bhp group annual report 2019
At the centre of our stakeholder engagement approach is an understanding that healthy and sustainable relationships are built on open, honest and mutually respectful dialogue. (a) Scope 1 and 2 emissions have been calculated on an operational control basis in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. We made three copper optionality investments in Canada, Mexico and Ecuador, and acquired a stake in SolGold (Ecuador). The Group's exposure to asset integrity risks is expected to remain relatively stable. Strong cost discipline over the past five years has reduced unit costs by over 20 per cent across our major assets. Our approach to risk reporting is outlined in the, Emerging risks typically have their origin outside BHP. The nature of our operations means we have a significant responsibility for land and biodiversity management. In the United States, our partnership with The Nature Conservancy in the Sustainable Rivers and Forests Initiative supports conservation and restoration in the Columbia Bottomlands region in Texas and five counties in Arkansas. (b) Scope 1 refers to direct GHG emissions from operated assets. The system is designed to capture, analyse and track events in real time and will be implemented in FY2020. BHP owns or manages more than 10 million hectares of land and sea; however, less than two per cent of it is disturbed for operations. For example, for a loss of containment risk within the Group Risk of process safety, our first line operations personnel would be responsible for implementing pipe thickness checks to ensure corrosion is within acceptable limits. All our assets exist in and around broader communities and environments. The last seven fatalities at our operations involved contractors or subcontractors. The FY2017 baseline has been adjusted for the divestment of our Onshore US assets to ensure ongoing comparability of performance. Supporting the development of effective climate and energy policy. Significant resource headwinds and some unplanned production outages offset improvements in underlying operational performance in FY2019. (5) All iron ore production is assumed to be processed into steel and all copper production is assumed to be processed into copper wire for end use. This does not include contractors. Our activities may also have an impact on human rights, community livelihoods and wellbeing. (a) Scope 1 and 2 emissions have been calculated on an operational control basis in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. (9) A significant event, resulting from BHP operated activities, is one with a severity rating of four and above, based on our internal severity rating scale (tiered from one to five by increasing Assessments of the potential impact of future climate change policy, regulatory, legal, technological, market and societal outcomes are uncertain given the wide scope of influencing factors and the many countries in which we do business. We also introduced a new event management system for recording health, safety, environmental and community events. We also use fossil fuels in our mining and processing operations either directly or through the purchase of fossil fuel-based electricity. Our progress against our five-year and longer term environmental targets for water and biodiversity, as well as other key environmental stewardship activities. It protects us against potential negative impacts, enables us to take risk for strategic reward and improves our resilience against emerging risks. (18) The FY2017 baseline data has been adjusted to account for the materiality of the strike a¤ecting water withdrawals at Escondida in FY2017 and improvements to water balance methodologies We also contract with many commercial and financial counterparties, including end customers, suppliers and financial institutions in the context of global financial markets that remain volatile. We also added petroleum acreage in the Orphan Basin (offshore Canada). Data over the period FY2017 to FY2019 is displayed with Onshore US emissions shown separately for comparability (12 months of emissions in FY2017 and FY2018, and four months of emissions It provides an overview of how we are structured, what we do and where, our strategic plan, the principal risks we face, and high-level performance information. Signed in accordance with a resolution of the Board of Directors. Both documents can be found at bhp.com and together, constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text through a Regulatory Information Service. 84 2019 Remuneration Policy 97 Annual report on remuneration 107-159 Financials 108 Group income statement 109 Group statement of comprehensive income 110 Group statement of changes in equity 111 Group balance sheet 112 Group cash flow statement 113 Notes to the consolidated financial statements 150 Independent auditor's report Further development of a ‘culture of care’ within our business is a fundamental element of our FY2020 business plan. Jeff is the Non-Executive Chair of Herron Todd White Group and Non-Executive Director . APA GROUP — ANNUAL REPORT 2019 Cover image: Raj Kallath, APA's Project Manager for the Reedy Creek Wallumbilla Pipeline project. Transactions between each parent company and its subsidiaries are eliminated on consolidation and are not disclosed in this note. By your continued use of this site you accept such use. We shared real-life examples from within BHP to highlight the initiative and generate conversations. (1) Based on a ‘point in time’ snapshot of employees as at 30 June 2019, as used in internal management reporting for the purposes of monitoring progress against our goals. BHP is on course for deletion from the FTSE 100, MSCI Europe, and Stoxx 600 and Euro Stoxx 50 indices after the company announced plans to unify its primary listing to Sydney.. To review the Group's online annual review for 2019, go to: Contents Unless otherwise specified, page references are to pages in this report. 