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Value chain sustainability

Our role as a supplier and customer means it is important we have a coordinated and integrated approach to sustainability for our value chain. We strive to work with our customers, suppliers and other stakeholders in the value chain across our operations to create social value through sustainable practices across the full life cycle of our products.

Our ambition

In June 2022, we launched our social value scorecard with 2030 goals, metrics and milestones. We believe it will enhance our opportunity to run our business in a way that delivers long-term, sustainable value to BHP, our shareholders and the broader community.  

Elements of our 2030 goals, metrics and short-term milestones include a focus on value chain sustainability, such as Responsible supply chains and Decarbonisation. For more information refer to the Sustainability approach webpage.  

Our approach and position

BHP takes a systems approach to value chain sustainability, designed to assess and work with others to improve the sustainability impacts of our upstream supply chains, inbound and outbound logistics, and our products as they move through extraction, processing and use.  

We broadly categorise value chain sustainability as:  

  • Responsible sourcing – integration of sustainability considerations into procurement and logistics in our inbound supply chain and shipping 
  • Process stewardship – meeting the responsible production and sourcing expectations of the market across our operated assets  
  • Product stewardship – influencing the sustainability performance of our downstream value chain where we do not have operational control  

Our sustainability standards strategy defines our pathway for the implementation of responsible production and sourcing standards. The strategy is focused on the foundations needed to enable a more effective adoption of standards to better position BHP’s participation in the sustainability standards landscape.  

The standards that form part of our strategy are:  

  • the Copper Mark  
  • the London Metal Exchange (LME) Policy on Responsible Sourcing of LME-Listed Brands  
  • the International Council for Mining and Metals (ICMM) Mining Principles and associated Performance Expectations  
  • the Global Industry Standard on Tailings Management  
  • Towards Sustainable Mining (TSM)

Value chain sustainability

Responsible supply chains is one of our six social value framework pillars, with our 2030 goal being to create sustainable, ethical and transparent supply chains together with our partners.

The following programs of work support our progress towards this goal and indirectly support other pillars in our social value framework. These programs do not cover the full value chain and are intended to focus on the core aspects of the value chain over which BHP is able to exercise a greater degree of control and/or influence, namely the responsible sourcing and production of minerals and metals.

  • Responsible sourcing
    We encourage the suppliers we work with to put sustainability at the heart of their business. The supply chain for our global operations includes skilled labour, miscellaneous services and supply of raw, direct and indirect materials. For procured goods and services, we engage our suppliers through a commercial framework that is aligned with Our Values and our ethical practices. 

    We are focused on how we can support suppliers and service providers to adopt sustainable business standards in health, safety, human rights, anti-corruption, environmental protection and climate-related measures that are in line with our own. Contractors working at our operated assets are required to comply with our health, safety and environment (HSE) standards. We also look for opportunities to prevent and minimise adverse safety, health, human rights, environmental and climate impacts in our value chain.  

    We manage our relationships through relevant contractual arrangements, applicable regulatory frameworks, Our Values, Our Code of Conduct (Our Code) and our Global Standards (previously the Our Requirements standards). Our Minimum requirements for suppliers provides the framework that our suppliers of non-traded goods and services must comply with to satisfy our HSE and business conduct minimum requirements. Non-traded goods and services are all goods and services that are not part of BHP’s finished product portfolio, for example, raw materials and associated supporting services (such as export shipment).  

    We take a collaborative and risk-based approach in managing our supply chains, which incorporates considerations such as geography, industry and the commercial relationship. If required, we engage with suppliers in relation to applicable standards throughout the relationship. We also support suppliers from communities where we operate to help them meet our standards, build their capabilities and generate local employment.  

    Through our Ethical Supply Chain and Transparency program, we take a risk-based approach to managing modern slavery risks in our supply chain and conducting due-diligence. We seek to continuously improve how we operationalise our responsibility to respect human rights and understand and manage related risks in our operations and supply chains. For more information refer to BHP’s annual Modern Slavery Statement
  • Process stewardship

    At BHP, we are committed to a high level of sustainability performance at our operated assets, as well as seeking to encourage the sustainability performance of our downstream customers in the value chain. We support industry association programs and other initiatives that bring together participants in a product’s lifecycle to improve sustainability performance. Our participation in these programs is aimed at ensuring the standards and thresholds are meaningful and support improvement in the industry.  

