Page 10 - Annual Report 2020

1.4 Performance

1.4.1 Our strategy

BHP’s strategy is to have the best capabilities, best commodities and best assets, to create long-term value
and high returns. Our strategy is underpinned by our disciplined approach to capital allocation and risk
management and our overriding commitment to generating social value for our stakeholders.
Social value is at the core of our approach and purpose – to bring As we look to the future, BHP and our products will play an
people and resources together to build a better world. It underpins essential role as the world’s population continues to grow,
our decisions and actions, from the positive contribution we make improved living standards are pursued and momentum towards
to the environment and society, to supporting the needs of our decarbonisation increases.
workforce, partners, customers, economies and communities.
The longevity of BHP’s assets means we must think and plan
in decades. The long-term health of our business is dependent
on the long-term health of our society and a sustainable
natural environment.

Culture and capabilities Best Commodities
that enable the execution culture and Best with high economic
of our business strategy capabilities commodities rent potential

Value and returns

Best assets

Assets
that are resilient through the cycle
and have embedded growth options

Our strategy maximises value and returns
We have secured and will continue to grow options in copper To extract the most value and the highest returns from our assets
and nickel, where increasing demand and our capability give us we apply Our Charter values and culture of care to operate safely
competitive opportunities. We are moving to concentrate our coal and productively, supported by technology.
portfolio on higher-quality coking coals, with greatest potential We want BHP to be recognised as the resources industry’s best
upside for quality premiums as steelmakers seek to improve blast operator. To do this we must:
furnace utilisation and reduce emissions intensity, and will pursue
options to divest our interests in BMC, New South Wales Energy • have a relentless focus on the elimination of fatalities and achieving
Coal (NSWEC) and Cerrejón. our climate change, water and social value commitments
In oil and gas, we will continue to invest in opportunities that are • be leaner and higher performing – lower cost, more reliable
and productive
resilient under a range of price scenarios, and which are aligned • create and secure options in future-facing commodities to
to our strengths. We will seek to divest oil and gas assets that continue to grow value
are mature or which are likely to realise greater value under
different ownership.
This approach to actively managing our portfolio for value, risk and
returns over multiple time horizons will yield superior returns for
our investors and greater value for our partners and communities.
We have some of the world’s best assets. This is backed up by
the discipline and competition stimulated through our Capital
Allocation Framework, which has driven better transparent
decision-making and capital efficiency.

8 BHP Annual Report 2020