Page 340 - Annual Report 2020

NGER (National Greenhouse and Energy Reporting Scheme) Operating Model
The Australian National Greenhouse and Energy Reporting (NGER) The Operating Model outlines how BHP is organised, works and
scheme is a single national framework for reporting and measures performance and includes mandatory performance
disseminating company information about greenhouse gas requirements and common systems, processes and planning.
emissions, energy production, energy consumption and other The Operating Model has been simplified and BHP is organised
information specified under NGER legislation. by assets, asset groups, Commercial, and functions.
Non-operated asset/non-operated joint venture (NOJV) OSHA (Occupational Safety and Health Administration)
Non-operated assets/non-operated joint ventures include interests The Occupational Safety and Health Administration is an agency
in assets that are owned as a joint venture but not operated by BHP. of the United States Department of Labor that regulates workplace
References in this Annual Report to a ‘joint venture’ are used for health and safety.
convenience to collectively describe assets that are not wholly Other (with respect to water consumption volumes)
owned by BHP. Such references are not intended to characterise
the legal relationship between the owners of the asset. This includes water volumes used for purposes such as potable
water consumption and amenity facilities at our operated assets.
Occupational illness Our Requirements
An illness that occurs as a consequence of work-related activities
or exposure. It includes acute or chronic illnesses or diseases, The standards that give effect to the mandatory requirements
which may be caused by inhalation, absorption, ingestion arising from the BHP Operating Model as approved by the Executive
or direct contact. Leadership Team (ELT). They describe the mandatory minimum
performance requirements and accountabilities for definitive
OELs (occupational exposure limits) business obligations, processes, functions and activities across BHP.
An occupational exposure limit is an upper limit on the acceptable Previously called Group Level Documents (GLDs), the Our
concentration of a hazardous substance in workplace air for a Requirements standards reflect a simpler organisation with
particular material or class of materials. OELs may also be set for the purpose of being more user-friendly and easier to read.
exposure to physical agents such as noise, vibration or radiation.
OMC (Operations Management Committee) Paris Agreement
The Paris Agreement is an agreement between countries party
Prior to FY2018, the Operations Management Committee had to the United Nations Framework Convention on Climate Change
responsibility for planning, directing and controlling the activities (UNFCC) to strengthen efforts to combat climate change and adapt
of BHP under the authorities that have been delegated to it by the to its effects, with enhanced support to assist developing countries
Board. This included key strategic, investment and operational to do so.
decisions, and recommendations to the Board.
During FY2018 the OMC was dissolved and the Remuneration Paris Agreement goals
Committee re-examined the classification of KMP for FY2018 to The central objective of the Paris Agreement is its long-term
determine which persons have the authority and responsibility for temperature goal to hold global average temperature increase to
planning, directing and controlling the activities of BHP. After due well below 2°C above preindustrial levels and pursue efforts to limit
consideration, the Remuneration Committee determined the KMP the temperature increase to 1.5°C above pre-industrial levels.
for FY2018 comprised of all Non-executive Directors (the Board), Petroleum (asset group)
the Executive Director (the CEO), the Chief Financial Officer, the A group of conventional and non-conventional oil and gas assets
President, Minerals Australia, the President, Minerals Americas, (see ‘Asset groups’). Petroleum’s core production operations are
and the President, Petroleum. The Committee also determined located in the US Gulf of Mexico, Australia and Trinidad and
that, effective 1 July 2017, the Chief External Affairs Officer and Tobago. Petroleum produces crude oil and condensate, gas and
Chief People Officer roles are no longer considered KMP. natural gas liquids.
Onshore US Platts
BHP’s petroleum asset (divested in year ended 30 June 2019) Platts is a global provider of energy, petrochemicals, metals and
in four US shale areas (Eagle Ford, Permian, Haynesville and agriculture information and a premier source of benchmark price
Fayetteville), where we produced oil, condensate, gas and assessments for those commodity markets.
natural gas liquids. PPE (personal protective equipment)
OPEC (Organization of the Petroleum Exporting Countries) PPE means anything used or worn to minimise risk to worker’s
OPEC is a permanent intergovernmental organisation of 13 health and safety, including air supplied respiratory equipment.
oil-exporting developing nations that coordinates and unifies
the petroleum policies of its Member Countries. Quoted
Operated assets In the context of American Depositary Shares (ADS) and
listed investments, the term ‘quoted’ means ‘traded’ on the
Operated assets include assets that are wholly owned and operated relevant exchange.
by BHP and assets that are owned as a joint venture and operated
by BHP. References in this Annual Report to a ‘joint venture’ are Residual mix
used for convenience to collectively describe assets that are The mix of energy generation resources and associated attributes
not wholly owned by BHP. Such references are not intended to such as greenhouse gas emissions in a defined geographic
characterise the legal relationship between the owners of the asset. boundary left after contractual instruments have been claimed/
Operational control approach retired/cancelled. The residual mix can provide an emission
factor for companies without contractual instruments to use
A consolidation approach whereby a company accounts for in a market-based method calculation. A residual mix is currently
100 per cent of the greenhouse gas emissions over which it has unavailable to account for voluntary purchases and this may
operational control (a company is considered to have operational result in double counting between electricity consumers.
control over an operation if it or one of its subsidiaries has the full
authority to introduce and implement its operating policies at the SASB (Sustainability Accounting Standards Board)
operation). It does not account for greenhouse gas emissions from The Sustainability Accounting Standards Board is a non-profit
operations in which it owns an interest but does not have operational organisation that develops standards focused on the financial
control. Also see the definition for ‘Equity share approach’. impacts of sustainability.
Operations Scope 1 greenhouse gas emissions
Open-cut mines, underground mines, offshore oil and gas Scope 1 greenhouse gas emissions are direct emissions from
production and processing facilities. operations that are owned or controlled by BHP, primarily emissions
from fuel consumed by haul trucks at our operated assets, as well
as fugitive methane emissions from coal and petroleum production
at our operated assets. Scope 1 refers to direct greenhouse gas
emissions from operated assets.

338 BHP Annual Report 2020