Page 137 - Annual Report 2020

2.11 Sustainability Committee Report

Role and focus The Sustainability Committee reviewed and recommended Strategic Report
The Sustainability Committee assists the Board in overseeing to the Board the approval of these disclosures in section 1.6
the Group’s health, safety, environmental and community and 1.7 and the sustainability performance data in section 6.6,
(HSEC) performance and governance responsibilities, and the along with the Modern Slavery Statement FY2020. These
adequacy of the Group’s HSEC framework. disclosures identify our targets for HSEC matters and our
performance against those targets. Our targets rely on
The Group’s HSEC framework consists of: fact-based measurement and quality data, and reflect
• the CEO limits outlined in the Board Governance Document. a desire to move BHP to a position of industry leadership.
The Board Governance Document establishes the remit of the
Board and delegates authority to the CEO, including in respect Our sustainability reporting, including additional case studies 2
of the HSEC Management System, subject to CEO limits and a databook of key ESG and sustainability data is available
at bhp.com.
• the Sustainability Committee, which is responsible for
assisting the Board in overseeing the adequacy of the For information on our material exposure to economic,
Group’s HSEC Framework and HSEC Management System environmental and social sustainability risks and how we
(among other things) manage or intend to manage those risks, refer to section 1.5.4. Governance at BHP
• the HSEC Management System, established by management Activities of the Sustainability Committee
in accordance with the CEO’s delegated authority. The HSEC
Management System provides the processes, resources, The Sustainability Committee met five times during FY2020
structures and performance standards for the identification, and continued to assist the Board in its oversight of HSEC issues
management and reporting of HSEC risks and the and performance. The Committee considered the Group’s
investigation of any HSEC incidents approach to climate change throughout the year. More
information on our approach to climate change, is set out in
• a robust and independent internal audit process overseen section 1.7.8. For more information on our approach to tailings
by the RAC, in accordance with its terms of reference storage facilities, refer to section 1.7.10. The Committee also Remuneration Report
• independent advice on HSEC matters, which may be continues to monitor our water stewardship work and for
requested by the Board and its Committees where deemed more information on our water stewardship performance,
necessary in order to meet their respective obligations see section 6.6.
Our approach to sustainability is reflected in Our Charter, which Members of the Sustainability Committee also visited several
defines our values, purpose and how we measure success, and sites during FY2020. During these site visits, Committee
in our sustainability performance targets, which define our public members received briefings on HSEC matters and the
commitments to HSEC. HSEC considerations are also taken into management of material HSEC risks, and met with key
account in employee and executive remuneration. For more personnel. These visits offer access to a diverse cross-section
information, refer to Sustainability in section 1.7 and section 3. of the workforce from frontline through to the leadership
The Committee oversees the preparation and presentation of team, including, where possible, risk and control owners. Directors’ Report
sustainability disclosures by management. This year, BHP has During FY2020, several site visits were cancelled due
included material sustainability content in this Annual Report. to COVID-19 restrictions.
Sustainability Committee members during the year
Name Independent Status Attendance
John Mogford (Chair from 7 November 2019) Yes Member for whole period 5/5
Malcolm Broomhead (Chair until 6 November 2019) Yes Member for whole period 5/5
Ian Cockerill Yes Member for whole period 5/5
Gary Goldberg Yes Member from 1 February 2020 3/3 Financial Statements
Committee activities in FY2020
Assurance and adequacy of HSEC framework Performance
and HSEC management system
• Performance of BHP on HSEC matters
• Key HSEC risks, including tailings storage facility failure, • Considering proposed HSEC key performance indicators (KPIs)
climate change-related risks, and fatalities for Key Management Personnel scorecard and considering
• Audit planning and reporting on HSEC risks and processes performance against these KPIs
• Contractor management • Monitoring against the FY2018–FY2022 HSEC performance targets
• Event management solution demonstration • Update on Samarco remediation and the Fundação Renova
• Review of the HSE function and Group HSE Officer • BHP tailings dam review and actions Additional information
• Saraji mine fatality investigation
Compliance and reporting
• Performance and key issues on sustainable development and
• Compliance with HSEC legal and regulatory requirements community relations, including community issues update
• Updates on key legal and regulatory changes • Social value update, including investor feedback
• Consideration of threshold for reporting HSEC matters • Scope 3 emissions goals
to the Committee • Medium-term operational (Scope 1 and 2) greenhouse gas
• Sustainability reporting, including consideration of processes emissions target
for preparation and assurance provided by EY • Link between climate change performance and
• Social value and ESG metrics executive remuneration
Other governance matters Shareholder information
• Induction, training and development of Committee members
• Site visits and site visit reports
• Modern Slavery Statement FY2020

BHP Annual Report 2020 135