HUMAN RIGHTS DUE DILIGENCE
Human rights due diligence is one of the methods we use in accordance with the Our Requirements standards to identify, prevent and mitigate adverse human rights impacts. This also helps to identify new opportunities for BHP to respect human rights and support dialogue with stakeholders about our human rights impacts and contributions.
The Our Requirements standards require operated assets to complete a human rights impact assessment (HRIA) at least every three years (and review it whenever there are changes that may affect the impact profile).
BHP has developed a globally consistent methodology for our HRIAs that allows us to identify threats to and potential adverse impacts on, as well as opportunities to promote, human rights throughout our activities. The methodology is designed so our HRIAs begin with a comprehensive view of all applicable human rights, the legal and regulatory context and stakeholders, and focus on the most relevant human rights so that issues that present the most significant threats or opportunities associated with human rights can be prioritised. All HRIAs must include engagement with rights holders and stakeholders to enable a more complete understanding of any actual or potential human rights threats and opportunitiesResults of the HRIAs are being integrated into risk assessments, strengthening our approach to managing and monitoring human rights risks and reflecting a maturing of the approach to integration with our Risk Framework. The results of the HRIAs will also be included in social value assessments as a key social research input to ensure our operated assets’ understanding of their operating context and external environment as inputs into their business planning.
The Board’s Risk and Audit Committee monitors and, at least annually, reviews the effectiveness of the Group’s systems of risk management and internal control.
To understand and manage the risks BHP may be exposed to, we apply a Group Risk Architecture, which is a tool to identify, analyse, monitor and report risk. Community and human rights, which includes Indigenous rights, are represented in the Group Risk Architecture, enabling the identification of new exposures and the assessment of community and human rights impacts on existing exposures. We assess risks, then apply appropriate controls at a site, functional or Group level, and review performance to enable risks to be appropriately managed.
When making a strategic business decision, we are required to use BHP’s Risk Appetite Statement and the Group Risk Architecture to make sure the decision is within BHP’s appetite for risk; use recommended techniques from the Risk Framework when additional analysis is required to be certain that a decision is within risk appetite; and apply the risk process to the selected decision.