BHP Group Limited

09/14/2021 | Press release | Distributed by Public on 09/14/2021 04:17

BHP Annual Report 2021 The future is clear (Form 6-K)

BHP Annual Report 2021 The future is clear

Contents Strategic Report 1.1 Our highlights 02 1.2 Chair's review 04 1.3 Chief Executive 05 Officer's review 1.4 Our business today 06 1.5 Positioning for the future 07 1.6 Delivering value 08 1.6.1 Our business model 08 1.6.2 How we deliver value 10 1.6.3 How our choice of 11 commodities and assets helps deliver value 1.7 Chief Financial 13 Officer's review 1.8 Financial review 14 1.8.1 Group overview 14 1.8.2 Key performance indicators 14 1.8.3 Financial results 15 1.8.4 Debt and sources of liquidity 17 1.9 How we manage risk 19 1.10 Our business 20 1.10.1 Locations 20 1.10.2 Minerals Australia 22 1.10.3 Minerals Americas 24 1.10.4 Petroleum 26 1.10.5 Commercial 27 1.11 Exploration 28 1.12 People and culture 30 1.13 Sustainability 32 1.13.1 Our sustainability approach 32 1.13.2 Our material 33 sustainability issues 1.13.3 Our sustainability performance: 34 Non-financial KPIs 1.13.4 Safety 35 1.13.5 Health 36 1.13.6 Ethics and business conduct 37 1.13.7 Climate change and 38 portfolio resilience 1.13.8 Community 44 1.13.9 Human rights 44 1.13.10 Indigenous peoples 45 1.13.11 Social investment 46 1.13.12 Environment 47 1.13.13 Water 48 1.13.14 Land and biodiversity 49 1.13.15 Tailings storage facilities 50 1.13.16 Independent limited 52 assurance report 1.14 Section 172 statement 53 1.15 Samarco 55 1.16 Risk factors 56 1.17 Performance by commodity 64 1.17.1 Petroleum 64 1.17.2 Copper 65 1.17.3 Iron Ore 66 1.17.4 Coal 67 1.17.5 Other assets 68 1.17.6 Impact of changes 68 to commodity prices 1.18 Other information 68 1.18.1 Company details and 68 terms of reference 1.18.2 Forward-looking statements 69 05 06 08 Chief Executive Our business today Delivering value Officer's rev 70-128 2.1 Corporate Governance Statement 71 2.2 Remuneration Report 98 Governance 2.3 Directors' Report 124 129-217 3.1 Consolidated Financial Statements 130 3.1.6 Notes to the financial statements 137 Financial Statements 218-308 4.1 Financial information summary 219 4.2 Alternative Performance Measures 219 Additional Information 4.3 Information on mining operations 229 4.4 Financial information by commodity 239 4.5 Production 242 4.6 Resources and Reserves 245 4.7 Major projects 268 4.8 Sustainability - performance data 269 4.9 Legal proceedings 291 4.10 Shareholder information 293 The Annual Report 2021 is available online at bhp.com Company details and terms of reference Forward-looking statements refer to section 1.18.1 refer to section 1.18.2 BHP Group Limited. ABN 49 004 028 077. BHP Group Plc. Registration number 3196209. Electric car and charging station - Getty Images BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information We are BHP, a leading global resources company. Our Purpose Our purpose is to bring people and resources together to build a better world. Our Values Sustainability Putting health and safety first, being environmentally responsible and supporting our communities. Integrity Doing what is right and doing what we say we will do. Respect Embracing openness, trust, teamwork, diversity and relationships that are mutually beneficial. Performance Achieving superior business results by stretching our capabilities. Simplicity Focusing our efforts on the things that matter most. Accountability Defining and accepting responsibility and delivering on our commitments. We are successful when: - Our people start each day with a sense of purpose and end the day with a sense of accomplishment. - Our teams are inclusive and diverse. - Our communities, customers and suppliers value their relationships with us and are better off for our presence. - Our asset portfolio is world class and sustainably developed. - Our operational discipline and financial strength enables our future growth. - Our shareholders receive a superior return on their investment. - Our commodities support continued economic growth and decarbonisation. BHP Annual Report 2021 01

1.1 Our highlights Operational consecutive No fatalities for year; a second total recordable to injury 3.7 per frequency million decreased hours worked 11% Four on time major and projects on budget, delivered including Copper the Spence and Growth South Flank Project in Iron in Ore Iron Record Ore volumes (WAIO), at Goonyella Western and Australia Olympic maintained Dam, average and Escondida concentrator throughput at record levels Investment project; agreement in Jansen to Stage pursue 1 potash a merger with Woodside; of our Petroleum intention business to unify existing our corporate Australian structure parent under company BHP's 02 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Social value 29.8% representation female workplace at the end of FY2021, a the 3.3 start percentage of the year point increase from 3.3% points Operational emissions on greenhouse track to be reduced gas (GHG) by at (from FY2020 least 30% levels) by FY2030 representation Indigenous peoples at the workforce end of FY2021 was and 13.7% 7.2% in in Australia, Canada 7.5% in Chile Principles Australia jointly on Cultural developed Heritage with in First Nations Heritage Protection Alliance 27% reduction from freshwater FY2017 withdrawal baseline, with 11% in FY2021 reduction achieved 11% Australian Commitment apprenticeships to create 2,500 and new training positions through the over BHP the FutureFit next five Academy, years opportunities and a further 1,000 in Australian skills development regional areas. graduates Around in FY2021 80% of were the Academy's female US in environmental $175 million invested and a social US$50 programs, million donation including to the BHP Foundation Getty images Scope Partnerships 3 GHG to emissions support our goals for major FY2030 steelmakers progressed who together with three represent steel production around 10% of global Financial US$25.9 bn 80% 301USc (120USc in FY2020) Profit from operations Shareholder dividends per share US$4.12 bn 66% 32.5% (16.9% in FY2020) Net debt Underlying return on capital employed BHP Annual Report 2021 03

1.2 Chair's review Dear Shareholders, I am pleased to provide our Annual Report for FY2021. In a year that has seen COVID-19 continue to challenge the lives and livelihoods of so many, I am proud of the resilience and commitment our people have demonstrated to deliver an outstanding set of results in FY2021. The strong operational performance driven by our teams across the world, combined with a diversified portfolio and disciplined approach to capital allocation, has seen the Board determine a dividend of US$3.01 per share for FY2021. This means we have returned US$15 billion to shareholders this year, and more than US$38 billion over the past three years. In a year of significant financial disruption across the globe, these results demonstrate the health of your company. BHP is in a strong position and it is against this backdrop that we are making transformative changes. We have announced our intention to unify BHP's corporate structure to a single listing on the Australian Securities Exchange. Creating one BHP today positions the company to deliver on our strategy in the future. We will be more agile, efficient and flexible, while still enabling BHP shareholders around the world to support the company as they have done for decades. We have also announced a number of strategic steps towards the future of your company, as we continue to grow our portfolio in future facing commodities. We have announced a US$5.7 billion investment in Jansen Stage 1, a top tier potash asset in Canada. BHP has also announced our intention to merge our Petroleum assets with Woodside. The resulting global top 10 independent oil and gas company will have the resilience and optionality to succeed in the energy transition. The essential resources we produce at BHP are not only fundamental to the way we live now, they are fundamental to the way we will live in the future. Based on the climate change scenario analysis The delivery of the South Flank project was an we undertook last year, we believe that the more important milestone for the Group in FY2021, action the world takes to limit climate change, and we would like to acknowledge the support the better it will be for BHP. of the Banjima people in helping us to deliver the project. Commodities like copper, nickel and iron ore will be essential for building the infrastructure Our Board renewal process continued this year and technology that will aid the world's as we welcomed Xiaoqun Clever and Christine decarbonisation ambitions, and potash will O'Reilly as independent Non-executive help feed the world's growing population. Directors in October 2020. We are pleased that Michelle Hinchliffe will join the BHP Board on Investing in future facing commodities creates 1 March 2022. Michelle has significant expertise great opportunities for BHP - it means our in financial risk management and strong global strategic goals align with our climate goals - experience, and we look forward to welcoming but it also creates a challenge. The world needs Michelle early next year. to increase production of commodities that support the transition and do so ever more We have also announced that Anita Frew sustainably. BHP has made progress against and Susan Kilsby will retire from the BHP our greenhouse gas emissions reductions Board at the end of the 2021 Annual General targets and goals, but we intend to continue Meetings. Both Anita and Susan have recently to challenge ourselves to reduce our own accepted Chair roles at significant international emissions, and work in partnership with our companies, and we wish them well. I thank Anita customers and suppliers to reduce emissions and Susan for the invaluable contribution they along the value chain. have made to BHP. Gary Goldberg has replaced Susan as BHP's Senior Independent Director, Our response to climate change and the and Christine O'Reilly has been appointed decarbonisation challenge is just one aspect Chair of the Remuneration Committee. of our broader commitment to deliver social value. Social value is the positive contribution Finally, we achieve nothing unless we do it we make to the environment and society. safely. While we are pleased that it has now It goes hand in hand with financial value in been over two years since the last fatality at our our decision-making, and we believe this operated assets, we know that a commitment approach is in the long-term best interests of to health and safety requires more than this. shareholders. We have been able to provide We are committed to stamping out sexual significant support to the communities in which assault and harassment at all our sites. This is we operate. This includes US$11.1 billion in taxes, a critical issue for BHP and for our industry. royalties and other payments to governments We have been working on this for some time, in FY2021 - and US$84.0 billion over the past but we know we must do more to make our 10 years. workplaces safe and inclusive for everyone. In FY2021, we continued to broaden our I am confident the decisions we are making to relationships with our Indigenous partners on build our company for the future, together with whose land our operated assets lie. Our Cultural continued strong operational performance and Heritage team has worked to ensure our commitment to those who rely on us, will see operational decision-making is informed by us continue to grow BHP and create value for reliable and contemporary heritage information, our shareholders and our broader stakeholders and any decision regarding cultural heritage for decades to come. is made by the most senior site leadership. Thank you for your continued support of BHP. We have also set out Regional Indigenous Peoples Plans that outline our commitment to agreement-making, Indigenous procurement, employment and social investment. Ken MacKenzie Chair 'The strong operational performance driven by our teams across the world, combined with a diversified portfolio and disciplined approach to capital allocation, has seen the Board determine a dividend of US$3.01 per share for FY2021.

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 1.3 Chief Executive Officer's review Dear Shareholders, The intended merger of BHP's Petroleum With a focus on Scope 3 emissions, we entered business with Woodside will create a global into partnerships with major steel producers I am pleased to report that BHP performed top 10 independent exploration and production in China and Japan, targeting technologies strongly in FY2021, with no one fatally injured company, with increased scale and resilience. to reduce emissions from steel making. across BHP's global operations, and record We expect shareholders to benefit from production and throughput in a number of The combined output of these steel companies significant synergies arising from the intended businesses. We completed four major capital equates to around 10 per cent of reported merger, and they will have greater choice in how projects on time and on budget, a notable feat global steel production. We also entered into a to shape the relative commodity exposures in given the pandemic context, and our approach series of innovative initiatives that seek to help their own portfolios. to capital allocation remained disciplined, reduce emissions in bulk shipping. generating strong returns for shareholders. The decision to proceed with the Jansen Finally, we continue to invest in people. I want to thank our employees and all those who Stage 1 potash project in Canada is a significant In FY2021, we trained more than 500 supported us in delivering these outcomes. milestone for BHP. Potash is a future facing apprentices and trainees through our FutureFit commodity that enables more efficient and Our operational and financial results provide Academy in Australia, and have committed to sustainable farming, which will be increasingly the strong foundation upon which we have creating 2,500 new Australian apprenticeship important in feeding a growing global announced our investment in the Jansen and trainee positions over the next five years. population and in meeting the world's need Stage 1 potash project, the intended merger We have continued our progress towards to decarbonise. Jansen Stage 1 also opens up of BHP's Petroleum business with Woodside gender balance and female participation a new front for future growth for BHP. We will Petroleum Ltd. (Woodside), and the intention in our workforce increased to 29.8 per cent be ideally positioned to meet potential future to unify the BHP corporate structure under a during the year, complementing our already growth in global demand for potash with Jansen single primary listing in Australia. These strategic gender-balanced Executive Leadership Team. Stages 2 through 4, which we anticipate will steps are intended to underpin BHP's ability Our Indigenous participation rate has also offer high returns and faster paybacks. to continue to grow shareholder value in the increased to 7.2 per cent in Australia and 7.5 per coming decades. These decisions and intended steps are cent in Chile. We are leading the way in building anticipated to result in around half of BHP's the workforce of the future. The future is clear. We believe that the world is revenues being derived from the future facing going to need increasing supply of the essential I hope that you can see that this has been a commodities of copper, potash and nickel by commodities BHP produces in order to sustain very good year for BHP. We have taken action to the end of this decade. We also expect the global economic growth and in order to shape BHP's future, while delivering very strong other half, comprising iron ore and higher-decarbonise the global economy. It is important operational and financial results. quality coking coal, to see upside as the for the world that this growing demand is met world decarbonises. The combination of a clear strategic outlook, sustainably, and BHP is ideally positioned to increasing operational excellence and greater do so given our portfolio of existing assets, our BHP continues to take action on climate exposure to future facing commodities is strong track record on sustainability and social change. In the past year we announced a new expected to enable us to deliver positive returns value creation, our operating and financial suite of climate change related targets and and grow more value for all of our stakeholders discipline, and most importantly our people. goals, together with an assessment of the in the years ahead. performance of BHP's portfolio under different The intended unification of BHP's corporate climate scenarios. The latter indicated that BHP's Thank you for your ongoing support. structure will position us even more strongly to overall portfolio is resilient and, in fact, many of be able to continue growing shareholder value. our commodities would perform best under We will be a simpler, more efficient and more our Paris-aligned scenario that sees more rapid agile company. This is expected to enable us to decarbonisation and an increase in average be more competitive and to more quickly create global temperature of no more than 1.5°C. and capitalise on opportunities to continue Mike Henry to grow value. We progressed towards our operational Chief Executive Officer emissions reduction targets and goal by entering into renewable power supply agreements for our Kwinana nickel refinery and Queensland Coal operations - adding to the Escondida and Spence copper mine agreements announced in FY2020. 'I am pleased to report that BHP performed strongly in FY2021, with no one fatally injured across BHP's global operations, and record production and throughput in a number of businesses. We completed four major capital projects on time and on budget.'

1.4 Our business today Our to bring purpose people is and to resources build a better together world. Our strategy is to deliver long-term value and returns through the cycle. We aim to do this through owning a portfolio of world class assets with exposure to highly attractive commodities that benefit from the mega-trends playing out in the world around us, by operating them exceptionally well, by maintaining a disciplined approach to capital allocation and through being industry leaders in sustainability and the creation of social value. We are a global business with over 9,000 suppliers around the world, many of which are small to medium-sized businesses that are local to our assets. We have approximately 80,000 employees and contractors who work in more than 17 countries around the world. The essential resources we produce are critical for continued economic growth and decarbonisation and we are committed to supplying them more safely, responsibly and efficiently. In FY2021, we produced: - the commodities to create the steel that goes into the infrastructure needed for growing cities around the world, including to support the energy transition - the copper and nickel required for electrification, such as copper-intensive electric vehicles and nickel-intensive batteries that can reduce the need for fossil fuels and support decarbonisation - the energy that heats homes, enables transport and powers many of the household products we use every day Future facing commodities Copper Nickel Emerging usage Electrification mega trends Wind turbines, electric vehicles, solar panels, battery charging, electric vehicle batteries, grid storage solutions 1,635.7 FY2021 production kt 89.0 FY2021 production kt Traditional usage Traditional usage Wiring, power cables, cars, smartphones, Stainless steel, refrigerators, cookware, televisions, laptops, air conditioners homeware, medical equipment Steelmaking commodities Iron ore Metallurgical coal* Emerging usage Supporting development and clean energy transition Wind turbines, carbon capture infrastructure and climate adaption to adjust to current or expected climate change and its effects 253.5 FY2021 production Mt 40.6 FY2021 production Mt Traditional usage Cities, hospitals, schools, houses, bridges, trains, cars, smartphones * Metallurgical coal is also known as steelmaking coal. Oil & Gas Petroleum Emerging usage Supporting mobility and modern life Low-emissions shipping, technology-related materials, pairing with renewables, and the transportation impacts of the e-commerce revolution 102.8 FY2021 MMboe production Traditional usage Driving, air travel, heating, generating electricity, cleaning products, medical and hygiene products, roads Electric car and charging station, Pipes and Ship - Getty Images 06 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 1.5 Positioning for the future Growing and positioning value for the future In August 2021, we announced proposed changes to our portfolio and corporate structure to position BHP for the future. These portfolio and capability changes are intended to enable us to even more strongly grow long-term value by sustainably producing the commodities the world needs for continued economic growth and decarbonisation. We seek to grow value while continuing to provide climate leadership and considering social value and financial value in the decisions we make. Petroleum business merger proposal - creating a global top 10 independent energy company BHP and Woodside have entered into a merger commitment deed to combine their respective oil and gas portfolios by an all-stock merger. The proposed merger would create a global top 10 independent energy company by production, with a global top 10 position in the liquefied natural gas (LNG) industry, and would be the largest energy company listed on the Australian Securities Exchange (ASX). With the combination of two high-quality asset portfolios, the combined business would have a high-margin oil portfolio, long-life LNG assets and the financial resilience to help supply the energy needed for global growth and development over the energy transition. The proposed merger is subject to confirmatory due diligence, negotiation and execution of full form transaction documents, and satisfaction of conditions precedent, including shareholder, regulatory and other approvals. The proposed merger is expected to be completed in the first half of CY2022. On completion, it is expected that Woodside would be owned approximately 52 per cent and 48 per cent by existing Woodside and BHP shareholders respectively. The Woodside shares would be immediately distributed to BHP shareholders. Woodside intends to remain listed on the ASX with listings on additional exchanges being considered. Ruby project in Trinidad and Tobago entry Jansen into Stage a top-tier 1 potash potash project basin - BHP's Board approved a US$5.7 billion Potash demand is underpinned by a growing investment in Jansen Stage 1 in Canada, global population and the requirement which is aligned with our strategy of growing for more productive farming with a lower our exposure to future facing commodities environmental footprint. in world class assets. The project is Jansen Stage 1 is expected to be low cost expected to produce 4.35 million tonnes and one of the world's most sustainable of potash per year with initial production potash mines, designed for a low-carbon targeted for 2027, ramping up to full footprint and low water intensity. production over two years. Jansen Stage 1 is expected to create 3,500 Jansen is located in the world's best potash jobs during peak construction and 600 jobs basin and is in an attractive investment in ongoing operations, and opportunities for jurisdiction. It opens up a new front for local and Indigenous businesses. Our goal growth for BHP and is an expandable is for the Jansen workforce to be gender resource that can support a century or balanced and for First Nations employees to more of operations. Potash provides us make up 20 per cent of the team. In the first with greater diversification by commodity, of their kind in the potash industry, we have country, and customer. signed Opportunity Agreements with six Potash is a potassium-rich salt mainly used First Nations communities around the site. in fertiliser and potassium is an essential nutrient for plant growth. A unified corporate structure - flexibility for the future BHP currently operates as a Dual Listed Company with two parent entities, both holding primary listings: BHP Group Limited (BHP Ltd) in Australia and BHP Group Plc (BHP Plc) in the United Kingdom. We are proposing to adopt a single company structure under BHP Ltd, with a primary listing on the ASX. The company would hold a standard listing on the London Stock Exchange, a secondary listing on the Johannesburg Stock Exchange and an American Depositary Receipt program listed on the New York Stock Exchange. We believe a simplified corporate structure would be more efficient and agile, better positioning the company for continued performance and growth. One-off unification costs are expected to range between US$400 to US$500 million. If a unified model is implemented, eligible BHP Plc shareholders would receive one share in BHP Ltd for each BHP Plc share they hold. The holdings of BHP Ltd shareholders would not change. BHP's dividend policy and ability to distribute fully franked dividends also would not change. Subject to final Board approval, BHP shareholders are expected to vote on unification at shareholder meetings planned for the first half of CY2022. Adding to our early stage options in future facing commodities Consistent with our strategy to secure further growth opportunities in future facing commodities, in July 2021 we made a public all-cash offer to acquire Noront Resources to gain access to a highly prospective nickel basin in an attractive region in Canada, following which Noront's Board recommended shareholders accept BHP's offer. During the year, we also signed an agreement for a nickel exploration alliance with Midland Exploration in Canada and exercised an option to sign a farm-in agreement with Encounter Resources for the Elliott copper project in Australia. Update on our non-core coal divestment process In August 2020, we announced plans to divest our interests in BHP Mitsui Coal (BMC), New South Wales Energy Coal and Cerrejón to focus our coal portfolio on higher-quality metallurgical coals used in steelmaking. In June 2021, we announced the signing of a Sale and Purchase Agreement to divest our 33.3 per cent interest in Cerrejón for US$294 million cash consideration. Subject to the satisfaction of customary competition and regulatory requirements, this is expected to complete in the second half of FY2022. The process for BMC and New South Wales Energy Coal is progressing, in line with the two-year timeframe set last year. We remain open to all options and continue consultation with relevant stakeholders. BHP Annual Report 2021 07

1.6 Delivering value 1.6.1 Our business model We for our are shareholders committed to and creating consider long-term social value value and financial value in the decisions we make. What we do Exploration Development and acquisition and mining With copper and nickel our primary targets. Our aim is to be the industry's best operator For more information through a focus on safety, operational refer to section 1.11 excellence and social value. For more information refer to section 1.6.2 What we need High performing culture Effective risk management and leading capability Our Risk Framework helps us protect and create value. Our aim is for our around 80,000 employees and contractors to work in For more information refer to section 1.9 safer, more flexible and productive ways. Our investment in technology, autonomy, recruitment and training means our teams are more skilled, Strong, mutually diverse and capable of unlocking future performance. beneficial relationships For more information refer to section 1.12 We work with customers, suppliers, business partners and community World class assets stakeholders to help create value beyond the life of our assets. We need appropriate policy settings with countries and governments that enable We have a diverse portfolio of Tier 1 assets that are largely located us to develop resources. in low-risk locations. For more information For more information refer to sections 1.10.5 and 1.13 refer to section 1.10 Responsible natural Exceptional knowledge resource management We combine our detailed understanding of our assets with We seek to efficiently and responsibly manage water and power to technology and unique market insights. actively manage the drawdown on natural resources and to be long-term For more information custodians of 8 million hectares of land and sea. refer to sections 1.6.2 and 1.10.5 For more information Disciplined use of capital refer to section 1.13 Our Capital Allocation Framework helps us to effectively and efficiently deploy capital to maintain our assets, balance sheet and reward shareholders. For more information refer to section 1.6.2 08 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Process Sales Closure and and logistics and marketing rehabilitation We process and refine ore, strive to safely We seek to maximise value through our Are considered throughout the asset lifecycle, manage waste, and aim to efficiently and commercial expertise, customer insights to help minimise our impact and optimise sustainably transport our products to and proactive risk management. post-closure value for all. customer markets. For more information For more information For more information refer to section 1.10.5 refer to section 1.13.14 refer to sections 1.10, 1.13.7 and 1.13.15 Value outcomes For our people We paid US$4.4 billion in FY2021 in salary, wages and incentives, and sought to provide the opportunities and environment to empower and inspire our people to be the best they can be at BHP. For more information refer to section 1.12 For our business We continued to make our workplaces safer and more productive. For more information refer to sections 1.6 and 1.13 For our shareholders Following a strong operational and financial performance, the Board announced a record final dividend of 200 US cents per share, bringing BHP's returns to shareholders to more than US$15 billion for the full year. For more information refer to section 1.2 For our suppliers and customers We spent US$16.5 billion with our suppliers in FY2021, with US$2.1 billion, or 12.7 per cent, spent with local suppliers, and sought new solutions with some of our steelmaking customers to reduce Scope 3 emissions. For more information refer to the BHP Economic Contribution Report and section 1.13.7 For community stakeholders We worked closely with Indigenous stakeholders to ensure their rights are respected and that intergenerational social and economic outcomes are realised as a result of our presence on their traditional lands. We invested US$175 million in community initiatives in FY2021, contributing to the resilience of the communities and environments where we have a presence. For more information refer to sections 1.13.8 and 1.13.10 For the economies where we operate Our total economic contribution was US$40.9 billion in FY2021, including US$11.1 billion globally in taxes, royalties and other payments. For more information refer to the BHP Economic Contribution Report From reducing our environmental footprint We continued to transition to renewable power in Australia and Chile and remain on track to meet our FY2030 operational emissions target. For more information refer to section 1.13.7 From the use of our products Many of our products are essential for a decarbonising world. We estimate the world will need considerably more copper, nickel and steel than it consumes today to achieve the Paris Agreement goals. For more information refer to section 1.6.3 BHP Annual Report 2021 09

1.6 Delivering value continued 1.6.2 How we deliver value Our people Our global workforce is the foundation of our business. Supporting our people is vital for high performance and for furthering our competitive advantage. For more information on our culture, including our aspirational target of a gender-balanced workforce and progress in FY2021, refer to section 1.12. Our strategic capabilities To deliver on our strategy we need outstanding strategic capabilities in areas where we can generate maximum value. The strategic capabilities we are focused on include: - discovering and appraising resources - acquiring the right assets and asset options - defining the optimal ways to develop our resources - optimising our use of capital - continuous improvement and innovation - establishing and maintaining mutually beneficial stakeholder relationships Exploration Our exploration program is focused on copper and nickel to grow our future facing resource portfolio and replenish our resource base. It is designed to enable us to generate attractive, low-cost, value-accretive options for our business and to position BHP for the best future access to our preferred resources. We use new technology and innovation in our exploration activities. For more information refer to section 1.11 Social value We are committed to creating long-term value We consider our social value work to be for our shareholders and consider social value successful when the societies where we and financial value in the decisions we make. operate are better off through our presence; Social value is our positive contribution to the communities we are part of are resilient society - to our people, partners, economy, and thriving, even in the face of change; our environment and local communities. shareholders receive a superior return on their We know that when we consider social investment; and we are a partner of choice impacts in our decision-making and for governments, investors, employees, when we build respectful and mutually communities, suppliers and customers. beneficial relationships, we create value for all of our stakeholders and in particular for our shareholders. 10 BHP Annual Report 2021 Pursuing operational excellence Our commitment to continuous improvement supports our pursuit of operational excellence. Our current and developing strengths include: - the principles, practices and tools of the BHP Operating System (BOS), BHP's way of working that makes continuous improvement part of what we do in our business every day - the capabilities and standards housed in our technical functions, which includes Technology and our Centres of Excellence, which are designed to help deliver improved safety, productivity and sustainability outcomes - our internal venture capital unit, BHP Ventures, which looks to invest in emerging companies with game-changing technologies and management teams to help drive innovation and provide us with a valuable portfolio of growth options Examples in FY2021 included multi-team and cross-functional approaches to achieve: - an increase of over 1,000 productive hours a year for the automated truck fleet at our Jimblebar iron ore operation in Western Australia - improvements in the refining process at Olympic Dam in South Australia resulting in a copper recovery rate from scrap copper that was 25 per cent above the budgeted target for FY2021 and a record for scrap copper recovery at Olympic Dam

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Technology Technology helps us to improve frontline - the use of machine learning and safety, increase productivity, reduce cost, optimisation techniques at our Western build capability and accelerate value creation. Australia Iron Ore (WAIO) rail network to We are leveraging technologies such as cloud refine WAIO's rail track grinding plan, which computing, cloud storage and smart analytics has simultaneously resulted in significantly to enhance decision-making and advance increased grinding compliance and a mining technologies to automate equipment. reduction in hours lost Highlights in FY2021 included: - at our WAIO shipping facilities at Port Hedland, data scientists and - the development of an in-house machine mathematicians worked alongside the learning tool, Trident, at Escondida that operations team on the ground to develop uses real-time data analytics to optimise algorithms that lifted our port outflow vessel scheduling and improve the revenue capacity by more than 1.4 Mtpa, by helping per tonne from copper concentrate sales. to optimise transport routes to reduce The tool is being implemented across dump times and vessel line-up our other copper concentrate assets, including Spence Capital discipline We use the Capital Allocation Framework (CAF) to assess the most effective and efficient way to deploy capital. This helps us to maintain safe and reliable operations, meet our social value and greenhouse gas emissions reduction commitments, keep our balance sheet strong, and deliver strong growth and returns to our shareholders. We then look at what would be the most valuable risk-adjusted use for any excess capital. We evaluate the range of investment opportunities and aim to optimise the portfolio based on our assessment of risk, returns and future optionality. We then develop a long-term capital plan and guidance for the Group. 1.6.3 How our choice of commodities and assets helps deliver value Our purpose is to bring together people and resources to build a better world. Building a better world requires the decarbonisation of the global economy and the protection and improvement of the quality of life of people everywhere. The world needs sustainable industries and products, cleaner infrastructure and more of the types of jobs people aspire to. This transformation cannot happen without resources and companies like BHP that seek to produce them more safely, responsibly and efficiently. Under our Paris-aligned 1.5°C scenario,(1) we expect demand for many of our commodities to be driven by continued growth in population and the global economy, decarbonisation and electrification. In our 1.5°C scenario, we anticipate demand for primary copper almost doubling and demand for primary nickel almost quadrupling over the next 30 years, compared to the past 30 years. We also expect demand for steel to almost double in the same period. We believe a wholesale shift away from blast furnace steelmaking, which depends on metallurgical coal, is still decades in the future. However, we are moving to concentrate our coal portfolio on higher-grade coals used for steelmaking (metallurgical coal) that have the greatest potential upside for quality premiums as steelmakers seek to improve blast furnace utilisation and reduce emissions intensity. Potash is expected to become vital for more efficient agricultural practices as governments and industry seek more efficient and environmentally sustainable agriculture, as well as to ease pressure on increasingly scarce land for farming. As the shift to cleaner energy sources occurs, we expect the world will still need oil and gas to power mobility and everyday life on the pathway to decarbonisation. We see oil and gas remaining attractive in terms of their investment fundamentals for at least the next decade. There is no easy path to achieving net zero emissions, but we believe the world has a responsibility to meet this challenge. The task of reducing emissions is more difficult in some sectors and countries, and that activities that reduce or remove carbon, such as natural climate solutions or carbon capture, use and storage, will be required to offset those carbon- emitting activities that are harder to abate, such as industrial processes like steel and cement manufacturing, as the world aims for net zero emissions. We are taking action to play our part in operating more responsibly to provide essential resources. We have been taking action on climate for decades and continue to work towards our target of reducing operational emissions by at least 30 per cent by FY2030 (from FY2020 levels(2)) and our goal of achieving net zero operational emissions by 2050.(3) We are working to support the acceleration of decarbonisation in our value chain, including in the hard to abate steelmaking sector. And we will continue to progress work to assess the potential physical impacts of climate change and what will be required to build resilience. For more information regarding our goals to reduce our emissions, refer to section 1.13.7. Through our focus on operational and financial excellence, ever more sustainable production and use of our commodities, and the creation of broader social value, we believe BHP will play an important role in achieving a cleaner and more prosperous world, while creating greater value for our stakeholders through doing so. (1) Refer to our Climate Change Report 2020 for the assumptions and outputs and limitations of our 1.5°C scenario, used in our most recent portfolio analysis. (2) The FY2020 baseline will be adjusted for any material acquisitions and divestments based on greenhouse gas emissions at the time of the transaction. Carbon offsets will be used as required. (3) These positions are expressed using terms that are defined in the Glossary, including the terms 'net zero', 'target' and 'goal'. BHP Annual Report 2021 11

1.6 Delivering value continued Our portfolio We are actively managing our portfolio for value creation to maximise the opportunity to yield financial returns for shareholders and to create greater value for our partners, communities and all other stakeholders. Following our Board's approval to invest in Jansen Stage 1, the proposed merger of Petroleum and the proposed exit of our non-core coal assets, BHP will be focused on producing higher-quality iron ore and metallurgical coal for steelmaking, copper for electrification and renewable energy, nickel for batteries and potash to make food production and land use more efficient. We will also continue to create and secure further options in future facing commodities. Iron ore Lowest-cost iron ore majors globally,(1) with improved product quality - Record annual production at WAIO in FY2021. - South Flank sustaining project in Western Australia achieved first ore in May 2021 and is expected to enhance our product mix in FY2022. - WAIO is among the world's lowest carbon emissions intensity iron ore producers. Metallurgical coal World class resource with a focus on higher-quality product - Seeking value growth by enhancing productivity and focusing on higher-grade coal with greatest potential for quality premiums. - Implementing technology applications to improve safety and productivity. - Renewable power purchasing agreement in September 2020 to supply up to half of the electricity needs of our Queensland Coal operations from low-emissions sources. Copper Growth at some of the largest(2) and most sustainable copper mines globally - Securing more copper resources through exploration and early-stage entry options. - Pursuing technical innovation to unlock value. - Escondida and Spence on track for 100 per cent renewable electricity supply by the mid-2020s with four renewable power contracts to commence from FY2022. Nickel Options to grow from the second-largest nickel sulphide resource globally - One of the lowest carbon emissions nickel miners in the world. - Transitioning to new mines and focusing on higher-margin products and technical innovation. - Seeking more resources through exploration, acquisition and early-stage options. Potash Developing a potash business with embedded optionality - Approved a US$5.7bn investment in the Jansen Stage 1 potash project in the world's best potash basin in Canada. - Expected to be one of the world's most sustainable potash mines, with a low carbon footprint and low water intensity. - Goal for a gender-balanced workforce and for First Nations employees to make up around 20 per cent of the team. Petroleum Creation of a global top 10 independent energy company - Proposed merger of our Petroleum business with Woodside expected to unlock synergies, value and choice for BHP shareholders. - On completion, existing BHP shareholders would own approximately 48 per cent of the combined business. - Combined business expected to benefit from a high-margin oil portfolio, long-life LNG assets and the financial resilience to help supply the energy needed for global growth over the energy transition. (1) third Based party on published data may unit not be costs comparable by major iron to our ore data. producers. There may be differences in the manner that third parties calculate or report unit costs data compared to BHP, which means that (2) Based on published production figures. 12 BHP Annual Report 2021

1.7 Chief Financial Officer's review Dear Shareholder, Our operational performance, when combined The Western Australia Iron Ore underlying with higher iron ore and copper prices, Return on Capital Employed of 89 per cent I am pleased to report on BHP's financial results drove underlying EBITDA up 69 per cent to is an outstanding result, helped by higher for FY2021. US$37.4 billion - at a margin of 64 per cent. iron ore prices but also record production. I feel privileged to be back at BHP after more Underlying attributable profit increased by Our copper assets are showing the benefits of than 15 years to continue the work and build on 88 per cent to US$17.1 billion. capital investment and higher prices. Our focus the significant contribution of my predecessor, remains on improving returns in other parts of The shareholder dividend for the first half was Peter Beaven. the business. 101 US cents per share. Combined with 200 BHP delivered excellent financial results in US cents per share in the second half, the Based on the consistent performance of the FY2021, supported by strong operational total return for the year was a record 301 US past five years, and despite the cyclical nature performance, disciplined capital investment cents per share. This represents an 89 per cent of our industry, our earnings and returns are and our Marketing team's ability to negotiate payout ratio. reflective of our high-quality stable business. competitive commercial terms for our products. These FY2021 results demonstrate the resilience Our total direct economic contribution for of our diversified portfolio. FY2021 was US$40.9 billion. This includes payments to suppliers, wages and benefits Thank you for your continued support of BHP. for our approximately 80,000 employees and I look forward to speaking with more of our US$40.9bn contractors, dividends, taxes and royalties, and shareholders in the months ahead. Our total economic voluntary investment in social projects across contribution for FY2021 the communities where we operate. In FY2021, our tax, royalty and other payments to governments totalled US$11.1 billion. Of this, US$11.1bn 84.7 per cent or US$9.4 billion was paid in David Lamont Australia. Our global adjusted effective tax rate Chief Financial Officer Tax, royalty and other payments in FY2021 was 34.1 per cent, which is broadly to governments in FY2021 in line with our average adjusted effective tax rate over the past decade of 33.4 per cent. Once royalties are included, our FY2021 rate 301 US cents increases to 40.7 per cent. Shareholder dividends We have continued to apply the Capital per share Allocation Framework to direct cash where it can generate the best returns. Over the year, underlying Return on Capital Employed strengthened to 32.5 per cent. 'Our operational performance, when combined with higher iron ore and copper prices, drove underlying EBITDA up 69 per cent to US$37.4 billion-at a margin of 64 per cent. Underlying attributable profit increased by 33 percent to US$17.1 billion.'' BHP Annual Report 2021 | 13

1.8 Financial review 1.8.1 Group overview We prepare our Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. We publish our Consolidated Financial Statements in US dollars. All Consolidated Income Statement, Consolidated Balance Sheet and Consolidated Cash Flow Statement information below has been derived from audited Financial Statements. For more information refer to section 3 We use various Alternative Performance Measures (APMs) to reflect our underlying performance. These APMs are not defined or specified under the requirements of IFRS, but are derived from the Group's Consolidated Financial Statements prepared in accordance with IFRS. The APMs are consistent with how management reviews financial performance of the Group with the Board and the investment community. Section 4.2, which is incorporated into the Strategic Report by reference, includes our APMs and section 4.2.1 outlines why we believe the APMs are useful and the calculation methodology. We believe these APMs provide useful information, but they should not be considered as an indication of, or as a substitute for statutory measures as an indicator of actual operating performance (such as profit or net operating cash flow) or any other measure of financial performance or position presented in accordance with IFRS, or as a measure of a company's profitability, liquidity or financial position. 1.8.2 Key performance indicators Our key performance indicators (KPIs) enable us to measure our sustainable development and financial performance. These KPIs are used to assess performance of our people throughout the Group. For information on our approach to performance and reward refer to section 2 For information on our overall approach to executive remuneration, including remuneration policies and remuneration outcomes refer to section 2 Following BHP's sale of the Onshore US assets, the contribution of these assets to the Group's results is presented in this Annual Report as Discontinued operations. To enable more meaningful comparisons with prior year disclosures and in some cases to comply with applicable statutory requirements, the data in section 1.8.2, except for Underlying EBITDA, has been presented to include Onshore US assets. Summary of financial measures Year US$M ended 30 June 2021 2020 Consolidated Income Statement (section 3.1.1) Revenue 60,817 42,931 Profit after taxation from Continuing and Discontinued operations attributable to BHP shareholders (Attributable profit) 11,304 7,956 Dividends per ordinary share - paid during the period (US cents) 156.0 143.0 Dividends per ordinary share - determined in respect of the period (US cents) 301.0 120.0 Basic earnings per ordinary share (US cents) 223.5 157.3 Consolidated Balance Sheet (section 3.1.3)(1) Total assets 108,927 105,733 Net assets 55,605 52,175 Consolidated Cash Flow Statement (section 3.1.4) Net operating cash flows 27,234 15,706 Capital and exploration expenditure 7,120 7,640 Other financial information (section 4.2) Net debt 4,121 12,044 Underlying attributable profit 17,077 9,060 Underlying EBITDA 37,379 22,071 Underlying basic earnings per share (US cents) 337.7 179.2 Underlying Return on Capital Employed (per cent) 32.5 16.9 (1) All the comparative IFRS Interpretations periods Committee have been restated on IAS 12 to 'Income reflect changes Taxes', resulting to the Group's in the retrospective accounting policy recognition following of US a decision $950 million by of tax goodwill liabilities. at Refer Olympic to note Dam 39 (included 'New and in amended the Copper accounting segment) standards and an offsetting and interpretations US$1,021 million and changes increase to in accounting deferred policies' in section 3 for further information. For more selected consolidated financial information derived from the historical audited Consolidated Financial Statements of the group refer to section 4.1 Footnotes to tables and infographics indicate whether data presented in section 1.8.2 is inclusive or exclusive of Onshore US. Details of the contribution of the Onshore US assets to the Group's results are disclosed in note 29 'Discontinued operations' in section 3. Underlying attributable profit(1)(3) Underlying EBITDA(2)(3) US$ billion US$ billion 20 40 37.4 15 17.1 30 10 20 23.2 23.2 22.1 8.9 9.1 9.1 19.4 5 6.7 10 0 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2017 FY2018 FY2019 FY2020 FY2021 Net operating cash flows(1) Underlying Return on Capital US$ billion Employed(1)(3) Per cent 30 35 25 30 32.5 27.2 25 20 15 20 18.5 17.9 16.8 15.7 15 16.9 10 16.0 10 14.2 5 9.8 5 0 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2017 FY2018 FY2019 FY2020 FY2021 (1) Includes data for Continuing and Discontinued operations for the financial years being reported. (2) Excludes data from Discontinued operations for the financial years being reported. (3) For more information on APMs, refer to section 4.2. 14 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Reconciling our financial results to our key performance indicators Profit Earnings Cash Returns Measure: from Profit Continuing after taxation 13,451 US$M Profit from Continuing after taxation 13,451 US$M Net cash operating flows from 27,234 US$M Profit from Continuing after taxation 13,451 US$M operations operations Continuing operations operations Made Profit after taxation Profit after taxation Cash generated by the Group's Profit after taxation up of: consolidated operations, after dividends received, interest, proceeds and settlements of cash management related instruments, taxation and royalty-related taxation. It excludes cash flows relating to investing and financing activities. Adjusted Exceptional items 4,470 Exceptional items 4,470 Exceptional items 5,797 for: before taxation before taxation after taxation Tax effect of 1,327 Tax effect of 1,327 Net finance 1,220 exceptional items exceptional items costs excluding exceptional items Exceptional (24) Depreciation 6,824 items after tax and amortisation Income tax benefit (337) attributable to non- excluding on net finance costs controlling interests exceptional items Profit after taxation 20,131 Exceptional items 5,773 Impairments of 264 excluding net attributable to property, plant finance costs and BHP shareholders and equipment, exceptional items financial assets and Profit after taxation (2,147) Net Assets at the 52,175 intangibles excluding attributable to non- beginning of period exceptional items controlling interests Net Debt at the 12,044 Net finance 1,220 beginning of period costs excluding exceptional items Capital employed 64,219 at the beginning Taxation expense 9,823 of period excluding exceptional items Net Assets at the 55,605 end of period Net Debt at the 4,121 end of period Capital employed 59,726 at the end of period Average 61,973 capital employed To reach Underlying 17,077 Underlying EBITDA 37,379 Net operating 27,234 Underlying Return 32.5% our KPIs attributable profit cash flows on Capital Employed we Why use it? do Underlying attributable profit Underlying EBITDA is used to help Net operating cash flows Underlying Return on Capital Employed allows the comparability of assess current operational profitability provide insights into how we are is an indicator of the Group's capital underlying financial performance excluding the impacts of sunk managing costs and increasing efficiency. It is provided on an by excluding the impacts of costs (i.e. depreciation from initial productivity across BHP. underlying basis to allow comparability exceptional items and is also investment). It is a measure that of underlying financial performance the basis on which our dividend management uses internally to assess by excluding the impacts of payout ratio policy is applied. the performance of the Group's exceptional items. segments and make decisions on the allocation of resources. The following table provides more information on the revenue and expenses of the Group in FY2021: Year ended 30 June US$ 2021 M US$ 2020 M US$ 2019 M Continuing operations Revenue(1) 60,817 42,931 44,288 Other income 510 777 393 Expenses excluding net finance costs (34,500) (28,775) (28,022) Loss from equity accounted investments, related impairments and expenses (921) (512) (546) Profit from operations 25,906 14,421 16,113 Net finance costs (1,305) (911) (1,064) Total taxation expense (11,150) (4,774) (5,529) Profit after taxation from Continuing operations 13,451 8,736 9,520 Discontinued operations Loss after taxation from Discontinued operations - (335) Profit after taxation from Continuing and Discontinued operations 13,451 8,736 9,185 Attributable to non-controlling interests 2,147 780 879 Attributable to BHP shareholders 11,304 7,956 8,306 (1) Includes the sale of third-party products. BHP Annual Report 2021 15

1.8 Financial review continued Profit after taxation attributable to BHP Total expenses excluding net finance costs of US$0.5 billion combined with a US$0.5 billion shareholders increased from a profit of of US$34.5 billion increased by US$5.7 billion, impairment charge at Cerrejón, partially offset US$8.0 billion in FY2020 to a profit of or 20 per cent, from FY2020. This includes by higher current year profits from Antamina US$11.3 billion in FY2021. Attributable profit of a US$2.0 billion increase of net impairment of US$0.4 billion primarily due to higher prices. US$11.3 billion in FY2021 includes an exceptional charges recognised against the Group's Potash Further information on the total impact of the loss of US$5.8 billion (after tax), compared to an assets of US$1.3 billion and at NSWEC of Samarco dam failure provision and impairment attributable profit of US$8.0 billion, including an US$1.1 billion recognised in FY2021 compared charges connected with equity accounted exceptional loss of US$1.1 billion (after tax) in the to US$0.4 billion at Cerro Colorado in FY2020. investments, can be found at note 3 'Exceptional prior period. The FY2021 exceptional loss mainly The increase also included higher price linked items' in section 3 and note 13 'Impairment of relates to impairment charges recognised in costs of US$0.9 billion reflecting higher royalties non-current assets' in section 3 respectively. relation to the Group's energy coal and Potash due to higher realised prices for iron ore and Net finance costs of US$1.3 billion increased assets as well as the Samarco dam failure. US$0.5 billion of higher third party concentrate by US$0.4 billion, or 43 per cent, from FY2020. For more information on Exceptional items purchase costs. Depreciation and amortisation This was primarily attributable to premiums of refer to note 3 'Exceptional items' in section 3 expense increased by US$0.7 billion reflecting a US$395 million paid as part of the value accretive decrease in estimated remaining reserves at Bass Revenue of US$60.8 billion increased by multi-currency hybrid debt repurchase programs Strait due to underperformance of the reservoir US$17.9 billion, or 42 per cent, from FY2020. completed during the year. in the Turrum field and lower overall condensate This increase was primarily attributable to higher and natural gas liquids (NGL) recovery from the For more information on net finance costs average realised prices for iron ore, copper, refer to section 1.8.4 and note 22 'Net finance nickel, oil, natural gas and thermal coal, partially Bass Strait gas fields and higher depreciation costs' in section 3 offset by lower average realised prices for at WAIO due to a change in Yandi's life of mine. metallurgical coal and LNG. Record volumes This was combined with higher foreign exchange Total taxation expense of US$11.2 billion achieved at WAIO, along with the highest losses of US$1.6 billion reflecting the impact of increased by US$6.4 billion from FY2020. annual production at Olympic Dam since our the stronger Australian dollar and Chilean peso The increase was primarily due to significantly acquisition in 2005, were more than offset by against the US dollar on our cost base. higher profits and higher withholding tax on dividends, mostly driven by higher the impacts of expected grade declines at Loss from equity accounted investments, related commodity prices. Escondida and Spence, natural field decline impairments and expenses of US$(0.9) billion in FY2021, increased by US$0.4 billion from For more information on income tax expense in Petroleum and adverse weather events. refer to note 6 'Income tax expense' in section 3 FY2020. The increase was primarily due to For information on our average realised prices and production of our commodities unfavourable foreign exchange impacts in refer to section 1.17 relation to the Samarco dam failure provision Principal factors that affect Underlying EBITDA The following table and commentary describes the impact of the principal factors(1) that affected Underlying EBITDA for FY2021 compared with FY2020: US$M ended Underlying 30 June EBITDA 2020 for year 22,071 Net price impact: Change in sales prices 16,965 average Higher average realised realised prices for prices metallurgical for iron ore, coal and copper, LNG. nickel, oil, natural gas and thermal coal, partially offset by lower Price-linked costs (870) Increased higher nickel royalties prices, reflect partially higher offset realised by lower prices royalties for iron for ore petroleum and higher and third metallurgical party concentrate coal. purchase costs reflect 16,095 Change in volumes (312) Record volumes at WAIO with strong performance across the supply chain, were offset by natural field decline at Petroleum. at The record expected levels, lower the new grades stream at Escondida of concentrate and Spence production more from than the offset Spence Escondida Growth concentrator Option that throughput came online maintained in December 2020 and highest annual copper production achieved at Olympic Dam since our acquisition in 2005. Lower maintenance volumes and due higher to adverse strip ratios weather at BMC. impacts This in was the partially Gulf of offset Mexico by (Petroleum) the acquisition and NSWEC, of the additional combined 28 per with cent dragline working maintenance interest shutdowns at Shenzi in and the increased prior period. volumes at Nickel West following resource transition and major quadrennial Change in controllable cash costs: Operating cash costs (34) Higher volumes inventory increased drawdowns following planned at Olympic maintenance Dam due to shutdowns stronger mill in the and prior smelter period performance and additional and costs at Nickel associated West as with the initiatives ramp-up across our of South assets, Flank. lower This technology was largely costs offset and by a gain strong from cost the performance optimised outcome supported from by renegotiation cost reduction of cancelled power contracts at Escondida and Spence. Exploration and 109 Lower exploration expenses due to lower seismic activity in Petroleum. business development 75 Change in other costs: Exchange rates (1,588) Impact of the stronger Australian dollar and Chilean peso against the US dollar. Inflation (286) Impact of inflation on the Group's cost base. Fuel and energy 223 Predominantly lower diesel prices at our minerals assets. Non-Cash 282 Lower deferred stripping depletion at Escondida in line with planned development phase of the mines. One-off items (122) Volume loss across our operations due to COVID-19 restrictions, predominantly at our copper operations in Chile. (1,491) Asset sales 17 Ceased and sold operations 242 Reflects the divestment of Neptune and a decrease in costs related to the closure and rehabilitation provision for closed mines of US$311 million compared with the prior year. Other items 682 Other includes higher average realised sales prices received by Antamina. Underlying EBITDA for year 37,379 ended 30 June 2021 (1) For information on the method of calculation of the principal factors that affect Underlying EBITDA, refer to section 4.2.2. 16 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Cash flow The following table provides a summary of the Consolidated Cash Flow Statement contained in section 3.1.4: Year ended 30 June US 2021 $M US 2020 $M US 2019 $M Net operating cash flows from Continuing operations 27,234 15,706 17,397 Net operating cash flows from Discontinued operations - 474 Net operating cash flows 27,234 15,706 17,871 Net investing cash flows from Continuing operations (7,845) (7,616) (7,377) Net investing cash flows from Discontinued operations - (443) Proceeds from divestment of Onshore US, net of its cash - 10,427 Net investing cash flows (7,845) (7,616) 2,607 Net financing cash flows from Continuing operations (17,922) (9,752) (20,515) Net financing cash flows from Discontinued operations - (13) Net financing cash flows (17,922) (9,752) (20,528) Net increase/(decrease) in cash and cash equivalents 1,467 (1,662) (10,477) Net increase/(decrease) in cash and cash equivalents from Continuing operations 1,467 (1,662) (10,495) Net increase/(decrease) in cash and cash equivalents from Discontinued operations - 18 Net operating cash inflows of US$27.2 billion Underlying Return on Capital Employed This was primarily due to the significant increased by US$11.5 billion. This reflects (ROCE) of 32.5 per cent increased by operating cash flow generated from strong stronger iron ore and copper commodity prices 15.6 percentage points (FY2020: 16.9 per financial and operational performance, and and strong operational performance across the cent) reflecting the significant increase in the favourable commodity price environment Group's portfolio partially offset by the impacts profit after taxation excluding net finance experienced during the year. Gearing, which is of a stronger Australian dollar and Chilean peso costs and exceptional items of US$9.5 billion. the ratio of Net debt to Net debt plus Net assets, against the US dollar, lower grades at Escondida The Underlying ROCE in FY2021 includes was 6.9 per cent at 30 June 2021, compared and Spence, natural field decline at Petroleum US$12.1 billion of Assets under Construction with 18.8 per cent at 30 June 2020. and adverse weather events. (average of ending balances for FY2021 of During FY2021, two multi-currency hybrid US$10.4 billion and FY2020 of US$13.8 billion) Net investing cash outflows of US$7.8 billion debt repurchase programs were completed including major projects in Potash and Mad increased by US$0.2 billion. This reflects the (US$1.7 billion on 17 September 2020 and Dog Phase Two, that are not yet producing investment in an additional 28 per cent working US$1.1 billion on 23 November 2020) and were their planned contribution to earnings. interest in Shenzi from Hess Corporation of funded from surplus cash. The Group also US$0.5 billion, increasing our share from For more information on redeemed US$1.0 billion of 6.250 per cent Assets under Construction 44 per cent to 72 per cent; partially offset refer to note 11 'Property, plant hybrid notes on 19 October 2020, US$0.3 billion by lower purchases of property plant and and equipment' in section 3 of 6.750 per cent hybrid notes on 30 December equipment of US$0.3 billion as the Group 2020 (the balance following the repurchase commissioned SGO and South Flank in FY2021. 1.8.4 Debt and sources programs), and €1.25 billion of 4.750 per For more information and a cent hybrid notes on 22 April 2021 using breakdown of capital and exploration of liquidity surplus cash. expenditure on a commodity basis refer to section 1.17 Our policies on debt and liquidity management At the subsidiary level, Escondida borrowed have the following objectives: US$550 million to refinance maturing long-term Net financing cash outflows of US$17.9 billion debt during FY2021. - a strong balance sheet through the cycle increased by US$8.2 billion. This reflects the higher repayment of interest bearing liabilities of - diversification of funding sources US$6.0 billion mainly due to bond repayments - maintain borrowings and excess cash on maturity of US$3.5 billion and early repurchase predominantly in US dollars of hybrid bonds of US$3.4 billion. This was Interest bearing liabilities, combined with higher dividends paid in FY2021 net debt and gearing of US$1.0 billion reflecting the record half year dividend and higher dividends paid to non- At the end of FY2021, Interest bearing liabilities controlling interests of US$1.1 billion driven by were US$21.0 billion (FY2020: US$27.0 billion) higher profits achieved at Escondida. and Cash and cash equivalents were For more information US$15.2 billion (FY2020: US$13.4 billion). refer to section 1.8.4 and This resulted in Net debt(1) of US$4.1 billion, note 20 'Net debt' in section 3 which represented a decrease of US$7.9 billion compared with the net debt position at 30 June 2020. (1) For We use the definition APMs to reflect and method our underlying of calculation financial of APMs, performance. refer to section Refer to 4.2.1. section For 4.2 the for composition a discussion of on net the debt, APMs refer we to use. note 20 'Net debt' in section 3. BHP Annual Report 2021 17

1.8 Financial review continued Funding sources No new Group-level debt was issued in FY2021 and debt that matured during the year was not refinanced. These actions enhanced BHP's capital structure and extended BHP's average debt maturity. Our Group-level borrowing facilities are not subject to financial covenants. Certain specific financing facilities in relation to specific assets are the subject of financial covenants that vary from facility to facility, as is considered normal for such facilities. In addition to the Group's uncommitted debt issuance programs, we hold the following committed standby facility: available Facility Drawn Undrawn available Facility Drawn Undrawn US$ 2021 M US$ 2021 M US$ 2021 M US$ 2020 M US$ 2020 M US$ 2020 M Revolving credit facility(1) 5,500 - 5,500 5,500 - 5,500 Total financing facility 5,500 - 5,500 5,500 - 5,500 (1) During stop to the the year Group's we completed uncommitted a one-year commercial extension paper of program. the facility The which combined is now amount due to mature drawn under on 10 October the facility 2025. or as The commercial committed paper US$ will 5.5 not billion exceed revolving US$ 5.5 credit billion. facility As operates at 30 June as 2021, a back- US$ undrawn nil commercial balance and paper an interest was drawn rate comprising (FY2020: US$ an nil), interbank therefore rate US$ plus 5.5 a margin billion of applies committed to any facility drawn was balance. available The to agreed use (FY2020: margins US$ are typical 5.5 billion) for .a A credit commitment facility extended fee is payable to a company on the with BHP's credit rating. For more information on the maturity profile of our debt obligations and details of our standby and support agreements refer to note 23 'Financial risk management' in section 3 In our opinion, working capital is sufficient for our present requirements. Our Moody's credit rating has remained at A2/P-1 outlook stable (long-term/ short-term) throughout FY2021. Moody's affirmed its credit rating on 31 May 2021. Our Standard & Poor's rating changed from A/A-1 outlook stable (long-term/short-term) to A/A-1 CreditWatch negative (long-term/short-term) on 23 August 2021. Credit ratings are forward-looking opinions on credit risk. Standard & Poor's and Moody's credit ratings express the opinion of each agency on the ability and willingness of BHP to meet its financial obligations in full and on time. A credit rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by an assigning rating agency. Any rating should be evaluated independently of any other information. The following table expands on the net debt, to provide more information on the cash and non-cash movements in FY2021: Year ended 30 June US$ 2021 M US$ 2020 M Net debt at the beginning of the financial year (12,044) (9,446) Net operating cash flows 27,234 15,706 Net investing cash flows (7,845) (7,616) Free cash flow 19,389 8,090 Carrying value of interest bearing liability repayments 7,433 1,533 Net settlements of interest bearing liabilities and debt related instruments (7,424) (1,984) Dividends paid (7,901) (6,876) Dividends paid to non-controlling interests (2,127) (1,043) Other financing activities(1) (234) (143) Other cash movements (10,253) (8,513) Fair value adjustment on debt (including debt related instruments)(2) 58 88 Foreign exchange impacts on cash (including cash management related instruments) (1) (26) IFRS 16 leases taken on at 1 July 2019-(1,778) Lease additions (1,079) (363) Others (191) (96) Non-cash movements (1,213) (2,175) Net debt at the end of the financial year (4,121) (12,044) (1) Other financing activities mainly comprises purchases of shares by Employee Share Option Plan trusts of US$234 million (FY2020: US$143 million). (2) The assets/liabilities Group hedges as effective against the hedged volatility derivatives in both exchange (cross currency and interest and interest rates on rate debt, swaps), and in also accordance exchange with on cash, accounting with associated standards. movements For more information, in derivatives refer reported to note in 23 Other 'Financial financial risk management' in section 3. Dividends Our dividend policy provides for a minimum 50 per cent payout of Underlying attributable profit at every reporting period. The minimum dividend payment for the second half of FY2021 was US cents 109 per share. Recognising the importance of cash returns to shareholders, the Board determined to pay an additional amount of US cents 91 per share, taking the final dividend to US cents 200 per share (US$10.1 billion). Total dividends of US$15.2 billion (US$3.01 per share) have been determined for FY2021, including an additional amount of US$6.7 billion above the minimum payout policy. These returns are covered by total free cash flow of US$19.4 billion in FY2021.

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 1.9 How we manage risk Risk value, management and is central helps to achieving us to protect our purpose and create and strategic objectives. Our Risk Framework has Our focus when managing risks associated with develop remediation plans, adjust BHP's Risk four pillars: risk strategy, strategic business decisions is to enable the Appetite Statement or KRIs, enhance our Risk risk governance, risk process pursuit of high-reward strategies. Therefore, as Framework or inform strategic decisions. well as having controls designed to protect BHP and risk intelligence. Additional information on risk management from threats, we seek to implement controls and internal controls is shared between the to enhance and/or increase the likelihood of Risk strategy Board, the RAC and, for HSEC matters, the opportunities being realised. For example, Sustainability Committee, and is provided we might establish additional governance, Risk classification by the Business Risk and Audit Committees oversight or reporting to help ensure new (covering each business region), management We classify all risks to which BHP is exposed initiatives remain on track. committees, our Internal Audit and Advisory using our Group Risk Architecture. This is a team and our External Auditor. tool designed to identify, analyse, monitor Risk governance For more information and report risk, which provides a platform to Three lines model refer to section 2.1 understand and manage risks. Similar risks are considered together in groups and categories. BHP uses the 'three lines model' of risk Risk process This gives the Board and management visibility governance and management to define the over the aggregate exposure to risks on a role of different teams across the organisation Our Risk Framework requires identification Group-wide basis and supports performance in managing risk. This approach sets clear and management of risks (both threats and monitoring and reporting against BHP's accountabilities for risk management and opportunities) to be embedded in business risk appetite. provides appropriate 'checks and balances' activities through the following process: to support us in protecting and growing value. Risk appetite - Risk identification - threats and opportunities BHP's Risk Appetite Statement is approved The first line is provided by our frontline are identified and each is assigned an owner, by the Board and is a foundational element of staff, operational management and people or accountable individual. our Risk Framework. It provides guidance to in functional roles - anyone who makes - Risk assessments - risks are assessed using management on the amount and type of risk decisions, deploys resources or contributes appropriate and internationally recognised we seek to take in pursuing our objectives. to an outcome is responsible for identifying techniques to determine their potential and managing the associated risks. The Risk impacts and likelihood, prioritise them and Key risk indicators team and other second-line functions are inform risk treatment options. responsible for providing expertise, support, Key risk indicators (KRIs) are set by management - Risk treatment - controls are implemented monitoring and challenge on risk-related to help monitor performance against our risk to prevent, reduce or mitigate threats, and matters, including by defining Group-wide appetite. They also support decision-making by enable or enhance opportunities. minimum standards. The third line, our Internal providing management with information about - Monitoring and review - risks and controls Audit and Advisory team, is responsible for financial and non-financial risk exposure at a are reviewed periodically and on an ad hoc providing independent and objective assurance Group level. Each KRI has a target, or optimal basis (including where there are high-over the control environment (governance, level of risk we seek to take, as well as upper potential events or changes in the external risk management and internal controls) to and lower limits. Where either limit is exceeded, environment) to evaluate performance. the Board and Executive Leadership Team. management will review potential causes to Additional assurance may also be provided by Our Risk Framework includes requirements and understand if BHP may be taking too little or external providers, such as our External Auditor. guidance on the tools and process to manage too much risk and to identify whether further current and emerging risks. action is required. BHP Board and Committees Risk culture The Board reviews and monitors the Current risks effectiveness of the Group's systems of financial Current risks are risks that could impact BHP Our risk management approach is underpinned and non-financial risk management and internal today or in the near future, and comprise by a risk culture that supports decision-making control. The broad range of skills, experience current operational risks (risks that have their in accordance with BHP's values, objectives and and knowledge of the Board assists in providing origin inside BHP or occur as a result of our risk appetite. a diverse view on risk management. The Risk activities) and current strategic risks (risks that We use a common foundation across BHP and Audit Committee (RAC) and Sustainability may enhance or impede the achievement of to build the tools and capabilities required Committee assist the Board by reviewing our strategic objectives). to enable us to understand, monitor and and considering BHP's risk profile (covering Current risks include material and non-material manage our risk culture. These include tailored operational, strategic and emerging risks) risks (as defined by our Risk Framework). cultural assessments, Group-wide risk culture on a biannual basis. The materiality of a current risk is determined dashboards and the inclusion of behavioural For more information by estimating the maximum foreseeable loss auditing in our internal audit plan. refer to sections 2.1.7, 2.1.10 and 2.1.11 (MFL) if that risk was to materialise. The MFL is Strategic business decisions Performance against risk appetite is monitored the estimated impact to BHP in a worst-case Strategic business decisions and the pursuit of and reported to the RAC, as well as the scenario without regard to probability and our strategic objectives can inform, create or Sustainability Committee for HSEC matters, assuming all risk controls, including insurance affect risks to which BHP is exposed. These risks enabling the Board to challenge and hold and hedging contracts, are ineffective. may represent opportunities as well as threats. management to account where necessary. Our principal risks Our Risk Appetite Statement and KRIs assist Second-line risk-based reviews are undertaken are described in section 1.16 in determining whether a proposed course to provide greater oversight and enhance our of action is within BHP's risk appetite. understanding and management of the Group's most significant risks, with outcomes reported to management, the RAC and Sustainability Committee. These outcomes may be used to BHP Annual Report 2021 19

1.9 How we manage risk continued 1.10 Our business Our focus for current risks is to prevent their 1.10.1 Locations occurrence or minimise their impact should they occur, but we also consider how to maximise possible benefits that might be BHP locations (includes non-operated joint ventures) associated with strategic risks (as described in the 'Risk strategy' section). Current material risks are required to be evaluated once a year at a minimum to determine whether our exposure to the risk is within our risk appetite. Emerging risks Emerging risks are newly developing or changing risks that are highly uncertain and difficult to quantify. They are generally driven by external influences and often cannot be prevented. BHP maintains a 'watch list' of emerging themes 23 12 that provides an evolving view of the changing external environment and how it might 37 impact our business. We use the watch list to support the identification and management 36 of emerging risks, as well as to inform and 1335 test our corporate strategy. 34 Once identified, our focus for emerging risks 15 is on structured monitoring of the external environment, advocacy efforts to reduce the likelihood of the threats manifesting and 16 identifying options to increase our resilience 11 to these threats. Risk intelligence 26 The Risk team provides the Board and senior 30 management with insights on trends and 9 aggregate exposure for our most significant 8 10 risks, as well as performance against risk 7 appetite. Risk reports may also provide an update on the Risk Framework, overview of (and 24 material changes in) the risk profile and updates on emerging risk themes and risk culture. They are supported by an opinion from the Chief Risk Officer (or other relevant individual). We maintain a risk insights dashboard designed to provide current, data-driven and actionable risk intelligence to our people at all levels of the business to support decision-making. This tool empowers the business to manage risks more effectively, with increased accuracy and transparency. The Board also receives reports from other teams to support its robust assessment of BHP's emerging and principal risks, including internal Minerals Australia Minerals Americas audit reports, ethics and compliance reports and the Chief Executive Officer's report. 1 Olympic Dam 7 Escondida Australia Chile For information on our principal risks, and robust risk assessment 2 Western Australia Iron Ore 8 Pampa Norte and viability statement Australia Chile refer to section 1.16 3 New South Wales Energy Coal 9 Antamina (1) Australia Peru 4 BHP Mitsubishi 10 Samarco (1) Alliance Brazil Australia 11 Cerrejón (1) 5 BHP Mitsui Coal Colombia Australia 12 Jansen 6 Nickel West Canada Australia 13 Resolution Copper (1) US For more information For more information refer to section 1.10.2 refer to section 1.10.3 (1) Non-operated joint venture. 20 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information BHP principal office locations 19 Minerals Australia office 29 Global Business Services Adelaide, Australia Kuala Lumpur, Malaysia 20 Minerals Australia office 30 Metals exploration office Petroleum Brisbane, Australia Lima, Peru 21 Global headquarters 31 Global Business Services Melbourne, Australia Manila, Philippines 14 Australia Production Unit Australia 22 Minerals Australia office 32 Marketing and corporate office Perth, Australia Singapore, Singapore 15 Gulf of Mexico Production Unit Gulf of Mexico Joint Interest Unit (1) 23 Minerals Americas office 33 Corporate office US Saskatoon, Canada London, UK 16 Trinidad and Tobago Production Unit 24 Minerals Americas office 34 Petroleum office Trinidad and Tobago Santiago, Chile Houston, US 17 Algeria Joint Interest Unit (1) 25 Corporate office 35 Metals exploration office Algeria Shanghai, China Tucson, US 18 Australia Joint Interest Unit (1) 26 Metals exploration office 36 Corporate office Australia Quito, Ecuador Washington DC, US 27 Corporate office 37 Corporate office New Delhi, India Toronto, Canada 28 Corporate office For more information Tokyo, Japan refer to section 1.10.4 BHP Annual Report 2021 21

1.10 Our business continued 1 2 Western Australia Existing Coober Pedy operations Port 1.10.2 Port Hedland Olympic Dam Finucane Island Nelson Point Minerals South Hedland Goldsworthy Yarrie Rail Line Australia Karratha Marble Bar Port Augusta Minerals Australia includes Northern Great operated assets in Western Highway Port Hedland - Australia, Queensland, New Newman Rail Line Chichester South Wales and South Port Lincoln Deviation Karijini Australia, focused on iron ore, Adelaide Park National metallurgical coal, copper, Victor Harbor Yandi South Australia Kangaroo Mining Area Orebody C 24/25 nickel and energy coal. Island The commodities produced Olympic Dam South Flank Orebody 18 Port Mt Whaleback Jimblebar by our Minerals Australia Highway Orebody 29/30/35 Newman assets are transported by rail to port and exported to our Copper Iron ore global customers. 1 Olympic Dam 2 Western Australia Iron Ore Overview Overview Located in South Australia, Olympic Dam (BHP Western Australia Iron Ore (WAIO) is an ownership: 100 per cent) is one of the world's most integrated system of four processing hubs significant deposits of copper, gold, silver and and six open-cut mines in the Pilbara region uranium. It comprises underground and surface of northern Western Australia, connected operations, and is a fully integrated processing by more than 1,000 kilometres of rail facility from ore to metal. infrastructure and port facilities. Ore mined underground is hauled by an automated WAIO's Pilbara reserve base is relatively train system to crushing, storage and ore hoisting concentrated, allowing development through facilities or trucked directly to the surface. integrated mining hubs connected to the mines and satellite orebodies by conveyors or spur Olympic Dam has a fully integrated metallurgical lines. This approach seeks to maximise the complex with a grinding and concentrating circuit, value of installed infrastructure by using the a hydrometallurgical plant incorporating solvent same processing plant and rail infrastructure extraction circuits for copper and uranium, a for several orebodies. copper smelter, a copper refinery, including an electro-refinery and an electrowinning-refinery, Ore is crushed, beneficiated (where necessary) and a recovery circuit for precious metals. and blended at the processing hubs - Mt Newman operations, Yandi, Mining Area C and Jimblebar Key developments in FY2021 - to create lump and fines products that are Copper production increased by 20 per transported along the Port Hedland-Mt Newman cent to 205 kilotonnes (kt) (172 kt in FY2020), rail line to the Finucane Island and Nelson Point reflecting improved smelter performance port facilities at Port Hedland. and strong underground mine performance. This was the highest annual copper production There are four main WAIO joint ventures (JVs): since Olympic Dam was acquired in 2005. Mt Newman, Yandi, Mt Goldsworthy (which Record gold production of 146 thousand includes the new South Flank mining hub) troy ounces (koz) was also achieved. and Jimblebar. BHP's interest in each is 85 per cent, with Mitsui and ITOCHU owning the The short-term focus remains on completing remaining 15 per cent. The joint ventures are the multi-year asset integrity program designed unincorporated, except Jimblebar. to improve the reliability of operations, which is on track heading into a planned major smelter BHP, Mitsui, ITOCHU and POSCO are also maintenance campaign in FY2022. A new participants in the POSMAC JV. BHP's interest refinery crane commenced operation in FY2021 in POSMAC is 65 per cent. The ore from the to improve stability and reliability at the electro- POSMAC JV is sold to the main joint ventures. refinery. At Oak Dam, next stage resource All ore is transported on the Mt Newman JV and definition drilling commenced in May 2021 to Mt Goldsworthy JV rail lines. The Nelson Point inform resource characterisation and potential port facility is owned by the Mt Newman JV and development pathways. the Finucane Island facility is owned by the Mt Goldsworthy JV. WAIO's current licensed export capacity is 290 million tonnes per annum (Mtpa). Olympic Dam 22 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 4 3 North Queensland Queensland, 5 Export Terminal Australia Gunnedah Bowen Tamworth BMA Mine Collinsville Dalrymple BMC Mine BMA Terminal Bay Quirindi Goonyella Terminal Riverside Mackay Rail Broadmeadow South BMA Hay Point Walker Coal Terminal Creek Moranbah Caval Poitrel Daunia Muswellbrook Ridge Peak Downs Saraji Mt Arthur Dysart Singleton Rockhampton RG NSW, Maitland Blackwater Tanna Australia Cessnock Emerald NSWEC Newcastle Blackwater Gladstone Port Jimblebar Rail Key developments in FY2021 BMA operates seven metallurgical coal mines Energy coal WAIO production increased by 1 per cent to a - Goonyella Riverside, Broadmeadow, Daunia, record 252 million tonnes (Mt) (248 Mt in FY2020), Peak Downs, Saraji, Blackwater and Caval 3 New South Wales Energy Coal or 284 Mt on a 100 per cent basis (281 Mt in Ridge. With the exception of the Broadmeadow FY2020), reflecting record production at Jimblebar underground longwall operation, BMA's mines Overview and Mining Area C, which included first ore from are open cut. BMA also owns and operates New South Wales Energy Coal (NSWEC) (BHP South Flank in May 2021. This was achieved despite the Hay Point Coal Terminal near Mackay. ownership: 100 per cent) comprises the Mt Arthur significant wet weather impacts, temporary Coal open-cut energy coal mine in the Hunter BMC owns and operates two open-cut rail labour shortages due to COVID-19 related Valley. It has access to infrastructure in the Hunter metallurgical coal mines - South Walker border restrictions and the planned tie-in activity Region, including a multi-user rail network and coal Creek and Poitrel. to integrate South Flank with the Mining Area C loading terminal access at the Port of Newcastle processing hub. Strong operational performance Key developments in FY2021 through Newcastle Coal Infrastructure Group across the supply chain reflected continued Queensland Coal's metallurgical coal production (28 per cent owned by BHP) and Port Waratah improvements in car dumper performance was 41 Mt (41 Mt in FY2020), reflecting a strong Coal Services. and reliability, and improved train cycle times. operational performance including record Key developments in FY2021 production at Goonyella and record tonnes Yandi commenced its end-of-life ramp-down NSWEC production decreased by 11 per cent from Broadmeadow, but offset by operational as South Flank ramped up. Yandi is expected to to 14 Mt (16 Mt in FY2020) reflecting operational delays due to significant wet weather impacts provide supply chain flexibility with a lower level delays due to significant weather impacts and and planned wash plant maintenance at Saraji of production to continue for a few years. higher strip ratios, as well as lower volumes due to and Caval Ridge. At South Walker Creek, despite an increased proportion of washed coal. This was South Flank is scheduled to ramp up to full record stripping, production decreased as a result due to our strategy to focus on higher-quality production capacity of 80 Mtpa (100 per cent of higher strip ratios due to ongoing impacts from products in response to increased price premiums basis) over three years. South Flank's high-quality geotechnical constraints and lower yields. for these products, and reduced port capacity ore is expected to increase WAIO's average iron The divestment process for our interests in BMC following damage to a shiploader at the Newcastle ore grade from 61 to 62 per cent, and the overall that was announced in August 2020 is progressing, port in November 2020. The shiploader returned proportion of lump from 25 to between 30 and in line with the two-year timeframe we set last to operation in July 2021. 33 per cent, once fully ramped up. South Flank year. We remain open to all options and continue iron ore will be transported (eight to 16 kilometres) The divestment process for NSWEC that was consultation with relevant stakeholders. by overland conveyors to the Mining Area C announced in August 2020 is progressing, in processing hub. line with the two-year timeframe we set last year. We remain open to all options and continue Metallurgical coal consultation with relevant stakeholders. 4 5 Queensland Coal Nickel Overview 6 Nickel West Queensland Coal comprises the BHP Mitsubishi Overview Alliance (BMA) (BHP ownership: 50 per cent) and BHP Mitsui Coal (BMC) (BHP ownership: 80 per Nickel West (BHP ownership: 100 per cent) is a cent) assets in the Bowen Basin, Queensland. fully integrated nickel business located in Western It has access to infrastructure in the Bowen Basin, Australia, with three streams of concentrate. including a modern, multi-user rail network and It comprises open-cut and underground mines, its own coal-loading terminal at Hay Point, near concentrators, a smelter and refinery. Mackay. Queensland Coal also has contracted Disseminated sulphide ore is mined at the Mt capacity at three other multi-user port facilities - Keith open-pit operation and crushed and the Port of Gladstone (RG Tanna Coal Terminal), processed onsite to produce nickel concentrate. Dalrymple Bay Coal Terminal and North Nickel sulphide ore is mined at the Cliffs and Queensland Export Terminal (formerly known Leinster underground mines and Rocky's as Abbot Point Coal Terminal). Reward open-pit mine and processed through a concentrator and dryer at Leinster. BHP Annual Report 2021 23

1.10 Our business continued 6 8 Western PERU Chile Australia 7 Newman Nickel West Mine Port Highway 1.10.3 Cerro Minerals Colorado Mt Keith Iquique BOLIVIA Cli_s Leinster Americas Pica Geraldton The Minerals Americas asset Pacific group includes projects, Ocean CHILE Kalgoorlie Smelter operated assets and non- Kambalda Concentrator operated joint ventures in Tocopilla Perth Canada, Chile, Peru, the United Calama Fremantle Kwinana Refinery States, Colombia and Brazil. Spence Mejillones Ravensthorpe Our operated copper assets in the Americas, Antofagasta ARGENTINA Albany Escondida and Pampa Norte, are open-cut mines that produce copper concentrate and Minera Escondida copper cathodes. The non-operated assets in A concentrator plant in Kambalda processes ore the Minerals Americas portfolio are open-cut Copper and concentrate purchased from third parties. mines that produce copper (Antamina), iron The three streams feed the Kalgoorlie nickel ore (Samarco) and energy coal (Cerrejón). 7 Escondida smelter, which uses a flash furnace to produce The commodities produced by our Minerals Americas assets are transported to port Overview nickel matte. The Kwinana nickel refinery then by pipeline, rail or road and exported to Escondida (BHP ownership: 57.5 per cent) is a turns this into nickel powder and briquettes. customers around the world. leading producer of copper concentrate and Key developments in FY2021 cathodes located in the Atacama Desert in Nickel West production increased by 11 per In FY2021, our Chilean assets operated with northern Chile. cent to 89 kt (80 kt in FY2020) reflecting strong a substantial reduction in their operational workforces due to preventative measures Escondida's two pits feed three concentrator performances from the Mt Keith Satellite implemented to mitigate the impact plants, as well as two leaching operations mine (Yakabindie) and Venus underground of COVID-19. We expect the operating (oxide and sulphide). mine (part of the Leinster underground mine environment across our Chilean assets to complex) which reached full production. Key developments in FY2021 remain challenging, with reductions in our Escondida copper production decreased by 10 per Construction of a nickel sulphate plant at the on-site workforce expected to continue cent to 1,068 kt (1,185 kt in FY2020), as continued Kwinana nickel refinery is in the final stages of in FY2022. strong concentrator throughput of 371 kilotonnes commissioning, with first production expected per day (ktpd), at record levels was more than in the September 2021 quarter. The plant is offset by the impact of lower concentrator feed expected to produce at least 100 kilotonnes per grade and lower cathode production, due to annum (ktpa) of nickel sulphate for the lithium-ion reduced operational workforce associated with battery industry. COVID-19 restrictions. A power purchase agreement with Southern Cross Energy for Nickel West's Goldfields-based 8 Pampa Norte operations was extended to 2038, adding flexibility Overview for renewable power generation. Nickel West Pampa Norte (BHP ownership: 100 per cent) also entered into a renewable power purchasing consists of two assets in the Atacama Desert in agreement to supply up to 50 per cent of the northern Chile - Spence and Cerro Colorado. power for its Kwinana refinery operations from Merredin Solar Farm. These two agreements Spence produces copper cathodes and, are expected to improve BHP's position as one since December 2020, copper concentrate. of the lowest-carbon nickel miners in the world. Cerro Colorado produces copper cathodes. Nickel West is constructing a 38-megawatt solar Its current environmental licence expires at farm and battery energy storage system for its the end of CY2023. Mt Keith and Leinster operations. Key developments in FY2021 Nickel West completed the acquisition of the Pampa Norte copper production decreased by Honeymoon Well development project and the 10 per cent to 218 kt (243 kt in FY2020) largely due remaining 50 per cent interest in the Albion Downs to a decline in stacking feed grade at Spence of North and Jericho exploration joint ventures, 11 per cent, planned maintenance at Spence and located about 50 kilometres from Mt Keith. the impact of a reduced operational workforce because of COVID-19 restrictions. The Spence Growth Option (SGO) produced first copper concentrate in December 2020 and is in the process of ramping-up to full capacity. Escondida 24 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 0 50km Puerto Bolivar 12 9 11 Saskatchewan, Canada Caribbean Sea BHP project Prince Albert BHP mineral Uribia leases Huari Riohacha Huaraz Antamina Gulf of Wolverine mine COLOMBIA Maicao Venezuela Burr Huarmey Saskatoon Cerrejón Jansen Punta Young Yorkton Lobitos Maracaibo Boulder VENEZUELA La Guajira Melville province, Huari Colombia Moose Jaw Regina Province, Ancash, Peru Antamina mine Cerrejón Assiniboia Weyburn Port Port Pipeline Lima Rail Potash Key developments in FY2021 Energy coal Antamina copper production increased by 12 Jansen Potash Project 16 per cent to 144 kt (125 kt in FY2020) and zinc 11 Cerrejón Overview increased by 64 per cent to 145 kt due to higher Overview concentrator throughput and higher zinc grades. The Jansen Potash Project (BHP ownership: During FY2021, Antamina continued with a strong Cerrejón (BHP ownership: 33.33 per cent) owns, 100 per cent) is located about 140 kilometres focus on developing improvement opportunities operates and markets (through an independent east of Saskatoon, Canada. to maintain productivity and progressing on its company) one of the world's largest open-cut modified environmental impact assessment for energy coal mines, located in the La Guajira Jansen's large resource provides the opportunity its life extension project from CY2028 to CY2036, province of Colombia. Cerrejón owns integrated to develop it in stages, with Jansen Stage 1 which includes extension of current approved rail and port facilities. (Jansen S1) expected to produce approximately tailings capacity, additional waste dumps and 4.35 Mt of potash per annum on completion, Key developments in FY2021 new pit design. and sequenced brownfield expansions of up Cerrejón production declined by 30 per cent to to 12 Mtpa (approximately 4 Mtpa per stage). approximately 5 Mt (7 Mt in FY2020). This was 13 Resolution Copper mainly due to a 91-day strike and subsequent BHP holds mineral leases covering around 9,600 Overview delays to the restart of production as well as square kilometres in the Saskatchewan potash basin. Resolution Copper (BHP ownership: 45 per the impact of a reduced operational workforce Key developments in FY2021 cent), located in the US state of Arizona, is associated with COVID-19 restrictions. The focus was on installing watertight steel and operated by Rio Tinto (55 per cent ownership Cerrejón maintained its focus on higher-quality concrete final liners in the production and service interest). Resolution Copper is one of the largest products and maintained lower operational costs shafts, and continuing the installation of essential undeveloped copper projects in the world and through the implementation of a transformation surface infrastructure and utilities, with current scope has the potential to become the largest copper program, which allowed it to remain cash flow of work 93 per cent complete at the end of FY2021. producer in North America. The Resolution positive despite the volume decline. On 17 August 2021, BHP approved US$5.7 billion Copper deposit lies more than 1,600 metres In June 2021, BHP entered into a sale and (C$7.5 billion) in capital expenditure for the Jansen beneath the surface. purchase agreement with Glencore to divest S1 potash project in the province of Saskatchewan, Key developments in FY2021 our 33.3 per cent interest in Cerrejón for Canada. Jansen S1 includes the design, In FY2021, Resolution progressed its prefeasibility US$294 million cash consideration. The transaction engineering and construction of an underground study and safely completed the shaft No. 9 work has an effective economic date of 31 December potash mine and surface infrastructure including (November 2020). The shaft No. 9 project 2020. The purchase price is subject to adjustments a processing facility, a product storage building, involved deepening the historic shaft from its at transaction completion, which may include an and a continuous automated rail loading system. original depth at 1,460 metres below the surface adjustment for any dividends paid by Cerrejón to Jansen S1 product will be shipped to export to a final depth of 2,086 metres and linking it BHP during the period from signing to completion. markets through Westshore, in Delta, British with the existing No. 10 shaft via development Subject to the satisfaction of competition and Columbia and the project includes funding activities underground. regulatory requirements, we expect completion for the required port infrastructure. The Resolution Copper project is subject to a to occur in the first half of CY2022. First ore is targeted in the CY2027 calendar year, federal permitting process in the US (the National with construction expected to take approximately Environmental Policy Act (NEPA)). The Forest six years, followed by a ramp up period of two years. Service published the Final Environmental Impact Copper Statement (FEIS) on 15 January 2021. On 1 March 2021, the US Department of Agriculture (USDA) 9 Antamina directed the Forest Service to rescind the FEIS. BHP supports meaningful consultation with local Overview communities and Native American Tribes as Antamina (BHP ownership: 33.75 per cent) is a large, Resolution continues to study the project. low-cost copper and zinc mine in north central Peru For more information with by-products including molybdenum and silver. refer to section 1.13.10 Antamina owns integrated pipeline and port facilities and is operated independently by Compañía Minera Antamina S.A. BHP Annual Report 2021 25

1.10 Our business continued 10 15 New Orleans Minas Gerais, Espírito Santo, Brazil LOUISIANA Samarco 1st pipeline 2nd pipeline 1.10.4 Nova Era - 3rd pipeline Belo Horizonte Antônio Dias Pipeline 2 Petroleum (Main (Guilman-Amorim operational; o_ices) hydroelectric plant) non-operational pipelines 1 and 3 Our Petroleum unit comprises Gulf of Mexico conventional oil and gas Mining Lease Vitória assets located in the US Gulf of (Sales o_ice) Mariana - Mexico, Australia, Trinidad and Ouro Preto Muniz Freire (Germano (Muniz Freire Tobago, Algeria and Mexico, operational hydroelectric Anchieta unit) plant) (Operational and appraisal and exploration unit and Shenzi ocean terminal options in Trinidad and Tobago, at Ponta Ubu) central and western US Gulf United States Atlantis of Mexico, eastern Canada Mad Dog and Barbados. BHP acreage The crude oil and condensate, gas and natural Iron ore gas liquids (NGLs) produced by our Petroleum United States assets are sold on the international spot 10 Samarco market or domestic market. 15 Gulf of Mexico Overview On 17 August 2021, BHP and Woodside Overview Samarco (BHP ownership: 50 per cent) comprises entered into a merger commitment deed to Our producing fields include our operated asset a mine and three concentrators located in the combine their respective oil and gas portfolios Shenzi (BHP ownership: 72 per cent) and our non-Brazilian state of Minas Gerais, four pellet plants by an all-stock merger. The merger is subject operated assets, Atlantis (BHP ownership: 44 per and a port located in Anchieta in the state of to confirmatory due diligence, negotiation and cent) and Mad Dog (BHP ownership: 23.9 per cent). Espírito Santo. Three 400-kilometre pipelines execution of full form transaction documents, They are located between 155 and 210 kilometres connect the mine site to the pelletising facilities. and satisfaction of conditions precedent offshore from the US state of Louisiana. Samarco is operated independently by Samarco including shareholder, regulatory and We also own 25 per cent and 22 per cent Mineração S.A. Samarco's main product is iron other approvals. respectively of the companies that own ore pellets. Pellets are independently marketed by and operate the Caesar oil pipeline and Samarco and sold to customers around the world. the Cleopatra gas pipeline. Key developments in FY2021 These pipelines transport oil and gas from Having met the licensing requirements, Samarco the Green Canyon area, where our fields are restarted iron ore pellet production at one located, to connecting pipelines that transport concentrator in December 2020 and produced product onshore. 1.9 Mt of iron ore pellets in FY2021. Key developments for FY2021 For further information on the - The Atlantis Phase 3 project, a new subsea Fundão dam failure production system that ties back to the Atlantis refer to section 1.15 facility, achieved first production in July 2020. Atlantis Phase 3 is expected to have the capacity to produce up to 38,000 gross barrels of oil equivalent per day. - On 6 November 2020, BHP finalised a membership interest purchase and sale agreement with Hess Corporation to acquire an additional 28 per cent working interest in Shenzi for US$480 million, which brings our working interest to 72 per cent. - The Mad Dog Phase 2 project achieved a major milestone in April 2021 as the semi-submersible floating production platform, Argos, arrived in the US from South Korea. First production from Mad Dog Phase 2 is expected in the middle of the CY2022. - On 20 May 2021, BHP finalised a purchase and sale agreement with EnVen Energy Ventures, LLC to divest our interest in and operation of Neptune. - On 5 August 2021, the Board approved the funding to develop the Shenzi North Project, a two-well subsea tie-in to the Shenzi platform. First production is targeted in CY2024. Shenzi 26 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 0 200km 0 10 20 30km 1.10.5 Commercial 14 18 BHP's Commercial function seeks to maximise Thebe commercial value across our end-to-end supply North West Shelf VICTORIA chain and provides improved service levels to our assets and customers through subject-Ma ra Tuna matter expertise, simplified processes and the Snapper Sale Kipper centralisation of standardised activities. Longford Scarborough Dampier The function is organised around the following core activities in our value chain, supported Bream Turrum Flounder Halibut by business partnering, credit and market risk management, and strategy and planning activities. Pyrenees Onslow Barracouta Blackback Sales and Marketing Macedon Kingfish Connects BHP's resources to market through commercial expertise, sales and operations Western Australia planning, customer insights and proactive risk Bass Strait management. It presents a single face to markets WESTERN AUSTRALIA across multiple assets, with a view to realising BHP acreage BHP acreage maximum value for our products and supporting Oil fields Oil fields sustainability initiatives in our downstream Gas fields Gas fields supply chain. Australia Key developments in FY2021 Maritime and Supply In December 2020, BHP and the North West Shelf Chain Excellence 14 18 joint venture partners executed fully termed gas processing agreements for processing third-party Manages BHP's enterprise-wide maritime Overview gas from the Pluto and Waitsia projects through transportation strategy and the chartering We operate Macedon (BHP ownership: 71.43 the North West Shelf facilities, extending the life of ocean freight to meet BHP's inbound and per cent) which is an offshore gas field located of the asset. outbound transportation needs. It focuses on around 75 kilometres west of Onslow, Western supply chain excellence and sourcing sustainable, The Bass Strait West Barracouta gas project Australia and an onshore gas processing facility cost-efficient marine freight. We seek to achieved first production in April 2021. located around 17 kilometres southwest of mitigate supply chain risk by vetting the safety Onslow. The operation produces gas from four Rest of world performance of the ships loading BHP cargo. subsea wells, with gas piped onshore to the processing plant. Procurement 16 17 Purchases the goods and services used by We operate Pyrenees (BHP ownership: 39.99- Overview our projects, assets and functions globally. 71.43 per cent), which is a floating production, BHP operates Ruby (BHP ownership: Procurement works to help optimise equipment storage and off-take facility, located about 23 68.46 per cent) and Greater Angostura (BHP performance, reduce operating costs, improve kilometres off Northwest Cape, Western Australia. ownership: 45 per cent interest in a production working capital and create social value. The facility produces oil from six offshore fields. sharing contract) fields, which form part of our It manages supply chain risk, fosters supplier We have a 32.5-50 per cent non-operated interest Trinidad and Tobago operations - an integrated innovation and develops sustainable relationships in Bass Strait, which is a collection of offshore oil and gas development consisting of two fields with global suppliers and local businesses in the installations and onshore processing facilities located between 40 and 45 kilometres offshore communities where we operate. producing oil and gas. It is located between 25 east of Trinidad. and 80 kilometres off the southeastern coast of Warehousing, Inventory, BHP has a non-operated interest in an onshore Logistics and Property Australia and onshore Victoria. Gas is piped from integrated development, the Rhourde Ouled offshore fields to the onshore Longford processing Designs and operates our inbound supply Djemma (ROD) Integrated Development (BHP facility for processing with liquefied petroleum chain networks for the delivery and warehousing ownership: 28.85 per cent effective interest), gas transported to market by pipeline, road of spare parts, operating supplies and that produces oil and is located 900 kilometres tanker or ship and ethane by pipeline. consumables, and designs and operates southeast of Algiers. It comprises six satellite oil fields that pump oil back to a dedicated our office workspaces globally. We have a 12.5-16.67 per cent non-operated interest in the North West Shelf project, which processing train. Market Analysis and Economics comprises offshore oil and gas fields, with Key developments in FY2021 onshore gas processing infrastructure to Ruby achieved first oil production in May 2021 Develops BHP's proprietary view on the outlook produce oil, LNG, condensate, LPG and domestic ahead of schedule and on budget. Drilling and for commodity demand and prices, as well as our gas. The offshore facilities are located about completion of the remaining wells at Ruby is input costs, the world economy, climate change 125 kilometres northwest of Dampier in Western ongoing with subsequent wells expected to be and financial markets. The team works with our Australia. Gas is piped from offshore platforms placed into production in CY2021 and project Procurement, Maritime, and Sales and Marketing to the onshore Karratha Gas Plant for processing, completion expected in the first half of CY2022. sub-functions to help optimise end-to-end with LNG and all liquefied products exported to commercial value, and with the Portfolio Strategy market by ship, and domestic gas transported and Development and External Affairs functions by pipeline. to identify and respond to long-run strategic changes in our operating environment. Global Business Services Global Business Services (GBS) unites common shared services across the Group into a single operation with capabilities focused on transaction efficiency, process intelligence and automation. GBS manages end-to-end functional processes designed to deliver continuous process improvement and a better customer experience. BHP Annual Report 2021 27

1.11 Exploration Our exploration program is volume and metal accumulations through the deposit. Elsewhere during the year, we continued focused on copper and nickel use of data analytics and augmented intelligence. to seek, secure and test concessions in regions to replenish our resource base The study is expected to create a competitive such as Ecuador, south-western United States, advantage and position BHP for future access to South Australia, Chile and Peru. Greenfield nickel and enhance our portfolio. new search spaces. exploration activities were initiated in Western Australia and we started to look beyond Australia The purpose is to generate attractive, low- Following exploration results in previous drilling for new nickel opportunities through a partnership cost, value-accretive options by leveraging our phases, which confirmed mineralised intercepts in Canada. competitive strengths. For the first time, the of copper with associated gold, uranium and Petroleum and Metals teams partnered together silver, in May 2021 the Oak Dam copper discovery on a Joint Global Endowment study to explore in South Australia commenced the next stage of future growth opportunities and global, yet-to-find definition drilling to inform future design of the BHP exploration regions Eastern Canada South West US Gulf of Mexico North West Mexico (US) Gulf of (Mexico) Mexico Barbados Trinidad and Tobago Colombia Ecuador Peru Western Australia Northern Territory Chile South Australia Victoria Copper exploration regions Petroleum exploration regions Nickel exploration regions Exploration in FY2021 Technology collaboration and research partnerships In addition, on 27 July 2021, we entered into are key to our metals exploration strategy. In particular, a definitive Support Agreement with Noront Metals (copper, nickel) we are focused on developing and deploying Resources (Noront) to extend the Company an all-The Metals Exploration teams are focused on technologies that will allow us to get to the 'Next cash takeover offer, following which Noront's Board identifying and gaining access to new search 400' (that is below the first 400 metres of the of Directors recommended shareholders accept spaces to test the best targets capable of Earth's surface). Similarly, we are conducting BHP's offer. Noront owns the Eagles Nest nickel-delivering large, high-quality, Tier 1 deposits and research in collaboration with university groups to copper deposit in the James Bay Lowlands, Ontario, maintaining research and technology activities determine controls on high-grade mineralisation in an area highly prospective for nickel known as aligned with our exploration strategy. Despite the and undertaking programs in Chile and the United the Ring of Fire. slowdown and restrictions on movement due to States to further our own exploration effort under the COVID-19 pandemic, the field teams were Petroleum cover. These two elements are intended to allow us active in Chile, Peru, Ecuador, the United States In FY2021, Petroleum continued to add to and to continue to be successful in discovery within the and Australia. These activities involved early stage mature the exploration potential of our portfolio. areas where we operate that are often incorrectly reconnaissance work through target definition considered mature. In the US Gulf of Mexico, we expanded our acreage and drill testing. With the addition of nickel to positions through lease sale participation. In July the exploration portfolio, the sphere of work Our business partnerships continue to deliver 2020, the regulator awarded BHP two blocks(1) expanded into Western Australia, where BHP encouraging results as we continued to add to our in Green Canyon, central Gulf of Mexico and holds a significant land position and drill programs early stage options in future facing commodities. three blocks(2) in the western Gulf of Mexico. are scheduled pending appropriate clearances. During FY2021, we advanced our earn-in with We additionally progressed our partnering strategy Metals Exploration also extended its partnership Luminex in Ecuador, undertaking drilling at our Tarqui in the Gulf of Mexico through lease exchange with Midland Exploration, a Canadian company with project. Elsewhere in Ecuador, we maintained a agreements with Chevron, expanding our portfolio interests in copper and nickel projects in northern 13.6 per cent ownership in SolGold plc, the majority in the central Gulf of Mexico. Québec in Canada, to generate nickel targets in owner and operator of the Alpala porphyry copper-Québec, including the completion of a regional gold project. We also own a 5 per cent interest airborne electromagnetic survey. We initiated a in Midland Exploration Inc., a mineral exploration global assessment of new nickel opportunities company in Canada. In Mexico, the team continued to further strengthen the pipeline. the financial agreement with Riverside Resources, which exposes BHP to new search spaces and exploration opportunities. In Australia, we committed to a partnership with Encounter Resources to explore for sediment-hosted copper deposits (1) Leases were awarded in blocks: GC80 and GC123. in the Northern Territory of Australia. (2) Leases were awarded in blocks: AC36, AC80 and AC81. 28 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Metals Exploration team at work in Ecuador In Mexico, we commenced an Ocean Bottom Exploration and appraisal wells drilled, or in the process of drilling, during the year included: Node seismic acquisition over the Trion field BHP Spud Water Total well in November 2020, as part of our ongoing Well Location Target equity date depth depth Status evaluation and analysis. The survey was completed Broadside-1 Trinidad and Oil 65% (BHP 20 August 2,019m 7,064m Dry hole; in the March 2021 quarter. The results will be Tobago Block 3 operator) 2020 plugged and incorporated into the current evaluation of the abandoned Trion opportunity. In addition, we received formal approval for a 124-day extension for the evaluation Exploration expenditure and exploration periods through 1 July 2021 and Our resource assessment exploration expenditure increased by 5 per cent in FY2021 to US$138 million, 1 July 2022 respectively, because of the suspension while our greenfield expenditure increased by 23 per cent to US$54 million. Expenditure on resources of activities in 2020 due to COVID-19 restrictions. assessment and greenfield exploration over the last three financial years is set out below. In Trinidad and Tobago, we drilled the Broadside-1 2021 2020 2019 exploration well on Block 3, which fully satisfied Year ended 30 June US$M US$M US$M the remaining drilling obligations on the Southern Greenfield exploration 54 44 62 exploration licenses. The Broadside-1 well reached Resources assessment 138 132 126 the main reservoir on 22 October 2020 and did Total metals exploration and assessment 192 176 188 not encounter hydrocarbons. The well was a dry hole and was plugged and abandoned on Petroleum exploration and appraisal 8 November 2020. The Southern licenses expired Petroleum exploration expenditure for FY2021 was US$322 million, of which US$296 million was in June 2021, and BHP elected to participate in expensed. Expenditure on petroleum exploration over the last three financial years is set out below. a Market Development Phase (MDP) for Block 2021 2020 2019 5 to retain the acreage around the LeClerc and Year ended 30 June US$M US$M US$M Victoria discoveries. The proposed MDP is pending regulatory approval. The Transocean drilling rig Petroleum exploration 322 564 685 arrived on location and commenced drilling of Our petroleum exploration program prioritised drilling commitments for development wells and strategic two Calypso gas appraisal wells for our northern partnering in FY2021. A US$540 million exploration program is planned for FY2022 as we progress testing licenses in July 2021. of our future growth opportunities and evaluate potential new basins for future entries. In Australia, BHP participated in a multi-client 3D Exploration expense seismic acquisition in the Gippsland Basin that was completed in September 2020. Analysis will Exploration expense represents that portion of exploration expenditure that is not capitalised in accordance continue through FY2022 and will inform us of with our accounting policies, as set out in note 11 'Property, plant and equipment' in section 3. the prospectivity in this area. Exploration expense for each segment over the last three financial years is set out below. Year ended 30 June US 2021 $M US 2020 $M US 2019 $M Exploration expense Petroleum(1) 382 394 409 Copper 53 54 62 Iron Ore 55 47 41 Coal 7 9 15 Group and unallocated items(2) 19 13 10 Total Group 516 517 537 (1) Includes as impaired US.$ 86 million (FY2020: US$ nil; FY2019: US$21 million) exploration expense previously capitalised, written off (2) assets Group (previously and unallocated disclosed items as includes closed mines functions, in the other Petroleum unallocated reportable operations, segment), including and consolidation Potash, Nickel adjustments West and legacy . BHP Annual Report 2021 29

