BHP : Annual Report 2021

Annual

Report

2021

The future is clear

Contents

Strategic Report

1.1	Our highlights	02
					1.2	Chair's review	04
					1.3	Chief Executive	05
						Officer's review
					1.4	Our business today	06
					1.5	Positioning for the future	07
				1.6	Delivering value	08
				1.6.1	Our business model	08
			1.6.2	How we deliver value	10
		1.6.3	How our choice of	11
						commodities and assets
						helps deliver value
		1.7	Chief Financial	13
						Officer's review
		1.8	Financial review	14
		1.8.1	Group overview	14
	1.8.2	Key performance indicators	14
	1.8.3	Financial results	15
	1.8.4	Debt and sources of liquidity	17
	1.9	How we manage risk	19
1.10	Our business	20
1.10.1	Locations	20

1.10.2	Minerals Australia	22
			1.10.3	Minerals Americas	24
			1.10.4	Petroleum	26
			1.10.5	Commercial	27
			1.11	Exploration	28
			1.12	People and culture	30
			1.13	Sustainability	32
		1.13.1	Our sustainability approach	32
		1.13.2	Our material	33
					sustainability issues
		1.13.3	Our sustainability performance:	34
					Non-financial KPIs
		1.13.4	Safety	35
	1.13.5	Health	36
1.13.6	Ethics and business conduct	37
1.13.7	Climate change and	38
					portfolio resilience
	1.13.8	Community	44
1.13.9	Human rights	44
1.13.10	Indigenous peoples	45
1.13.11	Social investment	46

1.13.12	Environment	47
				1.13.13	Water	48
				1.13.14	Land and biodiversity	49
				1.13.15	Tailings storage facilities	50
				1.13.16	Independent limited	52
					assurance report
				1.14	Section 172 statement	53
				1.15	Samarco	55
				1.16	Risk factors	56
			1.17	Performance by commodity	64
			1.17.1	Petroleum	64
			1.17.2	Copper	65
		1.17.3	Iron Ore	66
		1.17.4	Coal	67
		1.17.5	Other assets	68
	1.17.6	Impact of changes	68
					to commodity prices
	1.18	Other information	68
	1.18.1	Company details and	68
					terms of reference
	1.18.2	Forward-looking statements	69

05		06		08
Chief Executive		Our business today		Delivering value
Officer's review

70-128	2.1	Corporate Governance Statement	71
2.2	Remuneration Report	98
Governance
2.3	Directors' Report	124
129-217	3.1.6	Notes to the financial statements	137
	3.1	Consolidated Financial Statements	130

Financial Statements

218-308

Additional Information

4.1	Financial information summary	219
			4.2	Alternative Performance Measures	219
			4.3	Information on mining operations	229
		4.4	Financial information by commodity	239
	4.5	Production	242
	4.6	Resources and Reserves	245
	4.7	Major projects	268
4.8	Sustainability - performance data	269
4.9	Legal proceedings	291
4.10	Shareholder information	293

The Annual Report 2021 is available online at bhp.com

		Company details and terms of reference		Forward-looking statements
		refer to section 1.18.1			refer to section 1.18.2
BHP Group Limited. ABN 49 004 028 077.	BHP Group Plc. Registration number 3196209.	Electric car and charging station - Getty Images

BHP Annual Report 2021

We are BHP, a leading global resources company.

1

ReportStrategic

2 Governance

3 StatementsFinancial

4 InformationAdditional

Our Purpose

Our purpose is to bring people and resources together to build a better world.

Our Values

Sustainability

Putting health and safety first, being environmentally responsible and supporting our communities.

Integrity

Doing what is right and doing what we say we will do.

Respect

Embracing openness, trust, teamwork, diversity and relationships that are mutually beneficial.

Performance

Achieving superior business results by stretching our capabilities.

Simplicity

Focusing our efforts on the things that matter most.

Accountability

Defining and accepting responsibility and delivering on our commitments.

We are successful when:

• Our people start each day with a sense of purpose and end the day with a sense of accomplishment.
• Our teams are inclusive and diverse.
• Our communities, customers and suppliers value their relationships with us and are better off for our presence.
• Our asset portfolio is world class and sustainably developed.
• Our operational discipline and financial strength enables our future growth.
• Our shareholders receive a superior return on their investment.
• Our commodities support continued economic growth and decarbonisation.

BHP Annual Report 2021

01

1.1  Our highlights

Operational

No fatalities for a second consecutive year; total recordable injury frequency decreased 11% to 3.7 per million hours worked

Four major projects delivered on time and on budget, including the Spence Growth Project in Copper and South Flank in Iron Ore

Record volumes at Western Australia Iron Ore (WAIO), Goonyella and Olympic Dam, and Escondida maintained average concentrator throughput at record levels

Investment in Jansen Stage 1 potash project; agreement to pursue a merger of our Petroleum business with Woodside; intention to unify our corporate structure under BHP's existing Australian parent company

02 BHP Annual Report 2021

1StrategicReport 2 Governance 3 FinancialStatements 4 AdditionalInformation

Social value

29.8% female workplace			Operational greenhouse gas (GHG)
representation at the end of FY2021,			emissions on track to be reduced
a 3.3 percentage point increase from			by at least 30% by FY2030
the start of the year			(from FY2020 levels)
						Indigenous peoples workforce
		3.3% points			representation at the end of FY2021
				was 7.2% in Australia, 7.5% in Chile
						and 13.7% in Canada
	Principles on Cultural Heritage in			US$175 million invested
Australia jointly developed with First
		in environmental and
Nations Heritage Protection Alliance
		social programs, including
						a US$50 million donation
						to the BHP Foundation
		27% freshwater withdrawal
		reduction from FY2017 baseline,
		with 11% reduction achieved
		in FY2021
		11%				Getty images
Commitment to create 2,500 new
		Partnerships to support our
Australian apprenticeships and training			Scope 3 GHG emissions goals
positions over the next five years			for FY2030 progressed with three
through the BHP FutureFit Academy,			major steelmakers who together
and a further 1,000 skills development			represent around 10% of global
opportunities in Australian regional			steel production
areas. Around 80% of the Academy's
graduates in FY2021 were female
	Financial
		US$25.9 bn 80%				301USc (120USc in FY2020)
		Profit from operations		Shareholder dividends per share
		US$4.12 bn 66%				32.5% (16.9% in FY2020)
		Net debt		Underlying return on capital employed

BHP

Annual Report 2021

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