Page 6 - Annual Report 2020

1.1 Chair’s Review

Dear Shareholder,
I am pleased to provide our Annual Report for FY2020. Lindsay Maxsted will retire from the Board on 4 September 2020,
The COVID-19 pandemic continues to have a profound impact in and Shriti Vadera will be retiring from the Board following the
2020 Annual General Meetings. Shriti and Lindsay have been highly
our host nations and markets around the world. It has tested the
resilience of millions of lives and livelihoods, as well as healthcare regarded members of the Board since 2011, with Shriti serving as
the Senior Independent Director since 2015, and Lindsay serving
systems and economies in ways we could never have imagined. as Chair of the Risk and Audit Committee. We have benefited greatly
Despite the unpredictable nature of the pandemic, BHP’s response from Shriti’s and Lindsay’s extensive experience and I would like
has remained strong. Our people stepped up and quickly adopted to thank them for their invaluable contribution and commitment
measures to keep themselves, their families and the communities to BHP.
where we operate, safe and well. Their steadfast commitment has FY2020 was a year where we worked hard to integrate social value
meant we have been able to keep our operations running safely
and continue to contribute to local economies, through the jobs into every decision we make. BHP’s immediate response to the
pandemic, under decisive direction from Mike and his leadership
we create and the taxes and royalties we pay. team, has been clear from day one. From creating hundreds of
BHP’s relentless focus on our five priority areas – safety; portfolio; operational jobs across our Minerals Australia business, to providing
capital discipline; culture and capability; and social value – has funding that has directly benefited communities where we have
enabled us to meet the global challenges of the crisis from a a presence around the world, and accelerating payments for our
position of strength and to deliver a strong set of financial results small, local and Indigenous suppliers, BHP has continued to step
in FY2020. The outstanding efforts of our teams, our high-quality up and play our part.
portfolio and disciplined approach to capital allocation enabled
the Board to declare US$1.20 per share in dividends for the year. Taking actions that make a difference also extends to BHP’s
commitment to address climate change and progress made
The health and safety of our people remains the highest priority. through our Climate Investment Program, as outlined in the
We recorded no fatalities at our operations during the year and BHP Climate Change Report 2020. We have set a medium-term
have had fewer frequent safety events with the potential to cause target to reduce our Scope 1 and Scope 2 operational emissions
a fatality. However, there is no room for complacency and we must by at least 30 per cent by FY2030 (from FY2020 levels ). We
(1)
continue to push for exceptional safety performance every day. also have set clearly defined Scope 3 emissions goals for 2030
We continue to invest and plan for the future while at the same time to support industry to develop technologies and pathways
delivering strong cash returns to our shareholders. Similarly, our capable of 30 per cent emissions intensity reduction in integrated
commodity portfolio has remained resilient throughout FY2020. steelmaking, with widespread adoption expected post-2030,
We believe our products will play an essential role in a decarbonising and to support 40 per cent emissions intensity reduction of
world and will help us grow value for many decades to come. BHP-chartered shipping of our products.
The Board appointed Mike Henry as BHP’s new Chief Executive While the challenges of the pandemic are likely to remain for some
Officer (CEO) in January, replacing Andrew Mackenzie. Mike time to come, I am confident our disciplined and focused approach
has long been a strong advocate for the resources industry, will create value for shareholders and make a positive contribution
driving higher standards of safety and contributing to our local to society for many years to come.
communities and global stakeholders. He is committed to Thank you for your continued support of BHP.
unlocking and accelerating greater value in our assets and
operations. In doing so he will make BHP safer, leaner, high
performing and future fit. Andrew was instrumental in turning
BHP into a simpler and more productive company, and one
that is financially stronger and sharply focused on value for Ken MacKenzie
shareholders and society. I would like to thank Andrew for his Chair
outstanding contribution as CEO.
We also continued to take a rigorous and structured approach
to our Board renewal process. Gary Goldberg joined the Board in
February, and Dion Weisler joined the Board in June. As announced
in May, we also look forward to Xiaoqun Clever joining the Board
in October.

(1) FY2020 baseline will be adjusted for any material acquisitions and divestments based on greenhouse gas emissions at the time of the transaction. Carbon offsets
will be used as required.
4 BHP Annual Report 2020