Page 7 - BHP Economic Contribution Report 2020
P. 7

Summary of payments made                                                                                 Our contribution
           BHP’s contribution to the global economy is significant.


           In FY2020, our total direct economic contribution was   This investment typically has a multiplier effect by creating
           US$37.2 billion, including payments to suppliers, wages    new jobs within our operations and also for the suppliers on
           and employee benefits, dividends and other payments    whom they rely. For example, refer to our Western Australia Iron
           to shareholders, taxes and royalties, as well as voluntary    Ore case study on page 8 of this Report.   Our approach
           social investment across the communities where we operate.   In addition, we reduced our payment terms from 30 days
           Of this, we paid US$9.1 billion globally in taxes, royalties    to seven days for over 1,500 small, local and Indigenous
           and other payments to governments. Our global adjusted   businesses as part of a program to support communities
           effective tax rate was 33.2 per cent. Including royalties, this   and regional economies during the COVID-19 pandemic.
           increases to 42.2 per cent. This significant source of taxation   The accelerated payment program delivered over US$80
           revenue assists governments to provide essential services    million more quickly into the hands of our small business
           to their citizens and invest in their communities for the future.  partners. BHP also hired approximately 1,500 contractors
           During FY2020, we paid US$8.6 billion to shareholders,    on six-month contracts to support its Australian operations
           lenders and investors.                              during this difficult time.                          Our payments
           As well as our direct economic contribution, we invested
           US$7.6 billion into our business through the purchase of
           property, plant and equipment and expenditure on exploration.




           Total economic contribution in FY2020

           Suppliers   (1)                                                                                          Additional information

           Payments made to our
           suppliers for the purchase     US$15.5b
           of utilities, goods and services



           Employees   (1)
           Employee expenses for salary,
           wages and incentives            US$3.9b



           Shareholders, lenders                                                              Total economic
           and investors                                                                      contribution

           Dividend and
           interest payments               US$8.6b
                                                                                              US$37.2b

           Total payments
           to governments
           Income taxes, royalty-related
           income taxes, royalties and      US$9.1b
           other payments to governments



           Social investment   (1) (2)
           Contributions and
           administrative costs           US$150m



           Figures are rounded to the nearest decimal point or the nearest million.
           (1)  Calculated on an accrual basis.
           (2)  Total social investment includes community contributions and associated administrative costs (including US$1 million to facilitate the operation of the BHP
             Foundation) and BHP’s equity share in community contributions for operated and non-operated joint ventures. Our social investment target is not less than 1 per cent
             of pre-tax profits invested in community programs, including cash and administrative costs, calculated on the average of the previous three years’ pre-tax profit.
                                                                                      BHP Economic Contribution Report 2020  5
   2   3   4   5   6   7   8   9   10   11   12