Slide 1: Sustainability Briefing
Sustainability Briefing Tuesday 4 December 2007 Sir John Grant President BHP Billiton Europe Ian Wood Vice President Community Relations Ed Mongan Global Practice Leader Climate Change
Slide 2: Company Overview and HSEC Performance Summary
Company Overview and HSEC Performance Summary Ian Wood Vice President Community Relations
Slide 3: Important notices
Important notices Reliance on third party information The views expressed here contain information that have been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the informatio
Slide 4: Structure driven by customer needs
Structure driven by customer needs Petroleum Aluminium Base Metals Diamonds & Spec Prod Energy Coal Stainless Steel Materials Metallurgical Coal Manganese Iron Ore Slide 4
Slide 5: Deep inventory of projects and options
Deep inventory of projects and options As at 22 August 2007 Proposed capital expenditure WA WA Iron Iron Ore Ore Saraji NWS Saraji NWS <$500M <$500M $501M-$2Bn $2Bn+ Quantum $501M-$2Bn $2Bn+ Quantum 11 WFG Shenzi WFG Nth Angola Angola Canadian Canadian DRC CMSA && DRC CMSA Heap Heap Maruwai Potash P
Slide 6: Future focus
Future focus Core strategy is unchanged: – People Growth Options – Maintain and enhance “Licence to Operate” Project Pipeline – Run current assets at Financial Strength full potential and Discipline The BHP Billiton Way – Accelerate development (Value Added Processes) projects World Class Assets – C
Slide 7: Creating value at a local level – our communities
Creating value at a local level – our communities • Sustainable development at every level is fundamental to our success – our licence to operate depends on the responsible operation of all aspects of our business: – A strong track record of being valued by our communities will contribute to us bein
Slide 8: HSEC Governance - our HSEC systems and documents
HSEC Governance - our HSEC systems and documents Our HSEC management Documents and systems each must system is hierarchical meet and support requirements of those of higher levels Company wide systems Business wide systems Slide 8
Slide 9: Sustainability Report structure
Sustainability Report structure Full Report Summary Report http://www.bhpbilliton.com/bb/sustainableDevelopment.jsp 24 page printed Report Slide 9
Slide 10: Performance overview – Health and Safety
Performance overview – Health and Safety • Sadly failed to meet our target of zero harm and in particular zero fatalities with eight of our fellow employees or contractors losing their lives during the year • Strong progress has, however, been made in our TRIFR • Implementation of our Fatal Risk Con
Slide 11: Performance overview - Community
Performance overview - Community • All reports and community relations plans in place • Community programs expenditure totalled US$103.4 million, equivalent to 1.1% of pre-tax profit • New community investment guidelines • Continued focus on Human Rights Slide 11
Slide 12: Performance overview – Business Conduct
Performance overview – Business Conduct • 90 business conduct enquiries • Data suggests utilisation of helplines could be improved • Project developed to revise Guide to Business Conduct and further promote awareness and utilisation of helplines Slide 12
Slide 13: Performance overview - Environment
Performance overview - Environment • Water management plans now in place at all sites with significant water use • General waste impacted by construction activity, however, strong progress made in hazardous waste – 50% reduction from base year • New Biodiversity Standard developed for implementation
Slide 14: BHP Billiton's Approach to Climate Change
BHP Billiton’s Approach to Climate Change Addressing Risks and Seeking Opportunities Ed Mongan Global Practice Leader, Climate Change and Energy
Slide 15: Climate Change is a priority issue for BHP Billiton
Climate Change is a priority issue for BHP Billiton • Energy and greenhouse gas intensive operations – 52 million tonnes CO2 equivalent emissions globally in 2007 • Greenhouse gas intensive products – Energy coal – Metallurgical coal • Substantial growth expected across most customer sector groups –
Slide 16: BHP Billiton actions and targets met - 1995 to 2007
