Social Responsibility - Our Approach

Our operations have the potential to impact, both positively and negatively, our host communities. Our goal is to minimise negative social impacts while maximising the opportunities and benefits our presence brings.

From time to time, however, unforeseen events, such as the global financial crisis, affect our business and host communities. Despite the Group's best endeavours to be fair and equitable, the social impacts from reduced capacity and slowing down production have been significant, raising questions about the economic dependency, social risk and unintended consequences associated with purpose-built communities. The lessons learned in the past year will be important for the future. BHP Billiton has commissioned a review to inform its decision-making in regard to workforce location for future projects, with the aim of reducing social risk and minimising impacts on people in local communities.

Forum on Corporate Responsibility

The Forum on Corporate Responsibility comprises our executive management and leaders from non-government organisations (NGOs) and is chaired by our Chief Executive Officer. The Forum provides NGOs with an opportunity to influence the Group's approach to key sustainable development issues.

The open and frank discussion provides participants with an insight into the complexity of dilemmas and challenges facing the Group and an understanding of the importance placed on our values and standards when making business decisions. It also enables our executives to explore and appreciate issues from a different viewpoint.

The Forum met twice during FY2009, engaging in robust discussions on broad topics such as human rights, climate change and working in conflict zones. It also focused on specific sustainability challenges associated with the Group's businesses in the Philippines, Suriname and Indonesia. It provided valuable input into the revision of HSEC Standards and Procedures, and the Group's climate change position and sustainability targets.

Our performance

To confirm the importance of a collaborative approach to stewardship and to complement the various regulatory frameworks existing in our operating regions, we have taken a leadership role in the development of stewardship initiatives within several of our product life cycles including:

Lead

We have continued to assist in the development of the BHP Billiton-conceived Green Lead™ initiative, which has recently seen working groups started in both China and Central America.

Diamonds and gold

Through our active Board and Committees membership of the Responsible Jewellery Council (RJC), of which BHP Billiton was a founding member, we have provided direction in the near finalisation of the RJC System, which is designed to provide consumer and stakeholder confidence throughout the gold and diamond jewellery life cycle. It is anticipated that the first RJC members will be certified in early 2010. Membership of the RJC has grown by 40 per cent this calendar year - which reflects the interest and support for this program, even in tough financial times.

Uranium

Through the Uranium Stewardship Working Groups that have been established (and that BHP Billiton chairs) at both the Australian Uranium Association and the World Nuclear Association, we have worked with players in the other sectors of the uranium life cycle to finalise uranium stewardship principles and practices as well as helped develop the first tools for uranium stewardship (e.g. exploration guidelines, best practice uranium mining and processing, container terminal handling procedures for uranium).

Iron ore, coal and manganese

We have partnered with others in the establishment of a Steel Stewardship Forum, initially based on the Australian steel life cycle, but which will ultimately be expanded to a global forum.

Other products

We are looking at ways to develop formal stewardship programs for our other key commodities through the relevant commodity associations.