1.12 People and culture We aim to recruit and retain Inclusion and diversity At the end of FY2021 we had 5,257 more female the best people ensuring we employees than reported in 2016. In FY2021, we An inclusive and diverse workforce promotes increased the representation of women working deliver our strategy and run our safety, productivity and wellbeing, and underpins at BHP by 2.7 per cent. Overall, women represent operations safely and productively. our ability to attract new employees. We employ, 29.8 per cent of our employee workforce including develop and promote based on people's strengths employees on extended absence such as parental Around 80,000 employees and contractors work and do not tolerate any form of discrimination, leave. The Executive Leadership Team is confident for us globally; they are the foundation of our bullying, harassment, exclusion or victimisation. of achieving 40 per cent female representation business. We create and promote an inclusive Our systems, processes and practices are by the end of FY2025, meeting the definition and diverse environment where the safety and designed to support fair treatment for all of our of gender balance used by entities such as the wellbeing of our people is the highest priority. people. In July 2020, we published our Inclusion International Labor Organization and HESTA, To enable our people to perform at their best, we and Diversity Statement confirming our vision, which consider balance to be a minimum of continue to invest in technology and innovative commitment and contributions to inclusion 40 per cent women and 40 per cent men. ways to manage risk, streamline processes and and diversity. improve productivity. We also offer competitive The percentage of employees newly hired to Our employees are encouraged to celebrate remuneration that rewards expertise and invest in work for BHP in FY2021 was 52.1 per cent male diversity and to speak up if they encounter the development of our people to build capability and 47.9 per cent female. This is a marked increase behaviours inconsistent with our values and and improve performance. on our FY2015 baseline for our aspirational goal, expectations. To help mitigate gender pay which was 10.4 per cent female. Developing our capabilities disparities, we have taken steps to reduce potential and an enabled culture bias in recruitment and conduct an annual gender We also improved our representation of women pay review, the results of which are reported to the in leadership by 2.8 percentage points compared To drive continuous improvement, we BHP Remuneration Committee. to FY2020, with 25.2 per cent female leaders as respect people's differences and encourage at the end of FY2021. self-accountability, a hunger to learn and a Respect is one of Our Charter values and is commercial mindset. fundamental to building stronger teams and being To further accelerate female representation an inclusive and diverse workplace. For some in FY2021, we worked to: One of the ways we achieve this is by applying people, this has not been their experience of the BHP Operating System (BOS) practices to help - improve employment messaging to target working at BHP. We are determined to address this. build leader capability. BOS is a way of leading and diverse audiences about why they should working that focuses on the safety of our people, For information on our approach to addressing work for BHP sexual harassment and sexual assault value for our customers and a mindset of zero - progress market mapping to proactively target refer to section 1.13.4 waste. In FY2021, we continued to train our leaders people or groups of people not actively looking through BOS learning academies to improve Our ambition to achieve a more diverse and to work for BHP or our industry operational capability and culture. inclusive workplace is focused on four areas: - broaden our employment and brand We also deploy a simplified Engagement and - embedding flexibility in the way we work reach across social, digital and traditional Perception Survey (EPS) three times a year. - encouraging and working with our supply media channels After each EPS, leaders are accountable for chain partners to support our commitment - enhance our workforce development and identifying actions to address improvement areas, to inclusion and diversity retention through coaching and support as shaped by employee feedback, in the following - uncovering and taking steps to mitigate materials for leaders 90 days. With a strong response rate (81 per cent) potential bias in our behaviours, systems, - develop a Ways of Working Framework to guide and overall engagement scores of 84 per cent, policies and processes employees and leaders to 'Work where you get two to three percentage points under top decile - ensuring our brand and workplaces are great outcomes' of global organisation benchmarks provided by Qualtrics, we believe our overall workforce feels attractive to a diverse range of people - implement mentoring and support networks supported and engaged. Gender balance(1) for women In 2018, we created a new business unit, In 2016 we publicly announced our aspiration Operations Services, to provide maintenance to achieve gender balance within our employee and production services across our Minerals workforce globally by the end of FY2025. Australia assets. Operations Services employs The table below shows the gender composition of our employees, senior leaders and the Board over the its people on a permanent basis and supports last three financial years. skill building through a structured coaching and in-field training program designed to enable 2021 2020 2019 the workforce to deliver consistent equipment Female employees(2) 11,868 8,072 6,874 operation and maintenance that balances safety, Male employees(2) 27,953 23,517 22,052 maximum productivity and equipment reliability. (3)(4) Female senior managers 90 67 70 As at 30 June 2021, Operations Services employed (3)(4) more than 3,700 employees and is expected to Male senior managers 189 185 227 continue to grow. Female Executive Leadership Team (ELT) members(3) 5 4 4 As part of a new national training program to Male Executive Leadership Team (ELT) members(3) 5 6 7 help bolster Australia's skills base and create new Female Board members(3) 4 3 4 career pathways into the mining sector, the BHP (3) Male Board members 8 9 7 FutureFit Academy (FFA) provides a pathway to join Operations Services through either an (1) Based on a 'point in time' snapshot of employees as at 30 June 2021, as used in internal management reporting for the accredited maintenance traineeship or a trade employees purposes of on monitoring extended progress absence against (660 at our 30 June goals 2021), . This does who were not include previously contractors not included . For the in the first active time this headcount includes . apprenticeship. Once trained and qualified, (2) FY2021 employee numbers based on actual numbers at BHP operated location as at 30 June 2021, not 10-month averages. employees move to a job at one of our Australian FY2020 and FY2019 are based on the average of the number of employees at the last day of each calendar month for a operations. In FY2021, the FFA trained more than based 10-month on BHP period ownership from July . Data to April includes which Continuing is then used and to calculate Discontinued a weighted operations average (Onshore for the US year assets) to 30 for June the and financial adjusted 500 apprentices and trainees as the first cohort years being reported. graduated (163 graduates in FY2021). (3) Based on actual numbers as at 30 June 2021, not 10-month averages. For more information on (4) defined For the purposes to include of both the UK senior Companies leaders and Act any 2006, persons we are who required are directors to show of information any subsidiary for 'senior company, managers', even if which they are are not BHP's FutureFit Academy senior leaders. In FY2021, there were 297 senior leaders at BHP. There are 18 Directors of subsidiary companies who are not see our case study at bhp.com/people senior leaders, comprising 14 men and 4 women. Therefore, for UK law purposes, the total number of senior managers was 203 men and 94 women (31.6 per cent women) in FY2021. 30 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Indigenous employment job-share arrangements, flexible rosters and Negotiations to renew the collective agreements Indigenous peoples are critical partners and career breaks. with Cerro Colorado Operators and Maintainers stakeholders for many of BHP's operations around union is expected to be completed in the first the world. BHP recognises, as part of our Global Employee relations quarter of FY2022. Indigenous Peoples Strategy, that we can contribute Our four key focus areas for employee relations are: Impacts and challenges from COVID-19 to the economic empowerment of Indigenous related to our people - ensuring we comply with legal obligations and peoples through providing opportunities for regional labour regulations The impact of COVID-19 and the resulting employment, training, procurement and supporting - negotiating where there are requirements to measures taken by governments within Australia to Indigenous enterprises. Pre-employment training, collectively bargain control its spread, resulted in changes to working employment, career development and retention patterns for our employees and contractors. of Indigenous employees are key to this. - closing out agreements with our workforce in In Australia and Chile, there was an increase South America and Australia, with no lost time We have set targets to achieve Indigenous in unplanned absenteeism due to COVID-19 due to industrial action, to the extent possible employment of 8 per cent in our Australian - creating solid relations with our workforce based restrictions. As a result of the COVID-19 restrictions, workforce by the end of FY2025, 10 per cent in on a culture of trust and cooperation we implemented a range of employee measures our workforce in Chile by the end of FY2026 and across our business to reduce the number of 20 per cent in our Potash workforce in Canada by During FY2021, Minerals Americas participated workers required onsite, such as remote working the end of FY2027. in seven collective bargaining processes, arrangements, increased health and safety which were important to enable our business requirements, vaccination campaigns and Indigenous employment within our employee objectives in relation to financial performance, hybrid working. and contractor workforce(5) as at 30 June 2021 was 7.2 per cent in Australia, 7.5 per cent at organisational capabilities, culture change and With state border closures restricting the our operations in Chile and 13.7 per cent at behaviour management. mobilisation of employees and contractors to our our Jansen Potash Project in Canada. Escondida signed three collective bargaining operating sites in Australia, changes to rosters and agreements: with the supervisors' union for hours of work were made to ensure operational LGBT+ inclusion 36 months (1 October 2020 to 30 September requirements for essential work were met. Our LGBT+ ally employee inclusion group, Jasper, 2023), the Intermel (Operators and Maintainers) There has also been a further extension of flexible was established in 2017 as a natural extension of union for 24 months (1 April 2021 to 31 March work options for employees and contractors in our inclusion and diversity aspirations and to reflect 2023) and Escondida and Union No. 1 (Operators Australia in response to government-imposed Our Charter value of respect. The membership and Maintainers) for 36 months (2 August lockdowns preventing them from attending their base of LGBT+ employees and allies has grown 2021 to 1 August 2024). Spence signed two normal place of work. These flexible work options substantially with eight regional chapters globally. 36-month collective bargaining agreements: included staggered start times, working from In February 2021, we launched our Gender with the supervisors' union (1 December 2020 home and reduced working hours. Our contractor Affirmation Policy and leader toolkit outlining how to 30 November 2023) and the Operator and workforce was reduced after the Spence Growth we will support employees affirming their gender. Maintainers union (1 June 2021 to 31 May 2024). Option (SGO) transitioned to the operation. Flexible working Cerro Colorado executed a collective agreement For information on the impact for 36 months with the supervisors' union (1 June of COVID-19 to our workforce Our focus on flexible working over the past few refer to section 1.13.5 years assisted our office-based workers to adapt 2021 to 31 May 2024). to remote working requirements caused by the The Specialists and Supervisors Union for BHP COVID-19 pandemic. Chile Inc. invoked article 342 of the Chilean Labor We expect to maintain a hybrid working model for Code, under which employees had their current employees based in corporate offices, allowing entitlements under existing collective agreement office and home-based working arrangements, preserved for the next 18 months (June 2021 to while requiring 30 to 50 per cent of their work to be December 2022). In the collective bargaining based in the office (excluding times when COVID- between BHP Chile Inc. and the Specialists 19-related workplace restrictions are in place) and Supervisors Union, there were 13 days of depending on the nature of their work. legal strike action (27 May 2021 to 8 June 2021). We also understand many site-based employees Contingency plans were put in place to hand over are in roles that by their very nature cannot be management of the control rooms back to the performed remotely. We will continue to seek to operations and planned maintenance activities provide flexible working through part-time and were undertaken ahead of time, resulting in no operational downtime due to this strike. (5) Based and labour on a hire 'point contractors in time' snapshot as at 30 of June employees 2021. Our people policies Our Charter is the foundation of the work we do In instances where employees require support Some of those standards relate to people at BHP. It describes our purpose, our values, how for a disability, we work with them to identify roles activities, such as recruitment and talent retention. we measure our success, who we are, what we that meet their skills, experience and capability, Our all-employee share purchase plan, Shareplus, do and what we stand for. and offer retraining where required. is available to all permanent full-time and Our Code of Conduct demonstrates how to Our Human Rights Policy Statement outlines our part-time employees and those on fixed-term practically apply the commitments and values commitment to respecting human rights, which contracts, except where local regulations limit set out in Our Charter and reflects many includes rights related to workplace health, safety operation of the scheme. In these instances, of the standards and procedures we apply and labour. We commit to operating in a manner alternative arrangements are in place. throughout BHP. consistent with the terms of the International More information on people Labour Organization Declaration on Fundamental is available at bhp.com/people Through these documents, we make it clear that Principles and Rights at Work. discrimination on any basis is not acceptable and we give full and fair consideration to applications The Our Requirements standards outline the for employment received from all candidates, mandatory minimum standards we expect of having regard to their particular aptitudes those who work for or on behalf of BHP. and abilities. BHP Annual Report 2021 31

1.13 Sustainability purpose Our commitment - to bring to people sustainability and resources starts with together our to build a better world. 1.13.1 Our sustainability We recognise sustainability is integral to the Global Reporting Initiative (GRI) Standards work we do at BHP. We believe it leads to higher comprehensive-level reporting,(4) the approach performance by making us more productive International Council on Mining and Metals Our products support global development and and safe. (ICMM) Sustainable Development Framework, many aspects of modern life, and we expect the Task Force on Climate-related Financial Our approach to sustainability is defined by many will play an essential role as the world Disclosures (TCFD) recommendations and Our Charter and governed through the Our decarbonises. We also understand there will the Sustainability Accounting Standards Requirements standards. These standards be times when we must make difficult choices Board (SASB) Metals and Mining standard. describe our mandatory minimum performance involving trade-offs, some of which may lead It also serves as our United Nations Global requirements and provide the foundation to to differences of opinion and concern among Compact (UNGC) Communication on develop and implement management systems some stakeholders. While we seek to gain and Progress on implementation of the UNGC at our operated assets. maintain the support of all our stakeholders, Ten Principles and support for its broader we also respect the right of every stakeholder Across the Group, we embed sustainability development objectives. to disagree with a decision or choice we performance measures through our public BHP's Board oversees our approach to may make. five-year sustainability targets. Achieving these sustainability. The Board's Sustainability targets and working towards our goals aligns There may be adverse impacts in the Committee has oversight of health, with our commitments to the Paris Agreement production and use of our products, and safety, environmental and community goals and the United Nations Sustainable while our aim is to avoid them, the nature of (HSEC) matters and assists the Board Development Goals (UNSDGs). It also drives our activities and products means this will not with governance and monitoring. improvement in our sustainability performance. always be possible. We seek to minimise and Our current five-year public sustainability For more information about the mitigate these impacts where we can and look Sustainability Committee and targets conclude at the end of FY2022, and we its work refer to section 2.1.11 for ways to contribute to the long-term health are developing new targets. We have already set of society and the natural environment. a climate change target to reduce operational There is a growing number of sustainability greenhouse gas (GHG) emissions (Scope 1 and standards we commit to voluntarily or as We view our management of sustainability Scope 2 from our operated assets) by at least part of our memberships. In FY2021, we as core to our efforts to generate social (1) 30 per cent from FY2020 levels by FY2030. completed a number of self-assessments value including: (2) Our long-term goal is to achieve net zero across different operated assets for the ICMM - putting the health and safety of our people first operational emissions by 2050.(3) Mining Principles and associated performance - being environmentally responsible expectations. In October 2020, BHP signed We commit to several sustainability a letter of commitment to the CopperMark(5) - respecting human rights frameworks, standards and initiatives and assurance process for our copper producing - supporting the communities where disclose data according to their requirements. assets (Olympic Dam, Escondida and Spence) we operate Our sustainability reporting, including on our and completed self-assessments as part of website is prepared in accordance with the this commitment. (1) The as required FY2020 . baseline will be adjusted for any material acquisitions and divestments based on greenhouse gas emissions at the time of the transaction. Carbon offsets will be used (2) Net zero includes the use of carbon offsets as required. (3) These positions are expressed using terms that are defined in the Glossary, including the terms 'net zero', 'target' and 'goal'. (4) Our GRI Content Index is available at bhp.com/FY21ESGStandardsDatabook
(5) https://www.bhp.com/media-and-insights/news-releases/2020/11/bhp-commits-to-copper-mark/.
32 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 1.13.2 Our material sustainability issues Sustainability materiality assessment Each year we identify the sustainability issues most material to our business and stakeholders. We use this assessment to help inform our sustainability strategies and to ensure the sustainability disclosures in our Annual Report include the issues of most interest to our business and stakeholders in line with the GRI Standards Reporting Principles. The materiality assessment considers internal and external stakeholder perspectives and the economic, social, environmental and cultural impacts of our activities. We identified over 30 material sustainability issues as part of our materiality assessment in FY2021. Of those, the issues shown below and disclosed in this Annual Report were identified as the most material issues to BHP and our stakeholders. The below table also covers our requirements under the UK Companies Act 2006.(1) bhp More .com/materialityassessment information about our materiality assessment is available at Material sustainability issues Employees Environmental Social matters and Anti-corruption and Other matters human rights anti-bribery matters People and culture Climate change Indigenous peoples business Ethics and conduct Critical risk management incident Refer to section 1.12 Refer to section 1.13.7 Refer to section 1.13.10 Workforce safety Portfolio resilience to Human rights Refer to section 1.13.6 Refer to sections 1.9 and 1.15 Refer to section 1.13.4 climate change Refer to section 1.13.9 Our conduct Tailings, facilities tailings (TSF) storage Refer to section 1.13.7 Local community Refer to section 2.1.15 Workforce health Refer to section 1.13.15 Water engagement Refer to section 1.13.5 Refer to section 1.13.13 Refer to section 1.13.8 Compliance and regulation with laws Environment Community livelihoods Refer to section 1.13.12 and social investment Refer to sections 2.3.17 and 4.8.2 Land and biodiversity Refer to section 1.13.11 Sustainability governance Refer to section 1.13.14 Refer to section 2.1.11 Policies and standards available online(2) Our Code of Conduct Environment Our Requirements and Climate for Our for Community Requirements Our Code of Conduct Our Charter Our Requirements for Our Requirements Sustainability Committee Safety standard Change standard Human Rights for Supply (Minimum Terms of Reference Our Requirements for Water Position Stewardship Statement Policy Statement standard requirements for suppliers) Tailings Storage Facility Health standard Climate Change Indigenous Policy Statement Peoples Policy Statement Position Statement Indigenous Peoples Strategy Principal risks that have key links to the matters mentioned above(3) Operational events Significant environmental social impacts or Significant environmental social impacts or Ethical misconduct Operational events Refer to section 1.16 Refer to section 1.16 Refer to section 1.16 Inadequate Refer to section 1.16 Refer to section 1.16 Ethical misconduct business resilience Low-carbon transition Refer to section 1.16 Refer to section 1.16 Refer to section 1.16 resilience Inadequate business Refer to section 1.16 Non-financial key performance indicators Refer to section 1.13.3, for details of our key performance indicators. In addition, details of our sustainability performance metrics can be found in the sections referred to below. People performance data Environment performance Society performance data Ethics business and conduct Our performance: sustainability Refer to section 4.8.1 Refer to data section 4.8.4 Refer to section 4.8.3 Non-financial KPIs Health and safety Climate change Refer to section 1.13.6 performance data performance data Refer to section 1.13.3 Refer to section 4.8.2 Refer to section 4.8.5 Water performance data Refer to section 4.8.6 (1) We This comply table sets with out the where Non- relevant financial information Reporting Directive is located requirements in this Annual and Report therefore . report sustainability matters from sections 414CA and 414CB of the UK Companies Act 2006. (2) Although at bhp.com these . standards are for internal use, we have made the HSEC-related elements of several of the Our Requirements standards and related documents publicly available (3) For further information on BHP's principal risks, refer to section 1.16. BHP Annual Report 2021 33

1.13 Sustainability continued 1.13.3 Our sustainability performance: Non-financial KPIs Our five-year sustainability targets and FY2021 performance Target FY2021 result Year-on-year Zero work-related fatalities Workplace fatalities FY2017(1) 1 FY2018 2 0 FY2019(2) 1 FY2021 FY2020 0 0 Year-on-year improvement of total recordable injury Total recordable injury frequency decreased by FY2017(4) 4.2 frequency(3) (TRIF) per million hours worked FY2018(4) 4.4 11% FY2019(5) 4.7 FY2020 4.2 People compared to FY2020 FY2021 3.7 50 per cent reduction in the number of workers Occupational exposures Adjusted FY2017 baseline 4,266 potentially exposed(6) to our most material exposures of FY2018 3,032 diesel particulate matter, respirable silica and coal mine 70% FY2019(8) 2,192 dust compared to our FY2017(7) baseline by FY2022 FY2020 1,744 reduction compared to FY2017 baseline FY2021(9) 1,280 Zero significant community events(10) FY2021 FY2017 0 0 FY2018 FY2019 0 0 FY2020 FY2021 0 0 Not less than 1 per cent of pre-tax profits(11) invested Social investment spend FY2017(13) US$80.2 million in community programs that contribute to the quality (12) FY2018 US$77.1 million of life in the communities where we operate and US$174.8m FY2019(14) US$93.5 million Society support Development the achievement Goals of the UN Sustainable FY2021 FY2020 US$ US$ 174.8 149.6 million million Strategy By FY2022, across implement all our operated our Indigenous assets Peoples through the Regional implemented Indigenous across Australia People (Reconciliation Plans being development of Regional Indigenous Peoples Plans Action Plan (RAP)) and North and South America By FY2022, maintain operational (Scope 1 and Scope 2) Greenhouse gas emissions FY2017(15) 14.6 million greenhouse gas emissions at or below FY2017 levels(15)(16) tonnes carbon dioxide while we continue to grow our business 16.2 MtCO2-e equivalent (MtCO2-e) FY2018(16) 17 MtCO -e While our annual emissions are currently higher 2 FY2019(16) 15.9 MtCO -e than the FY2017 adjusted baseline, our GHG 2 FY2020(16) 15.9 MtCO -e Climatechange emissions forecasts suggest we are on track FY2021 16.2 MtCO2-e to meet our FY2022 target 2 Zero significant environmental events(10) FY2021 FY2017 0 0 FY2019 FY2018 0 0 FY2021 FY2020 0 0 Reduce FY2022 withdrawal of fresh water(17) Adjusted FY2017 baseline(18) 156,120 ML by 15 per cent from FY2017 levels 27% FY2018 FY2019 155,570ML 140,515ML freshwater withdrawal reduction Environment from FY2017 baseline(18) FY2021 FY2020 113,444ML 126,997ML outcomes By FY2022, by improve developing marine a framework and terrestrial to evaluate biodiversity including Progressed pilots framework and approaches development, to data of Year-on-year framework progress to evaluate on and development verify the and verify with others the benefits of our actions, in collaboration On track to validation in deliver collaboration by end with of FY2022 others. benefits of our actions (1) FY2018 assets to and 28 February FY2019 data 2019) includes . Continuing and Discontinued operations (Onshore US (11) three Our voluntary years' pre-tax social profit. investment is calculated as 1 per cent of the average of the previous (2) and FY2019 Continuing data includes operations. Discontinued operations (Onshore US assets) to 28 February 2019 (12) Expenditure and comprises includes cash, administrative BHP's equity share costs, for including operated costs and to non-operated facilitate the joint operation ventures, of (3) The sum of (fatalities + lost-time cases + restricted work cases + medical treatment cases) the BHP Foundation. units multiplied of per by million 1 million/actual hours worked. hours We worked adopt by the our US employees Government's and contractors. Occupational Stated Safety in and (13) FY2017 US assets) and . FY2018 social investment figures includes Discontinued operations (Onshore Health and illnesses. Administration Guidelines for the recording and reporting of occupational injuries (14) FY2019 social investment figure includes Discontinued operations (Onshore US assets) (4) FY2017 and FY2018 TRIF data includes Continuing and Discontinued operations (Onshore to 31 October 2018 and Continuing operations. (15) FY2017 will be adjusted for any material acquisitions and divestments based on GHG US assets). emissions at the time of the transaction. Carbon offsets will be used as required. (5) 2019 FY2019 and TRIF Continuing data includes operations. Discontinued operations (Onshore US assets) to 28 February FY2017 baseline is on a Continuing operations basis and has been adjusted for divestments. (6) For exposures exceeding our FY2017 baseline occupational exposure limits discounting the (16) FY2018 US assets) GHG . FY2019 data includes GHG data Continuing includes Discontinued operations and operations Discontinued (Onshore operations US assets) (Onshore to 30 use June of personal 2017) is protective derived through equipment, a combination where required. of quantitative The baseline exposure exposure measurements profile (as at been 31 October restated. 2018 and Continuing operations and has been restated. FY2020 data has with and qualitative best practice assessments as defined undertaken by the American by specialist Industrial occupational Hygiene Association. hygienists consistent (17) Where 'withdrawal' is defined as water withdrawn and intended for use (in accordance (7) New FY2017 baseline due to the removal of 98 exposures attributed to the Onshore with 'A Practical Guide to Consistent Water Reporting', ICMM (2017)). 'Fresh water' is defined as waters other than seawater, wastewater from third parties and US assets. hypersaline groundwater. Freshwater withdrawal also excludes entrained water that would (8) Data excludes Discontinued operations (Onshore US assets). intent not be to available reduce for the other use of uses. freshwater These exclusions sources subject have been to competition made to align from with other the users target's or (9) As of FY2021, the Occupational Exposure Limit for Coal was reduced to 1.5 mg/m3 compared to 2.0 mg/m3 in previous years. the environment. (10) A significant event resulting from BHP operated activities is one with an actual severity (18) affecting The FY2017 water baseline withdrawals data has at been Escondida adjusted in FY2017 to account and improvements for: the materiality to water of the balance strike rating of four or above, based on our internal severity rating scale (tiered from one to five by increasing severity) as defined in our mandatory minimum performance requirements methodologies entrainment, supplies at WAIO, from BMA desalination and BMC and and Discontinued exclusion of hypersaline, operations wastewater, (Onshore US assets) for risk management. in FY2019 and FY2020. 34 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 1.13.4 Safety Fatality Elimination Program This replaced existing local frameworks and provides a standardised way of working with Our highest priority is the safety of our workforce In FY2021, we introduced our Fatality Elimination contractors to drive best practice. To embed and the communities where we operate. Program to enable a step change towards our the standard, a number of initiatives and tools goal of no fatalities across our business. Our safety performance have been developed: Fatality elimination is not a new priority for us. In FY2021, we continued to focus on strong - Our Scope of Work Library is an online We have been seeking to improve our safety safety performance: resource containing best practice performance over a number of years and examples for different types of contractor - no fatalities at our operated assets more recently, have considerably reduced engagements. This assists our contractor high potential injuries. However, there is more - a decrease of 17 per cent in high-potential partners to better understand the work to do and we are taking additional steps injury frequency rate from FY2020. required at our sites, enabling them to to systematise a common set of controls. The highest number of events with potential assign contractors with the right skills In FY2021, the Fatality Elimination Program: for one or more fatalities were related to and competencies to perform the work. vehicle and mobile equipment accidents. - engaged subject-matter experts and mining, - To assist in defining the minimum High-potential injury trends will remain a equipment, technology and services (METS) requirements for key roles, governance primary focus to assess progress against organisations to provide control solutions and process routines, we introduced an our most important safety objective, to our top 10 safety risks operational tiering model. The model eliminating fatalities - identified over 60 recommended controls factors in work scope, operational safety - a decrease in total recordable injury for our top 10 safety risks, including new risks and contract arrangements to inform frequency (TRIF) of 11 per cent from FY2020. controls and material improvements to the robustness of process requirements, The highest number of injuries is related existing controls including key performance indicators. to slips, trips and falls for both employees - conducted assessments at our operated - We developed a specific contractor and contractors assets and relevant functions against the perception survey to ensure we receive - an increase in field leadership activities, which recommended controls to determine the contractor feedback on our culture and occurred at a sustainable frequency rate of actions that need to be taken their experience working at BHP. 9,400 activities per million hours worked - established a global project team to - We developed systems to support the with over 1,573,000 activities completed in prioritise and deliver a global five-year contractor management process to improve the period and over 44,000 employees and fatality elimination roadmap supervision and training of contractors across contractors participating in the program at - commenced planning to update the Our our operated assets. A pilot was conducted least once. Scheduled activities compared Requirements for Safety standard and at one of our Australian operated assets to non-scheduled activities increased by coordinate a selection of control and human to ensure the system was fit-for-purpose 72 per cent from FY2020 and coaching performance improvement initiatives in FY2022 before broader implementation. increased by 5 per cent - we took a number of significant steps to Integrated Contractor Field Leadership Program improve our controls to address sexual Management Program Leaders spending time in the field is vital assault and sexual harassment, however Our Integrated Contractor Management Program to maintaining safe operations. Our global we have further to go to fully stop this is designed to make it safer and easier for our Field Leadership Program involves leaders behaviour from occurring across BHP contractors to work with us. Introduced in engaging with workers in the field to drive - no safety fines were received at our FY2020, the program is focused on building a common approach to improving health, operated assets in FY2021 long-term mutually beneficial relationships with safety and environment (HSE) performance. our contractors, integrating and simplifying These engagements are used to verify critical Our results were achieved through a sustained safety controls are in place, being applied and processes and systems, and creating an inclusive, focus on improving our management of risk are effective in reducing the risk of fatalities. respectful and caring workforce culture. through new and existing programs including: In 2021, we launched our new global contractor The program encourages the workforce to - Fatality Elimination Program provide feedback to their leaders about safety - Integrated Contractor Management Program performance standard, establishing global and to look out for the safety of themselves requirements for how we work with contractors and their colleagues. - Field Leadership Program (including subcontractors and consultants). Performance data - workforce health and safety for FY2021(1) In FY2021 we: High-potential injury events(2) - increased supervisor time in the field through the BHP Operating System (BOS) and Year ended 30 June 2021 2020 2019 reduced the large spans of control that some High potential injury events 33 42 50 supervisors had over their teams - continued to improve the quality of field Employees Contractors leadership activities by increasing coaching and delivery of field leadership engagements High-potential injury frequency(3) 0.02 0.05 at our operated assets Total recordable injury frequency - focused on ensuring our leaders were proactively scheduling field leadership Year ended 30 June 2021 2020 2019 activities and executing them to plan to Total recordable injury frequency(4) 3.7 4.2 4.7 ensure adequate verification of all fatality risks across our operated assets Employees Contractors - developed a global, standardised field leadership procedure designed to increase Total recordable injury frequency(3) 0.67 0.80 the effectiveness of field leadership activities by reducing variances in practices across (1) FY2019 data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations. Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. Prior year the business data has not been adjusted. (2) High to injury -potential count injury as part includes of a safety injuries reporting with fatality methodology potential improvement . The basis of. calculation revised in FY2020 from event count (3) Employee and contractor frequency per 200,000 hours worked. (4) Combined employee and contractor frequency per 1 million hours worked. BHP Annual Report 2021 35

1.13 Sustainability continued - conducted field leadership on COVID-19 1.13.5 Health These are conditions impacting the controls, which increased our understanding musculoskeletal system and connective tissues of control application and effectiveness by We are committed to protecting the health and caused by repetitive work-related stress or strain or engaging our workforce for direct feedback wellbeing of our employees and contractors. exposure over time. Musculoskeletal illness does - introduced sexual harassment field We set clear mandatory minimum standards not include disorders caused by slips, trips, falls or leadership activities, which provided to identify and assess health risks, manage their similar incidents. information on progress and areas for impact and monitor the health of our people. The main change in the incidence of improvement in this space occupational illness in FY2021 as compared to Occupational illness Sexual assault and FY2020 was an increase in the rate of employee The reported incidence of occupational illness(1) cases of NIHL reported by our operated assets sexual harassment for employees in FY2021 was 308 which was in South America. This was due to an increase in Our position on sexual assault and sexual 4.36 per million hours worked, representing a testing for noise induced hearing loss this year harassment is clear. This conduct is completely minor increase compared to FY2020 which was because of a suspension of testing activities unacceptable, contrary to our values and 4.30 per million hours worked. due to COVID-19 impacts last year. unlawful. Over a number of years, we have For our contractor workforce, the reported Our occupational illness data excludes taken action to prevent sexual harassment incidence of occupational illness was 180 which cases of COVID-19 among our employees including through education, encouraging was 1.87 per million hours worked, an increase and contractors. In settings of high levels of reporting and security measures. While we of 31 per cent compared with FY2020. Due to community transmission and with an evolving have made important progress, this continues regulatory regimes and limited access to data, understanding of the epidemiological criteria to be an issue at BHP and, as long as it does, we do not have full oversight of the incidence for infection and emerging COVID-19 variants we must and will do more and we continue to of contractor noise-induced hearing loss with evidence of increased transmission, it is focus and invest in preventing this behaviour. (NIHL) cases. difficult to conclude, with reasonable certainty, In 2018, we formally defined sexual assault that a person was infected because of work-Musculoskeletal illness accounts for the majority and sexual harassment as a health and safety related activities or exposure. For information of our reported occupational illnesses. risk. As part of the risk assessment processes, on our response to COVID-19, refer to the we engaged experts in health and safety, 'COVID-19' section on the next page. harassment and inclusion and diversity. We introduced a range of controls including security measures such as on-site security Occupational illness guards, additional CCTV, increased security Per million employee hours worked(1)(2)(3) patrols in public areas and improved lighting, 5.0 with a further AU$300 million for planned 73 improvements to occur in FY2022. We have . 0 4.0 51 . 72 75 also introduced trauma informed emergency . 0 87 . 0 0 . 0 response, victim-centric investigations and a dedicated support service that provides end-to- 3.0 end assistance and advice to anyone impacted 71 . 2 48 55 by sexual assault and sexual harassment. 2 . 2 . 69 84 . We are committed to the full implementation 2.0 . 2 2 of all requisite controls in FY2022, and have tied completion of actions to executive and employee remuneration. We also recognise that 1.0 . 48 11 1 19 . 1 . 92 we can improve the coordination of our work 1 59 . to address this issue and have set up a project . 0 0 0 management office for this purpose. FY2017 FY2018 FY2019 FY2020 FY2021 Sexual assault and sexual harassment Noise-induced hearing loss Musculoskeletal illness Other Illnesses are risks for BHP and the industry, and we are working with others in the industry Occupational illness to address these risks, as we have done with other health and safety matters. Per million contractor hours worked(1)(2)(3)(4) We participated in the Minerals Council 2.25 of Australia Taskforce that developed and 2.00 released an industry statement and Code of 1.75 Conduct aimed at eradicating sexual assault 68 . 57 and sexual harassment from our industry. 1.50 . 0 0 We also made a submission to the Inquiry 56 1.25 44 0 . in Western Australia into sexual harassment . 0 . 51 against women in the FIFO mining industry 0 1.00 to contribute to the industry addressing 0.75 this issue which can be found at BHP 24 . 30 1 06 . 97 . 1 Submission - WA Inquiry in relation to Sexual 0.50 . 0 1 92 Harassment in FIFO mining industry.pdf . 0 0.25 (parliament.wa.gov.au). 02 . 0 0 For more information on reported cases FY2017 FY2018 FY2019 FY2020 FY2021 refer to section 1.13.6 More information on safety is Noise-induced hearing loss Musculoskeletal illness Other Illnesses available at bhp.com/safety (1) The includes data Discontinued for FY2017 and operations FY2018 includes (Onshore Continuing US assets) and to 31 Discontinued October 2018 operations and Continuing (Onshore operations US assets) . . FY2019 data (2) Occupational illnesses excludes COVID-19 related data. (3) data Due to has the not lag been nature adjusted of incident . reporting and subsequent verification, final results may vary post reporting. Prior year (1) An of work illness -related that occurs activities as a or consequence exposure. (4) Due induced to regulatory hearing loss regimes (NIHL) and cases limited . access to data, we do not have full oversight of the incidence of contractor noise- 36 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Occupational exposures We also became a founding member of identified 248 and 2,277 confirmed cases the Global Business Collaboration for Better respectively. This included symptomatic and Occupational exposure limits (OELs) for our Workplace Mental Health, which seeks asymptomatic cases that may not have been most material exposures are set according to the to advance progress across the globe by identified otherwise. latest scientific evidence, which for a number of committing senior leaders to a pledge to agents, such as diesel particulate matter (DPM), Our support extended to areas impacted by high create mentally healthy workplaces. resulted in lower limits than the then regulatory community transmissions and reduced local requirements. Where exposures potentially To support the proactive management of medical capabilities. This included establishing exceed regulatory limits or our stricter limits, mental wellbeing and give our workforce the telehealth services, in-home PCR testing, respiratory protective equipment is required. tools and skills they need to build resilience and emergency ambulance support, mental wellness positive mental health, we provide and promote support and provision of medical support (e.g. For our most material exposures to DPM, silica the Employee Assistance Program, our mental procurement of oxygen concentrators in India) to and coal mine dust, we have a five-year target health toolkit, Thrive, education and awareness support ill workers and their family members. to achieve, by FY2022, a 50 per cent reduction (1) campaigns (including stigma reduction) and More information on health including a case in the number of workers potentially exposed the BHP Resilience Program. study on how we supported our people and as compared to our 30 June 2017 baseline the communities where we operate through exposure profile.(2)(3) In FY2016, we committed In May 2021, we held our inaugural Mental COVID-19 is available at to applying an OEL of 0.03 mg/m3 for DPM and Health month, with the aim of increasing mental bhp.com/health in FY2017, we committed to applying OELs of wellbeing in the communities where we operate 1.5 mg/m3 for respirable coal mine dust by 1 July and encouraging everyone to support and look 2020 and 0.05 mg/m3 for silica by 1 July 2021. out for one another. We also continue to support 1.13.6 Ethics and Exposure data in this Annual Report is based global mental health campaigns, including World business conduct on these limits and in all cases discounts the Mental Health Day, R U OK? Day and Movember. effect of personal protective equipment. Our conduct We plan to progress our efforts in FY2022 by (8) Our Code of Conduct (Our Code) brings our In FY2021, material exposures overall reduced addressing psychosocial hazards in the workplace values to life so we can make the right choices by 70 per cent compared to the adjusted using a risk management approach to further every day. It applies to everyone who works FY2017 baseline which is better than our FY2020 support better workplace mental health. for us or on our behalf. To ensure everyone target. This includes a reduction of 29 per cent COVID-19 understands how Our Code applies and the compared to FY2020 in the number of workers standards of behaviour we expect, annual potentially exposed to silica in excess of our OEL Throughout FY2021, we continued to navigate training is mandatory for all employees and and this reduction was largely due to reduction the challenges of the global COVID-19 contractors. There are also consequences for in exposures by our Minerals Americas operated pandemic and prioritise the health and safety breaching Our Code and we encourage people assets where there was a 35 per cent reduction of our people and workplaces. This included to speak up where a decision or action is not compared to the previous year. the removal of vulnerable workers from the in line with Our Code or Our Charter. workplace and an increase in testing regimes In addition, work to control exposure to DPM Our Code is available in five languages for site-based workforce during periods of high at Nickel West and Olympic Dam resulted in and accessible at bhp.com community transmissions. a 12 per cent reduction compared to FY2020 in the number of workers potentially exposed Across BHP's global workforce,(5) we estimated EthicsPoint is our confidential reporting tool to DPM. No potential exposures in excess of there were as many as 5,000 confirmed(6) that is accessible to all, including external our OEL for respirable coal mine dust were COVID-19 cases including three deaths, with stakeholders and the public, to report conduct reported in FY2020; however, in FY2021 we with around 1,100 of those confirmed cases that may be unethical, illegal or inconsistent have identified a workgroup as being potentially potentially infectious while at work(7) (figures for with Our Code. exposed in excess of our OEL at one of our coal persons potentially infectious while at work are operated assets. We are committed to reducing included irrespective of where infection may In 2021, 4,162 reports were received into this potential exposure to below the OEL in the have occurred). We recognise the significant EthicsPoint (of these 3,541 were classified as next reporting period. business conduct concerns(9)), representing impact COVID-19 has had on the daily lives of our people and the communities where we an increase of 52 per cent from FY2020. Coal mine dust lung disease operate and we offer our deep sympathies to This increase coincides with enhanced training In FY2021, there were four coal mine dust the families of our colleagues who tragically on Our Code and efforts to increase awareness lung disease (CMDLD)(4) claims accepted, were amongst the many people who have lost of the requirement for line leaders to log all which consisted of two current workers their lives to COVID-19. Almost all confirmed concerns relating to Our Code in EthicsPoint. and two former workers at our BMA asset. cases were from people in our Minerals Of the reports received, 42 per cent were made anonymously,(10) compared with 53 per cent in Americas workforce. Mental health We conduct COVID-19 tests as part of our FY2020, a reduction from FY2020, which may The mental health of our people continues to workplace entry screening, which includes indicate that reporters have greater confidence be a focus. In FY2021, good progress was made mainly polymerase chain reaction (PCR) testing in the EthicsPoint process. Of the total reports with implementing our Group-wide Mental received, 38 per cent contained one or more and a small percentage of antigen testing. substantiated allegations.(11) Health Framework to raise awareness of mental In FY2021, we conducted 27,261 tests in our wellbeing, reduce stigma and increase the Petroleum operated assets and 440,000 tests capacity of our leaders to recognise and support in our Minerals Americas operated assets and individuals experiencing mental illness. (1) For exposures exceeding our FY2017 occupational exposure limits discounting the use of personal protective equipment, where required. (2) The consistent baseline with exposure best practice profile as is derived defined through by the American a combination Industrial of quantitative Hygiene Association exposure. measurements and qualitative assessments undertaken by specialist occupational hygienists (3) The baseline has been adjusted to exclude Discontinued operations (Onshore US assets). (4) CMDLD obstructive is the pulmonary name given disease to the . lung diseases related to exposure to coal mine dust and includes coal workers' pneumoconiosis, silicosis, mixed dust pneumoconiosis and chronic (5) Employees and contractors engaged by BHP. (6) A person with a laboratory confirmation of COVID-19 infection, using polymerase chain reaction (PCR) test methodology, irrespective of clinical signs and symptoms. (7) Figures Potentially for infectious persons potentially while at work infectious is defined while as at being work in are one included of BHP's irrespective managed locations of where infection (including may camps have and occurred offices) . within 48 hours before onset of symptoms and/or while symptomatic. (8) https://www.bhp.com/our-approach/our-company/our-code-of-conduct/.
(9) Some EthicsPoint reports are enquiries, or are not related to business conduct concerns, or are a duplicate of an existing report. (10) This excludes reports not containing a business conduct concern, and excludes reports logged by leaders on behalf of others. (11) The calculation is based on reports received and completed in FY21, containing one or more substantiated allegations. BHP Annual Report 2021 37

1.13 Sustainability continued compliance risks, including anti-bribery and is essential to meet sustainable development Business conduct cases corruption. The function is independent of our goals. At BHP, we advocate for effective actions by issue type FY2021 assets and regions, and reports to the Chief in line with the Paris Agreement goals while Legal Governance and External Affairs Officer. recognising the challenge of achieving these The Chief Compliance Officer reports quarterly goals is of global scale and historic complexity. to the Risk and Audit Committee on ethics and In September 2021, BHP published its Climate compliance issues and meets at least annually Transition Action Plan 2021, which sets out with the Committee Chair. our strategic approach to our goal to reduce Our Ethics and Compliance function also operational GHG emissions (Scope 1 and Scope participates in all risk assessments in respect 2 from our operated assets) to net zero(2) by of operated assets or functions that are 2050, and our enhanced Scope 3 position for considered to carry material anti-corruption GHG emissions in our value chain. The Plan, Harassment sexual harassment and bullying, and sexual including assault 61% risks. In FY2021, the Ethics and Compliance together with more information on our climate team provided input into 41 risk assessments. commitments, actions and performance, Fraud 10% including our Climate Change Report 2020, As part of our commitment to anti-corruption, we Discrimination 8% is available at bhp.com/climate. (1) prohibit authorising, offering, giving or promising Other 7% anything of value directly or indirectly to a More information on our climate Health, safety or environment breach 6% commitments, actions and performance, government official to influence official action, including our Climate Change Report Ask a question 6% or to anyone to encourage them to perform 2020, is available at bhp.com/climate Retaliation for speaking up 2% their work disloyally or otherwise improperly. We also prohibit facilitation payments, which Governance and management (1) Inclusions are anti-competitive behaviour; attempts to are payments to government officials for routine Climate change is a material governance identify or human an rights anonymous breach; reporter, cybersecurity community or data relations privacy government actions. Our people must take care and strategic issue for us. Our Board is actively that third parties acting on our behalf do not engaged in the governance of climate change breach; deficiencies in a business conduct investigation; improper political or governmental conduct; violate anti-corruption laws. Disciplinary action, issues, including our strategic approach and information inappropriate on or other unauthorised support service external providers; communication; physical including dismissal or termination of contractual performance against our commitments, violence; and trade control breach. relationships, may follow from a breach supported by the Sustainability Committee of these requirements. and the Risk and Audit Committee (for more Transparency and accountability We regularly review our anti-corruption information, refer to section 2.1). We understand the connection between: compliance program to ensure it meets the Below the level of the Board, key management requirements of the US Foreign Corrupt decisions are made by the CEO and - the disclosures we make about the taxes Practices Act, the UK Bribery Act, the Australian and royalties we pay to governments, which management, in accordance with their Criminal Code and the applicable laws and delegated authority. Management has enable the public to see what we have paid regulatory developments of all places where primary responsibility for the design and - transparency of the contracts we have we do business. These laws are consistent implementation of our climate change strategy with governments which allows comparison with the standards of the OECD Convention and execution of that strategy is overseen of our actual payments against what is on Combating Bribery of Foreign Public by the Climate Change Steering Committee. required to be paid Officials in International Business Transactions. BHP has a dedicated Climate Change Team We support initiatives by governments of Recognising the challenges posed to normal that is responsible for advising the Executive the countries where we operate to publicly ways of working by COVID-19, in FY2021 we Leadership Team. The team collaborates with disclose the content of our licences or increased the frequency of our compliance BHP's functions and asset teams, external contracts for the development and production monitoring to support the timely identification partners and industry to develop practical of oil, gas or minerals that form the basis of of activities that could potentially present climate change solutions, designed to preserve our payments to government, as outlined an enhanced compliance risk. By regularly and unlock long-term value for BHP. It regularly in the Extractive Industries Transparency calibrating our compliance processes, we work prepares information and advice for the Initiative (EITI) Standard. to ensure optimal resource allocation to areas Executive Leadership Team, Sustainability presenting the highest corruption risks to our Committee, Risk and Audit Committee and Other key initiatives include our work in business. Our efforts are complementary to the Board on climate-related strategy, risks and partnership with Transparency International, the BHP Foundation's global partnership with performance against climate-related metrics. our representation on the Board of the EITI, Transparency International, which is supporting It also monitors key indicators and signposts our support for ultimate beneficial ownership governments to identify and address corruption against our appetite for climate change-related transparency, our financial support for and risks in mining licencing processes. risks (both threats and opportunities). Steering Committee membership of the Bribery Prevention Network (in Australia) and our Anti-corruption training is provided to all Addressing climate risks funding of the BHP Foundation, including its employees and contractors as part of mandatory annual training on Our Code. In FY2021, additional BHP applies a single, Group-wide approach Natural Resource Governance Global Program. to the management of risk, known as the We believe these transparency initiatives will risk-based anti-corruption training was also undertaken by 3,879 employees and contractors, Risk Framework. When new and emerging reduce corruption risk and improve our ability risks are identified, each is assigned an to operate and compete for resources. as well as employees of certain of our business partners and community partners. owner in the part of the business where the Anti-corruption risk occurs. Risks are assessed to determine More information on ethics and business conduct is available at their potential impacts and likelihood, enable We are determined to play a significant role prioritisation and determine risk treatment bhp.com/ethics in the global fight against corruption in the options. We then implement controls designed resources industry. Our Charter and Our Code 1.13.7 Climate change to prevent, reduce or mitigate downside risks provide the framework for our anti-corruption and increase the likelihood of opportunities compliance program. All activities that potentially and portfolio resilience being realised. Risks and controls are reviewed involve higher risks of exposure to corruption We believe the world must pursue the Paris periodically and on an ad-hoc basis to evaluate require review or approval by our Ethics and Agreement goals with increased levels of performance of the controls against the risks. Compliance function. national and global ambition to limit the This function has a mandate to design and impacts of climate change. Providing access to govern our compliance frameworks for key affordable and clean energy and other products (2) Net zero includes the use of carbon offsets as required. 38 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Climate-related risks can be grouped in two In FY2022, we intend to build these priority In the BHP Climate Change Report 2020,(1) categories: transition risk and physical risk. actions into planning and capital allocation we described the impact on our business of processes, and continue to analyse identified four divergent scenarios(2) across a range of Transition risks arise from policy, regulatory, risks in more detail. This will provide the basis from temperature outcomes, including our Paris-legal, technological, market and other societal (3) which we can develop our ability to report on aligned 1.5°C scenario. Our most recent responses to the challenges posed by climate specific material physical risks and their potential portfolio analysis indicated that under our 1.5°C change and the transition to a low-carbon financial impacts (including material expenditure scenario, the world would need around twice as economy. For more information on BHP's on climate change adaptation) in later years. much steel and copper, and four times as much exposure to and management of transition nickel in the next 30 years as it did in the last 30. risks, refer to section 1.16. Portfolio analysis and Potash demand, required for higher agricultural Physical risks refer to acute risks that are event- capital alignment yields due to land use competition, also grows driven, including increased severity of extreme The world must undergo multiple transitions under that scenario. weather events, and chronic risks resulting arising from commitments to reduce GHG Today's signposts do not yet indicate that the from longer-term changes in climate patterns. emissions. These transitions are complex, multi-appropriate measures are in place to drive For more information on BHP's exposure to faceted and could reasonably be expected to decarbonisation at the pace or scale required and management of physical risks, refer to manifest in unique ways across different regions, to achieve the Paris Agreement goals. However, 'Adaptation to physical risks' below in this reflecting heterogeneous local conditions. as governments, institutions, companies and section and to section 1.16. However, we believe that together they comprise society increasingly focus on addressing a global transition to a lower-carbon economy Adaptation to physical risks climate change, the potential for a non-linear that can mitigate the impacts of climate change. transition and the subsequent impact on BHP's vision for adapting to the physical risks We see steps towards these transitions in the opportunities and risk increases. of climate change is to take a proactive and emergence of electric mobility and the rapid collaborative approach to building the climate cost declines of renewable power generation. We intend to systematically integrate one resilience of our operated assets, investments, Global accords such as the Paris Agreement and or more Paris-aligned scenarios (including portfolio, supply chain, communities and subsequent government commitments suggest 1.5°C scenarios) into our strategy and capital ecosystems, to achieve mutually beneficial these transitions are likely to accelerate. prioritisation processes beginning in FY2022. outcomes for our stakeholders. This will enhance our current approach, in The Paris Agreement has set an ambition to which our 1.5°C scenario is used to inform In FY2021, following external benchmarking and pursue efforts to limit global temperature and test strategic portfolio decisions. internal engagement, we finalised our updated increases to 1.5°C above pre-industrial levels, Adaptation Strategy as set out below. which will require aggressive action to reduce More information on the BHP Climate Transition Plan 2021, is available at GHG emissions. Abatement commensurate bhp.com/climate The focus in FY2021 was on enhancing with limiting temperature increases to 1.5°C governance structures, developing a more would reduce the potential physical impact of consistent and comprehensive approach to climate change on our assets, our employees, the use of climate data, and improving how we our communities and our markets, and integrate physical climate risk within the existing potentially generate significant value for risk management process in order to identify our portfolio. and resource priority actions. Building blocks of our Climate Change Adaptation Strategy (FY2021 - 2025) Intelligence Risk Strategy and Investment / Collective and capability planning execution action Enhance Identify and Enhance Invest in Contribute to approach to assess physical adaptation technology, increasing the collation and risks; Define plans; Integrate Nature-based climate resilience use of climate / adaptation adaptation into Solutions (NbS) of communities Disclosure climate-related measures for the operational and operational and ecosystems, data and short, medium and investment changes to build and across our Physical risks, information; and longer term decisions through resilience, realise industry, supply including Build knowledge strategy, opportunities chain and markets opportunities; and capability planning and and deliver Adaptation evaluation multiple benefits planning; frameworks for our business, surrounding Internal communities and collective and ecosystems adaptation actions Governance Enhance ownership and accountability for climate adaptation Ensure effective monitoring, reporting and compliance with requirements (1) https://www.bhp.com/climate (2) predictions Scenarios highlight or sensitivity critical analyses. elements As of they assumed are a tool future to enhance states and critical draw strategic attention thinking, to the key a key factors feature that of may scenarios drive future is they developments. should challenge They conventional are hypothetical wisdom constructs, about the not future. forecasts, In a world of it is uncertainty, difficult to predict scenarios which, are intended if any, of the to explore scenarios alternatives might eventuate. that may Scenarios significantly do alter not constitute the basis for definitive 'business outcomes as usual' for assumptions. us. Scenario There analysis are relies inherent on assumptions limitations with that scenario may or may analysis not and be, or prove to be, correct and may or may not eventuate, and scenarios may be impacted by additional factors to the assumptions disclosed. (3) This Climate scenario Change aligns Report with 2020 the Paris available Agreement at bhp. goals com for and information requires steep about global the assumptions, annual GHG emissions outputs and reductions, limitations sustained of our 1.5°C for decades, Paris-aligned to stay scenario. within 1.5°C a 1.5°C is carbon above pre-industrial budget. Refer levels. to the BHP BHP Annual Report 2021 39

1.13 Sustainability continued Operational greenhouse gas Operational energy consumption by source (TWh)(1)(2) emissions and energy consumption Year ended 30 June 2021 2020 2019 Our long-term goal is to achieve net zero(1) Consumption of fuel 32.6 31.6 31.7 operational GHG emissions by 2050. We have - Coal and coke 0.2 0.2 0.2 also set a medium-term target to reduce operational GHG emissions by at least - Natural gas 6.3 5.8 6.6 30 per cent from FY2020 levels(2) by FY2030.(3) - Distillate/gasoline 25.5 25.0 24.2 This reflects our commitment to decarbonising BHP's operations and a recognition that we - Other 0.6 0.7 0.7 have a part to play in accelerating the global Consumption of electricity 10.3 10.1 9.6 pathway to decarbonisation. Consumption of electricity from grid 9.1 8.9 8.5 We are also working to achieve our short- Total operational energy consumption 42.9 41.7 41.3 term target for FY2022 to maintain our total Operational energy consumption from renewable sources(3) 0.1 0.0 0.0 operational GHG emissions at or below FY2017 levels(4) while continuing to grow our business. Operational GHG emissions by source (MtCO2-e)(1)(2)(4)(5)(11) Our operational GHG emissions are measured 2021 2020 2019 against our target performance based on an Scope 1 GHG emissions(6) 10.0 9.6 9.7 operational control, market-based methodology. We also disclose operational GHG emissions Scope 2 GHG emissions(7) 6.2 6.3 6.2 by equity share and financial control in Total operational GHG emissions 16.2 15.9 15.9 section 4.8.5. Total operational GHG emissions (adjusted for In FY2021, total operational energy consumption Discontinued operations)(8) 16.2 15.9 15.5 increased 3 per cent from FY2020 due to Operational GHG emissions intensity (tonnes CO -e per 2 increased drilling activity in our Trinidad and tonne of copper equivalent production)(9) 2.2 2.0 2.4 Tobago operations, the use of diesel generators Percentage of Scope 1 GHG emissions covered under to provide power to our Angostura facility an emissions-limiting regulation(10) 81% 80% 75% during the Ruby project tie-in and increased diesel usage at our Queensland Coal operated Percentage of Scope 1 GHG emissions from methane 21% 19% 19% assets. Building on our Light Electric Vehicle (LEV) Scope 2 GHG emissions (location based)(7) 5.0 5.1 5.1 trials at Olympic Dam and Queensland Coal, we Carbon offsets retired(12) 0.3 have commenced LEV trials at Nickel West using (12) Total operational GHG emissions (including carbon offsets) 15.9 onboard battery power. This trial is anticipated to reduce noise, heat and diesel particulate matter, (1) Unless otherwise noted, FY2019 data includes Continuing operations and Discontinued operations (Onshore US assets) to as well as consumption of fossil fuel. We have 31 October 2018. Data in italics indicates that data has been adjusted since it was previously reported. FY2020 originally reported increased the renewable component of our data to minor that amendments has been restated to fugitive is 9.5 MtCO emissions 2-e for from Scope the coal 1 GHG operated emissions assets and as 15 part .8 MtCO of the 2-e annual for total reconciliation operational GHG process emissions, for Australian due energy consumption in FY2021 due to the start regulatory reporting purposes. FY2019 data that has been restated is 6.1 MtCO2-e for Scope 2 GHG emissions, 15.8 MtCO2-e for total of the renewable power purchasing agreement operational minor amendments GHG emissions, to market and -based 15.3 MtCO emission 2-e for factors total for operational Minerals Americas GHG emissions operated (adjusted assets for . Additionally, Discontinued non operations) -material adjustments due to (PPA) at Queensland Coal. rounding in prior year of asset data since -level it data was and previously changes reported to presentation . of the data has, in certain instances, resulted in minor impacts to the In FY2021, operational GHG emissions were (2) Calculated Development based guidance on an .operational Consumption control of fuel approach and consumption in line with of World electricity Resources refers Institute/World to annual quantity Business of energy Council consumed for Sustainable from the 11 per cent higher than the adjusted FY2017 combustion of fuel; and the operation of any facility; and energy consumed resulting from the purchase of electricity, heat, steam or baseline of 14.6 MtCO2-e on a Continuing cooling by the company for its own use. Over 99.9 per cent of BHP's energy consumption and operational GHG emissions occurs operations basis, reflecting increased outside the UK and offshore area (as defined in the relevant UK reporting regulations). UK energy consumption of 99,762 kWh and production at our Minerals Australia operated GHG kWh. Data emissions has been of 21 rounded tCO2-e is to associated the nearest with 1 PJ electricity or 0.1 TWh consumption to be consistent from with our asset/regional office in London energy . One information TWh equals in 1,000,000,000 this Annual assets since FY2017. However, as a result of Report. In some instances, the sum of totals for sources, commodities and assets may differ due to rounding. actions taken in FY2020 and FY2021, particularly (3) our In FY2021 market we -based have GHG revised emissions and tightened reporting the. This definition resulted of renewable in the restatement energy consumption of operational for consumption our operations from to renewable better align energy with securing the supply of renewable energy at sources figures. Previously reported numbers for FY2020 and FY2019 for this data were 0.01 TWh for both years. some operations, our forecasted operational (4) BHP Report currently 5 (AR5) uses based Global on a Warming 100-year timeframe Potentials (GWP) for Minerals from the Australia Intergovernmental and Petroleum Panel . Minerals on Climate Americas Change currently (IPCC) use Assessment IPCC GHG emissions are currently tracking in line Assessment Report 4 (AR4) GWP and will be transitioning to AR5 GWP in FY2022. with our FY2022 and FY2030 targets (see (5) Scope 1 and Scope 2 GHG emissions have been calculated based on an operational control approach (unless otherwise stated) in Progress on decarbonisation, below). line with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. For more information, see BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology, available at bhp.com/climate. Data has been rounded to the nearest 10 ktCO2-e Progress on decarbonisation of or totals 0.1 MtCO for sources, 2-e to be commodities consistent with and asset/regional assets may differ GHG due emissions to rounding information . in this Annual Report. In some instances, the sum In FY2021: (6) Scope 1 refers to direct GHG emissions from operated assets. (7) Scope 2 refers to indirect GHG emissions from the generation of purchased or acquired electricity, steam, heat or cooling that is - We signed a renewable PPA to supply up consumed by operated assets. Our Scope 2 GHG emissions have been calculated using the market-based method using supplier to 50 per cent of our electricity needs at mix specific emission emission factor factors, is currently in line unavailable with the Greenhouse to account Gas for grid Protocol electricity Scope emissions 2 Guidance remaining unless otherwise after removal specified of quantities . A residual directly the Nickel West Kwinana Refinery from the contracted between parties; this may result in double counting of low emissions or renewable electricity contributions across grid- Merredin Solar Farm. supplied consumers. - We secured firm renewable electricity via (8) in Excludes discontinued Onshore operations US assets, and which are included were divested in the Total in FY2019 . . Non-material acquisitions and divestments have not been included a PPA to meet half of the electricity needs (9) For this purpose, copper equivalent production has been calculated based on FY2021 average realised product prices for across Queensland Coal mines from low- prices FY2021 for production, FY2019 production FY2020 average . Production realised figures product used prices are consistent for FY2020 with production energy and and GHG FY2019 emissions average reporting realised boundaries product (i.e. emissions sources. BHP operational control) and are taken on 100 per cent basis. (10) Scope in Australia 1 GHG and emissions the distillate from and BHP's gasoline facilities GHG covered emissions by the from Safeguard turbine boilers Mechanism at the administered cathode plant by at the Escondida Clean Energy covered Regulator by the (1) Net zero includes the use of carbon offsets as required. Green Tax legislation in Chile. (2) FY2020 acquisitions baseline and divestments will be adjusted based for on any GHG material emissions (11) More information on the calculation methodologies, assumptions and key references used in the preparation of our Scope 1 and Scope 2 GHG emissions data can be found in the BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology, available at as at the required time of . the transaction. Carbon offsets will be used bhp.com/climate. More information on our strategy to further reduce GHG emissions, including our investments in low-emissions technology and natural climate solutions, is available in the BHP Climate Change Report 2020 and the BHP Climate Transition (3) These defined positions in the Glossary, are expressed including using the terms terms that 'net are zero', Action Plan 2021 at bhp.com/climate. (12) In FY2021, we have calculated an additional operational GHG emissions total for the reporting year including contributions from 'target' and 'goal'. the retirement of a quantity of carbon offsets. This figure has been calculated by subtracting the number of carbon offsets retired (4) FY2017 divestments will be based adjusted on GHG for any emissions material at acquisitions the time of and the (each equivalent to a single tonne of CO2-e reduced or 'removed' from the atmosphere) from the total GHG emissions reported under our operational control boundary for the year. This is not intended to establish a recurrent approach. Further detail on our transaction. Carbon offsets will be used as required. approach to carbon offset use, and the specifics of the carbon offsets retired in FY2021, is provided at bhp.com/offsets-2021. 40 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information - We continued to implement PPAs for Those goals are to: We have therefore set these Scope 3 targets:(8) renewable electricity commencing from (9) - Support industry to develop technologies and - We will target net zero by 2050 for the FY2022 at our Chilean copper operated pathways capable of 30 per cent emissions operational GHG emissions of our direct assets, Escondida and Spence, which are (10) intensity reduction in integrated steelmaking, suppliers, subject to the widespread on track to reach net zero Scope 2 GHG (11) with widespread adoption expected post 2030; availability of carbon neutral goods and emissions by the mid-2020s. - Support 40 per cent emissions intensity services to meet our requirements. These agreements are intended to help meet reduction of BHP-chartered shipping of - We will target net zero(12) by 2050 for our FY2022 and FY2030 operational GHG our products. GHG emissions from all shipping(13) of our emissions targets. We regularly monitor our products,(14) subject to the widespread forecasted GHG emissions to check we are In our Climate Transition Action Plan 2021, (15) availability of carbon-neutral solutions on track. we are building on these medium-term including low/zero-emission technology on goals. Our position reflects the challenges In FY2021, we partnered with Rio Tinto and Vale board suitable ships and low/zero-emission and opportunities in line with our strategy for to launch the 'Charge on Innovation Challenge', marine fuels. increasing long-term portfolio exposure towards a mining truck electrification initiative, facilitated future facing commodities. Our recent proposed Action on our value chain by Austmine. The initiative aims to develop portfolio changes(1) are aligned with our strategic GHG emissions goals in FY2021 innovative charging infrastructure in parallel approach to manage risk and maximise value. with the development of battery-electric trucks. Steelmaking While these decisions were not made for the In FY2021, BHP signed memoranda of In August 2021, BHP became a founding purpose of setting a future Scope 3 position, understanding for partnerships with three of member of Komatsu's GHG Alliance, which upon completion, the changes would lower our customers, China Baowu, JFE and HBIS, to aims to develop commercially viable zero- our total Scope 3 emissions inventory. invest up to a total of US$65 million in research GHG emissions haul trucks. BHP will provide As we shape our portfolio for the future, we are and development of steel decarbonisation engineering and technical resources to announcing our enhanced Scope 3 position.(2) pathways. We also established a research Komatsu, enabling BHP's real-time access program with the University of Newcastle in to technology in development and giving While we cannot ensure the outcome alone, (3) Australia to study raw material properties in low-Komatsu the opportunity to draw on BHP's for our reshaped portfolio, we are pursuing (4) carbon iron and steelmaking. Additionally, BHP mining expertise to accelerate its path to the long-term goal of net zero Scope 3 GHG Ventures is strategically investing in a range of market. Also in August 2021, BHP and TransAlta emissions by 2050 to support the transition emerging companies, including some focused announced plans to build two solar farms and that the world must make. To progress towards on low- or no-carbon steelmaking. a battery storage system to help power the this goal: Mt Keith and Leinster operations at Nickel West. In FY2022, we intend to progress research and - we are targeting net zero for the operational (5) development and develop plans for operational In FY2022, we intend to look for further GHG emissions of our direct suppliers and testing and trials under the three steelmaking opportunities to collaborate with original the emissions from maritime transport of our partnerships. We also plan to explore new equipment manufacturers, source renewable products; and steelmaking partnerships to jointly study low-electricity for our Australian operated assets - recognising the particular challenge of a net carbon steelmaking technologies. and progress studies for diesel displacement zero pathway for customers' processing of at our operated assets. our products,(6) which is dependent on the Maritime development and downstream deployment In FY2021, BHP committed to becoming one Value chain emissions of solutions and supportive policy, we cannot of the founding members of the Global Centre We recognise the importance of supporting set a target, but will continue to partner with for Maritime Decarbonisation. The Centre is efforts to reduce emissions in our value chain. customers and others to accelerate the to be set up in Singapore and act as a focal In 2020, BHP set Scope 3 emissions goals transition to carbon neutral(7) steelmaking point for the global maritime industry's efforts for 2030 for processing of our steelmaking and other downstream processes. We will in decarbonisation and innovation. In April products and maritime transportation of also support the value chain by pursuing 2021, we participated in the first marine our products, supported by an action plan carbon neutral production of our future biofuel trial involving an ocean-going vessel and aligned to a long-term vision to support facing commodities, such as copper, nickel bunkering in Singapore in collaboration with the economy-wide transition necessary to and potash, to provide the essential building Oldendorff Carriers and GoodFuels, and meet the Paris Agreement goals by working blocks of a net zero transition. supported by the Maritime and Port Authority with customers and suppliers to achieve of Singapore. BHP also issued and awarded sectoral decarbonisation. (1) merger On 17 August is subject 2021, to BHP confirmatory announced due it had diligence, entered negotiation into a merger and commitment execution of full deed form with transaction Woodside documents, to combine and their satisfaction respective of oil conditions and gas portfolios precedent by an including all-stock shareholder, merger. Completion regulatory of and the other approvals, and BHP to create and a global expected energy to occur company' in the by second Woodside quarter and of BHP the dated 2022 calendar 17 August year, 2021, with available an effective at bhp. date com/investor-centre. of 1 July 2021. For more On 28 information, June 2021, BHP refer announced to the Joint its Announcement agreement with 'Woodside Glencore to divest satisfaction of its 33.3 customary per cent interest competition in Cerrejón, and regulatory a non-operated requirements energy and coal expected joint venture to occur in Colombia, in the first with half an of effective the 2022 economic calendar year. date of 31 December 2020. Completion is subject to the (2) This position is expressed using terms that are defined in the Glossary, including the terms 'net zero', 'target' and 'goal'. (3) Subject to completion of both of the divestment of our oil and gas business and the sale of our interest in Cerrejón. (4) Net zero includes the use of carbon offsets as required. (5) 'Operational goods and services GHG emissions (including of capital our direct goods), suppliers' fuel and means energy the related Scope activities, 1 and Scope business 2 emissions travel, of and our employee direct suppliers commuting. included in BHP's Scope 3 emissions reporting categories of purchased (6) In ore and line with metallurgical our reporting coal methodology (steelmaking for materials) Scope 3 and emissions, copper (assumed we define 'processing to be processed of our into products' copper as wire emissions for end use) resulting . from our customers' processing of our products comprising iron (7) Carbon neutral includes all those GHG emissions as defined for BHP reporting purposes. (8) These progressive targets refinement are referable of the to a Scope FY2020 3 emissions baseline year, reporting which methodology. will be adjusted The for targets' any material boundaries acquisitions may in and some divestments cases differ based from on required emissions reporting at the boundaries. time of the transaction, Carbon offsets and will to reflect be used as required. (9) Net zero includes the use of carbon offsets as required. (10) 'Operational and services GHG (including emissions capital of goods), our direct fuel suppliers' and energy means related the activities, Scope 1 and business Scope travel, 2 emissions and employee of our direct commuting. suppliers included in BHP's Scope 3 reporting categories of purchased goods (11) Carbon neutral includes all those greenhouse gas emissions as defined for BHP reporting purposes. (12) Net zero includes the use of carbon offsets as required. (13) BHP-chartered and third party-chartered shipping. (14) Target excludes maritime transportation of products purchased by BHP. (15) Carbon neutral includes all those greenhouse gas emissions as defined for BHP reporting purposes. BHP Annual Report 2021 41

1.13 Sustainability continued the world's first LNG-fuelled Newcastlemax Scope 3 GHG emissions by category (MtCO -e)(1) 2 bulk carrier vessel tender in FY2021, with the 30 aim of significantly reducing GHG emissions Year ended June 2021 2020 2019 per voyage. In FY2022, we intend to begin to Upstream integrate the use of LNG-fuelled bulk carriers Purchased goods and services into our maritime operations and assess the (including capital goods)(2) 8.9 8.8 8.7 suitability of a range of routes for LNG or bio- Fuel and energy related activities(3) 1.1 1.2 1.2 fuelled bulk carriers. We are also developing a Upstream transportation and distribution(4) 3.8 3.8 3.6 sustainability analytics platform to analyse the Business travel(2) 0.1 0.1 0.2 operational energy efficiency and emissions of (2) Employee commuting 0.4 0.2 0.2 BHP-chartered vessels. This will enable more Downstream energy-efficient vessel selection, as well as Downstream transportation and distribution(5) 3.8 4.0 4.0 more targeted emissions reduction insights (6) and actions that can be pursued with our Investments (i.e. our non-operated assets) 2.5 2.6 3.1 shipping partners. Processing of sold products(7) Scope 3 GHG emissions GHG emissions from steelmaking(8) 300.5 292.9 283.7 - Iron ore processing to crude steel 260.7 252.8 242.4 performance - Metallurgical coal processing to crude steel 39.8 40.1 41.3 The most significant contributions to BHP's Copper processing 5.0 5.2 5.1 total reported Scope 3 emissions inventory Total processing of sold products 305.5 298.1 288.8 come from the downstream processing of Use of sold products our products, in particular from the GHG (9) Energy coal 38.3 56.4 67.0 emissions generated by steelmaking through Natural gas(9) 19.5 20.6 28.3 the processing of iron ore and metallurgical Crude oil and condensates(9) 16.8 17.9 23.3 coal. Our analysis indicates that in FY2021, (9) GHG emissions associated with the processing Natural gas liquids 1.8 1.9 2.8 of our commodities (primarily iron ore and Total use of sold products 76.4 96.8 121.4 metallurgical coal to steel; together with copper Total Scope 3 GHG emissions(10) 402.5 415.7 431.1 concentrate and cathode to copper wire) were (1) Scope 3 GHG emissions have been calculated using methodologies consistent with the Greenhouse Gas Protocol 306 MtCO2-e. GHG emissions associated with Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Scope 3 Standard). Scope 3 GHG emissions the use of our energy products (energy coal, life reporting cycle of necessarily the commodities requires we a degree produce of and overlap consume. in reporting More boundaries information due on the to our calculation involvement methodologies, at multiple points assumptions in the oil and gas)(1) were 76 MtCO -e. 2 and key references used in the preparation of our Scope 3 GHG emissions data can be found in the BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology, available at bhp.com/climate. While we have worked to eliminate major (2) In FY2021, we have made improvements in how we calculate Scope 3 GHG emissions associated with the purchased 'double-counting' in our Scope 3 inventory of goods the accuracy and services of spend category data. Previously by assigning reported more GHG accurate emissions emission for factors the 'Purchased to some goods procurement and services categories (including and improving capital GHG emissions from iron ore and metallurgical goods)' category are 16.9 MtCO2-e in FY2020 and 17.3 MtCO2-e in FY2019. Previously reported GHG emissions for FY2019 coal used in steelmaking, a degree of overlap are 0.1 MtCO2-e in the 'Business travel' category and <0.1 MtCO2-e for the 'Employee commuting' category. Emissions in in reporting boundaries still occurs due to our FY2020 did not materially change as a result of the improved methodology. involvement at multiple points in the life cycle (3) related In FY2021, activities we have by made removing improvements the Scope 3 in GHG how emissions we calculate associated Scope 3 GHG with natural emissions gas associated consumption with at the our Fuel Petroleum and Energy of the commodities we produce and consume. GHG operations emissions as the for majority the 'Fuel of and those Energy GHG related emissions activities' would category be captured are 1.3 in our MtCO2-e Scope in 1 GHG FY2020 emissions. and also Previously in FY2019. reported Refer to footnotes (1) and (7) to the table to the side for more information. (4) Includes terms, as product well as purchased transport where transport freight services costs for are process covered inputs by BHP, to for our example operations. under Cost and Freight (CFR) or similar We continue to consider ways to understand (5) Product transport where freight costs are not covered by BHP, for example under Free on Board (FOB) or similar terms. (6) For BHP, this category covers the Scope 1 and Scope 2 GHG emissions (on an equity basis) from our assets that are owned different metrics for measuring Scopes 1, 2 and as a joint venture but not operated by BHP. In FY2021, GHG emissions estimates from non-operated assets were developed 3 GHG emissions intensity and tracking their Scope from data 2 GHG provided emissions directly at the by operators. Minerals Americas GHG emissions operated from assets our supplied non-operated by the Kelar facility Power and Station therefore asset excluded are reported from our as impact on long-term decarbonisation. To this Scope 3 GHG emissions totals. The previous FY2020 value of 3.9 MtCO2-e has been restated to remove GHG emissions end, in FY2021 we continued to engage with data from was the Kelar previously Power unavailable Station and from include operators. updated FY2021 Scope Scope 3 GHG 1 and emissions Scope estimates 2 emissions for (on non-operated an equity basis) assets from for Cerrejón which Climate Action 100+ (CA100+) and the Transition are only accounted for H1FY2021 due to the effective economic date of 31 December 2020 for sale of BHP's interest Pathway Initiative on their methodology for the in Cerrejón. diversified mining sector. We also progressed (7) All assumed iron ore to production be processed and into metallurgical copper wire coal for is end assumed use. Processing to be processed of nickel, into zinc, steel gold, and silver, all copper ethane metal and production uranium oxide is is pilot traceability studies in copper and nickel not currently included, as production volumes are much lower than iron ore and copper and a large range of possible end that measure the value-chain GHG emissions uses excluded apply as or these downstream emissions emissions are considered are estimated immaterial to be compared immaterial. to Processing/refining the end-use product of combustion petroleum products reported is in also the of our products. 'Use of sold products' category. Investing in decarbonisation (8) In to FY2021, eliminate we double have addressed counting in some our reported key limitations inventory associated in relation with to GHG estimating emissions Scope from 3 GHG processing emissions. of iron We ore have and worked In FY2020, we announced a commitment of at metallurgical emissions figure coal for in GHG steelmaking, emissions by from allocating steelmaking. GHG emissions Allocation between of steelmaking the two GHG and reporting emissions a single to BHP's total metallurgical Scope 3 GHG least US$400 million to invest in GHG emissions (BF-BOF) coal is based steelmaking on the global route. average This approach input mass to improving ration of metallurgical accuracy is consistent vs iron ore with to the the blast Scope furnace-basic 3 Standard. oxygen We have furnace reduction across our operated assets and also improved the accuracy of the GHG emission factor used to estimate Scope 3 GHG emissions by reflecting the value chain over the five-year life of our Climate blast furnace integrated steelmaking route into which the majority of BHP's steelmaking raw materials portfolio is sold. Investment Program. In FY2021, we spent produce The improved steel. estimation As our product also considers evolves in BHP its quality iron ore and product flow through quality to and other its impact pathways on (such the amount as direct of ore reduced required iron to electric US$29 million under this program, targeting arc furnace (DRI-EAF)), we will adjust the balance of intensity factors to reflect these changes. Previously reported numbers operational, maritime, steelmaking and BHP numbers for iron ore for processing metallurgical are coal 205.6-322.6 are 33.7-108.2MtCO2-eMtCO2-e for FY2020 for FY2020 and 197.2-299.6 and 34.7-111.4MtCO2-eMtCO2-e for FY2019. for FY2019. Previously reported Ventures investments, and committed to spend (9) All crude oil and condensates are conservatively assumed to be refined and combusted as diesel. Energy coal, natural significantly more, including up to US$65 million gas and natural gas liquids are assumed to be combusted. FY2021 Scope 3 GHG emissions associated with energy coal over coming years towards partnerships with sale of products BHP's from interest Cerrejón in Cerrejón. are only accounted for H1FY2021 due to the effective economic date of 31 December 2020 for our customers in the steel sector. (10) We reported a total figure for the Scope 3 GHG emissions inventory this year as major double counting of GHG of overlap emissions from in reporting the processing boundaries of iron still ore occurs and due metallurgical to our involvement coal in steelmaking at multiple was points removed, in the life however cycle of a the degree commodities we produce and consume. (1) emissions, In line with our we define reporting our methodology energy products for Scope as oil, gas 3 GHG and the energy processing coal. We of account our products for metallurgical (within steelmaking coal within GHG emissions). 42 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information We estimate potential spend of between We expect many of our commodities to be green revenue. Seventy-two per cent of US$100 and US$200 million per year over important to the energy transition. For example, BHP's battery-suitable nickel metal(6) was the next five years in support of operational the International Energy Agency's 'The Role of sold to global battery material suppliers in decarbonisation at our operated assets. Critical Minerals in Clean Energy Transitions' FY2021.(7) For FY2021, BHP's green revenue This estimate has been included in existing report(2) highlights the critical role of copper and from battery-suitable nickel metal amounted capital guidance. Going forward, as our nickel, and BHP's 1.5°C scenario(3) indicates that to US$760 million.(8) climate response is further integrated into the case for copper, nickel and potash could be Australian uranium is sold for nuclear power business-as-usual planning, our spending even more compelling as the world takes action generation only, a low emissions source of on climate initiatives is expected to become to decarbonise. Iron ore also fares slightly better electricity, and therefore, also for illustrative increasingly indistinguishable from normal under our 1.5°C scenario versus other scenarios, purposes, we have measured all revenue from business spending. as steel requirements of the energy transition uranium as green revenue. For FY2021, BHP's are expected to be considerable. The most We assess and rank each decarbonisation green revenue from uranium amounted to commonly used measure for green revenue is project across our operated assets through US$249 million. based on end use of products. However, this our Capital Allocation Framework, where our measure is not straightforward, for two reasons: Carbon offsets decarbonisation commitments rank alongside maintenance capital in the hierarchy of our - Identifying the end use of some commodities BHP's approach to carbon offsetting is to capital allocation. Through our studies and is challenging. Copper and iron ore, in prioritise emission reduction projects at investment governance process, we seek to particular, undergo multiple stages of our operated assets, with investments in optimise the risk and reward proposition for processing and have a diverse range external carbon offset projects considered these projects to allocate capital and optimise of end uses. complementary to this 'structural abatement'. decarbonisation at a portfolio level. We have - The way in which commodities are We work with others to promote the developed an internal marginal abatement cost produced is not captured by end use development of carbon market mechanisms, curve designed to support the allocation of measures. However, production methods for particularly for natural climate solutions. capital towards the most economically efficient the resource sector can in themselves be an Although we prioritise our internal emission and effective decarbonisation projects. important contributor to achieving a green reduction projects, we acknowledge a role We include regional carbon price forecasts in economy. For example, our Chilean copper for high-quality offsets in a temporary or our assessment of all projects in the Capital operated asset at Escondida is on track to transitional capacity while abatement options Allocation Framework. In recognition that have 100 per cent renewable electricity are being studied, as well as for 'hard to explicit carbon pricing regimes in many supply by the mid-2020s and source abate' emissions with limited or no current instances do not fully reflect the implicit desalinated water for operational purposes, technological solutions. regulatory risk and value of carbon across minimising water extraction from sensitive Andean aquifers. In FY2021, we retired 0.3 million carbon offsets our value chain, we are developing additional in the form of verified carbon units equivalent qualitative and quantitative metrics to better End use may therefore not be the sole to the net increase in our FY2021 operational capture the future cost and value of GHG appropriate measure of products' contribution GHG emissions from FY2020. The offsets emissions abatement to inform corporate to the energy transition, and other measures were sourced from high-quality projects, strategy and core business decisions. (such as how they are produced) may also such as the Cordillera Azul National Park Green revenue be useful, and even more appropriate in REDD+Project and the Kasigau Corridor REDD some circumstances. Project,(9) representing additional, permanent Green revenue is intended as a measure of In FY2021, we have applied an approach to and otherwise unclaimed emission reductions the extent to which products and services green revenue based on end use, using nickel from activities designed to avoid contributing contribute to the transition to a green (1) and uranium by way of illustration. At this to social or environmental harms. economy. While these contributions will be measured on a range of important indicators stage, these are the most straightforward For more information on how BHP manages (including water conservation, biodiversity of our commodities for which to determine offsets refer to bhp.com/offsets-2021 or reforestation), much of the discussion contribution to the energy transition from their about green revenue is focused around the end use. In FY2022, we intend to continue to Natural climate solutions contribution to the transition to renewable consult with investors, industry and standard setters to explore ways of establishing Investing in natural ecosystems is a cost-energy that is vital for climate change mitigation. clear methodologies for classification and effective and immediately available solution to There is no settled methodology for classifying measurement of green revenue. We also mitigate climate change that often provides green revenue in the resources sector. plan to work with our customers, suppliers sustainability co-benefits, such as biodiversity In response to increased investor interest in and others in our value chain to improve the conservation, improved water quality or support the concept, in FY2021 BHP reviewed potential traceability of our products and the GHG for local communities. We work to support approaches to classification and measurement emissions produced by their use. the development of market mechanisms that of green revenue, starting with consideration channel private sector finance into projects of how our products contribute to addressing Battery manufacture contributes to climate that increase carbon storage or avoid GHG the challenge of climate change. change mitigation.(4) Therefore, for illustrative emissions through conservation, restoration purposes,(5) we have measured the revenue and improved management of terrestrial from our sales to battery materials suppliers as landscapes, wetlands and coastal and marine (1) by A green public economy and private is defined investment by the into UN such Environment economic Programme activities, infrastructure as low carbon, and resource assets that efficient allow and reduced socially carbon inclusive emissions . In a green and economy, pollution, enhanced growth in employment energy and resource and income efficiency, are driven and prevention of the loss of biodiversity and ecosystem services. (2) The Role of Critical Minerals in Clean Energy Transitions - World Energy Outlook Special Report, May 2021. (3) This BHP scenario Climate Change aligns with Report the Paris 2020 Agreement available at goals bhp.com and requires for information steep global about annual the assumptions, GHG emissions outputs reductions, and limitations sustained of our for 1 decades, .5°C Paris-to aligned stay within scenario a 1.5°C . 1.5°C carbon is above budget pre- . industrial Refer to the levels . (4) For of environmentally example, the EU sustainable taxonomy recognises economic activities battery manufacture . Note the EU as taxonomy a significant does contributor not presently to climate cover the change mining mitigation sector. https://ec . The EU Taxonomy .europa.eu/finance/docs/level is a classification system, -2-measures/taxonomy establishing a list -regulation-delegated-act-2021-2800-annex-1_en.pdf (5) Recognising that a settled methodology for classifying green revenue in the resources sector has yet to be determined. (6) Battery suitable nickel metal is defined as nickel briquettes and nickel powder. It does not include off-spec nickel metal. (7) Based of usage on have percentage, been made battery using -suitable historical nickel nickel metal metal sales usage to battery for those material customers suppliers . . Where a customer's planned end-use is not known with certainty to be for battery supply, assumptions (8) Calculated based on gross revenue from battery-suitable nickel metal multiplied by percentage of BHP's sales of nickel metal to battery material suppliers. (9) REDD and REDD+ are UN programs for reducing GHG emissions from deforestation and forest degradation. BHP Annual Report 2021 43

1.13 Sustainability continued ecosystems (e.g. mangroves, tidal marshes, strategy and operations, our TCFD-aligned - The primary concerns of community seagrasses and seaweed, generally referred disclosures and information in support of our members, as reported to our operated to as 'blue' carbon ecosystems). We focus on NZCB assessment can be found throughout assets, largely related to community project support, governance, knowledge and this Annual Report, in our BHP Climate Change support (including economic contribution, innovation, and market stimulation for carbon Report 2020 and at bhp.com. A navigator capacity building, resilience and social credits generated by these projects. showing where to find relevant information inclusion), environmental sustainability in relation to the TCFD recommendations is and a desire for more communications For more information see bhp.com/climate available at bhp.com. or engagement from BHP. - Complaints and grievance mechanisms Just transition 1.13.8 Community were in place across all our operated assets. Making a positive contribution to - 103 community complaints (four classified There are communities around the world that rely the communities where we operate as grievances(1)) were received globally on mining certain commodities, which therefore across our operated assets. While this risk being disproportionately impacted by the To make a positive contribution to the social and was a 10 per cent decrease in community transition to a low-carbon economy. Solutions will economic wellbeing of the communities where complaints compared to FY2020, we require a multi-stakeholder approach including we operate requires long-term partnerships are revising our approach to reporting to the local community, investors and financiers, based on respect, honesty, transparency and ensure we capture and record all concerns, government at all levels and, of course, resource trust. Our actions and approach to community complaints and grievances received through companies such as BHP. engagement, social investment, cultural heritage, our community engagement channels. In FY2022, we plan to develop our approach working with Indigenous peoples and human rights practices are governed by Our Code. - No significant community incidents were to 'Just Transition' taking into consideration recorded, meeting our five-year public target the evolving Climate Action 100+ Net-Zero We understand our activities have potential of no significant community events between Company Benchmark (NZCB). social, cultural, environmental and human rights FY2017 and FY2022.(2) impacts. We assess those impacts and consider Engagement and disclosure - No artisanal or small-scale mining on or external factors such as changing socio-adjacent to our operations was reported. Achieving the Paris Agreement goals will political and economic content and societal require supportive policy across jurisdictions expectations and community concerns. As part of our commitment to respecting globally. The policy-making process is complex human rights, we recognise water access, and change is unlikely to be smooth or linear. To gain a deeper understanding of the sanitation and hygiene as fundamental We believe BHP can best support policy context in which we operate, our operated human rights and acknowledge traditional, development by ensuring we meet our own assets are required to conduct periodic social spiritual and cultural connections to water. climate commitments, continuing to make the research activities. We seek to implement and Engaging with communities on water case for the economic opportunities arising from conduct these planned activities in a culturally challenges is a component of our water the energy transition, and focusing on those policy sensitive and socially inclusive manner which stewardship work outlined in our Water areas where we are likely to have the greatest can include social baseline analysis, social Stewardship Position Statement. In FY2021, ability to influence change. We engage on policy impact and opportunity assessments, human we sought to strengthen our engagement matters directly with government and through our rights impact assessments, stakeholder with stakeholders on water-related threats and membership of industry associations and issue- mapping and community perception surveys. opportunities at the community and catchment specific coalitions and initiatives. Through these activities, we seek to better levels through the commencement of Water understand social and reputational impacts, Resource Situation Analysis projects, to identify Our Global Climate Policy Standards clarify how threats and opportunities and make more the shared water challenges and collective our policy positions on climate change should informed decisions. action opportunities across the catchment. be reflected in our own advocacy and that of associations to which we belong, globally. We provide a range of opportunities for More information on community Over the past five years, BHP has introduced a communities to express their views, experiences, is available at bhp.com/community range of measures to strengthen the Company's concerns and complaints. The Our Requirements governance of its member associations and for Community standard requires all operated their climate change advocacy. assets to have culturally appropriate complaint 1.13.9 Human rights Further information on our approach to and grievance mechanisms in place which We are committed to respecting internationally are accessible to all stakeholders, including recognised human rights as set out in the industry associations can be found at Indigenous peoples. bhp.com/our-approach/operating-with- Universal Declaration on Human Rights and the integrity/industry-associations-bhps-approach/ To further strengthen these mechanisms, we Voluntary Principles on Security and Human have established globally consistent principles Rights, and operating in a way that is consistent BHP was one of the first companies to align aligned with the UN Guiding Principles on with the UN Guiding Principles on Business and its climate-related disclosures with the Business and Human Rights to be applied Human Rights and the UNGC Ten Principles. recommendations of the Financial Stability across each of our operated assets. Our commitments are implemented through Board's Task Force on Climate-related Financial Our Charter values, Our Code of Conduct, the In FY2021: Disclosures (TCFD). In FY2021, we published Human Rights Policy Statement (HRPS) and our Climate Change Report 2020, and also - Community perception research was the Our Requirements standards. We seek to participated in the CA100+ NZCB, which conducted at 11 of our operated assets meet those commitments through policies and assesses the world's largest corporate GHG providing an aggregated view of local processes, due diligence activities, training and emitters on their progress in the transition community perceptions and a valuable by monitoring activities that may have human to the net zero future. input into asset planning. rights impacts. In September 2021, we published the BHP - All of our operated assets had a stakeholder engagement plan in place and conducted BHP's HRPS sets out our expectations of our Climate Transition Action Plan 2021, which sets people, business partners and other relevant out the steps BHP intends to take with the goal regular stakeholder engagement activities, including one-on-one meetings, dialogue parties to respect human rights. In FY2021, of reducing GHG emissions to net zero within our annual review of the HRPS identified two our own operations by 2050 and pursuing net tables (multi-issue, multi-stakeholder), consultation groups (issue based), written areas in which stakeholders are seeking greater zero across our value chain. As responding transparency and a more explicit commitment: to climate change is an integral part of our communications and open days. (1) An event or community complaint relating to an adverse impact/event that has escalated to the point where a third-party intervention or adjudication is required to resolve it. (2) A by increasing severity) significant event resulting as defined from BHP in our operated mandatory activities minimum is one performance with an actual requirements severity rating for of risk four management. or above, based on our internal severity rating scale (tiered from one to five 44 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information - labour rights, specifically to operate The outcomes of the HRIA pilot are expected In FY2021, we established a new global consistently with the terms of the to strengthen our approach to managing Indigenous Engagement team to lead International Labor Organization (ILO) and monitoring human rights related risks. Indigenous engagement, agreement-making Declaration on Fundamental Principles In FY2022, our operated assets and functions and advocacy to enhance our focus on and Rights at Work, including the four intend to use a risk-based approach to our engagement with Indigenous peoples. core labour standards determine when a HRIA needs to be reviewed We also continued our focus on cultural - human rights requirements of the Global or conducted. Results of the HRIAs are also heritage management practices. Our Cultural Industry Standard on Tailings Management expected to be better integrated into our Heritage team has enhanced our systems and existing risk assessment processes to enhance processes to ensure operational decision-The HRPS was updated to reflect these our understanding of the full spectrum of making is informed by the most up to date commitments and has been endorsed by identified risks, and where required, develop heritage information. relevant members of our Executive Leadership additional controls. Social value assessments Team. It is available at bhp.com. This program of work commenced with are intended to include HRIA results to enhancements to Western Australia Iron Ore's In FY2021: ensure our operated assets have a deep cultural heritage databases and information understanding of their operating context - A total of 610 employees completed human systems, enabling us to better integrate and external environment as inputs into rights training,(1) including teams across cultural heritage considerations into our mine their business planning. Corporate Affairs and Commercial functions. planning processes. As a result, we can better The training is publicly available at bhp.com During FY2021, we reviewed the risk of an understand and engage with Traditional Owners - Our human rights impact assessment (HRIA) actual or perceived failure to prevent or mitigate on cultural heritage sites that may be impacted pilot project was finalised resulting in a an adverse human rights impact linked to our by our activities earlier in the planning process. globally consistent methodology for HRIAs supply chain (directly or indirectly), including A staged rollout across Minerals Australia will to be applied across our operated assets. maritime activities. We continued to focus on continue in FY2022, with relevant lessons to be embedding and building the maturity of our applied beyond Australia. - HRIAs were conducted by an external supply chain due diligence program taking consultant across Minerals Australia and We further strengthened our engagement with a risk-based approach to assessing potential Minerals Americas, with self-assessments Traditional Owners and other representative human rights breaches by our suppliers, conducted at each of these operated Indigenous bodies during the year. This includes including extended due diligence for high assets. A HRIA was also conducted for the the introduction of a set of Principles on or very high risk suppliers based on our initial Jansen Potash Project in Canada. The Our Cultural Heritage in Australia agreed with the risk rating processes. Requirements standards require operated First Nations Heritage Protection Alliance. assets to complete a HRIA at least every In FY2021, we started to align our supply chain The Principles are jointly developed to guide three years and review whenever there are due diligence with the OECD Due Diligence and inform BHP's approach to Indigenous changes that may affect the impact profile. Guidance on Conflict-Affected and High cultural heritage in Australia. The Principles - No resettlements or physical or economic Risk Areas. This work is to be completed represent an important, further contribution to displacement of families or communities by the end of FY2022 with an update on BHP's commitments in relation to Indigenous occurred as a result of the activities of our alignment activities planned for inclusion peoples, agreement-making and cultural operated assets. in our FY2022 Modern Slavery Statement. heritage and will apply in addition to the existing requirements in relation to Indigenous In Australia, the most salient human rights Modern slavery engagement and cultural heritage set out in related risks reported in the HRIA include sexual Our Modern Slavery Statement FY2021, BHP's agreements with Traditional Owners. assault and sexual harassment, mental health, prepared under the UK Modern Slavery Act and fair and equitable treatment (for example, Beyond cultural heritage engagement, we (2015) and the Australian Modern Slavery Act discrimination, inclusion and diversity and equal implement Regional Indigenous Peoples Plans, (2018), is available at bhp.com. pay for equal work). which set expectations for our relationships More information on our approach to human with Indigenous peoples across our operated These findings align with responses to existing rights is available at bhp.com/humanrights assets. We believe we are well positioned to risks currently managed across our business bring economic participation opportunities through measures including the introduction 1.13.10 Indigenous to Indigenous communities where we operate of a sexual assault and sexual harassment and through these plans, we articulate our support line, our ongoing focus on mental peoples approach to agreement-making, Indigenous health and our commitment to inclusion procurement, employment and social and diversity. Human rights related risks to We respect the rights of Indigenous peoples investment, which are core components communities, including those related to the and acknowledge their right to maintain of our Indigenous Peoples Strategy. environment, Indigenous peoples and access their culture, identity, traditions and customs. to remedy, were also identified. The most We also recognise the significant contribution Our efforts are complementary to the BHP salient human rights related risks reported in Indigenous peoples make to national and Foundation's global programs supporting the HRIA for Chile were access to remedy for international economic prosperity brought Indigenous peoples. These include the employees and contractors, fair and equitable about by mining. landmark '10 Deserts' project in Australia that treatment, occupational health and safety, has enabled and supported Indigenous land Many of our operated assets around the world access to remedy for communities where we management activities across 35 per cent of are located on or near the traditional lands of operate, water and the impacts of COVID-19. the Australian landmass, and similar projects Indigenous peoples. We believe this establishes Additional human rights risks relating to supporting Indigenous peoples' participation a fundamental relationship with Indigenous security, cumulative impacts on communities in the management and protection of peoples who are critical partners and, in and working conditions were identified across traditional lands in the Boreal Forest of many jurisdictions, rights-holders under law. our operated assets in Chile. Canada and the Peruvian Amazon. As global events of the past 18 months have reinforced, the continued success of BHP and Minerals Australia the industry more broadly is dependent on having strong and trusting relationships with There has been broad support and wide-Indigenous peoples. ranging community efforts to further strengthen the laws, policies and practices regulating how Aboriginal and Torres Strait Islander cultural heritage values are managed in Australia. (1) The number of employees trained has been annualised using data from a 10-month period, July to April, to determine a total for the year. BHP Annual Report 2021 45