    During FY2025, our Chilean operations, Escondida and Spence, were reaccredited against The Copper Mark Criteria Guide (reference 24 January 2020) to recognise their responsible production and sourcing practices. The Copper Mark is a voluntary assurance framework for responsible minerals production that independently assesses participants against a comprehensive set of performance criteria across environmental, social and governance dimensions. For more information on The Copper Mark assurance framework refer to The Copper Mark website. To view our current Copper Mark assurance statements, refer to the Disclosure section below. 

    The ICMM’s Mining Principles require member companies to conduct a prioritisation process to determine which assets will be subject to third-party validation across a three-year cycle. All of BHP’s operated assets (excluding New South Wales Energy Coal (NSWEC), legacy assets and the former OZ Minerals assets acquired by BHP on 2 May 2023) have completed self-assessments against ICMM’s Mining Principles and associated Performance Expectations during the last three years. The external validation sequence has been determined in consideration of commitments made by BHP with respect to the five standards.  

    During FY2025, our operated assets across Minerals Australia (except NSWEC and Western Australia Nickel) progressed assessing against and obtaining external validation over the TSM’s applicable Protocols and Frameworks, which is a condition of our membership of the Minerals Council of Australia (MCA). The MCA has set a deadline of the end of December 2025 for public disclosure of the results of the TSM assessments for its members and BHP is working towards this milestone. Completion of assessment and external verification against the relevant TSM Protocols and Frameworks for all in-scope BHP operated assets is an FY2026 milestone under our social value scorecard.  

    In addition, we are working on external validation of corporate-level TSM and ICMM Performance Expectations (PE) self-assessments and some of our operated assets will begin their three-yearly ICMM PE assessment cycles again in FY2026.  

    And finally, our Jansen potash project in Canada is preparing for its first TSM self-assessment after production commences, estimated in mid-CY2027.  

    For more information on the ICMM Mining Principles and the associated PEs and the Assurance and Validation requirements refer to the ICMM website. To view our current assurance statements, refer to the Disclosure section below. 

    We disclose aspects of our sustainability performance through the LMEpassport, which is the LME’s digital credentials register to enable companies that trade LME-listed brands to disclose their sustainability metrics and certifications at corporate, asset and brand levels. BHP has added information related to our copper and nickel LME-registered products from Olympic Dam, Escondida, Pampa Norte and Nickel West.  

    To support continuous improvement in environmental performance, each of our operated assets is required to have an Environmental Management System (EMS) that aligns with ISO14001 standards and set target environmental outcomes for land, biodiversity, air and water resources that are consistent with the assessed risks and potential impacts. Target environmental outcomes are required to be approved by the relevant Asset President or equivalent and included in the life of asset plan. Verification of the EMS is either via ISO14001 certification, for those sites that currently hold ISO14001 certification, or internal assurance processes. For more information refer to the Nature and environmental performance webpage

    In FY2025, we also continued to actively contribute to the development of globally consistent sustainability performance standards working together with the multi-stakeholder ecosystem. In particular, we continued work under the Consolidated Mining Standard Initiative (CMSI), which has the objective of consolidating major sustainability performance standards in a manner that reduces complexity, and improves clarity and performance through the scale of adoption across the industry, agnostic of commodity and geography.  

  • Product stewardship

    BHP encourages the responsible design, use, reuse, recycling and disposal of our products throughout our value chain, in line with the ICMM Mining Principles. 

    For our marketed products, our Sales and Marketing team works to maintain compliance with all applicable product regulatory requirements in relevant markets. This includes assessing the hazards of the products of mining according to the United Nations Globally Harmonised System of Hazard Classification and Labelling or equivalent relevant regulatory systems and communicating through safety data sheets and labelling as appropriate. 

    Where possible, BHP works directly with those involved in the processing and use of our products to improve environmental performance throughout the value chain and to promote the sustainable use of our products. For example, we work with individual customers to design and test raw material blends that optimise environmental performance. We also collaborate on research with customers, industry bodies and academia to identify sustainable product and process improvements.  

    Against a backdrop of emerging sustainability-related classification and reporting regulations and standards globally, we see product transparency as increasingly important. 

