintaining our independence and confirm
that we have met the requirements of the APES 110 Code of Ethics forProfessional Accountants including independence, and have the requiredcompetencies and experience to conduct this assurance engagement.

Limited and Reasonable Assurance
Procedures performed in a limited assurance engagement vary in natureand timing from, and are less in extent than for, a reasonable assurance
engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance thatwould have been obtained had a reasonable assurance engagement
been performed.
While our procedures performed for our reasonable assurance
engagement are of a higher level of assurance, due to the use ofsampling techniques, it is not a guarantee that it will always detectmaterial misstatements.

BHP’s responsibility
BHP’s management was responsible for selecting the Criteria, andpreparing and fairly presenting information presented in the Report inaccordance with that Criteria. This responsibility includes establishing andmaintaining internal controls, adequate records and making estimates thatare reasonable in the circumstances.

Use of our Assurance Statement
We disclaim any assumption of responsibility for any reliance on thisassurance report to any persons other than management and the
Directors of BHP, or for any purpose other than that for which it was
prepared.
Our review included web-based information that was available via web
links as of the date of this statement. We provide no assurance overchanges to the content of this web-based information after the date of thisassurance statement.

Our approach to conducting the review
We conducted our procedures in accordance with the International
Federation of Accountants' International Standard for Assurance
Engagements Other Than Audits or Reviews of Historical Financial
Information (ISAE 3000), the Standard for Assurance on Greenhouse Gas
Statements (ISAE 3410) and the terms of reference for this engagement
as agreed with BHP on 4 September 2018.
The procedures we performed were based on our professional judgement
and included, but were not limited to, the following:► Interviewing select corporate and site personnel to understand thereporting process at group, business, asset and site level, including
management’s processes to identify BHP’s material issues► Reviewing BHP policies and management standards to determinealignment with the ICMM’s 10 SD principles and position statements

Ernst & Young
Melbourne, Australia
3 September 2019

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

BHP Sustainability Report 201993

Mathew Nelson
Partner

BHP locations (includes non-operated operations)

31

27
16

25

26

29
28
30

17

13

6

22

23

5
4

2
1
19

12

33
32
18 14

15

11

9
8
7
24

BHP Sustainability Report 2019

94

10

20
3

21 13
17

BHP locations (includes non-operated operations) continued

Minerals Australia
Ref

Country

Asset

Description

1

Australia

Olympic Dam

Underground copper mine, also producing uranium, gold and silver

Ownership
100%

2

Australia

Western Australia Iron Ore

Integrated iron ore mines, rail and port operations in the Pilbara regionof Western Australia

65 – 85%3

Australia

New South Wales Energy Coal

Open-cut energy coal mine and coal preparation plant in New South Wales

100%

4

Australia

BHP Mitsubishi Alliance

Open-cut and underground metallurgical coal mines in the Queensland
Bowen Basin and Hay Point Coal Terminal

50%

5Australia

BHP Mitsui Coal

Two open-cut metallurgical coal mines in the Bowen Basin, Central Queensland

80%

6Australia

Nickel West

Integrated sulphide mining, concentrating, smelting and refining operationin Western Australia

100%

Minerals Americas
Ref

Country

Asset

Description

7

Chile

Escondida

Open-cut copper mine located in northern Chile

Ownership
57.5%

8

Chile

Pampa Norte

Consists of the Cerro Colorado and Spence open-cut mines, producing
copper cathode in northern Chile

100%

9

Peru

Antamina (1)Open-cut copper and zinc mine in northern Peru

33.75%

10

BrazilSamarco (1)Open-cut iron ore mines, concentrators, pipelines, pelletising facilities
and dedicated port

50%

11

Colombia

Cerrejón (1)Open-cut energy coal mine with integrated rail and port operations

33.3%

12

CanadaJansenOur interest in potash is via development projects in the Canadian provinceof Saskatchewan, where the Jansen Project is our most advanced

100%

Petroleum
Ref

Country

Asset

Description

Ownership

13

Australia

Australia Production Unit

Offshore oil fields and gas processing facilities in Western Australia
and Victoria

39.99 – 90%

14

US

Gulf of Mexico Production Unit

Offshore oil and gas fields in the Gulf of Mexico

15

Trinidad and Tobago

Trinidad and Tobago Production Unit

Offshore oil and gas fields

16

Algeria

Algeria Joint Interest Unit

Onshore oil and gas unit

17

Australia

Australia Joint Interest Unit (1)Offshore oil and gas fields in Bass Strait and North West Shelf

12.5 – 50%

18

US

Gulf of Mexico Joint Interest Unit (1)Offshore oil and gas fields in the Gulf of Mexico

23.9 – 44%(1)

