Page 72 - Annual Report 2020

1.7.9 Community continued
Our FY2020 social investment increased by 60 percent compared We recognise we have the potential to directly impact, contribute
with FY2019 as a result of a higher 1 per cent commitment (calculated to or be linked to human rights impacts on people. This is through
on a three year rolling average) and our investments to support the our active operations, closed and legacy assets, value chain
COVID-19 response and recovery efforts across our locations. activities and relationships with business partners. We continued to
In line with our Social Investment Framework, we support projects work collaboratively with stakeholders in FY2020 to understand the
rights most at risk by our activities and to build awareness across
that enhance human capability and inclusion through increasing
the number of people with improved health and wellbeing, access our functions and operated assets about respecting rights.
to quality education and vocational training, and enhanced Human rights is a Group Risk within the Environment, climate
livelihood opportunities. Through our social investment change and community Group Risk category under our Risk
contribution, more than 427,000 students participated in Framework. In FY2020, we revised human rights risk assessments
community projects and 1,747 people received job-related training for our Global Asset Services office in Manila and completed
through our community partners. More than 840 scholarships a human rights risk assessment at a major Australian project.
were awarded, including 465 to young Indigenous peoples and The application of our risk identification, assessment and
436 to young women. management processes in FY2020 considered potential scenarios,
We aim to contribute to enduring environmental and social benefits including security, supply chain, and labour conditions, which may
in addition to the dedicated work of our HSE team through lead to a breach of human rights. Also in FY2020, we continued our
biodiversity conservation, water stewardship and climate change pilot of a globally consistent methodology for human rights impact
mitigation and adaptation. Through our social investments assessments (HRIA) across several locations, including legacy sites,
12,300 hectares of land was managed for conservation. and work commenced on HRIAs for WAIO and in Minerals
Americas. Although HRIAs may identify potential impacts to
We aim to contribute to good governance with a focus on reducing be considered in human rights assessments, they are separate
corruption, enhancing transparency and strengthening institutions. processes from those risk assessments and include engagement
Through our investments, almost 770 non-government and with external stakeholders.
community-based organisations and more than 790 small
businesses participated in capacity building activities, and 143 of As a result of the need to cease face-to-face engagement with
communities during the COVID-19 pandemic, the HRIA conducted
these were Indigenous organisations. In addition, 21 organisations
we partner with received dedicated anti-corruption training. for WAIO did not include a site visit or focus group engagement
activities. Recognising that the standard HRIA process requires
Crisis response and disaster relief inclusion of these engagement practices with external
FY2020 saw challenges to the health and livelihoods of stakeholders, we have conducted interviews through web-
communities across the world. We work closely with communities conferencing and included additional questions in the WAIO
to understand where our efforts to support response and resilience community perception survey to inform the HRIA with the
initiatives are best placed during an emergency event. For perspectives of community members, suppliers and other key
information about our social investment initiatives in response to stakeholders. Our operated assets are required to complete HRIAs
the social unrest in Chile, the Australian bushfires, the COVID-19 at least every three years (and review them whenever there are
pandemic and the Black Lives Matter movement, refer to section changes that may affect the impact) and we plan to complete them
1.4.6 and bhp.com/sustainability. across our operated assets during FY2021.
Local economic growth In FY2020, no resettlements or physical or economic displacement
We support the growth of local businesses in the regions where of families and communities occurred as a result of the activities of
our operated assets.
we operate and are committed to sourcing and promoting locally
available products and services. Our operated assets develop local Our risk of an actual or perceived failure to prevent or mitigate an
procurement plans that identify opportunities for local suppliers, adverse human rights impact linked to BHP’s supply chain (directly
including small businesses, to deliver capacity building and or indirectly), including maritime activities, was reviewed in
employment creation initiatives. These initiatives are designed FY2020. For more information, refer to our Modern Slavery
to be sustainable post BHP’s presence in the region. Statement FY2020 available at bhp.com.
During FY2020, 12 per cent of our total external expenditure was Relevant internal practitioners worked closely with our Commercial
with local suppliers. An additional 84 per cent of our supply function to include human rights in the program of work to design
expenditure was located within the regions in which we operate. and implement our value chain sustainability strategy (refer to
Our expenditure with local suppliers in FY2020 was mostly in Chile section 1.7.7). This looked at opportunities to leverage relationships
with customers, suppliers and business partners to enhance
(15 per cent), Australia (11 per cent), the United States (9 per cent) recognition of human rights across their activities alongside other
and Trinidad and Tobago (2 per cent). These percentages are sustainability issues, including climate change and environment.
of our total external expenditure within that context.
In addition to procuring locally, where possible, we employ local In FY2020, we released our human rights training video, available
for people across our workforce and business partners. Human
people (refer to section 1.6.1) and support broader regional and rights training is currently mandated for our Corporate Affairs team
national economies by paying taxes and royalties. including Community and Indigenous Affairs, Government
Human rights Relations and Communications teams and the Procurement and
We are committed to respecting internationally recognised human Maritime and Supply Chain Excellence teams in our Commercial
rights as set out in the Universal Declaration on Human Rights function. The training is made available within BHP’s internal
and the Voluntary Principles on Security and Human Rights, and training system and publicly available at bhp.com.
operating in a manner consistent with the UN Guiding Principles Modern slavery
on Business and Human Rights and the UNGC Ten Principles. In FY2020, BHP participated in multi-industry forums to work
Our Code of Conduct sets the standards of behaviour and towards reporting under the new Australian modern slavery
commitments for our people, as well as our contractors, suppliers legislation. Our Modern Slavery Statement FY2020, prepared under
and others who perform work for BHP (when under relevant the UK Modern Slavery Act (2015) and the Australian Modern
contractual obligations). Our Human Rights Policy Statement sets Slavery Act (2018), is available at bhp.com. The Statement outlines
out our expectations of our people, business partners and other BHP’s detailed approach to understanding and identifying and
relevant parties to respect human rights. The commitments in managing modern slavery and human trafficking risks in our supply
Our Code of Conduct and Human Rights Policy Statement are chain and own operations.
implemented through mandatory minimum performance
requirements in the Our Requirements standards.

70 BHP Annual Report 2020