Governance Structure & Management Systems

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Governance Structure & Management Systems
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3.1 - Governance structure of the organisation, including major committees under the board of directors that are responsible for setting strategy and for oversight of the organisation
Governance > Our Approach > Structure and Responsibilities	Structure and Responsibilities - Our organisation for sustainable development is characterised by the following key features: The Sustainability Committee of the Board provides assurance on HSEC matters across the Group. Line management has primary responsibility and accountability for HSEC performance. The HSEC function provides advice and guidance directly, and through a series of networks across the business. Clear links between remuneration and HSEC performance. The HSEC function advocates best practices and commercially effective global solutions.
Governance> Our Approach > Structure and Responsibilities	Figure - Sustainable Development Organisational Structure
Governance> Our Approach > Structure and Responsibilities	Sustainability Committee of the Board (formerly HSE Committee)- The Company's peak HSEC governance body during the reporting period was the HSE Committee, a subcommittee of the Board.
Governance> Our Approach > Structure and Responsibilities	Corporate HSEC - Core HSEC governance functions are provided from the Corporate Centre, with the majority of staff embedded in the Customer Sector Groups. A critical component of the HSEC governance function provided by Corporate is the HSEC audit program, specifically designed to ensure our Charter, Sustainable Development Policy and HSEC Management Standards are effectively implemented across the Group.
Governance> Our Approach	2nd paragraph - While this section focuses on those governance processes we have in place to implement our commitment to sustainable development, we also have a suite of corporate governance processes that manage the broader affairs of the Company. The Corporate Governance Statement outlines the key principles and practices of the BHP Billiton Group. Our financial Annual Report also provides details in this regard.
3.2 - Percentage of the board of directors that are independent, non-executive directors
Governance> Our Approach > Structure and Responsibilities	Sustainability Committee of the Board (formerly HSE Committee)- The Company's peak HSEC governance body during the reporting period was the HSE Committee, a subcommittee of the Board.
Governance> Our Approach > Hierarchy of Systems and Documents	15 HSEC Management Standards - Standard 1: Leadership and accountability
Governance> Our Approach > Structure and Responsibilities > HSE Committee of the Board Membership	Provides photographs and details on the background / skills / experience of each member of the Committee.
3.3 - Process for determining the expertise board members need to guide the strategic direction of the organisation, including issues related to environmental and social risks and opportunities
Governance> Our Approach > Structure and Responsibilities	Sustainability Committee of the Board (formerly HSE Committee)- The Company's peak HSEC governance body during the reporting period was the HSE Committee, a subcommittee of the Board.
3.4 - Board-level processes for overseeing the organisation's identification and management of economic, environmental and social risks and opportunities
Governance> Our Approach	2nd paragraph - While this section focuses on those governance processes we have in place to implement our commitment to sustainable development, we also have a suite of corporate governance processes that manage the broader affairs of the Company. The Corporate Governance Statement outlines the key principles and practices of the BHP Billiton Group. Our financial Annual Report also provides details in this regard.
Governance> Our Approach > Hierarchy of Systems and Documents	Entire Section
Governance> Our Approach > Key Management Processes	Key Management Processes - Wherever we operate, HSEC aspects are addressed in our decision-making processes, alongside other business considerations. This means that, while we strive to deliver strong financial returns to shareholders, we fully recognise and deliver on our wider responsibilities to our stakeholders.
Governance> Our Approach > Key Management Processes	Business Conduct - The Guide to Business Conduct applies to all our workforce regardless of their specific job or location. It provides employees and contractors with direction and advice on carrying out business and interacting with governments, communities and business partners. This includes clear guidelines on general workplace behaviour as well as our policies, standards and guidelines on a wide range of ethical issues including conflict of interest, financial inducements and bribery, insider trading and political contributions.
Governance> Our Approach > Key Management Processes	Investment Processes - New investments are essential for the Company to deliver on our strategic and financial objectives and to shape the organisation to best respond to the changing external environment. We clearly recognise, however, the potential risks and opportunities new investments pose to our commitment to sustainable development, and consequently have integrated the consideration of HSEC into our investment processes and decision-making.
