Page 62 - Annual Report 2020

1.7.6 Environment continued

Rehabilitation and closure We apply BHP’s Risk Framework to our closure management
In recognition of the potentially significant financial, environmental, process to appropriately identify and manage closure risks (both
climate-related and social risks associated with future closure threats and opportunities) in our closure management plans. Our
of our operations, we are committed to integrating closure and closure management plans are also required to include long-term
rehabilitation into our planning, decision-making and activities monitoring to verify that any controls implemented are effective
through the entire life cycle of our assets. and performance standards are achieved and maintained after
operations cease.
BHP’s closure objective is to deliver optimised closure outcomes
for our operated assets in consultation with local communities We regularly review our process to progressively close and
and other stakeholders. Optimised closure outcomes are those rehabilitate areas that are no longer required for operational
that minimise adverse impacts and maximise post-closure value. purposes and update our closure management plans and practices
We implement our objective by following the closure management as required with knowledge obtained from on-site experience
process, which is designed to produce an optimised closure across our business and leading practice from the global industry.
management plan that is integrated into our operational plans. We report annually on the status of land disturbance
In addition to compliance with legal requirements, our closure and rehabilitation.
management process takes into consideration our values,
commitment to safety, and technical and economic achievability. More information on our approach to closure
We develop site-specific closure management plans for our is available at bhp.com/sustainability.
operated assets that are designed to deliver enduring
environmental and social benefits. Contributing to a resilient environment
The closure outcome for a site may include one or a combination BHP recognises we have a broader role to play in contributing
of alternative land use (including for enduring environmental and to environmental resilience. We achieve this through our social
social benefits), ongoing management, relinquishment or investment strategy and work with strategic partners and
responsible divestment. As part of the closure management communities to invest in voluntary projects that contribute
process, BHP operated assets are required to prepare and maintain to the management of areas of national or international
a closure management plan that balances business and external conservation significance.
stakeholder interests and meets the following closure objectives:
• comply with our obligations, legal requirements and BHP We have committed more than US$78 million to biodiversity
conservation since 2011, through our alliance with Conservation
mandatory minimum performance requirements for closure International and other partners. We look for projects that can
• achieve safe and stable outcomes provide multiple benefits, such as contributing to water quality
• effectively manage risks (both threats and opportunities) or quantity, nature-based solutions to climate change and local
• meet approved target environmental outcomes by following the livelihoods or cultural benefits, in addition to contributing to
Our Requirements for Environment and Climate Change standard biodiversity conservation.
• progressively reduce obligations, including progressive closure
of the area disturbed by our operational footprint More information on initiatives we have contributed
• manage and optimise closure costs to is available at bhp.com/sustainability.
Information about BHP’s financial provision related to rehabilitation
and closure liabilities is available in note 14 ‘Closure and
rehabilitation provisions’ in section 5.

60 BHP Annual Report 2020