1.13 Sustainability continued We participated in the Joint Standing people to have a greater voice on the laws, George Gordon First Nation. The refresh of Committee on Northern Australia's inquiry into policies and services that impact them, their two remaining Opportunity Agreements is matters relevant to the Juukan Gorge events communities and their lives. This submission expected to be completed in FY2022. in the Pilbara region of Western Australia. is consistent with our broader support for the The Committee's Terms of Reference include Uluru Statement from the Heart. The Uluru Non-operated joint ventures - considering the effectiveness and adequacy of Statement calls for meaningful structural Resolution state and federal laws in relation to Aboriginal reforms designed to enable a new relationship Resolution Copper Mining is jointly owned by and Torres Strait Islander cultural heritage between First Nations and the Australian nation Rio Tinto (55 per cent) and BHP (45 per cent) in each jurisdiction. In December 2020, the based on justice and self-determination. and managed by Rio Tinto. In January 2021, Committee released its Interim Report with - BMC and the Barada Barna people the Final Environmental Impact Statement recommendations calling for stronger cultural negotiated an Indigenous Land Use (FEIS) was published, part of an independent heritage protection legislation and noting Agreement to provide BMC with consents governmental, social and environmental the Western Australian Government is in the for past, current and future acts associated assessment and licensing process led by the process of progressing heritage law reform. with the South Walker Creek mine and United States Forest Service (USFS) under the deliver a comprehensive benefits package National Environmental Policy Act. In March Consultation with Aboriginal people, industry for immediate and intergenerational benefits 2021, the US Department of Agriculture representatives, heritage professionals to the Barada Barna people. In conjunction, directed the USFS to rescind the FEIS. and the broader community on Western Australia's Aboriginal Cultural Heritage Bill a Cultural Heritage Management Plan was We recognise the Resolution Copper project 2020 (WA) concluded in FY2021. The passage agreed, providing for the protection and area includes sites of cultural significance for of new legislation remains subject to appropriate management of Aboriginal Native American Tribes and their members. parliamentary processes. cultural heritage at the mine. Further work Resolution Copper Mining has indicated it is underway with the Widi people in relation intends to continue to engage in the regulatory A Heritage Advisory Council comprising Banjima to shared country at South Walker Creek. processes determined by the United States Elders and senior BHP representatives has been In FY2021, Minerals Australia saw a 17 per Government and has publicly stated its established to provide input into mine planning cent increase, to A$114.6 million, in our direct commitment to ongoing engagement with at South Flank. The Council has convened spend with Indigenous businesses across our Native American Tribes. Resolution Copper is on several occasions and is a vital forum for operated assets as compared to FY2020 levels. working to seek consent before any decision ongoing high-level dialogue on important cultural Of this A$48.4 million was with BHP Considered is made on the development of the project, heritage and related matters. This Council and (1) Traditional Owner Businesses. Compared to consistent with the ICMM Position Statement corresponding forums seek to enable a critical FY2020 levels, we also increased the number on Indigenous Peoples and Mining.(2) We are exchange for appropriate understanding and of Indigenous businesses we directly procure monitoring and supporting Resolution Copper management of cultural heritage so concerns from by 35 per cent. Mining's engagement with Native American can be raised and addressed. Tribes through ongoing good-faith dialogue. In January 2021, as part of routine monitoring at Minerals Americas Our funding decisions in relation to Resolution Mining Area C in the Pilbara region of Western In line with our Indigenous Peoples Plan for Copper will be contingent upon the project Australia, we identified a rock fall at a registered South America, we seek to work closely with satisfying commercial considerations and Banjima heritage site. Since that time, we the communities where we operate to make alignment with our values, policies and practices have been working closely with the Banjima a positive contribution, including through key concerning the rights of Indigenous peoples. community, via an independent investigation agreement-making with local communities. conducted by a team of external experts, to More information on Indigenous peoples understand how the rock fall occurred. The key We reviewed our cultural heritage risks in is available at bhp.com/indigenous findings of the investigation will be released FY2021 and are continuing work to improve publicly. We continue to be committed to our processes for the management of cultural 1.13.11 Social investment working in partnership with the Banjima heritage across all our activities and supporting community to responsibly manage heritage the work being undertaken by our non-operated Social investment is a tool in our overall and further strengthen our processes as we joint ventures where we have the opportunity approach to create social value and contribute learn from this event. to do so. We established a permanent Minerals to the resilience of communities and the Upholding our commitment to Australian Americas Indigenous Engagement team to environment, in line with our broader business enhance our work and have sought to use priorities. Our long-standing commitment is to Indigenous peoples requires Group-wide our Indigenous peoples global working group invest not less than 1 per cent of pre-tax profits(3) awareness and commitment. In FY2021: to better ensure alignment and sharing of in voluntary social and environmental initiatives. - We developed an Australian Indigenous leading practices. In FY2021, our voluntary social investment Cultural Respect Framework, including In Chile, our operated asset Escondida, the totalled US$174.84 million, an increase developing a package of additional Attorney General's Office, the Peine Atacamanian of 17 per cent compared with FY2020. Aboriginal and Torres Strait Islander training Indigenous community and the Council of This investment consisted of US$100.41 million and awareness sessions targeted at our Atacamanian Peoples recently entered into in direct community development and leaders and employees, which is intended to an agreement to improve the environmental environmental projects and donations, be delivered in partnership with Traditional sustainability of the Salar de Punta Negra US$7.96 million equity share to non-operated Owner groups where possible. Elements of following the settlement of a legal claim. joint venture social investment programs and a the framework were delivered in FY2021, For more information, refer to section 1.13.13. US$50 million donation to the BHP Foundation with further rollouts scheduled for FY2022. and US$2.08 million under the Matched Giving During FY2021, we refreshed most of our Program. Administrative costs(4) to facilitate - We provided a submission to the Australian Opportunity Agreements with our Jansen direct social investment activities totalled Government's Indigenous Voice co-design Potash Project Indigenous partners in US$12.53 million and US$1.86 million supported consultation process outlining support Canada. In December 2020, we signed the operations of the BHP Foundation. for Aboriginal and Torres Strait Islander our first Opportunity Agreement with the (1) Suppliers agreement, that providing have any a ownership minimum overall by a Traditional Indigenous Owner(s) ownership from of one 50 of per the cent language exists. groups in which BHP operates or as defined in an Indigenous Land Use Agreement or other formal (2) http://www.icmm.com/en-gb/about-us/member-requirements/position-statements/indigenous-peoples (3) Our voluntary social investment is calculated as 1 per cent of the average of the previous three years' pre-tax profit. (4) of The the direct BHP costs Foundation associated . with implementing social investment activities, including labour, travel, research and development, communications and costs to facilitate the operation 46 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional The BHP Foundation is a charitable organisation established and funded by BHP that addresses some of the world's most critical sustainable development challenges relevant to the resources sector. The Foundation partners with the NGO's and international institutions to drive systemic change. For example, its partnership with the NGO Open Contracting Partnership has led to reforms in public procurement in Colombia resulting in improved school meals for 700,000 children; and in Chile where open contracting reforms contributed to a reduction in the cost of medicines, improved citizen access to affordable healthcare and resulted in government savings of an estimated US$9 million. More information is available at bhp.com/foundation In March 2020, we established the Vital Resources Fund (VRF) with a commitment of A$50 million to support response and recovery efforts associated with the impact of the COVID-19 pandemic. Since that time, the funds have been invested to address immediate community need, support remote Indigenous communities and complement government investment as well as supporting the pandemic recovery phase to meet emerging needs and impacts across the key areas of employment and training, technology and wellbeing. Over 850,000 people have so far directly benefited from the donations and more than one-third of funding was invested specifically to support Indigenous communities. More information on the VRF, including a case study and other initiatives to support communities where we operate that are experiencing the impact of COVID-19, is available at bhp.com Supporting local economic growth To support the growth of local communities we aim to source and promote locally available products and services as an important part of our external expenditure. Our operated assets develop local procurement plans designed to identify opportunities for local suppliers, including small businesses, to deliver capacity building and employment. In FY2021, 13 per cent of our external expenditure of US$16.9 billion was with local suppliers with an additional 83 per cent of our expenditure made within the regions where we operate, while 4 per cent was from suppliers external to the home country of operation. Of the US$16.9 billion paid to more than 9,000 suppliers across the globe, US$2.1 billion was paid to local suppliers in the communities where we operate. Our expenditure with local suppliers in FY2021 was primarily in Chile (17 per cent), Australia (12 per cent), the United States (8 per cent) and Trinidad and Tobago (1 per cent). These percentages are of our total external expenditure. More information on social investment is available at bhp.com/socialinvestment 1.13.12 Environment We are committed to minimising our adverse environmental impacts. Our operations and growth strategy depend on obtaining and maintaining the right to access environmental resources. However, with growing pressure on, and competition for these resources, and with climate change amplifying certain sensitivities of our natural systems, our environmental performance and management of our environmental impacts on the communities where we operate are critical to creating social value. At every stage in the life cycle of our operated assets, we seek to avoid, minimise and mitigate our adverse environmental impacts in line with our defined risk appetite. We recognise our activities have an environmental footprint and commit to making voluntary contributions to support environmental resilience across the regions where we operate. Our Group-wide approach to environmental management is set out in the Our Requirements for Environment and Climate Change standard and our mandatory minimum performance requirements for risk management. These standards have been designed taking account of the ISO management system requirements, including ISO14001 for Environmental Management, and set the basis for how we manage risk, including realising opportunities, to achieve our environmental objectives. The Our Requirements for Environment and Climate Change standard requires us to take an integrated, risk-based approach to managing any actual or reasonably foreseeable operational impacts (direct, indirect and cumulative) on land, biodiversity, water and air. This includes establishing and implementing environmental risk monitoring and review practices throughout our business planning and project evaluation cycles. In addition to the broader environment-specific components, the standard includes climate change related requirements for our operated assets. To support continuous improvement, each of our operated assets is required to have an Environmental Management System (EMS) that aligns with ISO14001 standards and set target environmental outcomes for land, biodiversity, air and water resources that are consistent with the assessed risks and potential impacts. Target environmental outcomes are included in the life of asset plan and approved by the relevant Asset President or equivalent. Social Investment Framework a Aim FY2021 Future of We aim to enhance human capability and social - Through our support, approximately 19,000 people completed work inclusion through education and vocational education or training courses in digital, technology, leadership and/ training and skills development. or problem-solving initiatives. Over 9,750 of these participants were Indigenous people and 6,187 were female. - 313 education institutions aligned course content to business needs in order to better prepare participants for future work readiness. - 1,559 participants found paid employment following completion of their training. Future of We aim to contribute to environmental resilience - We made 29 investments in environmental restoration and environment through biodiversity conservation, ecosystem conservation initiatives. restoration, water stewardship and climate - Contributed to improved management of approximately change mitigation and adaptation. 13 million hectares. - 75 scientific or thought leadership papers or specific knowledge sharing events were supported. Future of We aim to contribute to the understanding, - 836 organisations enhanced internal capability to support efficient communities development and sustainable use of resources and sustainable communities. to support communities to be more adaptive - 505 organisations planned or delivered initiatives that increase/ and resilient. improve infrastructure, use of technology and/or use of resources that enhance community resilience, including 68 initiatives specific to Indigenous peoples. BHP Annual Report 2021 47

1.13 Sustainability continued We verify our EMS by ISO14001 certification (for sites currently holding ISO14001 certification) or through our internal assurance processes. More information on our environmental approach, the Our Requirements for Environment and Climate Change standard, and our environmental management and governance processes is available at bhp.com/sustainability Contributing to a resilient environment Biodiversity is essential to maintain healthy ecosystems and the clean air, water and productive landscapes and seascapes we all need to survive and thrive. We are seeing an increasing societal focus on the urgent need to reverse current trends in biodiversity loss, and as a global resources company, we acknowledge we have a role to play in contributing to environmental resilience. We do this through our social investment strategy and our work with strategic partners and communities. Our work with strategic partners, including Conservation International, and local communities is focused on contributing to enduring environmental and social benefits through biodiversity conservation and ecosystem restoration, water stewardship and climate change mitigation and adaptation. Our preference is to invest in projects that contribute to cultural, economic and community benefits in addition to environmental resilience. Since FY2011, we have invested more than US$85 million in environmental resilience initiatives. More information on the environment and our environmental projects is available at bhp.com/environment Our focus on environmental resilience is complementary to the work of the BHP Foundation. More information is available at bhp.com/foundation 1.13.13 Water Access to safe, clean water is a basic human right and essential to maintaining healthy ecosystems. Water is also integral to what we do and we cannot operate without it. In FY2017, we adopted a Water Stewardship Strategy to improve our management of water, increase transparency and contribute to the resolution of shared water challenges. Our Water Stewardship Position Statement was developed in FY2019 and outlines our 2030 vision. More information is available at bhp.com/water We recognise our responsibility to effectively manage our interactions with and minimise our adverse impacts on water resources. Effective water stewardship begins within our operations. We use water in a number of ways, including but not limited to: extracting it for ore processing and to access ore; dust suppression; processing mine tailings; providing drinking water and sanitation facilities; and using marine water for desalination. By improving water management and stewardship within our operations, we can more credibly collaborate with others to find solutions for water challenges and opportunities, including water scarcity or high variability in water supply. We work to identify and assess opportunities to reduce stress on water resources as a result of our operations and implement actions where appropriate. Key opportunities identified during FY2020 and FY2021 included working with stakeholders to identify shared water challenges through Water Resource Situation Analysis (WRSAs) and ongoing engagements and adoption of new water technologies. The outcomes of the WRSAs will be publicly available to support continued collaboration between stakeholders who share the same water resources we use in our operations. During FY2021, we focused on better understanding our catchment-level risks, developing long-term water strategies at our operated assets and setting performance standards for operational water-related risk. We also commenced a pilot program focused on catchment-level WRSAs to inform development of new public context-based water targets for our operated assets. We have made progress on our current public target for water. In FY2017, we announced a five-year water target of reducing FY2022 freshwater withdrawal(1) by 15 per cent from FY2017 levels(2) across our operated assets. In FY2021, freshwater withdrawal decreased by 11 per cent (113,444 megalitres compared to 126,997 megalitres in FY2020). Our FY2021 result also represents a 27 per cent reduction on the adjusted FY2017 baseline, exceeding our 15 per cent reduction target. Progress on the target is primarily due to ongoing reduction of groundwater withdrawal over the last five years, and from the cessation of groundwater withdrawal for operational consumption purposes from the Salar Punta Negra and Monturaqui aquifers at Escondida in December 2019. We remain on track to sustain reductions and meet the 15 per cent reduction target by the end of FY2022. Our global freshwater withdrawals from FY2017 to FY2021 are shown in the chart below. All water performance data presented in this Annual Report is from operated assets during FY2021. For a year-on-year comparison of data related to operated assets and further analysis of our water data and performance, refer to section 4.8.6. We report on the water metrics, risks and management, as described in section 4.8, in the ICMM 'A Practical Guide to Consistent Water Reporting' (ICMM guidance), and the Minerals Council of Australia's Water Accounting Framework (WAF). Generally, these align with the reporting requirements documented in the GRI Standards and the CEO Water Mandate. Currently, water withdrawal data reported is considered to be at a high accuracy level based on WAF determination. This is predominately driven by a high degree of accurately measured withdrawal quantity data at our Escondida desalination facility which represents just over half of our water withdrawal volumes. For more information about water accounting, including accuracy levels with respect to our discharge volumes and water data quality, refer to section 4.8.6 and bhp.com/water. Performance against freshwater withdrawal reduction target Megalitres 200,000 150,000 100,000 50,000 0 FY2017 FY2018 FY2019 FY2020 FY2021 Freshwater withdrawal FY2022 15% reduction target In FY2021, we began to report on water volumes for those operated assets classed by the WWF Water Risk Filter(3) as being located in high or extremely high water stress areas. The disclosure of water data in high-stress areas is required by numerous reporting frameworks, including the ICMM Water Reporting: Good practice guide (2nd Edition). (1) intended Where 'withdrawal' for use (in is accordance defined as water with 'A withdrawn Practical Guide and to Consistent is defined as Water waters Reporting', other than ICMM seawater, (2017)) wastewater . 'Fresh water' Freshwater from third parties withdrawal and hypersaline also excludes groundwater. entrained water that have would been not be made available to align for with other the uses. target's These intent exclusions to reduce the users use or of the freshwater environment. sources of potential value to other (2) The the materiality FY2017 baseline of the data strike has affecting been adjusted water withdrawals to account at for: Escondida methodologies in FY2017 at WAIO, and BMA improvements and BMC and to water exclusion balance of desalination hypersaline, and wastewater, Discontinued entrainment, operations supplies (Onshore from US assets) in FY2019 and FY2020. (3) https://waterriskfilter.panda.org/ 48 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information BHP has a commitment to contribute to improved mining sector water reporting through strengthened ICMM guidance, aligned with GRI requirements. In FY2021 we collated information on change in water storage as described in the revised ICMM Water Reporting Guidance and used it to support further assessment of the validity of assumptions underpinning asset water models and water balances. Water modelling contains a degree of uncertainty due to inclusion of estimates and assumptions. The collation of information to inform reporting of change in water storage has identified areas for improvement in the estimated and simulated data within the water models as currently used at our Coal assets. We intend to undertake work during FY2022 to assess underlying assumptions in an effort to improve the water modelling at those assets, as well as further maturing the measurement of changes in water storage across the Group. For this reason, we have not included change in water storage data in our reporting for FY2021. We seek to minimise our withdrawal of high-quality fresh water. Seawater continues to be our largest source of water withdrawal, representing more than half of total withdrawals, predominantly for desalination at Escondida and use of seawater in our Petroleum operated assets. Groundwater is our most significant freshwater source, at close to one-quarter of total water withdrawals. In FY2021, approximately 80 per cent of our water withdrawals consisted of water classified as low quality. The definitions for water quality types are provided in section 4.11.4 and a detailed description is available in section 2.4 of the WAF. Beyond our operational activities, we have committed to engaging across communities, government, business and civil society with the aim of catalysing actions to improve water governance, increase recognition of water's diverse values and advance sustainable solutions. We continue to collaborate with the CEO Water Mandate to support harmonisation of water accounting standards as part of our commitment to strengthen transparency and collaboration across all sectors for improved water governance. In the context of an environmental damage lawsuit in relation to the Salar de Punta Negra (SPN), Escondida, the Attorney General Office, the Indigenous Community of Peine and the Council of Atacamanian Peoples reached an environmental agreement that considers the implementation of a long-term environmental management plan, as well as a series of compensation and repair measures. A participatory governance arrangement, comprising representatives of all the involved parties, will work together for the implementation of the plan. Escondida stopped extracting water in SPN in 2017 and then completely ceased the use of groundwater from the SPN and Monturaqui Andean aquifers in 2019. Following a court ruling regarding Cerro Colorado's main environmental licence in January 2021, the Chilean Environmental Authority is re-evaluating the licence conditions permitting Cerro Colorado to extract water from the Lagunillas aquifer, and is carrying out a consultation process with an Indigenous community to assess potential environmental impacts. In August 2021 an individual commenced a legal action through the First Environmental Court of Antofagasta (Court) that alleges Cerro Colorado's water extraction from the Lagunillas aquifer has caused damage to the Lagunillas aquifer, the Huantija lagoon, and nearby wetlands. The Court granted an injunction requiring Cerro Colorado to suspend water extraction from the Lagunillas aquifer commencing on 1 October 2021 for a period of ninety days which may be extended. Cerro Colorado is evaluating its legal and operational options. For more information on our approach to water stewardship, progress against our water strategy, water performance in FY2021 and case studies on activities we are taking to progress towards meeting our water stewardship vision, refer to section 4.8.6 and bhp.com/water. 1.13.14 Land and biodiversity The nature of our activities means we have a significant responsibility for land and biodiversity management. We own or manage more than 8 million hectares of land and sea; however, only 2 per cent is disturbed (physical or chemical alteration that substantially disrupts the pre-existing habitats and land cover) for our operational activities. At each of our operated assets, we look to manage threats and realise opportunities to achieve our environmental objectives. We apply the mitigation hierarchy (avoid, mitigate, rehabilitate and, where appropriate, apply compensatory measures) to any potential or residual adverse impacts on marine or terrestrial ecosystems. We respect legally designated protected areas and commit to avoiding areas or activities where we consider the environmental risk is outside our risk appetite. As part of our commitments: - We do not explore or extract resources within the boundaries of World Heritage listed properties. - We do not explore or extract resources adjacent to World Heritage listed properties, unless the proposed activity is compatible with the outstanding universal values for which the World Heritage property is listed. - We do not explore or extract resources within or adjacent to the boundaries of the International Union for Conservation of Nature (IUCN) Protected Areas Categories I to IV, unless a plan is implemented that meets regulatory requirements, takes into account stakeholder expectations and contributes to the values for which the protected area is listed. - We do not operate where there is a risk of direct impacts to ecosystems that could result in the extinction of an IUCN Red List Threatened Species in the wild. - We do not dispose of mined waste rock or tailings into a river or marine environment. Our operated assets are required to have plans and processes that reflect local biodiversity risks and regulatory requirements. In FY2021, we prepared internal guidance on biodiversity-related elements of the Our Requirements for Environment and Climate Change standard to support more consistent interpretation and application of those standards at our operated assets. We have a five-year target to improve marine and terrestrial biodiversity outcomes by developing a framework by the end of FY2022. This will enable us to better monitor the impacts of our activities on biodiversity and to avoid, reduce and offset adverse impacts in a coordinated way. Development of the framework started in FY2018 and we are progressing this work with Conservation International and Proteus, a voluntary partnership between the UN Environment Programme World Conservation Monitoring Centre (UNEP WCMC) and 12 extractive industry companies. During FY2021, we assessed all our operated assets using an early stage methodology developed by UNEP WCMC and developed a prototype scorecard based on this methodology to test and refine how we track biodiversity status and trends at our operated assets. The framework will be used to track achievement of our long-term biodiversity goal: that by FY2030, we will have made a measurable contribution to the conservation, restoration and sustainable use of marine and terrestrial ecosystems in all regions where we operate in line with UNSDGs 14 and 15. More information on our approach to biodiversity and land management and current performance, including operated assets owned, leased, managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas is available in Section 4.8.4 Environment - performance data and at bhp.com/biodiversity. Closure We recognise the potentially significant social, environmental and financial risks associated with future closure of our operations. We seek to integrate closure into our planning, decision-making and operations through the entire life cycle of our operated assets. As a global leader in the development of natural resources, we have a responsibility to demonstrate a planned and purposeful approach to closure through the life cycle of our operated assets. This process requires the consideration of threats and opportunities for the communities and environment in which we operate, as well as our workforce and shareholder value. It drives towards optimised closure outcomes for our sites by balancing our values, obligations, safety, costs and the expectations of external stakeholders to enable an outcome that involves one or a combination of alternative land uses, ongoing management, relinquishment or responsible divestment. BHP Annual Report 2021 49

1.13 Sustainability continued Each of our operations (whether projects, producing, in care and maintenance or a closed site) must have a closure management plan, documenting the implementation of the closure management process. This process includes collating relevant knowledge and data, undertaking risk and opportunity assessments, framing and comparing alternative closure options, and selecting the optimised closure outcomes. Closure management plans are required to be supported by stakeholder engagement across the life cycle of the site, and should balance business and stakeholder needs while meeting the following objectives: - comply with legal requirements and obligations, and our mandatory minimum performance requirements for closure - achieve safe and stable outcomes and meet approved environment outcomes - manage pre and post-closure risks (including opportunities) - progressively reduce obligations, including progressive closure of the area disturbed by our operational footprint - manage and optimise closure costs Closure management plans are also required to include long-term monitoring to verify any controls implemented to manage closure risks and and seek to realise opportunities throughout the life of our operations, including closure and post-closure, are effective, and that performance standards are achieved and maintained after operations cease. Progressive closure of areas no longer required for operational purposes is included in our closure management plans and integrated into operational plans. Our closure management plans are regularly reviewed to reflect updated asset planning and include current knowledge obtained from onsite experience, locally, across our business and globally across the industry. Information about our financial provision related to closure and rehabilitation liabilities is available in note 15 'Closure and rehabilitation provisions' in section 3. We report annually on the status of land disturbance and rehabilitation. More information is available in section 4.8.4 More information on our approach to closure is available at bhp.com/ sustainability/environment/closure 1.13.15 Tailings storage facilities Ensuring the integrity of our tailings storage facilities (TSFs) is a primary focus across our business. Our aspiration is to achieve zero harm from tailings and we will continue to work with others and share our progress in an effort to make this a reality. In 2015, after the tragic failure of the Fundão dam at Samarco BHP immediately initiated a Dam Risk Review to assess the management of major TSFs. The catastrophic failure of the Brumadinho dam at Vale's operation in Brazil in January 2019 further strengthened our resolve to reduce tailings failure risk. For information about the Samarco tragedy and our progress with the response, refer to section 1.15 In CY2019 we created a Tailings Taskforce (TTF) team reporting to the Executive Leadership Team and the Board's Sustainability Committee. The TTF, accountable for accelerating our short-, medium- and long-term strategies and embedding leading practice, was integrated into the Resource Centre of Excellence at the end of FY2021 to create a permanent Tailings Excellence team. Governance In FY2021, we further strengthened the governance and assurance of our operated TSFs. We updated our mandatory minimum performance requirements for the effective management of TSF failure risks, aligning our internal requirements to the Global Industry Standard on Tailings Management (GISTM). This is intended to ensure our technical TSF and cross-functional guidance is consistent with the GISTM and the requirements are embedded across the business. Our focus is on gap assessments against the GISTM, completing corporate, asset and TSF-level evaluations to inform our implementation planning towards conformance within the timelines outlined by the ICMM. A BHP Tailings Storage Facility Policy Statement has been published on our website, outlining our Board of Directors' commitment to the safe management of TSFs, emergency preparedness and response, recovery in the event of a failure and transparency. We also defined our Accountable Executive (AE) positions, who are direct reports of the BHP Chief Executive Officer and answerable to the BHP Board's Sustainability Committee in conformance with GISTM requirements. The AE roles include an AE accountable for the companywide TSF governance framework, and AEs accountable for the safety of TSFs, tasked with avoiding or minimising the potential environmental and social impacts of a TSF failure, tailings management training and emergency preparedness and response. Their responsibilities will include having regular communication with TSF operational and technical employees. In FY2021, we continued to progress critical work on TSF failure risk management. We completed the independent reviews of TSF failure risks across our operations with findings incorporated into risk remediation plans. These reviews partner leading industry experts with our technical leads to review and enhance our global tailings governance framework. The process is in addition to other governance activities, including Dam Safety Reviews, Independent Tailings Review Boards and project specific Independent Peer Reviews. Key risk indicators (KRIs) set by management help to monitor the performance in dam integrity and design, overtopping/flood management and emergency response planning. These KRIs have been updated to align to the GISTM. We engaged in a partnership with Rio Tinto and the University of Western Australia to support the Future Tails Initiative, focused on training, education, research and best-practice guides in the tailings management space. This is a major step towards supporting safe stewardship of TSFs for the industry and we intend to continue this collaboration to build capacity and knowledge within the industry. Strategy Our short-term strategy continues to focus on improving KRI performance in line with defined targets. We are completing studies at all our operated assets focused on reducing and mitigating potential downstream impacts particularly to populations at risk (PAR). Most assets have completed these studies resulting in a diverse range of options to reduce the PAR exposure at our TSF sites or mitigate TSF failure risk. In some cases, we have elected to proactively eliminate the risk of catastrophic failure. For example, we have relocated a TSF at a Legacy Asset (an operated asset, or part thereof, located in the Americas that is in the closure phase) site in Miami, Arizona, to a nearby depression on the interior of the mine site which is expected to eliminate the risk of failure to people in the potential impact zone. Our medium- and long-term strategies focus on the development of technologies to improve tailings management storage, which we believe are important to achieving our aspiration of zero harm from tailings. Asset-specific strategies have been developed for all of our operated and legacy assets and seek long-term alternative tailings solutions. In addition, while our non-operated joint ventures (NOJVs) are independently controlled and have their own operating and management standards, we encourage NOJVs to consider long-term alternative tailings solutions as an option in asset planning. Transparency We fully support the GISTM and are working towards implementation at our sites. We have prioritised and actioned a phased disclosure approach to support our journey towards conformance, starting with an update to our previously published Church of England Disclosure. We have contributed to improvements in tailings storage management across the mining industry, including through the ICMM Tailings Working Group. We are participants in other tailings working groups globally, including those associated with the Canadian Dam Association, Australian National Committee on Large Dams, Australasian Institute of Mining and Metallurgy, Minerals Council of Australia, Society for Mining, Metallurgy and Exploration, and Fundación Chile. We have continued to participate in the Investor Mining and Tailings Safety Initiative, an investor-led engagement convening institutional investors active in extractive industries, including major asset owners and asset managers. 50 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Operated and non-operated tailings portfolio The classifications described in this Annual Report align to the Canadian Dam Association (CDA) classification system. It is important to note the TSF classification is one element of TSF risk management, but does not represent risk itself. It reflects the modelled, hypothetical most significant possible failure and consequences without controls. It does not reflect the current physical stability of the TSF and it is possible for TSF classifications to change over time, for example, following changes to the operating context of a dam. As such, this data represents the status of the portfolio as at 30 June 2021. The TSF classification informs the design, surveillance and review components of risk management. Therefore, TSFs with a higher-level classification will have more rigorous requirements than TSFs that have a lower level of classification. In total, there are 72 TSFs(1) at our operated assets, 29 of which are of upstream design. Of the 72 operated facilities, three are classified as extreme and a further 17 classified as very high. Fourteen of our operated facilities are active. A substantial portion of our inactive portfolio (58) at our assets is due largely to the number of historic tailings facilities associated with our North American legacy assets portfolio. Further detail of the risk reduction work underway for high consequence classification facilities is provided above in the Strategy and Governance sections and online at our case studies. There are 12 TSFs at our non-operated joint ventures, which are all located in the Americas. The four active tailings facilities are located in Antamina in Peru, which is of downstream construction, Patilla Norte Pit, an in-pit TSF at Cerrejón in Colombia, and two TSFs at Samarco in Brazil, Alegria Sul TSF, which is co-mingled dry stack, and Alegria Sul Pit, an in-pit TSF. In addition, there are eight inactive facilities. These comprise of two upstream facilities at Samarco (Germano) in Brazil being decommissioned following the February 2019 rulings by the Brazilian Government on upstream dams in Brazil; three upstream inactive facilities and one inactive modified centreline facility at Resolution Copper in the United States; one downstream inactive facility at Bullmoose in Canada and one inactive downstream facility, Cantor TSF, at Cerrejón in Colombia. More information on our management of TSFs and global governance strategy is available at bhp.com/tailings Classification of (1)(2)(3)(4)(5)(6)(7) operated tailings Types of operated (1)(2)(8) tailings Operational status of operated (1)(2)(9) storage facilities storage facilities tailings storage facilities Extreme 3 Centreline 7 Active 14 Very high 17 Downstream 19 Inactive 58 High 16 Upstream 29 Significant 11 Other 17 Low 15 N/A 10 (1) TSF The definition number of established tailings storage in the facilities Global Industry (TSFs) is based Standard on for the Tailings definition Management agreed to by (GISTM) the ICMM . An Tailings increase Advisory of five TSFs Group is reported at the original since time our Church of submission of England and submission expanded to in align 2019 with due the to the updated BHP definition of TSF to align with the GISTM. We keep this definition under review. (2) The a TSF under Island Copper the GISTM tailing definition facility originally of a TSF. disclosed Tailings at in Island our Church Copper of were England deposited submission in the ocean in 2019 under for the an purposes approved of license transparency and environmental has been removed impact as assessment. it is not a dam This nor historic considered practice ceased in the 1990s. We have since committed not to dispose of mine waste rock or tailings in river or marine environments. We continue to conduct environmental effects monitoring. (3) The and consequences following classifications possible aligned without to controls, the CDA and classification not on the current system. physical It is important stability to of note the that dam. the classification is based on the modelled, hypothetical most significant failure mode (4) For the purposes of this chart, ANCOLD and other classifications have been converted to their CDA equivalent. (5) classification, Hamburgo TSF the at assessment Escondida is to an determine inactive facility the GISTM where classification tailings were will deposited be completed into a natural in CY2021. depression. Hamburgo TSF is not considered a dam and is, therefore, not subject to CDA (6) SP1/2 and SP3 TSF at NSWEC are inactive facilities which have been assessed to have no credible failure modes and are therefore shown as not having a CDA classification. (7) Seven TSFs are currently under assessment to determine their consequence classification. (8) 'Other' includes dams with a raising method that combines upstream, downstream and centreline or are of in-pit design. (9) 'Inactive' includes facilities not in operational use, under reclamation, reclaimed, closed and/or in post-closure care and maintenance. BHP Annual Report 2021 51

1.13 Sustainability continued 1.13.16 Independent Assurance Report to the Management and Directors of BHP Group Limited and BHP Group Plc (BHP) What we assured Ernst & Young (EY) was engaged by BHP to provide limited assurance over certain sustainability data and disclosures in BHP's Annual Report for the year ended 30 June 2021 ('FY21 Annual Report') and online, in accordance with the noted criteria, as defined in the following table: What we assured (Limited Assurance Subject Matter) What we assured it against (Criteria) FY21 BHP's Annual qualitative Report disclosures in sections 1.12 and 1.13 of the - Management's own publicly disclosed criteria in BHP's the ICMM Sustainability tab in BHP's policies ESG and Standards standards and as Databook disclosed - International Mining Principles Council and on relevant Mining Performance and Metals (ICMM) www.bhp.com/FY21ESGStandardsDatabook. Expectations Statements (Subject (PE) (2020) Matter and 1) mandatory Position BHP's risks and identification opportunities and described reporting within of its material the FY21 sustainability Annual - ICMM Subject Matter 2 - Global Reporting Initiative (GRI) Principles for defining Report and online at bhp.com/materialityassessment report content manage BHP's implementation its material sustainability of systems risks and and approaches opportunities to - ICMM Subject Matter 3 and BHP's opportunities reported performance in sections of 1.12, its 1 .material 13, and 4 sustainability .8 of the FY21 risks - ICMM Subject Matter 4 - Management's own publicly disclosed criteria including Annual Report GRI Topic Specific Standards and Sustainability Accounting Metals Standard Standards Board (SASB) Mining and BHP's assets prioritisation for PE validation process reported for the online selection at bhp of .com/ - ICMM Subject Matter 5 sustainabilitystandards Annual Water stewardship Report and reporting, supporting at disclosures an asset level, included in the FY21 online at - A ICMM Practical guidance Guide and to Consistent minimum disclosure Water Reporting Standards: bhp.com/water In the addition, noted criteria: we were engaged by BHP to provide reasonable assurance over the following information in accordance with What we assured (Reasonable Assurance Subject Matter) What we assured it against (Criteria) Scope section 1 1 and .13.7 2 and Greenhouse 4.8.5 of the Gas FY21 emissions Annual Report as reported in - Sustainable World Resource Development Institute/World Business Council for (WRI/WBCSD) Greenhouse Gas Protocol - BHP's Basis of Preparation Our Conclusions - Limited Assurance Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that suggests that BHP's sustainability data and disclosures and asset level water stewardship disclosures reported in sections 1.12, 1.13 and 4.8 of the FY21 Annual Report have not been prepared, in all material respects, in accordance with the Criteria defined above. - Reasonable Assurance In our opinion, the Scope 1 and 2 greenhouse gas emissions, as reported in section 1.13.7 and 4.8.5 of the FY21 Annual Report are prepared, in all material respects, in accordance with the Criteria defined above. Emphasis of Matter We draw attention to section 4.8.6 in the FY21 Annual Report and online at bhp.com/water, in which BHP discloses performance metrics as it relates to water withdrawals, consumption and discharges. The collation of water storage data during FY21 has identified uncertainty in the water models currently used at BHP's Coal Assets (BMA, BMC and NSW Energy Coal). As a result, the disclosed water performance data for the Coal Assets is subject to estimation uncertainty but is based on the best information available at the time of reporting. Our conclusion is not modified in respect of this matter. Key responsibilities EY's responsibility and independence Our responsibility was to express limited and reasonable assurance conclusions on the noted subject matter as defined in the 'what we assured' column in the tables above (Subject Matter). We were also responsible for maintaining our independence and confirm that we have met the requirements of the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) and have the required competencies and experience to conduct this assurance engagement. BHP's responsibility BHP's management was responsible for selecting the Criteria and preparing and fairly presenting information presented and referenced in the FY21 Annual Report in accordance with that Criteria. This responsibility includes establishing and maintaining internal controls, adequate records and making estimates that are reasonable in the circumstances. Our approach to conducting the Review We conducted our procedures in accordance with the International Federation of Accountants' International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (ISAE 3000), the Standard for Assurance on Greenhouse Gas Statements (ISAE 3410) and the terms of reference for this engagement as agreed with BHP on 27 January 2021. We adapted our approach to undertaking our review procedures in response to the COVID-19 travel restrictions and social distancing requirements. We visited one BHP site in person with the remaining 'site visits' undertaken virtually by phone and video-conference. The performance of the year end corporate review procedures at head office was also required to be conducted remotely and was supported through the use of collaboration platforms for discussions and delivery of requested evidence. The procedures we performed were based on our professional judgement and included, but were not limited to - Interviewing select corporate and site personnel to understand the reporting process at group, business, asset and site level, including management's processes to identify BHP's material issues - Reviewing BHP policies and management standards to determine alignment with the ICMM's 10 Sustainable Development principles and position statements - Checking the FY21 Annual Report to understand how BHP's identified material risks and opportunities are reflected within the qualitative disclosures - Evaluating whether the information disclosed in the FY21 Annual Report and related disclosures is consistent with our understanding of sustainability management and performance at BHP - Evaluating the suitability and application of the Criteria and that the Criteria have been applied appropriately to the Subject Matter - Conducting a mix of virtual and in-person site procedures at eight BHP locations to evidence site level data collection and reporting to Group as well as to identify completeness of reported water and emission sources - Undertaking analytical procedures of the quantitative disclosures in the FY21 Annual Report and related online disclosures - Reviewing data, information or explanation about the sustainability performance data and statements included in the FY21 Annual Report and related online disclosures - Reviewing other information within the FY21 Annual Report for consistency and alignment with our assurance subject matter - On a judgemental sample basis, re-performing calculations to check accuracy of claims in the FY21 Annual Report - Checking the water balance for each asset and judgementally selecting a sample of water streams for further testing - On a sample basis, based on our professional judgement, agreeing claims to source information to check accuracy and completeness of claims, which included invoices, incident reports, meter calibration records, and meter data - For our reasonable assurance of Greenhouse Gas emissions, selecting key items and representative sampling, based on statistical audit sampling tables and agreeing to source information to check accuracy and completeness of performance data, which included invoices, metre calibration records and metre data. We believe that the evidence obtained is sufficient and appropriate to provide a basis for our reasonable and limited assurance conclusions Other Matters We have not performed assurance procedures in respect of any information relating to prior reporting periods, including those presented in the FY21 Annual Report, other than sustainability data and disclosures relating to BHP's Annual Report for the year ended 30 June 2020. Our report does not extend to any disclosures or assertions made by BHP relating to case studies and future performance plans and/or strategies disclosed in the FY21 Annual Report. While we considered the effectiveness of management's internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems. Limited and Reasonable Assurance Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. While our procedures performed for our reasonable assurance engagement are of a higher level of assurance, due to the use of sampling techniques, it is not a guarantee that it will always detect material misstatements. Use of our Assurance Statement We disclaim any assumption of responsibility for any reliance on this assurance report to any persons other than management and the directors of BHP, or for any purpose other than that for which it was prepared. Ernst & Young Mathew Nelson Melbourne, Australia Partner 2 September 2021 52 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 1.14 Section 172 statement value We are to committed shareholders to continuing and to growing to deliver value strong for other stakeholders who depend on and support BHP. We believe this focus will be a long-term source of competitive advantage. Our Directors communicate with stakeholder groups to understand their interests and priorities through various channels, including via direct engagement and delegated committees and forums. The UK Companies Act 2006 (CA 2006) sets out a number of general duties that directors owe to the company, including the duty to promote the success of the company, while having regard to the factors, including stakeholder factors, set out in section 172(1)(a) to (f) of the CA 2006. Our Section 172 Statement sets out at a high-level how the Board considers the interests of a range of stakeholders in its discussions, decision-making and implementation of BHP's strategy and purpose. In addition, the Board considers the likely consequences of decisions in the long term and the importance of maintaining a reputation for high standards of business conduct. For more information on the Board's decision-making process refer to section 2.1.3 Workforce The Board uses a range of formal and informal communication channels and reporting methods to understand the views of the workforce. Key focus areas include health, safety and wellbeing matters, opportunities for career development and progression, as well as the Group's culture and purpose. For more information refer to sections 1.12 and 2.1.6 How we engage and communicate Direct engagement Directors hear from employees up to several levels below the CEO, at Board and Board Committee meetings, and at virtual and physical site visits. Issues raised by employees in these sessions have included the impact of COVID-19 in relation to mental health and fatigue management (due to quarantine requirements), views on the effectiveness of health and safety initiatives, and engagement activities with local communities. Webcasts Webcasts are used by the CEO to deliver key messages to the workforce on topics such as financial results, strategy, health and safety performance, confirming our zero tolerance for sexual assault and sexual harassment and our COVID-19 response; as well as for live Q&A and town hall sessions with members of management. Engagement and Perception Survey (EPS) and Culture Dashboard These results provide insight to the Board on our culture and areas of focus, including where we are lagging in certain measures. The EPS survey was redesigned in FY2021 to include more targeted questions and a new survey platform to provide leaders with greater insight into the key metrics related to Safety, Engagement and Enablement, which were identified as critical foundations for our performance culture. For more information refer to section 1.12 EthicsPoint Our 24-hourspeak-up helpline enables employees and other stakeholders to raise matters of concern. This helps to ensure Board oversight of culture and management response to any alleged serious conduct contrary to Our Charter and Our Code of Conduct. For more information on EthicsPoint refer to section 2.1.15 Impact of our engagement on decision-making, strategy and purpose Inclusion and diversity The Board considers and discusses progress against agreed inclusion and diversity objectives and endorses inclusion and diversity scorecard KPIs. For more information refer to section 2.1.9 Culture and capability The Board considers the capabilities and culture required for the effective execution of our strategy. These considerations are reflected in organisational structure decisions (including the design of our Executive Leadership Team, for example, the two new roles of Chief Technical Officer and the Chief Development Officer); as well as training, development and succession planning. Mental and physical health and wellbeing Feedback from the workforce is taken into consideration as part of health and wellbeing initiatives, such as the measures implemented in response to the COVID-19 pandemic for people on-site and those working from home. Consistent with our focus on mental health within our business and recognising the particular challenges faced by the resources industry, BHP was a founding member of the Global Business Initiative for Workplace Mental Health. For more information refer to section 1.13.5 Community and government We recognise mutually beneficial relationships with communities and governments are crucial to our strategy and building social value. Key focus areas include the Group's economic and social contribution, Indigenous relations and our approach to sustainability and environmental matters. For more information refer to section 1.13 How we engage and communicate Forum on Corporate Responsibility (FCR) The Sustainability Committee and other members of the Board meet with members of the FCR, which comprises civil society leaders in various fields of sustainability, to discuss FCR members' views on societal trends and how these may influence BHP's emerging risks. EthicsPoint Our 24-hourspeak-up helpline can also be used by external stakeholders to raise matters of concern. Cultural heritage practices The Board and Sustainability Committee receive updates on BHP's cultural heritage management, including in relation to actions to enhance our systems, processes and capability. The Chair and CEO also engaged directly with the First Nations Heritage Protection Alliance. We are focused on continuing to develop our relationships with Traditional Owners, for example, in September 2020, we further strengthened our 20-year partnership with the Banjima people in Western Australia through the establishment of the South Flank Heritage Advisory Council. This is intended to ensure ongoing high-level dialogue between us on important cultural heritage and other matters. Impact of our engagement on decision-making, strategy and purpose Relationships with Traditional Owners in Australia In FY2021, we established a new global Indigenous Engagement team to lead Indigenous engagement, agreement-making and advocacy to enhance our focus on our engagement with Indigenous peoples. For more information on the improvements to our systems and processes to reflect engagement with Traditional Owners refer to section 1.13.10 First Nations Heritage Protection Alliance BHP and the First Nations Heritage Protection Alliance jointly designed a set of shared principles, which reaffirm BHP's commitment to Free, Prior and Informed Consent in agreement- making. For more information refer to section 1.13.10 BHP Annual Report 2021 53

1.14 Section 172 statement continued Social value We are embedding the consideration of social value creation across BHP, including in relevant Group targets, policies and investment decision-making processes, as well as in planning cycles for our operated assets. Social investment commitment This is aligned with our broader business priorities and supports projects and provides donations with the primary purpose of contributing to the resilience of the communities and environment where we have a presence. For more information refer to section 1.13.11 Climate policy and other ESG issues The Board takes into account community and expert external views, including the FCR, in considering climate policy and other ESG issues. Investors Part of the Board's commitment to high-quality governance is expressed through the approach BHP takes to engaging and communicating with our investors. Key focus areas include the Group's overall strategy, capital allocation, social value and our financial and operational performance. For more information refer to section 2.1.6 How we engage and communicate Investor meetings We engage regularly with investors on key areas of market interest, including heritage protection, industry associations and climate matters and feedback from these meetings is shared with the Board. Question and answer sessions These sessions provide shareholders the opportunity to ask BHP leaders about the topics most important to them with answers webcast via BHP's website. Review of investor perspectives The Board receives regular feedback on investor perceptions and opinions, including through independent survey results and associated analysis. Annual General Meetings (AGMs) All Board members attended the 2020 BHP Group Limited AGM virtually to engage directly with shareholders. A virtual forum for BHP Group Plc shareholders was also held as an opportunity to hear from the Chair and CEO, and to ask questions via a live text facility. Industry associations We engaged with investors to discuss their views on industry associations in advance of and subsequent to the 2020 AGMs. For more information refer to section 2.1.6 Impact of our engagement on decision-making, strategy and purpose Consideration of ESG issues Given investor interest in ESG issues, including related financial threats and opportunities the Board considers these during its strategy sessions when assessing our portfolio positions, including opportunities to create more options in future facing commodities. Portfolio considerations Creating and securing more options in future facing commodities remains a priority in order to strengthen our portfolio and protect and grow value over the long term. In FY2021, this included our intention to exit from our energy coal assets and non-core metallurgical coal assets, and the agreement to sell our stake in Colombian energy coal mine Cerrejón. For more information refer to section 1.5 Industry associations Investor feedback has been a key input to BHP's reforms announced in August 2020 and the active role BHP plays in shaping the policy advocacy of industry associations in which it participates. Suppliers and customers We seek to build authentic, collaborative relationships with our local, regional and global suppliers and customers to create shared value. We see respecting human rights as critical for our ability to contribute meaningful and ongoing social value to our stakeholders. We expect businesses we work with to respect human rights throughout the value chain. Key focus areas include the Group's supply chain management and our approach to procurement and sales. For more information refer to section 1.13.9 How we engage and communicate Supply chain human rights The Sustainability Committee considers BHP's approach to policy developments in and management of human rights. The Board and Sustainability Committee review our approach to managing human rights risks in the supply chain through the discussion and approval of our annual Modern Slavery Statement. For more information refer to section 1.13.9 Climate change We are engaging with our customers and progressively with our suppliers, on opportunities to reduce Scope 3 GHG emissions. For more information refer to section 1.13.7 Impact of our engagement on decision-making, strategy and purpose Emissions reduction partnerships We established emissions reduction partnerships with three major steelmakers in China and Japan whose combined output equates to around 10 per cent of global steel production. Payment terms From 1 July 2021, BHP implemented seven-day payment terms for all small, local and Indigenous businesses across our global operations. The move followed positive feedback on quicker payment terms implemented by BHP for several months in CY2020 as a temporary COVID-19 support measure. Environment The Board and its Committees consider a range of environmental matters throughout the year, including detailed discussions relating to climate change, biodiversity, water, tailings storage facilities, rehabilitation and closure. For more information refer to section 1.13.12 How we engage and communicate Climate change Our purpose and our strategy provide a clear direction for our climate change strategy. The Board and its relevant Committees consider climate change, including the external landscape in relation to climate risks and expectations, progress against BHP's climate change commitments and our climate risk exposure. For more information refer to section 1.13.7 Health, safety, environment and community (HSEC) targets The Sustainability Committee receives updates on how we are performing against our public HSEC targets and longer-term goals, including in relation to water and biodiversity. For more information refer to sections 1.13.4 and 2.1.11 Environmental performance The Sustainability Committee considers reports from the HSE Officer covering environmental performance at every meeting and reports to the Board on its discussions. Impact of our engagement on decision-making, strategy and purpose Climate change commitments The Board approved commitments, including setting a medium-term target for operational (Scope 1 and Scope 2) emissions, Scope 3 emissions goals and the link between emissions performance and executive remuneration. The Board considered stakeholder feedback and views as part of its decision-making process. Capital allocation In addressing our Scope 1 and Scope 2 emissions, as with all capital investments, we assess and rank each decarbonisation project through the rigour of our Capital Allocation Framework. Achieving our Scope 1 and Scope 2 emissions reduction targets and goal ranks alongside maintenance capital in the hierarchy of our decisions. Renewable power contracts In keeping with our target to reduce operational emissions by at least 30 per cent from FY2020 levels(1) by FY2030 and our long-term goal to achieve net zero operational emissions by 2050, we established renewable power contracts for our coal operations in Queensland and nickel operations in Western Australia. (1) FY2020 baseline will be adjusted for any material acquisitions and divestments based on GHG emissions at the time of the transaction. Carbon offsets will be used as required. 54 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 1.15 Samarco The Fundão dam failure On 5 November 2015, the Fundão tailings dam operated by Samarco Mineração S.A. (Samarco) failed. Samarco is a non-operated joint venture (NOJV) owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale), with each having a 50 per cent shareholding. A significant volume of tailings (39.2 million cubic metres) resulting from the iron ore beneficiation process was released. Tragically, 19 people died - five community members and 14 people who were working on the dam. The communities of Bento Rodrigues, Gesteira and Paracatu de Baixo were flooded and other communities and the environment downstream in the Rio Doce basin were also affected. In December 2020, Samarco restarted its operations at a reduced production level For information on Samarco's restart and its operations refer to section 1.10.3 Our response and support for Fundação Renova BHP Brasil has been and remains fully committed to supporting the extensive ongoing remediation and compensation efforts of the Fundação Renova in Brazil. The Framework Agreement entered into between Samarco, Vale and BHP Brasil and the relevant Brazilian authorities in March 2016 established Fundação Renova, a not-for-profit, private foundation that is implementing 42 remediation and compensatory programs. BHP Brasil provides support to Fundação Renova, including through representation on the foundation's governance structures. BHP Brasil has provided US$1.6 billion(1) to fund Framework Agreement programs when Samarco has been unable to do so. Fundação Renova Resettlement One of Fundação Renova's priorities is the resettlement of the communities of Bento Rodrigues, Paracatu de Baixo and Gesteira. This involves ongoing engagement and consultation with a large number of stakeholders, including the affected community members, their technical advisers, state prosecutors, municipal leaders, regulators and other interested parties. The resettlement process for Bento Rodrigues and Paracatu de Baixo involves designing new towns on land that has been chosen by the communities, to be as close as possible to the previous layout, attending to the wishes and needs of the families and communities, while also meeting permitting requirements. In Bento Rodrigues and Paracatu de Baixo, the implementation of precautionary measures in response to COVID-19, including a suspension of works between March and June 2020, as well as increases to the technical scope for resettlement of the communities and permitting delays have impacted the timeline for completion. Resettlement works resumed from mid-June 2020 and are continuing with a reduced workforce. Currently, there is no schedule to return to full workforce capacity given COVID-19 restrictions. At Bento Rodrigues, the construction of the public school, healthcare facilities and public infrastructure has been completed and the construction of housing is continuing to progress. At Paracatu, infrastructure works and the construction of some public buildings (such as the public school) were completed and the first houses are underway. In addition to the community resettlements, some families from the rural area chose to rebuild their houses on their previous property. Some other families have chosen not to join the resettlement of their previous community and Fundação Renova is assisting them to purchase properties. At Gesteira, Fundação Renova offered the families a payment solution in which they would be able to purchase property through a 'letter of credit'. Most families of Gesteira have chosen this option and the agreements are being ratified by the 12th Federal Court. Updates on the progress of Fundação Renova's resettlement program are available at fundacaorenova.org/en/repair-data/ resettlement-and-infrastructure. Compensation and financial assistance Fundação Renova continues to provide fair compensation to people impacted by the dam failure. Compensation and financial assistance of approximately R$4.7 billion (approximately US$1.1 billion(1)) has been paid to support approximately 336,000 people affected by the dam failure up until 30 June 2021. More than 10,500 general damages claims have been resolved and more than 270,000 people have been paid a total of approximately R$280 million (approximately US$65 million(1)) for temporary water interruption. The general damages component includes loss of life, injury, property damage, business impacts, loss of income and moral damages. Fundação Renova continues to provide financial assistance cards and other income support to those whose livelihoods continue to be impacted by the dam failure, including fisherfolk whose activities are affected by fishing restrictions. In addition, approximately R$1.6 billion (approximately US$300 million(1)) was paid to more than 17,000 people under the court-mandated simplified indemnity system (known as the 'Novel' system), which is designed to provide compensation for informal workers who have had difficulty proving the damages they suffered, such as cart drivers, sand miners, artisanal miners and street vendors. Updates on the progress of the compensation program are available at fundacaorenova.org/ en/repair-data/indemnities-and-productive-resumption. Other socio-economic programs Fundação Renova continues to implement a wide range of socio-economic programs in addition to the resettlement and compensation programs. These programs cover health and infrastructure projects in the Rio Doce basin, promotion of economic development in the impacted communities and sewage treatment facilities to improve the water quality in the Rio Doce. Environmental remediation Since December 2019, the riverbanks and floodplains have been vegetated, river margins stabilised and in general, water quality and sediment qualities have returned to historic levels. Long-term remediation work is continuing to re-establish agriculture and native vegetation. A ban on fishing activities along the coast of Espírito Santo and a precautionary conservation restriction preventing fishing for native fish species in the Rio Doce in Minas Gerais remain in place. Fundação Renova continues to support the recovery of habitats and aquatic ecology and engage with the authorities with the goal of lifting the restrictions. Legal proceedings BHP Group Limited, BHP Group Plc and BHP Brasil are involved in legal proceedings relating to the Samarco dam failure. For more information on the significant legal proceedings involving BHP refer to section 4.9 (1) USD amount is calculated based on actual transactional (historical) exchange rates related to Renova funding.BHP Annual Report 2021 55

1.16 Risk factors Our principal risks are described below and may occur as a result of our activities globally, including in connection with our operated and non-operated assets, third parties engaged by BHP or through our value chain. Our principal risks, individually or collectively, could threaten our viability, strategy, business model, future performance, solvency or liquidity and reputation. They could also materially and adversely affect the health and safety of our people or members of the public, the environment, the communities in which we or our third-party partners operate, or the interests of our stakeholders leading to litigation (including class actions) or a loss of stakeholder and/or investor confidence. References to 'financial performance' includes our financial condition and liquidity, including due to decreased profitability or increased operating costs, capital spend, remediation costs or contingent liabilities. While the risks described in this section represent our principal risks, BHP is also exposed to other risks that are not described in this section. Each of our principal risks may present opportunities as well as threats. We take risk for strategic reward in the pursuit of our strategy and purpose, including to grow our asset portfolio and develop the right capabilities for the future of our business. Potential threats and opportunities associated with each of our principal risks are described below, along with the key controls to manage them. These controls are not exhaustive and many Group-wide controls (such as Our Code of Conduct, Risk Framework, mandatory minimum performance requirements for risk management, health, safety and other matters, dedicated non-operated joint venture teams and our Contractor Management Framework) help to support effective and efficient management of all risks in line with our risk appetite. While we implement preventative and/or mitigating controls designed to reduce the likelihood of a threat from occurring and minimise the impacts if it does, these may not be effective. Key changes to our principal risks in FY2021 are the introduction of risks associated with inadequate business resilience and adopting technologies. The way in which we articulate our other principal risks has also changed since our FY2020 Annual Report. For example, risks associated with operational events have been consolidated into a single risk factor rather than being discussed across two risk factors. We have also disaggregated and combined elements of principal risks. For example, risks associated with third-party performance are embedded throughout our principal risks and climate change risks have been separated to provide a greater focus on transition risks, while risks associated with the potential physical impacts of climate change are addressed alongside other business resilience risks (as well as across other relevant principal risks). We have also simplified the presentation of our principal risks. These changes are designed to provide greater accessibility and value to stakeholders in understanding our principal risks. With the exception of risks associated with operational events, exposure to all of our principal risks increased in FY2021. These increases were largely driven by uncertainties in the external environment, such as the continuing global impacts of the COVID-19 pandemic, heightened geopolitical tensions and societal and stakeholder expectations of business (including in relation to social, environmental and climate-related risks), and increasing frequency and sophistication of cyberattacks against companies in the resources industry and governments. While our influence over most of these aspects of our external environment is limited, we continue to monitor signals and review our control environment to improve management of associated risks. Operational events Risks associated with operational events in connection with our activities globally, resulting in significant adverse impacts on our people, communities, the environment or our business. Why is this important to BHP? We engage in activities that have the potential to cause harm to our people and assets, and/or communities and the environment, including serious injuries, illness and fatalities, loss of infrastructure, amenities and livelihood and damage to sites of cultural significance. An operational event at our operated or non-operated assets or through our value chain could also cause damage or disruptions to our assets and operations, impact our financial performance, result in litigation or class actions and cause long-term damage to our licence to operate and reputation. The potential physical impacts of climate change could increase the likelihood and/or severity of risks associated with operational events. Impacts of operational events may also be amplified if we fail to respond in a way that is consistent with our corporate values and stakeholder expectations. Examples of potential threats - An offshore well blow out, including at one of our assets in the US Gulf of Mexico, Australia, Trinidad and Tobago or Algeria, or at one of our appraisal and exploration options in Mexico, Trinidad and Tobago, Western and Central Gulf of Mexico or Australia. - Failure of a water or tailings storage facility, such as the tragic failure of the Fundão dam at Samarco in 2015 or a failure at one of our facilities in Australia, Chile, Colombia, Peru, the United States, Canada or Brazil. - Unplanned fire events or explosions (on the surface and underground). - Geotechnical stability events (such as an unexpected and large fall of ground at our underground or open pit mines, or potential interaction between our mining activities and community infrastructure or natural systems), including at our underground mines in Australia, the United States and Canada. - Air, land (road and rail) and marine transportation events (such as aircraft crashes or vessel collisions, groundings or hydrocarbon release) that occur while transporting people, supplies or products to exploration, operation or customer locations, which include remote and environmentally sensitive areas in Australia, South America, Asia and the United States. - Critical infrastructure or hazardous materials containment failures, other occupational or process safety events, or workplace exposures. - Operational events experienced by third parties, which may result in unavailability of shared critical infrastructure (such as railway lines or ports) or transportation routes (such as the Port Hedland channel in Western Australia). Examples of potential opportunities - Our focus on safety and the welfare of our people, communities and the environment may increase workforce and other stakeholder confidence, enhancing our ability to attract and retain talent and access (or lower the cost of) capital. - Collaborating with industry peers and relevant organisations on minimum standards (such as the Global Industry Standard on Tailings Management and Large Open Pit Project guidelines on open-pit mining design and management) supports improvements to wider industry management of operational risks and may also identify opportunities to improve our own practices. Key management actions - Planning, designing, constructing, operating, maintaining and monitoring surface and underground mines, water and tailings storage facilities, wells and other infrastructure and equipment in a manner designed to maintain structural integrity, prevent incidents and protect our people, assets, communities, the environment and other stakeholders. - Specifying minimum requirements and technical specifications, such as for transportation (including high-occupancy vehicles, aircraft and their operators), and compliance with operating specifications, industry codes and other relevant standards, including BHP's mandatory minimum performance requirements. - Defining key accountable roles, such as a dam owner (an internal BHP individual who is accountable for maintaining effective governance and integrity of each tailings storage facility), and providing training and qualifications for our people. - Inspections, reviews, audits and other assurance activities, such as independent dam safety reviews and geotechnical review boards. 56 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information - Maintaining evacuation routes, supporting equipment, continuity plans and crisis and emergency response plans. - Incorporating future climate projections into operational event risks through ongoing assessment of potential physical climate change risks. FY2021 insights While our overall exposure to risks associated with operational events remained relatively stable in FY2021, our risk profile has adapted to changes in our operating context. For example, a greater focus on exploration has increased our use of helicopters to conduct geophysical surveys and transport personnel. We have also had to adapt the way we transport people to and from work due to the COVID-19 pandemic (for example, more buses have been scheduled due to social distancing requirements). Safety section 1.13.4 Tailings storage facilities section 1.13.15 Samarco section 1.15 bhp.com/sustainability Accessing key markets Risks associated with market concentration and our ability to sell and deliver products into existing and future key markets, impacting our economic efficiency. Why is this important to BHP? We rely on the sale and delivery of the commodities we produce to customers around the world. Changes to laws, international trade arrangements, contractual terms or other requirements and/or geopolitical developments could result in physical, logistical or other disruptions to our operations in, or the sale or delivery of our commodities to, key markets. These disruptions could affect sales volumes or prices obtained for our products, adversely impacting our financial performance, results of operations and growth prospects. Examples of potential threats - Government actions, including economic sanctions, tariffs or other trade restrictions, imposed by or on countries where we operate or into which we sell or deliver our products may prevent BHP from trading or make it more difficult for BHP to trade in key markets. For example, China has imposed import restrictions and tariffs on some Australian exports, including energy and metallurgical coal. The imposition of further tariffs or other restrictions on any of our other products could adversely affect our financial performance. - Physical disruptions to the delivery of our products to customers in key markets including due to the disruption of shipping routes, closure or blockage of ports or land logistics (road or rail) or military conflict. In some cases, physical disruptions may be driven or intensified by weather, climate variability or climate change. - Legal or regulatory changes (such as royalties or taxes, port or import restrictions or customs requirements, shipping/ maritime regulatory changes, restrictions on movements or imposition of quarantines, or changing environmental restrictions or regulations, including measures with respect to carbon-intensive imports) and commercial changes (such as changes to the standards and requirements of customers) may adversely impact our ability to sell or deliver, or realise full market value for, our products. - Failure to maintain strong relationships with customers, or changes to customer demands for our products (such as vertical integration), may reduce our market share or adversely impact our financial performance. - Increasing geopolitical tensions may adversely affect our strategic and business planning decisions and/or increase the time it takes us to manage our access to key markets, particularly if we fail to detect or anticipate deviations in the geopolitical environment in a timely manner. Examples of potential opportunities - Monitoring macroeconomic, geopolitical and policy developments and trends may reveal new markets or identify opportunities to strengthen secondary markets for existing products. - Leveraging the opportunity to create value by developing strategic partnerships and strong, mutually beneficial relationships with our customers. - Building a deep understanding of the geopolitical risks faced by BHP and their potential impacts on our business could enhance our strategy, business planning and response, providing a potential competitive advantage. - Identifying the potential for weather, climate variability or climate change to disrupt delivery of products and implementing management measures may increase the resilience of our operations and supply chain. - Signal monitoring and building relationships with and understanding the perspectives of influential stakeholders may improve our ability to understand, respond to and manage any impacts from policy changes (such as trade policies). Key management actions - Monitoring and assessing our ability to access key markets, and maintaining sales plans, product placement and business resilience strategies and relationships with relevant stakeholders (such as the Chinese, United States and Australian Governments, and our customers in China and elsewhere). - Maintaining response plans for various scenarios (including physical disruptions of logistics) to mitigate disruptions to our ability to access key markets. - Monitoring geopolitical and macroeconomic developments and trends, including through signal monitoring and our enterprise-level watch list of emerging themes, to provide an early indication of events that could impact our ability to access key markets. - Identifying weather and/or climate-related vulnerabilities and implementing controls to mitigate disruptions to our ability to physically access key markets. - Diversification of our asset and commodity portfolio, such as our ongoing investment in potash through the Jansen Potash Project, to reduce exposure to market concentration risks. FY2021 insights Exposure to risks associated with our access to key markets increased in FY2021 as a result of tensions between Australia, the United States and China, and import restrictions and tariffs imposed by China on some Australian exports (including energy and metallurgical coal). Although our influence over these aspects of our external environment is limited, adjustments to our portfolio may reduce exposure to market concentration risk in the longer term. Shareholder information - Markets section 4.10.2 Optimising portfolio returns and managing commodity price movements Risks associated with our ability to position our asset portfolio to generate returns and value for shareholders (including securing growth options in future facing commodities) and to manage adverse impacts of short- and long-term movements in commodity prices. Why is this important to BHP? We take decisions and actions in pursuit of our strategy to optimise our asset portfolio and to secure and create growth options in future facing commodities (such as copper, nickel and potash). A strategy that does not support BHP's objectives and/or ill-timed execution of our strategy (including as a result of not having sector-leading capabilities) or other circumstances, may lead to a loss of value that impacts our ability to deliver returns to shareholders and fund our investment and expansion opportunities. It may also result in our asset portfolio being less resilient to fluctuations in commodity prices, which are determined by or linked to prices in world markets. In the short term, this may reduce our cash flow, ability to access capital and our dividends. A failure to optimise our asset portfolio for structural movements in commodity prices over the long term may result in asset impairments and could adversely affect the results of our operations, our financial performance, and returns to investors. Examples of potential threats - Failure to optimise our portfolio through effective and efficient acquisitions, exploration, large project delivery, mergers, divestments or expansion of existing assets. - Failure to identify potential changes in commodity attractiveness and missed entry or commodity exit opportunities, resulting in decreased return on capital spend for, or overpayment to acquire or invest in, new assets or projects, stranded assets or reduced divestment proceeds. BHP Annual Report 2021 57

1.16 Risk factors continued - Failure to achieve expected commercial objectives from assets or investments, such as cost savings, sales revenues or operational performance (including as a result of inaccurate commodity price assumptions or resources and reserves estimates), may result in returns that are lower than anticipated and loss of value (such as that experienced with US shale). - Renegotiation or nullification of permits, increased royalties, or expropriation or nationalisation of our assets, or other legal, regulatory, political, judicial or fiscal or monetary policy instability may adversely impact our ability to achieve expected commercial objectives from assets or investments, access reserves, develop, maintain or operate our assets, or otherwise optimise our portfolio. - Inability to predict long-term trends in the supply, demand and price of commodities and optimise our asset portfolio accordingly may restrict our ability to generate long-term returns from the portfolio. - Commodity prices have historically been and may continue to be subject to significant volatility, including due to global economic and geopolitical factors, industrial activity, commodity supply and demand (including inventory levels), technological change, product substitution, tariffs and exchange rate fluctuations. Our usual policy and practice is to sell our products at prevailing market prices and as such fluctuations in commodity prices may affect our financial performance. For example, a US$1 per tonne decline in the average iron ore price and US$1 per barrel decline in the average oil price would have an estimated impact on FY2021 profit after taxation of US$163 million and US$24 million, respectively. Long-term price volatility or sustained low prices may adversely impact our financial performance as we do not generally have the ability to offset costs through price increases. Examples of potential opportunities - Acquisition of new resources in future facing commodities may strengthen our portfolio and protect and grow value over the long term. - Ability to predict long-term commodity demand, supply and price trends may lead to BHP being able to identify and acquire new future facing commodities and assets ahead of our competitors or exit from declining commodities in a timely manner, strengthening our portfolio and leading to long-term portfolio returns. - BHP may be perceived as a welcome and valued or preferred partner for the development of new resource opportunities, enabling us to secure new assets or exploration opportunities to create long-term optionality in the portfolio. Key management actions - Strategies, processes and frameworks to grow and protect our portfolio and to assist in delivering ongoing returns to shareholders include: - our exploration and business development programs, which focus on replenishing our resource base and enhancing our portfolio (including creating and securing more options in future facing commodities) - our long-term strategic outlook and ongoing strategic processes to assess our competitive advantage and enable the identification of threats to or opportunities for our portfolio through forecasting and scenario modelling - monitoring signals to interpret external events and trends, and designing commodity strategies and price protocols that are reviewed by management and the Board - our Capital Allocation Framework, corporate planning processes, investment approval processes and annual reviews (including resilience testing) of portfolio valuations - our balance sheet and liquidity framework, which is designed to maintain a robust balance sheet with sufficient liquidity and access to diverse sources of funding - Pursuing a considered approach to new country entry, including development of capability to operate in higher-risk jurisdictions, in order to support portfolio opportunities in new jurisdictions. - Further developing BHP's social value proposition to position BHP as a preferred partner for the development of resource opportunities in line with the expectations of local communities, host governments and other global stakeholders. - Managing commodity price exposure through the diversity of commodities, markets, geographies and currencies provided by our portfolio, as well as our financial risk management practices in relation to our commercial activities. FY2021 insights Our exposure to risks associated with optimising our portfolio and managing commodity price movements increased in FY2021 as a result of volatility and uncertainty across global economies, including due to the continuing effects of the COVID-19 pandemic. We announced the sale of Cerrejón in June 2021 as part of our intention to consolidate our portfolio of coal assets to higher-quality metallurgical coal, and remain open to all options for BMC and NSWEC. Heightened societal expectations regarding the use of coal will continue to be a portfolio consideration. On 17 August 2021, we also announced our intention to merge our Petroleum assets with Woodside(1), which is designed to unlock synergies and increase value and choice for BHP's shareholders. Positioning for future section 1.5 Performance by commodity section 1.17 Note 23 'Financial risk management' in section 3 Significant social or environmental impacts Risks associated with significant impacts of our operations on and contributions to communities and environments throughout the life cycle of our assets and across our value chain. Why is this important to BHP? The long-term viability of our business is closely connected to the wellbeing of the communities and environments where we have a presence. At any stage of the asset life cycle, our activities and operations may have or be seen to have significant adverse impacts on communities and environments. In these circumstances, we may fail to meet the evolving expectations of our stakeholders (including investors, governments, employees, suppliers, customers and community members) whose support is needed to realise our strategy and purpose. This could lead to loss of stakeholder support or regulatory approvals, increased taxes and regulation, enforcement action, litigation or class actions, or otherwise impact our licence to operate and adversely affect our reputation, ability to attract and retain talent, operational continuity and financial performance. Examples of potential threats - Engaging in or being associated with activities (including through our non-operated joint ventures and value chain) that have or are perceived to have individual or cumulative adverse impacts on the environment, biodiversity and land management, water access and management, human rights or cultural heritage. - Failing to meet stakeholder expectations in connection with our legal and regulatory obligations, relationships with Indigenous peoples, community wellbeing and the way we invest in communities. - Political, regulatory and judicial developments (such as constitutional reform in Chile that could result in adjustments to water and other resource rights, or the Dasgupta Review in the United Kingdom that could result in government actions that impact the management of biodiversity and ecosystems) or changing stakeholder expectations could result in more stringent operating requirements on our business. For example, changes to regulations or stakeholder expectations may delay the timing or increase costs associated with closure and rehabilitation of assets, or expose BHP to unanticipated environmental or other legacy liabilities. - Failing to identify and manage potential physical climate change risks to communities, biodiversity and ecosystems. For example, changes to species habitat or distribution as a result of sustained higher temperatures could result in land access restrictions or litigation, or limit our access to new opportunities. On 17 August 2021, BHP announced it had entered into a merger commitment deed with Woodside to combine their respective oil and gas portfolios by an all-stock merger. Completion of the merger is subject to confirmatory due diligence, negotiation and execution of full form transaction documents, and satisfaction of conditions precedent including shareholder, regulatory and other approvals, and expected to occur in the second quarter of CY2022. 58 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Examples of potential opportunities - Our support for responsible stewardship of natural resources may enhance the resilience of environments and communities to potential threats (including the potential physical impacts of climate change). - Strong social performance, including sustainable mining and a focus on the wellbeing of communities, could generate competitive advantage in the jurisdictions where we operate. - Our global social value strategy may improve stakeholder relations, build community trust and increase investor confidence and demand for our commodities. - Greater clarity, transparency and standards associated with regulatory regimes that support and protect communities and the environment may increase requirements across our sector, generating competitive advantage for companies that have already invested in social performance. Key management actions - Our Requirements for Community and Our Requirements for Environment and Climate Change standards provide requirements and practices that are designed to strengthen our social, human rights and environmental performance. Our Human Rights Policy Statement, Water Stewardship Position Statement, Climate Change Position Statement and Indigenous Peoples Policy Statement set out our commitments and approach to these matters. - Engaging in regular, open and honest dialogue with stakeholders to better understand their expectations, concerns and interests, and undertaking research to better understand stakeholder perceptions. - Building social value into our decision-making process, along with financial considerations. - Building stakeholder trust and contributing to environmental and community resilience, including through collaborating on shared challenges (such as climate change and water stewardship), enhanced external reporting of our operated assets' potential impacts on biodiversity and maximising the value of social investments through our social investment strategy. - Conducting regular research and impact assessments for operated assets to better understand the social, environmental, human rights and economic context. This supports us to identify and analyse stakeholder, community and human rights impacts, including modern slavery risks and emerging issues. We also complete due diligence screening on suppliers through our Ethical Supply Chain and Transparency program. - Integrating closure into our planning, decision-making and other activities through the life cycle of our operated assets, as set out in our mandatory minimum performance requirements for closure. FY2021 insights Our exposure to risks with potentially significant social or environmental impacts increased in FY2021 due to environmental, political and regulatory developments, and increasing societal expectations, including of regulators and other stakeholders on Indigenous peoples' rights and potential impacts of our operations throughout the asset life cycle. We believe the nexus between water, climate change, biodiversity and society is becoming increasingly clear as a driver of social expectations. People and culture section 1.12 Community section 1.13.8 Indigenous peoples section 1.13.10 Social investment section 1.13.11 Environment section 1.13.12 Water section 1.13.13 Land and biodiversity section 1.13.14 bhp.com/sustainability Low-carbon transition Risks associated with the transition to a low-carbon economy. Why is this important to BHP? Transition risks arise from policy, regulatory, legal, technological, market and other societal responses to the challenges posed by climate change and the transition to a low-carbon economy. As a world-leading resources company, BHP is exposed to a range of transition risks that could affect the execution of our strategy or our operational efficiency, asset values and growth options, resulting in a material adverse impact on our financial performance, share price or reputation, including litigation. The complex and pervasive nature of climate change means transition risks are interconnected with and may amplify our other principal risks. Additionally, the inherent uncertainty of potential societal responses to climate change may create a systemic risk to the global economy. Examples of potential threats - Introduction or improvement of low-carbon technologies or changes in customer preference for products that support the transition to a low-carbon economy may decrease demand for some of our products (which may be abrupt or unanticipated), increase our costs or decrease the availability of key inputs to production. For example: - 'Green steel' technologies may reduce demand for our metallurgical coal or iron ore, or electric vehicle penetration may reduce demand for our petroleum products. - Implementing low-carbon processes or new investments to respond to market demand for products that support a low-carbon economy (such as potential capital spend at our Jansen Potash Project to deliver fertiliser products or at our Nickel West asset to supply the battery market) may increase operating or development costs. - Failure to address investor concerns on the potential impact of climate change on and from BHP's portfolio and operations may result in reduced investor confidence and/or investor actions seeking to influence BHP's climate strategy. - Social concerns around climate change may result in investors divesting our securities, pressure on BHP to divest or close remaining fossil fuel assets and on financial institutions not to provide financing for our fossil fuel assets, or otherwise adversely impact our ability to optimise our portfolio. - Perceived or actual misalignment of the resources industry's or BHP's climate actions (goals, targets and performance) with societal and investor expectations, or a failure to deliver our climate actions, may result in damage to our reputation, climate-related litigation (including class actions) or give rise to other adverse regulatory, legal or market responses. - Changes in laws, regulations, policies, obligations, government actions, and our ability to anticipate and respond to such changes (which may be abrupt or unanticipated), including emission targets, restrictive licencing, carbon taxes, border adjustments or the addition or removal of subsidies, may give rise to adverse regulatory, legal or market responses. Examples of potential opportunities - Our copper, nickel, iron ore and metallurgical coal provide essential building blocks for renewable power generation and electric vehicles, and can play an important part in the transition to a low-carbon economy. - Our potash fertiliser options can promote more efficient and more profitable agriculture and alleviate the increased competition for arable land. - Increased collaboration with customers and original equipment manufacturers, such as BHP's partnerships with each of China Baowu, JFE and HBIS for research and development of steel decarbonisation pathways, can provide opportunities for development of new products and markets. Key management actions - Establishing public views and commitments on, and mandatory minimum performance requirements for managing, climate change threats and opportunities, which are set out in our Climate Change Position Statement, our Climate Change Report 2020, our Climate Transition Action Plan 2021 and the Our Requirements for Environment and Climate Change standard. - Using climate-related scenarios, themes and signposts (such as monitoring policy, regulatory, legal, technological, market and other societal developments) to evaluate the resilience of our portfolio and inform our strategy. - Considering transition risks (including carbon prices) when making capital expenditure decisions or allocating capital through our Capital Allocation Framework, supporting the prioritisation of capital and investment approval processes. BHP Annual Report 2021 59

1.16 Risk factors continued - Seeking to mitigate our exposure to risks arising from policy and regulation in our operating jurisdictions and markets by reducing our operational emissions and taking a product stewardship approach to emissions in our value chain. - Advocating for the introduction of an effective, long-term policy framework that can deliver a measured transition to a low-carbon economy. FY2021 insights Our exposure to transition risks increased in FY2021 due primarily to political developments - with the Biden administration renewing the United States' focus on climate and net zero goals set by China, Japan and the European Union - and greater investor and other stakeholder interest in understanding how climate change might impact our strategy and portfolio. Stakeholder expectations of BHP regarding disclosure of climate change-related information have grown accordingly (for example, Climate Action 100+ requested information from BHP to conduct its first net zero company benchmark in FY2021). Actions by investors and proxy advisers seeking to hold companies accountable for their climate strategies also accelerated during FY2021. We anticipate these and potentially other factors will continue to affect transition risks in FY2022, following publication in August 2021 of the first part of the Intergovernmental Panel on Climate Change's Sixth Assessment Report, Climate Change 2021: The Physical Science Basis. However, our recent proposed portfolio changes would, subject to their completion, reduce our exposure to certain transition risks. Positioning for future section 1.5 Climate change and portfolio resilience section 1.13.7 BHP Climate Change Report 2020 BHP Climate Transition Action Plan 2021 bhp.com/climate Adopting technologies and maintaining digital security Risks associated with adopting and implementing new technologies, and maintaining the effectiveness of our existing digital landscape (including cyber defences) across our value chain. Why is this important to BHP? Our business and operational processes across our value chain are dependent on the effective application of technology, which we use as a lever to deliver on our current and future operational, financial and social objectives. This exposes BHP to risks originating from adopting or implementing new technologies, or failing to take appropriate action to position BHP for the digital future, which may impact the capabilities we require, the effectiveness and efficiency of our operations and our ability to compete effectively. We may also fail to maintain the effectiveness of our existing and future digital landscape, including cyber defences, exposing us to technology availability, reliability and cybersecurity risks. Sensitivity of our portfolio to demand for fossil fuels We acknowledge there is a range of possible energy transition scenarios, including those aligned with the Paris Agreement goals, that may indicate different outcomes for our individual commodities. Our most recent portfolio analysis published in our Climate Change Report 2020 demonstrates the Group can continue to thrive over the next 30 years, as the global community takes action to decarbonise, even under our Paris-aligned 1.5°C trajectory.(1) There are inherent limitations with scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate and none of the scenarios considered constitutes a definitive outcome for the Group. The long-term commodity price outlooks under our 1.5°C Paris-aligned scenario are either largely consistent with or favourable to, the price outlooks in our current planning cases, with the exception of energy coal, oil and natural gas. The long-term commodity price outlooks under our 1.5°C Paris-aligned scenario, excluding energy coal, oil and natural gas, reflect: - copper and nickel benefiting from the dramatic pace of electrification over and above our current planning cases - iron ore growth underpinned by the benefit to steel demand from the construction of renewables, particularly wind power. - potash growth reflecting the potential for greater penetration of biofuels - metallurgical coal supported by the limited alternatives in steelmaking over the scenario timeframe Given these positive long-term price outlooks, a material adverse change is not expected under our 1.5°C Paris-aligned scenario to the carrying values of our assets and liabilities related to these commodities, including property, plant and equipment and closure and rehabilitation provisions. For energy coal, oil and natural gas, long-term commodity price outlooks under our 1.5°C Paris-aligned scenario are unfavourable compared to the price outlooks in our current planning cases. Price outlooks for these commodities published in the International Energy Agency's (IEA) Net Zero by 2050: A Roadmap for the Global Energy Sector Special Report (May 2021) (IEA NZE) are also unfavourable to the price outlooks in our current planning cases. Despite recent progress, all 1.5°C pathways to 2050 represent a major departure from today's global trajectory and we do not believe the technological, regulatory, or economic foundations for a rapid transition to net zero emissions are currently in place. Therefore, a 1.5°C Paris-aligned scenario is currently not an input into our planning cases. This is consistent with the IAE's acknowledgement that the window for its Net Zero by 2050 roadmap is narrow, albeit still achievable. While the price outlooks under the IEA NZE and our 1.5°C Paris-aligned scenario are unfavourable compared to the price outlooks in our current planning cases, recent portfolio announcements and impairments recognised in FY2021 limit the exposure of the carrying value of our assets to long-term commodity prices for energy coal, oil and natural gas, as - On 17 August 2021, we announced the proposed merger of our Petroleum assets with Woodside. The merger is subject to confirmatory due diligence, negotiation and execution of full form transaction documents, and satisfaction of conditions precedent including shareholder, regulatory and other approvals. The preliminary terms of the merger did not provide an indicator of impairment for our Petroleum assets at 30 June 2021. The merger is expected to be completed during the first half of CY2022, following which, the Group's revenue would no longer be directly exposed to long-term oil and gas prices, including those under 1.5°C scenarios. - In June 2021, we entered into a Sale and Purchase Agreement to divest our 33.3 per cent interest in the Cerrejón energy coal joint venture in Colombia, subject to the satisfaction of customary competition and regulatory requirements. The divestment is expected to complete in the second half of FY2022; - Following the write downs taken by the Group in FY2021, the carrying value of our NSWEC assets is no longer material. Further, the profitability and cash flow of NSWEC assets are immaterial to the Group in FY2021. In relation to New South Wales Energy Coal (NSWEC), closure and rehabilitation provisions may be susceptible to the long-term impacts of our 1.5°C Paris-aligned scenario. In isolation, and without considering the impact of changes management would make to operating and investment plans, bringing forward the majority of rehabilitation activities by one year could increase the closure and rehabilitation provision at NSWEC by approximately US$10 million. (1) This Refer scenario to the BHP aligns Climate with the Change Paris Report Agreement 2020 goals available and requires at bhp.com/climate steep global for annual information emissions about reductions, the assumptions, sustained outputs for decades, and limitations to stay within of our a 1.5°C 1.5°C carbon Paris-aligned budget. scenario. 1.5°C is above pre-industrial levels. 60 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information These could lead to operational events, commercial disruption (such as an inability to process or ship our products), corruption or loss of system data, a misappropriation or loss of funds, unintended disclosure of commercial or personal information, enforcement action or litigation. An inability to adequately implement new technology, or any sustained disruption to our existing technology, may also adversely affect our licence to operate, reputation, results of operations and financial performance. As we continue to leverage technology to improve productivity and safety, we expect the importance of safe, secure and reliable technology to our business will continue to grow. Examples of potential threats - Failure to achieve efficiencies through our investment in technologies, or to keep pace with advancements in technology, resulting in an inability to access systems or digital infrastructure required to support our operations or customers' and other stakeholders' evolving expectations. For example, delays, costs and failures to achieve efficiencies arising from difficulties in integrating new technologies with existing technologies, or from failures of new technology to perform as expected. - Failing to identify, access and secure necessary infrastructure and key inputs (including electricity, internet bandwidth, data, software, licences or other rights in intellectual property, hardware and talent) to support new technology innovations and advanced technologies may adversely affect our ability to operate or adopt those technologies. This includes artificial intelligence and machine learning, process automation, robotics, data analytics, cloud computing, smart devices and remote working. For example, adopting new technology to reduce emissions through the use of alternative energy sources may require new infrastructure (such as at our mines and ports), and effective implementation of new digital technologies will be heavily dependent on access to relevant data. - Failure or outage of our existing or future information and operating technology systems. - Cyber events or attacks (including ransomware, state-sponsored and other cyberattacks) on our existing or future information and operating technology systems, including on third-party partners and suppliers (such as our cloud service providers). For example, a cyberattack on our autonomous systems for haulage and drilling may reduce operational productivity and/or adversely impact safety. Examples of potential opportunities - Application of digital solutions across our operations and value chain may unlock greater productivity and safety performance. For example, using predictive analytics to enable operations to identify asset condition and efficiencies may improve safety, production and equipment availability, and reduce maintenance and other costs. - Technology solutions to reduce emissions may support BHP and our suppliers and customers in achieving climate action targets. For example, BHP is collaborating with other miners and suppliers to develop new technology to electrify haul trucks. - Developing and applying artificial intelligence in mine planning, remote operation and advanced robotic technologies may identify or provide access to previously unknown or inaccessible deposits and development of end-to-end autonomous mining systems. - Using digital simulations and predictive trend modelling may enable us to optimise the deployment of new technologies, such as automation and electrification, support early identification of process variances and faults, and support the marketing of our products to customers. Key management actions - Our assets, functions and projects are responsible for managing localised or project-specific exposure to technology risks. Enterprise-level risks that are specific to technology, such as those that pose a greater threat to our wider business and strategic opportunities, are generally managed by our global Technology team and other relevant stakeholders to support delivery of our technology strategy. - We collaborate with industry and research partners to develop technological solutions. - Our Technology Risk Committee oversees the management and improvement of technology risks and controls, and supports the embedment of a sustainable risk culture in our Technology team. - We employ a number of measures designed to protect against, detect and respond to cyber events or attacks, including BHP's mandatory minimum performance requirements for technology and cybersecurity, cybersecurity performance requirements for suppliers, cybersecurity strategy and resilience programs, an enterprise security framework and cybersecurity standards, cybersecurity awareness plans and training, security assessments and monitoring, restricted physical access to hardware and crisis management plans. FY2021 insights Risks associated with technology and the pace of technological innovation continue to evolve rapidly. The Group's exposure to technology risks increased in FY2021 due primarily to an increase in the frequency and sophistication of cyberattacks against companies in the resources industry and governments. BHP continues to leverage technology to deliver value while taking actions to manage associated risks and strengthening cyber capabilities. During FY2021, we implemented programs to enable rapid technology development, improve operational performance and to create new analytic capabilities. How we deliver value - Technology section 1.6.2 Ethical misconduct Risks associated with actual or alleged deviation from societal or business expectations of ethical behaviour (including breaches of laws or regulations) and wider or cumulative organisational cultural failings, resulting in significant reputational impacts. Why is this important to BHP? The conduct of BHP or our people or third-party partners could result in an actual or alleged deviation from expectations of ethical behaviour or breaches of laws and regulations. This may include fraud, corruption, anti-competitive behaviour, money laundering, breaching trade or financial sanctions, market manipulation, privacy breaches, ethical misconduct and wider organisational cultural failings. A failure to act ethically or legally may result in negative publicity (including on social media), investigations, public inquiries, regulatory enforcement action (including fines), litigation or other civil or criminal proceedings, or increased regulation. It could also threaten the validity of our tenements or permits, or adversely impact our reputation, results of operations, financial performance or share price. Impacts may be amplified if our senior leaders fail to uphold BHP's values or address actual or alleged misconduct in a way that is consistent with societal and stakeholder expectations, and our workplace culture may also be eroded, adversely affecting our ability to attract and retain talent. Ethical misconduct risks and impacts are heightened by the complex and continuously evolving legal and regulatory frameworks that apply to the jurisdictions where we operate and potentially conflicting obligations under different national laws. Examples of potential threats - Failing to prevent breaches of international standards, laws, regulations or other legal, regulatory, ethical, environmental, governance or compliance obligations, such as external misstatements, inaccurate financial or operational reporting or a breach of our continuous disclosure obligations. - Corruption (particularly in high-risk or less economically developed jurisdictions), market conduct or anti-competitive behaviour, including in relation to our joint venture operations. - Failing to comply with trade or financial sanctions (which are subject to rapid change and may potentially result in conflicting obligations), health, safety and environmental laws and regulations, native title and other land right or tax or royalty obligations. - Failing to protect our people from harm (including to mental and physical health) due to the misconduct of others that takes place in connection with their work, such as discrimination or sexual harassment and assault. BHP Annual Report 2021 61

1.16 Risk factors continued Examples of potential opportunities - Our capability to manage ethical misconduct risks may expand portfolio growth options by providing greater assurance that we can operate legally and ethically in high-risk jurisdictions. - Managing ethical risks in line with societal and stakeholder expectations may distinguish BHP from competitors and enhance our ability to raise capital, attract and retain talent, obtain permits, partner with external organisations or suppliers, or market our products to customers. Key management actions - Setting the 'tone from the top' through Our Charter, which is central to our business and describes our purpose, values and how we measure success. - Implementing internal policies, standards, systems and processes for governance and compliance to support an appropriate culture at BHP, including: - Our Code of Conduct and BHP's mandatory minimum performance requirements for business conduct, market disclosure and other matters - training on Our Code of Conduct and in relation to anti-corruption, market conduct and competition - ring fencing protocols to separate potentially competitive businesses within BHP - governance and compliance processes, including classification of sensitive transactions, as well as accounting, procurement and other internal controls, and tailored monitoring of control effectiveness - oversight and engagement with high-risk areas by our Ethics and Compliance function, Internal Audit and Advisory team and the Disclosure Committee - review and endorsement by our Ethics and Compliance function of the highest-risk transactions, such as gifts and hospitality, engagement of third parties, community donations and sponsorships above defined thresholds - automated counterparty and transaction screening against lists of entities subject to trade sanctions - our EthicsPoint anonymous reporting service, supported by an ethics and investigations framework and central investigations team - Continuing to enforce Our Code of Conduct via appropriate investigations and responses including disciplinary action, in addition to deployment of appropriate safety controls to prevent harm. FY2021 insights Our exposure to ethical misconduct risks increased in FY2021, including due to continued exploration of potential growth options in high-risk or less economically developed jurisdictions and escalating trade sanctions or equivalent measures (in particular, among China and Australia and the United States). Societal expectations have also increased - stakeholder dissatisfaction in response to other companies' executive misconduct and failures to uphold corporate or societal values demonstrate the importance of implementing and maintaining effective preventative controls and responding to inappropriate conduct in a timely manner. Our Charter and Our Code of Conduct Our conduct - EthicsPoint section 2.1.15 Corporate Governance Statement section 2. Safety - Sexual assault and sexual harassment section 1.13.4 Ethics and business conduct section 1.13.6 Inadequate business resilience Risks associated with unanticipated or unforeseeable adverse events and a failure of planning and preparedness to respond to, manage and recover from adverse events (including potential physical impacts of climate change). Why is this important to BHP? In addition to the threats described in our other risk factors, our business could experience unanticipated, unforeseeable or other adverse events (internal or external) that could harm our people, disrupt our operations or value chain, or damage our assets or corporate offices, including our non-operated assets over which BHP has less control. A failure to identify or understand exposure, adequately prepare for these events (including maintaining business continuity plans) or build wider organisational resilience may inhibit our (or our third-party partners') ability to respond and recover in an effective and efficient manner. This could cause material adverse impacts on our business, such as reduced ability to access resources, markets and the operational or other inputs required by our business, reduced production or sales of commodities, or increased regulation, which could adversely impact our financial performance, share price or reputation, and could lead to litigation or class actions. Examples of potential threats - Geopolitical, global economic, regional or local developments or adverse events, such as social unrest, strikes, work stoppages, labour disruptions, social activism, terrorism, bomb threats, economic slowdown, acts of war or other significant disruptions in areas where we operate or have interests (for example, in FY2020, stoppages associated with social unrest in Chile impacted copper production at Escondida). - Natural events, including earthquakes, tsunamis, hurricanes, cyclones, fires, solar flares and pandemics (for example, earthquakes may affect the Andes region in South America where we undertake exploration activities and have operated - Potential physical impacts of climate change, such as acute risks that are event-driven (including increased severity of extreme weather events) and chronic risks resulting from longer-term changes in climate patterns. Hazards and impacts may include changes in precipitation patterns, water shortages, rising sea levels, increased storm intensity, prolonged extreme temperatures and increased drought, fire and tidal flooding. - Failure by suppliers, contractors or joint venture partners to perform existing contracts or obligations (including due to insolvency), such as construction of large projects or supply of key inputs to our business (for example, consumables for our mining equipment). - Failure of our risk management or other processes (including controls) to prepare for or manage any of the risks discussed in this 'Risk factors' section may inhibit our (or our third party partners') ability to manage any resulting adverse events and may disrupt our operations or adversely impact our financial performance or reputation. Examples of potential opportunities - Risk identification and management supports proactive, focused and prioritised deployment of resources to reduce exposure to adverse events. It may be used to inform priorities and strategies across BHP, supporting a proportionate and cost-effective response, which could provide a competitive advantage at a regional or global level. - Building wider organisational resilience may help us to mitigate the impacts of unforeseeable adverse events. For example, processes may be redesigned to enhance resilience to adverse events, such as pandemics. - Adapting to climate change across our operations and value chain could position BHP as a supplier of choice and provide competitive advantage (for example, by fulfilling our commitment to security of supply). Support for climate vulnerable communities and ecosystems may also improve our social value proposition. Key management actions - Implementing Group-wide controls to enhance business resilience, including BHP's mandatory minimum performance requirements for security, crisis and emergency management and business continuity plans. - Monitoring our current state of readiness (preparedness, redundancy and resilience), including through scenario analysis, to respond to and recover from adverse events to support organisational capability in our operations, functions and senior management to effectively and efficiently respond to events should they materialise. 62 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information - Monitoring the external environment, including political and economic factors through signal monitoring, our geopolitical monitoring and public policy frameworks and our enterprise-level watch list of emerging themes, to support early identification of policy changes or adverse events for which we may need to increase preparedness. - Identifying security threats that could directly or indirectly impact our operations and people in countries of interest to BHP. For example, a review of BHP's global security program was undertaken in FY2021 to better understand our security position and identify potential improvements. - Implementing our Climate Change Adaptation Strategy, including requiring operated assets and functions to identify and progressively assess potential physical climate change risks (including to our value chain) and build climate change adaptation into their plans, activities and investments. FY2021 insights Our exposure to risks associated with inadequate business resilience grew in FY2021 due to the increasing frequency and scale of crisis events, such as extreme temperatures and weather events being experienced globally and the continuing global impacts of the COVID-19 pandemic. While the impacts on BHP have been relatively minor to date, sustained or increased geopolitical tensions, the pandemic and nationalist sentiment may exacerbate the drivers of conflict, instability and unrest, including existing inequality within and between nations. This could increase the likelihood of more significant events that can have a greater impact on our business, such as social unrest and conflict (including war and terrorism). bhp.com/climate Robust risk assessment and viability statement The Board has carried out a robust assessment of BHP's emerging and principal risks, including those that could result in events or circumstances that might threaten BHP's business model, future performance, solvency or liquidity and reputation. The Board has assessed the prospects of BHP over the next three years, taking into account our current position and principal risks. The Board believes a three-year viability assessment period is appropriate for the following reasons. BHP has a two-year budget, a five-year plan and a longer-term life of asset outlook. As highlighted in the 'Risk factors' section, there is considerable uncertainty in the external environment (which has been amplified by the COVID-19 pandemic), including due to political and policy uncertainty, evolving stakeholder expectations (for example, in relation to the environment, climate change and human rights), civil unrest or reform in some countries in which we operate, continued market volatility and geopolitical tensions that could affect our ability to access key markets. This could lead to changes to our regulatory environment and stakeholder expectations of our business, increase the risk of commodity price volatility and also affect the longer-term supply, demand and price of our commodities. These factors result in variability in plans and budgets. A three-year period strikes an appropriate balance between long and short-term influences on performance. The viability assessment took into account, among other things: - BHP's commodity price protocols - the latest funding and liquidity update - the long-dated maturity profile of BHP's debt and the maximum debt maturing in any one year - the flexibility in BHP's capital and exploration expenditure programs under the Capital Allocation Framework - the reserve life of BHP's minerals assets and the reserves-to-production life of BHP's oil and gas assets - the Group-level material risk profile (including climate-related risks) and the mitigating actions available should particular risks materialise - any actual and further anticipated impacts of the COVID-19 pandemic on BHP's two-year budget and five-year plan The Board's assessment also took into account reverse stress testing of the Group's balance sheet to determine the additional levels of debt it could support on forecast commodity prices, as well as the cyclical low price case used in monthly balance sheet stress testing. Results were compared against assessed financial impacts for all material risks recorded on the Group's risk profile, enabling the Board to consider the resilience of the balance sheet in the context of identified threats. In addition, the balance sheet was stress tested against three hypothetical scenarios. Each scenario modelled two or three hypothetical events, based on our principal risks, occurring simultaneously towards the start of FY2022. Scenarios were designed without regard to the effectiveness of preventative controls and reflect market, operational, and a combination of market and operational risks. The simultaneous occurrence of all four events was not considered plausible. Further details are set out in the table below. A number of our other principal risks may have impacts that are embedded in these scenarios. For example, a cyber event or attack may lead to an operational event, while responses of governments and other stakeholders to a pandemic may result in an economic slowdown and low commodity price environment. For further information on our principal risks, see the 'Risk factors' section. While scenario modelling was undertaken for the duration of BHP's five-year plan, confidence is higher in the first three years. Stress testing demonstrated the Group's balance sheet was put under the greatest stress by Scenario C, which reflects both market and operational risks, with net debt expected to increase to approximately US$48 billion over FY2022 to FY2024 (assuming dividends would be suspended in accordance with our Capital Allocation Framework). In such circumstances, the Board considered that the Group would have a number of further mitigating actions available to it which would be expected to allow the Group to limit net debt to approximately US$30 billion over that period, including deferral of discretionary capital expenditure and divestment of certain assets. BHP would also have access to US$5.5 billion of credit through its revolving credit facility. These mitigating actions would be expected to be sufficient to support minimum investment-grade credit ratings over FY2022 to FY2024. For the purposes of stress testing, the Board made certain key assumptions regarding management of the portfolio, the alignment of production, capital expenditure and operating expenditure with five-year plan forecasts and the alignment of prices with the cyclical low price case used in monthly balance sheet stress testing. In making this viability statement, the Board was also mindful of other relevant factors, including key risk indicator performance, monthly balance sheet stress testing against the cyclical low price case, the assessment of the Group's portfolio against scenarios as part of BHP's strategy and corporate planning processes, a Board-level risk identification session to help identify key uncertainties facing the Group, and the proposed changes to the Group's portfolio which are currently expected to complete in FY2022.(1) Taking account of these matters (including the assumptions) and our current position and principal risks, the Board has a reasonable expectation that BHP will be able to continue in operation and meet its liabilities as they fall due over the next three years. Scenario Principal risk Hypothetical event A B C Operational events Offshore well blow out involving a drilling rig that we operate in the US Gulf of Mexico Catastrophic failure of a tailings storage facility at an operated asset in Australia Accessing key markets Temporary physical or logistical disruption of access to key markets preventing the sale or delivery of commodities to Asia Optimising portfolio Low commodity price environment for returns and managing two years, commencing at the start of the commodity price second half of FY2022, followed by a gradual movements recovery by the end of the first half of FY2026 (1) Refer coal divestment to section 1.5 process. Positioning for the future, Petroleum business merger proposal and Update on our non-core BHP Annual Report 2021 63