Governance> Our Approach >Key Management Processes	Risk Management - Supporting the risk basis of the Management Standards is our Enterprise-Wide Risk Management (EWRM) strategy. This strategy embeds risk management processes into all our critical business systems, allowing us to adopt a precautionary approach to business management.
Governance> Our Approach >Key Management Processes	Audit - Our HSEC Management Standards include a requirement for an auditing process to check that our Charter, HSEC Policy and HSEC Management Standards are being applied and to verify performance.
3.5 - Linkage between executive compensation and achievement of the organisation's financial and non-financial goals (eg. environmental performance, labour practices)
Governance> Our Approach > Structure and Responsibilities	Structure and Responsibilities, 2nd paragraph - Executive remuneration is directly linked to the financial and non-financial performance of the Company. Non-financial performance indicators include health, safety, environment and community targets.
3.6 - Organisational structure and key individuals responsible for oversight, implementation, and audit of economic, environmental, social and related policies
Governance> Our Approach > Structure and Responsibilities	Figure - Sustainable Development Organisation Structure
Governance> Our Approach > Structure and Responsibilities	Sustainability Committee of the Board (formerly HSE Committee)- The Company's peak HSEC governance body during the reporting period was the HSE Committee, a subcommittee of the Board.
Governance> Our Approach > Structure and Responsibilities > HSE Committee of the Board Membership	Provides photographs and details on the background / skills / experience of each member of the Committee.
3.7 - Mission and values statements, internally developed codes of conduct or principles, and policies relevant to economic, environmental, and social performance and the status of implementation
Governance> Our Approach > Hierarchy of Systems and Documents	15 HSEC Management Standards
Governance> Our Approach > Hierarchy of Systems and Documents	Company Charter - Central to our business is our Company Charter, which states our 'overriding commitment to health, safety, environmental responsibility and sustainable development'. Honesty and transparency are core to this commitment and, importantly, the Charter also recognises that 'to prosper and achieve real growth we must …earn the trust of employees, customers, suppliers, communities and shareholders by being forthright in our communications and consistently delivering on commitments'.
Governance> Our Approach > Hierarchy of Systems and Documents	Sustainable Development Policy - Supporting the values of our Charter is our Sustainable Development Policy. While we strive to deliver strong financial returns to shareholders, we fully recognise and deliver on our wider responsibilities to our stakeholders – as the Policy states ' our objective is to be the company of choice – creating sustainable value for our shareholders, employees, contractors, suppliers, customers, business partners and host communities.' Integral to this is our aspiration to Zero Harm.
Governance> Our Approach >Key Management Processes	Business Conduct - The Guide to Business Conduct applies to all our workforce regardless of their specific job or location. It provides employees and contractors with direction and advice on carrying out business and interacting with governments, communities and business partners. This includes clear guidelines on general workplace behaviour as well as our policies, standards and guidelines on a wide range of ethical issues including conflict of interest, financial inducements and bribery, insider trading and political contributions.
Governance> Our Approach >Key Management Processes	Risk Management - Supporting the risk basis of the Management Standards is our Enterprise-Wide Risk Management (EWRM) strategy. This strategy embeds risk management processes into all our critical business systems, allowing us to adopt a precautionary approach to business management.
3.8 - Mechanisms for shareholders to provide recommendations or direction to the board of directors
About This Report > Our Approach to Reporting	Our Approach to Reporting - Your comments on the content and usability of our Sustainability Report are appreciated as they are useful in preparing future Reports. Please use our Feedback mechanism if you have any suggestions for our future Sustainability Reports.
Sustainability at BHP Billiton > Engaging Stakeholders > Our Stakeholders> Shareholders	Interests and Concerns- Shareholders are broadly interested in ensuring that financial returns occur as a result of suitable Company performance and governance. Dialogue - Shareholders are invited to attend the Annual General Meetings where they can question directors on matters relating to the Company's performance.
Sustainability at BHP Billiton > Engaging Stakeholders > Our Stakeholders> Investment Community	Dialogue - Our Investor Relations & Communications group is responsible for communicating with mainstream investment organisations. Typically, this involves briefing analysts on key issues. Our Sustainable Development and Community Relations group is responsible for communicating with SRI analysts. The publication of our Sustainability Report is a cornerstone of this activity. In addition we hold an annual briefings for SRI analysts.
