Page 23 - Annual Report 2020

1.4.9 Our contribution in FY2020 1

In FY2020, our total direct economic contribution was This investment typically has a multiplier effect by creating new jobs
US$37.2 billion, including payments to suppliers, wages and within our operations and also for the suppliers on whom they rely.
employee benefits, dividends and other payments to shareholders, For example, the construction of the US$3.6 billion South Flank
taxes and royalties, as well as voluntary social investment across project resulted in A$4.2 billion in contracts being awarded (including
the communities where we operate. Of this, we paid US$9.1 billion A$3.2 billion on Western Australian-based work). South Flank reached Strategic Report
globally in taxes, royalties and other payments to governments. a construction workforce of around 3,000 people as the project
(1)
Our global adjusted effective tax rate was 33.2 per cent . Including moved into its second year of construction in FY2020 and is
royalties, this increases to 42.2 per cent. This significant source of expected to create thousands of jobs over the life of the project.
taxation revenue assists governments to provide essential services In addition, we reduced our payment terms from 30 days to seven
to their citizens and invest in their communities for the future. days for over 1,500 small, local and Indigenous businesses as part
During FY2020, we paid US$8.6 billion to shareholders, lenders of a program to support communities and regional economies
and investors. during the COVID-19 pandemic. The accelerated payment program
As well as our direct economic contribution, we invested delivered over US$80 million more quickly into the hands of our Governance at BHP
US$7.6 billion into our business through the purchase of property, small business partners. BHP also hired approximately 1,500
contractors on six-month contracts to support its Australian
plant and equipment and expenditure on exploration.
operations during this difficult time.

Total economic contribution in FY2020

Suppliers (2) Remuneration Report
Payments made to our
suppliers for the purchase US$15.5b
of utilities, goods and services

Employees (2)

Employee expenses for salary,
wages and incentives US$3.9b Directors’ Report

Shareholders, lenders Total economic
and investors contribution
Dividend and US$8.6b
interest payments
US$37.2b
Total payments Financial Statements
to governments
Income taxes, royalty-related income
taxes, royalties and other payments US$9.1b
to governments

Social investment (2) (3) Additional information

Contributions and
administrative costs US$150m

Figures are rounded to the nearest decimal point or the nearest million. Shareholder information

(1) For more information on Alternative Performance Measures, refer to section 6.1.
(2) Calculated on an accrual basis.
(3) Total social investment includes community contributions and associated administrative costs (including US$1 million to facilitate the operation of the BHP Foundation)
and BHP’s equity share in community contributions for operated and non-operated joint ventures. Our social investment target is not less than 1 per cent of pre-tax
profits invested in community programs, including cash and administrative costs, calculated on the average of the previous three years’ pre-tax profit.

BHP Annual Report 2020 21