Page 65 - Annual Report 2020

1.7.7 Value chain sustainability 1

Promoting sustainability in our value chain
As a leading global resources company, we strive to work with our customers, suppliers and other value chain participants to promote
sustainable practices across the full life cycle of our products.
BHP’s value chain sustainability strategy takes a systems approach, designed to assess and work with others to improve the sustainability Strategic Report
impacts of our upstream supply chains, inbound and outbound logistics, and our products as they move through the value chain from
extraction, processing and use. We can broadly categorise value chain sustainability activities across our value chain as follows:
Responsible Actions to integrate sustainability considerations into our inbound and outbound supply chains
sourcing: (including shipping)

Process Actions to help ensure the sustainability performance of our operated assets meets the
stewardship: responsible sourcing expectations of the market Governance at BHP
Product Actions to influence the sustainability performance of our downstream value chain where
stewardship: we do not have operational control

Our value chain sustainability strategy seeks to identify and improve performance across a wide range of relevant issues, including
people, environment and communities. In determining where to focus, we consider financial impact as well as environmental and social
materiality. Priority areas (see below) have been identified and are aligned with BHP’s social value priorities.

People Environment Community Remuneration Report

• Occupational health and safety • Greenhouse gas and air emissions • Indigenous peoples
• Inclusion and diversity • Water stewardship • Local community development
• Ethical supply chain • Waste management Directors’ Report

Responsible sourcing COVID-19
We encourage the suppliers we work with to put sustainability COVID-19 has brought with it a number of human rights challenges
at the heart of their operations. We are focused on how we can throughout the value chain. During the pandemic, the welfare of
support suppliers and service providers to adopt sustainable workforces and communities, in particular vulnerable populations,
business standards in health, safety, human rights, anti-corruption has been the primary challenge while ensuring business continuity.
and environmental protection that are in line with our own. Seafarers are already particularly vulnerable workers globally, and
Contractors working at our operated assets are required to comply the COVID-19 pandemic has exacerbated the challenges faced by
with our our health, safety and environment (HSE) standards. We these workers. During the pandemic, this workforce has faced the
also look for opportunities to minimise safety, health, human rights, closure of borders and reduction in flight availability, resulting in Financial Statements
environmental and climate impacts throughout our value chain. some crew members being unable to join their vessel or to return
We take a risk-based approach to identify potential suppliers home for extended periods. In the early stages of the pandemic,
for more in-depth assessment of their compliance against BHP and relevant regulatory authorities worked closely to enable
our requirements. The approach is based on a combination humanitarian assistance to be provided to seafarers.
of questionnaires, due diligence and third party data. We responded, for example, by supporting the seafarers centre in
In FY2019, the foundations of our Ethical Supply Chain and Port Hedland, Australia, to reopen in conjunction with regulatory
authorities and clarified and encouraged shore leave requirements
Transparency program were developed and tested through the
completion of a pilot program. The full program was launched (as put in place by the Australian state governments) to be upheld.
In addition, we worked with appropriate authorities to support a
in May 2020 and now forms the primary preventative control
to manage the risk of a human rights breach within BHP’s supply process for the timely provision of medical attention to seafarers, Additional information
including those with suspected COVID-19. We recognise that
chain. The program applies to all suppliers of non-traded goods
and services to BHP. This program is critical to the sustainable seafarer welfare continues to be impacted by the pandemic
and we are working to identify how BHP can further contribute
operation of our business, but also to our responsibility to work
with our suppliers and contractors to manage risks that human to support these vulnerable people.
rights abuses present through our value chain. We are committed
to working with our suppliers to enhance their understanding
of our Ethical Supply Chain and Transparency processes, which
includes taking steps to encourage them to improve management
of human rights risks (including modern slavery) among
subcontractors and across their own supply chain.
At BHP, we take a collaborative approach with our suppliers Shareholder information
to maintain our commitment to sustainable operations. As an
example, we participate in the ICMM’s Innovation for Cleaner Safer
Vehicles program, which aims to introduce GHG emission-free
surface mining vehicles by 2040.

BHP Annual Report 2020 63