1.17 Performance by commodity Management believes the following information presented by commodity provides a meaningful indication of the underlying financial and operating performance of the assets, including equity accounted investments, of each reportable segment. Information relating to assets that are accounted for as equity accounted investments is shown to reflect BHP's share, unless otherwise noted, to provide insight into the drivers of these assets. For the purposes of this financial information, segments are reported on a statutory basis in accordance with IFRS 8 'Operating Segments'. The tables for each commodity include an 'adjustment for equity accounted investments' to reconcile the equity accounted results to the statutory segment results. For a reconciliation of alternative performance measures to their respective IFRS measure and an explanation as to the use of Underlying EBITDA in assessing our performance, refer to section 4.2. For the definition and method of calculation of alternative performance measures, refer to section 4.2.1. For more information as to the statutory determination of our reportable segments, refer to note 1 'Segment reporting' in section 3. Unit costs(1) is one of the financial measures used to monitor the performance of our individual assets and is included in the analysis of each reportable segment. 1.17.1 Petroleum Detailed below is financial and operating information for Petroleum comparing FY2021 to FY2020 For more detailed financial information on our Petroleum assets refer to section 4.4.1 US Year $M ended 30 June 2021 2020 Revenue 3,946 4,070 Underlying EBITDA 2,300 2,207 Net operating assets 7,964 8,247 Capital expenditure 994 909 Total petroleum production (Mmboe) 103 109 Average realised prices Oil (crude and condensate) (US$/bbl) 52.56 49.53 Natural gas (US$/Mscf) 4.34 4.04 LNG (US$/Mscf) 5.63 7.26 Key drivers of Petroleum's financial results Price overview Trends in each of the major markets are outlined as follows: Crude oil Our average realised sales price for crude oil for FY2021 was US$52.56 per barrel (FY2020: US$49.53 per barrel). Brent crude oil prices steadily increased through FY2021, rising from around US$40/bbl at the beginning of FY2021 to around US$75/bbl at the close. A recovery in business activity and mobility as economies reduced COVID-19 controls has supported oil demand. (1) For more information on Alternative Performance Supply side curtailments from OPEC+ and capital restraint from US operators have supported oil inventories to rebalance globally. Demand is expected to continue its recovery to pre-COVID-19 levels in FY2022. The rate at which currently curtailed supply is expected to come back on-stream is uncertain. Longer term, we believe oil will remain attractive, even under a plausible low price, for a considerable time to come. Liquefied natural gas Our average realised sales price for LNG for FY2021 was US$5.63 per Mcf (FY2020: US$7.26 per Mcf). The Japan-Korea Marker (JKM) price for LNG performed strongly in FY2021, hitting an all-time high in January 2021 supported by cold weather, recovery in China, high European gas prices, unplanned outages and less incremental supply coming online. Longer term, we expect the commodity to offer a combination of systematic base decline and an attractive demand trajectory, with new supply likely to be required to balance the market in the middle of this decade, or slightly later. However, gas resource is currently abundant and liquefaction infrastructure comes with large upfront costs and extended pay backs. Within global gas, LNG is expected to gain share. Against this backdrop, LNG assets advantaged by their proximity to existing infrastructure or customers, or both, in addition to being at the lower end of the emissions intensity curve, are expected to remain attractive. Production Total Petroleum production for FY2021 decreased by 6 per cent to 103 MMboe. Crude oil, condensate and natural gas liquids production decreased by 6 per cent to 46 MMboe due to natural field decline across the portfolio, a highly active hurricane season in the Gulf of Mexico in the first half of the year and downtime at Atlantis, with tie-in activity in the first half of the year and unplanned downtime in the March 2021 quarter. These impacts were partially offset by the earlier than scheduled achievement of first production from the Atlantis Phase 3 project in July 2020 and the additional working interest acquired in Shenzi, completed on 6 November 2020. Natural gas production decreased by 5 per cent to 341 bcf, reflecting planned shutdowns at Angostura related to the Ruby tie-in, lower gas demand at Bass Strait and natural field decline across the portfolio. The decline was partially offset by improved reliability at Bass Strait and higher domestic gas sales at Macedon. For more information on individual asset production in FY2021, FY2020 and FY2019 refer to section 4.5 Other information Financial results Petroleum revenue for FY2021 decreased by US$0.1 billion to US$3.9 billion reflecting lower production offset by higher average realised prices. Underlying EBITDA for Petroleum increased by US$0.1 billion to US$2.3 billion. Price impacts, net of price-linked costs, increased Underlying EBITDA by US$0.3 billion but were partially offset by the impacts of lower production of US$0.2 billion. Controllable cash costs decreased by US$43 million reflecting lower maintenance activity at our Australian assets due to COVID-19 restrictions and lower exploration seismic activity. This was partially offset by higher workover activity at Atlantis, restructuring costs related to improving future competitiveness and increased business development activity in Mexico due to Trion progressing into pre-feasibility. Petroleum unit costs increased by 11 per cent to US$10.83 per barrel of oil equivalent due to lower volumes and unfavourable exchange rate movements, partially offset by a reduction in price-linked costs. The calculation of petroleum unit costs is set out in the table below: Petroleum (US$M) unit costs FY2021 FY2020 Revenue 3,946 4,070 Underlying EBITDA 2,300 2,207 Gross costs 1,646 1,863 Less: exploration expense 296 394 Less: freight 107 110 Less: development and evaluation 196 166 Less: other(1) (68) 131 Net costs 1,115 1,062 Production (MMboe, 103 equity share) 109 Cost per Boe (US$)(2)(3) 10.83 9.74 (1) Other inventory includes movements, non-cash foreign profit exchange, on sales of provision assets, for onerous of embedded lease derivatives contracts and in the the Trinidad impact from and Tobago revaluation gas contract. (2) FY2021 based on an exchange rate of AUD/USD 0.75. (3) FY2021 per barrel excludes of oil equivalent COVID-19 that related are reported costs of US as $0.27 exceptional items. Delivery commitments We have delivery commitments of natural gas and LNG of approximately 1.1 billion Mcf through 2031 and Crude commitments of 9 million barrels through 2024. We have sufficient proved reserves and production capacity to fulfil these delivery commitments. We have obligation commitments of US$41 million for contracted capacity on transportation pipelines and gathering systems through FY2025, on which we are the shipper. The agreements have annual escalation clauses. Drilling The number of wells in the process of drilling and/or completion as of 30 June 2021 was as follows: Exploratory wells Development wells Total Gross Net(1) Gross Net(1) Gross Net(1) Australia - - - United States - 27 9 27 9 Other(2) - 5 3 5 3 Total - 32 12 32 12 (1) Represents our share of the gross well count. (2) Other is comprised of Trinidad and Tobago. 64 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Petroleum BHP's net share of capital development expenditure in FY2021, which is presented on a cash basis within this section, was US$994 million (FY2020: US$909 million). While the majority of the expenditure in FY2021 was incurred by operating partners at our Australian and Gulf of Mexico non-operated assets, we also incurred capital expenditure at our operated Australian, Gulf of Mexico, and Trinidad and Tobago assets. Australia BHP's net share of capital development expenditure in FY2021 was US$197 million. The expenditure was primarily related to: - Scarborough gas field development - North West Shelf: Greater Western Flank 3 and Lambert Deep subsea tie back development, Karratha Gas Plant refurbishment projects and facility integrity projects - Bass Strait: West Barracouta subsea tie back development Gulf of Mexico BHP's net share of capital development expenditure in FY2021 was US$599 million. The expenditure was primarily related to: - Atlantis: execution of approved development on Atlantis Phase 3 Project and Brownfield subsea tie back to existing Atlantis facility in Gulf of Mexico - Mad Dog: execution phase of Phase 2 development - Shenzi: Drilling of Shenzi North and ongoing infill drilling Trinidad and Tobago BHP's net share of capital development expenditure in FY2021 was US$152 million. The expenditure was primarily related to: - Ruby: execution of approved development of Block 3a resources in the Ruby and Delaware reservoirs Outlook Production is expected to be between 99 and 106 MMboe in FY2022, reflecting a full year of the additional 28 per cent working interest acquired in Shenzi, increased production at Shenzi from infill wells and increased volumes from Ruby following first production in May 2021, offset by natural field decline across the portfolio. Unit costs in FY2022 are expected to be between US$11 and US$12 per barrel (based on an exchange rate of AUD/USD 0.78) reflecting the expected impact of an increase in exchange rate and expected higher price-linked costs. In the medium term, we expect an increase in unit costs to be maintained at less than US$13 per barrel (based on an exchange rate of AUD/ USD 0.78) primarily as a result of expected natural field decline. Petroleum capital and exploration expenditure of approximately US$2.3 billion is planned in FY2022. On 17 August 2021, the Group announced the proposed merger of our Petroleum assets with Woodside. On completion of the proposed transaction, BHP's oil and gas business would merge with Woodside, and Woodside would issue new shares to be distributed to BHP shareholders, at which time it is expected that Woodside would be owned 52 per cent and 48 per cent by existing Woodside and BHP shareholders, respectively. The merger, which has a proposed effective date of 1 July 2021, is subject to confirmatory due diligence, negotiation and execution of full form transaction documents, and satisfaction of conditions precedent including shareholder, regulatory and other approvals. The Group continues to assess the full financial reporting impacts of the proposed merger. However, the preliminary terms of the merger did not provide an indicator of impairment for our Petroleum assets at 30 June 2021. The merger is expected to be completed during the first half of CY2022, at which time, we would derecognise the carrying value of our Petroleum assets, which at 30 June 2021 included, but was not limited to, property plant and equipment and closure and rehabilitation provisions of approximately US$11.9 billion and US$3.9 billion, respectively. The outlook for our expected production, unit costs and capital and exploration expenditure in FY2022 does not take into account the proposed merger with Woodside. 1.17.2 Copper Detailed below is financial and operating information for our Copper assets comparing FY2021 to FY2020 For more detailed financial information on our Copper assets refer to section 4.4.2 Year US$M ended 30 June 2021 2020 Revenue 15,726 10,666 Underlying EBITDA 8,489 4,347 Net operating assets 26,928 25,357 Capital expenditure 2,180 2,434 Total copper production (kt) 1,636 1,724 Average realised prices Copper (US$/lb) 3.81 2.50 Key drivers of Copper's financial results Price overview Our average realised sales price for FY2021 was US$3.81 per pound (FY2020: US$2.50 per pound). Copper rode a wave of investor optimism for much of FY2021, hitting an all-time high in May. We believe mine supply and scrap collection will both need to rise to meet demand growth in the medium term. Longer term, traditional end-use demand is expected to be solid, while broad exposure to the electrification mega-trend offers attractive upside. Prices are expected to rise compared to historical averages in the long term due to grade decline, resource depletion, increased input costs, water constraints, rising ESG standards, and a scarcity of high-quality future development opportunities after a poor decade for industry-wide exploration. Regulatory risk is an emerging theme across the industry. Production Total Copper production for FY2021 decreased by 5 per cent to 1,636 kt. Escondida copper production decreased by 10 per cent to 1,068 kt as continued strong concentrator throughput of 371 ktpd, at record levels, was more than offset by the impact of expected lower concentrator feed grade and lower cathode production as a result of a reduced operational workforce due to COVID-19 restrictions. Pampa Norte copper production decreased by 10 per cent to 218 kt largely due to a decline in stacking feed grade at Spence of 11 per cent, planned maintenance at Spence and the impact of a reduced operational workforce as a result of COVID-19 restrictions partially offset by the new stream of concentrate production from the Spence Growth Option that came online in December 2020. Olympic Dam copper production increased by 20 per cent to 205 kt, the highest annual production achieved since our acquisition in 2005, reflecting improved smelter stability and strong underground mine performance. Olympic Dam also achieved record gold production of 146 koz. Antamina copper production increased 16 per cent to 144 kt and zinc production increased 64 per cent to a record 145 Kt, reflecting both higher copper and zinc head grades. For more information on individual asset production in FY2021, FY2020 and FY2019 refer to section 4.5 Financial results Copper revenue increased by US$5.1 billion to US$15.7 billion in FY2021 due to higher average realised Copper prices offset by lower production. Underlying EBITDA for Copper increased by US$4.1 billion to US$8.5 billion. Price impacts, net of price-linked costs, increased Underlying EBITDA by US$4.3 billion. Lower volumes decreased Underlying EBITDA by US$258 million. Controllable cash costs increased by US$106 million, due to higher inventory drawdowns at Olympic Dam, from stronger mill and smelter performance compared to the prior period, and at Escondida to offset lower material mined during the period due to a reduced operational workforce. This was partially offset by strong cost performance at Escondida, a US$99 million gain from the optimised outcome from renegotiation of cancelled power contracts at Escondida and Spence, and favourable leach pad inventory movements at Escondida and Spence. Non-cash costs decreased by US$273 million due to lower deferred stripping depletion at Escondida, reflecting the planned development phase of the mines. Inflation and foreign exchange rate negatively impacted Underlying EBITDA by US$514 million which was offset by increased equity accounted investment profits attributable to Antamina of US$411 million. BHP Annual Report 2021 65

1.17 Performance by commodity continued Unit costs at Escondida decreased by 1 per cent to US$1.00 per pound, reflecting continued strong concentrator throughput, at record levels, as well as lower deferred stripping costs and higher by-product credits. This also reflects a one-off gain from the optimisation of a settlement outcome for the cancellation of power contracts as part of a shift towards 100 per cent renewable energy at Escondida. The strong unit cost result was achieved despite the impact of unfavourable exchange rate movements, a 4 per cent decline in copper concentrate feed grade and lower cathode volumes as a result of a reduced operational workforce due to COVID-19 restrictions. The calculation of Escondida unit costs is set out in the table below: Escondida (US$M) unit costs FY2021 FY2020 Revenue 9,470 6,719 Underlying EBITDA 6,483 3,535 Gross costs 2,987 3,184 Less: by-product credits 478 407 Less: freight 162 178 Net costs 2,347 2,599 Sales (kt) 1,066 1,164 Sales (Mlb) 2,350 2,567 Cost per pound (US$)(1)(2)(3) 1.00 1.01 (1) FY2021 based on average exchange rates of USD/CLP 746. (2) FY2021 per pound excludes that are COVID-19-related reported as exceptional costs of items. US$0.03 (3) FY2021 outcome includes from renegotiation a (one off) gain of cancelled from the optimised power contracts of US$0.04 per pound. Outlook We expect the operating environment across our Chilean assets to remain challenging, with reductions in our on-site workforce expected to continue in FY2022. Total Copper production of between 1,590 and 1,760 kt is expected in FY2022. Escondida production of between 1,000 and 1,080 kt is expected in FY2022, reflecting a continuing need to catch up on mine development due to reduced material movement in FY2021, as well as uncertainty around COVID-19 impacts. Decline in the copper grade of concentrator feed in FY2022 is expected to be approximately 2 per cent. Production at Pampa Norte is expected to increase by more than 50 per cent to be between 330 and 370 kt in FY2022, reflecting the continued ramp-up of the Spence Growth Option (SGO), partially offset by an expected decline in stacking feed grade at Pampa Norte of approximately 9 per cent. The ramp-up to full production capacity at SGO is still expected to take approximately 12 months from first production in December 2020, following which Spence is currently planned to average 300 ktpa of production (including cathodes) over the first four years of operation. At Olympic Dam, production is expected to be between 140 and 170 kt in FY2022 as a result of the planned major smelter maintenance campaign and subsequent ramp-up planned between August 2021 and February 2022. Antamina Copper production is expected between 120 and 140 kt in FY2022. Escondida unit costs in FY2022 are expected to be between US$1.20 and US$1.40 per pound (based on an average exchange rate of USD/ CLP 727) reflecting expected lower by-product credits, expected higher costs associated with an approximately 20 per cent increase in material mined required to catch up on mine development due to reduced material movement in FY2021 and study costs to increase optionality at Escondida longer term. This also reflects the inclusion of COVID-19 costs (treated as an exceptional item in FY2021) and a further decline in concentrator feed grade of approximately 2 per cent. In the medium term, unit cost guidance remains unchanged at less than US$1.10 per pound (based on an exchange rate of USD/CLP 727). 1.17.3 Iron Ore Detailed below is financial and operating information for our Iron Ore assets comparing FY2021 to FY2020. For more detailed financial information on our Iron Ore assets refer to section 4.4.3 Year US$M ended 30 June 2021 2020 Revenue 34,475 20,797 Underlying EBITDA 26,278 14,554 Net operating assets 18,663 18,400 Capital expenditure 2,188 2,328 Total iron ore production (Mt) 254 248 Average realised prices Iron ore (US$/wmt, FOB) 130.56 77.36 Key drivers of Iron Ore's financial results Price overview Iron Ore's average realised sales price for FY2021 was US$130.56 per wet metric tonne (wmt) (FY2020: US$77.36 per wmt). Iron ore prices were elevated throughout FY2021, hitting record highs in the second half. Forces contributing to price gains included strong Chinese pig iron production, a rapid recovery in global markets excluding China and a shortage of branded fines products as some iron ore mining companies have been producing towards their lower end of guidance. Medium term, we believe China's demand for iron ore is expected to be lower than it is today as crude steel production plateaus and the scrap-to-steel ratio rises. In the long term, we believe prices are expected to be determined by high cost production, on a value-in-use adjusted basis, from Australia or Brazil. Quality differentiation is expected to remain a factor in determining iron ore prices as steelmakers prefer high-quality raw materials for higher productivity and lower-emissions intensity. Production Total Iron Ore production increased by 2 per cent to 254 Mt. WAIO production increased by 1 per cent to a record 252 Mt (284 Mt on a 100% basis) reflecting record production at Jimblebar and Mining Area C, which included first ore from South Flank in May 2021. This was combined with strong operational performance across the supply chain reflecting continued improvements in car dumper performance and reliability, and improved train cycle times. impacts, temporary rail labour shortages due to COVID-19 related border restrictions and the planned Mining Area C and South Flank major tie-in activity to integrate South Flank with the Mining Area C processing hub. Samarco production was 1.9 Mt following the recommencement of iron ore pellet production at one concentrator in December 2020. For more information on individual asset production in FY2021, FY2020 and FY2019 refer to section 4.5 Financial results Total Iron Ore revenue increased by US$13.7 billion to US$34.5 billion in FY2021 reflecting higher average realised prices and production. Underlying EBITDA for Iron Ore increased by US$11.7 billion to US$26.3 billion including favourable price impacts, net of price-linked costs, of US$12.1 billion. Higher volumes increased Underlying EBITDA by US$148 million. This was partially offset by unfavourable foreign exchange impacts of US$416 million. Other items such as inflation and one-off items negatively impacted Underlying EBITDA by US$63 million. WAIO unit costs increased by 17 per cent to US$14.82 per tonne due to the impact of a 12 per cent stronger Australian dollar, higher third-party royalties related to higher iron ore prices, incremental costs relating to the ramp-up of South Flank and higher labour costs relating to increased planned maintenance partially offset by record production and continued production improvements across the supply chain. The calculation of WAIO unit costs is set out in the table below: (US WAIO $M) unit costs FY2021 FY2020 Revenue 34,337 20,663 Underlying EBITDA 26,270 14,508 Gross costs 8,067 6,155 Less: freight 1,755 1,459 Less: royalties 2,577 1,531 Net costs 3,735 3,165 Sales (kt, equity share) 252,052 250,598 Cost per tonne (US$)(1)(2) 14.82 12.63 (1) FY2021 AUD/USD based 0.75. on an average exchange rate of (2) tonne FY2021 (including excludes US COVID-19 $0.25 per related tonne costs relating of US to $ operations 0.51 per and exceptional US$0.26 items. per tonne An additional of demurrage) US$0.12 that per are tonne reported relating as to capital projects is also reported as an exceptional item. Outlook WAIO production of between 246 and 255 Mt, or between 278 and 288 Mt on a 100 per cent basis, is expected in FY2022 as WAIO looks to focus on incremental volume growth through productivity improvements. We continue with our program to further improve port reliability and this includes a major maintenance campaign on car dumper one planned for the September 2021 quarter. The Yandi resource has commenced its end-of-life ramp-down as South Flank ramps up, and this is expected to continue to provide supply chain flexibility with a lower level of production to continue for a few years. Samarco production of between 3 and 4 Mt (BHP share) is expected in FY2022. 66 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information WAIO unit costs in FY2022 are expected to be between US$17.50 and US$18.50 per tonne reflecting updated guidance exchange rates (based on an exchange rate of AUD/USD 0.78), expected costs associated with the ramp up of South Flank and ramp-down of Yandi, and elevated third-party royalties. This also reflects the inclusion of COVID-19 costs (treated as an exceptional item in FY2021). In the medium term, unit costs have been revised to less than US$16 per tonne predominately reflecting a number of uncontrollable factors including updated guidance exchange rates (based on an exchange rate of AUD/USD 0.78), expected higher third-party royalties and forecast higher diesel prices. 1.17.4 Coal Detailed below is financial and operating information for our Coal assets comparing FY2021 to FY2020. For more detailed financial information on our Coal assets refer to section 4.4.4 Year US$M ended 30 June 2021 2020 Revenue 5,154 6,242 Underlying EBITDA 288 1,632 Net operating assets 7,512 9,509 Capital expenditure 579 603 Total metallurgical coal production (Mt) 41 41 Total energy coal production (Mt) 19 23 Average realised prices Metallurgical coal (US$/t) 106.64 130.97 Hard coking coal (HCC) (US$/t) 112.72 143.65 Weak coking coal (WCC) (US$/t) 89.62 92.59 Thermal coal (US$/t) 58.42 57.10 Key drivers of Coal's financial results Price overview Metallurgical coal Our average realised sales price for FY2021 was US$112.72 per tonne for hard coking coal (HCC) (FY2020: US$143.65 per tonne) and US$89.62 per tonne for weak coking coal (WCC) (FY2020: US$92.59 per tonne). Metallurgical coal prices faced by Australian producers in the free-onboard (FOB) market were weak for most of FY2021. A spike in uncertainty regarding China's import policy on Australia origin coals distorted the usual trade flows and had a key influence on the market. Demand outside China has been promising supported by strong recovery in the steel sector. Prices rebounded sharply towards the end of FY2021, on multi-regional supply disruptions and trade flow rebalancing. Going forward, while trade flow from Australia into China is inhibited, the metallurgical coal industry could face an uncertain and challenging period ahead. Over time, premium quality coking coals are expected to be particularly advantaged given the drive by steelmakers to improve blast furnace productivity, partly to reduce emissions intensity. We believe a wholesale shift away from blast furnace steelmaking, which requires metallurgical coal, is still decades in the future given the high cost of conversion and operation associated with alternative steelmaking technologies. Energy coal Our average realised sales price for FY2021 was US$58.42 per tonne (FY2020: US$57.10 per tonne). The Newcastle 6,000 kcal/kg price reached its high for the financial year in June 2021 amid strong demand and disrupted supply. Newcastle 5,500 kcal/kg coal found demand in India and North Asia given import restrictions into China. Longer term, our base case is that total primary energy derived from coal (power and non-power) is expected to modestly grow at a compound rate slower than that of global population growth. Under deep decarbonisation scenarios, demand is expected to decline in absolute terms. Production Metallurgical coal production decreased by 1 per cent to 41 Mt (73 Mt on a 100 per cent basis). At Queensland Coal strong operational performance, including record production at Goonyella facilitated by record tonnes from Broadmeadow mine, was offset by significant weather impacts across most operations earlier in the year, as well as planned wash plant maintenance at Saraji and Caval Ridge in the first half of the year. At South Walker Creek, despite record stripping, production decreased as a result of higher strip ratios due to ongoing impacts from geotechnical constraints and lower yields. Energy coal production decreased by 17 per cent to 19 Mt. NSWEC production decreased by 11 per cent to 14 Mt despite increased stripping. This decrease reflects significant weather impacts and higher strip ratios, as well as lower volumes due to an increased proportion of washed coal in response to widening price quality differentials consistent with our strategy to focus on higher quality products, and reduced port capacity following damage to a shiploader at the Newcastle port in November 2020. Cerrejón production decreased by 30 per cent to 5 Mt mainly as a result of a 91-day strike in the first half of the year and subsequent delays to the restart of production, as well as the impact of a reduced operational workforce due to COVID-19 restrictions. For more information on individual asset production in FY2021, FY2020 and FY2019 refer to section 4.5 Financial results Coal revenue decreased by US$1.1 billion to US$5.2 billion in FY2021 due to lower average realised prices and production. Underlying EBITDA for Coal decreased by US$1.3 billion to US$288 million including lower price impacts, net of price-linked costs, of US$0.7 billion. Lower volumes decreased Underlying EBITDA by US$168 million. Controllable cash costs increased by US$102 million driven by increased maintenance costs at Queensland Coal (earth moving equipment maintenance and shiploader maintenance at Hay Point port) as well as increased stripping volumes, which was partially offset by cost reduction initiatives at both Queensland Coal and NSWEC. Other items including lower fuel and energy prices favourably impacted Underlying EBITDA by US$93 million, but were more than offset by US$512 million of foreign exchange losses. Queensland Coal unit costs increased by 21 per cent to US$82 per tonne, due to the impact of a 12 per cent stronger Australian dollar, higher planned maintenance in the first half of the year, shiploader maintenance at Hay Point, and lower yields and increased stripping volumes at Poitrel and South Walker Creek. This was partially offset by lower fuel and energy costs, driven by lower diesel prices, and cost reduction initiatives. NSWEC unit costs increased by 14 per cent to US$64 per tonne, due to the impact of a stronger Australian dollar and lower volumes as a result of significant weather impacts, higher strip ratios, an increased proportion of washed coal in response to widening price quality differentials and reduced port capacity following damage to a shiploader at the Newcastle port in November 2020. This was partially offset by lower fuel and energy costs, driven by lower diesel prices, as well as cost reduction initiatives. The calculation of Queensland Coal's and NSWEC's unit costs is set out in the table below: Outlook Metallurgical coal production is expected to be between 39 and 44 Mt, or 70 and 78 Mt on a 100 per cent basis, in FY2022, as we expect restrictions on coal imports into China to remain for a number of years. Production is expected to be weighted to the second half of the year due to planned wash plant maintenance in the first half of the year. Queensland Coal unit costs NSWEC unit costs US$M FY2021 FY2020 FY2021 FY2020 Revenue 4,315 5,357 839 886 Underlying EBITDA 593 1,935 (169) (79) Gross costs 3,722 3,422 1,008 965 Less: freight 69 147 -Less: royalties 330 498 66 68 Net costs 3,323 2,777 942 897 Sales (kt, equity share) 40,619 41,086 14,626 15,868 Cost per tonne (US$)(1)(2) 81.81 67.59 64.41 56.53 (1) FY2021 based on an average exchange rate of AUD/USD 0.75. (2) FY2021 items relating excludes to Queensland COVID-19 related Coal and costs NSWEC of US$ respectively. 0.91 per tonne and US$0.40 per tonne that are reported as exceptional BHP Annual Report 2021 67

1.17 Performance by commodity continued Energy coal production is expected to be between 13 and 15 Mt in FY2022, reflecting the announced divestment of our interest in Cerrejón in June 2021 and that Cerrejón volumes will now be separately reported from 1 July 2021 until transaction completion. Queensland Coal unit costs are expected to be between US$80 and US$90 per tonne (based on an average exchange rate of AUD/ USD 0.78) in FY2022 as a result of expected higher diesel prices, with mine plan optimisation and efficiency uplifts expected to largely offset increased stripping requirements. We remain focused on cost reduction and productivity initiatives, however given the ongoing uncertainty regarding restrictions on coal imports into China we are unable to provide medium-term volume and unit cost guidance. NSWEC unit costs are expected to be between US$62 and US$70 per tonne (based on an average exchange rate of AUD/USD 0.78) in FY2022 reflecting a continued focus on higher quality products, mine plan optimisation, productivity improvements and cost reduction initiatives. 1.17.5 Other assets Detailed below is an analysis of Other assets' financial and operating performance comparing FY2021 to FY2020. For more detailed financial information on our Other assets refer to section 4.4.5 Nickel West Key drivers of Nickel West's financial results Price overview Our average realised sales price for FY2021 was US$16,250 per tonne (FY2020: US$13,860 per tonne). In FY2021, the nickel price benefitted from positive investor sentiment amidst a strong, geographically diverse rebound in end-use demand. An announcement by a major nickel producer during the period that it intends to convert some nickel pig iron to nickel matte in Indonesia, thereby making it suitable for use in the battery supply chain, led to a brief correction in March. Prices subsequently rebounded supported by strong demand, multi-region supply disruptions and falling London Metal Exchange stocks. Longer term, we believe that nickel will be a substantial beneficiary of the global electrification mega-trend and that nickel sulphides will be particularly attractive. This is due to their relatively lower cost of production of battery-suitable class-1 nickel than for laterites, and the favourable position of integrated sulphide operations on the emission intensity curve. Production Nickel West production in FY2021 increased by 11 per cent to 89 kt reflecting strong performance from the new mines and improved operational stability following major quadrennial maintenance shutdowns in the prior year. For more information on individual asset production in FY2021, FY2020 and FY2019 refer to section 4.5 Financial results Higher production combined with higher average realised sales prices resulted in revenue increasing by US$356 million to US$1.5 billion in FY2021. Underlying EBITDA for Nickel West increased by US$296 million to US$259 million in FY2021 reflecting higher prices and volumes, and lower maintenance costs following the major quadrennial shutdowns in the prior year, as well as lower contractor costs following the transition and ramp-up of new mines. This was partially offset by unfavourable exchange rate movements and the adverse impacts of the stronger nickel price on third-party concentrate purchase costs. Potash Potash recorded an Underlying EBITDA loss of US$167 million in FY2021, and a loss of US$127 million in FY2020. 1.17.6 Impact of changes to commodity prices The prices we obtain for our products are a key driver of value for BHP. Fluctuations in these commodity prices affect our results, including cash flows and asset values. The estimated impact of changes in commodity prices in FY2021 on our key financial measures is set out below. profit Impact after on taxation from Impact on Continuing operations Underlying EBITDA (US$M) (US$M) US$1/bbl on oil price 24 35 US¢1/lb on copper price 23 33 US$1/t on iron ore price 163 233 US$1/t on metallurgical coal price 24 35 US$1/t on energy coal price 9 13 US¢1/lb on nickel price 1 1 1.18 Other information 1.18.1 Company details and terms of reference BHP Group Limited is registered in Australia. Registered office: 171 Collins Street, Melbourne, Victoria 3000, Australia. BHP Group Plc. Registration number 3196209. Registered in England and Wales. Registered office: Nova South, 160 Victoria Street London SW1E 5LB United Kingdom. Each of BHP Group Limited and BHP Group Plc is a member of the Group. BHP is a Dual Listed Company structure comprising BHP Group Limited and BHP Group Plc. The two entities continue to exist as separate companies but operate as a combined group known as BHP. The headquarters of BHP Group Limited and the global headquarters of the combined Group are located in Melbourne, Australia. The headquarters of BHP Group Plc are located in London, United Kingdom. Both companies have identical Boards of Directors and are run by a unified management team. Throughout this publication, the Boards are referred to collectively as the Board. Shareholders in each company have equivalent economic and voting rights in the Group as a whole. In this Annual Report, the terms 'BHP', the 'Company', the 'Group', 'our business', 'organisation', 'we', 'us', 'our' and 'ourselves' refer to BHP Group Limited, BHP Group Plc and, except where the context otherwise requires, their respective subsidiaries as defined in note 13 'Related undertakings of the Group' in section 3.2 of this Annual Report. Those terms do not include non-operated assets. This Annual Report covers BHP's assets (including those under exploration, projects in development or execution phases, sites and closed operations) that have been wholly owned and/or operated by BHP and that have been owned as a joint venture(1) operated by BHP (referred to in this Annual Report as 'operated assets' or 'operations') during the period from 1 July 2020 to 30 June 2021. Our functions are also included. BHP also holds interests in assets that are owned as a joint venture but not operated by BHP (referred to in this Annual Report as 'non-operated joint ventures' or 'non-operated assets'). Notwithstanding that this Annual Report may include production, financial and other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise. On 17 August 2021, we announced our proposal to adopt a single company structure under BHP Group Ltd, with a primary listing on the Australian Securities Exchange (ASX). 68 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information The company would also hold a standard listing on the London Stock Exchange (LSE), a secondary listing on the Johannesburg Stock Exchange (JSE) and an ADR program listed on the New York Stock Exchange (NYSE). If implemented, eligible BHP Group Plc shareholders would receive one share in BHP Group Ltd for each BHP Group Plc share they hold. The holdings of BHP Group Ltd shareholders would not change. BHP's dividend policy and ability to distribute fully franked dividends also would not change. Subject to final Board approval, BHP shareholders are expected to vote on unification at shareholder meetings planned for the first half of CY2022. 1.18.2 Forward-looking statements This Annual Report contains forward-looking statements, including: statements regarding trends in commodity prices and currency exchange rates; demand for commodities; reserves and production forecasts; plans, strategies and objectives of management; climate scenarios; approval of certain projects and consummation of certain transactions; closure or divestment of certain assets, operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operating costs and supply of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; and tax and regulatory developments. Forward-looking statements may be identified by the use of terminology including, but not limited to, 'intend', 'aim', 'project', 'see', 'anticipate', 'estimate', 'plan', 'objective', 'believe', 'expect', 'commit', 'may', 'should', 'need', 'must', 'will', 'would', 'continue', 'forecast', 'guidance', 'trend' or similar words. These statements discuss future expectations concerning the results of assets or financial conditions, or provide other forward-looking information. Examples of forward-looking statements contained in this Annual Report include, without limitation, statements describing: (i) our strategy, our values and how we define our success; (ii) the emerging uses of and our expectations regarding future demand for certain commodities, in particular copper, nickel, iron ore, metallurgical coal, steel, oil and gas and potash, and our intentions, commitments or expectations with respect to our supply of certain commodities; (iii) our expectations of a competitive advantage in certain commodities, in particular in copper, nickel and potash; (iv) the perceived synergies and other benefits of the proposed transaction between BHP and Woodside; (v) our future exploration and partnerships plans and the structure of our portfolio; (vi) our outlook for long-term economic growth and other macroeconomic and industry trends; (vii) our projected and expected production levels and development projects across our portfolio of assets; (viii) our reserves and resources; (ix) our plans for our major projects and related budget allocations; (x) our expectations and objectives with respect to decarbonisation, climate change resilience and timelines to achieve such objectives, including our Climate Transition Action Plan, Climate Change Adaptation Strategy and goals, targets and strategies to seek to reduce or support the reduction of greenhouse gas emissions, and related perceived opportunities for BHP; (xi) the assumptions, beliefs and conclusions in our climate change-related statements and strategies, including in our Climate Change Report 2020, for example, in respect of future temperatures, energy consumption and greenhouse gas emissions, and climate-related impacts; (xii) our commitment to generating social value; (xiii) our commitments under sustainability frameworks, standards and initiatives; (xiv) our intention to improve tailings storage management; (xv) our intention to achieve certain inclusion and diversity targets; and (xvi) our intention to achieve certain targets and outcomes with respect to Indigenous peoples. Forward-looking statements are based on management's current expectations and reflect judgments, assumptions, estimates and other information available as at the date of this Annual Report and/or the date of BHP's planning or scenario analysis processes. These statements do not represent guarantees or predictions of future financial or operational performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual results to differ materially from those expressed in the statements contained in this Annual Report. BHP cautions against reliance on any forward-looking statements or guidance, including in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with COVID-19. For example, our future revenues from our assets, projects or mines described in this Annual Report will be based, in part, on the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing assets. Other factors that may affect the actual construction or production commencement dates, revenues, costs or production output and anticipated lives of assets, mines or facilities include: (i) our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; (ii) the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals we produce; (iii) activities of government authorities in the countries where we sell our products and in the countries where we are exploring or developing projects, facilities or mines, including increases in taxes; (iv) changes in environmental and other regulations; (v) the duration and severity of the COVID-19 pandemic and its impact on our business; (vi) political or geopolitical uncertainty; (vii) labour unrest; and (viii) other factors identified in the risk factors set out in section 1.16. Except as required by applicable regulations or by law, BHP does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. Emissions and energy consumption data Due to the inherent uncertainty and limitations in measuring greenhouse gas (GHG) emissions and operational energy consumption under the calculation methodologies used in the preparation of such data, all GHG emissions and operational energy consumption data or references to GHG emissions and operational energy consumption volumes (including ratios or percentages) in this Annual Report are estimates. There may also be differences in the manner that third parties calculate or report GHG emissions or operational energy consumption data compared to BHP, which means that third party data may not be comparable to our data. For information on how we calculate our GHG emissions and operational energy consumption data, see our Methodology tab in our ESG Standards and Databook. The Strategic Report is made in accordance with a resolution of the Board. Ken MacKenzie Chair 2 September 2021 (1) References owned by BHP. in this Such Annual references Report are to a not 'joint intended venture' to are characterise used for convenience the legal relationship to collectively between describe the owners assets of that the are asset. not wholly BHP Annual Report 2021 69

Section 2 Governance In this section: 2.1 Corporate Governance Statement 71 2.1.1 Chair's letter 71 2.1.2 Board of Directors and Executive Leadership Team 72 Board of Directors 72 Executive Leadership Team 74 2.1.3 BHP governance structure 75 2.1.4 Board and Committee meetings and attendance 76 2.1.5 Key Board activities during FY2021 77 2.1.6 Stakeholder engagement 79 Shareholder engagement 79 Workforce engagement 81 2.1.7 Director skills, experience and attributes 82 2.1.8 Board evaluation 83 2.1.9 Nomination and Governance Committee Report 84 2.1.10 Risk and Audit Committee Report 87 2.1.11 Sustainability Committee Report 93 2.1.12 Remuneration Committee Report 94 2.1.13 Risk management governance structure 94 2.1.14 Management 94 2.1.15 Our conduct 95 2.1.16 Market disclosure 96 2.1.17 Conformance with corporate governance standards 96 2.1.18 Additional UK disclosure 97 2.2 Remuneration Report 98 2.2.1 Annual statement by the Remuneration Committee Chair 99 2.2.2 Remuneration policy report 103 Remuneration policy for the Executive Director 103 Remuneration policy for Non-executive Directors 107 2.2.3 Annual report on remuneration 108 Remuneration for the Executive Directors (the CEOs) 108 Remuneration for other Executive KMP (excluding the CEOs) 115 Remuneration for Non-executive Directors 117 Remuneration governance 118 Other statutory disclosures 119 2.3 Directors' Report 124 2.3.1 Review of operations, principal activities and state of affairs 124 2.3.2 Share capital and buy-back programs 124 2.3.3 Results, financial instruments and going concern 125 2.3.4 Directors 125 2.3.5 Remuneration and share interests 125 2.3.6 Secretaries 126 2.3.7 Indemnities and insurance 126 2.3.8 Employee policies 126 2.3.9 Corporate governance 127 2.3.10 Dividends 127 2.3.11 Auditors 127 2.3.12 Non-audit services 127 2.3.13 Political donations 127 2.3.14 Exploration, research and development 127 2.3.15 ASIC Instrument 2016/191 127 2.3.16 Proceedings on behalf of BHP Group Limited 127 2.3.17 Performance in relation to environmental regulation 128 2.3.18 Share capital, restrictions on transfer of shares and other additional information 128 70 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.1 Corporate Governance Statement 2.1.1 Chair's letter Dear Shareholder, This year BHP achieved some outstanding results, underpinned by strong operational performance and disciplined capital allocation. For the second consecutive year, there were no fatalities at our operated assets. We also created more value for shareholders and continued to contribute to the communities and partners who support our work. Strategy and portfolio Our purpose is to bring people and resources together to build a better world. Our objective is to deliver sustainable long-term value and returns. We do this by owning a portfolio of world class assets in attractive commodities, operating them exceptionally well, maintaining a disciplined approach to capital allocation and being leaders in sustainability and creating social value. We are proactively positioning the company for the future with a portfolio and capabilities that will enable us to grow long-term value - the commodities we supply are essential to the world now and in the future. We recently announced an investment of US$5.7 billion in the Jansen Stage 1 potash project in Canada, which opens up a new growth front for BHP. We also announced our intention to merge BHP's Petroleum business with Woodside to create a top 10 independent oil and gas company with the capability to support the world's energy needs through the energy transition. As well as positioning our portfolio for future growth, we have also announced our intention to move from a Dual Listed Company with two parent entities, to a single company structure under BHP Ltd with a primary listing on the Australian Securities Exchange. We believe unification will make BHP more efficient and agile, and better position the company for continued performance and growth. Culture and capability Successful delivery of our strategy relies on workforce capability and a strong culture. We believe that supporting our people's wellbeing, creating and promoting an inclusive and diverse environment for our people to work, and keeping them safe in the workplace is critically important. It is core to our values. In FY2021, this has taken on an even greater emphasis as our workforce and their families and communities have adapted to new ways of working as a result of the pandemic. This year we have created a simpler Engagement and Perception Survey that runs in 100-day culture improvement cycles. The Board regularly reviews the results of these surveys and any actions that are taken as a result. We also continue to invest in our leaders and in new talent, through programs like our BHP Operating System learning academies, Operations Services and the FutureFit Academies which have seen us recruit hundreds of new apprentices and trainees into our operations in Australia. Board composition In FY2021, we continued to renew our Board through our structured Board succession process. The Board regularly assesses its current skills and expected requirements for the future and uses that analysis to establish clear succession plans. In October 2020, Christine O'Reilly and Xiaoqun Clever were appointed to the Board as independent Non-executive Directors. Xiaoqun Clever has more than 20 years' experience in technology with a focus on software engineering, data and analytics, cyber security and digitalisation. She held various roles with SAP SE, Ringier AG and ProSiebenSat.1 Media SE. She currently serves on the boards of Capgemini SE, Infineon Technologies AG and Amadeus IT Group SA. Christine O'Reilly has more than 30 years' experience in finance, public policy and transformational strategy. She held various roles with GasNet Australia Group and Colonial First State Global Asset Management. She currently serves on the boards of Stockland Limited, Medibank Private Limited, Baker Heart and Diabetes Institute, and will join the board of Australia and New Zealand Banking Group Limited from November 2021. We have also announced the appointment of Michelle Hinchliffe as an independent Non-executive Director from 1 March 2022. Ms Hinchliffe has over 30 years' experience in KPMG's financial services division and has spent time as a partner and member of the Board of KPMG's Australian and UK practices. She is currently the UK Chair of Audit for KPMG and will retire from KPMG prior to her appointment. Susan Kilsby and Anita Frew will retire as BHP Directors at the end of the 2021 Annual General Meetings (AGMs). Susan was appointed as Chair of Fortune Brands in January 2021 and Anita has joined the board of Rolls-Royce Holdings Plc and will become Chair from 1 October 2021. Both directors have stepped down due to the time commitments associated with these new chair roles. I would like to acknowledge and thank both Susan and Anita for their counsel and contribution to BHP and the Board. We are continuing our renewal process and will look to add a further independent director in 2022. Shareholder engagement We are committed to communicating with our shareholders and hearing your views on the company's performance. We do this through our AGMs, shareholder forums and investor meetings where we engage with investors on key areas of market interest. Shareholders also have the opportunity to ask questions directly of the Chief Executive Officer, Mike Henry, through shareholder question and answer sessions webcast through BHP's website. The Board also engages with investors and considers their perspectives, including through independent survey results, and regularly seeks feedback from other external stakeholders, such as the Forum on Corporate Responsibility, to ensure it is considering all perspectives and effecting positive change. Conclusion I am proud that BHP's people and operations have been resilient, and continued to create value for our shareholders, communities, customers, suppliers and partners. I look forward to our upcoming AGMs and to engaging with as many shareholders as I can, institutional and retail, throughout the year to hear your views and feedback. On behalf of the Board, thank you for your continued support. Ken MacKenzie Chair ieved ed by some strong outstanding operational disciplined nsecutive year, capital there allocation. were ue operated for shareholders assets. We and also ribute support to our the work. communities ' BHP Annual Report 2021 71

2.1 Corporate Governance Statement continued 2.1.2 Board of Directors and Executive Leadership Team Board of Directors Ken MacKenzie BEng, FIEA, FAICD 57 Independent Non-executive Director since September 2016. Chair since 1 September 2017. Mr MacKenzie has extensive global and executive experience and a deeply strategic approach, with a focus on operational excellence, capital discipline and the creation of long-term shareholder value. Ken has insight and understanding in relation to organisational culture, the external environment, and emerging issues related to the creation of social value. Ken was the Managing Director and Chief Executive Officer of Amcor Limited, a global packaging company with operations in over 40 countries, from 2005 until 2015. During his 23-year career with Amcor, Ken gained extensive experience across all of Amcor's major business segments in developed and emerging markets in the Americas, Australia, Asia and Europe. Ken currently sits on the Advisory Board of American Securities Capital Partners LLC (since January 2016) and is a part-time advisor at Barrenjoey (since April 2021). Mike Henry BSc (Chemistry) 55 Non-independent Director since January 2020. Chief Executive Officer since 1 January 2020. Mr Henry has over 30 years' experience in the global mining and petroleum industry, spanning operational, commercial, safety, technology and marketing roles. Mike joined BHP in 2003, initially in business development and then in marketing and trading of a range of mineral and petroleum commodities based in The Hague, where he was also accountable for BHP's ocean freight operations. He went on to hold various positions in BHP, including President Operations Minerals Australia, President Coal, President HSE, Marketing and Technology, and Chief Marketing Officer. Mike was appointed Chief Executive Officer on 1 January 2020 and has been a member of the Executive Leadership Team since 2011. Prior to joining BHP, Mike worked in the resources industry in Canada, Japan and Australia. Terry Bowen BAcct, FCPA, MAICD 54 Independent Non-executive Director since October 2017. Mr Bowen has significant executive experience across a range of diversified industries. He has deep financial expertise, and extensive experience in capital allocation discipline, commodity value chains and strategy. Terry was formerly Managing Partner and Head of Operations at BGH Capital and an Executive Director and Finance Director of Wesfarmers Limited. Prior to this, Terry held various senior executive roles within Wesfarmers, including as Finance Director of Coles, Managing Director of Industrial and Safety and Finance Director of Wesfarmers Landmark. Terry is also a former Director of Gresham Partners and past President of the National Executive of the Group of 100 Inc. Terry is currently Chair of the Operations Group at BGH Capital, and a Director of Transurban Group (since February 2020), Navitas Pty Limited and West Coast Eagles Football Club. Malcolm Broomhead AO, MBA, BE, FAICD 69 Independent Non-executive Director since March 2010. Mr Broomhead has extensive experience as a non-executive director of global organisations, and as a chief executive of large global industrial and mining companies. Malcolm has a broad strategic perspective and understanding of the long-term cyclical nature of the resources industry and commodity value chains, with proven health, safety and environment, and capital allocation performance. Malcolm was Managing Director and Chief Executive Officer of Orica Limited from 2001 until September 2005. Prior to joining Orica, he held a number of senior positions at North Limited, including Managing Director and Chief Executive Officer and, prior to that, held senior management positions with Halcrow (UK), MIM Holdings, Peko Wallsend and Industrial Equity. Malcolm is currently Chair of Orica Limited (since January 2016, having served on the board since December 2015). He is also a Director of the Walter and Eliza Hall Institute of Medical Research (since July 2014). Xiaoqun Clever Diploma in Computer Science and International Marketing, MBA 51 Independent Non-executive Director since October 2020. Ms Clever has over 20 years' experience in technology with a focus on software engineering, data and analytics, cybersecurity and digitalisation. Xiaoqun was formerly Chief Technology Officer of Ringier AG and ProSiebenSat.1 Media SE. Xiaoqun previously held various roles with SAP SE from 1997 to 2013, including Chief Operating Officer of Technology and Innovation. Xiaoqun was formerly a member of the Supervisory Board of Allianz Elementar Versicherungs and Lebensversicherungs AG (from January 2015 to August 2020). She is currently a Non-executive Director of Capgemini SE (since May 2019) and Amadeus IT Group SA (since June 2020) and on the Supervisory Board of Infineon Technologies AG (since February 2020). She is also a member of the Administrative Board of Cornelsen Group (since October 2019) and the Advisory Board of Nuremberg Institute for Market Decisions e.V. (since June 2019). Xiaoqun is also the Co-Founder and Chief Executive Officer of LuxNova Suisse GmbH (since April 2018). Ian Cockerill MSc (Mining and Mineral Engineering), BSc (Hons.) (Geology), AMP - Oxford Templeton College 67 Independent Non-executive Director since April 2019. Mr Cockerill has extensive global mining operational, project and executive experience having initially trained as a geologist. Ian previously served as Chair of BlackRock World Mining Trust plc (from 2016 to May 2019, having served on the board since September 2013), Lead Independent Director of Ivanhoe Mines Ltd (from 2012 to June 2019, having served on the board since August 2011), and a Non-executive Director of Orica Limited (from July 2010 to August 2019) and Endeavour Mining Corporation (from September 2013 to March 2019). Ian was formerly the Chief Executive Officer of Anglo American Coal and Chief Executive Officer and President of Gold Fields Limited, and a senior executive with AngloGold Ashanti and Anglo American Group. He is currently the Chair of Polymetal International plc (since April 2019) and a Non-executive Director of I-Pulse Inc (since September 2010). Ian is a Director of the Leadership for Conservation in Africa and is the Chair of Conservation 360, a Botswanan conservation NGO dealing with anti-poaching initiatives. Key to Committee membership Committee Chair RA Risk and Audit R Remuneration Committee member NG Nomination and Governance S Sustainability 72 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Anita Frew Gary Goldberg Susan Kilsby BA (Hons), MRes, Hon. D.Sc 64 BS (Mining Engineering), MBA 62 MBA, BA 62 Independent Non-executive Director since Independent Non-executive Director since Independent Non-executive Director since September 2015. February 2020. April 2019. Ms Frew has an extensive breadth of non- Senior Independent Director of BHP Group Plc Ms Kilsby has extensive experience in mergers and executive experience in diverse industries, since December 2020. acquisitions, and finance and strategy, having held including chemicals, engineering, industrial Mr Goldberg has over 35 years of global executive several roles in global investment banking. and finance. In particular, Anita has valuable experience, including deep experience in mining, From 1996 to 2014, Susan held senior executive insight and experience in the creation of value, strategy, risk, commodity value chain, capital roles at Credit Suisse, including as a Senior Advisor, organisational change, mergers and acquisitions, allocation discipline and public policy. and Chair of EMEA Mergers and Acquisitions. financial and non-financial risk, and health, Susan also has non-executive director experience safety and environment. Gary served as the Chief Executive Officer of one of the largest gold producers, Newmont across multiple industries. She was previously Anita was previously the Deputy Chair (from Corporation, from 2013 until October 2019. Prior to the Chair of Shire plc (from 2014 to January 2019, December 2014 to May 2020), Senior Independent joining Newmont, Gary was President and Chief having served on the board since September Director (from May 2017 to December 2019) Executive Officer of Rio Tinto Minerals, and served 2011) and the Senior Independent Director at BBA and Non-executive Director (from 2010 to May in executive leadership roles in Rio Tinto's coal, Aviation plc (from 2016 to 2019, having served on 2020) of Lloyds Banking Group plc. She also gold, copper and industrial minerals businesses. the Board from April 2012). previously held the roles of Chair of Victrex Plc and Gary previously served as Vice Chair of the World Susan is currently the Senior Independent Director Senior Independent Director of Aberdeen Asset Gold Council, Treasurer of the International Council of Diageo plc (since October 2019 having served on Management Plc and IMI Plc. on Mining and Metals, and Chair of the National the board since April 2018), Chair of Fortune Brands Anita is currently the Chair of Croda International Plc Mining Association in the United States. Gary also Home & Security Inc (since January 2021 having (since September 2015, having joined the Board in has non-executive director experience, having served on the board since July 2015) and a Non-March 2015). She is a Non-executive Director (since previously served on the board of Port Waratah executive Director of Unilever plc (since August 1 July 2021) and Chair designate (commencing from Coal Services Limited and Rio Tinto Zimbabwe. 2019) and NHS England (since January 2021). 1 October 2021) of Rolls-Royce Holdings Plc. John Mogford Christine O'Reilly Dion Weisler BEng 68 BBus 60 BASc (Computing), Honorary Doctor of Laws 54 Independent Non-executive Director since Independent Non-executive Director since Independent Non-executive Director since October 2017. October 2020. June 2020. Mr Mogford has significant global executive Ms O'Reilly has extensive experience in both Mr Weisler has extensive global executive experience, including in oil and gas, capital executive and non-executive roles with deep experience, including in chief executive officer and allocation discipline, commodity value chains financial and public policy expertise, as well as operational roles. In particular, Dion has valuable and health, safety and environment. John has valuable experience in large-scale capital projects transformation and commercial experience in the also held roles as a non-executive director on and transformational strategy. She has over global information technology sector, a focus on a number of boards. 30 years' executive experience in the financial capital discipline, as well as perspectives on current John spent the majority of his career in various and infrastructure sectors, including as the Chief and emerging ESG issues. leadership, technical and operational roles at Executive Officer of the GasNet Australia Group and Dion served as the President and Chief Executive BP Plc. He was the Managing Director and an as Co-Head of Unlisted Infrastructure Investments Officer of HP Inc. from 2015 to 2019, and continued Operating Partner of First Reserve, a large global at Colonial First State Global Asset Management. as a Director and Senior Executive Adviser until energy focused private equity firm, from 2009 Christine served as a Non-executive Director of May 2020. Dion previously held a number of senior until 2015, during which he served on the boards Transurban Group (from April 2012 to October executive roles at Lenovo Group Limited. Prior to of First Reserve's investee companies, including 2020), CSL Limited (from February 2011 to October this, Dion was General Manager Conferencing as Chair of Amromco Energy LLC and White 2020) and Energy Australia Holdings Limited (from and Collaboration at Telstra Corporation, and Rose Energy Ventures LLP. John retired from the September 2012 to August 2018). held various positions at Acer Inc., including as boards of Weir Group Plc and one of First Reserve's Christine is currently a Non-executive Director of Managing Director, Acer UK. portfolio companies, DOF Subsea AS, in 2018. Stockland Limited (since August 2018), Medibank Dion is currently a Non-executive Director of Intel John is currently a Non-executive Director of Private Limited (since March 2014) and Baker Heart Corporation (since June 2020) and Thermo Fisher ERM Worldwide Group Limited (since 2015). and Diabetes Institute (since June 2013), and will join Scientific Inc. (since March 2017). the board of Australia and New Zealand Banking Group Limited from November 2021. Stefanie Wilkinson BA, LLB (Hons), LLM 43 Group Company Secretary since March 2021. Ms Wilkinson was appointed Group Company Secretary effective March 2021. Prior to joining BHP, Stefanie was a Partner at Herbert Smith Freehills, a firm she was with for 15 years, specialising in corporate law and governance for listed companies. Earlier in her career, Stefanie was a solicitor at Allen & Overy in the Middle East. Stefanie is a fellow of the Governance Institute of Australia. BHP Annual Report 2021 73

2.1 Corporate Governance Statement continued Executive Leadership Team Athalie Williams Caroline Cox David Lamont Chief People Officer Chief Legal, Governance and External Affairs Officer Chief Financial Officer BA (Hons), FAHRI 51 BA (Hons), MA, LLB, BCL 51 BComm, CA 56 Ms Williams joined BHP in 2007 and was appointed Ms Cox was appointed Chief Legal, Governance Mr Lamont was appointed Chief Financial Officer Chief People Officer in January 2015. Athalie is and External Affairs Officer in November 2020. in December 2020. Prior to joining BHP David was responsible for delivering innovative people and Caroline joined BHP in 2014 as Vice President Legal the Chief Financial Officer of ASX-listed global culture strategies, programs and policies for the and was appointed Group General Counsel in 2016 biotech company CSL Limited. He has also held the Group globally, and ensuring BHP has the right and Group General Counsel & Company Secretary positions of CFO and Executive Director at Minerals people and capabilities to deliver its strategy. from March 2019. Prior to joining BHP, Caroline and Metals Group and has previously served as Prior to joining BHP, Athalie was the General was a Partner at Herbert Smith Freehills, a firm she CFO at OZ Minerals Limited, PaperlinX Limited Manager Cultural Transformation at NAB and was with for 11 years, specialising in cross-border and Incitec Limited. David held senior roles at BHP an organisation strategy adviser with Accenture transactions, disputes and regulatory investigations. between 2001 and 2006, including as CFO of its (formerly Andersen Consulting). Carbon Steel Materials and Energy Coal businesses. Edgar Basto Geraldine Slattery Johan van Jaarsveld President Minerals Australia President Petroleum Chief Development Officer BSc, Metallurgy 54 BSc, Physics, MSc, International Management B.Eng (Chem), MCom, Applied Finance, (Oil & Gas) 52 PhD (Eng), Extractive Metallurgy 49 Mr Basto joined BHP in 1989 and was appointed President Minerals Australia in July 2020. Edgar is Ms Slattery joined BHP in 1994 and was appointed Mr van Jaarsveld joined BHP in 2016 and was responsible for BHP's iron ore and nickel operations President Operations, Petroleum in March 2019. appointed Chief Development Officer in in Western Australia, metallurgical and energy coal Geraldine has more than 25 years of experience September 2020. Johan is responsible for strategy, in Queensland and New South Wales, and copper with BHP, most recently as Asset President acquisitions and divestments, securing early-stage in South Australia. Edgar has held key leadership Conventional and prior to that in several senior growth options in future facing commodities, roles across a range of commodities, including operational and business leadership roles across ventures and innovation. Prior to joining BHP, Johan as Asset President of Western Australia Iron Ore the Petroleum business in the United Kingdom, held executive positions in resources and finance, (WAIO) from March 2016 and Asset President Australia and the United States. including at Barrick Gold Corporation, Goldman Escondida (Chile) from 2009. Sachs and The Blackstone Group. Laura Tyler Ragnar Udd Vandita Pant Chief Technical Officer President Minerals Americas Chief Commercial Officer BSc (Geology (Hons)), MSc (Mining BAppSc (Mining Engineering), MEng, MBA 49 BCom (Hons), MBA, Business Administration 51 Engineering) 54 Mr Udd joined BHP in 1997 and was appointed Ms Pant joined BHP in 2016 and was appointed Ms Tyler joined BHP in 2004 and was appointed President Minerals Americas in November 2020. Chief Commercial Officer in July 2019. Her global Chief Technical Officer in September 2020. Ragnar has held a number of senior leadership accountabilities include Marketing, Procurement, Laura has 17 years of experience with BHP, most positions across BHP in operations, logistics, Maritime, Logistics, Global Business Services, and recently as Chief Geoscientist and Asset President projects and technology, including most recently developing BHP's views on global commodities of Olympic Dam. Prior to joining BHP, Laura worked as Acting Chief Technology Officer and Asset markets. Prior to this role she was Group Treasurer for Western Mining Corporation, Newcrest Mining President of BHP Mitsubishi Alliance (BMA). and Head of Europe. Prior to joining BHP, Vandita and Mount Isa Mines in various technical and held a wide range of executive roles with ABN operational roles. Amro and Royal Bank of Scotland and has lived and worked in India, Singapore, Japan and the United Kingdom. 74 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.1.3 BHP governance structure Shareholders Board Nomination and Risk and Audit Sustainability Remuneration Governance Committee Committee Committee Committee CEO Executive Leadership Team The Board currently has 12 members. The Directors of BHP, along with their profiles, are listed in section 2.1.2. The Board believes there is an appropriate combination of Executive and Non-executive Directors to promote shareholder interests and govern BHP effectively. The Board has fewer Executive Directors than is common for UK-listed companies, but its composition is considered appropriate for the Dual Listed Company structure and is in line with Australian-listed company practice. The Board has extensive access to members of senior management who frequently attend Board meetings. Management makes presentations and engages in discussions with Directors, answers questions and provides input and perspective on their areas of responsibility. The Chief Executive Officer (CEO) is accountable to the Board for the authority that is delegated to the CEO and for the performance of the Group. The CEO works in a constructive partnership with the Board and is required to report regularly to the Board on progress. The Chief Financial Officer (CFO) also attends all Board meetings. The Board, led by the Chair, also holds discussions in the absence of management at each Board meeting. The Chair is responsible for leading the Board and ensuring it operates to the highest governance standards. In particular, the Chair facilitates constructive Board relations and the effective contribution of all Non-executive Directors. The Group Company Secretary is accountable to the Board and advises the Chair and, through the Chair, the Board and individual Directors on all matters of governance process. The role of the Board, as set out in the Board Governance Document, is to represent shareholders and promote and protect the interests of BHP in the short and long term. The Board considers the interests of the Group's shareholders as a whole and the interests of other relevant stakeholders. The Board Governance Document is a statement of the practices and processes the Board has adopted to fulfil its responsibilities. It includes the processes the Board has implemented to undertake its own tasks and activities; the matters it has reserved for its own consideration and decision-making; the authority it has delegated to the CEO, including the limits on the way the CEO can execute that authority; and guidance on the relationship between the Board and the CEO. The matters reserved for the Board include: - CEO appointment and determination of the terms of the appointment - approval of the appointment of Executive Leadership Team (ELT) members, and material changes to the organisational structure involving direct reports to the CEO - strategy, annual budgets, balance sheet management and funding strategy - determination of commitments, capital and non-capital items, acquisitions and divestments above specified limits - performance assessment of the CEO and the Group - approving the Group's values, Our Code of Conduct, purpose and risk appetite - management of Board composition, processes and performance - determination and adoption of documents (including the publication of reports and statements to shareholders) that are required by the Group's constitutional documents, statute or by other external regulation The Board Governance Document is available at bhp.com/governance. The Board has established Committees to assist it in exercising its authority, including monitoring the performance of BHP to gain assurance that progress is being made towards our purpose within the limits imposed by the Board. These Committees include the Risk and Audit Committee, the Nomination and Governance Committee, the Remuneration Committee and the Sustainability Committee. Each of these permanent Committees has terms of reference under which authority is delegated by the Board. These are available at bhp.com/governance. Reports from these Committees are set out at sections 2.1.9 to 2.1.12. BHP Annual Report 2021 75

2.1 Corporate Governance Statement continued 2.1.4 Board and Committee meetings and attendance The Board meets as often as required. During FY2021, the Board met 12 times. The normal schedule, which includes Board meetings in the United Kingdom and in another global office location, was disrupted due to the impacts of the COVID-19 pandemic. During FY2021, all Board meetings were held virtually. An additional ad hoc meeting was held in FY2021. Members of the ELT and other members of senior management attend meetings of the Board by invitation, with the CFO attending each meeting. Each Board Committee provides a standing invitation for any Non-executive Director to attend Committee meetings (rather than just limiting attendance to Committee members). Committee agendas and papers are provided to all Directors to ensure they are aware of matters to be considered. Board and Board Committee attendance in FY2021 Nomination and Risk and Audit Governance Remuneration Sustainability Board Committee Committee Committee Committee Terry Bowen 12/12 11/11 4/4(1) Malcolm Broomhead 12/12 6/6 5/5 Xiaoqun Clever(2) 8/8 7/7 Ian Cockerill 12/12 11/11 5/5 Anita Frew 12/12 11/11 6/6 Gary Goldberg 12/12 2/2(3) 6/6 5/5 Mike Henry 12/12 Susan Kilsby 11/12(4) 4/4(5) 6/6(5) Ken MacKenzie 12/12 6/6 Lindsay Maxsted(6) 4/4 4/4 John Mogford 12/12 4/4(7) 5/5 Christine O'Reilly(8) 8/8 7/7 2/2 3/3(5) Shriti Vadera(9) 4.5/4.5(9) 2/2 2/3(10) Dion Weisler 12/12 6/6 Table indicates the number of scheduled and ad hoc meetings attended and held during the period the Director was a member of the Board and/ or Committee. (1) Terry Bowen became a member of the Nomination and Governance Committee on 2 December 2020. (2) Xiaoqun Clever became a member of the Board and the Risk and Audit Committee on 1 October 2020. (3) Gary Goldberg became a member of the Nomination and Governance Committee on 1 March 2021. (4) Susan to the Chair Kilsby in was advance unable of to the attend meeting. the Board meeting on 5 May 2021 as the meeting time was rescheduled and Susan had a pre-existing Board commitment. Susan provided detailed comments (5) Susan 1 March Kilsby 2021. ceased being a member of the Nomination and Governance Committee on 1 March 2021, and was replaced as Chair of the Remuneration Committee by Christine O'Reilly effective (6) Lindsay Maxsted retired as a member of the Board and the Risk and Audit Committee on 4 September 2020. (7) John Mogford became a member of the Nomination and Governance Committee on 2 December 2020. (8) Christine Committee O'Reilly on 1 March became 2021. a member of the Board, the Risk and Audit Committee and the Remuneration Committee on 12 October 2020, and a member of the Nomination and Governance (9) Shriti two days Vadera on 13 retired and 16 as October, a member and of Shriti the Board, attended the Nomination the first session and prior Governance to her retirement. Committee and the Remuneration Committee on 15 October 2020. The October Board meeting was held over (10) Shriti the Committee Vadera was ahead unable of to the attend meeting. the Remuneration Committee meeting on 23 September 2020 due to pre-existing Board commitments. Shriti provided detailed comments to the Chair of 76 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.1.5 Key Board activities during FY2021 Key matters considered by the Board during FY2021 are outlined below. Chair's matters Board composition, succession - CEO and ELT succession planning, performance and culture - Committee succession - Board composition and succession - Board evaluation - Director training and development - Corporate governance updates - Employee indemnification policy Strategic matters Capital allocation - Dividend policy and dividend recommendations (Capital Allocation Framework, capital - Capital prioritisation and portfolio development options prioritisation and development outcomes) - Capital execution watch list - Capital allocation for pathways to net zero and other social value projects Funding - Finance and business performance reports (annual budgets, balance sheet - Two-year budget management, liquidity management) - Funding updates Portfolio and strategy - Growth projects and transactions (Group scenarios, commodity and - Commodity strategies asset review, growth options, approving - Dual Listed Company structure commitments, capital and non-capital items - Strategic roadmap and acquisitions and divestments above a - Risk Appetite Statement specified threshold, and geopolitical and - Climate change - approval of commitments and updates on progress against commitments macro-environmental impacts) - Climate change - external landscape and risk exposure - Equity alternatives - New world trends post COVID-19 pandemic - COVID-19 updates, including safety measures, wellbeing steps, workforce planning and community support - Samarco strategy, funding and communications - Strategic options for Petroleum - Acquisition of additional interest in Shenzi - Jansen Potash Project - Trion project and Mexico country risk update - Commodity price protocols - China strategy - Chile country update - Economic and geopolitical landscape - Nickel West power purchase agreement - Innovation and technology update - Minerals exploration briefing People, culture, social value and other - Culture and capability, including capability deep dives significant items - Culture dashboard and Engagement and Perception Survey (EPS) results, including actions that will be taken based on the findings - Inclusion and diversity update - Sexual assault and sexual harassment - Payroll review - Cultural heritage review, including in relation to Project Resolution - Shareholder requisitioned resolutions Monitoring and assurance matters Includes matters and/or documents - Investor relations reports, including investor perception survey results required by the Group's constitutional - CEO reports, including updates on safety and sustainability, financial and operational documents, statute or by other performance, external affairs, markets, people and projects external regulation - Risk review session - Non-financial risk management - Tailings Storage Facility Policy - Approval of the CEO's remuneration - Review and approval of half-year and full-year financial results - Review and approval of the Annual Reporting suite and Climate Change Report - Physical and virtual site visits, and site visit reports - Director evaluations BHP Annual Report 2021 77

2.1 Corporate Governance Statement continued Policies and procedures During FY2021, we transitioned to full compliance with the fourth edition of the ASX Corporate Governance Principles and Recommendations (ASX Fourth Edition) published by the ASX Corporate Governance Council. We implemented new arrangements in line with the ASX Fourth Edition and reviewed them to ensure they remained in line with the 2018 edition of the UK Corporate Governance Code (UK Code). In line with the ASX Fourth Edition, BHP also disclosed its Periodic Disclosure - Disclosure Controls policy, which sets out our process to verify the integrity of the periodic corporate reports we release to the market, including those that are not audited or reviewed by the external auditor. For refer more to section information 2.1.16 ELT succession A critical component of succession at the Executive Leadership Team (ELT) level and below is the existence of a robust senior leadership program that operates across multiple organisational levels to build, develop, renew, recruit and promote our leaders. The Board is actively engaged and oversees the development of the senior leadership team. On 1 December 2020, David Lamont's appointment as Chief Financial Officer (CFO) took effect. Peter Beaven continued as CFO until 30 November 2020 to provide ongoing leadership through to David's commencement, and supported David with handover into early CY2021. In August 2020, the Board approved new roles and appointments on the ELT. Ragnar Udd became President Minerals Americas, effective 1 November 2020, replacing Daniel Malchuk. Daniel continued in the role until that time and left BHP at the end of CY2020. Laura Tyler commenced in the new role of Chief Technical Officer on 1 September 2020. This role is an expansion of her previous position on the ELT as Chief Geoscientist. She relinquished her role as Asset President Olympic Dam. Caroline Cox became Chief Legal, Governance and External Affairs Officer, effective 1 November 2020, replacing Geoff Healy. Geoff continued in the role until that time and left BHP at the end of CY2020. Johan van Jaarsveld commenced in the new role of Chief Development Officer on 1 September 2020. Culture The delivery of our strategy is predicated on our culture and capability. The Board, supported by the Committees, considers a range of qualitative and quantitative information in relation to culture at BHP and monitors and assesses culture on an ongoing basis for alignment with our strategy, purpose and values. Board and Committee papers include workforce planning in the context of COVID-19, EPS results, inclusion and diversity update, Risk and Audit Committee report-outs on Our Code of Conduct investigations, the culture and capability required to execute our strategy, and culture as a part of asset reviews. Recognising our culture cannot be measured using a single number or index, a culture dashboard was developed in FY2021 to provide the Board with an additional tool to monitor our culture. The dashboard includes simple measures to provide key signposts on the health of our culture. This data combined with the EPS results provides the Board with insight on safety, engagement and enablement. The culture dashboard will be further developed over the next year to provide insight into the execution of our strategy. Directors also gain insights into culture through direct engagement with a cross-section of the workforce where they can gain direct feedback on a range of issues, including COVID-19 impacts, diversity, health, safety, environment and community (HSEC) topics and social value. For refer more to sections information 1.14, 2.1.6 and 1.12 Climate change Climate change is a material governance and strategic issue and is routinely on the Board agenda, including as part of strategy discussions, portfolio reviews and investment decisions, risk management oversight and monitoring, and performance against our commitments. The Sustainability Committee assists the Board in overseeing the Group's climate change performance and governance responsibilities. The Risk and Audit Committee and Sustainability Committee assist the Board with the oversight of climate-related risk management, although the Board retains overall accountability for BHP's risk profile. Below the level of the Board, key management decisions are made by the CEO and management, in accordance with their delegated authority. Following discussion by the ELT and Sustainability Committee, in August 2020 the Board approved our medium-term target, Scope 3 emissions goals and the strengthening of links between executive remuneration and climate change performance measures. For refer information to sections 1.13.7 regarding and 1.13.1 our approach to climate change and sustainability 78 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.1.6 Stakeholder engagement There are multiple ways the views of stakeholders, beyond shareholders, are brought to the Board and its Committees. For example, HSEC updates, site visits (physical and virtual where necessary) involving engagement with community members and government, and engagement with the Forum on Corporate Responsibility. In addition, the Risk and Audit Committee receives reports on engagement with regulators. It also receives reports on material litigation and disputes with third parties and complaints raised through the speak-up hotline, EthicsPoint, which allows our workforce to raise concerns in confidence. The strategic framework, focus on social value, our purpose and Risk Appetite Statement reflect the significance of external stakeholders in decision-making. The Annual Report includes additional information on our stakeholders, including non-governmental organisations, how we have elicited the views of stakeholders and the outcomes of our engagements with stakeholders, in particular in relation to the Board's decision-making. For refer more to sections information 1.12, 1.13 and 1.14 Shareholder engagement Part of the Board's commitment to high-quality governance is expressed through the approach BHP takes to engaging and communicating with our shareholders. As part of our investor relations program to facilitate effective two-way communication with investors, the Board uses formal and informal communication channels to understand and take into account the views of shareholders. BHP provides information about itself and its governance to investors via its website at bhp.com. Investor engagement in FY2021 Chair investor meetings The Chair regularly meets with investors to discuss Board priorities and seek shareholder feedback. FY2021 activity Virtual meetings were held in July 2020 between the Chair and investors in Australia, the US, the UK and mainland Europe, with additional meetings held in June 2021. The Chair also held a UK Virtual Shareholder Forum with the CEO in September 2020 to allow shareholders to ask questions in advance of the AGMs. This was arranged after consultation with the UK Shareholders' Association and ShareSoc. Live webcasts and Q&A sessions Provides a forum to update shareholders on results or other key announcements. FY2021 activity Annual and half-year results, as well as key announcements are webcast and the materials are made available on our website. The CEO held a shareholder question and answer session in August 2020 via webcast in relation to BHP's FY2020 performance. Presentations and briefings Presentation materials are set out on the BHP website. FY2021 activity Presentations delivered relating to our climate change strategy in September 2020, cultural heritage in October 2020, decarbonising steel in November 2020 and tailings storage facilities in June 2021. Direct engagement Provides a conduit to enable the Board and its Committees to be up to date with investor expectations and continuously improve the governance processes of BHP. We also engage with other capital providers, for example, through meetings with bondholders. FY2021 activity The CEO, CFO, senior management and Investor Relations team held virtual The CEO had a series of meetings with the CEOs and chief investment officers meetings with investors worldwide, including: Australia, Canada, Germany, of major investors globally to discuss a range of topics including decarbonisation Hong Kong SAR (China), Japan, Malaysia, Singapore, South Africa, Sweden, and the criticality of minerals and metals to the transition. United Arab Emirates, the UK and the US. Topics covered include corporate In addition, we engaged with a range of ESG data providers about their governance and ESG matters, strategy, finance and operating performance. methodologies and responded to enquiries on topics including cultural We engaged with investors on cultural heritage issues, including the heritage, industry associations, thermal coal, decarbonisation, Scope 3 withdrawn shareholder resolution and our updated approach. This included emissions, diversity and inclusion, tailings dams, Samarco, non-operated a number of presentations and investor one-on-one meetings through the joint ventures, biodiversity, water stewardship and COVID-19. first half of FY2021 to set out the detail of our approach to cultural heritage The Risk and Audit Committee considered and oversaw management work both in the Pilbara and worldwide. in relation to a letter from the Institutional Investors Group on Climate Change We engaged regularly with the Climate Action 100+ lead investors and the (IIGCC) setting out 'investor expectations for Paris-aligned accounts'. broader investor group of the CA100+ on a range of decarbonisation and The Remuneration Committee also engages with investors on remuneration-emissions related topics. We also engaged with the Transparency Pathway related matters. The Chair of the Remuneration Committee wrote an open Initiative and FTSE Russell about their methodologies relating to the transition letter to shareholders and proxy advisers in September 2020, summarising and approach to mined commodities. key aspects of BHP's FY2020 remuneration outcomes and welcoming investor feedback. This letter was published on BHP's website. Annual General Meetings Information on our AGMs is Our AGMs provide an opportunity for all investors to question and engage with the Board. available at bhp.com/meetings FY2021 activity Due to COVID-19 restrictions, the BHP Group Limited AGM for FY2020 was held as a virtual meeting and the BHP Group Plc AGM for FY2020 was held as a closed meeting. A virtual forum for BHP Group Plc shareholders was held in September 2020 to provide an opportunity to hear from the Chair and CEO and to ask questions via a live text facility. BHP Group Plc shareholders were also invited to attend the BHP Group Limited AGM virtually. BHP Annual Report 2021 79

2.1 Corporate Governance Statement continued We encourage shareholders to make their views known to us. Shareholders can contact us at any time through our Investor Relations team, with contact details available at bhp.com. In addition, shareholders can communicate with us and our registrar electronically. We facilitate and encourage shareholder participation at our AGMs. These meetings provide an update for shareholders on our performance and offer an opportunity for shareholders to ask questions and vote. Before an AGM, shareholders are provided with all material information in BHP's possession relevant to their decision on whether or not to elect or re-elect a Director. Proceedings at shareholder meetings are webcast live from our website. Copies of the speeches delivered by the Chair and CEO at the AGMs are released to the relevant stock exchanges and posted on our website. A summary of proceedings and the outcome of voting on the items of business are released to the relevant stock exchanges and posted on our website as soon as they are available. The External Auditor will also be available to answer questions at the AGMs. At our AGMs in 2020, resolution 25 (a shareholder-requisitioned resolution to suspend memberships of industry associations that are involved in COVID-19-related advocacy that is inconsistent with the goals of the Paris Agreement) received the support of 22 per cent of votes cast. The key messages received from engagement with shareholders include: - an emphasis that BHP constructively influence its trade associations to further enhance the global energy transition - ensuring the COVID-19 pandemic was not used (or seen to be used) as a rationale by associations to impede progress on alignment with the Paris Agreement goals and that the economic recovery measures being considered present a unique opportunity to accelerate clean energy innovation - enhancing transparency on the alignment between the policy positions held by BHP and those of industry associations of which BHP is a member is important but not sufficient. If an industry association is advocating for policy changes inconsistent with the goals of the Paris Agreement, companies must take tangible action to drive consistency We are confident our existing processes, combined with the reforms outlined below, provide strengthened oversight over industry association advocacy and will help ensure our commitment to responsible and constructive advocacy is shared by the associations of which we are a member. Prior to the 2020 AGMs, BHP announced a series of industry association reforms, including a new set of Global Climate Policy Standards (applicable to BHP in its direct advocacy and also to the associations of which we are a member) and disclosure enhancements, such as publishing a list of material association memberships (including membership fees) on our website. Since the AGMs, BHP has continued to work to implement the reforms announced in August 2020. This has included: - working with the minerals sector associations of which BHP is a member in Australia (i.e. the Minerals Council of Australia (MCA) and the various state-based minerals sector associations) to develop and agree an advocacy protocol. This protocol delineates the policy areas on which the associations will advocate, having regard to their jurisdictional responsibilities - working with the key associations of which BHP is a member in Australia (i.e. the MCA, the various state-based minerals sector associations, the Australian Petroleum Production and Exploration Association (APPEA) and the Business Council of Australia (BCA)) to develop plans outlining their expected advocacy priorities and activities for the coming year. These plans are now available on the websites of the respective associations or will soon be available pending board approval by the relevant associations - implementing BHP's new model of disclosing material departures from our Global Climate Policy Standards in 'real time' on the BHP website BHP has also played an active role in shaping the policy advocacy of its industry associations. This has included working with other members to: - change the American Petroleum Institute's position on methane regulation and carbon pricing - update the APPEA's climate change policy principles (which now call for Australia to achieve net zero emissions by 2050) - enable the BCA to provide in-principle support for the Climate Change (National Framework for Adaptation and Mitigation) Bill 2020 that was introduced before the Australian Parliament in November 2020 We will be conducting our next industry association review in CY2022. Consistent with BHP's culture of continuous improvement, we will work to strengthen the review process. More information on our approach to industry associations is available at bhp.com. 80 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Workforce engagement Our global workforce is the foundation of our business and we believe supporting the wellbeing of our people and promoting an inclusive and diverse culture are vital for maintaining a competitive advantage. The Board considers effective workforce engagement a key element of its governance and oversight role. The Board has arrangements in place for managing workforce engagement. The Board and its Committees receive information related to the workforce through a range of channels, including direct engagement at Board and Committee meetings and site visits, the Employee Perception Survey (EPS) findings, culture dashboard insights, gender pay gap reports and updates from the Chief Executive Officer and the Chief People Officer. Alongside section 1.14, the table below further describes the ways the Board engaged with our workforce in FY2021 and how workforce considerations impacted key decisions. Having reviewed these workforce engagement arrangements in FY2021, the Board considers these arrangements to be effective as they enable the Board to hear first-hand from a cross-section of the workforce and to engage with them interactively (e.g. during site visits and Board and Committee meetings), with the opportunity to consider the feedback received in subsequent Board discussions. Workforce engagement practices Site visits For refer more to section information 2.1.9 Directors participated in site visits (many of these were virtual in FY2021 due to COVID-19 travel restrictions) to engage directly with a cross-section of the workforce. These engagements deliberately included a cross-section of staff in various regions and provide insight into matters that are front of mind for Directors and the workforce. Board and Committee meetings Directors hear from employees, up to several levels below the CEO, at each Board and Committee meeting. Topics raised by employees include the health and safety of our people, culture, ethics and compliance, workforce relations, sexual assault and sexual harassment, response to COVID-19, our purpose, social value, conduct concerns and diversity. EthicsPoint For refer more to sections information 1.13.6 and on 2.1.15 Members of our workforce are able to raise matters of concern through our 24-hourspeak-up helpline, EthicsPoint. This helps to ensure Board oversight of culture and management response to serious conduct contrary to Our Charter and Our Code of Conduct. Employee survey results and culture dashboard Metrics from the EPS and culture dashboard provide Directors with insight into our culture and areas of focus, including where we are lagging in certain measures. The EPS was redesigned in FY2021 to include more targeted questions and a new survey platform to provide leaders with greater insight into the key metrics related to safety, engagement and enablement, which were identified as critical foundations for our performance culture. The culture dashboard was also developed in FY2021 to provide key signposts on the health of our culture. Management engagement through webcasts, Q&A sessions and emails Management regularly engages with the workforce through a range of formal and informal channels, including webcasts, live Q&A sessions and emails from the CEO and other ELT members. Live Q&A sessions were particularly helpful in providing an opportunity for employees to ask questions of our leaders and receive responses in real time. BHP Annual Report 2021 81

2.1 Corporate Governance Statement continued 2.1.7 Director skills, experience and attributes Overarching statement of Board requirements The BHP Board will be diverse in terms of gender, nationality, geography, age, personal strengths and social and ethnic backgrounds. The Board will comprise Directors who have proven past performance and the level of business, executive and non-executive experience required to: - provide the breadth and depth of understanding necessary to effectively create long-term shareholder value - protect and promote the interests of BHP and its social licence to operate - ensure the talent, capability and culture of BHP to support the long-term delivery of our strategy Attributes and commitment to role All Directors are expected to comply with Our Code of Conduct, act with integrity, lead by example and promote the desired culture. The Board believes each Non-executive Director has demonstrated the attributes of sufficient time to undertake the responsibilities of the role; honesty and integrity; and a preparedness to question, challenge and critique throughout the year through their participation in Board meetings, as well as the other activities that they have undertaken in their roles. In accordance with provision 15 of the UK Code, during FY2021 the Board considered Ken MacKenzie's appointment as a part-time adviser at Barrenjoey and approved it on the basis that it did not consider it adversely impacted his role or commitment to BHP. In particular, the Board noted it was not an executive role and Mr MacKenzie committed to the Board that BHP would remain Mr MacKenzie's number one priority. It was also agreed that Barrenjoey will not advise BHP and that Mr MacKenzie himself will not advise on transactions or advise BHP competitors or our significant customers or suppliers. Skills matrix The Board skills matrix identifies the skills and experience the Board needs for the next period of BHP's development, considering BHP's circumstances and the changing external environment as referred to above. The Board collectively possesses all the skills and experience set out in the skills matrix, and each Director satisfies the Board requirements and attributes discussed above. For more information on the individual skills and attributes of the Directors, refer to section 2.1.2. Skills and experience Board Total Directors 12 Mining 4 Senior executive who has deep operating or technical mining experience with a large company operating in multiple countries; successfully optimised and led a suite of large, global, complex operating assets that have delivered consistent and sustaining levels of high performance (related to cost, returns and throughput); successfully led exploration projects with proven results and performance; delivered large capital projects that have been successful in terms of performance and returns; and a proven record in terms of health, safety and environmental performance and results. Oil and gas 2 Senior executive who has deep technical and operational oil and gas experience with a large company operating in multiple countries; successfully led production operations that have delivered consistent and sustaining levels of high performance (related to cost, returns and throughput); successfully led exploration projects with proven results and performance; delivered large capital projects that have been successful in terms of performance and returns; and a proven record in terms of health, safety and environmental performance and results. Global experience 10 Global experience working in multiple geographies over an extended period of time, including a deep understanding of and experience with global markets, and the macro-political and economic environment. Strategy 11 Experience in enterprise-wide strategy development and implementation in industries with long cycles, and developing and leading business transformation strategies. Risk 12 Experience and deep understanding of systemic risk and monitoring risk management frameworks and controls, and the ability to identify key emerging and existing risks to the organisation. Commodity value chain expertise 8 End-to-end value or commodity chain experience - understanding of consumers, marketing demand drivers (including specific geographic markets) and other aspects of commodity chain development. Financial expertise 12(1) Extensive relevant experience in financial regulation and the capability to evaluate financial statements and understand key financial drivers of the business, bringing a deep understanding of corporate finance, internal financial controls and experience probing the adequacy of financial and risk controls. Relevant public policy expertise 5 Extensive experience specifically and explicitly focused on public policy or regulatory matters, including ESG (in particular climate change) and community issues, social responsibility and transformation, and economic issues. Health, safety, environment and community 10 Extensive experience with complex workplace health, safety, environmental and community risks and frameworks. Technology 5 Recent experience and expertise with the development, selection and implementation of leading and business transforming technology and innovation, and responding to digital disruption. Capital allocation and cost efficiency 11 Extensive direct experience gained through a senior executive role in capital allocation discipline, cost efficiency and cash flow, with proven long-term performance. (1) Twelve in relation Directors to financial meet experience. the criteria of financial expertise outlined above. The Risk and Audit Committee Report contains details of how its members meet the relevant legal and regulatory requirements 82 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Board skills and experience: Climate change Board members bring experience from a range of sectors, including resources, energy, finance, technology and public policy. The Board also seeks the input of management and other independent advisers. This equips them to consider potential implications of climate change on BHP and its operational capacity, as well as understand the nature of the debate and the international policy response as it develops. In addition, there is a deep understanding of systemic risk and the potential impacts on our portfolio. The Board has taken measures designed to ensure its decisions are informed by climate change science and expert advisers. The Board seeks the input of management (including Dr Fiona Wild, our Vice President Sustainability and Climate Change) and other independent advisers. In addition, our Forum on Corporate Responsibility (which includes Don Henry, former CEO of the Australian Conservation Foundation and Changhua Wu, former Greater China Director, the Climate Group) advises operational management teams and engages with the Sustainability Committee and the Board as appropriate. For refer more to section information 1.13.7 Board tenure and diversity (as at 30 June 2021) Tenure Region of nationality Gender diversity Female 33% 0 > 3 years 58% 3 > 6 years 33% Australia 42% 6 > 9 years 0% Europe/UK 33% North Female 33% 9+ years 8% America 25% Male 67% 2.1.8 Board evaluation The Board is committed to transparency in assessing the performance of Directors. The Board conducts regular evaluations of its performance, the performance of its Committees, the Group Chair, Directors and the governance processes that support the Board's work. The evaluation considers the balance of skills, experience, independence and knowledge of the Group and the Board, its diversity, including gender diversity, and how the Board works together as a unit. An evaluation was conducted during the year in accordance with this process. More information is provided below. Director review In FY2021, an assessment was conducted of Directors' performance with the assistance of an external service provider (Lintstock). Lintstock does not have any other connection with the Group or individual Directors. The assessment of Directors focused on the contribution of each Director to the work of the Board and its Committees, and the expectations of Directors as set out in BHP's governance framework. In addition, the assessment focused on how each Director contributes to Board cohesion and effective relationships with fellow Directors, commits the time required to fulfil their role and effectively performs their responsibilities. Directors were asked to comment on areas where their fellow Directors contribute the greatest value and on potential areas for development. With the introduction of virtual Board and Committee meetings (as a consequence of COVID-19 health and safety protocols), the assessment also focused on the effectiveness of the Board's virtual interactions. Lintstock provided feedback received to the Chair, which was then discussed with Directors. Feedback relating to the Chair was discussed with the Chair by the Senior Independent Director. As a result of these outcomes, the review supported the Board's decision to endorse those Directors standing for re-election. Committee assessments Following an assessment of its work, each Committee concluded that it had met its terms of reference in FY2021. External Board review The Board conducted an external evaluation in FY2019 using Consilium Board Review, which considered Board, Committee and Chair effectiveness, and assessed the Directors' contributions. The review was concluded in FY2020 and the Nomination and Governance Committee considered the status of implementation of the review findings in FY2021. In accordance with the UK Code, the Board intends to conduct an external Board review in FY2022. BHP Annual Report 2021 83

2.1 Corporate Governance Statement continued 2.1.9 Nomination and Governance Committee Report Ken MacKenzie Chair, Nomination and Governance Committee Role and focus The Nomination and Governance Committee oversees and monitors renewal and succession planning, Board and Director performance evaluation, Director training and development, and advises and makes recommendations on the Group's governance practices. More information on the role and responsibilities of the Nomination and Governance Committee can be found in its terms of reference, which are available at bhp.com/governance. Committee activities in FY2021 included: Succession planning processes Evaluation and training Corporate governance practices - Implementation of the skills and - Board evaluation and Director development - Independence of Non-executive Directors experience matrix - 2021 training and development program - Authorisation of situations of actual or - Identification of suitable Non-executive - Director induction potential conflict Director candidates - Crisis management - Board and Committee succession - Partnering with search firms regarding candidate searches Policy on inclusion and diversity The Board and management believe diversity is required to meet our purpose and strategy, which is outlined in section 1.4. Diversity is key to ensuring the Board and its Committees have the right blend of perspectives so that the Board oversees BHP effectively for shareholders. In FY2021, we adopted an Inclusion and Diversity Position Statement, which sets out our diversity policy in relation to the Board, senior management and our workforce, and our priorities to accelerate the development of a more inclusive work environment and enhanced overall workplace diversity. The Inclusion and Diversity Position Statement is available at bhp.com/careers/diversity-and-inclusion/our-approach/ and is summarised in section 1.12. As described in our Inclusion and Diversity Position Statement, our aspiration is to achieve gender balance on our Board, among our senior executives and across our workforce by CY2025. Our aspiration includes a fixed target of maintaining the level of Board diversity above 33 per cent, which we achieved last year and we continue to maintain. We therefore satisfy the guidance of having at least 30 per cent of Directors of each gender in accordance with the ASX Fourth Edition and the target set by the Hampton-Alexander Review in the United Kingdom for all FTSE 100 Boards to have at least 33 per cent female representation by the end of CY2020. We also welcome the final Parker Report into ethnic diversity of UK boards and continue to seek additional ethnic diversity on our Board and throughout BHP. Our Board meets the target of having 'at least one Director of colour by 2021' as recommended by the Parker Review. In accordance with the UK Code, our gender diversity among senior management (defined as the ELT plus the Company Secretary and their direct reports) was 36 per cent. Part of the Board's role continues to be to consider and approve BHP's measurable objectives for workforce diversity each financial year and to oversee our progress in achieving those objectives. For refer more to section information, 1.12 including our progress against our FY2021 measurable objectives and our employee profile more generally 84 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Board appointments and succession planning When considering new appointments, the Board's Nomination and Governance Committee takes the following approach: Step 1: BHP adopts a structured and rigorous approach to Board succession planning and oversees the development Rigorous of a diverse pipeline. Succession plans consider both unforeseen departures as well as the orderly replacement approach of current members of the Board. When considering succession planning and a diverse pipeline of talent, the Nomination and Governance Committee considers Board diversity, size, tenure and the skills, experience and attributes needed to effectively govern and manage risk within BHP. Step 2: This process is continuous and for Non-executive Directors planning is based on a nine-year tenure as a guide, Continuous allowing the Board to ensure the right balance on the Board between experience and fresh perspectives. approach It also ensures the Board continues to be fit-for-purpose and evolves to take account of the changing external environment and BHP's circumstances. It also prepares pipelines for Nomination and Governance Committee membership, considering relevant skills and requirements. Step 3: When considering new appointments to the Board, the Nomination and Governance Committee oversees the Role description preparation of a role description, which includes the criteria and attributes described in the Board Governance Document and section 2.1.7. Step 4: The role description is provided to an external search firm retained to conduct a global search based on the Selection and appointment Board's criteria. of search firm Step 5: The shortlisted candidates are considered by the Nomination and Governance Committee and interviewed by the Board interviews Chair initially. Meetings for selected candidates are held with each Board member ahead of the Board deciding whether to appoint the candidate. Step 6: The Nomination and Governance Committee recommends the Board appoint the preferred candidate. Committee recommendation Step 7: The Board, with the assistance of external consultants, conducts appropriate background and reference checks. Background checks Step 8: The Board has adopted a letter of appointment that contains the terms on which Non-executive Directors will Letter of appointment be appointed, including the basis upon which they will be indemnified by the Group. The letter of appointment defines the role of Directors, including the expectations in terms of independence, participation, time commitment and continuous improvement. Written agreements are in place for all Non-executive Directors. A copy of the terms of appointment for Non-executive Directors is available at bhp.com/governance Senior management succession A robust senior management succession process is also conducted to ensure pipeline stability for critical roles. A talent deep dive is conducted by the Board at least once a year to evaluate these pipelines, including the diversity of the pipeline. Senior management succession is viewed from a five-year perspective that considers the readiness of successors across time horizons, contexts and future capability demands. Select Board members are involved in the interview process for executive-level appointments one level below the CEO, and occasionally for roles two levels below the CEO. Appropriate checks are undertaken before appointing a member of the ELT. BHP has a written agreement with each ELT member setting out the terms of their appointment. For more information about CEO and ELT succession, refer to section 2.1.5. External recruitment specialists The Committee retained the services of external recruitment specialists. Russell Reynolds and MWM Consulting assisted with Non-executive Director candidate searches during FY2021. These recruitment specialists do not have any connection with the Group or any Director. Director induction, training and development Upon appointment, each new Non-executive Director undertakes an induction program tailored to their needs. Following the induction program, Non-executive Directors participate in continuous improvement activities (training and development program), which are overseen by the Nomination and Governance Committee. The training and development program covers matters of a business nature, including environmental, social and governance matters and provides updates on BHP's assets, commodities, geographies and markets. Programs are designed and periodically reviewed to maximise effectiveness, and the results of Director performance evaluations are incorporated into these programs. BHP Annual Report 2021 85

2.1 Corporate Governance Statement continued Training and development in FY2021 Area Purpose FY2021 activity Briefings and Provide each Director with a deeper understanding - Strategy day with the ELT development of the activities, environment, key issues and - Strategy presentation from external presenter sessions direction of the assets, along with HSEC and public - Climate change sessions policy considerations. - Innovation and Technology Site visits Briefings on the assets, operations and other - Olympic Dam relevant issues and meetings with key personnel. - Legacy assets During FY2021, a number of site visits were held - Jansen Potash Project virtually due to COVID-19 travel restrictions, but where possible, some Directors also participated in physical - Petroleum Offshore site visits. - Nickel West - Western Australia Iron Ore Throughout the year, the Chair discusses development areas with each Director. Board Committees review and agree their needs for more briefings. The benefit of this approach is that induction and learning opportunities can be tailored to Directors' Committee memberships, as well as the Board's specific areas of focus. This approach also ensures a coordinated process on succession planning, Board renewal, training and development and Committee composition. These processes are all relevant to the Nomination and Governance Committee's role in identifying appropriate Non-executive Director candidates. Independence The Board is committed to ensuring a majority of Directors are independent. The Board has adopted a policy that it uses to determine the independence of its Directors. This determination is carried out upon appointment, annually and at any other time where the change in circumstances of a Director warrant reconsideration. The Board confirms that it considers all of the current Non-executive Directors, including the Chair, to be independent of management and free from any business relationship or other circumstance that could materially interfere with the exercise of objective, unfettered or independent judgement. A copy of the policy on Independence of Directors is available at bhp.com/governance Tenure At the end of FY2021, Malcolm Broomhead, who was appointed in March 2010, had served on the Board for more than nine years. In light of the retirement of both Susan Kilsby and Anita Frew at the end of the 2021 AGMs, the Board has requested that Mr Broomhead seek re-election at the 2021 AGMs for a further year. Mr Broomhead would step down from the Sustainability Committee and Nomination and Governance Committee following the AGMs but remain on the Board. The Board supports Mr Broomhead's re-election given his extensive knowledge of BHP and the mining and resources sector and the proposed corporate transaction that the Group is undertaking at this time. The Board does not believe his tenure interferes with his ability to act in the best interests of BHP. The Board believes he continues to demonstrate strong independence of character and judgement, and has not formed associations with management (or others) that might compromise his ability to exercise independent judgement or act in the best interests of the Group. The Board has been undergoing a process of renewal and, recognising the importance of continuity on the Board and Mr Broomhead's expertise, considers his continued service to be in the best interests of shareholders. Relationships and associations Some of the Directors hold or have previously held positions in companies that BHP has commercial relationships with. Those positions and companies are listed in the Director profiles in section 2.1.2 and in past Annual Reports. The Board has assessed the relationships between the Group and the companies in which our Directors hold or held positions and has concluded that the relationships do not interfere with the Directors' exercise of objective, unfettered or independent judgement or their ability to act in the best interests of BHP. For example, Mr Broomhead was a Director of Orica Limited (a company BHP has commercial dealings with) during FY2021, and Mr Cockerill was also a Director of Orica until August 2019. Orica provides commercial explosives, blasting systems and mineral processing chemicals and services to the mining and resources industry, among others. Mr Cockerill was appointed to the Orica Board in 2010 (prior to his appointment to the BHP Board) and Mr Broomhead was appointed to the Orica Board in 2016 (after his appointment to the BHP Board). At the time of Mr Broomhead's appointment to the Board of Orica, and at the time of Mr Cockerill's appointment to the Board of BHP, the BHP Board assessed the relationship between BHP and Orica and determined (and remains satisfied) that Mr Broomhead and Mr Cockerill were (and Mr Broomhead remains during FY2021) able to apply objective, unfettered and independent judgement and to act in the best interests of BHP. Conflicts of interest BHP Group Plc's Articles of Association allow the Directors to authorise conflicts and potential conflicts where appropriate. A procedure operates to ensure the disclosure of conflicts and for the consideration and, if appropriate, the authorisation of those conflicts by non-conflicted Directors. The Nomination and Governance Committee supports the Board in this process by reviewing requests from Directors for authorisation of situations of actual or potential conflict and making recommendations to the Board. It also regularly reviews any situations of actual or potential conflict that have previously been authorised by the Board and makes recommendations on whether the authorisation remains appropriate. In addition, in accordance with Australian law, if a situation arises for consideration where a Director has a material personal interest, the affected Director takes no part in decision-making unless authorised by non-interested Directors. Provisions for Directors' interests are set out in the Constitution of BHP Group Limited. 86 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.1.10 Risk and Audit Committee Report Terry Bowen Chair, Risk and Audit Committee Role and focus The Risk and Audit Committee (RAC) oversees and monitors financial reporting, other periodic reporting, external and internal audit, capital management, and risk (including effectiveness of the systems of risk management and internal control). More information on the role and responsibilities of the Risk and Audit Committee can be found in its terms of reference, which are available at bhp.com/governance. UK committee membership requirements The Board is satisfied that Terry Bowen meets the criteria for recent and relevant financial experience as outlined in the UK Code, the competence in accounting and auditing as required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rules and the audit committee financial expert requirements under the US Securities and Exchange Commission Rules. In addition, he is the Board's nominated 'audit committee financial expert' for the purposes of the US Securities and Exchange Commission Rules. The Board is satisfied that the members of the Committee as a whole have competence relevant to the mining sector for the purposes of the FCA Disclosure Guidance and Transparency Rules. The Board is also satisfied that the Committee meets the independence criteria under Rule 10A-3 of the Exchange Act. For information on Committee members' qualifications, which include competence relevant to the mining sector, refer to section 2.1.2. Committee activities in FY2021 included: Integrity of Financial External auditor Effectiveness Risks of climate Other governance Statements and and integrity of the of systems of change and its matters funding matters audit process internal control and potential impacts on - Samarco dam failure - Accounting matters - External audit report risk management measurement in the provision, closure and for consideration, - Management and - Material risk reports financial statements rehabilitation provision materiality limits, external auditor and consideration - Climate change - Disputes and half-year and full- closed sessions of approach to financial litigation updates year results emerging risks statement disclosures - Sarbanes-Oxley - Audit plan, review - Group risk profile - Closure, rehabilitation of performance and - Climate change and reserves and Act of 2002 (SOX) quality of service and monitoring considerations in resources updates compliance performance against key judgements - External auditor - Financial governance risk appetite through and estimates independence and procedures key risk indicators - Consistency between non-audit services - Internal audit reports, narrative reporting - Funding, loans and annual internal audit on climate risks with guarantees updates plan and review of the accounting performance of the assumptions Internal Audit and Advisory team - Ethics and Investigations reports including on sexual harassment, compliance reports, and grievance and investigation processes Fair, balanced and understandable The RAC confirmed its view to the Board that BHP's 2021 Annual Report taken as a whole is fair, balanced and understandable. For the Board's statement on the Annual Report, refer to the Directors' Report in section 2.3. In making this assessment, the RAC considers the substantial governance framework that is in place for the Annual Report. This includes management representation letters, certifications, RAC oversight of the Financial Statements and other financial governance procedures focused on the financial section of the Annual Report, together with verification procedures for the narrative reporting section of the Annual Report. Integrity of Financial Statements The RAC assists the Board in assuring the integrity of the Financial Statements. The RAC evaluates and makes recommendations to the Board about the appropriateness of accounting policies and practices, areas of judgement, compliance with accounting standards, stock exchange and legal requirements and the results of the external audit. BHP Annual Report 2021 87