3.9 - Basis for identification and selection of major stakeholders
Sustainability at BHP Billiton > Our Sustainability Challenges > Access to Resources	Stakeholder Engagement - We seek proactive engagemen by stakeholder and work with them to identify and manage their issues and concerns. (For details on our approach to engagement refer to Our stakeholders.) Specifically, we have publicly committed to a number of policy positions in conjunction with our key stakeholders.
Sustainability at BHP Billiton > Engaging Stakeholders	Engaging Stakeholders - Every day we interact with numerous people from varied backgrounds. We are committed to maintaining and promoting dialogue with our stakeholders and remaining responsive to the global community's concerns and aspirations.
Sustainability at BHP Billiton > Engaging Stakeholders > Identifying Our Stakeholders	Identifying Our Stakeholders - Key stakeholders are generally identified as people who are adversely or positively impacted by our operations, those who have an interest in what we do or those who have an influence on what we do. Our HSEC Management Standard 7 states that 'Systems are in place to identify and work with stakeholders and develop strategies to address their concerns and expectations'.
Governance> Our Approach > Hierarchy of Systems and Documents	15 HSEC Management Standards - Standard 7 -Communication, consultation and participation
3.10 - Approaches to stakeholder consultation reported in terms of frequency of consultations by type and stakeholder group
Sustainability at BHP Billiton > Engaging Stakeholders > Our Stakeholders	This entire section of the Report provides in-depth discussion on the type and scale of stakeholder consultation undertaken by the Company
BHP Billiton Stakeholder Relationships	Entire document
Community > Community Case Studies	All community case studies illustrate BHP Billiton's substantial level of stakeholder consultation at its facilities.
3.11 - Type of information generated by stakeholder consultations 3.12 - Use of information resulting from stakeholder engagements
Sustainability at BHP Billiton > Engaging Stakeholders	Engaging Stakeholders, 1st paragraph - Every day we interact with numerous people from varied backgrounds. We are committed to maintaining and promoting dialogue with our stakeholders and remaining responsive to the global community's concerns and aspirations. We recognise the importance of trust to relationship building.
Sustainability at BHP Billiton > Engaging Stakeholders	This entire section addresses how BHP Billiton engages its major stakeholder groups, and provides detail on the type of information generated from this engagement and secondly, how this information is being incorporated into business decisions.
Community > Community Case Studies	Integrated Mine Planning Process gives stakeholders a say in underground coal mining decisions in the Illawarra Community engagement program facilitates oil field developments in the environmentally and socially sensitive Exmouth Sub-basin Learning to look through the eyes of others The Pilbara LNG site selection study uses community engagement to identify a site of low environmental and social sensitivity Consultation the key to positive community engagement in the Angostura oil and gas project in Trinidad and Tobago Kalahari Diamonds utilises broad media mix to communicate with community and other stakeholders Cerrejón continues to make good progress with its community relations programs Consultation program aims to foster community understanding of Cabrillo Port project
Socio Economic > Socio Economic Case Studies	Mozal - a model for integrating sustainability into resource projects Relationship building is key to managing socioeconomic impacts of the Ravensthorpe Nickel Project
BHP Billiton Response: Due to the large array of stakeholders, it is impractical to report details of all consultations by frequency and type.
3.13 - Explanation of whether and how the precautionary approach of principle is address by the organisation
About This Report > GC Navigator	Principle 7: Businesses should support a precautionary approach to environmental challenges
Sustainability at BHP Billiton > Sustainable Development at BHP Billiton	Sustainable Development at BHP Billiton - The most commonly stated definition of sustainable development is ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’. (Source: World Commission on Environment and Development [Bruntland Commission], 1987)
Governance> Our Approach > Key Management Processes	Risk Management - Supporting the risk basis of the Management Standards is our Enterprise-Wide Risk Management (EWRM) strategy. This strategy embeds risk management processes into all our critical business systems, allowing us to adopt a precautionary approach to business management.