BHP principal office locations
Ref

Country

Location

Office19

Australia

Adelaide

Minerals Australia office20

Australia

Brisbane

Minerals Australia office21

Australia

Melbourne

Global headquarters

22

Australia

PerthMinerals Australia office23

CanadaSaskatoon

Minerals Americas office

24

Chile

Santiago

Minerals Americas office

25

China

ShanghaiCorporate office

26

India

New Delhi

Corporate office

27

Japan

Tokyo

Corporate office

28

Malaysia

Kuala Lumpur

Global Asset Services Centre

29

Philippines

ManilaGlobal Asset Services Centre

30

Singapore

SingaporeMarketing and corporate office31

UK

LondonCorporate office32

US

HoustonPetroleum office33

USWashington DC

Corporate office

CopperIron Ore

Coal

NickelPetroleum

Potash(1) Non-operated joint venture.
BHP Sustainability Report 201995

35 – 44%45%
29.3%

Corporate directory

BHP Registered Offices

BHP Corporate Centres

Commercial Office

BHP Group Limited
Australia
171 Collins Street
Melbourne VIC 3000
Telephone Australia 1300 55 47 57
Telephone International +61 3 9609 3333
Facsimile +61 3 9609 3015

Chile
Cerro El Plomo 6000
Piso 18
Las Condes 7560623
Santiago
Telephone +56 2 2579 5000
Facsimile +56 2 2207 6517

Singapore
10 Marina Boulevard, #07-01
Marina Bay Financial Centre, Tower 2
Singapore 018983
Telephone +65 6421 6000
Facsimile +65 6421 6800

BHP Group Plc
United Kingdom
Nova South, 160 Victoria Street
London SW1E 5LB
Telephone +44 20 7802 4000
Facsimile +44 20 7802 4111

United States
Our agent for service in the United States
is Jennifer Lopez-Burkland at:
1500 Post Oak Boulevard, Suite 150
Houston, TX 77056-3020
Telephone +1 713 961 8500
Facsimile +1 713 961 8400

Group General Counsel
and Company Secretary
Caroline Cox

Share Registrars and Transfer Offices
Australia
BHP Group Limited Registrar
Computershare Investor Services
Pty Limited
Yarra Falls, 452 Johnston Street
Abbotsford VIC 3067
Postal address – GPO Box 2975
Melbourne VIC 3001
Telephone 1300 656 780 (within Australia)+61 3 9415 4020 (outside Australia)
Facsimile +61 3 9473 2460
Email enquiries: investorcentre.com/bhp
United Kingdom
BHP Group Plc Registrar
Computershare Investor Services PLC
The Pavilions, Bridgwater Road
Bristol BS13 8AE
Postal address (for general enquiries)
The Pavilions, Bridgwater Road
Bristol BS99 6ZZ
Telephone +44 344 472 7001
Facsimile +44 370 703 6101
Email enquiries:
investorcentre.co.uk/contactus

South Africa
BHP Group Plc Branch Register
and Transfer SecretaryComputershare Investor Services(Pty) Limited
Rosebank Towers
15 Biermann Avenue
Rosebank
2196, South Africa
Postal address – PO Box 61051
Marshalltown 2107
Telephone +27 11 373 0033
Facsimile +27 11 688 5217
Email enquiries:
web.queries@computershare.co.za
Holders of shares dematerialised into Strateshould contact their CSDP or stockbroker.
New ZealandComputershare Investor Services Limited
Level 2/159 Hurstmere Road
Takapuna Auckland 0622
Postal address – Private Bag 92119
Auckland 1142
Telephone +64 9 488 8777
Facsimile +64 9 488 8787

United States
Computershare Trust Company, N.A.
250 Royall Street
Canton, MA 02021
Postal address – PO Box 43078
Providence, RI 02940-3078
Telephone +1 888 404 6340
(toll-free within US)
Facsimile +1 312 601 4331
ADR Depositary, Transfer Agent and Registrar
Citibank Shareholder Services
PO Box 43077
Providence, RI 02940-3077
Telephone +1 781 575 4555 (outside of US)+1 877 248 4237 (+1-877-CITIADR)(toll-free within US)
Facsimile +1 201 324 3284
Email enquiries:
citibank@shareholders-online.com
Website: citi.com/dr

How to access information on BHP
BHP produces a range of publications, which are available
online at bhp.com. If you are a shareholder, you can also electto receive a paper copy of the Annual Report through one of
the Share Registrars listed above.

Subscribe to receive news alerts
sent directly to your email address

Read our reports at
bhp.com

linkedin.com/company  /bhp
youtube.com/bhp
twitter.com/bhp

Front cover image: Xanthorrhoea, grass tree up close. Melbourne, Victoria, Australia. Photo: Getty Images.

BHP Sustainability Report 201996

Annual Report
2019

Economic
Contribution
Report 2019

Corporate directory continued

bhp.com
BHP Sustainability Report 201997