Sustainability Report 2008 Full Report Message From The Chief Executive Officer Over the past year, a number of emerging economies experienced strong growth. By supplying the building blocks for that growth, our industry has contributed to higher living standards and greater opportunities for millions of people. Along with host governments, business partners and employees, we work towards assisting all our key stakeholders draw value from our activities and ensure we contribute to the long-term sustainability of the communities where we operate. Despite enjoying the benefits of growth, operating a global company responsibly in an increasingly complex world presents us with a range of challenges. Marius Kloppers The rapid growth of the industry has tightened labour markets and our future depends heavily on our capacity to continue to attract great people. The Company's participation in the climate change debate is evolving, as we follow developments in the science, economics, public policy and the carbon footprint of our business. Serious health problems, such as malaria and HIV/AIDS, remain in some of our host countries and we are working to find the most effective way to help address them. We aim to develop resources for the future while respecting human rights and leaving a positive legacy. Finally, and most importantly, we feel deeply and personally any loss of life in our workplaces and the impact this has on families, friends and colleagues. For many years, we have made safety our number one priority. Despite our efforts, eleven of our colleagues lost their lives while working for us during 2007/08, five of them in a helicopter crash in Angola. Every fatality touches all of us and I am personally committed to eliminating hazards and ensuring that all our people go home safely at the end of each day. Production and financial results can never come before safety. Nor do we take the health and well-being of our people for granted. Current health priorities include reduction of a range of workplace exposures, promotion of consistent use of personal protective equipment, fatigue management and maintenance or improvement of the general health and fitness of our people. Our new five-year targets - which we report on for the first time this year - reflect our intent to further reduce the energy and greenhouse gas intensity of our business by 2012. We are working with others to find technological solutions to manage our emissions and to address the impact of our products in relation to climate change. We continue to play an important role in social development through employment and training opportunities, infrastructure provision, local business development and payment of taxes and royalties in our host countries. Our commitment continues to invest one per cent of BHP Billiton's pre-tax profits, on a three-year rolling average, in community based projects. During 2007/08, our contribution increased by $37.6 million from the previous year to $141.0 million with major resources channelled to improving access to quality education and helping to tackle major health issues, such as malaria and HIV/AIDS. Through our Matched Giving Program, a proportion of the Company's social investment was directed to organisations for which our employees are passionate. During 2007/08, the Company contributed $4.8 million to these organisations by matching employee donations, fundraising and personal volunteering. This is a significant increase from the previous year. Recognising and supporting our employees' community activities is one way to continue to attract and retain skilled people, despite tight employment conditions across the resources sector. Our standing as an employer of choice comes from the broad geographic and career opportunities we offer, along with our desire to assist people on their personal development journey and our commitment as a responsible employer. I want to recognise the ongoing efforts and commitment of our employees and contractors and thank them for their contribution to the successes BHP Billiton recorded during the year. Our Company can make a real contribution to sustainable development and poverty reduction in the world and we need to work hard to realise this potential. We truly are charged with resourcing the future - in a responsible way. Our Full Sustainability Report has been prepared in accordance with the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines. We also continue to support the UN Global Compact and we have included updates against the principles in our Full Report. We believe it provides a balanced and reasonable representation of our economic, environmental and social performance. Marius Kloppers Chief Executive Officer Contents 2008 At A Glance 1 Healthy People 56 