Current Report by Foreign Issuer - Form 6-K

16 August 2022

Results for announcement to the market

Name of Company: BHP Group Limited (ABN 49 004 028 077)

Report for the year ended 30 June 2022

This statement includes the consolidated results of BHP for the year ended 30 June 2022 compared with the year ended 30 June 2021.

This page and the following 186 pages comprise the year end information given to the ASX under Listing Rule 4.3A. The 2022 BHP Group Annual Report will be released in September.

The results are prepared in accordance with IFRS and are presented in US dollars.

Net Tangible Asset Backing:

Net tangible assets¹ per fully paid share were US$9.36 as at 30 June 2022, compared with US$10.71 as at 30 June 2021.

Dividend Reinvestment Plan

Any eligible shareholder who wishes to participate in the dividend reinvestment plan, or to vary a participation election, should do so by 5 September 2022 or, in the case of shareholdings on the South African branch register of BHP Group Limited, in accordance with the instructions of your CSDP or broker. Full terms and conditions of the dividend reinvestment plan and details about how to participate can be found at: bhp.com

This statement was approved by the Board of Directors.

Stefanie Wilkinson

Group Company Secretary

BHP Group Limited

BHPAppendix 4E 2022 Bringing people and resources together to build a better world

Contents 85-109 Governance Directors' Report 86 Remuneration Report 91 110-178 Financial Statements 179-183 Glossary Consolidated Financial Statements 111 Notes to the Financial Statements 119 Units of measure 180 Other terms 180 BHP Appendix 4E 2022 1 Our business 04 2 Delivering value 06 2.1 Our business model 06 2.2 How we create and grow value 08 3 Positioning for the future 13 4 Financial review 15 4.1 Group overview 15 4.2 Key performance indicators 15 4.3 Financial results 16 4.4 Debt and sources of liquidity 18 5 Our assets 20 5.1 Minerals Australia 20 Our performance 02 5.2 Minerals Americas 23 5.3 Commercial 24 6 People and culture 25 7 Sustainability 28 7.1 Our sustainability approach 28 7.2 Our material sustainability issues 30 7.3 Our sustainability performance: Non-financial key performance indicators 30 7.4 Safety 32 7.5 Sexual harassment 33 7.6 Health 34 7.7 Ethics and business conduct 36 7.8 Climate change 38 7.9 Value chain sustainability 49 7.10 Community 50 7.11 Human rights 51 7.12 Security services 53 7.13 Indigenous peoples 53 7.14 Social investment 55 7.15 Environment 56 7.16 Water 57 7.17 Biodiversity and land 58 7.18 Tailings storage facilities 59 8 Samarco 61 9 How we manage risk 62 9.1 Risk factors 63 10 Performance by commodity 70 10.1 Copper 70 10.2 Iron Ore 71 10.3 Coal 72 10.4 Other assets 73 10.5 Impact of changes to commodity prices 73 11 Non-IFRS financial information 74 11.1 Definition and calculation of non-IFRS financial information 82 11.2 Definition and calculation of principal factors 83 12 Other information 84 04-84 Operating and Financial Review 02-03 Overview 25 Our people and culture 13 Positioning for the future 02 Our performance 06 Delivering value Company details refer to OFR 12.1 Forward-looking statements refer to OFR 12.2 Cover image: Potash macrophoto - Getty Images.

BHP, bringing people and resources together to build a better world. Sustainability Integrity Respect Performance Simplicity Accountability 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 decarbonisatio BHP Appendix 4E 2022 01

Our performance Safe, reliable production Indigenous peoples employee representation at end of FY2022: 8.3 % in Minerals Australia operations in Australia 8.7% in Minerals Americas operations in Chile, and 7.2 % in Jansen Potash Project and operations in Canada 29% reduction in freshwater withdrawals compared to adjusted FY2017 baseline,² exceeding our 15% fiveyear target. Fatality-free for the third consecutive year; high-potential injury frequency rate down 30%. Record sales volumes at Western Australia Iron Ore; record material mined at Escondida and nearrecord concentrator throughout. 32.3 % female employee representation at end of FY2022, a 2.5 percentage point increase from the start of the year 02 BHP Appendix 4E 2022

These strong results were due to safe and reliable operations, project delivery and capital discipline, which allowed us to capture the value of strong commodity prices. Mike Henry, Chief Executive Officer Record shareholder cash dividends per share³ 325 USc 2022 2021 Profit from operations US$34.1 bn 2022 2021 Record underlying earnings per share1 2022 2021 470.6 USc 2022 2021 Total economic contribution4 US$78.1 bn Completed unification of dual listed structure, Petroleum merger with Woodside and divestment of BHP Mitsui Coal and Cerrejón interests. 1 For more information on Non-IFRS Financial Information, refer to OFR 11. 2 For information on adjustment to the FY2017 baseline, refer to OFR 7.16. 3 This excludes the 386 US cents in specie dividend from distributing Woodside shares received as consideration for the sale of BHP Petroleum. 4 Total economic contribution includes payments to suppliers, wages and benefits for employees and contractors, dividends, taxes and royalties and voluntary social investment on a Total operations basis. 5 For information on adjustment to the FY2017 baseline, refer to OFR 7.8. Jansen Stage 1 tracked to plan; production shafts completed in June quarter. Working to bring forward first potash production. 15 % reduction in operational greenhouse gas emissions from adjusted FY2017 baseline,5 exceeding our five-year target and on track to be reduced by at least 30% by FY2030 (from FY2020 levels). BHP Appendix 4E 2022 03

1 Our business BHP, bringing people and resources together to build a better world We will responsibly manage the most resilient long-term portfolio of assets, in highly attractive commodities, and will grow value through being excellent at operations, discovering and developing resources, acquiring the right assets and options, and capital allocation. Through our differentiated approach to social value, we will be a trusted partner who creates value for all stakeholders. Global Total economic contribution¹ US$78.1 bn Taxes and royalties paid² US$17.3 bn Payments to suppliers² US$18.8 bn Number of employees and contractors³ 79,471 Chile Total economic contribution¹ US$7.7 bn Taxes and royalties paid² US$2.6 bn Payments to suppliers² US$4.3 bn Number of employees and contractors³ 24,620 Key BHP principal office locations BHP mining locations Copper Nickel Iron ore Coal Non-operated joint venture Potash Rest of the world Total economic contribution¹ US$12.9 bn Taxes and royalties paid² US$1.3 bn Payments to suppliers² US$2.6 bn Number of employees and contractors³ 5,431 1 Total economic contribution includes payments to suppliers, wages and benefits for employees and contractors, dividends, taxes and royalties and voluntary social investment on a Total operations basis. 2 Presented on a Total operations basis. 3 Employee data is based on a 'point-in-time' snapshot of employees as at 30 June 2022 including employees on extended absence, without adjustment for BHP ownership percentage. Contractor data is collected from internal surveys and the organisation systems and averages for a 10-month period, July 2021 and April 2022. 4 Excludes BMC and Cerrejón production. The divestment of BHP's 33.33 per cent interest in Cerrejón to Glencore and of BHP's 80 per cent interest in BMC to Stanmore Resources Limited were completed on 11 January 2022 and 3 May 2022 respectively 04 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary BHP Appendix 4E 2022 05 Our commodities Potash Jansen Stage 1 is our US$5.7 bn potash project Copper FY2022 production 1,574 kt Revenue US$16.8 bn Underlying EBITDA US$8.6 bn Nickel FY2022 production 76.8 kt Revenue US$1.9 bn Underlying EBITDA US$420 m Iron ore FY2022 production 253.2 Mt Revenue US$30.8 bn Underlying EBITDA US$21.7 bn Coal FY2022 production4 42.8 Mt Revenue US$15.5 bn Underlying EBITDA US$9.5 bn Australia Total economic contribution¹ US$57.5 bn Taxes and royalties paid² US$13.4 bn Payments to suppliers² US$11.9 bn Number of employees and contractors³ 49,420

2 Delivering value 2.1 Our business model By prioritising both financial and social value, we deliver long-term value and resilience for our shareholders and all our stakeholders. What we need Our people We employ around 80,000 people across the globe. Our aim is for them to be engaged and supported in a way that sees them work in safer and more productive ways. We are on track to meet our aspirational goal of a gender-balanced workforce by FY2025 and have raised the proportion of Indigenous employees in Australia, Chile and at our Jansen Potash Project in Canada. More inclusive and diverse teams are delivering safer and better business performance at BHP. For more information refer to OFR 6. Strong, mutually beneficial relationships We seek to build long-term mutually beneficial relationships with our stakeholders and partners based on respect, transparency and trust. - Suppliers: More than 8,000 suppliers in 47 countries provide us with goods and services. - Partners: We seek to be the partner of choice for customers, business partners and community stakeholders. For more information refer to OFR 2.2. World-class assets We have a portfolio of large, high-quality, lowcost assets. We are investing in technology to improve productivity and drive sustainable growth across our operations. For more information refer to OFR 5. Exceptional capability Operational excellence and capital discipline are key to generating long-term value. Industry-leading knowledge and operating capability For more information refer to OFR 2.2. Effective risk management For more information refer to OFR 9. Disciplined use of capital For more information refer to OFR 2.2. Responsible natural resource management We seek to efficiently and responsibly manage water and power and to be long-term stewards of more than 8 million hectares of land and sea. For more information refer to OFR 7. Salary, wages and incentives for our employees4 US$4.5 bn FY2021 US$4.4 bn Tax, royalty and other payments to governments³ US$17.3 bn FY2021 US$11.1 bn Shareholder dividends6 US$36.0 bn FY2021 US$15.2 bn Operational greenhouse gas emissions7 11.0 MtCO2-e 25% from FY2021 Operational electricity sourced from renewables5 46% FY2021 1% Investment in community initiatives US$186.4 m FY2021 $174.8 m Land rehabilitated¹ 23,812 hectares FY2021 27,377 hectares Total freshwater withdrawals² 107.4 Gl 29% from adjusted FY2017 baseline Payments to suppliers³ US$18.8 bn FY2021 US$16.5 bn Value outcomes 1 Data does not include land managed for rehabilitation or conservation as part of social investment. 2 For information on adjustment to the FY2017 baseline, refer to OFR 7.16. 3 Presented on a Total operations basis. For more information refer to BHP Economic Contribution Report 2022 to be released in September 2022. 4 Calculated on an accruals and presented on a Total operations basis. For more information refer to BHP Economic Contribution Report 2022 to be released in September 2022. 5 Operational electricity comprises approximately one quarter of our total operational energy consumption. 6 This includes US$19.6 billion in specie dividend from distributing Woodside shares received as consideration for the sale of BHP Petroleum. 7 Adjusted for Discontinued operations (Petroleum) and the divestment of BMC. 06 BHP Appendix 4E 2022

What we doDevelopment and mining Process and logistics Sales, marketing and procurement Closure and rehabilitation Development and mining We strive to achieve the industry's best performance in safety, operational excellence, project management and allocation of capital. We process and refine ore, safely manage waste and efficiently and sustainably transport our products to customers. We maximise value through our centralised marketing and procurement organisations, commercial expertise, understanding of markets and customer and supplier relationships. We consider closure and rehabilitation throughout the asset life cycle to help minimise our impact and optimise postclosure value for all. Exploration and acquisition We seek to add highquality Tier 1 copper and nickel interests through our exploration activities and early-stage entry and acquisition options. Our strategy We will responsibly manage the most resilient long-term portfolio of assets, in highly attractive commodities, and will grow value through being excellent at operations, discovering and developing resources, acquiring the right assets and options, and capital allocation. Through our differentiated approach to social value, we will be a trusted partner who creates value for all stakeholders BHP Appendix 4E 2022 07

2 Delivering value continued 2.2 How we create and grow value Health and safety Our highest priority is the safety of our workforce and the communities where we operate. We achieved a third consecutive year without a fatality and have seen a sustained improvement in the high-potential injury frequency rate which fell by 30 per cent in FY2022 from FY2021. We are committed to protecting the health and wellbeing of our workforce. Over the past five years, we have achieved a 68 per cent reduction in the total number of workers exposed to our most material occupational exposures. For more information refer to OFR 7.4 and 7.6. Our focus on safety and health underpins our strong operational performance and this includes eliminating sexual harassment, racism and bullying. We are committed to eliminating incidents of sexual harassment in our workplaces and accommodation villages, and have strengthened our approach to prevention, reporting and response. Our focus on gender balance is an important factor in addressing this unacceptable behaviour. For more information refer to OFR 7.5. Inclusion and diversity We continue to build a more inclusive and diverse workforce that further enhances our performance and better reflects the communities where we operate: - We remain on track to achieve our aspirational goal for a genderbalanced employee workforce globally by FY2025. For more information refer to OFR 6. - We made progress during FY2022 against targets for increased Indigenous employment in our Minerals Australia operations, Minerals Americas operations in Chile and our Jansen Potash Project in Canada. For more information refer to OFR 6. We produce some of the essential resources needed to support global megatrends, such as decarbonisation, and we strive to produce them sustainably, efficiently and ethically. We seek to create value with the communities where we operate and for our shareholders: - We are committed to continuous improvement and we strive to operate more reliably and productively than our competitors. Being the best operator will help us safely generate better return on capital employed and outcompete others for new opportunities. - We have delivered strong and consistent results and returns through our portfolio and operating discipline. We achieved net operating cashflow on a total operations basis of US$32.2 billion in FY2022, above US$15 billion for the sixth consecutive year. - We believe our focus on social value will lead to us being the partner of choice with communities, governments, suppliers and customers. We seek respectful, mutually beneficial relationships with the communities where we operate and the suppliers, customers and governments we interact with. Our experience has been that engaging with those around us creates optionality, stronger relationships and access to more diverse thinking. It helps us be more creative and to find different ways to problem solve. It also means we are better able to see things coming towards us and can act pre-emptively. Aligning strongly with partners can prevent issues or delays with projects and, if issues do arise, means we are better able to collectively work on solutions. - We assess and rank decarbonisation projects across our operated assets through our Capital Allocation Framework (CAF). During FY2022, we integrated our 1.5°C Paris-aligned scenario into our strategy and capital allocation process, helping to ensure our capital expenditure plans are not misaligned with the Paris Agreement's aim to pursue efforts to limit global warming to 1.5°C. - We recruit and retain the best people and empower them to run our operations safely and productively. We promote an inclusive and diverse environment where safety and wellbeing are the highest priorities, invest in development programs to build capability and improve performance and offer competitive remuneration. We invest in technology to manage risk, streamline processes and improve productivity. - The combination of our people, strategy and operational systems will help us to outperform our competitors and attract a lower cost of capital, while our CAF helps us make better use of this capital. We bring together essential resources, a strong balance sheet and a differentiated operating capability underpinned by our technical Centres of Excellence and the BHP Operating System (BOS). This combination of operational excellence, a strong portfolio of large, long-life, quality assets and focus on social value will assist us to grow value more consistently for all stakeholders and underpin continued attractive returns and longterm value for our shareholders 08 BHP Appendix 4E 2022

We are reshaping our portfolio to focus on higher-quality iron ore and metallurgical coal preferred by our steelmaking customers, copper for electrification and renewable energy, nickel for electric vehicles and potash to make food production and land use more efficient and sustainable. For more information refer to OFR 3. We are developing one of the world's largest potash mines in Canada. The proposed mine has been designed based on a sustainable approach with a relatively low emissions footprint and low water intensity compared to existing potash mines. The Jansen Potash Project is expected to increase BHP's product diversification, customer base and operating footprint, opening up a new future growth front. The US$5.7 billion Jansen Stage 1 is tracking to plan and opportunities to bring forward Jansen S1 continue to be assessed. For more information refer to OFR 5.2. We are the lowest-cost major iron ore producer globally.1 Western Australia Iron Ore (WAIO) is one of the lowest emissions intensity iron ore operations² and is increasing its grade as the new South Flank mine ramps up. WAIO achieved record sales volumes in FY2022, allowing us to capitalise on the opportunity presented by higher iron ore prices. For more information refer to OFR 5.1. Our metallurgical coal operations in Queensland focus on higher-quality product and have one of the lowest production emissions intensities of benchmarked mines.² We believe that a wholesale shift away from blast furnace steelmaking, which uses metallurgical coal, is still decades in the future and that metallurgical coal will remain an essential input into the steelmaking process, which is critical to support decarbonisation infrastructure. We recently completed the sale of our interest in BHP Mitsui Coal (BMC), further focusing our coal portfolio on higher-quality coals for steelmaking with greater potential upside for quality premiums as steelmakers seek to improve blast furnace utilisation and reduce emissions intensity. For more information refer to OFR 5.1. We hold the world's largest copper endowment.³ We are using technical innovation such as new floatation technology to help lower energy costs and unlock value and are looking to secure more copper resources through exploration, acquisition and early-stage entry. Escondida in Chile is the world's largest copper mine. Escondida had record material mined and near-record concentrator throughput in FY2022, while Olympic Dam in South Australia performed strongly in the June 2022 quarter after planned major smelter maintenance. For more information refer to OFR 5.1 and 5.2. We hold the second-largest nickel sulphide endowment globally4 and our nickel operations in Western Australia have one of the lowest production emissions intensities of benchmarked mines.² We achieved our first saleable production of nickel sulphate crystals for the lithium-ion battery industry in the December 2021 quarter. We are growing value by supplying 87 per cent of BHP's battery-suitable nickel to battery material suppliers in FY2022. We are seeking more nickel resources through exploration, acquisition and early-stage entry. For more information refer to OFR 5.1. 1 Based on published C1 unit costs of major iron ore producers. There may be differences in the manner that third parties calculate or report unit costs data compared to BHP, which means that third-party data may not be comparable to our data. 2 For more information refer to OFR 7.8. 3 Based on ownership interest. Peers include: Anglo American, Antofagasta, Codelco, First Quantum Minerals, Freeport, Glencore, Rio Tinto, Southern Copper, and Teck. Source peers: Wood Mackenzie Ltd, Q1 2022. 4 Based on ownership interest. Source peers: MinEx Consulting.

2 Delivering value continued Social value is BHP's positive contribution to society - our people, partners, the economy, the environment and local communities. It is about creating enduring, mutual benefit for BHP, our shareholders and the broader community. Doing this well is essential to better business outcomes and long-term shareholder value, and will create a competitive advantage. How social value can create competitive advantage We recognise that decisions we make have the potential to positively or negatively impact those around us, and the environment. Our aim with social value is to be deliberate and proactive in taking into account social, environmental and financial impact in the choices we make. Embedding social value into everything we do will open up opportunities, increase resilience and help us manage risk. It will influence our access to resources, partners, markets, the best talent, and capital. Our commitment to social value We have been committed to sustainability and social value for many years and are making progress in responsibly providing more of the resources the world needs: - We have set GHG emissions reduction targets and goals (that are described in OFR 7.8) and our Climate Transition Action Plan 2021 (CTAP) received majority approval from shareholders in the 'Say on Climate' advisory vote at our 2021 Annual General Meetings. - We are working to create nature-positive4 outcomes through the new goal we have set to have at least 30 per cent of the land and water we steward under conservation, restoration or regenerative practices by 2030. For more information refer to 2030 social value scorecard below and OFR 7.15. - We are working to transition our operations to renewable electricity. For more information, refer to OFR 5.1 and 7.8. - We are working with suppliers to drive innovation by participating in initiatives such as Komatsu's GHG Alliance, which aims to develop commercially viable zero-GHG emissions haul trucks. For more information refer to OFR 7.8. - Our spend with Indigenous businesses increased by 75 per cent to US$149.9 million in FY2022 and the number of Indigenous vendors engaged rose by 53 per cent to 148. WAIO announced its intention to more than double its spend with Indigenous vendors to more than US$300 million by the end of FY2024. For more information refer to OFR 7.13. How we will report from FY2023 2030 goals At least 30% reduction in operational GHG emissions, support 40% emissions intensity reduction of BHP-chartered shipping of our products, and support development of technologies and pathways capable of 30% emissions intensity reduction in integrated steelmaking.2,3 Create nature-positive4 outcomes by having at least 30% of the land and water we steward under conservation, restoration or regenerative practices. In doing so we focus on areas of highest ecosystem value both within and outside our own operational footprint, in partnership with Indigenous peoples and local communities. Respectful relationships that hear and act upon the distinct perspectives, aspirations and rights of Indigenous peoples and support the delivery of mutually beneficial and jointly defined outcomes. Key metrics % reduction in operational emissions from FY20203 % reduction in emissions intensity of BHP-chartered shipping of our products3 Available in FY2023 $ committed in steelmaking partnerships and ventures to date (US$) % area under nature-positive management practices5 # assets with natural capital account6 Available from FY2023 % Indigenous workforce participation, by region $ Indigenous procurement (US$) Available in 2024 Progress on plan8 Relationship health9 Australia 0 0 Canada 0 0 Chile 0 0 Short-term milestones FY2023: 95% of study phase projects are presented for tollgates or meet milestones as scheduled in BHP's operational decarbonisation plan FY2024: Operationalise five low/ zero GHG emission vessels FY2024: Complete at least one pilot or industrial scale steelmaking-related plant trial FY2023: Publish context-based water targets FY2023: Complete important biodiversity and ecosystems (IBE) baseline mapping for all land and water areas7 FY2024: Establish 'nature-positive' asset plans to deliver the Group-level 2030 goal FY2023: Release revised Global Indigenous Peoples Strategy FY2023: Increase formal Indigenous voice mechanisms in decision-making FY2024: Co-create plans which define priorities and are designed to deliver mutually beneficial outcomes1 In setting BHP's 2030 goals, we had regard to existing public sustainability frameworks, including the UN Sustainable Development Goals, the Paris Agreement, Convention on Biological Diversity, The Global Business Collaboration for Better Workplace Mental Health, and the UN Declaration of the Rights of Indigenous Peoples. Our pillars map to the UN Sustainable Development Goals as follows: Decarbonisation - Goal 13; Healthy environment - Goals 6, 14, 15; Indigenous partnerships - Goals 8, 10, 17; Safe, inclusive and future-ready workforce - Goals 3, 5, 10; Thriving, empowered communities - Goals 3, 4, 6, 7, 8, 9, 10, 11, 16 and Responsible supply chains - Goals 10, 12, 16, 17. 2 With widespread adoption expected post-2030. 3 These positions are expressed using terms that are defined in the Glossary to this Report, including the terms 'target', 'goal', 'net zero' and 'carbon neutral'. The baseline year(s) of our targets will be adjusted for any material acquisitions and divestments, and to reflect progressive refinement of emissions reporting methodologies. The targets' boundaries may in some cases differ from required reporting boundaries. The use of carbon offsets will be governed by BHP's approach to carbon offsetting described at bhp.com/climate. The Scopes 1 and 2 operational emissions target is for FY2030. The Scope 3 goals are for CY2030. For further information on our GHG targets and goals, refer to 'BHP's climate change targets and goals' in OFR 7.8. 4 Nature positive is defined by the WBCSD/TNFD as 'A high-level goal and concept describing a future state of nature (e.g. biodiversity, ecosystem services and natural capital) which is greater than the current state.' It includes land and water management practices that halt and reverse nature loss - that is, supporting healthy, functioning ecosystems. 5 Land under stewardship which has a formal management plan including nature-positive practices. Data reflects the period up to 30 June 2021. 6 Natural capital accounts are a way to measure the amount, condition and value of environmental assets in a given area. It helps describe changes in ecosystems and how these impact wellbeing and economiesBHP Appendix 4E 2022

A thriving workforce that is safe, healthy, gender balanced at every level, culturally diverse10 and inclusive and skilled for the future. Partner with communities and stakeholders to co-create and implement plans that deliver jointly defined economic, social and environmental outcomes. Together with our partners, we create sustainable, ethical and transparent supply chains. # reduction in life-altering injury or illness11 Available in FY2023 % engagement and Perception Survey wellbeing score % female workforce representation Diversity index available in FY2024 % co-created plans Delivery metric to be added in FY2024 # community feedback on co-creation and implementation process Available in FY2024 $ total economic contribution (US$) # customer Net Promoter Score (NPS)14 # supplier Net Promoter Score (NPS)14 FY2023: Achieve 100% adherence to sexual harassment program12 FY2024: >90% implementation of plan for controls identified and approved through the Fatality Elimination Program and 100% adherence to the psychosocial risk13 management program FY2024: Female workforce representation exceeds 37% FY2023: Release Equitable Transition principles - refer to OFR 7.1 FY2023/2024: Embed co-creation approach including metrics and measurement FY2025: Implement co-created plans that are designed to deliver jointly defined outcomes FY2024: Implement LME Responsible Sourcing requirements FY2024: Complete ICMM Performance Expectations for all operating assets FY2024: Determine ethical supplier improvement plans with partners, where required 7 All land and water areas across Minerals Americas and Minerals Australia. 8 Progress to plan will be partner-measured using a traffic light score on Indigenous partnership satisfaction in relation to the milestones agreed in partnership. 9 Relationship health will be partner-measured using a traffic light score. 10 Cultural diversity in our workforce will be measured based on our substantive progress towards reflecting the cultural diversity of the community. 11 Reduction in life-altering injury or illness: includes life-altering or long-term permanent disabling injuries and illnesses as defined by the BHP Risk Management Framework. 12 The core components of the sexual harassment program include: culture, leadership and training; security measures at accommodation villages; recruitment processes; contractor and third-party engagement; emergency response; trauma-informed (wellbeing) care; accessible, confidential reporting and person-centric investigations; and appropriate disciplinary action. 13 Psychosocial risks or hazards are factors in the design or management of work or the social conditions that increase the risk of work-related stress and can lead to psychological or physical harm. Examples of psychosocial hazards include exposure to unreasonable behaviours, including bullying, racism and sexual harassment, fatigue, poor supervisor support, poor communication or change management or high job demands. 14 Net Promoter Scores show respective feedback from our customers and suppliers, and measures the willingness of our customers/suppliers to recommend BHP to others. It is used as a proxy for gauging overall satisfaction. 15 Social investment to be assessed as a total over the entire period to FY2030, rather than a specific annual commitment. This investment is in addition to our direct operational decision-making and financial contributions. Our expenditure with local suppliers was primarily in Australia (59 per cent) and Chile (30 per cent). Of our total supplier spend, 94.4 per cent was in the regions where we operate. 2030 social value scorecard In June 2022, we launched our social value scorecard with 2030 goals, metrics and milestones (below). We believe it will enhance our opportunity to run our business in a way that delivers long-term, sustainable value to BHP, our shareholders and the broader community. This scorecard provides clarity to our teams on our ambitions and allows us to measure progress, transparently report and hold ourselves to account. Our metrics will evolve over time and some are future metrics that will be developed in the coming years. They show where we are headed with measuring our performance. At its core, this scorecard represents an emphasis on partnerships, listening and co-design, recognising that it is not for us alone to decide what is of value to communities or the environment, and that addressing challenges like climate change require collaboration. We will disclose our performance against this scorecard every year as part of our Annual Report, starting in FY2023. - We completed our most recent five-year sustainability targets in FY2022. Highlights included three years fatality-free, a reduction in the total number of workers exposed to our most material occupational exposures by 68 per cent, a 15 per cent decrease in operational GHG emissions from our adjusted FY2017 baseline, social investment of US$681.4 million over five years and a 29 per cent reduction in freshwater withdrawal volumes from our adjusted FY2017 baseline. For more information refer to OFR 7.3 and 7.8. - Our Chilean operations Escondida and Spence, and Olympic Dam in Australia were awarded the Copper Mark during FY2022 recognising responsible production practices. For more information on our social value performance refer to OFR 7. Supporting local economic development We aim to source and promote locally available goods and services as an important part of our external expenditure to help local communities thrive. Our operated assets develop local procurement plans designed to identify opportunities for local suppliers, including small businesses. In FY2022, BHP made US$18.8 billion in payments to suppliers globally, including US$17.6 billion in payments to more than 8,000 suppliers in the regions where we operate. Of the latter amount, US$2.7 billion, or 15.2 per cent, was paid to local suppliers in the communities where we operate.

2Delivering value continued Operational excellence We seek to continuously improve performance by empowering our people through BOS principles, practices and tools. BOS is, at its heart, a people program. It is designed to provide a way of working that creates a culture at BHP where we make continuous improvement central to everyone's role. We continued to deploy BOS throughout our business in FY2022 and expect full deployment by the end of FY2024. BOS has delivered over US$2 billion in estimated, recurring and one-time cost and revenue improvements since we developed it in CY2018. Based on the success we are seeing, we believe it will deliver further gains in the future. Embracing technology and innovation The power of data, innovation and technology, together with the BOS, have helped accelerate continuous improvement across our value chain, from the geoscience required in exploration through to the marketing of our products. We have used technology to: - maintain safe, predictable and productive operations - drive productivity improvements, with an emphasis on automation and real-time data-driven insights and decision-making - help drive inclusion and diversity by providing greater opportunities for roles that were traditionally labour intensive - unlock the next stage of value growth at BHP, from realising greater margins at our existing operations to finding new assets - improve sustainability outcomes through innovation The use of technology such as in autonomous trucks, production innovation such as primary sulphide leaching at our copper assets (which has helped us to extract more copper from ore) and digital transformation across all parts of our business has helped to improve safety, increase productivity, reduce costs, build capability and accelerate value creation. Examples of our application of technology and innovation in FY2022 include: - We continued to automate our global trucking fleets. At South Flank we began to automate our fleet of 41 Komatsu haul trucks in the June 2022 quarter, with the program expected to be completed within 18 months. We continued deployment at Goonyella Riverside (expected to be completed by the end of December 2022) and completed the rollout at Daunia. We also commenced autonomous drilling at Spence. We expect to commence the rollout of automated trucks at Spence in FY2023. - We began testing two automated shiploaders at the Port Hedland export facility in Western Australia. In what we believe is a world first, 3D laser scan technology has been used in the A$50 million project. We intend to fully automate eight shiploaders by FY2024. The project is expected to enable an increase in production of more than 1 million tonnes of iron ore each year through greater precision, reduced spillage, faster load times and equipment optimisation. - Our in-house Grade Adjustment Model has been introduced at multiple WAIO sites and is expected to enable a US$22.8 million annual revenue uplift at WAIO. The model uses machine learning to target a reduction in iron ore grade variability across the supply chain. It uses data sources that capture movements of ore to map the iron grade coming from the mine to the iron ore grade shipped at port. - Through our Maintenance and Engineering Centre of Excellence, we continued the rollout of our Total Equipment Strategies (TES), which were initially applied to our mobile fleets and have been extended to our fixed plant. These strategies use mathematical analysis of breakdowns, maintenance patterns and original equipment manufacturer recommendations to recalibrate our maintenance programs to increase availability and reliability, and reduce maintenance costs and inventory values. For example, at our Newman iron ore operation in Western Australia, the mobile TES project for CAT 6060 excavators helped to extend the average equipment life by 40 per cent and delivered an availability uplift of 2 per cent. The outcome is 3.5 years of extra life which has helped to achieve capital productivity by deferral of US$120 million of capital expenditure over five years. Financial excellence We use the Capital Allocation Framework (CAF) to assess the most effective and efficient way to deploy capital. This prioritises maintaining safe and reliable operations, meeting our social value and GHG emissions reductions targets, goals and strategies, keeping our balance sheet strong and delivering strong growth and returns for 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. Since the CAF's introduction in FY2016, we have balanced reinvestment in the business with cash returns to shareholders. We want shareholders to see the short-term benefit of these cash returns and trust us to plan for the future by investing where it matters. What is the BHP Operating System? The BHP Operating System (BOS) is a way of working that seeks to make improvement part of what we do every day through the application of BOS tools and practices. It is anchored in three principles that will help us deliver exceptional safety and productivity performance and an inclusive and empowered culture: - Serve our customers - deliver what internal and external customers need, at the right time and at the appropriate levels of quality and cost. - Pursue operating perfection - pursue 100 per cent safety for our people, 100 per cent value for our customers, 0 per cent waste. - Empower our people - support our people with the right conditions and leadership to excel. They know their work and how to improve it. Through BOS principles and practices we are delivering more to our employees and contractors, suppliers, shareholders, customers and the communities whose resources we develop.

Operating and Financial Financial
Review Governance Statements Glossary
3 Positioning for the future
Reshaping our corporate structure and portfolio
In FY2022, we took steps to create Investing - potash in a new commodity a simpler, more agile and efficient
BHP, better able to capitalise on the Potashenablesmoreefficientandsustainable megatrends shaping our world. farming which we believe will be increasingly important in feeding a growing population, and A simpler corporate structure potentially opens a new long-term growth front for BHP.
For the past two decades we operated with a dual listed company (DLC) structure with two In August 2021, we approved US$5.7 billion parent companies - BHP Group Limited in in capital expenditure for Jansen Stage 1 Australia with its shares listed on the Australian inSaskatchewan,Canada,withfirstpotash Securities Exchange and BHP Group Plc (now production expected in CY2027. We are working known as BHP Group (UK) Ltd) in the United tobringforwardJansenStage1firstproduction
Kingdom with its shares listed on the London and are assessing options to accelerate Jansen Stock Exchange. Stage 2.
Following shareholder approval in January 2022, TheUS$2.97billionJansenprojecttofinish weunifiedourcorporatestructuretooneparent the excavation and lining of the production and company and one share price - under BHP service shafts, and to continue the installation GroupLimited.Webelieveunificationgivesus of essential surface infrastructure and utilities, a corporate structure that is simpler, more agile was completed in June 2022. For FY2023, andmoreefficient. approximately US$740 million in capital expenditure is planned for work at Jansen with Merging Woodside Petroleum Stage 1, which will continue to focus on civil and mechanical construction on the surface and During FY2022, we merged our Petroleum business underground, as well as equipment procurement with Woodside Energy Group Ltd (Woodside) to and port construction. create a global top 10 independent energy company by production. Woodside acquired BHP's Petroleum at Unlocking our assets growth potential business in exchange for Woodside shares that were distributed to BHP shareholders through an in The large endowments we have under our
Nickel specie dividend. control are becoming increasingly valuable as
We hold the second-largest nickel sulphide theresourcesindustryfindshigh-quality,Tier1
Based on Woodside's share price of US$21.39 endowment globallyË› and own the majority of (large, low-cost and long-life) resources harder
(A$29.76) at 31 May 2022, the closing date tenements of known resource in the Agnew-to access, deeper, of lower grade, or in countries of the transaction, the implied value of BHP's Wiluna basin in Western Australia. with more challenging operating conditions.
Petroleum business was US$19.6 billion
(A$27.2 billion). - Our nickel sulphate plant at Nickel West
Copper deliveredfirstcrystalsinOctober2021,
BHP shareholders gained exposure to assets in We hold the largest copper endowment in the allowing us to add further value to our nickel Woodside through the transaction and greater world at among the highest average grade.¹ production. We intend to capitalise on the choice about how to weight their exposure to expected ongoing global demand for nickel
- This includes 27 billion tonnes of ore at an the different investment and sector propositions. for the electric vehicle industry, as the average grade of 0.52 per cent at Escondida, The transaction increased BHP's portfolio method we use to produce nickel sulphate where we are targeting an annual average of weighting towards future facing commodities results in a product we believe is ideal for
1.2 million tonnes (Mt) of copper production that support economic growth and have potential battery production. over the medium term, a 20 per cent increase upside through the energy transition. on Escondida's FY2022 production of 1 Mt. - We continue to explore ways to increase the
Consolidating our coal portfolio - On the basis that tailings storage facility scale of Nickel West.
In January 2022, we divested our 33.3 per cent anomalies are resolved, production at Iron Ore
interest in Cerrejón, a non-operated energy Spence is expected to reach and average
coal joint venture in Colombia, to Glencore, approximately 270 kilotonnes per annum We are one of the world's largest iron ore
for a total cash consideration of approximately (ktpa) of production for four years (including producers and expect to increase production
US$294 million. cathodes) following the completion of Spence over the medium-term.
GrowthOption(SGO)plantmodifications. - We have secured an increase to our WAIO
In May 2022, we divested our 80 per cent This will be supported by capital expenditure iron ore environmental licence to expand
interest in BHP Mitsui Coal Pty Ltd (BMC), a of approximately US$100 million, which is port operations up to 330 million tonnes per
metallurgical coal joint venture in Queensland plannedfortheSGOplantmodificationsand annum (Mtpa) subject to the outcomes of a
operated by BMC, to Stanmore Resources these are currently planned to be completed standard appeals process.
Limited, for a total cash consideration of up to in CY2023, with further studies ongoing for
- The ramp up of WAIO's US$3.6 billion South
US$1.35 billion in paid and deferred amounts, additional capacity uplift.
plusafinalcompletionadjustmentamount. Flank mine is ahead of schedule and we have
- At Olympic Dam, we have improved operating revised our medium-term production guidance
In June 2022, we announced that, following a stability over time. Smelter operations have to more than 300 Mtpa. We are assessing
two-year review, we would retain New South been strong following our planned major expansion alternatives to take us toward
Wales Energy Coal (NSWEC). We will be seeking smelter maintenance, completed in January 330 Mtpa of production.
approvals to continue mining at NSWEC beyond 2022. The next major rebuild is not expected
its current mining consent that expires in 2026 for six years.
and intend to proceed with a managed process to 1 Based on ownership interest. Peers include: Anglo
cease mining at the asset by the end of FY2030. American, Antofagasta, Codelco, First Quantum
Minerals, Freeport, Glencore, Rio Tinto, Southern
These portfolio changes are consistent with our Copper, and Teck. Source peers: Wood Mackenzie
strategy to focus on producing higher-quality Ltd, Q1 2022.
metallurgical coal. 2 Based on ownership interest. Source peers:
MinEx Consulting.
BHP Appendix 4E 2022 13

3 Positioning for the future continued
Growth through exploration, focused on copper and nickel
Our exploration program is focused on copper and nickel. We look to identify and gain access BHP exploration regions to new search spaces to test targets capable of delivering high-quality, Tier 1 deposits, and maintain research and technology activities aligned with our exploration strategy.
Despite the slowdown and restrictions on
Eastern movement due to the COVID-19 pandemic, Southwest Canada inFY2022ourfieldteamspursuedcopper
United States opportunities in Chile, Colombia, Peru, Ecuador, the United States and Australia. This involved Northwest Mexico early-stage reconnaissance work through target Colombia definitionanddrilltesting.
Ecuador Elsewhere for copper, we continued to seek,
Peru Western Australia Northern secure and test concessions in regions such as Ecuador, South Australia, Chile, Mexico, Territory Chile South Australia and Peru.
We have also increased the number of high-quality nickel projects within the exploration pipeline. We are actively exploring nickel Copper exploration regions Nickel exploration regions targets in Western Australia, while in Canada, we continued our partnership with Midland Exploration Inc in Canada through our 5 per cent interest and collaboration on a target generation program. BHP made a US$40 million investment Exploration expenditure in Kabanga Nickel in Tanzania in FY2022, which Our resource assessment exploration expenditure increased by 30 per cent in FY2022 to offers an opportunity to expand the immediate US$179 million, while our greenfield expenditure increased by 43 per cent to US$77 million. search space to add to the known resource. Expenditure on resources assessment and greenfield exploration over the last three financial years
Our business partnerships continued to deliver is set out below. encouraging results. In Ecuador, we maintained 2022 2021 2020 a 13.6 per cent ownership in SolGold plc, Year ended 30 June US$M US$M US$M the majority owner and operator of the Alpala Greenfield exploration 77 54 44 porphyry copper-gold project. In Mexico, we Resources assessment 179 138 132 continuedourfinancialagreementwithRiverside Total metals exploration and assessment 256 192 176 Resources,aUScompanywithsignificant operating experience in Mexico, securing Exploration expense additional areas that are scheduled to be drill
Exploration expense represents that portion of exploration expenditure that is not capitalised in tested during FY2023. In Australia, we initiated accordance with our accounting policies, as set out in Financial Statements note 11 'Property, plant work with Encounter Resources to explore for and equipment'. sediment-hosted copper deposits in the Northern Territory. We also entered into a Letter of Intent Exploration expense for each segment over the last three financial years is set out below. with Mundoro to cooperatively explore for copper
2022 2021 2020 resources in the highly prospective belt in Serbia Year ended 30 June US$M US$M US$M and Bulgaria. Several drill-ready targets are Exploration expense scheduled to be tested during FY2023. Copper 85 53 54
Iron Ore 54 55 47 Coal 6 7 9 Group and unallocated items1 54 19 13
Total Group 199 134 123
1 Group and unallocated items includes functions, other unallocated operations, including Potash, Nickel West and legacy assets (previously disclosed as closed mines in the Petroleum reportable segment), and consolidation adjustments.
14 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
4 Financial review
4.1 Group overview Summary of financial measures
We prepare our Consolidated Financial Year ended 30 June
Statements in accordance with International US$M 2022 2021
Financial Reporting Standards (IFRS), as issued Consolidated Income Statement (Financial Statements 1.1) by the International Accounting Standards Revenue1 65,098 56,921
Board. We publish our Consolidated Financial Profit/(loss)aftertaxationfromContinuingoperations1 22,400 13,676 Statements in US dollars. All Consolidated Profit/(loss)aftertaxationfromContinuingandDiscontinuedoperations
Income Statement, Consolidated Balance attributable to BHP shareholders 30,900 11,304
Sheet and Consolidated Cash Flow Statement Dividends per ordinary share - paid during the period (US cents) 350.0 156.0 information below has been derived from audited Dividends per ordinary share - determined in respect of the period (US cents) 325.0 301.0 Financial Statements. In specie dividend on merger of Petroleum with Woodside (US cents) 386.4 -For more information Basicearnings/(loss)perordinaryshare(UScents) 610.6 223.5 refer to Financial Statements. Consolidated Balance Sheet (Financial Statements 1.3)
Weusevariousnon-IFRSfinancialinformation Total assets 95,166 108,927 toreflectourunderlyingperformance.Non-IFRS Net assets 48,766 55,605 financialinformationisnotdefinedorspecified Consolidated Cash Flow Statement (Financial Statements 1.4) under the requirements of IFRS however, is Netoperatingcashflows 32,174 27,234 derived from the Group's Consolidated Financial Capital and exploration expenditure2 7,545 7,120 Statements prepared in accordance with IFRS. Other financial information (OFR 11) Non-IFRS Financial Information is consistent Net debt 333 4,121 withhowmanagementreviewsfinancial Underlyingattributableprofit 23,815 17,077 performance of the Group with the Board and Underlyingattributableprofit-Continuingoperations1 21,319 16,985 the investment community. OFR 11 'Non-IFRS Underlying EBITDA1 40,634 35,073 financialinformation'includesournon-IFRS Underlying basic earnings per share (US cents) 470.6 337.7 financialinformationandOFR11.1'Definition Underlying basic earnings per share - Continuing operations (US cents)1 421.2 335.9 andcalculationofnon-IFRSfinancialinformation' Underlying return on capital employed (per cent) 48.7 32.5 outlineswhywebelievenon-IFRSfinancial
1 Comparative periods have been adjusted for the effects of applying IFRS 5 'Non-current Assets Held for Sale and information is useful and the relevant calculation DiscontinuedOperations'anddisclosesthemonthesamebasisasthecurrentperiodfigures.RefertoFinancial methodology.Webelievenon-IFRSfinancial Statements note 27 'Discontinued operations' for further information. information provides useful information, however 2 Includes US$1,434 million related to Discontinued operations (FY2021: US$1,316 million). it should not be considered as an indication of, or as a substitute for, statutory measures as an indicator of actual operating performance (such asprofitornetoperatingcashflow)oranyother measureoffinancialperformanceorposition presented in accordance with IFRS, or as a Underlying attributable profit1,3 Underlying EBITDA2,3 measureofacompany'sprofitability,liquidity US$ billion US$ billion orfinancialposition.
4.2 Key performance 25 50
indicators 20 40
Our key performance indicators (KPIs) enable us to
15 30 measureoursustainabledevelopmentandfinancial performance. These KPIs are used to assess
10 20 performance of our people throughout the Group.
For information on our approach to performance and reward 5 10 refer to Remuneration Report.
0 0
For information on our overall approach FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 to executive remuneration, including remuneration policies and remuneration outcomes refer to Remuneration Report. Net operating cash flows1 Underlying return on capital
Following BHP's sale of the Onshore US assets US$ billion employed1,3 in FY2019 and subsequently the merger of Per cent our Petroleum business with Woodside in 35 50
FY2022, the contribution of these assets to the
Group's results are presented as Discontinued 28 40 operations. To enable more meaningful comparisons with prior year disclosures and in
21 30 some cases to comply with applicable statutory requirements, the data in OFR 4.2, except
for Underlying EBITDA, has been presented 14 20
to include Petroleum assets. Footnotes to tables and infographics indicate whether data 7 10 presented in OFR 4.2 is inclusive or exclusive of Petroleum assets. Details of the contribution 0 0
FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 of the Petroleum assets to the Group's results are disclosed in Financial Statements note 27 'Discontinued operations'. 1 IncludesdataforContinuingandDiscontinuedoperationsforthefinancialyearsbeingreported.
2 ExcludesdatafromDiscontinuedoperationsforthefinancialyearsbeingreported.
3 Formoreinformationonnon-IFRSfinancialinformationrefertoOFR11.
BHP Appendix 4E 2022 15

4 Financial review continued
Reconciling our financial results to our key performance indicators
Profit Earnings Cash Returns
Measure US$M US$M US$M US$M
Profit after taxation Profit after taxation Net operating cash Profit after taxation from Continuing and from Continuing and flows from Continuing from Continuing and Discontinued operations 33,055 Discontinued operations 33,055 operations 29,285 Discontinued operations 33,055 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 620 Exceptional items before 620 Net operating cash 2,889 Exceptional items after (7,085) for before taxation taxation flows from Discontinued taxation operations Net finance costs 159
Tax effect of 454 Tax effect of exceptional 454 excluding exceptional exceptional items items items from Discontinued operations Exceptional items - Depreciation and 5,683 after tax attributable amortisation excluding Net finance costs to non-controlling exceptional items excluding exceptional 679 interests items from Continuing Impairments of property, 515 operations Exceptional items 1,074 plant and equipment, Income tax expense on attributable to BHP financial assets and net finance costs (287) shareholders - intangibles excluding
Profit after taxation
Continuing operations exceptional items excluding net finance 26,521 costs and exceptional Exceptional items (8,159) Net finance costs 679 items attributable to excluding exceptional Net assets at the BHP shareholders items from Continuing beginning of period 55,605
- Discontinued operations operations Net debt at the beginning
Taxation expense 10,283 of period 4,121
Profit after taxation (2,155) excluding exceptional from Continuing items Capital employed at the and Discontinued beginning of period 59,726 operations attributable Profit after taxation from (10,655) Net assets at the to non-controlling Discontinued operations end of period 48,766 interests (including exceptional Net debt at the items) end of period 333 Capital employed at the end of period 49,099 Average capital employed 54,413
To reach Underlying attributable profit 23,815 Underlying EBITDA 40,634 Net operating cash flows 32,174 Underlying return 48.7% our KPIs on capital employed Why do we Underlying attributable profit allows the Underlying EBITDA is used to help Net operating cash flows provide Underlying return on capital employed use it? comparability of underlying financial assess current operational profitability insights into how we are managing is an indicator of the Group's capital performance by excluding the impacts excluding the impacts of sunk costs costs and increasing productivity efficiency. It is provided on an underlying of exceptional items. (i.e., depreciation from initial investment). across BHP. basis to allow comparability of underlying It is a measure that management uses financial performance by excluding the internally to assess the performance impacts of exceptional items. of the Group's segments and make decisions on the allocation of resources.
4.3 Financial results
The following table provides more information on the revenue and expenses of the Group in FY2022.
2021 2020 2022 US$M US$M
Year ended 30 June US$M Restated Restated
Continuing operations
Revenue1 65,098 56,921 38,924 Other income 1,398 380 720
Expenses excluding net finance costs (32,371) (30,871) (25,453) Loss from equity accounted investments, related impairments and expenses (19) (915) (508)
Profit from operations 34,106 25,515 13,683
Net finance costs (969) (1,223) (858) Total taxation expense (10,737) (10,616) (4,197)
Profit after taxation from Continuing operations 22,400 13,676 8,628
Discontinued operations
Profit/(loss) after taxation from Discontinued operations 10,655 (225) 108
Profit after taxation from Continuing and Discontinued operations 33,055 13,451 8,736 Attributable to non-controlling interests 2,155 2,147 780 Attributable to BHP shareholders 30,900 11,304 7,956
1 Includes the sale of third-party products.
16 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
ProfitaftertaxationattributabletoBHP Lower volumes were experienced across the Loss from equity accounted investments, related shareholders increased from US$11.3 billion Group's portfolio due to COVID-19 impacts, the impairments and expenses of US$19 million in FY2021 to US$30.9 billion in FY2022. planned major smelter maintenance campaign decreased by US$0.9 billion from FY2021. AttributableprofitofUS$30.9billionincludes at Olympic Dam and lower feed grade at The decrease was primarily related to a lower an exceptional gain of US$7.1 billion (after Escondida and Spence. Volume decline was increase in the Samarco Dam failure provision tax),comparedtoanattributableprofitof partially offset by higher concentrate sales at compared to FY2021 and US$0.5 billion US$11.3 billion including an exceptional Spencereflectingthecontinuedrampupofthe impairment of Cerrejón in FY2021. loss of US$5.8 billion (after tax) in the prior Spence Growth Option. For more information on the total impact period. The FY2022 exceptional gain includes For information on our average realised of the Samarco dam failure provision a US$1.1 billion exceptional loss related to prices and production of our commodities and impairment charges connected Continuing operations comprising of Samarco refer to OFR 10. with equity accounted investments, dam failure impacts, corporate structure Totalexpensesexcludingnetfinancecostsof refer to Financial Statements note
3 'Exceptional items' and Financial unificationcostsandUSdeferredtaxasset US$32.4 billion increased by US$1.5 billion, or Statements note 13 'Impairment of non-impairments partially offset by the net gain on 5 per cent from FY2021. This included higher current assets' respectively. disposal of BMC. The net gain on merger of our raw materials and consumables of US$1.1 billion Petroleum business with Woodside is included NetfinancecostsofUS$1.0billiondecreased due to South Flank operational ramp up and as an exceptional item related to Discontinued by US$0.3 billion, or 21 per cent from FY2021. higher input prices mainly due to higher diesel operationsincludedwithinProfit/(loss)after This was mainly due to premiums of US$395 million and acid prices, higher royalties of US$0.9 billion taxation from Discontinued operations. paid as part of the multi-currency hybrid debt mainly driven by prices for metallurgical coal For more information on Exceptional items repurchase programs completed during FY2021. and thermal coal and US$0.7 billion third-party refer to Financial Statements purchases mainly due to higher nickel prices. For more information on net finance costs note 3 'Exceptional items' and refer to Financial Statements note 22 'Net Financial Statements note 27 Higher depreciation and amortisation expense finance costs'.
'Discontinued operations'. ofUS$0.6billionreflectedthecommissioning of South Flank, Spence Growth Option, and the Total taxation expense of US$10.7 billion increased Revenue of US$65.1 billion increased by completion of the major smelter maintenance by US$0.1 billion from FY2021. The increase is US$8.2 billion, or 14 per cent from FY2021. at Olympic Dam. The increase also included primarilyduetohigherprofitsfromhigherprices This increase was mainly due to higher average US$0.4 billion of costs related to corporate offset by FY2021 reduction of US tax credits realised prices for metallurgical coal, thermal structureunification.Thiswaspartlyoffsetby related to Chilean taxes and tax losses assessed coal, copper and nickel, partially offset by lower lower impairments of US$2.0 billion mainly as not recoverable not repeating. average realised prices for iron ore. due to Potash and NSWEC asset impairment
For more information on income tax charges in the prior period. expense refer to Financial Statements note
6 'Income tax expense'.
Principal factors that affect Underlying EBITDA
The following table and commentary describes the impact of the principal factors1 that affected Underlying EBITDA for FY2022 compared with FY2021.
US$M
Underlying EBITDA for year 35,073 ended 30 June 2021 (Restated)
Net price impact:
Change in sales prices 6,594 Higher average realised prices for metallurgical coal, thermal coal, copper and nickel, partially offset by lower average realised prices for iron ore.
Price-linked costs (1,047) Increasedroyaltiesreflectinghigherrealisedpricesformetallurgicalcoalandthermalcoalandhigherthird-party concentratepurchasecostsreflectinghighernickelprices,partiallyoffsetbylowerroyaltiesforironore.
5,547
Change in volumes (1,212) Lower volumes across our operations associated with the impacts of COVID-19 (US$952 million), lower volumes at Olympic Dam as a result of the planned major smelter maintenance campaign, lower copper concentrator feed gradeatEscondida,lowerBMAvolumesduetosignificantwetweatherimpacts,andlowervolumesatNickelWest due to an unplanned smelter outage in the June 2022 quarter. This was partially offset by higher concentrate sales atSpencereflectingthecontinuedrampupoftheSpenceGrowthOptionandfavourableweathercomparedtothe prior year at WAIO.
Change in controllable cash costs (540) Higher costs across our operations due to the impacts of COVID-19 (US$277 million) reported as an exceptional item last year, higher costs at WAIO due to South Flank operational ramp-up expenditure and higher rail maintenance costs. Higher costs at Escondida due to an increase in material mined and workforce bonus payments for a new collective bargaining agreement. Higher costs at Spence due to a ramp-up of concentrate volumes, and a prior year one-off gain due to the cancellation of power contracts at Escondida and Spence. This was partially offset by favourable inventory movements at Olympic Dam, Nickel West, Escondida and Spence, and lower costs at BMA duetocostefficiencyinitiatives.
Change in other costs:
Exchange rates 1,180 Impact of movements in the Australian dollar and Chilean peso against the US dollar.
Inflation (867) ImpactofinflationontheGroup'scostbase.
Fuel, energy, and consumable (660) Predominantly higher diesel and acid prices. price movements Non-cash (3) (350)
Asset sales 2
Ceased and sold operations 1,668 ReflectsthecontributionofBMCpriortodivestmentandadecreaseincostsrelatedtotheclosureandrehabilitation provision for closed mines of US$297 million compared with the prior year.
Other items 446 Other includes higher recovery of freight costs caused by movements in the freight index on consecutive voyage charter (CVC) voyages and higher average realised sales prices received by Antamina, partially offset by the write-off of iron ore dormant stockpiles.
Underlying EBITDA for year 40,634 ended 30 June 2022
1 For information on the method of calculation of the principal factors that affect Underlying EBITDA, refer to OFR 11.2.
BHP Appendix 4E 2022 17

4 Financial review continued
Discontinued operations removed from the individual line items in the Group made a net cash payment of US$0.7 billion Consolidated Income Statement. The post-tax to Woodside in addition to US$0.4 billion in On 22 November 2021, the Group and loss of the Petroleum Discontinued Operation cash that was left in the BHP Petroleum bank Woodside signed a binding Share Sale is presented as a single amount in the line accounts to fund ongoing operations. The total Agreement (SSA) for the merger of the assets itemtitled'Profit/(loss)aftertaxationfrom cashtransferofUS$1.1billionreflectsthenet with Woodside. Woodside has subsequently Discontinued operations'. cashflowsgeneratedbyBHPPetroleumbetween acquired the entire share capital of BHP
1 July 2021 and Completion Date adjusted for
Petroleum International Pty Ltd (BHP Petroleum) Petroleum'scontributiontoBHP's2022financial dividends Woodside would have paid on the in exchange for new Woodside ordinary shares. resultscomprisedaUS$2.5billionprofit newly issued Woodside ordinary shares, had after taxation.
While the merger had an economic effective the merger completed on 1 July 2021. The net date of 1 July 2021, the Group continued to As consideration for the sale of BHP Petroleum, cash completion payment to Woodside is subject control the Petroleum assets and carry on the Group received 914,768,948 newly issued to a customary post-completion review, which business in the normal course for 11 months Woodside ordinary shares at Completion Date. may result in an adjustment to the amount paid. until 1 June 2022 (Completion Date). As such, On the Completion Date, the Group paid a The merger generated a net gain after tax of the Group recognises its share of revenue, fully franked in specie dividend in the form of US$8.2 billion that has been included in the expenses,netfinancecostsandassociated Woodside shares to eligible BHP shareholders. lineitemtitled'Profit/(loss)aftertaxationfrom income tax expense related to the discontinued Eligible BHP shareholders received one Discontinued operations' and treated as an operation until the Completion Date. Woodside share for every 5.5340 BHP shares exceptional item. they held on the Group's register at the record For further information refer to All income and expense items relating to the date of 26 May 2022. As part of completion and Financial Statements note 27 Petroleum Discontinued Operation have been inordertoreflecttheeconomiceffectivedate,the 'Discontinued operations'.
Cash flow
The following table provides a summary of the Consolidated Cash Flow Statement contained in Financial Statements 1.4, excluding the impact of foreign currency exchange rate changes on cash and cash equivalents.
2021 2020 2022 US$M US$M
Year ended 30 June US$M Restated Restated
NetoperatingcashflowsfromContinuingoperations 29,285 25,883 14,685 NetoperatingcashflowsfromDiscontinuedoperations 2,889 1,351 1,021
Net operating cash flows 32,174 27,234 15,706
NetinvestingcashflowsfromContinuingoperations (4,973) (6,325) (6,583) NetinvestingcashflowsfromDiscontinuedoperations (904) (1,520) (1,033) Net cash completion payment on merger of Petroleum with Woodside (683) -Cash and cash equivalents disposed on merger of Petroleum with Woodside (399) -
Net investing cash flows (6,959) (7,845) (7,616)
NetfinancingcashflowsfromContinuingoperations (22,734) (17,884) (9,713) NetfinancingcashflowsfromDiscontinuedoperations (33) (38) (39)
Net financing cash flows (22,767) (17,922) (9,752)
Net increase/(decrease) in cash and cash equivalents 2,448 1,467 (1,662)
Netincrease/(decrease)incashandcashequivalentsfromContinuingoperations 1,578 1,674 (1,611) Netincrease/(decrease)incashandcashequivalentsfromDiscontinuedoperations 1,952 (207) (51) Net cash completion payment on merger of Petroleum with Woodside (683) -Cash and cash equivalents disposed on merger of Petroleum with Woodside (399) -
Net operating cash inflows from Continuing mainly due to bond maturity payments and early 4.4 Debt and sources operations of US$29.3 billion increased repayment of hybrid bonds executed in the of liquidity byUS$3.4billion.Thisreflectshighernet FY2021 year. commodity prices, favourable foreign exchange For more information, refer to Financial Our policies on debt and liquidity management and strong underlying operational performance Statements note 20 'Net debt'. have the following objectives: partially offset by COVID-19 impacts.
Net cash flows from Discontinued operations - a strong balance sheet through the cycle
Net investing cash outflows from Continuing relate to the Group's Petroleum business that - diversificationoffundingsources operations of US$5.0 billion decreased by was merged with Woodside on 1 June 2022.
US$1.4 billion. This is primarily due to net - maintain borrowings and excess cash
For further information, refer to proceeds received of US$1.3 billion, including predominantly in US dollars
Financial Statements note 27 adjustment for working capital, related to the 'Discontinued operations'.
sale of BHP's 80 per cent interest in BMC to net Interest debt bearing and gearing liabilities,
Stanmore Resources Limited completed in the Underlying return on capital employed current period. (ROCE) of 48.7 per cent increased by 16.2 At the end of FY2022, Interest bearing liabilities For more information and a breakdown of percentage points (FY2021: 32.5 per cent) were US$16.4 billion (FY2021: US$21.0 billion) capital and exploration expenditure on a reflectingthesignificantincreaseinprofit and Cash and cash equivalents were commodity basis refer to OFR 10. aftertaxationexcludingnetfinancecostsand US$17.2 billion (FY2021: US$15.2 billion). exceptional items of US$6.4 billion. The increase This resulted in Net debt1 of US$0.3 billion, Net financing cash outflows from Continuing is also due to the disposal of the Group's which represented a decrease of US$3.8 billion operations of US$22.7 billion increased by Petroleum business and BMC reducing average compared with the net debt position at 30 June
US$4.9billion.Thisincreasereflectshigher capital employed. 2021.Thiswasprimarilyduetosignificant dividends paid to BHP shareholders of For more information on Assets under operatingcashflowsgeneratedfromstrong
US$10.0 billion offset by lower net repayments Construction refer to Financial Statements coal and copper prices and reliable operating of interest bearing liabilities of US$5.6 billion note 11 'Property, plant and equipment'. performance which more than offset the
1 Weusenon-IFRSfinancialinformationtoreflectourunderlyingfinancialperformance.Foradiscussiononthenon-IFRSfinancialinformationweuserefertoOFR11.Forthe definitionandmethodofcalculationofnon-IFRSfinancialinformationrefertoOFR11.1.ForthecompositionofnetdebtrefertoFinancialStatementsnote20'Netdebt'.
18 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
payment of record dividends. Gearing, which is In addition to the Group's uncommitted debt issuance programs, we hold the following committed the ratio of Net debt to Net debt plus Net assets, standby facility: was 0.7 per cent at 30 June 2022, compared
Facility Facility with 6.9 per cent at 30 June 2021. available Drawn Undrawn available Drawn Undrawn
2022 2022 2022 2021 2021 2021
During FY2022, gross debt decreased by US$M US$M US$M US$M US$M US$M US$4.6 billion to US$16.4 billion as at 30 June Revolving credit facility1 5,500 - 5,500 5,500 - 5,500 2022. This decrease includes a US$0.5 billion Total financing facility 5,500 - 5,500 5,500 - 5,500 repayment of 3.25 per cent USD senior notes that matured on 21 November 2021 and 1 During the year we completed a one-year extension of the facility which is now due to mature on 10 October US$0.7 billion repayment of 2.875 per cent 2026. The committed US$5.5 billion 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 USD senior notes that matured on 24 February exceed US$5.5 billion. As at 30 June 2022, US$ nil commercial paper was drawn (FY2021: US$ nil), therefore 2022. The reduction also includes US$2.3 billion US$5.5 billion of committed facility was available to use (FY2021: US$5.5 billion). A commitment fee is payable of favourable foreign exchange and interest on the undrawn balance and interest is payable on any drawn balance comprising a reference rate plus a margin.
The agreed margins are typical for a credit facility extended to a company with the Group's credit rating. rate adjustments, along with US$0.5 billion of coal and Petroleum leases disposed following For more information on the maturity profile of our debt obligations and details of our standby the coal divestments and merger of Petroleum and support agreements refer to Financial Statements note 23 'Financial risk management'. business with Woodside.
Information in relation to our material off-balance sheet arrangements, principally contingent Atthesubsidiarylevel,Escondidarefinanced liabilities, commitments for capital expenditure and commitments under leases at 30 June US$0.9 billion of long-term debt and borrowed 2022 is provided in Financial Statements note 11 'Property, plant and equipment', Financial US$0.3 billion in long-term debt. Statements note 21 'Leases' and Financial Statements note 32 'Contingent liabilities', respectively.
Funding sources Inouropinion,workingcapitalissufficientfor andconfirmedacreditratingofA-/A-1outlook
No new Group-level debt was issued in FY2022 our present requirements. Our Moody's credit stable(long-term/short-term).Creditratings and debt that matured during the year was ratinghasremainedatA2/P-1outlookstable are forward-looking opinions on credit risk. notrefinanced. (long-term/short-term)throughoutFY2022and Moody's and Standard & Poor's credit ratings
Moody'saffirmeditscreditratingon2June express the opinion of each agency on the ability Our Group-level borrowing facilities are not 2022. Our Standard & Poor's credit rating andwillingnessofBHPtomeetitsfinancial subjecttofinancialcovenants.Certainspecific changedfromA/A-1outlookstable(long-term/ obligations in full and on time. A credit rating financingfacilitiesinrelationtospecificassets short-term)toA/A-1CreditWatchnegative is not a recommendation to buy, sell or hold arethesubjectoffinancialcovenantsthatvary (long-term/short-term)on23August2021, securities and may be subject to suspension, from facility to facility, as is considered normal following the announcement of the proposed reduction or withdrawal at any time by an for such facilities. merger of our Petroleum business with assigning rating agency. Any credit rating Woodside. Upon completion of the merger, on should be evaluated independently of any
1 June 2022 Standard & Poor's lowered the other information.
Group's long-term credit rating by one notch, removed the credit rating from CreditWatch,
The following table expands on the net debt, to provide more information on the cash and non-cash movements in FY2022.
2022 2021 Year ended 30 June US$M US$M
Net debt at the beginning of the financial year (4,121) (12,044)
Netoperatingcashflows 32,174 27,234 Netinvestingcashflows (6,959) (7,845)
Free cash flow - Total operations 25,215 19,389 Carrying value of interest bearing liability net repayments 2,227 7,433 Net settlements of interest bearing liabilities and debt related instruments (2,474) (7,424) Dividends paid (17,851) (7,901) Dividends paid to non-controlling interests (2,540) (2,127)
Otherfinancingactivities1 (149) (234)
Other cash movements (20,787) (10,253) Fair value adjustment on debt (including debt related instruments)2 5 58 Foreign exchange impacts on cash (including cash management related instruments) 27 (1) Lease additions (736) (1,079) Divestment and demerger of subsidiaries and operations 492 -Others (428) (191)
Non-cash movements (640) (1,213)
Net debt at the end of the financial year (333) (4,121)
1 OtherfinancingactivitiesmainlycomprisespurchasesofsharesbyEmployeeShareOptionPlantrustsofUS$149million(FY2021:US$234million).
2 The Group hedges against the volatility in both exchange and interest rates on debt, and also exchange on cash, with associated movements in derivatives reported in Other financialassets/liabilitiesaseffectivehedgedderivatives(crosscurrencyandinterestrateswaps),inaccordancewithaccountingstandards.Formoreinformation,referto
Financial Statements note 23 'Financial risk management'.
Dividends dividend to US$1.75 per share (US$8.9 billion). shares received as consideration for the sale of Our dividend policy provides for a minimum In total, cash dividends of US$16.4 billion BHP Petroleum.
50 per cent payout of Underlying attributable (US$3.25 per share) have been determined
The total dividends determined in FY2022, profit(Continuingoperations)ateveryreporting for FY2022. These returns are covered by both cash and in specie, was US$36.0 billion period. The minimum dividend payment for the totalfreecashflowofUS$25.2billionin (US$7.11 per share). second half of FY2022 was US$1.15 per share. FY2022. In addition, an in specie dividend The Board determined to pay an additional of US$19.6 billion (US$3.86 per share) was amountofUS$0.60pershare,takingthefinal determined in FY2022, distributing the Woodside
BHP Appendix 4E 2022 19

