Bhp Group Ltd · ASX:BHP
Bhp — ESG Presentation (June 2022)
37 slides from Bhp's sustainability presentation, Jun 28, 2022
Slide 1: Social value in action
Social value in action 28 June 2022 Banjima Country Yandi
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: Acknowledgement of Country
Acknowledgement of Country Yuwi Country Queensland
Slide 4: Social value in action: Objectives
Social value in action Objectives Launch our Launch our Outline how social value is social value framework 2030 social value scorecard embedded in everything we do Social value briefing 28 June 2022 4
Slide 5: Bringing people and resources together to build a better world
Bringing people and resources together to build a better world Chile
Slide 6: Social value is BHP's positive contribution to society
Social value is BHP’s positive contribution to society – our people, partners, the economy, the environment, local communities and shareholders It is about creating enduring, mutual benefit Njaki Njaki Country Solar farm, Western Australia
Slide 7: Social value creates competitive advantage
Social value creates competitive advantage Social value protects our business today and positions us to access future opportunities Access to resource Be a partner-of-choice to governments and communities Opens up Obtain and retain rights to operate and expand our asset base opportunities Access
Slide 8: Building on strong foundations
Building on strong foundations Long-term commitment to sustainability and social value Embedding Developing Establishing 2019 Social value briefing 2015 Climate change portfolio analysis published 1996 Set climate emissions targets (first 2019 Committed US$400m to the Climate published performance i
Slide 9: Recent social value highlights
Recent social value highlights Contribution to commitments, goals and targets Operational GHG Local procurement Building stronger Safety Indigenous spend Renova Foundation emissions spend communities US $335 m >US $8 bn ~US $1.6 bn R$2.4 bn Fatality free 20% in Minerals Australia in of spend on su
Slide 10: 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 11: 2030 social value scorecard
2030 social value scorecard Sets ambitions and enables measurement and transparency on progress Ensures focus on what will deliver impact and Safe, inclusive business value Healthy Indigenous and Thriving, Responsible Decarbonisation empowered environment partnerships future ready supply chains comm
Slide 12: Short-term milestones
2030 social value scorecard 9 How we will report from FY23 Planet . People . Prosperity Pillars Healthy Indigenous Safe, inclusive and Thriving, empowered Responsible Decarbonisation environment partnerships future ready workforce communities supply chains At least 30% reduction in operational Creat
Slide 13: Healthy environment
Healthy environment Creating nature positive11 outcomes • At least 30% of the land and water we steward to be under conservation, restoration or regenerative practices 2030 goal • Focus on areas of highest ecosystem value23 • Partner with Indigenous peoples and local communities Healthy environment
Slide 14: Indigenous partnerships
Indigenous partnerships Creating mutual value and long-term, sustainable change 2030 goal • Respectful relationships that deliver long-term mutually beneficial outcomes Indigenous partnerships • Progress on co-created plans15 • Relationship health16 Metrics • Indigenous procurement • Indigenous empl
Slide 15: Native title agreement making
Native title agreement making Partnering with the Tjiwarl people24 in a meaningful and collaborative way • Agreement achieved in 2018 • Agreement went beyond native title to ensure the Tjiwarl people have greater autonomy and decision-making influence • Initiatives in health, education, training, em
Slide 16: Embedding social value top down and bottom up
Embedding social value top down and bottom up Hardwiring social value at every level of our business 1 Strategy • Corporate strategy: Portfolio decisions, goals and targets, risk appetite and action plans • Policies and processes: Capital Allocation Framework 2 • Opportunity pipeline: Opportunities
Slide 17: NSWEC pathway to closure
1 Strategy 2 Plans and processes 3 Culture NSWEC pathway to closure Balancing the interests of all our stakeholders • On 16 June, we announced plans to retain NSWEC and: – seek relevant approvals to continue mining to 203026 – Rehabilitation expected to take 10-15 years following cessation of mining
Slide 18: Operational planning: Spence
1 Strategy 2 Plans and processes 3 Culture Operational planning: Spence Social value embedment has shifted how our operations make decisions • Required to complete a social value assessment as part of asset planning cycle. • Informs the Life of Asset (LoA) plans, 5-year plans and budgets • Ensures o
Slide 19: Embedding social value: capital decisions
1 Strategy 2 Plans and processes 3 Culture Embedding social value: capital decisions Approach to evaluating internal projects and potential growth options Evaluation approach Valuation multiple Base Cash returns NPV value and buy-backs Operating Capital productivity productivity Capital Efficiency R
Slide 20: Embedding social value: capital decisions
