The Business Case
Without a profitable business, we are simply unable to contribute to the broader goals of sustainability. We recognise, however, that our bottom line performance is dependent on ensuring access to resources and securing and maintaining our licence to operate and grow. Therefore maximising the bottom line is about recognising the value protection and value add that can be achieved through enhanced performance in HSEC aspects. Delivery of this enhanced performance is a core expectation we have of our management teams. We term this our sustainability value add and recognise the value it can bring to our business through:
Reduced business risk and enhanced business opportunities
By understanding and managing risk we can provide greater certainty for our shareholders, our employees, our customers and suppliers, and the communities in which we operate. We can be better informed, more decisive and pursue growth opportunities with increased confidence. The aim is for risk management to become embedded in all our critical business systems and processes so that we identify the risks and manage them on a consistent and holistic basis before events occur that might affect us or our stakeholders.
Gaining and maintaining our licence to operate and grow
Access to resources is crucial to the sustainability of our business. Fundamental to achieving access to resources is effectively addressing heightened political and societal expectations related to the environmental and social aspects of our business.
Improved operational performance and efficiency
Many key operational performance indicators are inextricably linked to sustainability performance. For example, improving energy efficiencies reduces both costs and greenhouse gases. Increasing plant life reduces maintenance cycles, thus reducing requirements for consumables and replacement items. Reducing wastes immediately eliminates operational costs. Through the application of innovation and business improvement methodologies, not only can operational efficiency and performance gains be made but so too can sustainability gains.
Improved attraction and retention of our workforce
Our workforce is an essential element of our business and being able to attract and retain top talent is fundamental to our success. Maintaining a healthy and safe workplace is a universal value to all employees. Effective employee development and training programs, attractive remuneration packages, addressing work-life balance, and providing a fair and non-discriminatory work environment all contribute to employee attraction and retention. In addition, our approach to sustainable development and the knowledge that there is an alignment between our Company values and personal values has also been shown to be a contributor to employee attraction and satisfaction.
Maintained security of operations
Asset security is a critical element which can be significantly impacted by the nature of relationships with host communities. Trusting and supportive relationships can lead to reduced security risks, whereas distrustful relationships can lead to costly heightened security risks. This is particularly critical for our operations in parts of the world with politically unstable environments.
Enhanced brand recognition and reputation
The benefits of enhanced brand recognition and reputation are many but often difficult to quantify. Understanding what our stakeholders perceive as responsible behaviour, meeting these expectations and achieving recognition from financial institutions, investors and customers can deliver value. For example, enhanced reputation may foster an increased belief that the Company has the capacity and capabilities to deliver on its commitments. This can promote shareholders’ faith in proposed investments, communities’ faith in community development plans, governments' faith in successful delivery of projects, and business partners’ faith that we are reliable and competent in all that we do.
Enhanced ability to strategically plan for the longer term
By anticipating and understanding trends in society, such as new regulations, heightened societal expectations and improved scientific knowledge, and assessing these against our business models, we can improve our ability to proactively plan for the longer term. This may include entry into emerging markets, revision of product mixes or influence upon operational technologies.
Beyond the Business Case
Beyond the business case described above, there are also many clear societal benefits that flow from our ability to integrate aspects of sustainability into our business. These benefits include, but are not limited to, contributing to improved standards of living and self-sustaining communities.
The diagram below illustrates the many facets of value creation at BHP Billiton.
