Page 76 - Annual Report 2020

1.7.11 Independent limited assurance report

Independent Assurance Report to the Management and Directors of BHP Group Limited
and BHP Group Plc (BHP)

Our Conclusions
– Limited Assurance
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that suggests that BHP’s
Sustainability data and disclosures and Asset Level Water Stewardship disclosures reported in the Sustainability KPI table in section 1.4.8, sections 1.6, 1.7,
and 6.6 of BHP’s Annual Report for the year ended 30 June 2020 (the Report) have not been prepared in accordance with the Criteria defined below.
– Reasonable Assurance
In our opinion, the Scope 1 and 2 greenhouse gas emissions, as reported in section 1.7.8 and 6.6.4 of BHP’s FY20 Annual Report are prepared, in all
material respects, in accordance with the Criteria defined below.
What we assured The procedures we performed were based on our professional judgement
Ernst & Young (EY) was engaged by BHP to provide limited assurance over and included, but were not limited to, the following:
the following information in accordance with the noted criteria: • Interviewing select corporate and site personnel to understand the
reporting process at group, business, asset and site level, including
What we assured (Subject Matter) What we assured it management’s processes to identify BHP’s material issues
against (Criteria) • Reviewing BHP policies and management standards to determine
BHP’s FY20 Sustainability data and • International Council on Mining alignment with the ICMM’s 10 Sustainable Development principles and
disclosures reported in the and Metals (ICMM) Sustainable position statements
Sustainability KPI table in section Development Framework • Checking the Report to understand how BHP’s identified material risks
1.4.8, sections 1.6, 1.7, and 6.6 Subject Matters 1 to 4 and opportunities are reflected within the qualitative disclosures
of BHP’s FY20 Annual Report • Management’s own publicly • Evaluating whether the information disclosed in the Report and related
disclosed criteria disclosures is consistent with our understanding of sustainability
• Global Reporting Initiative management and performance at BHP
(GRI) Standards • Evaluating the suitability and application of the Criteria and that the
• Sustainability Accounting Criteria have been applied appropriately to the Subject Matter
Standards Board (SASB) Mining • Conducting virtual site procedures at eight BHP locations to evidence
and Metals Standard site level data collection and reporting to Group as well as to identify
BHP’s Sustainability policies and ICMM Subject Matter 1 completeness of reported water and emission sources
standards and their alignment to • Undertaking analytical procedures of the quantitative disclosures in the
the ICMM Sustainable Development Report and related online disclosures
Principles (2015) and mandatory • Reviewing data, information or explanation about the sustainability
position statements performance data and statements included in the Report and related
BHP’s identification and reporting ICMM Subject Matter 2 online disclosures
of its material risks and • Reviewing other information within BHP’s Annual Report for consistency
opportunities within the Report and and alignment with our assurance subject matter
online at bhp.com/sustainability • On a judgemental sample basis, reperforming calculations to check
BHP’s implementation of systems ICMM Subject Matter 3 accuracy of claims in the Report
and approaches to manage its • On a sample basis, based on our professional judgement, agreeing
material risks and opportunities claims to source information to check accuracy and completeness
Water stewardship reporting, ICMM guidance and of claims, which included invoices, incident reports, meter calibration
records, and meter data
at an asset level, in BHP’s FY20 minimum disclosure Standards:
Annual Report and the water A Practical Guide to Consistent • For our reasonable assurance scope, selecting key item and
risk assessment online at Water Reporting representative sampling, based on statistical audit sampling tables and
bhp.com/water agreeing claims to source information to check accuracy and
completeness of claims, which included invoices, metre calibration
In addition, we were engaged by BHP to provide reasonable assurance records and metre data.
over the following information in accordance with the noted criteria: We believe that the evidence obtained is sufficient and appropriate to
provide a basis for our reasonable and limited assurance conclusions.
What we assured (Subject Matter) What we assured it Other Matters
against (Criteria) We have not performed assurance procedures in respect of any
Scope 1 and 2 Greenhouse • World Resource Institute/ information relating to prior reporting periods, including those presented
Gas emissions as reported in World Business Council for in the Report, other than disclosures relating to BHP’s 2019 Sustainability
section 1.7.8 and 6.6.4 of BHP’s Sustainable Development Report. Our report does not extend to any disclosures or assertions made
Annual Report (WRI/WBCSD) Greenhouse by BHP relating to case studies and future performance plans and/or
Gas Protocol strategies disclosed in the Report.
• BHP’s Basis of Preparation While we considered the effectiveness of management’s internal controls
when determining the nature and extent of our procedures, our assurance
Key responsibilities engagement was not designed to provide assurance on internal controls.
EY’s responsibility and independence Our procedures did not include testing controls or performing procedures
Our responsibility was to express limited and reasonable assurance relating to checking aggregation or calculation of data within IT systems.
conclusions on the noted subject matter as defined in the ‘what we Limited and Reasonable Assurance
assured’ column in the tables above (Subject Matter). Procedures performed in a limited assurance engagement vary in nature
We were also responsible for maintaining our independence and confirm and timing from, and are less in extent than for, a reasonable assurance
that we have met the requirements of the APES 110 Code of Ethics for engagement. Consequently, the level of assurance obtained in a limited
Professional Accountants including independence and have the required assurance engagement is substantially lower than the assurance that
competencies and experience to conduct this assurance engagement. would have been obtained had a reasonable assurance engagement
BHP’s responsibility been performed.
BHP’s management was responsible for selecting the Criteria and While our procedures performed for our reasonable assurance engagement
preparing and fairly presenting information presented and referenced in are of a higher level of assurance, due to the use of sampling techniques,
the Report in accordance with that Criteria. This responsibility includes it is not a guarantee that it will always detect material misstatements.
establishing and maintaining internal controls, adequate records and Use of our Assurance Statement
making estimates that are reasonable in the circumstances.
Our approach to conducting the Review We disclaim any assumption of responsibility for any reliance on this
assurance report to any persons other than management and the Directors
We conducted our procedures in accordance with the International of BHP, or for any purpose other than that for which it was prepared.
Federation of Accountants’ International Standard for Assurance Our Review included web-based information that was available via web
Engagements Other Than Audits or Reviews of Historical Financial links as of the date of this statement. We provide no assurance over
Information (ISAE 3000), the Standard for Assurance on Greenhouse Gas changes to the content of this web-based information after the date
Statements (ISAE 3410) and the terms of reference for this engagement as of this assurance statement.
agreed with BHP on 17 December 2019 and amended on 19 March 2020.
We adapted our approach to undertaking our review procedures in
response to the COVID-19 travel restrictions and social distancing
requirements. We did not visit any BHP sites in person and instead
undertook site-based procedures by phone and videoconference.
The performance of the year end corporate review procedures at head Ernst & Young Mathew Nelson
office was also required to be conducted remotely and was supported Melbourne, Australia Partner
through the use of collaboration platforms for discussions and delivery
of requested evidence. 3 September 2020
74 BHP Annual Report 2020