1 Strategy 2 Plans and processes 3 Culture Embedding social value: capital decisions Our capability to evaluate and create social value across our capital portfolio continues to mature LNG-fuelled bulk carrier Jansen port Trolley assist vessels Marketing Jansen Escondida Operational Execution Select
Slide 21: Social value capital decision evaluation
1 Strategy 2 Plans and processes 3 Culture Social value capital decision evaluation We are piloting social value decision evaluation tools Understanding Analysing Deciding social value opportunities and impacts all material sources of stakeholder value whether to invest using a consistent and transp
Slide 22: Embedding social value: culture
1 Strategy 2 Plans and processes 3 Culture Embedding social value: culture Equipping our workforce to create social value Attracting, promoting and developing people to meet our Purpose Leadership capability and training BHP Our way of working that improves decision-making, Operating through connect
Slide 23: Yandi land rehabilitation partnership
1 Strategy 2 Plans and processes 3 Culture Yandi land rehabilitation partnership Empowering our people to deliver social value through their ideas and decisions • Innovative land rehabilitation approach developed by Yandi employees • Includes: – A tree nursery of native plants – Establishes work-re
Slide 24: Social value in action: Conclusion
Social value in action Conclusion Social value creates competitive advantage Our social value framework prioritises our efforts Our social value scorecard defines goals and metrics We have embedded social value into strategy, plans and processes Treaty 4 Territory and culture Jansen, Potash Social v
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Slide 26: Appendix
BHP Appendix
Slide 27: Footnotes
Footnotes 1. Slide 9,12: Refer to the BHP Climate Transition Action Plan 2021, available at bhp.com/climate, for the essential context, definitions, assumptions and drivers for BHP's emissions reduction targets and goals. The Scopes 1 & 2 operational emissions target is for FY30. The Scope 3 goals a
Slide 28: Short-term milestones: current performance
9 2030 social value scorecard Current performance Planet . People . Prosperity Pillars Healthy Indigenous Safe, inclusive and Thriving, empowered Responsible Decarbonisation environment partnerships future ready workforce communities supply chains At least 30% reduction in operational Create nature-
Slide 29: Samarco and Renova Foundation
Samarco and Renova Foundation Progress to date Renova Resettlement Samarco • R$21.4 bn spent on reparation and compensation • 131 resettlement cases completed across the • Restart has contributed ~9,000 direct and indirect region, with a further 169 in progress jobs and generated ~R$1.4 bn in taxes
Slide 30: Key decarbonisation programs and partnerships
Key decarbonisation programs and partnerships Category Program/ Partnership Year Details commenced Operational – Renewable Power Various • Escondida and Spence: BHP operations in Chile start to operate with renewable energies. Due to this we are on track for FY2022 and FY2030 targets Electricity • N
Slide 31: Key healthy environment programs and partnerships
Key healthy environment programs and partnerships Category Program/ Partnership Year Details commenced Research, Proteus partnership Since 2003 A voluntary partnership between the UN Environment Program World Conservation Monitoring Centre and 19 extractive industry companies. Each company provides
Slide 32: Key Indigenous partnerships programs and partnerships
Key Indigenous partnerships programs and partnerships Category Program/ Partnership Year Details commenced Partnerships Jansen Potash Project Since 2014 BHP has signed opportunities agreements with six First Nations, which are the first of their kind in southern Saskatchewan and in the potash indust
Slide 33: Key communities programs and partnerships
Key communities programs and partnerships Category Program/ Partnership Year Details commenced Global programs 7 Day payment terms Since 2021 BHP reduced payment terms for small, local and Indigenous businesses (approx. ~4k businesses) during the COVID-19 pandemic. Permanently reduced from July 1st.
Slide 34: Key workforce programs and partnerships
Key workforce programs and partnerships Category Program/ Partnership Year Details commenced Safety Fatality Elimination Program Since 2020 Strong focus on fatality elimination and near miss reduction through enhancing our hard controls across our risk profile and focussing on human and organisation
Slide 35: Key supply chains programs and partnerships
Key supply chains programs and partnerships Category Program/ Partnership Year Details commenced Traceability Nickel supply agreement with Since 2021 Nickel West supply agreement with Tesla Inc Tesla Inc The agreement includes the supply of nickel, enhanced end-to-end raw materials traceability usin
Slide 36: BHP Foundation: sample programs and partnerships
BHP Foundation: sample programs and partnerships Category Program/ Partnership Details Decarbonisation 10 Deserts project The Project has established the world’s largest network of Indigenous-managed conservation areas. Project activities include working with Traditional Owners to create sustainable
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