2.1 Corporate Governance Statement continued CEO and CFO assurance For the FY2021 full year and half year, the CEO and CFO have certified that in their opinion, BHP's financial records have been properly maintained and the FY2021 Financial Statements present a true and fair view of our financial condition and operating results and are in accordance with accounting standards and applicable regulatory requirements. The CEO and CFO have also certified to the Board that this opinion was formed on the basis of a sound system of risk management and internal control and the system is operating efficiently and effectively. The RAC considered these certifications when recommending the Financial Statements to the Board for approval. Significant issues In addition to the Group's key judgements and estimates disclosed throughout the FY2021 Financial Statements, the Committee also considered the following significant issues relating to financial reporting: Divestment of interests in certain of the Group's assets The Committee examined management's review of impairment triggers and potential impairment charges for certain of the Group's assets that were subject to divestment processes throughout the year. While the processes were underway, prior to receipt of bids, considerations were consistent with the approach to the Group's other long-term assets as presented below. The Committee concurred with management's conclusion on significant impairments recognised in relation to New South Wales Energy Coal and Cerrejón, including associated deferred tax assets. The Committee also reviewed other potential Financial Statements impacts, including classification and disclosure as assets held for sale and Discontinued operations. Conclusions from these reviews are reflected in notes 3 'Exceptional items', 13 'Impairment of non-current assets' and 31 'Investments accounted for using the equity method' in section 3. Carrying value of other long-term assets The assessment of carrying values of long-term assets uses a number of significant judgements and estimates. The Committee examined management's review of impairment triggers and potential impairment charges or reversals for the Group's cash generating units. Specific consideration was given to market conditions for the Group's commodities, including the impacts of climate change, along with key assumptions underpinning asset valuations. Assumptions include the most recent short, medium and long-term price forecasts, expected production volumes and updated development plans, operating and capital costs, discount rates and other market indicators of fair value. The Committee concurred with management's conclusion on the significant impairment recognised in relation to the Group's Potash assets, including associated deferred tax assets, and that no impairment reversals were appropriate. The results of the Olympic Dam impairment assessment were reviewed and the Committee concurred with management that no impairment was required. Conclusions from these reviews are reflected in note 13 'Impairment of non-current assets' in section 3. Climate change in financial reporting While the Group's understanding of evolving climate risks continues to develop, the potential financial implications, along with appropriate disclosure, are an area of focus for the Committee. The Committee was informed of and acknowledged global trends, including increased disclosure within financial statements and more broadly. Specifically, the Committee considered a request from the Institutional Investors Group on Climate Change (IIGCC) for Paris-aligned financial statements and disclosure of material climate risks and the potential impacts to financial statements. The Committee considered financial statement disclosures and how the Group's greenhouse gas emissions reduction commitments and climate change scenarios, including those aligned with the Paris Agreement goals, are reflected in the Group's key judgements and estimates used in the preparation of the Group's FY2021 finance statements. This included consideration of portfolio impacts, demand for the Group's commodities and associated price outlooks, costs of decarbonisation and Scope 3 emissions considerations. Specific focus was also given to the potential impact on impairment assessments and the expected timing and cost of closure activities. The Committee reviewed the approach proposed by management to provide additional disclosure in relation to the potential financial statement impacts of climate change, including under a Paris-aligned 1.5°C scenario. The Committee, recognising the evolving nature of climate change risks and responses, concluded that climate change has been appropriately considered by management in key judgements and estimates and concurred with the disclosures proposed by management. For more information refer to the Basis of Preparation in section 3 and the Climate change risk factor in section 1.16 88 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Samarco dam failure On 5 November 2015, the Samarco Mineração S.A (Samarco) iron ore operation in Minas Gerais, Brazil experienced a tailings dam failure that resulted in a release of mine tailings, flooding the community of Bento Rodrigues and impacting other communities downstream. Samarco is jointly owned by BHP Brasil and Vale S.A. BHP Brasil's 50 per cent interest in Samarco is accounted for as an equity accounted joint venture investment. Samarco's provisions and contingent liabilities The Committee reviewed updates to matters relating to the Samarco dam failure, including developments on existing and new legal proceedings, judicial reorganisation and changes to the estimated costs of remediation and compensation. BHP Brasil's loss from Equity Accounted Investments includes impairments arising from working capital funding provided to Samarco and revisions to the Samarco dam failure and Germano decommissioning provisions during the year ended 30 June 2021. Potential direct financial impacts to BHP Brasil The Committee considered: - changes to the estimated cost of remediation and compensatory programs under the Framework Agreement - developments in existing and new legal proceedings, including judicial reorganisation, on the provision related to the Samarco dam failure and related disclosures - the provisions recognised and contingent liabilities disclosed by BHP Brasil or other BHP entities Based on currently available information, the Committee concluded that the accounting for the equity investment in Samarco, the provision recognised by BHP Brasil (including the decommissioning of the Germano tailings dam complex) and contingent liabilities disclosed in the Group's Financial Statements are appropriate. For more information refer to note 4 'Significant events - Samarco dam failure' in section 3 Closure and rehabilitation provisions Determining the closure and rehabilitation provision is a complex area requiring significant judgement and estimates, particularly given the timing and quantum of future costs, the unique nature of each site and the long timescales involved. The Committee considered the various changes in estimates for closure and rehabilitation provisions recognised during the year, including a reduction to the discount rates applied. Specific consideration was given to ongoing and recently completed study, survey and characterisation activity, changes to current cost estimates and the expected timing of closure activities. The Committee concluded that the assumptions and inputs for closure and rehabilitation cost estimates were reasonable and the related provisions recorded were appropriate. For more information refer to note 15 'Closure and rehabilitation provisions' in section 3 Impact of amended accounting standards and changes to accounting policies The Group implemented the IFRS Interpretations Committee agenda decision 'Income Taxes - Multiple tax consequences of recovering an asset' on a retrospective basis. The Committee reviewed management's analysis of the accounting outcomes, including the recognition of goodwill relating to Olympic Dam. In addition, the Committee considered and approved the early adoption, for FY2021, of further amendments to certain accounting standards relating to interest rate benchmark reforms. For more information refer to note 39 'New and amended accounting standards and interpretations and changes to accounting policies' in section 3 Impact of COVID-19 The Committee considered the impacts of the global COVID-19 pandemic on the Group's FY2021 financial reporting, including the recognition and disclosure of costs incurred by the Group that are directly attributable to COVID-19. The Committee concluded that the disclosure of costs directly attributable to COVID-19 was appropriate. For more information refer to note 3 'Exceptional items' in section 3 BHP Annual Report 2021 89

2.1 Corporate Governance Statement continued United Kingdom (UK) Financial Reporting Council (FRC) reviews Audit Quality Review of the audit of the Company's 2019 Financial Statements During 2020, the Audit Quality Review Team (AQRT) from the UK FRC undertook a review of KPMG LLP's (KPMG) audit of BHP Group Plc's financial statements for the year ended 30 June 2019. KPMG were the auditors of BHP Group prior to Ernst & Young (EY). There were no key findings arising from the AQRT's review. The review findings, which were not considered to be significant, were discussed with KPMG. The company made EY aware of the actions that KPMG had proposed to implement had they still been the auditors of the company and if similar circumstances were to prevail. Review of BHP Group's Annual Report and Accounts The UK FRC carried out a review of the Group's published Annual Report and Accounts for the year ended 30 June 2020. This review considered compliance with reporting requirements and, given the inherent limitations of the review, provided no assurance that the Annual Report and Accounts were correct in all material respects. There were no exchanges of substantive correspondence as a result of this review and the FRC confirmed, based on the review performed, it had no questions or queries that it wished to raise. External Auditor The RAC manages the relationship with the External Auditor on behalf of the Board. It considers the independence and reappointment of the External Auditor each year, as well as remuneration and other terms of engagement and makes a recommendation to the Board. Audit tender and transition BHP confirms that during FY2021, it was in compliance with the provisions of The Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014. Consistent with the UK and EU requirements in regard to audit firm tender and rotation, the Committee conducted an audit tender process during FY2017 to appoint a new external auditor to replace KPMG, resulting in the appointment of EY in 2019. Evaluation of External Auditor and external audit process The RAC evaluates the objectivity and independence of the External Auditor and the quality and effectiveness of the external audit arrangements. As part of this evaluation, the RAC considers specified criteria, including delivering value to shareholders and BHP, and also assesses the adequacy of the external audit process with emphasis on quality, effectiveness and performance. It does so through a range of means, including: - the Committee considers the External Audit Plan, in particular to gain assurance that it is tailored to reflect changes in circumstances from the prior year - throughout the year, the Committee meets with the audit partners, particularly the lead Australian and UK audit engagement partners, without management present - following the completion of the audit, the Committee considers the quality of the External Auditor's performance drawing on survey results. The survey is based on a two-way feedback model where the BHP and EY teams assess each other against a range of criteria. The criteria against which the BHP team evaluates EY's performance include ethics and integrity, insight, service quality, communication, reporting and responsiveness - reviewing the terms of engagement of the External Auditor - discussing with the audit engagement partners the skills and experience of the broader audit team - reviewing audit quality inspection reports on EY published by the UK Financial Reporting Council in considering the effectiveness of the audit In addition, the RAC reviews the integrity, independence and objectivity of the External Auditor and assesses whether there is any element of the relationship that impairs or appears to impair the External Auditor's judgement or independence. The External Auditor also certifies its independence to the RAC. Non-audit services Although the External Auditor does provide some non-audit services, the objectivity and independence of the External Auditor are safeguarded through restrictions on the provision of these services with some services prohibited from being undertaken. Pre-approved services The RAC has adopted a policy entitled 'Provision of Audit and Other Services by the External Auditor' covering the RAC's pre-approval policies and procedures to maintain the independence of the External Auditor, which reflects the requirements for External Auditors contained in the Ethical Standards published by the UK Financial Reporting Council. The categories of 'pre-approved' services are: - Audit services - work that constitutes the agreed scope of the statutory audit and includes the statutory audits of BHP and its entities (including interim reviews). This category also includes work that is reasonably related to the performance of an audit or review and is a logical extension of the audit or review scope. The RAC monitors the audit services engagements and if necessary, approves any changes in terms and conditions resulting from changes in audit scope, Group structure or other relevant events. - Audit-related and other assurance services - work that is outside the scope of the statutory audit but is consistent with the role of the external statutory auditor, is of an assurance or compliance nature, is work the External Auditor must or is best placed to undertake and is permissible under the relevant applicable standard. 90 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Activities outside the scope of the categories above are not 'pre-approved' and must be approved by the RAC prior to engagement, regardless of the dollar value involved. In addition, any engagement for other services with a value over US$100,000, even if listed as a 'pre-approved' service, requires the approval of the RAC. All engagements for other services whether 'pre-approved' or not and regardless of the dollar value involved are reported quarterly to the RAC. While not prohibited by BHP's policy, any proposed non-audit engagement of the External Auditor relating to internal control (such as a review of internal controls) requires specific prior approval from the RAC. With the exception of the external audit of BHP's Financial Statements, any engagement identified that contains an internal control-related element is not considered to be pre-approved. In addition, while the categories of 'pre-approved' services include a list of certain pre-approved services, the use of the External Auditor to perform these services will always be subject to our overriding governance practices as articulated in the policy. In addition, the RAC did not approve any services during the year ended 30 June 2021 pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of SEC Regulation S-X (provision of services other than audit). Fees paid to BHP's external auditor during FY2021 for audit and other services were US$15.5 million, of which 77 per cent comprised audit fees (including in relation to SOX matters), 11 per cent for audit-related fees and 12 per cent for all other fees. No fees were paid in relation to tax services. Details of the fees paid are set out in note 36 'Auditor's remuneration' in section 3. Our policy on Provision of Audit and Other Services by the External Auditor is available at bhp.com/governance Business Risk and Audit Committees Business Risk and Audit Committees (Business RACs), covering each asset group, assist management in providing the information to enable the RAC to fulfil its responsibilities. They are management committees and perform an important monitoring function in the governance of BHP. Meetings take place annually as part of our financial governance framework. As management committees, the appropriate member of the ELT participates, but the Committee is chaired by a member of the RAC. Each Committee also includes the Group Financial Controller, the Chief Risk Officer and the Group Assurance Officer. Significant operational and risk matters raised at Business RAC meetings are reported to the RAC by management. Risk function The Risk function's role is to create and maintain the Group's Risk Framework, and to support, verify, oversee and provide insight on the effective application of the Risk Framework for all risks, including strategic, operational and emerging risks. The RAC assists the Board with the oversight of risk management, although the Board retains accountability for BHP's risk profile. In addition, the Board requires the CEO to implement a system of control for identifying and managing risk. The Directors, through the RAC, review the systems that have been established, regularly review the effectiveness of those systems and monitor that necessary actions have been taken to remedy any significant failings or weaknesses identified from that review. The RAC regularly reports to the Board to enable the Board to review our Risk Framework at least annually to confirm that the Risk Framework continues to be sound and that BHP is operating with regard to the risk appetite set by the Board. A review was undertaken during FY2021, resulting in refinements to BHP's Risk Framework. For more information, refer to section 1.9. Internal Audit The Internal Audit function is carried out by the Internal Audit and Advisory team (IAA). IAA provides assurance on whether risk management, internal control and governance processes are adequate and functioning. The Internal Audit function is independent of the External Auditor. The RAC evaluates and, if thought fit, approves the terms of reference of IAA, the staffing levels and its scope of work to ensure it is appropriate in light of the key risks we face. It also reviews and approves the annual internal audit plan and monitors and reviews the effectiveness of the internal audit activities. The RAC approves the appointment and dismissal of the Group Assurance Officer and assesses their performance, independence and objectivity. During FY2021, the Group Assurance Officer reported directly to the RAC, and functional oversight of IAA was provided by the Chief Legal, Governance and External Affairs Officer. Effectiveness of systems of internal control and risk management (RAC and Board) In delegating authority to the CEO, the Board has established CEO limits, outlined in the Board Governance Document. Limits on the CEO's authority require the CEO to ensure there is a system of control in place for identifying and managing risk in BHP. Through the RAC, the Directors regularly review these systems for their effectiveness. These reviews include assessing whether processes continue to meet evolving external governance requirements. The RAC oversees and reviews the internal controls and risk management systems (including procedures, processes and systems for, among other things, budgeting and forecasting, provisions, financial controls, financial reporting and reporting of reserves and resources, compliance, preventing fraud and serious breaches of business conduct and whistle-blowing procedures, protecting information and data systems, and operational effectiveness of the Business RAC structures). Any material breaches of Our Code of Conduct, including breaches of our anti-bribery and corruption requirements, as well as any material incidents reported under our 'speaking up with confidence' requirements are reported quarterly to the RAC by the Chief Compliance Officer. These reports are then communicated to the Board through the report-out process BHP Annual Report 2021 91

2.1 Corporate Governance Statement continued During FY2021, management presented an assessment of the material risks facing BHP and the level of effectiveness of risk management over the material business risks. The reviews were overseen by the RAC, with findings and recommendations reported to the Board. In addition to considering key risks facing BHP, the Board assessed the effectiveness of internal controls over key risks identified through the work of the Board Committees. Having carried out a review during FY2021, the Board is satisfied with the effectiveness of risk management and internal control systems. Management's assessment of internal control over financial reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act). Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements and, even when determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Under the supervision and with the participation of our management, including our CEO and CFO, the effectiveness of BHP's internal control over financial reporting was evaluated based on the framework and criteria established in Internal Controls - Integrated Framework (2013), issued by the Committee of the Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that internal control over financial reporting was effective as at 30 June 2021. There were no material weaknesses in BHP's internal controls over financial reporting identified by management as at 30 June 2021. BHP has engaged our independent registered public accounting firm, EY, to issue an audit report on our internal control over financial reporting for inclusion in the Financial Statements section of the Annual Report and the Annual Report on Form 20-F as filed with the Securities Exchange Commission (SEC). There were no changes in our internal control over financial reporting during FY2021 that materially affected or were reasonably likely to materially affect our internal control over financial reporting. This included COVID-19, which only had a minor impact on internal controls over financial reporting in relation to the number and nature of controls that were impacted. During FY2021, the RAC reviewed our compliance with the obligations imposed by SOX, including evaluating and documenting internal controls as required by section 404 of SOX. Management's assessment of disclosure controls and procedures Management, with the participation of our CEO and CFO, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as at 30 June 2021. Disclosure controls and procedures are designed to provide reasonable assurance that the material financial and non-financial information required to be disclosed by BHP, including in the reports it files or submits under the Exchange Act, is recorded, processed, summarised and reported on a timely basis. This information is accumulated and communicated to BHP's management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. Based on the evaluation, management (including the CEO and CFO) concluded that, as at 30 June 2021, our disclosure controls and procedures are effective in providing that reasonable assurance. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. In the design and evaluation of our disclosure controls and procedures, management was required to apply its judgement in evaluating the cost-benefit relationship of possible controls and procedures. 92 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.1.11 Sustainability Committee Report John Mogford Chair, Sustainability Committee Role and focus The Sustainability Committee oversees and monitors material HSEC matters, including the adequacy of the Group's HSEC Framework and HSEC Management Systems, and the Group's HSEC reporting and performance. This includes consideration of existing HSEC issues, such as climate, safety and Indigenous and human rights, as well as emerging areas of HSEC risk for the Group. More information on the role and responsibilities of the Sustainability Committee can be found in its terms of reference, which are available at bhp.com/governance. HSEC Framework The Group's HSEC Framework consists of: - the Sustainability Committee, which is responsible for assisting the Board in overseeing the adequacy of the Group's HSEC Framework and HSEC Management Systems (among other things) - the Board Governance Document, which establishes the remit of the Board and delegates authority to the CEO, including in respect of the HSEC Management Systems - the HSEC Management Systems, established by management in accordance with the CEO's delegated authority. The HSEC Management Systems provide the processes, resources, structures and performance standards for the identification, management and reporting of HSEC risks and the investigation of any HSEC incidents - a robust and independent internal audit process overseen by the RAC, in accordance with its terms of reference - independent advice on HSEC matters, which may be requested by the Board and its Committees where deemed necessary in order to meet their respective obligations Our approach to sustainability is reflected in Our Charter, which defines our values, purpose and how we measure success, and in our sustainability performance targets, which define our public commitments to HSEC. HSEC considerations are also taken into account in employee and executive remuneration. For more information, refer to Sustainability in section 1.13 and section 2.2. Committee activities in FY2021 included: Assurance and adequacy of Compliance and reporting Performance Other governance matters HSEC Framework and HSEC - Compliance with HSEC legal - Performance of BHP on HSEC - Training and development of Management Systems and regulatory requirements matters, including cultural Committee members - Key HSEC risks, including and updates on key legal and heritage, community relations, - Updates to the Committee's tailings storage facility failure, regulatory changes emissions targets, closure and terms of reference climate change-related - Sustainability reporting, rehabilitation, biodiversity, and risks, fatalities, aviation and including consideration of human rights underground fire or explosion processes for preparation and - Monitoring against the - Asset deep dives providing assurance provided by EY FY2018-FY2022 HSEC updates on key HSEC matters - Modern Slavery Statement performance targets and HSEC performance and goals - Social value metrics - Audit planning and reporting - Performance outcomes on HSEC risks and processes under the HSEC performance - Review of the HSE function targets and setting targets and Group HSE Officer for FY2021 Members of the Sustainability Committee also participated in several site visits during FY2021. Where not limited by COVID-19 travel restrictions, these were in-person site visits, but otherwise were attended virtually. During these site visits, Committee members received briefings on HSEC matters and the management of material HSEC risks, and met with key personnel. These visits offer access to a diverse cross-section of the workforce from frontline through to the leadership team, including, where possible, risk and control owners. For refer information to section 1.13 on the key areas of focus for the Committee, management and the HSE and Community functions Sustainability disclosures The Sustainability Committee oversees the preparation and presentation of sustainability disclosures by management. This year, BHP has again included material sustainability content in this Annual Report. The Sustainability Committee reviewed and recommended to the Board the approval of these disclosures in section 1.12 and 1.13, along with the FY2021 Modern Slavery Statement. These disclosures identify our targets for HSEC matters and our performance against those targets. Our targets rely on fact-based measurement and quality data, and reflect a desire to move BHP to a position of industry leadership. Our sustainability reporting, including additional case studies and a databook of key ESG and sustainability data is available at bhp.com For refer information to sections 1.9 on and our 1.16 material exposure to environmental and social risks and how we manage or intend to manage those risks BHP Annual Report 2021 93

2.1 Corporate Governance Statement continued 2.1.12 Remuneration Committee Report Christine O'Reilly Chair, Remuneration Committee Role and focus The Remuneration Committee oversees and monitors remuneration policy and practices (including the adoption of incentive plans and levels of reward for the CEO and other ELT members), compliance with applicable requirements associated with remuneration matters and the review, at least annually, of remuneration by gender. More information on the role and responsibilities of the Remuneration Committee can be found in its terms of reference, which are available at bhp.com/governance. UK committee membership requirements Christine O'Reilly was appointed Chair of the Remuneration Committee with effect from 1 March 2021. She served on the Committee from her appointment to the Board in October 2020, which provided an appropriate transition to become Chair. She has relevant skills and experience, including her former appointment as a member of the Human Resources and Remuneration Committee of CSL Limited. She therefore satisfies the position in the UK Code that the incoming Chair should have served on a remuneration committee for at least 12 months. Committee activities in FY2021 included: Remuneration of the ELT and the Board Other remuneration matters Other - Remuneration of the CEO, other - Workforce remuneration, policies, practices - Induction, training and ELT members and the Group and engagement development program Company Secretary - Remuneration by gender - Board Committee procedures, - Remuneration arrangements for new - Annual remuneration report including closed sessions ELT members - Update of the Committee terms - Shareholder engagement - The impact of the COVID-19 pandemic of reference - Corporate Governance Code on remuneration provisions compliance - Performance measures, performance - Shareplus enrolment update levels and incentive award outcomes - Long-Term Incentive Plan sector peer group review - Chair fees The Sustainability Committee and the RAC assist the Remuneration Committee in determining appropriate HSEC and financial metrics, respectively, to be included in senior executive scorecards and in assessing performance against those measures. For refer more to the information Remuneration on Report the Committee's in section 2.2 work 2.1.13 Risk management governance structure Identifying and managing risk are central to achieving our purpose. For refer information to section 1.9 on our approach to risk and risk governance, including the role of the BHP Board and its Committees 2.1.14 Management Below the level of the Board, key management decisions are made by the CEO, the ELT, management committees and members of management who have delegated authority. Management committees consider BHP's risks and controls. Strategic risks (threats and opportunities) arising from changes in our business environment are regularly reviewed by the ELT and discussed by the Board. Performance evaluation for executives The performance of executives and other senior employees is reviewed on an annual basis. For the members of the ELT, this review includes their contribution, engagement and interaction at Board level. The annual performance review process considers the performance of executives against criteria designed to capture 'what' is achieved and 'how' it is achieved. All performance assessments of executives include how effective they have been in undertaking their role; what they have achieved against their specified key performance indicators; how they match up to the behaviours prescribed in our leadership model; and how those behaviours align with Our Charter values. A performance evaluation was conducted for all members of the ELT during FY2021. For the CEO, the performance evaluation was led by the Chair of the Board on behalf of all the Non-executive Directors, and was discussed with the Remuneration Committee. 94 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information CEO and management committee responsibilities Chief Executive Officer - Holds delegated authority from the Board - Authority extends to all matters except - CEO has delegated authority to management to achieve the corporate purpose those reserved for the Board's decision committees and individual members of management - but CEO remains accountable to the Board for all authority delegated to him Executive Leadership Team - Established by the CEO, the ELT - Purpose is to provide leadership to BHP, - Is a forum to debate high-level matters has responsibility for the day-to-day determining its priorities and the way it is important to BHP and ensure consistent management of BHP to operate, thereby assisting the CEO in developments of BHP's strategy pursuing the corporate purpose Financial Risk Management Group Investment Review Disclosure Committee Committee Committee Purpose is to assist the CEO to monitor Purpose is to assist the CEO in assessing Purpose is to assist the CEO to overseeing and oversee the management of the investment decisions using a transparent and BHP's compliance with securities dealing financial risks faced by BHP, including: rigorous governance process, such that: and continuous and periodic disclosure - commodity price risk - investments are aligned with BHP's purpose, requirements, including: - counterparty credit risk strategy and Our Charter values as well as - reviewing information that may require the Group's capital priorities and plans disclosure to stock exchanges - currency risk - key risks and opportunities are identified - overseeing disclosure processes to ensure - financing risk and managed information disclosed is timely, accurate - interest rate risk - shareholder value is optimised, on a risk and complete - insurance adjusted basis 2.1.15 Our conduct Our Code of Conduct and Our Charter Our Code of Conduct (Our Code) is based on Our Charter values. Our Code sets out standards of behaviour for our people and includes our policies on speaking up, anti-bribery and corruption. Our Code and Our Charter are accessible to all our people and external stakeholders at bhp.com BHP's EthicsPoint We have mechanisms in place for anyone to raise a query about Our Code, or make a report if they feel Our Code has been breached. EthicsPoint is our system for reporting misconduct and can be used by employees, contractors and external stakeholders, including members of the public to raise concerns about misconduct that has either happened to them or they have witnessed. Reports can be raised in EthicsPoint directly, via an employee or contractor's line leader or via the 24-hour, multilingual call service. Reporters of misconduct can choose to raise their concern anonymously. Reports received are assigned by the Ethics Team to an investigator, line leader or team for investigation or resolution as appropriate, in accordance with internal policy and process documents. The reporting and investigations processes are transparent and summary information is accessible to all BHP employees via BHP's intranet. All reports received in EthicsPoint are reviewed and categorised by the Ethics Team. Once categorised, reports are assigned in accordance with internal policy and processes to an investigator, line leader or appropriate team for resolution. The processes for reporting and investigation are transparent and BHP employees and contractors can access this information via BHP's intranet. External stakeholders can access this via the BHP website. Reports raised via EthicsPoint provide valuable insight into culture and organisational learning. All significant Code of Conduct matters and key trends from investigations are reported to the RAC. These are then reported to the Board as part of its report-out as set out in section 2.1.5. The most serious breaches of Our Code are also reported to the Integrity Working Group, which is accountable for oversight of the operational effectiveness of the Investigations Framework, including oversight of investigations completed by the Central Investigations team. The Integrity Working Group is chaired by the Chief Compliance Officer and comprises of a number of senior leaders across BHP. BHP Annual Report 2021 95

2.1 Corporate Governance Statement continued 2.1.16 Market disclosure We have disclosure controls in place for periodic disclosures, including the Operational Review, our results announcements, debt investor documents (such as the prospectus for the Euro or Australian Medium Term Notes) and Annual Report documents, which must comply with relevant regulatory requirements. More information about these verification processes can be found in the Periodic Disclosure - Disclosure Controls document available at bhp.com/governance To safeguard the effective dissemination of information, we have developed mandatory minimum performance requirements for market disclosure, which outline how we identify and distribute information to shareholders and market participants and sets out the role of the Disclosure Committee in managing compliance with market disclosure obligations. In addition, where an announcement is determined to be material by the Disclosure Committee, the Board receives a copy promptly after it has been made. Where BHP gives a new and substantive investor or analyst presentation, it releases a copy of the presentation materials on the ASX Market Announcements Platform ahead of the presentation. In response to COVID-19, we have introduced extra monitoring and disclosure controls. These have included: increasing the regularity and breadth of information gathered from management (including the Finance, Supply, Marketing, Legal, and Operational teams); more regular updates to the Disclosure Committee; and more regular discussions with UBS (our corporate broker in the UK), as well as our Investor Relations team. This enables BHP to assess the materiality of developments and stay across market expectations, dynamics and emerging best practice. A copy of the market disclosure and communications document is available at bhp.com/governance Copies of announcements to the stock exchanges on which BHP is listed, investor briefings, Financial Statements, the Annual Report and other relevant information can be found at bhp.com. To receive email alerts of news releases, subscribe at bhp.com. 2.1.17 Conformance with corporate governance standards Our compliance with the governance standards in our home jurisdictions of Australia and the United Kingdom, and with the governance requirements that apply to us as a result of our New York Stock Exchange (NYSE) listing and our registration with the Securities Exchange Commission (SEC) in the United States is summarised in this Corporate Governance Statement, the Remuneration Report, the Directors' Report and the Financial Statements. The UK Code (available at frc.org.uk) and the ASX Principles and Recommendations (available at asx.com.au) require the Board to consider the application of the relevant corporate governance principles, while recognising departures from those principles are appropriate in some circumstances. The Board considers that during FY2021 it applied the Principles and complied with the provisions set out in the 2018 edition of the UK Code and complied with the ASX Fourth Edition, with no exceptions. Our Appendix 4G, which summarises our compliance with the ASX Fourth Edition is available at bhp.com/governance BHP Group Limited and BHP Group Plc are registrants with the SEC in the United States. Each company is classified as a foreign private issuer and each has American Depositary Shares listed on the NYSE. We have reviewed the governance requirements applicable to foreign private issuers under SOX, including the rules promulgated by the SEC and the rules of the NYSE, and are satisfied that we comply with those requirements. Under NYSE rules, foreign private issuers such as BHP are required to disclose any significant ways our corporate governance practices differ from those followed by US companies under the NYSE corporate governance standards. After a comparison of our corporate governance practices with the requirements of Section 303A of the NYSE-Listed Company Manual followed by US companies, a significant difference was identified: - Rule 10A-3 of the Exchange Act requires NYSE-listed companies to ensure their audit committees are directly responsible for the appointment, compensation, retention and oversight of the work of the External Auditor unless the company's governing law or documents or other home country legal requirements require or permit shareholders to ultimately vote on or approve these matters. While the RAC is directly responsible for remuneration and oversight of the External Auditor, the ultimate responsibility for appointment and retention of the External Auditor rests with our shareholders, in accordance with UK law and our constitutional documents. However, the RAC does make recommendations to the Board on these matters, which are reported to shareholders. 96 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Compliance with the UK Code This table describes how BHP has applied the Principles of the UK Code More information in section Board leadership Long-term sustainable success we believe we put the long-term sustainable success of BHP 1.6 and 1.14 and our purpose at the centre of what we do. Purpose, values, strategy and culture we renewed our purpose in FY2019 to better capture the 2.1.5 1.6, 1.14, and 2.1.7 1.13, aspirations of all our stakeholders. Performance measurement and control framework. 1.13.3 and 4.8 Responsibilities to shareholders and stakeholders. 1.14, 1.12 and 2.1.6 Workforce policies and practices. 1.6.2, 1.14, 1.12 and 2.1.6 Composition, Appointments and succession planning we have a rigorous process in place for Board 2.1.9 succession appointments and to consider succession having regard to diversity of gender, social and ethnic and evaluation backgrounds and personal strengths. Skills matrix we have an appropriate mix of skills, experience and knowledge on the Board and 2.1.7 and 2.1.9 in 2018 revised our skills matrix (section 2.1.7). Section 2.1.9 provides information on tenure and Board renewal. Director review reviews are undertaken on the contribution of each Director to the work of 2.1.8 the Board and its Committees, the expectations of Directors as specified in BHP's governance framework and the performance of Directors. The review confirmed that each Director continues to contribute effectively. Division of Chair of the Board the Chair leads the Board and is responsible for its effectiveness and the effective 2.1.3 responsibilities contribution from all Non-executive Directors. Board composition the Board operates effectively with the appropriate balance of executives and 2.1.3 non-executives and believes the roles of the Chair and the CEO should be separated. Non-executive Directors have sufficient time to meet their responsibilities when we appoint new 2.1.2 and 2.1.7 Directors we ensure they have sufficient time to undertake their responsibilities and are able to offer challenge, strategic guidance and specialist advice. Time and resources the Board ensures it has the necessary time, resources, policies and processes 2.1.3 and 2.1.8 in place as part of its evaluation process. Audit Risk and Internal and external audit independence we understand the importance of ensuring these lines 2.1.10 Internal Control of defence remain independent. Fair balanced and understandable the Board presents a fair balanced and understandable 2.1.10 assessment of BHP's position and prospects. Management and oversight of risk our risk and control environment is monitored and overseen by 2.1.10 1.9, and 2.1.5, 2.1.11 the Risk and Audit Committee. The Board, Risk and Audit Committee, and Sustainability Committee considered emerging and principal risk during the year. Remuneration Policies and practices remuneration is designed to support our strategy and long-term 2.2 sustainable success. Formal and transparent procedure we have formal and transparent procedures in place, 'Shareholder 2.2 and and routinely engage with investors for their feedback. engagement' 2.1.6 in Use of discretion we have used discretion to adjust the formulaic remuneration outcomes. 2.2 The information specified in the UK FCA Disclosure Guidance and Transparency Rules, DTR 7.2.6, is located elsewhere in this Annual Report. The Directors' Report in section 2.3 provides cross-references to where the information is located. This Corporate Governance Statement was current and approved by the Board on 2 September 2021 and signed on its behalf by: Ken MacKenzie Chair 2 September 2021 BHP Annual Report 2021 97

2.2 Remuneration Report In this section: 2.2.1 Annual statement by the Remuneration Committee Chair 99 2.2.2 Remuneration policy report 103 Remuneration policy for the Executive Director 103 Remuneration policy for Non-executive Directors 107 2.2.3 Annual report on remuneration 108 Remuneration for the Executive Directors (the CEOs) 108 Remuneration for other Executive KMP (excluding the CEO) 115 Remuneration for Non-executive Directors 117 Remuneration governance 118 Other statutory disclosures 119 This Remuneration Report describes the remuneration policies, practices, outcomes and governance for the KMP of BHP. BHP's DLC structure means that we are subject to remuneration disclosure requirements in the United Kingdom and Australia. This results in some complexity in our disclosures, as there are some key differences in the requirements and the information that must be disclosed. For example, UK requirements give shareholders the right to a binding vote on the remuneration policy every three years and as a result, the remuneration policy needs to be described in a separate section in the Remuneration Report. Our remuneration policy is set out in section 2.2.2. In Australia, BHP is required to make certain disclosures for KMP as defined by the Australian Corporations Act 2001, Australian Accounting Standards and IFRS. The UK requirements focus on the remuneration of Executive and Non-executive Directors. At BHP, this is our Board, including the CEO, who is our sole Executive Director. In contrast, the Australian requirements focus on the remuneration of KMP, defined as those who have authority and responsibility for planning, directing and controlling the activities of the Group directly or indirectly. KMP includes the Board, as well as certain members of our senior executive team. After due consideration, the Committee has determined the KMP for FY2021 comprised the following roles: all Non-executive Directors, the CEO, the Chief Financial Officer, the President Minerals Australia, the President Minerals Americas, and the President Petroleum. The following individuals have held their positions and were KMP for the whole of FY2021, unless stated otherwise: Mike Henry, CEO and Executive Director Edgar Basto, President Minerals Australia Peter Beaven, Chief Financial Officer (to 30 November 2020) David Lamont, Chief Financial Officer (from 1 December 2020) Daniel Malchuk, President Minerals Americas (to 31 October 2020) Geraldine Slattery, President Petroleum Ragnar Udd, President Minerals Americas (from 1 November 2020) Non-executive Directors see 'Remuneration for Non-executive Directors' in section 2.2.3 for details of the Non-executive Directors, including dates of appointment or cessation (where relevant) Abbreviation Item Abbreviation Item AGM Annual General Meeting KMP Key Management Personnel CDP Cash and Deferred Plan KPI Key Performance Indicator CEO Chief Executive Officer LTIP Long-Term Incentive Plan DEP Dividend Equivalent Payment MAP Management Award Plan DLC Dual Listed Company MSR Minimum Shareholding Requirement ELT Executive Leadership Team ROCE Return on Capital Employed GHG Greenhouse Gas STIP Short-Term Incentive Plan HSEC Health, Safety, Environment and Community TSR Total Shareholder Return IFRS International Financial Reporting Standards 98 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.2.1 Annual statement by the Remuneration Committee Chair Christine O'Reilly Chair, Remuneration Committee Dear Shareholders, I am pleased to introduce BHP's Remuneration Report for the financial year to 30 June 2021, my first as Chair of BHP's Remuneration Committee. During FY2021, the Committee continued its focus on achieving remuneration outcomes that fairly reflect the performance of BHP and the contribution of our employees, and which are aligned to the interests of shareholders and other key stakeholders. During FY2021, COVID-19 has remained a significant source of uncertainty across the world. While the emergence and deployment of successful vaccines is reason for optimism, the pandemic continues to have widespread impacts on lives, society and the global economy. In the face of this, BHP employees have operated in line with our purpose and values, working effectively to keep the business performing strongly, and keeping each other safe. Our approach Our Charter sets out our values, placing health and safety first, upon which the Remuneration Committee places great weight in the determination of performance-based remuneration outcomes for BHP executives. Our Charter also sets out our purpose, our strategy and how we measure success. The Committee is guided by Our Charter and aims to support our executives in taking a long-term approach to decision-making in order to build a sustainable and value-adding business. The Committee is focused on having and applying a remuneration policy and approach that supports the Group's strategy and enables us to attract, retain and motivate the executives in different geographies critical to delivering the best outcomes for all BHP stakeholders. In addition, as BHP is a global organisation, the Committee is cognisant of the need to navigate the priorities and expectations of multiple jurisdictions. Our policy and approach to remuneration remains unchanged; however, we continue to strive for simplification in our programs. We were pleased to again receive strong support for our remuneration policy at the 2020 AGMs, with over 95 per cent voting 'for' the Remuneration Report, and, on average, over 96 per cent support over the past five years. The Committee and the Board continue to incorporate shareholder feedback into our deliberations on pay to ensure it supports BHP's strategy. Remuneration policy FY2021 represents the second year of application of the revised remuneration policy, which was approved by shareholders at the 2019 AGMs with almost 94 per cent of votes in favour. We believe the policy is serving stakeholders well. The key changes approved in 2019 for the CEO, which took effect from 1 July 2019, were: a change in the balance of incentive arrangements comprising: a significantly reduced LTIP grant size of 200 per cent of base salary (on a face value basis), down from 400 per cent a rebalancing to a CDP award with a longer term focus than the former STIP. The CDP outcome is delivered one-third as a cash award, with two-thirds delivered in equity, as two-year and five-year deferred share awards each of equivalent value to the cash award. This aligns participants' incentive remuneration with performance over the short, medium and long-term this rebalancing from LTIP to CDP reduced the leverage in the overall pay arrangements resulting in a 12 per cent reduction in the maximum remuneration for a year a significant reduction in the pension contribution rate to 10 per cent of base salary, down from 25 per cent (noting the estimated workforce average is approximately 11.5 per cent of base salary). As a result of this change, fixed remuneration for the CEO role was reduced by 12 per cent and overall target remuneration reduced by 4 per cent the introduction of a two-year post-retirement shareholding requirement for the CEO A consequence of the transition to the revised remuneration policy is that the FY2021 single total figure of remuneration for the CEO under UK requirements requires disclosure of the total amount of the CDP award earned during FY2021 (i.e. irrespective that some elements of the CDP award are deferred and five-year deferred shares were not a feature of the former STIP), together with the full amount of the pre-existing LTIP award vesting at the end of FY2021, which was granted in 2016 when the CEO was President Operations, Minerals Australia (i.e. when the LTIP award size was double the current grant size). This legacy consequence of remuneration policy transition will continue each year through to FY2024. The Committee strives to implement the remuneration policy in a considered way. We test the CEO's remuneration against CEO roles in other global companies of similar complexity, size, reach and industry. The remuneration also reflects the CEO's responsibilities, location, skills, performance, qualifications and experience. This detailed benchmarking ensures BHP's executive remuneration packages are competitive enough to attract and retain talented executives, without being excessive. External benchmarking shows the CEO's target remuneration package is below the average for similar global companies. Importantly, a significant portion of the CEO's target remuneration package can only be realised as actual remuneration if performance targets are met. In addition, the CEO's remuneration is deliberately tied to the performance of the business, with the majority of the remuneration package intended to be delivered in BHP equity, not cash. The CEO also has a minimum shareholding requirement of five times pre-tax base salary, which continues for two years post-retirement. This aligns the CEO to the experience of BHP's shareholders. BHP Annual Report 2021 99

2.2 Remuneration Report continued Business performance Given the strong link at BHP between executive remuneration and performance, I am pleased to be able to report BHP has performed strongly across a wide range of areas in FY2021. Our people have continued their focus on safety. Our global safety improvement programs are progressing well and our safety leading indicators have continued a strong positive trend underpinning the current safety performance. We have now had over two and a half years without a fatality at our operated assets and we continue to focus on fostering a culture of respect and ensuring our workplace is safe at all times. We have delivered strong underlying operational performance during the year, with record volumes achieved at Western Australia Iron Ore, Goonyella and Olympic Dam, and Escondida maintained average concentrator throughput at record levels. We successfully achieved first production at four major development projects: South Flank, Spence Growth Option, Atlantis Phase 3 and Ruby, all of which were delivered on or ahead of schedule and on budget. We have also progressed significant strategic initiatives during FY2021, including preparing for the investment in Jansen Stage 1, pursuing a merger of our Petroleum business with Woodside, and unifying our corporate structure. We have made strong progress on actions required to meet our commitments to reduce operational GHG emissions. We have established significant renewable power supply agreements for our Kwinana nickel refinery, Queensland Coal operations, and Escondida and Spence copper mines. We have established emissions reduction partnerships with three major steelmakers in China and Japan whose combined output equates to around 10 per cent of global steel production. In shipping, we have also taken a number of actions to help reduce emissions in our value chain: awarded the world's first liquified natural gas fuelled bulk carriers contract and took part in a successful marine biofuel trial. With respect to COVID-19, we remain vigilant and will continue with social distancing and hygiene practices, and other additional protocols as appropriate to protect our workforce and communities. Our Australian operations have effectively managed the rapidly changing environment relating to interstate travel and border access. In Chile, the operating environment is expected to continue to be challenging. The Remuneration Committee is proud of the way BHP's employees have continued to collaborate to solve problems and support each other and their communities. Despite the challenges the COVID-19 pandemic has presented, in FY2021 BHP has again not needed to furlough any employees without pay, did not seek any government assistance, and did not raise additional equity. In addition, BHP's strong, safe operational performance through this year, together with strong profitability, enabled the Board to announce record dividends for FY2021. This continues the delivery of strong and consistent returns to shareholders. Activities of the Committee I would like to thank all members of the Remuneration Committee for their contributions during the past year. In particular, I would like to express my appreciation to my predecessor as Chair, Susan Kilsby, who has provided strong leadership and guidance during her term, as BHP navigated one of the most tumultuous periods in our history. A key element of the Committee's work during the year was the remuneration implications of changes to the BHP ELT, with a number of appointments and departures taking place. David Lamont, Edgar Basto and Ragnar Udd join Mike Henry and Geraldine Slattery as Executive KMP for the purposes of this Remuneration Report, and Peter Beaven and Daniel Malchuk departed BHP having been Executive KMP during FY2021. Information on remuneration arrangements for David, Edgar and Ragnar and the departure arrangements for Peter and Daniel is set out in 'Arrangements for KMP leaving and joining the Group' and 'Executive KMP remuneration table' in section 2.2.3. Other key decisions and activities of the Committee during FY2021 included: considering remuneration for members of the ELT and the Group Company Secretary setting targets for and reviewing outcomes against performance measures and conditions of relevant incentive plans, including the Committee considering its discretion over FY2021 plan outcomes reviewing the fee for the BHP Chair, which remains unchanged commencing early preparations for the re-approval of the remuneration policy at the 2022 AGMs reviewing and adopting changes and improvements flowing from regulatory requirements and guidance, which in turn helps us improve our processes and approaches engaging with shareholders and other key stakeholders undertaking regular reviews of workforce engagement, workforce remuneration and related policies, remuneration by gender and the annual Shareplus enrolment FY2021 CDP The scorecard against which Mike Henry's annual performance as BHP's CEO is assessed comprises stretching performance measures, including HSEC, financial and individual performance elements. For FY2021, the Remuneration Committee has assessed the CEO's performance and determined a CDP outcome of 115 per cent, against the target of 100 per cent (and the maximum of 150 per cent). These outcomes took into account BHP's strong HSEC performance during the year, with no fatalities recorded, and good progress against our Fatality Elimination Program. We also saw positive progress against our climate change targets, which were expanded and strengthened for FY2021 from prior years, and our progress in the management of priority tailings storage facilities was pleasing. As previously mentioned, Our Charter sets out our values, placing health and safety first, upon which the Remuneration Committee places great weight in determining performance-based remuneration outcomes for BHP executives. Good progress has been made at BHP through significant efforts since 2018 to address sexual assault and sexual harassment in the workplace, and completion of work to implement controls has been incorporated into the FY2022 CDP HSEC scorecard. The Committee considers that the efforts to address the risk of sexual assault and sexual harassment could have been further accelerated through stronger coordination of work streams and integrated planning. Accordingly, the Committee has exercised its discretion to make a downwards adjustment to the HSEC outcome of the CDP scorecard by 10 per cent from an initial 33 per cent to a final outcome of 30 per cent out of a target of 25 per cent. This downwards adjustment was applied to the CEO and all other ELT members. Financial and operating performance was strong, even after fully eliminating the very positive impacts of commodity prices during the year, particularly for iron ore. Accordingly, performance was better than the stretching targets set at the commencement of the year. 100 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information While the COVID-19 pandemic continued to impact BHP, society and the global economy, the Group maintained continuity of operations while keeping employees healthy and safe. Despite this, as occurred in FY2020, there were costs and other impacts of COVID-19 to BHP's financial results for FY2021. The direct costs have been recorded as an exceptional item in the Financial Statements, as they were in FY2020. Nevertheless, the Committee concluded that, to the extent the COVID-19 related costs were higher than those included in the approved budget, they should flow through to the financial measures for CDP scorecard purposes, thereby reducing the remuneration outcome for executives from what they would have otherwise been. The Committee considered this was appropriate in light of the global impacts of the COVID-19 pandemic. The CDP outcome for the financial measure was 60 per cent out of a target of 50 per cent. The Committee also considered Mike's performance against his individual objectives. These included projects and initiatives in respect of performance (material improvement in the system that supports exceptional performance), social value (long-term growth in value and returns for all stakeholders), people (right people, right skills, coming together in the right way to support exceptional performance) and portfolio (progress on our strategic objectives to create a winning portfolio and set BHP up for the next 20 years). The Committee considered Mike's performance against his individual objectives to be in line with the target of 25 per cent. While the CEO's CDP scorecard outcome was determined at 115 per cent of target, the CDP scorecard outcomes for other Executive KMP were also on average ahead of target. Likewise, the short-term incentive pool applicable to the majority of BHP employees below the ELT level was above target. These outcomes were considered appropriate and due recognition, given the excellent performance across BHP's whole workforce in the face of the continuing COVID-19 pandemic, where strong safety performance and operational continuity were achieved during FY2021. 2016 LTIP award The vesting outcome for the 2016 LTIP award against the relative TSR performance conditions was 100 per cent. BHP outperformed both the sector peer group and the MSCI World Index significantly. This 100 per cent level of vesting is aligned with the projected vesting outcome communicated to shareholders in the 2019 Remuneration Report at the time of the changes to our remuneration policy, which were approved by shareholders at the 2019 AGMs, and is set out in the chart below. LTIP vesting 100% 35% 90% 100% 100% 100% 100% 100% 100% 80% 70% 60% 70% 65% 50% 58% 40% 48% 30% 20% 10% 0 0% 0% 0% 0% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Vesting year Actual vesting Discretion used Projected vesting As shareholders will recall, one of the key elements of our revised remuneration policy was to reduce the weighting of future LTIP grants as part of the overall CEO remuneration package; however, pre-existing grants would stay on foot and their vesting would be determined with existing service and performance conditions. The Committee is conscious that the granting of the 2016 LTIP awards and the early part of the five-year performance period coincided with a period of lower share prices, driven in part by the Samarco dam failure having occurred on 5 November 2015. At the time of the grant of the 2016 LTIP award, the Committee sought to ensure the Samarco dam failure did not result in an inappropriate LTIP award size due to the lower share price, and reduced the number of awards by 26 per cent from that which would have resulted from the standard grant size calculation. The Committee has reviewed this approach and concluded it was appropriate. In reaching this conclusion, the Committee noted the positive feedback received from shareholders and other investor groups in 2016 on the approach adopted. Having considered the LTIP grant size, the Committee undertook a further exercise to satisfy itself that the TSR performance, which formulaically would result in 100 per cent vesting, had not been inappropriately enhanced by the starting position of the performance period being lower as a consequence of a fall in share price following the Samarco dam failure. This analysis included estimating and removing the impact of the dam failure from the start of the performance period (i.e. removing the impact this would have otherwise had on the TSR outcome due to the lower starting position), reducing the TSR outcome for estimated payments in relation to the Samarco dam failure that may take place beyond the end of the performance period and examining the construct of the comparator group against which TSR performance is measured. While this analysis uses inputs and assumptions that are theoretical, the Committee concluded the analysis was sufficiently robust to provide confidence that the underlying TSR performance was sufficient to support the formulaic vesting of the 2016 LTIP award at 100 per cent. The Committee notes the value of the vested 2016 LTIP award is higher than the value of the award at the time it was granted. With the share price having risen appreciably during the five-year period and strong dividends, 36 per cent of the value realised is the value at grant time and 64 per cent of the value realised is due to share price appreciation and dividends. This value increment due to share price appreciation and dividends is consistent with the experience of shareholders over the period. Consistent with prior practice, the Board and Committee has also conducted a holistic review of business performance over the five years since grant to ensure this level of vesting was appropriate. More information on the 2016 LTIP vesting outcome, including the five-year holistic business review covering HSEC performance, profitability, cash flow, balance sheet health, returns to shareholders, corporate governance and conduct, is included in 'LTIP performance outcomes' and 'Overarching discretion and vesting underpin' in section 2.2.3. BHP Annual Report 2021 101

2.2 Remuneration Report continued More information on the overall remuneration outcomes for the CEO for the year, and how the outcomes are aligned to performance during FY2021, is provided in 'Single total figure of remuneration' in section 2.2.3. Having considered the overall remuneration outcomes for the CEO carefully, as set out above and in section 2.2.3, the Committee concluded it was a fair reflection of performance and the experience of shareholders, and the application of any downwards discretion was not warranted. As at the date of this Report, the CEO's BHP shareholding is in excess of his minimum shareholding requirement of five times pre-tax base salary. FY2022 remuneration For FY2022, the Committee determined that the CEO's base salary remains unchanged at US$1.700 million per annum, as it was at the time of his appointment at the beginning of 2020. In addition, the other components of his total target remuneration (pension contributions, benefits, CDP and LTIP) also remain unchanged. A summary of the CEO's arrangements for FY2022 is set out below. Fixed remuneration CDP LTIP Base salary US$1.700 million Target cash award of 80 per cent of base salary (maximum 120 per cent) The normal LTIP grant is based per annum Plus two awards of deferred shares each of equivalent value to the cash award, on a face value of 200 per cent No change to base salary vesting in two and five years respectively of base salary Pension contribution Three performance categories: Our LTIP awards have rigorous 10 per cent of base salary relative TSR performance HSEC 25 per cent hurdles measured over five years Financial 50 per cent Individual 25 per cent The Committee has also reviewed the base salaries and total target remuneration packages for other Executive KMP and determined there would be no changes to base salaries in September 2021, and other aspects of their remuneration arrangements would also remain unchanged. Remuneration outcomes for the Chair and Non-executive Directors Fees for the Chair and Non-executive Directors are reviewed annually and are benchmarked against peer companies. No changes to the Chair's fee will be made for FY2022. This follows a review in 2017, where a decision was made to reduce the Chair's annual fee by approximately 8 per cent from US$0.960 million to US$0.880 million with effect from 1 July 2017, which followed an earlier reduction, effective 1 July 2015, of approximately 13 per cent from US$1.100 million to US$0.960 million. Base fee levels for Non-executive Directors will also remain unchanged, after they were also reduced effective 1 July 2015 by approximately 6 per cent, from US$0.170 million to US$0.160 million per annum. Prior to the above reductions in fee levels for the Chair and Non-executive Directors, their fees had remained unchanged since 2011. Summary It is with much pleasure that I note the strong performance by BHP across a wide range of areas during FY2021. We deliberately align our executive remuneration outcomes to performance in particular, in our incentive plans where executives' variable remuneration will reflect circumstances where shareholders have been rewarded very well, as delivered this year and measured in share price and dividend performance. As such, the remuneration outcomes for our executives in FY2021 reflect BHP's strong performance, even after favourable commodity price movements for the year are backed out in full under the CDP. Given our need to attract, retain and motivate the executives critical to delivering the best outcomes for all BHP stakeholders, this is an especially pleasing result this year for all concerned, after recent years where the variable pay outcomes have been at the lower end for our executive team. With the COVID-19 pandemic continuing to impact this year, not only for BHP, but also for many other companies, governments, employees, families and communities across the world, I note the ongoing challenges. On behalf of the Remuneration Committee, I would like to recognise the hard work, dedication and sacrifices of our employees. Through their steadfast commitment, they have remained safe and healthy, continued to support their communities, and enabled BHP to generate strong results for all stakeholders. The Committee believes the remuneration outcomes for FY2021 are aligned with BHP's performance and the experience of shareholders, and are also fair in terms of the wider context of global circumstances. We are confident shareholders will recognise this as a continuation of our long-held approach. We look forward to ongoing dialogue with and the support of BHP's shareholders, and I very much look forward to meeting shareholders face-to-face when we are able to do so. As always, we welcome your feedback and comments on any aspect of this Report. Christine O'Reilly Chair, Remuneration Committee 2 September 2021 102 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.2.2 Remuneration policy report BHP has an overarching remuneration policy that guides the Remuneration Committee's decisions. Under UK legislation, shareholders have the opportunity to vote on our remuneration policy every three years, with binding effect in regard to the Directors (including the CEO). Under Australian legislation, shareholders also have the opportunity to vote on our remuneration policy in conjunction with the broader Remuneration Report each year at the AGMs as it applies to all KMP under a non-binding advisory vote. Our remuneration policy, which was approved by shareholders at the 2019 AGMs, has not changed and is repeated below. Remuneration policy for the Executive Director This section only refers to the remuneration policy for our CEO, who is our sole Executive Director. If any other executive were to be appointed an Executive Director, this remuneration policy would apply to that new role. Components of remuneration The following table shows the components of total remuneration, the link to strategy, the applicable operation and performance frameworks, and the maximum opportunity for each component. Remuneration component and link to strategy Operation and performance framework Maximum(1) Base salary Base salary, denominated in US dollars, is broadly aligned with salaries for comparable roles in global 8% increase per A competitive base salary companies of similar global complexity, size, reach and industry, and reflects the CEO's responsibilities, annum (annualised) is paid in order to attract location, skills, performance, qualifications and experience. or inflation if higher and retain a high-quality Base salary is reviewed annually with effect from 1 September. Reviews are informed, but not led, in Australia. and experienced CEO, by benchmarking to comparable roles (as above), changes in responsibility and general economic and to provide appropriate conditions. Substantial weight is also given to the general base salary increases for employees. remuneration for this important role in the Group. Base salary is not subject to separate performance conditions. Pension contributions(2) Pension contributions are benchmarked to comparable roles in global companies and have A pension Provides a market- been determined after considering the pension contributions provided to the wider workforce. contribution rate competitive level of A choice of funding vehicles is offered, including a defined contribution plan, an unfunded retirement of 10% of base post-employment benefits savings plan, an international retirement plan or a self-managed superannuation fund. Alternatively, salary applies. provided to attract and a cash payment may be provided in lieu. retain a high-quality and experienced CEO. Benefits Benefits may be provided, as determined by the Committee, and currently include costs of private Benefits as Provides personal family health insurance, death and disability insurance, car parking and personal tax return preparation determined by the insurances, relocation in the required countries where BHP has requested the CEO relocate internationally, or where BHP's Committee but to a benefits and tax assistance DLC structure requires personal tax returns in multiple jurisdictions. limit not exceeding where BHP's structure gives Costs associated with business-related travel for the CEO's spouse/partner, including for Board meetings, 10% of base salary rise to tax obligations across may be covered. Where these costs are deemed to be taxable benefits for the CEO, BHP may reimburse and (if applicable) multiple jurisdictions, and the CEO for these tax costs. a one-off taxable a market-competitive level relocation allowance of benefits to attract and The CEO is eligible to participate in Shareplus, BHP's all-employee share purchase plan. up to US$700,000. retain a high-quality and A relocation allowance and assistance is provided only where a change of location is made at BHP's experienced CEO. request. The Group's mobility policies generally provide for 'one-off' payments with no material trailing entitlements. CDP Setting performance measures and targets Maximum award The purpose of the CDP The Committee sets a balanced scorecard of short, medium and long-term elements including HSEC, A cash award of is to encourage and focus financial and individual performance measures, with targets and relative weightings at the beginning 120% of base salary the CEO's efforts on the of the financial year in order to appropriately motivate the CEO to achieve outperformance that plus two awards delivery of the Group's contributes to the long-term sustainability of the Group and shareholder wealth creation. of deferred shares strategic priorities for the Specific financial measures will constitute the largest weighting and are derived from the annual each of equivalent relevant financial year to budget as approved by the Board for the relevant financial year. value to the cash deliver short, medium and award, vesting long-term success, and Appropriate HSEC measures that are consistent with the Group's long-term five-year public HSEC in two and five to motivate the CEO to targets, and their weightings, are determined by the Remuneration Committee with the assistance years respectively. strive to achieve stretch of the Sustainability Committee. Individual measures are an important element of effective performance management, and are a Target performance performance objectives. combination of quantitative and qualitative targets. They are aligned with medium and long-term A cash award of The performance measures strategy aspirations that are intended to drive long-term value for shareholders and other stakeholders. 80% of base salary for each year are chosen plus two awards of on the basis that they For HSEC and for individual measures the target is ordinarily expressed in narrative form and will deferred shares each are expected to have a be disclosed near the beginning of the performance period. However, the target for each financial of equivalent value significant short, medium measure will be disclosed retrospectively. In the rare instances where this may not be prudent on to the cash award, and long-term impact on grounds of commercial sensitivity, we will seek to explain why and give an indication of when the vesting in two and five the success of the Group. target may be disclosed. years respectively, for Should any other performance measures be added at the discretion of the Committee, we will determine target performance Delivery of two-thirds of the timing of disclosure of the relevant target with due consideration of commercial sensitivity. on all measures. CDP awards in deferred Assessment of performance shares encourages a longer- At the conclusion of the financial year, the CEO's achievement against each measure is assessed by the term focus aligned to that Remuneration Committee and the Board, with guidance provided by other relevant Board Committees of shareholders. in respect of HSEC and other measures, and a CDP award determined. If performance is below the threshold level for any measure, no CDP award will be provided in respect of that portion of the CDP award opportunity. The Board believes this method of assessment is transparent, rigorous and balanced, and provides an appropriate, objective and comprehensive assessment of performance. In the event that the Remuneration Committee does not consider the outcome that would otherwise apply to be a true reflection of the performance of the Group or should it consider that individual performance or other circumstances makes this an inappropriate outcome, it retains the discretion to not provide all or a part of any CDP award. This is an important mitigation against the risk of unintended award outcomes. BHP Annual Report 2021 103

2.2 Remuneration Report continued Remuneration component and link to strategy Operation and performance framework Maximum(1) Delivery of award Threshold performance CDP awards are provided under the CDP as cash and two awards of deferred shares, each of equivalent value to the cash award, vesting in two and five years respectively. A cash award of The awards of deferred shares comprise rights to receive ordinary BHP shares in the future at the end 40% of base salary of the deferral periods. Before the awards vest (or are exercised), these rights are not ordinary shares plus two awards and do not carry entitlements to ordinary dividends or other shareholder rights; however, a DEP is of deferred shares provided on vested awards. The Committee also has a discretion to settle CDP awards in cash. each of equivalent value to the cash Underpin, malus and clawback award, vesting To ensure any vesting of five-year deferred shares under the CDP is underpinned by satisfactory in two and five performance post-grant, the vesting will be subject to an underpin. This will encompass a holistic years respectively, review of performance at the end of the five-year vesting period, including a five-year view for threshold on HSEC performance, profitability, cash flow, balance sheet health, returns to shareholders, performance corporate governance and conduct. on all measures. Both cash and deferred share CDP awards are subject to malus and clawback as described Minimum award in 'Malus and clawback' in this section 2.2.2. Zero. LTIP Relative TSR performance condition Maximum award The purpose of the LTIP is The LTIP award is conditional on achieving five-year relative TSR(3) performance conditions as set Face value of 200% to focus the CEO's efforts out below. of base salary(6) on the achievement of The relevant comparator group(s) and the weighting between relevant comparator group(s) will sustainable long-term be determined by the Committee in relation to each LTIP grant. value creation and success of the Group (including Level of performance required for vesting appropriate management Vesting of the award is dependent on BHP's TSR relative to the TSR of relevant comparator group(s) of business risks). over a five-year performance period. It also encourages retention 25% of the award will vest where BHP's TSR is equal to the median TSR of the relevant comparator through long-term share group(s), as measured over the performance period. Where TSR is below the median, awards will exposure for the CEO over not vest. the five-year performance Vesting occurs on a sliding scale between the median TSR of the relevant comparator group(s) up period (consistent with to a nominated level of TSR outperformance(4) over the relevant comparator group(s), as determined the long-term nature of by the Committee, above which 100% of the award will vest. resources), and aligns the Where the TSR performance condition is not met, there is no retesting and awards will lapse. long-term interests of the The Committee also retains discretion to lapse any portion or all of the award where it considers CEO and shareholders. the vesting outcome is not appropriate given Group or individual performance. This is an important The LTIP aligns the mitigation against the risk of unintended outcomes. CEO's reward with Further performance measures sustained shareholder The Committee may add further performance conditions, in which case the vesting of a portion wealth creation in of any LTIP award may instead be linked to performance against the new condition(s). However, the excess of that of relevant Committee expects that in the event of introducing an additional performance condition(s), the comparator group(s), weighting on relative TSR would remain the majority weighting. through the relative TSR performance condition. Delivery of award LTIP awards are provided under the LTIP approved by shareholders at the 2013 AGMs. Relative TSR has been When considering the value of the award to be provided, the Committee primarily considers the face chosen as an appropriate value of the award, and also considers its fair value which includes consideration of the performance measure as it allows for conditions.(5) an objective external LTIP awards consist of rights to receive ordinary BHP shares in the future if the performance and assessment over a service conditions are met. Before vesting (or exercise), these rights are not ordinary shares and do sustained period on not carry entitlements to ordinary dividends or other shareholder rights; however, a DEP is provided a basis that is familiar on vested awards. The Committee has a discretion to settle LTIP awards in cash. to shareholders. Underpin, malus and clawback If the specified performance conditions are satisfied in part or in full, to ensure any vesting of LTIP awards is underpinned by satisfactory performance through the performance period, the vesting will be subject to an underpin. This will encompass a holistic review of performance at the end of the five-year performance period, including a five-year view on HSEC performance, profitability, cash flow, balance sheet health, returns to shareholders, corporate governance and conduct. LTIP awards are subject to malus and clawback as described in 'Malus and clawback' in this section 2.2.2. (1) UK annualised regulations it should require not the be disclosure interpreted of that the maximum it is BHP's current that may intention be paid to in award respect an of increase each remuneration of that size in component. total in any one Where year, that or in is expressed each year, and as a instead maximum it is annual a maximum percentage required increase to be disclosed that is under the regulations. (2) Pension respect to contributions pension contribution maximum rate column for Mike wording Henry. has The been FY2019 updated remuneration to reflect report the leadership policy table transition wording of Executive reflected the Director application and CEO of Andrew on 1 January Mackenzie's 2020 and contribution the current rate: application 'For the of existing policy CEO, with the current salary from 1 pension July 2021; contribution 10 per cent rate of base of 25 salary per cent from of 1base July salary 2022 onwards. will reduce For as a follows: new appointment, 25 per cent the of base pension salary contribution to 30 June rate 2020; will 20 be per 10 per cent cent of base of base salary salary from immediately. 1 July 2020;' 15 per cent of base (3) BHP's TSR is a weighted average of the TSRs of BHP Group Limited and BHP Group Plc. (4) Maximum vesting is determined with reference to a position against each comparator group. (5) Fair outcomes value is weighted calculated by by probability, the Committee's taking into independent account the adviser difficulty and of is achieving different to the fair performance value used for conditions IFRS disclosures and the (which correlation do not between take into these account and share forfeiture price conditions appreciation, on the together awards) with . It reflects other performance factors, measure including or volatility altering and the forfeiture level of relative risks. The TSR current outperformance) fair value is. 41 per cent of the face value of an award, which may change should the Committee vary elements (such as adding a (6) In approved order to by ensure shareholders there was in a 2017, fair transitional with potential outcome vesting for five participants, years later the in mid-CY2024. LTIP grant made The first in late five-year CY2019 deferred was based shares on 400 that per result cent from face performance value basis under in accordance the CDP with for FY2020 the remuneration were granted policy in late CY2020 and will first vest five years later in mid-CY2025. The LTIP grant in late CY2020 was made on the reduced 200 per cent face value basis, with potential vesting five years later in mid-CY2025. The Remuneration Committee's discretion in respect of each remuneration component applies up to the maximum shown in the table above. Any remuneration elements awarded or granted under the previous remuneration policies approved by shareholders in 2014 and 2017, but which have not yet vested or been awarded or paid, shall continue to be capable of vesting, awarded or payment made on their existing terms. 104 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Malus and clawback The CDP, STIP and LTIP rule provisions allow the Committee to reduce or clawback awards in the following circumstances: the participant acting fraudulently or dishonestly or being in material breach of their obligations to the Group where BHP becomes aware of a material misstatement or omission in the Financial Statements of a Group company or the Group any circumstances occur that the Committee determines in good faith to have resulted in an unfair benefit to the participant These malus and clawback provisions apply whether or not awards are made in the form of cash or equity, whether or not the equity has vested, and whether or not employment is ongoing. Potential remuneration outcomes The Remuneration Committee recognises market forces necessarily influence remuneration practices and it strongly believes the fundamental driver of remuneration outcomes should be business performance. It also believes overall remuneration should be fair to the individual, such that remuneration levels accurately reflect the CEO's responsibilities and contributions, and align with the expectations of our shareholders, while considering the positioning and relativities of pay and employment conditions across the wider BHP workforce. The amount of remuneration actually received each year depends on the achievement of superior business and individual performance generating sustained shareholder value. Before deciding on the final incentive outcomes for the CEO, the Committee first considers the achievement against the pre-determined performance conditions. The Committee then applies its overarching discretion on the basis of what it considers to be a fair and commensurate remuneration level to decide if the outcome should be reduced. When the CEO was appointed in January 2020 the Board advised him the Committee would exercise its discretion on the basis of what it considered to be a fair and commensurate remuneration level to decide if the outcome should be reduced. In this way, the Committee believes it can set a remuneration level for the CEO that is sufficient to incentivise him and is also fair to him and commensurate with shareholder expectations and prevailing market conditions. The diagram below provides the scenario for the potential total remuneration of the CEO at different levels of performance. Remuneration mix for the CEO Minimum 100% 2,040 Target 27% 18% 36% 19% 7,514 Maximum 17% 18% 36% 29% 11,560 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 Total remuneration US$'000 Fixed remuneration CDP (cash) CDP (deferred shares) LTIP Minimum: consists of fixed remuneration, which comprises base salary (US$1.700 million), pension contributions (10 per cent of base salary) and other benefits (notional 10 per cent of base salary). Target: consists of fixed remuneration, target CDP (a cash award of 80 per cent of base salary plus two awards of deferred shares each of equivalent value to the cash award, vesting in two and five years respectively) and target LTIP. The LTIP target value is based on the fair value of the award, which is 41 per cent of the face value of 200 per cent of base salary. The potential impact of future share price movements is not included in the value of deferred CDP awards or LTIP awards. Maximum: consists of fixed remuneration, maximum CDP (a cash award of 120 per cent of base salary plus two awards of deferred shares each of equivalent value to the cash award, vesting in two and five years respectively), and maximum LTIP (face value of 200 per cent of base salary). The potential impact of future share price movements is not included in the value of deferred CDP awards or LTIP awards. All other things being equal, if the share price at vesting of LTIP awards was 50 per cent higher than the share price at grant, then the total maximum value would be US$13.260 million. The maximum opportunity represented above is the most that could potentially be paid of each remuneration component, as required by UK regulations. It does not reflect any intention by the Group to award that amount. The Remuneration Committee reviews relevant benchmarking data and industry practices, and believes the maximum remuneration opportunity is appropriate. Approach to recruitment and promotion remuneration The remuneration policy as set out in 'Components of remuneration' in this section 2.2.2 will apply to the remuneration arrangements for a newly recruited or promoted CEO, or for another Executive Director should one be appointed. A market-competitive level of base salary will be provided. The pension contributions, benefits and variable pay will be in accordance with the remuneration policy table in 'Components of remuneration' in this section 2.2.2. For external appointments, the Remuneration Committee may determine that it is appropriate to provide additional cash and/or equity components to replace any remuneration forfeited or not received from a former employer. It is anticipated any foregone equity awards would be replaced by equity. The value of the replacement remuneration would not be any greater than the fair value of the awards foregone or not received (as determined by the Committee's independent adviser). The Committee would determine appropriate service conditions and performance conditions within BHP's framework, taking into account the conditions attached to the foregone awards. The Committee is mindful of limiting such payments and not providing any more compensation than is necessary. For any internal CEO (or another Executive Director) appointment, any entitlements provided under former arrangements will be honoured according to their existing terms. Service contracts and policy on loss of office The terms of employment for the CEO are formalised in his employment contract. Key terms of the current contract and relevant payments on loss of office are shown below. If a new CEO or another Executive Director was appointed, similar contractual terms would apply, other than where the Remuneration Committee determines that different terms should apply for reasons specific to the individual or circumstances. BHP Annual Report 2021 105

2.2 Remuneration Report continued The CEO's current contract has no fixed term. It can be terminated by BHP on 12 months' notice. BHP can terminate the contract immediately by paying base salary plus pension contributions for the notice period. The CEO must give 12 months' notice for voluntary resignation(1). The table below sets out the basis on which payments on loss of office may be made. Leaving reason(2)(3) illness, Death, serious disability injury, or total and Cessation of employment as agreed with Voluntary resignation Termination for cause permanent disablement the Board(4) Base salary Paid as a lump sum for No payment will be made. Paid for a period of up to six Paid as a lump sum for the notice period the notice period or months, after which time or progressively over the notice period. progressively over the employment may cease. notice period. Pension Paid as a lump sum for No contributions will Paid for a period of up to six Paid as a lump sum for the notice period contributions the notice period or be provided. months, after which time or progressively over the notice period. progressively over the employment may cease. notice period. Benefits May continue to be No benefits will May continue to be May continue to be provided for year provided during the be provided. provided for a period of in which employment ceases. notice period. Accumulated annual leave up to six months, after Accumulated annual leave entitlements Accumulated annual leave entitlements and any which time employment and any statutory payments will be paid. entitlements and any statutory payments will may cease. May pay repatriation expenses to the statutory payments will be paid. Accumulated annual leave home location where a relocation was be paid. May pay repatriation entitlements and any at the request of BHP. May pay repatriation expenses to the home statutory payments will be paid. Any unvested Shareplus matched expenses to the home location where a relocation shares held will vest in full. location where a relocation was at the request of BHP. May pay repatriation was at the request of BHP. Any unvested Shareplus expenses to the home Any unvested Shareplus matched shares held location where a relocation matched shares held will lapse. was at the request of BHP. will lapse. Any unvested Shareplus matched shares held will vest in full. CDP/STIP cash No cash award will be paid. No cash award will be paid. The Committee has The Committee has discretion to pay and deferred Unvested CDP/STIP Unvested CDP/STIP discretion to pay and/ and/or award an amount in respect of shares deferred shares will lapse. deferred shares will lapse. or award an amount in the CEO's performance for that year. Where the CEO respect of the CEO's Unvested two-year CDP/STIP deferred leaves either Vested but unexercised Vested but unexercised performance for that year. CDP/STIP deferred shares CDP/STIP deferred shares shares and a pro rata portion (based during or after Unvested CDP/STIP on the proportion of the vesting period the end of the will remain exercisable for will remain exercisable for the remaining exercise the remaining exercise deferred shares will vest in served) of unvested five-year CDP financial year, but full and, where applicable deferred shares continue to be held on before an award is period unless the period unless the Committee determines Committee determines become exercisable. the existing terms for the deferral period provided. before vesting (subject to Committee they will lapse. they will lapse. Vested but unexercised CDP/STIP deferred shares discretion to lapse some or all of Vested but unexercised Vested but unexercised the award). CDP/STIP awards CDP/STIP awards will remain exercisable remain subject to malus remain subject to malus for the remaining Vested but unexercised CDP/STIP and clawback. and clawback. exercise period. deferred shares remain exercisable Unvested and vested but for the remaining exercise period, or unexercised CDP/STIP a reduced period, or may lapse, as awards remain subject to determined by the Committee. malus and clawback. Unvested and vested but unexercised CDP/STIP awards remain subject to malus and clawback. LTIP unvested Unvested awards will lapse. Unvested awards will lapse. Unvested awards will vest A pro rata portion of unvested and vested but Vested but unexercised Vested but unexercised in full. awards (based on the proportion of unexercised awards will remain awards will remain Vested but unexercised the performance period served) will awards exercisable for the exercisable for the awards will remain continue to be held subject to the LTIP remaining exercise period, remaining exercise period, exercisable for remaining rules and terms of grant. The balance or for a reduced period, or or for a reduced period, or exercise period. will lapse. may lapse, as determined may lapse, as determined Unvested and vested Vested but unexercised awards will by the Committee. by the Committee. but unexercised awards remain exercisable for the remaining Vested but unexercised Vested but unexercised remain subject to malus exercise period, or for a reduced awards remain subject to awards remain subject to and clawback. period, or may lapse, as determined malus and clawback. malus and clawback. by the Committee. Unvested and vested but unexercised awards remain subject to malus and clawback. (1) Notice period for voluntary resignation updated to reflect the terms of the new Executive Director and CEO employment contract effective on 1 January 2020. (2) If to the appropriate Committee conditions; deems it or necessary, to enter into BHP new may arrangements enter into agreements with the departing with a CEO, CEO which (for may example, include entering the settlement into consultancy of liabilities arrangements) in return for. payment(s), including reimbursement of legal fees subject (3) In the event of a change in control event (for example, takeover, compromise or arrangement, winding up of the Group) as defined in the CDP, STIP and LTIP rules: base salary, pension contributions and benefits will be paid until the date of the change of control event in shares relation would to the vest CDP in full and and, STIP: in the relation Committee to the CDP, may all determine unvested that five-year a cash deferred payment shares be made would in vest respect pro of rata performance (based on the during proportion the current of the financial vesting year period and served all unvested up to the two-year date of deferred the change of control event) the to the Committee extent the may Committee determine determines unvested appropriate LTIP awards (with will either reference (i) be to prorated performance (based against on the proportion the performance of the performance condition up to period the date served of the up change to the date of control of the change event and of control expectations event) regarding and vest future performance) or (ii) be lapsed if the Committee determines the holders will participate in an acceptable alternative employee equity plan as a term of the change of control event (4) Defined or such other as occurring circumstances when a participant that do not leaves constitute BHP resignation due to forced or termination early retirement, for cause. retrenchment or redundancy, termination by mutual agreement or retirement with the agreement of the Group, 106 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Remuneration policy for Non-executive Directors Our Non-executive Directors are paid in line with the UK Corporate Governance Code (2018 edition) and the Australian Securities Exchange Corporate Governance Council's Principles and Recommendations (3rd Edition). Components of remuneration The following table shows the components of total remuneration, the link to strategy, the applicable operation and performance frameworks, and the maximum opportunity for each component. Remuneration component and link to strategy Operation and performance framework Maximum(1) Fees The Chair is paid a single fee for all responsibilities. 8% increase per annum (annualised), Competitive base fees are paid in Non-executive Directors are paid a base fee and relevant committee or inflation if higher in the location in order to attract and retain high- membership fees. which duties are primarily performed, quality individuals, and to provide on a per fee basis. appropriate remuneration for the Committee Chairs and the Senior Independent Director are paid an additional role undertaken. fee to reflect their extra responsibilities. All fee levels are reviewed annually and any changes are effective from 1 July. Committee fees are provided to recognise the additional Fees are set at a competitive level based on benchmarks and advice provided responsibilities, time and by external advisers. Fee levels reflect the size and complexity of the Group, the commitment required. multi-jurisdictional environment arising from the DLC structure, the multiple stock exchange listings and the geographies in which the Group operates. The economic environment and the financial performance of the Group are taken into account. Consideration is also given to salary reviews across the rest of the Group. Where the payment of pension contributions is required by law, these contributions are deducted from the Director's overall fee entitlements. Benefits Travel allowances are paid on a per-trip basis reflecting the considerable travel 8% increase per annum (annualised), Competitive benefits are paid burden imposed on members of the Board as a consequence of the global nature or inflation if higher in the location in in order to attract and retain of the organisation and apply when a Director needs to travel internationally to which duties are primarily performed, high-quality individuals and attend a Board meeting or site visits at our multiple geographic locations. on a per-trip basis. adequately remunerate them for As a consequence of the DLC structure, Non-executive Directors are required to Up to a limit not exceeding 20% the role undertaken, including the prepare personal tax returns in Australia and the UK, regardless of whether they of fees. considerable travel burden. reside in one or neither of those countries. They are accordingly reimbursed for the costs of personal tax return preparation in whichever of the UK and/or Australia is not their place of residence (including payment of the tax cost associated with the provision of the benefit). Variable pay Non-executive Directors are not eligible to participate in any CDP or LTIP (CDP and LTIP) award arrangements. Payments on early termination There are no provisions in any of the Non-executive Directors' appointment arrangements for compensation payable on early termination of their directorship. (1) UK annualised regulations it should require not the be disclosure interpreted of that the maximum it is BHP's current that may intention be paid to in award respect an of increase each remuneration of that size in component. total in any one Where year, that or in is expressed each year, and as a instead maximum it is annual a maximum percentage required increase to be disclosed that is under the regulations. Approach to recruitment remuneration The ongoing remuneration arrangements for a newly recruited Non-executive Director will reflect the remuneration policy in place for other Non-executive Directors, comprising fees and benefits as set out in the table above. No variable remuneration (CDP and LTIP award arrangements) will be provided to newly recruited Non-executive Directors. Letters of appointment and policy on loss of office The standard letter of appointment for Non-executive Directors is available on our website. The Board has adopted a policy consistent with the UK Corporate Governance Code, under which all Non-executive Directors must seek re-election by shareholders annually if they wish to remain on the Board. As such, no Non-executive Directors seeking re-election have an unexpired term in their letter of appointment. A Non-executive Director may resign on reasonable notice. No payments are made to Non-executive Directors on loss of office. How remuneration policy is set The Remuneration Committee sets the remuneration policy for the CEO and other Executive KMP. The Committee is briefed on and considers prevailing market conditions, the competitive environment and the positioning and relativities of pay and employment conditions across the wider BHP workforce. The Committee takes into account the annual base salary increases for our employee population when determining any change in the CEO's base salary. Salary increases in Australia, where the CEO is located, are particularly relevant as they reflect the local economic conditions. The principles that underpin the remuneration policy for the CEO are the same as those that apply to other employees, although the CEO's arrangements have a greater emphasis on and a higher proportion of remuneration in the form of performance-related variable pay. Similarly, the performance measures used to determine variable pay outcomes for the CEO and all other employees are linked to the delivery of our strategy and behaviours that are aligned to the values in Our Charter. Although BHP does not consult directly with employees on CEO and other Executive KMP remuneration, the Group conducts regular employee engagement surveys that give employees an opportunity to provide feedback on a wide range of employee matters. Further, many employees are ordinary shareholders through our all-employee share purchase plan, Shareplus, and therefore have the opportunity to vote on AGM resolutions. In addition, in line with changes to the UK Corporate Governance Code, the Remuneration Committee is considering additional means of engaging with the workforce to explain how executive remuneration aligns with wider Group pay policy. As part of the Board's commitment to good governance, the Committee also considers shareholder views, together with those of the wider community, when setting the remuneration policy for the CEO and other Executive KMP. We are committed to engaging and communicating with shareholders regularly and, as our shareholders are spread across the globe, we are proactive with our engagement on remuneration and governance matters with institutional shareholders and investor representative organisations. Feedback from shareholders and investors is shared with and used as input into decision-making by the Board and Remuneration Committee in respect of our remuneration policy and its application. The Committee considers that this approach provides a robust mechanism to ensure Directors are aware of matters raised, have a good understanding of current shareholder views and can formulate policy and make decisions as appropriate. We encourage shareholders to always make their views known to us by directly contacting our Investor Relations team (contact details available at bhp.com). BHP Annual Report 2021 107

2.2 Remuneration Report continued 2.2.3 Annual report on remuneration This section of the Report shows the impact of the remuneration policy in FY2021 and how remuneration outcomes are linked to actual performance. Remuneration for the Executive Directors (the CEOs) Single total figure of remuneration This section shows a single total figure of remuneration as prescribed under UK requirements. It is a measure of actual remuneration received, rather than a figure calculated in accordance with IFRS (which is detailed in note 24 'Employee share ownership plan' in section 3.1). The components of remuneration are detailed in the remuneration policy table in section 2.2.2. Base Total Total Single total US$('000) salary Benefits(1) Pension(2) fixed CDP(3) LTIP(4) variable figure Mike Henry FY2021 1,700 20 170 1,890 4,692 7,939 12,631 14,521 FY2020(5) 850 6 85 941 1,959 3,169 5,128 6,069 Andrew Mackenzie FY2020(5) 850 55 213 1,118 1,306 1,306 2,424 (1) Includes private family health insurance, spouse business-related travel, car parking and personal tax return preparation in required countries. (2) Mike applied Henry's for a new FY2021 Executive and FY2020 Director pension appointment) contributions . Pension were contributions made in accordance for Andrew with Mackenzie the remuneration in FY2020 policy (until approved the date he by ceased shareholders as CEO in and 2019 Executive (i.e. based Director) on 10 per were cent also of made base salary in accordance which with the remuneration policy approved by shareholders in 2019 (i.e. based on 25 per cent of base salary). Pension contributions for both were made into an international retirement plan. (3) FY2021 vesting CDP of awards award in is FY2021 provided or FY2020. one-third in cash and two-thirds in deferred equity (on the terms of the CDP) as shown in the table below. No discretion was applied to STIP awards when determining (4) time Mike as, Henry's CEO LTIP and Executive award value Director) for FY2021 . The is value based is based on the on full 100 award per he cent received of the award in 2016 vesting, when he including was President a DEP amount Operations, of US Minerals $1.291 million Australia paid (prior in shares. to becoming, The value and delivered with no through proration share applied price for received appreciation in 2015 between when the he was date President of grant and Coal the (prior vesting to becoming, date as prescribed and with no under proration UK requirements applied for time was US as,$ CEO 3.800 and million. Executive Mike Director) Henry's LTIP . The award value value is based for on FY2020 48 per is cent based of on the the award full award vesting, he including a DEP amount of US$0.548 million paid in shares. The value delivered through share price appreciation between the date of grant and the vesting date was US$0.774 million. (5) For pension Mike contributions Henry, the single since total that figure date. of For remuneration Andrew Mackenzie, is calculated the single on the total basis figure of his of appointment remuneration on is 1 calculated January 2020. on the There basis have of his been period no changes as CEO and to his Executive base salary, Director benefit up until entitlements 31 December or 2019. There were no changes to his base salary, benefit entitlements or pension contributions prior to the date of his cessation as CEO and Executive Director. A consequence of the transition to the revised remuneration policy approved by shareholders at the 2019 AGMs which took effect from 1 July 2019, is that the FY2021 single total figure of remuneration for Mike Henry requires disclosure of the full amount of the CDP award earned during FY2021 (i.e. irrespective that some elements of the CDP award are deferred and five-year deferred shares were not a feature of the former STIP) together with the full amount of the pre-existing LTIP award vesting at the end of FY2021 which was granted in 2016 (i.e. when the LTIP award size was double the current grant size). Had the current approved remuneration policy been in place when Mike's 2016 LTIP grant was made, the reported LTIP value for FY2021 would have been US$3.970 million (instead of US$7.939 million in the table above) and the reported single total figure of remuneration for FY2021 would have been US$10.552 million (instead of US$14.521 million in the table above). Changes from prior year outcomes of CDP/STIP and LTIP are set out below. CDP LTIP Mike FY2021 CDP awarded for FY2021 performance. One-third was Based on performance during the five-year period to 30 June Henry provided in cash in September 2021, one-third deferred 2021, 100% of Mike's 192,360 awards from the 2016 LTIP in an equity award that is due to vest in FY2024, and (granted to him when he was President Operations, Minerals one-third deferred in an equity award that is due to Australia before he was appointed CEO and Executive Director) vest in FY2027. have vested. The value of the vested awards is inclusive of a DEP, which is paid in shares. FY2020 CDP awarded for FY2020 performance. One-third was Based on performance during the five-year period to 30 June provided in cash in September 2020, one-third deferred 2020, 48% of Mike's 192,360 awards from the 2015 LTIP (granted in an equity award that is due to vest in FY2023, and to him when he was President Coal before he was appointed one-third deferred in an equity award that is due to CEO and Executive Director) vested, and the remaining awards vest in FY2026. lapsed. The value of the vested awards is inclusive of a DEP, which is paid in shares. Andrew FY2020 Prorated CDP awarded for FY2020 performance. Two-thirds Details of Andrew's vested 2015 LTIP award (which vested after Mackenzie of the award was paid in cash in September 2020 covering Andrew retired from BHP) are set out in section 3.3.24 of the the cash and two-year deferred equity portion. Nothing has 2020 Annual Report. been or will be granted or paid in respect of the remaining one-third of the award i.e. the five-year deferred equity portion. FY2021 CDP performance outcomes The Board and Remuneration Committee assessed the CEO's CDP outcome in light of the Group's performance in FY2021, taking into account the CEO's performance against the KPIs in his CDP scorecard. Having recorded strong safety, operational and financial performance in FY2021 (after fully eliminating the very positive impacts of commodity prices during the year, particularly for iron ore), when assessing performance against the targets set at the commencement of the year the Board and Committee determined the CDP outcome for the CEO for FY2021 at 115 per cent against the target of 100 per cent (which represents an outcome of 77 per cent against maximum). The Board and Committee believe this outcome is appropriately aligned with the shareholder experience and the interests of the Group's other stakeholders. The CEO's CDP scorecard outcomes for FY2021 are summarised in the following tables, including a narrative description of each performance measure and the CEO's level of achievement, as determined by the Remuneration Committee and approved by the Board. The level of performance for each measure is determined based on a range of threshold (the minimum necessary to qualify for any reward outcome), target (where the performance requirements are met), and maximum (where the performance requirements are significantly exceeded). 108 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Summary of outcomes for the CEO Percentage outcome Performance measure for Weighting FY2021 Threshold Target Maximum Mike Henry HSEC 25% 30% Financial 50% 60% Individual 25% 25% Total 100% 115% HSEC The HSEC targets for the CEO are aligned to the Group's suite of HSEC five-year public targets as set out in section 1.13. As it has done for several years, the Remuneration Committee seeks guidance each year from the Sustainability Committee when assessing HSEC performance against scorecard targets. The Remuneration Committee has taken a holistic view of Group performance in critical areas, including any matters outside the scorecard targets that the Sustainability Committee considers relevant. The performance commentary below is provided against the HSEC scorecard targets, which were updated in FY2021 as a consequence of our commitment to clarify and strengthen the links between climate change and executive remuneration. This resulted in a weighting for climate change of 10 per cent under the CDP, which compares to around 4 per cent allocated to climate change in the prior STIP. The targets were set on the basis of operated assets only. HSEC measures Scorecard targets Performance against scorecard targets Measure outcome Significant events No significant (actual level 4) There were no fatalities or other significant HSEC events during Close to maximum. health, safety (including fatalities), FY2021 at operated assets. environment or community events In addition, for a maximum outcome to be awarded, strong progress during the year. was required on the development and implementation of BHP's Fatality Elimination Program in all regions, and this was largely achieved for FY2021. Climate change Steps in place to achieve reported For FY2021, we improved on our operational GHG emissions target Slightly above target. GHG emissions in FY2022 at of 17.0Mt, with an actual result of 16.2Mt. FY2017 level. All operated assets completed the development of decarbonisation Decarbonisation plans developed plans which were incorporated in the capital allocation process. in line with pathways to net zero The new renewable power purchase agreements at Escondida and incorporated into the capital and Spence, both in Chile, remain on track for first power supply in allocation plan process. the first half of FY2022. In addition, in FY2021 we also entered into renewable power purchase agreements for Queensland Coal and Two partnerships formalised Kwinana nickel refinery in Australia. with strategic customers in the steel sector. During the year, memorandums of understanding were signed with China Baowu (China), JFE Steel Corporation (Japan) and HBIS Limited (China) to partner on emissions intensity reduction in integrated steelmaking. We have significantly progressed developing a Phase 1 research and development agreement with China Baowu (which we anticipate will be signed in FY2022) and significant work is also being undertaken in collaboration with our partners to convert the remaining two memorandums of understanding into executed definitive contracts. Management of All priority TSFs are assessed based All priority TSFs are now either within appetite based on key risk Slightly above target. priority Tailings on key risk indicator data, and are indicator data or continued operation outside appetite is approved Storage Facilities either within appetite or continued with remediation progressing to plan. (TSFs) operation outside appetite is We have continued improving our key risk indicator performance approved with remediation with 84% of all key risk indicators for priority TSFs rated either on progressing to plan. target or less risk being taken than target, against a target of 80%. The initial outcome against the HSEC KPI for FY2021 was 33 per cent out of the target of 25 per cent. However, having assessed performance against the FY2021 HSEC KPI, the Sustainability Committee also considered sexual assault and sexual harassment and noted: Good progress has been made in relation to preventing, managing and responding to risks of sexual assault and sexual harassment through significant efforts since 2018, including enhancing controls to prevent incidents, improved reporting processes and in the creation and commencement of a dedicated support service to assist impacted persons. Management acknowledges there were areas where coordination of work streams and integrated planning in relation to work regarding sexual assault and sexual harassment could have been improved, and this may have allowed certain actions to have been taken sooner, including the introduction of increased alcohol restrictions in camps. Aligned targets for implementation of controls have been incorporated into the FY2022 CDP HSEC scorecard with support from a dedicated project management office. In recognition of the opportunity to have enhanced coordination of work streams and integrated planning in relation to sexual assault and sexual harassment, and with the Remuneration Committee being mindful that this is a critical health and safety matter, the Committee, upon the recommendation of the Sustainability Committee, determined a 10 per cent reduction in the overall FY2021 CDP HSEC KPI outcome from 33 per cent to a final outcome of 30 per cent out of the target of 25 per cent. BHP Annual Report 2021 109

2.2 Remuneration Report continued Financial ROCE is underlying profit after taxation (excluding after-taxation finance costs and exceptional items) divided by average capital employed. ROCE is the key financial KPI against which CDP outcomes for our senior executives are measured and is, in our view, a relevant measure to assess the financial performance of the Group for this purpose. While ROCE excludes exceptional items, the Remuneration Committee reviews each exceptional item to assess if it should be included in the result for the purposes of deriving the ROCE CDP outcome. When we are assessing management's performance, we make adjustments to the ROCE result to allow for changes in commodity prices, foreign exchange movements and other material items to ensure the assessment appropriately measures outcomes that are within the control and influence of the Group and its executives. Of these, changes in commodity prices have historically been the most material due to volatility in prices and the impact on Group revenue and ROCE. Financial measure Scorecard targets Performance against scorecard targets Measure outcome ROCE For FY2021, the target for ROCE ROCE of 32.5% was reported by BHP for FY2021. Adjusted for Between target was 13.5%, with a threshold of the factors outlined below, ROCE is 14.3%, which is above target. and maximum. 11.6% and a maximum of 15.0%. The following adjustments were made to ensure the outcomes appropriately reflect the performance of management for the year: The target ROCE is derived from The full elimination of the impacts of very positive movements the Group's approved annual in commodities prices (particularly iron ore) and exchange rates budget. It is the Group's practice to decreased ROCE by 17.4 percentage points. build a material element of stretch performance into the budget. Having reviewed the FY2021 exceptional items (as described in Achievement of this stretching note 3 'Exceptional items' in section 3), the Committee determined ROCE target will result in a target they should not be considered for the purposes of determining the CDP outcome. The threshold FY2021 ROCE CDP outcome, with the exception of the exceptional and maximum are a fair range of item in relation to the costs of the COVID-19 pandemic on BHP's ROCE outcomes that represent a FY2021 results. The Committee concluded the above-budget lower limit of underperformance portion of additional direct costs of COVID-19 should flow through to below which no CDP award the ROCE outcomes for CDP scorecard purposes. The Committee should be made, and an upper considered this was appropriate in light of the continuing global limit of outperformance that impacts of the COVID-19 pandemic. This adjustment reduced ROCE would represent the maximum by 0.3 percentage points. Beyond this, the Committee concluded CDP award. no further action was required in respect of exceptional items. Because a material element Adjustments for other material items ordinarily made to ensure the of stretch performance is built outcomes reflect the performance of management for the year into the budget (and hence the decreased ROCE by 0.5 percentage points. This was mainly due ROCE target derived from the to the elimination of the positive effect on ROCE outcomes of the budget), together with physical reduction in the closing balance sheet due to exceptional items. and regulatory asset constraints, the performance range around The key drivers of the FY2021 ROCE outcome of 14.3% being above the target is subject to a greater target for FY2021 of 13.5% set at the commencement of the year were: level of downside risk than In Minerals Australia, operational performance was strong, with there is upside opportunity. Western Australia Iron Ore achieving record production, Olympic Accordingly, the range between Dam achieving its highest annual copper production level since threshold and target is greater our acquisition in 2005 on the back of improved smelter stability than that between target and and strong underground mine performance, and Queensland Coal maximum. For maximum, the achieving record production at Goonyella. However, this was more Committee takes care not to than offset by higher than budgeted depreciation across most create leveraged incentives that assets and the inclusion of the above-budget portion of additional encourage executives to push direct costs of COVID-19, resulting in a slight overall below-target for short-term performance that ROCE outcome for Minerals Australia. goes beyond our risk appetite In Minerals Americas, driven mainly by Escondida maintaining and current operational capacity. average concentrator throughput at record levels by managing The Committee retains, and has a COVID-19 impacts and optimisation of materials fed to the track record of applying, downward concentrators. This was partially offset by the slower than planned discretion to ensure that the CDP Spence Growth Option concentrator ramp-up due to tailings outcome is appropriately aligned work, permits and water availability, and the inclusion of the with the overall performance of above-budget portion of additional direct costs of COVID-19. the Group for the year, and is fair to management and shareholders. In Petroleum, driven mainly by higher than expected gas demand and improved performance in Australia, combined with lower maintenance activity at Australian operations, partially offset by the inclusion of the above-budget portion of additional direct costs of COVID-19. The outcome against the ROCE KPI for FY2021 was 60 per cent out of the target of 50 per cent. 110 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Individual measures for the CEO Individual measures for the CEO are determined at the commencement of the financial year. The application of personal measures remains an important element of effective performance management. These measures seek to provide a balance between the financial and non-financial performance requirements that maintain our position as a leader in our industry. The CEO's individual measures for FY2021 included contribution to BHP's overall performance and the management team, and also the delivery of projects and initiatives within the scope of the CEO role as specified by the Board, as set out in the table below. Individual measures Individual scorecard targets Performance against scorecard targets Measure outcome Performance BHP Operating System deployment The deployment of the BHP Operating System is Between target on track. tracking better than target on the schedule and and maximum. Enterprise-wide improvement initiatives costs of implementation, and the improvement value established and progressed to plan. identified and delivered to date is in excess of target. The accelerated delivery of cost savings targeted by the end of FY2021 has been achieved, and in-flight initiatives are progressing to plan. Social value Social value plans established for All assets have established social value plans, and also Target. each asset. delivered the FY2021 actions set out in those plans. Reframing the social value narrative 'Reframing the Narrative', marketing segmentation plan agreed and underway. strategy, audience testing and creative concepts were Restructure of the leadership of presented to the Board throughout FY2021, approved Samarco/Fundação Renova oversight. as necessary, and implemented, with strong results received so far. Progress on Samarco claims. Samarco/Fundação Renova leadership was successfully restructured to have Samarco/Fundação Renova overseen by a dedicated person reporting directly to the regional President Minerals Americas, and a dedicated external affairs team was also established. Good progress on Fundação Renova compensation programs, and we have continued to amplify our communications and stakeholder engagement in Brazil, with positive feedback received. People Increase in female participation By 30 June 2021 gender diversity had increased Between threshold by three percentage points. 2.7 percentage points to 29.2%, up from 26.5% and target. Operations Services (OS) increased at 30 June 2020, for a cumulative increase of to 5,000 employees. 11.6 percentage points from 17.6% at 30 June 2016. New Engagement and Perception By 30 June 2021 there were 3,864 OS employees. Survey (EPS) system embedment. The new EPS was successfully implemented during ELT members' development and FY2021 with high levels of participation and a strong succession plans. improvement focus. The ELT transitions were completed in FY2021 (i.e. promotions, recruitment and departures), and updated individual development plans were established for all ELT members. Portfolio Portfolio strategy delivery. Strong progress on delivery of key strategy elements as Target. Exploration and have been publicly announced, including preparing for development performance. the investment in Jansen Stage 1, pursuing a merger of our Petroleum business with Woodside, unifying our corporate Business development structure and the Cerrejón divestment. The process for BHP process improvement. Mitsui Coal and New South Wales Energy Coal is progressing, in line with the two-year timeframe set last year. The metals exploration strategy was refreshed, as presented to the Board in June 2021, and is now in execution. Greenfield exploration activity has increased, with wider geographic coverage and greater focus on using technology to increase identification of ore under cover. Business Development and Exploration teams are working effectively together, with the co-location of senior personnel, which will improve the interactions of the teams, as well as access to new opportunities. In addition, the Business Development team has significantly increased capability during FY2021. Overall, it was considered the performance of the CEO against the individual measures KPI for FY2021 warranted an outcome at the target of 25 per cent. LTIP performance outcomes LTIP vesting based on performance to June 2021 The five-year performance period for the 2016 LTIP award ended on 30 June 2021. The CEO's 2016 LTIP award comprised 192,360 awards (granted as President Operations, Minerals Australia prior to his appointment as CEO). Vesting is subject to achievement of the relative TSR performance conditions and any discretion applied by the Remuneration Committee (see 'Overarching discretion and vesting underpin' in this section 2.2.3). Testing the performance condition For the award to vest in full, TSR must exceed the Peer Group TSR (for 67 per cent of the award) and the Index TSR (for 33 per cent of the award) by an average of 5.5 per cent per year for five years, being 30.7 per cent in total compounded over the performance period from 1 July 2016 to 30 June 2021. TSR includes returns to BHP shareholders in the form of share price movements along with dividends paid and reinvested in BHP (including cash and in-specie dividends). BHP's TSR performance was positive 266.5 per cent over the five-year period from 1 July 2016 to 30 June 2021. This is above the weighted median Peer Group TSR of positive 213.9 per cent and above the Index TSR of positive 99.8 per cent over the same period. This level of performance results in 100 per cent vesting for the 2016 LTIP award. The value of the CEO's vested 2016 LTIP award has been reported in 'Single total figure of remuneration' in this section 2.2.3. BHP Annual Report 2021 111

