Hierarchy of Systems and Documents
Sustainable development is a global concept – yet implementation tends to have most meaning and relevance in local situations. As a result our focus is on establishing management systems that can be consistently applied at local levels, while meeting broad governance requirements that we have specified at the Company-wide level. We put sustainable development into practice through the effective implementation of our HSEC management system.
The BHP Billiton HSEC management system is hierarchical, where documents and systems must meet and support the requirements of those at 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.
The diagram below illustrates our HSEC management system, and other related Company policies and documents.
BHP Billiton Hierarchy of Systems and Documents
See below for further details on the key aspects of our management system hierarchy:
- Company Charter
- Sustainable Development Policy
- HSEC Management Standards
- Company-Wide Procedures, Protocols, Guidelines and Toolkits.
In addition to the above hierarchy, there are a number of other management processes, which although managed by areas external to the HSEC function, are integral to our ability to contribute to sustainable development. Refer to Key Management Processes for further detail on how we contribute to sustainability through key business processes such as business conduct, risk management, audit and investment.
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'.
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.
Previously the HSEC Policy, our new Sustainable Development Policy was an output of a review process over the reporting period resulting from our maturing approach to sustainable development. This is further detailed in Management Systems Review.
Knowing that much of our success as a global company depends on how effectively we work with our employees, contractors and the communities in which we operate, we see the Policy as being central to our future success. While our Policy broadly aligns with a number of international conventions such as the UN Universal Declaration of Human Rights, it also requires that we meet or, where less stringent than our standards, exceed applicable legal and other requirements. As such, the Policy recognises that where governments implement international conventions, such as those of the International Labour Organisation, we will comply.
The Policy underpins our management systems worldwide and sets the foundation from which we operate. Wherever we operate, sustainable development aspects are addressed in our decision-making processes, alongside other business considerations.
See our Policy Guide (PDF 468 Kb) for a more detailed explanation on the rationale behind our Policy objectives.
HSEC Management Standards
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.
The following outlines the Purpose and Application of these Standards, as well as providing a summary of their Coverage.
Purpose and Application
The objectives of the Standards are to:
- support the implementation of the Charter, the Sustainable Development Policy and the Guide to Business Conduct across BHP Billiton
- provide a risk-based HSEC management system framework, consistent with:
- the BHP Billiton Enterprise-Wide Risk Management Policy
- ISO 14001
- OHSAS 18001
- SA 8000
- other international policies, standards and management practices
to which BHP Billiton has committed, including the:
- UN Global Compact
- UN Universal Declaration of Human Rights
- International Council on Mining & Metals (ICMM) Sustainable Development Framework
- World Bank Operational Directive on Involuntary Resettlement
- US-UK Voluntary Principles on Security and Human Rights
- other regional commitments
- set out and formalise the expectations for progressive development and implementation of more specific and detailed HSEC management systems at all levels of BHP Billiton
- provide auditable criteria, against which HSEC management systems across BHP Billiton can be measured
- provide a basis from which to drive continual improvement towards leading industry practice.
The Standards are required to be reviewed at least every three years. Over the reporting period, we undertook a review to ensure that the Standards remain consistent with current national and international developments and continue to be relevant and appropriate for the level of HSEC maturity of the organisation. This is further detailed in Our Performance: Management Systems Review.
The Standards cover all operational aspects and activities that have the potential to affect HSEC either positively or negatively. The terminology 'Health, Safety, Environment and Community' (or HSEC) has been used throughout the Standards to highlight four key components of sustainable development.
These are:
- Health – promoting and improving the health of the company's workforce and host communities
- Safety – ensuring that safety values are not compromised, and providing a workplace where people are able to work without being injured
- Environment – promoting the efficient use of resources, reducing and preventing pollution and enhancing biodiversity protection
- Community –
- internal community – engaging regularly with employees and contractors, where everyone is treated fairly and with respect and can realise their full potential; upholding ethical business practices, and encouraging a diverse workforce
- external community – engaging regularly with those affected by BHP Billiton operations, enhancing economic benefits and contributing to sustainable community development
- human rights – understanding, promoting and upholding fundamental human rights within BHP Billiton's sphere of influence.
The Standards cover the entire lifecycle of operations, from exploration and planning through to operation and closure (decommissioning, remediation and rehabilitation).
The Standards apply to all BHP Billiton sites and operations throughout the world. These include facilities and activities (from exploration through to closure and rehabilitation) that are owned or operated by us, development projects, mergers, acquisitions and divestments, and major activities by contractors on our sites or under our management. Where we have no operational responsibility but have an equity stake, or significant BHP Billiton assets are involved, we make the Standards available to the operator so that comparable HSEC standards can be applied.
Our HSEC Management Standards include a requirement for an auditing process to check that our Charter, Sustainable Development Policy and Standards are being applied and to verify performance. The audits are designed to address the degree of implementation of our HSEC management systems and their effectiveness in meeting the Group's needs and those of the business being audited. During any year, those sites not scheduled for a Corporate HSEC audit must complete a self assessment against the Standards and prepare performance improvement plans to progress to full conformance with the Standards. This is further detailed in our section on Audit.
