Message from the Chief Executive Officer
- Chip Goodyear,
Chief Executive Officer
At BHP Billiton we recognise the intrinsic link between sound sustainability performance and long-term business viability. Our business Strategic Framework reflects this understanding, presenting Licence to Operate as a key Framework element.
In 2006 we achieved strong performance in a global market facing significant increases in commodity demand and sustainability performance expectations. On behalf of the Board and the management team, I extend my thanks to not only our employees and contractors but also their spouses, partners and families for helping our company to achieve these results. The nature of our business means it takes a strong team effort to achieve our goals, and we recognise and greatly value this support.
Broader macroeconomic trends affecting our organisation and sustainability priorities include the increasing prominence of developing economies such as China, India and Brazil. In these parts of the world there are several billion people who over the last four or five years have had a greater opportunity to participate in economic development. At their current stage of development, raw materials supply is critical. Through our own technology research, technology partnerships and participation in broader industry initiatives, such as the International Council on Mining and Metals and the World Business Council for Sustainable Development, we aim to support the sustainable growth of emerging markets.
While very good progress has been made in implementing our Fatal Risk Control Protocols, our efforts have not been as effective as they need to be. Our thoughts are with the families and friends of the three people who lost their lives while working at our sites over the past year. We will continue to work tirelessly to achieve our goal of Zero Harm.
With the acquisition of WMC Resources Ltd (WMC) in 2005 we are now a significant provider of uranium to the global energy market. We recognise the concerns of some of our stakeholders arising from involvement in this commodity, and we are taking a leadership position in demonstrating sound stewardship of this and, indeed, of all of our products.
During the year we received advice that BHP Billiton would be included in an Australian Inquiry into the UN Oil-For-Food Programme. Our involvement relates to the funding of a shipment of wheat from Australia to Iraq in the mid 1990s. We are conducting our own internal review and have committed to publicly reporting our findings, taking into account the results of the Inquiry.
The continued growth in demand for our products has assisted us in the delivery of a very strong financial performance. It has also, however, created significant stresses in our operations and the industry more broadly as operations expand to meet demand. Skill shortages are a clear manifestation of this, and we have initiated a number of programs to address the issue. The management team has also stressed that our commitment to sustainability must not be compromised in meeting that demand.
Our commitment to spending one per cent of pre-tax profits (on a rolling three-year average) on voluntary community programs remains, which ensures that our host communities continue to share in our success – both in the short and long term. Examples include our efforts to support the management of major infectious diseases, such as HIV/AIDs and malaria.
Climate change remains a key focus area for the Company. We have maintained our programs to reduce greenhouse gas emissions from our operations and continue to gain experience in carbon trading. We also continue to fund a variety of climate change mitigation initiatives, such as the US FutureGen project, the Australian Coal Association's COAL21 initiative and the Australian Cooperative Research Centre for Greenhouse Gas Technologies.
Our Full Report on our website has again been prepared in accordance with the Global Reporting Initiative 2002 Sustainability Reporting Guidelines, and we believe it represents a balanced and reasonable representation of our organisation’s economic, environmental and social performance. We remain committed to the UN Global Compact, and this year we have expanded our reporting on UN initiatives in our Full Report to show how we are contributing to the achievement of the UN Millennium Development Goals.
I welcome any feedback you have in relation to this report and look forward to reporting our progress again next year as we continue to focus on creating value for all our stakeholders.
Chip Goodyear
Chief Executive Officer