5 Our assets
Western Australia Iron Ore
Western Australia
Existing operations Non-operational
5.1 Minerals Australia Port Hedland mines
Nelson Point Port
Minerals Australia includes operated assets Finucane Island
South Hedland Nimingarra in Western Australia, Queensland, New Goldsworthy Yarrie
Karratha Rail Line
South Wales and South Australia, focused
Marble Bar on iron ore, metallurgical coal, copper, Great nickel and energy coal. The commodities Northern Highway
Port Hedland - produced by our Minerals Australia assets Newman Rail Line are transported by rail and port and exported
Chichester to our global customers. Deviation
National Karijini
Park Yandi Mining Area C
Newman
South Flank East Orebody 18 Newman West Jimblebar
Newman Jimblebar
Iron ore appeals process. We are assessing 330 Mtpa expansion alternatives.
Western Australia Iron Ore Our near-term focus remains on sustainable production of 290 Mtpa of iron ore in the short
Overview term. Successful tie-in of capital projects, Western Australia Iron Ore (WAIO) is an including the port debottlenecking project, integrated system of four processing hubs is expected to enable growth in excess of and five open-cut operational mines in the 300 Mtpa in the medium term. Pilbara region of northern Western Australia, connected by more than 1,000 kilometres of rail Key developments in FY2022 infrastructure and port facilities. WAIO's production of 249 million tonnes (Mt) WAIO's Pilbara reserve base is relatively or 283 Mt on a 100 per cent basis was in concentrated, allowing development through line with the prior period, primarily reflecting integrated mining hubs connected to the mines continued strong supply chain performance and satellite orebodies by conveyors or spur and favourable weather compared to the prior lines. This approach seeks to maximise the period, offset by the impacts of temporary labour value of installed infrastructure by using the constraints relating to COVID-19 and planned same processing plant and rail infrastructure for major maintenance including the Jimblebar train several orebodies. load out and car dumper one. Our preventative maintenance programs continue to underpin the
Ore is crushed, beneficiated (where necessary) strength of the WAIO supply chain, delivering and blended at the processing hubs - Mt increased car dumper, reclaimer and ship loader
Newman operations (which has our beneficiation availability year-on-year and enabling record plant), Yandi, Mining Area C and Jimblebar sales volumes of 284 Mt (100 per cent basis).
- to create lump and fines products that are transported along the Port Hedland-Mt Newman South Flank ramp up to full production capacity rail line to the Finucane Island and Nelson Point of 80 Mtpa (100 per cent basis) is ahead of port facilities at Port Hedland. schedule with an average rate of 67 Mtpa achieved in the June 2022 quarter contributing There are four main WAIO joint ventures (JVs): to record production from the Mining Area Mt Newman, Yandi, Mt Goldsworthy (which C hub and record lump sales in FY2022. includes the new South Flank mining area) Yandi continues its end-of-life ramp-down as and Jimblebar. BHP's interest in each is 85 South Flank continues to ramp up. Yandi is per cent, with Mitsui and ITOCHU owning the expected to provide supply chain flexibility with remaining 15 per cent. The joint ventures are a lower level of production to continue for a unincorporated, except Jimblebar. few years.
BHP, Mitsui, ITOCHU and POSCO are also Testing of two new automated shiploaders participants in the POSMAC JV. BHP's interest has commenced at our Port Hedland in POSMAC is 65 per cent. The ore from the operations. This project is utilising 3D laser POSMAC JV is sold to the main joint ventures. technology, which is expected to support the All ore is transported on the Mt Newman JV full automation of WAIO's eight shiploaders by and Mt Goldsworthy JV rail lines. The Nelson CY2023. Together with planned autonomous Point port facility is owned by the Mt Newman haulage rollouts at both South Flank and JV and the Finucane Island facility is owned Newman West, these initiatives are expected by the Mt Goldsworthy JV. On 7 September to deliver significant safety, production and
2021, BHP received regulatory approval cost improvements as well as new job and to increase its export capacity at WAIO's development opportunities for our people. Port Hedland operations up to 330 million tonnes per annum (Mtpa) (100 per cent basis) subject to the outcomes of a standard
20 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
Olympic Dam BHP (BMA) Mitsubishi Alliance
North Queensland Queensland, Export Terminal Australia Bowen
Coober Pedy BMA Mine Collinsville Dalrymple BMA Terminal Bay
Goonyella Terminal
Olympic Dam Riverside
Mackay Rail
Broadmeadow
BMA Hay Point Coal Terminal
Port Augusta Moranbah
Caval Daunia Ridge Peak Downs Saraji Dysart
Port Lincoln
Adelaide
Rockhampton RG
Victor Harbor Tanna Blackwater
South Australia Kangaroo
Island Emerald
Olympic Dam Blackwater Gladstone Port Highway Olympic Dam
Copper Australia, Olympic Dam entered a Memorandum Significant wet weather impacts across most of Understanding with the South Australian BMA operations and labour constraints, including Olympic Dam Government, SA Water and OZ Minerals to COVID-19 related absences, which impacted progress a business case to examine the stripping and mine productivity, more than offset Overview building of a desalination plant and pipeline. record production at the Broadmeadow mine. Located in South Australia, Olympic Dam (BHP Olympic Dam has also entered into a renewable Following the automation of Daunia's truck ownership: 100 per cent) is one of the world's energy supply arrangement to enable the asset fleet in November 2021, the automation of most significant deposits of copper, gold, silver to draw energy supplies from a solar-wind hybrid Goonyella's pre-strip truck fleet was completed and uranium. It comprises underground and plant to reduce the Scope 2 greenhouse gas in March 2022 with the Goonyella coal truck fleet surface operations, and is a fully integrated emissions from its electricity consumption by expected to be fully autonomous by the end of processing facility from ore to metal. 2025. In FY2022, Olympic Dam became the December 2022. first Australian copper mine to be awarded the
Ore mined underground is hauled by an Copper Mark, an international accreditation that During the year, BMA commenced a project for automated train system to crushing, storage recognises responsible production practice. the fabrication and installation of a new berth and ore hoisting facilities or trucked directly to superstructure and shiploader at Hay Point the surface. The Oak Dam exploration program is continuing Coal Terminal, with a focus on improving the next stage resource definition drilling with six drill
Olympic Dam has a fully integrated metallurgical facility's operational resilience to withstand rigs now active on site, an increase from two drill complex with a grinding and concentrating significant weather events and increasing its rigs previously, after commencing the program in circuit, a hydrometallurgical plant incorporating throughput capacity.
May 2021. This program is focused on resource solvent extraction circuits for copper and definition and potential development pathways. In response to regular wet weather events, uranium, a copper smelter, a copper BMA is continuing to implement a range of wet refinery, including an electro-refinery and an .
Coal weather mitigation measures which are aimed electrowinning-refinery, and a recovery circuit for at improving the ability to operate in adverse precious metals. BHP Mitsubishi Alliance weather conditions. These measures include using drone mapping and rain on grid modelling
Key developments in FY2022
Overview to manage surface water flows to less impactful
Olympic Dam copper production decreased areas, improved road preparation and the use BHP Mitsubishi Alliance (BMA) (BHP ownership: by 33 per cent to 138 kilotonnes (kt) primarily of nitrogen filled tyres to enable operation in 50 per cent) operates seven metallurgical coal as a result of a major smelter maintenance lightning conditions. mines - Goonyella Riverside, Broadmeadow, campaign (SCM21) completed in January 2022 Daunia, Peak Downs, Saraji, Blackwater and Following the announcement of the change to which was delayed due to COVID-19 impacts Caval Ridge in the Bowen Basin, Queensland. the Queensland royalty regime from 1 July 2022, on the availability of the workforce. Near-record With the exception of the Broadmeadow we will assess the impact on BMA economic production in the June 2022 quarter followed the underground longwall operation, BMA's mines reserves and mine lives, as well as the impact successful ramp up of the smelter to full capacity are open cut. A small proportion of BMA's on production, jobs and the communities in April 2022. Average copper grade of 2.14 per production is sold as energy coal. BMA has of Central Queensland. This further cost cent was achieved in FY2022 as the majority of access to infrastructure, including a modern, pressure is expected to discourage investment, material mined is from the Southern Mine Area, multi-user rail network and owns and operates operational growth, job creation and local investment in which over the past few years its own coal-loading terminal at Hay Point, business spending across the state. enabled strong underground mine performance near Mackay. BMA has contracted capacity and a stable ore blend to be delivered to the at two other multi-user port facilities - the processing plant. The maintenance campaign Port of Gladstone (RG Tanna Coal Terminal) included the rebuild of the flash furnace and its and Dalrymple Bay Coal Terminal (DBCT). ancillary equipment, and refurbishment of the Following BHP's divestment of BHP Mitsui Coal acid plant, which has resulted in significant plant
Pty Ltd (BMC), BMA no longer has contracted improvements. Short-term focus is on delivering access to BMC's port allocations at DBCT and operational stability and improved production North Queensland Export Terminal (NQXT). performance, through debottlenecking existing facilities. Key developments in FY2022
In February 2022, to support future secure and BMA production decreased by 9 per cent sustainable water sources for regional South to 29 Mt or 58 Mt on a 100 per cent basis.
BHP Appendix 4E 2022 21

5 Our assets continued
New South Wales Energy Coal Nickel West
Western Gunnedah Australia
Tamworth Newman
Nickel West Port
Quirindi Highway
Mt Keith Cli_s Leinster Mt Keith Satellite Geraldton (Yakabindie)
Muswellbrook
Mt Arthur Kalgoorlie Smelter
Singleton Kambalda Concentrator
Perth
Maitland Fremantle Kwinana Refinery
NSW,
Australia Cessnock Ravensthorpe NSWEC Newcastle Port Albany
Rail
New South Wales Energy Coal BHP Mitsui Coal divestment Key developments in FY2022
Overview On 3 May 2022, we completed the divestment of Nickel West production decreased by 14 per our 80 per cent interest in BMC, a metallurgical centto77ktprimarilyduetothesignificant New South Wales Energy Coal (NSWEC) (BHP coal joint venture in Queensland operated impacts of COVID-19 related labour absences ownership: 100 per cent) comprises the Mt by BMC, to Stanmore Resources Limited. and workforce shortages, and unplanned Arthur Coal open-cut energy coal mine in the Stanmore Resources paid US$1.1 billion cash downtime at the oxygen plant leading to a 15-Hunter Valley. It has access to infrastructure in consideration at completion plus a preliminary day smelter outage in the June 2022 quarter. the Hunter Region, including a multi-user rail completion adjustment of approximately The nickel sulphate plant at the Kwinana nickel network and coal loading terminal access at US$200 million for working capital. The sum refineryhasbeencommissioned,withfirst the Port of Newcastle through Newcastle Coal of US$100 million cash remains payable to saleable production achieved in the December Infrastructure Group (BHP ownership 28 per BHP on 3 November 2022, with potential for an 2021 quarter. The plant is expected to produce cent) and Port Waratah Coal Services. additional amount of up to US$150 million in a approximately 100 kilotonnes per annum Key developments in FY2022 price-linked earnout payable to BHP in CY2024. (ktpa) of nickel sulphate for the lithium-ion The total cash consideration for the transaction battery industry.
NSWEC production decreased by 4 per cent isuptoUS$1.35billionplusthefinalcompletion to14Mtprimarilyreflectinglowervolumesdue adjustment amount. LeinsterB11,BHP'sfirstblockcave,continues to an increased proportion of washed coal to development whilst producing. Ore is being capitalise on higher margins for higher quality hoisted to the Leinster concentrator and the coals, COVID-19 related labour constraints undercut and drawbell development essential to which impacted stripping performance and mine this mining method are expected to be complete productivity and wet weather. Higher-quality Nickel West in CY2023. coals made up almost 90 per cent of sales Nickel West expanded its commitment to compared to approximately 60 per cent of sales Overview sourcing renewable energy through the in the prior year, generating a price premium of Nickel West (BHP ownership: 100 per cent) execution of power purchase agreements for nearly 150 per cent between high-quality and is a fully integrated nickel business located 100 per cent output of the 75MW Flat Rocks lower-quality coals in FY2022. in Western Australia, with three streams of concentrate. It comprises open-cut and Wind Farm and for 50 per cent of the 100MW On 16 June 2022, we announced that we underground mines, concentrators, a smelter Merredin Solar Farm. The combined output will retain NSWEC in our portfolio, seek the andrefinery.NickelWestownsthemajorityof from these two renewable farms is expected to relevant approvals to continue mining beyond tenements of known resource in the Agnew- generate the equivalent of greater than 100 per its current mining consent that expires in Wiluna basin in Western Australia. cent of the current power requirements of Nickel CY2026 and proceed with a managed process West's Kalgoorlie nickel smelter, Kambalda to cease mining at the asset by the end of Disseminated sulphide ore is mined at the nickelconcentratorandKwinananickelrefinery FY2030. A review was announced in August Mt Keith open-pit operation and Mt Keith from CY2024.
2020 and a trade sale process for NSWEC was Satellite mine (Yakabindie) and crushed and
TransAlta has begun construction at the conducted, however the process did not result in processed onsite to produce nickel concentrate.
NorthernGoldfieldsSolarProject,alarge-scale, a viable offer. Our assessment of the resource Nickel sulphide ore is mined at the Cliffs and off-grid mining solar and battery energy storage economics,geotechnicalprofileandfuture Leinster underground mines and processed systems, to help power Nickel West's Mt Keith investment requirements led us to determine that through a concentrator and dryer at Leinster. and Leinster operations. The solar project due continued mining in the near term and moving to A concentrator plant in Kambalda processes ore to be commissioned in early 2023, is expected closureinFY2030providestheoptimalfinancial and concentrate purchased from third parties. to reduce Scope 2 emissions by 12 per cent at outcome when compared to alternate options.
The three streams feed the Kalgoorlie nickel these operations. Continuation of mining to the end of FY2030 is expected to afford eight years to work with our smelter,whichusesaflashfurnacetoproduce people, state and federal governments and local nickelmatte.TheKwinananickelrefinerythen communities in the Hunter Valley region on an turns this into nickel powder, briquettes and equitable transition approach that supports long- nickel sulphate. term community sustainability.
22 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
Escondida and Pampa Norte Jansen Potash Project
PERU Chile Saskatchewan, Canada
Mine BHP project Prince Albert
5.2 Minerals Americas BHP mineral
Cerro leases
The Minerals Americas asset group includes Colorado projects, operated assets and non-operated Iquique BOLIVIA Wolverine joint ventures in Canada, Chile, Peru, the Pica Burr United States and Brazil. Saskatoon
Pacific Jansen
Our operated copper assets in the Americas, Ocean CHILE
Young
Escondida and Pampa Norte, are open-cut Yorkton
Boulder mines that produce copper concentrate and Tocopilla copper cathodes. The non-operated assets Calama in the Minerals Americas portfolio are open- Spence Melville
Moose Jaw Regina cut mines that produce copper (Antamina) Mejillones and iron ore (Samarco). We have a 45 per
Antofagasta cent interest in the Resolution copper ARGENTINA project in the United States and a 100 per Minera Escondida Assiniboia Weyburn cent interest in the Jansen Potash Project in Canada. The commodities produced by our Minerals Americas assets are transported to port by pipeline, rail or road and exported to Escondida Jansen Potash Project customers around the world.
Overview Overview
Escondida (BHP ownership: 57.5 per cent) is a The Jansen Potash Project (BHP ownership: leading producer of copper concentrate, with by- 100 per cent) is located about 140 kilometres products including gold and silver, and cathodes east of Saskatoon, Canada. located in the Atacama Desert in northern Chile.
Jansen's large resource provides the opportunity Escondida's two pits feed three concentrator to develop the project in stages, with Jansen plants, as well as two leaching operations (oxide Stage 1 (Jansen S1) expected to produce and sulphide). approximately 4.35 Mt of potash per annum on completion in CY2027 and sequenced
Key developments in FY2022
Escondida copper production decreased by brownfieldexpansionsofupto12Mtpa 6 per cent to 1,004 kt primarily due to higher (approximately 4 Mtpa per stage). than expected concentrator feed grade decline BHP holds mineral leases covering around of 4 per cent, public road blockades affecting 9,600 square kilometres in the Saskatchewan access to site for both workers and supplies, and potash basin. the impact of a reduced operational workforce
Key developments in FY2022 from COVID-19. Despite these challenges, Excavation and lining of the production service Escondida achieved record material mined shafts was completed in June 2022. forthe2022financialyearandnear-record concentrator throughput of 367 ktpd. On 17 August 2021, BHP approved Pampa Norte US$5.7 billion (C$7.5 billion) in capital expenditure for Jansen S1. Jansen S1 includes Overview the design, engineering and construction of an underground potash mine and surface Pampa Norte (BHP ownership: 100 per cent) infrastructure, including a processing facility, a consists of two assets in the Atacama Desert in product storage building and rail infrastructure. northern Chile - Spence and Cerro Colorado.
Jansen S1 product is intended to be shipped Spence produces copper cathodes and copper to export markets through Westshore, in Delta, concentrate, with by-products including gold, British Columbia. The project includes funding silver and molybdenum. for the required port and rail infrastructure. Cerro Colorado produces copper cathodes. First ore is targeted in CY2027, with construction Its current environmental licence expires at the expected to take approximately six years, end of CY2023. followed by a ramp-up period of two years. Key developments in FY2022 Opportunities to bring forward Jansen S1 continue to be assessed. In addition to Jansen Pampa Norte copper production increased by S1, study of Jansen Stage 2 (Jansen S2)
29percentto281ktreflectingtherampupofthe has commenced. Spence Growth Option, partially offset by the impact of lower cathode production as a result of a 14 per cent decline in Pampa Norte stacking feed grade.
The molybdenum plant at Spence produced and solditsfirstbatchofmolybdenumconcentrate during Q4 FY2022. During May 2022, the new copper concentrator in Spence was inaugurated. The concentrator will operate on desalinated seawater and is powered from renewable sources, and allow the operation to be extended by 50 years.
BHP Appendix 4E 2022 23

5 Our assets continued
Antamina 0 50km Resolution Copper Samarco
East Clear Creek
Arizona, USA
Minas Gerais, Tangle Creek Espírito Santo,
17 Brazil
Turkey Creek
Cave Creek Resolution Copper Samarco
Route 1st pipeline Huari 60 2nd pipeline
Phoenix
Huaraz Nova Era - 3rd pipeline
Antamina Belo
San Marcos mine 60 Horizonte Antônio (Guilman Dias -Amorim Pipeline operational; 2
Oak Flat (Main oices) hydroelectric plant) pipelines 1 and 3
Resolution Copper non-operational
Huarmey
Dripping Springs
Punta Mt Graham Mining Lease Vitória Lobitos 10 (Sales oice)
Mariana -
Ouro Preto Muniz Freire Mt Lemmon (Germano (Muniz Freire operational hydroelectric Anchieta Tucson Mica Mountain unit) plant) (Operational
Kitt Peak unit and
Huari ocean terminal Province, USA 10 at Ponta Ubu)
Ancash,
Peru 19
Antamina mine Appleton Ranch
Port
Pipeline Lima MEXICO
Non-operated minerals joint and consultation with Native American tribes. 5.3 Commercial ventures The project team has been cooperating with the
US Forest Service as it completes this additional BHP's Commercial function seeks review. During this time, Resolution has sought to maximise commercial and Copper to deepen its engagement and relationships with local communities and Native American tribes. social value while minimising
Antamina costs across the end-to-end Overview Iron ore supply chain.
Antamina (BHP ownership: 33.75 per cent) The function is organised around the following is a large, low-cost copper and zinc mine in Samarco core activities in our value chain, supported by north central Peru with by-products, including credit and market risk management and strategy molybdenum and silver. Antamina is operated Overview and planning activities. independently by Compañía Minera Antamina S.A. Samarco (BHP ownership: 50 per cent) comprises a mine and three concentrators Sales and Marketing
Key developments in FY2022 located in the Brazilian state of Minas Gerais, Sales and Marketing connects BHP's resources Antamina copper production increased by 4 per and four pellet plants and a port located to market through commercial expertise, sales cent to 150 kt (BHP share), reflecting higher in Anchieta in the state of Espírito Santo. and operations planning, customer insights and copper head grades. Zinc production decreased Three 400-kilometre pipelines connect the proactive risk management. It presents a single by 15 per cent to 123 kt (BHP share) reflecting mine site to the pelletising facilities. Samarco is face to markets across multiple assets, with a lower zinc head grades. operated independently by Samarco Mineração view to realising maximum value for our products In April 2022, Antamina submitted to Peruvian S.A. Samarco's main product is iron ore pellets. and supporting sustainability initiatives in our authorities a modification of the Environmental Pellets are independently marketed by Samarco downstream supply chain.
Impact Assessment to sustain mine life from and sold to customers around the world.
Maritime and Supply Chain
2028 to 2036 entirely within Antamina's current Excellence
Key developments in FY2022 operational area.
Samarco produced 4 million tonnes of pellets Maritime and Supply Chain Excellence manages and ore fines in FY2022 (BHP Share), BHP's enterprise-wide maritime transportation Resolution Copper strategy and the chartering of ocean freight operating at 26 per cent of its total 26 Mtpa production capacity following the resumption to meet BHP's inbound and outbound
Overview of operations in December 2020. Studies to transportation needs. It focuses on supply Resolution Copper (BHP ownership: 45 per increase production to 100 per cent by FY2029 chain excellence and sourcing cost-efficient cent), located in the US state of Arizona, is are progressing. marine freight in addition to partnering within operated by Rio Tinto (55 per cent ownership the maritime ecosystem to reduce the GHG interest). Resolution Copper is one of the The progressive decharacterisation of Samarco's emissions intensity of BHP-chartered shipping largest undeveloped copper projects in the upstream tailings dam structures is on track of our products. It also seeks to manage supply world and has the potential to become one of and planned to be completed by FY2029. chain risk by vetting the safety performance of the largest copper producers in North America. These structures have been certified by the ships loading BHP cargo.
The Resolution Copper deposit lies more than independent third parties as stable, are following
1,600 metres beneath the surface. local stability and monitoring requirements, and Procurement have not received tailings since 2015.
Our global Procurement team connects asset
Key developments in FY2022
Broader studies to unlock solutions for Samarco teams and suppliers to procure the goods and During FY2022, Resolution continued the to operate without tailings dams beyond FY2030 services used by our projects, operated assets engineering and permitting phase of the project. are continuing. and functions globally. Procurement partners with The project is subject to a federal permitting our suppliers to optimise equipment performance,
For more information on the Fundão process led by the US Forest Service. The US reduce operating costs, optimise working capital dam failure and the response
Forest Service published a Final Environmental refer to OFR 8. and generate social value. Through innovation we Impact Statement in January 2021, which work with suppliers to reduce the GHG emissions was rescinded in March 2022 for the stated intensity of inbound goods and services and purpose of conducting additional analysis the operational GHG emissions of our operated assets. Procurement manages supply chain
24 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
risk, fosters supplier innovation and develops Three times a year we ask our employees and In Minerals Americas, the focus has been sustainable relationships with global suppliers contractors about their experiences working with on implementing an integrated approach to and local businesses in the communities where BHP via a short Engagement and Perception capabilitybuildingthroughdefiningframeworks we operate. Survey. After each survey, our team leaders and programs for workforce upskilling and assess what is working well, what they can reskilling as we transition into autonomous and Warehousing, Property Inventory, Logistics learn from others and take action to address operations at our operated assets. Early career improvementareas.Despitesignificant programs (for graduates and trainees in roles Warehousing, Inventory, Logistics and Property absences and workplace disruptions caused such as operators, maintainers, supervisors designs and operates our inbound supply chain by COVID-19, we maintained a high response and engineers) are also a key area to build networks for the delivery and warehousing rate of 82 per cent of employees in March 2022 a sustainable base of diverse talent with the of spare parts, operating supplies and (81 per cent in February 2021) and achieved required capabilities. We will also continue consumables, and designs and operates our a strong engagement score of 82 per cent building partnerships with training and officeworkspacesglobally. favourable (84 per cent in February 2021). learninginstitutionstodevelopthoseidentified
In particular, 80 per cent of our employees capabilities for the future.
Market Analysis and Economics and 88 per cent of our contractors (from 7,932 The talent market is dynamic and increasingly Our Market Analysis and Economics team responses) would recommend BHP as a great competitive. We continue to work on our develops BHP's proprietary view on the outlook place to work, which places us in the top attraction and retention strategies through for commodity demand and prices, as well as third of global organisations as benchmarked strategic workforce planning, talent acquisition, our input costs, the world economy, climate by Qualtrics. inclusion and diversity, internal talent changeandfinancialmarkets.Theteamworks
In FY2022, we transformed our approach management, employee mobility and our total with our Procurement, Maritime and Supply to developing frontline leadership with the value proposition.
Chain Excellence, and Sales and Marketing launch of BHP Leadership Programs for sub-functions to help optimise end-to-end We believe we are strongly and competitively supervisors, superintendents and managers. commercial value, and with the Portfolio Strategy placed in the market and regularly review our Through a combination of assessment, and Development and External Affairs functions positioning and total reward strategies, with workshops, experiences and coaching, the to identify and respond to long-run strategic culture being our competitive edge. We have suite of programs is designed to identify and changes in our operating environment. deployed new proactive recruitment methods, develop leaders and prepare them to take including recruitment marketing and talent Global Business Services on greater responsibility. We anticipate more pooling, strategies for securing critical skills than 1,000 leaders each year will develop Global Business Services unites shared services and made improvements to our recruitment their ability through these programs to lead and repeatable process activity across the Group processes to increase speed while maintaining inclusively, ethically and through complexity into a single operation. Commencing operation our focus on the suitability of candidates. as they play their critical role to deliver in FY2022 with the BHP Operating System continuous improvement. Inclusion and diversity and with process transformation capabilities at its core, it has the mandate to aggregate, Our Operations Services business unit provides We believe that an inclusive and diverse operate and improve end-to-end processes maintenance and production services across workforce promotes safety, productivity and on behalf of assets and functions to drive our Minerals Australia assets. It employs people wellbeing, and underpins our ability to attract operational excellence. on a permanent basis and supports skills and retain employees. Our systems, processes building through a structured coaching and and practices are designed to support fair
6 People and culture in-fieldtrainingprogramdesignedtoenable treatment for our people. our workforce to deliver consistent equipment
Our employees and contractors, Our Inclusion and Diversity Position Statement operation and maintenance that balances safety, around 80,000 globally, are the confirmsourvision,commitmentand maximum productivity and equipment reliability. contributions to inclusion and diversity. We have foundation of our business. Operations Services had more than 3,500 further work to do to achieve this goal.
We aim to attract, recruit, empower and retain employees as at 30 June 2022 and is expected the best people. to continue to grow. Our strategy is to focus on attracting and retaining a workforce that is truly representative To help bolster Australia's skills base and create To enable our people to perform at their best, of society. We intend to do this by addressing new career pathways into the mining sector, safety is our highest priority and we invest in the barriers and impacts of bias and racism the BHP FutureFit Academy located in Perth, technology and innovative and effective ways to experienced by people within underrepresented Western Australia and Mackay, Queensland, manage risk, streamline processes and improve groups by listening to their experience combined provides a pathway to join Minerals Australia productivity. We offer competitive remuneration with insights from our engagement surveys and through an accredited maintenance and and invest in development programs to build therecentlydeployedself-identificationsurvey, production traineeship or a trade apprenticeship. capability and improve performance. 'Tell Us About You'. So far, around 10,000 people
Oncetrainedandqualified,employeesmove haveconfidentiallysharedwithusinformation to one of our Australian operations.
Developing our capabilities about themselves (a 22 per cent response rate), The FutureFit Academy training includes the and an enabled culture which is a good starting point and we expect to skills required for an increasingly technological To drive continuous improvement, we see participation grow over time. Our intention and digitised world and focuses on our safety, respect people's differences and encourage istocontrastthisdatawithnational/regional respectful behaviour, culture, and productive self-accountability, a hunger to learn and a census data over time to measure how diverse ways of working. This helps FutureFit graduates commercial mindset. we are against the general population. to be 'BHP site ready' when they graduate.
One of the ways we seek to achieve this is by In FY2022, the FutureFit Academy trained more To help mitigate gender pay disparities, we applying the BHP Operating System (BOS) than 417 apprentices and trainees, with 175 have taken steps to reduce potential bias in practices to help build leader capability. BOS is a graduating. In FY2023, the FutureFit Academy remuneration at the time of recruitment and way of leading and working that focuses on the is expanding the program to include Western we conduct an annual gender pay review, safety of our people, value for our customers, Australia Iron Ore (WAIO) and Nickel West. the results of which are reported to the BHP setting clear goals and measuring progress and a New curricula will be offered, including belt Remuneration Committee. mindset of zero waste. In FY2022, we continued splicing, electrical and auto electrical. The belt to train our leaders through BOS learning splicing program will commence at Newman in academies to improve operational capability August 2022. For more information on BHP's and culture, with more than 3,000 people FutureFit Academy see our case study at bhp. leaders participating. com/people.
BHP Appendix 4E 2022 25

6 People and culture continued
Respect is one of our values under Our Charter We increased the representation of women To further accelerate female representation in and is fundamental to building stronger teams working at BHP in FY2022 by 2.5 percentage FY2022, we: and being an inclusive and diverse workplace. points, with almost 8,000 more female - continued market mapping to proactively For some people, this has not been their employees at the end of the year than in 2016. target people or groups of people not actively experience of working at BHP and we are At 30 June 2022, women represented 32.3 per looking to work for BHP or our industry determined to address this. cent of our employee workforce, up from 17.6 - implemented a 'Tell Us About You' survey, our
For information on our approach per cent when we set our aspirational goal. firstself-identificationsurveytomeasurethe to addressing workplace sexual Weareconfidentofachievinggenderbalanceby rich diversity of our workforce harassment refer to OFR 7.5. the end of FY2025.
- integrated inclusive leadership capabilities at Our ambition to achieve a more diverse and The percentage of employees newly hired to work all levels of our leadership learning curriculum inclusive workplace is focused on four areas: for BHP in FY2022 was 52.7 per cent male and - embedded the Ways of Working Framework
47.3 per cent female. This is a marked increase
- embeddingflexibilityintothewaywework to guide employees and leaders to 'Work - encouraging and working with our supply on our baseline for our aspirational goal, which where you get great outcomes' chain partners to support our commitment was 10.4 per cent female hired in FY2015.
- launched Phase 3 of the Respectful Behaviour to inclusion and diversity We also improved our representation of women campaign to reinforce our zero tolerance in leadership by 2.7 percentage points compared - uncovering and taking steps to mitigate potential of sexual harassment, racism and bullying to FY2021, with 27.9 per cent female people bias in our systems, policies and processes including global 'Stop for Safety' sessions for leaders at the end of FY2022. and in behaviours through the Respectful all employees and contractors Behaviour campaign
The table below shows the gender composition of our employees, senior leaders and the Board over the last
- ensuring our workplaces are safe for and threefinancialyears1,2 attractive to a diverse range of people 2022 2021 2020
Gender balance1 Female employees 12,674 11,868 9,961
In CY2016, we announced our aspiration to Male employees 26,536 27,953 27,557 achieve gender balance within our employee Female people leaders 1,695 1,439 1,157 workforce globally by the end of FY2025, which
Male people leaders 4,380 4,276 4,002 wedefineasaminimum40percentwomen and40percentmeninlinewiththedefinitions Female Executive Leadership Team members 5 5 4 used by entities such as the International Male Executive Leadership Team members 5 5 6 Labour Organisation and HESTA. Female Board members 4 4 3 Male Board members 8 8 9
1 Based on a 'point-in-time' snapshot of employees 1 Based on a 'point-in-time' snapshot of employees as at 30 June 2022, as used in internal management as at 30 June 2022, including employees on reporting for the purposes of monitoring progress against our goals. In FY2021 and FY2022 this includes extended absence, as used in internal management employees on extended absence, 660 at 30 June 2021 and 948 in 2022, who were previously not included reporting for the purposes of monitoring progress in the active headcount. against our goals. This does not include contractors. 2 For FY2022, this does not include employees who left BHP via the merger of BHP Petroleum and Woodside Peopleleadersasdefinedasemployeeswithone (approximately 1,000 employees) or the sale of BHP Mitsui Coal to Stanmore Resources (approximately or more direct report. 500 employees).
26 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
Indigenous employment Indigenous employee representation1
Indigenous peoples are critical partners Location Period Target (%) 30 June 2022 (%) of BHP's operations around the world. Minerals America operations employees in Chile By the end of FY2026 10.0 8.7
We recognise, as part of our Global Indigenous 2
Minerals Australia operations employees in Australia By the end of FY2025 8.0 8.3
Peoples Strategy, that we can contribute to the
Jansen Potash Project and operation employees By the end of FY2027 20.0 7.2 economic empowerment of Indigenous peoples 3 in Canada through providing opportunities for employment, training, procurement and by supporting 1 Point in time data at 30 June 2022.
Indigenous enterprises. 2 Indigenous employee representation overall in Australia as at 30 June 2022 was 7.4 per cent including Minerals Australia operations, 8.3 per cent Indigenous, and non-operational locations, 2.5 per cent Indigenous.
We have set targets to increase Indigenous 3 Indigenous workforce representation at Potash Jansen Project and operations of 20.7 per cent includes employment in our Minerals Australia operations, employees, 7.2 per cent Indigenous, and contractors, 23.8 per cent Indigenous.
Minerals Americas operations in Chile and our Jansen Potash Project and operations in Canada. through lifestyle-friendly rosters with some sites Minerals Americas participated in two collective within WAIO moving away from two weeks bargaining processes during FY2022: In our Minerals Australia operations, we on(sevendays,sevennights)/oneweekoff have achieved the Australian Indigenous - Escondida: O&M union N°1 of 2,333 employees rosterstoeightdayson(dayshift)/sixdaysoff employment target of 8 per cent ahead of signed in August 2021 for 36 months. thensevendayson(nightshift)/sevendays schedule (8.3 per cent of employees at 30 June - Cerro Colorado: O&M union N°1 of 705 off rosters.
2022)throughsignificanteffortwithtargeted employees signed in September 2021 for Indigenous recruitment campaigns, a tailored Part-time and job-share arrangements have 36 months. application process focused on the cultural increased including at senior levels. Negotiations to renew the collective agreements needs of applicants and BHP's commitment to with BHP Chile's Specialists & Supervisors the regional communities where we operate. Employee relations A key focus in Australia now is the retention Our four key focus areas for employee Union (150 employees) and Escondida's and development of our Indigenous workforce. relations are: Intermel Union (140 employees) are expected to New targets have been set and engagement - creating relations with our workforce based be completed in FY2023. strategies are being developed as part of There were no legal industrial actions or strikes on a culture of trust and cooperation BHP's next Minerals Australia Reconciliation - negotiating where there are requirements to at Minerals Americas operated assets, Minerals Action Plan. collectively bargain (and recognising the rights Australia operated assets or our Jansen Potash From FY2023 the targets for Indigenous Project and operations in Canada in FY2022. employee representation are 9.7 per cent by of our workforce to collectively bargain) - closing out agreements with our workforce Impacts and challenges from COVID-19 the end of FY2027 in our Minerals Australia in South America and Australia, with no related to our people operations, 10 per cent by the end of FY2025 lost time due to industrial action, to the The rising numbers of COVID-19 cases and in our Minerals Americas operations in Chile extent possible measures taken by governments within Australia and 20 per cent by the end of FY2026 in - ensuring we comply with legal obligations and Chile to control its spread in FY2022 our Jansen Potash Project and operations and regional labour regulations resulted in continued changes to working in Canada. patterns for our employees and contractors For information on our 2030 goals In Australia, we are monitoring potential related to Indigenous partnerships and unplanned absences. As a result of the industrial relations legislative reform after the refer to OFR 7.13. COVID-19 restrictions, we implemented controls Government indicated an intention to introduce across our business to reduce the number of draft legislation during CY2022 that could LGBT+ inclusion workers required onsite and manage planned have a material impact on our cost of labour and unplanned absences, such as temporary Our LGBT+ ally employee inclusion group, and industrial landscape and negatively remote working arrangements, increased Jasper, established in 2017, is a natural impact productivity. health and safety requirements, asset-based extension of our inclusion and diversity
MineralsAustraliaparticipatedinfivecollective vaccination campaigns, self-testing and aspirationsandreflectsourvalueofRespect bargaining processes during FY2022: office-testingcampaignsandhybridworking. under Our Charter.
In Australia we also introduced vaccination
- BHP Iron Ore Pty Ltd commenced bargaining
Its membership base grew to around 2,000 in against COVID-19 as a site access requirement in January 2022 for the BHPIO Locomotive FY2022, with eight regional chapters globally. after consultation with employees and unions.
Drivers Agreement 2022, which is ongoing.
In Canada, all employees are required to remain In FY2022, we continued to close gaps for - OS MCAP Pty Ltd recommenced bargaining fully vaccinated against COVID-19 to perform LGBT+ inclusion, such as releasing guidelines in December 2022 for the Operations work at site including a third booster shot. and implementing support for transgender Services Production Agreement 2018, and gender diverse recruitment, and updated which is ongoing. With state border closures restricting the our parental leave policy to be more inclusive mobilisation of employees and contractors to
- OS ACPM Pty Ltd recommenced bargaining by making language more gender neutral our operating sites in Australia at times during in December 2022 for the Operations and ensuring it applies to birth, long-term FY2022, changes to rosters and hours of work Services Maintenance Agreement 2018, guardianship and adoption aligned to changes were made to ensure operational requirements which is ongoing. in Australia. for essential work were met. There has also
- BHP Coal Pty Ltd commenced bargaining beenafurtherextensionofflexibleworkoptions
Flexible working in February 2021 for the BMA Enterprise for employees and contractors in Australia in Ourflexibleworkinghasevolvedthroughoutthe Agreement 2021, which is ongoing. response to government-imposed lockdowns COVID-19 pandemic and we have embedded - BM Alliance Coal Operations Pty Ltd preventing them from attending their normal a hybrid working model for employees in non- commenced bargaining in June 2022 place of work. Flexible work options, including operationalroles,allowingofficeandhome- for the BMACO Broadmeadow Mine staggered start times, working from home and based working arrangements, while requiring 30 Agreement 2022, which is ongoing. adapted working hours were in place across to50percentofworktobebasedintheoffice, manyofourofficesettings. depending on the nature of work. For information on the impact of COVID-19 on our workforce refer to OFR 7.6.
We understand many site-based employees are in roles that cannot be performed remotely. More information on people is available
Wecontinuetoseektoprovideflexibleworking at bhp.com/people.
BHP Appendix 4E 2022 27

7 Sustainability
Our commitment to social value reflects our purpose and BHP's role in supplying products essential for the transition of society towards a more sustainable future, a role that we seek to perform in a responsible way.
7.1 Our sustainability Our approach to sustainability is overseen areas and are underpinned by short-term metrics approach by BHP's Board. The Board's Sustainability and milestones. We are working to embed them Committee advises and assists the Board through asset plans and capital allocation. in its oversight of the Group's health, safety, Our management of sustainability helps The key changes compared to the previous environmental and community (HSEC) matters. generate social value. We also know our five-year sustainability targets include a new stakeholders and partners are increasingly For more information about the time horizon of seven years to align with BHP's
Sustainability Committee and its work focused on our sustainability performance and 2030 climate change targets and goals and refer to the Corporate Governance use it as a key determinant in assessing BHP Statement to be released in reference timelines set out in global frameworks and our industry. We strive to continuously September 2022. and agreements, such as the UN Sustainable improve and exceed these expectations. Development Goals, the Paris Agreement, Sustainability targets and goals the Convention of Biological Diversity and the A commitment to sustainability sometimes We set clear direction through our social Global Goal for Nature. The goals provide requires us to make difficult choices and we value framework and we embed and measure opportunities for BHP to engage and work seek to gain and maintain the support of all sustainability performance through our public in partnership with others, build capability our stakeholders and partners as we manage sustainability targets and goals. We completed and co-design approaches to deliver positive complex issues. We respect the right of every our most recent five-year sustainability targets outcomes and shared prosperity for people and stakeholder and partner to challenge the choices in FY2022. our planet. They are reinforced by our continued we make and recognise that by listening to commitment to pursue zero significant health, their views and concerns BHP becomes a For more information on our performance against these targets safety, environment, community or supply chain better company. refer to OFR 7.3. events and to making a social investment of at
We define our approach to sustainability through least 1 per cent pre-tax profit.¹
This year we developed new 2030 goals under
Our Charter and it is governed through the Our 1 To date, our voluntary social investment has been the pillars of People, Planet and Prosperity in line
Requirements standards. These standards calculated as 1 per cent of the average of the with the World Economic Forum and the United previous three years' pre-tax profit. For FY2023-describe our mandatory minimum performance Nations (UN) Development Program, following FY2030, our social investment will be assessed as requirements and provide the foundation to a total over the seven-year goals period to FY2030, extensive internal and external engagement develop and implement management systems rather than calculated as an average of the previous
(refer to OFR 2.2). The 2030 goals comprise three years' pre-tax profit. at our operated assets. overarching long-term goals across six key focus
28 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
Equitable change and transitions Our approach to equitable change and experienced, including for Indigenous transitions will: peoples, and recognise that plans and We recognise that changes in our business, solutions must take into account the particular ranging from the opening to the closing of a - Recognise our responsibility to our workforce strengths of each community and tackle the mine, can have significant, and sometimes - where a major change in our business unique impacts they experience. disproportionate, effects on communities where is expected to affect our workforce, we will we operate. We also recognise that these same engage in meaningful dialogue and support - Recognise that the economic, social and communities are navigating broader shifts those impacted. environmental dimensions of sustainable in the global economy, such as the energy development are interrelated - we will aim
- Create opportunity for meaningful engagement transition and digital disruption, and that the to avoid or mitigate adverse environmental and co-designed processes - we will seek scope and nature of these transitions will impacts of change and transitions, to develop relationships with stakeholders continue to evolve. while pursuing opportunities to build and partners, including government, local climate resilience and environmentally We are committed to working with communities businesses, community members, suppliers, sustainable communities. we are a part of in periods of change and Indigenous peoples and workers, that support transition to achieve long-term mutual value. understanding of the issues and co-creation of Given change and transitions will involve solutions. We will communicate transparently multiple actors, we will seek to be a catalyst to Our approach will be grounded in our on the types of changes the business needs to bring people together and use our relationships existing strategies, policies and frameworks make and enable active participation of those to advocate for equitable change and transitions in relation to our people, the environment, most impacted. in line with the above principles. communities and other stakeholders and
- Recognise the impacts associated with 1 These include our Indigenous Peoples partners. The interconnection of these policies
¹ gender, land connectedness and social and Framework, Social Value Framework, Inclusion and frameworks aims to ensure change and economic vulnerability - we will not assume and Diversity Statement, Climate Change transitions are equitable and deliberately Strategy, approach to the environment, Closure all people are affected similarly. We will seek Strategy, Human Rights Policy Statement, and considered across the life cycle of our business to understand how impacts may be differently approach to community engagement. and for the communities where we operate.
Our sustainability approach - TCFD index1
Disclose the organisation's governance around climate-related risks and opportunities. a) Describe the board's oversight of climate-related risks and opportunities. OFR 7.8 b) Describe management's role in assessing and managing climate-related risks and opportunities. OFR 7.8
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning where such information is material. a) Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term. OFR 7.8 b) Describe the impact of climate-related risks and opportunities on the organisation's businesses, strategy, and OFR 7.8; 9; 9.1 financial planning. Financial Statements 1.5; 1.6 c) Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, OFR 7.8; 9; 9.1 including a 2°C or lower scenario. Financial Statements 1.5; 1.6
Disclose how the organisation identifies, assesses, and manages climate-related risks. a) Describe the organisation's processes for identifying and assessing climate-related risks. OFR 7.8; 9 b) Describe the organisation's processes for managing climate-related risks. OFR 7.8; 9 c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the OFR 7.8; 9 organisation's overall risk management.
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. a) Disclose the metrics used by the organisation to assess climate-related risks and opportunities OFR 7.8 in line with its strategy and risk management process. Remuneration Report 3.2 b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. OFR 7.8 c) Describe the targets used by the organisation to manage climate-related risks and opportunities and performance OFR 7.3; 7.8 against targets.
- GHG emissions: absolute Scope 1, Scope 2, and Scope 3; emissions intensity. OFR 7.8
- Transition risks: amount and extent of assets or business activities vulnerable to transition risks. OFR 7.8
- Physical risks: amount and extent of assets or business activities vulnerable to physical risks. OFR 7.8
- Climate-related opportunities: proportion of revenue, assets, or other business activities aligned with climate- OFR 7.8 related opportunities.
- Capital deployment: amount of capital expenditure, financing, or investment deployed toward climate-related risks OFR 7.8 and opportunities.
- Internal carbon prices: price on each tonne of GHG emissions used internally by an organisation. OFR 7.8
- Remuneration: proportion of executive management remuneration linked to climate considerations. OFR 7.8
Remuneration Report 3.2
1 Our sustainability standards index is included in our ESG Standards and Databook, available at bhp.com/sustainability.
BHP Appendix 4E 2022 29

7 Sustainability continued
and Reporting frameworks standards 7.2 Our material 7.3 Our sustainability
sustainability issues performance:
We commit to many sustainability frameworks, standards and initiatives and disclose Annual sustainability Non-financial key data according to their requirements. materiality assessment performance indicators Our sustainability reporting, including on Each year we identify the sustainability our website and in our ESG Standards and We completed our most recent five-issues most material to our business and Databook, is prepared in accordance with year sustainability targets in FY2022. stakeholders by assessing the economic, the Global Reporting Initiative (GRI) 2021 Highlights include three years fatality-free, a social, environmental and cultural impact of our Sustainability Reporting Standards, the reduction in the total number of workers exposed activities and business relationships.
International Council on Mining and Metals to our most material occupational exposures (ICMM) Sustainable Development Framework, In FY2022, we adopted the approach of the by 68 per cent, a 15 per cent decrease in the Task Force on Climate-related Financial Global Reporting Initiative (GRI 3: Material operational greenhouse gas (GHG) emissions Disclosures (TCFD) recommendations and Topics 2021) to consider actual and potential from our adjusted FY2017 baseline, social the Sustainability Accounting Standards Board negative and positive impacts of our business investment of US$681.4 million over five years (SASB) Metals and Mining standard. It also in order to determine our material sustainability and a 29 per cent reduction in freshwater serves as our UN Global Compact (UNGC) issues for reporting. In doing so we considered withdrawal volumes from our adjusted Communication on Progress on implementation BHP's material risk profile1, information FY2017 baseline. of the UNGC Ten Principles and support for recorded in our internal event management The FY2017 baselines and FY2018 - FY2022 its broader development objectives. We have system, our social value framework and data for our occupational exposures, GHG included a summary of our TCFD disclosures in social investment priorities and a number emissions and withdrawal of freshwater have the table below. of other sources. These included issues been adjusted for the merger of our Petroleum raised at our Annual General Meetings and There are also responsible mining and sourcing business with Woodside and divestment of our through industry sustainability standards and standards that we commit to voluntarily or as interest in BHP Mitsui Coal (BMC) in FY2022, benchmark assessments. We also consult with part of our memberships. (to exclude data related to those operations), stakeholders, such as through the BHP Forum For more information about our together with adjustments made and reported in on Corporate Responsibility, via ESG investor implementation of these standards refer to previous years to ensure ongoing comparability section Value Chain Sustainability 7.9. round tables and advisory groups and with of performance. FY2022 data for safety, social internal stakeholders via focused discussions. investment and significant community and The material sustainability issues identified environmental events includes the operated through our FY2022 assessment are shown in assets in our Petroleum business up to the date the table below. These issues are consistent of the merger (1 June 2022) and BMC up to the with our FY2021 assessment with the addition of date of completion of the sale (3 May 2022). security services, sexual harassment and value chain sustainability.
1 'Material' in this context refers to the materiality of a risk under BHP's Risk Framework. For information on our Risk Framework refer to OFR 9.
Material sustainability issues identified in this year's assessment
Climate change People Indigenous Ethics and Critical incident OFR 7.8 OFR 6 peoples (including business conduct risk management cultural heritage) OFR 7.7 OFR 8; 9.1
Environment Safety OFR 7.13
OFR 7.15 OFR 7.4 Sustainability Digital security Community governance OFR 9.1 Biodiversity and land Health (including OFR 7.10 OFR 7.1 OFR 7.17 COVID-19) Economic performance OFR 7.6 Human rights Value chain ECR
Water OFR 7.11 sustainability
OFR 7.16 Sexual harassment OFR 7.9 Market presence
OFR 7.5 Annual report - to be Tailings storage released September 2022 facilities Security services
OFR 7.18 OFR 7.12 Public policy OFR 8
Tax
ECR
30 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
Our sustainability performance: Non-financial key performance indicators
Target FY2022 result Year-on-year
Zero work-related fatalities Zero work-related fatalities and there was a 30 per cent decrease in the high- FY20181 2 potential injury frequency rate from FY2021. High-potential injury trends remain FY20192 1 a primary focus to assess progress against our most important safety objective, FY2020 0 eliminating fatalities. FY2021 0 FY20223 0
Year-on-year improvement of total recordable injury An increase in total recordable injury frequency (TRIF) of 8 per cent from FY20181 4.4 frequency (TRIF)4 per million hours worked FY2021. This shift was influenced by COVID-19 thorugh an 8 per cent FY20192 4.7 reduction in hours worked between the first and second halves of FY2022. FY2020 4.2 TRIF has decreased by 9 per cent since FY2018. FY2021 3.7 FY20223 4.0 50 per cent reduction in the number of We exceeded our target by reducing the total number of workers potentially Adjusted FY2017 baseline6 4,176 workers potentially exposed5 to our most exposed to our most material exposures by 68 per cent compared to our FY20186 2,803 material exposures of diesel particulate matter, adjusted FY2017 baseline6 FY20196 2,160 respirable silica and coal mine dust compared FY20206 1,683 to our FY20176 baseline by FY2022 FY20216,7 1,372 FY20226 1,333
Zero significant community events8 No significant community events resulting from BHP operated activities were FY2018 0 recorded in FY2022 FY2019 0 FY2020 0 FY2021 0 FY20223 0
Not less than 1 per cent of pre-tax profits9 Social investment of US$681.4 million over five years FY20181 US$77.1 million invested in community programs that contribute FY201911 US$93.5 million to the quality of life in the communities where FY2020 US$149.6 million we operate and support the achievement of FY2021 US$174.8 million the UN Sustainable Development Goals10 FY20223 US$186.4 million
By FY2022, implement our Indigenous Peoples Regional Indigenous People Plans have been implemented across Australia Strategy across all our operated assets through the (Reconciliation Action Plan (RAP)) and North and South America development of Regional Indigenous Peoples Plans
By FY2022, maintain operational (Scope 1 and Exceeded our short-term target with a 15 per cent decrease in operational GHG Adjusted FY2017 baseline12 12.9 million
12
Scope 2) GHG emissions at or below FY2017 emissions from our adjusted FY2017 baseline tonnes carbon dioxide equivalent (MtCO2-e)
12 12
levels while we continue to grow our business FY2018 13.8 MtCO2-e
12
FY2019 14.1 MtCO2-e
12
FY2020 14.5 MtCO2-e
12
FY2021 14.6 MtCO2-e
12
FY2022 11.0 MtCO2-e
Zero significant environmental events8 No significant environmental events resulting from BHP operated activities were FY2018 0 recorded in FY2022 FY2019 0 FY2020 0 FY2021 0 FY20223 0
Reduce FY2022 withdrawal of fresh water13 Exceeded our target, with a 29 per cent reduction in freshwater withdrawal Adjusted FY2017 baseline14 152,249 ML by 15 per cent from FY2017 levels volumes compared to our adjusted FY2017 baseline14 FY201814 133,265ML
FY201914 149,237ML FY202014 122,331ML FY202114 108,440ML
FY202214 107,398ML By FY2022, improve marine and Biodiversity framework was developed with the support of Conservation Year-on-year progress on development of terrestrial biodiversity outcomes by: International and Proteus, a cross-sector partnership between the UN framework to evaluate and verify the benefits
- developing a framework to evaluate and verify the Environment Programme World Conservation Monitoring Centre (UNEP of our actions. benefits of our actions, in collaboration with others WCMC) and business The total land set aside for conservation on-contributing to the management of areas of national 'Area conserved' target has been met by our operational and voluntary land on which we operate and other land or international conservation significance exceeding conservation investments over the target period, given BHP's FY2022 total we steward was 65,870 hectares in FY2022. In our disturbed land footprint ('area conserved' target) disturbed land footprint was 149,312 hectares addition to these conservation areas, we made several voluntary investments over the target period, of which an area of 4,465,260 hectares contributed to the achievement of the 'area conserved' target
1 FY2018 data includes Continuing and Discontinued operations (Onshore US assets).
2 FY2019 data includes Discontinued operations (Onshore US assets) to 28 February 2019 and Continuing operations.
3 FY2022 (3 May 2022) data .includes the operated assets in our Petroleum business up to the date of the merger with Woodside (1 June 2022) and BMC up to the date of completion of the sale
4 The of per sum million of (fatalities hours worked + lost.- time We adopt cases the + restricted US Government's work cases Occupational + medical treatment Safety and cases) Health multiplied Administration by 1 million/actual Guidelines for hours the worked recording by and our employees reporting of and occupational contractors injuries . Stated and in illnesses units .
5 For The exposures baseline exposure exceeding profile our FY2017 (as at 30 baseline June 2017) occupational is derived exposure through alimits combination without considering of quantitative protection exposure afforded measurements by the use and of personal qualitative protective assessments equipment undertaken (where by required) specialist . occupational hygienists consistent with best practice as defined by the American Industrial Hygiene Association.
6 The to FY2018 FY2017 -FY2022 baseline emissions has been stated adjusted in this for table Discontinued to aid comparability operations. (Onshore US assets and Petroleum) and the divestment of BMC. These adjustments have also been applied
7 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.
8 A by significant increasing event severity) resulting as defined from BHP in our operated mandatory activities minimum is one performance with an actual requirements severity rating for risk of four management or above,. based on our internal severity rating scale (tiered from one to five
9 To will date, be assessed our voluntary as a total social over investment the seven has -year been goals calculated period to as FY2030, 1 per cent rather of the than average calculated of the as previous an average three of years' the previous pre-tax three profit .years' For FY2023 pre-tax- FY2030, profit. our social investment
10 Expenditure BHP Foundation includes . BHP's equity share for operated and non-operated joint ventures, and comprises cash, administrative costs, including costs to facilitate the operation of the
11 FY2019 data includes Discontinued operations (Onshore US assets) to 31 October 2018 and Continuing operations.
12 Intergovernmental FY2017 baseline has Panel been on adjusted Climate Change for Discontinued (IPCC) Assessment operations (Onshore Report 5 Global US assets Warming and Petroleum) Potentials and and the the divestment move to a facility of BMC -specific and for emissions methodological calculation changes methodology (use of for fugitives at Caval Ridge). These adjustments have also been applied to FY2018-FY2022 emissions stated in this table to aid comparability.
13 'Withdrawal' seawater, wastewater is defined from as water third withdrawn parties and and hypersaline intended groundwater for use (in accordance . Freshwater with withdrawal 'Water Reporting also excludes Good entrained Practice Guide', water that ICMM would (2021)) not .be 'Fresh available water' for is other defined uses as. These waters exclusions other than have been made to align with the target's intent to reduce the use of freshwater sources subject to competition from other users or the environment.
14 The at WAIO FY2017 and baseline BMA, exclusion has been of adjusted hypersaline, to account wastewater, for: the entrainment, materiality supplies of the strike from affecting desalination water and withdrawals removal of at data Escondida for Discontinued in FY2017 operations and improvements (Onshore to US water assets balance and Petroleum) methodologies and
BMC. These adjustments have also been applied to FY2018-FY2022 emissions stated in this table to aid comparability.
BHP Appendix 4E 2022 31

7 Sustainability continued
7.4 Safety - Fatality Elimination Program Integrated Contractor
Our highest priority is the - Integrated Contractor Management Program Management Program
- Field Leadership Program Our Integrated Contractor Management safety of our workforce and the Program is designed to make it safer and easier
communities where we operate. Fatality Elimination Program for contractors to work with us. Introduced in
In FY2022, we continued our Fatality Elimination FY2020, the program is focused on building Our safety performance Program (FEL) towards our goal of no fatalities long-term mutually beneficial relationships, In FY2022, we recorded: across our business. integrating and simplifying processes and systems, and creating an inclusive, respectful - no fatalities at BHP Fatality elimination is not a new priority for and caring workforce culture. Since its us. We have been seeking to improve our - a decrease of 30 per cent in the high- introduction, the program has standardised safety performance for many years and have potential injury frequency rate from roles and responsibilities of contract owners considerably reduced high-potential injuries.
FY2021. The highest number of events and promoted improved partnerships with BHP However, there continues to be more to do to with potential for one or more fatalities was service providers through the implementation systematise a common set of controls. related to vehicle and mobile equipment of the Our Requirements for Contractor accidents. High-potential injury trends In FY2022 we: Management standard for existing and new remain a primary focus to assess progress onsite service contracts.
- developed five-year fatality elimination against our most important safety objective, roadmap guidelines, including the In FY2022 we: eliminating fatalities recommended sequencing of strengthened
- an increase in total recordable injury - developed the scope of work library controls based on effort, cost and near miss frequency (TRIF) of 8 per cent from FY2021. as an online resource containing best reduction impact This shift was influenced by COVID-19 practice examples for different types of - updated the Our Requirements for Safety contractor engagements through an 8 per cent reduction in hours standard to reflect FEL deliverables worked between the first and second halves - created contract execution plans as a of FY2022. TRIF has decreased by 9 per cent - created the 'Control Shift' methodology for means of applying the Our Requirements for since FY2018. The highest number of injuries assets to replicate FEL processes for specific Contractor Management standard was related to slips, trips and falls for both risks not considered within our top 10 risks - established an integration stream ensuring employees and contractors (i.e. vehicle and mobile equipment, dropped enhancements are holistic and cover object, electrical, lifting, geotechnical failure, - a consistent application of field leadership functional interactions entanglement/crushing, energy release, loss activities, which occurred at a sustainable - undertook assurance and audit activities of containment, fire/explosion, fall from height) frequency rate of 9,341 activities per million - created an online dashboard to enhance across BHP including contractor engagements hours worked with over 1,517,117 activities local implementation plans, providing global - implemented a contractor perception survey completed and more than 68,000 employees visibility of challenges, similarities and that runs in parallel with our internal survey. and contractors participating in the program at differences, thereby assisting assets with The survey highlighted some results on least once. Scheduled activities compared to their implementation the experience of our contractor workforce non-scheduled activities increased by 46 per consistent with the internal survey and other cent from FY2021 and coaching increased by - published technical bulletins related to FEL areas of focus 6 per cent controls to provide detailed implementation guidance based on site experience and - determined organisational design changes - one safety fine at our operated assets lessons learnt to improve contract ownership and Our results were achieved through a sustained management practices - undertook a human performance focus on improving our management of risk, - commenced deployment of a technology benchmarking study to identify the latest including through new and existing programs solution which supports an enterprise-developments and best practices in the field such as: wide approach to contractor on-boarding of human behaviour and management
Field Leadership Program Performance data - workforce health and safety for FY20221 Leaders spending time in the field is vital to
2 maintaining safe operations. Our global Field
High-potential injuries
Leadership Program encourages the workforce Year ended 30 June 2022 2021 2020 to provide feedback to their leaders about High-potential injuries 23 33 42 safety to reinforce an interdependent culture of safety. It involves leaders engaging with workers in the field to drive a common approach to improving health, safety and environment (HSE)
Employees Contractors performance. The program helps verify that
High-potential injury frequency3 0.03 0.03 critical safety controls are in place, being applied and are effective in managing risks that have the Total recordable injury frequency potential to result in fatalities.
Year ended 30 June 2022 2021 2020 In FY2022 we:
Total recordable injury frequency4 4.0 3.7 4.2
- enhanced the efficiency and effectiveness of supervisor time in the field by integrating
Employees Contractors the BHP Operating System (BOS) process confirmation and field leadership planned
Total recordable injury frequency3 0.77 0.82 task observation processes into a planned task confirmation
1 Data includes BMC up to the date of completion of the sale (3 May 2022) and operated assets in our Petroleum business up to the date of the merger with Woodside (1 June 2022). - continued to improve the quality of field
2 High-potential injury includes injuries with fatality potential. The basis of calculation was revised in FY2020 from leadership activities by increasing coaching event count to injury count as part of a safety reporting methodology improvement. and delivery of field leadership engagements
3 Employee and contractor frequency per 200,000 hours worked.
- conducted field leadership activities to
4 Combined employee and contractor frequency per 1 million hours worked. support the verification of risks that have
32 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary the potential to result in fatalities across our Our approach to prevent images, or other unwanted advances operated assets sexual harassment or invitations, - embedded the global, standardised field In 2018, we defined sexual harassment as a - Of these 103 substantiated cases, in 101 leadership procedure designed to increase health and safety risk, to be overseen in the same cases the individual responsible has had their the effectiveness of field leadership activities way as other occupational health and safety risks. employment terminated (or they have been across the business This approach provides the right framework for removed from site if a contractor), they have - conducted field leadership on COVID-19 addressing these behaviours, allowing us to apply resigned or are otherwise no longer working controls, designed to sustain effectiveness a systematic, risk-based approach to evaluating at BHP. within the changing environment and managing the risks. Our approach includes In addition to the matters listed above, in FY2022 More information conducting risk assessments to identify scenarios 87 reports of sexual harassment went through on safety is available at bhp.com/safety in which sexual harassment risks may arise, their Alternative Resolution Options (AROs). AROs are causes and the controls we can implement to alternative forms of response and resolution 7.5 Sexual harassment prevent them and reduce harm. other than investigations, including supported As part of our risk assessment processes, conversations with respondents, additional Sexual harassment1 is not acceptable and is we engaged members of our workforce with training, monitoring or awareness raising on contrary to our values. Our position on this is experience at site and accommodation villages, BHP's expectations of respectful behaviours in clear and aligned to our aspiration of a gender- and experts in health and safety, harassment and the workplace. This process only occurs where an balanced employee workforce by FY2025. inclusion and diversity. Through this, we identified ARO is proportionate to the nature of the conduct Gender balance in every team and at every level factors that can contribute to the risk of workplace and with the agreement of the impacted person. is an important part of our approach to eliminate sexual harassment that are more pronounced We continue to work with external experts on sexual harassment. in the mining industry, as well as factors that are how best to respond to cases to ensure we have The Australian Human Rights Commission's most common across all industries and workplaces. a proportionate approach to reports. We will recent national survey on sexual harassment Examples of risks that can be more pronounced continue to monitor and review the use of AROs in Australian workplaces has found that 71 per in the mining industry include isolated or remote to ensure it is meeting the needs of impacted cent of Australians have been sexually harassed working locations, a largely male-dominated people where it is used and to improve reporting in their lifetimes and 39 per cent of Australian workforce and accommodation villages. to support organisational learnings. women experienced sexual harassment in the Taking these into account, we identified and We will continue to encourage reporting and we workplace in the five years to 2018. The same developed controls and actions to help prevent are committed to taking action. We put the needs survey concluded that in the mining industry, sexual harassment and reduce its harmful of anyone impacted by this behaviour at the an estimated 74 per cent of women and 32 per impacts. Our core controls and areas for forefront of our processes and we are committed cent of men had experienced workplace sexual action are culture, leadership and training; to validating, caring for and supporting anyone in harassment in the past five years. Back in security measures at accommodation villages; our business who is affected by this behaviour. 2018, we accepted those findings as true for recruitment processes; contractor and third-party This includes internal practical and wellbeing our industry and for BHP globally, and we have engagement; emergency response; trauma-support mechanisms, support through our tailored focused on understanding why the behaviours informed (wellbeing) care; accessible, confidential Employee Assistance Program and options to exist, and what we needed to do to urgently reporting and person-centred investigations; and access trauma-specific clinical and non-clinical address them at BHP. appropriate disciplinary action. care with experienced clinicians. We are deeply sorry and apologise unreservedly Reports of sexual harassment We are committed to working closely with our to those who have experienced, or continue The reporting rate of sexual harassment at BHP people, others in industry and other stakeholders to experience, any form of sexual harassment has increased in recent years. We believe this to implement the necessary processes and anywhere at BHP. We recognise the harmful reflects the actions we have taken to increase systems designed to ensure our workplaces are impacts on individuals resulting from awareness and promote and centralise reporting safe and inclusive for everyone. these behaviours. and investigations, along with broader societal We understand that it can be difficult for people Actions we are taking to come forward to report sexual harassment developments and intolerance of this behaviour. and thank all of those who have, for their Since October 2020, BHP managers and leaders Oversight courage in doing so. We are also grateful to have been required to enter any serious conduct In FY2022, a Project Management Office (PMO) issues raised directly with them, including sexual was established through the office of the CEO our employees and other stakeholders for harassment, into EthicsPoint2 (anonymously to provide central governance over all sexual their insights and suggestions for changes in if requested).This year, 47 per cent of reports harassment work. The priority focus areas our workplaces. Their feedback informs our received into EthicsPoint have been logged of that work include driving progress toward approach. We are determined to make continued by managers or leaders in accordance with gender balance, creating a safe and respectful progress in eliminating sexual harassment and in this policy. workplace, building accountability and capability ensuring our workplaces are safe and inclusive During FY2022, across BHP's global operations of leaders, upskilling our workforce to be 'active for everyone. and offices, 103 reported and investigated bystanders', enhancing our policies, processes cases of conduct of sexual harassment were and controls, and providing person-centred and substantiated.3 trauma-informed response and support. The PMO 1 'Sexual harassment' is, as defined in the Respect@ Of the 103 substantiated cases: reports on progress against implementation of Work report, an unwelcome sexual advance, our critical controls and other key focus areas unwelcome request for sexual favours or other unwelcome conduct of a sexual nature, which - 37 involved non-consensual kissing or that underpin our overarching sexual harassment makes a person feel offended, humiliated and/ touching of a sexual nature, which includes a prevention strategy to senior management and or intimidated, where a reasonable person would broad range of behaviour of varying severity. the Board. anticipate that reaction in the circumstances. Sexual harassment encompasses a range of None of these cases involved non-consensual conduct including displaying sexually graphic Security and physical infrastructure images, sexually suggestive comments, suggestive penetration or intercourse, however we recognise that this conduct can occur and has We have continued to invest in security programs or inappropriate looks, gestures or staring, non-consensual touching or acts of a sexual nature and occurred in the past, and physical infrastructure designed to prevent sexual assault. and respond to sexual harassment at our - 66 involved other forms of sexual harassment, 2 EthicsPoint is our confidential reporting tool. It is accommodation facilities. Our minimum security accessible to all, including external stakeholders and including inappropriate comments of a sexual requirements for all BHP owned and operated the public, to report conduct that may be unethical, nature, unwelcome gestures or comments, illegal or inconsistent with Our Code of Conduct. accommodation villages include requirements for sending inappropriate text messages or 3 This does not include investigations that are access controls, village policies and procedures currently in progress. BHP Appendix 4E 2022 33

