Page 12 - BHP Economic Contribution Report 2020

Approach to transparency and tax continued

Our approach to risk management Location of our business activities
and governance BHP is a world-leading resources company. We extract and

Given the size, geographic scope and complexity of our process minerals, oil and gas, with more than 80,000 employees
operations, and at times, uncertainty regarding the application and contractors located primarily in Australia and the Americas.
of taxation laws, risk may arise in the determination of our Our products are sold worldwide, with sales and marketing
tax liabilities. The identification and management of risks are through Singapore and Houston, United States.
central to achieving our strategic objectives. Risk management Our global headquarters are in Melbourne, Australia. We locate
is embedded in all of our critical business activities, functions, our business activities where value is created and we do not
processes and systems through the application of a single engage in aggressive tax planning.
framework for all risks, known as our ‘Risk Framework’.
Under the Risk Framework, the Board and senior management Our commitment to transparency
(including the Executive Leadership Team) provide oversight
and monitoring of risk management outcomes. The Risk and We are proud to be a corporate leader in transparency and
Audit Committee assists the Board with the oversight of risk have a long-standing record in that regard. We first disclosed
management, including tax and royalty related matters. In our aggregate payments of taxes and royalties in 2000 and
addition to the Risk Framework and our global tax principles, since then, have continually provided all required disclosures
we have internal standards that clearly set out our approach in line with our commitment to globally transparent and
to tax risk management, the level of risk the Group is prepared consistent taxation reporting.
to accept and escalation points and procedures. BHP’s Tax We continue to disclose important information in relation
function is subject to regular internal review and audits to our operations, including reconciliation data, comparative
to provide assurance over compliance with these standards. data from prior years and further information regarding our
For information on our Risk Framework, refer to section 1.5.4 in approach to tax risk management and governance. We also
our Annual Report 2020. We also set out our approach to tax support the voluntary publication of country-by-country reports
risk management and governance in ‘Our tax strategy’ on our that contain detailed quantitative data, such as revenue from
website at bhp.com. related and unrelated parties, profit/(loss) before tax and number
of employees for each country in which a subsidiary entity
of a corporate group is a tax resident. We will publish our
country-by-country data for FY2019 on our website at bhp.com.
Being open about the taxes and royalties we pay to
governments is in the best interests of our shareholders,
employees, customers, the communities where we operate
and other stakeholders.

10 BHP Economic Contribution Report 2020