Coverage
There are 15 HSEC Management Standards, each with a number of performance requirements which provide the detail by which our sites establish systems and processes to meet the intent of each standard. A summary of the Standards and their intent statements is provided below. You can also view and download our full HSEC Management Standards and their associated performance requirements.
Summary of our 15 HSEC Management Standards
- Standard 1 Leadership and Accountability
- Intent: Directors, managers, employees and contractors understand their accountabilities and demonstrate leadership and commitment to sustainable development and Zero Harm through effective HSEC management.
- Standard 2 Legal Requirements, Commitments and Document Control
- Intent: Relevant legal, regulatory and other HSEC requirements are identified, accessible, understood and complied with and an effective HSEC document control system is in place.
- Standard 3 Risk and Change Management
- Intent: HSEC hazards are identified, and associated risks assessed and managed. Planned and unplanned changes are identified and managed.
- Standard 4 Planning, Goals and Targets
- Intent: Sustainable development is an integral part of business planning with HSEC goals and targets established to drive continual improvement in performance.
- Standard 5 Awareness, Competence and Behaviour
- Intent: Employees, contractors and visitors are aware of relevant HSEC requirements, hazards, risks and controls, are competent to conduct their activities and behave in a responsible manner.
- Standard 6 Health and Hygiene
- Intent: Employees and contractors are assessed for their fitness for work and, along with visitors, are protected from health hazards associated with Company operations. Community health issues relevant to Company operations are identified and effectively managed.
- Standard 7 Communication, Consultation and Participation
- Intent: Effective, transparent and open communication and consultation is maintained with stakeholders associated with Company activities. Stakeholders are encouraged to participate in and contribute to sustainable development through HSEC performance improvement initiatives.
- Standard 8 Business Conduct, Human Rights and Community Development
- Intent: Activities and operations are conducted in an ethical manner that supports fundamental human rights and respects traditional rights, values and cultural heritage. Opportunities are sought for contributing to sustainable community development.
- Standard 9 Design, Construction and Commissioning
- Intent: Management of HSEC risks and opportunities is an integral part of all projects through design, approval, procurement, construction and commissioning.
- Standard 10 Operations and Maintenance
- Intent: All plant and equipment is operated, maintained, inspected and tested using systems and procedures that manage HSEC risks.
- Standard 11 Suppliers, Contractors and Partners
- Intent: The contracting of services, the purchase, hire or lease of equipment and materials, and activities with partners, are carried out so as to minimise any adverse HSEC consequences and, where possible, to enhance community development opportunities.
- Standard 12 Stewardship
- Intent: The lifecycle HSEC impacts associated with resources, materials, processes and products are minimised and managed.
- Standard 13 Incident Reporting and Investigation
- Intent: HSEC incidents, including near misses, are reported, investigated and analysed. Corrective and preventive actions are taken and lessons shared.
- Standard 14 Crisis and Emergency Management
- Intent: Procedures and resources are in place to effectively respond to crisis and emergency situations.
- Standard 15 Monitoring, Audit and Review
- Intent: HSEC performance and systems are monitored, audited and reviewed to identify trends, measure progress, assess conformance and drive continual improvement.
The framework for the Management Standards is based on the Plan-Do-Check-Act model common to many management systems. The figure below illustrates how the standards fit into this model.
HSEC Management Standards Continual Improvement Model
As illustrated, all aspects of performance are incorporated into the Management Standards, including accountabilities; risk assessment and management; business planning and target setting for improvement; communication, training and awareness; emergency response; and performance monitoring, auditing, and management review.
While the Standards require the establishment of reporting processes based on key risks, they also require that environmental and occupational accident and illness reporting processes are designed to comply with the relevant laws in the regions where we operate.
All sites are required to have consultation and communication processes for both internal and external stakeholders. Internally, we require sites to establish processes that comprise management, employee and contractor representation to address and review HSEC issues. Similarly, externally we require systems to identify and work with communities and other stakeholders. These processes are further detailed in Engaging Stakeholders.
Management Standard 11 requires operations to evaluate the social and environmental performance of our contractors, suppliers and partners, including such issues as human rights records and previous environmental incidents. Further detail on our approach to the supply chain can be read at Our Approach: Suppliers.
Through Management Standard 12 on Stewardship, we cover the consumption end of our material lifecycle. Refer to Stewardship for further information.
Management Standard 14 on Crisis and Emergency Management outlines our expectations with regards to the establishment of systems and processes to deal with potential emergency scenarios and the consequent mitigation of any related HSEC impacts.
To ensure that our HSEC management requirements are embedded into significant investment decisions, we have established an investment process that covers a range of investment types and establishes the process by which all investments are to be reviewed and authorised. This is further detailed in Investment Processes.
Company-Wide Procedures, Protocols, Guidelines and Toolkits
Company-wide Procedures and Protocols are mandatory to all BHP Billiton sites, operations and controlled activities. These documents address specific areas where it is important that activities are conducted consistently across the Company and cover such areas as corporate performance reporting, fatal risk control protocols, and incident investigation.
Company-wide Guidelines are advisory only and guide our businesses on effective implementation of the HSEC Management Standards. Company-wide Toolkits provide preferred methods for meeting the requirements of the HSEC Management Standards and Company-wide Procedures, Protocols and Guidelines. They are not mandatory.
