Slide 1: Environmental, Social and Governance briefing
Five Rivers Australia Environmental, Social and Governance briefing Tony Cudmore President - Corporate Affairs Mike Henry President - HSE, Marketing and Technology 25 September 2014 bhpbilliton resourcing the future
Slide 2: Disclaimer
Disclaimer bhpbilliton resourcing the future Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestm
Slide 3: Key themes
Key themes bhpbilliton resourcing the future Sustainability is a BHP Billiton Charter value We believe high-quality governance supports long-term value creation Our portfolio is resilient to a broad range of scenarios We have a clear position on, and approach to, climate change We have a comprehensi
Slide 4: Who we are and what we stand for
Who we are and what we stand for bhpbilliton resourcing the future We are a leading global resources company Our Charter was first introduced in 1999 and remains the single most important means by which we communicate who we are, what we do and what we stand for It is the foundation of everything we
Slide 5: Good governance is good business
Good governance is good business bhpbilliton resourcing the future Good governance is just good business… “We don’t have a governance framework to which the Board and Management are held accountable just because we have an interest in governance or because we need to tick boxes. It’s really simple…
Slide 6: Governance begins with Board skills and experience
Governance begins with Board skills and experience bhpbilliton resourcing the future Amongst other attributes, the Board requires that each Director demonstrates: unquestioned honesty and integrity proven track record of creating value for shareholders time available to undertake the responsibilitie
Slide 7: We have a strong governance framework
We have a strong governance framework bhpbilliton resourcing the future Our key governance documents are publicly available: – Our Charter – Board Governance Document & Committee Terms of Reference – HSEC elements of Group Level Documents1 (GLDs) – Sustainability Report – Supply GLD – Code of Busine
Slide 8: We identify and manage our material sustainability risks
We identify and manage our material sustainability risks bhpbilliton resourcing the future The Sustainability Committee assists the Board in oversight of HSEC matters, including climate change This includes overseeing areas of risk control, compliance with applicable legal and regulatory requirement
Slide 9: Strategic planning informs our priorities
Strategic planning informs our priorities bhpbilliton resourcing the future The Board annually reviews our strategy and priorities Corporate planning is underpinned by detailed scenario analysis The Group-wide multi-year plan is developed with input from the businesses Our high-quality, diversified
Slide 10: Scenarios provide a powerful lens to assess the portfolio
Scenarios provide a powerful lens to assess the portfolio bhpbilliton resourcing the future Internally consistent and multidimensional; sufficiently divergent but plausible Provide a snapshot of how the world might look over coming decades Take into account long-term uncertainties in geopolitics, ma
Slide 11: Our portfolio is resilient
Our portfolio is resilient bhpbilliton resourcing the future Our analysis shows that our portfolio is resilient across all our scenarios This is due to: the diversified nature of our portfolio; the relatively short pay-back periods for many of our fossil fuel investments In a carbon constrained worl
Slide 12: Our record of action on climate change demonstrates our strong commitment
Our record of action on climate change demonstrates our strong commitment bhpbilliton resourcing the future Our actions on climate change Produced public environment report detailing GHG emissions / management strategies 1997 Introduced independent assessment of data in Environmental Report 1998 Set
Slide 13: Our position on climate change is clear
Our position on climate change is clear bhpbilliton resourcing the future We accept the IPCC’s1 assessment that warming of the climate is unequivocal, the human influence is clear and physical impacts are unavoidable We believe that the world must pursue twin objectives: to limit climate change; and
Slide 14: We have an integrated approach to managing climate risk
We have an integrated approach to managing climate risk bhpbilliton resourcing the future We are taking action by reducing our emissions, increasing our climate resilience and working with others to develop effective policy and accelerate deployment of low emissions technologies. Mitigation Our targ
Slide 15: We value the health and safety of our people
