Page 330 - Annual Report 2020

Progress against our Water Stewardship Strategy
Water Stewardship Strategy pillar What we did in FY2020
Risk BHP issued three Group-wide water standards for our operated assets in FY2019: water management,
Embed processes and systems to drinking water and water data. Performance against all three standards will be assured as part of BHP’s
effectively manage water-related risk ‘three lines of defence’ model of risk governance and management. For more information on this model,
and realise opportunities at a catchment refer to section 1.5.4.
level in the short and longer term. The Technical Centre of Excellence will undertake ‘second line of defence’ assurance activities to ensure
our operated assets are meeting the minimum requirements set out in these three water standards.
Our Internal Audit and Advisory team, which provides independent assurance over the risk control
environment, will include assurance against the standards as part of the ‘third line of defence’ and
operated assets will monitor and review their water management activities as part of the ‘first line
of defence’.
In FY2020, each of our operated assets executed a gap assessment for each of the three water
standards. Action plans are in place to progress towards compliance with these new standards. For
example, a number of technology data management solutions were assessed in FY2020 to assist with
improvements in water data storage and analysis.
We undertook an assessment of water-related risks within the catchments and marine regions in which
we operate, taking account of environmental, community and third party interactions and assessed
water-related operational risk in alignment with the BHP Risk Framework.
Technology The technologies available for water recovery from tailings and water treatment options were shortlisted
Leverage technology solutions that drive for further assessment and or development for each operated asset (as applicable), thereby creating a
a step-change reduction in water-related pipeline of technology projects designed to contribute to the delivery of the FY2030 longer-term goal.
risks, realise opportunities and deliver For more information, refer to the technology case study at bhp.com.
multiple benefits.
Value In FY2020, an approach was developed to help integrate social value considerations (including
Effectively value water in investment environment and community aspects of water) into BHP’s planning and project evaluation processes.
and operated asset decisions through The approach is expected to be trialed and further developed in FY2021.
integration into strategy, planning
and evaluation frameworks.
Disclosure We incorporated feedback from external parties on our FY2018 Water Report within our FY2019
Transparently disclose water-related risks, Sustainability Report and FY2020 Annual Report (e.g. presentation of relativity of water-related risk).
management and performance at an We increased our water disclosure by providing withdrawal, discharge, and consumption and diversion
operated asset level. data at an operated asset level.
In FY2020, we commenced a case study with the ICMM to help inform improvements and increase
consistency of water disclosures in the mining sector.
Collective action In FY2020, we continued work with the CEO Water Mandate to develop a Common Water Accounting
Collaborate with stakeholders to improve Framework (see the CEO Water Mandate case study). We believe this is the first step required to advance
regional water policy and catchment effective multi-stakeholder conversations on water.
governance and address shared water We also continued to work in the Gulf of Mexico to improve water, biodiversity and climate change
challenges within our communities and outcomes (see the Bayou Terrebonne Biodiversity and Resiliency Project case study).
across our value chain.
We partnered with industry and research peers to launch the Groundwater Modelling Decision Support
Initiative (GMDSI) in October 2019. The GMDSI is an industry-funded project designed to improve the
contribution of groundwater modelling in supporting environmental management and decision-making
(see the Groundwater Modelling Support Initiative (GMDSI) case study). The GMDSI reflects our
recognition of the value that deep knowledge brings to addressing water challenges.
We continued our dialogue with customers and suppliers in the China region to assess water-related
risks (both threats and opportunities) in our value chain.
We began a program of Water Resource Situational Analyses (WRSA) to inform post-FY2022 operated
asset context-based water targets. The targets will seek to minimise our impacts and address shared
water challenges in the regions in which we operate, in line with our commitments in our Water
Stewardship Position Statement. This work is also expected to contribute towards our longer-term goal
to support integrated water resource management in all the catchments where we operate by FY2030.

328 BHP Annual Report 2020