18-Aug-2021 | SSP News Release. Disclosures in respect of amounts owing to/from joint operations represent the amount that does not eliminate on consolidation. Millie's Cookies online factory provides support for local community at Prestwick Airport. There is often insufficient information for these risks to be fully understood and they cannot be prevented by BHP. Sales into China generated US$24.3 billion (FY2018: US$22.7 billion) or 54.8 per cent (FY2018: 52.5 per cent) of our revenue in FY2019, on a Continuing operations basis. These standards and underpinning practices strengthen our environmental and social performance and include: - conducting regular impact assessments for each asset to understand the social, environmental and economic context; - identifying and analysing stakeholder, social, environmental and human rights impacts and business risks; - engaging in regular, open and honest dialogue with stakeholders to understand their expectations, concerns and interests; - contributing to environmental and community resilience through social investment; - applying the mitigation hierarchy (avoid, minimise, rehabilitate, compensate) to minimise environment and community impacts, and achieve target environmental outcomes. ‘Freshwater’ is defined as waters BHP's activities or those of our associates could result in actual or alleged corruption, bribery, collusion, anti-competitive behaviour, market manipulation, tax avoidance or other breaches of legal, regulatory, ethics or compliance obligations. Risk management accountability and oversight is an integral part of BHP's governance. We have global practices and standards for operations and production that apply to third parties, including: - BHP's standards on supply, safety and capital projects that apply to contractors and include requirements relating to contractor management; - Our Code of Conduct, which sets out requirements related to working with integrity, including dealings with third parties as described in section 2.16; - our Contractor Management Framework, which specifies a holistic approach to support regional alignment and is supported by global training; - anti-corruption training, competition training, and Our Code of Conduct training; - independent inspections, assurance and verifications (in some cases performed by regulatory bodies); - governance frameworks for our joint ventures, which define how shareholders work together with management to govern the joint venture; - BHP and external reviews of joint venture projects, risk management and governance activities; - internal and shareholder audits of joint ventures. We are committed to reducing those risks and to contributing to a resilient environment beyond the immediate areas of our operations. 2019, Intega Group Limited was listed as a separate standalone entity on the Australian Securities Exchange on a deferred settlement basis. Risks associated with the prices of commodities, including sustained price shifts relative to the price of extraction. Loan amounts owing from related parties represent secured loans made to joint operations, associates and joint ventures under co-funding arrangements. We have onshore and offshore extractive, processing and logistical operations in many geographic locations. As of today (2021-08-22), BHP Group's weighted average cost of capital is 6.45%.BHP Group's ROIC % is 14.79% (calculated using TTM income statement data). Further disclosures related to other related party transactions are as follows: Net loans made to/(repayments from) related parties, Outstanding balances with related parties. Aveva Group plc does not currently have any hardcopy reports on AnnualReports.com. Climate change amplifies the sensitivities of our natural systems. Climate policy and regulation may reduce demand for our products or increase the costs associated with our assets. (17) FY2019 GHG data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations. The Board and senior management (including the Executive Leadership Team) provide oversight and monitoring of risk management outcomes. We also have contingency plans in place if production or shipping is interrupted. In addition, we have substantial integration between our information technology and our operating technology. (2) The baseline exposure profile is derived through a combination of quantitative exposure measurements and qualitative assessments undertaken by specialist occupational hygienists consistent with best practice as defined by the American Industrial Hygiene Association. Fluctuations in commodity prices can occur in response to a range of factors. Annual Report 2019 brambles.com. 2019 saw good progress on the Group's priority to strengthen its pharmaceuticals pipeline, particularly in oncology, with eight As we work to develop an integrated product stewardship strategy in FY2020 we intend to look to identify additional opportunities to work with others in our value chain to influence emissions reductions. In FY2019 we began a Group-wide Respectful Behaviours campaign to create greater awareness and build understanding of what disrespectful behaviour is and how it affects our people. Thursday, March 7, 2019 - 07:00. Our Code of Conduct and the Our Requirements for Communications, Community and External Engagement standard govern our actions in making a positive contribution to communities where we have a presence and minimising adverse impacts where these cannot be avoided. Our usual policy is to sell our products at the prevailing market prices. Chile has implemented a number of initiatives that will result in formal performance reporting in FY2020. Processing of nickel, zinc, Effective management of emerging risks is critical to strengthening our resilience to foreseeable changes and our ability to capture