Health, Safety, Environment and Community (HSEC) Employee Health 57 Targets Scorecard 2 Exposure Management 57 Our Profile 3 Hygiene Knowledge Base 58 2008 Key Successes and Challenges 5 Fit for Work/Fit for Life 59 External Recognition and Feedback 6 Community Health 60 Company-wide Employee HSEC Awards 7 HIV/AIDs 60 Key Sustainability Data 8 Malaria 60 Environmental Data Summary 10 2008 Health Performance 61 BHP Billiton Inputs/Outputs 12 Occupational Exposures 62 Noise 63 Our Approach to Sustainability 13 Carcinogens 64 Business Case For Sustainable Development 15 Physical Agents 64 Our Public Commitments 17 Occupational Illnesses 65 Personal Protective Equipment Compliance 67 Our Approach to Sustainability Reporting 18 Health Fines 68 Report Boundary 19 Health Case Studies 69 Materiality 21 Cutting-edge Technology to Warn of Approaching UN Global Compact Navigator 23 Drowsiness 70 Assurance 27 Making Health and Safety Data Easier to Understand 72 Our Stakeholders 31 Safe Workplaces 74 Fatal Risk Control Protocols 75 Sustainable Development Governance 37 Leadership, Behaviour and Awareness 76 Structure And Responsibilities 38 Safety Indicators 77 Sustainable Development Organisational Structure 38 Safety Incident Reporting 78 BHP Billiton Board 38 2008 Safety Performance 79 Sustainability Committee of the Board 39 Fatalities 80 Forum on Corporate Responsibility 39 Injury Frequency Rates 81 Risk and Audit Committee of the Board 39 Safety Fines 83 Global Ethics Panel 39 Fatal Risk Control Protocols 84 Executive Managements 40 Safety Case Studies 85 Corporate HSEC 40 Safety Week – Bringing Safety to the Forefront 86 HSEC Leadership Team 40 Remote Bulldozer Enhances Operator Safety 88 Hierarchy of Systems and Documents 41 Innovation to Improve Safety When Replacing Dragline Company Charter 41 Ropes 90 Sustainable Development Policy 41 Applying Technology to Make Handling Molten Metal Safer and More Efficient 91 HSEC Management Standards 41 Procedures and Guidelines 42 Key Management Processes 43 Environmental Commitment 93 Business Conduct 43 Climate Change and Energy 94 Risk Management 44 Biodiversity and Land 96 Incident Reporting and Investigation 45 Water 97 Investment 45 Wastes 98 Audit 46 2008 Environmental Commitment Performance 100 Security, Emergency Response and Business Environmental Incidents and Fines 101 Continuity 46 Environmental Spending 103 Closure and Legacy Sites 46 Climate Change and Energy 104 2008 Performance 48 Greenhouse Gases and Energy Intensity 104 Risk Management 49 Greenhouse Gas Emissions 104 Business Conduct 50 Energy Consumption 105 Audit and Self-Assessment 53 Australian Energy Efficiency Opportunities (EEO) Closure and Legacy Sites Performance 55 Program 106 BHP Billiton 2008 Full Sustainability Report i Biodiversity and Land 107 Stewardship Performance 145 Water 109 Working with Others 145 Wastes 111 Transporting Our Products Safety Environment Case Studies 114 and Responsibly 148 World’s First Power Plant to Use Coal Mine Ventilation Community Case Studies 150 Air as Fuel 115 BHP Billiton Encourages New Standards for Indigenous Hunter River Remediation – Cleaning Up More than 80 Development Opportunities in Australia 151 Years of Steel Making 117 Engaging with Local Communities in Cambodia 153 Reducing Waste and Providing Sustainable Cerréjon Coal Independent Review of Employment Opportunities 119 Social Performance 155 Illawarra Coal Makes Sydney’s Largest Volume Contributing to Social Programs Through Our Antamina Reduction in Water Use 120 Mining Fund 157 Managing Impact in Indonesia – Maruwai Coal PNG Sustainable Development Program – 2008 Update159 Project’s Biodiversity Strategy 122 Indigenous Trees For Life – Growing Money with Trees 162 Social Responsibility 124 Our People 164 Working with Communities 125 Our Approach 164 Stakeholder Relationships 125 Attraction and Retention 165 Community Engagement 125 Training and Development 166 Community Development 125 Reward and Recognition 168 Social and Economic Impacts 126 2008 Employee Relations 170 Local Communities and Customary Rights 126 Employee Profile 170 Land Compensation 127 Turnover 171 Black Economic Empowerment in South Africa 127 Diversity 171 Community Investment Strategy 128 Freedom of Association 173 Community Programs and Foundations 130 Remuneration 173 Involving Our Employees 132 Training and Development 173 Human Rights 133 Superannuation and Pension Plans 174 Our Public Commitments 133 Our People Case Studies 176 UN Global Compact Sphere of Influence 133 Recruiting for A Greenfield Operation – Ravensthorpe Self-Assessment and Management 134 Nickel Operation 177 Complaints and Grievances 134 BHP Billiton All Employee Share Plan – It’s Good to Stewardship 135 Share 179 2008 Social Responsibility Performance