7 Sustainability continued to manage respectful behaviours, CCTV, lighting, introduction of the standard, our reviews have harassment risks. BHP is a member of the security signage, room allocation procedures, indicated that there has been a reduction in Minerals Council of Australia Respect@Work security personnel and incident response. alcohol consumption, and residents are making Taskforce and the Chamber of Minerals & Reporting and response healthier choices, with an increase in the use of Energy WA Safe and Respectful Behaviours recreational facilities. Alcohol is not permitted at Working Group. Both groups aim to build industry We encourage our workforce to report concerns, our accommodation villages in Chile and Canada. capability and capacity though sharing knowledge including providing centralised and confidential Listening to employees, measuring progress and developing shared resources. reporting tools and mandatory reporting and assigning accountability In FY2022, we participated in Western Australia's requirements for line leaders. We do not tolerate parliamentary inquiry into sexual harassment any form of retaliation for raising a concern We have channels through which the Board and against women in the FIFO mining industry and we address these actions if they occur. senior leaders receive information on workplace (WA Inquiry), including through a detailed We ceased using non-disclosure agreements culture and conduct. These include anonymous written submission in August 2021 (available at (NDAs) or imposing confidentiality obligations on employee and contractor perception surveys and parliament.wa.gov.au). BHP welcomes the final complainants in settlement agreements relating to our Field Leadership Program. Our perception report titled 'Enough is enough' released on sexual harassment in March 2019 and we do not surveys are conducted three times per year and 23 June 2022. We acknowledge the significant enforce any NDAs or confidentiality obligations on were redesigned in FY2021 to include more work of the parliamentary committee and complainants in historical agreements. targeted questions to provide leaders with greater in particular, the many people who shared insight into key safety and engagement metrics, Investigation of reports of sexual harassment are their stories and experiences as part of the which we have identified as critical foundations for conducted by our specialised central investigation inquiry process. our culture. Executive leadership and Group-wide team, which is independent of our other business performance criteria are linked to remuneration Continuing to make progress units. This team includes experts trained in a that includes progress towards greater inclusion, person-centred, trauma-informed approach, While we have made progress, there is still diversity and gender representation. In FY2022, to ensure that the impacted person is placed much more to do. Our focus in FY2023 will be we introduced key performance indicators for at the centre of all decisions made during the to continue: our Executive Leadership Team and other BHP investigation process and to minimise the risk of employees that linked remuneration outcomes to - focusing on increasing female leader further harm to that individual. progress against our program of work to address representation across our operations We established our global Support Service in sexual harassment. This includes implementation - continuous improvement across our suite FY2022, to provide dedicated, end-to-end case of controls in line with BHP's sexual harassment of controls coordination for anyone impacted by sexual risk assessments. - engaging with our people, encouraging and harassment, designed to ensure they obtain Engaging with and learning from others empowering them to take action as active appropriate support and information. The Support bystanders and enhance capability Service can also provide resolution options when We continue to measure and test our focus and - encouraging increased reporting an investigation is not wanted by the impacted areas for action. In FY2022 we: person or cannot proceed. - enhancing our approach to supporting - engaged and learnt from external experts who impacted persons to thrive at BHP and have Communication of expectations reviewed the controls we have in place and successful careers with us advised on best practice in preventing sexual Our position on sexual harassment has been harassment, and minimising further harm reinforced through regular senior leadership 7.6 Health when responding to sexual harassment communications. These include messages - engaged Kristen Hilton (former Victorian from our CEO, on-site signage regarding our We are committed to protecting expectations and avenues for support, and we Equal Opportunity and Human Rights the health and wellbeing have provided sexual harassment prevention Commissioner) to provide expert guidance on of our workforce. training to BHP line leaders, aimed at setting our prevention and response framework clear expectations about appropriate conduct - conducted a sexual harassment audit across We set clear mandatory minimum performance and driving consistent disciplinary outcomes. Minerals Americas further to the FY2021 standards to identify, assess and manage health Across June and July 2022, we held Safety Stops sexual harassment audit conducted across risks and their potential impacts and monitor the specifically focused on sexual harassment, racism Minerals Australia health of our workforce. and bullying for our teams globally. The stops - contributed to knowledge sharing with other Occupational illness were intended to build awareness, understanding, industry participants in relation to addressing and capability, as well as to reinforce expectations sexual harassment, and considered broader The reported occurrence of occupational illness1 within our teams. for employees in FY2022 was 265, which was learnings from external reports such as the 3.89 per million hours worked, representing a Australian Human Rights Commission's Alcohol use decrease in incidence compared to FY2021, Respect@Work: Sexual Harassment National As part of our commitment to health and safety, which was 4.36 per million hours worked. all workplaces should be free from the use of Inquiry Report and the Report into Workplace alcohol and illegal drugs, and the misuse of Culture at Rio Tinto by Elizabeth Broderick & Co For our contractor workforce, the reported - worked with our contracting and supplier occupational illness1 in FY2022 was 151, which other substances, in accordance with Our Code was 1.61 per million hours worked, representing organisations to address sexual harassment, of Conduct. All those who attend a BHP site, a decrease in incidence compared to FY2021 including collaboration on response protocols, including employees, are expected to be alcohol which was 1.87 per million hours worked. Due to joint training sessions and knowledge sharing and drug free, and may be asked to undergo - undertook a series of listening workshops regulatory regimes and limited access to data, random alcohol and drug testing. We also provide we do not have full oversight of the incidence of support for those who need it to address an Through these initiatives we identified a need contractor noise-induced hearing loss (NIHL) cases. alcohol or drug dependency. for further focus on preventative controls, Musculoskeletal illness is the predominant For accommodation villages, our Minerals particularly with respect to culture and occupational illness category representing 65 Australia Alcohol Management Standard was behaviours. This is in addition to the controls per cent of our workforce illnesses. These are implemented across our owned and operated already in place or committed for implementation conditions impacting the musculoskeletal system village facilities from 1 July 2021. It includes in FY2022 which included security, and connective tissues caused by repetitive work-a range of limits on alcohol consumption. accommodation standards, alcohol measures, related stress or strain or exposure over time. Residents and visitors who breach the standard recruitment and discipline. may be subject to action, including removal of We are committed to working with others in access to the village for a resident or visitor, the industry and beyond to address sexual 1 An illness that occurs as a consequence of work-or disciplinary action for employees. Since the related activities or exposure. 34 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary Musculoskeletal illness does not include disorders Our occupational illness data excludes the applicable regulatory requirements. caused by slips, trips, falls or similar incidents. cases of COVID-19 among our employees Where exposures potentially exceed regulatory and contractors. In settings of high levels of limits or our stricter limits, respiratory protective Noise-induced hearing loss contributes to the community transmission and with an evolving equipment is required. second highest illness category representing understanding of the epidemiological criteria for 10 per cent of illnesses. Where workers are For our most material exposures of DPM, silica infection and COVID-19 variants with evidence of exposed to noise above acceptable levels, and coal mine dust, we had a five-year target to increased transmission, it is difficult to conclude, workers are placed in hearing conservation achieve, by the end of FY2022, a 50 per cent with reasonable certainty, that a person was programs, which include a periodic hearing test reduction in the number of workers potentially infected because of work-related activities or and hearing protection fit testing. Through our exposure. For information on our response to exposed1 as compared to our 30 June 2017 Sustainability in Design program, we have COVID-19, refer to 'COVID-19' further in 7.6. baseline exposure profile.2,3,4 Exposure data also established design recommendations that in this Report in all cases is presented without seek to eliminate or reduce high or prolonged Occupational exposures considering protection afforded by the use of noise exposures. Other illness categories personal protective equipment (where required). Occupational exposure limits (OELs) for our include skin diseases, temperature-related most material exposures are set according We are pleased to have achieved our target by illnesses, mental illness, bites, stings and to the latest scientific evidence, which for a reducing the total number of workers potentially other unspecified illnesses. number of agents, such as diesel particulate exposed to our most material exposures by matter (DPM), resulted in lower limits than 68 per cent. That achievement at the end of FY2022 in number of workers potentially exposed to levels exceeding our OELs include; no workers potentially exposed to coal mine dust, 78 per cent reduction in the number of Occupational illness workers potentially exposed to DPM5 and a 61 Per million employee hours worked1,2,3 per cent reduction in the number of workers 5.0 potentially exposed to respirable silica. 0.73 This year, an internal audit conducted on FY2021 4.0 0.51 0.72 0.87 0.75 workforce occupational exposures data at Nickel 0.75 West identified that a statistical analysis error 3.0 resulted in an underestimation of the number of 2.71 workers assessed as potentially exposed to DPM. 2.48 2.55 2.69 This has resulted in an increase in the FY2021 2.0 2.84 2.54 total number of workers potentially exposed to material exposures compared to what was reported last year. 1.0 1.48 1.19 1.11 With the conclusion of our five-year public target, 0.59 0.92 0.60 we will continue to manage exposures to as 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 low as reasonably practicable by focusing our efforts in FY2023 on further implementation Noise-induced hearing loss Musculoskeletal illness Other illnesses of exposure reduction projects, sustaining the exposure reductions achieved by leveraging 1 Data includes BMC up to the date of completion of the sale (3 May 2022), operated assets in our Petroleum business up to the date of the merger with Woodside (1 June 2022) and Onshore US assets up to the date of our Risk Framework and identifying exposure completion of the sale (31 October 2018), as applicable. reduction opportunities for inclusion in FY2024 2 Occupational illnesses excludes COVID-19 related data. plans and beyond. 3 Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. Prior year data has not been adjusted. Coal mine dust lung disease As at 30 June 2022, 12 cases of coal mine dust Occupational illness lung disease (CMDLD)6 among our employees 1,2,3,4 were reported to the Queensland Department of Per million contractor hours worked 2.25 Natural Resources Mines and Energy (DNRME).7 In addition to these cases, there were four 2.00 1.75 0.68 0.57 1 For exposures exceeding our FY2017 occupational 1.50 exposure limits discounting the use of personal 0.56 0.54 protective equipment, where required. 1.25 0.44 0.51 2 The baseline exposure profile is derived through a combination of quantitative exposure measurements 1.00 and qualitative assessments undertaken by 0.75 specialist occupational hygienists consistent with 0.97 1.24 1.30 best practice as defined by the American Industrial 0.50 1.06 0.92 1.06 Hygiene Association. 3 Occupational Exposure target excludes Projects. 0.25 4 The FY2017 baseline to FY2022 data has been 0 0.02 adjusted to exclude Discontinued operations (Onshore US assets, Petroleum) and the divestment FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 of BMC. 5 FY2021 data includes adjustment to DPM exposures Noise-induced hearing loss Musculoskeletal illness Other illnesses as a result of misstatement in previous year. 6 CMDLD is the name given to the lung diseases 1 Data includes BMC up to the date of completion of the sale (3 May 2022), operated assets in our Petroleum related to exposure to coal mine dust and includes business up to the date of the merger with Woodside (1 June 2022) and Onshore US assets up to the date of coal workers' pneumoconiosis, silicosis, mixed completion of the sale (31 October 2018), as applicable. dust pneumoconiosis and chronic obstructive 2 Occupational illnesses excludes COVID-19 related data. pulmonary disease. 3 Due to the lag nature of incident reporting and subsequent verification, final results may vary post reporting. 7 Cases reported to DNRME are not an indication Prior year data has not been adjusted. of work relatedness. BHP evaluates each case 4 Due to regulatory regimes and limited access to data, we do not have full oversight of the incidence for work relatedness and where identified, the of contractor noise-induced hearing loss (NIHL) cases. case will be included in illness reporting. BHP Appendix 4E 2022 35

7 Sustainability continued Exposure reduction trend over time1,2,3,4,5 Business conduct cases by issue type FY2022 4,200 3,500 1,456 2,800 500 2,100 377 169 1,400 2,606 312 Harassment and bullying 49.6% 2,295 327 1,783 Sexual harassment 11.9% 700 1,514 1,046 1,006 Fraud 9.8% 114 8 14 Discrimination 8.4% 0 1 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Other 8.6% Health, safety or environment breach 9.8% Coal mine dust exposures Silica exposures DPM (Diesel) exposures Retaliation for speaking up 2% 1 For exposures exceeding our FY2017 occupational exposure limits, without considering protection afforded by 1 Inclusions are anti-competitive behaviour; the use of personal protective equipment (where required). attempts to identify an anonymous reporter, 2 The baseline exposure profile is derived through a combination of quantitative exposure measurements and community relations or human rights breach; qualitative assessments undertaken by specialist occupational hygienists consistent with best practice as defined cybersecurity or data privacy breach; deficiencies by the American Industrial Hygiene Association. in a business conduct investigation; improper 3 Occupational Exposure target excludes Projects political or governmental conduct; inappropriate or 4 The FY2017 to FY2022 data has been adjusted to exclude Discontinued operations (Onshore US assets, unauthorised external communication; information Petroleum) and the divestment of BMC. on other support service providers; physical violence; and trade control breach. 5 FY2021 data includes adjustment to DPM exposures as a result of misstatement in previous year. coal mine dust lung disease claims accepted COVID-19 where a decision or action is not in line with Our in FY2022, which consisted of three former Code or Our Charter. We continued to navigate the challenges of workers and one current worker. For cases Our Code is available in the global COVID-19 pandemic, including high involving current employees, we offer counselling, five languages and accessible at bhp.com. community transmissions and variants that are medical support and redeployment options more transmissible. In FY2022, we continued where relevant. BHP encourages individuals to speak up and to adapt COVID-19 controls based on current report concerns about any conduct that is Mental health scientific evidence and medical advice designed inconsistent with Our Charter, Our Code or to protect our workforce and minimise the risk The mental health of our people continues to be internal requirements, or conduct that may be of workplace transmission. a focus. In FY2022, we continued to implement illegal or improper. BHP requires reports of our Group-wide Mental Health Framework to We strongly support vaccination as a control business conduct concerns to be treated with raise awareness of mental wellbeing, reduce to protect the health of our workforce and the appropriate confidentiality and prohibits any stigma and increase the capacity of our communities where we operate. As part of our kind of retaliation against people who make or leaders to recognise and support individuals COVID-19 controls, we require vaccinations as may make a report, or who cooperate with an experiencing mental illness. As a founding a condition of workplace entry subject to local investigation. We consider all forms of retaliation member of the Global Business Collaboration laws and regulatory requirements. We also to be misconduct and grounds for disciplinary for Better Workplace Mental Health, we continue implemented pre-entry testing programs across action, up to and including termination to contribute to the global business-led alliance our operations and offices globally - aimed at of employment. to advocate for and accelerate positive change reducing workplace transmissions. In FY2022, 5,402 reports were received into for mental health in the workplace worldwide. More information on health, including EthicsPoint (of these 4,714 were classified as a case study on how we supported our 2 To support the proactive management of mental business conduct concerns) representing an people and the communities where we wellbeing and give our workforce the tools and operate through COVID-19, is available at increase of 33 per cent in business conduct skills needed to build resilience and positive bhp.com/health. concerns from FY2021. These include reports mental health, we provide and promote the directly made by employees, contractors or Employee Assistance Program, our mental 7.7 Ethics and community members. It also includes reports health toolkit, Thrive, education and awareness business conduct made to leaders (31 per cent) who are then campaigns (including stigma reduction) and the required to register them in EthicsPoint. BHP Resilience Program. Our conduct We believe the increase corresponds to the 1 continuous effort by BHP to promote the In May 2022, we continued with our annual Our Code of Conduct (Our Code) brings our reporting of disrespectful behaviour to create BHP Mental Health month, with the aim of values to life so we can make the right choices an environment in which people can feel safe increasing mental wellbeing and encouraging every day. It applies to everyone who works speaking up. The introduction of a global service everyone to support and look out for one for us, with us, or on our behalf. To ensure all to support people involved in sexual harassment another. We continued to support global mental employees and contractors understand how incidents and discuss resolution options has also health campaigns during FY2022, including Our Code applies, regular training is mandatory. encouraged employees and contractors to report World Mental Health Day, R U OK? Day and There are consequences for breaching Our instances of sexual harassment. Of the business Movember. In FY2022, we also commenced Code and we encourage people to speak up work to develop a Group-wide psychosocial risk management approach with the aim of taking a proactive and systemic approach to sustaining 1 Information is available at bhp.com/our-approach/our-company/our-code-of-conduct/. a mentally healthy workplace. This process will 2 Some EthicsPoint reports are enquiries, or are not related to business conduct concerns, or are a duplicate contribute to achieving our 2030 goal for a safe, of an existing report. 3 This excludes reports not containing a business conduct concern and excludes reports logged by leaders inclusive and future ready workforce. on behalf of others. 36 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary conduct reports received, 36 per cent were government actions. Our people must take care Combating Bribery of Foreign Public Officials in made anonymously,3 compared with 42 per cent that third parties acting on our behalf do not International Business Transactions. in FY2021. Of the total business conduct reports violate anti-corruption laws. Disciplinary action Our Compliance function is independent of our closed during FY2022, 43 per cent contained including dismissal, or termination of contractual assets and regions and reports to the Chief one or more substantiated allegations.4 relationships, may follow from a breach of Legal Governance and External Affairs Officer. these requirements. Transparency and accountability The Chief Compliance Officer also reports To manage corruption risk, we work to ensure quarterly to the Risk and Audit Committee on We support initiatives by governments of the optimal resource allocation to areas of our compliance issues and meets at least annually countries where we operate to publicly disclose business with the highest exposure to corruption with the Committee Chair. the content of our licences or contracts for the risks. The identification, assessment and development and production of minerals that The Compliance team also participates in management of corruption risks associated form the basis of our payments to government, anti-corruption risk assessments in respect of with growth opportunities remains a significant as outlined in the Extractive Industries our operated assets or functions, our interests area of focus for our Compliance function, via Transparency Initiative (EITI) Standard. in non-operated assets and new business a sub-team dedicated to supporting functions opportunities that we consider are exposed to Other initiatives include our work in partnership that are responsible for initiating transactions material anti-corruption risks. In FY2022, the with Transparency International, our and growth opportunities in countries with high team provided input into 44 anti-corruption representation on the Board of the EITI, our corruption risks. risk assessments. financial support for and Steering Committee All activities that potentially involve higher membership of the Bribery Prevention Network Risk awareness in first-line employees remains exposure to corruption risk require review (in Australia) and our funding of the BHP a critical preventative measure. Anti-corruption or approval by our Compliance function, as Foundation, including its Natural Resource training is required to be provided to all documented in our anti-corruption compliance Governance Global Program. employees and contractors as part of mandatory framework. In FY2022 Compliance and Global annual training on Our Code. Our Compliance In FY2022, we also continued our active and Corporate Affairs implemented a new end-to-end function also regularly communicates and public support for ultimate beneficial ownership workflow system for sponsorships, donations engages with identified higher-risk roles. transparency. This support included co-hosting and community development projects, which In FY2022, additional risk-based anti-corruption (with EITI, Open Ownership and the B Team) a provides greater data for enhanced monitoring training was undertaken by 1,578 employees and Beneficial Ownership Transparency Forum in and increased governance over contracting and contractors, as well as employees of some of our London and leading efforts with EITI for BHP post-contact expenditure reporting. business partners and community partners. and other leading resources companies to Our Compliance function regularly reviews our publicly commit to a Statement by Companies More information on ethics and business anti-corruption framework for compliance with conduct is available at bhp.com/ethics on Beneficial Ownership Transparency, launched the requirements of the US Foreign Corrupt at the Forum. Through the Statement, BHP and Practices Act, the UK Bribery Act, the Australian other leading resources companies recognise Criminal Code and the applicable laws and the need for publicly available company regulatory developments of all places where ownership information and (among other things) we do business. These laws are consistent commit to promote the global adoption of with the standards of the OECD Convention on beneficial ownership transparency, to disclose beneficial ownership data, and to identify and use beneficial ownership data in due diligence processes. Our efforts are complementary to BHP Foundation's partnership with EITI and Open Ownership to support governments to transform the availability and use of beneficial ownership data for effective governance in the extractive sector. Multi-lateral measures to improve governance, such as these, should help ensure transparency and accountability are cornerstones of a successful energy transition that benefits the citizens of countries bestowed with critical minerals. Anti-corruption We continue our commitment to the global fight against corruption in the resources industry. Our commitment to anti-corruption is embodied in Our Charter and Our Code. As part of this commitment, we prohibit authorising, offering, giving or promising anything of value directly or indirectly to anyone to influence them in their role, or to encourage them to perform their work disloyally or otherwise improperly. We also prohibit facilitation payments, which are payments to government officials for routine 4 The calculation is based on reports received and completed in FY2022, containing one or more substantiated allegations. Not all reports resulted in a finding. This can occur if there is insufficient information, the respondent is not able to be identified, was previously terminated, or that the impacted person did not wish to proceed. BHP Appendix 4E 2022 37

7 Sustainability continued 7.8 Climate change - a long-term goal to achieve net zero Climate Transition Action operational GHG emissions by 2050 Plan progress We believe the world must pursue the aims of the Paris Agreement with increased levels of For value chain greenhouse gas (GHG) FY2022 progress on operational national and global ambition to limit the impacts emissions (Scope 3): decarbonisation targets and goals of climate change. - We are pursuing the long-term goal of net To support progress towards our long-term goal zero Scope 3 GHG emissions by 2050. to achieve net zero operational GHG emissions In September 2021, we published our Climate Achievement of this goal is uncertain, by 2050, in FY2022, we achieved our short-term Transition Action Plan (CTAP), which sets out particularly given the challenges of a net zero target due to significant progress made through our strategic approach to achieving our long-pathway for our customers in steelmaking, the execution of Power Purchase Agreements term GHG emissions reduction goals. and we cannot ensure the outcome alone. (PPAs), particularly in Chile at two of our The CTAP, together with more information To progress towards this goal:2 copper operated assets but also increasingly on our climate positions, actions across our Australian operations. Meeting our and performance is available at - We will target net zero by 2050 for the bhp.com/climate. FY2022 target keeps us on track to achieve our operational GHG emissions of our direct FY2030 medium-term target. suppliers.3 BHP's climate change targets 1 These positions are expressed using terms that are and goals1 - We will target net zero by 2050 for GHG defined in the Glossary to this Report, including the emissions from all shipping of BHP products. terms 'target', 'goal', 'net zero' and 'carbon neutral'. Following completion of a number of portfolio The baseline year(s) of our targets will be adjusted - We will continue to partner with customers for any material acquisitions and divestments, changes in FY2022, we have taken the opportunity and others to try to accelerate the transition and to reflect progressive refinement of emissions to streamline the expression (without change to the reporting methodologies. The targets' boundaries to carbon neutral steelmaking and other substance) of the climate change targets and goals may in some cases differ from required reporting downstream processes. boundaries. The use of carbon offsets will be we outlined in the CTAP, as set out here. governed by BHP's approach to carbon offsetting - Our 2030 goals are to: described at bhp.com/climate. To support the net zero transition that the - support industry to develop technologies 2 The targets are referable to a FY2020 baseline year. world must make, we will continue to pursue Our ability to achieve the targets is subject to the sustainable provision of our products, and pathways capable of 30 per cent widespread availability of carbon neutral solutions to many of which are essential building blocks emissions intensity reduction in integrated meet our requirements, including low/zero-emissions steelmaking, with widespread adoption technologies, fuels, goods and services. of decarbonisation. 3 Operational GHG emissions of our direct suppliers expected post 2030 means the Scope 1 and Scope 2 emissions of our For operational greenhouse gas (GHG) direct suppliers included in BHP's Scope 3 reporting - support 40 per cent emissions intensity emissions (Scope 1 and Scope 2 from our categories of purchased goods and services reduction of BHP-chartered shipping of (including capital goods), fuel- and energy-related operated assets), we have: BHP products activities, business travel and employee commuting. - a medium-term target to reduce operational GHG emissions by at least 30 per cent from FY2020 levels by FY2030 Targets Baseline (adjusted)1 FY2022 result (adjusted)1 FY2022 progress Short-term: Target to maintain operational FY2017:12.9 MtCO2-e 11.0 MtCO2-e We have achieved and exceeded our FY2022 target by GHG emissions at or below FY2017 levels 15 per cent on the basis of significant progress securing 15% below the adjusted by FY2022, while we continue to grow our renewable energy supply via PPAs, notably in Minerals FY2017 baseline business. Americas, with Escondida and Spence mostly supplied Medium-term: Target to reduce operational FY2020: 14.5 MtCO2-e 11.0 MtCO2-e by renewable energy for their electricity in the first half of GHG emissions by at least 30 per cent from 24% reduction from the CY2022. FY2020 levels by FY2030. adjusted FY2020 baseline FY2022 progress on value chain decarbonisation targets and goals Targets and goals FY2022 progress Steelmaking - Announced a Memorandum of Understanding (MOU) for up to US$10 million investment with POSCO 2030 goal: Support industry to develop in October 2021 to jointly study optimising coal/coke quality for low-carbon blast furnace operation and technologies and pathways capable of 30 per Carbon Capture Utilisation and Storage (CCUS). cent emissions intensity reduction in integrated - This, together with MOUs announced in FY2021, provides up to US$75 million for steel decarbonisation steelmaking, with widespread adoption expected partnerships with four key customers representing approximately 12 per cent of reported global steel production. post 2030. For more information refer to our steel decarbonisation framework in Value chain GHG emissions. - Commenced feasibility studies with Baowu, HBIS, JFE, into CCUS and Direct Reduced Iron (DRI) technologies, use of hydrogen in steelmaking, and iron ore blends suitable for DRI production. - Invested US$11 million in venture investments in electrolysis technology companies Electrasteel and Boston Metal. Maritime - In May 2022, we joined the First Mover's Coalition as a member in the shipping sector, on the basis of 2030 goal: Support 40 per cent emissions intensity committing that 10 per cent of BHP's products shipped to our customers, on our time charter vessels, will be on vessels using zero emissions fuels by 2030.2 reduction of BHP-chartered shipping of BHP products. - Formed a consortium with Rio Tinto, Oldendorff, Star Bulk, and the Global Maritime Forum to analyse and support the potential to develop an iron ore maritime green corridor, fuelled by green ammonia. Target: We will target net zero by 2050 for GHG emissions from all shipping of BHP products. - Chartered the world's first LNG-fuelled Newcastlemax bulk carriers to transport iron ore from Western Australia to Asia for five years. The fuel, along with improved efficiency of the vessel design, is expected to significantly reduce GHG emissions intensity per voyage. 1 Adjustment for divestments and methodology changes: FY2017 baseline has been adjusted for Discontinued operations (Onshore US assets and Petroleum) and the divestment of BMC, and for methodological changes (use of Intergovernmental Panel on Climate Change (IPCC) Assessment Report 5 (AR5) Global Warming Potentials and move to facility-specific emissions calculation methodology for fugitives at Caval Ridge). These adjustments have also been applied to the GHG emissions stated in this table to aid comparability. 2 Subject to the availability of technology, supply, safety standards, and the establishment of reasonable thresholds for price premiums. 38 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary FY2022 progress on CTAP climate change commitments Commitment FY2022 progress Assessing capital alignment with a 1.5şC world - The impact of our 1.5°C Paris-aligned scenario on portfolio value was assessed and reviewed against the - our approach to strategy and operational and portfolio mix and major capital allocation decisions. All investment decisions now require an assessment commercial decision-making in consideration of of viability under our 1.5°C scenario. Work continues to determine future climate requirements for planning a range of different global, sectoral and regional and capital allocation processes. scenarios, including a 1.5şC outcome Climate policy engagement - including our - We plan to publish our next formal industry association review in the second half of CY2022. strengthened approach to industry associations to - As part of our normal practice, we intend to analyse the industry association reviews published by our ensure our review identifies areas of inconsistency peers and relevant material published by civil society groups and other stakeholders, with the goal of with the Paris Agreement strengthening our own review methodology, where possible. Just transition - our approach to dealing with the - We have set out our Equitable Change and Transition Position establishing our approach to changes and challenges associated with the transition of our transitions in our communities. Refer to OFR 7.1. communities and workforce as assets come to the end of their operating life Climate governance prepares information and advice for the ELT, We consider these across short (up to two and management Sustainability Committee, Risk and Audit years), medium (two to five years) and long-term Committee and the Board on climate-related (five to 30 years) time horizons. Climate change is a material governance and strategy, risks (both threats and opportunities) For more information on risks associated strategic issue for us. Our Board is actively and performance against climate-related metrics. with the transition to a low-carbon engaged in the governance of climate change It also uses key risk indicators to help monitor economy and why these risks are issues, including our strategic approach, important to BHP, potential threats and performance against our appetite for climate oversight of material risk management and opportunities, and key management change-related risks and monitors relevant performance against our targets, goals and actions refer to OFR 9.1. signposts through our emerging risk process. strategies, supported by the Sustainability Climate-related activity is also undertaken Committee and the Risk and Audit Committee. Scenario analysis across the Group, including in our Portfolio When forming strategy, we consider the impact The Board strengthened the link between Strategy and Development; Commercial; executive remuneration and delivery of Planning and Technical; and Environment teams. of a range of future pathway scenarios, including our climate change strategy in 2020, with our 1.5°C Paris-aligned scenario,1 and potential performance on decarbonisation and adaptation Climate risk management responses to the threats and opportunities now representing 10 per cent of the Cash and BHP applies a single, Group-wide approach presented by climate change. At the time of Deferred Plan scorecard. to the management of risk, known as the Risk publication of this Report, signposts do not yet Framework. Risks are assessed to determine indicate the appropriate measures are in place The Board obtains advice from climate change to drive decarbonisation at the pace or scale their potential impacts and likelihood, enable experts, including by seeking the input of required for us to assess achieving the aims of prioritisation and determine risk treatment management (including Dr Fiona Wild, our the Paris Agreement as the most likely future options. We then implement controls designed to Vice President Sustainability and Climate outcome. However, as governments, institutions, prevent, minimise or mitigate threats, and enable Change) and independent advisers. In addition, companies and society increasingly focus or enhance opportunities. Risks and controls are our Forum on Corporate Responsibility on addressing climate change, the potential reviewed periodically and on an ad hoc basis to (which includes Don Henry, former CEO of for a non-linear and/or more rapid transition evaluate performance. the Australian Conservation Foundation and For more information on BHP's Risk and the subsequent impact on threats and Changhua Wu, former Greater China Director, opportunities increases. Framework refer to OFR 9. the Climate Group) engages with operational management teams and with the Sustainability We seek to maximise our exposure to products Climate-related risks can be grouped into Committee and the Board as appropriate. with significant opportunity under all scenarios two categories: and to minimise the risk that capital will be Below Board level, key decisions in relation stranded in a rapidly decarbonising world - -Transition risks arise from policy, regulatory, to climate change are made by the CEO and through portfolio commodity mix and the position legal, technological, market and other societal management, in accordance with their delegated of our operated assets on their cost curves. responses to the challenges posed by authority. Our Executive Leadership Team (ELT) climate change and the transition to a low-is held to account for a range of measures, Two scenarios (Central Energy View and Lower carbon economy. 2 including climate-related performance, which Carbon View) are currently being used as For more information refer to inputs to our operational planning cases, based are then cascaded through the organisation. Transition risks. on our current estimates of the most likely While our Board is ultimately responsible for our strategic approach to climate change issues, range of future states for the global economy -Physical risks refer to acute risks that are management has primary responsibility for and associated sub-systems. In addition to our event-driven, including increased severity the design and implementation of our climate operational planning scenarios, we utilise a and frequency of extreme weather events, change strategy with execution overseen by the range of scenarios, including our 1.5°C Paris-and chronic risks resulting from longer-term Climate Change Steering Committee. BHP has aligned scenario when testing the resilience changes in climate patterns. a dedicated Climate Change team responsible For more information of our portfolio, forming strategy and making for advising the ELT. The team collaborates investment decisions. These scenarios are refer to Physical risks. with BHP's asset and function teams, external reviewed periodically to reflect new information partners and industry to develop practical Transition risks and are benchmarked against scenarios climate change solutions, designed to preserve from the Intergovernmental Panel on Climate Transition risks are identified, assessed and Change (IPCC) and third-party energy and and unlock long-term value for BHP. It regularly managed in line with BHP's Risk Framework. resource research organisations (including the 1 This scenario aligns with the aims of the Paris Agreement and requires steep global annual emissions reduction, sustained for decades, to stay within a 1.5°C carbon budget. 1.5°C is above pre-industrial levels. For more information about the assumptions, outputs and limitations of our 1.5°C Paris-aligned scenario refer to the BHP Climate Change Report 2020 available at bhp.com. 2 Central Energy View reflects, and is periodically updated to respond to, existing policy trends and commitments. Lower Carbon View accelerates decarbonisation trends and policies, particularly in easier-to-abate sectors such as power generation and light duty vehicles. For more information refer to the BHP Climate Change Report 2020 available at bhp.com. BHP Appendix 4E 2022 39

7 Sustainability continued International Energy Agency, IHS Markit, Wood relevant approvals be received. This is expected FY2050 in BHP's current major operational and Mackenzie, Bloomberg New Energy Finance and to provide certainty for our people and the market countries. CRU); an update of the scenarios is expected community about the future of the mine and time We have incorporated regional carbon price during FY2023. to work together with the community on a plan assumptions in our planning, investment that contributes to helping the region diversify The energy and resources modelling from BHP's decisions and asset valuations for more than and strengthen its economy. 1.5°C scenario, which was conducted in 2020, 10 years. They are used together with our remains consistent with the updated carbon In FY2020, we announced a commitment of at operational planning cases based on the current budget released in the Working Group I report least US$400 million to invest in GHG emissions economic outlook for asset planning, asset as the first part of the IPCC's Sixth Assessment reduction across our operated assets and value valuations and operational decision-making. Report (AR6) in 2021. chain over the five-year life of our Climate Our carbon price forecasts are also used along Investment Program. We spent US$47 million Capital alignment with other qualitative and quantitative metrics, on initiatives consistent with this program in such as the outcomes of our Paris-aligned 1.5°C During FY2022, we systematically integrated FY2022, targeting operational, maritime, and scenario analysis (refer to 'Scenario analysis' our 1.5°C Paris-aligned scenario into our steelmaking emissions and BHP Ventures and 'Capital alignment'), in our assessment strategy and capital allocation process to test the investments. This figure does not include the of investments under the Capital Allocation extent to which our capital allocation is aligned operating expenditure associated with renewable Framework and to inform our portfolio strategy with a rapidly decarbonising global economy. electricity arrangements established at a number and investment decisions. Specifically, we apply our 1.5°C scenario to of our operations, which collectively represented assess whether future demand for our products the main source of operational emissions When considering initiatives to meet our under that scenario supports ongoing capital abatement for BHP in FY2022. More than operational emission medium-term target investment. Our analysis and that of others, US$200 million has been included in approved and long-term goal, we consider a number including the International Energy Agency, budgets for FY2023 as our decarbonisation of additional metrics including the initiatives' have shown that many of the commodities we programs further mature, and we will continue position on our internal marginal abatement currently produce are critical for the aims of the expenditure of up to US$75 million over the project cost curve, technology maturity and Paris Agreement to be met. coming years channelled towards partnerships ultimate abatement potential. This informs the with our customers in the steel sector. implied costs and benefits of our decarbonisation The impact of our 1.5°C scenario on our portfolio initiatives, allowing us to prioritise and rank those value was assessed after the merger of our Our capital allocation process is structured initiatives based on an implied price on carbon. Petroleum business with Woodside and the sale to ensure capital expenditure plans are of a number of our coal assets, and was reviewed aligned with our FY2030 and 2050 operational Green revenue against portfolio mix and major capital allocation emissions reduction target and goal. We expect Green revenue is intended as a measure of decisions. Our portfolio value increased under to spend around US$4 billion on operational the extent to which products and services the 1.5°C scenario, consistent with the demand decarbonisation by FY2030, with plans reflecting outcomes of the analysis published in the BHP an annual capital allocation of between contribute to the transition to a green economy.2 While these contributions will be measured on Climate Change Report 20201 that indicated the approximately US$200 million and approximately a range of important indicators (including water world would need around twice as much steel, US$600 million per year over the next five years. conservation, biodiversity or reforestation), copper and potash, and four times as much nickel Going forward, as our climate response is further much of the discussion about green revenue in the next 30 years as it did in the last 30. It also integrated into business-as-usual planning, remains focused on the contribution to the indicated a reduction in the future demand for oil our spending on climate initiatives is expected transition to clean energy that is vital for climate and energy coal. to become increasingly indistinguishable from change mitigation. normal business spending. Our focus for capital expenditure is now on We expect many of the resources we produce commodities we assess as having a significant How we think about and use to be important for the energy transition. upside through the transition. Furthermore, the carbon pricing For example, the International Energy Agency's internal allocation of capital under our Capital Our assets and markets are likely to continue 'The Role of Critical Minerals in Clean Energy Allocation Framework and all major investment decisions now require an assessment of to be subject to variations in regulation and Transitions' report3 highlights the critical role levels of carbon pricing depending on location of copper and nickel, and BHP's own 1.5°C investment viability under our 1.5°C Paris-aligned scenario. and industry. Similarly, the competitiveness scenario4 indicates the case for copper, nickel of our products and the processes in which and potash could be more compelling as the Through these processes, we demonstrate they are used will be impacted by the adoption world takes action to decarbonise. Iron ore our commitment to ensuring our capital of carbon legislation in customer countries. also fares slightly better under our 1.5°C expenditure plans are not misaligned with the We utilise an explicit regulatory carbon price scenario versus certain other scenarios, as Paris Agreement's aim to pursue efforts to forecast for major BHP operational, competitor steel requirements of the energy transition are limit global warming to 1.5°C. Our total capital and customer countries. In determining our expected to be considerable. and exploration expenditure for Continuing forecast, we consider factors such as a country's In FY2022, we consulted with investors, operations in FY2022 was US$6.1 billion, of current and announced climate policies and industry and standard setters to explore which US$73 million or 1 per cent was for targets and societal factors such as public ways of establishing clear methodologies our energy coal assets. Spend in FY2022 acceptance and demographics. We forecast the for classification and measurement of green and all currently approved spend for energy global range of regional carbon prices to reach revenue within the resources sector. As yet, no coal assets is limited to maintenance capital. between US$0-175/tCO2-e in FY2030, and agreed or established approach exists. A green Additional capital is expected to be required US$10-250/tCO2-e in FY2050, and US$10-175/ revenue measure based on end use continues for the proposed life extension of the Mt Arthur tCO2-e in FY2030 and US$100-250/tCO2-e in to be challenging for copper and steel as they Coal mine through to the end of FY2030, should 1 There are inherent limitations with scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate. Scenarios do not constitute definitive outcomes for us. Scenario analysis relies on assumptions that may or may not be, or prove to be, correct and may or may not eventuate, and scenarios may be impacted by additional factors to the assumptions disclosed. 2 A green economy is defined by the UN Environment Programme (unep.org/regions/asia-and-pacific/regional-initiatives/supporting-resource-efficiency/green-economy) as low-carbon, resource efficient and socially inclusive. In a green economy, growth in employment and income are driven by public and private investment into such economic activities, infrastructure and assets that allow reduced carbon emissions and pollution, enhanced energy and resource efficiency, and prevention of the loss of biodiversity and ecosystem services. 3 The Role of Critical Minerals in Clean Energy Transitions - World Energy Outlook Special Report, May 2021. 4 This scenario aligns with the aims of the Paris Agreement and requires steep global annual emissions reduction, sustained for decades, to stay within a 1.5°C carbon budget. 1.5°C is above pre-industrial levels. For more information about the assumptions, outputs and limitations of our 1.5°C Paris-aligned scenario refer to the BHP Climate Change Report 2020 available at bhp.com. 40 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary undergo multiple stages of processing and have a diverse range of end uses. This challenge 2021 Carbon Intensity - Copper Mines1,2 is despite the widely recognised importance Tonnes CO2-equivalent per tonne of copper equivalent of copper for the energy transition and the 25 ongoing role for steel in development as well as decarbonisation. 20 We are continuing our approach to reporting green revenue based on end use, using nickel and uranium by way of illustration 15 Dam as they are the most straightforward of our Norte commodities for which to determine contribution to the energy transition from their end use. 10 Olympic Pampa Escondida Battery manufacture contributes to climate FY22 PPA Impacts change mitigation.1 Therefore, for illustrative 5 purposes,2 we have measured the revenue from our sales to battery materials suppliers as green revenue. Battery-suitable nickel is defined 0 0% 25% 50% 75% 100% as nickel briquettes, nickel powder and nickel sulphate. It does not include off-specification Scope 1 & 2 Freight + Downstream Scope 1 & 2 Freight + Downstream nickel metal. A total of 87 per cent of BHP's battery-suitable nickel was sold to global battery Source: Skarn Associates, BHP material suppliers in FY2022,3 an increase of 15 per cent on FY2021. For FY2022, BHP's green revenue from battery-suitable nickel amounted 2021 Carbon Intensity - Nickel2,3 to US$1,164 million,4 an increase of 53 per cent Tonnes CO -equivalent per tonne of nickel equivalent on FY2021. 2 200 Australian uranium is sold for nuclear power generation only, a low emissions source 160 of electricity. Therefore, also for illustrative purposes, we have measured all revenue from uranium as green revenue. For FY2022, 120 BHP's green revenue from uranium was US$207 million, which is a decrease of 17 per cent on FY2021. 80 Emissions intensity of production West As well as assessing commodities based 40 Nickel on their end uses, it is important to consider the GHG emissions associated with the 0 0% 25% 50% 75% 100% production of commodities in determining their role in the transition to a net zero economy. Scope 1 & 2 Upstream + Freight + Port + Ocean + Downstream Scope 1 & 2 Freight + Port + Ocean Given production of many commodities is expected to need to continue or even increase, Source: Skarn Associates, BHP it is critical that their production has the lowest possible associated GHG emissions and 1 The copper mines emissions intensity curve is based on CY2021 data estimates from Skarn Associates. optimal performance under other sustainability The emissions intensity basis is tonnes of CO2-equivalent per tonne of copper equivalent finished metal per mine. indicators. For example, our Chilean copper We have overlayed Escondida, Pampa Norte (comprised of Spence and Cerro Colorado) and Olympic Dam with reported BHP data points for CY2021 for: i) production (copper - concentrate and cathode; copper equivalent operated asset, Escondida, is aiming to have tonnes); ii) Scope 1 emissions; and iii) Scope 2 emissions. For copper cathode only, emissions intensity 100 per cent renewable electricity supply by estimates from freight only are included and utilise Skarn Associates' data. This is to avoid double counting as the mid-2020s and sources desalinated water smelting and refining emissions would already be included in the Scopes 1 and 2 emissions of BHP assets for cathode production. Downstream emissions intensity estimates of copper concentrate, relating to smelting and for operational purposes, minimising water refining - to produce finished metal as well as emissions from freight - utilise Skarn Associates' data across the extraction from sensitive Andean aquifers. dataset. Noting the renewable PPA arrangements that commenced at Escondida and Spence in FY2022, we 1 For example, the EU taxonomy recognises have also provided the indicative emission intensities for Escondida and Pampa Norte based on FY2022 data battery manufacture as a significant contributor (noting the rest of the of data in the curve is based on CY2021 data). 2 Copper-and-Nickel equivalent calculations: For the copper mines and nickel emission intensity curves, the basis to climate change mitigation. The EU Taxonomy of the intensity is tonne of copper equivalent and nickel equivalent production respectively. Copper equivalent is a classification system, establishing a list of and nickel equivalent production allows comparison of single commodity operations with those that produce by- environmentally sustainable economic activities. and co-products. For example, Escondida's copper equivalent production is calculated as Escondida's CY2021 Note the EU taxonomy does not presently revenue, divided by the CY2021 average realised copper price. For FY2022 estimates in the copper mines cover the mining sector. For more information intensity curve - highlighting renewable PPA impacts - FY2022 revenue, divided by the FY2022 average realised refer to 32021R2139 - EN - EUR-Lex, copper price are used. available at eur-lex.europa.eu/legal-content/EN/ 3 The nickel emissions intensity curve is based on CY2021 data estimates from Skarn Associates. The emissions TXT/?uri=celex%3A32021R2139. intensity basis is tonnes of CO2-equivalent per tonne of nickel equivalent in first saleable metal. Under the Skarn 2 Recognising that a settled methodology for Associates methodology, this includes processed output from the mine, concentrator and smelter (production classifying green revenue in the resources sector and emissions from refineries are not included). For Nickel West, this includes only production attributable to has yet to be determined. BHP ores (Mt Keith and Leinster) and excludes any production and emissions from third party ores. We have 3 Based on percentage of battery-suitable nickel sales overlayed Nickel West with reported BHP data points for CY2021 for: i) production attributable to BHP ores to battery material suppliers. Where a customer's (nickel tonnes and nickel equivalent tonnes); ii) Scope 1 emissions; and iii) Scope 2 emissions. To calculate planned end use is not known with certainty nickel equivalent production, we have used average realised CY2021 nickel prices as well as Skarn Associates' to be for battery supply, assumptions of usage estimate for the CY2021 cobalt price. For emissions, we have pro-rated Scopes 1 and 2 emissions from the have been made using historical nickel usage for Kalgoorlie smelter to account for emissions attributable to BHP production only (i.e. excluding third-party those customers. feed) and excluded emissions from the Kambalda concentrator. To avoid double counting, we have removed 4 Calculated based on gross revenue from battery- Skarn Associates' estimated intensity for downstream processing (i.e. that attributable to smelting) and have suitable nickel multiplied by percentage of BHP's not included emissions from the Kwinana refinery as this is outside of the boundary of the Skarn Associates' sales of battery-suitable nickel, as applicable to methodology. Emissions intensity estimates for Upstream+Freight+Port+Ocean utilises Skarn Associates data battery material suppliers. across the dataset. Upstream emissions are applicable to only Nickel pig iron (NPI) and Ferro-nickel (FeNi) plants' emissions relating to upstream mining and logistics per Skarn Associates' methodology. BHP Appendix 4E 2022 41

7 Sustainability continued Other sustainability indicators for our operated 2021 Carbon Intensity - Seaborne Iron Ore1 assets are disclosed in our ESG Standards and Kilograms CO2-equivalent per tonne of iron ore (wet) Databook available at bhp.com/sustainability. 250 More information on our performance in relation to absolute GHG emissions is provided in 'Operational GHG emissions and energy 200 consumption' and 'Value chain GHG emissions'. Equitable change and transitions 150 There are communities around the world that rely on mining certain commodities that may therefore 100 be disproportionately impacted by the transition to a low-carbon economy. Solutions will require a multi-stakeholder approach including the local 50 WAIO community, investors, financiers, government at all levels and, of course, resource companies such as BHP. 0 0% 25% 50% 75% 100% We have outlined our approach to equitable Scope 1 & 2 (includes integrated: Rail + Port + Ocean) Non-integrated: Rail + Port + Ocean change and transition, taking into account Scope 1 & 2 (includes integrated: Rail + Port + Ocean) Non-integrated: Rail + Port + Ocean the Paris Agreement and the International Source: Skarn Associates, BHP Labour Organisation's (ILO's) Just Transition Guidelines, in OFR 7.1, recognising the role 1 The iron ore emissions intensity curve is based on CY2021 data estimates from Skarn Associates for seaborne iron ore operations. The emissions intensity basis is kilograms of CO2-equivalent per tonne of iron ore (wet basis) of BHP through changes and transitions. produced per mine. BHP operations have been aggregated to WAIO level and overlayed with reported BHP The approach to equitable change and transition data points for CY2021 for: i) iron ore production (wet basis); ii) Scope 1 emissions; and iii) Scope 2 emissions will inform implementation of our strategy for incorporating integrated rail, port and ocean emissions. Non-integrated Port + Rail + Ocean emissions intensity estimates utilise Skarn Associates data across the dataset. In case of WAIO, only the emissions from non- decarbonisation and adaptation to the potential integrated Ocean freight are applicable as Rail & Port emissions are included as part of Scopes 1 and 2 emissions. physical impacts of climate change, as well as apply to the intended closure of NSWEC. 2021 Carbon Intensity - Metallurgical Coal2 Physical risks Tonnes CO2-equivalent per tonne of saleable metallurgical coal Our Adaptation Strategy outlines the proactive 2.00 and collaborative approach we need to take to build the safety, productivity and climate resilience of our operated assets, investments, 1.60 portfolio, supply chain, communities and ecosystems by adapting to the physical risks of climate change. We have analysed specific 1.20 climate-related hazards and developed a more detailed approach to enable financial and 0.80 economic evaluation of physical climate risks and adaptation measures in future years. 0.40 BHP requires operated assets and functions to BMA identify and progressively assess potential physical climate change risks (including to our value chain) 0.0 0% 25% 50% 75% 100% and build climate change adaptation into their plans, activities and investments. In FY2022, we Scope 1 & 2 Freight + Port + Ocean Scope 1 & 2 Freight + Port + Ocean progressed our Adaptation Strategy, conducting a physical climate risk identification process Source: Skarn Associates, BHP for our operated assets and supply chain. 2 The metallurgical coal emissions intensity curve is based on CY2021 data estimates from Skarn Associates. Risks associated with each hazard were prioritised in accordance with our risk process under BHP's The emissions intensity basis is tonnes of CO2-equivalent per tonne of saleable coal produced per mine. BHP operations have been aggregated to BMA level, noting BMC is not highlighted as a BHP operation given Risk Framework, including consideration of their the recent divestment of BHP's interest in BMC. BMA has been overlayed with reported BHP data points for materiality. Across our portfolio of operated assets CY2021 for: i) metallurgical coal production; ii) Scope 1 emissions; and iii) Scope 2 emissions incorporating BHP and associated value chains, we have identified a operated integrated rail and port emissions. Emission intensity estimates for Freight + Port + Ocean logistics of metallurgical coal products utilise Skarn Associates data across the dataset. As BMA utilises both integrated number of common, high potential impact physical (included in Scopes 1 and 2 emissions) and third-party rail and port services, this may result in partial double climate risks; where the 'Highest potential impact counting of emissions. We have also updated the global warming potential factor for CH to the IPCC AR5 across 4 physical climate risks across BHP's operated the dataset for better comparability. assets' table presents the top eight.4 3 For more information refer to skarnassociates.com/ghg. This year, in addition to the absolute emissions (which, together with Cerro Colorado, comprises 4 The first seven risks in the table were selected from each of our operated assets, we disclose Pampa Norte) during FY2022, we have also based on the number of operated assets that identified them as material in accordance with CY2021 GHG operational emissions intensity overlayed the FY2022 intensity of Escondida BHP's Risk Framework and the average Maximum estimates for BHP's iron ore, metallurgical coal, and Pampa Norte to reflect an indicative change Foreseeable Loss severity rating assigned to each. copper and nickel operated assets compared in emissions intensity on the curve from these The absence of a tick means either the risk was identified at the asset, but not rated as material to other mines. Due to the different structure initiatives from FY2022 onwards. Based on this under our Risk Framework, or that it was not of various mines to aid comparability and analysis, GHG emissions intensity of BHP's identified for that asset. Legacy assets and non-consistency with the Skarn Associates3 data for operated assets is estimated to be either in the operated joint ventures have been excluded from the analysis. Legacy assets are to be included in the non-BHP mines, we have included select lowest quartile or the lowest half of the mines the risk evaluations planned for FY2023. The eighth Scope 3 emissions estimates for downstream covered. As our decarbonisation strategy is risk in the table is a collation of material value chain transport and processing of the commodity, executed, we expect the emissions intensity of risks with implications across the regions; its position in the table does not indicate its level of potential where appropriate. Given the commencement our operated assets to further decline. impact relative to the other risks. of renewable PPAs at Escondida and at Spence 42 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Highest potential impact physical climate risks across BHP's operated assets Minerals Australia Minerals Americas Risk description BMA NSWEC Nickel West Olympic Dam WAIO Escondida Jansen Norte Pampa Risk management1 Geotechnical instability Our approach to TSF failure risk management at operated assets is and erosion of tailings multi-dimensional and includes the following key elements: maintenance storage facility of dam integrity; operation, surveillance and maintenance; emergency (TSF) landforms and preparedness and response; TSF governance and standards; and structures under Group-level oversight and assurance. conditions of extreme The Our Requirements for Tailings Storage Facilities standard is aligned rainfall, leading to to the Global Industry Standard on Tailings Management (GISTM) and TSF failure we contribute to efforts to improve TSF management across the mining industry, including through the ICMM Tailings Working Group. For more information on our management of TSF failure risk refer to OFR 7.18. We are working to incorporate climate risk management into the TSF life cycle and have conducted a detailed study on the potential impact of climate change on Laguna Seca TSF at Escondida. Water shortages We have a range of risk management measures for our water-related impacting production, risks, including consideration of climate change projections as relevant associated activities (and where available), covered in more detail at bhp.com/water. (e.g. dust suppression, ore handling) and reputation due to changes in average rainfall and temperature/ evaporation Flooding of mine and/ Per above, risk management measures for our water-related risks are or key production covered in more detail at bhp.com/water. infrastructure (e.g. We have developed internal guidance on incorporating climate change plants, conveyor projections into mine water planning, hydrologic assessment and belts etc.) due to infrastructure design. extreme precipitation We are conducting a pilot study on quantifying the potential impact of this risk, to inform future value-at-risk assessments. While our methodology is still under development, our intent is to support more effective decision-making when prioritising capital investment in risk controls. Disruption and/or We maintain response plans for various scenarios that could impact our damage to port and ability to access key markets, including physical disruptions of outbound coastal infrastructure supply chain logistics. and operations due Stockpile and capacity management and use of weather forecasts are to higher sea levels, some of the tools that may assist in minimising operational disruption at cyclones, storm our ports from weather and/or climate-related events. surge and changes in marine ecosystems We are undertaking more detailed evaluations of the potential climate change impacts for our port and coastal infrastructure, including at Port Hedland and Hay Point. Workforce health and The Our Requirements for Health, Our Requirements for Safety and safety incidents due to Our Requirements for Community standards, together with BHP's Risk extreme events (e.g. Framework, govern our health and safety risk management approach. extreme temperature At our operating sites, we have weather detection monitoring (e.g. causing heat stress) wet bulb temperature) and associated weather preparation and response plans (including Trigger Action Response Plans (TARPs)) to enable our response to potential extreme weather events. Our sites also have Emergency Management Plans in place, and personnel trained in emergency response. Disruption and/or We aim to operate our critical equipment in accordance with industry best damage to electrical practice and ensure that critical equipment components are compliant infrastructure (e.g. with relevant design standards. We have extensive inspection and motors, cooling and maintenance routines, hold inventory of critical spares, and undertake control systems) due to detailed contingency planning, in order to remain resilient in the face extreme temperatures of potential equipment failure or inefficiencies. A number of our sites in FY2023 will evaluate the potential impact on electrical infrastructure of extreme temperatures under different climate scenarios. Disruption and/or Regular maintenance of water infrastructure, such as treatment plants, damage to water pipelines and tanks is critical to ensure that water is adequate for our supply infrastructure operated assets, both in quantity and quality. due to extreme BHP requires our water infrastructure to be designed and constructed to precipitation or flooding meet internal and external standards. Disruption in the Identified as value chain risks across the relevant regions We assess supply categories according to commercial dependency and supply of critical supplier risk, both elements that have informed our selection of key value production inputs and chain inputs for further evaluation of physical climate risk. This work aims critical infrastructure to minimise potential adverse impacts from physical climate risk in our due to extreme value chain. weather events At our Spence copper asset, we have assessed supply chain resilience in relation to the impact that swells, extreme rainfall, earthquakes and tsunamis could have on the supply of diesel, sulphuric acid and supplies for concentrates. The assessment identified specific mitigating controls for consideration by the asset. 1 The risk management measures in this column describe our current approach, which is subject to review for new or additional climate-related measures arising from the subsequent risk evaluation work program planned across all of our operated assets (including legacy assets) in FY2023. BHP Appendix 4E 2022 43

7 Sustainability continued The risk management column in the table We review our performance against targets Operational GHG emissions and energy describes our current approach, which is annually and consider opportunities to consumption - FY2022 performance subject to review for new or additional climate- accelerate ambition regularly. We have In FY2022, our operational GHG emissions related measures arising from the subsequent successfully achieved our short-term target were 15 per cent lower than the adjusted risk evaluation work program planned for our set in 2018 to maintain operational GHG FY2017 baseline1 of 12.9 MtCO -e on the 2 operated assets (including legacy assets) emissions at or below adjusted FY2017 levels by basis of operated assets held by BHP as at in FY2023. FY2022, while continuing to grow our business. 30 June 2022, demonstrating achievement of Our performance against our short-term target our short-term target for FY2022. With inclusion To underpin the subsequent risk evaluation is described in 'Operational GHG emissions and of BHP's recent divestments, Discontinued work program planned across all of our energy consumption - FY2022 performance'. operations (Petroleum) and BMC operations operated assets (including legacy assets) (both annualised for FY2022), operational GHG and key supply chain infrastructure, we have Our operational GHG emissions are measured emissions were also 15 per cent lower than the sourced projections of acute and chronic against our target performance based on an climate variables from a leading climate science operational control, market-based methodology. previously adjusted FY2017 baseline.2 consultancy. The risk evaluation process will be We also disclose operational GHG emissions In FY2022, total operational energy consumption a further step toward identifying and prioritising by equity share and financial control in our decreased 4 per cent from FY2021. This was additional adaptation measures and reporting ESG Standards and Databook available at largely driven by reduced energy use at Olympic potential financial impacts in later years, bhp.com/climate. Dam due to scheduled maintenance and including a value-at-risk range. We have already reduced fuel consumption at our operated coal allocated US$200 million to studies on physical assets. Scope 1 and 2 emissions decreased climate risk prevention and mitigation measures 25 per cent from FY2021 primarily due to an at our Minerals Americas operated assets. increase in the renewable component of our We have also identified a number of energy consumption at Escondida and Pampa opportunities to adapt to the potential physical Norte in Chile. impacts of climate change, primarily related to improving operational efficiency and Operational energy consumption by source (PJ)1,2 innovation, taking collaborative action to grow Year ended 30 June 2022 2021 2020 the resilience of our value chain, and supporting Consumption of fuel 112 118 114 local communities and ecosystems. In FY2023, - Coal and coke 1 1 1 we plan to undertake risk evaluations at our - Natural gas 22 23 21 operated assets (including legacy assets) - Distillate/gasoline 87 91 90 including assessment of chronic physical risks, - Other 2 3 2 implement any 'quick win' adaptation actions Consumption of electricity 37 37 36 and initiate studies on measures expected to - Consumption of electricity from grid 33 33 32 require significant capital investment. We also Total operational energy consumption 149 155 150 plan to further study prioritised value chain risks Total operational energy consumption to understand with more specificity where risk 8 (adjusted for divested operations) 132 137 135 is concentrated. These actions are intended 3 Operational energy consumption from renewable sources 17.1 0.5 0.0 to contribute to addressing the climate-related Operational energy intensity (gigajoules per tonne of copper risks noted under the Inadequate business 9 equivalent production) 18 21 19 resilience risk factor in OFR 9.1. We also intend to continue to build an understanding of how Operational GHG emissions (MtCO -e)1,4,5,11 the communities where we operate may be 2 impacted by future climate events and embed Year ended 30 June 2022 2022 2021 2020 consideration of ecosystem-based adaptation, to Scope 1 GHG emissions6 9.2 10.1 9.6 contribute to both climate resilience and BHP's Scope 2 GHG emissions7 3.1 6.2 6.3 biodiversity commitments and goals. Total operational GHG emissions 12.3 16.3 15.9 Scope 1 GHG emissions (adjusted for divested operations)8 7.9 8.8 8.3 Operational energy consumption GHG emissions and Scope 2 GHG emissions (adjusted for divested operations)8 3.0 6.1 6.2 Total operational GHG emissions We recognise the role we must play in helping (adjusted for divested operations)8 11.0 14.9 14.6 the world achieve its decarbonisation ambitions. Carbon offsets retired12 -0.3 This includes reducing our operational emissions Total operational GHG emissions (including carbon offsets)12 12.3 16.0 and working with our supply chains to reduce Operational GHG emissions intensity their emissions. Looking to the future, our aim (tonnes CO -e per tonne of copper equivalent production)9 1.5 2.2 2.0 2 remains to position BHP to thrive in a low-carbon Percentage of Scope 1 GHG emissions covered under world by minimising emissions from existing an emissions-limiting regulation10 78% 81% 81% products while helping to provide commodities Percentage of Scope 1 GHG emissions from methane13 18% 22% 19% that the world needs to achieve a net zero future. Scope 2 GHG emissions (location based)7 4.8 5.0 5.1 Refer to 'BHP's climate change targets and 1 Data in italics indicates that data has been adjusted since it was previously reported. FY2021 originally reported goals' for our operational emissions target energy data that has been restated is 92 PJ distillate/gasoline consumption, and 2 PJ other energy consumption, and goal. due to amended classification of petroleum based oils and greases to the 'other' category. FY2021 originally reported emissions data that has been restated is 10.0 MtCO2-e for Scope 1 GHG emissions and 16.2 MtCO2-e for total operational GHG emissions, due to minor amendments to fugitive emissions from the coal operated assets as part of the annual reconciliation process for Australian regulatory reporting purposes. FY2021 and FY2020 'Total operational GHG emissions (adjusted for divested operations)' have been restated from 16.2 and 1 Baseline adjusted to remove Discontinued 15.9 Mt CO2-e respectively due to the exclusion of Discontinued operations (Petroleum) and BMC (also see operations (Onshore US assets and Petroleum) and footnote 8). Previously reported data excluded Discontinued operations (Onshore US assets) only. Additionally, BMC and for method changes (use of IPCC AR5 non-material adjustments in prior year asset-level data and changes to presentation of the data has, in certain Global Warming Potentials (GWP) and a move to instances, resulted in minor impacts to the rounding of data since it was previously reported. facility-specific emissions calculation methodology 2 Calculated based on an operational control approach in line with World Resources Institute/World Business for fugitives at Caval Ridge) to ensure ongoing Council for Sustainable Development guidance. Consumption of fuel and consumption of electricity refers to comparability of performance. For more information annual quantity of energy consumed from the combustion of fuel; and the operation of any facility; and energy refer to the BHP Scopes 1, 2 and 3 GHG emissions consumed resulting from the purchase of electricity, heat, steam or cooling by the company for its own use. calculation methodology available at bhp.com/climate. Data has been rounded to the nearest 1 PJ to be consistent with asset/regional energy information in this Report. 2 Original baseline adjusted in FY2019 to remove In some instances, the sum of totals for sources, commodities and assets may differ due to rounding. Discontinued operations (Onshore US assets). 44 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary 3 Renewable energy consumption includes third-party supplied electricity from renewable generation where concepts for large-scale haul truck electrification PPAs are in place specifying generation requirements, evidenced by Renewable Energy Certificates (RECs) or and charging systems. In addition to progressing supplier-provided documentation in line with the Greenhouse Gas Protocol Scope 2 Guidance unless otherwise specified. Renewable energy consumption at Escondida and Pampa Norte is currently sourced from invoice data; the availability of fleet solutions for zero some refinements may need to be made to renewable energy reported from these assets in the future. emission material movement, we are working 4 BHP currently uses GWP from the IPCC AR5 based on a 100-year timeframe for all operations. on readying the business for electrification of Minerals Americas operated assets transitioned from IPCC Assessment Report 4 (AR4) to AR5 GWP in FY2022; all other operated assets transitioned in FY2021. material movement by better understanding the 5 Scope 1 and Scope 2 GHG emissions have been calculated based on an operational control approach (unless energy balance associated with a fully electrified otherwise stated) in line with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. operation, quantifying future electricity demand For more information refer to the BHP Scope 1, 2 and 3 GHG emissions calculation methodology available at and associated infrastructure requirements (e.g. bhp.com/climate. Data has been rounded to the nearest 0.1 MtCO2-e to be consistent with asset/regional GHG emissions information in this Report. In some instances, the sum of totals for sources, commodities and assets transmission lines), modelling potential changes may differ due to rounding. to our concept of operations, and evaluating our 6 Scope 1 refers to direct GHG emissions from operated assets. Scope 1 emissions currently include diesel reliance on supporting infrastructure such as consumed in explosives; some refinements may be made to emissions reported from this source in future. trolley lines and fast charging capabilities. 7 Scope 2 refers to indirect GHG emissions from the generation of purchased or acquired electricity, steam, heat or cooling that is consumed by operated assets. Our Scope 2 GHG emissions have been calculated using the market-based method, in line with the Greenhouse Gas Protocol Scope 2 Guidance unless otherwise specified. Decarbonising fugitive emissions A residual mix emission factor is currently unavailable to account for grid electricity emissions remaining after Although currently relatively small in relation removal of quantities directly contracted between parties; this may result in double counting of low emissions or renewable electricity contributions across grid-supplied consumers. Scope 2 emissions from Escondida and to other emissions sources at BHP's operated Pampa Norte are currently sourced from metered data; some refinements may need to be made to emissions assets, fugitive methane emissions pose reported from these assets in the future. considerable technical and economic challenges 8 Divested operations are BMC (sale completed on 3 May 2022), BHP's Petroleum business (merger with for our abatement ambitions. We are working Woodside completed on 1 June 2022) and Onshore US assets (sale completed on 31 October 2018). Non-material acquisitions and divestments are included in the total. closely with a range of leading organisations 9 For this purpose, copper equivalent production has been calculated based on FY2022 average realised product in technology, research and industry across prices for FY2022 production, FY2021 average realised product prices for FY2021 production and FY2020 the globe, to develop new approaches and average realised product prices for FY2020 production. Production figures used are consistent with energy and GHG emissions reporting boundaries (i.e. BHP operational control) and are taken on 100 per cent basis. address the issue collectively. This includes 10 Scope 1 GHG emissions from BHP's facilities covered by the Safeguard Mechanism administered by the Clean investigating opportunities for improving the Energy Regulator in Australia, Saskatchewan Output-Based Performance Standards (OBPS) program in Canada, comprehensiveness and accuracy of methane and the distillate and gasoline emissions from turbine boilers at the cathode plant at Escondida covered by the emissions measurement. Under current Green Tax legislation in Chile. FY2020 has been restated from 80 per cent due to changes in reported emissions at Australian Petroleum operations. reporting requirements, we use a combination 11 More information on our strategy to further reduce GHG emissions, including our investments in low-emissions of direct measurement and default, production-technology and natural climate solutions, is available in the BHP Climate Change Report 2020 and the BHP based factors for different coal mine methane Climate Transition Action Plan 2021 available at bhp.com/climate. sources. While emerging satellite and aerial- 12 From FY2021, we have calculated an additional operational GHG emissions total for the reporting year including contributions from the retirement of a quantity of carbon offsets. This figure is calculated by subtracting the based sensing technology is providing new number of carbon offsets retired, if any (each equivalent to a single tonne of CO2-e reduced or 'removed' from and potentially valuable perspectives, much the atmosphere) from the total GHG emissions reported under our operational control boundary for the year. more work is required to understand its This is not intended to establish a recurrent approach. More information on our approach to carbon offset use and the specifics of the carbon offsets retired in FY2021 is available at bhp.com/climate. BHP is committed to practical application to geographically large, transparently disclosing the carbon offsets that we retire towards meeting our own climate change targets and diffuse sources of very dilute methane such as goals. We did not retire any offsets for this purpose in FY2022. open-cut coal mines - particularly in crowded 13 In FY2022, the Caval Ridge operation moved to a facility-specific emissions calculation methodology for neighbourhoods such as the Bowen Basin and fugitive emissions as detailed in the NGER (Measurement) Determination 2008 (Method 2 - extraction of coal). When comparing FY2022 to FY2021, this methodology change contributed 1.6 per cent of the overall 4 per cent Hunter Valley where numerous mines co-exist in reduction in our Percentage of Scope 1 GHG emissions from methane. close proximity with a range of other significant industrial and agricultural methane sources. Our operational - BMA's PPA with CleanCo will deliver Project prioritisation decarbonisation pathway approximately 50 per cent of its annual electricity from renewable sources by 2025.1 Through studies and our capital allocation Decarbonising electricity process, we seek to optimise the risk and reward - Nickel West signed PPAs to provide its Decarbonising electricity by switching to proposition for operational decarbonisation operations with renewable power, with renewables at our operated assets is a priority projects to allocate capital and optimise agreements for the Flat Rocks Wind Farm, decarbonisation lever for this decade, in decarbonisation at a portfolio level. We have the Merredin Solar Farm and the Northern addition to a focus on preparing the business for developed an internal marginal abatement cost Goldfields Solar Project. widespread diesel displacement in the 2030s. curve designed to support the allocation of - Olympic Dam entered into renewable energy capital towards the most economically efficient The majority of our electricity supply is delivered supply arrangements for up to 50 per cent of and effective decarbonisation projects. via electricity networks and is accounted for as its electricity by 2025.2 Scope 2 emissions. We are currently working to We regularly monitor our forecasted operational reduce Scope 2 emissions via renewable energy Decarbonising diesel GHG emissions to check we are on track. PPAs, such as those already executed in Chile, As a result of actions taken in recent years, Diesel displacement represents the largest Queensland, South Australia and grid connected particularly securing the supply of renewable technical challenge to our decarbonisation sites in Western Australia. Additionally, work energy at some operations, we achieved our pathway for operated assets in terms of the is underway to decarbonise remote power short-term target, for FY2022, and our currently magnitude of GHG emissions abatement demands in Western Australia either through projected performance in FY2030 is tracking required, predominantly driven by consumption PPAs with independent power producers or via to plan against our medium-term target. by our haul truck fleet. We are taking steps now 'behind the meter' renewable energy installations Progression of planned project studies are to accelerate the essential role that original where we self-generate electricity in the Pilbara. regularly reviewed. equipment manufacturers must play in the Power decarbonisation progressed with key development of new equipment to address Value chain GHG emissions successes in FY2022 including: emissions from our trucks and rail fleet. We recognise the importance of supporting the This includes partnerships to trial battery- - The Minerals Americas PPAs became climate transition in our value chain. In 2020, electric locomotives, to develop electrified haul operational in August 2021 and January 2022, BHP set Scope 3 emissions goals for 2030 trucks and collaboration such as the 'Charge with Escondida and Spence aiming to use 100 to support decarbonisation for processing On Innovation Challenge' aimed at developing per cent renewable electricity by the mid-2020s. of our steelmaking products and maritime transportation of our products. In 2021, we added to these goals with a long-term goal and 1 Including the purchase of large-scale generation certificates (LGCs). targets for Scope 3, supported by an action 2 Including the purchase of LGCs. A portion of the LGCs are to be created from the new Port Augusta Renewable Energy Park. BHP Appendix 4E 2022 45