2.2 Remuneration Report continued The graph below shows BHP's performance relative to comparator groups. The Committee is conscious the granting of the 2016 LTIP awards and the early part of the five-year performance period coincided with a period of share price reductions, driven in part by the Samarco dam failure having occurred on 5 November 2015. The number of LTIP awards to be granted in December 2016 was to be determined using the share price and US$/A$ exchange rate over the 12 months up to and including 30 June 2016. Using a 12-month average share price of A$20.3326 and a 12-month average US$/A$ exchange rate of 0.728415 (each up to and including 30 June 2016), the number of LTIP awards derived for Mike Henry was 259,982. However, to ensure Mike (and other Executive KMP) did not receive a larger number of awards as a result of the lower BHP share price since the Samarco dam failure in Brazil on 5 November 2015, as the Committee was conscious of shareholder expectations in this respect, the Committee instead granted 192,360 LTIP awards to Mike in December 2016, a reduction of 26 per cent. This was the same number that was granted to Mike in the prior year in December 2015, which in itself had been reduced from the formulaically derived amount to ensure the Samarco dam failure did not inflate the 2015 LTIP award grant size. The Committee has reviewed this approach and concluded it was appropriate. Having considered the LTIP grant size, the Committee undertook a further exercise to satisfy itself that the TSR performance, which formulaically would result in 100 per cent vesting, had not been inappropriately enhanced by the starting position of the performance period being lower as a consequence of a fall in share price following the Samarco dam failure. This analysis included estimating and removing the impact of the dam failure from the start of the performance period (i.e. removing the impact this would have otherwise had on the TSR outcome due to the lower starting position), reducing the TSR outcome for estimated payments in relation to the Samarco dam failure that may take place beyond the end of the performance period and examining the construct of the comparator group against which TSR performance is measured. While this analysis uses inputs and assumptions that are theoretical, the Committee concluded the analysis was sufficiently robust to provide confidence that the underlying TSR performance was sufficient to support the formulaic vesting of the 2016 LTIP award at 100 per cent. The value of the vested 2016 LTIP award is higher than the value of the award at the time it was granted. With the share price having risen appreciably during the five-year period and strong dividends, 36 per cent of the value realised is the value at grant time and 64 per cent of the value realised is due to share price appreciation and dividends. This value increment due to share price appreciation and dividends is consistent with the experience of shareholders over the period. The following chart shows the cumulative outcomes of the decisions above, with the original notional grant size as if it had vested in full, the grant size reduction due to the Samarco dam failure, and the final vested value of US$7.939 million, split between the original grant value and share price appreciation and dividends. LTIP allocated during FY2021 Following shareholder approval at the 2020 AGMs, LTIP awards (in the form of performance rights) were granted to Mike Henry on 20 October 2020. The face value and fair value of the awards granted on 20 October 2020 are shown in the table below. The face value of Mike's award was 200 per cent of his base salary of US$1.700 million at the time of grant. The fair value of the awards is ordinarily calculated by multiplying the face value of the award by the fair value factor of 41 per cent (for the current plan design, as determined by the independent adviser to the Committee). The number of LTIP awards for Mike as detailed below was determined based on the US$ face value of the LTIP awards and calculated using the average share price and US$/A$ exchange rate over the 12 months up to and including 30 June 2020. 112 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Number of Face value Face value Fair value Fair value LTIP awards US$('000) % of salary US$('000) % of salary % of max(1) Mike Henry 140,239 3,400 200 1,394 82 100 (1) The allocation is 100 per cent of the maximum award that was permitted under the remuneration policy approved by shareholders at the 2019 AGMs. Terms of the LTIP award In addition to those LTIP terms set in the remuneration policy for the CEO approved by shareholders in 2019, the Remuneration Committee has determined: Performance period 1 July 2020 to 30 June 2025 Performance conditions An averaging period of six months will be used in the TSR calculations. BHP's TSR relative to the weighted median TSR of sector peer companies selected by the Committee (Peer Group TSR) and the MSCI World Index (Index TSR) will determine the vesting of 67% and 33% of the award, respectively. Each company in the peer group is weighted by market capitalisation. The maximum weighting for any one company is 25% and the minimum is set at 0.4% to reduce sensitivity to any single peer company. For the whole of either portion of the award to vest, BHP's TSR must be at or exceed the weighted 80th percentile of the Peer Group TSR or the Index TSR (as applicable). Threshold vesting (25% of each portion of the award) occurs where BHP's TSR equals the weighted 50th percentile (i.e. the median) of the Peer Group TSR or the Index TSR (as applicable). Vesting occurs on a sliding scale between the weighted 50th and 80th percentiles. Sector peer Resources (85%): Anglo American, Fortescue Metals, Freeport-McMoRan, Glencore, Rio Tinto, Southern Copper, group companies(1)(2)(3) Teck Resources, Vale. Oil and gas (15%): Apache, BP, Canadian Natural Res., Chevron, ConocoPhillips, Devon Energy, EOG Resources, ExxonMobil, Occidental Petroleum, Royal Dutch Shell, Woodside Petroleum. (1) Sector practical, peer reflects group the companies weighting are of selected the value by of the commodities Committee produced on the basis by BHP of the . The commodities targeted outcome they produce is that, and to the their extent market practical, capitalisations, the vesting such outcome that the is sector driven peer by BHP's group performance as a whole, to excluding the extent movements in commodity prices over the five-year performance period. (2) From comparable December peer 2016, . BG Group and Peabody Energy were removed from the comparator group. BG Group was acquired by Royal Dutch Shell and Peabody Energy had become a significantly less (3) From November 2018, CONSOL Energy was removed from the comparator group, as due to its internal restructuring it had become a less comparable peer. Overarching discretion and vesting underpin The rules of the CDP, STIP and LTIP and the terms and conditions of the awards give the Committee an overarching discretion to reduce the number of awards that will vest, notwithstanding the fact that the performance condition for partial or full vesting, as tested following the end of the performance period, or the relevant service conditions, have been met. This holistic, qualitative judgement, which is applied as an underpin test before final vesting is confirmed, is an important risk management tool to ensure vesting is not simply driven by a formula or the passage of time that may give unexpected or unintended remuneration outcomes. The Committee considers its discretion carefully each year ahead of the scheduled vesting of equity awards in August. It considers performance holistically over the five-year period, including a five-year 'look back' on HSEC performance, profitability, cash flow, balance sheet health, returns to shareholders, corporate governance and conduct. For the five years from FY2017 to FY2021, the Committee noted BHP's continued improvement in HSEC outcomes, strong operational performance with improving production and cost performance, and significant returns to shareholders, together with no governance or conduct issues of note. Accordingly, in respect of the STIP two-year deferred shares (granted in November 2019 in respect of performance in FY2019), the Committee chose not to exercise its discretion and allowed the STIP awards to vest in full. In addition, in respect of the LTIP five-year performance shares (granted in December 2016), the formulaic outcome of the 2016 LTIP was a 100 per cent vesting. Having undertaken the 'look back' review described above and the assessment of the estimated impact on TSR performance of the Samarco dam failure, the Committee concluded the vesting outcome was appropriate given Group and individual performance, and chose not to exercise its discretion and allowed 100 per cent of the LTIP awards to vest. There is no upwards discretion available to the Remuneration Committee in respect of the LTIP, as the overarching discretion may only reduce the number of awards that may vest. CEO remuneration and returns to shareholders 10-year CEO remuneration The table below shows the single total figure of remuneration for Mike Henry, Andrew Mackenzie and Marius Kloppers over the last 10 years along with the proportion of maximum opportunity earned for each type of incentive. Executive Director Financial year remuneration, Single total US figure $('000) of CDP/STIP (% of maximum) LTIP (% of maximum) Mike Henry FY2021 14,521 77 100 FY2020(1) 6,069 64 48 Andrew Mackenzie FY2020(1) 2,424 64 48 FY2019 3,531 32 0 FY2018 4,657 60 0 FY2017 4,554 57 0 FY2016 2,241 0 0 FY2015 4,582 57 0 FY2014 7,988 77 58 FY2013(2) 9,740 47 65 Marius Kloppers FY2013(2) 5,624 47 65 FY2012 16,092 0 100 (1) 1 As January Mike Henry 2020 assumed to 30 June the 2020 role. of The CEO FY2020 and Executive single total Director figure of in remuneration January 2020, for the Andrew FY2020 Mackenzie single total includes figure of remuneration remuneration relevant shown includes to his role remuneration as CEO and Executive relevant to Director that role for for the the period period 1 July stepped 2019 to 31 down December from his 2019 role . The as CEO value and of Executive Mike's vested Director) 2015 LTIP was award reported is included in section in 3 full, .3.24 while of the Andrew's 2020 Annual vested Report 2015 LTIP . award (with a value of US$5.317 million and which vested after Andrew (2) 10 As May Andrew 2013 Mackenzie to 30 June assumed 2013. The the FY2013 role of single CEO total and Executive figure of remuneration Director in May for 2013, Marius the Kloppers FY2013 single includes total remuneration figure of remuneration relevant to shown his role includes as CEO and remuneration Executive Director relevant for to that the role period for 1the July period 2012 to 10 LTIP May award 2013 (with . The a value value of of Andrew's US$12.051 vested million 2008 and which LTIP award vested of after US$8 Marius .480 million stepped (inclusive down from of vested his role sign as-on CEO awards and Executive provided Director) when Andrew was reported joined BHP) in section is included 4.4.28 in of full, the while 2014 Marius' Annual vested Report 2008 . BHP Annual Report 2021 113

2.2 Remuneration Report continued 10-year TSR The graph below shows BHP's TSR against the performance of relevant indices over the same 10-year period. The indices shown in the graph were chosen as being broad market indices, which include companies of a comparable size and complexity to BHP. Changes in Directors' remuneration from FY2019 to FY2021 The table below sets out the percentage change in remuneration from FY2019 to FY2021 for the CEOs (for the time they were CEO) and Non-executive Directors, compared to the average change in each remuneration element for employees in Australia (being approximately 24,000 employees) over the same period. This has been chosen by the Committee as the most appropriate comparison, as Australia has the largest employee base, and the Committee considers remuneration levels in Australia when setting salaries and fees for Executive and Non-executive Directors and the CEO is located in Australia. The CEOs' and Non-executive Directors' remuneration described in the table align to what is disclosed in 'Single total figure of remuneration' (Executive Directors and Non-executive Directors) in this section 2.2.3. FY2019 to FY2020 FY2020 to FY2021 Base salary/ Benefits CDP/STI Base salary/ Benefits CDP/STI fees % change % change % change fees % change % change(4) % change CEOs(1) Mike Henry 0 0 0 0 67 20 Andrew Mackenzie 0 10 100 Directors Non-executive Terry Bowen 2 33 17 (90) Malcolm Broomhead (5) (53) (3) (84) Xiaoqun Clever(2) 0 0 0 0 Ian Cockerill(2) 0 0 0 (100) Anita Frew 0 (2) 0 (96) Gary Goldberg(2) 0 0 14 (87) Carolyn Hewson(3) 0 0 Susan Kilsby(2) 0 0 7 (99) Ken MacKenzie 0 25 0 (90) Lindsay Maxsted(3) (2) (44) 0 0 John Mogford 6 13 8 (97) Christine O'Reilly(2) 0 0 0 0 Shriti Vadera(3) 0 0 0 0 Dion Weisler(2) 0 0 0 0 Australian employees 2 (7) 43 3 (36) 3 (1) The on annualised per cent changes FY2020 for figures Mike. Henry The per from cent FY2019 changes to FY2020 for Andrew are Mackenzie zero due to from his appointment FY2019 to FY2020 as CEO are on based 1 January on annualised 2020. The per FY2020 cent figures changes . for Mike Henry from FY2020 to FY2021 are based (2) (Ian The Cockerill per cent changes and Susan in Kilsby remuneration both joined from on FY2019 1 April to 2019) FY2020 . The are per zero cent as changes there were in remuneration no changes from made FY2020 to the remuneration to FY2021 are of zero Non as -executive there were Directors no changes who made joined to the the Board remuneration during FY2019 of Non Goldberg -executive and Dion Directors Weisler who from joined FY2020 the Board to FY2021 in FY2021 are based (Xiaoqun on annualised Clever and FY2020 Christine figures O'Reilly as they joined joined on 1 October the Board 2020 on 1 and February 12 October 2020 and 2020 1 June respectively) 2020 respectively . The per cent . changes for Gary (3) The 7 November per cent 2019 changes . The in per remuneration cent changes from for FY2019 Lindsay to Maxsted FY2020 and for Shriti Carolyn Vadera Hewson from are FY2020 zero as to there FY2021 were are no zero changes as there made were to no her changes remuneration made to up their to the remuneration date of her retirement up to the date from of the their Board retirement on from the Board on 4 September 2020 and 15 October 2020 respectively. (4) The pandemic majority restricted of the amounts Non-executive disclosed Director for benefits travel during for Non FY2021 -executive . Directors are usually travel allowances (amounts of between US$ nil and US$90,000 for FY2020), however, the COVID-19 CEO pay ratio disclosure As BHP is a global company and our UK employees represent less than 1 per cent of all of our employees worldwide, these disclosures are voluntary, and we have chosen to amend the comparison to all employees, an approach that is still compliant with UK requirements. The table below shows the CEO pay ratios, calculated using the reported single total figure of remuneration, and compared to employees at the 25th percentile, Median and 75th percentile using Option A methodology as set out under UK requirements. Year 25th percentile Median 75th percentile FY2021 189:1 129:1 106:1 FY2020 116:1 81:1 67:1 Option A uses the full-time equivalent base salary and benefits paid during the year as it is the most accurate reflection of employee pay as a direct comparison to the single total figure of remuneration for the CEO. The FY2021 CEO remuneration used in the calculation is the reported single total figure of remuneration data for Mike Henry. The remuneration calculation for all employees is based on actual earnings for the 12 months to 31 March

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2021, including annual incentive payments for employees calculated using the Group performance outcome, and vested equity received if applicable. Pension contributions are calculated as the total cost of contributions made by the Group over the 12-month period. Employees on international assignments have been excluded from the analysis as their remuneration structures are generally not consistent with the single total figure of remuneration for the CEO. The FY2020 CEO remuneration used in the calculation is a combination of reported single total figure of remuneration data for Mike Henry and Andrew Mackenzie, recognising the transition in CEO leadership during FY2020. The FY2021 ratio of 129:1 at the median compared to the FY2020 ratio of 81:1 reflects the proportion of the CEO's pay being more heavily weighted to variable pay, including share-based long-term incentives, than for other employees. Specifically, the change from FY2020 to FY2021 is driven by a higher FY2021 CDP outcome of 115 per cent against a target of 100 per cent compared to the CDP outcome of 96 per cent in FY2020, together with the 100 per cent LTIP vesting for FY2021 at a BHP Group Limited share price of A$47.70 per share, whereas there was 48 per cent LTIP vesting for FY2020 at a BHP Group Limited share price of A$39.06 per share. The Group believes the median pay ratio reflects the diversity of our global business footprint and employee population. BHP's remuneration policies and practices are based on a high degree of alignment and consistency, with total remuneration at all levels providing a competitive package that enables the attraction and retention of talent while also providing at-risk remuneration based on performance. Remuneration for the CEO in FY2022 The remuneration for the CEO in FY2022 will be in accordance with the remuneration policy approved by shareholders at the AGMs in 2019. Base salary review Base salary is reviewed annually and increases are applicable from 1 September. The CEO commenced in the role on 1 January 2020 and did not receive a base salary increase in September 2021 and it will remain unchanged at US$1.700 million per annum for FY2022. The CEO's base salary will be kept under review in future years to ensure it remains competitive, especially in light of recent movement in exchange rates against the US dollar. FY2022 CDP performance measures For FY2022, the Remuneration Committee has set the following CDP scorecard performance measures: Performance categories Weighting Target measures HSEC 25% The following HSEC performance measures are designed to incentivise achievement of the Group's public five-year HSEC targets. Significant events (10%): No significant (actual level 4) health, safety (including fatalities), environment or community events during the year, implementation of sexual assault and sexual harassment controls, and design of cultural heritage controls. Climate change (10%): Reported GHG emissions in FY2022 are below the FY2017 level. A majority of planned decarbonisation projects are presented for tollgates and all asset adaptation plans are updated. Work undertaken as planned under partnerships with strategic customers in the steel sector established in FY2021, one more partnership formalised, and a review of Scope 3 goals and estimation methodologies completed. Management of priority tailings storage facilities (5%): All priority tailings storage facilities are assessed based on key risk indicator data, and are either within appetite or continued operation outside appetite is approved with remediation progressing to plan. Financial 50% ROCE is underlying profit after taxation (excluding after-taxation finance costs and exceptional items) divided by average capital employed. When we are assessing management's performance, we make adjustments to the ROCE result to allow for changes in commodity prices, foreign exchange movements and other material items to ensure the assessment appropriately measures outcomes that are within the control and influence of the Group and its executives. For reasons of commercial sensitivity, the target for ROCE will not be disclosed in advance; however, we plan to disclose targets and outcomes retrospectively in our next Remuneration Report, following the end of each performance year. In the rare instances where this may not be prudent on grounds of commercial sensitivity, we will explain why and give an indication of when they will be disclosed. Individual 25% The CEO's individual measures for FY2022 comprise contribution to BHP's overall performance and the management team and the delivery of projects and initiatives within the scope of the CEO role as set out by the Board. These include projects and initiatives in respect of social value (long term growth in value and returns for all stakeholders), people (right people, right skills, coming together in the right way to support exceptional performance), performance (material improvement in the system that supports exceptional performance) and portfolio (material progress on our strategic objectives to create a winning portfolio and set BHP up for the next 20 years). These performance measures are aligned with medium and long-term strategy aspirations that are intended to drive long-term value for shareholders and other stakeholders. FY2022 LTIP award The maximum face value of the CEO's LTIP award under the remuneration policy approved by shareholders at the 2019 AGMs is US$3.400 million, being 200 per cent of the CEO's base salary. The number of LTIP awards in FY2022 has been determined using the share price and US$/A$ exchange rate over the 12 months up to and including 30 June 2021. Based on this, a FY2022 grant of 107,183 LTIP awards is proposed and approval for this LTIP grant will be sought from shareholders at the 2021 AGMs. If approved, the award will be granted following the AGMs (i.e. in or around November/December 2021 subject to securities dealing considerations). The FY2022 LTIP award will use the same performance and service conditions and comparator groups as the FY2021 LTIP award. Remuneration for other Executive KMP (excluding the CEO) The information in this section contains details of the remuneration policy that guided the Remuneration Committee's decisions and resulted in the remuneration outcomes for other Executive KMP (excluding the CEO). The remuneration policy and structures for other Executive KMP are essentially the same as those already described for the CEO in previous sections of the Remuneration Report, including the treatment of remuneration on loss of office as detailed in 'Service contracts and policy on loss of office' in section 2.2.2. Components of remuneration The components of remuneration for other Executive KMP are the same as for the CEO, with any differences described below. CDP The CDP performance measures for other Executive KMP for FY2021 are similar to those of the CEO, which are outlined in 'FY2021 CDP performance outcomes' in this section 2.2.3; however, the weighting of each performance measure will vary to reflect the focus required from each Executive KMP role. Individual performance measures are determined at the start of the financial year. These include the other Executive KMP's contribution to the delivery of projects and initiatives within the scope of their role and the overall performance of the Group. Individual performance of other Executive KMP was reviewed against these measures by the Committee and, on average, was considered slightly above target. BHP Annual Report 2021 115

2.2 Remuneration Report continued The diagram below represents the FY2021 CDP weightings and outcomes against the original scorecard. KMP Other with Executive region KMP Other without Executive region Performance categories responsibility responsibility Threshold Target Maximum HSEC Group 12.5% 25.0% Region 12.5% 0% Financial Group 25.0% 50.0% Region 25.0% 0% Individual 25.0% 25.0% BHP Minerals Australia Minerals America Petroleum LTIP LTIP awards granted to other Executive KMP for FY2022 will be calculated in accordance with the remuneration policy approved by shareholders in 2019. Awards for other Executive KMP will have a maximum face value of 175 per cent of base salary, which is a fair value of 72 per cent of base salary under the current plan design (with a fair value of 41 per cent, taking into account the performance condition: 175 per cent x 41 per cent = 72 per cent). Other Executive KMP who were promoted from executive roles within BHP may hold MAP awards that were granted to them in respect of their service in non-KMP roles. Shareplus Other Executive KMP are eligible to participate in Shareplus. For administrative simplicity, Executive KMP, including the CEO, do not currently participate in Shareplus. No Executive KMP, including the CEO, had any holdings under the Shareplus program during FY2021. Remuneration mix A significant portion of other Executive KMP remuneration is at-risk, in order to provide strong alignment between remuneration outcomes and the interests of BHP shareholders. The diagram below sets out the relative mix of each remuneration component for the other Executive KMP for FY2021. Each component is determined as a percentage of base salary (at the minimum, target and maximum levels of performance-based remuneration). Remuneration mix for the other Executive KMP The percentage numbers in the bars represent the percentage of base salary Minimum 84% 8% 8% Target 23% 2% 2% 19% 38% 16% Maximum 15% 2% 2% 18% 36% 27% 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % share of total remuneration Base salary(1) Retirement benefits(2) Other benefits(3) CDP (cash)(4) CDP (deferred shares)(4) LTIP(5) (1) Base salary earned by each Executive KMP is set out in 'Executive KMP remuneration table' in this section 2.2.3. (2) in Retirement accordance benefits with the are remuneration 10 per cent of policy base salary approved for other by shareholders Executive KMP, at the with 2019 the AGMs exception (progressive of Geraldine reduction Slattery to. 10 From per FY2021, cent of base contribution salary as rates follows: for Geraldine 15 per cent reduced of base to salary 20 per from cent 1 July of base 2021; salary and 10 per cent of base salary from 1 July 2022 onwards). For any new Executive KMP appointments, the pension contribution rate will be 10 per cent of base salary immediately. (3) Other benefits are based on a notional 10 per cent of base salary. (4) As years for respectively, the CEO, the for minimum target performance CDP award is on zero, all measures, with a cash and award a maximum of 80 per cash cent award of base of salary 120 per plus cent two base awards salary of plus deferred two awards shares each of deferred of equivalent shares value each of to equivalent the cash award, value vesting to the cash in two award, and five vesting in two and five years respectively. (5) Other Executive KMP have a maximum LTIP award with a face value of 175 per cent of base salary. Employment contracts The terms of employment for other Executive KMP are formalised in employment contracts, which have no fixed term. They typically outline the components of remuneration paid to the individual, but do not prescribe how remuneration levels are to be modified from year to year. Other Executive KMP's employment contracts may be terminated by BHP on up to 12 months' notice or can be terminated immediately by BHP making a payment of up to 12 months' base salary plus pension contributions for the relevant period. Other Executive KMP must give up to 12 months' notice for voluntary resignation. Arrangements for KMP leaving and joining the Group KMP leaving the Group The arrangements for Executive KMP leaving the Group are within the approval provided by shareholders at the 2020 AGMs in regard to Australian termination benefits legislation, including the provision of performance-based remuneration in accordance with the rules of the relevant incentive plans. Peter Beaven stepped down from his role as Chief Financial Officer on 30 November 2020 and exited BHP on 28 February 2021. Daniel Malchuk stepped down from his role as President Minerals Americas on 31 October 2020 and exited BHP on 31 December 2020. Peter and Daniel received base salary, pension contributions, prorated CDP, statutory leave entitlements and applicable benefits up to the dates of their exit from BHP. Peter and Daniel received a part payment in lieu of notice upon exit and have been paid or will receive in the future the value of pension funds that they have accumulated during their service with the Group. When determining the Executive KMP CDP awards for FY2021, the Remuneration Committee resolved that Peter and Daniel would each receive a prorated FY2021 CDP award in the form of cash based on their performance (covering the cash and two-year deferred share components, but not the five-year deferred share component). No deferral period will apply in respect of these CDP awards. All unvested FY2019 STIP and FY2020 CDP two-year deferred share awards allocated to Peter and Daniel remained on foot on termination. FY2019 STIP deferred share awards vested in August 2021 and FY2020 CDP two-year deferred share awards will not vest until August 2022. Peter's and Daniel's unvested LTIP awards and CDP five-year deferred shares were prorated to reflect the percentage of the performance period to 28 February 2021 for Peter and 31 December 2020 for Daniel. The vesting of the retained prorated LTIP awards will be determined by the Committee at the relevant time in future years and will only vest to the extent the performance conditions are met at the end of each five-year performance period. The vesting of LTIP awards and CDP five-year deferred share awards are subject to the Committee's ability to reduce vesting through its discretion under the plan rules. 116 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information KMP joining the Group David Lamont joined BHP as Chief Financial Officer on 1 December 2020. David left his former employer, CSL Limited, a major Australian company listed on the Australian Stock Exchange, on 30 October 2020. As a consequence of his resignation certain CSL incentive awards, which were expected to have been paid or vested in 2021 and beyond, were foregone. Replacement BHP awards have been provided in accordance with BHP's remuneration policy (approved by shareholders in 2019 with almost 94 per cent support) under which a new senior executive appointed from outside BHP can be provided cash and/or BHP equity awards to replace any remuneration forfeited or not received from the former employer. In accordance with that policy, remuneration that David forfeited or did not receive as a consequence of leaving CSL to join BHP has been partly replaced as set out in the table below. The value of the BHP awards is less than the fair value of the awards foregone (as confirmed by the Committee's independent adviser), and the duration of the BHP awards is longer, on average, than those they replace. The Committee has determined appropriate service and performance conditions within BHP's framework, considering the vesting status of the conditions attached to the foregone awards. As always, the Committee has been mindful of limiting such payments and not providing any more compensation than is necessary and, under BHP's incentive plans, retains the right to adjust vesting outcomes where an inappropriate benefit would be received. The BHP awards provided are set out in the table below. Award Amount/number Payable/vesting Release Conditions Replaces Cash US$300,000 September 2021(1) September 2022(1) Nil Replaces a cash bonus payment foregone that would have been payable in September 2021 Performance 77,000 August 2022(2) August 2023(2) Service and performance conditions, being Partly replaces equity awards shares subject to a holistic assessment of underlying foregone that would have been financial performance of BHP and personal paid and vested to David in 2021 performance of David during the vesting period and beyond (1) Should David voluntarily resign or retire during the holding lock period, or be terminated for cause, the cash payment would become repayable on a pro-rata basis. (2) during Upon performance the holding lock shares period, vesting or be in terminated August 2022, for a cause, holding the lock shares will apply subject to the to the vested holding shares lock until will be August forfeited 2023, . at which time they will be released to David. Should David voluntarily resign or retire Remuneration for Non-executive Directors The remuneration outcomes described below have been provided in accordance with the remuneration policy approved by shareholders at the 2019 AGMs. The maximum aggregate fees payable to Non-executive Directors (including the Chair) were approved by shareholders at the 2008 AGMs at US$3.800 million per annum. This sum includes base fees, Committee fees and pension contributions. Travel allowances and non-monetary benefits are not included in this limit. Single total figure of remuneration This section shows a single total figure of remuneration as prescribed under UK requirements. It is a measure of actual remuneration. Fees include the annual base fee, plus additional fees as applicable for the Senior Independent Director, Committee Chair and Committee memberships. Non-executive Directors do not have any performance-based at-risk remuneration or receive any equity awards as part of their remuneration, therefore the totals shown below are total remuneration and total fixed fees. This table also meets the requirements of the Australian Corporations Act 2001 and relevant accounting standards. US$('000) Financial year Fees Benefits(1) Pensions(2) Total Terry Bowen FY2021 219 4 12 235 FY2020 187 40 10 237 Malcolm Broomhead FY2021 195 3 10 208 FY2020 201 19 11 231 Ian Cockerill FY2021 220 220 FY2020 220 90 310 Xiaoqun Clever(3) FY2021 144 144 Anita Frew FY2021 220 2 222 FY2020 220 47 267 Gary Goldberg(3) FY2021 246 2 248 FY2020 90 15 105 Carolyn Hewson(4) FY2020 75 18 4 97 Susan Kilsby FY2021 220 1 221 FY2020 205 83 288 Ken MacKenzie FY2021 864 4 16 884 FY2020 866 40 14 920 Lindsay Maxsted(4) FY2021 33 3 2 38 FY2020 205 18 11 234 John Mogford FY2021 215 2 217 FY2020 199 69 268 Christine O'Reilly(3) FY2021 162 9 171 Shriti Vadera(4) FY2021 74 1 75 FY2020 253 48 301 Dion Weisler(3) FY2021 178 1 9 188 FY2020 15 1 16 (1) The restricted majority Non of-executive the amounts Director disclosed travel for during benefits FY2021 for Non . For- FY2021, executive amounts Directors of are between usually US travel $ nil allowances and US$3,500 (amounts are included of between in respect US$ nil of and tax return US$90,000 preparation; for FY2020) and amounts however, of the between COVID US -19 $ pandemic nil and US$ 2,500 are included in respect of the reimbursement of the tax cost associated with the provision of taxable benefits. (2) BHP Group Limited made minimum superannuation contributions of up to 9.5 per cent of fees for FY2021 in accordance with Australian superannuation legislation. No other pension contributions were paid. (3) The Clever FY2020 and Christine remuneration O'Reilly for relates Gary Goldberg to part of the and year Dion only, Weisler as they relates joined to part the Board of the on year 1 October only, as they 2020 joined and 12 the October Board on 2020 1 February respectively 2020 . and 1 June 2020 respectively. The FY2021 remuneration for Xiaoqun (4) The of the FY2020 year only, remuneration as they retired for Carolyn from the Hewson Board on relates 4 September to part of 2020 the year and only, 15 October as she retired 2020 respectively from the Board . on 7 November 2019. The FY2021 remuneration for Lindsay Maxsted and Shriti Vadera relates to part BHP Annual Report 2021 117

2.2 Remuneration Report continued Non-executive Directors' remuneration in FY2022 In FY2022, the remuneration for the Non-executive Directors will be paid in accordance with the remuneration policy approved by shareholders at the 2019 AGMs (which is unchanged from the remuneration policy for Non-executive Directors approved by shareholders at the 2017 AGMs). Fee levels for the Non-executive Directors and the Chair are reviewed annually. The review includes benchmarking against peer companies, with the assistance of external advisers. From 1 July 2017, the Chair's annual fee was reduced by approximately 8 per cent from US$0.960 million to US$0.880 million and will remain at that level for FY2022. This fee reduction was in addition to the reduction of approximately 13 per cent from US$1.100 million to US$0.960 million effective 1 July 2015. Base fee levels for Non-executive Directors will remain at the reduced levels that took effect from 1 July 2015, at which time they were reduced by approximately 6 per cent from US$0.170 million to US$0.160 million per annum. The below table sets out the annualised fee levels for FY2022. Levels of fees and travel allowances for Non-executive Directors (in US$) From 1 July 2021 Base annual fee 160,000 Plus additional fees for: Senior Independent Director of BHP Group Plc 48,000 Committee Chair: Risk and Audit 60,000 Remuneration 45,000 Sustainability 45,000 Nomination and Governance No additional fee Committee membership: Risk and Audit 32,500 Remuneration 27,500 Sustainability 27,500 Nomination and Governance 18,000 Travel allowance:(1) Greater than 3 but less than 10 hours 7,000 10 hours or more 15,000 Chair's fee 880,000 (1) In relation to travel for Board business, the time thresholds relate to the flight time to travel to the meeting location (i.e. one way flight time). Only one travel allowance is paid per round trip. Remuneration governance Board oversight and the Remuneration Committee Board The Board is responsible for ensuring the Group's remuneration arrangements are equitable and aligned with the long-term interests of BHP and its shareholders. In performing this function, it is critical the Board is independent of management when making decisions affecting remuneration of the CEO, other Executive KMP and the Group's employees. The Board has therefore established a Remuneration Committee to assist it in making such decisions. The Committee is comprised solely of Non-executive Directors, all of whom are independent. To ensure it is fully informed, the Committee regularly invites members of management to attend meetings to provide reports and updates; however, members of management are not present when decisions are considered or taken concerning their own remuneration. The Committee can draw on services from a range of external sources, including remuneration advisers. Remuneration Committee The activities of the Remuneration Committee are governed by Terms of Reference (updated version approved by the Board in April 2021), which are available at bhp.com. The current members of the Remuneration Committee are: Christine O'Reilly (Remuneration Committee Chair), Anita Frew, Gary Goldberg, Susan Kilsby, and Dion Weisler. The role and focus of the Committee and details of meeting attendances can be found in section 2.1. Other Directors and employees who regularly attended meetings were: Ken MacKenzie (Chair), Mike Henry (CEO), Athalie Williams (Chief People Officer), Andrew Fitzgerald (Vice President Reward), Caroline Cox (Group Company Secretary to 31 October 2020), Stefanie Wilkinson (Group Company Secretary from 1 March 2021), Geof Stapledon (Vice President Governance to 31 March 2021), and Prakash Kakkad (Head of Group Governance from 1 June 2021). These individuals were not present when decisions regarding their own remuneration were considered or taken. When determining executive director remuneration practices, the Remuneration Committee considers any decisions in the context of the principles of the 2018 UK Corporate Governance Code, including: Principle How the Remuneration Committee has applied the principle Clarity BHP engages proactively with shareholders on remuneration matters. Feedback from shareholders is used by the Remuneration Committee in its decision-making in respect of the remuneration policy and its application. The Group also conducts regular employee engagement surveys which give employees an opportunity to provide feedback on a wide range of employee matters. Many employees are also ordinary shareholders through Shareplus and therefore have the opportunity to share their views as shareholders. Simplicity The purpose, structure and strategic alignment of each element of remuneration is clearly set out in section 2.2.2. Risk A significant portion of variable remuneration is at-risk in order to provide strong alignment between remuneration outcomes and the interests of BHP shareholders. The delivery of two-thirds of CDP awards in deferred shares and the LTIP five-year performance period help to align the long-term interests of the CEO and shareholders. Predictability The remuneration opportunities under different performance scenarios (minimum, target and maximum) are set out in section 2.2.2. Proportionality The CEO is incentivised to achieve stretching performance through the targets set under the CDP and LTIP. In addition, the Remuneration Committee has discretion to adjust formulaic outcomes downwards to ensure that poor performance is not rewarded. Alignment The FY2021 CDP performance measures for the CEO include a number of measures linked to culture including the delivery of social value with culture plans for assets, improving gender diversity and embedding a new Engagement and Perception Survey system. We continue to focus on fostering a culture of respect and ensuring the workplace is safe at all times. Engagement of independent remuneration advisers The Committee seeks and considers advice from independent remuneration advisers where appropriate. Remuneration consultants are engaged by and report directly to the Committee. Potential conflicts of interest are taken into account when remuneration consultants are selected and their terms of engagement regulate their level of access to, and require their independence from BHP's management. PricewaterhouseCoopers was appointed by the Committee in March 2016 to act as an independent remuneration adviser. The PricewaterhouseCoopers team that advises the Remuneration Committee does not provide any other services to the Group. Other PricewaterhouseCoopers teams provide services 118 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information to the Group in the areas of forensic and general technology, internal audit and international assignment solutions. Processes and arrangements are in place to protect independence (for example, ring-fencing of teams) and to manage any conflicts of interest that may arise. PricewaterhouseCoopers is currently the only remuneration adviser appointed by the Committee. In that capacity, they may provide remuneration recommendations in relation to KMP; however, they did not do so in FY2021. Total fees paid to the PricewaterhouseCoopers team advising the Committee on remuneration-related matters for FY2021 were £177,300. These fees are based on an agreed fee for regular items with additional work charged at agreed rates. Total fees paid to PricewaterhouseCoopers for other services rendered to the Group for FY2021 were approximately US$31 million. Statement of voting at the 2020 AGMs BHP's remuneration resolutions have attracted a high level of support by shareholders. Voting in regard to those resolutions put to shareholders at the 2020 AGMs is shown below. Votes AGM resolution Requirement % vote 'for' % vote 'against' withheld(1) Remuneration Report (excluding remuneration policy(2)) UK 95.8 4.2 4,630,094 Remuneration Report (whole Report) Australia 95.7 4.3 4,961,722 Approval of grants to Executive Director Australia 98.5 1.5 4,624,916 Approval of leaving entitlements Australia 99.3 0.7 5,029,752 (1) The sum of votes marked 'Vote withheld' at BHP Group Plc's 2020 AGM and votes marked 'Abstain' at BHP Group Limited's 2020 AGM. (2) The 23,166,578 UK requirement votes withheld for approval . This resolution of the remuneration was not required policy in was 2020 met . at the 2019 AGMs, where the following outcomes were recorded: a 93.5 per cent vote 'for', a 6.5 per cent vote 'against' with Other statutory disclosures This section provides details of any additional statutory disclosures required by Australian or UK regulations that have not been included in the previous sections of the Remuneration Report. Executive KMP remuneration table The table below has been prepared in accordance with relevant accounting standards and remuneration data for Executive KMP are for the periods of FY2020 and FY2021 that they were KMP. More information on the policy and operation of each element of remuneration is provided in previous sections of this Report. Share-based payments The figures included in the shaded columns of the statutory table below for share-based payments were not actually provided to the KMP during FY2021 or FY2020. These amounts are calculated in accordance with accounting standards and are the amortised IFRS fair values of equity and equity-related instruments that have been granted to the executives. For information on awards that were allocated and vested during FY2021 and FY2020, refer to 'Equity awards' in this section 2.2.3. Short-term employment Post- Share-based benefits benefits payments Financial Base Annual cash monetary Non- Other Retirement CDP/STIP Value of of Value LTIP US$('000) year salary(1) incentive(2) benefits(3) benefits(4) benefits(5) awards(2)(6) awards(6) Total Executive Director Mike Henry FY2021 1,700 1,564 120 170 1,487 2,315 7,356 FY2020 1,400 1,075 129 223 907 2,299 6,033 Andrew Mackenzie(7) FY2020 850 653 124 213 1,202 2,038 5,080 Other Executive KMP Edgar Basto FY2021 950 866 60 95 432 839 3,242 Peter Beaven(7) FY2021 417 400 39 83 876 787 2,602 FY2020 1,000 848 41 250 810 2,090 5,039 David Lamont FY2021 554 510 42 55 167 935 2,263 Daniel Malchuk(7) FY2021 333 307 23 67 765 620 2,115 FY2020 1,000 816 38 250 797 2,090 4,991 Geraldine Slattery FY2021 800 800 25 160 777 930 3,492 FY2020 750 618 188 378 903 2,837 Ragnar Udd FY2021 567 521 49 420 57 190 483 2,287 (1) the Base year salaries except shown for Edgar in this Basto table who reflect was the appointed amounts as paid President over the Minerals 12-month Australia period on from 1 July 1 July 2020 2020 on to an 30 annual June base 2021 salary for each of US Executive $0.950 KMP million, . There Ragnar were Udd no changes who was to appointed Executive as KMP President base salaries Minerals during and Americas Geraldine on 1 November Slattery whose 2020 salary on an changed annual base to US salary $0.850 of US million $0.850 on 1 million, January David 2021 Lamont . Geraldine's who base was appointed salary was as set Chief by the Financial Remuneration Officer Committee on 1 December in March 2020 2019 on an upon annual her base appointment salary of US as$ President 0.950 million, and Petroleum it was confirmed at US$0.750 that million Geraldine per annum, was performing which was and 25 per developing cent below strongly that of in Geraldine's role. The Committee predecessor also . In considered December market 2020, factors, the Committee job relativities assessed and Geraldine's contribution performance in the role in as reaching President its decision Petroleum that Geraldine's especially in base light salary of recent would movement be increased in exchange to US$0 rates .850 against million per the annum US dollar on . 1 January 2021. The base salaries for Executive KMP will be kept under review in future years to ensure they remain competitive, (2) deferred Annual cash equity incentive (which in are this included table is in the the cash Share portion -based of payments CDP awards columns earned of in the respect table) of . The performance cash portion during of CDP each awards financial is paid year to for Executive each executive KMP in .September CDP is provided of the one year -third following in cash the and relevant two-thirds financial in earned year. The the minimum following possible CDP awards value as awarded a percentage to each of individual the maximum is nil and (the the remaining maximum portion is 360 has per been cent forfeited): of base salary Mike (120 Henry per 77 cent per in cent, cash Edgar and 240 Basto per 76 cent per cent, in deferred Peter Beaven equity). 80 For per FY2021, cent (for Executive the time KMP served as cent Chief and Financial Ragnar Udd Officer), 77 per David cent Lamont (for the 77 time per served cent (for as President the time served Minerals as Americas) Chief Financial . Andrew's Officer), FY2020 Daniel CDP Malchuk and Peter's 77 per and cent Daniel's (for the FY2021 time served CDP was as President paid in cash Minerals and prorated Americas), to reflect Geraldine the Slattery period served 83 per the until total they CDP ceased award to be included KMP on in 31 the December Annual cash 2019, incentive 30 November column, 2020 and 50 and per 31 cent October in the 2020 Value respectively, of CDP/STIP as awards noted for column Andrew . in 'Single total figure of remuneration' in this section 2.2.3, with 50 per cent of (3) travel Non-monetary costs. benefits are non-pensionable and include items such as net leave accruals, health and other insurances, fees for tax return preparation (if required in multiple jurisdictions), car parking and (4) Other benefits are non-pensionable and include a one-off relocation allowance (with no trailing entitlements) provided to Ragnar Udd in FY2021 relating to his international relocation from Australia to Chile. (5) Minerals In FY2021, Australia retirement on 1 benefits July 2020, were David 20 per Lamont, cent of who base was salary appointed for each as Executive Chief Financial KMP except Officer for on Mike 1 December Henry, who 2020, was and appointed Ragnar Udd, CEO who on 1 was January appointed 2020, as Edgar President Basto, Minerals who was Americas appointed on as 1 President November 2020, each with a pension contribution rate of 10 per cent of base salary as per the remuneration policy approved at the 2019 AGMs. (6) The IFRS fair value of CDP, STIP and LTIP awards is estimated at grant date. Refer to note 25 'Employee share ownership plans' in section 3 for more information on IFRS. (7) The remuneration reported for Andrew Mackenzie, Peter Beaven and Daniel Malchuk reflects service as Executive KMP up to 31 December 2019, 30 November 2020 and 31 October 2020 respectively. BHP Annual Report 2021 119

2.2 Remuneration Report continued Equity awards The interests held by Executive KMP under the Group's employee equity plans are set out below. Each equity award is a right to acquire one ordinary share in BHP Group Limited or in BHP Group Plc upon satisfaction of the vesting conditions. BHP Group Limited share awards are shown in Australian dollars. BHP Group Plc awards are shown in Pounds Sterling. Our mandatory minimum performance requirements for securities dealing governs and restricts dealing arrangements and the provision of shares on vesting or exercise of awards. No interests under the Group's employee equity plans are held by related parties of Executive KMP. Dividend Equivalent Payments DEP applies to awards provided to Executive KMP under the CDP, STIP and LTIP as detailed in 'Components of remuneration' in section 2.2.2. No DEP is payable on MAP awards previously provided to Executive KMP. Equity awards provided for Executive KMP service Awards under the CDP, STIP, and LTIP Executive KMP received or will receive awards under the CDP, STIP and LTIP. The terms and conditions of CDP, STIP and LTIP awards, including the performance conditions, are described in 'Components of remuneration' in section 2.2.2. The LTIP rules are available at bhp.com. Equity awards provided prior to Executive KMP service Awards under the MAP BHP senior management who are not KMP receive awards under the MAP. While no MAP awards were granted to Executive KMP after becoming KMP, Edgar Basto, Geraldine Slattery and Ragnar Udd still hold MAP awards that were allocated to them prior to commencing their Executive KMP service. Date At 1 July At 30 June vesting Award Market price on date of: Gain awards on awards DEP on Award type of grant 2020 Granted Vested Lapsed 2021 date(1) Grant(2) Vesting(3) ('000)(4) ('000) Mike Henry CDP 20-Oct-20 44,348 44,348 Aug 25 A$35.90 CDP 20-Oct-20 44,348 44,348 Aug 22 A$35.90 STIP 20-Nov-19 17,420 17,420 Aug 21 A$37.24 STIP 18-Dec-18 30,692 30,692 19 Aug 20 A$33.50 A$39.06 A$1,199 A$152 LTIP 20-Oct-20 140,239 140,239 Aug 25 A$35.90 LTIP 20-Nov-19 153,631 153,631 Aug 24 A$37.24 LTIP 18-Dec-18 172,413 172,413 Aug 23 A$33.50 LTIP 24-Nov-17 218,020 218,020 Aug 22 A$27.97 LTIP 9-Dec-16 192,360 192,360 Aug 21 A$25.98 LTIP 4-Dec-15 192,360 92,333 100,027 19 Aug 20 A$17.93 A$39.06 A$3,607 A$748 Edgar Basto(5) LTIP 20-Oct-20 68,572 68,572 Aug 25 A$35.90 MAP 19-May-20 28,245 28,245 Aug 24 A$35.05 MAP 19-May-20 28,245 28,245 Aug 23 A$35.05 MAP 25-Sep-19 28,245 28,245 Aug 22 A$36.53 MAP 24-Sep-18 27,651 27,651 Aug 21 A$33.83 MAP 25-Sep-17 33,828 33,828 19 Aug 20 A$25.98 A$39.06 A$1,321 Peter Beaven(6) CDP 20-Oct-20 34,977 34,977 Aug 25 A$35.90 CDP 20-Oct-20 34,977 34,977 Aug 22 A$35.90 STIP 20-Nov-19 19,003 19,003 Aug 21 A$37.24 STIP 18-Dec-18 30,964 30,964 19 Aug 20 A$33.50 A$39.06 A$1,209 A$154 LTIP 20-Oct-20 72,182 72,182 Aug 25 A$35.90 LTIP 20-Nov-19 139,664 139,664 Aug 24 A$37.24 LTIP 18-Dec-18 156,739 156,739 Aug 23 A$33.50 LTIP 24-Nov-17 198,200 198,200 Aug 22 A$27.97 LTIP 9-Dec-16 174,873 174,873 Aug 21 A$25.98 LTIP 4-Dec-15 174,873 83,940 90,933 19 Aug 20 A$17.93 A$39.06 A$3,279 A$680 David Lamont(5) Performance shares 1-Dec-20 77,000 77,000 Aug 22 A$38.56 LTIP 1-Dec-20 68,572 68,572 Aug 25 A$38.56 Daniel Malchuk(6) CDP 20-Oct-20 33,657 33,657 Aug 25 A$35.90 CDP 20-Oct-20 33,657 33,657 Aug 22 A$35.90 STIP 20-Nov-19 16,786 16,786 Aug 21 A$37.24 STIP 18-Dec-18 33,686 33,686 19 Aug 20 A$33.50 A$39.06 A$1,316 A$167 LTIP 20-Oct-20 72,182 72,182 Aug 25 A$35.90 LTIP 20-Nov-19 139,664 139,664 Aug 24 A$37.24 LTIP 18-Dec-18 156,739 156,739 Aug 23 A$33.50 LTIP 24-Nov-17 198,200 198,200 Aug 22 A$27.97 LTIP 9-Dec-16 174,873 174,873 Aug 21 A$25.98 LTIP 4-Dec-15 174,873 83,940 90,933 19 Aug 20 A$17.93 A$39.06 A$3,279 $680 120 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Date At 1 July At 30 June vesting Award Market price on date of: Gain awards on awards DEP on Award type of grant 2020 Granted Vested Lapsed 2021 date(1) Grant(2) Vesting(3) ('000)(4) ('000) Geraldine Slattery CDP 20-Oct-20 25,490 25,490 Aug 25 A$35.90 CDP 20-Oct-20 25,490 25,490 Aug 22 A$35.90 STIP 20-Nov-19 6,628 6,628 Aug 21 A$37.24 LTIP 20-Oct-20 54,136 54,136 Aug 25 A$35.90 LTIP 20-Nov-19 104,748 104,748 Aug 24 A$37.24 MAP 21-Feb-19 28,527 28,527 Aug 23 A$34.83 MAP 21-Feb-19 28,527 28,527 Aug 22 A$34.83 MAP 24-Sep-18 28,527 28,527 Aug 21 A$33.83 MAP 25-Sep-17 34,349 34,349 19 Aug 20 A$25.98 A$39.06 A$1,342 Ragnar Udd(5) LTIP 2-Nov-20 61,354 61,354 Aug 25 A$33.81 MAP 21-Aug-20 21,231 21,231 Aug 24 A$38.36 MAP 21-Aug-20 21,231 21,231 Aug 23 A$38.36 MAP 25-Sep-19 21,231 21,231 Aug 22 A$36.53 MAP 24-Sep-18 25,565 25,565 Aug 21 A$33.83 (1) practicable Where the vesting after the date first is non not- yet prohibited known, period the estimated date occurring vesting month after 30 is June shown of .the Where preceding awards year lapse, of the vest lapse . The date year of is shown vesting . If is the the vesting second conditions (STIP and CDP are met, two-awards year awards), will vest third on or (MAP), as soon fourth as (MAP) or automatically fifth (MAP, CDP delivered five-year upon awards the vesting and LTIP) conditions financial being year after met. grant Where . All vesting awards conditions are conditional are not awards met, the and conditional have no exercise awards period, will immediately exercise price lapse or . expiry date; instead ordinary fully paid shares are (2) The granted market in FY2021 price shown at the is grant the closing date of 20 price October of BHP 2020 shares are on as the follows: relevant CDP date A $ of 35 grant .90 and . No LTIP price is A $ payable 20.98. The by the IFRS individual fair value to of receive the LTIP a grant awards of granted awards. in The FY2021 IFRS fair at the value grant of the date CDP of 2 and November LTIP awards 2020 and 1 December 2020 are A$18.61 and A$20.85 respectively. The IFRS fair value of David Lamont's performance shares at the grant date of 1 December 2020 is A$38.56. (3) The market price shown is the closing price of BHP shares on the relevant date of vest. (4) FY2021 The gain are on as awards follows: is calculated STIP 100 using per cent the vested; market LTIP price on 48 date per cent of vesting vested or and exercise 52 per (as cent applicable) lapsed; MAP less any 100 exercise per cent price vested payable . . The amounts that vested and were lapsed for the awards during (5) The 2020 opening respectively balances . of awards for Edgar Basto, David Lamont and Ragnar Udd reflect their holdings on the date that each became KMP, being 1 July 2020, 1 December 2020 and 1 November (6) Awards The subsequent shown as treatment held by Peter of their Beaven awards and is Daniel set out Malchuk in 'Arrangements at 30 June for 2021 KMP are leaving their balances and joining at the the date Group' they in ceased this section being 2. 2 KMP .3. (30 November 2020 and 31 October 2020, respectively). Estimated value range of equity awards The current face value (and estimate of the maximum possible total value) of equity awards allocated during FY2021 and yet to vest are the awards as set out in the previous table multiplied by the current share price of BHP Group Limited or BHP Group Plc as applicable. The minimum possible total value of the awards is nil. The actual value that may be received by participants in the future cannot be determined as it is dependent on and therefore fluctuates with the share prices of BHP Group Limited and BHP Group Plc at the date that any particular award vests or is exercised. The table below provides five-year share price history for BHP Group Limited and BHP Group Plc, history of dividends paid and the Group's earnings. Five-year share price, dividend and earnings history FY2021 FY2020 FY2019 FY2018 FY2017 BHP Group Limited Share price at beginning of year A$35.82 A$41.68 A$33.60 A$23.23 A$19.09 Share price at end of year A$48.57 A$35.82 A$41.16 A$33.91 A$23.28 Dividends paid A$2.07 A$2.13 A$3.08(1) A$1.24 A$0.72 BHP Group Plc Share price at beginning of year £16.28 £20.33 £16.53 £12.15 £9.40 Share price at end of year £21.30 £16.54 £20.15 £17.06 £11.76 Dividends paid £1.15 £1.13 £1.70(1) £0.72 £0.44 BHP Attributable profit (US$ million, as reported) 11,304 7,956 8,306 3,705 5,890 (1) The FY2019 dividends paid includes A$1.41 or £0.80 in respect of the special dividend associated with the divestment of Onshore US. The highest share prices during FY2021 were A$51.65 for BHP Group Limited shares and £23.76 for BHP Group Plc shares. The lowest share prices during FY2021 were A$33.78 and £14.90 respectively. Ordinary share holdings and transactions The number of ordinary shares in BHP Group Limited or in BHP Group Plc held directly, indirectly or beneficially, by each individual (including shares held in the name of all close members of the Director's or Executive KMP's family and entities over which either the Director or Executive KMP or the family member has, directly or indirectly, control, joint control or significant influence) are shown below. No shares are held nominally by any KMP or their related parties. There have been no changes in the interests of any Directors in the period to 1 September 2021 (being not less than one month prior to the date of the notice of the 2021 AGMs), except as noted below. These are ordinary shares held without performance conditions or restrictions and are included in MSR calculations for each individual. The interests of Directors and Executive KMP in the ordinary shares of each of BHP Group Limited and BHP Group Plc as at 30 June 2021 did not exceed on an individual basis or in the aggregate 1 per cent of BHP Group Limited's or BHP Group Plc's issued ordinary shares. BHP Annual Report 2021 121

2.2 Remuneration Report continued BHP Group Limited shares BHP Group Plc shares Held 1 July at Received as 30 Held June at Held 1 July at Received as 30 Held June at 2020 Purchased remuneration(1) Sold 2021 2020 Purchased remuneration(1) Sold 2021 Executive Director Mike Henry 120,069 146,072 67,162 198,979 196,262 196,262 Other Executive KMP Edgar Basto(2) 117,279 42 33,828 16,260 134,889 Peter Beaven(3) 261,287 136,244 65,424 332,107 David Lamont(2) 6,345 6,345 Daniel Malchuk(3) 194,608 139,312 56,934 276,986 Geraldine Slattery(4) 71,520 34,349 8,544 97,325 Ragnar Udd(2) 105,418 105,418 Non-executive Directors Terry Bowen 11,000 11,000 Malcolm Broomhead 19,000 19,000 Xiaoqun Clever(5) 5,000 2,000 7,000 Ian Cockerill 8,759 8,759 3,500 3,500 Anita Frew 15,000 15,000 Gary Goldberg(4) 10,000 10,000 Susan Kilsby 6,900 6,900 Ken MacKenzie 52,351 52,351 Lindsay Maxsted(6) 18,000 18,000 John Mogford 12,000 1,938 13,938 Christine O'Reilly(5) 7,000 7,000 Shriti Vadera(6) 25,000 25,000 Dion Weisler 1,544 1,544 (1) Includes DEP in the form of shares on equity awards vesting as disclosed in 'Equity awards' in this section 2.2.3. (2) The opening balances for Edgar Basto, David Lamont and Ragnar Udd reflect their shareholdings on the date that each became KMP being 1 July 2020, 1 December 2020 and 1 November 2020 respectively. (3) Shares shown as held by Peter Beaven and Daniel Malchuk at 30 June 2021 are their balances at the date they ceased being KMP being 30 November 2020 and 31 October 2020 respectively. (4) The following BHP Group Limited shares were held in the form of American Depositary Shares: Geraldine Slattery (868 BHP Group Limited) and Gary Goldberg (5,000 BHP Group Limited). (5) The opening balances for Xiaoqun Clever and Christine O'Reilly reflect their shareholdings on the date that each became Non-executive Directors being 1 October 2020 and 12 October 2020 respectively. (6) Shares shown as held by Lindsay Maxsted and Shriti Vadera at 30 June 2021 are their balances at the date of their retirement from the Board on 4 September 2020 and 15 October 2020 respectively. Prohibition on hedging of BHP Group shares and equity instruments The CEO and other Executive KMP may not use unvested BHP equity awards as collateral or protect the value of any unvested BHP equity awards or the value of shares and securities held as part of meeting the MSR. Any securities that have vested and are no longer subject to restrictions may be subject to hedging arrangements or used as collateral, provided that prior consent is obtained. Share ownership guidelines and the MSR The share ownership guidelines and the MSR help to ensure the interests of Directors, executives and shareholders remain aligned. The CEO and other Executive KMP are expected to grow their holdings to the MSR from the scheduled vesting of their employee awards over time. The MSR is tested at the time that shares are to be sold. Shares may be sold to satisfy tax obligations arising from the granting, holding, vesting, exercise or sale of the employee awards or the underlying shares whether the MSR is satisfied at that time or not. For FY2021: The MSR for the CEO was five times annual pre-tax base salary. At the end of FY2021, the CEO met the MSR. The MSR for other Executive KMP was three times annual pre-tax base salary. At the end of FY2021, the other Executive KMP met the MSR, except for David Lamont, as he was appointed as Executive KMP on 1 December 2020. No other Executive KMP sold or purchased shares during FY2021, other than sales to satisfy taxation obligations and a net immaterial purchase for Edgar Basto. Effective 1 July 2020, a two-year post-retirement shareholding requirement for the CEO applies from the date of retirement, which will be the lower of the CEO's MSR or the CEO's actual shareholding at the date of retirement. Subject to securities dealing constraints, Non-executive Directors have agreed to apply at least 25 per cent of their remuneration (base fees plus Committee fees) to the purchase of BHP shares until they achieve an MSR equivalent in value to one year of remuneration (base fees plus Committee fees). Thereafter, they must maintain at least that level of shareholding throughout their tenure. At the end of FY2021, each Non-executive Director met the MSR with the exception of Susan Kilsby, Dion Weisler and Christine O'Reilly as they only recently joined the Board on 1 April 2019, 1 June 2020 and 12 October 2020, respectively. As at the date of this Report, Susan, Dion and Christine each met the MSR. 122 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Payments to past Directors and for loss of office UK regulations require the inclusion in the Remuneration Report of certain payments to past Directors and payments made for loss of office. The following payments were made to Andrew Mackenzie for FY2021 that relate to the period when he was no longer an Executive Director and CEO and which have not been reported elsewhere in this section 2.2.3: 100 per cent of the 254,815 retained LTIP awards granted in 2016, reduced from 339,753 awards originally granted and prorated for time served at the time of departure, vested on 18 August 2021. The value of these awards for Andrew was US$10.517 million, including a related DEP of US$1.710 million which was paid in shares. During FY2021, Andrew was provided tax return preparation services of US$0.073 million in respect of his tax obligations in multiple jurisdictions for BHP employment income in accordance with contractual and termination arrangements. The Remuneration Committee has adopted a de minimis threshold of US$7,500 for disclosure of payments to past Directors under UK requirements. There were no payments made for loss of office in FY2021. Relative importance of spend on pay The table below sets out the total spend for Continuing operations on employee remuneration during FY2021 (and the prior year) compared with other significant expenditure items, and includes items as prescribed in the UK requirements. BHP has included tax payments and purchases of property, plant and equipment being the most significant other outgoings in monetary terms. US$ million FY2021 FY2020 Aggregate employee benefits expense 4,842 4,120 Dividends paid to BHP shareholders(1) 7,901 6,876 Income tax paid and royalty-related taxation paid (net of refunds) 7,610 5,944 Purchases of property, plant and equipment 6,606 6,900 (1) There were no share buybacks in FY2021 or FY2020. Transactions with KMP During the financial year, there were no transactions between the Group and its subsidiaries and KMP (including their related parties) (2020: US$ nil; 2019: US$ nil). There were no amounts payable by or loans with KMP (including their related parties) at 30 June 2021 (2020: US$ nil). A number of KMP hold or have held positions in other companies (i.e. personally related entities) where it is considered they control or significantly influence the financial or operating policies of those entities. There have been no transactions with those entities and no amounts were owed by the Group to personally related entities or any other related parties (2020: US$ nil; 2019: US$ nil). This Remuneration Report was approved by the Board on 2 September 2021 and signed on its behalf by: Christine O'Reilly Chair, Remuneration Committee 2 September 2021 BHP Annual Report 2021 123

2.3 Directors' Report The BHP information Group Plc and presented their respective by the Directors subsidiaries in this . Directors' Report relates to BHP Group Limited, Section 1 'Strategic Report' (which includes the Chair's review in section 1.2 and the Chief Executive Officer's review in section 1.3, and incorporates the operating and financial review), section 2.1 'Corporate Governance Statement', section 2.2 'Remuneration Report', section 3.5 'Lead Auditor's Independence Declaration' and section 4 'Additional information' are each incorporated by reference into, and form part of, this Directors' Report. In addition, for the purposes of UK law, the Strategic Report in section 1 and the Remuneration Report in section 2.2 form separate reports and have been separately approved by the Board for that purpose. For the purpose of the Financial Conduct Authority's (FCA) Listing Rule 9.8.4C R, the applicable information required to be disclosed in accordance with FCA Listing Rule 9.8.4 R is set out in the sections below. Applicable information required by FCA Listing Rule 9.8.4 R Section in this Annual Report (1) Interest capitalised by the Group Section 3, note 22 'Net finance costs' Paragraphs (2), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13) and (14) of Listing Rule 9.8.4 R are not applicable. The Directors confirm, on the advice of the Risk and Audit Committee (RAC), that they consider the Annual Report (including the Financial Statements), taken as a whole, is fair, balanced and understandable, and provides the information necessary for shareholders to assess BHP's position, performance, business model and strategy. 2.3.1 Review of operations, principal activities and state of affairs A review of the operations of BHP during FY2021, the results of those operations during FY2021 and the expected results of those operations in future financial years are set out in section 1, in particular in 1.2 to 1.15, 1.17 and 1.18 and in other material in this Annual Report. Information on the development of BHP and likely developments in future years also appears in those sections. We have excluded certain information from the Strategic Report in section 1 (which forms part of this Directors' Report), to the extent permitted by UK and Australian law, on the basis that such information relates to impending developments or matters in the course of negotiation and disclosure would be seriously prejudicial to the interests of BHP. This is because such disclosure could be misleading due to the fact it is premature or preliminary in nature, relates to commercially sensitive contracts, would undermine confidentiality between BHP and our suppliers and clients, or would otherwise unreasonably damage BHP. The categories of information omitted include forward looking estimates and projections prepared for internal management purposes, information regarding BHP's assets and projects, which is developing and susceptible to change, and information relating to commercial contracts and pricing modules. Our principal activities during FY2021 are disclosed in section 1. We are among the world's top producers of major commodities, including iron ore, metallurgical coal and copper. We also have substantial interests in oil, gas and energy coal. No significant changes in the nature of BHP's principal activities occurred during FY2021 other than as disclosed in section 1. There were no significant changes in BHP's state of affairs that occurred during FY2021 and no significant post balance date events other than as disclosed in section 1 and note 35 'Subsequent events' in section 3. No other matter or circumstance has arisen since the end of FY2021 that has significantly affected or is expected to significantly affect the operations, the results of operations or state of affairs of BHP in future years. 2.3.2 Share capital and buy-back programs At the Annual General Meetings held in 2019 and 2020, shareholders authorised BHP Group Plc to make on-market purchases of up to 211,207,180 of its ordinary shares, representing 10 per cent of BHP Group Plc's issued share capital at that time. During FY2021, we did not make any on-market or off-market purchases of BHP Group Limited or BHP Group Plc shares under any share buy-back program. As at the date of this Directors' Report, there were no current on-marketbuy-backs. Shareholders will be asked at the 2021 Annual General Meetings to renew this authority. As at the date of this Directors' Report, there is no intention to exercise this authority. Some of our executives receive rights over BHP shares as part of their remuneration arrangements. Entitlements may be satisfied by the transfer of existing shares, which are acquired on-market by the Employee Share Ownership Plan (ESOP) Trusts or, in respect of some entitlements, by the issue of shares. The number of shares referred to in column A below were purchased to satisfy awards made under the various BHP Group Limited and BHP Group Plc employee share schemes during FY2021. A B C D Total number of shares of shares Total purchased number purchased as part of Average price paid publicly announced Maximum number of shares that may yet be and transferred to per share(1) plans or programs purchased under the plans or programs employees to satisfy Period employee awards US$ BHP Group Limited(2) BHP Group Plc 1 Jul 2020 to 31 Jul 2020 211,207,180(3) 1 Aug 2020 to 31 Aug 2020 6,158,718 28.32 211,207,180(3) 1 Sep 2020 to 30 Sep 2020 211,207,180(3) 1 Oct 2020 to 31 Oct 2020 211,207,180(3) 1 Nov 2020 to 30 Nov 2020 211,207,180(3) 1 Dec 2020 to 31 Dec 2020 211,207,180(3) 1 Jan 2021 to 31 Jan 2021 211,207,180(3) 1 Feb 2021 to 28 Feb 2021 211,207,180(3) 1 Mar 2021 to 31 Mar 2021 882,454 36.57 211,207,180(3) 1 Apr 2021 to 30 Apr 2021 211,207,180(3) 1 May 2021 to 31 May 2021 211,207,180(3) 1 Jun 2021 to 30 Jun 2021 731,235 38.00 211,207,180(3) Total 7,772,407 30.16 211,207,180(3) (1) The shares were purchased in the currency of the stock exchange on which the purchase took place and the sale price has been converted into US dollars at the exchange rate on the day of purchase. (2) BHP 2001 Group . Any future Limited on -is market able to share buy- back buy-back and cancel program BHP would Group be Limited conducted shares in accordance within the '10/12 with limit' the Australian without shareholder Corporations approval Act 2001 in accordance and with the with ASX section Listing Rules 257B .of the Australian Corporations Act (3) of At BHP the Annual Group General Plc's issued Meetings capital held at the during time .2019 and 2020, shareholders authorised BHP Group Plc to make on-market purchases of up to 211,207,180 of its ordinary shares, representing 10 per cent 124 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.3.3 Results, financial instruments and going concern Information about the Group's financial position and financial results is included in the Financial Statements in this Annual Report. The Consolidated Income Statement shows profit attributable to BHP members of US$11.3 billion in FY2021, compared with a profit of US$8.0 billion in FY2020. BHP's business activities, together with the factors likely to affect its future development, performance and position, are discussed in section 1. In addition, sections 1.3 to 1.9 and 2.1.13, and note 23 'Financial risk management' in section 3 outline BHP's capital management objectives, its approach to financial risk management and exposure to financial risks, liquidity and borrowing facilities. The Directors, having made appropriate enquiries, have a reasonable expectation that BHP has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the annual Financial Statements. 2.3.4 Directors The Directors who served at any time during FY2021 or up until the date of this Directors' Report were Ken MacKenzie, Mike Henry, Terry Bowen, Malcolm Broomhead, Xiaoqun Clever, Ian Cockerill, Anita Frew, Gary Goldberg, Susan Kilsby, Lindsay Maxsted, John Mogford, Christine O'Reilly, Shriti Vadera and Dion Weisler. For information on the current Directors of BHP Group Limited and BHP Group Plc, refer to section 2.1.2. These details include the period for which each Director held office up to the date of this Directors' Report, their qualifications, experience and particular responsibilities, the directorships held in other listed companies since 1 July 2018 and the period for which each directorship has been held. Shriti Vadera served as a Non-executive Director of BHP Group Limited and BHP Group Plc from January 2011 until her retirement on 15 October 2020. Lindsay Maxsted served as a Non-executive Director of BHP Group Limited and BHP Group Plc from March 2011 until his retirement on 4 September 2020. Xiaoqun Clever and Christine O'Reilly were appointed as Non-executive Directors of BHP Group Limited and BHP Group Plc with effect from 1 October 2020 and 12 October 2020 respectively and were elected at the 2020 Annual General Meetings. The number of meetings of the Board and its Committees held during the year and each Director's attendance at those meetings are set out in section 2.1.4. 2.3.5 Remuneration and share interests Remuneration The policy for determining the nature and amount of emoluments of the Executive Key Management Personnel (KMP) (including the Executive Director) and the Non-executive Directors, and information about the relationship between that policy and BHP's performance are set out in sections 2.2.2 and 2.2.3. The remuneration tables contained in section 2.2.3 set out the remuneration of members of the Executive KMP (including the Executive Director) and the Non-executive Directors. Directors 'Ordinary share holdings and transactions' in section 2.2.3 sets out the relevant interests in shares in BHP Group Limited and BHP Group Plc of the Directors who held office during FY2021, at the beginning and end of FY2021. No rights or options over shares in BHP Group Limited and BHP Group Plc are held by any of the Non-executive Directors. Interests held by the Executive Director under employee equity plans as at 30 June 2021 are set out in the tables showing interests in incentive plans contained in 'Equity awards' in section 2.2.3. Except for Mike Henry, as at the date of this Directors' Report, the information pertaining to shares in BHP Group Limited and BHP Group Plc held directly, indirectly or beneficially by Directors is the same as set out in the table in 'Ordinary share holdings and transactions' in section 2.2.3. Where applicable, the information includes shares held in the name of a spouse, superannuation fund, nominee and/or other controlled entities. Non-executive Directors have agreed to apply at least 25 per cent of their remuneration (base fees plus committee fees) to the purchase of shares in BHP Group Limited and BHP Group Plc until they achieve a shareholding equivalent in value to one year's remuneration (base fees plus committee fees). Thereafter, Non-executive Directors must maintain at least that level of shareholding throughout their tenure. All dealings by Directors are subject to mandatory minimum performance requirements for securities dealing and are reported to the Board and to the stock exchanges. Information on our policy governing the use of hedging arrangements over shares in BHP by Directors and other members of the KMP is set out in 'Prohibition on hedging of BHP Group shares and equity instruments' in section 2.2.3. As at the date of this Directors' Report, Mike Henry held: (either directly, indirectly or beneficially) 196,262 shares in BHP Group Plc and 325,330 shares in BHP Group Limited rights and options over nil shares in BHP Group Plc and 772,999 shares in BHP Group Limited We have not made available to any Directors any interest in a registered scheme. Key Management Personnel 'Ordinary share holdings and transactions' in section 2.2.3 sets out the relevant interests in shares in BHP Group Limited and BHP Group Plc held directly, indirectly or beneficially at the beginning and end of FY2021 by those senior executives who were Executive KMP (other than the Executive Director) during FY2021. Where applicable, the information includes shares held in the name of a spouse, superannuation fund, nominee and/or other controlled entities. Interests held by members of the Executive KMP under employee equity plans as at 30 June 2021 are set out in the tables contained in 'Equity awards' in section 2.2.3. BHP Annual Report 2021 125

2.3 Directors' Report continued The table below sets out the relevant interests in shares in BHP Group Limited and BHP Group Plc held directly, indirectly or beneficially, as at the date of this Directors' Report by those senior executives who were Executive KMP (other than the Executive Director) on that date. Where applicable, the information also includes shares held in the name of a spouse, superannuation fund, nominee and/or other controlled entities. Executive KMP member BHP Group entity As at date of Directors' Report Edgar Basto BHP Group Limited; 130,038 BHP Group Plc David Lamont BHP Group Limited 6,345 BHP Group Plc Geraldine Slattery BHP Group Limited 123,640 BHP Group Plc Ragnar Udd BHP Group Limited 118,557 BHP Group Plc 2.3.6 Secretaries Stefanie Wilkinson is the Group Company Secretary. For details of her qualifications and experience, refer to section 2.1.2. The following people also acted during FY2021 as Company Secretaries of BHP Group Limited and BHP Group Plc: Caroline Cox BA (Hons), MA, LLB, BCL until 1 March 2021, Rachel Agnew, BComm (Economics), LLB (Hons), GAICD, until 1 September 2020 and Geof Stapledon, BEc, LLB (Hons), DPhil, FCIS. Geof Stapledon resigned as Company Secretary of BHP Group Limited and BHP Group Plc with effect from 7 July 2021. Prakash Kakkad, LLB, LPC was appointed as a Company Secretary of BHP Group Limited and BHP Group Plc and John-Paul Santamaria, BEng (Civil) (Hons), LLB was appointed as a Company Secretary of BHP Group Limited, in each case with effect from 7 July 2021. Each individual has experience in a company secretariat role or other relevant fields arising from time spent in roles within BHP, other large listed companies or other relevant entities. 2.3.7 Indemnities and insurance Rule 146 of the BHP Group Limited Constitution and Article 146 of the BHP Group Plc Articles of Association require each company to indemnify, to the extent permitted by law, each Officer of BHP Group Limited and BHP Group Plc, respectively, against liability incurred in, or arising out of, the conduct of the business of BHP or the discharge of the duties of the Officer. The Directors named in section 2.1.2, the Company Secretaries and other Officers of BHP Group Limited and BHP Group Plc have the benefit of this requirement, as do individuals who formerly held one of those positions. In accordance with this requirement, BHP Group Limited and BHP Group Plc have entered into Deeds of Indemnity, Access and Insurance (Deeds of Indemnity) with each of their respective Directors. The Deeds of Indemnity are qualifying third party indemnity provisions for the purposes of the UK Companies Act 2006 and each of these qualifying third party indemnities was in force as at the date of this Directors' Report. We have a policy that BHP will, as a general rule, support and hold harmless an employee, including an employee appointed as a Director of a subsidiary who, while acting in good faith, incurs personal liability to others as a result of working for BHP. In addition, as part of the arrangements to effect the demerger of South32, we agreed to indemnify certain former Officers of BHP who transitioned to South32 from certain claims and liabilities incurred in their capacity as Directors or Officers of South32. From time to time, we engage our External Auditor, Ernst & Young (EY), to conduct non-statutory audit work and provide other services in accordance with our policy on the provision of other services by the External Auditor. The terms of engagement in the United Kingdom include that we must compensate and reimburse EY LLP for, and protect EY LLP against, any loss, damage, expense, or liability incurred by EY LLP in respect of third party claims arising from a breach by BHP of any obligation under the engagement terms. In Australia, the terms of engagement for certain services include that we must compensate and reimburse EY for, and protect EY against, any loss, damage, expense, or liability incurred by EY in respect of third party claims arising from a breach by BHP of any obligation under the engagement terms. We have insured against amounts that we may be liable to pay to Directors, Company Secretaries or certain employees (including former Officers) pursuant to Rule 146 of the Constitution of BHP Group Limited and Article 146 of the Articles of Association of BHP Group Plc or that we otherwise agree to pay by way of indemnity. The insurance policy also insures Directors, Company Secretaries and some employees (including former Officers) against certain liabilities (including legal costs) they may incur in carrying out their duties. For this Directors' and Officers' insurance, we paid premiums of US$24,114,600 excluding taxes during FY2021. During FY2021, BHP paid legal defence costs for certain current and former employees of BHP or BHP Brasil in relation to the criminal charges filed by the Federal Prosecutors' Office in Brazil. In addition, BHP paid legal defence costs for Roger Gilbertson, a former BHP Bolivia country manager, in connection with the Bolivian authorities' decision to criminally prosecute two former presidents of Bolivia and a number of former international oil company executives in relation to exploration and production contracts entered into between 1994 and 1997. Other than as set out above, no indemnity in favour of a current or former officer of BHP Group Limited or BHP Group Plc, or in favour of the External Auditor, was called on during FY2021. 2.3.8 Employee policies Our people are fundamental to our success. We are committed to shaping a culture where our employees are provided with opportunities to develop, are valued and encouraged to contribute towards making work safer, simpler and more productive. We strongly believe that having employees who are engaged and connected to BHP reinforces our shared purpose aligned to Our Charter and will result in a more productive workplace. For more information on employee engagement and employee policies, including communications and regarding disabilities refer to section 1.14, 1.12 and in 'Workforce engagement' in section 2.1.6 126 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2.3.9 Corporate governance The FCA's Disclosure Guidance and Transparency Rules (DTR 7.2) require that certain information be included in a corporate governance statement. BHP has an existing practice of issuing a corporate governance statement as part of our Annual Report that is incorporated into the Directors' Report by reference. The information required by the Disclosure Guidance and Transparency Rules and the FCA's Listing Rules (LR 9.8.6) is located in section 2, with the exception of the information referred to in LR 9.8.6 (1), (3) and (4) and DTR 7.2.6, which is located in sections 2.3.2, 2.3.3, 'Directors' in section 2.3.5 and 2.3.18. 2.3.10 Dividends A final dividend of 200 US cents per share will be paid on 21 September 2021, resulting in total dividends determined in respect of FY2021 of 301 US cents per share. For information on the dividends paid, refer to notes 16 'Share capital' and 18 'Dividends' in section 3. For information on the Group's dividend policy refer to section 4.10.7 2.3.11 Auditors A copy of the declaration given by our External Auditor to the Directors in relation to the auditors' compliance with the independence requirements of the Australian Corporations Act 2001 and the Professional Code of Conduct for External Auditors is set out in section 3.5. No current officer of BHP has held the role of director or partner of the Group's current external auditor. During FY2021, Lindsay Maxsted was the only officer of BHP who, prior to his appointment as an officer of BHP, previously held the role of director or partner of the Group's former external auditor, at a time when the Group's former external auditor conducted an audit of BHP. KPMG resigned as BHP's external auditor on 7 November 2019 following the conclusion of the 2019 AGMs, in order to comply with UK and EU requirements on auditor tenure. Lindsay Maxsted was not part of the KPMG audit practice after 1980 and, while at KPMG, was not in any way involved in, or able to influence, any audit activity associated with BHP. Lindsay Maxsted retired as a Non-executive Director of BHP Group Limited and BHP Group Plc on 4 September 2020. Each person who held the office of Director at the date the Board approved this Directors' Report made the following statements: so far as the Director is aware, there is no relevant audit information of which BHP's External Auditor is unaware the Director has taken all steps that he or she ought to have taken as a Director to make him or herself aware of any relevant audit information and to establish that BHP's External Auditor is aware of that information This confirmation is given pursuant to section 418 of the UK Companies Act 2006 and should be interpreted in accordance with, and subject to, those provisions. Consistent with the then applicable UK and EU requirements in regard to audit firm tender and rotation, BHP conducted an audit tender during FY2017. After a comprehensive tender process, at a meeting held on 16 August 2017, the Board selected EY as its independent registered public accounting firm from the financial year beginning 1 July 2019, and our shareholders approved EY's appointment at the Annual General Meetings in 2019. 2.3.12 Non-audit services Information on the non-audit services undertaken by BHP's External Auditor, including the amounts paid for non-audit services, refer to note 36 'Auditor's remuneration' in section 3. All non-audit services were approved in accordance with the process set out in the Policy on Provision of Audit and Other Services by the External Auditor. No non-audit services were carried out that were specifically excluded by the Policy on Provision of Audit and Other Services by the External Auditor. Based on advice provided by the RAC, the Directors have formed the view that the provision of non-audit services is compatible with the general standard of independence for auditors, and that the nature of non-audit services means that auditor independence was not compromised. For a statement of the reasons for this view and for more information about our policy in relation to the provision of non-audit services by the auditor, refer to section 2.1.10. 2.3.13 Political donations We maintain a position of impartiality with respect to party politics and do not make political contributions or expenditure/donations for political purposes to any political party, politician, elected official or candidate for public office. We do, however, contribute to the public debate of policy issues that may affect BHP in the countries in which we operate. No political contributions/donations for political purposes were made by BHP to any political party, politician, elected official or candidate for public office during FY2021.(1) 2.3.14 Exploration, research and development Companies within the Group carry out exploration and research and development necessary to support their activities. Details are provided in sections 1.10 to 1.17 and 4.6. 2.3.15 ASIC Instrument 2016/191 BHP Group Limited is an entity to which Australian Securities and Investments Commission (ASIC) Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191 dated 24 March 2016 applies. Amounts in this Directors' Report and the Financial Statements, except estimates of future expenditure or where otherwise indicated, have been rounded to the nearest million dollars in accordance with ASIC Instrument 2016/191. 2.3.16 Proceedings on behalf of BHP Group Limited No proceedings have been brought on behalf of BHP Group Limited, nor has any application been made, under section 237 of the Australian Corporations Act 2001. (1) Note where that a political Australian party Electoral or organisation Commission owns (AEC) shares disclosure in BHP, the requirements AEC filing requires are broad, the such political that party amounts or organisation that are not to political disclose donations the dividend can be payments reportable received for AEC in purposes respect of . For their example, shareholding . BHP Annual Report 2021 127

2.3.17 Performance in relation to environmental regulation BHP seeks to be compliant with all applicable environmental laws and regulations relevant to its operations. We monitor compliance on a regular basis, including through external and internal means, to minimise the risk of non-compliance. For more information on BHP's performance in relation to health, safety and the environment, refer to section 1.13. Fines and prosecutions For the purposes of section 299 (1)(f) of the Australian Corporations Act 2001, in FY2021 BHP was levied four fines in relation to environmental laws and regulations at our operated assets, the total amount payable being US$35,526. Three fines were received in Australia: the first fine was received at the Caval Ridge Mine for mine affected water release (US$10,187), the second fine was received at the Poitrel Mine for unverified environmental monitoring data (US$10,329) and the third fine was received at Ripstone Dam for water monitoring telemetry system failure (US$10,417). One fine was received in South America, at the Spence Mine for incorrect waste storage (US$4,593). Greenhouse gas emissions and energy consumption Regulations made under the UK Companies Act 2006 require BHP, to the extent practicable, to obtain relevant information on the Group's annual quantity of greenhouse gas emissions, which is reported in tonnes of carbon dioxide equivalent, and the Group's energy consumption. In accordance with those UK requirements, information on BHP's total FY2021 greenhouse gas emissions and intensity and energy consumption has been included in sections 1.13.7 and 4.8. For more information on environmental performance, including environmental regulation, refer to section 1.13 2.3.18 Share capital, restrictions on transfer of shares and other additional information Information relating to BHP Group Plc's share capital structure, restrictions on the holding or transfer of its securities or on the exercise of voting rights attaching to such securities, certain agreements triggered on a change of control and the existence of branches of BHP outside of the United Kingdom, is set out in the following sections: section 1.10.1 (Locations) section 2.3.2 (Share capital and buy-back programs) section 4.10.3 (Organisational structure) section 4.10.4 (Material contracts) section 4.10.5 (Constitution) section 4.10.6 (Share ownership) section 4.10.9 (Government regulations) note 16 'Share capital' and note 25 'Employee share ownership plans' in section 3 As at the date of this Directors' Report, there were 13,607,440 unvested equity awards outstanding in relation to BHP Group Limited ordinary shares held by 18,942 holders and 324,504 unvested equity awards outstanding in relation to BHP Group Plc ordinary shares held by 1,015 holders. The expiry dates of these unvested equity awards range between February 2022 and August 2025 and there is no exercise price. 4,155 options over unissued shares or unissued interests in BHP have been granted during or since the end of FY2021 and 4,096,660 shares or interests were issued as a result of the exercise of an option over unissued shares or interests during or since the end of FY2021. For more information, refer to note 25 'Employee share ownership plans' in section 3. For information on movements in share capital during and since the end of FY2021, refer to note 16 'Share capital' in section 3. The Directors' Report is approved in accordance with a resolution of the Board. Ken MacKenzie Mike Henry Chair Chief Executive Officer Dated: 2 September 2021 128 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Section 3 Financial Statements In this section: 3.1 Consolidated Financial Statements 130 Employee matters 3.1.1 Consolidated Income Statement 130 24 Key management personnel 174 3.1.2 Consolidated Statement of Comprehensive Income 130 25 Employee share ownership plans 174 3.1.3 Consolidated Balance Sheet 131 26 Employee benefits, restructuring and 177 3.1.4 Consolidated Cash Flow Statement 132 post-retirement employee benefits provisions 3.1.5 Consolidated Statement of Changes in Equity 133 27 Pension and other post-retirement obligations 178 3.1.6 Notes to the Financial Statements 137 28 Employees 179 3.2 BHP Group Plc 189 Group and related party information 3.3 Directors' declaration 200 29 Discontinued operations 179 3.4 Statement of Directors' responsibilities in respect 201 30 Subsidiaries 180 of the Annual Report and the Financial Statements 31 Investments accounted for using the equity method 180 3.5 Lead under Auditor's Section 307C Independence of the Australian Declaration 202 32 Interests in joint operations 183 33 Related party transactions 183 Corporations Act 2001 Unrecognised items and uncertain events 3.6 Independent Auditors' reports 203 34 Contingent liabilities 184 3.7 Supplementary oil and gas information unaudited 213 Notes to the Financial Statements 35 Subsequent events 185 Other items Performance 36 Auditor's remuneration 185 1 Segment reporting 137 37 BHP Group Limited 186 2 Revenue 139 38 Deed of Cross Guarantee 186 3 Exceptional items 140 39 New and amended accounting standards and 188 4 Significant events Samarco dam failure 141 interpretations and changes to accounting policies 5 Expenses and other income 146 6 Income tax expense 147 About these Financial Statements 7 Earnings per share 149 Reporting entity Working capital BHP Group Limited, an incorporated Australian-listed company, and BHP 8 Trade and other receivables 150 Group Plc, an incorporated UK-listed company, form a Dual Listed Company (DLC). These entities and their subsidiaries operate together as a single for- 9 Trade and other payables 150 profit economic entity (referred to as 'BHP' or 'the Group') with a common 10 Inventories 151 Board of Directors, unified management structure and joint objectives. Resource assets In effect, the DLC structure provides the same voting rights and dividend entitlements from BHP Group Limited and BHP Group Plc irrespective of 11 Property, plant and equipment 151 whether investors hold shares in BHP Group Limited or BHP Group Plc. 12 Intangible assets 154 Group and related party information is presented in note 33 'Related party 13 Impairment of non-current assets 154 transactions' in section 3.1. This details transactions between the Group's Deferred tax balances 158 subsidiaries, associates, joint arrangements and other related parties. 14 The nature of the operations and principal activities of the Group are 15 Closure and rehabilitation provisions 159 described in the segment information (refer to note 1 'Segment reporting' Capital Structure in section 3.1). 16 Share capital 161 Presentation of the Consolidated Financial Statements 17 Other equity 162 BHP Group Limited and BHP Group Plc Directors have included information in this report they deem to be material and relevant to the understanding 18 Dividends 163 of the Consolidated Financial Statements (the Financial Statements). 19 Provisions for dividends and other liabilities 163 Disclosure may be considered material and relevant if the dollar amount Financial Management is significant due to its size or nature, or the information is important to understand the: 20 Net debt 164 Group's current year results 21 Leases 165 impact of significant changes in the Group's business or 22 Net finance costs 167 aspects of the Group's operations that are important to 23 Financial risk management 168 future performance These Financial Statements were approved by the Board of Directors on 2 September 2021. The Directors have the authority to amend the Financial Statements after issuance. BHP Annual Report 2021 129

3.1 Consolidated Financial Statements 3.1.1 Consolidated Income Statement for the year ended 30 June 2021 Notes US 2021 $M US 2020 $M US 2019 $M Continuing operations Revenue 2 60,817 42,931 44,288 Other income 5 510 777 393 Expenses excluding net finance costs 5 (34,500) (28,775) (28,022) Loss from equity accounted investments, related impairments and expenses 31 (921) (512) (546) Profit from operations 25,906 14,421 16,113 Financial expenses (1,378) (1,262) (1,510) Financial income 73 351 446 Net finance costs 22 (1,305) (911) (1,064) Profit before taxation 24,601 13,510 15,049 Income tax expense (10,921) (4,708) (5,335) Royalty-related taxation (net of income tax benefit) (229) (66) (194) Total taxation expense 6 (11,150) (4,774) (5,529) Profit after taxation from Continuing operations 13,451 8,736 9,520 Discontinued operations Loss after taxation from Discontinued operations 29 - (335) Profit after taxation from Continuing and Discontinued operations 13,451 8,736 9,185 Attributable to non-controlling interests 2,147 780 879 Attributable to BHP shareholders 11,304 7,956 8,306 Basic earnings per ordinary share (cents) 7 223.5 157.3 160.3 Diluted earnings per ordinary share (cents) 7 223.0 157.0 159.9 Basic earnings from Continuing operations per ordinary share (cents) 7 223.5 157.3 166.9 Diluted earnings from Continuing operations per ordinary share (cents) 7 223.0 157.0 166.5 The accompanying notes form part of these Financial Statements. 3.1.2 Consolidated Statement of Comprehensive Income for the year ended 30 June 2021 Notes US 2021 $M US 2020 $M US 2019 $M Profit after taxation from Continuing and Discontinued operations 13,451 8,736 9,185 Other comprehensive income Items that may be reclassified subsequently to the income statement: Hedges: Gains/(losses) taken to equity 863 (315) (327) (Gains)/losses transferred to the income statement (837) 297 299 Exchange fluctuations on translation of foreign operations taken to equity 5 1 1 Exchange fluctuations on translation of foreign operations transferred to income statement - (6) Tax recognised within other comprehensive income 6 (8) 5 8 Total items that may be reclassified subsequently to the income statement 23 (12) (25) Items that will not be reclassified to the income statement: Re-measurement gains/(losses) on pension and medical schemes 58 (81) (20) Equity investments held at fair value (2) (2) 1 Tax recognised within other comprehensive income 6 (20) 26 19 Total items that will not be reclassified to the income statement 36 (57) -Total other comprehensive income/(loss) 59 (69) (25) Total comprehensive income 13,510 8,667 9,160 Attributable to non-controlling interests 2,158 769 878 Attributable to BHP shareholders 11,352 7,898 8,282 The accompanying notes form part of these Financial Statements. 130 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 3.1.3 Consolidated Balance Sheet as at 30 June 2021 2021 US 2020 $M Notes US$M Restated ASSETS Current assets Cash and cash equivalents 20 15,246 13,426 Trade and other receivables 8 6,059 3,364 Other financial assets 23 230 84 Inventories 10 4,426 4,101 Assets held for sale 31 324 Current tax assets 279 366 Other 129 130 Total current assets 26,693 21,471 Non-current assets Trade and other receivables 8 337 267 Other financial assets 23 1,610 2,522 Inventories 10 1,358 1,221 Property, plant and equipment 11 73,813 72,362 Intangible assets 12 1,437 1,574 Investments accounted for using the equity method 31 1,742 2,585 Deferred tax assets 14 1,912 3,688 Other 25 43 Total non-current assets 82,234 84,262 Total assets 108,927 105,733 LIABILITIES Current liabilities Trade and other payables 9 7,027 5,767 Interest bearing liabilities 20 2,628 5,012 Liabilities directly associated with the assets held for sale 31 17 Other financial liabilities 23 130 225 Current tax payable 2,800 913 Provisions 4,15,19,26 3,696 2,810 Deferred income 105 97 Total current liabilities 16,403 14,824 Non-current liabilities Trade and other payables 9-1 Interest bearing liabilities 20 18,355 22,036 Other financial liabilities 23 1,146 1,414 Non-current tax payable 120 109 Deferred tax liabilities 14 3,314 3,779 Provisions 4,15,19,26 13,799 11,185 Deferred income 185 210 Total non-current liabilities 36,919 38,734 Total liabilities 53,322 53,558 Net assets 55,605 52,175 EQUITY Share capital BHP Group Limited 1,111 1,111 Share capital BHP Group Plc 1,057 1,057 Treasury shares (33) (5) Reserves 17 2,350 2,306 Retained earnings 46,779 43,396 Total equity attributable to BHP shareholders 51,264 47,865 Non-controlling interests 17 4,341 4,310 Total equity 55,605 52,175 The accompanying notes form part of these Financial Statements. The Financial Statements were approved by the Board of Directors on 2 September 2021 and signed on its behalf by: Ken MacKenzie Chair Mike Henry Chief Executive Officer BHP Annual Report 2021 131

3.1.4 Consolidated Cash Flow Statement for the year ended 30 June 2021 Notes US 2021 $M US 2020 $M US 2019 $M Operating activities Profit before taxation 24,601 13,510 15,049 Adjustments for: Depreciation and amortisation expense 6,824 6,112 5,829 Impairments of property, plant and equipment, financial assets and intangibles 2,635 494 264 Net finance costs 1,305 911 1,064 Loss from equity accounted investments, related impairments and expenses 921 512 546 Other 348 720 308 Changes in assets and liabilities: Trade and other receivables (2,723) 291 (211) Inventories (447) (715) 298 Trade and other payables 1,201 (755) 406 Provisions and other assets and liabilities 501 1,188 (125) Cash generated from operations 35,166 22,268 23,428 Dividends received 753 137 516 Interest received 97 385 443 Interest paid (771) (1,225) (1,346) (Settlements)/proceeds of cash management related instruments (401) 85 296 Net income tax and royalty-related taxation refunded 407 48 59 Net income tax and royalty-related taxation paid (8,017) (5,992) (5,999) Net operating cash flows from Continuing operations 27,234 15,706 17,397 Net operating cash flows from Discontinued operations 29 --474 Net operating cash flows 27,234 15,706 17,871 Investing activities Purchases of property, plant and equipment (6,606) (6,900) (6,250) Exploration expenditure (514) (740) (873) Exploration expenditure expensed and included in operating cash flows 430 517 516 Investment in subsidiaries, operations and joint operations, net of cash (480)--Net investment and funding of equity accounted investments (578) (618) (630) Proceeds from sale of assets 197 265 145 Other investing (294) (140) (285) Net investing cash flows from Continuing operations (7,845) (7,616) (7,377) Net investing cash flows from Discontinued operations 29 --(443) Proceeds from divestment of Onshore US, net of its cash 29 --10,427 Net investing cash flows (7,845) (7,616) 2,607 Financing activities Proceeds from interest bearing liabilities 568 514 250 Proceeds/(settlements) of debt related instruments 167 (157) (160) Repayment of interest bearing liabilities (8,395) (2,047) (2,604) Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts (234) (143) (188) Share buy-back BHP Group Limited --(5,220) Dividends paid (7,901) (6,876) (11,395) Dividends paid to non-controlling interests (2,127) (1,043) (1,198) Net financing cash flows from Continuing operations (17,922) (9,752) (20,515) Net financing cash flows from Discontinued operations 29 --(13) Net financing cash flows (17,922) (9,752) (20,528) Net increase/(decrease) in cash and cash equivalents from Continuing operations 1,467 (1,662) (10,495) Net increase/(decrease) in cash and cash equivalents from Discontinued operations --18 Proceeds from divestment of Onshore US, net of its cash --10,427 Cash and cash equivalents, net of overdrafts, at the beginning of the financial year 13,426 15,593 15,813 Foreign currency exchange rate changes on cash and cash equivalents 353 (505) (170) Cash and cash equivalents, net of overdrafts, at the end of the financial year 20 15,246 13,426 15,593 The accompanying notes form part of these Financial Statements. 132 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 3.1.5 Consolidated Statement of Changes in Equity for the year ended 30 June 2021 Attributable to BHP shareholders Share capital Treasury shares BHP BHP BHP BHP attributable Total equity Non- US$M Limited Group Group Plc Limited Group Group Plc Reserves Retained earnings shareholders to BHP controlling interests equity Total Balance as at 1 July 2020 (restated) 1,111 1,057 (5)-2,306 43,396 47,865 4,310 52,175 Total comprehensive income - - 22 11,330 11,352 2,158 13,510 Transactions with owners: Purchase of shares by ESOP Trusts - (229) (5) - (234)-(234) Employee share awards exercised net of employee contributions net of tax - 202 4 (149) (57) - -Vested employee share awards that have lapsed, been cancelled or forfeited - - (4) 4 - -Accrued employee entitlement for unexercised awards net of tax - - 175-175-175 Dividends - --(7,894) (7,894) (2,127) (10,021) Balance as at 30 June 2021 1,111 1,057 (32) (1) 2,350 46,779 51,264 4,341 55,605 Balance as at 1 July 2019 (restated) 1,111 1,057 (32)-2,285 42,748 47,169 4,584 51,753 Total comprehensive income - - (12) 7,910 7,898 769 8,667 Transactions with owners: Purchase of shares by ESOP Trusts - (139) (4) - (143)-(143) Employee share awards exercised net of employee contributions net of tax - 166 4 (132) (38) - -Vested employee share awards that have lapsed, been cancelled or forfeited - - (10) 10 - -Accrued employee entitlement for unexercised awards net of tax - - 175-175-175 Dividends - --(7,234) (7,234) (1,043) (8,277) Balance as at 30 June 2020 (restated) 1,111 1,057 (5)-2,306 43,396 47,865 4,310 52,175 Balance as at 1 July 2018 1,186 1,057 (5)-2,290 51,057 55,585 5,078 60,663 Impact of change in accounting policies (Note 39) - --(71) (71)-(71) Restated balance as at 1 July 2018 1,186 1,057 (5)-2,290 50,986 55,514 5,078 60,592 Total comprehensive income - - (24) 8,306 8,282 878 9,160 Transactions with owners: Purchase of shares by ESOP Trusts - (182) (6) - (188)-(188) Employee share awards exercised net of employee contributions net of tax - 155 6 (100) (61) - -Vested employee share awards that have lapsed, been cancelled or forfeited - - (18) 18 - -Accrued employee entitlement for unexercised awards net of tax - - 138-138-138 Dividends - --(11,302) (11,302) (1,205) (12,507) BHP Group Limited shares bought back and cancelled (75) - - (5,199) (5,274)-(5,274) Divestment of subsidiaries, operations and joint operations - - --(168) (168) Transfer to non-controlling interests - - (1)-(1) 1 -Balance as at 30 June 2019 (restated) 1,111 1,057 (32)-2,285 42,748 47,169 4,584 51,753 The accompanying notes form part of these Financial Statements. Basis of preparation The Group's Financial Statements as at and for the year ended 30 June 2021: are a consolidated general purpose financial report have been prepared in accordance with the requirements of the: Australian Corporations Act 2001 UK Companies Act 2006 have been prepared in accordance with accounting standards and interpretations collectively referred to as 'IFRS' in this report, which encompass the: International Financial Reporting Standards and interpretations as issued by the International Accounting Standards Board Australian Accounting Standards, being Australian equivalents to International Financial Reporting Standards and interpretations as issued by the Australian Accounting Standards Board (AASB) International Accounting Standards in conformity with the requirements of the UK Companies Act 2006 and International Financial Reporting Standards adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union (EU) International Accounting Standards adopted for use within the UK are prepared on a going concern basis as the Directors: have made an assessment of the Group's ability to continue as a going concern over the period to 30 September 2022 (the 'going concern period') consider it appropriate to adopt the going concern basis of accounting in preparing the Group's Financial Statements BHP Annual Report 2021 133

measure items on the basis of historical cost principles, except for the following items: derivative financial instruments and certain other financial assets and liabilities, which are carried at fair value non-current assets or disposal groups that are classified as held-for-sale or held-for-distribution, which are measured at the lower of carrying amount and fair value less costs to sell include significant accounting policies in the notes to the Financial Statements that summarise the recognition and measurement basis used and are relevant to an understanding of the Financial Statements include selected financial information of the BHP Group Limited parent entity in note 37 'BHP Group Limited'. Financial Statements of the BHP Group Plc parent entity are presented in section 3.2 'BHP Group Plc' apply a presentation currency of US dollars, consistent with the predominant functional currency of the Group's operations. Amounts are rounded to the nearest million dollars, unless otherwise stated, in accordance with ASIC (Rounding in Financial/Directors' Reports) Instrument 2016/191 present reclassified comparative information where required for consistency with the current year's presentation adopt all new and amended standards and interpretations under IFRS issued by the relevant bodies (listed above), that are mandatory for application in periods beginning on 1 July 2020. Those new and amended standards and interpretations did not require restatement of prior period financial information early adopt amendments to IFRS 9/AASB 9 'Financial Instruments' (IFRS 9), IAS 39/AASB 139 'Financial Instruments: Recognition and Measurement' (IAS 39); IFRS 7/AASB 7 'Financial Instruments: Disclosures' (IFRS 7); IFRS 4/AASB 4 'Insurance Contracts' (IFRS 4) and IFRS 16/AASB 16 'Leases' (IFRS 16) in relation to Interest Rate Benchmark Reform apply accounting policies consistently in all prior years presented including retrospective application of the Group's accounting policy change relating to Income Taxes. Refer to note 39 'New and amended accounting standards and interpretations and changes to accounting policies' for the impact on the Financial Statements have not early adopted any other standards and interpretations that have been issued or amended but are not yet effective The accounting policies are consistently applied by all entities included in the Financial Statements. Principles of consolidation In preparing the Financial Statements the effects of all intragroup balances and transactions have been eliminated. A list of significant entities in the Group, including subsidiaries, joint arrangements and associates at year-end is contained in note 30 'Subsidiaries', note 31 'Investments accounted for using the equity method' and note 32 'Interests in joint operations'. Subsidiaries: The Financial Statements of the Group include the consolidation of BHP Group Limited, BHP Group Plc and their respective subsidiaries, being the entities controlled by the parent entities during the year. Control exists where the Group: is exposed to, or has rights to, variable returns from its involvement with the entity has the ability to affect those returns through its power to direct the activities of the entity The ability to approve the operating and capital budget of a subsidiary and the ability to appoint key management personnel are decisions that demonstrate that the Group has the existing rights to direct the relevant activities of a subsidiary. Where the Group's interest is less than 100 per cent, the interest attributable to outside shareholders is reflected in non-controlling interests. The Financial Statements of subsidiaries are prepared for the same reporting period as the Group. The acquisition method of accounting is used to account for the Group's business combinations. Joint arrangements: The Group undertakes a number of business activities through joint arrangements, which exist when two or more parties have joint control. Joint arrangements are classified as either joint operations or joint ventures, based on the contractual rights and obligations between the parties to the arrangement: Joint operations: A joint operation is an arrangement in which the Group shares joint control, primarily via contractual arrangements with other parties. In a joint operation, the Group has rights to the assets and obligations for the liabilities relating to the arrangement. This includes situations where the parties benefit from the joint activity through a share of the output, rather than by receiving a share of the results of trading. In relation to the Group's interest in a joint operation, the Group recognises: its assets and liabilities, including its share of any assets and liabilities held or incurred jointly; revenue from the sale of its share of the output and its share of any revenue generated from the sale of the output by the joint operation; and its expenses including its share of expenses incurred jointly. All such amounts are measured in accordance with the terms of the arrangement, which is usually in proportion to the Group's interest in the joint operation. Joint ventures: A joint venture is a joint arrangement in which the parties that share joint control have rights to the net assets of the arrangement. A separate vehicle, not the parties, will have the rights to the assets and obligations for the liabilities relating to the arrangement. More than an insignificant share of output from a joint venture is sold to third parties, which indicates the joint venture is not dependent on the parties to the arrangement for funding, nor do the parties have an obligation for the liabilities of the arrangement. Joint ventures are accounted for using the equity accounting method. Associates: The Group accounts for investments in associates using the equity accounting method. An entity is considered an associate where the Group is deemed to have significant influence but not control or joint control. Significant influence is presumed to exist where the Group: has over 20 per cent but less than 50 per cent of the voting rights of an entity, unless it can be clearly demonstrated that this is not the case or holds less than 20 per cent of the voting rights of an entity; however, has the power to participate in the financial and operating policy decisions affecting the entity The Group uses the term 'equity accounted investments' to refer to joint ventures and associates collectively. Foreign currencies Transactions related to the Group's worldwide operations are conducted in a number of foreign currencies. The majority of the subsidiaries, joint arrangements and associates within each of the operations have assessed US dollars as the functional currency, however, some subsidiaries, joint arrangements and associates have functional currencies other than US dollars. Transactions and monetary items denominated in foreign currencies are translated into US dollars as follows: Foreign currency item Applicable exchange rate Transactions Date of underlying transaction Monetary assets and liabilities Period-end rate Foreign exchange gains and losses resulting from translation are recognised in the income statement, except for qualifying cash flow hedges (which are deferred to equity) and foreign exchange gains or losses on foreign currency provisions for site closure and rehabilitation costs (which are capitalised in property, plant and equipment for operating sites). On consolidation, the assets, liabilities, income and expenses of non-US dollar denominated functional currency entities are translated into US dollars using the following applicable exchange rates: Foreign currency amount Applicable exchange rate Income and expenses Date of underlying transaction Assets and liabilities Period-end rate Equity Historical rate Reserves Historical rate Foreign exchange differences resulting from translation are initially recognised in the foreign currency translation reserve and subsequently transferred to the income statement on disposal of a foreign operation. 134 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Significant accounting policies, judgements and estimates The Group has identified a number of accounting policies under which significant judgements, estimates and assumptions are made. All judgements, estimates and assumptions are based on the most current facts and circumstances and are reassessed on an ongoing basis. Actual results in future reporting periods may differ for these estimates under different assumptions and conditions. Significant judgements and key estimates and assumptions made in applying these accounting policies are embedded within the following notes: Note 4 Significant events Samarco dam failure 6 Taxation 10 Inventories 11 Exploration and evaluation 11 Development expenditure 11 Overburden removal costs 11 Depreciation of property, plant and equipment 13 Impairments of non-current assets 15 Closure and rehabilitation provisions 21 Leases The Samarco dam failure, impairment assessments and closure and rehabilitation provisions have been identified as areas involving significant judgement and where changes to key estimates and assumptions may materially affect financial results and the carrying amount of assets and liabilities to be reported in the next reporting period. Additional information including sensitivity analysis, where appropriate, has been provided in the relevant notes to enhance an understanding of the impact of key estimates and assumptions on the Group's financial position and performance. Reserve estimates Reserves are estimates of the amount of product that can be demonstrated to be able to be economically and legally extracted from the Group's properties. In order to estimate reserves, assumptions are required about a range of technical and economic factors, including quantities, qualities, production techniques, recovery efficiency, production and transport costs, commodity supply and demand, commodity prices and exchange rates. Estimating the quantity and/or quality of reserves requires the size, shape and depth of ore bodies or oil and gas reservoirs to be determined by analysing geological data, such as drilling samples and geophysical survey interpretations. Economic assumptions used to estimate reserves change from period-to-period as additional technical and operational data is generated. This process may require complex and difficult geological judgements to interpret the data. Additional information on the Group's mineral and oil and gas reserves and resources can be viewed within section 4.6. Section 4.6 is unaudited and does not form part of these Financial Statements. Reserve impact on financial reporting Estimates of reserves may change from period-to-period as the economic assumptions used to estimate reserves change and additional geological data is generated during the course of operations. Changes in reserves may affect the Group's financial results and financial position in a number of ways, including: asset carrying values may be affected due to changes in estimated future production levels depreciation, depletion and amortisation charged in the income statement may change where such charges are determined on the units of production basis, or where the useful economic lives of assets change overburden removal costs recorded on the balance sheet or charged to the income statement may change due to changes in stripping ratios or the units of production basis of depreciation closure and rehabilitation provisions may change where changes in estimated reserves affect expectations about the timing or cost of these activities the carrying amount of deferred tax assets may change due to changes in estimates of the likely recovery of the tax benefits Impact of COVID-19 pandemic The Group continues to actively monitor the impact of the COVID-19 pandemic, including the impact on economic activity and financial reporting. During the period the Group continued to experience lower volumes at certain of our operated assets and to incur incremental directly attributable costs including those associated with the increased provision of health and hygiene services, the impacts of maintaining social distancing requirements and demurrage and other standby charges related to delays caused by COVID-19. These incremental costs have been classified as an exceptional item, as outlined in note 3 'Exceptional items'. As the pandemic continues to evolve, with the extent and timing of impacts varying across the Group's key operating locations, it remains difficult to predict the full extent and duration of resulting operational and economic impacts for the Group. This uncertainty impacts judgements made by the Group, including those relating to assessing collectability of receivables and determining the recoverable values of the Group's non-current assets as outlined in notes 8 'Trade and other receivables' and 13 'Impairment of non-current assets', respectively. Given the uncertainty associated with the pandemic, management assesses the appropriate financial treatment and disclosure of COVID-19 impacts each reporting period. The ongoing uncertainty has also been considered in the Group's assessment of the appropriateness of adopting the going concern basis of preparation of the Consolidated Financial Statements. In assessing the appropriateness of the going concern assumption over the going concern period, management have stress tested BHP's most recent financial projections to incorporate a range of potential future outcomes by considering BHP's principal risks. The Group's financial forecasts, including downside commodity price and production scenarios, demonstrate that the Group believes that it has sufficient financial resources to meet its obligations as they fall due throughout the going concern period. As such, the Consolidated Financial Statements continue to be prepared on the going concern basis. Climate change The Group continues to develop its assessment of the potential impacts of climate change and the transition to a low carbon economy. The Group's current climate change strategy focuses on reducing operational greenhouse gas (GHG) emissions, investing in low emissions technologies, supporting emissions reductions in our value chain and promoting product stewardship, managing climate-related risk and opportunity, and working with others to enhance the global policy and market response. Future changes to the Group's climate change strategy or global decarbonisation signposts may impact the Group's significant judgements and key estimates and result in material changes to financial results and the carrying values of certain assets and liabilities in future reporting periods. The Group's current climate change strategy is reflected in the Group's significant judgements and key estimates, and therefore the Financial Statements, as follows: Transition risks The Group's targets and goals As part of its response to the Paris Agreement goals, the Group has set a target to reduce its operational GHG emissions (Scope 1 and Scope 2 from our operated assets) by at least 30 per cent from FY2020 levels by FY2030 and a goal to achieve net zero operational GHG emissions by 2050. For the FY2030 target, the FY2020 baseline will be adjusted for any material acquisitions and divestments based on GHG emissions at the time of the transaction, and carbon offsets will be used as required. Emissions reduction projects aimed at contributing to the achievement of the Group's operational GHG emissions target and goal have been incorporated into the forecast cash flows of the Group's assets. BHP Annual Report 2021 135

