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Community Development Report 2020 Our Purpose Is to Bring People and Resources Together to Build a Better World

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Community Development Report 2020 Our Purpose Is to Bring People and Resources Together to Build a Better World Western Australia Iron Ore Community Development Report 2020 Our purpose is to bring people and resources together to build a better world. Our strategy is to have the best capabilities, best commodities and the best assets, to create long-term value and high returns. BHP is successful when it increases social value. This is when communities, customers and suppliers value their relationship with us. Contents Introduction 2 Indigenous development 5 Indigenous employment 7 Our response to COVID-19 12 Our Vital Resources Fund 14 Local Buying program 18 Focus On: Port Hedland 22 Focus On: Newman 25 BHP across Western Australia 27 Workforce diversity and inclusion 30 Training and employment 31 Community Development Report 2020 1 Introduction Message from the Asset President, Brandon Craig About BHP We are a leading global resources company. FY20 Highlights Our principal iron ore operations are BHP manages and operates Our State Agreements continue based in the Pilbara region of Western to deliver significant community Australia and comprise of an integrated Western Australia Iron Ore as and social benefits year-on-year system of four processing hubs and five a single integrated business through our ongoing investments in A$295.2m mines, connected by more than 1,000 on behalf of long standing infrastructure and services, many of kilometres of rail infrastructure and two international joint ventures. which are developed and delivered in Total community port facilities located at Port Hedland. partnership with the communities in which we operate. development expenditure in FY20, includes social BHP Iron Ore has contributed $A3.6 billion in social and community investment, training, Indigenous contracting This Community Development BHP established a A$50 million investment over the last nine years. and community overview summarises BHP WA Vital Resources Fund to support Iron Ore’s investments in delivering regional Australian communities infrastructure. community and social benefits over facing challenges from COVID-19 the past financial year. with local employment, health services and other community In the 2020 financial year (FY20), requirements. our total community development expenditure in Western Australia was In March, we stepped up by A$88.8m over A$295 million. employing 1,500 additional people on six-month contracts across We saw a significant This brings our total investment in Australia, with about 450 of these Western Australia over the past nine jobs in Western Australia. This increase of nearly years to in excess of decision provided us with additional 180% - to A$88.8m - A$3.5 billion. people to implement controls within our operations to prevent the on local content from This report provides an overview spread of COVID-19. FY19. of a range of community initiatives and partnerships which benefit host communities in Port Hedland, Newman In Newman and Hedland we and across Western Australia. It is with the support of host communities and worked with local businesses governments that WA Iron Ore has and residents to provide A$13.7m grown to become one of the world’s leading iron ore resource businesses. employment opportunities in critical roles to support our Our Local Buying It is important to us that our presence continued operations. Program spend more in these communities leaves a lasting positive impact, extending beyond than doubled, with a the substantial economic benefits our A$13.7m increase. operations deliver for the Western We implemented strict physical Australian community. distancing controls and hygiene practices to prevent any potential spread of COVID-19 in the In this together communities in which we operate. In the last year, COVID-19 changed To everyone who has helped make the way we live and the way we a difference in our communities, Considerable growth work. thank you. in the number of However, throughout the pandemic, Brandon Craig BHP-considered we continue to persevere as a Asset President community. Traditional Owner WA Iron Ore businesses directly It has taken a collective effort from engaged. everyone who calls the Pilbara home or chooses to work here, to make sure we’ve done what’s best for our families and communities. 2 BHP Community Development Report 2020 3 Our approach to creating long-term social value Indigenous Development We integrate social value into our Social value is the positive contribution The longevity of BHP’s assets means we decision-making and actions by we make to the environment and must think and plan in decades. When considering the needs of our many society – our workforce, partners, we invest in a region, we become an stakeholders and finding solutions that customers, economies and intrinsic part of the local community create mutual benefit. communities. for the long term and that is why social value is an important part of the way we do business. WA Iron Ore’s Social Value Strategy Key Priorities People, Culture Community Environment & Procurement & Capability & Society Climate Change & Supply Entry Pathways Accommodation and Greenhouse Gas Local and Infrastructure Indigenous Female Participation Water Stewardship Procurement Indigenous Air Quality Representation Business as Usual Enablers Social Investment, Collective Impact Projects, Leadership, Listening and Research, Risk Management, Communications and Advocacy Our vision for reconciliation We recognise and understand that Indigenous Australians have profound and special connections to, and identification with, lands and water, and these are tied to their physical, spiritual, cultural and economic well-being. Wherever we operate around the Our commitment remains resolute By providing sustainable opportunities world, BHP will respect the rights of and we will continue to maximise the in education, employment and business Indigenous peoples; and contribute to contribution we believe we can make to for Aboriginal and Torres Strait Islander their sustainable long-term economic the lives of Aboriginal and Torres Strait peoples, we seek to create long-term empowerment, social development Islander peoples. social value. priorities and cultural wellbeing. Community Development Report 2020 5 BHP’s Indigenous Peoples Strategy Indigenous Employment Governance Economic empowerment Indigenous peoples will derive significant BHP will contribute to the economic and sustainable benefit from BHP operations empowerment of Indigenous peoples through through the effective governance and providing opportunities for employment, management of land access, cultural training, procurement and Indigenous heritage, agreement making and benefit enterprise support. distribution processes. Outcomes Social and cultural support Public engagement BHP will contribute to improved quality of life BHP will contribute to specific initiatives, for Indigenous peoples, through voluntary programs and public policy processes which social investment, promotion of Indigenous advance the interests of Indigenous peoples culture and building the Indigenous cultural consistent with the BHP Indigenous Peoples awareness of our workforce. Policy Statement. Our approach to heritage BHP agreements with Traditional Owners in Australia We continue to strengthen BHP views its relationship Relationships are fundamental and In the case of the South Flank project, WA Iron Ore Indigenous Employment should reflect the deep respect that BHP and the Banjima people have set pathways into the business with Traditional Owners as BHP holds for Indigenous people and up a Heritage Advisory Council, and we for Indigenous people. partnerships based on mutual their cultural heritage. will speak to other Traditional Owners, respect and trust. to understand the best approach for • The ramp up of South Flank 2019 2020 We seek to raise awareness of the them. has seen strong results with importance placed on management of 73 Indigenous employees We have listened to Indigenous leaders cultural heritage matters by BHP and We have also commenced a program representing 14.7% of the Employees from around our operations, and at a Traditional Owners and build on our of consultation to ensure we continue workforce. state and national level. existing processes. to meet their expectations in relation • This is also reflected in to the preservation and storage of leadership roles where nine We have sought to clarify our BHP has confirmed to Traditional artefacts. commitment to cultural heritage Indigenous employees 731 857 Owners that, consistent with its normal management and take on learnings that processes, BHP will not act on existing These clarifications are consistent (15%) are leaders. can strengthen our approach. section 18 approvals from the WA with BHP’s commitment to Free Prior • We diversified our entry Core Contractors Government without further extensive Informed Consent set out in the BHP level program with six consultation. Indigenous Peoples Policy Statement Indigenous employees and BHP Indigenous Peoples Strategy. who have commenced a two-year traineeship in Project Management and seven who 27 131 are undertaking a two-year traineeship to qualify as Emergency Services Officers. Representation of workforce • 30.5% of current apprentices and trainees are Indigenous. 9.20% 10.70% 6 BHP Community Development Report 2020 7 Case Study Case Study Female Indigenous employment Indigenous business Changing the landscape of BHP Working with BHP – an Indigenous supplier perspective Indigenous women who have Through the 2020 Reconciliation BHP has also established a target of Aboriginal
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