    Circular economy principles are an increasingly critical consideration for building sustainable supply chains in relation to our commodities that meet growing demand for our products, support goals to reduce greenhouse gas (GHG) emissions and minimise the impact of mining and downstream processing on the environments and communities where we operate. We are working to identify opportunities that leverage our capabilities to create solutions that can contribute towards a circular economy. 

    We recognise the importance of supporting the climate transition in our value chain. In 2020, BHP set Scope 3 emissions goals for 2030 to support decarbonisation for processing of our steelmaking products and maritime transportation of our products. In 2021, we added to these goals with a long-term goal and targets for Scope 3 emissions, supported by actions to work with industry, including our customers and suppliers, to progress sectoral decarbonisation. For more information on our goals and targets for Scope 3 emissions refer to the Climate change webpage

    Our interest in the value chain also extends to water use. BHP has potential exposure to water-related risks across the value chain and climate change may increase our future exposure. Customers and suppliers may be exposed to areas of ‘high’ to ‘extremely high’ water stress and we must understand these factors and respond to the challenges, working with our customers and suppliers. 

  • Minerals and metals due diligence
    Our Responsible Minerals Program is our minerals and metals supply chain due diligence management system, which is aligned with the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Guidance) and is also guided by the OECD Handbook on Environmental Due Diligence (OECD Guidance). The program requires fit-for-purpose due diligence with respect to the upstream minerals and metals supply chains for our operated assets and third-party trading activities. 

    The program is applicable to suppliers selling minerals and/or metals directly into our operated assets that will physically form part of our products or selling minerals and/or metals to BHP that BHP intends to market to a third party. 

    The program adopts the five-step framework for risk-based due diligence in alignment with Annex I of the OECD Guidance. The Annex I five step framework involves:  
    1. Establishing strong company management systems  
    2. Identifying and assessing risk in the minerals and metals supply chain  
    3. Designing and implementing a strategy to respond to identified risks  
    4. Carrying out independent audits at identified points in the supply chain, where applicable  
    5. Reporting on minerals and metals supply chain due diligence   

    The risks BHP considers in this due diligence include the Annex II risks under the OECD Guidance, together with other risks identified by BHP. Annex II risks include any form of forced or compulsory labour, the worst forms of child labour and other severe human rights violations, such as widespread sexual violence. Our due diligence program also includes prioritised environmental risks based on their potential significance for our minerals and metals supply chain as guided by the OECD Environment Handbook. 

    We commenced implementation of the Responsible Minerals Program in FY2023, including the publication of our Responsible Minerals Policy, which was updated again in FY2025. Aligned with the due diligence requirements set out under the LME Policy on Responsible Sourcing of LME-Listed Brands, in FY2024, we achieved Track A compliance against the Joint Due Diligence Standard (JDDS) for all BHP LME metal brands, covering Escondida, Spence, Olympic Dam and Nickel West. The JDDS was established by The Copper Mark in collaboration with relevant metals associations to promote responsible minerals and metals supply chains for these commodities, aligned with the OECD Guidance. We have also published the BHP Responsible Minerals Program 2025 report (per step 5 under the OECD Guidance), our third of these reports. 

  • External advocacy and engagement
    We recognise the importance of an active and multi-stakeholder approach to engagements across the sustainability standards ecosystem and we continue our focus on engaging on sustainability standards development. This involves working in collaboration with external standards-setters such as industry associations, standards bodies, commodity exchanges, think tanks and multilaterals, including the ICMM, TSM, The Copper Mark, the LME, ResponsibleSteel, Chatham House, World Economic Forum, International Energy Agency, the OECD’s Centre for Responsible Business Conduct and UN agencies in relation to Critical Energy Transition Materials.  

    We support the consolidation of the sustainability standards landscape, agnostic of commodity and geography, to improve the effectiveness of implementation of better practice sustainability management systems and the comparability of sustainability performance for stakeholders. 

    Since FY2024, we have been an active participant in the Consolidated Mining Standard Initiative (CMSI) which is a key initiative to consolidate four of the larger sustainability standards systems across the mining and metals industry, including standards under The Copper Mark, the ICMM, TSM and the World Gold Council. The CMSI continues to be undertaken together with a diverse set of stakeholders including but not limited to representatives from civil society, Indigenous Peoples, investors, downstream and academia. 
  • Disclosure
  • Risk
    For information on our approach to risk management refer to the BHP Annual Report 2025, Operating and Financial Review 7 – How we manage risk.