7 Sustainability continued plan of working with industry, including our decarbonisation framework' they are in. This of steel decarbonisation pathways through customers and suppliers, to achieve sectoral 'steel decarbonisation framework' is designed these customer partnerships. The goal of these decarbonisation. Refer to 'BHP's climate by BHP to describe the technology pathways partnerships is to support the maturation and change targets and goals' for our goals and to decarbonising the global integrated iron and scaling-up of fit-for-purpose solutions across targets for Scope 3 emissions. As a producer steel industry. the steelmaking value-chain in all stages of of materials that are essential building blocks steel decarbonisation. BHP's customers in steelmaking are diverse, of decarbonisation, BHP is supporting the global with some integrated steelmakers in the We intend to progress our customer partnerships transition to a more sustainable development 'optimisation' stage, focused on energy and over three phases: trajectory by evolving the solutions we provide process efficiency, increasing scrap ratios and to our customers and the solutions we procure 1. Conduct feasibility studies or lab/bench-scale raw materials optimisation. Other customers from our suppliers and partners. research and development in priority areas. are exploring 'transition' stage solutions like Progress in FY2022 alternative fuels, modified blast furnace (BF) 2. Pilot-scale trial, where we jointly test potential operations, and end-of-pipe solutions like solutions to key technical challenges Steelmaking Carbon Capture and Utilisation (CCU) and at a larger scale that is sufficient to In FY2022, we progressed our work in Carbon Capture, Utilisation and Storage understand the impact of raw material and supporting the steelmaking industry to (CCUS). Some companies are investigating operational parameters. accelerate decarbonisation. To support positive the viability of 'green end-state' technologies, 3. Trial at a customer plant, where we focus climate outcomes in both the near term and long such as hydrogen-based direct reduction iron on optimal, high impact decarbonisation term, we believe it is important to help enable (DRI) with electric arc furnace steelmaking solutions for deployment on a limited basis our customers at whatever stage of the 'steel and direct electrolysis processes, like molten- at select sites. oxide electrolysis. In FY2023, we intend to progress a subset of Steel decarbonisation framework existing customer partnerships on projects that Potential in aggregate have the potential to deliver 30 per cent emissions intensity reduction if adopted at emissions intensity Optimisation stage Transition stage Green end state scale post-2030. We will also continue exploring reduction 20% CO reduction vs. BAU1 50-60% CO reduction vs. BAU 90% CO reduction vs. BAU 2 2 2 other partnerships that are complementary to Customer - HBIS: Enhanced - Baowu: Modified - HBIS: Hydrogen DRI our geographic or technology priorities, or that partnerships lump utilisation, BF oxygen and - JFE: DRI pathways with can help make existing projects more effective slag recycling hydrogen injection BHP ores and efficient. For instance, on 20 July 2022, - POSCO: Coke - Baowu & POSCO: we announced a new MOU with Tata Steel quality optimisation CCUS application within to collaborate on the use of biomass as a integrated steelmaking source of energy and the application of CCU - JFE: Coking coal and iron ore impact - Tata: Use of biomass in steel production. on agglomeration and CCU Maritime Innovation & - R&D novel - R&D ultramafic - Ventures completed lab Our strategy for supporting the maritime technology beneficiation sequestration trials producing metallic iron industry's climate transition includes advocacy, technologies - R&D with Hatch and using BHP ores with Boston adoption of low- and zero-emissions fuels or - R&D microalgae University of Newcastle Metal and Electra Steel blending for premium on hydrogen injection into other efficiency technologies (like wind-assisted propulsion) and deploying real-time data coking coal quality modified BF analytics to optimise vessel and route selection - Supported the CCUS to improve operational efficiency. For example, Knowledge Centre, as a in FY2022: member of the CO2CRC -Advocacy: We signed the industry call to Product & - Studying beneficiation at our Jimblebar iron - Testing programs to assess action with more than 150 other organisations portfolio ore operation performance of BHP's ores urging governments to commit to - Studying improvements of BMA metallurgical in DRI and electric furnace decarbonising international shipping by 2050, coal quality steel production surpassing the levels of ambition set out in Advocacy & - Joined the Global Low-Carbon Metallurgy Innovation Alliance, which is led by Baowu and the International Maritime Organisation's standards includes World Steel Association and many steel industry stakeholders Initial GHG Strategy. This is in addition to the - Engage with industry decarbonisation initiatives, including our customers, advocacy work we do with the Global Centre Responsible Steel, and the Australia Industry Energy Transition Initiative, by sharing for Maritime Decarbonisation in Singapore, expertise and participating in consultation on emissions standards and accelerating of which we became a founding member decarbonisation pathways in FY2021. 1 BAU means business as usual, referring to a trajectory of steelmaking emissions intensity if no changes occur. -Zero-emission fuels: We joined the US Government's First Mover's Coalition, launched at COP26 in Glasgow, as a member Our strategy to support steelmaking is to In FY2022, BHP signed a Memorandum of in the shipping sector. This means we commit partner, innovate, advocate and supply the Understanding (MOU) to partner with South to 10 per cent of BHP's products shipped to optimal products across these stages. Access by Korean steelmaking company POSCO to our customers on our time charter vessels steelmakers to higher-quality metallurgical coal study optimising coal/coke quality for low- being on vessels using zero-emissions and iron ore products, which enables them to carbon blast furnace operation and CCUS. fuels by FY2030.2 BHP has also formed a be more efficient and lower-emissions intensity, This is in addition to our existing partnerships consortium with Rio Tinto, Oldendorff, Star is an important component of the transition with Baowu, JFE and HBIS. Across the four Bulk and the Global Maritime Forum to to a low-carbon future. To support this, we partnerships, we are working with companies analyse and support the development of an are assessing the opportunity to implement that represent approximately 12 per cent of iron ore maritime green corridor, fuelled by beneficiation at our Jimblebar iron ore operation reported global steel production capacity, green ammonia. and metallurgical coal product improvements at covering 31 per cent of our direct sales in iron 2 Subject to the availability of technology, supply, our BMA operations. ore and 19 per cent in metallurgical coal in safety standards and the establishment of reasonable thresholds for price premiums. FY2022. BHP has committed to invest up to US$75 million in research and development 46 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary - Transition fuels: We progressed use of LNG factors to industry average quantity-based and non-battery products to increase as a transitional fuel. BHP has chartered the emissions factors or emissions factors transparency as our nickel business grows world's first LNG-fuelled Newcastlemax bulk sourced directly from suppliers. to be sufficiently material to report. carriers to transport iron ore from Western - Categories 4 and 9 Upstream and - Category 11 Use of sold products: BHP Australia to Asia from Eastern Pacific Shipping downstream transportation and has historically marketed a small portion of (EPS) for five years and awarded the LNG distribution: We successfully developed BMA products against thermal coal indexes. fuel contract to Shell. The fuel, along with and operationalised a carbon accounting In FY2022, this portion was approximately improved efficiency of the vessel design, is and decision support system tailored 6 per cent, up from 2 per cent in FY2021. expected to reduce GHG emissions intensity to ship chartering, leveraging DNV's For purposes of enhancing the transparency by up to 30 per cent on a per voyage basis. Veracity platform. and accuracy of our Scope 3 emissions We have already operationalised two vessels - Category 10 Processing of sold products: reporting, for FY2022 we have broken out and expect to deliver another three vessels the energy coal portion of BMA product. in FY2023. BHP is also exploring biofuels as - We increased the granularity of calculations The portion of energy coal in BMA's product an interim GHG emission abatement option for downstream emissions associated with mix is influenced by both production and for shipping. In FY2022, we issued a Request the processing of our copper products, market forces; we anticipate that assessments for Proposal for procurement of sustainable- removing the double counting of our Scope into improved product quality will support certified (REDII or ISCC)1 biodiesel. 1 and 2 emissions previously present in a reduction in BMA products marketed as our calculations. Procurement - We also began reporting downstream thermal coal. In FY2022, we conducted a survey and For more information refer to the assessment of the climate positions of our top Scope 3 emissions for nickel processing BHP Scope 1, 2 and 3 GHG emissions 500 direct suppliers, representing approximately accounting for emissions from battery calculation methodology available at bhp.com/climate. 76 per cent of our spend.2 Through this study, we found that 27 per cent of the suppliers Scope 3 GHG emissions by category (MtCO -e)1 surveyed have Scope 1 and Scope 2 targets 2 and/or goals aligned with our own. In the coming Year ended 30 June 2022 2021 2020 years, we intend to systematise our tracking Upstream and engagement of suppliers in relation to their Purchased goods and services public climate strategies. (including capital goods)2 9.9 10.1 9.8 Fuel and energy related activities 1.0 1.1 1.2 In order to engage and incentivise our suppliers, we integrated climate commitments into our Upstream transportation and distribution3 4.6 4.8 4.6 sourcing document and evaluation criteria. Business travel4 0.1 0.1 0.1 We intend to continue to refine and integrate Employee commuting4 0.3 0.4 0.2 metrics related to incentivising positive climate Downstream outcomes from our suppliers going forward. Downstream transportation and distribution5 3.2 3.1 2.9 Investments (i.e. our non-operated assets)6 2.7 2.7 2.7 Scope 3 GHG emissions Processing of sold products7 performance GHG emissions from steelmaking8 305.3 300.5 292.9 The most material part of BHP's reported - Iron ore processing to crude steel 270.8 260.7 252.8 Scope 3 emissions inventory comes from - Metallurgical coal processing to crude steel9 34.5 39.8 40.1 the downstream processing of our products, Copper processing10 1.0 1.0 1.0 in particular from the emissions generated Nickel processing11 0.3 by steelmaking through the processing of Total processing of sold products 306.7 301.5 294.0 iron ore and metallurgical coal. We estimate Use of sold products that in FY2022, emissions associated with Energy coal12,13 37.6 38.3 56.4 the processing of our sold products was Natural gas13 17.4 19.5 20.6 307 MtCO2-e, an increase of 2 per cent from Crude oil and condensates13 15.9 16.8 17.9 FY2021. The increase comes primarily from Natural gas liquids13 1.7 1.8 1.9 an increase in the production of iron ore Total use of sold products 72.6 76.4 96.8 from Samarco. Total Scope 3 GHG emissions 401.2 400.1 412.3 Total Scope 3 GHG emissions After the merger of our Petroleum business with 14 (adjusted for divested operations) 364.3 359.7 369.5 Woodside, emissions associated with the use of our energy products is now only from energy 1 Corporate Scope 3 GHG Value emissions Chain (Scope have been 3) Accounting calculated and using Reporting methodologies Standard consistent (Scope 3 with Standard) the Greenhouse . Scope 3 GHG Gas emissions Protocol coal,3 which in FY2022 was 38 MtCO -e. 2 reporting necessarily requires a degree of overlap in reporting boundaries due to our involvement at multiple points in We are also progressing and improving our assumptions the life cycle of and the key commodities references we used produce in the preparation and consume of. our For Scope more information 3 GHG emissions on the calculation data refer to methodologies, the BHP Scope approach and methodology for GHG emissions 1, 2 and 3 GHG emissions calculation methodology available at bhp.com/climate. estimations. Key refinements to our methodology 2 In 'Purchased FY2022, we goods made and further services improvements (including capital in how goods)' we calculate category Scope by switching 3 GHG emissions the emissions associated estimation with of the high -for Scope 3 this year, in line with the GHG materials) spend goods from from spend select -based categories emissions (including factors explosives, to industry grinding average media, quantity conveyor -based emissions belts, tyres, factors and or select emissions bulk Protocol, include: (including factors sourced capital directly goods)' from category suppliers were . Previously 8.9 MtCO reported -e in FY2021 GHG and emissions 8.8 MtCO for - the e in 'Purchased FY2020. goods and services 2 2 - Categories 1 and 2 Purchased goods and 3 or Includes similar product terms, as transport well as where purchased freight transport costs are services covered for by process BHP, for inputs example to our under operations Cost and . In Freight FY2022, (CFR) we services (including capital goods): We successfully developed and operationalised a carbon accounting and decision support system tailored to ship piloted switching the emissions estimation chartering, the 'Upstream leveraging transportation DNV's and Veracity distribution' platform category . This also for resulted FY2021 in and a restatement FY2020. For of FY2022, our maritime we have emissions also added in of high-spend goods from select categories GHG quantity emissions method associated in the 'Purchased with inbound goods freight and services to this category (including of capital purchased goods)' goods category that .we Previously transitioned reported to a GHG (including explosives, grinding media, emissions for the 'Upstream transportation and distribution' category were 3.8 MtCO -e in both FY2021 and FY2020. 2 conveyor belts, tyres, and select bulk 4 commuting' Minor restatements categories, of emissions resulting from for Scope adjustments 3 GHG to emissions underlying associated data due with to spend the 'Business data reclassifications, travel' and 'Employee have been materials) from spend-based emissions made for both FY2021 and FY2020. 1 Renewable Energy Directive or International Sustainability and Carbon Certification. 2 This percentage is calculated as a share of our total spend in FY2021, and total spend is defined as the categories of spend that are relevant to Scope 3 emissions reporting categories, which excludes intra-company payments, internal payroll, community and charitable donations, and expenses associated with regulatory compliance and taxation. 3 In line with our reporting methodology for Scope 3 emissions, we define our energy products as oil, gas and energy coal. We account for metallurgical coal within the 'Processing of sold products' category (within emissions from steelmaking). BHP Appendix 4E 2022 47

7 Sustainability continued 5 This not cover category the freight includes costs, emissions for example associated under with Free transportation on Board (FOB), of BHP's Ex Works products (EXW) to the or similar customer terms where . In FY2022, we do broader sustainability co-benefits. We are an we successfully developed and operationalised a carbon accounting and decision support system tailored to ship active member on several international carbon chartering, 'Downstream leveraging transportation DNV's and Veracity distribution' platform category . This also for resulted FY2021 in and a restatement FY2020. Previously of our maritime reported emissions GHG emissions in the markets bodies including the International for this category were 3.8 MtCO2-e in FY2021 and 4.0 MtCO2-e in FY2020. Emissions Trading Association and the Taskforce 6 For are owned BHP, this as category a joint venture covers but the not Scope operated 1 and by Scope BHP. 2In GHG FY2022, emissions all GHG (on emissions an equity estimates basis) from from our non assets -operated that on Scaling Voluntary Carbon Markets. assets were developed from data provided directly by operators. Emissions from Tamakaya Energía SpA (i.e. the Kelar Power plant) that are additional to the emissions reported under Scope 2 for Escondida and Pampa Norte Use of carbon credits or offsets under the operational control boundary are reported in the Scope 3 'Investments' (i.e. our non-operated assets) category. The categorisation of Scope 3 emissions from Tamakaya Energía SpA is under review and may change BHP prioritises emissions reduction at our associated in the future with . Tamakaya Kelar Power Energía Plant SpA generation emissions that for was FY2021 sold and to the FY2020 grid and have to update been restated data that to was include provisional emissions in operated assets to achieve our Scope 1 FY2021. Due to the effective economic date of 31 December 2020 for the sale of BHP's interest in Cerrejón, Scope and 2 target and goal, with investments in 1 (on and an Scope equity 2 basis) emissions from our (on Petroleum an equity basis) non-operated from Cerrejón assets are are not reported included for in the FY2022 Rhourde . Scope Ouled 1 Djemma and 2 emissions (ROD) external carbon offset projects considered Integrated Development, Algeria up to the date of divestment of our interest in the ROD Integrated Development complementary to this 'structural abatement'. in Petroleum April 2022, business and for with the Woodside other Petroleum of 1 June non - 2022 operated . Previously assets reported up to the GHG completion emissions date for of the this merger category of were our Although we prioritise internal emission 2.5 MtCO2-e in FY2021 and 2.6 MtCO2-e in FY2020. reduction, we acknowledge a role for offsets 7 uranium Scope 3 oxide GHG emissions products are associated not currently with included, downstream as production processing volumes of our zinc, are gold, relatively silver, low ethane, and a cobalt, large range and in a temporary or transitional capacity while petroleum of possible products end uses is apply also excluded and/or downstream as these emissions emissions are are considered estimated immaterial to be immaterial compared . Processing/refining to the end-use product of abatement options are being studied, as well combustion reported in the 'Use of sold products' category. as for 'hard to abate' emissions with limited or 8 All GHG our emissions iron ore and to BHP's metallurgical metallurgical coal products coal is based are assumed on the global to be processed average input into mass steel .ratio Allocation of metallurgical of steelmaking coal vs no current technological solutions, and where access to renewable energy is constrained. estimate iron ore to Scope the blast 3 GHG furnace emissions -basic oxygen reflects furnace the blast (BF furnace -BOF) integrated steelmaking steelmaking route. The route GHG into emission which factor the majority used to of BHP's steelmaking raw materials portfolio is sold. The estimation also considers BHP iron ore product quality and BHP has five potential 'use cases' for carbon intensity its impact factors on the to amount reflect of any ore evolution required in to our produce product steel quality . We and/or will monitor flows and through adjust, to other as required, pathways the (such balance as direct of offsets, to complement the structural emissions reduced iron electric arc furnace (DRI-EAF)). abatement that we prioritise (refer to the 'BHP 9 Emissions are reported associated up to the with completion customers' date processing of divestment of metallurgical of our interest coal in BMC products of 3 May, (on an 2022 equity . This basis) does from not BMC have an Carbon Offset Use Cases' table). This includes impact on total GHG emissions reported from steelmaking due to the integrated nature of our calculations with our contributing to our Scope 1, 2 and 3 emission divested iron ore production operations)' volumes, figure provided and therefore at the does end of not the impact table. the See illustrative footnote 14 'Total for more Scope details 3 emissions . (adjusted for reduction targets and goals and complying 10 In FY2022, we increased the granularity of calculations for downstream emissions associated with the processing of with emissions regulations (e.g. under the by our third copper parties products and our . We own now copper split our cathodes, product which volumes are into assumed copper to concentrates be processed that into are copper processed semi- into fabricated cathodes Australian Safeguard mechanism) as we products. This has also removed the double counting of our Scope 1 and 2 emissions previously present in our work to decarbonise our business. We use calculations FY2021 and. FY2020 This has . Previously resulted in reported a restatement GHG of emissions copper processing for copper in processing the 'Processing in the 'Processing of sold products' of sold category products' for our social investment to fund research into category were 5.0 MtCO2-e in FY2021 and 5.2 MtCO2-e in FY2020. new and emerging natural carbon offsetting 11 In as FY2022, our nickel we business also began grows reporting to be sufficiently downstream material Scope to 3 report emissions . Our for methodology nickel processing covers downstream to increase transparency emissions methodologies, and to fund offsets projects with from customers' processing of BHP's nickel products in four segments. Based on sales data, we estimate emissions social value co-benefits in line with our social of alloys (1) our production; nickel intermediates (3) nickel metal that that goes goes to third into- party nickel refiners; sulphate (2) (NiSO nickel) for metal battery that goes value into chains; stainless and (4) steel BHP's and value framework.2 We also explore commercial NiSO that goes directly into battery precursor active material production 4 . Historical emissions have not been opportunities to work with organisations in our retroactively 4 reported as GHG emissions for nickel processing in the 'Processing of sold products' category are value chain to supply offsets to supplement their estimated to be immaterial. focus on emissions abatement, including the 12 BHP was approximately has historically 6 marketed per cent, up a small from portion 2 per cent of BMA in FY2021 products . For against purposes thermal of enhancing coal indexes the .transparency In FY2022, this and portion bundling of offsets into product transactions.3 production accuracy of based our Scope on the 3 percentage emissions reporting, of BMA product for FY2022 marketed we have as thermal estimated coal the and energy associated coal component GHG emissions of BMA and included in the 'Use that of under sold products' energy coal category in the for 'Use FY2021 of sold and products' FY2020 category as the .energy We have coal not component restated energy of BMA's coal sales emissions in those Sourcing Due years to is the estimated effective to economic be immaterial date .of We 31 will December continue 2020 to review for sale the of energy BHP's coal interest contribution in Cerrejón, from Scope BMA in 3 future emissions years . We perform due diligence designed to ensure for customers' processing of product from Cerrejón are not included in FY2022. we invest in carbon offsets that adhere to the 13 All crude oil and condensates are conservatively assumed to be refined and combusted as diesel. Energy coal, following minimum quality standards:4 use natural of energy gas and products natural from gas liquids our Petroleum are assumed business to be were combusted reported . Scope up to the 3 emissions date of divestment associated of with our customers' interest in - Registered under an internationally the ROD Integrated Development in April 2022, and up to the effective date of the merger of our Petroleum business with Woodside of 1 June 2022 for the other Petroleum assets. recognised standard that independently 14 in Due the to ROD the merger Integrated of our Development Petroleum business (completed with in Woodside April 2022), (completed divestment on of 1 our June interest 2022), in divestment BMC (completed of our interest on verifies and issues voluntary carbon credits 3 May 2022), and divestment of our interest in Cerrejón (completed 31 December 2020), associated downstream and/or satisfies national carbon offset illustrative Scope 3 emissions total, noting from that the other 'Use categories of sold products' have not and been 'Investments' removed for categories the merger are or removed divestments to generate due to this the standards for compliance offsets. complexity removal of BMC of underlying emissions data does . Due not to impact the current the total methodology for 'Processing we use of for sold estimating products' steelmaking category (also emissions, see footnote the 9). - Adheres to a robust emission reduction Due to the effective economic date of 31 December 2020 for sale of BHP's interest in Cerrejón, Scope 3 emissions accounting methodology to provide (on only an impacts equity FY2021 basis) from and Cerrejón FY2020 emissions are not included totals for in FY2022 the 'Total reporting Scope . 3 As GHG a result, emissions the removal (adjusted of Cerrejón for divested assurance of the volume of emissions operations)' figure. reduced through a project. - Demonstrates that the emissions Natural climate solutions ecosystems. We focus on project support, reductions are additional to ensure that the governance, knowledge and innovation, and emissions would not have been reduced in Investing in natural ecosystems is a cost-market stimulation for carbon credits generated the absence of a carbon offset market. effective and immediately available solution by these projects. For example, in FY2022 we - Has a high likelihood of permanence to to mitigate climate change that often provides launched a new A$3 million grants program to ensure the emissions reduction are ongoing sustainability co-benefits, such as biodiversity help drive the development of the Australian blue and not reversed (e.g. in the case of forestry conservation, improved water quality or carbon market by providing funding and support projects, the trees are not cut down or support for local communities. We support to emerging blue carbon projects.1 destroyed by a natural disaster). the development of market mechanisms that channel private sector finance into projects Governance - Provides robust mitigation against leakage that increase carbon storage or avoid GHG ensuring an offsetting project does not BHP advocates for the development of efficient emissions through conservation, restoration increase emissions elsewhere (e.g. an area is global carbon markets that facilitate high-quality and improved management of terrestrial protected from deforestation through offsetting offsetting that is both cost-effective and delivers landscapes, wetlands and coastal and marine but another forest area is destroyed). 1 For more information refer to bhp.com/news/articles/2022/06/new-bhp-grants-to-support-blue-carbon-market. 2 For more information refer to bhp.com/sustainability/communities/social-investment. 3 For example, we undertook a pilot carbon neutral commodity transaction with US copper cable and wire manufacturer, Southwire. We did not retire any of the offsets tied to that transaction against our own voluntary targets or goals. For more information refer to bhp.com/news/media-centre/releases/2021/10/bhp-and-southwire-collaborate-for-first-carbon-neutral-copper-cathode-delivery. 4 For more information refer to bhp.com/sustainability/climate-change/carbon-offsets. 48 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary BHP carbon offset use cases BHP may use carbon offsets in five cases, to complement the structural emissions abatement that we prioritise 1. Scope 1 and 2 voluntary targets and goals 2. Scope 3 voluntary targets and goals 3. Regulatory compliance 4. Social investment 5. Commercial opportunities Using offsets to meet Working with our Using offsets to comply Offsets generated Bundling offsets into BHP the target and goal suppliers and customer with regulation in our through our actions to product transactions to that we have set on the use of offsets to operational locations, as develop global carbon differentiate our products for our operational supplement their focus we work to decarbonise markets, invest in nature and supplement our emissions, as we on emissions abatement. our business. and support communities customers' focus on work to decarbonise to deliver social value. emissions abatement. our business. -Demonstrates high environmental and and Climate Change, Dr Fiona Wild, has been standards landscape. We also established a social integrity ensuring no broader social a member since its inception in late 2015. global sustainability standards team to enhance or environmental harm (e.g., hydropower We published our Climate Change Report in our systems and processes, integrate planning projects that require forest clearing and 2020, and also participate in the CA100+ Net Zero and enable a more strategic approach to the community displacement). Carbon Benchmark (NZCB), which assesses the governance and implementation of sustainability -Restrict early vintage years to avoid world's largest corporate GHG emitters on their standards across BHP's operated assets. claiming emissions reduction from activities progress in the transition to the net zero future. This team also has accountability for sustainability that occurred a long time ago; typically this reporting and disclosure, bringing together our In September 2021, we published the CTAP, means not purchasing offsets with a vintage work on sustainability standards and further which sets out the steps BHP intends to take to greater than five years. strengthening our approach to transparency and reduce GHG emissions to net zero within our standards across the value chain. BHP's carbon offsets are from a variety of own operations and to pursue net zero in our sources including (but not limited to) spot value chain. The CTAP received approval from The standards that form part of our strategy are: markets and project origination. We see a 84.9 per cent of shareholders in the 'Say on - the Copper Mark role for offsets from solutions that remove Climate' advisory vote at our AGMs in 2021. - the London Metal Exchange (LME) Policy on atmospheric carbon as well as avoid emissions. We also engage on policy matters directly with Responsible Sourcing of LME-Listed Brands While we prioritise offsets from nature-based government and through our membership of - the ICMM Mining Principles and associated solutions, we also consider the sourcing of industry associations and issue-specific coalitions Performance Expectations offsets from engineered solutions. and initiatives. Examples of these engagements are provided at bhp.com and in the 'Climate policy - the Global Industry Standard on BHP is committed to transparently disclosing the engagement' section of our CTAP. Tailings Management carbon offsets that we retire towards meeting our - Towards Sustainable Mining (TSM) own climate change targets and goals. We did Our TCFD-aligned disclosures and information in not retire any offsets for this purpose in FY2022. support of our NZCB assessment can be found Accreditations Engagement and disclosure throughout this Report, in our BHP Climate Change Our Chilean operations Escondida and Spence, Report 2020 and CTAP and at bhp.com. For a Achieving the aims of the Paris Agreement will and Olympic Dam in Australia were awarded the navigator showing where to find relevant information require supportive policy across jurisdictions Copper Mark during FY2022 to recognise their in relation to the TCFD recommendations refer to globally. The policy-making process is complex, responsible production practices. The Copper 'TCFD index' in OFR 7.1. and change is unlikely to be smooth or linear. Mark is a voluntary assurance framework that We believe BHP can best support policy 7.9 Value chain independently assesses participants in 32 critical development by ensuring we meet our own areas, including environment, community, climate targets, goals and strategies, continuing sustainability human rights and governance issues for mining, to make the case for the economic opportunities smelting and refining operations. Our role as both a supplier and a customer arising from the energy transition, and focusing means it is important we have a coordinated and Escondida, Spence and Olympic Dam also on those policy areas where we are likely to integrated approach to sustainability across the completed independent third-party verification have the greatest ability to influence change. value chain. We strive to work with our customers, of self-assessments against the ICMM Mining Our Global Climate Policy Standards clarify suppliers and other stakeholders in the value chain Principles and associated Performance how our policy positions on climate change to create social value through sustainable practices Expectations. The ICMM Mining Principles require should be reflected in our own advocacy and across the full life cycle of our products. member companies to conduct a prioritisation the advocacy of the associations we belong to. process to determine which assets will be subject BHP takes a systems approach to value chain Over the past five years, we have introduced a to third-party validation across a three-year cycle. sustainability, designed to assess and work with range of measures to strengthen governance others to improve the sustainability impacts All BHP's operated assets have completed their of our membership of industry associations and of our upstream supply chains, inbound and self-assessments and the external validation monitor their climate change advocacy. outbound logistics, and our products as they sequence has been determined in consideration More information on our approach to move through extraction, processing and use. of commitments made by BHP to other industry associations is available at standards, such as Copper Mark and the LME bhp.com/about/operating-ethically/ In FY2022, BHP developed a sustainability Policy on Responsible Sourcing of LME-Listed industry-associations. standards strategy that defines our pathway Brands, to enable operational efficiencies. for the implementation of responsible mining BHP was one of the first companies to and sourcing standards. The strategy is We recognise the importance of engaging in align its climate-related disclosures with the focused on the foundations needed to enable the sustainability standards ecosystem and recommendations of the Financial Stability Board's a more efficient adoption of standards to better we support simplification of the standards TCFD, of which our Vice President Sustainability position BHP's participation in the sustainability landscape and convergence of standards. Integrating multiple global and commodity- BHP Appendix 4E 2022 49

7 Sustainability continued specific standards is a complex task and in technologies for improved traceability and the Community events, complaints FY2022 we engaged in a number of forums pursuit of carbon-neutral production. and grievances focused on sustainability standards - through Additionally, circular economy principles With no significant community events recorded as the ICMM, the Minerals Council of Australia and are an increasingly critical consideration for resulting from BHP operated activities in FY2022, the Mining Association of Canada as well as with building sustainable supply chains in relation our five-year target of no significant community standard-setting bodies like the Copper Mark, to our commodities that meet growing demand events between FY2018 and FY2022 has been and the OECD and LME. 2 for our products, support goals to reduce met. There were 50 community concerns and In FY2022, BHP disclosed aspects of our GHG emissions and minimise the impact 106 complaints (five of which were classified sustainability performance through the of mining and downstream processing on as grievances)3 received globally across our LMEpassport, which is the LME's new digital the environments and communities where operated assets through our local complaints credentials register to enable companies we operate. Across the business, we are and grievance mechanisms. This represented a that trade LME-listed brands to disclose their working to identify opportunities that leverage total increase of 8 per cent from FY2021 figures. sustainability metrics and certifications at our capabilities to create solutions that can The increase is attributable in large part to an corporate, asset and brand levels. BHP added contribute towards a circular economy. overall rise in the level of community reporting, information related to our copper and nickel which we consider to be a positive sign that LME-registered products from Olympic Dam, 7.10 Community provides earlier opportunities to seek to address Escondida, Pampa Norte and Nickel West. issues and understand sentiment to avoid or Making a positive contribution to the social and reduce the adverse impact and risk of escalation. Due diligence economic wellbeing of the communities where we operate requires long-term partnerships based on These concerns, complaints and In FY2022, a cross-functional team defined respect, transparency and trust. Our actions and grievances included: a clear scope and began developing a approach are governed by the Our Requirements - The two most common themes across BHP due diligence management system for our for Community standard and Our Code. operated assets were concerns regarding: minerals and metals supply chain that aligns with the OECD Due Diligence Guidance for Community understanding (i) the continued impacts of the COVID-19 Responsible Supply Chains of Minerals from pandemic and associated recovery initiatives; We understand our activities have the potential and (ii) local employment. Conflict-Affected and High-Risk Areas (OECD to create social, cultural, environmental and Guidance). This means that, for our operated - In Chile, community concerns focused human rights impacts, both positive and assets and our inbound supply chain of minerals on environmental impacts and the overall negative. To analyse the potential risks to and metals, BHP intends to adopt the OECD sustainability of the mining industry, the communities where we operate, we conduct Guidance's Annex I five-step, risk-based due development of local communities and the due diligence to better understand social and diligence framework in the form of a new due impacts of automation. Complaints about human rights contexts, work collaboratively diligence management system. The new system contractor behaviour included claims that with our community stakeholders, and look for will involve updating policies and procedures, certain commitments were not honoured and opportunities to create social value. and ensuring appropriate resources designed some local Indigenous community stakeholders to identify, assess and manage risks in our As part of our due diligence processes, we raised concerns about water resources in the minerals and metals supply chain where there conduct community perception research in local high Andean wetlands and greater employment is any origin, transport or trade association with host communities for each of our operated assets opportunities at Escondida. conflict-affected and/or high-risk areas. every two years. In FY2022, quantitative and - In Canada, community concerns and qualitative surveys at all operated assets provided complaints related to the increase in activity Alignment with the OECD Guidance is a insights into the public's general concerns and at the Jansen Potash Project, including routes reflection of better practice supply chain due priorities as well as perceptions of mining sector of haul trucks and greater community support diligence and it is also a requirement under and BHP performance. Globally, community and local procurement opportunities. the responsible sourcing standards of leading perceptions of our overall performance is positive, mining and metals industry bodies, including - In Australia, key community issues centred being on par or above average when compared the LME, the Copper Mark, the ICMM, and on local employment and associated skills to others in the sector in most markets. We tend TSM. In FY2023, we aim to finalise our OECD- and labour shortages, the impact on local to be perceived as being safety driven, behaving aligned due diligence management system and procurement from supply chain delays, and our in a way that promotes diversity and inclusion, commence implementation of that system for our COVID-19 vaccination mandate with particular having a positive relationship with the community, minerals and metals supply chain. mental health and wellbeing concerns raised and providing opportunities for local employment For more information about the scope of by Traditional Owners. Community complaints and procurement. The areas where people our OECD-aligned due diligence refer to also related to operational impacts, largely perceive room for improvement include exceeding our Modern Slavery Statement 2022 to be lighting, dust, noise, odour, emissions, blasting regulatory requirements, doing the right thing published in September 2022 at bhp.com. overpressure and vibration. by the environment, being a leader in water Emerging sustainability initiatives management and taking a more active role in the - Following the announcement of the divestment We also continue to identify sustainability-related global response to climate change. of our interest in BMC, some local stakeholders focused on whether community support would opportunities in BHP's value chain. Our operated assets are also required to continue under new ownership and the local maintain annual stakeholder engagement Traditional Owners sought assurance that the We see traceability as a key enabler to lifting plans and conduct regular engagement Indigenous Land UseAgreement would be sustainability standards across the value chain. activities, including one-on-one meetings, honoured by the new owners. In FY2022, BHP and leading US copper cable multi-stakeholder roundtables, issue-based and wire manufacturer, Southwire, completed their - The announcement that BHP would retain New consultation and written communications. first 'carbon neutral'1 copper transaction, involving South Wales Energy Coal and intends to proceed These engagements provide a valuable space delivery from BHP's mines in Chile to Southwire's with a managed process to cease mining at for more open and in-depth dialogues with processing activities in Georgia, United States. the asset by the end of FY2030 was received stakeholders on issues such as those raised in The pilot forms part of a collaboration for BHP in a neutral to positive manner overall, with our community perception research, exploring that reflects our Climate Transition Action Plan community stakeholders generally expressing mutually beneficial solutions and building trust. commitment to support industry to develop support for BHP retaining the asset to a managed closure rather than selling to new owners. 1 'Carbon neutral' is not intended to imply certification under any standard or application of a particular methodology and includes all those greenhouse gas emissions as defined for BHP reporting purposes. 2 A significant event resulting from BHP operated activities is one with an actual severity 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 for risk management. 3 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. 50 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary While we have collected information and sought 7.11 Human rights Corporate Affairs and Commercial who lead to understand community issues for some time, our operational and supply chain human rights in FY2022 we identified opportunities to enhance Governance and capability practices completed further human rights training the visibility and representation of community with an external expert to better support their The basis for BHP's human rights approach is issues across BHP, including: capabilities to identify and manage human rights an ongoing commitment to operate in a manner risks and potential impacts. Our Directors also - broadening our community data sets to create consistent with the UN Guiding Principles on participated in human rights training, led by an a more integrated and multidimensional Business and Human Rights (UNGPs) and the external expert. understanding of community issues, including 10 UN Global Compact Principles. the incorporation of inputs received via Due diligence Our Human Rights Policy Statement (HRPS) Indigenous-specific engagement channels - greater data triangulation and the overlay details our commitment, including the additional In FY2022, we used human rights impact of regional, national, global and industry issue-specific frameworks we adhere to as well assessments completed in FY2021 to conduct emerging trends analysis with local insights as the standards and processes set out for our a gap analysis of each operated assets' material people, business partners and other relevant risk profile (as recorded in our enterprise - implementing an enterprise-wide stakeholder parties. Updates to the HRPS commenced risk management system) and identified management system with linkages to in FY2022 to more clearly articulate how our opportunities for improvement, including: our local community complaint and human rights governance and due diligence - better representing the human rights context grievance mechanisms approach is organised. - enhancing internal understanding of reporting and potential impacts to human rights for processes, systems and requirements Our Code of Conduct (Our Code), which applies existing material risks, including labour to everyone who works for us, with us, or on conditions (such as sexual harassment and our behalf, includes a section on human rights. mental health) and environment (such as More information on community is available at bhp.com/community. Annual training on Our Code is mandatory climate change, water and biodiversity) and we provide an additional introductory - improving representation of specific human human rights training video on our internal rights risks in our risk profile, such as risks learning system and our website. Teams within in local procurement programs that operate Stakeholder concerns by region1 - Environmental performance and sustainability of the industry - Road and traffic impacts due to enhanced - Emissions - dust and noise - Local employment operations - Crime and anti-social behaviour - Automation - Legitimacy of Community Perception Survey - Traditional Owner engagement - Air quality (Spence) - Contractor behaviour and performance - Lack of access to health services - Contractor behaviours (Spence) - Lack of small business opportunities - Heritage protection Chile Canada Western Australia New South Wales Queensland South Australia - Operational impacts including lighting, blasting - Local employment including skills and labour shortages - Lack of childcare availability overpressure and vibration - Local procurement and supply chain delays for goods and - Availability and affordability of - Divestment uncertainty services community flights - Thermal coal export markets - COVID-19 including workforce vaccination mandates, Traditional - Youth mental health - COVID-19 impacts and recovery Owner engagement, labour and supply chain shortages, and - Smelter maintenance campaign mental health impacts - Cost of living, housing affordability and availability - Regional childcare availability - Divestment of BMC asset and continuity of community commitments 1 Data includes BMC up to the date of completion of the sale (3 May 2022). BHP Appendix 4E 2022 51

7 Sustainability continued Human rights signpost Priority area FY2022 update Given the scope, scale and nature of our business, our workforce health and safety conditions are an important focus area for human rights considerations. OFR 7.4 - Safety details the ongoing work to eliminate the risk of fatalities and injuries, create Health and safety workplaces safe from sexual harassment, as well as improve our workplace culture through field leadership and contractor relationships. OFR 7.6 - Health details the ongoing work to prevent or mitigate occupational exposures and illnesses, address COVID-19 and support mental health. Our Code brings our values to life. It includes an emphasis on respecting human rights and is reviewed annually. Ethics and business OFR 7.7 - Ethics and business conduct describes how we apply Our Code and provides an conduct update on progress related to transparency, accountability and anti-corruption. OFR 6 - People and culture describes our approach to inclusion and diversity, gender balance and employee relations. There are many human rights potentially relevant to the communities where we operate, including rights related to freedom of expression and self-determination as well as economic, social and cultural rights, such as health and wellbeing, work, adequate housing and water and sanitation. Community OFR 7.10 - Community details our work to build and maintain respectful, mutually beneficial relationships with the communities where we operate. OFR 7.14 - Social investment describes how we seek to support key community priorities across our operational footprint through our voluntary investment to social and environmental initiatives. We recognise our approach must be founded on a deep respect for the distinct rights, cultures, perspectives, aspirations and needs of Indigenous peoples. Indigenous peoples OFR 7.13 - Indigenous peoples provides an update on our Global Indigenous Peoples Framework. We recognise climate change is a human rights issue, with potential risks to the fundamental rights to life, health, food and an adequate standard of living. We continue to progress our climate targets, goals and strategies and implement our Adaptation Strategy, which includes Climate change a focus on building the safety, productivity and climate resilience of our operated assets, investments, portfolio, supply chain, communities and ecosystems by adapting to the physical risks of climate change. OFR 7.8 - Climate change details our ongoing work in this space. We acknowledge the nature of our operations can have significant environmental impacts and those impacts can affect people and their human rights. OFR 7.15 - Environment details our overall approach to environmental management, including seeking to avoid, minimise and mitigate our adverse impacts and contribute to the Environment, resilience of the natural environment. water, and land biodiversity OFR 7.16 - Water provides an update on our Water Stewardship Position Statement, which emphasises working with communities on shared water challenges, including water infrastructure, access, sanitation and hygiene. OFR 7.17 - Biodiversity and land provides an update on our work to develop a marine and terrestrial biodiversity framework for BHP and the revision and formalisation of our global-level biodiversity strategy. We recognise the failure of a tailings storage facility could result in adverse health and safety outcomes and environmental damage, potentially infringing on the rights to health, property, Tailings storage an adequate standard of living and at worst, the right to life. facilities OFR 7.18 - Tailings storage facilities provides an update on our ongoing commitment to the Global Industry Standard on Tailings Management and our aspiration to achieve zero harm from tailings. 52 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary independently of our global procurement The security risks we face are complex, 7.13 Indigenous process, the risk of violating consultation constantly evolving and differ across the peoples and consent frameworks that respect the jurisdictions where we operate. We seek to rights of Indigenous peoples, the risk of understand the physical security threats we face, We respect the distinct identities and lacking accessible and effective complaints to inform the development of security programs perspectives of Indigenous peoples and and grievance mechanisms, and analysis that protect our people within a dynamic and recognise the rights, cultures, insights, regarding potential impacts specific to constantly changing external environment. aspirations and needs that result from those vulnerable groups (such as Indigenous We use security controls and mandatory identities and perspectives. We also recognise peoples, women and LGBT+ community) minimum performance requirements to reduce our responsibility to develop partnerships based the likelihood of security risks materialising and We are reflecting these learnings in our internal on respect and to pursue mutually beneficial mitigate their impact if they do. We support this governance standards and processes, which are outcomes. These responsibilities are central to with external environment monitoring, including planned to be updated in FY2023. BHP's Global Indigenous Peoples Framework. through our enterprise emerging risk process, In FY2023, relevant risk owners and regional to identify changes in the external environment The Global Indigenous Peoples Framework teams will work with our human rights subject that could shift our exposure to security threats consists of three key elements: matter experts to progress these opportunities across the jurisdictions where we operate. 1 BHP Indigenous Peoples Policy Statement for improvement. We intend to also pursue BHP is committed to aligning with the Voluntary opportunities to improve our overall due 2 BHP Indigenous Peoples Strategy and Good Principles on Security and Human Rights diligence process, such as enhancing our Practice Guidance and sets mandatory minimum performance external human rights research, better requirements for our operated assets, to support 3 Regional Indigenous Peoples Plans highlighting stakeholder voices throughout our implementation of these principles. due diligence and better integrating human rights First adopted in FY2015, this Framework has analysis into business planning cycles and our Responding to a rapidly changing played a key part in guiding BHP towards being Risk Framework. external environment an organisation that engages meaningfully and respectfully with Indigenous peoples. However, Our Modern Slavery Statement 2022, prepared We are operating in an increasingly volatile, it has been several years since it was developed under the Australian Modern Slavery Act uncertain world, where the physical security and during this time the external environment (2018) and UK Modern Slavery Act (2015), risks we face are evolving from local criminal and BHP's own purpose, strategy and operating provides additional information regarding the activity and asset protection risks to more footprint have significantly evolved. Accordingly, management of modern slavery risks for our complex transnational threats, which transcend BHP has undertaken a review of the Framework, operations and global supply network and will be traditional asset and jurisdictional boundaries. informed by an extensive process of internal and available in September 2022 at bhp.com. Key emerging themes include social activism, external research and consultation, including international criminal enterprise, global terrorism Response and remedy extensive engagement with Traditional Owners and war. We are also seeing the increasingly and First Nations representative organisations, In FY2022, we continued to evaluate feedback integrated nature of physical security with other leading external experts, BHP employees and from our stakeholders, external experts and risk areas, including the physical security threats leaders, and several investors. internal teams on how to make our complaints that stem from cybersecurity risks or climate-and grievance mechanisms more accessible and related risks. These threats are developing This review has identified a number of our internal culture and processes more effective against a backdrop of increasing anti- opportunities for BHP to further strengthen in identifying concerns that have a human rights government sentiment, inequality and political the Framework, so that it continues to be connection. We plan to embed this feedback in polarisation across the globe; challenges that aligned with our purpose, advances across our approach by the end of FY2023. have been exacerbated by COVID-19. our mandatory minimum requirements for community and human rights, and our social We recognise our business activities create To respond to this shifting external landscape, value framework and new 2030 goals. human rights risks and potential impacts across in FY2022 we established a new Group Security several different areas. In FY2023, we will function, to provide additional expertise and BHP agreement-making processes are built continue to integrate a human rights perspective support to the business and conduct assurance on the core principles of good faith negotiation when designing, implementing and evaluating over security risk management globally. aimed at achieving consent, with a focus on our ways of working related to these issues. understanding the historical, legal, social, Priorities for the function include revising our The human rights signpost table highlights the cultural and political contexts relevant to security framework, to refresh BHP's mandatory priority areas identified by our human rights Indigenous peoples in the areas where we minimum global security requirements impact assessments and where key updates operate or seek to operate; and how our and developing a consistent taxonomy for may be found in this Report. activities might impact the rights of potentially defining and categorising security threats. affected Indigenous peoples. Reporting and disclosure This is designed to support robust security risk identification across our operated assets The newly established Global Indigenous During FY2023, we intend to develop a and functions. The team will also build upon Engagement and Community team continues to refreshed human rights reporting framework its existing network of intelligence sources in progress immediate opportunities for alignment that will: FY2023, by establishing an integrated approach and improvement initiatives across our operated - better align to the UNGP Reporting to threat intelligence. This will provide decision- assets and functions, globally. New senior Framework Index makers with a tailored and consolidated Indigenous leaders have been appointed and - include quantitative metrics for our operations view of security insights and support risk- are actively working with the regional teams and our supply chain, as well as qualitative informed decisions. to support our approach to cultural heritage commentary and the voices of rights holders management, agreement-making, procurement, We are also enhancing BHP's understanding employment and social investment - all of which - focus on mid- to long-term outcomes in of the key intersecting security risks that are core components of our Global Indigenous addition to short-term outputs could impact us to provide an integrated Peoples Framework. view of potential vulnerabilities. This will be 7.12 Security services complemented by the implementation of a structured global assurance program. Security risk management Identifying, understanding and managing physical security risks is critical to the protection of BHP's people, assets and reputation. BHP Appendix 4E 2022 53

7 Sustainability continued native title rights in the vicinity of BMC's South Global Indigenous Peoples Framework Walker Creek Mine. In assuming majority ownership and operational control of BMC, Stanmore Resources will be subject to this BHP Indigenous Peoples Policy Statement agreement and its commitments. BHP aims to be a partner of choice for Indigenous peoples through which our relationships With our existing Reconciliation Action contribute to their economic empowerment, social development needs and cultural wellbeing. Plan (RAP) having concluded in FY2022, we commenced the development of a new FY2023-FY2027 RAP. In a commitment to BHP Indigenous Peoples Strategy moving beyond consultation, BHP has been co-developing this new RAP with our stakeholders Governance Economic including, Traditional Owners, Aboriginal and empowerment Torres Strait Islander organisations, community Indigenous peoples should derive partners and our employees across Australia. significant and sustainable benefit BHP seeks to contribute to the This process has involved nine separate RAP from BHP operations through economic empowerment of forums held across Australia. The new RAP will the effective governance and Indigenous peoples through also align to and embed the principles of our management of land access, investment which provides Global Indigenous Peoples Framework. cultural heritage management, opportunities for employment, agreement-making and benefit training, procurement and Indigenous BHP's spend with Indigenous businesses has distribution processes. enterprise support. steadily increased over the past four years. In FY2022, Minerals Australia saw an 75 per Outcomes cent increase, to US$149.9 million, in our direct Social and spend with Indigenous businesses across our cultural support Public operated assets compared to FY2021 levels. engagement Compared to FY2021 levels, we also increased BHP will seek to contribute to the number of Indigenous businesses we directly BHP will seek to contribute to specific improved quality of life for Indigenous procure from by 53 per cent. initiatives, programs and public peoples through voluntary social policy processes which advance In May 2022, we announced that WAIO intends investment, support for reinforcement the interests of Indigenous peoples to more than double its spend with Indigenous and promotion of Indigenous culture consistent with the BHP Indigenous vendors to more than US$300 million by the and building the Indigenous cultural Peoples Policy Statement. end of FY2024, as it looks to create more awarenesss of our workforce. opportunities for Indigenous businesses. We also achieved a significant milestone in FY2022 by reaching our Australian Indigenous employment target of 8 per cent, three years Regional Indigenous Peoples Plans ahead of schedule. In FY2022, in support of efforts to ensure COVID-19 vaccination was accessible to Indigenous Australians, BHP provided BHP Good Practice Guidance A$2 million to Aboriginal Community Controlled Health Organisations (ACCHOs) across Australia. These funds enabled Queensland, Western Australian, New South Wales and South Australian ACCHOs each to receive A$500,000 Minerals Australia In advance of this law reform, in FY2021, BHP to distribute to their local Aboriginal Medical confirmed to Traditional Owners that we would Indigenous cultural heritage protections are Service members or to collective programs not act on existing section 18 approvals from a key component of our relationships with that help local medical services accommodate the Western Australian Government without Indigenous peoples and our ability to operate demand. This contribution builds on a donation further extensive consultation with the Traditional sustainably. We seek to ensure our standards of A$3.9 million in FY2021, which laid the Owners. In the case of the South Flank project, are best practice and forward looking. foundation for partnerships between BHP and BHP and the Banjima people established On 18 October 2021, the Commonwealth Joint organisations in the Indigenous-led health sector a Heritage Advisory Council. In the period Standing Committee on Northern Australia as COVID-19 emerged. since, the Heritage Advisory Council has met handed down its report into the destruction of many times to consider appropriate heritage Minerals Americas Indigenous heritage sites at Juukan Gorge. management practices in the Central Pilbara and While there were no adverse findings or In line with our Indigenous Peoples Plan for to record this common understanding in the form recommendations made specifically in relation South America, we seek to work closely with of Cultural Heritage Management Plans that will to BHP, we are committed to understanding the communities where we operate to make a guide BHP's operations at those locations. the lessons available from this extensive body positive contribution, including through reaching of work. We are committed to the making of land use agreements with local communities. agreements to formalise relationships in a Significantly, the finalisation of the Committee's In FY2022: manner that is responsive to the aspirations Report has coincided with important law reform of Traditional Owners and in compliance - We created and resourced a new Minerals in Western Australia. The Aboriginal Cultural with the law. These agreements create Americas Indigenous Engagement team Heritage Act 2021 (WA) provides a revised partnerships designed to realise mutually to centralise accountability for Indigenous framework for the recognition, protection, beneficial outcomes. engagement. This promotes alignment across conservation and preservation of Western our regions of operation and enables us to Australian Aboriginal cultural heritage. The new Further to the Indigenous Land Use Agreement share standards and processes designed to Act repeals the outdated Aboriginal Heritage Act reached between BMC and the Barada Barna support Indigenous communities affected by 1972 (WA) and removes the former section 18 people in FY2021, in April 2022, BMC and the our existing operations. approvals process. Widi people entered into a native title project - We delivered against our commitment to agreement for shared country where both the Barada Barna and Widi peoples hold determined strengthen our cultural heritage practices 54 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary within the Americas. Commencing with a six. Two of these agreements were targeted for investment performance in the last five years particular emphasis on our operations in refresh in FY2022. In the period, we finalised saw BHP fund US$681.4 million in projects with Chile, we: the review of our Opportunity Agreement with a continued focus on good governance, human the Fishing Lake First Nation and reached an capability and social inclusion and environment. - established new critical controls and agreement in principle with regards to refreshing For more information on our performance procedures to manage cultural heritage our Opportunity Agreement with the Beardy's against these and other targets refer to OFR 7.3. values within and around our operations & Okemasis' Cree Nation. The Opportunity - introduced new information systems and In FY2022, our voluntary social investment Agreements we have entered with our geospatial tools to track and protect cultural totalled US$186.4 million, an increase of 7 per Indigenous partners continue to provide a heritage sites cent compared with FY2021. This investment governance framework and a platform to enable consisted of US$99.4 million in direct community - created a dedicated team within our HSE economic participation. development and environmental projects and function to administer cultural heritage In support of the Canadian Government donations, US$14.5 million equity share to management activities at the asset level - reinforced the consideration of cultural Truth and Reconciliation Commission's calls non-operated joint venture social investment heritage management dimensions within to advance the process of reconciliation in programs, a US$52.4 million donation to the our agreement-making practices Canada, we plan to develop our first RAP for BHP Foundation and US$1.5 million under the Canada in FY2023. The RAP will be designed to Matched Giving Program. Administrative costs2 - engaged independent experts to analyse enable BHP to address the needs and interests to facilitate direct social investment activities existing practice against the emerging of Indigenous communities within our direct totalled US$16.1 million and US$2.5 million Indigenous policy landscape area of influence. The RAP is expected to be supported the operations of the BHP Foundation. co-developed with the stakeholders we seek At Escondida, we continued to advance the More information on social investment, relationships with, using similar principles to the including case studies and other implementation of the agreement concerning process undertaken in Australia. initiatives to support communities where the environmental sustainability of the Salar we operate is available at bhp.com. de Punta Negra, signed at the end of FY2021 Resolution Copper between Escondida, the Chilean Attorney With our most recent five-year sustainability Resolution Copper Mining is owned by Rio General's Office, the Peine Atacameńo targets completing in FY2022, BHP developed Tinto (55 per cent) and BHP (45 per cent) and Indigenous community and the Council new 2030 goals to further lift our ambitions managed by Rio Tinto. of Atacameńo Peoples. Key governance as we look to the end of the decade. mechanisms have been established and the We acknowledge the Resolution Copper They represent a shift towards partnership, terms of reference for the conduct of technical project area includes areas of cultural listening and co-creation, and recognise that studies are currently under development. significance for Native American Tribes and addressing challenges like community and their members. Development of the project environment resilience requires close community At Cerro Colorado, as part of the Indigenous continues to be studied and remains subject and stakeholder collaboration. consultation process for operational continuity to regulatory reviews by federal, state and of this asset, we reached agreement with the For more information on our 2030 goals local governments. Resolution Copper Mining refer to OFR 2.2. San Isidro de Quipisca Indigenous agricultural continues to cooperatively engage in these association. Within the framework provided by The 2030 goals are intended to be regulatory processes and has publicly stated its the Opportunity Agreement Development Plans, complemented by a continued commitment to commitment to deepening ongoing engagement FY2022 saw BHP support the advancement social investment of at least 1 per cent of pre-with, Native American Tribes and other of electrical infrastructure that benefits tax profit³ in addition to our direct operational stakeholders to understand and seek to mitigate approximately 80 rural families within the decision-making and financial contributions. potential negative impacts. We are monitoring Parca Aymara Indigenous community. and supporting Resolution Copper Mining's We intend to continue to report annually Across our Chilean assets, FY2022 delivered engagement processes. our contribution to social value through our steady increases in our levels of Indigenous social investment. workforce participation - with representation 7.14 Social investment reaching 8.7 per cent at year-end. In total, BHP's The BHP Foundation Social investment is a further tool to create regional annual spend with Indigenous business The BHP Foundation is a charitable organisation social value and contribute to the resilience for the period was US$9.2 million. established and funded by BHP that blends of communities and the environment, in line In Canada, following the approval of our Jansen with our broader business priorities. Our long- ambition, transformational partnerships and Potash Project in Saskatchewan, we continued standing commitment is to invest not less than 1 business acumen to catalyse new solutions to our commitment to strengthening our Indigenous per cent of pre-tax profits1 in voluntary social and some of the world's most complex social and relationships and engagement practices with environmental initiatives. For FY2023-FY2030, environmental challenges. The BHP Foundation those Indigenous communities impacted by the our social investment will be assessed as a total partners with NGOs and international project. There are six primary First Nations in the over the seven-year goals period to FY2030, institutions with the goal of driving systemic vicinity of the Jansen Potash Project. BHP has rather than calculated as an average of the change. Globally the Foundation focuses entered into Opportunity Agreements with all previous three years' pre-tax profit. Our social on the governance of natural resources, environmental resilience and education equity. These global programs are complemented by Indigenous community investment1 the Foundation's country programs in Australia, Canada, Chile and the United States which Performance RAP target deliverable or work towards improving long-term, economic, metric2 FY2018 FY2019 FY2020 FY2021 FY2022 social and environmental sustainability at a Indigenous spend3 US$42.8m US$57.5m US$67.4m US$85.5m US$149.9m national level. Indigenous community investment4 US$11.1m US$8.2m US$16.6m US$12.5m US$29m 1 To date, our voluntary social investment has been calculated as 1 per cent of the average of the 1 Data includes BMC up to the date of completion of the sale (3 May 2022), operated assets in our Petroleum previous three years' pre-tax profit. business up to the date of the merger with Woodside (1 June 2022) and Onshore US assets up to the date of 2 The direct costs associated with implementing completion of the sale (31 October 2018), as applicable. social investment activities, including labour, travel, 2 These RAP targets concluded 31 December 2021. research and development, communications 3 RAP target - The identification of specific opportunities for business development and engagement for Aboriginal and costs to facilitate the operation of the and Torres Strait Islander communities in Local Procurement Plans and associated targets. BHP Foundation. 4 RAP target - Australian operations engage and consult with Aboriginal and Torres Strait Islander Peoples in 3 For FY2023-FY2030, our social investment will be social research that is conducted to understand local and regional contexts, that then informs social investment assessed as a total over the seven-year goal period planning and outcomes. to FY2030, rather than calculated as an average of the previous three-years' pre-tax profit. BHP Appendix 4E 2022 55

7 Sustainability continued Social investment framework The Our Requirements for Environment and Climate Change standard requires us to take an Theme Aim FY2022 integrated, risk-based approach to managing Future of work We aim to enhance human - Through our support, 22,401 people completed any actual or reasonably foreseeable adverse capability and social inclusion education or training courses in digital, and positive impacts (direct, indirect and through education and vocational technology, leadership and/or problem-solving cumulative) on biodiversity, land, water and air. training and skills development. initiatives. Over 10,469 of these participants were This includes establishing and implementing Indigenous people and 7,583 were women. environmental risk monitoring and reviewing - 426 education institutions aligned course content practices throughout our business planning to business needs to better prepare participants and project evaluation cycles. In addition to for future work readiness. - 1,249 participants found paid employment the broader environment-specific components, following completion of their training. the standard includes climate change related requirements for our operated assets. Future of We aim to contribute to - We made 131 investments in nature-environment environmental resilience through based solutions. To support continuous improvement, each of biodiversity conservation, our operated assets is required to have an - We contributed to improved management of ecosystem restoration, water Environmental Management System (EMS) that approximately 8 million hectares. aligns with ISO14001 standards and set target stewardship and climate change - 77 scientific or thought leadership papers environmental outcomes for biodiversity, land, mitigation and adaptation. or specific knowledge sharing events air and water resources that are consistent were supported. Future of We aim to contribute to the - Through our support, 940 organisations with the assessed risks and potential impacts. communities understanding, development and enhanced their internal capability to be able to Target environmental outcomes are included in the life-of-asset plan and approved by the sustainable use of resources to support and deliver solutions that contribute to relevant Asset President or equivalent. We verify support communities to be more building efficient and sustainable communities. adaptive and resilient. our EMS by ISO14001 certification (for sites - 1,168 organisations planned or delivered currently holding ISO14001 certification) or initiatives that increase/improve infrastructure, through our internal assurance processes. use technology and/or use resources that enhance community resilience, including 171 In FY2022, no significant environmental events initiatives specific to Indigenous peoples. resulting from BHP operated activities were recorded, resulting in our five-year public target The Foundation's focus is complementary 7.15 Environment of no significant environmental events between to the social investment work of BHP. FY2018 and FY2022 being met. Its partnerships include: We are committed to preventing or minimising During FY2022, we successfully delivered our adverse environmental impacts and the full suite of five-year environment-related - Healthy environment: the Great Barrier Reef contributing to the resilience of the natural sustainability targets. We also continued work to: Foundation's Resilient Reefs Initiative has environment. Our operations and growth been recognised by UNESCO as a model - develop a more integrated nature-positive strategy depend on obtaining and maintaining for successful resilience-based coral reef approach and healthy environment goal as the right to access environmental resources. management and will be promoted as a part of our 2030 goals However, with growing pressure on and global model for the management of all competition for these resources, and with climate - refresh our Water Stewardship Strategy and World Heritage listed reefs. change amplifying certain sensitivities of our formalise our biodiversity strategy - Safe inclusive, and future-ready natural systems, our environmental performance - invest in voluntary conservation projects as workforce: UN Women's Second Chance and management of our environmental impacts part of BHP's contribution to environmental Education project is providing more than on the communities where we operate is critical resilience more broadly 90,000 marginalised women access to to creating social value. This is recognised in quality learning, entrepreneurship and BHP joined the Taskforce for Nature-related our social value framework where the objective employment opportunities. Financial Disclosure (TNFD) Forum (a group under our healthy environment goal is to create - Thriving, empowered communities: of organisations that support the TNFD nature-positive outcomes by having at least Open Contracting Partnership works with Member Group) in recognition of the increasing 30 per cent of the land and water we steward governments and key stakeholders to ensure awareness and understanding needed on under conservation, restoration or regenerative money flowing from natural resource wealth nature-related risk and the implications for the practices by 2030. is converted into better outcomes for citizens, resilience of economies and society. At every stage in the life cycle of our operated for example, the implementation of open More information on our environmental assets, we seek to avoid, minimise and mitigate contracting in Chile has reduced the cost of approach, the Our Requirements for our adverse environmental impacts in line with some medicines. Environment and Climate Change standard, and our defined risk appetite. - Indigenous partnerships: Reconciliation our environmental management and governance Australia's Narragunnawali: Reconciliation We recognise our activities have an processes is available at bhp.com/sustainability. in Education program has resources and environmental footprint and commit to making tools for schools and early learning services voluntary contributions to support environmental resilient Contributing environment to a to contribute to the reconciliation movement. resilience across the regions where we operate. Approximately 10,000 Australian schools Our Group-wide approach to environmental Biodiversity is essential to maintain healthy and early learning services registered to management is set out in the Our Requirements ecosystems and the clean air, water and develop a Reconciliation Action Plan on the for Environment and Climate Change standard productive landscapes and seascapes we all Narragunnawali platform. and our mandatory minimum performance need to survive and thrive. We are seeing an requirements for risk management. increasing societal focus on the urgent need to These standards have been designed reverse current trends in biodiversity loss and taking account of the ISO management protect vital ecosystems that are the foundation system requirements, including ISO14001 of the world's economic security. As a global for Environmental Management Systems, resources company, we acknowledge we have and set the basis for how we manage risk, a role to play in contributing to environmental including realising opportunities, to achieve resilience both inside and outside our footprint. our environmental objectives. We do this through our Group-wide water stewardship and biodiversity strategies, our 56 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary social investment strategy and our work with to align with the ambitions of our business and where we operate it may not be the key water-strategic partners and communities. In June society, and developed our new 2030 healthy related risk. In recognition of the variation of 2022, we expressed our aspiration via our environment goal. challenges and opportunities across the regions 2030 healthy environment goal (described where we operate, we committed in our Water More information is available at above) to create nature-positive outcomes. bhp.com/water. Stewardship Position Statement to developing 'Nature positive' is a high-level goal and a We recognise our responsibility to effectively context-based water targets (CBWTs). concept describing a future state of nature (e.g. manage our interactions with and prevent These CBWTs are intended to contribute more biodiversity, ecosystem services and natural or minimise our adverse impacts on water effectively to addressing the shared water capital) which is greater than the current state. resources. Effective water stewardship begins challenges in our operating regions. This definition comes from the TNFD. within our operations. We use water in many During FY2022, we engaged third parties to Our collaborative work with strategic partners, ways, including but not limited to: review publicly available information and engage including Conservation International, and - extracting it for ore processing and to with stakeholders to identify shared water local communities is focused on contributing access ore challenges through Water Resource Situation to enduring environmental and social benefits Analyses (WRSAs). We also began development through biodiversity conservation and - dust suppression of CBWTs for each of our operated assets, which ecosystem restoration, water stewardship and - processing mine tailings are informed by BHP's view of water-related climate change mitigation and adaptation. risks in the catchments and by the shared water - providing drinking water and Our preference is to invest our voluntary social challenges identified in the WRSAs. The WRSAs sanitation facilities investment funds in projects that contribute to - using marine water for desalination are expected to be made publicly available cultural, economic and community benefits in to support continued collaboration between addition to environmental resilience. We work to reduce stress on water resources stakeholders in the shared water resources of from our operations and to collaborate with our operating regions. Since FY2011, we have invested more than others on challenges and opportunities like water US$95 million of our social investment funds scarcity or high variability in water supply. During FY2023, we intend to publicly release in voluntary environmental resilience initiatives CBWTs for our operated assets and from outside our operational area. This funding is We have achieved our public sustainability target FY2023 we will report publicly on progress in addition to our investment in day-to-day to reduce FY2022 freshwater withdrawal1 by 15 against the CBWTs. environmental management activities relating per cent from FY2017 levels2 across our operated to our operations. More information on the WRSAs is assets. Our FY2022 result demonstrated a 29 per available at bhp.com/water. More information on the environment and cent reduction on our adjusted FY2017 baseline. our environmental projects is available at Achievement of the target is primarily due to the Water accounting and reporting bhp.com/environment. gradual replacement of groundwater sources with We report on water metrics and on the desalinated water for our Escondida operations. management of water-related risks on our Our focus on environmental resilience is This resulted in the cessation of groundwater water webpage, in line with the ICMM's Water complementary to the work of the BHP withdrawal for operational water consumption from Reporting, Good Practice Guide (2nd Ed) (ICMM Foundation under its Environmental Resilience the Salar de Punta Negra aquifer in 2017 and from guidance) and the Minerals Council of Australia's Global Program. the Monturaqui aquifers in FY2020. This cessation Water Accounting Framework (WAF). More information is available at was 10 years ahead of schedule and involved an bhp.com/foundation. investment of around US$4 billion in large-scale Generally, these reporting frameworks align with desalination capability. For more information refer the reporting requirements of the GRI Standards 7.16 Water to bhp.com/news/case-studies/2020/09/breaking- and the CEO Water Mandate. the-water-energy-nexus. Access to safe, clean water is a basic human More information on water accounting right and essential to maintaining healthy Our global freshwater withdrawals from FY2017 and reporting of metrics required by the ecosystems. Water is also integral to what we to FY2022 are shown in the chart below. ICMM guidance is available at bhp.com/ do and we cannot operate without it. In FY2017, water and in our BHP ESG Standards While minimisation of freshwater withdrawal will and Databook available at bhp.com/ we adopted a Water Stewardship Strategy to sustainability. remain important for us, in some of the regions improve our management of water, increase transparency and contribute to the resolution of shared water challenges. Our Water Performance against freshwater withdrawal reduction target1 Stewardship Position Statement was developed in FY2019 and outlines our 2030 vision. Megalitres In FY2022, we made minor updates to our Water 200,000 Stewardship Position Statement and Strategy 150,000 100,000 1 Where 'withdrawal' is defined as water withdrawn and intended for use (in accordance with 'A Practical Guide to Consistent Water Reporting', ICMM (2017)). 'Fresh water' is defined as waters other 50,000 than seawater, wastewater from third parties and hypersaline groundwater. Freshwater withdrawal also excludes entrained water that would not be available for other uses. These exclusions have 0 been made to align with the target's intent to reduce the use of freshwater sources of potential value to FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 other users or the environment. 2 The FY2017 baseline data has been adjusted to Freshwater withdrawal FY2022 15% reduction target account for: the materiality of the strike affecting water withdrawals at Escondida in FY2017 and improvements to water balance methodologies 1 The freshwater withdrawal data includes data from all operated assets under BHP ownership at the end at WAIO and BMA, and exclusion of hypersaline, of FY2022. In FY2022, we merged our Petroleum business with Woodside and divested our interest in wastewater, entrainment, supplies from desalination BMC. Data for the Petroleum business and BMC has been excluded from the FY2017 baseline and annual and Discontinued operations (Onshore US assets performance data for our FY2018-FY2022 public sustainability targets for our withdrawal of freshwater (together and Petroleum) and the divestment of BMC. with our occupational exposures and GHG emissions) to ensure ongoing comparability of performance. BHP Appendix 4E 2022 57

