Page 128 - Annual Report 2020

2.7 Director skills, experience and attributes continued

Board skills and experience: Climate change During FY2020, the Board:
Climate change is a Board-level governance issue and is discussed • undertook a deep dive relating to climate change and strategy.
regularly, including during Board strategy discussions, portfolio This included discussion about climate change scenarios and
review and investment decisions, and in the context of scenario discussions on relative commodity attractiveness, including
triggers and signposts. The Sustainability Committee spends under a Climate Crisis scenario and a 1.5°C scenario. In addition,
a significant amount of time considering systemic climate stakeholder attitudes, including those of investors, were
change matters relating to the resilience of and opportunities considered in relation to climate change and the direction
for BHP’s portfolio. and momentum of the evolution of those expectations
Board members bring experience from a range of sectors including • held discussions on a range of other climate-related topics
resources, energy, finance, technology and public policy. This equips including the role of industry associations in climate policy
advocacy, investor and government views on climate change
them to consider potential implications of climate change on BHP
and its operational capacity, as well as understand the nature issues (including in the context of shareholder requisitioned
resolutions), reviews of supply and demand analysis and
of the debate and the international policy response as it develops.
In addition, there is a deep understanding of systemic risk and portfolio planning
the potential impacts on our portfolio. Following extensive discussion by the ELT and the Sustainability
The Board has taken measures to ensure its decisions are informed Committee during FY2020, in August 2020, the Board approved
by climate change science and expert advisers. our medium-term target, Scope 3 emission goals and the
strengthening of links between executive remuneration and
The Board seeks the input of management (including Dr Fiona Wild, climate change performance measures.
our Vice President Sustainability and Climate Change) and other
independent advisers. In addition, our Forum on Corporate For more information, refer to section 1.7.8 and the Climate
Responsibility (which includes Don Henry, former CEO of the Change Report 2020.
Australian Conservation Foundation and Changhua Wu, former
Greater China Director, the Climate Group) advises operational
management teams and engages with the Sustainability
Committee and the Board as appropriate.

Board tenure and diversity (as at 1 October 2020)
Tenure Region of Nationality Diversity

0–3 years 3–6 years 25% 33%
66% 17% 33% Female 33%
Australia Female 67%
Europe Male
North America
6–9 years 9+ years 42%
0% 17%

126 BHP Annual Report 2020