The Group's offset strategy is currently being managed at a consolidated Group level and therefore is not currently incorporated into the forecast cash flows of individual assets. Any change to the Group's climate change strategy could impact these forecasts and the Group's significant judgements and key estimates. The Group continues to invest, including in partnership with others, in emissions reduction projects and technology innovation and development in its value chain to support reductions to its total reported Scope 3 GHG emissions inventory. However, while we seek to influence, Scope 3 emissions occur outside of our direct control. Reduction pathways are dependent on the development and upstream or downstream deployment of solutions and/or supportive policy. It is therefore currently not possible to reliably estimate or measure the full potential financial statement impacts of the Group's pursuit of its Scope 3 goals and targets. Expenditure under the Climate Investment Program (CIP) which, as announced by the Group in July 2019, aims to invest at least US$400 million over the CIP's five-year life in emissions reduction projects across the Group's operated assets and value chain, is recognised in the relevant year of expenditure. Global transition signposts and commodity impacts In addition to the Group's targets and goals, significant judgements and key estimates are also impacted by the Group's current assessment of the range of economic and climate related conditions that could exist in transitioning to a low carbon economy, considering the current trajectory of society and the global economy as a whole. Despite recent progress, all 1.5°C pathways to 2050 represent a major departure from today's global trajectory and the Group does not believe the technological, regulatory, or economic foundations for a rapid transition to net zero emissions are currently in place. Acknowledging these signposts, the Group's current best estimate of the potential impacts of climate change and the transition to a low carbon economy are reflected in the following two scenarios, which consider existing policies, trends and commitments and the Group's view of the most likely range of futures for the global economy and associated sub-systems: Central Energy View: reflects, and is periodically updated to respond to, existing policy trends and commitments and currently tracks to approximately 3°C temperature increase above pre-industrial levels by 2100 Lower Carbon View: currently tracks to approximately 2.5°C temperature increase by 2100, and accelerates decarbonisation trends and policies, particularly in easier-to-abate sectors such as power generation and light duty vehicles These two scenarios are reviewed periodically to reflect new information. These scenarios are currently being used as inputs to the Group's planning cases, informing updates to the Group's supply, demand and price forecasts, capital allocation and portfolio decisions. As such, these scenarios impact certain significant judgements and key estimates, including the determination of the valuation of assets and potential impairment charges (notes 11 'Property, plant and equipment' and 13 'Impairment of non-current assets'), the estimation of the remaining useful economic life of assets for depreciation purposes (note 11 'Property, plant and equipment'), the timing of closure and rehabilitation activities (note 15 'Closure and rehabilitation provisions') and the recoverability of certain deferred tax assets (note 14 'Deferred tax balances'). The Group continues to monitor global decarbonisation signposts and update its planning cases accordingly. Where such signposts indicate the appropriate measures are in place for achievement of a 1.5ºC Paris-aligned scenario, this will be reflected in the Group's planning cases. Sensitivity to demand for fossil fuels The Group acknowledges that there are a range of possible energy transition scenarios, including those that are aligned with the Paris Agreement goals, that may indicate different outcomes for individual commodities. While not currently an input to the Group's planning cases, the resilience of the Group's portfolio to a 1.5°C Paris-aligned scenario (the Group's 1.5°C Paris-aligned scenario) has been considered, including the impact of Paris-aligned commodity price outlooks under that scenario on the Group's latest asset plans. Although all potential financial reporting consequences under the Group's 1.5°C Paris-aligned scenario are currently impracticable to fully assess, the long-term commodity price outlooks under this scenario are either largely consistent with or favourable to the price outlooks in the Group's current planning cases, with the exception of energy coal, oil and natural gas. There are inherent limitations with scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate and none of the scenarios considered constitutes a definitive outcome for the Group. The long-term commodity price outlooks under the Group's 1.5°C Paris-aligned scenario, excluding energy coal, oil and natural gas, reflect: Copper and nickel benefiting from the dramatic pace of electrification over and above the Group's current planning cases Iron ore growth underpinned by the benefit to steel demand from the construction of renewables, particularly wind power Potash growth reflecting the potential for greater penetration of biofuels Metallurgical coal supported by the limited alternatives in steelmaking over the scenario timeframe Given the positive long-term price outlooks for these commodities, the Group currently considers that a material adverse change is not expected to the valuation, and remaining useful life, of assets and discounting of closure and rehabilitation provisions for assets relating to these commodities under its 1.5°C Paris-aligned scenario. For energy coal, oil and natural gas, long-term commodity price outlooks under the Group's 1.5°C Paris-aligned scenario are unfavourable to the price outlooks in the Group's current planning cases. However, recent portfolio announcements and impairments recognised in FY2021 limit the exposure of the carrying value of the Group's assets to long-term commodity prices for energy coal, oil and natural gas, as: the Group has announced a merger proposal to combine the Group's petroleum business with Woodside the Group has announced the signing of a Sale and Purchase Agreement to divest the Group's 33.3 per cent interest in Cerrejón following impairments recognised in FY2021, the carrying value of the Group's NSWEC assets is no longer material Further, as management would alter its operating and investment plans in such a pricing environment for these assets to mitigate cash flow and valuation impacts, it is currently impracticable to fully assess the potential impacts on the significant judgements and key estimates used in the preparation of the Group's Financial Statements. However, given the factors outlined above, NSWEC closure provisions are considered the liabilities most susceptible to the long-term impacts of the Group's 1.5°C Paris-aligned scenario as reserves and resources may become incapable of extraction in an economically viable fashion prior to the current best estimate of remaining useful life. In such a scenario, closure activity may be performed earlier than the Group's current best estimate, impacting the closure provision. Physical risks The Group is progressing work to assess the potential impact of physical risks of climate change in line with the Group's Risk Management Framework. Given the ongoing nature of the Group's physical risk assessment process, inclusion of adaptation risk in the Group's operating plans, and associated asset valuations, is currently limited. As the Group progresses its adaptation strategy, the identification of additional risks or the detailed development of the Group's response may result in material changes to financial results and the carrying values of assets and liabilities in future reporting periods. 136 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 3.1.6 Notes to the Financial Statements Performance 1 Segment reporting Reportable segments The Group operated four reportable segments during FY2021, which are aligned with the commodities that are extracted and marketed and reflect the structure used by the Group's management to assess the performance of the Group. Reportable segment Principal activities Petroleum Exploration, development and production of oil and gas Copper Mining of copper, silver, zinc, molybdenum, uranium and gold Iron Ore Mining of iron ore Coal Mining of metallurgical coal and energy coal Unless otherwise noted, the segment reporting information for the year ended 30 June 2019 excludes Discontinued operations, being the Petroleum Onshore US operations comprising the Eagle Ford, Haynesville, Permian and Fayetteville oil and gas assets. Group and unallocated items includes functions, other unallocated operations including Potash, Nickel West and legacy assets, and consolidation adjustments. Revenue not attributable to reportable segments comprises the sale of freight and fuel to third parties, as well as revenues from unallocated operations. Exploration and technology activities are recognised within relevant segments. Total assets and total liabilities for FY2020 and FY2019 have been restated to reflect changes to the Group's accounting policy following a decision by the IFRS Interpretations Committee on IAS 12/AASB 112 'Income Taxes' (IAS 12), resulting in the retrospective recognition of US$950 million of Goodwill at Olympic Dam (included in the Copper Segment) and an offsetting US$1,021 million increase in Deferred tax liabilities (included in Group and unallocated). Refer to note 39 'New and amended accounting standards and interpretations and changes to accounting policies' for further information. Year ended 30 June 2021 unallocated Group items/ and US$M Petroleum Copper Iron Ore Coal eliminations Group total Revenue 3,895 15,726 34,475 5,154 1,567 60,817 Inter-segment revenue 51 --(51) -Total revenue 3,946 15,726 34,475 5,154 1,516 60,817 Underlying EBITDA 2,300 8,489 26,278 288 24 37,379 Depreciation and amortisation (1,739) (1,608) (1,971) (845) (661) (6,824) Impairment losses(1) (128) (72) (13) (20) (31) (264) Underlying EBIT 433 6,809 24,294 (577) (668) 30,291 Exceptional items(2) (47) (144) (1,319) (1,567) (1,308) (4,385) Net finance costs (1,305) Profit before taxation 24,601 Capital expenditure (cash basis) 994 2,180 2,188 579 665 6,606 related (Loss)/profit impairments from equity and accounted expenses investments, (6) 692 (1,126) (480) (1) (921) Investments accounted for using the equity method 253 1,482 - 7 1,742 Total assets 13,775 31,517 26,171 11,030 26,434 108,927 Total liabilities 5,811 4,589 7,508 3,518 31,896 53,322 Year US$M ended 30 June 2020 unallocated Group items/ and Restated Petroleum Copper Iron Ore Coal eliminations Group total Revenue 4,008 10,666 20,797 6,241 1,219 42,931 Inter-segment revenue 62 - 1 (63) -Total revenue 4,070 10,666 20,797 6,242 1,156 42,931 Underlying EBITDA 2,207 4,347 14,554 1,632 (669) 22,071 Depreciation and amortisation (1,445) (1,740) (1,608) (807) (512) (6,112) Impairment losses(1) (12) (17) (22) (14) (20) (85) Underlying EBIT 750 2,590 12,924 811 (1,201) 15,874 Exceptional items(2) (6) (1,228) (614) (18) 413 (1,453) Net finance costs (911) Profit before taxation 13,510 Capital expenditure (cash basis) 909 2,434 2,328 603 626 6,900 (Loss)/profit from equity accounted investments, related impairments and expenses (4) 67 (508) (68) 1 (512) Investments accounted for using the equity method 245 1,558-776 6 2,585 Total assets(3) 13,071 28,892 23,841 12,110 27,819 105,733 Total liabilities(3) 4,824 3,535 5,441 2,601 37,157 53,558 BHP Annual Report 2021 137

1 Segment reporting continued US Year $M ended 30 June 2019 unallocated Group items/ and Restated Petroleum Copper Iron Ore Coal eliminations Group total Revenue 5,853 10,838 17,251 9,121 1,225 44,288 Inter-segment revenue 77-4-(81) -Total revenue 5,930 10,838 17,255 9,121 1,144 44,288 Underlying EBITDA 4,061 4,550 11,129 4,067 (649) 23,158 Depreciation and amortisation (1,560) (1,835) (1,653) (632) (149) (5,829) Impairment losses(1) (21) (128) (79) (35) (1) (264) Underlying EBIT 2,480 2,587 9,397 3,400 (799) 17,065 Exceptional items(2) - (971)-19 (952) Net finance costs (1,064) Profit before taxation 15,049 Capital expenditure (cash basis) 645 2,735 1,611 655 604 6,250 (Loss)/profit from equity accounted investments, related impairments and expenses (2) 303 (945) 103 (5) (546) Investments accounted for using the equity method 239 1,472-853 5 2,569 Total assets(3) 12,434 28,378 22,592 12,124 26,283 101,811 Total liabilities(3) 4,102 3,340 5,106 2,450 35,060 50,058 (1) Impairment losses exclude exceptional items of US$2,371 million (2020: US$409 million; 2019: US$ nil). (2) other Exceptional income items of US reported $34 million in Group (2020: and US $ unallocated 489 million; include 2019: US Samarco $50 million) dam. Refer failure to costs note of 3 US 'Exceptional $(14) million items' (2020: for US further $(32) information million; 2019: . US$(31) million) and Samarco related (3) Total standards assets and and interpretations total liabilities and of FY2020 changes and to FY2019 accounting have policies' been restated for further to reflect information changes . to the Group's accounting policy. Refer to note 39 'New and amended accounting Geographical information Revenue by location of customer US 2021 $M US 2020 $M US 2019 $M Australia 2,951 2,232 2,568 Europe 1,050 1,156 1,875 China 39,727 26,576 24,274 Japan 4,808 3,904 4,193 India 2,189 1,475 2,479 South Korea 3,436 2,666 2,550 Rest of Asia 3,603 2,583 2,940 North America 2,432 1,827 2,442 South America 426 315 662 Rest of world 195 197 305 60,817 42,931 44,288 Non-current assets by location of assets(1) 2021 US 2020 $M US 2019 $M US$M Restated Restated Australia 48,612 48,236 45,963 North America 9,701 9,682 8,633 South America 18,548 18,179 18,404 Rest of world 1,851 1,955 371 Unallocated assets(2) 3,522 6,210 5,067 82,234 84,262 78,438 (1) FY2020 Taxes', resulting and FY2019 in the have retrospective been restated recognition to reflect of changes US$950 to million the Group's of Goodwill accounting at Olympic policy Dam following . Refer to a decision note 39 'New by the and IFRS amended Interpretations accounting Committee standards on IAS and 12 interpretations 'Income and changes to accounting policies' for further information. (2) Unallocated assets comprise deferred tax assets and other financial assets. Underlying EBITDA Underlying EBITDA is earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, Discontinued operations and any exceptional items. Underlying EBITDA includes BHP's share of profit/(loss) from investments accounted for using the equity method including net finance costs, depreciation, amortisation and impairments and taxation expense/(benefit). Exceptional items are excluded from Underlying EBITDA in order to enhance the comparability of such measures from period-to-period and provide investors with further clarity in order to assess the performance of the Group's operations. Management monitors exceptional items separately. Refer to note 3 'Exceptional items' for additional detail. Segment assets and liabilities Total segment assets and liabilities of reportable segments represents operating assets and operating liabilities, including the carrying amount of equity accounted investments and predominantly excludes cash balances, loans to associates, interest bearing liabilities and deferred tax balances. The carrying value of investments accounted for using the equity method represents the balance of the Group's investment in equity accounted investments, with no adjustment for any cash balances, interest bearing liabilities or deferred tax balances of the equity accounted investment.

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 2 Revenue Revenue by segment and asset US 2021 $M US 2020 $M US 2019 $M Australia Production Unit 327 361 507 Bass Strait 1,066 1,102 1,237 North West Shelf 893 1,076 1,657 Atlantis 560 561 979 Shenzi 417 277 540 Mad Dog 231 216 319 Trinidad/Tobago 204 191 287 Algeria 164 159 258 Third-party products 11 39 10 Other 73 88 136 Total Petroleum(1) 3,946 4,070 5,930 Escondida 9,470 6,719 6,876 Pampa Norte 1,801 1,395 1,502 Olympic Dam 2,211 1,463 1,351 Third-party products 2,244 1,089 1,109 Total Copper(2) 15,726 10,666 10,838 Western Australia Iron Ore 34,337 20,663 17,066 Third-party products 18 15 32 Other 120 119 157 Total Iron Ore 34,475 20,797 17,255 Queensland Coal 4,315 5,357 7,679 New South Wales Energy Coal 839 885 1,421 Third-party products --19 Other --2 Total Coal(3) 5,154 6,242 9,121 Group and unallocated items(4) 1,567 1,219 1,225 Inter-segment adjustment (51) (63) (81) Total revenue 60,817 42,931 44,288 (1) Total US$1,259 Petroleum million), revenue LNG US includes: $682 million crude (2020: oil US US $2,013 $774 million million; (2020: 2019: US US$ $1,179 2,033 million), million; NGL 2019: US US $212 $3,171 million million), (2020: natural US$ 198 gas million; US$977 2019: million US (2020: $263 million) US$980 and million; other 2019: US$62 million (2020: US$85 million; 2019: US$58 million). (2) Total US$623 Copper million) revenue . Other includes: consists copper of silver, US zinc, $14,812 molybdenum, million (2020: uranium US$ 10,044 and gold million; . 2019: US$10,215 million) and other US$914 million (2020: US$622 million; 2019: (3) Total US$1,553 Coal million) revenue . includes: metallurgical coal US$4,260 million (2020: US$5,311 million; 2019: US$7,568 million) and energy coal US$894 million (2020: US$931 million; 2019: (4) Group US$30 and million; unallocated 2019: US items $32 million) revenue . includes: Nickel West US$1,545 million (2020: US$1,189 million; 2019: US$1,193 million) and other revenue US$22 million (2020: Revenue consists of revenue from contracts with customers of US$59,302 million (2020: US$43,087 million; 2019: US$44,361 million) and other revenue of US$1,515 million (2020: US$(156) million; 2019: US$(73) million). Recognition and measurement The Group generates revenue from the production and sale of commodities. Revenue is recognised when or as control of the promised goods or services passes to the customer. In most instances, control passes when the goods are delivered to a destination specified by the customer, typically on board the customer's appointed vessel. Revenue from the provision of services is recognised over time, but does not represent a significant proportion of total revenue and is aggregated with the respective asset and product revenue for disclosure purposes. The amount of revenue recognised reflects the consideration to which the Group expects to be entitled in exchange for the goods or services. Where the Group's sales are provisionally priced, the final price depends on future index prices. The amount of revenue initially recognised is based on the relevant forward market price. Adjustments between the provisional and final price are accounted for under IFRS 9/AASB 9 'Financial Instruments' (IFRS 9) and separately recorded as other revenue. The period between provisional pricing and final invoicing is typically between 60 and 120 days. Revenue from concentrate is net of treatment costs and refining charges. Revenue from the sale of significant by-products is included within revenue. Where a by-product is not significant, revenue is credited against costs. The Group applies the practical expedient to not adjust the expected consideration for the effects of the time value of money if the period between the delivery and when the customer pays for the promised good or service is one year or less. For commodity sales contracts, each individual metric unit is a separate performance obligation. Where the Group has contracts with unfulfilled performance obligations at period-end, it is required to disclose the transaction price allocated to these performance obligations. The Group applies the practical expedient to not disclose this information for contracts with an expected duration of one year or less. The Group has a number of long-term contracts which are primarily priced on variable terms, based on quoted index prices near the time of delivery, and at times include fixed pricing components. Fixed pricing components, such as premiums and other charges, do not represent a significant proportion of the total price. Any estimate of the future transaction price would exclude estimated amounts of variable consideration. The amount of future consideration from fixed pricing components has not been disclosed, as the Group does not consider this relevant or useful information. BHP Annual Report 2021 139

3 Exceptional items Exceptional items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and impact is considered material to the Financial Statements. Such items included within the Group's profit from Continuing operations for the year are detailed below. Year ended 30 June 2021 US Gross $M USTax $M USNet $M Exceptional items by category Samarco dam failure (1,087) (71) (1,158) COVID-19 related costs (546) 146 (400) Impairment of Energy coal assets (1,523) (651) (2,174) Impairment of Potash assets (1,314) (751) (2,065) Total (4,470) (1,327) (5,797) Attributable to non-controlling interests (34) 10 (24) Attributable to BHP shareholders (4,436) (1,337) (5,773) Samarco Mineração S.A. (Samarco) dam failure The FY2021 exceptional loss of US$1,158 million (after tax) related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2021 US$M Other income 34 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (46) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense (111) Samarco Germano dam decommissioning (15) Samarco dam failure provision (1,000) Fair value change on forward exchange derivatives 136 Net finance costs (85) Income tax expense (71) Total(1) (1,158) (1) Refer to note 4 'Significant events Samarco dam failure' for further information. COVID-19 related costs COVID-19 is considered a single protracted globally pervasive event with financial impacts being experienced over a number of reporting periods. The exceptional item reflects the directly attributable COVID-19 pandemic related additional costs for the Group for the year ended 30 June 2021, including costs associated with the increased provision of health and hygiene services, the impacts of maintaining social distancing requirements and demurrage and other standby charges related to delays caused by COVID-19. Impairment of Energy coal assets The Group recognised an impairment charge of US$1,704 million (after tax) in relation to New South Wales Energy Coal (NSWEC) reflecting the status of the divestment process and current market conditions for thermal coal, the strengthening Australian dollar and changes to the mine plan. In addition, the Group recognised an impairment charge of US$470 million (after tax) for Cerrejón, reflecting the expected net sales proceeds. Refer to note 13 'Impairment of non-current assets' for further information on the pre-tax impairment. Impairment of Potash assets The Group recognised an impairment charge of US$2,065 million (after tax) in relation to Potash. The impairment charge reflects an analysis of recent market perspectives and the value that we would now expect a market participant to attribute to our investments to date. Refer to note 13 'Impairment of non-current assets' for further information on the pre-tax impairment. The exceptional items relating to the year ended 30 June 2020 and the year ended 30 June 2019 are detailed below. 30 June 2020 Year ended 30 June 2020 US Gross $M USTax $M USNet $M Exceptional items by category Samarco dam failure (176)-(176) Cancellation of power contracts (778) 271 (507) COVID-19 related costs (183) 53 (130) Cerro Colorado impairment (409) (83) (492) Total (1,546) 241 (1,305) Attributable to non-controlling interests (291) 90 (201) Attributable to BHP shareholders (1,255) 151 (1,104) 140 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 3 Exceptional items continued Samarco Mineração S.A. (Samarco) dam failure The FY2020 exceptional loss of US$176 million related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2020 US$M Other income 489 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (64) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense (95) Samarco Germano dam decommissioning 46 Samarco dam failure provision (459) Net finance costs (93) Total(1) (176) (1) Refer to note 4 'Significant events Samarco dam failure' for further information. Cancellation of power contracts Reflects an onerous contract provision in relation to the cancellation of power contracts at the Group's Escondida and Spence operations, as part of the shift towards 100 per cent renewable energy supply contracts. COVID-19 related costs COVID-19 can be considered a single protracted globally pervasive event with financial impacts expected over a number of reporting periods. The exceptional item reflects the directly attributable COVID-19 pandemic related additional costs for the Group for FY2020, including costs associated with the increased provision of health and hygiene services and the impacts of maintaining social distancing requirements. Cerro Colorado impairment The Group recognised an impairment charge of US$492 million (after tax) in relation to Cerro Colorado. This reflects the decision taken by the Group to reduce Cerro Colorado's throughput for the remaining period of its current environmental licence, which expires at the end of CY2023. 30 June 2019 Year ended 30 June 2019 US Gross $M USTax $M USNet $M Exceptional items by category Samarco dam failure (1,060)-(1,060) Global taxation matters-242 242 Total (1,060) 242 (818) Attributable to non-controlling interests - -Attributable to BHP shareholders (1,060) 242 (818) Samarco Mineração S.A. (Samarco) dam failure The FY2019 exceptional loss of US$1,060 million related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2019 US$M Other income 50 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (57) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense (96) Samarco Germano dam decommissioning (263) Samarco dam failure provision (586) Net finance costs (108) Total(1) (1,060) (1) Refer to note 4 'Significant events Samarco dam failure' for further information. Global taxation matters Global taxation matters includes amounts released from provisions for tax matters and other claims resolved during the period. 4 Significant events Samarco dam failure On 5 November 2015, the Samarco Mineração S.A. (Samarco) iron ore operation in Minas Gerais, Brazil, experienced a tailings dam failure that resulted in a release of mine tailings, flooding the communities of Bento Rodrigues, Gesteira and Paracatu and impacting other communities downstream (the Samarco dam failure). Refer to section 1.15 'Samarco'. Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). BHP Brasil's 50 per cent interest is accounted for as an equity accounted joint venture investment. BHP Brasil does not separately recognise its share of the underlying assets and liabilities of Samarco, but instead records the investment as one line on the balance sheet. Each period, BHP Brasil recognises its 50 per cent share of Samarco's profit or loss and adjusts the carrying value of the investment in Samarco accordingly. Such adjustment continues until the investment carrying value is reduced to US$ nil, with any additional share of Samarco losses only recognised to the extent that BHP Brasil has an obligation to fund the losses. After applying equity accounting, any remaining carrying value of the investment is tested for impairment. Any charges relating to the Samarco dam failure incurred directly by BHP Brasil or other BHP entities are recognised 100 per cent in the Group's results. BHP Annual Report 2021 141

4 Significant events Samarco dam failure continued The financial impacts of the Samarco dam failure on the Group's income statement, balance sheet and cash flow statement for the year ended 30 June 2021 are shown in the tables below and have been treated as an exceptional item. Financial impacts of Samarco dam failure US 2021 $M US 2020 $M US 2019 $M Income statement Other income(1) 34 489 50 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure(2) (46) (64) (57) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense(3) (111) (95) (96) Samarco Germano dam decommissioning(4) (15) 46 (263) Samarco dam failure provision(5) (1,000) (459) (586) Fair value change on forward exchange derivatives(6) 136 -Loss from operations (1,002) (83) (952) Net finance costs(7) (85) (93) (108) Loss before taxation (1,087) (176) (1,060) Income tax expense(8) (71) - Loss after taxation (1,158) (176) (1,060) Balance sheet movement Trade and other payables (5) (5) 4 Derivatives 136--Tax liabilities (71) Provisions (741) (137) (629) Net liabilities (681) (142) (625) US 2021 $M US 2020 $M US 2019 $M Cash flow statement Loss before taxation (1,087) (176) (1,060) Adjustments for: Samarco impairment expense(3) 111 95 96 Samarco Germano dam decommissioning(4) 15 (46) 263 Samarco dam failure provision(5) 1,000 459 586 Fair value change on forward exchange derivatives(6) (136)--Net finance costs(7) 85 93 108 Changes in assets and liabilities: Trade and other payables 5 5 (4) Net operating cash flows (7) 430 (11) Net investment and funding of equity accounted investments(9) (470) (464) (424) Net investing cash flows (470) (464) (424) Net decrease in cash and cash equivalents (477) (34) (435) (1) Proceeds from insurance settlements. (2) Includes legal and advisor costs incurred. (3) Impairment expense from working capital funding provided during the period. (4) US$(6) million (2020: US$37 million; 2019: US$263 million) change in estimate and US$21 million (2020: US$(83) million; 2019: US$ nil) exchange translation. (5) US$842 million (2020: US$916 million; 2019: US$579 million) change in estimate and US$158 million (2020: US$(457) million; 2019: US$7 million) exchange translation. (6) During fair value the changes period the in the Group forward entered exchange into forward instruments exchange are recorded contracts within to limit Loss the from Brazilian equity reais accounted exposure investments, on the dam failure related provisions impairments . While and not expenses applying in hedge the Income accounting, Statement the . (7) Amortisation of discounting of provision. (8) Includes tax on forward exchange derivatives and other taxes incurred during the period. (9) Includes utilisation US of$ the (111) Samarco million (2020: dam failure US$(95) provision, million; and 2019: US US $(8) $(96) million million) (2020: funding US$(4) provided million; during 2019: US the $ period, nil) utilisation US$(351) of the million Samarco (2020: Germano US$(365) decommissioning million; 2019: US$ provision (328) million) . Equity accounted investment in Samarco BHP Brasil's investment in Samarco remains at US$ nil. BHP Brasil provided US$111 million funding under a working capital facility during the period and recognised impairment losses of US$111 million. No dividends have been received by BHP Brasil from Samarco during the period and Samarco currently does not have profits available for distribution. 142 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 4 Significant events Samarco dam failure continued Provisions related to the Samarco dam failure US 2021 $M US 2020 $M At the beginning of the financial year 2,051 1,914 Movement in provisions 741 137 Comprising: Utilised (359) (369) Adjustments charged to the income statement: Change in estimate Samarco dam failure provision 842 916 Change in estimate Samarco Germano dam decommissioning (6) 37 Amortisation of discounting impacting net finance costs 85 93 Exchange translation 179 (540) At the end of the financial year 2,792 2,051 Comprising: Current 1,206 896 Non-current 1,586 1,155 At the end of the financial year 2,792 2,051 Comprising: Samarco dam failure provision 2,560 1,824 Samarco Germano dam decommissioning provision 232 227 Samarco dam failure provisions and contingencies As at 30 June 2021, BHP Brasil has identified provisions and contingent liabilities arising as a consequence of the Samarco dam failure as follows: Provisions Provision for Samarco dam failure On 2 March 2016, BHP Brasil, Samarco and Vale, entered into a Framework Agreement with the Federal Government of Brazil, the states of Espírito Santo and Minas Gerais and certain other public authorities to establish a foundation (Fundação Renova) that is developing and executing environmental and socio-economic programs (Programs) to remediate and provide compensation for damage caused by the Samarco dam failure. Key Programs include those for financial assistance and compensation of impacted persons, including fisherfolk impacted by the dam failure, and those for remediation of impacted areas and resettlement of impacted communities. A committee (Interfederative Committee) comprising representatives from the Brazilian Federal and State Governments, local municipalities, environmental agencies, impacted communities and Public Defence Office oversees the activities of the Fundação Renova in order to monitor, guide and assess the progress of actions agreed in the Framework Agreement. In addition, the 12th Federal Court is supervising the work of the Fundação Renova and the Court's decisions have been considered in the Samarco dam failure provision change in estimate. Any future decisions will be analysed for impacts on the provision at the time of any decision. The term of the Framework Agreement is 15 years, renewable for periods of one year successively until all obligations under the Framework Agreement have been performed. Under the Framework Agreement, Samarco has primary responsibility for funding Fundação Renova's annual calendar year budget for the duration of the Framework Agreement. The funding amounts for each calendar year will be dependent on the remediation and compensation projects to be undertaken in a particular year. Annual contributions may be reviewed under the Framework Agreement. To the extent that Samarco does not meet its funding obligations, each of BHP Brasil and Vale have secondary funding obligations under the Framework Agreement in proportion to its 50 per cent shareholding in Samarco. Samarco began to gradually recommence operations in December 2020, however, there remains significant uncertainty regarding Samarco's long-term cash flow generation. In light of these uncertainties and based on currently available information, BHP Brasil's provision for its obligations under the Framework Agreement Programs is US$2.6 billion before tax and after discounting at 30 June 2021 (30 June 2020: US$1.8 billion). Under a Governance Agreement ratified on 8 August 2018, BHP Brasil, Samarco and Vale were to establish a process to renegotiate the Programs over two years to progress settlement of the R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim (described below). Pre-requisites established in the Governance Agreement, for re-negotiation of the Framework Agreement were not implemented during the two year period and on 30 September 2020, Brazilian Federal and State prosecutors and public defenders filed a request for the immediate resumption of the R$155 billion (approximately US$30 billion) claim, which has been suspended from the date of ratification of the Governance Agreement. The claim remains suspended after the parties to the claim agreed to continue the suspension on 19 March 2021. BHP Brasil, Samarco, Vale and Federal and State prosecutors have been engaging in negotiations to seek a definitive and substantive settlement of the obligations under the Framework Agreement and the R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim. It is not possible to provide a range of outcomes or a reliable estimate of potential settlement outcomes and there is a risk that a negotiated outcome may be materially higher than amounts currently reflected in the Samarco dam failure provision. Until any revisions to the Programs are agreed, Fundação Renova will continue to implement the Programs in accordance with the terms of the Framework Agreement and the Governance Agreement. BHP Brasil, Samarco and Vale are required to maintain security of an amount equal to the Fundação Renova's annual budget up to a limit of R$2.2 billion (approximately US$440 million). The security currently comprises R$1.3 billion (approximately US$260 million) in insurance bonds and a charge of R$800 million (approximately US$160 million) over Samarco's assets. A further R$100 million (approximately US$20 million) in liquid assets previously maintained as security was released for COVID-19 related response efforts in Brazil. Samarco Germano dam decommissioning Samarco is currently progressing plans for the accelerated decommissioning of its upstream tailings dams (the Germano dam complex). Given the significant uncertainties surrounding Samarco's long-term cash flow generation, BHP Brasil's provision for a 50 per cent share of the expected Germano decommissioning costs is US$232 million (30 June 2020: US$227 million). The decommissioning is at an early stage and as a result, further engineering work and required validation by Brazilian authorities could lead to changes to estimates in future reporting periods. BHP Annual Report 2021 143

4 Significant events Samarco dam failure continued Key judgements and estimates Judgements: The outcomes of litigation are inherently difficult to predict and significant judgement has been applied in assessing the likely outcome of legal claims and determining which legal claims require recognition of a provision or disclosure of a contingent liability. The facts and circumstances relating to these cases are regularly evaluated in determining whether a provision for any specific claim is required. Management has determined that a provision can only be recognised for obligations under the Framework Agreement and Samarco Germano dam decommissioning as at 30 June 2021. It is not yet possible to provide a range of possible outcomes or a reliable estimate of potential future exposures to BHP in connection to the contingent liabilities noted below, given their status. Estimates: The provisions for Samarco dam failure and Samarco Germano dam decommissioning currently reflect the estimated remaining costs to complete Programs under the Framework Agreement and estimated costs to complete the Germano dam decommissioning and require the use of significant judgements, estimates and assumptions. Based on current estimates, it is expected that approximately 85 per cent of remaining costs for Programs under the Framework Agreement will be incurred by December 2023. While the provisions have been measured based on latest information available, likely changes in facts and circumstances in future reporting periods may lead to material revisions to these estimates. However, it is currently not possible to determine what facts and circumstances may change, therefore revisions in future reporting periods due to the key estimates and factors outlined below cannot be reliably measured. The key estimates that may have a material impact upon the provisions in the next and future reporting periods include: number of people eligible for financial assistance and compensation and the corresponding amount of expected compensation costs to complete key infrastructure programs, including resettlement of the Bento Rodrigues, Gesteira and Paracatu communities The provisions may also be affected by factors including but not limited to: resolution of existing and potential legal claims in Brazil and other jurisdictions, including the impact of ongoing settlement negotiations and outcome of the United Kingdom group action complaint potential changes in scope of work and funding amounts required under the Framework Agreement including the impact of the decisions of the Interfederative Committee along with further technical analysis, community participation required under the Governance Agreement and rulings made by the 12th Federal Court the outcome of ongoing negotiations with State and Federal Prosecutors, including review of Fundação Renova's Programs as provided in the Governance Agreement actual costs incurred resolution of uncertainty in respect of the nature and extent of Samarco's long-term cash generation costs to complete the Germano dam decommissioning updates to discount and foreign exchange rates the outcomes of Samarco's judicial reorganisation (defined below) Given these factors, future actual expenditures may differ from the amounts currently provided and changes to key assumptions and estimates could result in a material impact to the provision in the next and future reporting periods. Contingent liabilities The following matters are disclosed as contingent liabilities and given the status of proceedings it is not possible to provide a range of possible outcomes or a reliable estimate of potential future exposures for BHP, unless otherwise stated. Ultimately, all the legal matters disclosed as contingent liabilities could have a material adverse impact on BHP's business, competitive position, cash flows, prospects, liquidity and shareholder returns. Federal Public Prosecution Office claim BHP Brasil is among the defendants named in a claim brought by the Federal Public Prosecution Office on 3 May 2016, seeking R$155 billion (approximately US$30 billion) for reparation, compensation and moral damages in relation to the Samarco dam failure. The 12th Federal Court previously suspended the Federal Public Prosecution Office claim, including a R$7.7 billion (approximately US$1.5 billion) injunction request. On 30 September 2020, Brazilian Federal and State prosecutors and public defenders filed a request for the immediate resumption of the R$155 billion (approximately US$30 billion) claim, which has been suspended since the date of ratification of the Governance Agreement. The claim remains suspended after the parties to the claim agreed to continue the suspension on 19 March 2021. BHP Brasil, Samarco, Vale and Federal and State prosecutors have been engaging in negotiations to seek a definitive and substantive settlement of the obligations under the Framework Agreement and the R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim. It is not possible to provide a range of outcomes or a reliable estimate of potential settlement outcomes and there is a risk that a negotiated outcome may be materially higher than amounts currently reflected in the Samarco dam failure provision. United States class action complaint Samarco bond holders On 14 November 2016, a putative class action complaint (Bondholder Complaint) was filed in the U.S. District Court for the Southern District of New York on behalf of purchasers of Samarco's ten-year bond notes due 2022-2024 between 31 October 2012 and 30 November 2015. The Bondholder Complaint was initially filed against Samarco and the former chief executive officer of Samarco. The Bondholder Complaint was subsequently amended to include BHP Group Ltd, BHP Group Plc, BHP Brasil, Vale and officers of Samarco, including four of Vale and BHP Brasil's nominees to the Samarco Board. On 5 April 2017, the plaintiff discontinued its claims against the individual defendants. The complaint, along with a second amended complaint, had previously been dismissed by the court. The plaintiff filed a motion for reconsideration, or leave to file a third amended complaint, which was denied by the court on 30 October 2019. The plaintiff appealed this decision, which was affirmed by the court of appeals in March 2021. Australian class action complaint BHP Group Ltd is named as a defendant in a shareholder class action filed in the Federal Court of Australia on behalf of persons who acquired shares in BHP Group Ltd on the Australian Securities Exchange or shares in BHP Group Plc on the London Stock Exchange and Johannesburg Stock Exchange in periods prior to the Samarco dam failure. The amount of damages sought is unspecified. United Kingdom group action complaint BHP Group Plc and BHP Group Ltd were named as defendants in group action claims for damages filed in the courts of England. These claims were filed on behalf of certain individuals, governments, businesses and communities in Brazil allegedly impacted by the Samarco dam failure. The amount of damages sought in these claims is unspecified. The complaint and a subsequent application for permission to appeal have been dismissed by the court, however an application by the claimants to reopen the proceedings was granted in July 2021, allowing the claimants to appeal previous dismissals of the claim. Criminal charges The Federal Prosecutors' Office has filed criminal charges against BHP Brasil, Samarco and Vale and certain employees and former employees of BHP Brasil (Affected Individuals) in the Federal Court of Ponte Nova, Minas Gerais. On 3 March 2017, BHP Brasil filed its preliminary defences. 144 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 4 Significant events Samarco dam failure continued The Federal Court terminated the charges against eight of the Affected Individuals. The Federal Prosecutors' Office has appealed seven of those decisions with hearings of the appeals still pending. BHP Brasil rejects outright the charges against the company and the Affected Individuals and will defend the charges and fully support each of the Affected Individuals in their defence of the charges. Other claims Civil public actions filed by State Prosecutors in Minas Gerais (claiming damages of approximately R$7.5 billion, US$1.5 billion), State Prosecutors in Espírito Santo (claiming damages of approximately R$2 billion, US$400 million), and public defenders in Minas Gerais (claiming damages of approximately R$10 billion, US$2 billion), have been consolidated before the 12th Federal Court and suspended. The Governance Agreement provides for a process to review whether these civil public claims should be terminated or suspended. BHP Brasil is among the companies named as defendants in a number of legal proceedings initiated by individuals, non-governmental organisations, corporations and governmental entities in Brazilian Federal and State courts following the Samarco dam failure. The other defendants include Vale, Samarco and Fundação Renova. The lawsuits include claims for compensation, environmental rehabilitation and violations of Brazilian environmental and other laws, among other matters. The lawsuits seek various remedies including rehabilitation costs, compensation to injured individuals and families of the deceased, recovery of personal and property losses, moral damages and injunctive relief. In addition, government inquiries and investigations relating to the Samarco dam failure have been commenced by numerous agencies of the Brazilian government and are ongoing. Additional lawsuits and government investigations relating to the Samarco dam failure could be brought against BHP Brasil and possibly other BHP entities in Brazil or other jurisdictions. BHP insurance BHP has various third party general liability and directors and officers insurances for claims related to the Samarco dam failure made directly against BHP Brasil or other BHP entities, their directors and officers, including class actions. External insurers have been notified of the Samarco dam failure along with the third party claims and class actions referred to above. In the period since the dam failure to 30 June 2021, the Group has recognised US$573 million other income from general liability insurance proceeds relating to the dam failure. Recoveries related to general liability insurance are now considered complete. As at 30 June 2021, an insurance receivable has not been recognised for any potential recoveries in respect of ongoing matters. Commitments Under the terms of the Samarco joint venture agreement, BHP Brasil does not have an existing obligation to fund Samarco. BHP has agreed to fund a total of up to US$765 million for the Fundação Renova programs and Samarco's working capital during calendar year 2021. This comprises up to US$725 million relating to Fundação Renova programs until 31 December 2021, which will be offset against the Group's provision for the Samarco dam failure, and a short-term working capital facility of up to US$40 million to be made available to Samarco until 31 December 2021. Amounts related to Fundação Renova and Samarco working capital incurred in the six months to 30 June 2021 have been reflected in the utilisation of the provision and impairment expense respectively disclosed above. Any additional requests for funding or future investment provided would be subject to a future decision by BHP, accounted for at that time. Samarco judicial reorganisation Samarco filed for judicial reorganisation (JR) in April 2021, with the Commercial Courts of Belo Horizonte, State of Minas Gerais, Brazil (JR Court), after multiple enforcement actions taken by certain creditors of Samarco. Samarco's JR filing followed unsuccessful attempts to negotiate a debt restructure with certain financial creditors and multiple legal actions filed by those creditors which threatened Samarco's operations. The JR is an insolvency proceeding with a means for Samarco to seek to restructure its financial debts and establish a sustainable financial position that allows Samarco to continue to rebuild its operations and strengthen its ability to meet its Fundação Renova funding obligations. Samarco's operations are expected to continue during the JR and restructure process. The JR is not expected to affect Samarco's obligation or commitment to make full redress for the 2015 Fundão dam failure, and is not expected to impact Fundação Renova's ability to undertake that remediation and compensation. It is not possible to determine the outcomes of the JR or estimate any impact that the reorganisation may have for BHP Brasil, including its share of the Samarco dam failure provisions. The following section includes disclosure required by IFRS of Samarco's provisions, contingencies and other matters arising from the dam failure for matters in addition to the above-mentioned claims to which Samarco is a party. Samarco Dam failure related provisions and contingencies In addition to its obligations under the Framework Agreement as at 30 June 2021, Samarco has recognised provisions of US$0.2 billion (30 June 2020: US$0.2 billion), based on currently available information. The magnitude, scope and timing of these additional costs are subject to a high degree of uncertainty and Samarco has indicated that it anticipates that it will incur future costs beyond those provided. These uncertainties are likely to continue for a significant period and changes to key assumptions could result in a material change to the amount of the provision in future reporting periods. Any such unrecognised obligations are therefore contingent liabilities and, at present, it is not practicable to estimate their magnitude or possible timing of payment. Accordingly, it is also not possible to provide a range of possible outcomes or a reliable estimate of total potential future exposures at this time. Samarco is also named as a defendant in a number of other legal proceedings initiated by individuals, non-governmental organisations, corporations and governmental entities in Brazilian Federal and State courts following the Samarco dam failure. The lawsuits include claims for compensation, environmental rehabilitation and violations of Brazilian environmental and other laws, among other matters. The lawsuits seek various remedies including rehabilitation costs, compensation to injured individuals and families of the deceased, recovery of personal and property losses, moral damages and injunctive relief. In addition, government inquiries and investigations relating to the Samarco dam failure have been commenced by numerous agencies of the Brazilian government and are ongoing. Given the status of proceedings it is not possible to provide a range of possible outcomes or a reliable estimate of total potential future exposures to Samarco. Additional lawsuits and government investigations relating to the Samarco dam failure could be brought against Samarco. Samarco insurance Samarco has standalone insurance policies in place with Brazilian and global insurers. Insurers' loss adjusters or claims representatives continue to investigate and assist with the claims process for matters not yet settled. As at 30 June 2021, an insurance receivable has not been recognised by Samarco in respect of ongoing matters. Samarco commitments At 30 June 2021, Samarco has commitments of US$0.7 billion (30 June 2020: US$0.4 billion). Following the dam failure Samarco invoked force majeure clauses in a number of long-term contracts with suppliers and service providers to suspend contractual obligations. Samarco non-dam failure related contingent liabilities The following non-dam failure related contingent liabilities pre-date and are unrelated to the Samarco dam failure. Samarco is currently contesting both of these matters in the Brazilian courts. Given the status of these tax matters, the timing of resolution and potential economic outflow for Samarco is uncertain. Brazilian Social Contribution Levy Samarco has received tax assessments for the alleged non-payment of Brazilian Social Contribution Levy for the calendar years 2007-2014 totalling approximately R$5.9 billion (approximately US$1.2 billion). Brazilian corporate income tax rate Samarco has received tax assessments for alleged incorrect calculation of Corporate Income Tax (IRPJ) in respect of the 2000-2003 and 2007-2014 income years totalling approximately R$4.6 billion (approximately US$0.9 billion). BHP Annual Report 2021 145

5 Expenses and other income US 2021 $M US 2020 $M US 2019 $M Employee benefits expense: Wages, salaries and redundancies 4,399 3,706 3,683 Employee share awards 124 129 138 Social security costs 3 2 4 Pension and other post-retirement obligations 316 283 292 Less employee benefits expense classified as exploration and evaluation expenditure (119) (65) (85) Changes in inventories of finished goods and work in progress (334) (326) 496 Raw materials and consumables used 4,940 5,509 4,591 Freight and transportation 2,037 1,981 2,378 External services 5,260 4,404 4,745 Third-party commodity purchases 2,230 1,139 1,069 Net foreign exchange losses/(gains) 310 (603) (147) Fair value change on derivatives(1) 145 422 8 Government royalties paid and payable 3,217 2,362 2,538 Exploration and evaluation expenditure incurred and expensed in the current period 430 517 516 Depreciation and amortisation expense 6,824 6,112 5,829 Net impairments: Property, plant and equipment 2,583 494 250 Goodwill and other intangible assets 52-14 All other operating expenses 2,083 2,709 1,703 Total expenses 34,500 28,775 28,022 Insurance recoveries(2) (46) (489) (57) Other income(3) (464) (288) (336) Total other income (510) (777) (393) (1) Fair business value as change well as on derivatives derivatives used is principally as part of related the funding to commodity of dividends price . contracts, foreign exchange contracts and embedded derivatives used in the ordinary course of (2) Insurance recoveries is principally related to claims received from Samarco dam failure. Refer to note 4 'Significant events Samarco dam failure' for further information. (3) Other controlling income interests is generally and joint income arrangements, earned from dividend transactions income, outside royalties, the commission course of the income Group's and ordinary gains activities or losses and on divestment may include of certain subsidiaries management or operations fees .from non- Recognition and measurement Income is recognised when it is probable that the economic benefits associated with a transaction will flow to the Group and can be reliably measured. Dividends are recognised upon declaration. 146 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 6 Income tax expense US 2021 $M US 2020 $M US 2019 $M Total taxation expense comprises: Current tax expense 9,825 5,109 5,408 Deferred tax expense/(benefit) 1,325 (335) 121 11,150 4,774 5,529 US 2021 $M US 2020 $M US 2019 $M Factors affecting income tax expense for the year Income tax expense differs to the standard rate of corporation tax as follows: Profit before taxation 24,601 13,510 15,049 Tax on profit at Australian prima facie tax rate of 30 per cent 7,380 4,053 4,515 Non-tax effected operating losses and capital gains(1) 3,112 707 742 Tax on remitted and unremitted foreign earnings 485 225 283 Tax effect of loss from equity accounted investments, related impairments and expenses(2) 317 154 164 Investment and development allowance-(99) (94) Tax rate changes (1) (8) 6 Amounts (over)/under provided in prior years (11) 64 (21) Recognition of previously unrecognised tax assets (28) (30) (10) Foreign exchange adjustments (95) 20 (25) Impact of tax rates applicable outside of Australia (603) (167) (312) Other 365 (211) 87 Income tax expense 10,921 4,708 5,335 Royalty-related taxation (net of income tax benefit) 229 66 194 Total taxation expense 11,150 4,774 5,529 (1) Includes as presented the tax in note impacts 3 'Exceptional related to the items' exceptional . There were impairments no exceptional of NSWEC impairments and Potash in the in year the year ended ended 30 June 30 June 2019 2021 . and Cerro Colorado in the year ended 30 June 2020, (2) The described loss from in note equity 4 'Significant accounted events investments, - Samarco related dam impairments failure'. This and item expenses removes is the net prima of income facie tax tax, effect with the on such exception loss, related of the Samarco impairments forward and exchange expenses, derivatives excluding the impact of the Samarco forward exchange derivatives which are taxable. Income tax recognised in other comprehensive income is as follows: US 2021 $M US 2020 $M US 2019 $M Income tax effect of: Items that may be reclassified subsequently to the income statement: Hedges: Gains/(losses) taken to equity (259) 94 98 (Gains)/losses transferred to the income statement 252 (89) (90) Others (1) -Income tax (charge)/credit relating to items that may be reclassified subsequently to the income statement (8) 5 8 Items that will not be reclassified to the income statement: Remeasurement gains/(losses) on pension and medical schemes (21) 25 7 Others 1 1 12 Income tax (charge)/credit relating to items that will not be reclassified to the income statement (20) 26 19 Total income tax (charge)/credit relating to components of other comprehensive income(1) (28) 31 27 (1) Included (2020: US within $31 million total income and US$ tax nil; relating 2019: US to$ components 15 million and of US other $12 million) comprehensive . income is US$(28) million relating to deferred taxes and US$ nil relating to current taxes BHP Annual Report 2021 147

6 Income tax expense continued Recognition and measurement Taxation on the profit/(loss) for the year comprises current and deferred tax. Taxation is recognised in the income statement except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case the tax effect is also recognised in equity or other comprehensive income. Current tax Deferred tax Royalty-related taxation Current tax is the expected tax on the taxable Deferred tax is provided in full, on temporary Royalties and resource rent taxes are treated as income for the year, using tax rates and laws differences arising between the tax bases of taxation arrangements (impacting income tax enacted or substantively enacted at the reporting assets and liabilities and their carrying amounts expense/(benefit)) when they are imposed under date, and any adjustments to tax payable in in the Financial Statements. Deferred tax assets government authority and the amount payable is respect of previous years. are recognised to the extent that it is probable calculated by reference to revenue derived (net that future taxable profits will be available of any allowable deductions) after adjustment for against which the temporary differences can temporary differences. Obligations arising from be utilised. royalty arrangements that do not satisfy these criteria are recognised as current liabilities and Deferred tax is not recognised for temporary included in expenses. differences relating to: - initial recognition of goodwill - initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit - investment in subsidiaries, associates and jointly controlled entities where the Group is able to control the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future Deferred tax is measured at the tax rates that are expected to be applied when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted at the reporting date. Current and deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset and when the tax balances are related to taxes levied by the same tax authority and the Group intends to settle on a net basis, or realise the asset and settle the liability simultaneously. Uncertain tax and royalty matters The Group operates across many tax jurisdictions. Application of tax law can be complex and requires judgement to assess risk and estimate outcomes, particularly in relation to the Group's cross-border operations and transactions. The evaluation of tax risks considers both amended assessments received and potential sources of challenge from tax authorities. The status of proceedings for these matters will impact the ability to determine the potential exposure and in some cases, it may not be possible to determine a range of possible outcomes or a reliable estimate of the potential exposure. The Group has unresolved tax and royalty matters for which the timing of resolution and potential economic outflow are uncertain. Tax and royalty matters with uncertain outcomes arise in the normal course of business and occur due to changes in tax law, changes in interpretation of tax law, periodic challenges and disagreements with tax authorities and legal proceedings. Tax and royalty obligations assessed as having probable future economic outflows capable of reliable measurement are provided for as at 30 June 2021. Matters with a possible economic outflow and/or presently incapable of being measured reliably are contingent liabilities and disclosed in note 34 'Contingent liabilities'. Details of uncertain tax and royalty matters relating to Samarco are disclosed in note 4 'Significant events - Samarco dam failure'. 148 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 6 Income tax expense continued Key judgements and estimates Income tax classification Judgements: The Group's accounting policy for taxation, including royalty-related taxation, requires management's judgement as to the types of arrangements considered to be a tax on income in contrast to an operating cost. Deferred tax Judgements: Judgement is required to determine the amount of deferred tax assets that are recognised based on the likely timing and the level of future taxable profits. Judgement is applied in recognising deferred tax liabilities arising from temporary differences in investments. These deferred tax liabilities caused principally by retained earnings held in foreign tax jurisdictions are recognised unless repatriation of retained earnings can be controlled and is not expected to occur in the foreseeable future. Estimates: The Group assesses the recoverability of recognised and unrecognised deferred taxes, including losses in Australia, the United States and Canada on a consistent basis. Estimates and assumptions relating to projected earnings and cash flows as applied in the Group impairment process are used for operating assets. Uncertain tax matters Judgements: Management applies judgements about the application of income tax legislation and its interaction with income tax accounting principles. These judgements are subject to risk and uncertainty, hence there is a possibility that changes in circumstances will alter expectations, which may impact the amount of tax assets and tax liabilities, including deferred tax, recognised on the balance sheet and the amount of other tax losses and temporary differences not yet recognised. Where the final tax outcomes are different from the amounts that were initially recorded, these differences impact the current and deferred tax provisions in the period in which the determination is made. Measurement of uncertain tax and royalty matters considers a range of possible outcomes, including assessments received from tax authorities. Where management is of the view that potential liabilities have a low probability of crystallising, or it is not possible to quantify them reliably, they are disclosed as contingent liabilities (refer to note 34 'Contingent liabilities'). 2021 2020 2019 Earnings attributable to BHP shareholders (US$M) - Continuing operations 11,304 7,956 8,648 - Total 11,304 7,956 8,306 Weighted average number of shares (Million) - Basic 5,057 5,057 5,180 - Diluted 5,068 5,069 5,193 Basic earnings per ordinary share (US cents) - Continuing operations 223.5 157.3 166.9 - Total 223.5 157.3 160.3 Diluted earnings per ordinary share (US cents) - Continuing operations 223.0 157.0 166.5 - Total 223.0 157.0 159.9 Headline earnings per ordinary share (US cents) - Basic 284.8 171.1 164.9 - Diluted 284.2 170.7 164.5 Refer to note 29 'Discontinued operations' for basic earnings per share and diluted earnings per share for Discontinued operations. Earnings on American Depositary Shares represent twice the earnings for BHP Group Limited or BHP Group Plc ordinary shares. Headline earnings is a Johannesburg Stock Exchange defined performance measure and is reconciled from earnings attributable to ordinary shareholders as follows: US 2021 $M US 2020 $M US 2019 $M Earnings attributable to BHP shareholders 11,304 7,956 8,306 Adjusted for: (Gain)/loss on sales of property, plant and equipment, Investments and Operations(1) (50) 4 (52) Impairments of property, plant and equipment, financial assets and intangibles 2,633 494 264 Samarco impairment expense 111 95 96 Cerrejón impairment expense 466 -Other(2)-48 -Recycling of re-measurements from equity to the income statement --(6) Tax effect of above adjustments (60) 54 (64) Subtotal of adjustments 3,100 695 238 Headline earnings 14,404 8,651 8,544 Diluted headline earnings 14,404 8,651 8,544 (1) Included in other income. (2) Mainly represent BHP share of impairment embedded in the statutory income statement of the Group's equity accounted investments. BHP Annual Report 2021 149

7 Earnings per share continued Recognition and measurement Diluted earnings attributable to BHP shareholders are equal to the earnings attributable to BHP shareholders. The calculation of the number of ordinary shares used in the computation of basic earnings per share is the aggregate of the weighted average number of ordinary shares of BHP Group Limited and BHP Group Plc outstanding during the period after deduction of the number of shares held by the Billiton Employee Share Ownership Trust and the BHP Billiton Limited Employee Equity Trust. During December 2018, 266 million BHP Group Limited shares were bought back and then cancelled during the period following an off-marketbuy-back program of US$5.2 billion related to the disbursement of proceeds from the disposal of Onshore US. For the purposes of calculating diluted earnings per share, the effect of 11 million dilutive shares has been taken into account for the year ended 30 June 2021 (2020: 12 million shares; 2019: 13 million shares). The Group's only potential dilutive ordinary shares are share awards granted under the employee share ownership plans for which terms and conditions are described in note 25 'Employee share ownership plans'. Diluted earnings per share calculation excludes instruments which are considered antidilutive. At 30 June 2021, there are no instruments which are considered antidilutive (2020: nil; 2019: nil). Working capital 8 Trade and other receivables US 2021 $M US 2020 $M Trade receivables 4,450 1,974 Loans to equity accounted investments-40 Other receivables 1,946 1,617 Total 6,396 3,631 Comprising: Current 6,059 3,364 Non-current 337 267 Trade receivables are recognised initially at their transaction price or, for those receivables containing a significant financing component, at fair value. Trade receivables are subsequently measured at amortised cost using the effective interest method, less an allowance for impairment, except for provisionally priced receivables which are subsequently measured at fair value through the income statement under IFRS 9. The collectability of trade receivables is assessed continuously. At the reporting date, specific allowances are made for any expected credit losses based on a review of all outstanding amounts at reporting period-end. Individual receivables are written off when management deems them unrecoverable. The net carrying amount of trade and other receivables approximates their fair values. Credit risk Trade receivables generally have terms of less than 30 days. The Group has no material concentration of credit risk with any single counterparty and is not dominantly exposed to any individual industry. Credit risk can arise from the non-performance by counterparties of their contractual financial obligations towards the Group. To manage credit risk, the Group maintains Group-wide procedures covering the application for credit approvals, granting and renewal of counterparty limits, proactive monitoring of exposures against these limits and requirements triggering secured payment terms. As part of these processes, the credit exposures with all counterparties are regularly monitored and assessed on a timely basis. The credit quality of the Group's customers is reviewed and the solvency of each debtor and their ability to pay the receivable is considered in assessing receivables for impairment. The 10 largest customers represented 31 per cent (2020: 32 per cent) of total credit risk exposures managed by the Group. Receivables are deemed to be past due or impaired in accordance with the Group's terms and conditions. These terms and conditions are determined on a case-by-case basis with reference to the customer's credit quality, payment performance and prevailing market conditions. As at 30 June 2021, trade receivables of US$68 million (2020: US$23 million) were past due but not impaired. The majority of these receivables were less than 30 days overdue. The assessment of recoverability of trade receivables at 30 June 2021 has considered the impacts of COVID-19 and no material recoverability issues have been identified. As COVID-19 continues to impact key markets in Asia, Europe and the United States, the Group continues to perform enhanced credit monitoring of commercial counterparties. At 30 June 2021, trade receivables are stated net of provisions for expected credit losses of US$3 million (2020: US$2 million). The Group may accelerate trade receivables through Letters of Credit programs to collect receipts from debtors earlier than contractual sales terms but elected not to do so as at 30 June 2021. US 2021 $M US 2020 $M Trade payables 5,079 4,396 Other payables 1,948 1,372 Total 7,027 5,768 Comprising: Current 7,027 5,767 Non-current-1 150 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 10 Inventories US 2021 $M US 2020 $M Definitions Raw materials and consumables 1,904 1,797 Spares, consumables and other supplies yet to be utilised in the production process or in the rendering of services. Work in progress 3,046 2,814 Commodities currently in the production process that require further processing by the Group to a saleable form. Finished goods 834 711 Commodities ready-for-sale and not requiring further processing by the Group. Total(1) 5,784 5,322 Comprising: Inventories classified as non-current are not expected to be utilised or sold within Current 4,426 4,101 12 months after the reporting date or within the operating cycle of the business. Non-current 1,358 1,221 (1) Inventory periods were write reversed -downs during of US$ 58 the million year (2020: were recognised US$13 million; during 2019: the US year $21 million) (2020: .US$37 million; 2019: US$16 million). Inventory write-downs of US$27 million made in previous Recognition and measurement Regardless of the type of inventory and its stage in the production process, inventories are valued at the lower of cost and net realisable value. Cost is determined primarily on the basis of average costs. For processed inventories, cost is derived on an absorption costing basis. Cost comprises costs of purchasing raw materials and costs of production, including attributable mining and manufacturing overheads taking into consideration normal operating capacity. Minerals inventory quantities are assessed primarily through surveys and assays, while petroleum inventory quantities are derived through flow rate or tank volume measurement and the composition is derived via sample analysis. Key estimates Accounting for inventory involves the use of estimates, particularly related to the measurement and valuation of inventory on hand within the production process. Key estimates, including expected metal recoveries and work in progress volumes, are calculated by engineers using available industry, engineering and scientific data. Estimates used are periodically reassessed by the Group taking into account technical analysis and historical performance. Changes in estimates are adjusted for on a prospective basis. Resource assets 11 Property, plant and equipment buildings Land and equipment Plant and Other mineral assets Assets construction under and Exploration evaluation Total US$M US$M US$M US$M US$M US$M Net book value - 30 June 2021 At the beginning of the financial year 8,387 39,429 8,652 13,774 2,120 72,362 Additions(1) 25 3,841 797 5,961 93 10,717 Acquisition of subsidiaries & operations(2)-151 491 - 642 Remeasurements of index-linked freight contracts(3)-(59) --(59) Depreciation for the year (694) (5,748) (310) - (6,752) Impairments for the year(4) (208) (877) (687) (745) (66) (2,583) Disposals (18) (9) --(27) Divestment and demerger of subsidiaries and operations(5)-(14)-(2)-(16) Transfers and other movements 580 7,968 (2) (8,556) (461) (471) At the end of the financial year(6) 8,072 44,682 8,941 10,432 1,686 73,813 - Cost 14,545 108,049 15,059 11,177 2,531 151,361 - Accumulated depreciation and impairments (6,473) (63,367) (6,118) (745) (845) (77,548) Net book value - 30 June 2020 At the beginning of the financial year 7,885 38,174 9,211 11,149 1,622 68,041 Impact of adopting IFRS 16 754 1,400 --2,154 Additions(1) 115 1,719 684 6,100 218 8,836 Remeasurements of index-linked freight contracts(3)-733 --733 Depreciation for the year (630) (5,104) (294) - (6,028) Impairments for the year(4) (17) (189) (288) - (494) Disposals (12) (22) - (65) (99) Transfers and other movements 292 2,718 (661) (3,475) 345 (781) At the end of the financial year(6) 8,387 39,429 8,652 13,774 2,120 72,362 - Cost 13,932 97,230 13,736 13,774 2,899 141,571 - Accumulated depreciation and impairments (5,545) (57,801) (5,084)-(779) (69,209) (1) Includes rehabilitation change provisions' in estimates . and net foreign exchange gains/(losses) related to the closure and rehabilitation provisions for operating sites. Refer to note 15 'Closure and (2) Relates to the acquisition of an additional 28 per cent working interest in Shenzi. (3) Relates to remeasurements of index-linked freight contracts including continuous voyage charters (CVCs). Refer to note 21 'Leases'. (4) Refer to note 13 'Impairment of non-current assets' for information on impairments. (5) Relates to the sale of the Neptune asset in Gulf of Mexico. (6) Includes 21 'Leases' the for carrying the movement value of of the the Group's right-of right -use-of assets -use .assets relating to land and buildings and plant and equipment of US$3,350 million (2020: US$3,047 million). Refer to note BHP Annual Report 2021 151

11 Property, plant and equipment continued Recognition and measurement The Group may use funds sourced from external parties to finance the Property, plant and equipment acquisition and development of assets and operations. Finance costs Property, plant and equipment is recorded at cost less accumulated are expensed as incurred, except where they relate to the financing depreciation and impairment charges. Cost is the fair value of of construction or development of qualifying assets. Borrowing costs consideration given to acquire the asset at the time of its acquisition or directly attributable to acquiring or constructing a qualifying asset are construction and includes the direct costs of bringing the asset to the capitalised during the development phase. Development expenditure location and the condition necessary for operation and the estimated is net of proceeds from the saleable material extracted during the future costs of closure and rehabilitation of the facility. development phase. On completion of development, all assets Right-of-use assets are measured at cost, less any accumulated included in assets under construction are reclassified as either plant depreciation and impairment losses, and adjusted for any remeasurement and equipment or other mineral assets and depreciation commences. of lease liabilities. Refer to note 21 'Leases' for details. Key judgements and estimates Exploration and evaluation Exploration costs are incurred to discover mineral and petroleum Judgements: Development activities commence after resources. Evaluation costs are incurred to assess the technical feasibility project sanctioning by the appropriate level of management. and commercial viability of resources found. Judgement is applied by management in determining when a project is economically viable. Exploration and evaluation expenditure is charged to the income statement as incurred, except in the following circumstances in which Estimates: In determining whether a project is economically viable, case the expenditure may be capitalised: management is required to make certain estimates and assumptions as to future events and circumstances, including reserve estimates, In respect of minerals activities: existence of an accessible market and forecast prices and cash flows. - the exploration and evaluation activity is within an area of interest Estimates and assumptions may change as new information becomes that was previously acquired as an asset acquisition or in a business available. If, after having commenced the development activity, combination and measured at fair value on acquisition or new information suggests that a development asset is impaired, - the existence of a commercially viable mineral deposit has the appropriate amount is charged to the income statement. been established In respect of petroleum activities: Other mineral assets - the exploration and evaluation activity is within an area of interest for Other mineral assets comprise: which it is expected that the expenditure will be recouped by future - capitalised exploration, evaluation and development expenditure exploitation or sale or for assets in production - exploration and evaluation activity has not reached a stage that - mineral rights and petroleum interests acquired permits a reasonable assessment of the existence of commercially - capitalised development and production stripping costs recoverable reserves Overburden removal costs A regular review of each area of interest is undertaken to determine the The process of removing overburden and other waste materials to access appropriateness of continuing to carry forward costs in relation to that mineral deposits is referred to as stripping. Stripping is necessary to area. Capitalised costs are only carried forward to the extent that they obtain access to mineral deposits and occurs throughout the life of an are expected to be recovered through the successful exploitation of the open-pit mine. Development and production stripping costs are classified area of interest or alternatively by its sale. To the extent that capitalised as other mineral assets in property, plant and equipment. expenditure is no longer expected to be recovered, it is charged to the Stripping costs are accounted for separately for individual components of income statement. an ore body. The determination of components is dependent on the mine plan and other factors, including the size, shape and geotechnical aspects Key judgements and estimates of an ore body. The Group accounts for stripping activities as follows: Judgements: Exploration and evaluation expenditure results in Development stripping costs certain items of expenditure being capitalised for an area of interest These are initial overburden removal costs incurred to obtain access to where a judgement is made that it is likely to be recoverable by mineral deposits that will be commercially produced. These costs are future exploitation or sale, or where the activities are judged not to capitalised when it is probable that future economic benefits (access to have reached a stage that permits a reasonable assessment of the mineral ores) will flow to the Group and costs can be measured reliably. existence of reserves. Once the production phase begins, capitalised development stripping Estimates: Management makes certain estimates and assumptions costs are depreciated using the units of production method based on as to future events and circumstances, in particular when making the proven and probable reserves of the relevant identified component quantitative assessment of whether an economically viable extraction of the ore body which the initial stripping activity benefits. operation can be established. These estimates and assumptions may change as new information becomes available. If, after having capitalised the expenditure under the policy, new information suggests that recovery of the expenditure is unlikely, the relevant capitalised amount is charged to the income statement. Development expenditure When proven mineral reserves are determined and development is sanctioned, capitalised exploration and evaluation expenditure is reclassified as assets under construction within property, plant and equipment. All subsequent development expenditure is capitalised and classified as assets under construction, provided commercial viability conditions continue to be satisfied. 152 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 11 Property, plant and equipment continued Production stripping costs These are post initial overburden removal costs incurred during the normal course of production activity, which commences after the first saleable minerals have been extracted from the component. Production stripping costs can give rise to two benefits, the accounting for which is outlined below: Production stripping activity Benefits of stripping activity Extraction of ore (inventory) in current period. Improved access to future ore extraction. Period benefited Current period Future period(s) Recognition and measurement criteria When the benefits of stripping activities are When the benefits of stripping activities are improved realised in the form of inventory produced; the access to future ore; production costs are capitalised associated costs are recorded in accordance when all the following criteria are met: with the Group's inventory accounting policy. - the production stripping activity improves access to a specific component of the ore body and it is probable that economic benefits arising from the improved access to future ore production will be realised - the component of the ore body for which access has been improved can be identified - costs associated with that component can be measured reliably Allocation of costs Production stripping costs are allocated between the inventory produced and the production stripping asset using a life-of-componentwaste-to-ore (or mineral contained) strip ratio. When the current strip ratio is greater than the estimated life-of-component ratio a portion of the stripping costs is capitalised to the production stripping asset. Asset recognised from stripping activity Inventory Other mineral assets within property, plant and equipment. Depreciation basis Not applicable On a component-by-component basis using the units of production method based on proven and probable reserves. Key judgements and estimates Judgements: Judgement is applied by management in determining the components of an ore body. Estimates: Estimates are used in the determination of stripping ratios and mineral reserves by component. Changes to estimates related to life-of-componentwaste-to-ore (or mineral contained) strip ratios and the expected ore production from identified components are accounted for prospectively and may affect depreciation rates and asset carrying values. Depreciation Depreciation of assets, other than land, assets under construction and capitalised exploration and evaluation that are not depreciated, is calculated using either the straight-line (SL) method or units of production (UoP) method, net of residual values, over the estimated useful lives of specific assets. The depreciation method and rates applied to specific assets reflect the pattern in which the asset's benefits are expected to be used by the Group. The Group's proved reserves for petroleum assets and proved and probable reserves for minerals assets are used to determine UoP depreciation unless doing so results in depreciation charges that do not reflect the asset's useful life. Where this occurs, alternative approaches to determining reserves are applied, such as using management's expectations of future oil and gas prices rather than yearly average prices, to provide a phasing of periodic depreciation charges that better reflects the asset's expected useful life. Where assets are dedicated to a mine or petroleum lease, the useful lives below are subject to the lesser of the asset category's useful life and the life of the mine or petroleum lease, unless those assets are readily transferable to another productive mine or lease. Key estimates The determination of useful lives, residual values and depreciation methods involves estimates and assumptions and is reviewed annually. Any changes to useful lives or any other estimates or assumptions may affect prospective depreciation rates and asset carrying values. The table below summarises the principal depreciation methods and rates applied to major asset categories by the Group. Category Buildings equipment Plant and petroleum Mineral rights interests and Capitalised exploration, development evaluation expenditure and Typical depreciation methodology SL SL UoP UoP Depreciation rate 25-50 years 3-30 years Based on the rate of Based on the rate of depletion of reserves depletion of reserves Commitments The Group's commitments for capital expenditure were US$2,469 million as at 30 June 2021 (2020: US$2,585 million). The Group's commitments related to leases are included in note 21 'Leases'. BHP Annual Report 2021 153

12 Intangible assets 2021 2020 Goodwill intangibles Other Total Goodwill intangibles Other Total US$M US$M US$M US$M US$M US$M Net book value At the beginning of the financial year 1,197 377 1,574 247 428 675 Impact of change in accounting policies(1) --950-950 At the beginning of the financial year (restated) 1,197 377 1,574 1,197 428 1,625 Additions-23 23-98 98 Amortisation for the year-(93) (93)-(118) (118) Impairments for the year(2)-(52) (52) - -Transfers and other movements-(15) (15)-(31) (31) At the end of the financial year 1,197 240 1,437 1,197 377 1,574 - Cost 1,197 1,506 2,703 1,197 1,580 2,777 - Accumulated amortisation and impairments-(1,266) (1,266)-(1,203) (1,203) (1) resulting Intangible in assets the retrospective has been restated recognition to reflect of US changes $950 million to the of Group's Goodwill accounting at Olympic policy Dam following . Refer to note a decision 39 'New by and the IFRS amended Interpretations accounting Committee standards on and IAS interpretations 12 'Income Taxes', and changes to accounting policies' for further information. (2) Refer to note 13 'Impairment of non-current assets' for information on impairments. Recognition and measurement Goodwill Where the fair value of the consideration paid for a business acquisition exceeds the fair value of the identifiable assets, liabilities and contingent liabilities acquired, the difference is treated as goodwill. Where consideration is less than the fair value of acquired net assets, the difference is recognised immediately in the income statement. Goodwill is not amortised and is measured at cost less any impairment losses. Other intangibles The Group capitalises amounts paid for the acquisition of identifiable intangible assets, such as software, licences and initial payments for the acquisition of mineral lease assets, where it is considered that they will contribute to future periods through revenue generation or reductions in cost. These assets, classified as finite life intangible assets, are carried in the balance sheet at the fair value of consideration paid less accumulated amortisation and impairment charges. Intangible assets with finite useful lives are amortised on a straight-line basis over their useful lives. The estimated useful lives are generally no greater than eight years. Initial payments for the acquisition of intangible mineral lease assets are capitalised and amortised over the term of the permit. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area. Capitalised costs are only carried forward to the extent that they are expected to be recovered through the successful exploitation of the area of interest or alternatively by its sale. To the extent that capitalised expenditure is no longer expected to be recovered, it is charged to the income statement. 13 Impairment of non-current assets 2021 Property, plant and and Goodwill other accounted Equity- Cash generating unit Segment equipment US$M intangibles US$M investment US$M US Total $M New South Wales Energy Coal Coal 1,025 32-1,057 Cerrejón Coal - 466 466 Potash G&U 1,314 - 1,314 Other Various 244 20-264 Total impairment of non-current assets 2,583 52 466 3,101 Reversal of impairment ---Net impairment of non-current assets 2,583 52 466 3,101 2020 plant Property, and and Goodwill other accounted Equity- Cash generating unit Segment equipment US$M intangibles US$M investment US$M US Total $M Cerro Colorado Copper 409 - 409 Other Various 85 - 85 Total impairment of non-current assets 494 - 494 Reversal of impairment ---Net impairment of non-current assets 494 - 494 154 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 13 Impairment of non-current assets continued Recognition and measurement Impairment tests for all assets are performed when there is an indication of impairment, although goodwill is tested at least annually. If the carrying amount of the asset exceeds its recoverable amount, the asset is impaired and an impairment loss is charged to the income statement so as to reduce the carrying amount in the balance sheet to its recoverable amount. Previously impaired assets (excluding goodwill) are reviewed for possible reversal of previous impairment at each reporting date. Impairment reversal cannot exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset or cash generating units (CGUs). There were no reversals of impairment in the current or prior year. How recoverable amount is calculated The recoverable amount is the higher of an asset's or CGU's fair value less cost of disposal (FVLCD) and its value in use (VIU). For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Valuation methods Fair value less cost of disposal FVLCD is an estimate of the amount that a market participant would pay for an asset or CGU, less the cost of disposal. FVLCD for mineral and petroleum assets is generally determined using independent market assumptions to calculate the present value of the estimated future post-tax cash flows expected to arise from the continued use of the asset, including the anticipated cash flow effects of any capital expenditure to enhance production or reduce cost, and its eventual disposal where a market participant may take a consistent view. Cash flows are discounted using an appropriate post-tax market discount rate to arrive at a net present value of the asset, which is compared against the asset's carrying value. FVLCD may also take into consideration other market-based indicators of fair value. Value in use VIU is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and its eventual disposal or closure. VIU is determined by applying assumptions specific to the Group's continued use and cannot take into account future development. These assumptions are different to those used in calculating FVLCD and consequently the VIU calculation is likely to give a different result (usually lower) to a FVLCD calculation. Impairment of non-current assets (excluding goodwill) The Group recognised the following impairments to non-current assets during the year: Year ended 30 June 2021 NSWEC Cerrejón Potash What has been recognised? At 30 June 2021, the Group At 30 June 2021, the Group At 30 June 2021, the Group determined the overall recoverable determined the recoverable determined the recoverable amount of the CGU to be negative amount to be US$284 million, amount to be US$3.3 billion, US$300 million, resulting in an being the agreed sale proceeds resulting in an impairment charge aggregate impairment to property, of US$294 million adjusted for of US$1.3 billion against property, plant and equipment and intangibles transaction costs, resulting in plant and equipment. of US$1,057 million for FY2021. an aggregate impairment of US$466 million for FY2021. What of impairment? were the drivers The impairment charges reflect the On 28 June 2021, the Group The impairment charge against status of the divestment process announced that it had signed the Group's Potash assets reflects and the forecast market conditions a Sale and Purchase Agreement an analysis of recent market for Australian thermal coal, the with Glencore to divest its perspectives and the value that strengthening Australian dollar interest in Cerrejón. the Group would now expect a and changes to the mine plan. market participant to attribute to the Group's investments to date. How valuations were the calculated? The 30 June 2021 valuation The 30 June 2021 valuation The 30 June 2021 valuation represents VIU, applying discounted represents a FVLCD based on was determined using FVLCD cash flow (DCF) techniques(1). the expected net sale proceeds methodology, applying DCF of US$284 million(1). techniques(1). What assumptions were the and significant estimates The valuation for NSWEC is most sensitive to changes in energy coal prices, estimated future production volumes and discount rates. The valuation applied a post-tax real discount rate of 6.5 per cent. The post-used in the valuations? impairment carrying value of NSWEC's property, plant and equipment is not material, therefore any changes to key estimates will not give rise to a further material impairment. The valuation for Potash is most sensitive to changes in the long-term potash price outlook and the risking applied to the future development phases of the potash resource. The valuation applied a post-tax real discount rate of 6.5 per cent. In August 2021, the Group sanctioned the ongoing development of Potash following a comprehensive review of the future prospects and development opportunities. In light of this investment approval and the risking applied in the current valuation, management does not consider there to be a significant risk of a further material impairment in the next financial reporting period. Key judgements and estimates that have been applied in the valuations using DCF techniques are disclosed further below. (1) Valuations are based primarily on Level 3 inputs as defined in note 23 'Financial risk management'. BHP Annual Report 2021 155

13 Impairment of non-current assets continued Impairment test for goodwill The carrying amount of goodwill has been allocated to the CGUs, or groups of CGUs, as follows: 2021 US 2020 $M Cash generating unit US$M Restated Olympic Dam(1) 1,010 1,010 Other 187 187 Total goodwill 1,197 1,197 (1) in Goodwill the retrospective has been restated recognition to reflect of US $ changes 950 million to the of Group's Goodwill accounting at Olympic policy Dam. Refer following to note a decision 39 'New by and the amended IFRS Interpretations accounting Committee standards and on IAS interpretations 12 'Income Taxes', and changes resulting to accounting policies' for further information. For the purpose of impairment testing, goodwill has been allocated to CGUs or groups of CGUs, that are expected to benefit from the synergies of previous business combinations, which represent the level at which management will monitor and manage goodwill. Olympic Dam goodwill is the most significant goodwill balance. Olympic Dam goodwill Impairment test conclusion The Group's decision during HY2021 to change the expansion strategy for Olympic Dam was identified as an indicator of impairment as at 31 December 2020. The Group performed an impairment test of the Olympic Dam CGU, including goodwill, as at 31 December 2020 and an impairment charge was not required. A goodwill impairment test was not required at 30 June 2021 as there were no indicators of impairment. How did the goodwill arise? Goodwill arose on the acquisition of WMC Resources Ltd in June 2005. Segment Olympic Dam is part of the Copper reportable segment. How calculated? were the valuations FVLCD methodology using DCF techniques has been applied in determining the recoverable amount of Olympic Dam. The calculation is based primarily on Level 3 inputs as defined in note 23 'Financial risk management'. Significant and sensitivities assumptions The current valuation of Olympic Dam exceeds its carrying amount by approximately US$1.8 billion and is most sensitive to changes in copper and gold commodity prices, production volumes, operating costs and discount rates. The valuation applied a post-tax real discount rate of 6 per cent. Management consider that there are no reasonably possible changes in copper and gold price forecasts, operating cost estimates or the discount rate that would, in isolation, result in the estimated recoverable amount being equal to the carrying amount. A production volume decrease of 4.8 per cent across all commodities (copper, gold, silver and uranium) would, in isolation, result in the estimated recoverable amount being equal to the carrying amount. Typically, changes in any one of the aforementioned assumptions (including operating performance) would be accompanied by a change in another assumption which may have an offsetting impact. Action is usually taken to respond to adverse changes in assumptions to mitigate the impact of any such change. Key judgements and estimates that have been applied in the FVLCD valuation are disclosed further below. Other goodwill Goodwill held by other CGUs is US$187 million (2020: US$187 million). This represents less than one per cent of net assets at 30 June 2021 (2020: less than one per cent). There was no impairment of other goodwill in the year to 30 June 2021 (2020: US$ nil). 156 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 13 Impairment of non-current assets continued Key judgements and estimates Judgements: Assessment of indicators of impairment or impairment costs, capital expenditure, closure and rehabilitation costs, tax attributes, reversal and the determination of CGUs for impairment purposes risking factors applied to cash flows and discount rates. The cash flow require significant management judgement. forecasts may include net cash flows expected from the extraction, processing and sale of material that does not currently qualify for Indicators of impairment may include changes in the Group's operating inclusion in ore reserves. Reserves and resources are included in the and economic assumptions, including those arising from changes assessment of FVLCD to the extent that it is considered probable that in reserves or mine planning, updates to the Group's commodity a market participant would attribute value to them. supply, demand and price forecasts, or the possible additional impacts from emerging risks such as those related to climate change and the When recoverable amount is measured using VIU, estimates are made transition to a low carbon economy and pandemics similar to COVID-19. regarding the present value of future cash flows based on internal Climate change budgets and forecasts and life of asset plans. Key estimates are similar Impacts related to climate change and the transition to a lower carbon to those identified for FVLCD, although some assumptions and values economy may include: may differ as they reflect the perspective of management rather than - demand for the Group's commodities decreasing, due to a market participant. policy, regulatory (including carbon pricing mechanisms), legal, All estimates require management judgements and assumptions and technological, market or societal responses to climate change, are subject to risk and uncertainty that may be beyond the control of the resulting in a proportion of a CGU's reserves becoming incapable Group; hence, there is a possibility that changes in circumstances will of extraction in an economically viable fashion materially alter projections, which may impact the recoverable amount of assets/CGUs at each reporting date. - physical impacts related to acute risks resulting from increased The most significant estimates impacting the Group's recoverable severity of extreme weather events, and those related to chronic amount determinations: risks resulting from longer-term changes in climate patterns The Group continues to develop its assessment of the potential Commodity prices impacts of climate change and the transition to a low carbon economy. Commodity prices were based on latest internal forecasts which As outlined in the Basis of Preparation, where sufficiently developed, assume short-term market prices will revert to the Group's assessment the potential financial impacts on the Group of climate change and of long-term price. These price forecasts reflect management's long-the transition to a low carbon economy have been considered in the term views of global supply and demand, built upon past experience assessment of indicators of impairment, including: of the commodity markets and are benchmarked with external sources of information such as analyst forecasts. Prices are adjusted based - the Group's current assumptions relating to demand for commodities upon premiums or discounts applied to global price markers based and carbon pricing, including their impact on the Group's long-term on the location, nature and quality produced, or to take into account price forecasts contracted prices. - the Group's operational emissions reduction strategy Future production volumes COVID-19 Estimated production volumes were based on detailed data and took The macro economic disruptions relating to COVID-19 and mitigating into account development plans established by management as part actions enforced by health authorities create uncertainty in the Group's of the Group's long-term planning process. When estimating FVLCD, operating and economic assumptions, including commodity prices, assumptions reflect all reserves and resources that a market participant demand and supply volumes, operating costs, and discount rates. would consider when valuing the respective CGU, which in some However, given the long-lived nature of the majority of the Group's cases are broader in scope than the reserves that would be used in a assets, COVID-19 did not, in isolation, result in the identification of VIU test. In determining FVLCD, risk factors may be applied to reserves indicators of impairment for the Group's asset values at 30 June 2021. and resources which do not meet the criteria to be treated as proved. Due to ongoing uncertainty as to the extent and duration of COVID-19 Operating costs and capital expenditure restrictions and the overall impact on economic activity, actual Operating costs and capital expenditure were based on internal experience may materially differ from internal forecasts and may result budgets and forecasts and life of asset plans. Cost assumptions reflect in the reassessment of indicators of impairment for the Group's assets management experience and expectations. In the case of FVLCD, cash in future reporting periods. flow projections include the anticipated cash flow effects of any capital Estimates: The Group performs a recoverable amount determination expenditure to enhance production or reduce cost where a market for an asset or CGU when there is an indication of impairment or participant may take a consistent view. VIU does not take into account impairment reversal. future development. When the recoverable amount is measured by reference to FVLCD, Discount rates in the absence of quoted market prices or binding sale agreement, The Group uses real post-tax discount rates applied to real post-tax cash estimates are made regarding the present value of future post-tax cash flows. The discount rates are derived using the weighted average cost flows. These estimates are made from the perspective of a market of capital methodology. Adjustments to the rates are made for any risks participant and include prices, future production volumes, operating that are not reflected in the underlying cash flows, including country risk. BHP Annual Report 2021 157

14 Deferred tax balances The movement for the year in the Group's net deferred tax position is as follows: 2021 US 2020 $M US 2019 $M US$M Restated Restated Net deferred tax (liability)/asset At the beginning of the financial year (91) (491) 569 Impact of change in accounting policies(1) - (1,021) Income tax (charge)/credit recorded in the income statement(2) (1,325) 335 (81) Income tax credit recorded directly in equity 42 34 15 Other movements (28) 31 27 At the end of the financial year (1,402) (91) (491) (1) resulting Deferred in tax the has retrospective been restated recognition to reflect changes of US$1,021 to the million Group's of Deferred accounting tax. Refer policy to following note 39 'New a decision and amended by the IFRS accounting Interpretations standards Committee and interpretations on IAS 12 'Income and changes Taxes', to accounting policies' for further information. (2) Includes Discontinued operations income tax credit to the income statement of US$ nil (2020: US$ nil; 2019: US$40 million). For recognition and measurement refer to note 6 'Income tax expense'. The composition of the Group's net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense charged/(credited) to the income statement is as follows: Deferred tax assets Deferred tax liabilities Charged/(credited) to the income statement 2021 2020 2021 US 2020 $M 2021 2020 2019 US$M US$M US$M Restated US$M US$M US$M Type of temporary difference Depreciation(1)(2) (1,349) (2,749) 4,716 2,828 488 1,394 (951) Exploration expenditure 51 398 - 347 51 43 Employee benefits 94 353 (333) (26) (68) (38) 14 Closure and rehabilitation 638 2,100 (2,086) (109) (515) (334) (53) Resource rent tax 122 359 368 921 (309) (119) (179) Other provisions 108 173 (227) (239) 77 (268) (2) Deferred income 11 (4) (16)-(31) 33 (9) Deferred charges (36) (383) 602 187 68 (132) 56 Investments, including foreign tax credits 147 348 671 458 414 (77) 70 Foreign exchange gains and losses (3) (134) 133 (61) 63 (18) (45) Tax losses 1,999 2,759 (82)-678 (148) 1,147 Lease liability(1) 68 548 (658) (245) 67 (793) -Other 62 (80) 226 65 46 114 (10) Total 1,912 3,688 3,314 3,779 1,325 (335) 81 (1) Includes deferred tax associated with the recognition of right-of-use assets and lease liabilities on adoption of IFRS 16. Refer to note 21 'Leases'. (2) FY2020 'Income has Taxes' been . Refer restated to note to 39 reflect 'New the and impact amended of the accounting change to standards the Group's and accounting interpretations policy and following changes a decision to accounting by the IFRS policies' Interpretations for further information Committee. on IAS 12 The amount of deferred tax assets dependent on future taxable profits not arising from the reversal of existing deferred tax liabilities, and which relate to tax jurisdictions where the taxable entity has suffered a loss in the current or preceding year, was US$1,675 million at 30 June 2021 (2020: US$2,865 million). For operating assets, the group assesses the recoverability of these deferred tax assets using estimates and assumptions relating to projected earnings and cash flows as applied in the Group impairment process for associated operations. Further information on the key judgements and estimates relating to the recognition of deferred tax assets is provided in note 6 'Income tax expense'. The composition of the Group's unrecognised deferred tax assets and liabilities is as follows: 2021 US 2020 $M US$M Restated Unrecognised deferred tax assets Tax losses and tax credits(1) 5,944 4,088 Investments in subsidiaries(2) 1,712 1,575 Deductible temporary differences relating to PRRT(3) 2,402 2,079 Mineral rights(4) 3,359 3,265 Other deductible temporary differences(5) 1,630 673 Total unrecognised deferred tax assets 15,047 11,680 Unrecognised deferred tax liabilities Investments in subsidiaries(2) 2,203 2,375 Future taxable temporary differences relating to unrecognised deferred tax asset for PRRT(3) 720 624 Total unrecognised deferred tax liabilities 2,923 2,999 (1) At US 30 $1,683 June million), 2021, the which Group are had not income recognised and as capital deferred tax losses tax assets, with a because tax benefit it is of not US probable $3,569 million that future (2020: taxable US$2,405 profits million) or capital and gains tax credits will be of available US$2,375 against million which (2020: the Group can utilise the benefits. 158 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 14 Deferred tax balances continued The gross amount of tax losses carried forward that have not been recognised is as follows: Year of expiry US 2021 $M US 2020 $M Income tax losses Not later than one year 13 474 Later than one year and not later than two years 5 240 Later than two years and not later than five years 105 2,525 Later than five years and not later than 10 years 1,449 679 Later than 10 years and not later than 20 years 3,347 2,379 Unlimited 4,799 2,262 9,718 8,559 Capital tax losses Not later than one year -Later than two years and not later than five years -Unlimited 4,238 4,150 Gross amount of tax losses not recognised 13,956 12,709 Tax effect of total losses not recognised 3,569 2,405 Of the US$2,375 million of tax credits, US$1,805 million expires not later than 10 years and US$570 million expires later than 10 years and not later than 20 years. (2) able The Group to control had the deferred timing tax of the assets reversal and deferred of the temporary tax liabilities differences associated and with it is undistributed not probable that earnings these of differences subsidiaries will that reverse have in not the been foreseeable recognised future because . Where the the Group Group is has undistributed earnings held by associates and joint interests, the deferred tax liability will be recognised as there is no ability to control the timing of the potential distributions. (3) expected The Group to had be unrecognised obtained from deferred the deduction tax assets against relating PRRT to liabilities Australian . As Petroleum PRRT payments Resource are deductible Rent Tax (PRRT) for income . Recognition tax purposes, of a deferred to the tax extent asset these for PRRT PRRT depends deferred on tax benefits assets PRRT are recognised deferred tax this assets) would. give rise to a corresponding deferred tax liability for income tax (presented as the future taxable temporary differences relating to the unrecognised (4) The gains Group will be had available deductible against temporary which the differences Group can relating utilise the to mineral benefits rights . The for deductible which deferred temporary tax assets differences had not do been not expire recognised under current because tax it legislation is not probable . that future capital (5) available The Group against had other which deductible the Group temporary can utilise differences the benefits for . The which deductible deferred temporary tax assets differences had not been do recognised not expire under because current it is not tax probable legislation that . future taxable profits will be 15 Closure and rehabilitation provisions US 2021 $M US 2020 $M At the beginning of the financial year 8,810 6,977 Capitalised amounts for operating sites: Change in estimate 1,974 1,255 Exchange translation 483 (188) Adjustments charged/(credited) to the income statement: Increases to existing and new provisions 564 731 Exchange translation 76 (19) Released during the year (157) (43) Other adjustments to the provision: Amortisation of discounting impacting net finance costs 380 356 Acquisition of subsidiaries and operations 179 -Divestment and demerger of subsidiaries and operations (81) -Expenditure on closure and rehabilitation activities (321) (258) Exchange variations impacting foreign currency translation reserve 3 (1) At the end of the financial year 11,910 8,810 Comprising: Current 591 373 Non-current 11,319 8,437 Operating sites 9,279 6,636 Closed sites 2,631 2,174 The Group is required to rehabilitate sites and associated facilities at the end of or, in some cases, during the course of production to a condition acceptable to the relevant authorities, as specified in licence requirements and the Group's environmental performance requirements as set out within Our Charter. The key components of closure and rehabilitation activities are: - the removal of all unwanted infrastructure associated with an operation - the return of disturbed areas to a safe, stable, productive and self-sustaining condition, consistent with the agreed end land use Recognition and measurement Provisions for closure and rehabilitation are recognised by the Group when: - it has a present legal or constructive obligation as a result of past events - it is more likely than not that an outflow of resources will be required to settle the obligation - the amount can be reliably estimated BHP Annual Report 2021 159