7 Sustainability continued In FY2022, we continued to report on water the aim of catalysing actions to improve water 7.17 Biodiversity volumes for those operated assets classed by governance, increase recognition of water's and land the World Wildlife Fund Water Risk Filter as diverse values and advance sustainable being located in areas of high or extremely high solutions. We continue to collaborate with the The nature of our activities means we have a water stress. The disclosure of water data in CEO Water Mandate to support the development significant responsibility for biodiversity and land high-stress areas is required by several reporting of catchment-scale resilience as part of our management. As at 30 June 2022, we owned frameworks, including the ICMM guidance. commitment to strengthen transparency and or managed more than 8 million hectares of In FY2022, freshwater withdrawal from those collaboration across all sectors for improved land and sea; however, just under 2 per cent is operating assets in high or extremely high water water governance. We also continue our disturbed (physical or chemical alteration that stress areas made up approximately 15 per cent collaboration with the University of Notre Dame substantially disrupts the pre-existing habitats of our total freshwater withdrawals. (United States of America) to develop an and land cover) for our operational activities. approach to water management that considers During FY2021, BHP contributed to improving The area we own or manage has decreased the human rights to access water. mining sector water reporting through by 8 per cent from FY2021, predominantly participation in the ICMM Water Working Group As reported in our Annual Report 2021, in due to the merger of our Petroleum business to strengthen the ICMM guidance and align it August 2021 an individual commenced an with Woodside. with the GRI requirements. The most significant environmental damage action against Cerro At each of our operated assets, we look to change for BHP of applying the 2021 update Colorado alleging that Cerro Colorado's water manage threats and opportunities to achieve of the ICMM guidance was that the guidance extraction from the Lagunillas aquifer has our environmental objectives. We apply the recommends (non-mandatory) reporting of damaged the aquifer and a nearby lagoon and mitigation hierarchy (avoid, mitigate, rehabilitate the annual change in water storage volumes. wetlands. Following a series of injunctions in and, where appropriate, apply compensatory We have taken the first step to implement this February 2022, new orders were received that measures) to any potential or residual adverse recommendation by including changes in water permit water extraction, subject to ongoing impacts on marine or terrestrial ecosystems. storage volumes in our asset water accounts monitoring of aquifer water levels. If the for those operated assets where water storage conditions are complied with, the orders permit We respect legally designated protected areas changes are considered material. In FY2022, four staged and gradual increases through to and commit to avoiding areas or activities where we assessed which sites may have changes in the expiry of the current environment licence we consider the environmental risk is outside our water storage volumes that were material to their in FY2024. The hearing for the environmental risk appetite. As part of our commitments: water management; our coal operated assets damage action was held in April 2022 with the - We do not explore or extract resources (where changes in water storage are the most outcomes still pending. within the boundaries of World Heritage material within BHP) were a particular focus. In March 2022, the Chilean Environmental listed properties. In line with our commitment for continuous Regulator (SMA) sanctioned Escondida, - We do not explore or extract resources improvement of our water accounts and data, we concluding it had breached its environmental adjacent to World Heritage listed properties, continued to review assumptions for accounting permit from 2005 until 2019, causing unless the proposed activity is compatible with for water storage, and other metrics, in asset irreparable environmental damage due to its the outstanding universal values for which the water models and water balances, recognising water extraction from the Monturaqui aquifer. World Heritage property is listed. that water modelling and balances contains a Escondida's infraction was classified as 'very degree of uncertainty which must be understood. - We do not explore or extract resources serious', and the SMA imposed a fine of We have now included reporting of material within or adjacent to the boundaries of the approximately US$8.3 million. Escondida has water storage changes across BHP, but note International Union for Conservation of Nature lodged a reconsideration motion before the the accuracy of this metric (as for other metrics (IUCN) Protected Areas Categories I to IV, SMA. A decision on the reconsideration motion that we reported for many years) is expected to unless a plan is implemented that meets before the SMA is expected in the second half of continue to improve in the forthcoming years as regulatory requirements, takes into account 2022. Appeal rights remain an option following our knowledge and understanding grows. stakeholder expectations and contributes the decision. to the values for which the protected area We continue to seek to minimise our withdrawal An environmental damage claim was lodged is listed. of high-quality water. In FY2022, seawater by the Attorney General's Office (AGO) against - We do not operate where there is a risk of continued to be our largest source of water Escondida, Albemarle and Compañía Minera direct impacts to ecosystems that could withdrawal, representing 61 per cent of total Zaldívar (the latter two being other companies result in the extinction of an IUCN Red List withdrawals, predominantly for desalination at that extract water (or previously extracted) Threatened Species in the wild. Escondida. Groundwater remained our most from the Monturaqui aquifer) before the First significant non-sea water source in FY2022, - We do not dispose of mined waste rock or Environmental Court of Antofagasta during at close to one-fifth of total water withdrawals. tailings into a river or marine environment. FY2022. The AGO alleges the defendants' In FY2022, approximately 75 per cent of our extraction of water from the Monturaqui aquifer Our operated assets are required to have plans water withdrawals consisted of water classified has caused environmental damage. The Peine and processes that reflect local biodiversity risks as low quality. The definitions for water quality Community (an Indigenous community) has and regulatory requirements. We revised and types is available in section 2.2.4 of the WAF. lodged a claim against Escondida based on the formalised a global-level biodiversity strategy in Stakeholder engagement and same facts. Both claims have been consolidated FY2022 that outlines our purpose and strategic legal matters into a single proceeding. Escondida filed its priorities, and is designed to inform operational answer to the claims on 15 June 2022. decision-making across the full life cycle of Beyond our operational activities, we have mining operations at our operated assets. committed to engaging across communities, More information on our approach to water The global-level strategy provides a clear government, business and civil society with stewardship, progress against our Water direction that aligns asset-level biodiversity and Stewardship Strategy, water performance 1 The CEO Water Mandate is a UN Global Compact land objectives and supports delivery of the new in FY2022 and case studies on activities we initiative that mobilizes business leaders on water, 2030 healthy environment goal. are undertaking to progress towards meeting sanitation and the Sustainable Development Goals. Endorsers of the CEO Water Mandate our water stewardship vision is available at For more information on our 2030 goals commit to continuous progress against six bhp.com/water. refer to OFR 2.2 and 7.1. core elements of stewardship and in so doing understand and manage their own water risks. In FY2022, we delivered our most recent Companies that endorse the Mandate agree to continuous improvement in six core areas of their five-year sustainability target related to water stewardship practice: Direct Operations, biodiversity. This was to improve marine and Supply Chain & Watershed Management, Collective terrestrial biodiversity outcomes by developing Action, Public Policy, Community Engagement and Transparency. BHP is an active signatory of a framework to evaluate and verify the benefits the Mandate. 58 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary of our actions, in collaboration with others, January 2019 further strengthened our resolve to mitigate TSF failure risk. With this information which has been tested at all our operated reduce TSF failure risk. our assets optimised the design and execution assets, and contribute to the management of of their risk remediation plans, which collectively areas of national or international conservation For information about the Samarco are intended to materially reduce PAR across tragedy and our progress with the significance exceeding our disturbed land response refer to OFR 8. the portfolio in the short to medium term. footprint, also known as the 'area conserved' Our medium- and long-term strategies focus target. The application of the biodiversity Governance and the Global on the development of technologies to improve framework is intended to enable us to monitor Industry Standard on Tailings tailings management and storage, which we the impacts of our activities and the effect of Management believe are important in our aspiration of zero our management responses on biodiversity in a We are committed to the 2020 Global Industry harm from tailings. Asset-specific strategies consistent way across BHP's operated assets. Standard on Tailings Management (GISTM) have been developed for all our operated assets The biodiversity framework was developed with and are working to implement the requirements (including legacy assets) and seek long-term the support of Conservation International and in line with the timelines outlined by the ICMM. alternative tailings solutions. In addition, while Proteus, a cross-sector partnership between Our Tailings Storage Facility Policy Statement our non-operated joint ventures (NOJVs) the UN Environment Programme World has been published on our website, outlining are independently controlled and have their Conservation Monitoring Centre (UNEP WCMC) our commitment to the safe management own operating and management standards, and business. of TSFs, emergency preparedness and we encourage NOJVs to consider long-term For our 'area conserved' target, the total land response, recovery in the event of a failure alternative tailings solutions as an option in set aside for conservation on land where and transparency. asset planning. we operate and other land we steward was Delivery of the GISTM implementation plans Industry collaboration 65,870 hectares in FY2022. In addition to these was a priority in FY2022 and we made notable conservation areas, we made several voluntary As part of our commitment to achieving progress across our operated assets, which investments over the target period, including to zero harm from tailings, we are accelerating was tracked and reported to the Sustainability the Terrebonne Biodiversity Resilience Project (a transformative approaches and technologies Committee. As part of our commitment to coastal restoration project in Louisiana) and the through a wide range of initiatives in GISTM and continuous improvement in Martu Living Desert Project in Australia (support collaboration with external industry partners. tailings management, we conducted a mid-for management and conservation activities In FY2022, Future Tails (which is an initiative implementation review that confirmed we are on Martu Country). Under the Conservation focused on training, education, research and on track to achieve conformance in line with International and BHP alliance, Conservation best-practice guides in the tailings management the ICMM timelines. We also implemented International supported an assessment of space that is supported by BHP, Rio Tinto and our Accountable Executive (AE) model, whether these projects could contribute towards the University of Western Australia) established whereby AEs are direct reports of the BHP achievement of this target and found that the training programs tailored to executives, Chief Executive Officer and answerable to area that could reasonably be claimed was operators and technical tailings engineers. the Sustainability Committee as stipulated in 4,465,260 hectares. Given BHP's FY2022 total These have been positively received by GISTM's requirements. The AEs cover both disturbed land footprint was 149,312 hectares, the industry. direct operational accountability for BHP's TSFs our 'area conserved' target has been achieved as well as an AE accountable for oversight of A consortium of industry peers was formed in by our operational and voluntary conservation BHP's TSF governance framework. AEs are FY2022, to jointly conduct focused research on investments over the target period. accountable for the safety, environmental and tailings innovation solutions and share results In addition, we signed a grant agreement in social impacts of TSFs. Front line employees and learnings. Expansion of the program FY2022 with Conservation International to pilot are the first line (under our three lines risk is planned for the coming years to bring in a framework to improve marine and coastal management model) and manage the day-to-day additional industry partners and represents a protections and enhance resilience (known as operations and safety at site, while connected significant opportunity for industry knowledge the 'Seascape Approach') in Fiji, with the aim via regular communication to the relevant AE. and capability uplift. of enhancing resilience of coastal Indigenous We continued to progress work on TSF failure As part of this program, we have created communities and Lau's marine and coastal risk management in FY2022 with a focus partnerships with Rio Tinto and the University ecosystems. This is expected to be a significant on the delivery of the risk remediation plans of Melbourne designed to both develop novel investment in marine biodiversity conservation completed in FY2021. These plans are in tailings dewatering technologies and mitigate in Fiji's eastern islands of the Lau Province and addition to the range of ongoing governance the risk involved in the large-scale application its surrounding waters. The agreement is aligned activities we have in place to ensure effective of known tailings dewatering technologies. with the longer-term goal released in FY2018 management of TSF failure risk, including Dam Dewatering is a sustainable approach to tailings of supporting actions aligned with the UN Safety Reviews, Independent Tailings Review processing that supports our public commitment Sustainable Development Goals 14 and 15. Boards and project-specific Independent Peer to reduce water usage. The BHP Tailings More information on our approach to Reviews. Key risk indicators (KRIs) set by Challenge received over 150 applications from biodiversity and land management and management help to monitor performance of our 19 countries in FY2022 and following a rigorous current performance is available at TSFs in dam integrity and design, overtopping/ assessment process, two finalists were selected bhp.com/biodiversity. flood management and emergency response to progress solutions for repurposing tailings into 7.18 Tailings storage planning. These KRIs have been updated to fertiliser and construction material. The program align to the GISTM. will continue through FY2023 culminating in an facilities For more information on BHP's on-site pilot ahead of full solution development. approach to risk management including Ensuring the integrity of our tailings storage KRIs refer to OFR 9. Transparency facilities (TSFs) is a primary focus across our We fully support the GISTM and are working business. Our aspiration is to achieve zero harm Strategy towards implementation at our sites. We have from tailings and we will continue to work with Our short-term strategy continues to focus prioritised and actioned a phased disclosure others and share our progress in an effort to on improving KRI performance in line with approach towards conformance, starting with make this a reality. defined targets. We are completing studies an update to our previously published Church at our operated assets focused on reducing of England Disclosure1. We have contributed to In 2015, after the tragic failure of the Fundăo dam at Samarco, BHP initiated a Dam and mitigating potential downstream impacts improvements in tailings storage management Risk Review to assess the management of particularly to populations at risk (PAR). across the mining industry, including through major TSFs. The catastrophic failure of the the ICMM Tailings Working Group. We are The studies resulted in a diverse range of participants in other tailings working groups Brumadinho dam at Vale's operation in Brazil in options to reduce PAR exposure at our TSFs or BHP Appendix 4E 2022 59

7 Sustainability continued globally, including those associated with the not reflect the current physical stability of the is of downstream construction, and two TSFs Canadian Dam Association, Australian National TSF and it is possible for TSF classifications at Samarco in Brazil, Alegria Sul TSF, which is Committee on Large Dams, Australasian to change over time, for example, following co-mingled dry stack, and Alegria Sul Pit, an Institute of Mining and Metallurgy, Minerals changes to the operating context of a dam. in-pit TSF. In addition, there are seven inactive Council of Australia, Mining Association of facilities. These include two upstream facilities The TSF classification informs the design, Canada, Society for Mining, Metallurgy and at Samarco (Germano) in Brazil (that are being surveillance and review components of risk Exploration, and Fundación Chile. decommissioned following the February 2019 management. Therefore, TSFs with a higher-rulings by the Brazilian Government on upstream We have continued to participate in the Investor level classification will have more rigorous dams); three upstream inactive facilities and Mining and Tailings Safety Initiative, an investor- requirements than TSFs that have a lower one inactive modified centreline facility at led engagement convening institutional investors level of classification. Resolution Copper in the United States; and active in extractive industries, including major asset owners and asset managers. As at 30 June 2022, there were 71 TSFs1 at our one downstream inactive facility at Bullmoose in operated assets, 28 of which are of upstream Canada. In FY2022, two NOJV TSFs at Cerrejón We continued our work to fulfil our commitment design. Of the 71 operated facilities, none in Colombia were removed from our TSF to provide detailed, transparent and integrated are extreme and a further 20 are classified portfolio following the sale of the asset. disclosure of TSF management in FY2022. as very high. The three facilities classified as In addition to our work with industry partners extreme in FY2021 have been reclassified to a to support the development of credible and lower-consequence classification following the meaningful disclosure standards, we have completion of risk mitigation works this year. sought to enable the consistent application In FY2022, two TSFs were removed from the of these in our own business through the operated TSF portfolio following the divestment development and rollout of our Sustainability of our interest in BMC and one new active TSF, Standards Portal. The portal is a data platform a low-consequence, upstream facility at Olympic to integrate multiple ESG standards, simplify Dam, has been added. A substantial portion of data management for our assets and further our inactive portfolio (56) at our assets is due strengthen the process, data quality and largely to the number of historic tailings facilities governance improvements achieved to date. associated with our North American legacy assets portfolio. Operated and non-operated tailings portfolio More information on the risk reduction work underway for high-consequence The classifications described in this Report classification facilities is provided earlier align to the Canadian Dam Association (CDA) in the Governance and Strategy sections classification system. The TSF classification is and online, including in our case studies. one element of TSF risk management, but does 1 In April 2019, the Church of England Pensions not represent risk itself. It reflects the modelled, There are 10 TSFs at our NOJVs, which are Board and the Council on Ethics Swedish National hypothetical, most significant possible failure all located in the Americas. The three active Pension Funds wrote to approximately 700 mining firms to request specific disclosures of their and consequences without controls. It does TSFs are located at Antamina in Peru, which tailings facilities. Classification of operated tailings Types of operated tailings Operational status of operated storage facilities1,2,3,4,5,6 storage facilities1,2,7 tailings storage facilities1,2,8 Extreme 0 Centreline 8 Active 15 Very high 20 Downstream 18 Inactive 56 High 15 Upstream 28 Significant 15 Other 17 Low 18 N/A 3 1 The number of tailings storage facilities (TSFs) is based on the definition agreed to by the ICMM Tailings Advisory Group at the original time of submission and expanded to align with the TSF definition established in the Global Industry Standard for Tailings Management (GISTM). We keep this definition under review. 2 In FY2022, four TSFs were removed from the BHP TSF portfolio following the sale of our interests in two assets: two TSFs at Cerrejón (NOJV) in January 2022 and two TSFs at BMC (operated joint venture) in May 2022. One new, active TSF, TSF 6 at Olympic Dam, has been included. 3 The following classifications aligned to the CDA classification system. It is important to note that the classification is based on the modelled, hypothetical, most significant failure mode and consequences possible without controls, and not on the current physical stability of the dam. 4 For the purposes of this chart, ANCOLD and other classifications have been converted to their CDA equivalent. 5 Hamburgo TSF at Escondida is an inactive facility where tailings were deposited into a natural depression. Hamburgo TSF is not considered a dam and is, therefore, not subject to CDA classification. 6 SP1/2 and SP3 TSF at New South Wales Energy Coal are inactive facilities which have been assessed to have no credible failure modes and are therefore shown as not having a CDA classification. 7 'Other' includes dams with a raising method that combines upstream, downstream and centreline or are of in-pit design. 8 'Inactive' includes facilities not in operational use, under reclamation, reclaimed, closed and/or in post-closure care and maintenance. 60 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary 8 Samarco The Fundão dam failure they suffered, such as cart drivers, sand Some families have chosen not to join the miners, artisanal miners and street vendors. resettlement of their previous community and On 5 November 2015, the Fundão tailings dam More than 166,000 people have applied to instead resettle elsewhere. For these families, operated by Samarco Mineração S.A. (Samarco) join the Novel system to 30 June 2022. 88 houses and plots have been purchased, built failed. Samarco is a non-operated joint venture Updates on the progress of Fundação and/or renovated, and 13 are under construction (NOJV) owned by BHP Billiton Brasil Ltda (BHP Renova's compensation program or renovation as at 30 June 2022. Other families Brasil) and Vale S.A. (Vale), with each having a are available at fundacaorenova. have opted for a cash payment in lieu of any 50 per cent shareholding. org/en/repair-data/indemnities-and- of the other resettlement solutions offered by A significant volume of tailings (39.2 million cubic productive-resumption Fundação Renova. metres) resulting from the iron ore beneficiation Resettlement process was released. Tragically, 19 people Updates on the progress of Fundação died - five community members and 14 people One of Fundaçăo Renova's priorities is the Renova's resettlement program are who were working on the dam. The communities resettlement of the communities of Bento available at fundacaorenova.org/ of Bento Rodrigues, Paracatu de Baixo and Rodrigues, Paracatu de Baixo and Gesteira. en/repair-data/resettlement-and-This involves ongoing engagement and infrastructure Gesteira were flooded and other communities Other socio-economic programs and the environment downstream in the Rio consultation with a large number of stakeholders, Doce basin were also affected. including the affected community members, their Fundação Renova continues to implement a technical advisers, state prosecutors, municipal wide range of socio-economic programs in Samarco restarted its operations at a reduced leaders, regulators and other interested parties. addition to the compensation and resettlement production level in December 2020. The resettlement process for Bento Rodrigues programs. These programs cover health and For information on Samarco's and Paracatu de Baixo involves designing new infrastructure projects in the Rio Doce basin, operations refer to OFR 5.2. towns on land chosen by the communities, to promotion of economic development in the Our response and support for be as close as possible to the previous layout, impacted communities and sewage treatment Fundação Renova attending to the wishes and needs of the facilities to improve the water quality in the BHP Brasil has been and remains fully families and communities, while also meeting Rio Doce. committed to supporting the extensive ongoing permitting requirements. Environmental remediation remediation and compensation efforts of Mandated COVID-19 workforce restrictions Since December 2019, the riverbanks and Fundação Renova in Brasil. and suspensions of works on-site, increases floodplains have been vegetated, river margins The Framework Agreement entered into to the technical scope for resettlement of stabilised and in general, water quality and between Samarco, Vale and BHP Brasil and the communities and permitting delays sediment qualities have returned to historic the relevant Brasilian authorities in March 2016 have impacted the timeline for completion. levels. Long-term remediation work is continuing established Fundação Renova, a not-for- Ongoing efforts to accelerate completions to re-establish agriculture and native vegetation. profit, private foundation that is implementing continued throughout FY2022. 42 remediation and compensatory programs. A total of 48 houses have been completed and A ban on fishing activities along the coast of BHP Brasil provides support to Fundação 158 are under construction and mobilisation at Espírito Santo and a precautionary conservation Renova, including through representation on the Bento Rodrigues and Paracatu de Baixo as at restriction preventing fishing for native fish foundation's governance structures. 30 June 2022. Plans for families to move into species in the Rio Doce in Minas Gerais remain their completed houses are progressing. in place. Fundação Renova continues to support To 30 June 2022, BHP Brasil has provided the recovery of habitats and aquatic ecology and US$1.8 billion to fund Framework Agreement engage with the authorities with the goal of lifting Infrastructure at Bento Rodrigues is complete, programs when Samarco has been unable to the restrictions. including roads, power, water and sewer do so. networks. Public services are also complete, Updates on the progress of Fundação Renova including the health and services centres, a Fundaçăo Renova's environmental municipal school and sewage treatment station. remediation programs are available Compensation and financial assistance Infrastructure at Paracatu de Baixo is complete, at fundacaorenova.org/en/repair-data/ socio-environmental-repairs Fundação Renova continues to provide fair including roads, power, treated water pipeline, compensation to people impacted by the storm water and sewer networks. Public services Legal proceedings dam failure. are under construction, including an elementary BHP Group Limited, BHP Group (UK) Ltd school, kindergarten, health centre, water Compensation and financial assistance of (formerly BHP Group Plc) and BHP Brasil are treatment station and sewage treatment station. approximately R$11.2 billion (approximately involved in legal proceedings relating to the US$2.3 billion)ą has been paid to support At Gesteira, Fundação Renova offered the Samarco dam failure. approximately 388,000 people affected by the families a payment solution in which they would For more information on the significant dam failure up until 30 June 2022. This includes: be able to purchase property through a 'letter of legal proceedings involving BHP credit'. Most families of Gesteira have chosen refer to Additional Information in the - More than 22,000 general damages claims (including loss of life, injury, property damage, this option, and the 12th Federal Court has Annual Report. ratified their agreements. business impacts, loss of income and moral damages) have been resolved, and more than 290,000 people have been paid a total of approximately R$305 million (approximately US$69 million)1 for temporary water interruption as at 30 June 2022. - Approximately R$7.1 billion (approximately US$1.4 billion)ą has been paid to more than 66,000 people under the court-mandated simplified indemnity system (known as the 'Novel' system) as at 30 June 2022. The Novel system is designed to provide compensation for informal workers who have had difficulty proving the damages 1 USD amount is calculated based on actual transactional (historical) exchange rates related to Renova funding. BHP Appendix 4E 2022 61

9 How we manage risk Risk management helps us to protect and create value, and is central to achieving our purpose and strategic objectives. Our Risk Framework has Therefore, as well as having controls designed to Second line risk-based reviews are undertaken four pillars: risk strategy, risk protect BHP from threats, we seek to implement to provide greater oversight and enhance our governance, risk process and controls to enable and/ or enhance opportunities. understanding and management of the Group's most significant risks, with outcomes reported risk intelligence. Risk governance to management, the RAC and the Sustainability Risk strategy Three lines model Committee. These outcomes may be used to develop remediation plans, adjust BHP's Risk Risk classification BHP uses the 'three lines model' to define the Appetite Statement or KRIs, enhance our Risk We classify all risks to which BHP is exposed role of different teams across the organisation Framework or inform strategic decisions. using our Group Risk Architecture. This is a tool in managing risk. This approach sets clear designed to identify, analyse, monitor and report accountabilities for risk management and Risk process provides appropriate 'checks and balances' to risk, which provides a platform to understand Our Risk Framework requires identification support us in protecting and growing value. and manage risks. Similar risks are considered and management of risks (both threats and together in groups and categories. This gives The first line is provided by our frontline opportunities) to be embedded in business the Board and management visibility over the staff, operational management and people in activities through the following process: aggregate exposure to risks on a Group-wide functional roles - anyone who makes decisions, - Risk identification - threats and opportunities basis and supports performance monitoring and deploys resources or contributes to an outcome are identified and each is assigned an owner reporting against BHP's risk appetite. is responsible for identifying and managing the or accountable individual. Risk appetite associated risks. - Risk assessments - risks are assessed using BHP's Risk Appetite Statement is approved The Risk team and other second-line teams are appropriate and internationally recognised by the Board and is a foundational element of responsible for providing expertise, support, techniques to determine their potential our Risk Framework. It provides guidance to monitoring and challenge on risk-related impacts and likelihood, prioritise them and management on the amount and type of risk matters, including by defining Group-wide inform risk treatment options. minimum standards. we seek to take in pursuing our objectives. - Risk treatment - controls are implemented to Key risk indicators The third line, our Internal Audit team, is prevent, minimise and/or mitigate threats, and responsible for providing independent enable and/or enhance opportunities. Key risk indicators (KRIs) are set by and objective assurance over the control - Monitoring and review - risks and controls management to help monitor performance environment (governance, risk management and are reviewed periodically and on an ad hoc against our risk appetite. They also support internal controls) to the Board and Executive basis (including where there are high-decision-making by providing management with Leadership Team. Additional assurance may potential events or changes in the external information about financial and non-financial also be provided by external providers, such as environment) to evaluate performance. risk exposure at a Group level. Each KRI has a our External Auditor. target, or optimal level of risk we seek to take, as - Communication - relevant information is well as upper and lower limits. Where either limit As of 1 August 2022, the Risk team and Internal recorded in our enterprise risk management is exceeded, management will review potential Audit team were combined to form a Risk and system to support continuous improvement causes to understand if BHP may be taking too Internal Audit sub-function, led by a Chief Risk and share risk intelligence across the Group. and Audit Officer. This reflects the maturity of our little or too much risk and to identify whether Our Risk Framework includes requirements and Risk Framework and risk management capability further action is required. guidance on the tools and process to manage across the first and second lines. The integration current and emerging risks. Risk culture of these areas in one sub-function is designed to improve overall effectiveness of both teams, Current risks Our risk management approach is underpinned including through further alignment of second Current risks are risks that could impact BHP by a risk culture that supports decision-making and third line assurance activities across BHP. today or in the near future and comprise current in accordance with BHP's values, objectives The Risk team and Internal Audit team will operational risks (risks that have their origin and risk appetite. We use a common foundation continue to operate in the second and third inside BHP or occur as a result of our activities) across BHP to build the tools and capabilities lines respectively. and current strategic risks (risks that may required to enable us to understand, monitor BHP Board and Committees enhance or impede the achievement of our and manage our risk culture. These include strategic objectives). tailored second-line cultural reviews, Group-wide The Board reviews and monitors the risk culture dashboards and the inclusion of effectiveness of the Group's systems of financial Current risks include material and non-material risk-culture assessments as part of our internal and non-financial risk management and internal risks (as defined by our Risk Framework). audit plan. control. The broad range of skills, experience The materiality of a current risk is determined and knowledge of the Board assists in providing Strategic business decisions by estimating the maximum foreseeable loss a diverse view on risk management. The Risk (MFL) if that risk was to materialise. The MFL Strategic business decisions and the pursuit and Audit Committee (RAC) and Sustainability is the estimated impact to BHP in a worst-case of our strategic objectives can inform, create Committee assist the Board by reviewing and scenario without regard to probability and or affect risks to which BHP is exposed. considering BHP's material risk profile (covering assuming all risk controls, including insurance These risks may represent opportunities as well operational, strategic and emerging risks) on a and hedging contracts, are ineffective. as threats. Our Risk Appetite Statement and biannual basis. Our risk factors are described KRIs assist in determining whether a proposed Performance against risk appetite is monitored in OFR 9.1. course of action is within BHP's risk appetite. and reported to the RAC, as well as the Our focus when managing risks associated with Sustainability Committee for HSEC matters, strategic business decisions is to enable the supporting the Board to challenge and hold pursuit of high-reward strategies. management to account. 62 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Our focus for current risks is to prevent their 9.1 Risk factors The potential physical impacts of climate occurrence or minimise their impact should they change could increase the likelihood and/or occur, but we also consider how to maximise Our risk factors are described severity of risks associated with operational possible benefits that might be associated with below and may occur as a events. Impacts of operational events may also strategic risks (as described in the 'Risk strategy'result of our activities globally, be amplified if we fail to respond in a way that section). Current material risks are required is consistent with our corporate values and to be evaluated once a year at a minimum to including in connection with stakeholder expectations. determine whether our exposure to the risk is our operated and non-operated within our risk appetite. assets, third parties engaged by Examples of potential threats BHP or through our value chain. - Failure of a water or tailings storage facility, Emerging risks such as the tragic failure of the Fundão dam Emerging risks are newly developing or These risks, individually or collectively, could at Samarco in 2015 or a failure at one of our changing risks that are highly uncertain and threaten our viability, strategy, business model, facilities in Australia, Chile, Peru, the United difficult to quantify. They are generally driven future performance, solvency or liquidity States, Canada or Brazil. by external influences and often cannot and reputation. They could also materially - Unplanned fire events or explosions (on the be prevented. and adversely affect the health and safety surface and underground). of our people or members of the public, the BHP maintains a 'watch list' of emerging environment, the communities where we or our - Geotechnical instability events (such as failure themes and monitors associated signals to third-party partners operate, or the interests of of underground excavations, unexpected interpret external events and trends, providing our stakeholders, which could in each case, large wall instabilities in our open pit mines, an evolving view of the changing external lead to litigation, regulatory investigation or or potential interaction between our mining environment and how it might impact our enforcement action (including class actions or activities and community infrastructure business. We use the watch list and signal actions arising from contractual, legacy or other or natural systems), including at our monitoring to support the identification and liabilities associated with divested assets), or a underground or open pit mines in Australia, management of emerging risks, as well as to loss of stakeholder and/or investor confidence. Chile, Peru, the United States, Canada inform and test our corporate strategy. References to 'financial performance' include or Brazil. Once identified, our focus for emerging risks our financial condition and liquidity, including - Air, land (road and rail) and marine is on structured monitoring of the external due to decreased profitability or increased transportation events (such as aircraft environment, advocacy efforts to reduce operating costs, capital spend, remediation costs crashes or vessel collisions, groundings the likelihood of the threats manifesting and or contingent liabilities. BHP is also exposed to or hydrocarbon release) that occur while identifying options to increase our resilience to other risks that are not described in this section. transporting people, supplies or products to these threats. exploration, operation or customer locations, Each risk factor may present opportunities as which include remote and environmentally well as threats. We take certain risks for strategic Risk intelligence sensitive areas in Australia, South America, reward in the pursuit of our strategy and Asia, the United States and Canada. The Risk team provides the RAC, Sustainability purpose, including to grow our asset portfolio Committee and senior management with insights and develop the right capabilities for the future of - Critical infrastructure or hazardous on risk management across BHP. Risk reports our business. Potential threats and opportunities materials containment failures, other may include trends and aggregate exposure for associated with each of our risk factors are occupational or process safety events, or our most significant risks, performance against described below, along with the key controls to workplace exposures. risk appetite, updates on the Risk Framework manage them. These controls are not exhaustive - Operational events experienced by third and risk management priorities, an overview of and many Group-wide controls (such as Our parties, which may also result in unavailability (and material changes in) BHP's material risk Code of Conduct, Risk Framework, mandatory of shared critical infrastructure (such as profile and updates on emerging risk themes and minimum performance requirements for risk railway lines or ports) or transportation signals, and risk culture. In FY2022, risk reports management, health, safety and other matters, routes (such as the Port Hedland channel in were supported by an opinion from the Chief dedicated non-operated joint venture teams and Western Australia). Risk Officer. our Contractor Management Framework) help to support effective and efficient management of Examples of potential We maintain a risk insights dashboard designed opportunities all risks in line with our risk appetite. While we to provide current, data-driven and actionable implement preventative and/or mitigating - Our focus on safety and the wellbeing of our risk intelligence to our people at all levels controls designed to reduce the likelihood of a people, communities and the environment of the business to support decision-making. threat from occurring and minimise the impacts if may increase operational resilience and This tool empowers the business to manage it does, these may not be effective. stakeholder confidence, enhancing our ability risks more effectively, with increased accuracy to attract and retain talent and access (or and transparency. Operational events lower the cost of) capital. The Board, RAC and Sustainability Committee - Collaborating with industry peers and relevant Risks associated with operational events in also receive reports from other teams to organisations on minimum standards (such connection with our activities globally, resulting support the Board to review and monitor the as the internationally recognised Flight in significant adverse impacts on our people, effectiveness of BHP's systems of financial and Safety Foundation's Basic Aviation Risk communities, the environment or our business. non-financial risk management. These include Standard, Global Industry Standard on internal audit reports, ethics and investigations Why is this important to BHP? Tailings Management, Large Open Pit Project reports, compliance reports and the Chief guidelines on open-pit mining design and We engage in activities that have the potential Executive Officer's report. management, and the Cave Mining 2040 Our risk factors are described to cause harm to our people and assets, in OFR 9.1. communities, other stakeholders and/or the Consortium on deep mining design and environment, including serious injuries, illness management) supports improvements to and fatalities, loss of infrastructure, amenities wider industry management of operational and livelihood and damage to sites of cultural risks and may also identify opportunities to significance. An operational event at our improve our own practices. 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. BHP Appendix 4E 2022 63

9 How we manage risk continued Key management actions Accessing key markets Examples of potential opportunities - Planning, designing, constructing, operating, - Monitoring macroeconomic, societal, Risks associated with market concentration maintaining and monitoring surface and geopolitical and policy developments and our ability to sell and deliver products into underground mines, water and tailings and trends may reveal new markets or existing and future key markets, impacting our storage facilities, and other infrastructure and commodities, or identify opportunities economic efficiency. equipment in a manner designed to maintain to strengthen secondary markets for structural integrity, prevent incidents and Why is this important to BHP? existing products. protect our people, assets, communities, the - Developing strategic partnerships and strong, We rely on the sale and delivery of the environment and other stakeholders. mutually beneficial relationships with our - Specifying minimum requirements and commodities we produce to customers around customers may enable us to create value. technical specifications, such as for the world. Changes to laws, international trade transportation (including high-occupancy arrangements, contractual terms or other - Building a deep understanding of geopolitical vehicles, aircraft and their operators) and requirements and/or geopolitical developments threats and opportunities and their potential geotechnical (including characterisation, could result in physical, logistical or other impacts on global trade flows and our design, ground control and monitoring), and disruptions to our operations in, or the sale or business could enhance our strategy, compliance with operating specifications, delivery of our commodities to, key markets. business planning and response, providing industry codes and other relevant standards, These disruptions could affect sales volumes a potential competitive advantage. including BHP's mandatory minimum or prices obtained for our products, adversely - Identifying the potential for weather, climate performance requirements. impacting our financial performance, results of variability or climate change to disrupt delivery operations and growth prospects. of products and implementing management - Defining key governance roles, such as a measures may increase the resilience of our dam owner (an internal BHP individual who Examples of potential threats is accountable for maintaining effective - Government actions, including economic operations and value chain. - Signal monitoring and building relationships governance and integrity of each tailings sanctions, tariffs or other trade restrictions, with and understanding the perspectives storage facility) and providing training and imposed by or on countries where we of influential stakeholders may improve our qualifications for our people. operate or into which we sell or deliver our ability to understand and provide input to - Inspections, technical reviews, audits products may prevent BHP from trading policy development, and to respond to and and other assurance activities, such as or make it more difficult for BHP to trade manage any impacts from policy changes independent dam safety reviews and in key markets. For example, the Ukraine (such as trade policies). geotechnical review boards. conflict and corresponding implementation of economic sanctions, export controls and Key management actions - Maintaining evacuation routes, supporting other restrictive measures by the United equipment, crisis and emergency response - Monitoring and assessing our ability to States, United Kingdom, European Union plans and business continuity plans. access key markets, and maintaining sales and other jurisdictions against Russia - Incorporating future climate projections into plans, product placement and business contributed to increased volatility for some risks associated with operational events resilience strategies and relationships with of the commodities we sell and some of through ongoing assessment of potential relevant stakeholders. physical climate change risks. the key supplies we buy (including diesel - Maintaining response plans for various and ammonia). scenarios (including physical disruptions of FY2022 insights - Physical disruptions to the delivery of our logistics) to mitigate disruptions to our ability products to customers in key markets, Our exposure to risks associated with operational to access key markets. including due to the disruption of shipping events decreased in FY2022 as the divestment of - Monitoring geopolitical and macroeconomic routes, closure or blockage of ports or land our interests in Cerrejón and BMC and the merger developments and trends, including through logistics (road or rail) or military conflict. of our Petroleum business with Woodside removed signal monitoring and our enterprise-level In some cases, physical disruptions may associated risks (including the risk of an offshore watch list of emerging themes, to provide an be driven or intensified by weather, climate well blow out) from BHP's risk profile. Otherwise, early indication of events that could impact variability or other manifestations of our exposure to risks associated with operational our ability to access key markets. climate change. events remained relatively unchanged. - Legal or regulatory changes (such as - Identifying weather and/or climate-related For more information refer to: vulnerabilities and implementing controls to • OFR 7.4 - Safety royalties or taxes, port or import restrictions mitigate disruptions to our ability to physically • OFR 7.18 - Tailings storage facilities or customs requirements, shipping/ access key markets. • OFR 8 - Samarco maritime regulatory changes, restrictions on • bhp.com/sustainability movements or imposition of quarantines, - Diversifying our asset and commodity or changing environmental restrictions or portfolio, such as our ongoing investment regulations, including measures with respect in potash through the Jansen Potash to carbon-intensive industries or imports) Project, to reduce exposure to market and commercial changes (such as changes concentration risks. to the standards and requirements of customers) may adversely impact our ability FY2022 insights to sell, deliver or realise full market value for Exposure to risks associated with our access our products. to key markets increased in FY2022 due to - Failure to maintain strong relationships with changes in our external environment, over which customers, or changes to customer demands we have limited influence. The Ukraine conflict for our products may reduce our market share and the corresponding international response or adversely impact our financial performance. has significantly increased volatility and uncertainty in the international trading, business - Increasing geopolitical tensions (such as the and financial environment. Escalation or escalation of events relating to the Ukraine expansion of the conflict or the international conflict) may adversely affect our strategic response could cause greater disruption of and business planning decisions and/or global supply chains and affect macroeconomic increase the time it takes us to manage our conditions and our ability to sell to particular access to key markets, particularly if we customers or markets. In addition, strategic fail to detect or anticipate deviations in the competition between the United States and geopolitical environment in a timely manner. China continued. 64 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Optimising growth and - Renegotiation or nullification of permits, Key management actions portfolio returns inability to secure new permits or approvals, - Strategies, processes and frameworks increased royalties, expropriation or Risks associated with our ability to position our to grow and protect our portfolio and to nationalisation of our assets, or other asset portfolio to generate returns and value for assist in delivering ongoing returns to legal, regulatory, political, judicial or fiscal shareholders, including through acquisitions, shareholders include: or monetary policy instability or changes mergers and divestments. - our exploration and business development (for example, legislation, regulations Why is this important to BHP? or government policies implemented in programs, which focus on replenishing our Australia by the new federal government, resource base and enhancing our portfolio We make decisions and take actions in pursuit of (including creating and securing more which may include new rules governing the our strategy to optimise our asset portfolio and to options in future facing commodities) pay of contractors) may increase our costs secure and create growth options in future facing or adversely impact our ability to achieve - our long-term strategic outlook and ongoing commodities (such as copper, nickel and potash). expected commercial objectives from strategic processes to assess our competitive These may include active portfolio changes assets or investments, access reserves, advantage and enable the identification of (such as divestment of our interests in BMC and develop, maintain or operate our assets, threats to, or opportunities for, our portfolio Cerrejón, and merger of our Petroleum business enter new jurisdictions, or otherwise optimise through forecasting and scenario modelling with Woodside), as well as maturing organic our portfolio. growth options across our existing portfolio. - monitoring signals to interpret external A strategy that does not support BHP's objectives - Inability to predict long-term trends in the events and trends, and designing and/or ill-timed execution of our strategy supply, demand and price of commodities commodity strategies and price protocols (including as a result of not having sector-leading and optimise our asset portfolio accordingly that are reviewed by management and talent and capabilities) or other circumstances may restrict our ability to generate long-term the Board may lead to a loss of value that impacts our returns from the portfolio. For example, - our Capital Allocation Framework, corporate ability to deliver returns to shareholders and fund slowing economic growth in China due to planning processes, investment approval our investment and expansion opportunities. factors such as the COVID-19 pandemic, processes and annual reviews (including It may also result in our asset portfolio being political and trade tensions or the market resilience testing) of portfolio valuations less resilient to movements in commodity prices, volatility and uncertainty resulting from the Ukraine conflict may result in lower demand - our balance sheet and liquidity framework, which are determined by or linked to prices which is designed to maintain a robust in world markets. In the short term, this may and prices for our products, which would adversely impact our portfolio returns. balance sheet with sufficient liquidity and reduce our cash flow, ability to access capital access to diverse sources of funding and our dividends. A failure to optimise our asset - Commodity prices have historically been portfolio for structural movements in commodity and may continue to be subject to significant - Pursuing a considered approach to new prices over the long term may result in asset volatility, including due to global economic country entry, including development impairments and could adversely affect the and geopolitical factors, industrial activity, of capability to operate in higher-results of our operations, financial performance commodity supply and demand (including risk jurisdictions, in order to support and returns to investors. inventory levels), technological change, portfolio opportunities. product substitution, tariffs, interest rate - Further developing BHP's social value Examples of potential threats movements and exchange rate fluctuations. proposition to position BHP as a preferred - Failure to optimise our portfolio through Our usual policy and practice is to sell our partner for the development of resource effective and efficient acquisitions, exploration, products at prevailing market prices and, as opportunities in line with the expectations of large project delivery, mergers, divestments such, movements in commodity prices may local communities, host governments and or expansion of existing assets (including affect our financial performance. Long-term other global stakeholders. due to sub-optimal capital prioritisation) price volatility or sustained low prices may - Managing commodity price exposure through may adversely impact returns to investors. adversely impact our financial performance as the diversity of commodities, markets, For example, a scarcity of growth options that we do not generally have the ability to offset geographies and currencies provided by align with our strategy could require us to mine costs through price increases. our portfolio, as well as our financial risk deeper, lower-grade deposits, which may lead management practices in relation to our to higher operating and capital costs. Examples of potential opportunities commercial activities. - Failure to identify potential changes in - Acquisition of new resources or acceleration commodity attractiveness and missed entry of organic growth options in future facing FY2022 insights or commodity exit opportunities may result commodities may strengthen and diversify our Our exposure to risks associated with optimising in decreased return on capital spend for, or portfolio and protect and grow value over the growth and portfolio returns increased in FY2022 overpayment to acquire or invest in, new long term. as a result of volatility and uncertainty across assets or projects, stranded assets or reduced - Ability to predict long-term commodity global economies, fiscal regimes and industrial divestment proceeds. demand, supply and price trends may lead relations, licencing-regulatory uncertainty - Failure to achieve expected commercial to BHP being able to identify and acquire and escalating social value expectations. objectives from assets or investments, new future facing commodities and assets The ongoing conflict in Ukraine has contributed such as cost savings, sales revenues or ahead of our competitors or exit from to inflationary pressures for key inputs across operational performance (including as a result declining commodities in a timely manner, our value chain (such as diesel, acid, ammonia of inaccurate commodity price assumptions or strengthening our portfolio and leading to and explosives). In FY2022, we completed the resources and reserves estimates), may result long-term, higher portfolio returns. divestment of our interests in BMC and Cerrejón, in returns that are lower than anticipated and - BHP may be perceived as a welcome and the merger of our Petroleum business with loss of value. Impacts could be exacerbated and valued or preferred partner for the Woodside which are intended to optimise and by effects of the COVID-19 pandemic and development of new resource opportunities, consolidate our portfolio to align with BHP's Ukraine conflict, including supply chain enabling us to secure new assets or long-term strategy. disruptions (for example, disruption in exploration opportunities to create long-term For more Information refer to: the energy sector impacting our end-user optionality in the portfolio. • OFR 3 - Positioning for the future markets), labour shortages, inflationary • OFR 10 - Performance by commodity • Financial Statements note 23 pressures on raw materials and unfavourable 'Financial risk management'exchange rates, creating operational headwinds and challenging on-time and on-budget project delivery. BHP Appendix 4E 2022 65

9 How we manage risk continued Significant social or Examples of potential opportunities - Conducting regular research and impact environmental impacts assessments for operated assets to better - Our support for responsible stewardship of understand the social, environmental, human Risks associated with significant impacts of our natural resources may enhance the resilience rights and economic context. This supports operations on and contributions to communities of environments and communities to potential us to identify and analyse stakeholder, and environments throughout the life cycle of our threats (including the potential physical impacts community and human rights impacts, including assets and across our value chain. of climate change). For example, BHP has modern slavery risks and emerging issues. commenced a pilot study on developing a Why is this important to BHP? We also complete due diligence screening on Natural Capital Account at a restored mine site suppliers through our Ethical Supply Chain and The long-term viability of our business is closely to understand how we can better incorporate Transparency program. connected to the wellbeing of the communities nature-related threats and opportunities into our and environments where we have a presence. strategic planning, risk management and asset - Integrating closure into our planning, decision-At any stage of the asset life cycle, our activities allocation decisions. making and other activities through the life and operations may have or be seen to have cycle of our operated assets, as set out in our - Strong social performance, including significant adverse impacts on communities and mandatory minimum performance requirements sustainable mining and a focus on the wellbeing environments. In these circumstances, we may for closure. of communities, could generate competitive fail to meet the evolving expectations of our advantage in the jurisdictions where we FY2022 insights stakeholders (including investors, governments, operate. For example, BHP was recognised employees, suppliers, customers and Indigenous Our exposure to risks with potentially significant for our contribution to the development of peoples and other community members) social or environmental impacts increased in female leaders in the Chilean mining sector whose support is needed to realise our strategy FY2022 due to environmental, political and (Inspirational Women in Mining Awards), which and purpose. regulatory developments, and increasing societal may enhance our attractiveness as a place to expectations, including of regulators and other work and support talent retention. This could lead to loss of stakeholder support stakeholders on Indigenous peoples' rights, or regulatory approvals, increased taxes and - Our global social value strategy may improve climate change and the potential impacts of our regulation, enforcement action, litigation or stakeholder relations, enhance community trust operations throughout the asset life cycle. class actions, or otherwise impact our licence and increase investor confidence and demand to operate and adversely affect our reputation, for our commodities. We have continued to focus on improving ability to attract and retain talent, ability to engagement with Indigenous peoples, including - Greater clarity, transparency and standards access capital, operational continuity and the protection of cultural heritage. The economic associated with regulatory regimes that support financial performance. importance of biodiversity is increasingly at the and protect communities and the environment forefront of investor considerations (particularly may increase requirements across our Examples of potential threats following the Dasgupta Review in the United sector, generating competitive advantage for - Engaging in or being associated with activities Kingdom in FY2021) and is expected to be companies that have already invested in social (including through non-operated joint ventures strengthened through the development of and environmental performance. and our value chain) that have or are perceived institutional frameworks, including the Taskforce - Building our reputation for sustainable and on Nature-related Financial Disclosures. to have individual or cumulative adverse responsible operating practices (such as impacts on the environment, biodiversity The opportunity for BHP in measuring through the Copper Mark, which was awarded and ascribing value to natural assets is to and land management, water access and to three of our copper assets in FY2022) may management, human rights or cultural heritage. gain a better understanding of the value of increase demand for some of our commodities environmental impacts and dependencies, - Failing to meet stakeholder expectations and improve our access to talent and capital. and the risks they may pose to delivery of our in connection with our legal and regulatory Key management actions strategy, purpose and public targets, goals obligations, relationships with Indigenous and commitments. peoples, community wellbeing and the way - The Our Requirements for Community and Our For more Information refer to: we invest in communities or our approach Requirements for Environment and Climate OFR 6 - People and culture to environment, climate change, biodiversity Change standards provide requirements and OFR 7.8 - Climate change and land management, water access and practices that are designed to strengthen OFR 7.10 - Community management, human rights or cultural our social, human rights and environmental OFR 7.11 - Human rights heritage priorities. performance. Our Human Rights Policy OFR 7.13 - Indigenous peoples OFR 7.14 - Social investment - Political, regulatory and judicial developments Statement, Water Stewardship Position OFR 7.15 - Environment (such as constitutional reform in Chile that Statement, Climate Transition Action Plan 2021 • OFR 7.16 - Water could lead to adjustments to water and other and Indigenous Peoples Policy Statement set • OFR 7.17 - Biodiversity and land resource rights) could increase uncertainty out our targets, goals, commitments and/or • bhp.com/sustainability in relation to our operating environment, approach to these matters. requiring us to adjust our business plans or - Engaging in regular, open and transparent strategy. For example, changes to regulations dialogue with stakeholders to better understand may require us to modify mine plans, limit their expectations, concerns and interests, our access to reserves and resources, delay and undertaking research to better understand the timing or increase costs associated with stakeholder perceptions. closure and rehabilitation of assets, or expose - Building social value into our decision-making BHP to unanticipated environmental or other process, along with financial considerations, legacy liabilities. including through our new social value - Failing to identify and manage potential framework and 2030 People, Planet and physical climate change risks to communities, Prosperity goals. biodiversity and ecosystems. For example, - Building stakeholder trust and contributing changes to species habitat or distribution as a to environmental and community resilience, result of sustained higher temperatures could including through collaborating on shared result in land access restrictions or litigation, or challenges (such as climate change and limit our access to new opportunities. 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. 66 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Inadequate business resilience - Failure of our risk management or other - Sourcing quality, centralised climate data processes (including controls) to prepare for covering each of our operating locations so Risks associated with unanticipated or or manage any of the risks discussed in this that our operated assets and functions have unforeseeable adverse events and a failure 'Risk factors' section may inhibit our (or our access to appropriate data to support climate of planning and preparedness to respond to, third-party partners') ability to manage any studies that will inform investment decisions manage and recover from adverse events resulting adverse events and may disrupt our around enhancing our operational resilience. (including potential physical impacts of operations or adversely impact our financial climate change). FY2022 insights performance or reputation. Why is this important to BHP? Our exposure to risks associated with inadequate Examples of potential opportunities business resilience continued to grow in FY2022, In addition to the threats described in our other - Risk identification and management supports with the external environment becoming increasingly risk factors, our business could experience proactive, focused and prioritised deployment volatile. Key emerging themes (including social unanticipated, unforeseeable or other adverse of resources to reduce exposure to adverse activism, international criminal enterprise, global events (internal or external) that could harm our events. It may be used to inform priorities terrorism, cyber threats and war) signal heightened people, disrupt our operations or value chain, and strategies across BHP, supporting a levels of global uncertainty and an increased or damage our assets or corporate offices, proportionate and cost-effective response, likelihood of unexpected shocks or disruptions. including our non-operated assets in which BHP which could provide a competitive advantage At the same time, crisis events are increasing in has a non-controlling interest. A failure to identify at a regional or global level. frequency and scale. Some of these events directly or understand exposure, adequately prepare for - Building wider organisational resilience impacted our business during FY2022, including the these events (including maintaining business may enable us to maintain dividends to emergence of new COVID-19 variants and flooding continuity plans) or build wider organisational shareholders amid adverse external events in eastern and southernAustralia (which flooded resilience may inhibit our (or our third-party and make growth-generating, counter-cyclical the road to Olympic Dam and impacted inbound partners') ability to respond and recover in an investments, as well as to help us mitigate critical consumables). In addition to continuing effective and efficient manner. This could cause the impacts of unforeseeable adverse events. to build organisational resilience to such threats, material adverse impacts on our business, For example, we have developed new agile adaptation of our business to the potential physical such as reduced ability to access resources, and remote ways of working in response to the impacts of climate change continues to be at the markets and the operational or other inputs COVID-19 pandemic, which may also increase forefront of our thinking, with the Intergovernmental required by our business, reduced production or our resilience to other adverse events. Panel on Climate Change 6th Assessment Report sales of commodities, or increased regulation, noting the increased frequency and magnitude of which could adversely impact our financial - Adapting to climate change across our climatic events. performance, share price or reputation, and operations and value chain could enhance the safety, productivity and climate resilience of our For more information refer to: could lead to litigation (including class actions). • BHP Climate Change Report 2020 operated assets, position BHP as a supplier Examples of potential threats • BHP Climate Transition Action Plan 2021 of choice and provide competitive advantage • OFR 7.8 - Climate change - Geopolitical, global economic, regional or (for example, by fulfilling our commitment • OFR 7.12 - Security services local developments or adverse events, such to security of supply). Support for climate • bhp.com/sustainability/safety health/safety as social unrest, strikes, work stoppages, vulnerable communities and ecosystems may labour disruptions, social activism, terrorism, also improve our social value proposition. Low-carbon transition bomb threats, economic slowdown, acts Key management actions Risks associated with the transition to a low-of war or other significant disruptions in carbon economy. areas where we operate or have interests. - Implementing Group-wide controls to enhance For example, production at Escondida business resilience, including BHP's mandatory Why is this important to BHP? in FY2022 was impacted by public road minimum performance requirements for Transition risks arise from policy, regulatory, blockades associated with social unrest. security, crisis and emergency management legal, technological, market and other societal - Natural events, including earthquakes, and business continuity plans, and seeking to responses to the challenges posed by climate tsunamis, hurricanes, cyclones, fires, solar maintain an investment grade credit rating. - Monitoring our current state of readiness change and the transition to a low-carbon flares and pandemics. For example, continued economy. As a world-leading resources COVID-19 related absences contributed to a fall (preparedness, redundancy and resilience), company, BHP is exposed to a range of in production volumes in the March 2022 quarter including through scenario analysis and transition risks that could affect the execution for copper, iron ore, nickel and energy coal. business resilience exercises, supporting of our strategy or our operational efficiency, - Potential physical impacts of climate change, organisational capability in our operations, asset values and growth options, resulting such as acute risks that are event-driven functions and senior management to effectively in a material adverse impact on our financial (including increased frequency and severity and efficiently respond to and recover from performance, share price or reputation, including of extreme weather events) and chronic risks adverse events should they materialise. litigation. The complex and pervasive nature resulting from longer-term changes in climate - Monitoring the external environment, including of climate change means transition risks are patterns. Hazards and impacts may include political and economic factors through signal interconnected with and may amplify our changes in precipitation patterns, water monitoring, our geopolitical monitoring and other risk factors. Additionally, the inherent shortages, rising sea levels, increased storm public policy frameworks and our enterprise- uncertainty of potential societal responses to intensity, prolonged extreme temperatures level watch list of emerging themes, to climate change may create a systemic risk to the and increased drought, fire and tidal flooding. support early identification of policy changes global economy. - Failure by suppliers, contractors or joint or adverse events for which we may need to venture partners to perform existing contracts increase preparedness. or obligations (including due to insolvency), - Identifying security threats that could directly such as construction of large projects or supply or indirectly impact our operations and people of key inputs to our business (for example, in countries of interest to BHP. consumables for our mining equipment). - Implementing our Adaptation Strategy with respect to the physical risks of climate change, 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. BHP Appendix 4E 2022 67

9 How we manage risk continued Examples of potential threats - Our potash fertiliser options can promote Adopting technologies and more efficient and profitable agriculture maintaining digital security - Introduction or improvement of low-carbon and alleviate the increased competition for technologies or changes in customer Risks associated with adopting and arable land. preference for products that support the implementing new technologies, and maintaining transition to a low-carbon economy may - Increased collaboration with customers, the effectiveness of our existing digital decrease demand for some of our products suppliers and original equipment landscape (including cyber defences) across (which may be abrupt or unanticipated), manufacturers, such as BHP's partnerships our value chain. increase our costs or decrease the availability with HBIS Group, China Baowu, JFE, POSCO of key inputs to production. For example: and Tata Steel to explore technologies to Why is this important to BHP? reduce GHG emissions across the steel Our business and operational processes across - 'Green steel' technologies may reduce value chain, can provide opportunities for the demand for our metallurgical coal or our value chain are increasingly dependent development of new products and markets. on the effective application and adoption of iron ore. Key management actions technology, which we use as a lever to deliver - Increased scrap-based steel production on our current and future operational, financial may reduce demand for our metallurgical - Establishing public positions on, and and social objectives. This exposes BHP to coal and iron ore by limiting production that mandatory minimum performance risks originating from adopting or implementing is required globally. requirements for managing, climate change new technologies, or failing to take appropriate - New battery technologies that use less threats and opportunities, which are set out in action to position BHP for the digital future, nickel could enter the market and reduce our Climate Change Report 2020, our Climate which may impact the capabilities we require, demand for our nickel products. Transition Action Plan 2021 and the Our the effectiveness and efficiency of our operations Requirements for Environment and Climate and our ability to compete effectively. We may - Failure to address investor concerns on the Change standard. potential impact of climate change on and also fail to maintain the effectiveness of our - Using climate-related scenarios (including existing and future digital landscape, including from BHP's portfolio and operations may our Paris-aligned 1.5°C scenario), themes cyber defences, exposing us to technology result in reduced investor confidence. and signposts (such as monitoring policy, availability, reliability and cybersecurity risks. - Social concerns around climate change may regulatory, legal, technological, market and result in investors divesting our securities These could lead to operational events, other societal developments) to evaluate or pressure on financial institutions not to commercial disruption (such as an inability the resilience of our portfolio and inform provide financing for our fossil fuel assets, to process or ship our products), corruption our strategy. which could limit our ability to access capital or loss of system data, misappropriation or - Considering transition risks (including carbon loss of funds, unintended loss or disclosure markets and potentially result in reduced prices) when making capital expenditure of commercial or personal information, access to financing or increased financing decisions or allocating capital through our enforcement action or litigation. An inability costs, or otherwise adversely impact our Capital Allocation Framework, supporting to adequately maintain existing technology ability to optimise our portfolio. the prioritisation of capital and investment or implement critical new technology, or any - Perceived or actual misalignment of approval processes. BHP's climate actions (goals, targets and sustained disruption to our existing technology - Seeking to mitigate our exposure to risks may also adversely affect our licence to performance) with societal and investor arising from policy and regulation in our operate, reputation, results of operations expectations, or a failure to deliver our operating jurisdictions and markets by and financial performance. climate actions, may result in damage to our reducing our operational GHG emissions and reputation, climate-related litigation (including Examples of potential threats taking a product stewardship approach to class actions) or give rise to other adverse GHG emissions in our value chain. - Failure to invest in appropriate technologies, or regulatory, legal or market responses. - Advocating for the introduction of an effective, to keep pace with advancements in technology, - Sub-optimal selection, implementation or long-term policy framework that can deliver a that support the pursuit of our objectives may effectiveness of technology that is intended to measured transition to a low-carbon economy. adversely impact the effectiveness or efficiency contribute towards the delivery of our climate of our business and erode our competitive targets, goals and strategies, or unavailability FY2022 insights advantage. For example, a failure to implement of that technology (including due to a failure of Our exposure to transition risks decreased appropriate technologies that support our external equipment manufacturers to deliver in FY2022 due to portfolio changes involving assets to produce higher-grade commodities on schedule or competition for limited supply) the merger of our Petroleum business with or less waste from existing resources could could delay or increase costs in achieving our Woodside and divestment of our interests in limit our ability to sell our commodities or plans for operational decarbonisation. BMC and Cerrejón. However, societal pressure reduce costs. - Changes in laws, regulations, policies, for change continued to increase with many - Failing to identify, access and secure obligations, government actions, and our governments and organisations making necessary infrastructure and key inputs ability to anticipate and respond to such commitments to achieve GHG emissions (including electricity, internet bandwidth, data, changes, including GHG emission targets, targets within specified timeframes, including software, licences or other rights in intellectual restrictive licencing, carbon taxes, carbon commitments at the United Nations Climate property, hardware and talent) to support offset regulations, border adjustments or the Change Conference (COP 26) in November new technology innovations and advanced addition or removal of subsidies, may give 2021. Investor and other stakeholder interest technologies may adversely affect our ability rise to adverse regulatory, legal or market in understanding how climate change might to adopt, operate or retain access to those responses. For example, the implementation impact our strategy and portfolio continued to technologies. This includes artificial intelligence of regulations intended to reduce GHG grow in FY2022, and stakeholder expectations and machine learning, process automation, emissions in the steel industry in China could of BHP regarding disclosure of climate-related robotics, data analytics, cloud computing, adversely impact demand for our metallurgical information have increased accordingly. smart devices and remote working solutions. coal and/or iron ore. For more information refer to: For example, adopting new technology to Examples of potential opportunities • BHP Climate Change Report 2020 reduce GHG emissions through the use of • BHP Climate Transition Action alternative energy sources may require new - Our copper, nickel, iron ore and metallurgical Plan 2021 infrastructure, while effective implementation coal provide essential building blocks for • OFR 3 - Positioning for the future • OFR 7.8 - Climate change of new digital technologies may be heavily renewable power generation and electric • bhp.com/sustainability/climate change dependent on access to relevant data. vehicles, and can play an important part in the transition to a low-carbon economy. - Failure or outage of our information or operational technology systems. 68 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary - Cyber events or attacks on our information or FY2022 insights Examples of potential threats operational technology systems, including on As we continued to leverage technology - Failing to prevent breaches of international third-party partners and suppliers (such as our and enable digital transformation in FY2022, standards, laws, regulations or other legal, cloud service providers). For example, a cyber our exposure to associated risks increased. regulatory, ethical, environmental, governance attack could result in a failure of business-In particular, a continued increase in the or compliance obligations, such as external critical technology systems at one or more frequency and sophistication of cyber attacks misstatements, inaccurate financial or of our assets, which may reduce operational against companies, as well as on supply chains operational reporting or a breach of our productivity and/or adversely impact safety. and critical infrastructure (for example, cyber continuous disclosure obligations. Examples of potential opportunities attacks affecting South Africa Transfer Port - Corruption (for example, due to the acquisition Terminals and the Toronto Transit Commission) of early-stage options in non-OECD - Applying digital solutions across our highlighted the importance of our ongoing focus countries), market conduct or anti-competitive operations and value chain may unlock to strengthen management of cybersecurity behaviour, including in relation to our joint greater productivity and safety performance. risk across the Group. We continued to venture operations. For example, using predictive analytics to adopt digital technologies where appropriate, enable operations to identify asset condition - Failing to comply with trade or financial including through the use of greater automation and efficiencies may improve safety, sanctions (which are complex and subject at our operations. production and equipment availability, and to rapid change and may potentially result For more information refer to OFR 2.2. in conflicting obligations), health, safety reduce maintenance and other costs. - Technology solutions to reduce GHG and environmental laws and regulations, emissions may support BHP, our suppliers native title and other land right or tax or Ethical misconduct royalty obligations. and customers in achieving climate action targets. For example, BHP has become a Risks associated with actual or alleged - Failing to protect our people from harm founding partner of Komatsu's GHG Alliance deviation from societal or business expectations (including to mental and physical health) due in the ongoing development of zero GHG of ethical behaviour (including breaches of to misconduct that takes place in connection emissions haul trucks. laws or regulations) and wider or cumulative with their work, such as discrimination or - Developing and applying artificial intelligence organisational cultural failings, resulting in sexual harassment. in mine planning, remote operation and significant reputational impacts. Examples of potential advanced robotic technologies may identify Why is this important to BHP? opportunities or provide access to previously unknown or inaccessible deposits and development of Actual or alleged conduct of BHP or our people - Our capability to manage ethical misconduct end-to-end autonomous mining systems. or third-party partners that deviates from the risks may expand portfolio growth options by standard of ethical behaviour expected of us providing greater assurance that we can operate - Using digital simulations and predictive trend could result in reputational damage or a breach of legally and ethically in high-risk jurisdictions. modelling may enable us to optimise the law or regulations. Such conduct includes fraud, - Managing ethical misconduct risks in line deployment of new technologies, such as corruption, anti-competitive behaviour, money with societal and stakeholder expectations automation and electrification, support early laundering, breaching trade or financial sanctions, may distinguish BHP from competitors and identification of process variances and faults, market manipulation, privacy breaches, ethical enhance our ability to raise capital, attract and support the marketing of our products misconduct and wider organisational cultural and retain talent, engage with governments to customers. failings. A failure to act ethically or legally may and communities in new jurisdictions, obtain Key management actions result in negative publicity, investigations, public permits, partner with external organisations inquiries, regulatory enforcement action, litigation or suppliers, or market our products - Our assets, functions and projects are or other civil or criminal proceedings, or increased to customers. responsible for managing localised or project-regulation. It could also threaten the validity of specific exposure to technology and cyber risks, - Playing a leading role in the management our tenements or permits, or adversely impact including risks associated with business- critical of ethical misconduct risks, such as sexual our reputation, results of operations, financial technology systems. Enterprise-level risks that harassment risks, may help BHP to increase performance or share price. Impacts may be are specific to technology, such as those that ethical and behavioural standards across the amplified if our senior leaders fail to uphold BHP's pose a greater threat to our wider business and resources industry. values or address actual or alleged misconduct strategic opportunities, are generally managed in a way that is consistent with societal and by our global Technology team and other stakeholder expectations. Our workplace culture relevant stakeholders to support delivery of our may also be eroded, adversely affecting our technology strategy. - We collaborate with industry and research ability to attract and retain talent. Risks and partners to develop technological solutions. impacts are also heightened by the complex and continuously evolving legal and regulatory - Our Technology Risk Committee oversees frameworks that apply to the jurisdictions where the management and improvement of we operate and potentially conflicting obligations technology risks and controls, and supports the under different national laws. 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 resilience programs, an enterprise security framework and cybersecurity standards, cybersecurity risk and control guidance, security awareness programs and training to build capability, security assessments and continuous monitoring, restricted physical access to hardware and crisis management plans. BHP Appendix 4E 2022 69

