Page 339 - Annual Report 2020

Energy Group
Energy means all forms of energy products where ‘energy BHP Group Limited, BHP Group Plc and their respective subsidiaries.
products’ means combustible fuels, heat, renewable energy, GWP (Global warming potential)
electricity, or any other form of energy from operations that are Strategic Report
owned or controlled by BHP. The primary sources of energy A factor describing the radiative forcing impact (degree of harm
consumption come from fuel consumed by haul trucks at our to the atmosphere) of one unit of a given greenhouse gas
operated assets, as well as purchased electricity used at our relative to one unit of CO 2 . BHP currently uses GWP from the
operated assets. Intergovernmental Panel on Climate Change (IPCC) Assessment
Report 4 (AR4) based on 100-year timeframe.
Energy content factor
The energy content of a fuel is an inherent chemical property Henry Hub
that is a function of the number and types of chemical bonds A natural gas pipeline located in Erath, Louisiana that serves as the
in the fuel. official delivery location for futures contracts on the New York
Mercantile Exchange.
Entrainment
Entrained water includes water incorporated into product and/or HPI (High potential injuries) Governance at BHP
waste streams, such as tailings, that cannot be easily recovered. High potential injuries (HPI) are recordable injuries and first aid
cases where there was the potential for a fatality.
EPA (Environmental Protection Agency)
The EPA is a government regulator working to protect ICMM (International Council on Mining and Metals)
the environment. The International Council on Mining and Metals is an international
organisation dedicated to a safe, fair and sustainable mining and
Evaporation metals industry.
Volumes of water that are consumed via evaporation of water IFRS (International Financial Reporting Standards)
from water storage facilities and for dust suppression activities.
Evaporation volumes are calculated using both climate and physical Accounting standards as issued by the International Accounting
information. Evaporation may be calculated by multiplying the Standards Board.
evaporation rate (measured through on-site instruments or sourced IPCC (Intergovernmental Panel on Climate Change) Remuneration Report
from meteorological authorities) by the surface areas of the water The Intergovernmental Panel on Climate Change (IPCC)
body, or it may be estimated from the change in stored water is the United Nations body for assessing the science related
volumes when the other inputs and outputs are directly measured. to climate change.
Executive KMP (Key Management Personnel) IUCN (International Union for Conservation of Nature)
Executive KMP includes the Executive Director (our CEO), the The International Union for Conservation of Nature is an
Chief Financial Officer, the President, Minerals Australia, the international organisation working in the field of nature
President, Minerals Americas, and the President, Petroleum. conservation and sustainable use of natural resources.
It does not include the Non-Executive Directors (our Board).
Financial control approach KMP (Key Management Personnel) Directors’ Report
Persons having authority and responsibility for planning, directing
A consolidation approach whereby a company reports greenhouse and controlling the activities of the Group, directly or indirectly.
gas emissions based on the accounting treatment in the company’s
consolidated financial statements, as follows: For BHP, KMP includes the Executive Director (our CEO), the
• 100 per cent for operations accounted for as subsidiaries, Non-Executive Directors (our Board), as well as the Chief Financial
regardless of equity interest owned Officer, the President (Minerals Australia), the President (Minerals
• for operations accounted for as a joint operation, the company’s Americas), and the President (Petroleum).
interest in the operation KPI (Key performance indicator)
It does not report greenhouse gas emissions from operations that Used to measure the performance of the Group, individual
are accounted for using the equity method in the company’s businesses and executives in any one year.
financial statements. LME (London Metal Exchange) Financial Statements
Functions A major futures exchange for the trading of industrial metals.
Functions operate along global reporting lines to provide support Location-based reporting
to all areas of the organisation. Functions have specific Scope 2 greenhouse gas emissions based on average energy
accountabilities and deep expertise in areas such as finance, legal, generation emission factors for defined geographic locations,
governance, technology, human resources, corporate affairs, including local, subnational, or national boundaries (i.e. grid
health, safety and community. factors). In the case of a direct line transfer, the location-based 6
Gearing ratio emissions are equivalent to the market-based emissions.
The ratio of net debt to net debt plus net assets. Market-based reporting
GHG (Greenhouse gas) Scope 2 greenhouse gas emissions based on the generators
For BHP reporting purposes, these are the aggregate (and therefore the generation fuel mix from which the reporter
anthropogenic carbon dioxide equivalent emissions of carbon contractually purchases electricity and/or is directly provided Additional information
dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O), electricity via a direct line transfer).
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur Minerals Americas
hexafluoride (SF 6 ). A group of assets located in Brazil, Canada, Chile, Colombia,
GRI (Global Reporting Initiative) Peru and the United States (see ‘Asset groups’) focusing on copper,
GRI works with businesses and governments to understand and zinc, iron ore, energy coal and potash.
communicate their impact on critical sustainability issues. Minerals Australia
Groundwater A group of assets located in Australia (see ‘Asset groups’). Minerals
Water beneath the earth’s surface, including beneath the seabed, Australia includes operations in Western Australia, Queensland, Shareholder information
which fills pores or cracks between porous media such as soil, New South Wales and South Australia, focusing on iron ore, copper,
rock, coal, and sand, often forming aquifers. For accounting metallurgical, and energy coal and nickel.
purposes, water that is entrained in the ore can be considered
as groundwater (e.g. dewatering, abstraction from bore field,
ore entrainment).

BHP Annual Report 2020 337