Page 21 - Annual Report 2020

1.4.8 Our performance: Non-financial KPIs 1

Capital management KPIs Sustainability KPIs

Total shareholder return Long-term credit rating Our public sustainability five-year targets Strategic Report
and longer-term goals set in FY2017 are
% change from previous year designed to help us to operate safely,
(3-month average) 2020 A, A2 reduce our environmental impact,
50 protect the health of our people and
40 2019 A, A2 contribute to improved quality of life
30 2018 A, A3 in the communities where we have a
20 presence. These targets and various
2017 A, A3 sustainability performance metrics
10 (SPMs) disclosed in this Report Governance at BHP
0 2016 A, A3 encourage our continual improvement
-10 -15.7% in our sustainability areas and enable us
-20 to manage and evaluate our performance
-30 against our commitments.
-40 The targets were created in consultation
-50 with our operated assets and key internal
and external stakeholders, to prioritise
FY2016 FY2017 FY2018 FY2019 FY2020 and measure our progress in our
sustainability areas. The targets were
approved by the Sustainability Remuneration Report
Committee, which oversees how we
manage sustainability risks and evaluates
Total shareholder return (TSR) shows Credit ratings are forward-looking overall sustainability performance.
The targets are integrated into our
the total return to shareholders opinions on credit risk. Standard & Poor’s
during the financial year. It combines and Moody’s credit ratings express the business plans and they and other
selected SPMs form part of Company
movements in share prices and opinion of each agency on the ability and
dividends paid (which are assumed willingness of BHP to meet its financial scorecards. Each year the Sustainability
Committee offers guidance to the
to be reinvested). obligations in full and on time. A credit Remuneration Committee in the
During FY2020, TSR decreased as rating is not a recommendation to buy, evaluation of performance against
a result of the BHP share price and sell or hold securities and may be subject these targets and selected SPMs. Directors’ Report
to suspension, reduction or withdrawal
dividends paid, resulting in a 15.7
percentage change from FY2019. at any time by an assigning rating For a description of why we believe
our SPMs are useful and the
agency. Any rating should be evaluated
From 1 July 2015 to 30 June 2020, calculation methodology by metric,
BHP’s TSR performance was independently of any other information. refer to section 6.6.
29 per cent. This is above the sector Standard & Poor’s and Moody’s credit
Peer Group TSR by 19.4 per cent, ratings of BHP remained at the A and A2 For information on our approach
and below the MSCI Index TSR level respectively throughout FY2020. to performance and reward, refer
to section 3.
by 9.5 per cent. Standard & Poor’s affirmed its rating
on 14 July 2020 and Moody’s affirmed For information on our overall
its rating on 1 May 2020. approach to executive remuneration,
including remuneration policies Financial Statements
For more information on our and remuneration outcomes,
liquidity and capital resources, refer to section 3.
refer to section 1.10.3. Additional information

BHP Annual Report 2020 19 Shareholder information