Key management actions FY2022 insights Key financial drivers results of Copper's - Setting the 'tone from the top' through Our Our exposure to ethical misconduct risks Charter, which is central to our business and increased in FY2022, including due to continued Price overview describes our purpose, values and how we exploration of, and investment in, potential measure success. growth options in high-risk or less economically Our average realised sales price for FY2022 developed jurisdictions. Societal expectations was US$4.16 per pound (FY2021: US$3.81 per - Implementing internal policies, standards, regarding respectful behaviours in the workplace pound). Copper prices spent much of FY2022 systems and processes for governance and continued to grow. We continued to implement trading around historic highs, buoyed by compliance to support an appropriate culture and improve controls designed to create a safe robust demand, low visible inventories, delays and prioritise respectful behaviours at BHP, and respectful workplace and prevent sexual to new copper projects and Russian supply including: harassment from occurring. The ongoing conflict risks. However, prices fell in two stages in the -Our Code of Conduct and BHP's mandatory in Ukraine triggered the introduction of trade June quarter. The first decline was due to the minimum performance requirements for and financial sanctions by the United States, demand impact of China's COVID-19 lockdowns. business conduct, market disclosure and United Kingdom, European Union and other The second was due to recession speculation in other matters jurisdictions against Russia, underscoring advanced economies. We believe mine supply - training on Our Code of Conduct and in the importance of continued management of and scrap collection will grow in the coming relation to anti-corruption, market conduct associated risks across our global operations. few years, covering near-term demand growth. and competition Longer term, traditional end-use demand is For more information refer to: • Our Charter and Our Code of Conduct expected to be solid, while broad exposure to the - ring fencing protocols to separate potentially • OFR 7.5 - Sexual harassment electrification megatrend offers attractive upside. competing businesses within BHP OFR 7.7 - Ethics and business conduct - governance and compliance processes, • Corporate Governance Statement Production including classification of sensitive Total Copper production for FY2022 decreased transactions, as well as accounting, 10 Performance by 4 per cent to 1,574 kt. procurement and other internal controls, and by commodity tailored monitoring of control effectiveness Escondida copper production decreased by 6 per cent to 1,004 kt primarily due to concentrator - oversight and engagement with high-risk Management believes the following information feed grade decline of 4 per cent, public road areas by our Ethics and Investigations, presented by commodity provides a meaningful blockades affecting access to site for both Compliance and Internal Audit teams, and indication of the underlying financial and workers and supplies, and the impact of a the Disclosure Committee operating performance of the assets, including reduced operational workforce from COVID-19. equity accounted investments, of each - review and endorsement by our Compliance Despite these challenges, Escondida achieved reportable segment. team of the highest-risk transactions, such record material mined for FY2022 and near as gifts and hospitality, engagement of Information relating to assets that are accounted record concentrator throughput of 367 ktpd. third parties, community donations and for as equity accounted investments is shown sponsorships above defined thresholds Pampa Norte copper production increased by to reflect BHP's share, unless otherwise noted, 29 per cent to 281 kt reflecting the ramp up of - automated counterparty and transaction to provide insight into the drivers of these assets. the Spence Growth Option (SGO), partially offset screening against lists of entities subject to For more information as to the by the impact of lower cathode production as a trade sanctions statutory determination of our reportable segments, refer to Financial result of a 14 per cent decline in Pampa Norte - our EthicsPoint anonymous reporting Statements note 1 'Segment reporting'. stacking feed grade. service, supported by an ethics and investigations framework and central Olympic Dam copper production decreased by Unit costs is one of our non-IFRS financial investigations team 33 per cent to 138 kt as a result of the major measures used to monitor the performance smelter maintenance campaign (SCM21) - our 'Together we can stop sexual of our individual assets and is included in the completed in January 2022 which was delayed harassment' campaign, launched across analysis of each reportable segment. due to COVID-19 impacts on the availability of all our offices and sites in Australia, and For the definition and method of the workforce. Near record production in the 'Stop for Safety' sessions held globally calculation of our non-IFRS financial measures, including Underlying June 2022 quarter followed the successful ramp by our leaders to set expectations around EBITDA and Unit costs, refer to OFR 11. up of the smelter to full capacity in April 2022. racism, sexual harassment and other Average copper grade of 2.14 per cent was disrespectful behaviours 10.1 Copper achieved in FY2022 as the majority of material - Continuing to enforce Our Code of Conduct mined is from the Southern Mine Area. via appropriate investigations and responses Detailed below is financial and operating Antamina copper production increased by 4 per including disciplinary action, in addition to information for our Copper assets comparing cent to 150 kt, reflecting higher copper head deployment of appropriate safety controls to FY2022 to FY2021. grades. Zinc production decreased by 15 per prevent harm. Year ended 30 June cent to 123 kt reflecting lower zinc head grades. - Requiring anti-corruption and human rights US$M 2022 2021 risks to be considered as part of our new Revenue 16,849 15,726 Financial results country entry approval process. Underlying EBITDA 8,565 8,489 Copper revenue increased by US$1.1 billion Net operating assets 27,420 26,928 to US$16.8 billion in FY2022 due to higher Capital expenditure 2,528 2,180 average realised Copper prices offset by Total copper production (kt) 1,574 1,636 lower production. Average realised prices Underlying EBITDA for Copper increased Copper (US$/lb) 4.16 3.81 by US$76 million to US$8.6 billion. Price impacts, net of price-linked costs, increased Underlying EBITDA by US$1.0 billion. Lower volumes decreased Underlying EBITDA by US$652 million. 70 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Controllable cash costs increased by Outlook Key drivers of Iron Ore's US$107 million, due to higher costs at Escondida financial results Total Copper production of between 1,635 in line with record material mined and workforce and 1,825 kt is expected in FY2023. Price overview bonus payments for renewal of a collective Escondida production of between 1,080 and bargaining agreement, and also at Spence from Iron Ore's average realised sales price for 1,180 kt is expected in FY2023, reflecting an a ramp up of concentrate volumes. In addition, FY2022 was US$113.10 per wet metric tonne expected increase in concentrator feed grade controllable costs increased at both Escondida (wmt) (FY2021: US$130.56 per wmt). The iron compared to FY2022. Production at Pampa and Pampa Norte due to costs associated with ore market was firm for much of the second Norte is expected to be between 240 and the implementation of COVID-19 preventative half of FY2022, supported by resilient demand, 290 kt in FY2023, reflecting a forecast decline measures (reported as an exceptional item in the constrained supply of competing scrap in China, in stacking feed grade at Pampa Norte, the prior year). This was partially offset by favourable and lower than expected seaborne supply commencement of plant design modifications inventory movements at Escondida and Spence from some low cost and swing suppliers. As a at SGO and the continued transition towards as well as lower costs at Olympic Dam reflecting result, Chinese port stocks declined steadily for the planned closure of Cerro Colorado at the favourable inventory movements due to reduced much of the period. Near the close of the year, end of CY2023. At Olympic Dam, production operational activity during the major smelter weakening sentiment within the steel value is expected to be between 195 and 215 kt maintenance campaign. In the prior year, costs chain fed back into lower prices for iron ore. in FY2023. benefited from a one-off gain from cancelled Looking ahead, the key near-term uncertainties power contracts at Escondida and Spence. Antamina Copper production is expected are the pace of steel end-use sector recovery between 120 and 140 kt in FY2023. in China, how the Chinese authorities will Inflation and higher input prices for diesel, Escondida unit costs in FY2023 are expected to administer steel production cuts in the remainder acid and consumables negatively impacted be between US$1.25 and US$1.45 per pound of the CY2022, and the performance of Underlying EBITDA by US$408 million and (based on an exchange rate of USD/CLP 830). seaborne supply. In the medium term, China's US$295 million respectively, partially offset by This largely reflects inflationary pressures, demand for iron ore is expected to be lower than favourable foreign exchange rate movements including expected further price increases for it is today as crude steel production plateaus, of US$497 million. Equity accounted investment consumables, and planned higher costs to and the scrap-to-steel ratio rises. In the long profits attributable to Antamina increased by study the potential to increase optionality at term, prices are expected to be determined by US$97 million due to higher realised prices for Escondida longer term. In the medium term, unit high-cost production, on a value-in-use adjusted both copper and zinc. cost guidance for Escondida has been revised basis, from Australia or Brazil. It is imperative Escondida unit costs increased by 20 per cent that we continue to compete on both quality and to less than US$1.15 per pound from less than to US$1.20 per pound at realised exchange operational effectiveness. US$1.10 per pound (based on an exchange rate rates. This reflected strong cost discipline of USD/CLP 830), reflecting inflation, the impact Production despite higher prices for consumables, of higher power consumption and increased workforce bonus payments following renewal Total Iron Ore production was in line with the water costs. of a new collective bargaining agreement prior period. and a one-off gain recorded in the prior year Medium-term production guidance for Escondida of 1.2 Mtpa on average over the next five years WAIO production of 249 Mt (283 Mt on a due to cancelled power contracts as part of remains unchanged. 100 per cent basis) was in line with the prior Escondida's transition to renewable electricity. period, reflecting continued strong supply chain Costs associated with a planned material 10.2 Iron Ore performance and favourable weather compared to mined increase of approximately 20 per cent, the prior period, offset by the impacts of temporary incremental costs associated with COVID-19 Detailed below is financial and operating labour constraints relating to COVID-19, planned preventative measures and lower by-product information for our Iron Ore assets comparing major maintenance including the Jimblebar train credits also contributed to higher unit costs. FY2022 to FY2021. load out and car dumper one. Our preventative These increases were partially offset by lower maintenance programs continue to underpin the power prices achieved by Escondida's transition Year ended 30 June US$M 2022 2021 strength of the WAIO supply chain, delivering towards 100 per cent renewable electricity. increased car dumper, reclaimer and ship loader Revenue 30,767 34,475 The calculation of Escondida unit costs is set out availability year on year and enabling record sales Underlying EBITDA 21,707 26,278 in the table below. volumes of 284 Mt (100 per cent basis). Net operating assets 16,823 18,663 Escondida unit costs Capital expenditure 1,848 2,188 South Flank ramp up to full production capacity (US$M) FY2022 FY2021 Total iron ore production (Mt) 253 254 of 80 Mtpa (100 per cent basis) is ahead of Revenue 9,500 9,470 Average realised prices schedule with an average rate of 67Mtpa Underlying EBITDA 6,198 6,483 Iron ore (US$/wmt, FOB) 113.10 130.56 achieved in the June 2022 quarter contributing Gross costs 3,302 2,987 to record production from the Mining Area C hub Less: by-product credits 430 478 and record lump sales. Less: freight 230 162 Samarco production of 4.1 Mt (BHP share) Net costs 2,642 2,347 reflected the ramp up of production to capacity, Sales (kt) 1,001 1,066 following the recommencement of iron ore Sales (Mlb) 2,206 2,350 pellet production at one concentrator in Cost per pound (US$)1,2,3 1.20 1.00 December 2020. 1 FY2022 based on average exchange rates of USD/ CLP 811. Financial results 2 FY2022 includes COVID-19 related costs of US$0.02 per pound, which was reported as an Total Iron Ore revenue decreased by exceptional item in FY2021 (FY2021: US$0.03 US$3.7 billion to US$30.8 billion in FY2022 per pound). reflecting lower average realised prices. 3 FY2021 includes a one off gain from the optimised outcome from renegotiation of cancelled power contracts of US$0.04 per pound. BHP Appendix 4E 2022 71

10 Performance by commodity continued Underlying EBITDA for Iron Ore decreased by Unit costs in FY2023 are expected to be Energy coal US$4.6 billion to US$21.7 billion primarily due to between US$18 and US$19 per tonne (based Our average realised sales price for FY2022 lower average realised prices, net of price linked on an exchange rate of AUD/USD 0.72). was US$216.78 per tonne (FY2021: US$58.42 costs, of US$4.0 billion and higher operating In the medium term, unit costs have been per tonne). The Newcastle 6,000 kcal/kg price cash costs of US$431 million. The higher cash revised to less than US$17 per tonne reflecting reached a record high in May 2022 due to costs are primarily a result of South Flank updated guidance exchange rates (based very strong demand and constrained supply. operational ramp up spend, increased rail on an exchange rate of AUD/USD 0.72) and Trade flow redirection from Asia to Europe due maintenance, incremental costs associated with inflationary pressures, and our plan to creep to the Russian invasion of Ukraine, gas-to- COVID-19 (mainly higher demurrage costs due production to greater than 300 Mtpa. coal switching as LNG prices spiked upwards, to delays, reported as an exceptional item in the and hot weather in major importing regions, prior year) and inventory movements to support 10.3 Coal all contributed to the swift run-up in pricing. the supply chain. Other items such as inflation Longer term, total primary energy derived Detailed below is financial and operating and higher fuel and energy costs negatively from coal (power and non-power) is expected information for our Coal assets comparing impacted Underlying EBITDA by US$392 million. to be challenged, particularly under deep FY2022 to FY2021. This was partially offset by favourable foreign decarbonisation scenarios, where demand is exchange rate impacts of US$332 million. Year ended 30 June expected to decline in absolute terms. US$M 2022 2021 WAIO unit costs increased by 13 per cent to Production Revenue 15,549 5,154 US$16.81 per tonne at realised exchange Underlying EBITDA 9,504 288 Metallurgical coal rates. The increase in unit cost was mainly Net operating assets 7,650 7,512 due to higher diesel prices, costs associated Metallurgical coal production consisted of BMA with the ramp up of South Flank, higher rail Capital expenditure 621 579 production and BMC production up to 3 May track maintenance costs, and costs associated Total metallurgical coal 2022 when the divestment of our interest in with COVID-19 of approximately US$0.50 per production (Mt) 37 41 BMC completed. tonne, which has been taken to unit costs in this Total energy coal production (Mt) 18 19 Average realised prices BMA production decreased by 9 per cent period but reported as an exceptional item in Metallurgical coal (US$/t) 347.10 106.64 to 29 Mt (58 Mt on a 100 per cent basis). the prior period. The cost increase was partially Hard coking coal (HCC)(US$/t) 366.82 112.72 Record production at the Broadmeadow mine offset by the impact of favourable exchange Weak coking coal (WCC)(US$/t) 296.51 89.62 was more than offset by significant wet weather rate movements. Thermal coal (US$/t) 216.78 58.42 impacts across most BMA operations and The calculation of WAIO unit costs is set out in labour constraints, including COVID-19 related the table below. absenteeism which impacted stripping and Key drivers of Coal's mine productivity. WAIO unit costs financial results (US$M) FY2022 FY2021 BMC production decreased by 9 per cent to 8 Mt Revenue 30,632 34,337 Price overview due to the divestment of our 80 per cent interest Underlying EBITDA 21,788 26,270 in BMC to Stanmore Resources Limited on Metallurgical coal Gross costs 8,844 8,067 3 May 2022. Less: freight1 2,497 1,755 Our average realised sales price for FY2022 was Less: royalties 2,134 2,577 US$366.82 per tonne for hard coking coal (HCC) Energy coal Net costs 4,213 3,735 (FY2021: US$112.72 per tonne) and US$296.51 Energy coal production consisted of NSWEC Sales (kt, equity share) 250,688 252,052 per tonne for weak coking coal (WCC) (FY2021: production and Cerrejón production up to Cost per tonne (US$)2,3 16.81 14.82 US$89.62 per tonne). Metallurgical coal 11 January 2022 when the divestment of our prices surged to record highs in the second interest in Cerrejón completed. 1 Year on year increase of freight costs driven by half of FY2022 on firm rest of world demand, higher diesel prices and vessel demand increases NSWEC production decreased by 4 per cent from global supply chain pressures relating to uncertainty over Russia and multi-regional, multi- to 14 Mt, reflecting lower volumes due to an COVID-19. causal supply disruptions. The deterioration increased proportion of washed coal to capitalise 2 FY2022 based on an average realised exchange in rest of world steelmaking profitability late in rate of AUD/USD 0.73. the June quarter saw prices descend from their on higher margins for higher-quality coals, 3 FY2022 includes COVID-19 related costs of COVID-19 related labour constraints which US$0.50 per tonne (including US$0.22 per tonne extreme highs. The industry faces a difficult impacted stripping performance and mine relating to operations and US$0.28 per tonne and uncertain period ahead. Natural trade flows relating to demurrage). FY2021 excluded COVID-19 are impaired, including uncertainty around productivity, and wet weather. Higher-quality related costs of US$0.51 per tonne (including coals made up almost 90 per cent of sales US$0.25 per tonne relating to operations and China's import policy and Russian coal supply. compared to approximately 60 per cent of sales US$0.26 per tonne relating to demurrage) that The regulatory environment has also become was reported as an exceptional item. In FY2021 less conducive to long-life capital investment. in the prior year. an additional US$0.12 per tonne relating to capital projects was also reported as an exceptional item. Long term, we believe that a wholesale shift Cerrejón production decreased by 15 per cent away from blast furnace steelmaking is still to 4 Mt due to the divestment of our interest on Outlook decades in the future. That assessment is based 11 January 2022. WAIO production for FY2023 is expected to on our bottom-up analysis of likely regional steel increase to between 246 and 256 Mt (278 and decarbonisation pathways, as discussed in our Financial results 290 Mt on a 100 per cent basis) reflecting the Climate Transition Action Plan. Demand for Coal revenue increased by US$10.4 billion to tie-in of the port debottlenecking project (PDP1) seaborne Hard Coking Coals (HCC) is expected US$15.5 billion in FY2022 mainly due to higher and the continued ramp up of South Flank. to expand alongside the growth of the steel average realised prices. industry in HCC importing countries such Samarco production of between 3 and 4 Mt as India. Underlying EBITDA for Coal increased by (BHP share) is expected in FY2023. US$9.2 billion to US$9.5 billion. Price impacts, net of price-linked costs, increased Underlying EBITDA by US$8.1 billion combined with the higher contribution of BMC of US$1.4 billion, mainly due to higher realised prices, prior to the divestment of our 80 per cent interest. 72 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Lower volumes decreased Underlying EBITDA NSWEC unit costs in FY2023 are expected to be Financial results by US$341 million and other items such between US$76 and US$86 per tonne (based on Higher average realised sales prices resulted as inflation and fuel and energy costs also an exchange rate of AUD/USD 0.72) reflecting in revenue increasing by US$381 million to negatively impacted Underlying EBITDA by inflationary pressures, higher port toll charges at US$1.9 billion in FY2022. US$279 million. This was partially offset by the NCIG coal export terminal and a continued favourable foreign exchange rate impacts of focus on higher-quality coals, offset by mine plan Nickel West's Underlying EBITDA increased from US$268 million. optimisation, productivity improvements and cost US$259 million in FY2021 to US$420 million reduction initiatives. in FY2022, reflecting higher average realised BMA unit costs1 increased by 8 per cent to prices and favourable exchange rate movements. US$89 per tonne primarily due to lower volumes 10.4 Other assets This was partially offset by lower volumes mainly following significant wet weather impacts across due to the significant impacts of COVID-19 most BMA operations and labour constraints, Detailed below is an analysis of Other assets' related labour absenteeism and workforce including COVID-19 related absenteeism which financial and operating performance comparing shortages, unplanned downtime at the oxygen impacted stripping and mine productivity, and FY2022 to FY2021. plant leading to a 15-day smelter outage in the higher diesel and electricity prices. This was Nickel West June 2022 quarter, and the adverse impacts partially offset by cost reduction initiatives and of the stronger nickel price on third-party favourable exchange rate movements. Key drivers of Nickel West's concentrate purchase costs. NSWEC unit costs increased by 10 per cent to financial results US$71 per tonne reflecting lower volumes due Outlook Price overview to an increased proportion of washed coal to Nickel West production for FY2023 is expected capitalise on higher margins for higher-quality Our average realised sales price for FY2022 to be between 80 and 90 kt, weighted to the coals and COVID-19 related labour constraints was US$23,275 per tonne (FY2021: US$16,250 second half of the year due to planned smelter which impacted stripping performance and mine per tonne). The nickel market was in deficit maintenance in the first half. productivity combined with higher diesel and across the 2021 calendar year and early 2022. electricity prices. This was partially offset by cost Visible inventories were drawn down steeply, Potash reduction initiatives and favourable exchange putting upward pressure on prices. These tight Potash recorded an Underlying EBITDA loss rate movements. fundamentals emerged due to a combination of US$147 million in FY2022, and a loss of of strong demand from conventional end-use US$167 million in FY2021. Outlook sectors, rapid growth in the electric vehicle value BMA coal production for FY2023 is expected to chain, uncertainty over the actual and potential 10.5 Impact of changes be between 29 and 32 Mt (58 and 64 Mt on a loss of supply from Russia, and constrained to commodity prices 100 per cent basis). Class-1 supply in the 2021 calendar year. NSWEC production for FY2023 is expected to These forces culminated in a dramatic spike in The prices we obtain for our products are a key be between 13 and 15 Mt reflecting a continued LME prices in March 2022. Prices have since driver of value for BHP. Fluctuations in these focus on higher-quality coals. fallen back to levels before the Russian invasion commodity prices affect our results, including of Ukraine due to recession fears, alongside cash flows and asset values. The estimated BMA unit costs in FY2023 are expected to be other exchange-traded metals. Longer term, impact of changes in commodity prices in FY2022 between US$90 and US$100 per tonne (based we believe nickel will be a core beneficiary of on our key financial measures is set out below. on an exchange rate of AUD/USD 0.72) as a the electrification mega-trend and that nickel sulphides will be particularly attractive. Impact on profit Impact on result of continued higher diesel and electricity after taxation from Underlying prices. We remain focused on cost reduction Production Continuing operations EBITDA and productivity initiatives, however given the US$M (US$M) (US$M) ongoing uncertainty regarding restrictions on Nickel West production in FY2022 decreased by US¢1/lb on copper price 22 31 coal imports into China and the announcement 14 per cent to 77 kt due to the significant impacts US$1/t on iron ore price 160 228 of the change to the Queensland royalty regime, of COVID-19 related labour absenteeism and US$1/t on metallurgical coal price 16 23 we are unable to provide medium-term volume workforce shortages, and unplanned downtime US$1/t on energy coal price 9 13 and unit cost guidance. We are seeking to at the oxygen plant leading to a 15-day smelter US¢1/lb on nickel price 1 1 preserve low-cost incremental growth optionality outage in the June 2022 quarter. in our portfolio with a focus on higher-quality coking coals. The calculation of BMA and NSWEC unit costs is set out in the table below: BMA unit costs1 NSWEC unit costs US$M FY2022 FY2021 FY2022 FY2021 Revenue 10,254 3,537 3,034 839 Underlying EBITDA 6,335 567 1,807 (169) Gross costs 3,919 2,970 1,227 1,008 Less: freight 50 54 - -Less: royalties 1,282 275 227 66 Net costs 2,587 2,641 1,000 942 Sales (kt, equity share) 29,049 31,958 14,124 14,626 Cost per tonne (US$)2,3 89.06 82.64 70.80 64.41 1 Queensland Coal unit costs no longer reported as the divestment of BHP's 80 per cent interest in BMC to Stanmore Resources Limited was completed on 3 May 2022. 2 FY2022 based on an average realised exchange rate of AUD/USD 0.73. 3 FY2022 includes COVID-19 related costs of US$0.24 per tonne and US$0.57 per tonne, which was reported as an exceptional item in FY2021 (FY2021: US$0.98 and US$0.40 per tonne) relating to BMA and NSWEC respectively. BHP Appendix 4E 2022 73

11 Non-IFRS financial information We use various non-IFRS financial information Comparative periods have been adjusted for the to reflect our underlying financial performance. effects of applying IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations' and Non-IFRS financial information is not defined discloses them on the same basis as the current or specified under the requirements of IFRS, period figures. but is derived from the Group's Consolidated Financial Statements prepared in accordance The following tables provide reconciliations with IFRS. The non-IFRS financial information between non-IFRS financial information and their and the below reconciliations included in nearest respective IFRS measure. this document are unaudited. The non-IFRS financial information presented is consistent Exceptional items with how management review financial To improve the comparability of underlying performance of the Group with the Board and financial performance between reporting periods, the investment community. some of our non-IFRS financial information adjusts the relevant IFRS measures for Sections 1.1 and 1.2 outline why we believe exceptional items. non-IFRS financial information is useful and the calculation methodology. We believe non-IFRS For more information on exceptional items refer to Financial Statements financial information provides useful information, note 3 'Exceptional items'. however should not be considered as an indication of, or as a substitute for, statutory Exceptional items are those gains or losses measures as an indicator of actual operating where their nature, including the expected performance (such as profit or net operating frequency of the events giving rise to them, cash flow) or any other measure of financial and impact is considered material to the performance or position presented in accordance Group's Consolidated Financial Statements. with IFRS, or as a measure of a company's The exceptional items included within the profitability, liquidity or financial position. Group's profit from Continuing and Discontinued operations for the financial years are detailed below. 2021 2020 2022 US$M US$M Year ended 30 June US$M Restated Restated Continuing operations Revenue - - - Other income 840 34 489 Expenses excluding net finance costs, depreciation, amortisation and impairments (494) (545) (1,019) Depreciation and amortisation - - - Net impairments - (2,371) (409) Loss from equity accounted investments, related impairments and expenses (676) (1,456) (508) Profit/(loss) from operations (330) (4,338) (1,447) Financial expenses (290) (85) (93) Financial income - - - Net finance costs (290) (85) (93) Profit/(loss) before taxation (620) (4,423) (1,540) Income tax (expense)/benefit (454) (1,057) 239 Royalty-related taxation (net of income tax benefit) - - - Total taxation (expense)/benefit (454) (1,057) 239 Profit/(loss) after taxation from Continuing operations (1,074) (5,480) (1,301) Discontinued operations Profit/(loss) after taxation from Discontinued operations 8,159 (317) (4) Profit/(loss) after taxation from Continuing and Discontinued operations 7,085 (5,797) (1,305) Total exceptional items attributable to non-controlling interests - (24) (201) Total exceptional items attributable to BHP shareholders 7,085 (5,773) (1,104) Exceptional items attributable to BHP shareholders per share (US cents) 140.0 (114.2) (21.9) Weighted basic average number of shares (Million) 5,061 5,057 5,057 74 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Non-IFRS financial information derived from Consolidated Income Statement Underlying attributable profit 2022 2021 2020 Year ended 30 June US$M US$M US$M Profit after taxation from Continuing and Discontinued operations attributable to BHP shareholders 30,900 11,304 7,956 Total exceptional items attributable to BHP shareholders1 (7,085) 5,773 1,104 Underlying attributable profit 23,815 17,077 9,060 1 For more information refer to Financial Statements note 3 'Exceptional items'. Underlying basic earnings per share 2022 2021 2020 Year ended 30 June US cents US cents US cents Basic earnings per ordinary share 610.6 223.5 157.3 Exceptional items attributable to BHP shareholders per share1 (140.0) 114.2 21.9 Underlying basic earnings per ordinary share 470.6 337.7 179.2 1 For more information refer to Financial Statements note 3 'Exceptional items'. Underlying attributable profit - Continuing operations 2021 2020 2022 US$M US$M Year ended 30 June US$M Restated Restated Profit after taxation from Continuing and Discontinued operations attributable to BHP shareholders 30,900 11,304 7,956 (Profit)/loss after taxation from Discontinued operations attributable to members of BHP (10,655) 225 (108) Total exceptional items attributable to BHP shareholders1 (7,085) 5,773 1,104 Total exceptional items attributable to BHP shareholders for Discontinued operations2 8,159 (317) (4) Underlying attributable profit - Continuing operations 21,319 16,985 8,948 1 For more information refer to Financial Statements note 3 'Exceptional items'. 2 For more information refer to Financial Statements note 27 'Discontinued operations'. Underlying basic earnings per share - Continuing operations 2021 2020 2022 US$M US$M Year ended 30 June US$M Restated Restated Underlying attributable profit - Continuing operations 21,319 16,985 8,948 Weighted basic average number of shares (Million) 5,061 5,057 5,057 Underlying attributable earnings per ordinary share - Continuing operations (US cents) 421.2 335.9 176.9 Underlying EBITDA 2021 2020 2022 US$M US$M Year ended 30 June US$M Restated Restated Profit from operations 34,106 25,515 13,683 Exceptional items included in profit from operations1 330 4,338 1,447 Underlying EBIT 34,436 29,853 15,130 Depreciation and amortisation expense 5,683 5,084 4,667 Net impairments 515 2,507 482 Exceptional item included in Depreciation, amortisation and impairments1 - (2,371) (409) Underlying EBITDA 40,634 35,073 19,870 1 For more information refer to Financial Statements note 3 'Exceptional items'. Underlying EBITDA - Segment Group and unallocated Year ended 30 June 2022 items/ Total US$M Copper Iron Ore Coal eliminations2 Group Profit from operations 6,249 18,823 9,582 (548) 34,106 Exceptional items included in profit from operations1 81 648 (849) 450 330 Depreciation and amortisation expense 1,765 2,203 762 953 5,683 Net impairments 470 33 9 3 515 Underlying EBITDA 8,565 21,707 9,504 858 40,634 BHP Appendix 4E 2022 75

11 Non-IFRS financial information continued Group and Year ended 30 June 2021 unallocated US$M items/ Total Restated Copper Iron Ore Coal eliminations2 Group Profit from operations 6,665 22,975 (2,144) (1,981) 25,515 Exceptional items included in profit from operations1 144 1,319 1,567 1,308 4,338 Depreciation and amortisation expense 1,608 1,971 845 660 5,084 Net impairments 72 13 1,077 1,345 2,507 Exceptional item included in Depreciation, amortisation and impairments1 - - (1,057) (1,314) (2,371) Underlying EBITDA 8,489 26,278 288 18 35,073 Group and Year ended 30 June 2020 unallocated US$M items/ Total Restated Copper Iron Ore Coal eliminations2 Group Profit from operations 1,362 12,310 793 (782) 13,683 Exceptional items included in profit from operations1 1,228 614 18 (413) 1,447 Depreciation and amortisation expense 1,740 1,608 807 512 4,667 Net impairments 426 22 14 20 482 Exceptional item included in Depreciation, amortisation and impairments1 (409) - - - (409) Underlying EBITDA 4,347 14,554 1,632 (663) 19,870 1 For more information refer to Financial Statements note 3 'Exceptional items'. 2 Group and unallocated items includes functions, other unallocated operations, including Potash, Nickel West, legacy assets, and consolidation adjustments. Exceptional Exceptional items included items included in Depreciation, Year ended 30 June 2022 Profit from in profit from Depreciation and Net amortisation and Underlying US$M operations operations1 amortisation impairments impairments1 EBITDA Potash (149) - 2 - - (147) Nickel West 327 - 91 2 - 420 Corporate, legacy assets and eliminations (726) 450 860 1 - 585 Total (548) 450 953 3 - 858 Exceptional Exceptional items included Year ended 30 June 2021 items included in Depreciation, US$M Profit from in profit from Depreciation Net amortisation and Underlying Restated operations operations1 and amortisation impairments impairments1 EBITDA Potash (1,489) 1,320 2 1,314 (1,314) (167) Nickel West 146 3 79 31 - 259 Corporate, legacy assets and eliminations (638) (15) 579 - - (74) Total (1,981) 1,308 660 1,345 (1,314) 18 Exceptional Exceptional items included Year ended 30 June 2020 items included in Depreciation, US$M Profit from in profit from Depreciation Net amortisation and Underlying Restated operations operations1 and amortisation impairments impairments1 EBITDA Potash (130) - 3 - - (127) Nickel West (113) 5 68 3 - (37) Corporate, legacy assets and eliminations (539) (418) 441 17 - (499) Total (782) (413) 512 20 - (663) 1 For more information refer to Financial Statements note 3 'Exceptional items'. 76 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Underlying EBITDA margin Group and unallocated Year ended 30 June 2022 items/ Total US$M Copper Iron Ore Coal eliminations1 Group Revenue - Group production 13,946 30,748 15,549 1,860 62,103 Revenue - Third-party products 2,903 19 - 73 2,995 Revenue 16,849 30,767 15,549 1,933 65,098 Underlying EBITDA - Group production 8,529 21,707 9,504 858 40,598 Underlying EBITDA - Third-party products 36 - - - 36 Underlying EBITDA2 8,565 21,707 9,504 858 40,634 Segment contribution to the Group's Underlying EBITDA3 22% 54% 24% 100% Underlying EBITDA margin4 61% 71% 61% 65% Group and Year ended 30 June 2021 unallocated US$M items/ Total Restated Copper Iron Ore Coal eliminations1 Group Revenue - Group production 13,482 34,457 5,154 1,543 54,636 Revenue - Third-party products 2,244 18 - 23 2,285 Revenue 15,726 34,475 5,154 1,566 56,921 Underlying EBITDA - Group production 8,425 26,277 288 18 35,008 Underlying EBITDA - Third-party products 64 1 - - 65 Underlying EBITDA2 8,489 26,278 288 18 35,073 Segment contribution to the Group's Underlying EBITDA3 24% 75% 1% 100% Underlying EBITDA margin4 62% 76% 6% 64% Group and Year ended 30 June 2020 unallocated US$M items/ Total Restated Copper Iron Ore Coal eliminations1 Group Revenue - Group production 9,577 20,782 6,242 1,191 37,792 Revenue - Third-party products 1,089 15 - 28 1,132 Revenue 10,666 20,797 6,242 1,219 38,924 Underlying EBITDA - Group production 4,306 14,561 1,632 (663) 19,836 Underlying EBITDA - Third-party products 41 (7) - - 34 Underlying EBITDA2 4,347 14,554 1,632 (663) 19,870 Segment contribution to the Group's Underlying EBITDA3 21% 71% 8% 100% Underlying EBITDA margin4 45% 70% 26% 52% 1 Group and unallocated items includes functions, other unallocated operations, including Potash, Nickel West, legacy assets, and consolidation adjustments. Revenue not attributable to reportable segments comprises the sale of freight and fuel to third parties. Exploration and technology activities are recognised within relevant segments. 2 We differentiate sales of our production from sales of third-party products to better measure the operational profitability of our operations as a percentage of revenue. These tables show the breakdown between our production and third-party products, which is necessary for the calculation of the Underlying EBITDA margin and margin on third-party products. We engage in third-party trading for the following reasons: - Production variability and occasional shortfalls from our assets means that we sometimes source third-party materials to ensure a steady supply of product to our customers. - To optimise our supply chain outcomes, we may buy physical product from third parties. - To support the development of liquid markets, we will sometimes source third-party physical products and manage risk through both the physical and financial markets. 3 Percentage contribution to Group Underlying EBITDA, excluding Group and unallocated items. 4 Underlying EBITDA margin excludes third-party products. Effective tax rate 2021 2020 2022 Restated Restated Profit before Income Profit before Income Profit before Income taxation tax expense taxation tax expense taxation tax expense Year ended 30 June US$M US$M % US$M US$M % US$M US$M % Statutory effective tax rate 33,137 (10,737) 32.4 24,292 (10,616) 43.7 12,825 (4,197) 32.7 Adjusted for: Exchange rate movements - (233) - (33) - 41 Exceptional items1 620 454 4,423 1,057 1,540 (239) Adjusted effective tax rate 33,757 (10,516) 31.2 28,715 (9,592) 33.4 14,365 (4,395) 30.6 1 For more information refer to Financial Statements note 3 'Exceptional items'. BHP Appendix 4E 2022 77

11 Non-IFRS financial information continued Non-IFRS financial information derived from Consolidated Cash Flow Statement Capital and exploration expenditure 2021 2020 2022 US$M US$M Year ended 30 June US$M Restated Restated Capital expenditure (purchases of property, plant and equipment) 5,855 5,612 5,991 Add: Exploration expenditure 256 192 176 Capital and exploration expenditure (cash basis) - Continuing operations 6,111 5,804 6,167 Capital expenditure (purchases of property, plant and equipment) - Discontinued operations 1,050 994 909 Add: Exploration expenditure - Discontinued operations 384 322 564 Capital and exploration expenditure (cash basis) - Discontinued operations 1,434 1,316 1,473 Capital and exploration expenditure (cash basis) - Total operations 7,545 7,120 7,640 Free cash flow 2021 2020 2022 US$M US$M Year ended 30 June US$M Restated Restated Net operating cash flows from Continuing operations 29,285 25,883 14,685 Net investing cash flows from Continuing operations (4,973) (6,325) (6,583) Free cash flow - Continuing operations 24,312 19,558 8,102 Net operating cash flows from Discontinued operations 2,889 1,351 1,021 Net investing cash flows from Discontinued operations (904) (1,520) (1,033) Net cash completion payment on merger of Petroleum with Woodside (683) Cash and cash equivalents disposed on merger of Petroleum with Woodside (399) Free cash flow - Discontinued operations 903 (169) (12) Free cash flow - Total operations 25,215 19,389 8,090 Non-IFRS financial information derived from Consolidated Balance Sheet Net debt and gearing ratio 2022 2021 2020 Year ended 30 June US$M US$M US$M Interest bearing liabilities - Current 2,622 2,628 5,012 Interest bearing liabilities - Non current 13,806 18,355 22,036 Total interest bearing liabilities 16,428 20,983 27,048 Comprising: Borrowing 13,852 17,087 23,605 Lease liabilities 2,576 3,896 3,443 Less: Lease liability associated with index-linked freight contracts 274 1,025 1,160 Less: Cash and cash equivalents 17,236 15,246 13,426 Less: Net debt management related instruments1 (1,688) 557 433 Less: Net cash management related instruments2 273 34 (15) Less: Total derivatives included in net debt (1,415) 591 418 Net debt 333 4,121 12,044 Net assets 48,766 55,605 52,175 Gearing 0.7% 6.9% 18.8% 1 Represents the net cross currency and interest rate swaps included within current and non-current other financial assets and liabilities. 2 Represents the net forward exchange contracts related to cash management included within current and non-current other financial assets and liabilities. Net debt waterfall 2022 2021 Year ended 30 June US$M US$M Net debt at the beginning of the period (4,121) (12,044) Net operating cash flows 32,174 27,234 Net investing cash flows (6,959) (7,845) Net financing cash flows (22,767) (17,922) Net increase in cash and cash equivalents from Continuing and Discontinued operations 2,448 1,467 Carrying value of interest bearing liability net repayments 2,227 7,433 Carrying value of debt related instruments settlements/(proceeds) (167) Carrying value of cash management related instruments (proceeds)/settlements (247) 403 Fair value adjustment on debt (including debt related instruments) 5 58 Foreign exchange impacts on cash (including cash management related instruments) 27 (1) Lease additions (736) (1,079) Divestment and demerger of subsidiaries and operations 492 Other (428) (191) Non-cash movements (640) (1,213) Net debt at the end of the period (333) (4,121) 78 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Net operating assets The following table reconciles Net operating assets for the Group to Net assets on the Consolidated Balance Sheet. 2021 2022 US$M Year ended 30 June US$M Restated Net assets 48,766 55,605 Less: Non-operating assets Cash and cash equivalents (17,236) (15,246) Trade and other receivables1 (72) (280) Other financial assets2 (1,363) (1,516) Current tax assets (263) (279) Deferred tax assets (56) (1,912) Assets held for sale - (324) Petroleum Discontinued operations operating assets3 - (13,757) Add: Non-operating liabilities Trade and other payables4 201 227 Interest bearing liabilities 16,428 20,983 Other financial liabilities5 1,851 588 Current tax payable 3,032 2,800 Non-current tax payable 87 120 Deferred tax liabilities 3,063 3,314 Liabilities directly associated with the assets held for sale - 17 Petroleum Discontinued operations operating liabilities3 - 5,684 Net operating assets 54,438 56,024 Net operating assets Copper 27,420 26,928 Iron Ore 16,823 18,663 Coal 7,650 7,512 Group and unallocated items6 2,545 2,921 Total 54,438 56,024 1 Represents loans to associates, external finance receivable and accrued interest receivable included within other receivables. 2 Represents cross currency and interest rate swaps, forward exchange contracts related to cash management and investment in shares, other investments and receivables contingent on outcome of future events relating to mining and regulatory approvals. 3 Represents the Petroleum operating assets and operating liabilities as at 30 June 2021 that were merged with Woodside on 1 June 2022. 4 Represents accrued interest payable included within other payables. 5 Represents cross currency and interest rate swaps and forward exchange contracts related to cash management. 6 Group and unallocated items include functions, other unallocated operations including Potash, Nickel West, legacy assets, and consolidation adjustments. BHP Appendix 4E 2022 79

11 Non-IFRS financial information continued Other non-IFRS financial information Principal factors that affect Revenue, Profit from operations and Underlying EBITDA The following table describes the impact of the principal factors that affected Revenue, Profit from operations and Underlying EBITDA for FY2022 and relates them back to our Consolidated Income Statement. For information on the method of calculation of the principal factors that affect Revenue, Profit from operations and Underlying EBITDA refer to OFR 11.2. Depreciation, Total expenses, amortisation Other income and and Loss from impairments equity and accounted Profit from Exceptional Underlying Revenue investments operations Items EBITDA US$M US$M US$M US$M US$M Year ended 30 June 2021 (Restated) Revenue 56,921 Other income 380 Expenses excluding net finance costs (30,871) Loss from equity accounted investments, related impairments and expenses (915) Total other income, expenses excluding net finance costs and Loss from equity accounted investments, related impairments and expenses (31,406) Profit from operations 25,515 Depreciation, amortisation and impairments1 7,591 Exceptional item included in Depreciation, amortisation and impairments (2,371) Exceptional items 4,338 Underlying EBITDA 35,073 Change in sales prices 7,267 (673) 6,594 - 6,594 Price-linked costs - (1,047) (1,047) - (1,047) Net price impact 7,267 (1,720) 5,547 - 5,547 Change in volumes (1,235) 23 (1,212) - (1,212) Operating cash costs - (473) (473) - (473) Exploration and business development - (67) (67) - (67) Change in controllable cash costs2 - (540) (540) - (540) Exchange rates (3) 1,183 1,180 - 1,180 Inflation on costs - (867) (867) - (867) Fuel, energy, and consumable price movements - (660) (660) - (660) Non-cash - (3) (3) - (3) One-off items - - - - -Change in other costs (3) (347) (350) - (350) Asset sales - 2 2 - 2 Ceased and sold operations 1,482 186 1,668 - 1,668 Other 666 (220) 446 - 446 Depreciation, amortisation and impairments - (978) (978) 978 -Exceptional items - 4,008 4,008 (4,008) -Year ended 30 June 2022 Revenue 65,098 Other income 1,398 Expenses excluding net finance costs (32,371) Loss from equity accounted investments, related impairments and expenses (19) Total other income, expenses excluding net finance costs and Loss from equity accounted investments, related impairments and expenses (30,992) Profit from operations 34,106 Depreciation, amortisation and impairments1 6,198 Exceptional item included in Depreciation, amortisation and impairments -Exceptional items 330 Underlying EBITDA 40,634 1 Depreciation and impairments that we classify as exceptional items are excluded from depreciation, amortisation and impairments. Depreciation, amortisation and impairments includes non-exceptional impairments of US$515 million (FY2021: US$136 million). 2 Collectively, we refer to the change in operating cash costs and change in exploration and business development as Change in controllable cash costs. Operating cash costs by definition do not include non-cash costs. The change in operating cash costs also excludes the impact of exchange rates and inflation, changes in fuel, energy costs and consumable costs, changes in exploration and business development costs and one-off items. These items are excluded so as to provide a consistent measurement of changes in costs across all segments, based on the factors that are within the control and responsibility of the segment. 80 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Underlying return on capital employed (ROCE) 2022 2021 2020 Year ended 30 June US$M US$M US$M Profit after taxation from Continuing and Discontinued operations 33,055 13,451 8,736 Exceptional items1 (7,085) 5,797 1,305 Subtotal 25,970 19,248 10,041 Adjusted for: Net finance costs 1,128 1,305 911 Exceptional items included within net finance costs1 (290) (85) (93) Income tax expense on net finance costs (287) (337) (267) Profit after taxation excluding net finance costs and exceptional items 26,521 20,131 10,592 Net assets at the beginning of the period 55,605 52,175 51,753 Net debt at the beginning of the period 4,121 12,044 9,446 Capital employed at the beginning of the period 59,726 64,219 61,199 Net assets at the end of the period 48,766 55,605 52,175 Net debt at the end of the period 333 4,121 12,044 Capital employed at the end of the period 49,099 59,726 64,219 Average capital employed 54,413 61,973 62,709 Underlying return on capital employed 48.7% 32.5% 16.9% 1 For more information refer to Financial Statements note 3 'Exceptional items'. Underlying return on capital employed (ROCE) by segment Group and unallocated Petroleum Year ended 30 June 2022 items/ Total Discontinued Total US$M Copper Iron Ore Coal eliminations1 Continuing operations Group Profit after taxation excluding net finance costs and exceptional items 3,981 13,896 6,293 (256) 23,914 2,607 26,521 Average capital employed 24,310 15,275 6,893 3,196 49,674 4,739 54,413 Underlying return on capital employed 16% 91% 91% - 48.1% - 48.7% Group and Year ended 30 June 2021 unallocated Petroleum US$M items/ Total Discontinued Total Restated Copper Iron Ore Coal eliminations1 Continuing operations Group Profit after taxation excluding net finance costs and exceptional items 4,191 16,640 (454) (395) 19,982 149 20,131 Average capital employed 23,710 16,042 8,262 4,470 52,484 9,489 61,973 Underlying return on capital employed 18% 104% (5%) - 38.1% 1.6% 32.5% 1 Group and unallocated items includes functions, other unallocated operations including Potash, Nickel West, legacy assets and consolidation adjustments. Underlying return on capital employed (ROCE) by asset New South Western BHP Wales Petroleum Year ended 30 June 2022 Australia Mitsubishi Nickel Pampa Olympic Energy Total Discontinued Total US$M Iron Ore Alliance Antamina West Escondida Norte Dam Potash Coal1 Other Continuing operations Group Profit after taxation excluding net finance costs and exceptional items 14,051 4,153 684 250 3,346 81 (9) (123) 1,309 172 23,914 2,607 26,521 Average capital employed 18,783 6,725 1,284 650 9,891 4,380 8,660 3,321 (413) (3,607) 49,674 4,739 54,413 Underlying return on capital employed 75% 62% 53% 38% 34% 2% (0)% (4)% - - 48.1% - 48.7% New South Year ended 30 June 2021 Western BHP Wales Petroleum US$M Australia Mitsubishi Nickel Pampa Olympic Energy Total Discontinued Total Restated Iron Ore Alliance Antamina West Escondida Norte Dam Potash Coal Other Continuing operations Group Profit after taxation excluding net finance costs and exceptional items 16,665 (13) 593 136 3,281 302 214 5 (203) (998) 19,982 149 20,131 Average capital employed 18,661 6,796 1,353 295 10,353 3,760 8,021 3,710 269 (734) 52,484 9,489 61,973 Underlying return on capital employed 89% (0%) 44% 46% 32% 8% 3% 0% (75%) - 38.1% 1.6% 32.5% 1 NSWEC has not been shown as ROCE is distorted by negative capital employed due to the rehabilitation provision being the primary balance remaining on Balance Sheet following previous impairments. BHP Appendix 4E 2022 81

11.1 Definition and calculation of non-IFRS financial information Non-IFRS financial Reasons why we believe the non-IFRS financial information information are useful Calculation methodology Underlying attributable Allows the comparability of underlying financial performance Profit after taxation from Continuing and Discontinued profit by excluding the impacts of exceptional items. operations attributable to BHP shareholders excluding any Allows the comparability of underlying financial performance exceptional items attributable to BHP shareholders. Underlying attributable by excluding the impacts of exceptional items and the Underlying attributable profit from Continuing operations also profit - Continuing contribution of Discontinued operations and is also the basis excludes the contribution of Discontinued operations from the operations on which our dividend payout ratio policy is applied. above metrics. Underlying basic earnings On a per share basis, allows the comparability of underlying Underlying attributable profit divided by the weighted basic per share financial performance by excluding the impacts of average number of shares. Underlying basic earnings exceptional items. Underlying attributable profit - Continuing operations divided by per share - Continuing On a per share basis, allows the comparability of underlying the weighted basic average number of shares. operations financial performance by excluding the impacts of exceptional items and the contribution of Discontinued operations. Underlying EBITDA Used to help assess current operational profitability excluding Earnings before net finance costs, depreciation, amortisation the impacts of sunk costs (i.e. depreciation from initial and impairments, taxation expense, Discontinued operations investment). Each is a measure that management uses and exceptional items. Underlying EBITDA includes BHP's internally to assess the performance of the Group's segments share of profit/(loss) from investments accounted for using and make decisions on the allocation of resources. the equity method including net finance costs, depreciation, amortisation and impairments and taxation expense/(benefit). Underlying EBITDA Underlying EBITDA excluding third-party product EBITDA, margin divided by revenue excluding third-party product revenue. Underlying EBIT Used to help assess current operational profitability excluding Earnings before net finance costs, taxation expense, net finance costs and taxation expense (each of which Discontinued operations and any exceptional items. Underlying are managed at the Group level) as well as Discontinued EBIT includes BHP's share of profit/(loss) from investments operations and any exceptional items. accounted for using the equity method including net finance costs and taxation expense/(benefit). Profit from operations Earnings before net finance costs, taxation expense and Discontinued operations. Profit from operations includes Revenue, Other income, Expenses excluding net finance costs and BHP's share of profit/(loss) from investments accounted for using the equity method including net finance costs and taxation expense/(benefit). Capital and exploration Used as part of our Capital Allocation Framework to assess Purchases of property, plant and equipment and exploration expenditure efficient deployment of capital. Represents the total outflows expenditure including the contribution of Discontinued of our operational investing expenditure. operations. Capital and exploration Represents the total outflows of our operational investing Purchases of property, plant and equipment and exploration expenditure - Continuing expenditure excluding the contribution of Discontinued expenditure. operations operations. Free cash flow It is a key measure used as part of our Capital Allocation Net operating cash flows less net investing cash flows. Free cash flow -Framework. Reflects our operational cash performance Net operating cash flows from Continuing operations less net Continuing operations inclusive of investment expenditure, which helps to highlight investing cash flows from Continuing operations. how much cash was generated in the period to be available for the servicing of debt and distribution to shareholders. Reflects our operational cash performance inclusive of investment expenditure, but excluding the contribution of Discontinued operations. Net debt Net debt shows the position of gross debt less index-linked Interest bearing liabilities less liability associated with index-freight contracts offset by cash immediately available to linked freight contracts less cash and cash equivalents pay debt if required and any associated derivative financial less net cross currency and interest rate swaps less net instruments. Liability associated with index-linked freight cash management related instruments for the Group at the contracts, which are required to be remeasured to the reporting date. Gearing ratio prevailing freight index at each reporting date, are excluded Ratio of Net debt to Net debt plus Net assets. from the net debt calculation due to the short-term volatility of the index they relate to not aligning with how the Group uses net debt for decision making in relation to the Capital Allocation Framework. Net debt includes the fair value of derivative financial instruments used to hedge cash and borrowings to reflect the Group's risk management strategy of reducing the volatility of net debt caused by fluctuations in foreign exchange and interest rates. Net debt, along with the gearing ratio, is used to monitor the Group's capital management by relating net debt relative to equity from shareholders. Net operating assets Enables a clearer view of the assets deployed to generate Operating assets net of operating liabilities, including earnings by highlighting the net operating assets of the the carrying value of equity accounted investments and business separate from the financing and tax balances. predominantly excludes cash balances, loans to associates, This measure helps provide an indicator of the underlying interest bearing liabilities, derivatives hedging our net debt, performance of our assets and enhances comparability assets held for sale, liabilities directly associated with assets between them. held for sale and tax balances. 82 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary Non-IFRS financial Reasons why we believe the non-IFRS financial information information are useful Calculation methodology Underlying return on Indicator of the Group's capital efficiency and is provided Profit after taxation excluding exceptional items and net finance capital employed (ROCE) on an underlying basis to allow comparability of underlying costs (after taxation) divided by average capital employed. financial performance by excluding the impacts of Profit after taxation excluding exceptional items and net finance exceptional items. costs (after taxation) is profit after taxation from Continuing and Discontinued operations excluding exceptional items, net finance costs and the estimated taxation impact of net finance costs. These are annualised for a half year end reporting period. The estimated tax impact is calculated using a prima facie taxation rate on net finance costs (excluding any foreign exchange impact). Average capital employed is calculated as the average of net assets less net debt for the last two reporting periods. Adjusted effective tax rate Provides an underlying tax basis to allow comparability Total taxation expense/(benefit) excluding exceptional items of underlying financial performance by excluding the impacts and exchange rate movements included in taxation expense/ of exceptional items. (benefit) divided by Profit before taxation from Continuing operations excluding exceptional items. Unit cost Used to assess the controllable financial performance of the Ratio of net costs of the assets to the equity share of sales Group's assets for each unit of production. Unit costs are tonnage. Net costs is defined as revenue less Underlying adjusted for site specific non controllable factors to enhance EBITDA and excludes freight and other costs, depending on the comparability between the Group's assets. nature of each asset. Freight is excluded as the Group believes it provides a similar basis of comparison to our peer group. Escondida unit costs exclude: - by-product credits being the favourable impact of by-products (such as gold or silver) to determine the directly attributable costs of copper production. WAIO, BMA and NSWEC unit costs exclude: - royalties as these are costs that are not deemed to be under the Group's control, and the Group believes exclusion provides a similar basis of comparison to our peer group. 11.2 Definition and calculation of principal factors The method of calculation of the principal factors that affect the period on period movements of Revenue, Profit from operations and Underlying EBITDA are as follows: Principal factor Method of calculation Change in sales prices Change in average realised price for each operation from the prior period to the current period, multiplied by current period sales volumes. Price-linked costs Change in price-linked costs (mainly royalties) for each operation from the prior period to the current period, multiplied by current period sales volumes. Change in volumes Change in sales volumes for each operation multiplied by the prior year average realised price less variable unit cost. Controllable cash costs Total of operating cash costs and exploration and business development costs. Operating cash costs Change in total costs, other than price-linked costs, exchange rates, inflation on costs, fuel, energy, and consumable price movements, non-cash costs and one-off items as defined below for each operation from the prior period to the current period. Exploration and business Exploration and business development expense in the current period minus exploration and business development development expense in the prior period. Exchange rates Change in exchange rate multiplied by current period local currency revenue and expenses. Inflation on costs Change in inflation rate applied to expenses with contractual links to inflation indexes, other than depreciation and amortisation, price-linked costs, exploration and business development expenses, expenses in ceased and sold operations and expenses in new and acquired operations. Fuel, energy, and consumable Fuel and energy expense and price differences above inflation on consumables in the current period minus fuel and price movements energy expense in the prior period. Non-cash Change in net impact of capitalisation and depletion of deferred stripping from the prior period to the current period. One-off items Change in costs exceeding a pre-determined threshold associated with an unexpected event that had not occurred in the last two years and is not reasonably likely to occur within the next two years. Asset sales Profit/(loss) on the sale of assets or operations in the current period minus profit/(loss) on sale of assets or operations in the prior period. Ceased and sold operations Underlying EBITDA for operations that ceased or were sold in the current period minus Underlying EBITDA for operations that ceased or were sold in the prior period. Share of profit/(loss) from equity Share of profit/(loss) from equity accounted investments for the current period minus share of profit/(loss) from equity accounted investments accounted investments in the prior period. Other Variances not explained by the above factors. BHP Appendix 4E 2022 83

12 Other information financial conditions, or provide other forward- from those expressed in the statements contained looking information. in this Report. BHP cautions against reliance 12.1 Company details on any forward-looking statements or guidance, Examples of forward-looking statements including in light of the current economic climate BHP Group Limited's registered office and contained in this Report include, without limitation, and the significant volatility, uncertainty and global headquarters are at 171 Collins Street, statements describing (i) our strategy, our disruption arising in connection with the Ukrainian Melbourne, Victoria 3000, Australia. 'BHP', values and how we define our success; (ii) our conflict and COVID-19. For example, our future the 'Company', the 'Group', 'our business', expectations regarding future demand for certain revenues from our assets, projects or mines 'organisation', 'we', 'us', 'our' and 'ourselves' commodities, in particular copper, nickel, iron described in this Report will be based, in part, refer to BHP Group Limited, and except ore, metallurgical coal, steel and potash, and our on the market price of the minerals or metals where the context otherwise requires, our intentions, commitments or expectations with produced, which may vary significantly from subsidiaries. Refer to Financial Statements respect to our supply of certain commodities, current levels. These variations, if materially note 28 'Subsidiaries' for a list of our significant including copper, nickel, iron ore and potash; (iii) adverse, may affect the timing or the feasibility subsidiaries. Those terms do not include non- our future exploration and partnership plans and of the development of a particular project, the operated assets. perceived benefits and opportunities, including expansion of certain facilities or mines, or the our focus to grow our copper and nickel assets; This Report covers functions and assets continuation of existing assets. (iv) the structure of our organisation and portfolio (including those under exploration, projects and perceived benefits and opportunities; (v) Other factors that may affect the actual in development or execution phases, sites our outlook for long-term economic growth construction or production commencement and closed operations) that have been wholly and other macroeconomic and industry trends; dates, revenues, costs or production output and owned and/or operated by BHP or that have (vi) our projected and expected production anticipated lives of assets, mines or facilities been owned as a BHP-operated joint venture and performance levels and development include: (i) our ability to profitably produce and operated by BHP (referred to in this Report projects; (vii) our expectations regarding our transport the minerals and/or metals extracted as 'operated assets' or 'operations') from investments, including in potential growth options to applicable markets; (ii) the impact of foreign 1 July 2021 to 30 June 2022. BHP also holds and technology and innovation, and perceived currency exchange rates on the market prices of interests in assets that are owned as a joint benefits and opportunities; (viii) our reserves and the minerals or metals we produce; (iii) activities venture but not operated by BHP (referred to resources; (ix) our plans for our major projects and of government authorities in the countries where in this Report as 'non-operated joint ventures' related budget allocations; (x) our expectations, we sell our products and in the countries where or 'non-operated assets'). Notwithstanding that commitments and objectives with respect to we are exploring or developing projects, facilities this Report may include production, financial sustainability, decarbonisation, natural resource or mines, including increases in taxes; (iv) changes and other information from non-operated assets, management, climate change and portfolio in environmental and other regulations; (v) the non-operated assets are not included in the BHP resilience and timelines and plans to seek to duration and severity of the COVID-19 pandemic Group and, as a result, statements regarding our achieve or implement such objectives, including and its impact on our business; (vi) political or operations, assets and values apply only to our our new 2030 'People, Planet and Prosperity' geopolitical uncertainty; (viii) labour unrest; and operated assets unless stated otherwise. goals, our approach to equitable change and (viii) other factors identified in the risk factors set On 31 January 2022, we unified our company transitions, our Climate Transition Action Plan, out in Operating and Financial Review 9.1. structure under BHP Group Limited, with a Climate Change Adaptation Strategy and goals, Except as required by applicable regulations or by primary listing on the Australian Securities targets and strategies to seek to reduce or support law, BHP does not undertake to publicly update or Exchange. BHP holds a standard listing on the the reduction of greenhouse gas emissions, review any forward-looking statements, whether London Stock Exchange, a secondary listing on and related perceived costs, benefits and as a result of new information or future events. the Johannesburg Stock Exchange and an ADR opportunities for BHP; (xi) the assumptions, beliefs Past performance cannot be relied on as a guide program listed on the New York Stock Exchange. and conclusions in our climate change related to future performance. statements and strategies, including in our Climate 12.2 Forward looking statements Change Report 2020, for example, in respect of Emissions and energy This Report contains forward-looking future temperatures, energy consumption and consumption data statements, including: statements regarding greenhouse gas emissions, and climate-related Due to the inherent uncertainty and limitations trends in commodity prices and currency impacts; (xii) our commitment to social value; in measuring greenhouse gas (GHG) emissions exchange rates; demand for commodities; (xiii) our commitments to sustainability reporting, and operational energy consumption under reserves and resources and production frameworks, standards and initiatives; (xiv) our the calculation methodologies used in the forecasts; expectations, plans, strategies and commitments to improve or maintain safe tailings preparation of such data, all GHG emissions objectives of management; climate scenarios; storage management; (xv) our commitments to and operational energy consumption data or approval of certain projects and consummation achieve certain inclusion and diversity targets, references to GHG emissions and operational of certain transactions; closure or divestment of aspirations and outcomes; (xvi) our commitments energy consumption volumes (including ratios certain assets, operations or facilities (including to achieve certain targets and outcomes or percentages) in this Report are estimates. associated costs); anticipated production or with respect to Indigenous peoples and the There may also be differences in the manner construction commencement dates; capital costs communities in which we operate; and (xvii) our that third parties calculate or report GHG and scheduling; operating costs and supply of commitments to achieve certain health and safety emissions or operational energy consumption materials and skilled employees; anticipated targets and outcomes. data compared to BHP, which means that third-productive lives of projects, mines and facilities; Forward-looking statements are based on party data may not be comparable to our data. provisions and contingent liabilities; and tax and management's current expectations and reflect For information on how we calculate our GHG regulatory developments. judgments, assumptions, estimates and other emissions and operational energy consumption Forward-looking statements may be identified by information available as at the date of this Report data, see our Methodology tab in our ESG the use of terminology including, but not limited and/or the date of BHP's planning or scenario Standards and Databook. to, 'intend', 'aim', 'ambition', 'aspiration', 'goal', analysis processes. These statements do not This Report is made in accordance with 'target', 'project', 'see', 'anticipate', 'estimate', represent guarantees or predictions of future a resolution of the Board. 'plan', 'objective', 'believe', 'expect', 'commit', financial or operational performance and involve 'may', 'should', 'need', 'must', 'will', 'would', known and unknown risks, uncertainties and other 'continue', 'forecast', 'guidance', 'trend' or factors, many of which are beyond our control and similar words. These statements discuss future which may cause actual results to differ materially expectations concerning the results of assets or Ken MacKenzie Chair 1 References in this Annual Report to a 'joint venture' are used for convenience to collectively describe assets that 16 August 2022 are not wholly owned by BHP. Such references are not intended to characterise the legal relationship between the owners of the asset. 84 BHP Appendix 4E 2022

