Bhp Group Ltd · ASX:BHP
Bhp — ESG Presentation (June 2022)
26 slides from Bhp's sustainability presentation, Jun 28, 2022
Slide 1: Social value in action
Social value in action Presentation & speech 28 June 2022
Slide 2: Disclaimer
BHP Social value in action 28 June 2022 Banjima Country Yandi Disclaimer Forward-looking statements Presentation of data No offer of securities Reliance on third party information BHP and its subsidiaries Social value briefing BHP 28 June 2022 2
Slide 3: Acknowledgement of Country
BHP INVESTOR Caroline Cox, Chief Legal, Governance and External Affairs Officer I start by acknowledging the traditional custodians of the land I’m on today, the Wurundjeri people of the Kulin Nation, and acknowledge that across the world, our operations are on or near the custodial lands of First N
Slide 4: Progress on social value and three key developments
BHP INVESTOR Three years ago, we introduced to the market the initial details of our commitment to social value. Today I’ll update you on our progress in embedding that commitment into our thinking, planning and performance; and share with you important new initiatives that further sharpen our focus
Slide 5: Social value starts with our Purpose
BHP INVESTOR Purpose Social value starts with our Purpose: to bring people and resources together to build a better world. The commodities we produce are essential to everyday life. From infrastructure that connects us globally, to providing the fundamental ingredients for renewable energy and decar
Slide 6: What social value is
BHP INVESTOR Social value Social value is: BHP’s positive contribution to society – to our people, partners, the economy, the environment, local communities and shareholders. All anchored in enduring, mutually beneficial and trusting relationships. This commitment is being built into our strateg
Slide 7: Competitive advantage from embedding social value
BHP INVESTOR Some of you will have seen this slide in our previous social value briefing. On the right, you will see the outcomes – the competitive advantage – that comes from embedding social value. In short, it comes down to access. I’ll give you a couple of recent examples: First, on access to
Slide 8: Our commitment to sustainability is not new
BHP INVESTOR Our commitment to sustainability is not new. It is one of our Charter values. This slide reflects the steps we have taken over a number of years. Take climate – in 1998, we were one of the first large companies to publish our operational greenhouse gas emissions performance; and a year
Slide 9: Tangible outcomes delivered
BHP INVESTOR And we have delivered tangible outcomes. On safety, we have been fatality free for over three years. On environment, our freshwater withdrawals have reduced by nearly 30% since FY17, approximately double our target. On decarbonisation, our operational greenhouse gas emissions have dropp
Slide 10: New social value framework with six pillars
BHP INVESTOR With this strong foundation, I saw how social value resonated with employees and broader stakeholders when I came into my role. I also saw the opportunity to take this to the next level. We can have more impact, and move faster with greater discipline and consolidation of our efforts, f
Slide 11: Launching our social value scorecard
BHP INVESTOR Building on this framework, I am delighted to launch our new social value scorecard. This is a first for us. It provides clarity to our teams on our ambitions and importantly, allows us to measure progress, transparently report, and hold ourselves to account. At its core, this scorecard
Slide 12: Scorecard goals and metrics
BHP INVESTOR The scorecard has three components. On the top line here, you see the new 2030 goals. Each contributes to relevant UN Sustainable Development Goals. Decarbonisation will be familiar to you from the CTAP we released last year and encompasses our existing targets and goals. The rest, howe
Slide 13: Healthy environment: 2030 nature positive goal
BHP INVESTOR Anne Dekker, Vice President Environment Thanks Caroline, it is great to be here today. BHP has an aspiration to become a nature positive company. There are a number of actions we would take to underpin this. Today, I’m excited to announce one of the most significant actions we will take
Slide 14: Healthy environment: natural capital accounts
BHP INVESTOR Healthy environment (continued) We see that effectively managing this land and understanding the impacts of our efforts will only be possible through the creation and management of natural capital accounts – you will see this featured in our metrics and milestones. Natural capital accou
Slide 15: Indigenous partnerships
BHP INVESTOR As I said at the outset, our operations around the globe are located on or near the custodial lands of Indigenous Peoples. We recognise and welcome the special responsibility that creates. Our aim is to be a partner of choice for Indigenous Peoples; respecting rights, listening and crea
Slide 16: Video with the Tjiwarl community
BHP INVESTOR I want to share now a short video we have put together with the Tjiwarl community in Western Australia that talks about where we have been in the past, and how our approach is evolving in line with our 2030 goal. Click here to watch video 15
Slide 17: Embedding social value top down and bottom up
BHP INVESTOR We’ve spent some time today sharing our new framework and social value scorecard. These have been designed to focus our efforts on the things that will drive the most social value and business value. We know though that a framework only goes so far – the real test is embedding it in str
Slide 18: NSW Energy Coal strategic decision
BHP INVESTOR An example of social value considerations in our strategic decision-making is our recent announcement in relation to New South Wales Energy Coal. In setting up the bid process, and deciding whether we had viable offers, we took into account financial drivers and the sustainability and r
Slide 19: Social value in asset plans at Spence
BHP INVESTOR Turning to operational planning. We’ll now hear a short video from our General Manager of Integrated Operations at Spence in Chile on how social value is incorporated into asset plans. Click here to watch video 18
Slide 20: Social value in capital allocation
BHP INVESTOR That takes us to the important topic of capital allocation. I’m going to hand over to Graham Oborn to discuss this. Graham leads our capital evaluation and decision-making process. Over to you Graham. Graham Oborn, Head of Decision Evaluation Thank you Caroline. Social value is a core p
Slide 21: Social value pillars in capital decisions
BHP INVESTOR This slide outlines examples of social value pillars embedded and evaluated in our capital decisions. Social value initiatives are generally not stand-alone, such as a decarbonisation project. More often, our projects generate mutual value across multiple social value pillars. The examp
Slide 22: Tools for evaluating social value in capital decisions
BHP INVESTOR We continue to integrate how we evaluate social value in every capital allocation decision. We currently have under pilot, a suite of tools to build our practices and capability in this space. These tools provide a holistic approach to evaluating financial and non-financial consideratio
Slide 23: Embedding social value through culture
BHP INVESTOR Caroline Cox, Chief Legal, Governance and External Affairs Officer Thank you Graham. We’ve talked about our social value goals and how we are embedding these in corporate strategy, operational plans and capital allocation. I now want to talk about how we’re embedding social value bottom
Slide 24: Yandi team closure idea video
BHP INVESTOR An example of this in action is an idea generated by two members of our Yandi team. They came up with an idea on how to progress closure in a way that not only improves the approach to rehabilitation, but also our critical relationships with local Traditional Owners. Click here to watch
Slide 25: Summary and conclusion
BHP INVESTOR As I hope I have given you some insight into today, it is through getting the big and little things right, in a disciplined, consistent and deeply embedded way that we will continue to build BHP’s social value advantage as a core component of our continued delivery of value creation. To
Slide 26: BHP INVESTOR
BHP INVESTOR 25