Bhp Group Ltd · ASX:BHP
Bhp — ESG Presentation (October 2022)
33 slides from Bhp's sustainability presentation, Oct 6, 2022
Slide 1: ESG roundtable
ESG roundtable 6 October 2022
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements, which may include statements regarding: our strategy, our values and how we define success; our expectations of a competitive advantage for our business or certain products; our commitment to generating soci
Slide 3: Introduction
Introduction Geof Stapledon Group ESG Officer
Slide 4: Social value framework
Social value framework Sets clear direction Planet People Prosperity Decarbonisation Healthy Indigenous Safe, inclusive Thriving, Responsible environment partnerships and future ready empowered supply chains workforce communities Supporting ethical, Contributing to Delivering Building relationships
Slide 5: Agenda
Agenda Introduction Geof Stapledon Climate Change Fiona Wild Q&A: Climate Change Fiona Wild, Rod Dukino, Adam Lancey, Ashley Preston, Tristan Stanley, Graham Winkelman Environment Anne Dekker Sexual harassment prevention Maria Joyce Q&A: Environment and Anne Dekker, Tim Cooper, Jed Youngs, Maria Joy
Slide 6: Climate change
Climate change Fiona Wild Group Climate and Sustainability Officer
Slide 7: We have progressed our Climate Transition Action Plan (CTAP) targets, goals and commitments
We have progressed our Climate Transition Action Plan (CTAP) targets, goals and commitments Operational greenhouse gas (GHG) emissions targets and goals for the short-, medium- and long-term Value chain GHG emissions targets and goals for the medium- and long-term Assessing capital alignment with a
Slide 8: Operational (Scopes 1 and 2) GHG emissions
Operational (Scopes 1 and 2) GHG emissions Short-term target1 – achieved Plans reflect up to ~US$600 Expected spend of - To maintain operational GHG emissions at or below million capital allocation per year ~US$4 billion by FY2017 levels by FY2022, while we continue to grow our for the next five yea
Slide 9: Value chain (Scope 3) GHG emissions
Value chain (Scope 3) GHG emissions Medium-term (2030) goals1 – on track Began feasibility studies into Carbon Capture, - To support industry to develop technologies and Utilisation and Storage, Direct Reduced Iron pathways capable of 30 per cent emissions intensity technologies and the use of hydro
Slide 10: Supporting steelmaking GHG emission reductions
Supporting steelmaking GHG emission reductions Downstream steelmaking Optimisation Transition Green end state - Contributed to over 80% of Potential intensity Up to 20% CO2 50-60% CO2 90% CO2 GHG emissions in BHP’s total reduction reduction vs. BAU* reduction vs. BAU* reduction vs. BAU* reported Sco
Slide 11: Capital alignment and transition to a low-carbon economy
Capital alignment and transition to a low-carbon economy Transition scenarios and BHP’s positioning and products Green revenue carbon pricing - Our operations have some of the - Our current approach reports - All investment decisions now lowest production emissions ‘green revenue’ based on end requi
Slide 12: Adapting to the potential physical impacts of changing climate
Adapting to the potential physical impacts of changing climate Our risk-based approach to adaptation - There are specific, real and increasing climate-related risks that could have a physical and financial impact to the communities and countries we operate in, to BHP, and to our value chain. - Since
Slide 13: Our position on a just transition
Our position on a just transition Our approach to equitable change and transitions - In FY2022 we defined and published our approach to Equitable Change and Transitions. - We recognise that changes in our business can have significant effects on the communities where we operate. - These same communi
Slide 14: Strengthening our policy engagement
Strengthening our policy engagement Supported industry coalitions including the: - Australia Industry In the March 2022 Energy Transition assessment, BHP was Initiative Almost 85% assessed as one of the - Global Low-Carbon approval vote of leading 'Diversified Metallurgy Innovation Planned publicati
Slide 15: Shareholder requisitioned resolutions
Shareholder requisitioned resolutions Three resolutions from a group of shareholders representing 0.008% of shares on issue The first resolution seeks to amend the constitution of BHP. The second and third resolutions are advisory resolutions and are conditional on the constitutional amendment being
Slide 16: Shareholder resolution Item 14: Policy advocacy