Director's Report: Remuneration Report BHP Appendix 4E 2022 85 Governance1 Review of operations, principal activities and state of affairs 86 2 Directors 86 2.1 Biographical details 86 2.2 Director attendances at meetings 88 3 Share capital and buy-back programs 88 4 Share interests 89 5 Secretaries 89 6 Indemnities and insurance 89 7 Dividends 89 8 Auditors 89 9 Non-audit services 89 10 Exploration, research and development 90 11 ASIC Instrument 2016/191 90 12 Proceedings on behalf of BHP Group Limited 90 13 Performance in relation to environmental regulation 90 14 Additional information 90 Remuneration Committee Chair letter to shareholders 92 1 Remuneration governance 94 2 Remuneration framework 95 2.1 How the remuneration framework is set 95 2.2 Remuneration framework operation 95 2.3 Potential remuneration outcomes 97 3 Remuneration for the CEO and other Executive KMP 98 3.1 FY2022 remuneration received by the CEO 98 3.2 FY2022 CDP performance outcomes 99 3.3 FY2022 LTIP performance outcomes 102 3.4 Overarching discretion and vesting underpin 102 3.5 Sign-on performance shares 103 3.6 LTIP allocated during FY2022 103 3.7 FY2023 remuneration for the CEO and other Executive KMP 103 4 Remuneration for Non-executive Directors 104 4.1 Remuneration framework 104 4.2 Non-executive Directors' remuneration in FY2023 105 5 Statutory KMP remuneration and other disclosures 106 5.1 KMP remuneration table 106 5.2 Equity awards 107 5.3 Estimated value range of equity awards 108 5.4 Ordinary share holdings and transactions 108 5.5 Prohibition on hedging of BHP shares and equity instruments 109 5.6 Share ownership guidelines and the MSR 109 5.7 Transactions with KMP 109

Directors' Report The information presented by the Directors in 2. Directors Report are listed in the Board and Board this Directors' Report relates to BHP Group Committee attendance table in Directors' Report Limited and its subsidiaries. The Operating and The Directors who served at any time during 2.2. Information on the current Directors is set Financial Review (OFR), the Remuneration FY2022 or up until the date of this Directors' out in Directors' Report 2.1. Report, and the 'Lead Auditor's Independence Declaration' are incorporated by reference into, and form part of, this Directors' Report. 2.1 Biographical details 1. Review of operations, principal activities and state of affairs Key to Committee membership A review of the operations of BHP during Committee Chair RA Risk and Audit R Remuneration FY2022, the results of those operations during Committee member NG Nomination and Governance S Sustainability FY2022 and the expected results of those operations in future financial years are set out in the OFR. Information on the development NG of BHP and likely developments in future years also appears in this section. We have excluded certain information from the OFR, to the extent permitted by Australian law, on the basis that such information relates to impending Ken MacKenzie Mike Henry developments or matters in the course of negotiation and disclosure would be seriously BEng, FIEA, FAICD BSc (Chemistry) prejudicial to the interests of BHP. This is Independent Non-executive Director since Non-independent Director since January 2020 because such disclosure could be misleading September 2016 Chief Executive Officer since 1 January 2020 due to the fact it is premature or preliminary Chair since 1 September 2017 Mr Henry has over 30 years' experience in the global in nature, relates to commercially sensitive Mr MacKenzie has extensive global and executive mining and petroleum industry, spanning operational, experience and a deeply strategic approach, with a focus commercial, safety, technology and marketing roles. contracts, would undermine confidentiality on operational excellence, capital discipline and the Prior to joining BHP, Mike worked in the resources between BHP and our suppliers and clients, creation of long-term shareholder value. industry in Canada, Japan and Australia. Mike joined or would otherwise unreasonably damage BHP. Ken was the Managing Director and Chief Executive BHP in 2003, initially in business development and The categories of information omitted include Officer of Amcor Limited, a global packaging company then in marketing and trading of a range of mineral and forward-looking estimates and projections with operations in over 40 countries, from 2005 until petroleum commodities based in The Hague, where he 2015. During his 23-year career with Amcor, Ken gained was also accountable for BHP's ocean freight operations. prepared for internal management purposes, extensive experience across all of Amcor's major He went on to hold various positions in BHP, including information regarding BHP's assets and projects, business segments in developed and emerging markets President Operations Minerals Australia, President which is developing and susceptible to change, in the Americas, Australia, Asia and Europe. Coal, President HSE, Marketing and Technology, and and information relating to commercial contracts Ken currently sits on the Advisory Board of American Chief Marketing Officer. Mike has been a member of the Securities Capital Partners LLC (since January 2016) and Executive Leadership Team since 2011. and pricing modules. is a part-time adviser at Barrenjoey (since April 2021). Our principal activities, including significant changes in the nature of BHP's principal activities during FY2022, are disclosed in RA NG the OFR. There were no significant changes in BHP's state of affairs that occurred during FY2022 and no significant post balance date events other than as disclosed in the OFR and Financial Terry Bowen Malcolm Broomhead Statements note 33 'Subsequent events'. BAcct, FCPA, MAICD AO, MBA, BE, FAICD Independent Non-executive Director since October 2017 Independent Non-executive Director since March 2010 No other matter or circumstance has arisen Mr Bowen has significant executive experience across a Mr Broomhead has extensive experience at large since the end of FY2022 that has significantly range of diversified industries, deep financial expertise, global industrial and mining companies, bringing a affected or is expected to significantly affect the and extensive experience in capital allocation discipline, broad strategic perspective and understanding of the operations, the results of operations or state of commodity value chains and strategy. long-term cyclical nature of the resources industry and affairs of BHP in future years. Terry was formerly Managing Partner and Head of commodity value chains, with proven health, safety and Operations at BGH Capital and an Executive Director environment, and capital allocation performance. and Finance Director of Wesfarmers Limited. Prior to Malcolm was Managing Director and Chief Executive this, Terry held various senior executive roles within Officer of Orica Limited from 2001 until 2005. Prior to Wesfarmers, including as Finance Director of Coles, joining Orica, he held a number of senior positions Managing Director of Industrial and Safety and Finance at North Limited, including Managing Director and Director of Wesfarmers Landmark. Terry is also a former Chief Executive Officer and, prior to that, held senior Director of Gresham Partners and past President of the management positions with Halcrow (UK), MIM Holdings, National Executive of the Group of 100 Inc. Peko Wallsend and Industrial Equity. Terry is currently Chair of the Operations Group at Malcolm is currently Chair of Orica Limited (since BGH Capital (since January 2020), and a Director of January 2016, having served on the board since Transurban Group (since February 2020), Navitas Pty December 2015). He is also a Director of the Walter and Limited (since July 2019) and the West Coast Eagles Eliza Hall Institute of Medical Research (since July 2014). Football Club (since May 2017). 86 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary RA RA S NG Xiaoqun Clever Ian Cockerill Gary Goldberg Diploma in Computer Science and MSc (Mining and Mineral Engineering), BSc (Hons.) BS (Mining Engineering), MBA International Marketing, MBA (Geology), AMP - Oxford Templeton College Independent Non-executive Director since February 2020. Independent Non-executive Director since October 2020 Independent Non-executive Director since April 2019 Senior Independent Director since 21 December 2020 Ms Clever has over 20 years' experience in technology Mr Cockerill has extensive global mining operational, Mr Goldberg has over 35 years' of global executive with a focus on software engineering, data and analytics, project and executive experience, having initially trained experience, including deep experience in mining, strategy, cybersecurity and digitalisation. as a geologist. risk, commodity value chain, capital allocation discipline Xiaoqun was formerly Chief Technology Officer of Ringier Ian previously served as Chair of both Polymetal and public policy. AG and ProSiebenSat.1 Media SE. Xiaoqun previously International plc and BlackRock World Mining Trust plc, Gary served as the Chief Executive Officer of Newmont held various roles with SAP SE from 1997 to 2013, Lead Independent Director of Ivanhoe Mines Ltd, and a Corporation from 2013 to 2019, and prior to that, had including Chief Operating Officer of Technology and Non-executive Director of Orica Limited (from July 2010 been President and Chief Executive Officer of RioTinto Innovation. Xiaoqun was formerly a member of the to August 2019) and Endeavour Mining Corporation (from Minerals. Gary has also previously been a non-executive Supervisory Board of Allianz Elementar Versicherungs and September 2013 to March 2019). Ian also formerly held director of Port Waratah Coal Services Limited and Rio Lebensversicherungs AG (from 2015 to 2020). chief executive roles at Anglo American Coal and Gold Tinto Zimbabwe, and served as Vice Chair of the World Xiaoqun is currently a Non-executive Director of Fields Limited, and senior executive roles at AngloGold Gold Council, Treasurer of the International Council on Capgemini SE (since May 2019) and Amadeus IT Group Ashanti and Anglo American Group. Mining and Metals, and Chair of the National Mining SA (since June 2020) and on the Supervisory Board Ian is currently Senior Independent Director of Endeavour Association in the United States. of Infineon Technologies AG (since February 2020). Mining Corporation (since May 2022), the Chair of Cornish Xiaoqun is also the Co-Founder and Chief Executive Lithium Ltd (since April 2022) and a Non-executive Officer of LuxNova Suisse GmbH (sinceApril 2018). Director of I-Pulse Inc (since September 2010). Ian is also a Director of the Leadership for Conservation in Africa. RA S RA NG Michelle Hinchliffe John Mogford Christine O'Reilly BCom, FCA, ACA BEng BBus Independent Non-executive Director since March 2022 Independent Non-executive Director since October 2017 Independent Non-executive Director since October 2020 Ms Hinchliffe has over 20 years' experience as a partner in Mr Mogford has significant global executive Ms O'Reilly has over 30 years' experience in the financial KPMG's financial services division. experience, including in oil and gas, capital allocation and infrastructure sectors, with deep financial and public Michelle served as a member of KPMG's UK Board and discipline, commodity value chains and health, safety policy expertise and experience in large-scale capital as the UK Chair of Audit between 2019 and 2022. Prior to and environment. projects and transformational strategy. this, she was a member of the KPMG UK Executive John has held various leadership, technical and Christine served as Chief Executive Officer of the Committee in her role as Head of Audit from 2017 to operational roles at BP Plc. He was the Managing Director GasNet Australia Group and Co-Head of Unlisted 2019. Michelle led KPMG's financial services practice in and an Operating Partner of First Reserve, a global Infrastructure Investments at Colonial First State Global Australia between 2008 and 2013 and was a member of energy-focused private equity firm, from 2009 until 2015, Asset Management. Christine has also served as a the KPMG Australia Board. during which he served on the boards of its investee Non-executive Director of Medibank Private Limited (from Michelle is currently a Non-executive Director of companies. He also served as a Non-executive Director March 2014 to November 2021), Transurban Group (from Macquarie Group Limited and Macquarie Bank Limited of ERM Worldwide Group Limited (from 2015 to 2021), April 2012 to October 2020), CSL Limited (from February (since March 2022). Weir Group Plc (from 2008 to 2018), Network Rail Limited 2011 to October 2020) and Energy Australia Holdings (from 2016 to 2018), and one of First Reserve's portfolio Limited (from September 2012 to August 2018). companies, DOF Subsea AS (from 2009 to 2018). Christine is currently a Non-executive Director of Australia and New Zealand Banking Group (since November 2021), Stockland Limited (since August 2018), and the Baker Heart and Diabetes Institute (since June 2013). R S R S Catherine Tanna Dion Weisler Stefanie Wilkinson LLB, Honorary Doctor of Business BASc (Computing), Honorary Doctor of Laws BA, LLB (Hons), LLM, FGIA Independent Non-executive Director since April 2022 Independent Non-executive Director since June 2020 Group Company Secretary since March 2021 Ms Tanna has more than 30 years' experience in Mr Weisler has extensive global executive experience, Ms Wilkinson was appointed Group Company Secretary the resources, oil and gas, power generation and including transformation and commercial experience in effective March 2021. Prior to joining BHP, Stefanie was retailing sectors. the global information technology sector, with a focus on a Partner at Herbert Smith Freehills, a firm she was with Catherine served as Managing Director of Energy capital discipline, as well as perspectives on current and for 15 years, specialising in corporate law and governance Australia between 2014 and 2021. Prior to this, she held emerging ESG issues. for listed companies. Earlier in her career, Stefanie was a senior executive roles with Shell and BG Group with Dion served as a Director and the President and Chief solicitor at Allen & Overy in the Middle East. Stefanie is a responsibility for international operations. Catherine was Executive Officer of HP Inc. from 2015 to 2019, and fellow of the Governance Institute of Australia. also a member of the Board of the Reserve Bank of continued as a Director and Senior Executive Adviser Australia from 2011 to 2021 and a Director of the Business until May 2020. Dion previously held a number of senior Council of Australia from 2016 to 2021. executive roles at Lenovo Group Limited. Prior to this, Dion Catherine is currently a Senior Advisor at McKinsey & was General Manager Conferencing and Collaboration Company Inc (since April 2022) and a member of the at Telstra Corporation, and held various positions at Acer Advisory Board of Fujitsu Australia (since February 2022). Inc., including as Managing Director, Acer UK. Dion is currently a Non-executive Director of Intel Corporation (since June 2020), a Non-executive Director of Thermo Fisher Scientific Inc. (since March 2017) and a Non-executive Director of Sapia & Co Ltd (since January 2022). BHP Appendix 4E 2022 87

Directors' Report continued 2.2 Director attendances Members of the Executive Leadership Team and meetings (rather than just limiting attendance to at meetings other members of senior management attend Committee members). Committee agendas and meetings of the Board by invitation. Each Board papers are provided to all Directors to ensure Committee provides a standing invitation for they are aware of matters to be considered. The Board meets as often as required. any Non-executive Director to attend Committee During FY2022, the Board met 15 times. Board and Board Committee attendance in FY2022 Risk and Audit Nomination and Governance Remuneration Sustainability Board Committee Committee Committee Committee Terry Bowen 15/15 11/11 5/5 - -Malcolm Broomhead 15/15 - 2/21 - 2/21 Xiaoqun Clever 15/15 11/11 - - -Ian Cockerill 15/15 11/11 - - 5/5 Anita Frew2 7/7 5/5 - 2/2 -Gary Goldberg3 15/15 - 5/5 5/5 5/5 Mike Henry 15/15 - - - -Michelle Hinchliffe4 4/4 2/2 - - -Susan Kilsby5 7/7 - - 2/25 -Ken MacKenzie 15/15 - 5/5 - -John Mogford6 15/15 - 5/5 - 5/5 Christine O'Reilly 15/15 11/11 5/5 5/5 -Catherine Tanna7 3/3 - - 2/2 2/2 Dion Weisler 15/15 - - 5/5 3/38 1 Malcolm Broomhead ceased being a member of the Nomination and Governance Committee and Sustainability Committee on 11 November 2021. 2 Anita Frew served as a Non-executive Director from 15 September 2015 until her retirement as a member of the Board, Risk and Audit Committee and Remuneration Committee on 11 November 2021. 3 Gary Goldberg ceased being a member of the Remuneration Committee on 17 June 2022. He became Chair of the Sustainability Committee on 18 June 2022. 4 Michelle Hinchliffe became a member of the Board and the Risk and Audit Committee on 1 March 2022. 5 Susan Kilsby served as a Non-executive Director from 1 April 2019 until her retirement as a member of the Board and the Remuneration Committee on 11 November 2021. 6 John Mogford ceased being a member of the Nomination and Governance Committee on 17 June 2022. He ceased being the Chair of the Sustainability Committee on 17 June 2022, but remains a member of this Committee. 7 Catherine Tanna became a member of the Board, Remuneration Committee and Sustainability Committee on 4 April 2022. 8 Dion Weisler became a member of the Sustainability Committee on 12 November 2021. 3. Share capital and buy-back program. As at the date of this Directors' Some of our executives receive rights over BHP Report, there were no current on-marketbuy-backs. shares as part of their remuneration arrangements. buy-back programs BHP Group Plc (now BHP Group (UK) Limited) Entitlements may be satisfied by the transfer of is no longer able to make on-market purchases existing shares, which are acquired on-market At the Annual General Meetings held in 2019, 2020 and 2021, shareholders authorised BHP Group Plc of its ordinary shares as a result of its delisting in by the Employee Share Ownership Plan (ESOP) to make on-market purchases of up to 211,207,180 connection with the unification transaction with Trusts or, in respect of some entitlements, by the of its ordinary shares, representing 10 per cent of BHP Group Limited and as such it can no longer issue of shares. BHP Group Plc's issued share capital at that time. utilise the shareholder authorisation in relation to on-market purchases obtained at the Annual The number of shares referred to in column A below During FY2022, we did not make any on-market or off-market purchases of BHP Group Limited or General Meeting in 2021. were purchased to satisfy awards made under BHP Group Plc ordinary shares under any share the various BHP Group employee share schemes during FY2022. A B C D Total number of shares Average price Total number of shares Maximum number of shares purchased and transferred paid per share1 purchased as part of that may yet be purchased under to employees to satisfy US$ publicly announced the plans or programs employee awards plans or programs BHP Group Plc (now BHP Period BHP Group Limited2 Group (UK) Limited) 1 Jul 2021 to 31 Jul 2021 - - - - 211,207,1803 1 Aug 2021 to 31 Aug 2021 63,567 32.08 - - 211,207,1803 1 Sep 2021 to 30 Sep 2021 - - - - 211,207,1803 1 Oct 2021 to 31 Oct 2021 - - - - 211,207,1803 1 Nov 2021 to 30 Nov 2021 - - - - 211,207,1803 1 Dec 2021 to 31 Dec 2021 - - - - 211,207,1803 1 Jan 2022 to 31 Jan 2022 - - - - 211,207,1803,4 1 Feb 2022 to 28 Feb 2022 - - - - - 1 Mar 2022 to 31 Mar 2022 3,354,850 35.95 - - - 1 Apr 2022 to 30 Apr 2022 - - - - - 1 May 2022 to 31 May 2022 - - - - - 1 Jun 2022 to 30 Jun 2022 949,819 28.37 - - - Total 4,368,236 34.24 - - - 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 using the average weekly exchange rate of the week that such purchases took place for purchases on the ASX, and the average monthy exchange rate of the month that such purchases took place for purchases on the LSE. 2 BHP Group Limited is able to buy-back and cancel BHP Group Limited shares within the '10/12 limit' without shareholder approval in accordance with section 257B of the Australian Corporations Act 2001. Any future on-market share buy-back program would be conducted in accordance with the Australian Corporations Act 2001 and with the ASX Listing Rules. 3 At the Annual General Meetings held during 2019, 2020 and 2021, 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 capital at the time. 4 BHP Group Plc (now BHP Group (UK) Limited) is no longer able to make on-market purchases of its ordinary shares as a result of its delisting in connection with the unification transaction with BHP Group Limited and as such it can no longer utilise the shareholder authorisation in relation to on-market purchases obtained at the Annual General Meeting in 2021. 88 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary As at the date of this Directors' Report, there The table below sets out the relevant interests a breach by BHP of any obligation under the were 15,846,572 unvested equity awards in shares in BHP Group Limited held directly, engagement terms. outstanding in relation to BHP Group Limited indirectly or beneficially, as at the date of this We have insured against amounts that we ordinary shares held by 20,790 holders. Directors' Report by those senior executives may be liable to pay to Directors, Company The expiry dates of these unvested equity who were Executive Key Management Secretaries or certain employees (including awards range between August 2022 and Personnel (KMP) (other than the Executive former Officers) pursuant to Rule 146 of the August 2026 and there is no exercise price. Director) on that date. Where applicable, Constitution of BHP Group Limited or that we 4,400,000 fully paid ordinary shares in BHP the information also includes shares held in otherwise agree to pay by way of indemnity. Group Limited were issued as a result of the the name of a spouse, superannuation fund, The insurance policy also insures Directors, exercise of rights over unissued shares during nominee and/or other controlled entities. Company Secretaries and some employees or since the end of FY2022. No options over Executive As at date (including former Officers) against certain unissued shares or unissued interests in BHP KMP member of Directors' Report liabilities (including legal costs) they may incur have been granted during or since the end of Edgar Basto 130,038 in carrying out their duties. For this Directors' FY2022 and no shares or interests were issued David Lamont 6,345 and Officers' insurance, we paid premiums of as a result of the exercise of an option over Geraldine Slattery 127,232 US$21,772,900 excluding taxes during FY2022. unissued shares or interests during or since the end of FY2022. For more information refer to Ragnar Udd 118,955 No indemnity in favour of a current or former Financial Statements note 25 'Employee share 5. Secretaries officer of BHP Group Limited, or in favour of the ownership plans'. External Auditor, was called on during FY2022. For information on movements in share Stefanie Wilkinson is the Group Company 7. Dividends capital during and since the end of FY2022 Secretary. For details of her qualifications and refer to Financial Statements note 16 'Share capital'. experience refer to the Biographical details in A final dividend of 175 US cents per share will Directors' Report 2.1. The following people also be paid on 22 September 2022, resulting in total 4. Share interests acted during FY2022 as Company Secretaries of cash dividends determined in respect of FY2022 BHP Group Limited: Geof Stapledon, BEc, LLB of 325 US cents per share. Directors (Hons), DPhil, FCIS, until 7 July 2021, Prakash The merger of BHP's oil and gas portfolio Kakkad, LLB, LPC, from 7 July 2021, John-Paul 'Ordinary shareholdings and transactions' in the with Woodside Energy was completed on Santamaria, BEng (Civil) (Hons), LLB, from Remuneration Report 5.4 sets out the relevant 1 June 2022 and BHP paid a fully franked 7 July 2021. interests in shares in BHP Group Limited of in specie dividend of US$3.86 per share or the Directors who held office during FY2022, Each individual has experience in a company US$19.6 billion. at the beginning and end of FY2022. No rights secretariat role or other relevant fields arising For information on the dividends paid refer or options over shares in BHP Group Limited from time spent in roles within BHP, other large to Financial Statements note 16 'Share are held by any of the Non-executive Directors. listed companies or other relevant entities. capital' and note 18 'Dividends'. Interests held by the Executive Director under 6. Indemnities employee equity plans as at 30 June 2022 8. Auditors are set out in the tables showing interests in and insurance A copy of the declaration given by our External incentive plans contained in 'Equity awards' in Auditor to the Directors in relation to the auditors' the Remuneration Report 5.2. Except for Mike Rule 146 of the BHP Group Limited Constitution compliance with the independence requirements Henry, as at the date of this Directors' Report, requires the company to indemnify, to the extent of the Australian Corporations Act 2001 and the information pertaining to shares in BHP permitted by law, each Officer of BHP Group the Professional Code of Conduct for External Group Limited and held directly, indirectly or Limited against liability incurred in, or arising Auditors is set out in Financial Statements 3. beneficially by Directors is the same as set out of, the conduct of the business of BHP out in the table in 'Ordinary shareholdings or the discharge of the duties of the Officer. No current officer of BHP has held the role and transactions' in the Remuneration Report The Directors named in 2.1 of the Directors' of director or partner of the Group's current 5.4. Where applicable, the information Report, the Company Secretaries and other external auditor. includes shares held in the name of a spouse, Officers of BHP Group Limited have the benefit superannuation fund, nominee and/or other of this requirement, as do individuals who 9. Non-audit services controlled entities. formerly held one of those positions. For information on the non-audit services All Directors have met the minimum In accordance with this requirement, BHP Group undertaken by BHP's External Auditor, including shareholding requirement under their Terms Limited has entered into Deeds of Indemnity, the amounts paid for non-audit services, refer of Appointment. Access and Insurance (Deeds of Indemnity) to Financial Statements note 34 'Auditor's with its Directors. remuneration'. All non-audit services were As at the date of this Directors' Report, Mike Henry held: We have a policy that BHP will, as a general approved in accordance with the process set rule, support and hold harmless an employee, out in the Policy on Provision of Audit and Other - (either directly, indirectly or beneficially) Services by the External Auditor. No non-audit including an employee appointed as a Director 521,592 shares in BHP Group Limited services were carried out that were specifically of a subsidiary who, while acting in good faith, - rights and options over 978,790 shares incurs personal liability to others as a result of excluded by the Policy on Provision of Audit in BHP Group Limited working for BHP. and Other Services by the External Auditor. Based on advice provided by the Risk and Where applicable, the above information In addition, as part of the arrangements to Audit Committee, the Directors have formed includes shares held in the name of a spouse, effect the demerger of South32, we agreed to the view that the provision of non-audit services superannuation fund, nominee and/or other indemnify certain former Officers of BHP who is compatible with the general standard of controlled entities. transitioned to South32 from certain claims and independence for auditors, and that the nature We have not made available to any Directors liabilities incurred in their capacity as Directors or of non-audit services means that auditor any interest in a registered scheme. Officers of South32. independence was not compromised. Executive Management Personnel The terms of engagement for certain services Interests held by members of the Executive KMP include that we must compensate and reimburse under employee equity plans as at 30 June 2022 EY for, and protect EY against, any loss, are set out in the tables contained in the 'Equity damage, expense, or liability incurred by EY awards' section in the Remuneration Report 5.2. in respect of third-party claims arising from BHP Appendix 4E 2022 89

Directors' Report continued The reason for this view is that the objectivity 13. Performance in and independence of the External Auditor are relation to environmental safeguarded through restrictions on the provision of these services with some services prohibited regulation from being undertaken. For more information about our policy BHP seeks to be compliant with all applicable in relation to the provision of non-audit environmental laws and regulations relevant services by the external auditor refer to to its operations. We monitor compliance on a 7.2 'External audit and financial reporting' regular basis, including through external and of our Corporate Governance Statement internal means, to minimise the risk of non-to be released in September 2022. compliance. 10. Exploration, research For more information on BHP's performance in relation to health, and development safety and the environment refer to OFR 7.4, 7.6 and 7.15. Companies within the Group carry out exploration and research and development For the purposes of section 299 (1)(f) of the necessary to support their activities. Australian Corporations Act 2001, in FY2022 Details are provided in OFR 5 'Our assets', OFR BHP was levied four fines in relation to 10 'Performance by commodity' and Resources environmental laws and regulations at our and Reserves in the Annual Report to be operated assets, the total amount payable released in September 2022. being US$22,514. 11. ASIC Instrument 14. Additional information 2016/191 BHP Group Limited has a branch registered in BHP Group Limited is an entity to which the United Kingdom. The Group, through various Australian Securities and Investments subsidiaries, has also established branches in a Commission (ASIC) Corporations (Rounding number of other countries. in Financial/Directors' Reports) Instrument The Directors' Report is approved in accordance 2016/191 dated 24 March 2016 applies. with a resolution of the Board. 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 Ken MacKenzie Mike Henry accordance with ASIC Instrument 2016/191. Chair Chief Executive Officer 12. Proceedings on 16 August 2022 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. 90 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary In this section: Remuneration Committee Chair letter to shareholders 92 4 Remuneration for Non-executive Directors 104 1 Remuneration governance 94 4.1 Remuneration framework 104 2 Remuneration framework 95 4.2 Non-executive Directors' remuneration in FY2023 105 2.1 How the remuneration framework is set 95 5 Statutory KMP remuneration and other disclosures 106 2.2 Remuneration framework operation 95 5.1 KMP remuneration table 106 2.3 Potential remuneration outcomes 97 5.2 Equity awards 107 3 Remuneration for the CEO and other Executive KMP 98 5.3 Estimated value range of equity awards 108 3.1 FY2022 remuneration received by the CEO 98 5.4 Ordinary share holdings and transactions 108 3.2 FY2022 CDP performance outcomes 99 5.5 Prohibition on hedging of BHP shares and 109 3.3 FY2022 LTIP performance outcomes 102 equity instruments 3.4 Overarching discretion and vesting underpin 102 5.6 Share ownership guidelines and the MSR 109 3.5 Sign-on performance shares 103 5.7 Transactions with KMP 109 3.6 LTIP allocated during FY2022 103 3.7 FY2023 remuneration for the CEO and other 103 Executive KMP Abbreviation Item Abbreviation Item AGM Annual General Meeting KMP Key Management Personnel CDP Cash and Deferred Plan LTIP Long-Term Incentive Plan CEO Chief Executive Officer MAP Management Award Plan DEP Dividend Equivalent Payment 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 BHP Appendix 4E 2022 91

Remuneration Report Christine O'Reilly Chair, Remuneration Committee Dear Shareholders, competitive to attract, motivate and retain key communities. Despite the challenges that the talented executives and is consistent with the COVID-19 pandemic continues to present, in I am pleased to introduce BHP's Remuneration global market. FY2022 BHP continued its approach to not Report for the financial year to 30 June 2022. furlough any employees, did not seek any During FY2022, the Remuneration Committee The majority of the CEO's remuneration government assistance, and did not raise (Committee) continued its focus on achieving package continues to be delivered in BHP additional equity. In addition, BHP's safe and remuneration outcomes that fairly reflect the equity, not in cash, and the CEO's remuneration reliable operational performance through this performance of BHP and the contribution is deliberately tied to the performance of the year, together with strong profitability, enabled of our employees, and which are aligned business. In addition, the CEO is required to the Board to announce record dividends for to the interests of shareholders and other meet a MSR of five times pre-tax base salary FY2022. This continues the delivery of strong key stakeholders. and this applies for two years post-retirement. and consistent returns to shareholders. This ensures that the CEO's remuneration is Our approach and framework aligned to the experience of BHP's shareholders. FY2022 CDP Our Charter sets out our values upon As at the date of this Report, the CEO's BHP The CDP scorecard used to assess Mike which the Committee places great weight shareholding is in excess of his MSR. Henry's annual performance comprises in the determination of performance-based Business performance stretching performance measures, including remuneration outcomes for BHP executives. HSEC, financial and individual performance Our Charter places health and safety at the I am pleased to say BHP's performance elements. For FY2022, the Committee forefront of our values while setting out our for FY2022 has been underpinned by safe, has assessed the CEO's performance and purpose, our strategy and how we measure reliable operations and firm demand for our determined a CDP outcome of 96 per cent success. The Committee aims to support our commodities. We completed another year against a target of 100 per cent (and 64 per cent executives to take a long-term approach to fatality free and we are unwavering in our effort of the maximum). decision-making in order to build a sustainable to improve safety, including the elimination of and value-adding business. sexual harassment, racism and bullying. For the HSEC element, the outcome took into account BHP's strong HSEC performance The Committee is focused on a remuneration We delivered reliable operational performance during the year, with no fatalities recorded, the framework and approach that supports the at Western Australia Iron Ore, with record sales strong progress against our Fatality Elimination Group's strategy and enables us to attract, for a third consecutive year and the South Flank Program and delivery of our cultural heritage retain and motivate our executives located in project ramp up ahead of schedule. In copper, commitments. This year we have also made different geographies. This is critical to delivering Escondida in Chile achieved record material progress on the implementation of controls for the best outcomes for all BHP stakeholders. mined and near-record concentrator throughput, sexual harassment, although there remains As BHP is a global organisation, the Committee while Olympic Dam in South Australia performed more to be done. We also saw strong progress is also mindful of navigating the priorities and strongly in the fourth quarter after planned against our climate change targets, and our expectations of multiple jurisdictions. smelter maintenance. Queensland metallurgical progress in the management of priority tailings coal ended the year with strong underlying At the 2021 AGMs, we received strong support storage facilities was pleasing. The CDP performance in the face of significant for our remuneration framework and outcomes, outcome for the HSEC measures was 31 per wet weather. with over 97 per cent voting in favour of the cent out of a target of 25 per cent. Remuneration Report. This means that over We have made strong progress on actions Our financial performance was strong, the past five years we have received an required to meet our commitments to reduce and during FY2022 shareholders have average of approximately 96 per cent support. operational GHG emissions, which are down again benefitted through record dividends. The Committee and the Board continue to by 15 per cent since FY2017. We have further However, after fully eliminating the positive incorporate shareholder feedback into their progressed our emission reduction partnerships impacts of commodity prices during the year, approach to remuneration. with three major steelmakers in China and Japan operating performance at our assets was and we also entered a new partnership with a FY2022 represents the third year of operation below the challenging internal targets set at fourth steelmaker in South Korea. The combined of our revised remuneration framework and the commencement of the year. This is in part output of these four steelmakers equates to we believe the framework is continuing to due to higher than expected unplanned costs around 12 per cent of global steel production. serve stakeholders well. The key changes to and other impacts of the COVID-19 pandemic, variable remuneration that took effect from Our US$5.7 billion Jansen potash project in which flowed through into CDP outcomes 1 July 2019 for the CEO were to significantly Canada is tracking to plan and opportunities to without moderation for FY2022. This is a reduce the LTIP grant size from 400 per cent of bring forward first potash production at Jansen similar approach that was applied in FY2021 base salary (on a face value basis) to 200 per continue to be assessed. In addition, during and FY2020 and has the effect of reducing the cent, and a rebalancing to a CDP award with a FY2022, we merged our Petroleum business remuneration outcomes for executives. The CDP long-term focus. The CDP outcome is delivered with Woodside, completed the sales of our outcomes for the financial measure was 40 per one-third as a cash award, with two-thirds interests in BMC and Cerrejón, and following a cent out of a target of 50 per cent. delivered in equity that is deferred equally for strategic review decided to retain New South Finally, from a personal performance two-year and five-year periods. This structure Wales Energy Coal. As a consequence, we will perspective, the Committee considered Mike aligns participants' incentive remuneration seek approvals to continue mining until 2030. Henry's performance against his individual with performance over the short, medium and We also unified our corporate structure, and measures. These included projects and long term. added to our global options in copper and nickel. initiatives in respect of social value (long We continue to benchmark the CEO and other COVID-19 continued to impact in FY2022, term growth in value and returns for all executives' remuneration against CEO and particularly in the areas of labour and supply stakeholders), people (right people, right skills, executive roles in other global companies of chain constraints. We remain vigilant with coming together in the right way to support similar complexity, size, reach and industry. continued social distancing and hygiene exceptional performance), performance (material This detailed benchmarking ensures BHP's practices, and other additional protocols as improvement in the system that supports executive remuneration framework remains appropriate to protect our workforce and exceptional performance) and portfolio (material 92 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary progress on our strategic objectives to create As shareholders will recall, one of the key More information on the 2017 LTIP vesting a portfolio that will set BHP up for the next elements of our revised remuneration framework outcome, including the five-year holistic 20 years). The Committee considered Mike's was to reduce the weighting of future LTIP business review covering HSEC performance, performance against his individual objectives grants in the overall CEO remuneration profitability, cash flow, balance sheet health, met expectations and warranted an outcome package from FY2020. Pre-existing grants returns to shareholders, corporate governance aligned with the target of 25 per cent. remained on foot and their vesting would be and conduct, is included in 3.3 LTIP performance determined on the basis of existing service and outcomes and 3.4 Overarching discretion and The CDP scorecard outcomes for other performance conditions. vesting underpin. Executive KMP and the short-term incentive pool applicable to the majority of BHP employees The value of the vested 2017 LTIP award is More information on the overall remuneration below the ELT level, were, like the CEO, slightly higher than the value of the award at the time it outcomes for the CEO for the year, and how below the 100 per cent target. was granted due to the increase in share price the outcomes are aligned to performance during the five-year vesting period and strong during FY2022, is provided in 3.1 FY2022 2017 LTIP award dividends. In terms of value realised, 44 per cent Remuneration received by the CEO. The vesting outcome for the 2017 LTIP award is due to the value at the time the awards were Having considered the overall remuneration was 100 per cent. The LTIP performance granted and 56 per cent is due to share price outcomes for the CEO carefully, as set out condition is relative TSR and BHP outperformed appreciation and dividends. This reflects the above and in 3.1, the Committee concluded both the sector peer group and the MSCI experience of shareholders over the period. it was a fair reflection of performance and the World Index. This level of vesting is aligned experience of shareholders, and the application Consistent with its normal practice, in with the projected vesting outcome that of any downwards discretion was not warranted. considering vesting, the Board and Committee was communicated to shareholders in the have also conducted a holistic review of Remuneration Report at the time the changes to business performance over the five years since our remuneration framework were approved by the award was granted to ensure this level of shareholders at the 2019 AGMs. vesting was appropriate. The table below outlines the level of vesting each year from 2009 to 2022, together with the vesting outcomes projected in 2019. LTIP vesting 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 0% 0% 0% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Vesting year Actual vesting Discretion used Projected vesting FY2023 remuneration external market demand for senior executive remuneration (pension contributions, benefits, talent. The Committee considers the increase CDP and LTIP) remain unchanged and, where For FY2023, the Committee determined that modest in this context, as well as being below relevant, as percentages of base salary. the CEO's base salary would increase by 3 per the median salary increase applied for other A summary of the CEO's arrangements for cent, effective 1 September 2022. This was BHP employees of approximately 4 per cent. FY2023 is set out below. assessed as appropriate having conducted Other components of the CEO's total target updated benchmarking and considered the Fixed remuneration CDP LTIP - Base salary US$1.750 million per annum, an - Target cash award of 80% of base salary - The LTIP grant is based on a face value of 200% increase of 3% from 1 September 2022. (maximum 120%). of base salary. - Pension contribution 10% of base salary. - Plus two awards of deferred shares each of - Our LTIP awards have rigorous relative TSR equivalent value to the cash award, vesting in performance hurdles measured over five years. two and five years, respectively. - Three performance categories: - HSEC - 25% - Financial - 50% - Individual - 25% BHP Appendix 4E 2022 93

Remuneration Report continued The Committee has also reviewed the base Base fee levels for Non-executive Directors We deliberately align our executive remuneration salaries and total target remuneration packages will also remain unchanged. The fees of with performance, with a significant component for other Executive KMP. The Committee Non-executive Directors were also reduced of possible remuneration structured as variable determined they would also increase by 3 per on 1 July 2015 by approximately 6 per cent, pay. We are confident that the outcomes this cent, effective 1 September 2022. An additional from US$0.170 million to US$0.160 million year are consistent with our long held approach increase has been determined for Ragnar Udd per annum. of remuneration outcomes reflecting the reflecting his performance and development performance of BHP and the experience of our In FY2022, BHP undertook a series of major in role (for more information regarding base shareholders. Given our critical need to attract, transactions. As a consequence, modest fees salaries for FY2023 refer to 3.7 FY2023 motivate and retain our executives in order to were paid to certain Non-executive Directors for remuneration for the CEO and other Executive progress our strategic objectives and deliver the additional or extra services performed in FY2022 KMP). Other aspects of other Executive KMP best outcomes for all BHP stakeholders, this is a in connection with major transactions undertaken remuneration arrangements remain unchanged. pleasing result for all concerned. by the Group. Remuneration outcomes for We look forward to ongoing dialogue with and the Chair and Non-executive Summary the support of BHP's shareholders. As always, Directors This year the COVID-19 pandemic continued we welcome your feedback and comments on to impact not only BHP, but our customers, any aspect of this Report. Fees for the Chair and Non-executive Directors suppliers, governments, employees, families are reviewed annually and are benchmarked and communities across the world. On behalf against peer companies. No changes to the of the Committee, I would like to recognise the Chair's fee will be made for FY2023. The Chair continued hard work, dedication and sacrifices fee has remained unchanged since 1 July 2017. Christine O'Reilly of our employees. Through their steadfast In 2017, a decision was made to reduce the Chair, Remuneration Committee commitment, they have enabled BHP to Chair's annual fee by approximately 8 per cent generate strong results for all stakeholders and 16 August 2022 from US$0.960 million to US$0.880 million with continued to support their communities. effect from 1 July 2017. This followed an earlier reduction on 1 July 2015 of approximately 13 per cent from US$1.100 million to US$0.960 million. 1 Remuneration governance Board oversight 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 established the Committee to assist it in making such decisions. The Committee is comprised solely of Non-executive Directors, all of whom are independent. The Committee has extensive access to members of senior management and regularly invites them 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 also draw on services from a range of external sources, including independent remuneration advisers. Remuneration Committee The activities of the Committee are governed by its Terms of Reference which is available at bhp.com. The current members of the Committee are: Christine O'Reilly (Chair), Catherine Tanna (member from 4 April 2022) and Dion Weisler. The following present and former Non-executive Directors served as members of the Committee during the year: Gary Goldberg (member to 17 June 2022), Anita Frew (member to 11 November 2021) and Susan Kilsby (member to 11 November 2021). The role and focus of the Committee and details of meeting attendances can be found in 2.2 Directors' Report. Key decisions and activities of the Committee during FY2022 included: - considering and approving remuneration for members of the ELT - setting targets for and reviewing outcomes against performance measures and conditions of relevant incentive plans, including the Committee considering its discretion over FY2022 plan outcomes - reviewing the fee for the BHP Chair, which remains unchanged - considering remuneration and remuneration reporting implications of unification and the merger of the Petroleum business and Woodside - 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 reviews of remuneration by gender and the annual Shareplus enrolment 94 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary 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. PwC has been appointed to act as an independent remuneration adviser and 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 provide any remuneration recommendations in FY2022. KMP for FY2022 This Remuneration Report describes the remuneration policies, practices, outcomes and governance for the KMP of BHP. At BHP, KMP consists of our Board (including the CEO), as well as certain members of our ELT who have authority and responsibility for planning, directing and controlling the activities of the Group directly or indirectly. After due consideration, the Committee determined the KMP for FY2022 comprised all Non-executive Directors and the following Executive KMP: the CEO, the Chief Financial Officer, the President Minerals Australia, the President Minerals Americas and the Senior Executive Officer (i.e. the President Petroleum until 31 May 2022). The following individuals have held their positions and were KMP for the whole of FY2022, unless stated otherwise: - Mike Henry, CEO and Executive Director - Edgar Basto, President Minerals Australia - David Lamont, Chief Financial Officer - Geraldine Slattery, President Petroleum from 1 July 2021 to 31 May 2022 and Senior Executive Officer from 1 June to 30 June 2022 - Ragnar Udd, President Minerals Americas - Non-executive Directors - for details of Non-executive Directors, including dates of appointment or cessation (where relevant), refer to 2.2 Directors' Report. 2 Remuneration framework BHP has an overarching remuneration framework that guides the Committee's decisions and is designed to support our strategy and reinforce our culture and values. 2.1 How the remuneration framework is set The Committee sets the remuneration framework for the Executive KMP, including the CEO. 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 Executive KMP's base salary. The salary increases in locations where our Executive KMP are based are particularly relevant when reviewing their remuneration to ensure that their remuneration also reflects the local economic conditions. The principles that underpin the remuneration framework for Executives are the same as those that apply to other employees, however Executive KMP arrangements have a greater emphasis on and a higher proportion of remuneration that is at risk as performance-related variable pay. The performance measures used to determine variable pay outcomes for the Executive KMP and all other employees are linked to the delivery of our strategy and behaviours that are aligned to Our Charter values. As part of the Board's commitment to good governance, the Committee considers shareholder views and those of the wider community when setting the remuneration framework for the 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 used as input into decision-making by the Board and the Committee in relation to our remuneration framework and its application. The Committee considers that this approach provides a robust mechanism to ensure Directors are aware of matters raised, have a deep understanding of current shareholder views and can formulate frameworks and make decisions as appropriate. We encourage shareholders to make their views known to us by directly contacting our Investor Relations team (contact details available at bhp.com). 2.2 Remuneration framework operation Our approved remuneration policy was adopted by shareholders in 2019 for a three-year period in accordance with UK requirements and following the unification of our corporate structure in early 2022 BHP is no longer required to have our policy approved by shareholders every three years. However, the following table shows the current components of our remuneration framework, which is consistent with the prior approved remuneration policy. Fixed remuneration CDP LTIP Purpose and Market competitive fixed remuneration The CDP encourages and focuses The purpose of the LTIP is to focus link to strategy is paid in order to attract, motivate and executives' efforts for the relevant executive's efforts on the achievement of retain high-quality and experienced financial year on the delivery of the sustainable long-term value creation and executives, and provide appropriate Group's strategic priorities, balancing success of the Group (including appropriate remuneration for these important roles financial and non-financial performance, management of business risks). in the Group. to deliver short, medium and long-term success aligned to our purpose and Our Charter, and to motivate executives to strive to achieve stretch performance objectives. BHP Appendix 4E 2022 95

Remuneration Report continued Fixed remuneration CDP LTIP Remuneration Fixed remuneration comprises Annual variable pay opportunity linked Annual long-term variable pay opportunity components base salary, pension contributions to execution of business strategy. based on grants of five-year performance and link and benefits. A balanced scorecard of short, medium rights designed to align executives' to performance and long-term elements including reward with sustained shareholder wealth Competitive fixed remuneration is HSEC (25% weighting), financial (50% creation in excess of relevant comparator aligned to global complexity, size, weighting) and individual performance group(s), through the relative TSR reach and industry, and reflects measures (25% weighting) are chosen performance condition. executives' responsibilities, location, on the basis that they are expected to skills, performance, qualifications Relative TSR has been chosen as an have a significant short, medium and and experience. appropriate measure as it enables an long-term impact on the success of objective external assessment over a the Group, with appropriate targets for sustained period on a basis that is familiar each measure which will appropriately to shareholders. motivate Executive KMP to achieve outperformance that contributes to the long-term sustainability of the Group and shareholder wealth creation. CDP LTIP Assessment Achievement against each scorecard measure is assessed by Vesting of the LTIP award is dependent on BHP's TSR relative of performance the Committee and the Board, with guidance provided by other to the TSR of relevant comparator group(s) over a five-year relevant Board Committees in respect of HSEC, financial and performance period. other measures, and a CDP award determined. 25% of the award will vest where BHP's TSR is equal to the If performance is below the threshold level for any measure, median TSR of the relevant comparator group(s), as measured no CDP award will be provided in respect of that portion of the over the performance period. Where TSR is below the median, CDP award opportunity. awards will not vest. In the event the Committee does not consider the outcomes Vesting occurs on a sliding scale between the median TSR of that would otherwise apply to be a true reflection of the the relevant comparator group(s) up to a nominated level of performance of the Group or should it consider that TSR outperformance over the relevant comparator group(s), individual performance or other circumstances makes this an as determined by the Committee, above which 100% of the inappropriate outcome, it retains the discretion to not provide award will vest. all or a part of any CDP award. This is an important mitigation Where the TSR performance condition is not met, there is no against the risk of unintended award outcomes. retesting and awards will lapse. The Committee also retains discretion to lapse any portion or all of the award where it considers the vesting outcome is not appropriate given Group or individual performance. This is an important mitigation against the risk of unintended outcomes. Delivery CDP awards are provided as cash and two awards of deferred LTIP awards consist of rights to receive ordinary BHP shares and vesting shares, each of equivalent value to the cash award, vesting in in the future if the performance and service conditions are met. two and five years respectively. Before vesting (or exercise), these rights are not ordinary shares Awards of deferred shares comprise rights to receive ordinary and do not carry entitlements to ordinary dividends or other BHP shares in the future at the end of the deferral periods. shareholder rights; however, a DEP is provided on vested awards. Before the awards vest (or are exercised), these rights are The Committee has a discretion to settle LTIP awards in cash. not ordinary shares and do not carry entitlements to ordinary Vesting of five-year performance rights under the LTIP is dividends or other shareholder rights; however, a DEP is underpinned by a holistic review of performance at the end of provided on vested awards. The Committee has a discretion the five-year performance period, including a review of HSEC to settle CDP awards in cash. performance, profitability, cash flow, balance sheet health, Vesting of five-year deferred shares under the CDP is returns to shareholders, corporate governance and conduct underpinned by a holistic review of performance at the end over the five-year period. of the five-year vesting period, including a review of HSEC performance, profitability, cash flow, balance sheet health, returns to shareholders, corporate governance and conduct over the five-year period. Cessation On cessation of employment, a 'good leaver'1 may receive On cessation of employment, for a 'good leaver'1 their unvested of employment a pro-rated cash award based on performance for that year. LTIP awards generally remain on foot on termination and are pro-For a 'good leaver', their unvested CDP deferred awards rated for the portion of the vesting period served. These awards generally remain on foot (wholly or in part) unless the are eligible for vesting in the ordinary course, subject to any Committee determine otherwise. If the executive is not a 'good applicable performance conditions. If the executive is not a 'good leaver', all unvested CDP deferred awards will lapse. leaver', all unvested LTIP awards will lapse. Malus CDP awards (including cash and deferred share awards) and LTIP awards are subject to the Group's malus and clawback policy and clawback (see below). 1 'Good leaver' treatment may apply where the reason for the cessation of employment with BHP is due to forced early retirement, retrenchment or redundancy, termination by mutual agreement or retirement with the agreement of the Group, or such other circumstances that do not constitute resignation or termination for cause. 96 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary Malus and clawback As has been set out in prior Remuneration Reports, for many years we have had malus and clawback provisions in place. During FY2022, we enhanced our malus and clawback policy covering awards made from 2021 under the CDP and LTIP. This enhanced policy further clarified the circumstances in which the Committee is able to reduce or clawback awards, which include: - an error in the Group's Financial Statements that requires a material downward restatement - performance of a participant, or of the business or of the Group does not justify vesting or where the participant's conduct or performance has been in breach of their employment contract, any laws, rules, codes of conduct or policies applicable to them or the standards reasonably expected of a person in their position - misstatement or misrepresentation of the performance of the company - where any team, business area, member of the Group or profit centre in which the participant works or worked has been found guilty in connection with any regulatory investigation or has been in breach of any laws, rules, codes of conduct or policies applicable to it or the standards reasonably expected of it - an event that has had, or may have a material adverse effect on the value or reputation of any member of the Group - where the Committee determines there has been material damage to the Group's social licence to operate - a catastrophic health, safety, environment or community event or events occurring in any part of the Group - an act, omission or event occurs which constitutes a material failure of risk management or of other operational systems and controls - a participant is found to have contributed to circumstances that give rise to a material loss for any Group Company 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. Service contracts The terms of employment for the CEO and Executive KMP are formalised in their employment contracts. The current contracts of the CEO and Executive KMP are not fixed term. BHP may choose to terminate a contract on up to 12 months' notice. BHP can require an executive to work through the notice period or may terminate the individual's contract immediately by paying base salary plus pension contributions in lieu of the notice period. The CEO and Executive KMP must provide up to 12 months' notice for voluntary resignation. Approach to recruitment and promotion For external candidates that are appointed Executive KMP, the 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 remuneration 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 Executive KMP appointment, any entitlements provided under former arrangements will be honoured and remain on foot according to their existing terms. 2.3 Potential remuneration outcomes The Committee recognises market forces influence remuneration practices and it strongly believes the fundamental driver of remuneration outcomes should be performance. It also believes that overall remuneration should be fair to the individual, and remuneration levels should accurately reflect the CEO's and other Executive KMP's responsibilities and contributions, while aligning with the expectations of our shareholders and 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 business and individual performance that generate sustained shareholder value. Before deciding on the final incentive outcomes for the CEO and other Executive KMP, the Committee first considers the achievement of pre-determined performance conditions. The Committee then applies its overarching discretion to determine what it considers to be a fair and commensurate remuneration level in order to decide if the outcome should be reduced. In this way, the Committee believes it can set a remuneration level for the CEO and other Executive KMP that is sufficient to incentivise and is also fair and commensurate with shareholder expectations and prevailing market conditions. The diagram below provides the scenarios for the potential total remuneration of the CEO and other Executive KMP at different levels of performance. Remuneration mix for the CEO and other Executive KMP Minimum CEO and other Executive KMP Target CEO Target other Executive KMP Maximum CEO Maximum other Executive KMP 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of total remuneration Fixed remuneration CDP (cash) CDP (deferred shares) LTIP BHP Appendix 4E 2022 97

Remuneration Report continued Minimum: consists of fixed remuneration, which comprises base salary, pension contributions (10 per cent of base salary) and other benefits (notional 10 per cent of base salary), details of which are set out in 5.1 KMP remuneration table. 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 in the chart above 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 for the CEO and 175 per cent for other Executive KMP. 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 (in the chart above based on the face value of 200 per cent of base salary for the CEO and 175 per cent for other Executive KMP). The potential impact of future share price movements is not included in the value of deferred CDP awards or LTIP awards. The maximum opportunity represented above is the most that could potentially be paid for each remuneration component. It does not reflect any intention by the Group to award that amount. In determining the maximum remuneration opportunity, the Committee reviews relevant benchmarking data and industry practices and believes the maximum remuneration opportunity is appropriate. 3 Remuneration for the CEO and other Executive KMP 3.1 FY2022 remuneration received by the CEO The table below is a voluntary non-statutory disclosure of the remuneration received by the CEO during FY2022 and FY2021. This table is unaudited and differs from the audited remuneration calculated in accordance with the Australian Accounting Standards (refer to 5.1 KMP remuneration table and in Financial Statements note 25 Employee share ownership plans). The difference between the disclosure in the table below and remuneration calculated in accordance with Australian Accounting Standards relates to the CDP and LTIP. The remuneration calculated in accordance with Australian Accounting Standards require the fair value of the CDP and LTIP to be calculated at the time of grant and to be amortised over the relevant vesting periods regardless of the performance outcome. This may not reflect what the executive receives. In the table below, the CDP and LTIP values relate to the performance outcomes and actual amount received each year under the CDP (i.e. against the CDP scorecard) and the LTIP (i.e. the LTIP vesting outcome). This table is designed to provide greater transparency for shareholders on the remuneration for the CEO during FY2022 and FY2021 as it has a stronger link to performance, with the CDP and LTIP included below representing those amounts that have been received as a consequence of satisfying performance conditions in the relevant financial year. Details of the components of remuneration are contained in 2.2 Remuneration framework operation and the values in the table are explained further in the notes below. US$('000) Base salary Benefits1 Pension2 CDP3 LTIP4 Total Mike Henry FY2022 1,700 168 170 3,917 8,712 14,667 FY2021 1,700 120 170 4,692 7,939 14,621 1 Benefits are non-pensionable and include net movements in leave balances, private family health insurance, spouse business-related travel, car parking, fringe benefits tax and personal tax return preparation in required countries. 2 Mike Henry's FY2022 and FY2021 pension contributions were provided based on 10 per cent of base salary. 3 The values shown are the full CDP value (cash and deferred equity) earned as a consequence of performance during FY2022 and FY2021. The FY2022 CDP award will be provided one-third in cash in September 2022 and two-thirds in deferred equity, with one-third due to vest in FY2025 and one-third due to vest in FY2027 (on the terms of the CDP). The FY2021 CDP award was provided one-third in cash in September 2021 and two-thirds in deferred equity, with one-third due to vest in FY2024 and one-third due to vest in FY2026 (on the terms of the CDP). 4 Mike Henry's LTIP award values for FY2022 and FY2021 (refer below) are based on the full awards he received in 2017 and 2016 respectively when he was President Operations, Minerals Australia (prior to becoming and with no proration applied for time as CEO), and 100 per cent of the awards vesting. For FY2022 the LTIP award value is calculated on the average share price for the month of July 2022 (which will be updated for the actual share price on the vesting date in the 2023 Remuneration Report); whereas the LTIP award value for FY2021 was calculated on the actual share price on the vesting date. A revised remuneration framework took effect from 1 July 2019 and significantly reduced the LTIP grant size for the CEO from 400 per cent of base salary (on a face value basis) to 200 per cent and a rebalancing to a CDP award with a long-term focus. As a result, the remuneration for Mike Henry reported above reflects the transition to this structure and includes the full amounts of the CDP award earned during FY2022 and FY2021 (i.e. irrespective that some elements of the CDP award are deferred) together with the full amounts of the pre-existing LTIP awards vesting at the end of FY2022 and FY2021 which were granted in 2017 and 2016, respectively (i.e. when the LTIP award size was double the current grant size). Had the current remuneration framework been in place when Mike's 2017 and 2016 LTIP awards were granted and a reduced size awarded, the reported LTIP values would have been US$4.356 million for FY2022 and US$3.970 million for FY2021 (instead of US$8.712 million and US$7.939 million in the table above). The reported total remuneration would have therefore been US$10.311 million for FY2022 and US$10.652 million for FY2021 (instead of US$14.667 million and US$14.621 million in the table above). CEO pay ratio The FY2022 CEO pay ratio, calculated using the reported total fixed and variable remuneration above for the CEO, and compared to the median remuneration for all of our employees worldwide, was 123:1 (FY2021 - 130:1). The remuneration calculation for all employees is based on actual earnings for the 12 months to 31 March 2022, 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 remuneration received by the CEO as noted in the table above. The FY2022 ratio of 123:1 at the median compared to the FY2021 ratio of 130:1 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. The change from FY2021 to FY2022 is driven by a lower FY2022 CDP outcome of 96 per cent (FY2021: 115 per cent) for the CEO, a higher value of the CEO's vested LTIP award in FY2022 compared to FY2021 and an increase in the median remuneration for all of our employees worldwide. 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. 98 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary 3.2 FY2022 CDP performance outcomes The Board and the Committee assessed the Executive KMP's CDP outcomes in light of the Group's performance in FY2022 and took into account performance against the measures in each Executive KMP's CDP scorecard. For the CEO, the Board and the Committee determined a CDP outcome for FY2022 at 96 per cent against the target of 100 per cent (which represents an outcome of 64 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 outcome for FY2022 is summarised in the following tables, including a narrative description of each performance measure and the CEO's level of achievement, as determined by the 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). Summary of outcomes for the CEO Weighting Percentage outcome Performance measure for FY2022 Threshold Target Maximum Mike Henry HSEC 25% 31% Financial 50% 40% Individual 25% 25% Total 100% 96% HSEC The HSEC targets for the CEO are aligned to the Group's 2030 public sustainability goals. As it has done for several years, when assessing HSEC performance against the scorecard targets, the Committee seeks guidance from the Sustainability Committee. The Committee has taken a holistic view of Group performance in critical areas, including considering any additional matters outside the scorecard targets that the Sustainability Committee has provided and considers relevant. The performance commentary below is provided against the HSEC scorecard targets, which 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 Between target health, safety (including fatalities), FY2022 at operated assets. and maximum. environment or community events - In addition, for a maximum outcome to be awarded, strong progress was during the year. required on the development and implementation of controls in relation to the Fatality Elimination Program, sexual harassment and cultural heritage, and this was achieved in relation to the Fatality Elimination Program and cultural heritage for FY2022. While we continued to make progress on the implementation of our actions to eliminate sexual harassment during FY2022, we have more to do in FY2023. Climate change Reported GHG emissions - For FY2022, we improved on our operational GHG emissions Between target in FY2022 are below the target of 14.6Mt, with an outcome of 12.5Mt1, which was greater and maximum. FY2017 level. than 10% below the target (i.e. required for maximum). A majority of planned - Each region presented 90% of GHG reduction projects schedules decarbonisation projects are and adaptation plans, updated for material changes, which were presented for tollgates and incorporated in the planning process. The completion of early stage all asset adaptation plans development studies that contributed to the Group's medium term are updated. target and financial and economic evaluation of physical climate Work undertaken as planned change risks and adaptation measures (i.e. both required for under partnerships with maximum) was largely completed, with work continuing into FY2023. - During the year, we commenced Phase 1 work for each of the three strategic customers in the strategic Memorandum of Understandings (MOUs) signed with steel steel sector established in customers in FY2021 (China Baowu (China), JFE Steel Corporation FY2021, one more partnership (Japan) and HBIS Limited (China)), including the commencement formalised, and a review of and delivery of work plans for each partnership. An additional Scope 3 goals and estimation steelmaking partnership MOU was signed with POSCO (South methodologies completed. Korea) in October 2021, a new customer partnership was signed focussed on plant trials with Zenith Steel (China), and a review of BHP Scope 3 goals and methodology was completed. An industrial scale sinter plant emission reduction trial (i.e. required for maximum) was commenced with Zenith Steel in May 2022 relating to the optimisation stage of steel decarbonisation. Management of All priority TSFs are assessed - All priority TSFs are within appetite based on key risk indicator Target. priority tailings based on key risk indicator data, data or continued operation outside appetite is approved with storage facilities and are either within appetite remediation progressing to plan. (TSFs) or continued operation outside - We have continued improving our key risk indicator performance appetite is approved with with 85% of all key risk indicators for priority TSFs rated either on remediation progressing to plan. target or less risk being taken than target, against a target of 85% and 90% required for maximum. The outcome against the HSEC measure for FY2022 was 31 per cent out of the target of 25 per cent. 1 As reported to the Sustainability Committee and Remuneration Committee meetings in early August 2022 and considered for the purposes of determining FY2022 CDP outcomes. The GHG emissions for FY2022 are subject to third-party verification. BHP Appendix 4E 2022 99

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 measure 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 Committee reviews each exceptional item to assess if it should be included in the result when determining 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 (from the levels assumed in setting the targets) 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. As it has done for several years, the Committee seeks guidance each year from the Risk and Audit Committee when assessing financial performance against scorecard targets. Financial Measure measure Scorecard targets Performance against scorecard targets outcome ROCE For FY2022, the target for ROCE was 38.1%, with a ROCE of 48.7% was reported by BHP for FY2022. Below threshold of 33.5% and a maximum of 42.0%. Adjusted for the factors outlined below, ROCE is 36.3%, target. which is below target. The following adjustments were Achievement of the ROCE target will result in a target made to ensure the outcomes appropriately reflect the CDP outcome. The ROCE target considers the upside performance of management for the year: opportunities and downside risks inherent in BHP's businesses, and is an outcome that the Committee - The full elimination of the impacts of positive movements believes would be a level of performance that shareholders in commodities prices and exchange rates decreased would view positively. The maximum and threshold are ROCE by 6.9 percentage points. an appropriate range of ROCE outcomes, given the - Adjustments for other material items made to ensure upside opportunities and downside risks, that represent the outcomes reflect the performance of management an upper limit of stretch outperformance that would for the year decreased ROCE by 5.5 percentage points. represent the maximum CDP award, and a lower limit of This was mainly due to the elimination of the positive underperformance below which no CDP award should effect on reported ROCE outcomes of lower depreciation be made. and lower asset values in the closing balance sheet due The performance range around target is subject to a greater to the merger of the Petroleum business with Woodside level of downside risk than there is upside opportunity, and the sale of our interest in BMC. This downwards mainly due to physical and regulatory asset constraints. adjustment was necessary to ensure the basis of the Accordingly, the range between threshold and target is ROCE outcome for CDP purposes was the same as the somewhat greater than that between target and maximum. basis upon which Petroleum and our interest in BMC For maximum, the Committee takes care not to create were included in the ROCE target for FY2022. leveraged incentives that encourage executives to push for - Having reviewed the FY2022 exceptional items (as short-term performance that goes beyond our risk appetite described in Financial Statements note 3 Exceptional and current operational capacity. items), the Committee determined these should not be considered for the purposes of determining the FY2022 The Committee retains, and has a track record of applying, ROCE CDP outcome and that no further action was downward discretion (but not upwards discretion) to ensure required in respect of exceptional items. the CDP outcome is appropriately aligned with the overall performance of the Group for the year, and is fair and The key drivers of the FY2022 ROCE outcome of 36.3% equitable to management and shareholders. being below the target for FY2022 of 38.1% set at the commencement of the year were: - In Minerals Australia, production volumes were lower than expected mainly driven by labour and supply constraints across most assets associated with COVID-19, delays in the ramp up of South Flank at Western Australian Iron Ore, labour availability issues and interrupted autonomous haulage rollout at BMA, and the longer than planned duration of the smelter maintenance campaign at Olympic Dam. In addition, input prices were higher across all assets. - In Minerals Americas, in addition to unplanned maintenance and higher input prices at all assets, production volumes were impacted by lower than expected recoveries at Pampa Norte due to plant design issues related to the Spence Growth Option and higher clay content, and lower than expected copper concentrator feed grade at Escondida. - In Petroleum, despite achieving planned production, sales volumes were lower than expected due to unfavourable timing, partly offset by better than expected cost performance. The outcome against the ROCE measure for FY2022 was 40 per cent out of the target of 50 per cent. 100 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary 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 FY2022 included 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 specified by the Board, as set out in the table below. Individual Measure measures Individual scorecard targets Performance against scorecard targets outcome Social value Deliver a successful Say on Climate outcome at the - The Climate Transition Action Plan / Say on Climate Target. 2021 AGMs. was successfully approved at the 2021 AGMs with 85% of votes in favour. Deliver an external update on BHP's embedment and - A Social Value Framework (SVF) was developed measurement of Social Value. and approved by the Board in October 2021 and subsequently deployed across BHP. In June 2022, the SVF was presented to our workforce as well as externally via an investor roundtable, and both internal and external engagements were received positively. People Increase in female participation by three percentage points. - Female participation increased in FY2022 by 2.5 Below percentage points to 32.3% at 30 June 2022, target. Engagement and Perception Survey (EPS) improvement compared to 29.8% at 30 June 2021. survey on survey over the year and substantively improve - While most of our people continue to feel safe, lower performing teams. engaged and enabled, our EPS results declined marginally in FY2022. The EPS results of lower performing teams were, on average, similar in FY2022 compared to the prior year, even though a number of lower performing teams did show improvement. Performance >90% of BHP Operating System (BOS) deployments on - 94% of BOS deployments are on track according Slightly track, Operational Excellence Indicator (OEI) > 40 at 75% to plan. 88% of BOS sites at the end of deployment above of sites at end of deployment, and > 75% improving OEI achieved an OEI score above the target of 40 (with target. improving assessment-on-assessment for other sites. an average OEI score of 43). 91% of sites already in deployment recorded an assessment-on-assessment Enable the data strategy and associated value creation improvement over FY2022. through transforming data accuracy, consistency - The data strategy has been reinforced to enable value and access. creation through transformation of data accuracy, consistency and cloud-native access. We have also established a data analytics operating model which retains capabilities in the assets and functions whilst enabling standards and tool replication across the Group to remove duplication, and migrated 1SAP and an additional 78 applications to the cloud to unlock enhanced performance and enhance cybersecurity. Portfolio Progress the strategic review activities with respect to - We made strong progress on strategic review activities Slightly Petroleum, our interest in BMC and New South Wales as approved by the Board, including the merger of our above Energy Coal as approved by the Board. Petroleum business with Woodside (completed in June target. 2022), and the divestments of our interests in Cerrejón Additional nickel and copper search spaces captured. (completed in January 2022) and BMC (completed in Continued maturation of the innovation and venture May 2022). In June 2022, we announced that we will business units. retain New South Wales Energy Coal and will seek approval to continue mining through to cessation of operations in FY2030. - While we secured additional investments in nickel and copper projects, the public offer made for Noront Resources (nickel) was unsuccessful. - Our pursuit of innovation has progressed, with 60 innovation concepts generated for evaluation in FY2022. Strong progress also continues across ventures, with 9 investments executed during FY2022, while ventures also supported market intelligence in our strategic evaluations of new products and processes. Overall, it was considered the performance of the CEO against the individual measures for FY2022 had met expectations and warranted an outcome aligned to the target of 25 per cent. The CDP performance measures for other Executive KMP for FY2022 are similar to those of the CEO outlined above. However, for the other Executive KMP, the weighting of each performance measure will vary to reflect the focus required from each Executive KMP role. As with the CEO, 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, were considered to have met expectations and warranted an outcome aligned with target. BHP Appendix 4E 2022 101

