Page 7 - BHP Economic Contribution Report 2020

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