Shareholder resolution Item 14: Policy advocacy Board recommends shareholders vote against the resolution. - BHP has publicly stated our belief that the world must pursue the aims of the Paris Agreement. - We already advocate for good climate policy where it aligns with our published Global Climate
Slide 17: Shareholder resolution Item 15: Climate accounting and audit
Shareholder resolution Item 15: Climate accounting and audit Board recommends shareholders vote against the resolution. - We recognise the importance of shareholders being able to understand the potential impacts on the Group’s financial position from the risks and opportunities for their company ar
Slide 18: Environment
Environment Anne Dekker Vice President Environment
Slide 19: Our journey of contributing to a resilient environment
Our journey of contributing to a resilient environment As a company, we have been specifically addressing water, biodiversity and land management for many years Pre-2000s Focus on regulatory compliance, implementation of operated asset-level HSE management standards and systems Commitment to: 2008 ‒
Slide 20: Refreshed Water Stewardship strategy
Refreshed Water Stewardship strategy Our vision and priorities are unchanged Vision BHP’s vision is for a ‘water secure’ world by 2030. Commitment within Set public, context-based, business-level targets that will aim to both improve our management of water and our operations support shared approach
Slide 21: Context Based Water Targets
Context Based Water Targets ‘Setting Site Water Targets Informed by Catchment Context: BHP’s Approach’ available at: Shared Water Challenges | BHP ESG roundtable 6 October 2022 21
Slide 22: On the ground action - water
On the ground action - water WAIO: Managed Aquifer Recharge (MAR) Escondida: Salar Punta Negra (SPN) A new MAR bore at South Flank – part of the ongoing expansion of A spring in the SPN – restoration programs will be guided by a WAIO’s MAR network, which returns excess mine water to aquifers steerin
Slide 23: BHP focus areas for action
Focus on nature positive actions Contributing to global goals through a company strategy to understand and value biodiversity Contributing to the global goals for nature Emerging external global goals: by 2030, to halt and reverse biodiversity loss and put nature on the path to recovery BHP focus ar
Slide 24: Healthy environment goal recognises our opportunity and responsibility
Healthy environment goal recognises our opportunity and responsibility, and aligns with global direction
Slide 25: Taking nature positive actions on differing land tenure
Taking nature positive actions on differing land tenure Area under BHP stewardship. Total land and sea owned, leased, or managed at operated assets (excluding greenfield exploration).15 Includes non- operational land uses such as pastoral leases and land set aside for conservation. Focus is to gener
Slide 26: Indicative pathway to nature-positive outcomes
Indicative pathway to nature-positive outcomes Supporting the transition to an equitable, nature-positive and net-zero GHG emissions global economy* Act and Report Commit Measure Valuing Natural Innovation and Nature-related - Develop a narrative Capital Collaboration Disclosures Assess and communic
Slide 27: More information on the BHP website
More information on the BHP website… ESG roundtable 6 October 2022 27
Slide 28: Summary of BHP actions to address sexual harassment
Summary of BHP actions to address sexual harassment Maria Joyce Chief of Staff
Slide 29: Timeline
Timeline We have been July All sexual harassment May July accelerating action concerns classified as Category A breach of Alcohol limits further reduced in all villages in Australia. Roll-out of Active Bystander training to BHP workforce since 2016 code and must be reported by managers Villages in C
Slide 30: Our six priority focus areas to drive action
Our six priority focus areas to drive action Prevent Respond Report Inclusive and diverse teams are safer and more Gender balance Respectful & safe workplace productive, because people Drive progress toward gender balance, including our Evolve our behaviours and practices in our in these teams feel
Slide 31: For more information go to BHP.com/about
For more information go to BHP.com/about
Slide 32: Slide 32
Slide 33: Endnotes
Endnotes 1. Slides 8 & 9: These positions are expressed using terms that are defined below, including the terms ‘target’, ‘goal’, ‘net zero’ and ‘carbon neutral’. The baseline year(s) of our targets will be adjusted for any material acquisitions and divestments, and to reflect progressive refinement