BHP Billiton actions and targets met - 1995 to 2007 • All sites with emissions greater than 100,000 tonnes per year of carbon dioxide equivalent are required to have and maintain greenhouse gas management and energy conservation programs • Aggregate Group targets: – 10% reduction in greenhouse gas e
Slide 17: New Climate Change Policy – June 2007
New Climate Change Policy – June 2007 What we hope to achieve: • Maintain licence to operate and grow the business • Enhance reputation with government, communities and employees • Demonstrate to investors that the issue is well managed In this work we have aimed to position the company to both miti
Slide 18: Preamble to policy
Preamble to policy • BHP Billiton believes that the risks of climate change associated with increasing greenhouse gas concentrations in the atmosphere must be addressed through accelerated action to stabilise concentrations at acceptable levels • To achieve this in a manner consistent with meeting n
Slide 19: 1. Improving our understanding of life-cycle emissions
1. Improving our understanding of life-cycle emissions Policy Element: Improve our understanding of greenhouse emissions from our production and customers’ consumption of our products Key Actions: • Apply benchmark standards to improve data quality – working with ICMM, WRI • Determine the greenhouse
Slide 20: 2. Collaboration to reduce emissions and influence policy
2. Collaboration to reduce emissions and influence policy Policy Element: Support research, development and demonstration of low emission technologies with relevance/interest to our businesses, customers and employees Key Actions: Commit to invest US$300 million over 5 years in • reducing emissions
Slide 21: 3. Policy development / influence
3. Policy development / influence Policy Element: Work with governments and other stakeholders on the design of effective climate change policies consistent with stabilisation of greenhouse gas concentrations Key Actions: Actively engage with key governments to ensure our interests are effectively r
Slide 22: Energy Excellence - business case
Energy Excellence - business case • BHP Billiton Energy Excellence has been established to: – Contribute to Zero Harm – In FY07 80% of BHP Billiton’s greenhouse gas emissions were generated by energy consumption – Create and protect value – FY06 global annual energy costs US $2.3 billion or 24% of o
Slide 23: 4. Managing our emissions from production
4. Managing our emissions from production Policy Element: Build on leading practice, improve energy and greenhouse gas management at our sites, build emissions abatement and energy saving considerations into our decision-making processes Key Actions: • Group energy and greenhouse emissions intensity
Slide 24: Energy Excellence Approach - Energy Excellence Hierarchy
Energy Excellence Approach - Energy Excellence Hierarchy Eliminate Excellence Reduce Efficiency Recovery Substitute Less Greenhouse intensive Mitigate Offset Sequestration C Trading Slide 24
Slide 25: Examples of success
Examples of success • EKATI Energy Smart Program • West Vamp – Vocsidizer Technology – Consumes low concentration methane emissions from ventilated air in underground coal mines – Abates 220,000 tonnes of carbon dioxide equivalent annually – Produces 5 to 6 MW of electricity Slide 25
Slide 26: New developments
New developments • Partnership with Pacific Power to develop 100 MW wind farm in Chile – supply Escondida mine with zero carbon electricity • $20 million study of new aluminium smelter in DRC utilising 2000 MW of hydropower • Evaluating potential for wind farm at Ekati diamond mine in northern Canad
Slide 27: BHP Billiton - Emissions Trading Strategy
BHP Billiton - Emissions Trading Strategy Source sufficient emissions credits to offset the forecasted shortage of Emissions Allowances of BHP Billiton assets – Liverpool Bay, UK Develop new products and service offerings to transact with existing and new key customers and to cement strategic relati
Slide 28: Concluding Remarks
Concluding Remarks
Slide 29: Conclusion
Conclusion • Good progress against 2002-2007 targets • However, challenges remain, particularly in safety • New targets set to focus efforts on key risks and opportunities for improvement • Key focus areas for FY08 include: – Implementation of Climate Change Policy – Increased efforts to ensure cons
Slide 30: Ohpoilliton
6de Ohpoilliton