15 Closure and rehabilitation provisions continued Initial recognition Subsequent remeasurement Closure and rehabilitation provisions are The closure and rehabilitation asset, recognised within property, plant and equipment, is depreciated initially recognised when an environmental over the life of the operations. The value of the provision is progressively increased over time as the disturbance first occurs. The individual site effect of discounting unwinds, resulting in an expense recognised in net finance costs. provisions are an estimate of the expected The closure and rehabilitation provision is reviewed at each reporting date to assess if the estimate value of future cash flows required to continues to reflect the best estimate of the obligation. If necessary, the provision is remeasured rehabilitate the relevant site using current to account for factors, including: restoration standards and techniques and taking into account risks and uncertainties. - revisions to estimated reserves, resources and lives of operations Individual site provisions are discounted to - developments in technology their present value using currency specific - regulatory requirements and environmental management strategies discount rates aligned to the estimated timing of cash outflows. - changes in the estimated extent and costs of anticipated activities, including the effects of inflation and movements in foreign exchange rates When provisions for closure and - movements in interest rates affecting the discount rate applied rehabilitation are initially recognised, the corresponding cost is capitalised as an Changes to the closure and rehabilitation estimate for operating sites are added to, or deducted from, asset, representing part of the cost of the related asset and amortised on a prospective basis accordingly over the remaining life of the acquiring the future economic benefits operation, generally applying the units of production method. of the operation. Costs arising from unforeseen circumstances, such as the contamination caused by unplanned discharges, are recognised as an expense and liability when the event gives rise to an obligation that is probable and capable of reliable estimation. Closed sites Where future economic benefits are no longer expected to be derived through operation, changes to the associated closure and remediation costs are charged to the income statement in the period identified. This amounted to US$483 million in the year ended 30 June 2021 (2020: US$669 million; 2019: US$251 million). Key estimates The recognition and measurement of closure and rehabilitation provisions approximately US$210 million in respect of closed sites was recognised in requires the use of significant estimates and assumptions, including, but the income statement. not limited to: While the closure and rehabilitation provisions reflect management's best - the extent (due to legal or constructive obligations) of potential estimates based on current knowledge and information, further studies activities required for the removal of infrastructure and and detailed analysis of the closure activities for individual assets will rehabilitation activities be performed as the assets near the end of their operational life and/or - costs associated with future rehabilitation activities detailed closure plans are required to be submitted to relevant regulatory authorities. Such studies and analysis can impact the estimated costs - applicable discount rates of closure activities. Estimates can also be impacted by the emergence - the timing of cash flows and ultimate closure of operations of new restoration techniques, changes in regulatory requirements for The extent and cost of future rehabilitation activities may also be impacted rehabilitation, risks relating to climate change and the transition to a low by the potential physical impacts of climate change. In estimating the carbon economy, and experience at other operations. These uncertainties potential cost of closure activities, the Group considers factors such as may result in future actual expenditure differing from the amounts currently long-term weather outlooks, for example forecast changes in rainfall provided for in the balance sheet. patterns, and the impact of the Group's energy transition strategy on Sensitivity the costs of performing rehabilitation activities. A further 0.5 per cent decrease in the discount rates applied at 30 June While progressive closure is performed across a number of operations, 2021 would result in an increase to the closure and rehabilitation provision significant rehabilitation activities are generally undertaken at the end of of approximately US$1,075 million, an increase in property, plant and the production life at the individual sites, the estimated timing of which equipment of approximately US$820 million in relation to operating is informed by the Group's current assumptions relating to demand for sites and an income statement charge of approximately US$255 million commodities and carbon pricing, and their impact on the Group's long- in respect of closed sites. In addition, the change would result in an term price forecasts. Remaining production lives range from 3-91 years increase of approximately US$115 million to depreciation expense with an average for all sites, weighted by current closure provision, of and a US$25 million reduction in net finance costs for the year ending approximately 27 years. The discount rates applied to the Group's closure 30 June 2022. and rehabilitation provisions are determined by reference to the currency Given the long-lived nature of the majority of the Group's assets, closure of the closure cash flows, the period over which the cash flows will be activities are generally not expected to occur for a significant period of incurred and prevailing market interest rates (where available). The rates time. A one-year acceleration in forecast cash flows of the Group's closure were revised during the year to reflect decreases in market interest rates. and rehabilitation provisions, in isolation, would result in an increase to the The effect of changes to discount rates was an increase of approximatively provision of approximately US$230 million, an increase in property, plant US$1,085 million in the closure and rehabilitation provision of which and equipment of US$180 million in relation to operating sites and an income statement charge of US$50 million in respect of closed sites. 160 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information Capital structure 16 Share capital BHP Group Limited BHP Group Plc shares 2021 shares 2020 shares 2019 shares 2021 shares 2020 shares 2019 Share capital issued Opening number of shares 2,945,851,394 2,945,851,394 3,211,691,105 2,112,071,796 2,112,071,796 2,112,071,796 Purchase of shares by ESOP Trusts (7,587,353) (5,975,189) (6,854,057) (185,054) (185,297) (274,069) Employee share awards exercised following vesting 6,948,683 6,893,113 5,902,588 173,644 222,245 275,984 Movement in treasury shares under Employee Share Plans 638,670 (917,924) 951,469 11,410 (36,948) (1,915) Shares bought back and cancelled(1) - (265,839,711) - -Closing number of shares(2) 2,945,851,394 2,945,851,394 2,945,851,394 2,112,071,796 2,112,071,796 2,112,071,796 Comprising: Shares held by the public 2,944,982,333 2,945,621,003 2,944,703,079 2,112,057,615 2,112,069,025 2,112,032,077 Treasury shares 869,061 230,391 1,148,315 14,181 2,771 39,719 Other share classes Special Voting share of no par value 1 1 1 - -Special Voting share of US$0.50 par value --1 1 1 5.5% Preference shares of £1 each --50,000 50,000 50,000 DLC Dividend share 1 1 1 --(1) During disposal December of Onshore 2018, US. BHP completed an off-marketbuy-back program of US$5.2 billion of BHP Group Limited shares related to the disbursement of proceeds from the (2) 4,400,000 fully paid ordinary shares in BHP Group Limited were issued in order to satisfy the exercise of employee share awards during the period 1 July 2021 to 2 September 2021. Recognition and measurement Share capital of BHP Group Limited and BHP Group Plc is composed of the following classes of shares: Ordinary shares fully paid Special Voting shares Preference shares BHP Group Limited ordinary shares fully paid Each of BHP Group Limited and BHP Group Plc Preference shares have the right to repayment of and BHP Group Plc ordinary shares fully paid of issued one Special Voting share to facilitate joint the amount paid up on the nominal value and any US$0.50 par value, represent 99.99 per cent of voting by shareholders of BHP Group Limited unpaid dividends in priority to the holders of any the total number of shares. Any profit remaining and BHP Group Plc on Joint Electorate Actions. other class of shares in BHP Group Plc on a return after payment of preferred distributions is There has been no movement in these shares. of capital or winding up. The holders of preference available for distribution to the holders of BHP shares have limited voting rights if payment of the Group Limited and BHP Group Plc ordinary preference dividends are six months or more in shares in equal amounts per share. arrears or a resolution is passed changing the rights of the preference shareholders. There has been no movement in these shares, all of which are held by JP Morgan Limited. DLC Dividend share Treasury shares The DLC Dividend share supports the Dual Treasury shares are shares of BHP Group Listed Company (DLC) equalisation principles Limited and BHP Group Plc and are held by the in place since the merger in 2001, including the ESOP Trusts for the purpose of issuing shares requirement that ordinary shareholders of BHP to employees under the Group's Employee Group Plc and BHP Group Limited are paid equal Share Plans. Treasury shares are recognised cash dividends per share. This share enables at cost and deducted from equity, net of any efficient and flexible capital management across income tax effects. When the treasury shares are the DLC and was issued on 23 February 2016 subsequently sold or reissued, any consideration at par value of US$10. On 16 September 2020 received, net of any directly attributable costs and and on 17 March 2021, BHP Group Limited paid income tax effects, is recognised as an increase dividends of US$1,915 million and US$1,610 million in equity. Any difference between the carrying respectively to BHP (AUS) DDS Pty Ltd under amount and the consideration, if reissued, is the DLC dividend share arrangements. These recognised in retained earnings. dividends are eliminated on consolidation. BHP Annual Report 2021 161

17 Other equity US 2021 $M US 2020 $M US 2019 $M Recognition and measurement Share premium account 518 518 518 The share premium account represents the premium paid on the issue of BHP Group Plc shares recognised in accordance with the UK Companies Act 2006. Foreign currency 43 39 37 The foreign currency translation reserve represents exchange differences arising translation reserve from the translation of non-US dollar functional currency operations within the Group into US dollars. Employee share 268 246 213 The employee share awards reserve represents the accrued employee entitlements to awards reserve share awards that have been charged to the income statement and have not yet been exercised. Once exercised, the difference between the accumulated fair value of the awards and their historical on-market purchase price is recognised in retained earnings. Cash flow hedge reserve 100 50 114 The cash flow hedge reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss on the hedge is recognised in the income statement when the hedged transaction impacts the income statement, or is recognised as an adjustment to the cost of non-financial hedged items. The hedging reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge relationship. Cost of hedging reserve (54) (23) (74) The cost of hedging reserve represents the recognition of certain costs of hedging for example, basis adjustments, which have been excluded from the hedging relationship and deferred in other comprehensive income until the hedged transaction impacts the income statement. Equity investments reserve 15 16 17 The equity investments reserve represents the revaluation of investments in shares recognised through other comprehensive income. Where a revalued financial asset is sold, the relevant portion of the reserve is transferred to retained earnings. Capital redemption reserve 177 177 177 The capital redemption reserve represents the par value of BHP Group Plc shares that were purchased and subsequently cancelled. The cancellation of the shares creates a non-distributable capital redemption reserve. Non-controlling interest 1,283 1,283 1,283 The non-controlling interest contribution reserve represents the excess of consideration contribution reserve received over the book value of net assets attributable to equity instruments when acquired by non-controlling interests. Total reserves 2,350 2,306 2,285 Summarised financial information relating to each of the Group's subsidiaries with non-controlling interests (NCI) that are material to the Group before any intra-group eliminations is shown below: 2021 2020 Other individually immaterial Other individually immaterial Escondida Minera (incl.subsidiaries intra-group Escondida Minera (incl.subsidiaries intra-group US$M Limitada eliminations) Total Limitada eliminations) Total Group share (per cent) 57.5 57.5 Current assets 2,996 2,432 Non-current assets 11,867 12,121 Current liabilities (1,912) (1,614) Non-current liabilities (4,733) (4,613) Net assets 8,218 8,326 Net assets attributable to NCI 3,493 848 4,341 3,539 771 4,310 Revenue 9,470 6,719 Profit after taxation 3,605 1,088 Other comprehensive income 27 (27) Total comprehensive income 3,632 1,061 Profit after taxation attributable to NCI 1,532 615 2,147 462 318 780 Other comprehensive income attributable to NCI 11 - 11 (11)-(11) Net operating cash flow 5,007 2,637 Net investing cash flow (655) (919) Net financing cash flow (4,001) (1,920) Dividends paid to NCI 1,590 537 2,127 757 286 1,043 While the Group controls Minera Escondida Limitada, the non-controlling interests hold certain protective rights that restrict the Group's ability to sell assets held by Minera Escondida Limitada, or use the assets in other subsidiaries and operations owned by the Group. Minera Escondida Limitada is also restricted from paying dividends without the approval of the non-controlling interests. 162 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 18 Dividends Year ended 30 June 2021 Year ended 30 June 2020 Year ended 30 June 2019 Per US share cents US Total $M Per US cents share US Total $M Per US cents share US Total $M Dividends paid during the period(1) Prior year final dividend 55 2,779 78 3,946 63 3,356 Interim dividend 101 5,115 65 3,288 55 2,788 Special dividend - - 102 5,158 156 7,894 143 7,234 220 11,302 (1) 5.5 per cent dividend on 50,000 preference shares of £1 each determined and paid annually (2020: 5.5 per cent; 2019: 5.5 per cent). Dividends paid during the period differs from the amount of dividends paid in the Cash Flow Statement as a result of foreign exchange gains and losses relating to the timing of equity distributions between the record date and the payment date. Additional derivative proceeds of US$8 million were received as part of the funding of the interim dividend and is disclosed in (Settlements)/proceeds of cash management related instruments in the Cash Flow Statement. The Dual Listed Company merger terms require that ordinary shareholders of BHP Group Limited and BHP Group Plc are paid equal cash dividends on a per share basis. Each American Depositary Share (ADS) represents two ordinary shares of BHP Group Limited or BHP Group Plc. Dividends determined on each ADS represent twice the dividend determined on BHP Group Limited or BHP Group Plc ordinary shares. Dividends are determined after period-end and announced with the results for the period. Interim dividends are determined in February and paid in March. Final dividends are determined in August and paid in September. Dividends determined are not recorded as a liability at the end of the period to which they relate. Subsequent to year-end, on 17 August 2021, BHP Group Limited and BHP Group Plc determined a final dividend of 200 US cents per share (US$10,114 million), which will be paid on 21 September 2021 (30 June 2020: final dividend of 55 US cents per share - US$2,782 million; 30 June 2019: final dividend of 78 US cents per share - US$3,944 million). BHP Group Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of 30 per cent. US 2021 $M US 2020 $M US 2019 $M Franking credits as at 30 June 14,302 10,980 8,681 Franking credits arising from the payment of current tax 1,799 471 1,194 Total franking credits available(1) 16,101 11,451 9,875 (1) The payment of the final 2021 dividend determined after 30 June 2021 will reduce the franking account balance by US$2,525 million. 19 Provisions for dividends and other liabilities The disclosure below excludes closure and rehabilitation provisions (refer to note 15 'Closure and rehabilitation provisions'), employee benefits, restructuring and post-retirement employee benefits provisions (refer to note 26 'Employee benefits, restructuring and post-retirement employee benefits provisions') and provisions related to the Samarco dam failure (refer to note 4 'Significant events - Samarco dam failure'). US 2021 $M US 2020 $M Movement in provision for dividends and other liabilities At the beginning of the financial year 1,240 501 Dividends determined 7,894 7,234 Charge/(credit) for the year: Underlying 260 1,027 Discounting 2 3 Exchange variations 20 (356) Released during the year (43) (94) Utilisation (267) (99) Dividends paid (7,901) (6,876) Transfers and other movements (624) (100) At the end of the financial year 581 1,240 Comprising: Current 293 258 Non-current 288 982 BHP Annual Report 2021 163

Financial management 20 Net debt The Group seeks to maintain a strong balance sheet and deploys its capital with reference to the Capital Allocation Framework. The Group monitors capital using the net debt balance and the gearing ratio, being the ratio of net debt to net debt plus net assets. The net debt definition includes the fair value of derivative financial instruments used to hedge cash and borrowings which reflects the Group's risk management strategy of reducing the volatility of net debt caused by fluctuations in foreign exchange and interest rates. Vessel lease contracts, under IFRS 16, are required to be remeasured at each reporting date to the prevailing freight index. While these liabilities are included in the Group interest bearing liabilities, they are excluded from the net debt calculation as they do not align with how the Group assesses net debt for decision making in relation to the Capital Allocation Framework. In addition, the freight index has historically been volatile which creates significant short-term fluctuation in these liabilities. 2021 Restated 2020 US$M Current Non-current Current Non-current Interest bearing liabilities Bank loans 437 1,823 737 1,755 Notes and debentures 1,244 13,525 3,354 17,691 Lease liabilities 889 3,007 853 2,590 Bank overdraft and short-term borrowings - -Other 58-68-Total interest bearing liabilities 2,628 18,355 5,012 22,036 Less: Lease liability associated with index-linked freight contracts 346 679 379 781 Less: Cash and cash equivalents Cash 4,408-3,493 -Short-term deposits 10,838-9,933-Less: Total cash and cash equivalents 15,246-13,426 -Less: Derivatives included in net debt Net debt management related instruments(1) 20 537 (162) 595 Net cash management related instruments(2) 34-(15)-Less: Total derivatives included in net debt 54 537 (177) 595 Net debt 4,121 12,044 Net assets(3) 55,605 52,175 Gearing 6.9% 18.8% (1) Represents the net cross currency and interest rate swaps designated as effective hedging instruments included within current and non-current other financial assets and liabilities. (2) Represents the net forward exchange contracts included within current and non-current other financial assets and liabilities. (3) 30 Taxes' June resulting 2020 net in a assets retrospective have been decrease restated of to US reflect $71 million changes . Refer to to the note Group's 39 'New accounting and amended policy following accounting a decision standards by and the interpretations IFRS Interpretations and changes Committee to accounting on IAS 12 'Income policies' . Cash and short-term deposits are disclosed in the cash flow statement net of bank overdrafts and interest bearing liabilities at call. US 2021 $M US 2020 $M US 2019 $M Total cash and cash equivalents 15,246 13,426 15,613 Bank overdrafts and short-term borrowings - (20) Total cash and cash equivalents, net of overdrafts 15,246 13,426 15,593 Recognition and measurement Cash and short-term deposits in the balance sheet comprise cash at bank and on hand and highly liquid cash deposits with short-term maturities that are readily convertible to known amounts of cash with insignificant risk of change in value. The Group considers that the carrying value of cash and cash equivalents approximate fair value due to their short-term to maturity. Cash and cash equivalents includes US$159 million (2020: US$96 million) restricted by legal or contractual arrangements. Interest bearing liabilities and cash and cash equivalents include balances denominated in the following currencies: Interest bearing liabilities Cash and cash equivalents US 2021 $M US 2020 $M US 2021 $M US 2020 $M USD 11,146 14,625 12,003 9,555 EUR 4,505 7,323 4 4 GBP 3,415 3,272 32 519 AUD 1,053 1,055 573 1,011 CAD 635 597 2,455 2,131 Other 229 176 179 206 Total 20,983 27,048 15,246 13,426 The Group enters into derivative transactions to convert the majority of its exposures above into US dollars. Further information on the Group's risk management activities relating to these balances is provided in note 23 'Financial risk management'. Liquidity risk The Group's liquidity risk arises from the possibility that it may not be able to settle or meet its obligations as they fall due and is managed as part of the portfolio risk management strategy. Operational, capital and regulatory requirements are considered in the management of liquidity risk, in conjunction with short-term and long-term forecast information. 164 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 20 Net debt continued Recognising the cyclical volatility of operating cash flows, the Group has defined minimum target cash and liquidity buffers to be maintained to mitigate liquidity risk and support operations through the cycle. The Group's strong credit profile, diversified funding sources, its minimum cash buffer and its committed credit facilities ensure that sufficient liquid funds are maintained to meet its daily cash requirements. The Group's Moody's credit rating has remained at A2/P-1 outlook stable (long-term/short-term) throughout FY2021. Moody's affirmed its credit rating on 31 May 2021. The Group's Standard & Poor's rating changed from A/A-1 outlook stable (long-term/short-term) to A/A-1 CreditWatch negative (long-term/ short-term) on 23 August 2021. There were no defaults on the Group's liabilities during the period. Counterparty risk The Group is exposed to credit risk from its financing activities, including short-term cash investments such as deposits with banks and derivative contracts. This risk is managed by Group Treasury in line with the counterparty risk framework, which aims to minimise the exposure to a counterparty and mitigate the risk of financial loss through counterparty failure. Exposure to counterparties is monitored at a Group level across all products and includes exposure with derivatives and cash investments. Investments and derivatives are only transacted with approved counterparties who have been assigned specific limits based on a quantitative credit risk model. These limits are updated at least bi-annually. Additionally, derivatives are subject to tenor limits and investments are subject to concentration limits by rating. Derivative fair values are inclusive of valuation adjustments that take into account both the counterparty and the Group's risk of default. Standby arrangements and unused credit facilities The Group's committed revolving credit facility operates as a back-stop to the Group's uncommitted commercial paper program. The combined amount drawn under the facility or as commercial paper will not exceed US$5.5 billion. As at 30 June 2021, US$ nil commercial paper was drawn (2020: US$ nil). During the year, the Group completed a one-year extension to the facility which is now due to mature on 10 October 2025. A commitment fee is payable on the undrawn balance and an interest rate comprising an interbank rate plus a margin applies to any drawn balance. The agreed margins are typical for a credit facility extended to a company with the Group's credit rating. Maturity profile of financial liabilities The maturity profile of the Group's financial liabilities based on the undiscounted contractual amounts, taking into account the derivatives related to debt, is as follows: 2021 debentures Bank loans, and future Expected interest Derivatives related to Other Obligations under lease and Trade other US$M other loans payments debentures derivatives liabilities payables(1) Total Due for payment: In one year or less or on demand 1,722 729 61 149 980 6,851 10,492 In more than one year but not more than two years 2,278 661 267 80 680-3,966 In more than two years but not more than five years 4,062 1,492 256 240 1,397-7,447 In more than five years 7,801 4,136 585 317 1,842-14,681 Total 15,863 7,018 1,169 786 4,899 6,851 36,586 Carrying amount 17,087-586 690 3,896 6,851 29,110 2020 debentures Bank loans, and future Expected interest Derivatives related to Other under Obligations lease and Trade other US$M other loans payments debentures derivatives liabilities payables(1) Total Due for payment: In one year or less or on demand 4,138 813 260 60 927 5,622 11,820 In more than one year but not more than two years 1,665 702 81-630 1 3,079 In more than two years but not more than five years 5,727 1,713 819-1,335-9,594 In more than five years 10,101 4,368 974-1,043-16,486 Total 21,631 7,596 2,134 60 3,935 5,623 40,979 Carrying amount 23,605-1,579 60 3,443 5,623 34,310 (1) Excludes input taxes of US$176 million (2020: US$145 million) included in other payables. Refer to note 9 'Trade and other payables'. 21 Leases Movements in the Group's lease liabilities during the year are as follows: US 2021 $M US 2020 $M At the beginning of the financial year(1) 3,443 715 IFRS 16 transition-2,301 Additions 1,223 436 Remeasurements of index-linked freight contracts (59) 733 Lease payments (879) (761) Foreign exchange movement 115 (43) Amortisation of discounting 109 90 Transfers and other movements (56) (28) At the end of the financial year 3,896 3,443 Comprising: Current liabilities 889 853 Non-current liabilities 3,007 2,590 (1) Lease liability at the beginning of FY2020 relates to existing finance leases under IAS 17/AASB 117 'Leases' (IAS 17) at 1 July 2019. BHP Annual Report 2021 165

21 Leases continued A significant proportion by value of the Group's lease contracts relate to plant facilities, office buildings and vessels. Lease terms for plant facilities and office buildings typically run for over 10 years and vessels for four to 10 years. Other leases include port facilities, various equipment and vehicles. The lease contracts contain a wide range of different terms and conditions including extension and termination options and variable lease payments. The Group's lease obligations are included in the Group's Interest bearing liabilities and, with the exception of vessel lease contracts that are priced with reference to a freight index, form part of the Group's net debt. The maturity profile of lease liabilities based on the undiscounted contractual amounts is as follows: Lease liability US 2021 $M US 2020 $M Due for payment: In one year or less or on demand 980 927 In more than one year but not more than two years 680 630 In more than two years but not more than five years 1,397 1,335 In more than five years(1) 1,842 1,043 Total 4,899 3,935 Carrying amount 3,896 3,443 (1) Include US$878 million (2020: US$302 million) due for payment in more than ten years. At 30 June 2021, commitments for leases not yet commenced based on undiscounted contractual amounts were US$457 million (2020: US$1,458 million); and commitments relating to short-term leases were US$171 million (2020: US$103 million). Movements in the Group's right-of-use assets during the year are as follows: 2021 2020 buildings Land and equipment Plant and Total Land buildings and equipment Plant and Total US$M US$M US$M US$M US$M US$M Net book value At the beginning of the financial year(1) 689 2,358 3,047-492 492 Assets recognised on adoption of IFRS 16 - - 754 1,400 2,154 Additions 25 1,227 1,252 104 332 436 Remeasurements of index-linked freight contracts - (59) (59)-733 733 Depreciation expensed during the period (111) (670) (781) (113) (543) (656) Depreciation classified as exploration - (19) (19)-(34) (34) Impairments (30) (2) (32) (2) (22) (24) Transfers and other movements 65 (123) (58) (54)-(54) At the end of the financial year 638 2,712 3,350 689 2,358 3,047 - Cost 897 4,393 5,290 804 3,349 4,153 - Accumulated depreciation and impairments (259) (1,681) (1,940) (115) (991) (1,106) (1) Right-of-use assets at the beginning of FY2020 relates to assets previously held under finance leases under IAS 17 at 1 July 2019. Right-of-use assets are included within the underlying asset classes in Property, plant and equipment. Refer to note 11 'Property, plant and equipment'. Amounts recorded in the income statement and the cash flow statement for the year were: US 2021 $M US 2020 $M Included within Income statement Depreciation of right-of-use assets 781 656 Profit from operations Short-term, low-value and variable lease costs(1) 895 675 Profit from operations Interest on lease liabilities 109 90 Financial expenses Cash flow statement Principal lease payments 770 671 Cash flows from financing activities Lease interest payments 109 90 Cash flows from operating activities (1) costs Relates (2020: to US US $546 $26 million million) of . Variable variable lease lease costs costs include (2020: US contracts $438 million), for hire US of$ mining 316 million service of short equipment, -term lease drill costs rigs and (2020: transportation US$211 million) services and .US These $33 contracts million of low contain -value variable lease lease payments based on usage and asset performance. Recognition and measurement All leases with the exception of short-term (under 12 months) and low-value leases are recognised on the balance sheet, as a right-of-use asset and a corresponding interest bearing liability. Lease liabilities are initially measured at the present value of the future lease payments from the lease commencement date and are subsequently adjusted to reflect the interest on lease liabilities, lease payments and any remeasurements due to, for example, lease modifications or a change to future lease payments linked to an index or rate. Lease payments are discounted using the interest rate implicit in the lease, where this is readily determinable. Where the implicit interest rate is not readily determinable, the interest payments are discounted at the Group's incremental borrowing rate, adjusted to reflect factors specific to the lease, including where relevant the currency, tenor and location of the lease. In addition to containing a lease, the Group's contractual arrangements may include non-lease components. For example, certain mining services arrangements involve the provision of additional services, including maintenance, drilling activities and the supply of personnel. The Group has elected to separate these non-lease components from the lease components in measuring lease liabilities. 166 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 21 Leases continued Low-value and short-term leases continue to be expensed to the income statement. Variable lease payments not dependent on an index or rate are excluded from lease liabilities, and expensed to the income statement. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost will initially correspond to the lease liability, adjusted for initial direct costs, lease payments made prior to lease commencement, capitalised provisions for closure and rehabilitation and any lease incentives. The lease asset and liability associated with all index-linked freight contracts, including continuous voyage charters (CVCs), are measured at each reporting date based on the prevailing freight index (generally the Baltic C5 index). Lease costs are recognised in the income statement over the lease term in the form of depreciation on the right-of-use asset and finance charges representing the unwind of the discount on the lease liability. Lease costs for the year ended 30 June 2019 represent operating lease expenses previously reported under IAS 17. Where the Group is the operator of an unincorporated joint operation and all investors are parties to a lease, the Group recognises its proportionate share of the lease liability and associated right-of-use asset. In the event the Group is the sole signatory to a lease, and therefore has the sole legal obligation to make lease payments, the lease liability is recognised in full. Where the associated right-of-use asset is sub-leased (under a finance sublease) to a joint operation, for instance where it is dedicated to a single operation and the joint operation has the right to direct the use of the asset, the Group recognises its proportionate share of the right-of-use asset and a net investment in the lease, representing amounts to be recovered from the other parties to the joint operation. If the Group is not party to the lease contract but sub-leases the associated right-of-use asset, it recognises its proportionate share of the right-of-use asset and a lease liability which is payable to the operator. Key judgements and estimates Judgements: Certain contractual arrangements not in the form of a of the weighted average incremental borrowing rate to measure lease lease require the Group to apply significant judgement in evaluating liabilities. The incremental borrowing rate reflects the rates of interest whether the Group controls the right to direct the use of assets and a lessee would have to pay to borrow over a similar term, with similar therefore whether the contract contains a lease. Management considers security, the funds necessary to obtain an asset of similar value to all facts and circumstances in determining whether the Group or the right-of-use asset in a similar economic environment. Under the the supplier has the rights to direct how, and for what purpose, the Group's portfolio approach to debt management, the Group does not underlying assets are used in certain mining contracts and other specifically borrow for asset purchases. Therefore, the incremental arrangements, including outsourcing arrangements, shipping borrowing rate is estimated with reference to the Group's corporate arrangements and power purchase agreements. Judgement is used borrowing portfolio, adjusted to reflect the terms and conditions of to assess which decision-making rights mostly affect the benefits of the lease (including the impact of currency, credit rating of subsidiary use of the assets for each arrangement. entering into the lease and the term of the lease), at the inception of the lease arrangement or the time of lease modification. Where a contract includes the provision of non-lease services, judgement is required to identify the lease and non-lease components. The Group estimates stand-alone prices, where such prices are not readily observable, in order to allocate the contractual payments Estimates: Where the Group cannot readily determine the interest between lease and non-lease components. rate implicit in the lease, estimation is involved in the determination 22 Net finance costs US$ 2021 M US$ 2020 M US$ 2019 M Financial expenses Interest expense using the effective interest rate method: Interest on bank loans, overdrafts and all other borrowings 610 1,099 1,296 Interest capitalised at 2.83% (2020: 4.14%; 2019: 4.96%)(1) (248) (308) (248) Interest on lease liabilities 109 90 47 Discounting on provisions and other liabilities 467 452 470 Other gains and losses: Fair value change on hedged loans (779) 721 729 Fair value change on hedging derivatives 704 (788) (809) Loss on bond repurchase(2) 395 -Exchange variations on net debt 99 (18) 6 Other 21 14 19 Total financial expenses 1,378 1,262 1,510 Financial income Interest income (73) (351) (446) Net finance costs 1,305 911 1,064 (1) Interest at a capitalisation has been capitalised rate representing at the rate the average of interest interest applicable rate on to such the specific borrowings. borrowings Tax relief financing for capitalised the assets interest under is construction approximately or, US$ where 74 million financed (2020: through US$ 92 general million; borrowings, 2019: US$74 million). (2) of Relates US$3,402 to the million additional disclosed cost on in settlement repayment of of two interest multi-currency bearing liabilities hybrid in debt the Consolidated repurchase programs Cash Flow and Statement. the unwind of the associated hedges, included in a total cash payment Recognition and measurement Interest income is accrued using the effective interest rate method. Finance costs are expensed as incurred, except where they relate to the financing of construction or development of qualifying assets. BHP Annual Report 2021 167

23 Financial risk management 23.1 Financial risks Financial and capital risk management strategy The financial risks arising from the Group's operations comprise market, liquidity and credit risk. These risks arise in the normal course of business and the Group manages its exposure to them in accordance with the Group's portfolio risk management strategy. The objective of the strategy is to support the delivery of the Group's financial targets, while protecting its future financial security and flexibility by taking advantage of the natural diversification provided by the scale, diversity and flexibility of the Group's operations and activities. As part of the risk management strategy, the Group monitors target gearing levels and credit rating metrics under a range of different stress test scenarios incorporating operational and macroeconomic factors (refer to 1.16 'Robust risk assessment and viability statement'). Market risk management The Group's activities expose it to market risks associated with movements in interest rates, foreign currencies and commodity prices. Under the strategy outlined above, the Group seeks to achieve financing costs, currency impacts, input costs and commodity prices on a floating or index basis. This strategy gives rise to a risk of variability in earnings, which is measured under the Cash Flow at Risk (CFaR) framework. In executing the strategy, financial instruments are potentially employed in three distinct but related activities. The following table summarises these activities and the key risk management processes: Activity Key risk management processes 1 Risk mitigation On an exception basis, hedging for the purposes of mitigating risk related to specific and significant Execution of transactions within expenditure on investments or capital projects, will be executed if necessary to support the Group's approved mandates. strategic objectives. 2 items Economic and debt hedging instruments of commodity sales, operating costs, short-term cash deposits, other monetary Where Group commodity production is sold to customers on pricing terms that deviate from the relevant Measuring and reporting the exposure index target and where a relevant derivatives market exists, financial instruments may be executed as an in customer commodity contracts and economic hedge to align the revenue price exposure with the index target and US dollars. issued debt instruments. Where debt is issued in a currency other than the US dollar and/or at a fixed interest rate, fair value and Executing hedging derivatives to align the cash flow hedges may be executed to align the debt exposure with the Group's functional currency of total group exposure to the index target. US dollars and/or to swap to a floating interest rate. Where short-term cash deposits and other monetary items are denominated in a currency other than Execution of transactions within US dollars, derivative financial instruments may be executed to align the foreign exchange exposure approved mandates. to the Group's functional currency of US dollars. 3 Strategic financial transactions Opportunistic transactions may be executed with financial instruments to capture value from perceived Execution of transactions within market over/under valuations. approved mandates. Primary responsibility for the identification and control of financial risks, including authorising and monitoring the use of financial instruments for the above activities and stipulating policy thereon, rests with the Financial Risk Management Committee under authority delegated by the Chief Executive Officer. Interest rate risk The Group is exposed to interest rate risk on its outstanding borrowings and short-term cash deposits from the possibility that changes in interest rates will affect future cash flows or the fair value of fixed interest rate financial instruments. Interest rate risk is managed as part of the portfolio risk management strategy. The majority of the Group's debt is issued at fixed interest rates. The Group has entered into interest rate swaps and cross currency interest rate swaps to convert most of its fixed interest rate exposure to floating US dollar interest rate exposure. As at 30 June 2021, 82 per cent of the Group's borrowings were exposed to floating interest rates inclusive of the effect of swaps (2020: 87 per cent). The fair value of interest rate swaps and cross currency interest rate swaps in hedge relationships used to hedge both interest rate and foreign currency risks are shown in the valuation hierarchy of this note. Based on the net debt position as at 30 June 2021, taking into account interest rate swaps and cross currency interest rate swaps, it is estimated that a one percentage point increase in the US LIBOR interest rate will increase the Group's equity and profit after taxation by US$7 million (2020: decrease of US$47 million). This assumes the change in interest rates is effective from the beginning of the financial year and the fixed/floating mix and balances are constant over the year. Interest Rate Benchmark Reform The London Interbank Offered Rate (LIBOR) and other benchmark interest rates are expected to be replaced by alternative risk-free rates (ARR) by the end of CY2021 as part of inter-bank offer rate (IBOR) reform. The Group has established a project to assess the implications of IBOR reform across the Group, and to manage and execute the transition from current discontinuing IBORs rates to ARR, including updating policies, systems and processes. A detailed due diligence review has identified a range of contracts that reference IBORs, including derivative instruments, money market deposits, lease agreements, supply contracts and joint venture agreements. The Group is in the process of developing action plans for each of these arrangements to ensure a smooth transition to ARR. The Group has early adopted amendments to IFRS 9 'Financial Instruments', IFRS 7 'Financial Instruments: Disclosures' and IFRS 16 'Leases' in relation to IBOR reform (refer to note 39 'New and amended accounting standards and interpretations and changes to accounting policies'). In particular, the IBOR reform impacts the Group's interest rate swaps, which reference US LIBOR, and the associated hedge accounting. Refer to section 23.4 'Derivatives and hedge accounting' for further information. 168 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 23 Financial risk management continued Currency risk The US dollar is the predominant functional currency within the Group and as a result, currency exposures arise from transactions and balances in currencies other than the US dollar. The Group's potential currency exposures comprise: - translational exposure in respect of non-functional currency monetary items - transactional exposure in respect of non-functional currency expenditure and revenues The Group's foreign currency risk is managed as part of the portfolio risk management strategy. Translational exposure in respect of non-functional currency monetary items Monetary items, including financial assets and liabilities, denominated in currencies other than the functional currency of an operation are periodically restated to US dollar equivalents and the associated gain or loss is taken to the income statement. The exception is foreign exchange gains or losses on foreign currency denominated provisions for closure and rehabilitation at operating sites, which are capitalised in property, plant and equipment. The Group has entered into cross currency interest rate swaps and foreign exchange forwards to convert its significant foreign currency exposures in respect of monetary items into US dollars. Fluctuations in foreign exchange rates are therefore not expected to have a significant impact on equity and profit after tax. The following table shows the foreign currency risk arising from financial assets and liabilities, which are denominated in currencies other than the US dollar: Net financial (liabilities)/assets - by currency of denomination US 2021 $M US 2020 $M Australian dollars (4,421) (3,788) Chilean peso (649) (369) British pound sterling 535 587 Euro 366 619 Other 128 (17) Total (4,041) (2,968) The principal non-functional currencies to which the Group is exposed are the Australian dollar, the Chilean peso, the Pound sterling and the Euro. Based on the Group's net financial assets and liabilities as at 30 June 2021, a weakening of the US dollar against these currencies (one cent strengthening in Australian dollar, 10 pesos strengthening in Chilean peso, one penny strengthening in Pound sterling and one cent strengthening in Euro), with all other variables held constant, would decrease the Group's equity and profit after taxation by US$21 million (2020: decrease of US$12 million). Transactional exposure in respect of non-functional currency expenditure and revenues Certain operating and capital expenditure is incurred in currencies other than an operation's functional currency. To a lesser extent, certain sales revenue is earned in currencies other than the functional currency of operations and certain exchange control restrictions may require that funds be maintained in currencies other than the functional currency of the operation. These currency risks are managed as part of the portfolio risk management strategy. The Group may enter into forward exchange contracts when required under this strategy. Commodity price risk The risk associated with commodity prices is managed as part of the portfolio risk management strategy. Substantially all of the Group's commodity production is sold on market-based index pricing terms, with derivatives used from time to time to achieve a specific outcome. Financial instruments with commodity price risk comprise forward commodity and other derivative contracts with a net assets fair value of US$138 million (2020: US$159 million). Significant commodity price risk instruments within other derivative balances include derivatives embedded in physical commodity purchase and sales contracts of gas in Trinidad and Tobago with a net assets fair value of US$121 million (2020: US$180 million). These are included within other derivatives and fair value measurement related to these resulted in an expense of US$59 million (2020: expense of US$22 million). The potential effect on these derivatives' fair values of using reasonably possible alternative assumptions in the valuation models, based on a change in the most significant input, such as commodity prices, by 10 per cent with all other factors held constant (including the pricing on underlying physical exposures), would increase or decrease profit after taxation by US$26 million (2020: US$8 million). Provisionally priced commodity sales and purchases contracts Provisionally priced sales or purchases volumes are those for which price finalisation, referenced to the relevant index, is outstanding at the reporting date. Provisional pricing mechanisms within these sales and purchases arrangements have the character of a commodity derivative. Trade receivables or payables under these contracts are carried at fair value through profit and loss using a method categorised as Level 2 based on forecast selling prices in the quotation period. The Group's exposure at 30 June 2021 to the impact of movements in commodity prices upon provisionally invoiced sales and purchases volumes was predominately around copper. The Group had 254 thousand tonnes of copper exposure as at 30 June 2021 (2020: 301 thousand tonnes) that was provisionally priced. The final price of these sales and purchases volumes will be determined during the first half of FY2022. A 10 per cent change in the price of copper realised on the provisionally priced sales, with all other factors held constant, would increase or decrease profit after taxation by US$166 million (2020: US$134 million). The relationship between commodity prices and foreign currencies is complex and movements in foreign exchange rates can impact commodity prices. Liquidity risk Refer to note 20 'Net debt' for details on the Group's liquidity risk. Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily from customer receivables) and from its financing activities, including deposits with banks and financial institutions, other short-term investments, interest rate and currency derivative contracts and other financial instruments. Refer to note 8 'Trade and other receivables' and note 20 'Net debt' for details on the Group credit risk. BHP Annual Report 2021 169

23 Financial risk management continued 23.2 Recognition and measurement All financial assets and liabilities, other than derivatives and trade receivables, are initially recognised at the fair value of consideration paid or received, net of transaction costs as appropriate. Financial assets are initially recognised on their trade date. Financial assets are subsequently carried at fair value or amortised cost based on: - the Group's purpose, or business model, for holding the financial asset - whether the financial asset's contractual terms give rise to cash flows that are solely payments of principal and interest The resulting Financial Statements classifications of financial assets can be summarised as follows: Contractual cash flows Business model Category Solely principal and interest Hold in order to collect contractual cash flows Amortised cost Solely principal and interest Hold in order to collect contractual cash flows and sell Fair value through other comprehensive income Solely principal and interest Hold in order to sell Fair value through profit or loss Other Any of those mentioned above Fair value through profit or loss Solely principal and interest refers to the Group receiving returns only for the time value of money and the credit risk of the counterparty for financial assets held. The main exceptions for the Group are provisionally priced receivables and derivatives which are measured at fair value through the income statement under IFRS 9. The Group has the intention of collecting payment directly from its customers in most cases, however the Group also participates in receivables financing programs in respect of selected customers. Receivables in these portfolios which are classified as 'hold in order to sell', are provisionally priced receivables and are therefore held at fair value through profit or loss prior to sale to the financial institution. With the exception of derivative contracts and provisionally priced trade payables, the Group's financial liabilities are classified as subsequently measured at amortised cost. The Group may in addition elect to designate certain financial assets or liabilities at fair value through profit or loss or to apply hedge accounting where they are not mandatorily held at fair value through profit or loss. Derivatives are initially recognised at fair value on the date the contract is entered into and are subsequently remeasured at their fair value. Fair value measurement The carrying amount of financial assets and liabilities measured at fair value is principally calculated based on inputs other than quoted prices that are observable for these financial assets or liabilities, either directly (i.e. as unquoted prices) or indirectly (i.e. derived from prices). Where no price information is available from a quoted market source, alternative market mechanisms or recent comparable transactions, fair value is estimated based on the Group's views on relevant future prices, net of valuation allowances to accommodate liquidity, modelling and other risks implicit in such estimates. The inputs used in fair value calculations are determined by the relevant segment or function. The functions support the assets and operate under a defined set of accountabilities authorised by the Executive Leadership Team. Movements in the fair value of financial assets and liabilities may be recognised through the income statement or in other comprehensive income. For financial assets and liabilities carried at fair value, the Group uses the following to categorise the method used based on the lowest level input that is significant to the fair value measurement as a whole: IFRS 13 Fair value hierarchy Level 1 Level 2 Level 3 Valuation method Based on quoted prices (unadjusted) Based on inputs other than quoted Based on inputs not observable in the in active markets for identical financial prices included within Level 1 that market using appropriate valuation assets and liabilities. are observable for the financial models, including discounted asset or liability, either directly cash flow modelling. (i.e. as unquoted prices) or indirectly (i.e. derived from prices). 170 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 23 Financial risk management continued 23.3 Financial assets and liabilities The financial assets and liabilities are presented by class in the table below at their carrying amounts. Fair value hierarchy IFRS 13 2021 US 2020 $M Level(1) IFRS 9 Classification US$M Restated Current cross currency and interest rate swaps(2) 2 Fair value through profit or loss 20 3 Current other derivative contracts(3) 2,3 Fair value through profit or loss 207 45 Current other investments(4) 1,2 Fair value through profit or loss 3 36 Non-current cross currency and interest rate swaps(2) 2 Fair value through profit or loss 1,123 2,009 Non-current other derivative contracts(3) 2,3 Fair value through profit or loss 152 159 Fair value through other Non-current investment in shares 3 comprehensive income 31 32 Non-current other investments(4)(5) 1,2,3 Fair value through profit or loss 304 322 Total other financial assets 1,840 2,606 Cash and cash equivalents Amortised cost 15,246 13,426 Trade and other receivables(6) Amortised cost 2,363 1,633 Provisionally priced trade receivables 2 Fair value through profit or loss 3,547 1,480 Loans to equity accounted investments Amortised cost-40 Total financial assets 22,996 19,185 Non-financial assets 85,931 86,548 Total assets 108,927 105,733 Current cross currency and interest rate swaps(2) 2 Fair value through profit or loss-165 Current other derivative contracts(3) 2,3 Fair value through profit or loss 52 60 Current other financial liabilities(7) Amortised cost 78 -Non-current cross currency and interest rate swaps(2) 2 Fair value through profit or loss 586 1,414 Non-current other financial liabilities(7) Amortised cost 560 -Total other financial liabilities 1,276 1,639 Trade and other payables(8) Amortised cost 6,277 5,354 Provisionally priced trade payables 2 Fair value through profit or loss 574 269 Bank loans(9) Amortised cost 2,260 2,492 Notes and debentures(9) Amortised cost 14,769 21,045 Lease liabilities 3,896 3,443 Other(9) Amortised cost 58 68 Total financial liabilities 29,110 34,310 Non-financial liabilities 24,212 19,248 Total liabilities 53,322 53,558 (1) All specified of the Group's items in financial the following assets footnotes and financial . liabilities recognised at fair value were valued using market observable inputs categorised as Level 2 with the exception of the (2) rates Cross . A currency discounted and cash interest flow rate approach swaps are is used valued to derive using market the fair data value including of cross currency interest rate and curves interest (which rate swaps include at the the base reporting LIBOR date rate . and swap rates) and foreign exchange (3) Includes and sales other contracts derivative of gas contracts in Trinidad of and US$ Tobago 121 million with (2020: net assets US$179 fair million) value of categorised US$121 million as Level (2020: 3. Significant US$180 million) items . are derivatives embedded in physical commodity purchase (4) Includes other investment investments (US Treasury held by BHP Notes) Billiton of US Foundation $72 million which categorised are restricted as Level and 1 (2020: not available US$87 million) for general . use by the Group of US$260 million (2020: US$296 million) of which (5) Includes other investments of US$46 million (2020: US$47 million) categorised as Level 3. (6) Excludes input taxes of US$486 million (2020: US$478 million) included in other receivables. (7) Includes the discounted settlement liability in relation to the cancellation of power contracts at the Group's Escondida operations. (8) Excludes input taxes of US$176 million (2020: US$145 million) included in other payables. (9) All interest bearing liabilities, excluding lease liabilities, are unsecured. The carrying amounts in the table above generally approximate to fair value. In the case of US$3,018 million (2020: US$3,019 million) of fixed rate debt not swapped to floating rate, the fair value at 30 June 2021 was US$4,052 million (2020: US$4,114 million). The fair value is determined using a method that can be categorised as Level 2 and uses inputs based on benchmark interest rates, alternative market mechanisms or recent comparable transactions. For financial instruments that are carried at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period. There were no transfers between categories during the period. Offsetting financial assets and liabilities The Group enters into money market deposits and derivative transactions under International Swaps and Derivatives Association master netting agreements that do not meet the criteria for offsetting, but allow for the related amounts to be set-off in certain circumstances. The amounts set out as cross currency and interest rate swaps in the table above represent the derivative financial assets and liabilities of the Group that may be subject to the above arrangements and are presented on a gross basis. 23.4 Derivatives and hedge accounting The Group uses derivatives to hedge its exposure to certain market risks and may elect to apply hedge accounting. Hedge accounting Derivatives are included within financial assets or liabilities at fair value through profit or loss unless they are designated as effective hedging instruments. Financial instruments in this category are classified as current if they are expected to be settled within 12 months otherwise they are classified as non-current. BHP Annual Report 2021 171

23 Financial risk management continued Where hedge accounting is applied, at the start of the transaction, the Group documents the type of hedge, the relationship between the hedging instrument and hedged items and its risk management objective and strategy for undertaking various hedge transactions. The documentation also demonstrates that the hedge is expected to be effective. The Group applies the following types of hedge accounting to its derivatives hedging the interest rate and currency risks in its notes and debentures: - Fair value hedges - the fair value gain or loss on interest rate and cross currency swaps relating to interest rate risk, together with the change in the fair value of the hedged fixed rate borrowings attributable to interest rate risk are recognised immediately in the income statement. If the hedge no longer meets the criteria for hedge accounting, the fair value adjustment on the note or debenture is amortised to the income statement over the period to maturity using a recalculated effective interest rate. - Cash flow hedges - changes in the fair value of cross currency interest rate swaps which hedge foreign currency cash flows on the notes and debentures are recognised directly in other comprehensive income and accumulated in the cash flow hedging reserve. To the extent a hedge is ineffective, changes in fair value are recognised immediately in the income statement. When a hedging instrument expires, or is sold, terminated or exercised, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is amortised to the income statement over the period to the hedged item's maturity. When hedged, the Group hedges the full notional value of notes or debentures. However, certain components of the fair value of derivatives are not permitted under IFRS 9 to be included in the hedge accounting above. Certain costs of hedging are permitted to be recognised in other comprehensive income. Any change in the fair value of a derivative that does not qualify for hedge accounting, or is ineffective in hedging the designated risk due to contractual differences between the hedged item and hedging instrument, is recognised immediately in the income statement. The table below shows the carrying amounts of the Group's notes and debentures by currency and the derivatives which hedge them: - The carrying amount of the notes and debentures includes foreign exchange remeasurement to period-end rates and fair value adjustments when included in a fair value hedge. - The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at period-end rates, fair value movements due to interest rate risk, foreign currency cash flows designated into cash flow hedges, costs of hedging recognised in other comprehensive income, ineffectiveness recognised in the income statement and accruals or prepayments. - The hedged value of notes and debentures includes their carrying amounts adjusted for the offsetting derivative fair value movements due to foreign currency and interest rate risk remeasurement. Fair value of derivatives amount Carrying of exchange Foreign Recognised in cash flow Recognised in cost of Recognised in Hedged value 2021 notes and notional at Interest hedging hedging the income Accrued of notes and US$M debentures spot rates rate risk reserve reserve statement(1) cash flows Total debentures(2) A B C D E F G B to G A + B + C USD 6,270-(318) - 11 77 (230) 5,952 GBP 3,387 435 (544) (81) 25 (34) 53 (146) 3,278 EUR 4,486 73 (418) (33) 27 7 49 (295) 4,141 CAD 626 142 (21) (28) 25 (2) (2) 114 747 Total 14,769 650 (1,301) (142) 77 (18) 177 (557) 14,118 Fair value of derivatives amount Carrying of exchange Foreign Recognised in cash flow Recognised in cost of Recognised in Hedged value 2020 notes and notional at Interest hedging hedging the income Accrued of notes and US$M debentures spot rates rate risk reserve reserve statement(1) cash flows Total debentures(2) A B C D E F G B to G A + B + C USD 9,926-(742) - 29 74 (639) 9,184 GBP 3,245 764 (730) (16) 13 (18) 47 60 3,279 EUR 7,294 500 (576) (55) 21 65 32 (13) 7,218 CAD 580 199 (32)-(2) (4) (2) 159 747 Total 21,045 1,463 (2,080) (71) 32 72 151 (433) 20,428 (1) Predominantly related to ineffectiveness. (2) Includes US$3,018 million (2020: US$3,019 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship. The weighted average interest rate payable is USD LIBOR + 2.18 per cent (2020: USD LIBOR + 2.95 per cent). Refer to note 22 'Net finance costs' for details of net finance costs for the year. Interest Rate Benchmark Reform IBOR reform impacts the Group's interest rate swaps, which reference 3-month US LIBOR, and the associated hedge accounting. At 30 June 2021, the notional value of hedging instruments that reference 3-month US LIBOR is US$16.8 billion. It is anticipated that the Secured Overnight Financing Rate (SOFR) benchmark rate will be widely adopted by market participants and effectively replace US LIBOR in new contracts during FY2022. However, a number of US LIBOR settings, including 3-month US LIBOR, will continue to be published until 30 June 2023. Accordingly, absent of any agreement with counterparties to transition to an alternative risk-free rate before this date, the Group's existing interest rate swaps with maturity dates beyond 30 June 2023 will only transition to ARR once US LIBOR publication ceases. As at 30 June 2021, the Group has not transitioned any of its existing interest rate swaps to alternative risk-free rates. 172 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 23 Financial risk management continued value to Notional mature Notional Notional value expires before FY2023 LIBOR Hedging instrument currency US$M US$M Interest rate swaps USD 11,950 1,979 Cross-currency interest rate swaps EUR 3,187 404 GBP 1,673 923 Total 16,810 3,306 In addition, the Group has other arrangements which reference 3-month US LIBOR benchmarks and extend beyond 2021. These include USD bank loans of US$2.3 billion and an undrawn revolving credit facility (refer to note 20 'Net debt'). The Group has early adopted amendments to IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures' in relation to IBOR Reform (refer to note 39 'New and amended accounting standards and interpretations and changes to accounting policies'). These amendments provide reliefs from applying specific hedge accounting requirements to hedging arrangements directly impacted by these reforms. In particular, where changes to the Group's instruments arise solely as a result of IBOR reform and do not change the economic substance of the Group's arrangements, the Group is able to maintain its existing hedge relationships and accounting. The Group has applied these reliefs resulting in no impact on the Group's hedge accounting. Upon transition to alternative risk-free rates, the Group will seek to apply further reliefs in IFRS 9 and continue to apply hedge accounting to its hedging arrangements. Movements in reserves relating to hedge accounting The following table shows a reconciliation of the components of equity and an analysis of the movements in reserves for all hedges. For a description of these reserves, refer to note 17 'Other equity'. Cash flow hedging reserve Cost of hedging reserve 2021 US$M Gross Tax Net Gross Tax Net Total At the beginning of the financial year 71 (21) 50 (32) 9 (23) 27 Add: Change in fair value of hedging instrument --604 recognised in OCI 863 (259) 604 Less: Reclassified from reserves to financial (554) (45) 14 expenses - recognised through OCI (792) 238 (31) (585) At the end of the financial year 142 (42) 100 (77) 23 (54) 46 Cash flow hedging reserve Cost of hedging reserve 2020 US$M Gross Tax Net Gross Tax Net Total At the beginning of the financial year 163 (49) 114 (106) 32 (74) 40 Add: Change in fair value of hedging instrument recognised in OCI (315) 94 (221) --(221) Less: Reclassified from reserves to financial expenses - recognised through OCI 223 (66) 157 74 (23) 51 208 At the end of the financial year 71 (21) 50 (32) 9 (23) 27 Changes in interest bearing liabilities and related derivatives resulting from financing activities The movement in the year in the Group's interest bearing liabilities and related derivatives are as follows: Derivatives (assets)/ Interest bearing liabilities liabilities overdraft Bank and currency Cross US 2021 $M loans Bank debentures Notes and liabilities Lease borrowings short-term Other and rate interest swaps Total At the beginning of the financial year 2,492 21,045 3,443-68 (433) Proceeds from interest bearing liabilities 504 --64-568 Settlements of debt related instruments - --167 167 Repayment of interest bearing liabilities (737) (6,888) (770) --(8,395) Change from Net financing cash flows (233) (6,888) (770)-64 167 (7,660) Other movements: Loss on bond repurchase-579 --(184) Interest rate impacts-(764) --704 Foreign exchange impacts (1) 798 115-(14) (796) Lease additions - 1,223 - -Remeasurement of index-linked freight contracts - (59) - -Other interest bearing liabilities/derivative related changes 2 (1) (56)-(60) (15) At the end of the financial year 2,260 14,769 3,896-58 (557) BHP Annual Report 2021 173

23 Financial risk management continued Derivatives (assets)/ Interest bearing liabilities liabilities overdraft Bank and currency Cross US 2020 $M Bank loans debentures Notes and liabilities Lease borrowings short-term Other and rate interest swaps Total At the beginning of the financial year 2,498 21,529 715 20 66 204 Proceeds from interest bearing liabilities 514 - --514 Settlements of debt related instruments - --(157) (157) Repayment of interest bearing liabilities (522) (859) (671)-5-(2,047) Change from Net financing cash flows (8) (859) (671)-5 (157) (1,690) Other movements: Interest rate impacts-720 --(788) Foreign exchange impacts-(354) (43)-(4) 316 Leases recognised on IFRS 16 transition - 2,301 - -Lease additions - 436 - -Remeasurement of index-linked freight contracts - 733 - -Other interest bearing liabilities/derivative related changes 2 9 (28) (20) 1 (8) At the end of the financial year 2,492 21,045 3,443-68 (433) Employee matters 24 Key management personnel Key management personnel compensation comprises: 2021 US$ 2020 US$ 2019 US$ Short-term employee benefits 14,081,625 12,564,637 11,557,506 Post-employment benefits 744,951 1,172,727 1,490,716 Share-based payments 11,601,866 13,514,588 15,821,972 Total 26,428,442 27,251,952 28,870,194 Key Management Personnel (KMP) includes the roles which have the authority and responsibility for planning, directing and controlling the activities of BHP. These are Non-executive Directors, the CEO, the Chief Financial Officer, the President Minerals Australia, the President Minerals Americas and the President Petroleum. Transactions and outstanding loans/amounts with key management personnel There were no purchases by key management personnel from the Group during FY2021 (2020: US$ nil; 2019: US$ nil). There were no amounts payable by key management personnel at 30 June 2021 (2020: US$ nil; 2019: US$ nil). There were no loans receivable from or payable to key management personnel at 30 June 2021 (2020: US$ nil; 2019: US$ nil). Transactions with personally related entities A number of Directors of the Group hold or have held positions in other companies (personally related entities) where it is considered they control or significantly influence the financial or operating policies of those entities. There were no reportable transactions with those entities and no amounts were owed by the Group to personally related entities at 30 June 2021 (2020: US$ nil; 2019: US$ nil). For more information on remuneration and transactions with key management personnel, refer to section 2.2. 25 Employee share ownership plans Awards, in the form of the right to receive ordinary shares in either BHP Group Limited or BHP Group Plc, have been granted under the following employee share ownership plans: Cash and Deferred Plan (CDP), Short-Term Incentive Plan (STIP), Long-Term Incentive Plan (LTIP), Management Award Plan (MAP), Transitional and Commencement KMP awards and the all-employee share plan, Shareplus. Some awards are eligible to receive a cash payment, or the equivalent value in shares, equal to the dividend amount that would have been earned on the underlying shares awarded to those participants (the Dividend Equivalent Payment, or DEP). The DEP is provided to the participants once the underlying shares are allocated or transferred to them. Awards under the plans do not confer any rights to participate in a share issue; however, there is discretion under each of the plans to adjust the awards in response to a variation in the share capital of BHP Group Limited or BHP Group Plc. 174 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 25 Employee share ownership plans continued The table below provides a description of each of the plans. Plan CDP and STIP LTIP and MAP Transitional Commencement and KMP Shareplus awards Type Short-term incentive Long-term incentive Long-term incentive All-employee share purchase plan Overview The CDP was implemented in FY2020 The LTIP is a plan for Executive KMP and Awards may be granted Employees may as a replacement for the STIP, both members of the Executive Leadership Team to new Executive KMP contribute up to of which are generally plans for who are not Executive KMP, and awards are recruited into or within US$5,000 to acquire Executive KMP and members of granted annually. the Group to bridge shares in any plan the Executive Leadership Team the time-based gap year. On the third who are not Executive KMP. The MAP is a plan for BHP senior between the vesting of anniversary of the Under the CDP, two thirds of the management who are not KMP. The number awards either granted start of a plan year, value of a participant's short-term of share rights awarded is determined by in their non-KMP roles the Group will match incentive amount is awarded a participant's role and grade. or to replace awards the number of as rights to receive BHP Group foregone from a acquired shares. Limited or BHP Group Plc shares previous company. at the end of the vesting period (and the remaining one third is delivered in cash). Two awards of deferred shares are granted, each of the equivalent value to the cash award, vesting in two and five years respectively. Under STIP, half of the value of a participant's short-term incentive amount is awarded as rights to receive BHP Group Limited or BHP Group Plc shares at the end of the two-year vesting period. Vesting conditions CDP: Service conditions only for LTIP: Service and performance conditions. Service and Service the two-year award. Vesting of (1) performance conditions. conditions only. BHP's Total Shareholder Return (TSR) the five-year award is subject to performance relative to the Peer Group The Remuneration service conditions and also to TSR over a five-year performance period Committee has absolute holistic review of performance determines the vesting of 67 per cent of discretion to determine at the end of the five-year vesting the awards, while performance relative to if the performance period, including a five-year view the Index TSR (being the index value where condition has been on HSEC performance, profitability, the comparator group is a market index) met and whether any, cash flow, balance sheet health, determines the vesting of 33 per cent of all or part of the award returns to shareholders, corporate the awards. For the awards to vest in full, will vest (or otherwise governance and conduct. BHP's TSR must exceed the Peer Group lapse), having regard to STIP: Service conditions only. TSR and Index TSR (if applicable) by a personal performance specified percentage per year, determined and the underlying for each grant by the Remuneration financial performance Committee. From the establishment of the of the Group during the LTIP in 2004 until the awards granted in performance period. December 2016, this percentage was set To the extent the at 5.5 per cent per year. performance condition For awards granted from December 2017 is not achieved, onwards, 25 per cent of the award will vest awards will lapse. where BHP's TSR is equal to the median There is no retesting TSR of the relevant comparator group(s), of the performance as measured over the performance period. condition. Vested awards Where TSR is below the median, awards may be subject to a will not vest. Vesting occurs on a sliding holding lock. scale when BHP's TSR measured over the performance period is between the median TSR of the relevant comparator group(s) up to a nominated level of TSR outperformance over the relevant comparator group(s), as determined by the Committee, above which 100 per cent of the award will vest. MAP: Service conditions only. Vesting period CDP - 2 and 5 years LTIP - 5 years 2 years 3 years STIP - 2 years MAP - 1 to 5 years Dividend Equivalent CDP - Yes LTIP - Yes Yes No Payment STIP - Yes MAP - Varies Exercise period None None None None (1) BHP's TSR is the weighted average of the TSRs of BHP Group Limited and BHP Group Plc. BHP Annual Report 2021 175

25 Employee share ownership plans continued Employee share awards Number of Number awards of Weighted awards beginning at the Number awards of Number awards of Number of awards Number at the of exercisable vested and at remaining average Weighted average 2021 financial of year the issued the during year vested exercised and awards lapsed financial end of year the the financial end of year the contractual life (years) share exercise price date at BHP Group Limited CDP awards-276,944-60,604 216,340-2.2 -STIP awards 377,140 74,796 251,148 3 200,785-0.5 A$39.06 GSTIP awards(1) 12,041-12,041 - - A$39.06 LTIP awards 4,937,506 654,790 653,170 1,395,906 3,543,220-1.6 A$39.06 MAP awards 11,159,990 3,502,112 4,161,573 547,012 9,953,517 51,247 1.2 A$39.16 Transitional and Commencement KMP awards-77,000 - 77,000-1.2 -Shareplus 4,057,382 2,536,374 1,694,880 359,682 4,539,194-1.3 A$45.49 BHP Group Plc MAP awards 218,403 82,404 70,569 54,189 176,049-1.1 £17.89 Shareplus 229,462 125,493 103,128 19,060 232,767-1.3 £20.57 (1) 30 Short June -term 2021 incentive . awards that were granted to BHP senior management who were not KMP. Awards were last granted in FY2018. All awards had vested or lapsed at Employee share awards pre-tax expense is US$123.525 million (2020: US$128.999 million; 2019: US$138.275 million). Fair value and assumptions in the calculation of fair value for awards issued average Weighted fair value granted of awards during Risk-free Estimated volatility Estimated of 2021 the year US$ interest rate life of awards Share price at grant date share price Dividend yield BHP Group Limited CDP awards 25.28 n/a 2 and 5 years A$35.90 n/a n/a STIP awards 25.28 n/a 2 years A$35.90 n/a n/a LTIP awards(1) 14.68 0.25% 5 years A$35.90/A$33.81/A$38.56 28.0% n/a A$38.36/A$36.91/A$35.90/ MAP awards(2) 22.88 n/a 1-5 years A$45.88 n/a 4.90% Transitional and Commencement KMP awards 28.35 n/a 2 years A$38.56 n/a n/a Shareplus 24.96 0.21% 3 years A$30.19 n/a 5.59% BHP Group Plc MAP awards 18.66 n/a 3 years £17.13 n/a 5.70% Shareplus 15.32 0.12% 3 years £12.11 n/a 6.40% (1) Includes LTIP awards granted on 20 October 2020, 2 November 2020 and 1 December 2020. (2) Includes MAP awards granted on 21 August 2020, 24 September 2020, 20 October 2020 and 7 April 2021. Recognition and measurement The fair value at grant date of equity-settled share awards is charged to the income statement over the period for which the benefits of employee services are expected to be derived. The fair values of awards granted were estimated using a Monte Carlo simulation methodology and Black-Scholes option pricing technique and consider the following factors: - exercise price - expected life of the award - current market price of the underlying shares - expected volatility using an analysis of historic volatility over different rolling periods. For the LTIP, it is calculated for all sector comparators and the published MSCI World index - expected dividends - risk-free interest rate, which is an applicable government bond rate - market-based performance hurdles - non-vesting conditions Where awards are forfeited because non-market-based vesting conditions are not satisfied, the expense previously recognised is proportionately reversed. The tax effect of awards granted is recognised in income tax expense, except to the extent that the total tax deductions are expected to exceed the cumulative remuneration expense. In this situation, the excess of the associated current or deferred tax is recognised in equity and forms part of the employee share awards reserve. The fair value of awards as presented in the tables above represents the fair value at grant date. In respect of employee share awards, the Group utilises the Billiton Employee Share Ownership Trust and the BHP Billiton Limited Employee Equity Trust. The trustees of these trusts are independent companies, resident in Jersey. The trusts use funds provided by the Group to acquire ordinary shares to enable awards to be made or satisfied. The ordinary shares may be acquired by purchase in the market or by subscription at not less than nominal value. 176 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 26 Employee benefits, restructuring and post-retirement employee benefits provisions US$ 2021 M US$ 2020 M Employee benefits(1) 1,624 1,313 Restructuring(2) 54 34 Post-retirement employee benefits(3) 534 547 Total provisions 2,212 1,894 Comprising: Current 1,606 1,283 Non-current 606 611 retirement Post- 2021 Employee employee US$M benefits Restructuring benefits(3) Total At the beginning of the financial year 1,313 34 547 1,894 Charge/(credit) for the year: Underlying 1,402 45 62 1,509 Discounting - 31 31 Net interest expense - (10) (10) Exchange variations 104 1 30 135 Released during the year (82)-(46) (128) Remeasurement gains taken to retained earnings - (58) (58) Utilisation (1,119) (26) (59) (1,204) Transfers and other movements 6-37 43 At the end of the financial year 1,624 54 534 2,212 (1) The expenditure associated with total employee benefits will occur in a pattern consistent with when employees choose to exercise their entitlement to benefits. (2) Total restructuring provisions include provisions for terminations and office closures. (3) Refer to note 27 'Pension and other post-retirement obligations'. Recognition and measurement Provisions are recognised by the Group when: - there is a present legal or constructive obligation as a result of past events - it is more likely than not that a permanent outflow of resources will be required to settle the obligation - the amount can be reliably estimated and measured at the present value of management's best estimate of the cash outflow required to settle the obligation at reporting date Provision Description Employee benefits Liabilities for annual leave and any accumulating sick leave accrued up until the reporting date that are expected to be settled within 12 months are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for long service leave are measured as the present value of estimated future payments for the services provided by employees up to the reporting date and disclosed within employee benefits. Liabilities that are not expected to be settled within 12 months are discounted at the reporting date using market yields of high-quality corporate bonds or government bonds for countries where there is no deep market for corporate bonds. The rates used reflect the terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. In relation to industry-based long service leave funds, the Group's liability, including obligations for funding shortfalls, is determined after deducting the fair value of dedicated assets of such funds. Liabilities for unpaid wages and salaries are recognised in other creditors. Restructuring Restructuring provisions are recognised when: - the Group has a detailed formal plan identifying the business or part of the business concerned, the location and approximate number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline - the restructuring has either commenced or been publicly announced and can no longer be withdrawn Payments falling due greater than 12 months after the reporting date are discounted to present value. BHP Annual Report 2021 177

27 Pension and other post-retirement obligations The Group operates or participates in a number of pension (including superannuation) schemes throughout the world. The funding of the schemes complies with local regulations. The assets of the schemes are generally held separately from those of the Group and are administered by trustees or management boards. Schemes/Obligations Description Defined pension contribution schemes For defined contribution schemes or schemes operated on an industry-wide basis where it is not possible to identify assets attributable to the participation by the Group's employees, the pension charge is calculated on the basis of contributions and pension multi schemes -employer payable. The Group contributed US$334 million during the financial year (2020: US$260 million; 2019: US$274 million) to defined contribution plans and multi-employer defined contribution plans. These contributions are expensed as incurred. pension Defined benefit schemes For defined benefit pension schemes, the cost of providing pensions is charged to the income statement so as to recognise current and past service costs, net interest cost on the net defined benefit obligations/plan assets and the effect of any curtailments or settlements. Remeasurement gains and losses are recognised directly in equity. An asset or liability is consequently recognised in the balance sheet based on the present value of defined benefit obligations less the fair value of plan assets, except that any such asset cannot exceed the present value of expected refunds from and reductions in future contributions to the plan. Defined benefit obligations are estimated by discounting expected future payments using market yields at the reporting date on high-quality corporate bonds in countries that have developed corporate bond markets. However, where developed corporate bond markets do not exist, the discount rates are selected by reference to national government bonds. In both instances, the bonds are selected with terms to maturity and currency that match, as closely as possible, the estimated future cash flows. The Group has closed all defined benefit pension schemes to new entrants. Defined benefit pension schemes remain operating in Australia, the United States, Canada and Europe for existing members. Full actuarial valuations are prepared and updated annually to 30 June by local actuaries for all schemes. The Group operates final salary schemes (that provide final salary benefits only), non-salary related schemes (that provide flat dollar benefits) and mixed benefit schemes (that consist of a final salary defined benefit portion and a defined contribution portion). Defined post-retirement benefit The Group operates a number of post-retirement medical schemes in the United States, Canada and Europe and certain Group companies provide post-retirement medical benefits to qualifying retirees. In some cases, the benefits are provided through medical schemes medical care schemes to which the Group, the employees, the retirees and covered family members contribute. Full actuarial valuations are prepared by local actuaries for all schemes. These schemes are recognised on the same basis as described for defined benefit pension schemes. All of the post-retirement medical schemes in the Group are unfunded. Defined post-employment benefit The Group has a legal obligation to provide post-employment benefits to employees in Chile. The benefit is a function of an employee's final salary and years of service. These obligations are recognised on the same basis as described for defined obligations benefit pension schemes. Full actuarial valuations are prepared by local actuaries. These post-employment obligations are unfunded. Risk The Group's defined benefit schemes/obligations expose the Group to a number of risks, including asset value volatility, interest rate variations, inflation, longevity and medical expense inflation risk. Recognising this, the Group has adopted an approach of moving away from providing defined benefit pensions. The majority of Group-sponsored defined benefit pension schemes have been closed to new entrants for many years. Existing benefit schemes and the terms of employee participation in these schemes are reviewed on a regular basis. Fund assets The Group follows a coordinated strategy for the funding and investment of its defined benefit pension schemes (subject to meeting all local requirements). The Group's aim is for the value of defined benefit pension scheme assets to be maintained at close to the value of the corresponding benefit obligations, allowing for some short-term volatility. Scheme assets are invested in a diversified range of asset classes, predominantly comprising bonds and equities. The Group's aim is to progressively shift defined benefit pension scheme assets towards investments that match the anticipated profile of the benefit obligations, as funding levels improve and benefit obligations mature. Over time, this is expected to result in a further reduction in the total exposure of pension scheme assets to equity markets. For pension schemes that pay lifetime benefits, the Group may consider and support the purchase of annuities to back these benefit obligations if it is commercially sensible to do so. Net liability recognised in the Consolidated Balance Sheet The net liability recognised in the Consolidated Balance Sheet is as follows: pension Defined schemes/ benefit Post-retirement post-employment obligations medical schemes US 2021 $M US 2020 $M US 2021 $M US 2020 $M Present value of funded defined benefit obligation 377 613 -Present value of unfunded defined benefit obligation 358 354 197 214 Fair value of defined benefit scheme assets (398) (634) -Scheme deficit 337 333 197 214 Unrecognised surplus - -Unrecognised past service credits - -Adjustment for employer contributions tax - - Net liability recognised in the Consolidated Balance Sheet 337 333 197 214 The Group has no legal obligation to settle these liabilities with any immediate contributions or additional one-off contributions. The Group intends to continue to contribute to each defined benefit pension and post-retirement medical scheme in accordance with the latest recommendations of each scheme actuary. 178 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 28 Employees Number 2021 Number 2020 Number 2019 Average number of employees(1) Australia 23,828 20,967 18,146 South America 7,390 7,330 6,979 North America 1,299 1,296 1,999 Asia 1,907 1,939 1,743 Europe 54 57 59 Total average number of employees 34,478 31,589 28,926 (1) Average operations employee are not included numbers . Part include -time the employees Executive are Director included and on 100 a full per -time cent equivalent of employees basis of . Employees subsidiary companies of businesses . Employees disposed of of equity during accounted the year are investments included for and the joint period of ownership. Contractors are not included. Group and related party information 29 Discontinued operations On 28 September 2018, BHP completed the sale of 100 per cent of the issued share capital of BHP Billiton Petroleum (Arkansas) Inc. and 100 per cent of the membership interests in BHP Billiton Petroleum (Fayetteville) LLC, which held the Fayetteville assets, for a gross cash consideration of US$0.3 billion. On 31 October 2018, BHP completed the sale of 100 per cent of the issued share capital of Petrohawk Energy Corporation, the BHP subsidiary which held the Eagle Ford (being Black Hawk and Hawkville), Haynesville and Permian assets, for a gross cash consideration of US$10.3 billion (net of customary completion adjustments of US$0.2 billion). While the effective date at which the right to economic profits transferred to the purchasers was 1 July 2018, the Group continued to control the Onshore US assets until the completion dates of their respective transactions. As such the Group continued to recognise its share of revenue, expenses, net finance costs and associated income tax expense related to the operation until the completion date. In addition, the Group provided transitional services to the buyer, which ceased in July 2019. The completion adjustments included a reduction in sale proceeds, based on the operating cash generated and retained by the Group in the period prior to completion, in order to transfer the economic profits from 1 July 2018 to completion date to the buyers. Therefore, the pre-tax profit from operating the assets is largely offset by a pre-tax loss on disposal. Accordingly, the net loss from Discontinued operations predominantly relates to incremental costs arising as a consequence of the divestment, including restructuring costs and provisions for surplus office accommodation, and tax expenses largely triggered by the completion of the transactions. There was no contribution of Discontinued operations for the year ended 30 June 2021 and the year ended 30 June 2020. The contribution of Discontinued operations included within the Group's profit and cash flows for the year ended 30 June 2019 are detailed below: Income statement - Discontinued operations US 2019 $M Profit after taxation from operating activities 175 Net loss on disposal (510) Loss after taxation (335) Attributable to non-controlling interests 7 Attributable to BHP shareholders (342) Basic loss per ordinary share (cents) (6.6) Diluted loss per ordinary share (cents) (6.6) The total comprehensive income attributable to BHP shareholders from Discontinued operations was a loss of US$342 million in FY2019. The conversion of options and share rights would decrease the loss per share for the year ended 30 June 2019 and therefore its impact has been excluded from the diluted earnings per share calculation. Cash flows from Discontinued operations US 2019 $M Net operating cash flows 474 Net investing cash flows(1) (443) Net financing cash flows(2) (13) Net increase in cash and cash equivalents from Discontinued operations 18 Net proceeds received from the sale of Onshore US 10,531 Less Cash and cash equivalents (104) Proceeds from divestment of Onshore US, net of its cash 10,427 Total cash impact 10,445 (1) Includes purchases of property, plant and equipment of US$443 million. (2) Includes net repayment of interest bearing liabilities of US$6 million and dividends paid to non-controlling interests of US$7 million. BHP Annual Report 2021 179

29 Discontinued operations continued Net loss on disposal of Discontinued operations Details of the net loss on disposal for the year ended 30 June 2019 is presented in the table below: US$ 2019 M Net assets 11,111 Less non-controlling interest share of net assets disposed (168) BHP Share of net assets disposed 10,943 Gross consideration 10,555 Less transaction costs (54) Income tax expense (68) Net loss on disposal (510) 30 Subsidiaries Significant subsidiaries of the Group are those with the most significant contribution to the Group's net profit or net assets. The Group's interest in the subsidiaries' results are listed in the table below. For a complete list of the Group's subsidiaries, refer to note 13 'Related undertakings of the Group' in section 3.2. Group's interest Significant subsidiaries incorporation Country of Principal activity 2021 % 2020 % Coal BHP Mitsui Coal Pty Ltd Australia Coal mining 80 80 Hunter Valley Energy Coal Pty Ltd Australia Coal mining 100 100 Copper BHP Olympic Dam Corporation Pty Ltd Australia Copper and uranium mining 100 100 Compañia Minera Cerro Colorado Limitada Chile Copper mining 100 100 Minera Escondida Ltda(1) Chile Copper mining 57.5 57.5 Minera Spence SA Chile Copper mining 100 100 Iron Ore BHP Iron Ore (Jimblebar) Pty Ltd(2) Australia Iron ore mining 85 85 BHP Iron Ore Pty Ltd Australia Service company 100 100 BHP Minerals Pty Ltd Australia Iron ore and coal mining 100 100 BHP (Towage Service) Pty Ltd Australia Towing services 100 100 Marketing BHP Billiton Freight Singapore Pte Limited Singapore Freight services 100 100 BHP Billiton Marketing AG Switzerland Marketing and trading 100 100 BHP Billiton Marketing Asia Pte Ltd Singapore Marketing support and other services 100 100 Group and Unallocated BHP Billiton Finance B.V. The Netherlands Finance 100 100 BHP Billiton Finance Limited Australia Finance 100 100 BHP Billiton Finance (USA) Limited Australia Finance 100 100 BHP Canada Inc. Canada Potash development 100 100 BHP Group Operations Pty Ltd Australia Administrative services 100 100 BHP Nickel West Pty Ltd Australia Nickel mining, smelting, refining and administrative services 100 100 WMC Finance (USA) Limited Australia Finance 100 100 (1) As arrangement the Group has is subject the ability to judgement. to direct the The relevant Group activities establishes at Minera the mine Escondida plan and Ltda, the operating it has control budget over and the has entity. the The ability assessment to appoint of the the key most management relevant activity personnel, in this contractual demonstrating that the Group has the existing rights to direct the relevant activities of Minera Escondida Ltda. (2) Ltd The and Group Mitsui has & an Co. effective Iron Ore interest Exploration of 92.5 & per Mining cent Pty in BHP Ltd, the Iron Group's Ore (Jimblebar) interest in Pty the Ltd; Jimblebar however, mining by virtue operation of the shareholder is 85 per cent, agreement which is consistent with ITOCHU with Iron the Ore other Australia respective Pty contractual arrangements at Western Australia Iron Ore. 31 Investments accounted for using the equity method Significant interests in equity accounted investments of the Group are those with the most significant contribution to the Group's net profit or net assets. The Group's ownership interest in equity accounted investments results are listed in the table below. For a complete list of the Group's associates and joint ventures, refer to note 13 'Related undertakings of the Group' in section 3.2. Ownership interest and Significant joint ventures associates Country principal of place incorporation/ of business joint Associate venture or Principal activity Reporting date 2021 % 2020 % Cerrejón Anguilla/Colombia/Ireland Associate Coal mining in Colombia 31 December 33.33 33.33 Compañía Minera Antamina S.A. (Antamina) Peru Associate Copper and zinc mining 31 December 33.75 33.75 Samarco Mineração S.A. (Samarco) Brazil Joint venture Iron ore mining 31 December 50.00 50.00 Voting in relation to relevant activities in Antamina and Cerrejón, determined to be the approval of the operating and capital budgets, does not require unanimous consent of all participants to the arrangement, therefore joint control does not exist. Instead, because the Group has the power to participate in the financial and operating policies of the investee, these investments are accounted for as associates. 180 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 31 Investments accounted for using the equity method continued Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). As the Samarco entity has the rights to the assets and obligations to the liabilities relating to the joint arrangement and not its owners, this investment is accounted for as a joint venture. The Group is restricted in its ability to make dividend payments from its investments in associates and joint ventures as any such payments require the approval of all investors in the associates and joint ventures. The ownership interest at the Group's and the associates' or joint ventures' reporting dates are the same. When the annual financial reporting date is different to the Group's, financial information is obtained as at 30 June in order to report on an annual basis consistent with the Group's reporting date. The movement for the year in the Group's investments accounted for using the equity method is as follows: 2021 Investment in Investment in Total accounted equity US$M associates joint ventures investments At the beginning of the financial year 2,585-2,585 Profit/(loss) from equity accounted investments, related impairments and expenses(1) 69 (990) (921) Investment in equity accounted investments 108 111 219 Dividends received from equity accounted investments (737)-(737) Transfer to assets held for sale(2) (284)-(284) Other 1 879 880 At the end of the financial year 1,742-1,742 (1) failure US$(990) provision million including represents US US $(842) $(111) million million change impairment in estimate relating and to US US$ $(111) (158) million million funding exchange provided translation, during US the $(15) period, million US movement $(1,000) million in provisions movement related in the to Samarco the Samarco dam Germano forward exchange dam decommissioning derivatives. Refer provision to note including 4 'Significant US$ events 6 million - Samarco change in dam estimate failure' and for US further $(21) information million exchange . translation and US$136 million fair value change on (2) On effective 28 June economic 2021, the date Group of 31 announced December the 2020 divestment . The purchase of its 33 price .3 per is subject cent interest to adjustments in Cerrejón at to transaction Glencore, completion for US$294 which million may cash include consideration an adjustment . The transaction for the dividends has an paid 2021 by reducing Cerrejón the to carrying the Group value during of the the Group's period investment from signing in to Cerrejón completion at 30 . An June impairment 2021 to US charge $284 million, of US$ being 466 million the agreed (before sale tax) proceeds was recognised of US$294 in the million year adjusted ended 30 for June expected transaction costs. Refer to note 13 'Impairment of non-current assets' for details. At Payables 30 June owed 2021, to the Cerrejón Group's of investment US$17 million of US have $284 been million classified in Cerrejón as 'Liabilities along with directly a loan associated due from with Cerrejón the assets of US held $40 for million, sale' .has Subject been to classified the satisfaction as 'Assets of held customary for sale' . competition and regulatory requirements, the transaction is expected to be completed within 12 months from the balance sheet date. The following table summarises the financial information relating to each of the Group's significant equity accounted investments. Information of the Group's investment in Cerrejón has not been included for FY2021 following its classification as 'Assets held for sale'. BHP Brasil's 50 per cent portion of Samarco's commitments, for which BHP Brasil has no funding obligation, is US$350 million (2020: US$200 million). Associates Joint ventures 2021 Individually Individually US$M Antamina Cerrejón immaterial(1) Samarco(2) immaterial Total Current assets 1,499-509(3) Non-current assets 4,885-4,380 Current liabilities (1,285)-(9,222)(4) Non-current liabilities (1,062)-(7,627) Net assets/(liabilities) - 100% 4,037-(11,960) Net assets/(liabilities) - Group share 1,362-(5,980) Adjustments to net assets related to accounting policy adjustments - 280(5) Investment in Samarco - 516(6) Impairment of the carrying value of the investment in Samarco - (1,041)(7) Additional share of Samarco losses - 4,442(8) Unrecognised losses - 1,783(9) Carrying amount of investments accounted for using the equity method 1,362-380 - 1,742 Revenue - 100% 4,822 844 814 Profit/(loss) from Continuing operations - 100% 1,847 (43) (2,202)(10) Share of profit/(loss) of equity accounted investments 623 (14) (1,076)(11) Impairment of the carrying value of the investment in Cerrejón-(466) -Impairment of the carrying value of the investment in Samarco - (111)(7) Additional share of Samarco losses - 85 Fair value change on forward exchange derivatives - 136 Unrecognised losses - (24)(9) Profit/(loss) related impairments from equity and accounted expenses investments, 623 (480) (74) (990)-(921) Comprehensive income - 100% 1,847 (43) (2,202) Share in equity of comprehensive accounted investments income/(loss) - Group share 623 (480) (74) (990)-(921) Dividends received from equity accounted investments 714 13 10 - 737 BHP Annual Report 2021 181

31 Investments accounted for using the equity method continued Associates Joint ventures 2020 Individually Individually US$M Antamina Cerrejón immaterial(1) Samarco(2) immaterial Total Current assets 974 712 49(3) Non-current assets 4,743 2,462 3,601 Current liabilities (239) (170) (7,961)(4) Non-current liabilities (1,173) (854) (5,447) Net assets/(liabilities) - 100% 4,305 2,150 (9,758) Net assets/(liabilities) - Group share 1,453 717 (4,879) Adjustments to net assets related to accounting policy adjustments-59 256(5) Investment in Samarco - 405(6) Impairment of the carrying value of the investment in Samarco - (930)(7) Additional share of Samarco losses - 3,341(8) Unrecognised losses - 1,807(9) Carrying amount of investments accounted for using the equity method 1,453 776 356 - 2,585 Revenue - 100% 2,464 1,091 26 Profit/(loss) from Continuing operations - 100% 629 (182) (3,617)(10) Share of profit/(loss) of equity accounted investments 212 (68) (1,918)(11) Impairment of the carrying value of the investment in Samarco - (95)(7) Additional share of Samarco losses - 93 Unrecognised losses - 1,412(9) Profit/(loss) from equity accounted investments, related impairments and expenses 212 (68) (148) (508)-(512) Comprehensive income/(loss) - 100% 629 (182) (3,617) Share of comprehensive income/(loss) - Group share in equity accounted investments 212 (68) (148) (508)-(512) Dividends received from equity accounted investments 105 9 12 - 126 Associates Joint ventures 2019 Individually Individually US$M Antamina Cerrejón immaterial Samarco(2) immaterial Total Revenue - 100% 3,203 2,094 24 Profit/(loss) from Continuing operations - 100% 1,168 309 (2,166)(10) Share of profit/(loss) of equity accounted investments 394 103 (1,075)(11) Impairment of the carrying value of the investment in Samarco - (96)(7) Additional share of Samarco losses - 108 Unrecognised losses - 118(9) Profit/(loss) from equity accounted investments, related impairments and expenses 394 103 (98) (945)-(546) Comprehensive income/(loss) - 100% 1,168 309 (2,166) Share of comprehensive income/(loss) - Group share in equity accounted investments 394 103 (98) (945)-(546) Dividends received from equity accounted investments 361 134 15 - 510 (1) to The US unrecognised $233 million (2020: share of increase loss for to the US period $193 million) was US . $40 million (2020: unrecognised share of loss for the period was US$12 million), which increased the cumulative losses (2) Refer share to of note Samarco's 4 'Significant losses. events - Samarco dam failure' for further information regarding the financial impact of the Samarco dam failure in November 2015 on BHP Brasil's (3) Includes cash and cash equivalents of US$134 million (2020: US$15 million). (4) Includes current financial liabilities (excluding trade and other payables and provisions) of US$6,567 million (2020: US$6,023 million). (5) Relates received mainly not receivable to dividends . declared by Samarco that remain unpaid at balance date and which, in accordance with the Group's accounting policy, are recognised when (6) within Working the capital Samarco funding impairment provided expense to Samarco line item during . the period is capitalised as part of the Group's investments in joint ventures and disclosed as an impairment included (7) impairment) In the year ended . Additional 30 June cumulative 2016 BHP impairment Brasil adjusted losses its investment relating to working in Samarco capital to US funding $ nil (resulting of US$(516) from million US$(655) have million also been share recognised of loss from . Samarco and US$(525) million (8) BHP failure, Brasil including has recognised US$(497) accumulated million recognised additional as net share finance of Samarco costs. losses of US$(4,442) million resulting from US$(3,945) million provisions relating to the Samarco dam (9) Share of Samarco's losses for which BHP Brasil does not have an obligation to fund. (10) interest Includes expense depreciation of US and $492 amortisation million (2020: of US US$ $154 588 million million; (2020: 2019: US US$ $342 84 million; million) 2019: and income US$85 million), tax (expense)/benefit interest income of of US US $(303) $1 million million (2020: (2020: US US $16 $ (256) million; million; 2019: 2019: US$22 million), US$52 million). (11) Includes accounting policy adjustments mainly related to the removal of foreign exchange gains on excluded dividends payable. 182 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 32 Interests in joint operations Significant joint operations of the Group are those with the most significant contributions to the Group's net profit or net assets. The Group's interest in the joint operations results are listed in the table below. For a complete list of the Group's investments in joint operations, refer to note 13 'Related undertakings of the Group' in section 3.2. Group's interest Significant joint operations Country of operation Principal activity 2021 % 2020 % Atlantis US Hydrocarbons production 44 44 Bass Strait Australia Hydrocarbons production 50 50 Macedon(1) Australia Hydrocarbons production 71.43 71.43 Mad Dog US Hydrocarbons production 23.9 23.9 North West Shelf Australia Hydrocarbons production 12.5-16.67 12.5-16.67 Pyrenees(1) Australia Hydrocarbons production 40-71.43 40-71.43 ROD Integrated Development(2) Algeria Hydrocarbons production 28.85 29.50 Shenzi(3) US Hydrocarbons production 72 44 Trinidad/Tobago(1)(4) Trinidad and Tobago Hydrocarbons production 45-68.46 45-68.46 Mt Goldsworthy(5) Australia Iron ore mining 85 85 Mt Newman(5) Australia Iron ore mining 85 85 Yandi(5) Australia Iron ore mining 85 85 Central Queensland Coal Associates Australia Coal mining 50 50 (1) While and therefore the Group the may Group hold has a greater joint control than 50 over per the cent relevant interest activities in these of joint these operations, arrangements all the . participants in these joint operations approve the operating and capital budgets (2) Group interest reflects the working interest and may vary year-on-year based on the Group's effective interest in producing wells. (3) Increase price of US in $ Group 480 million interest after reflects customary the acquisition post-closing of an adjustments additional 28 . Shenzi per cent continues working to interest be accounted in Shenzi for . The as a transaction joint operation was completed because BHP on continues 6 November to have 2020 joint for a decision purchase-making IFRS 3/AASB rights 3 with 'Business the other Combinations' joint venture with partner no remeasurement (Repsol). The assets of the and Group's liabilities previous related interest to the. acquired The acquisition interests resulted have been in increases accounted to property for in line plant with and the equipment principles of consideration of US$642 million, paid inventory and therefore of US no $17 goodwill million and or bargain closure purchase and rehabilitation gain has been liabilities recognised of US$179 for million the acquisition . Fair value . of the identifiable assets and liabilities approximate the (4) Trinidad/Tobago joint operations include Greater Angostura and Ruby. (5) and These are contractual not entities, arrangements the Group recognises are controlled its share by the of assets, Group liabilities, and do not revenue meet the and definition expenses of arising joint operations from these . However, arrangements as they . are formed by contractual arrangement Assets held in joint operations subject to significant restrictions are as follows: Group's share US 2021 $M US 2020 $M Current assets 2,260 2,059 Non-current assets 38,725 37,193 Total assets(1) 40,985 39,252 (1) While operations the Group without is unrestricted the unanimous in its consent ability to of sell the a other share participants of its interest . The in these assets joint in these operations, joint operations it does not are have also the restricted right to sell to the individual extent that assets they that are are only used available in these to be joint used by the joint operation itself and not by other operations of the Group. 33 Related party transactions The Group's related parties are predominantly subsidiaries, associates and joint ventures and key management personnel of the Group. Disclosures relating to key management personnel are set out in note 24 'Key management personnel'. Transactions between each parent company and its subsidiaries are eliminated on consolidation and are not disclosed in this note. - All transactions to/ from related parties are made at arm's length, i.e. at normal market prices and rates and on normal commercial terms. - Outstanding balances at year-end are unsecured and settlement occurs in cash. Loan amounts owing from related parties represent secured loans made to associates and joint ventures under co-funding arrangements. Such loans are made on an arm's length basis. - No guarantees are provided or received for any related party receivables or payables. - No provision for expected credit losses has been recognised in relation to any outstanding balances and no expense has been recognised in respect of expected credit losses due from related parties. - There were no other related party transactions in the year ended 30 June 2021 (2020: US$ nil), other than those with post-employment benefit plans for the benefit of Group employees. These are shown in note 27 'Pension and other post-retirement obligations'. - Related party transactions with Samarco are described in note 4 'Significant events - Samarco dam failure'. BHP Annual Report 2021 183

33 Related party transactions continued Further disclosures related to related party transactions are as follows: Transactions with related parties Joint ventures Associates US 2021 $M US 2020 $M US 2021 $M US 2020 $M Sales of goods/services - -Purchases of goods/services - 1,564.073 967.276 Interest income - 2.241 2.370 Interest expense - -Dividends received - 737.250 126.187 Net loans (repayments from)/made to related parties - (12.108) 12.273 Outstanding balances with related parties Joint ventures Associates US 2021 $M US 2020 $M US 2021 $M US 2020 $M Trade amounts owing to related parties - 316.269 69.490 Loan amounts owing to related parties - 17.097 5.097 Trade amounts owing from related parties - 0.004 0.473 Loan amounts owing from related parties - 40.651 40.759 Unrecognised items and uncertain events 34 Contingent liabilities US 2021 $M US 2020 $M Associates and joint ventures(1) 1,532 1,314 Subsidiaries and joint operations(1) 1,615 1,534 Total 3,147 2,848 (1) There no amounts are a number have been of matters, included for in which the table it is above not possible . at this time to provide a range of possible outcomes or a reliable estimate of potential future exposures, and for which A contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. A contingent liability may also be a present obligation arising from past events but is not recognised on the basis that an outflow of economic resources to settle the obligation is not viewed as probable, or the amount of the obligation cannot be reliably measured. When the Group has a present obligation, an outflow of economic resources is assessed as probable and the Group can reliably measure the obligation, a provision is recognised. The Group has entered into various counter-indemnities of bank and performance guarantees related to its own future performance, which are in the normal course of business. The likelihood of these guarantees being called upon is considered remote. The Group presently has tax matters, litigation and other claims, for which the timing of resolution and potential economic outflow are uncertain. Obligations assessed as having probable future economic outflows capable of reliable measurement are provided at reporting date and matters assessed as having possible future economic outflows capable of reliable measurement are included in the total amount of contingent liabilities above. Individually significant matters, including narrative on potential future exposures incapable of reliable measurement, are disclosed below, to the extent that disclosure does not prejudice the Group. royalty Uncertain matters tax and The Group is subject to a range of taxes and royalties across many jurisdictions, the application of which is uncertain in some regards. Changes in tax law, changes in interpretation of tax law, periodic challenges and disagreements with tax authorities, and legal proceedings result in uncertainty of the outcome of the application of taxes and royalties to the Group's business. Areas of uncertainty at reporting date include the application of taxes and royalties to the Group's cross-border operations and transactions. To the extent uncertain tax and royalty matters give rise to a contingent liability, an estimate of the potential liability is included within the table above, where it is capable of reliable measurement. Samarco contingent The table above includes contingent liabilities related to the Group's equity accounted investment in Samarco to the extent they are capable of reliable measurement. Details of contingent liabilities related to Samarco are disclosed liabilities in note 4 'Significant events - Samarco dam failure'. of Demerger South32 As part of the demerger of South32 Limited (South32) in May 2015, certain indemnities were agreed under the Separation Deed. Subject to certain exceptions, BHP Group Limited indemnifies South32 against claims and liabilities relating to the Group Businesses and former Group Businesses prior to the demerger and South32 indemnifies the Group against all claims and liabilities relating to the South32 Businesses and former South32 Businesses. No material claims have been made pursuant to the Separation Deed as at 30 June 2021. 184 BHP Annual Report 2021

1 Strategic 2 Governance 3 Financial 4 Additional Report Statements Information 35 Subsequent events On 27 July 2021, the Group entered into a definitive Support Agreement with Noront Resources (Noront) to make an all-cash takeover offer for Noront. On 17 August 2021, the Group announced a major growth investment of US$5.7 billion (C$7.5 billion) in the Jansen Stage 1 potash project, which is aligned with its strategy of growing its exposure to future facing commodities in world class assets. On 17 August 2021, the Group announced the proposed merger of our Petroleum assets with Woodside. On completion of the proposed transaction, BHP's oil and gas business would merge with Woodside, and Woodside would issue new shares to be distributed to BHP shareholders, at which time it is expected that Woodside would be owned 52 per cent and 48 per cent by existing Woodside and BHP shareholders, respectively. The merger, which has a proposed effective date of 1 July 2021, is subject to confirmatory due diligence, negotiation and execution of full form transaction documents, and satisfaction of conditions precedent including shareholder, regulatory and other approvals. The Group continues to assess the full financial reporting impacts of the proposed merger. However, the preliminary terms of the merger did not provide an indicator of impairment for our Petroleum assets at 30 June 2021. The merger is expected to be completed during the first half of CY2022, at which time, we would derecognise the carrying value of our Petroleum assets, which at 30 June 2021 included, but was not limited to, property plant and equipment and closure and rehabilitation provisions of approximately US$11.9 billion and US$3.9 billion, respectively. On 17 August 2021, the Group announced its intention to realise simplification and enhanced strategic flexibility benefits through unifying its corporate structure under its existing Australian parent company. Other than the matters outlined above, no matters or circumstances have arisen since the end of the financial year that have significantly affected, or may significantly affect, the operations, results of operations or state of affairs of the Group in subsequent accounting periods. Other items 36 Auditor's remuneration US 2021 $M US 2020 $M US 2019 $M Fees payable to the Group's auditors for assurance services Audit of the Group's Annual Report 10.642 11.196 6.764 Audit of the accounts of subsidiaries, joint ventures and associates 1.234 1.262 5.127 Audit-related assurance services required by legislation to be provided by the auditor 1.770 1.815 1.358 Other assurance and agreed-upon procedures under legislation or contractual arrangements 1.867 2.003 1.266 Total assurance services 15.513 16.276 14.515 Fees payable to the Group's auditors for non-assurance services Other services-0.400 0.013 Total other services-0.400 0.013 Total fees 15.513 16.676 14.528 In each of FY2021 and FY2020, all amounts were paid to EY or EY affiliated firms. Fees are determined, and predominantly billed, in US dollars. In FY2019, all amounts were paid to KPMG or KPMG affiliated firms, being the Group's auditors for the financial year. Fees were determined in local currencies and predominantly billed in US dollars based on the exchange rate at the beginning of the financial year. Fees payable to the Group's auditors for assurance services For all periods disclosed, no fees are payable in respect of the audit of pension funds. Audit of the Group's Annual Report comprises fees for auditing the statutory financial report of the Group and includes audit work in relation to compliance with section 404 of the US Sarbanes-Oxley Act. Audit-related assurance services required by legislation to be provided by the auditors mainly comprises review of half-year reports. Other assurance services comprise assurance in respect of the Group's sustainability reporting, economic contribution reporting, and comfort letters. Fees payable to the Group's auditors for other services No amounts were payable for other services in FY2021. In prior years, amounts for other services comprised tax compliance services (2020: US$0.269 million; 2019: US$0.013 million) and tax advisory services of (2020: US$0.131 million; 2019: US$ nil). BHP Annual Report 2021 185

37 BHP Group Limited BHP Group Limited does not present unconsolidated parent company Financial Statements. Selected financial information of the BHP Group Limited parent company is as follows: US 2021 $M US 2020 $M Income statement information for the financial year Profit after taxation for the year 3,106 8,881 Total comprehensive income 3,108 8,895 Balance sheet information as at the end of the financial year Current assets 7,126 8,531 Total assets 49,957 53,772 Current liabilities 2,819 1,526 Total liabilities 3,097 1,826 Share capital 823 823 Treasury shares (32) (5) Reserves 236 224 Retained earnings 45,833 50,904 Total equity 46,860 51,946 Parent company guarantees BHP Group Limited has guaranteed certain financing arrangements available to subsidiaries of US$7,879 million at 30 June 2021 (2020: US$13,404 million). Under the terms of a Deed Poll Guarantee, BHP Group Limited has guaranteed certain current and future liabilities of BHP Group Plc. The guaranteed liabilities at 30 June 2021 amounted to US$10 million (2020: US$8