3.14 - Externally developed, voluntary economic, environmental, and social charters, sets of principles, or other initiatives to which the organisation subscribes or which it endorses
Sustainability at BHP Billiton > Engaging Stakeholders > Building Global Links	Building Global Links - The major externally developed voluntary initiatives that we are involved in, or are progressively implementing (the date in brackets indicates the year in which we commenced our involvement) include: Australian Minerals Industry Code for Environmental Management (1996), now 'Enduring Value' Global Reporting Initiative (2002) and the Minerals Sector Supplement International Council on Mining and Metals Sustainable Development Framework (2003) ISO 14001 Environmental Management Systems (2002) Mining Certification Evaluation Project – Australian Regional Initiative (2002) UN Global Compact (2002) UN Universal Declaration of Human Rights (2001) US-UK Voluntary Principles on Security and Human Rights (2003) World Bank Operational Directive on Involuntary Resettlement (2003).
Sustainability at BHP Billiton > Engaging Stakeholders > Our Stakeholders> Investment Community	Socially Responsible Investors, 3rd paragraph - The following sections outline our performance over the period in some of the key benchmarking programs: FTSE4Good Index Dow Jones Sustainability Index Australian SAM Sustainability Index (AuSSI) Business in the Community – Corporate Responsibility Index Johannesburg Stock Exchange SRI Index Carbon Disclosure Project
Governance> Our Approach > Key Management Processes	Stewardship, 3rd paragraph - In addition, we set and achieved a Company-wide target that lifecycle assessments (LCA) be prepared for all major minerals products by 30 June 2004. The LCA studies were conducted through research institutes and academia and in conjunction with commodity and industry associations such as the International Aluminium Institute, the International Copper Association and the Nickel Development Institute. Stewardship, 6th paragraph - Consumer health is also of growing importance to us, and we are involved with industry associations in progressing initiatives in this area. For example, we are currently working with the Nickel Development Institute in relation to the proposed EU Chemical Policy, which will require industry to demonstrate that 'chemicals' (which includes metal in this context) are safely produced and managed through their lifecycles.
3.15 - Principal memberships in industry and business associations, and/or national/international advocacy organisations
Sustainability at BHP Billiton > Engaging Stakeholders > Our Stakeholders> Industry Associations	Entire Section
Sustainability at BHP Billiton > Engaging Stakeholders > Building Global Links	4th paragraph -We also collaborate with governments, NGOs and academic institutions worldwide to undertake and support research on improving HSEC performance. See below for further details on our activities with the following organisations: Global Reporting Initiative UN Global Compact Also refer to Our Stakeholders – Industry Associations for further details on specific initiatives we are undertaking through our relationships with the International Council on Mining & Metals and World Business Council for Sustainable Development.
Governance> Our Approach > Key Management Processes	Stewardship, 3rd paragraph - In addition, we set and achieved a Company-wide target that lifecycle assessments (LCA) be prepared for all major minerals products by 30 June 2004. The LCA studies were conducted through research institutes and academia and in conjunction with commodity and industry associations such as the International Aluminium Institute, the International Copper Association and the Nickel Development Institute. Stewardship, 6th paragraph - Consumer health is also of growing importance to us, and we are involved with industry associations in progressing initiatives in this area. For example, we are currently working with the Nickel Development Institute in relation to the proposed EU Chemical Policy, which will require industry to demonstrate that 'chemicals' (which includes metal in this context) are safely produced and managed through their lifecycles.
3.16 - Policies and/or systems for managing upstream and downstream impacts, including: Supply chain management as it pertaining to outsourcing and supplier environmental and social performance; and Product and service stewardship initiatives.
Performance at a Glance > Targets Scorecard	Product stewardship - Lifecycle assessments have been completed for all major minerals products. In addition, we have also commenced work on life cycle assessments of several minor minerals products
Governance> Our Approach > Hierarchy of Systems and Documents	15 HSEC Management Standards - Standard 11: Suppliers, contractors and partners and Standard 12: Stewardship
Governance> Our Performance > Stewardship	Stewardship - entire section Figure - The Different Stewardship Types in the Product Life Cycle Figure - The Different Stewardship Types in the Extractive Stage of a Life Cycle
3.17 - Reporting organisation's approach to managing indirect economic, environmental, and social impacts resulting from its activities
Performance at a Glance > Targets Scorecard	Product stewardship - Lifecycle assessments have been completed for all major minerals products. In addition, we have also commenced work on life cycle assessments of several minor minerals products
Sustainability at BHP Billiton > Engaging Stakeholders > Our Stakeholders> Suppliers	Dialogue - All contract work within our organisation is to be assigned to a BHP Billiton manager or supervisor as the single point of accountability. This ensures that regular reporting and communications are maintained between the Company and our suppliers.