competitive advantages. We have onshore and offshore assets in variety of geographic locations. . The Priority Group Risk Review process (described above) aims to provide additional rigour around the management of top operational risks, such as dam failure and underground fire and explosion. ABOUT THIS REPORT This 2019 Annual Report is a summary of Beach's operations and activities for the 12-month period ended 30 June 2019 and financial position as at 30 June 2019. For example, when calculating the number of fatalities to assess MFL in an underground explosion, we might assume the maximum number of people who are allowed to enter the underground mine. The FY2017 baseline has been adjusted for the divestment of our Onshore US assets to ensure ongoing comparability of performance. A working group with participants from organisations across a number of business sectors has been established to develop and implement strategies to better manage and monitor high occupancy vehicles. Water stewardship is about safeguarding our shared water resources for future generations. Finally, our activities may be affected by shareholder activism or civil society activism. Our actions to reduce GHG emissions are described in more detail in the Climate change section. (10) Our voluntary social investment is calculated as 1 per cent of the average of the previous three years’ pre-tax profit. CBH has completed our largest ever annual investment in the network, with approximately $285.3 million invested this year to maintain existing infrastructure . The following information is extracted from the Annual Report 2019 (section references are to sections of the Annual Report) and should be read in conjunction with BHP's Results announcement issued on 20 August 2019. Once a decision has been made, our risk process as described above applies. In FY2019 we increased the representation of women working at BHP by 2.1 percent, resulting in 1,156 more female employees than the same time in FY2018. We do not have full oversight of the incidence of contractor noise-induced hearing loss (NIHL) cases in many parts of BHP due to regulatory regimes and limited access to data. - operational or commercial disruption (such as the inability to process or ship resources); - corruption or loss of system data; - a misappropriation or loss of funds; - unintended disclosure of commercial or personal information; - health and safety incidents, including fatalities (where cyber events cause system error or malfunction, which result in operational incidents); - environmental damage (for example, cyber incidents could cause train derailments for autonomous transport); - inability to respond appropriately to unrelated incidents; - regulatory fines and compensation to people impacted; We employ a number of measures designed to protect, detect and respond to cyber events, including: - BHP's standards on technology and cybersecurity, communications and external engagement; - cybersecurity strategy and resilience programs; - enterprise security framework and cybersecurity standards; - cybersecurity awareness plan and training; - security assessments and monitoring; - restricted physical access to critical centres and servers; - incident response plans, process and root cause analysis. As such, we apply a single framework (known as the 'Risk Framework') for all risks. Learn how we minimise our environmental impacts, Case study Our principal risks are shown in bold in the diagram below, and are described further in the Risk factors section below. Maintaining the operational integrity and performance of our assets is crucial to protect our people, the environment and communities in which we operate from incidents. In FY2019, where practicable, we also introduced inclusion and diversity incentives into our supply contracts. In North America, we have focused on working with our contracting partners to support the employment of First Nations and Métis peoples, who now comprise 9 per cent of our workforce at the Jansen Potash Project. 2021 was $0 Mil.Its cost of goods sold for the trailing twelve months (TTM) ended in Jun. Fatigue management supports the wellbeing of our people, including their mental and physical health. Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. Any restrictions will impact our ability to realise our strategy as competition for resources grows, existing reserves are depleted and supply sources become more expensive to develop, Many of our business and operational processes are heavily dependent on technology. It relates to and is extracted from the Annual Report 2019 and is not connected to the extracted and summarised information presented in this announcement. This could delay, limit or prevent future development of our assets or affect the productivity of our assets and the costs associated with our assets; - the Group's reputation and financial performance may be impacted by concerns regarding the contribution of fossil fuels to climate change. At BHP, we produce fossil fuels (energy coal, oil and gas) used primarily in the transport and electricity generation sectors, as well as fossil fuels and other commodities that are used as inputs to emissions-intensive industrial processes (including metallurgical coal and iron ore used in steelmaking). Footnotes: Total recordable injury frequency (TRIF) performance increased by seven per cent to 4.7 per million hours worked, compared to 4.4 per million hours worked in FY2018. Ecological implications of decommissioning subsea infrastructure in northwest Australia. Performance against risk appetite is monitored and reported to the RAC and the Board, as described below. For example, countries will need to introduce new or strengthen existing policies and regulation in order to meet the goals of the Paris Agreement. We use cookies to improve your experience. 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