We value the health and safety of our people bhpbilliton resourcing the future Managing our health and safety risks Our operations have systems in place to identify and effectively manage health and safety risks We undertake assessments to verify that critical controls are effective in managing each
Slide 16: Keeping our people and operations safe
Keeping our people and operations safe bhpbilliton resourcing the future FY14 safety and health performance No fatalities at our operated assets Total Recordable Injury Frequency (TRIF)1 of 4.2 22% decrease in the number of potential exposures to carcinogens and airborne contaminants compared to our
Slide 17: We seek to minimise the environmental impact of our operations
We seek to minimise the environmental impact of our operations bhpbilliton resourcing the future Managing our environmental risks We aim to minimise our impacts and contribute to enduring benefits to biodiversity, ecosystems and other environmental resources We focus on greenhouse gas emissions and
Slide 18: We seek to minimise the environmental impact of our operations: FY14 performance
We seek to minimise the environmental impact of our operations bhpbilliton resourcing the future FY14 environmental performance No significant environmental incidents GHG emissions reduced by 1.7 million tonnes compared to FY13 and remained below our FY06 baseline Our operations with identified wate
Slide 19: We are committed to our local communities
We are committed to our local communities bhpbilliton resourcing the future We respect and promote human rights We engage regularly and openly with those interested in and impacted by our operations We support partnerships that promote social and economic development and benefit the broader communit
Slide 20: We are investing in a sustainable future
We are investing in a sustainable future bhpbilliton resourcing the future FY14 community performance US$242 million1 invested in community programs Successful performance against target for tenth consecutive year US$9.9 billion gross taxes and royalties2 55% of spend was with local suppliers3 8,700
Slide 21: Our social investment projects have a real impact
Our social investment projects have a real impact bhpbilliton resourcing the future Window of Opportunity 2011–2016 Project focus is on child health, nutrition and development (US$25 million over 5 years) 750,000 mothers and children will benefit throughout the program Bush Blitz II 2014–2017 A natu
Slide 22: Human Rights and Indigenous Relations
Human Rights and Indigenous Relations bhpbilliton resourcing the future Voluntary Commitments Universal Declaration on Human Rights Global Compact ICMM1 position Statement on Indigenous Peoples and Mining Voluntary Principles on Security and Human Rights BHP Billiton Standards Aligned with the UN Gu
Slide 23: Key themes
Key themes bhpbilliton resourcing the future Sustainability is a BHP Billiton Charter value We believe high-quality governance supports long-term value creation Our portfolio is resilient to a broad range of scenarios We have a clear position on, and approach to, climate change We have a comprehensi
Slide 24: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 25: Board governance (ASX and LSE primary listed)
Board governance (ASX and LSE primary listed) bhpbilliton resourcing the future Board Risk & Audit Committee Finance Committee Delegation Accountability Remuneration Committee Sustainability Committee Nomination & Governance Committee Forum on Corporate Responsibility Business Risk & Audit Committee
Slide 26: Our sustainability performance targets
Our sustainability performance targets bhpbilliton resourcing the future In FY13, we introduced new targets for FY14 – 17, focused on our most material HSEC risks Zero fatalities at our operated assets Year-on-year improvement of our TRIF1 Conduct annual reviews for alignment with the Voluntary Prin
Slide 27: Socio-economic contribution
Socio-economic contribution bhpbilliton resourcing the future Economic value for regional economies is generated through revenues, employee compensation and other operating costs, donations and other community investments, retained earnings and payments to capital providers and to governments Econom
Slide 28: Our local partnerships strengthen communities
Our local partnerships strengthen communities bhpbilliton resourcing the future Chilean Museum of Pre-Columbian Art Chile Zamzama Pakistan Upper Guajira Colombia Perth Australia Environmental, Social and Governance briefing, 25 September 2014 Slide 28
Slide 29: Social investment examples: Improving livelihoods and agreement making
Social investment examples: Improving livelihoods and agreement making bhpbilliton resourcing the future ANDA Project, Colombia US$29 million over 5 years Lead partner – Global Communities Addresses the needs of internally displaced persons and vulnerable communities Provides vulnerable rural commun