Governance> Our Approach > Hierarchy of Systems and Documents	15 HSEC Management Standards - Standard 11: Suppliers, contractors and partners and Standard 12: Stewardship
Governance> Our Approach > Key Management Processes	Business Conduct - The BHP Billiton Guide to Business Conduct is founded on our Charter. The Charter states that the Company cares as much about how results are obtained as it does about delivering good results. How the Company achieves results is important because.
Socio-Economic> Our Approach	Entire section
3.18 - Major decisions during the reporting period regarding the location of, or changes in, operations
About This Report > About Us	About Us, 9th paragraph - During the year, we acquired WMC Resources Ltd (WMC) and sold our Samancor Chrome business (South Africa). Tthe hot briquetted iron facilities at the Boodarie Iron plant in Port Hedland (Australia) was also placed under care and maintenance.
About This Report > Our Approach to Reporting> Data Collection & Basis	Data Collection & Basis, 4th paragraph - BHP Billiton took control of WMC Resources Ltd (WMC), effective 3 June 2005. Due to the timing of this transaction in the 2005 reporting year and variations between the two companies' data collection and reporting systems, our 2005 Sustainability Report does not reflect data from WMC. This data will be integrated into our 2006 reporting cycle. In the interim, historic WMC sustainability data can be viewed online in the WMC sustainability reports. Effective 1 June, we sold our Samancor Chrome business (South Africa). For the purposes of this Report, performance data for these interests is included to the point of divestment. In addition, during the reporting period, our Boodarie Iron facility (Australia) was placed under care and maintenance; data continues however to be collected.
3.19 - Programs and procedures pertaining to economic, environmental and social performance. Include discussion of: Priority and target setting; Major programs to improve performance; Internal communication and training; Performance monitoring; Internal and external auditing; and Senior management review
Throughout the Report	The bulk of the Report describes and discusses the programs and procedures that BHP Billiton has in place to manage its sustainable development, or HSEC performance.
Performance at a Glance > Targets Scorecard	Targets Scorecard - Provides details on programs and procedures undertaken by BHP Billiton at a Company-wide level to manage sustainable development, or HSEC performance.
Governance> Our Approach > Hierarchy of Systems and Documents	HSEC Management Standards, 1st paragraph - The BHP Billiton HSEC Management Standards form the basis for the development and application of HSEC management systems at all levels in the Company, and represent a key process through which we drive our contribution to sustainable development.
Governance> Our Approach > Hierarchy of Systems and Documents	Figure - HSEC Management Standards Continual Improvement Model
Case Studies	All Case Studies
3.20 - Status of certification pertaining to economic, environmental, and social management systems
Performance at a Glance > Targets Scorecard	Targets Scorecard - All sites to maintain ISO 14001 Certification.
Sustainability at BHP Billiton > Engaging Stakeholders > Building Global Links	Building Global Links, 4th bullet point - "ISO 14001 Environmental Management Systems (2002)"
Governance> Our Approach > Hierarchy of Systems and Documents	Hierarchy of Systems and Documents, 2nd paragraph - The BHP Billiton HSEC management system is hierarchical, where documents and systems must meet and support the requirements of those of higher levels. We are aiming for some of our management systems to be certified. For example, in line with our HSEC target, all our major operating sites have now achieved and are required to maintain ISO 14001 certification. Additionally, some of our sites are now working towards certification of their safety management systems to OHSAS 18001. A number of our sites are also certified to the ISO 9000 standards for quality management systems.
Governance> Our Performance > Management Systems Review	HSEC Management Standards Review, 2nd bullet point - Ensuring that the Standards were consistent with the International Standards Organisation revision of ISO 14001:2004

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