Page 309 - Annual Report 2020

Environment – related metrics
We acknowledge the nature of our operations can have significant environmental impacts. Our environmental SPMs allow the Board and
management to manage and monitor the inherent risks relating to, and any adverse impacts our operations may have on, air quality, water
resources, biodiversity and habitats. They also allow the Board, management, investors and other stakeholders to measure and track our Strategic Report
performance towards our environmental commitments. These measures are used to inform strategic focus areas, support planning and
investments in infrastructure and identify improvement opportunities that potentially reduce environmental impacts. BHP respects legally
designated protected areas and commits to avoiding areas or activities where we consider the environmental risk is outside BHP’s risk
appetite. Additionally, our operations and growth strategy depend on obtaining and maintaining access to environmental resources, such
as land and water. Significant environmental events and incidents of non-compliance, such as tailings storage facilities failures can lead
to costly environmental liabilities, which hinder our growth and expansion strategies.
Reference and SPM Methodology
Section 1.7.6 Environment Land may refer to sea, lake or river beds if appropriate and includes land for infrastructure to support extractive operations.
and section 6.6.3 Land disturbed includes the total land area at the time of reporting that is physically impacted by the activities of the
Environment – business that substantially disrupts the pre-existing habitats and land cover. Governance at BHP
performance data
– Land owned, leased or Land managed for conservation is the total area at the time of reporting managed for the purposes of biodiversity
managed, Land disturbed, conservation only. It includes land that the business has formally assigned and manages as a compensatory action
Land rehabilitated and Land as well as other land that the business has protected from disturbance activities and manages for conservation.
set aside for conservation. Land data is calculated as the total land area owned, leased or managed by BHP as at 30 June of the reporting year,
expressed as hectares. Data does not include land managed for rehabilitation or conservation as part of voluntary
social investment.
This methodology has been prepared in accordance with GRI standard MM1 and these metrics assist the Board
and management in understanding the magnitude of land that is under direct control of the company and its
operational footprint.
Section 1.4.8 Sustainability Water withdrawals
KPIs, section 1.7.6 The volume of water, in megalitres (ML), received and intended for use by the operated asset from the water
Environment and environment and/or a third party supplier. We disclose water withdrawal in ML by operated asset and source (sea, Remuneration Report
section 6.6.5 Water – ground and surface waters as defined in section 6.8.2). Volumes by quality type (as defined in section 6.8.2) are also
performance data disclosed. Withdrawal volumes disclosed per annum include rainfall and runoff volumes captured and used during the
– Water withdrawals, reporting year. Rainfall and runoff volumes that have been captured and stored are excluded and will be reported in the
Water discharges, future year of use. Withdrawal volumes also include water entrained (see section 6.8.2) in ore.
Water diversions,
Water consumption Water withdrawal metrics assist the Board and management in understanding the significance of our water resource
and Water sensitivity use, collectively for the Group and by individual operated asset, and to assess trends over time. It also helps inform
investment in infrastructure to reduce water withdrawals and improve efficiency of water use.
Water discharges
The volume of water, in ML, removed from the operated asset and returned to the environment and/or distributed
to a third party. This may include discharge to sea, surface waters, groundwater seepage or aquifer reinjection. We
disclose water discharges in ML by operated asset and destination. Volumes by quality type (as defined in section 6.8.2) Directors’ Report
are also disclosed.
Water discharge metrics assist the Board and management in understanding the amount of water that operated assets
must handle and release in line with water quality requirements. It also helps inform investment in infrastructure to
improve water quality, reduce water withdrawals and improve efficiency of water use.
Water diversions
The volume of water, in ML, that is actively managed by an operated asset but not used for any operational purposes.
Diversions are reported as both withdrawals and discharges and may include:
• flood waters that are discharged to an external surface water body
• dewatering volumes produced by aquifer interception that are reinjected to groundwater or discharged to surface water
• ground or surface water that is removed by or supplied to a third party, such as a community
• water removed as part of accessing crude oil that is returned to the sea without use Financial Statements
• water used for ecosystem irrigation
Withdrawal and discharge diverted water may occur in different annual reporting periods, so in any given annual period
there may be a differential between withdrawals and discharges for diverted water.
Water diversion metrics assist the Board and management in understanding the volumes of water handled by the operated
asset. This information assists in forecasting water management costs and identifying opportunities to reduce them.
Water consumption
The volume of water, in ML, used by the operated asset and not returned to the environment or a third party. We 6
disclose consumption by total consumption and use (evaporation, entrainment and other as defined in section 6.8.2).
Water consumption metrics assist the Board and management in the planning of water supplies and infrastructure for
future production, expansions or new projects. The metrics are also used to identify the areas where we have
opportunity to reduce water use.
Water recycled/reused
The volume of water, in ML, that is reused or recycled at an operated asset. Reused water is water that has previously Additional information
being used at the operated asset that is used again without further treatment. Recycled water is water that is reused
but is treated before it is used again. Efficiency of this recycling and reuse is calculated in percentage by calculating
the proportion of recycled or reused water volumes to total water volumes withdrawn (excluding seawater) by BHP
in accordance with section 3.6.1 of the Minerals Council of Australia’s Water Accounting Framework (WAF).
Water recycled/reused metrics assist the Board and management in assessing opportunities to reduce water
withdrawals. These metrics assist with comparisons of water recycling/reuse performance and trends between our
operated assets and with peers, which can be used to inform and prioritise reuse and recycling improvements and
technological investments.
Water sensitivity
We define water sensitivity as the degree (high, moderate or low) to which a region is sensitive to a range of water- Shareholder information
influencing factors.
Water sensitivity metrics assist the Board and management in understanding the relativity and contributing factors
to water-related risk management at individual operated assets, and in understanding if this changes over time.
These methodologies have been prepared in accordance with GRI standard 303-3, GRI standard 303-4 and GRI
standard 303-5 and these metrics assist the Board and management in understanding the volumes of water that the
company interacts with the and water volume and use efficiency trends over time.

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