Stewardship
As indicated in the 2004 HSEC Report, we have had a focused project underway looking at product stewardship. Over the past year we have been working to refine our understanding of stewardship and how we can better integrate it into our operations.
We recognise that there are four types of stewardship in the lifecycle of our products:
- Material stewardship refers to the different materials utilised to produce the product as the product moves through its lifecycle. These include consumables ranging from tyres and fuel to water and energy. Material stewardship is about understanding and managing these materials (or inputs) in order to minimise harm to people and/or the environment.
- Product stewardship is about understanding and managing our specific products or commodities in order to minimise harm to people and/or the environment, as a result of exposure to the particular product/commodity. This is a shared responsibility with all others in the lifecycle of our product/commodity.
- Resource stewardship is about ensuring we maximise the value of the resource (e.g. an ore deposit) for both current and future generations.
- Process stewardship refers to different processes that are applied to the product (e.g. extraction, smelting) as the product moves through its lifecycle and that have the potential to generate outputs (other than just the product). These could include greenhouse gases, waste and other emissions. Process stewardship is about understanding and managing these processes (or outputs) in order to minimise harm to people and/or the environment.
The lifecycle of our products varies depending on the nature of the product. For the majority of our products the lifecycle comprises the resource extractor (i.e. a BHP Billiton mine or oil field), a processor (note that for some products, such as nickel and aluminium, we are both the extractor and processor), a manufacturer and a user. At the end of the lifecycle the product is either reused, recycled or disposed of. The diagram below illustrates a generalised lifecycle for a product, illustrating the four types of stewardship discussed above. While material, process and product stewardship apply across the lifecycle, resource stewardship is most prominent in the early stages of the lifecycle. Common to all parts of the lifecycle are the transport and marketing functions, both play an critical role in stewardship.
The Different Stewardship Types in the Product Lifecycle
The same model can be expanded upon for each individual stages within the overall product lifecycle. The following diagram illustrates the product lifecycle for a company in the extractive stage of the overall lifecycle. The diagram highlights how the same principles of stewardship apply within the extractive stage as activities move from exploration through to mining then ore processing and ultimately transportation from the mine gate to the processing stage.
The Different Stewardship Types in the Extractive Stage of a Lifecycle
Applying these stewardship principles, we have been actively involved in several product stewardship initiatives, including:
- Nickel – working with the Nickel Development Institute to implement practical product stewardship guidelines
- Copper- active participation with the International Copper Association in developing definitions, principles and projects under the 'Copper Stewardship' program
- Lead – continuing to play an active role in the Green Lead TM project which was initiated at our Cannington operation and now involves a consortium of mining, smelting, battery manufacturing, governments, non government organisations, inter-government organisation, automotive industry and recycling industry.
- Diamonds and gold – BHP Billiton was an original signatory to the Early Adopters Program initiated by stakeholders in the gold and diamond lifecycle. The program has now developed into the Council for Responsible Jewellery Practices, which is aimed at reinforcing confidence in the gold and diamond supply chain. In addition, our Diamonds business is a member of the Kimberley Process Certification Scheme, an international diamond certification scheme aimed at halting the trade in 'conflict diamonds'.
In addition, in line with our target to have undertaken lifecycle assessments for all major mineral products, we have also commenced work on the lifecycle assessments of other products, including, for example , manganese powder and manganese metal.
Consumer health is also of growing importance to us, and we continue to work with our industry associations to progress intiatives in this area. For example, we are currently working closely with the Nickel Development Institute in relation to the proposed EU Chemical Policy, which will require industry to demonstrate that 'chemicals' (which include metals in this context) are safely produced and managed through their lifecycles.