Remuneration Report continued The diagram below represents the FY2022 CDP weightings and outcomes against the original scorecard for other Executive KMP. Other Executive Other Executive KMP with region KMP without region Performance categories responsibility responsibility Threshold Target Maximum HSEC Group 12.5% 25% Region 12.5% 0% Financial Group 25% 50% Region 25% 0% Individual 25% 25% BHP Minerals Australia Minerals America Petroleum 3.3 FY2022 LTIP performance outcomes The five-year performance period for the 2017 LTIP award for relevant Executive KMP ended on 30 June 2022. Vesting is subject to achievement of the relative TSR performance conditions and any discretion applied by the Committee (refer to 3.4 Overarching discretion and vesting underpin). For the 2017 LTIP award to vest in full, BHP's TSR over the performance period from 1 July 2017 to 30 June 2022 must be at or exceed the 80th percentile of the Sector Group TSR and the World TSR. 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 181.7 per cent over the five-year period from 1 July 2017 to 30 June 2022. This is above the 80th percentile of the Sector Group TSR of positive 168.7 per cent and above the 80th percentile of the World TSR of positive 128.8 per cent over the same period. This level of performance results in 100 per cent vesting for the 2017 LTIP award. The value of the CEO's vested 2017 LTIP award has been reported in 3.1 FY2022 remuneration received by the CEO. The graph below shows BHP's performance relative to comparator groups. BHP vs. Sector Group and MSCI World TSR over 2017 LTIP cycle TSR since 1 July 2017 (%) 200% 150% 100% 50% 0% -50% 2017 2018 2019 2020 2021 2022 Years ended 30 June BHP TSR Sector Group 50th percentile TSR Sector Group 80th percentile TSR World (MSCI) 50th percentile TSR World (MSCI) 80th percentile TSR The value of the vested 2017 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, 44 per cent of the value realised is due to the value at the time the awards were granted and 56 per cent 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. 3.4 Overarching discretion and vesting underpin The rules of the CDP and LTIP and the terms and conditions of the awards provide the Committee with an overarching discretion to reduce the number of awards that will vest, notwithstanding that the performance condition or the relevant service conditions have been met. This overarching discretion is a holistic, qualitative judgement and is applied as an underpin test before final vesting is confirmed. It 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 CDP and LTIP 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 FY2018 to FY2022, 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. Firstly, in respect of the vesting of CDP two-year deferred shares (granted in November 2020 in respect of performance in FY2020), the Committee chose not to exercise its discretion and allowed the CDP awards to vest in full. Secondly, in respect of the vesting of the 2017 LTIP five-year performance shares, the formulaic outcome of the 2017 LTIP was 100 per cent vesting. Having undertaken the 'look back' review described above, 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 Committee in respect of the LTIP and the overarching discretion may only reduce the number of awards that may vest. 102 BHP Appendix 4E 2022

and Operating Financial Financial Review Governance Statements Glossary 3.5 Sign-on performance shares David Lamont joined BHP as Chief Financial Officer on 1 December 2020. David left his former employer, CSL Limited (CSL), 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 were provided in accordance with BHP's remuneration framework. In accordance with that policy, remuneration that David forfeited or did not receive as a consequence of leaving CSL to join BHP was partly replaced with 86,279 performance shares (i.e. 77,000 awards granted plus 9,279 additional uplift awards allocated as part of the merger of the Petroleum business with Woodside) and the Committee determined appropriate service and performance conditions. The performance conditions were a holistic assessment of underlying financial performance of BHP and personal performance of David during the vesting period. At the time of grant, the target was 80 per cent vesting of awards, with a maximum of 100 per cent and a minimum of zero. The service condition was satisfied and the Committee assessed the performance condition over the relevant performance period (1 December 2020 to 30 June 2022). The Committee considered BHP's TSR, the CDP finance measure outcomes and David's personal performance (with guidance on this assessment from the CEO). In particular, the Committee considered the following information over the relevant period: - BHP's relative TSR performance was slightly above the weighted median of BHP's sector peers - BHP's financial performance, as measured by the CDP finance measure outcomes, was slightly below target - the CEO's view that David had performed in line with expectations in his role The Committee exercised its discretion and determined to vest 80 per cent or 69,023 of the performance shares. The awards which will not vest will instead lapse. A holding lock will apply to the vested shares until August 2023, at which time they will be released to David. Should David voluntarily resign or retire during the holding lock period, or be terminated for cause, the shares subject to the holding lock will be forfeited. 3.6 LTIP allocated during FY2022 Following shareholder approval at the 2021 AGMs, 107,183 LTIP awards (in the form of performance rights) were granted to the CEO on 23 November 2021. The face value of the CEO's award was 200 per cent of his base salary of US$1.700 million at the time of grant. The fair value of the awards is ordinarily calculated by multiplying the face value of the award by the fair value factor of 41 per cent (for the current plan design, as determined by the independent adviser to the Committee). The 107,183 LTIP awards for the CEO was determined based on the US$ face value of the LTIP awards of US$3.400 million and calculated using the average share price and US$/A$ exchange rate over the 12 months up to and including 30 June 2021. LTIP awards granted to other Executive KMP during FY2022 were calculated on the same basis as described above for the CEO, except that awards for other Executive KMP had a face value of 175 per cent of base salary. In addition to the LTIP terms set out in 2.2 Remuneration framework operation, the Committee has determined the following terms for the 2021 LTIP: Performance period - 1 July 2021 to 30 June 2026 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 (Sector Group TSR) and the MSCI World Index (World TSR) will determine the vesting of 67% and 33% of the award, respectively. - Each company in the sector 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 sector 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 Sector Group TSR or the World 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 Sector Group TSR or the World TSR (as applicable). Vesting occurs on a sliding scale between the weighted 50th and 80th percentiles. Sector peer group - Resources (85%): Anglo American, Fortescue Metals, Freeport-McMoRan, Glencore, Rio Tinto, Southern Copper, companies1 Teck Resources, Vale. - Oil and gas (15%): Apache, BP, Canadian Natural Res., Chevron, ConocoPhillips, Devon Energy, EOG Resources, ExxonMobil, Occidental Petroleum, Shell, Woodside. 1 From November 2018, CONSOL Energy was removed from the sector comparator group, as due to its internal restructuring it had become a less comparable peer. 3.7 FY2023 remuneration for the CEO and other Executive KMP The remuneration for the CEO and other Executive KMP in FY2023 will be in accordance with 2.2 Remuneration framework operation. Base salary review Base salaries are 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 FY2021 or FY2022. The Board and the Committee have assessed the CEO and other Executive KMP's performance and determined that, as of 1 September 2022: - The CEO's and other Executive KMP's base salaries will increase by 3 per cent following a review by the Committee of the external market demand for senior executive talent and updated benchmarking. The Committee considers the increases modest in this context, as well as being below the median salary increase applied for other BHP employees of approximately 4 per cent. - In addition, having reviewed Ragnar Udd's performance and development in role since appointment in November 2020, including the dynamic context and growing importance of the Americas region to the Group, the Committee provided an additional increase of 6 per cent increase in base salary (i.e. 9 per cent in total). The CEO's and other Executive KMP's base salaries will be kept under review in future years to ensure they remain competitive. BHP Appendix 4E 2022 103

Remuneration Report continued FY2023 CDP performance measures For FY2023, the Board and the Committee have set the following CDP scorecard performance measures for the CEO. The weighting of each performance measure and specific individual performance measures will vary for other Executive KMP to reflect the focus required from each of them in their role: Performance categories Weighting Target measures Safety and 25% The following Safety and Sustainability (previously HSEC) performance measures are designed to incentivise achievement of the Sustainability Group's public goals. Significant events (10%): No significant (actual level 4) health, safety (including fatalities), environment or community events during the year. Achievement of sexual harassment and Fatality Implementation Program FY2023 deliverables. Climate change (10%): FY2023 GHG emissions targets met, aligned with progress towards the 2030 medium term target. A majority of planned decarbonisation projects are presented for tollgates or milestones as scheduled. Progress Memorandum of Understanding commitments with steel customers. Indigenous partnerships (5%): Achieve uplift in Indigenous, Traditional Owner and First Nations vendor procurement. Planned progress on Indigenous employment / participation targets. Release revised Global Indigenous Peoples Strategy. Financial 50% ROCE is underlying profit after taxation (excluding after-taxation finance costs and exceptional items) divided by average capital employed. When assessing management's performance, adjustments are made 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 is not disclosed in advance. Individual 25% The CEO's individual measures for FY2023 comprise the 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, people, performance and portfolio. 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 and the Board considers a 25% weighting in the CDP to be appropriate for these important elements. Individual performance measures for other Executive KMP similarly contribute to the delivery of projects and initiatives within the scope of their role and BHP's overall performance. FY2023 LTIP award The maximum face value of the CEO's FY2023 LTIP award under the remuneration framework is US$3.500 million, being 200 per cent of the CEO's base salary at the time of grant. The number of LTIP awards in FY2023 has been determined using the share price and US$/A$ exchange rate over the 12 months up to and including 30 June 2022 (adjusted to eliminate the value of the in-specie dividend distributed in connection with the merger of BHP's Petroleum business with Woodside from the daily BHP Group Limited share prices between 1 July 2021 to 31 May 2022). Based on this, a FY2023 grant of 118,853 LTIP awards is proposed and approval for this LTIP grant will be sought from shareholders at the 2022 AGM. If approved, the award will be granted following the AGM (i.e. in or around November 2022, subject to securities dealing considerations). The FY2023 LTIP award will use the same performance and service conditions as the FY2022 LTIP award, except that the MSCI World Metals and Mining Index will replace the sector group companies comparator group, due to the merger of the Petroleum business with Woodside. Accordingly, the FY2023 LTIP award will use the following comparator groups: the new MSCI World Metals and Mining Index and the existing MSCI World Index, which will determine the vesting of 67 per cent and 33 per cent of the award, respectively. LTIP awards granted to other Executive KMP during FY2023 will be calculated on the same basis as described above for the CEO, except that awards for other Executive KMP will have a maximum face value of 175 per cent of base salary. 4 Remuneration for Non-executive Directors Our remuneration framework for Non-executive Directors aligns with the Australian Securities Exchange Corporate Governance Council's Principles and Recommendations (4th Edition). 4.1 Remuneration framework The following table shows the components for Non-executive Directors' remuneration. Non-executive Directors are not eligible to participate in any CDP or LTIP awards. Fees Benefits Purpose and link Competitive fees are paid in order to attract and retain high- Competitive benefits are paid in order to attract and to strategy quality individuals, and to provide appropriate remuneration for retain high-quality individuals and adequately remunerate the role undertaken. Fees are set at a competitive level based them for the role undertaken, including the considerable on benchmarks and advice provided by external advisers. travel burden. 104 BHP Appendix 4E 2022

and Operating Financial Financial Review Governance Statements Glossary Fees Benefits Remuneration components The Chair is paid a single fee for all responsibilities. Travel allowances are paid on a per-trip basis reflecting Non-executive Directors are paid a base fee and relevant the considerable travel burden imposed on members of committee membership fees. Committee Chairs and the Senior the Board as a consequence of the global nature of the Independent Director are paid an additional fee to reflect their organisation and apply when a Director needs to travel extra responsibilities. internationally to attend a Board meeting or site visits at All fee levels are reviewed annually and any changes are our multiple geographic locations. ordinarily effective from 1 July. As a consequence of our prior dual listed company Fee levels reflect the size and complexity of the Group and structure, Non-executive Directors are required to prepare the geographies in which the Group operates. The economic personal tax returns in Australia and the UK, regardless of environment and the financial performance of the Group are whether they reside in one or neither of those countries. taken into account. Consideration is also given to salary reviews They are accordingly reimbursed for the costs of personal across the rest of the Group. tax return preparation in whichever of the UK and/or Australia is not their place of residence (including payment Where the payment of pension contributions is required by law, of the tax cost associated with the provision of the benefit). these contributions are deducted from the Director's overall fee entitlements. Letters of appointment The Board has adopted a letter of appointment that contains the terms on which Non-executive Directors will be appointed, including the basis upon which they will be indemnified by the Group. The Board has adopted a policy under which all Non-executive Directors must seek re-election at the AGM each year. As a result of requiring re-election each year, Non-executive Directors do not have a fixed term in their letter of appointment. 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. Payments on early termination or loss of office There are no provisions in any of the Non-executive Directors' appointment arrangements for compensation payable on early termination of their directorship. A Non-executive Director may resign on reasonable notice. No payments are made to Non-executive Directors on loss of office. 4.2 Non-executive Directors' remuneration in FY2023 In FY2023, the remuneration for the Non-executive Directors will be paid in accordance with the remuneration framework set out above. 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 FY2023. 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$0.160 million per annum. The below table sets out the annualised total remuneration and total fixed fees for FY2023, which are unchanged from FY2022. Levels of fees and travel allowances for Non-executive Directors (in US$) From 1 July 2022 Base annual fee 160,000 Plus additional fees for: Senior Independent Director 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. BHP Appendix 4E 2022 105

Remuneration Report continued 5 Statutory KMP remuneration and other disclosures 5.1 KMP remuneration table The table below has been prepared in accordance with relevant accounting standards. Remuneration data for KMP are for the periods of FY2021 and FY2022 that they were KMP. More information on the framework and operation of each element of remuneration is provided earlier in 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 Executive KMP including the CEO during FY2022 or FY2021. These amounts are calculated in accordance with accounting standards and are the amortised IFRS fair values at grant date of equity and equity-related instruments that have been granted to the executives. For information on awards that were allocated and vested during FY2022 and FY2021, refer to 5.2 Equity awards. Post-employment Short-term benefits benefits Share-based payments Value Financial Base salary/ Annual cash Non-monetary Other Retirement Value of CDP/ of LTIP US$('000) year Fees1 incentive2 benefits3 benefits4 benefits5 STIP awards2,6 awards6 Total Executive Director Mike Henry FY2022 1,700 1,306 168 - 170 1,890 2,297 7,531 FY2021 1,700 1,564 120 - 170 1,487 2,315 7,356 Other Executive KMP Edgar Basto FY2022 950 646 45 - 95 698 786 3,220 FY2021 950 866 60 - 95 432 839 3,242 Peter Beaven7 FY2021 417 400 39 - 83 876 787 2,602 David Lamont FY2022 950 730 37 300 95 615 1,754 4,481 FY2021 554 510 42 - 55 167 935 2,263 Daniel Malchuk7 FY2021 333 307 23 - 67 765 620 2,115 Geraldine Slattery FY2022 850 700 - 695 128 1,019 856 4,248 FY2021 800 800 25 - 160 777 930 3,492 Ragnar Udd FY2022 850 653 32 - 85 576 676 2,872 FY2021 567 521 49 420 57 190 483 2,287 Non-Executive Directors Terry Bowen FY2022 248 - - 32 15 - - 295 FY2021 219 - - 4 12 - - 235 Malcolm Broomhead FY2022 165 - - 31 12 - - 208 FY2021 195 - - 3 10 - - 208 Ian Cockerill FY2022 233 - - 61 - - - 294 FY2021 220 - - - - - - 220 Xiaoqun Clever8 FY2022 193 - - 18 - - - 211 FY2021 144 - - - - - - 144 Anita Frew9 FY2022 81 - - 2 - - - 83 FY2021 220 - - 2 - - - 222 Gary Goldberg FY2022 301 - - 71 - - - 372 FY2021 246 - - 2 - - - 248 Michelle Hinchliffe8 FY2022 64 - - 30 - - - 94 Susan Kilsby9 FY2022 69 - - 16 - - - 85 FY2021 220 - - 1 - - - 221 Ken MacKenzie FY2022 863 - - 32 17 - - 912 FY2021 864 - - 4 16 - - 884 Lindsay Maxsted9 FY2021 33 - - 3 2 - - 38 John Mogford FY2022 234 - - 17 - - - 251 FY2021 215 - - 2 - - - 217 Christine O'Reilly8 FY2022 276 - - 32 - - - 308 FY2021 162 - - - 9 - - 171 Catherine Tanna8 FY2022 49 - - 30 4 - - 83 Shriti Vadera9 FY2021 74 - - 1 - - - 75 Dion Weisler FY2022 191 - - 32 14 - - 237 FY2021 178 - - 1 9 - - 188 1 Base salaries and fees shown in this table reflect the amounts paid over the 12-month period from 1 July 2021 to 30 June 2022 for each Executive KMP and Non-Executive Director. There were no changes to Executive KMP base salaries during FY2022. The following Non-Executive Directors have received special exertion fees for additional or extra services they performed in FY2022 in connection with major transactions undertaken by the Group: in connection with the unification of BHP's dual listed structure - Gary Goldberg received an additional fee of US$20,000 as Chair of the Transaction Committee and Ian Cockerill and Terry Bowen received US$12,500 each as members of the Transaction Committee; and in connection with the merger of the Petroleum business with Woodside - Christine O'Reilly received an additional fee of US$20,000 as Chair of the Transaction Committee and Terry Bowen and John Mogford received US$12,500 each as members of the Transaction Committee. 2 Annual cash incentive in this table is the cash portion of CDP awards earned in respect of performance during each financial year for each executive. CDP is provided one-third in cash and two-thirds in deferred equity (which are included in the Share-based payments columns of the table). The cash portion of CDP awards is paid to Executive KMP in September of the year following the relevant financial year. The minimum possible value awarded to each individual is nil and the maximum is 360 per cent of base salary (120 per cent in cash and 240 per cent in deferred equity). For FY2022, Executive KMP earned the following CDP awards as a percentage of the maximum (the remaining portion has been forfeited): Mike Henry 64 per cent, Edgar Basto 57 per cent, David Lamont 64 per cent, Geraldine Slattery 69 per cent, and Ragnar Udd 64 per cent. Peter Beaven's and Daniel Malchuk's FY2021 CDP was paid in cash and prorated to reflect the period served until they ceased to be KMP on 30 November 2020 and 31 October 2020 respectively. 3 Non-monetary benefits are non-pensionable and include items such as net leave accruals, private family health insurance, spouse business-related travel, car parking, fringe benefits tax and personal tax return preparation in required countries. 4 Other benefits are non-pensionable and for FY2022 include a sign-on cash award on commencement of employment for David Lamont representing compensation for remuneration that David forfeited or did not receive as a consequence of leaving CSL to join BHP in 2020; an encashment of annual leave entitlements under the US 106 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary Annual Leave policy for Geraldine Slattery, together with a retention award for Geraldine to ensure her services were retained by BHP after the August 2021 announcement of the merger of the Petroleum business with Woodside; and in FY2021, a one-off relocation allowance (with no trailing entitlements) provided to Ragnar Udd relating to his international relocation from Australia to Chile. The majority of the amounts disclosed for benefits for Non-executive Directors are usually travel allowances (amounts of between US$ nil and US$70,000 for FY2022) however, the COVID-19 pandemic restricted Non-executive Director travel during FY2021 and FY2022. For FY2022, amounts of between US$ nil and US$4,000 are included in respect of tax return preparation; and amounts of between US$ nil and US$1,500 are included in respect of the reimbursement of the tax cost associated with the provision of taxable benefits. 5 Retirement benefits for each Executive KMP in FY2021 and FY2022 were 10 per cent of base salary as per the remuneration framework, with the exception of the retirement benefits reported for Geraldine Slattery of 15 per cent of base salary for FY2022 and the retirement benefits reported for Peter Beaven, Daniel Malchuk and Geraldine Slattery of 20 per cent of base salary for FY2021 in accordance with prior remuneration framework. Non-Executive Director fees are inclusive of minimum superannuation contributions of up to 10 per cent of remuneration for FY2022 in accordance with Australian superannuation legislation. No other pension contributions were paid. 6 The IFRS fair value of CDP and LTIP awards is estimated at grant date. Refer to Financial Statements note 25 Employee share ownership plans. 7 The remuneration reported for Peter Beaven and Daniel Malchuk reflects service as Executive KMP up to 30 November 2020 and 31 October 2020, respectively. 8 The FY2021 remuneration for Xiaoqun Clever and Christine O'Reilly relates to part of the year only, as they joined the Board on 1 October 2020 and 12 October 2020 respectively. The FY2022 remuneration for Michelle Hinchliffe and Catherine Tanna relates to part of the year only, as they joined the Board on 1 March 2022 and 4 April 2022 respectively. 9 The FY2022 remuneration for Anita Frew and Susan Kilsby relates to part of the year only, as they retired from the Board on 11 November 2021. The FY2021 remuneration for Lindsay Maxsted and Shriti Vadera relates to part of the year only, as they retired from the Board on 4 September 2020 and 15 October 2020 respectively. 5.2 Equity awards The interests held by Executive KMP under the Group's employee equity plans are set out in the table below. Each equity award is a right to acquire one ordinary share in BHP Group Limited upon satisfaction of the vesting conditions. 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. Approval from BHP's shareholders for the issue of equity awards to the CEO under the CDP and LTIP was obtained under ASX Listing Rule 10.14 at the 2021 AGM. DEP applies to awards provided to Executive KMP under the CDP and LTIP as detailed in 2.2 Remuneration framework operation. No DEP is payable on MAP awards previously provided to Executive KMP. Executive KMP received or will receive awards under the CDP, STIP and LTIP. The terms and conditions of CDP and LTIP awards, including the performance conditions, are described in 2.2 Remuneration framework operation. 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. At 30 Award Market price on date of: Gain on DEP on Date At 1 July June vesting awards awards Award type of grant 2021 Granted Uplift1 Vested Lapsed 2022 date2 Grant3 Vesting4 ('000)5 ('000) Mike Henry CDP 23-Nov-21 - 49,304 - - - 49,304 Aug 26 A$38.05 - - -CDP 23-Nov-21 - 49,304 - - - 49,304 Aug 23 A$38.05 - - -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 - - 18 Aug 21 A$37.24 A$47.70 A$831 A$66 LTIP 23-Nov-21 - 107,183 - - - 107,183 Aug 26 A$38.05 - - -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 - - 18 Aug 21 A$25.98 A$47.70 A$9,176 A$1,634 Edgar Basto CDP 23-Nov-21 - 27,312 3,292 - - 30,604 Aug 26 A$38.05 - - -CDP 23-Nov-21 - 27,312 3,292 - - 30,604 Aug 23 A$38.05 - - -LTIP 23-Nov-21 - 52,409 6,316 - - 58,725 Aug 26 A$38.05 - - -LTIP 20-Oct-20 68,572 - 8,263 - - 76,835 Aug 25 A$35.90 - - -MAP 19-May-20 28,245 - 3,404 - - 31,649 Aug 24 A$35.05 - - -MAP 19-May-20 28,245 - 3,404 - - 31,649 Aug 23 A$35.05 - - -MAP 25-Sep-19 28,245 - 3,404 - - 31,649 Aug 22 A$36.53 - - -MAP 24-Sep-18 27,651 - - 27,651 - - 18 Aug 21 A$33.83 A$47.70 A$1,319 -David Lamont Performance shares 1-Dec-20 77,000 - 9,279 - - 86,279 Aug 22 A$38.56 - - -CDP 23-Nov-21 - 16,072 1,937 - - 18,009 Aug 26 A$38.05 - - -CDP 23-Nov-21 - 16,072 1,937 - - 18,009 Aug 23 A$38.05 - - -LTIP 23-Nov-21 - 52,409 6,316 - - 58,725 Aug 26 A$38.05 - - -LTIP 1-Dec-20 68,572 - 8,263 - - 76,835 Aug 25 A$38.56 - - -Geraldine Slattery CDP 23-Nov-21 - 25,219 3,039 - - 28,258 Aug 26 A$38.05 - - -CDP 23-Nov-21 - 25,219 3,039 - - 28,258 Aug 23 A$38.05 - - -CDP 20-Oct-20 25,490 - 3,072 - - 28,562 Aug 25 A$35.90 - - -CDP 20-Oct-20 25,490 - 3,072 - - 28,562 Aug 22 A$35.90 - - -STIP 20-Nov-19 6,628 - - 6,628 - - 18 Aug 21 A$37.24 A$47.70 A$316 A$25 LTIP 23-Nov-21 - 46,892 5,651 - - 52,543 Aug 26 A$38.05 - - -LTIP 20-Oct-20 54,136 - 6,524 - - 60,660 Aug 25 A$35.90 - - -LTIP 20-Nov-19 104,748 - 12,623 - - 117,371 Aug 24 A$37.24 - - -MAP 21-Feb-19 28,527 - 3,438 - - 31,965 Aug 23 A$34.83 - - -MAP 21-Feb-19 28,527 - 3,438 - - 31,965 Aug 22 A$34.83 - - -MAP 24-Sep-18 28,527 - - 28,527 - - 18 Aug 21 A$33.83 A$47.70 A$1,361 - BHP Appendix 4E 2022 107

Remuneration Report continued At 30 Award Market price on date of: Gain on DEP on Date At 1 July June vesting awards awards Award type of grant 2021 Granted Uplift1 Vested Lapsed 2022 date2 Grant3 Vesting4 ('000)5 ('000) Ragnar Udd CDP 23-Nov-21 - 16,434 1,981 - - 18,415 Aug 26 A$38.05 - - -CDP 23-Nov-21 - 16,434 1,981 - - 18,415 Aug 23 A$38.05 - - -LTIP 23-Nov-21 - 46,892 5,651 - - 52,543 Aug 26 A$38.05 - - -LTIP 2-Nov-20 61,354 - 7,394 - - 68,748 Aug 25 A$33.81 - - -MAP 21-Aug-20 21,231 - 2,559 - - 23,790 Aug 24 A$38.36 - - -MAP 21-Aug-20 21,231 - 2,559 - - 23,790 Aug 23 A$38.36 - - -MAP 25-Sep-19 21,231 - 2,559 - - 23,790 Aug 22 A$36.53 - - -MAP 24-Sep-18 25,565 - - 25,565 - - 18 Aug 21 A$33.83 A$47.70 A$1,219 - 1 Uplift awards granted as a consequence of the merger of the Petroleum business with Woodside. For the CEO shareholder approval for these awards will be sought at the 2022 AGM and following approval these would be granted in or around November 2022. Uplift awards for other Executive KMP were granted on 17 June 2022. 2 Where the vesting date is not yet known, the estimated vesting month is shown. Where awards lapse, the lapse date is shown. If the vesting conditions are met, awards will vest on or as soon as practicable after the first non-prohibited period date occurring after 30 June of the preceding year of vest. The year of vesting is the second (STIP and CDP two-year awards), third (MAP), fourth (MAP) or fifth (MAP, CDP five-year awards and LTIP) financial year after grant. All awards are conditional awards and have no exercise period, exercise price or expiry date; instead ordinary fully paid shares are automatically delivered upon the vesting conditions being met. Where vesting conditions are not met, the conditional awards will immediately lapse. 3 The market price shown is the closing price of BHP shares on the relevant date of grant. No price is payable by the individual to receive a grant of awards. The IFRS fair value of the CDP and LTIP awards granted in FY2022 at the grant date of 23 November 2021 are as follows: CDP - A$38.05 and LTIP - A$18.92. 4 The market price shown is the closing price of BHP shares on the relevant date of vest. 5 The gain on awards is calculated using the market price on date of vesting or exercise (as applicable) less any exercise price payable. The amounts that vested and were lapsed for the awards during FY2022 are as follows: CDP - 100 per cent vested; LTIP - 100 per cent vested; MAP - 100 per cent vested. 5.3 Estimated value range of equity awards The current face value (and estimate of the maximum possible total value) of equity awards allocated during FY2022 and yet to vest are the awards as set out in the previous table multiplied by the current share price of BHP Group Limited. 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 at the date that any particular award vests or is exercised. Five-year share price, dividend and earnings history The table below provides the five-year share price history for BHP Group Limited, history of dividends paid and the Group's earnings. BHP Group Limited FY2022 FY2021 FY2020 FY2019 FY2018 Share price at beginning of year A$48.22 A$35.82 A$41.68 A$33.60 A$23.23 Share price at end of year A$41.25 A$48.57 A$35.82 A$41.16 A$33.91 Dividends paid A$10.181 A$2.07 A$2.13 A$3.082 A$1.24 Attributable profit (US$ million, as reported) 30,900 11,304 7,956 8,306 3,705 1 The FY2022 dividends paid includes A$5.38 in respect of the in-specie dividend associated with the merger of the Petroleum business with Woodside. 2 The FY2019 dividends paid includes A$1.41 in respect of the special dividend associated with the divestment of Onshore US. The highest and lowest closing share price during FY2022 were A$54.06 and A$35.56 respectively. 5.4 Ordinary share holdings and transactions The number of ordinary shares in BHP Group Limited 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. These are ordinary shares held without performance conditions or restrictions and are included in MSR calculations for each individual. Received as Held at Held at 1 July 20211 Purchased remuneration2 Sold 30 June 2022 Mike Henry 395,241 - 245,423 119,072 521,592 Edgar Basto 134,889 - 27,651 32,502 130,038 David Lamont 6,345 - - - 6,345 Geraldine Slattery3,4 100,917 - 35,681 9,366 127,232 Ragnar Udd3 105,816 - 25,565 12,426 118,955 Terry Bowen 11,000 - - - 11,000 Malcolm Broomhead 19,000 - - - 19,000 Xiaoqun Clever 7,000 1,000 - - 8,000 Ian Cockerill3 13,188 1,111 - - 14,299 Anita Frew6 15,000 - - - 15,000 Gary Goldberg4 10,000 2,000 - - 12,000 Michelle Hinchliffe5 - 8,508 - - 8,508 Susan Kilsby6 6,900 - - - 6,900 Ken MacKenzie 52,351 - - - 52,351 John Mogford 13,938 - - - 13,938 Christine O'Reilly3 7,420 2,000 - - 9,420 Catherine Tanna5 10,400 - - - 10,400 Dion Weisler 1,544 6,000 - - 7,544 1 Includes shares 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) prior to unification. 2 Includes DEP in the form of shares on equity awards vesting, where applicable, as disclosed in 5.2 Equity awards. 108 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary 3 The opening balances for Ian Cockerill, Christine O'Reilly, Geraldine Slattery and Ragnar Udd have been adjusted to include an additional 929 shares, 420 shares, 3,592 shares and 398 shares, respectively. 4 The following BHP Group Limited shares were held in the form of American Depositary Shares: 1,892 for Geraldine Slattery and 6,000 for Gary Goldberg. 5 TheopeningbalancesforMichelleHinchliffeandCatherineTannareflecttheirshareholdingsonthedatethateachbecameNon-executiveDirectorsbeing1March2022 and 4 April 2022, respectively. 6 SharesshownasheldbyAnitaFrewandSusanKilsbyat30June2022aretheirbalancesatthedateoftheirretirementfromtheBoardon11November2021. 5.5 Prohibition on hedging of BHP shares and equity instruments The 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, or not held as part of meeting the MSR, may be subject to hedging arrangements or used as collateral, provided that prior consent is obtained. 5.6 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 orsaleoftheemployeeawardsortheunderlyingshareswhethertheMSRissatisfiedatthattimeornot. For FY2022: - TheMSRfortheCEOwasfivetimesannualpre-taxbasesalary.AttheendofFY2022,theCEOmettheMSR. - TheMSRforotherExecutiveKMPwasthreetimesannualpre-taxbasesalary.AttheendofFY2022,theotherExecutiveKMPmettheMSR,except for David Lamont, as he was appointed as Executive KMP on 1 December 2020. - NoExecutiveKMPsoldorpurchasedsharesduringFY2022,otherthansalestosatisfytaxationobligations,apartfromEdgarBasto,whosoldshares in order to fund the purchase of a residential dwelling. Effective1July2020,atwo-yearpost-retirementshareholdingrequirementfortheCEOappliesfromthedateofretirement,whichwillbethelowerofthe CEO's MSR or the CEO's actual shareholding at the date of retirement. Subjecttosecuritiesdealingconstraints,Non-executiveDirectorshaveagreedtoapplyatleast25percentoftheirremuneration(basefeesplus Committeefees)tothepurchaseofBHPsharesuntiltheyachieveanMSRequivalentinvaluetooneyearofremuneration(basefeesplusCommittee fees).Thereafter,theymustmaintainatleastthatlevelofshareholdingthroughouttheirtenure.AttheendofFY2022,eachNon-executiveDirectormet the MSR. 5.7 Transactions with KMP Duringthefinancialyear,therewerenotransactionsbetweentheGroupanditssubsidiariesandKMP(includingtheirrelatedparties)(2021:US$nil; 2020:US$nil).TherewerenoamountspayablebyorloanswithKMP(includingtheirrelatedparties)at30June2022(2021:US$nil). AnumberofKMPholdorhaveheldpositionsinothercompanies(i.e.personallyrelatedentities)whereitisconsideredtheycontrolorsignificantly influencethefinancialoroperatingpoliciesofthoseentities.Therehavebeennotransactionswiththoseentitiesandnoamountswereowedbythe Grouptopersonallyrelatedentitiesoranyotherrelatedparties(2021:US$nil;2020:US$nil). This Remuneration Report was approved by the Board on 16 August 2022 and signed on its behalf by: Christine O'Reilly Chair, Remuneration Committee 16 August 2022 BHP Appendix 4E 2022 109

Financial Statements In this section: Employee matters Group and related party information Unrecognised items and uncertain events Notes to the Financial Statements Performance Other items Working capital About these Financial Statements Reporting entity BHP Group Limited, an incorporated Australian-listed company, and BHP Group Plc, an incorporated UK-listed company, formed a Dual Listed Company (DLC) Resource assets until 31 January 2022. Under the DLC structure BHP Group Limited, BHP Group Plc and their subsidiaries operated together as a single for-profit economic entity with a common Board of Directors, unified management structure and joint objectives. On 31 January 2022, BHP unified its corporate structure under BHP Group Limited, and subsequently BHP Group Plc changed its name to BHP Group (UK) Ltd. Throughout the Consolidated Financial Statements (the Financial Statements), the collective contributions of the aforementioned entities are referred to as 'BHP' or 'the Group', regardless of the DLC or unified corporate structure. Capital Structure Group and related party information is presented in note 31 'Related party transactions' to the Financial Statements. This details transactions between the Group's subsidiaries, associates, joint arrangements and other related parties. The nature of the operations and principal activities of the Group are described in the segment information (refer to note 1 'Segment reporting' to the Financial Statements). Financial Management Presentation of the Consolidated Financial Statements Directors of BHP have included information in this report they deem to be material and relevant to the understanding of the Financial Statements. Disclosure may be considered material and relevant if the dollar amount is significant due to its size or nature, or the information is important to understand the: - Group's current year results - impact of significant changes in the Group's business or - aspects of the Group's operations that are important to future performance On 22 November 2021, the Group and Woodside Energy Group Limited ('Woodside') signed a binding Share Sale Agreement ('SSA') for the merger of the Group's oil and gas portfolio with Woodside. While the merger had an economic effective date of 1 July 2021, the Group continued to control the Petroleum assets and carry on business in the normal course for 11 months until 1 June 2022 (Completion Date). As such, the Group recognises its share of revenue, expenses, net finance costs and associated income tax expense related to the Discontinued operation until the Completion Date. Comparative periods have been adjusted for the effects of applying IFRS 5/AASB 5 'Non-current Assets Held for Sale and Discontinued Operations' to disclose the Group's Petroleum business on the same basis as the current period. These Financial Statements were approved by the Board of Directors on 16 August 2022. 110 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary 1 Consolidated Financial Statements 1.1 Consolidated Income Statement for the year ended 30 June 2022 2021 2020 2022 US$M US$M Notes US$M Restated Restated Continuing operations Revenue 2 65,098 56,921 38,924 Other income 5 1,398 380 720 Expenses excluding net finance costs 5 (32,371) (30,871) (25,453) Loss from equity accounted investments, related impairments and expenses 29 (19) (915) (508) Profit from operations 34,106 25,515 13,683 Financial expenses (1,050) (1,290) (1,192) Financial income 81 67 334 Net finance costs 22 (969) (1,223) (858) Profit before taxation 33,137 24,292 12,825 Income tax expense (10,430) (10,376) (4,216) Royalty-related taxation (net of income tax benefit) (307) (240) 19 Total taxation expense 6 (10,737) (10,616) (4,197) Profit after taxation from Continuing operations 22,400 13,676 8,628 Discontinued operations Profit/(loss) after taxation from Discontinued operations 27 10,655 (225) 108 Profit after taxation from Continuing and Discontinued operations 33,055 13,451 8,736 Attributable to non-controlling interests 2,155 2,147 780 Attributable to BHP shareholders 30,900 11,304 7,956 Basic earnings per ordinary share (cents) 7 610.6 223.5 157.3 Diluted earnings per ordinary share (cents) 7 609.3 223.0 157.0 Basic earnings from Continuing operations per ordinary share (cents) 7 400.0 228.0 155.2 Diluted earnings from Continuing operations per ordinary share (cents) 7 399.2 227.5 154.8 The accompanying notes form part of these Financial Statements. 1.2 Consolidated Statement of Comprehensive Income for the year ended 30 June 2022 2022 2021 2020 Notes US$M US$M US$M Profit after taxation from Continuing and Discontinued operations 33,055 13,451 8,736 Other comprehensive income Items that may be reclassified subsequently to the income statement: Hedges: (Losses)/gains taken to equity (914) 863 (315) Losses/(gains) transferred to the income statement 881 (837) 297 Exchange fluctuations on translation of foreign operations taken to equity (5) 5 1 Exchange fluctuations on translation of foreign operations transferred to income statement (54) -- Tax recognised within other comprehensive income 6 10 (8) 5 Total items that may be reclassified subsequently to the income statement (82) 23 (12) Items that will not be reclassified to the income statement: Re-measurement gains/(losses) on pension and medical schemes 24 58 (81) Equity investments held at fair value (8) (2) (2) Tax recognised within other comprehensive income 6 (9) (20) 26 Total items that will not be reclassified to the income statement 7 36 (57) Total other comprehensive (loss)/income (75) 59 (69) Total comprehensive income 32,980 13,510 8,667 Attributable to non-controlling interests 2,160 2,158 769 Attributable to BHP shareholders 30,820 11,352 7,898 The accompanying notes form part of these Financial Statements. BHP Appendix 4E 2022 111

1.3 Consolidated Balance Sheet as at 30 June 2022 2022 2021 Notes US$M US$M ASSETS Current assets Cash and cash equivalents 20 17,236 15,246 Trade and other receivables 8 5,426 6,059 Other financial assets 23 629 230 Inventories 10 4,935 4,426 Assets held for sale-324 Current tax assets 263 279 Other 175 129 Total current assets 28,664 26,693 Non-current assets Trade and other receivables 8 153 337 Other financial assets 23 802 1,610 Inventories 10 1,315 1,358 Property, plant and equipment 11 61,295 73,813 Intangible assets 12 1,369 1,437 Investments accounted for using the equity method 29 1,420 1,742 Deferred tax assets 14 56 1,912 Other 92 25 Total non-current assets 66,502 82,234 Total assets 95,166 108,927 LIABILITIES Current liabilities Trade and other payables 9 6,687 7,027 Interest bearing liabilities 20 2,622 2,628 Liabilities directly associated with the assets held for sale-17 Other financial liabilities 23 579 130 Current tax payable 3,032 2,800 Provisions 4,15,19,26 3,965 3,696 Deferred income 34 105 Total current liabilities 16,919 16,403 Non-current liabilities Interest bearing liabilities 20 13,806 18,355 Other financial liabilities 23 1,997 1,146 Non-current tax payable 87 120 Deferred tax liabilities 14 3,063 3,314 Provisions 4,15,19,26 10,478 13,799 Deferred income 50 185 Total non-current liabilities 29,481 36,919 Total liabilities 46,400 53,322 Net assets 48,766 55,605 EQUITY Share capital - BHP Group Limited 4,638 1,111 Share capital - BHP Group Plc-1,057 Treasury shares (31) (33) Reserves 17 12 2,350 Retained earnings 40,338 46,779 Total equity attributable to BHP shareholders 44,957 51,264 Non-controlling interests 17 3,809 4,341 Total equity 48,766 55,605 The accompanying notes form part of these Financial Statements. The Financial Statements were approved by the Board of Directors on 16 August 2022 and signed on its behalf by: Ken MacKenzie Mike Henry Chair Chief Executive Officer 112 BHP Appendix 4E 2022

and Operating Financial Financial Review Governance Statements Glossary 1.4 Consolidated Cash Flow Statement for the year ended 30 June 2022 2021 2020 2022 US$M US$M Notes US$M Restated Restated Operating activities Profit before taxation from Continuing operations 33,137 24,292 12,825 Adjustments for: Depreciation and amortisation expense 5,683 5,084 4,667 Impairments of property, plant and equipment, financial assets and intangibles 515 2,507 482 Net finance costs 969 1,223 858 Loss from equity accounted investments, related impairments and expenses 19 915 508 Other (350) 573 896 Changes in assets and liabilities: Trade and other receivables (703) (2,389) 128 Inventories (865) (405) (714) Trade and other payables 727 1,149 (589) Provisions and other assets and liabilities (248) 486 1,350 Cash generated from operations 38,884 33,435 20,411 Dividends received 1,018 728 117 Interest received 58 97 368 Interest paid (657) (766) (1,213) Proceeds/(settlements) of cash management related instruments 378 (401) 85 Net income tax and royalty-related taxation refunded 105 222 47 Net income tax and royalty-related taxation paid (10,501) (7,432) (5,130) Net operating cash flows from Continuing operations 29,285 25,883 14,685 Net operating cash flows from Discontinued operations 27 2,889 1,351 1,021 Net operating cash flows 32,174 27,234 15,706 Investing activities Purchases of property, plant and equipment (5,855) (5,612) (5,991) Exploration expenditure (256) (192) (176) Exploration expenditure expensed and included in operating cash flows 199 134 123 Net investment and funding of equity accounted investments (266) (553) (596) Proceeds from sale of assets 221 158 187 Proceeds/(settlements) from sale of subsidiaries, operations and joint operations net of their cash 1,255 (3) -Other investing (271) (257) (130) Net investing cash flows from Continuing operations (4,973) (6,325) (6,583) Net investing cash flows from Discontinued operations 27 (904) (1,520) (1,033) Net cash completion payment on merger of Petroleum with Woodside 27 (683) -Cash and cash equivalents disposed on merger of Petroleum with Woodside 27 (399) - Net investing cash flows (6,959) (7,845) (7,616) Financing activities Proceeds from interest bearing liabilities 1,164 568 514 Proceeds/(settlements) of debt related instruments-167 (157) Repayment of interest bearing liabilities (3,358) (8,357) (2,008) Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts (149) (234) (143) Dividends paid (17,851) (7,901) (6,876) Dividends paid to non-controlling interests (2,540) (2,127) (1,043) Net financing cash flows from Continuing operations (22,734) (17,884) (9,713) Net financing cash flows from Discontinued operations 27 (33) (38) (39) Net financing cash flows (22,767) (17,922) (9,752) Net increase/(decrease) in cash and cash equivalents from Continuing operations 1,578 1,674 (1,611) Net increase/(decrease) in cash and cash equivalents from Discontinued operations 1,952 (207) (51) Net cash completion payment on merger of Petroleum with Woodside (683) -Cash and cash equivalents disposed on merger of Petroleum with Woodside (399) -Cash and cash equivalents, net of overdrafts, at the beginning of the financial year 15,246 13,426 15,593 Foreign currency exchange rate changes on cash and cash equivalents (458) 353 (505) Cash and cash equivalents, net of overdrafts, at the end of the financial year 20 17,236 15,246 13,426 The accompanying notes form part of these Financial Statements. BHP Appendix 4E 2022 113

1.5 Consolidated Statement of Changes in Equity for the year ended 30 June 2022 Attributable to BHP shareholders Share capital Treasury shares Total equity BHP BHP BHP BHP attributable Non- Group Group Group Group Retained to BHP controlling Total US$M Limited Plc Limited Plc Reserves earnings shareholders interests equity Balance as at 1 July 2021 1,111 1,057 (32) (1) 2,350 46,779 51,264 4,341 55,605 Total comprehensive income - - (90) 30,910 30,820 2,160 32,980 Transactions with owners: BHP Group Limited shares issued 172-(172) - - -Purchase of shares by ESOP Trusts - (148) (1) - (149)-(149) Employee share awards exercised net of employee contributions net of tax - 321 2 (207) (116) - -Vested employee share awards that have lapsed, been cancelled or forfeited - - (30) 30 - -Accrued employee entitlement for unexercised awards net of tax - - 143-143-143 Corporate structure unification 3,355 (1,057) - (2,298) - - Dividends - --(17,720) (17,720) (2,540) (20,260) In specie dividend on merger of Petroleum with Woodside - --(19,559) (19,559)-(19,559) Divestment of subsidiaries, operations and joint operations - - --(157) (157) Transfers within equity on divestment of subsidiaries, operations and joint operations - - (14) 14 - -Equity contributed net of tax - - 158-158 5 163 Balance as at 30 June 2022 4,638-(31)-12 40,338 44,957 3,809 48,766 Balance as at 1 July 2020 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 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 1,111 1,057 (5)-2,306 43,396 47,865 4,310 52,175 The accompanying notes form part of these Financial Statements. 114 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary Basis of preparation Principles of consolidation The Group's Financial Statements as at and for the year ended In preparing the Financial Statements, the effects of all intragroup balances 30 June 2022: and transactions have been eliminated. - are a consolidated general purpose financial report A list of significant entities in the Group, including subsidiaries, joint - have been prepared in accordance with the requirements of: arrangements and associates at year-end is contained in note 28 - the Australian Corporations Act 2001 (Corporations Act 2001) 'Subsidiaries', note 29 'Investments accounted for using the equity method' and note 30 'Interests in joint operations'. - Australian Accounting Standards and other authoritative Subsidiaries: The Financial Statements of the Group include the pronouncements of the Australian Accounting Standards Board consolidation of BHP Group Limited (the Company or parent entity) and (AASB) and International Financial Reporting Standards as issued its subsidiaries, being the entities controlled by the parent entity during the by the International Accounting Standards Board (IASB) (collectively year and BHP Group Plc and its subsidiaries whilst the DLC was in effect. referred to as IFRS) Control exists where the Group: - are prepared on a going concern basis as the Directors: - has power over the investee - have made an assessment of the Group's ability to continue as a - is exposed to, or has rights to, variable returns from its involvement with going concern for the 12 months from the date of this report the entity - consider it appropriate to adopt the going concern basis of accounting - has the ability to affect those returns through its power to direct the in preparing the Group's Financial Statements activities of the entity - measure items on the basis of historical cost principles, except for the The ability to approve the operating and capital budget of a subsidiary following items: and the ability to appoint key management personnel are decisions that - derivative financial instruments and certain other financial assets and demonstrate that the Group has the existing rights to direct the relevant liabilities, which are carried at fair value activities of a subsidiary. - non-current assets or disposal groups that are classified as held- Consolidation of a subsidiary begins when the Company obtains control for-sale or held-for-distribution, which are measured at the lower of over the subsidiary and ceases when the Company loses control of the carrying amount and fair value less costs to sell subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in profit or loss from the date the Company - include significant accounting policies in the notes to the Financial gains control until the date when the Company ceases to control Statements that summarise the recognition and measurement basis the subsidiary. used and are relevant to an understanding of the Financial Statements - apply a presentation currency of US dollars, consistent with the Where the Group's interest is less than 100 per cent, the interest predominant functional currency of the Group's operations. Amounts are attributable to outside shareholders is reflected in non-controlling interests. rounded to the nearest million dollars, unless otherwise stated, in Changes in the Group's interests in subsidiaries that do not result in a accordance with ASIC (Rounding in Financial/Directors' Reports) loss of control are accounted for as equity transactions. The carrying Instrument 2016/191 amount of the Group's interests and the non-controlling interests are - present reclassified comparative information where required for adjusted to reflect the changes in their relative interests in the subsidiaries. consistency with the current year's presentation Any difference between the amount by which the non-controlling interests - adopt all new and amended standards and interpretations under IFRS, are adjusted and the fair value of the consideration paid or received is that are mandatory for application in periods beginning on 1 July 2021. recognised directly in equity and attributed to the owners of the Company. None had a significant impact on the Financial Statements. Refer note When the Group loses control of a subsidiary, the gain or loss on disposal 37 'New and amended accounting standards and interpretations and is recognised in profit or loss. changes to accounting policies' for details The Financial Statements of subsidiaries are prepared for the same - have not early adopted any standards and interpretations that have reporting period as the Group. The acquisition method of accounting is been issued or amended but are not yet effective. Refer note 37 'New used to account for the Group's business combinations. and amended accounting standards and interpretations and changes to accounting policies' for details Joint arrangements: The Group undertakes a number of business activities through joint arrangements, which exist when two or more parties have The accounting policies are consistently applied by all entities included in joint control. Joint arrangements are classified as either joint operations or the Financial Statements. joint ventures, based on the contractual rights and obligations between the Following unification of the Group's corporate structure under BHP Group parties to the arrangement: Limited, which was completed in January 2022, the Group Financial - Joint operations: A joint operation is an arrangement in which the Group Statements are no longer required to be prepared in accordance with: shares joint control, primarily via contractual arrangements with other - the UK Companies Act 2006 parties. In a joint operation, the Group has rights to the underlying - International Accounting Standards in conformity with the requirements assets and obligations for the liabilities relating to the arrangement. of the UK Companies Act 2006 and International Financial Reporting This includes situations where the parties benefit from the joint activity Standards adopted pursuant to Regulation (EC) No. 1606/2002 as it through a share of the output, rather than by receiving a share of the applies in the European Union (EU) 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 - International Accounting Standards adopted for use within the UK any assets and liabilities held or incurred jointly; revenue from the sale In assessing the appropriateness of the going concern assumption over of its share of the output and its share of any revenue generated from the going concern period, management have stress tested BHP's most the sale of the output by the joint operation; and its expenses including recent financial projections to incorporate a range of potential future its share of expenses incurred jointly. All such amounts are allocated outcomes by considering BHP's principal risks. The Group's financial in accordance with the terms of the arrangement, which is usually in forecasts, including downside commodity price and production scenarios, proportion to the Group's interest in the joint operation. demonstrate that the Group believes that it has sufficient financial The Group accounts for the assets, liabilities, revenue and expenses resources to meet its obligations as they fall due throughout the going relating to its interest in a joint operation in accordance with the IFRS concern period. As such, the Financial Statements continue to be prepared Standards applicable to the particular assets, liabilities, revenue on the going concern basis. and expenses. BHP Appendix 4E 2022 115

- Joint ventures: A joint venture is a joint arrangement in which the parties Foreign currencies that share joint control have rights to the net assets of the arrangement. Transactions related to the Group's worldwide operations are conducted A separate vehicle, not the parties, will have the rights to the assets and in a number of foreign currencies. The majority of the subsidiaries, joint obligations for the liabilities relating to the arrangement. More than an arrangements and associates within each of the operations have assessed insignificant share of output from a joint venture is sold to third parties, US dollars as the functional currency, however, some subsidiaries, joint which indicates the joint venture is not dependent on the parties to the arrangements and associates have functional currencies other than arrangement for funding, nor do the parties have an obligation for the US dollars. liabilities of the arrangement. Joint ventures are accounted for using the Transactions and monetary items denominated in foreign currencies are equity method as outlined below. translated into US dollars as follows: Associates: The Group accounts for investments in associates using the equity method as outlined below. An entity is considered an associate Foreign currency item Applicable exchange rate where the Group is deemed to have significant influence but not control or Transactions Date of underlying transaction joint control. Significant influence is presumed to exist where the Group: Monetary assets and liabilities Period-end rate - has over 20 per cent but less than 50 per cent of the voting rights of an Foreign exchange gains and losses resulting from translation are entity, unless it can be clearly demonstrated that this is not the case or recognised in the income statement, except for qualifying cash flow hedges - holds less than 20 per cent of the voting rights of an entity; however, has (which are deferred to equity) and foreign exchange gains or losses on the power to participate in the financial and operating policy decisions foreign currency provisions for site closure and rehabilitation costs (which affecting the entity are capitalised in property, plant and equipment for operating sites). The Group uses the term 'equity accounted investments' to refer to joint On consolidation, the assets, liabilities, income and expenses of foreign ventures and associates collectively. operations with non-US dollar functional currencies are translated into US dollars using the following applicable exchange rates: Under the equity method, an investment in an associate or a joint venture is recognised initially at cost and adjusted thereafter to recognise the Foreign currency amount Applicable exchange rate Group's share of the profit or loss and other comprehensive income of Income and expenses Date of underlying transaction the associate or joint venture. When the Group's share of losses of an Assets and liabilities Period-end rate associate or a joint venture exceeds the Group's interest in that associate Equity Historical rate or joint venture, the Group discontinues recognising its share of further Reserves Historical rate losses. Additional losses are recognised only to the extent that the Group Foreign exchange differences resulting from translation are initially has incurred legal or constructive obligations or made payments on behalf recognised in the foreign currency translation reserve and subsequently of the associate or joint venture. transferred to the income statement on disposal of a foreign operation. Significant accounting policies, judgements and estimates Estimating the quantity and/or quality of reserves requires the size, The Group's accounting policies require the use of judgement, estimates shape and depth of ore bodies to be determined by analysing geological and assumptions. All judgements, estimates and assumptions are based data, such as drilling samples and geophysical survey interpretations. on the most current facts and circumstances and are reassessed on an Economic assumptions used to estimate reserves change from period-ongoing basis. Actual results in future reporting periods may differ for to-period as additional technical and operational data is generated. these estimates under different assumptions and conditions. This process may require complex and difficult geological judgements to Further information regarding the Group's significant judgements and key interpret the data. estimates and assumptions, being those where changes may materially Reserve impact on financial reporting affect financial results and the carrying amount of assets and liabilities Estimates of reserves may change from period-to-period as the economic to be reported in the next reporting period, are embedded within the assumptions used to estimate reserves change and additional geological following notes: data is generated during the course of operations. Changes in reserves may affect the Group's financial results and financial position in a number Note of ways, including: 4 Significant events - Samarco dam failure 6 Taxation - asset carrying values may be affected due to changes in estimated 11 Overburden removal costs future production levels 11 Depreciation of property, plant and equipment - depreciation, depletion and amortisation charged to the income 13 Impairments of non-current assets statement may change where such charges are determined on the 15 Closure and rehabilitation provisions units of production basis, or where the useful economic lives of 21 Leases assets change Additional information including sensitivity analysis, where appropriate, - overburden removal costs recorded on the balance sheet or charged has been provided in the relevant notes to enhance an understanding to the income statement may change due to changes in stripping ratios of the impact of key estimates and assumptions on the Group's financial or the units of production basis of depreciation position and performance. - closure and rehabilitation provisions may change where changes in Reserve estimates estimated reserves affect expectations about the timing or cost of these activities Reserves are estimates of the amount of product that can be - the carrying amount of deferred tax assets may change due to demonstrated to be able to be economically and legally extracted from changes in estimates of the likely recovery of the tax benefits 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 and carbon prices and exchange rates. 116 BHP Appendix 4E 2022

Operating and Financial Financial Review Governance Statements Glossary Climate change Global transition signposts The Group continues to develop its assessment of the potential In addition to the Group's targets and goals, significant judgements and impacts of climate change and the transition to a low carbon economy. key estimates are also impacted by the Group's current assessment of The Group's current climate change strategy focuses on reducing the range of economic and climate related conditions that could exist in operational greenhouse gas (GHG) emissions, investing in low emissions transitioning to a low carbon economy, considering the current trajectory of technologies, supporting emissions reductions in our value chain and society and the global economy as a whole. Signposts do not yet indicate promoting product stewardship, managing climate-related risk and that the appropriate measures are in place to drive decarbonisation at opportunity, and working with others to enhance the global policy and the pace or scale required for the Group to assess achieving the aims market response. Future changes to the Group's climate change strategy of the Paris Agreement as the most likely future outcome. However, or global decarbonisation signposts may impact the Group's significant as governments, institutions, companies and society increasingly judgements and key estimates and result in material changes to financial focus on addressing climate change, the potential for a non-linear and/ results and the carrying values of certain assets and liabilities in future or more rapid transition and the subsequent impact on threats and reporting periods. opportunities increases. During FY2022, the Group completed the merger of the Group's Petroleum The BHP Climate Transition Action Plan 2021 references the Group's business with Woodside and the divestments of the Group's interests in divergent climate scenarios across a range of temperature outcomes. BHP Mitsui Coal Pty Ltd (BMC) and the Cerrejón non-operated energy coal The Group currently uses two of those scenarios, being the Central joint venture. In addition, the Group announced that it will retain New South Energy View and Lower Carbon View1 as inputs to the Group's operational Wales Energy Coal (NSWEC) in its portfolio, seek approvals to continue planning cases. The use of these two scenarios reflects the Group's mining at NSWEC beyond its current mining consent that expires in 2026, current estimates of the most likely range of future states for the global and intends to proceed with a managed process to cease mining at the economy and associated sub-systems. These operational planning cases asset by the end of FY2030. While climate change and the transition to a inform updates to the Group's supply, demand and price outlooks, capital low carbon economy remain key considerations in the Group's significant allocation and portfolio decisions. judgements and estimates, the portfolio updates during FY2022 have Given the complexity of climate modelling, these scenarios are reviewed reduced the Group's exposure to fossil fuels. Following the updates, the periodically to reflect new information, with developments in the periods potential risk to the carrying value of the Group's assets and liabilities from between scenario updates being reflected in updated internal long-term long-term price estimates for oil, gas and energy coal is largely limited to price outlooks. the impact of those commodities on the Group's supply chain. Investment decisions and asset valuations also incorporate carbon price The Group's current climate change strategy is reflected in the Group's assumptions for major Group operational, competitor and customer significant judgements and key estimates, and therefore the Financial countries. In determining the Group's forecast, factors such as a country's Statements, as follows: current and announced climate policies and targets and societal factors Transition risks such as public acceptance and demographics are considered, with the The Group's targets and goals Group forecasting the global range of regional carbon prices to reach between US$0-175/tCO2e in FY2030 and US$10-250/tCO2e in FY2050, As part of its response to the Paris Agreement goals, the Group has set and US$10-175/tCO2-e in FY2030 and US$100-250/tCO2-e in FY2050 in a target to reduce its operational GHG emissions (Scope 1 and Scope BHP's current major operational and market countries. 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 The operational planning cases, price outlooks and cost of carbon by 2050. For the FY2030 target, the FY2020 baseline has been adjusted assumptions, impact certain significant judgements and key estimates, to reflect the divestment of the Group's Petroleum and BMC operations including the determination of the valuation of assets and potential and will be adjusted for any material future acquisitions and divestments. impairment charges (notes 11 'Property, plant and equipment' and 13 Approved emissions reduction projects aimed at contributing to the 'Impairment of non-current assets'), the estimation of the remaining useful achievement of the Group's operational GHG emissions target and goal economic life of assets for depreciation purposes (note 11 'Property, plant have been incorporated into the forecast cash flows of the Group's assets. and equipment') and the timing of closure and rehabilitation activities (note The use of carbon offsets will be governed by the Group's approach to 15 'Closure and rehabilitation provisions'). carbon offsetting, with the Group's offset strategy currently being managed In addition to the operational planning cases, the Group utilises a range at a consolidated Group level and therefore not currently incorporated into the forecast cash flows of individual assets. Any change to the Group's of scenarios, including its 1.5°C Paris-aligned scenario2, when testing the resilience of its portfolio, forming strategy and making investment climate change strategy could impact these forecasts and the Group's decisions. While a 1.5şC Paris-aligned scenario does not currently significant judgements and key estimates. represent one of the inputs to the Group's operational planning cases, the The Group continues to invest, including in partnership with others, in Group has, during FY2022, systematically integrated the Group's 1.5şC emissions reduction projects and technology innovation and development Paris-aligned scenario into the Group's strategy and capital allocation in its value chain to support reductions to its total reported Scope 3 GHG process to test the extent to which its capital allocation is aligned with a emissions inventory, with a particular focus on steelmaking and maritime rapidly decarbonising global economy. Specifically, the Group applies the emissions. However, while we seek to influence, Scope 3 emissions occur Group's 1.5°C Paris-aligned scenario to assess whether future demand outside of our direct control. Reduction pathways are dependent on the for the Group's products under that scenario supports ongoing capital development, and upstream or downstream deployment of solutions and/ investment. The internal allocation of capital under the Group's Capital or supportive policy. Where possible, the financial impact of the Group's Allocation Framework and all major investment decisions now require activities in support of Scope 3 reduction pathways is reflected in the an assessment of investment viability under the Group's 1.5°C Paris-financial statements, for example the Group's chartering of LNG-fuelled aligned scenario. vessels. It is however 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. The Climate Investment Program (CIP), as announced by the Group in July 2019, aims to invest at least US$400 million over the CIP's five-year 1 Central Energy View reflects, and is periodically updated to respond to, existing life in emissions reduction projects across the Group's operated assets and policy trends and commitments. Lower Carbon View accelerates decarbonisation value chain. Spend under the CIP, along with capital expenditure in support trends and policies, particularly in easier-to-abate sectors such as power of operational decarbonisation at our operated assets, is recognised in the generation and light duty vehicles. BHP's Climate Change Report 2020 describes these scenarios in more detail. relevant year of spend. 2 This scenario aligns with the aims of the Paris Agreement and requires steep global annual emissions reduction, sustained for decades, to stay within a 1.5°C carbon budget. 1.5°C is above pre-industrial levels. BHP's Climate Change Report 2020 describes this scenario, including its assumptions, outputs and limitations, in more detail. BHP Appendix 4E 2022 117

The Group continues to monitor global decarbonisation signposts and update its operational planning cases, price outlooks, and cost of carbon assumptions and assessments relating to strategy and capital allocation 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 operational planning cases.
Sensitivity to demand for the Group's commodities
The Group acknowledges that there are a range of possible energy transition scenarios, including those that are aligned with the aims of the Paris Agreement, that may indicate different outcomes for individual commodities. The resilience of the Group's portfolio to a 1.5°C Paris-aligned scenario (the Group's 1.5°C Paris-aligned scenario) continues to be considered, including the impact of Paris-aligned commodity price estimates under that scenario on the Group's latest asset plans.
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.
However, the long-term commodity price estimates under the Group's
1.5°C Paris-aligned scenario reflect the world needing around twice as much steel, copper and potash and four times as much nickel in the next 30 years as in the last 30. In addition, the Group's portfolio is transitioning towards higher quality iron ore and metallurgical coal that enable steelmakers to be more efficient and operate with a lower emissions intensity.
As such, 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 for iron ore, copper, metallurgical coal, nickel and potash are either largely consistent with or favourable to the price outlooks in the Group's current operational planning cases.
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.
While energy coal long-term commodity price outlooks under the Group's 1.5°C Paris-aligned scenario are unfavourable when compared to the price outlooks in the Group's current operational planning cases, following impairments recognised in FY2021, the carrying value of assets at the Group's remaining energy coal operations at NSWEC is no longer material.
Further, the Group's closure provision for NSWEC reflects the announcement in FY2022 of the Group's plans to seek approvals to continue mining at NSWEC beyond its current mining consent that expires in 2026 and intention to proceed with a managed process to cease mining at NSWEC by the end of FY2030. While the closure provision remains subject to estimation and assumptions, the timing of closure is no longer considered materially susceptible to the long-term impacts of climate change.
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. In FY2022, the Group conducted a physical risk identification process that prioritised key potential climate hazards for more detailed analysis including, for example, risks associated with higher sea levels disrupting port operations and extreme rainfall impacting the stability of tailings storage facilities. 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, including risk evaluations planned for FY2023, 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. BHP Appendix 4E 2022 121

118 BHP Appendix 4E 2022
and Operating Financial Financial
Review Governance Statements Glossary
1.6 Notes to the Financial Statements
1 Segment reporting
Reportable segments
The Group operated three reportable segments during FY2022, 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
Copper Mining of copper, silver, zinc, molybdenum, uranium and gold
Iron Ore Mining of iron ore
Coal Mining of metallurgical coal and energy coal
On 22 November 2021, the Group signed a binding SSA for the merger of the Group's oil and gas portfolio with Woodside. Following that announcement, the Group's Petroleum business no longer meets the reporting segment recognition criteria as outlined in IFRS 8/AASB 8 'Operating segments' and therefore does not form part of the reportable segments. Comparative periods have been adjusted for the effects of applying IFRS 5/AASB 5 'Non-current Assets Held for Sale and Discontinued Operations' to disclose the Group's Petroleum business on the same basis as the current period.
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.
Group and unallocated Year ended 30 June 2022 items/
US$M Copper Iron Ore Coal eliminations Group total
Revenue 16,849 30,767 15,549 1,933 65,098
Inter-segment revenue - - -
Total revenue 16,849 30,767 15,549 1,933 65,098
Underlying EBITDA 8,565 21,707 9,504 858 40,634 Depreciation and amortisation (1,765) (2,203) (762) (953) (5,683) Impairment losses1 (470) (33) (9) (3) (515) Underlying EBIT 6,330 19,471 8,733 (98) 34,436 Exceptional items2 (81) (648) 849 (450) (330)
Net finance costs (969)
Profit before taxation 33,137
Capital expenditure (cash basis) 2,528 1,848 621 858 5,855 Profit/(loss) from equity accounted investments, related impairments and expenses 577 (595)-(1) (19) Investments accounted for using the equity method 1,415 - 5 1,420 Total assets3 32,762 24,613 11,524 26,267 95,166 Total liabilities3 5,342 7,790 3,874 29,394 46,400
Group and Year ended 30 June 2021 unallocated US$M items/
Restated Copper Iron Ore Coal eliminations Group total
Revenue 15,726 34,475 5,154 1,566 56,921 Inter-segment revenue - - -Total revenue 15,726 34,475 5,154 1,566 56,921
Underlying EBITDA 8,489 26,278 288 18 35,073 Depreciation and amortisation (1,608) (1,971) (845) (660) (5,084) Impairment losses1 (72) (13) (20) (31) (136) Underlying EBIT 6,809 24,294 (577) (673) 29,853 Exceptional items2 (144) (1,319) (1,567) (1,308) (4,338)
Net finance costs (1,223) Profit before taxation 24,292
Capital expenditure (cash basis) 2,180 2,188 579 665 5,612
Profit/(loss) from equity accounted investments, related impairments and expenses 692 (1,126) (480) (1) (915) Investments accounted for using the equity method 1,482 - 260 1,742 Total assets3 31,517 26,171 11,030 40,209 108,927 Total liabilities3 4,589 7,508 3,518 37,707 53,322
BHP Appendix 4E 2022 119

1 Segment reporting continued
Group and Year ended 30 June 2020 unallocated US$M items/
Restated Copper Iron Ore Coal eliminations Group total
Revenue 10,666 20,797 6,241 1,220 38,924 Inter-segment revenue - 1 (1) -Total revenue 10,666 20,797 6,242 1,219 38,924
Underlying EBITDA 4,347 14,554 1,632 (663) 19,870 Depreciation and amortisation (1,740) (1,608) (807) (512) (4,667) Impairment losses1 (17) (22) (14) (20) (73) Underlying EBIT 2,590 12,924 811 (1,195) 15,130 Exceptional items2 (1,228) (614) (18) 413 (1,447)
Net finance costs (858) Profit before taxation 12,825
Capital expenditure (cash basis) 2,434 2,328 603 626 5,991
Profit/(loss) from equity accounted investments, related impairments and expenses 67 (508) (68) 1 (508) Investments accounted for using the equity method 1,558-776 251 2,585 Total assets3 28,892 23,841 12,110 40,890 105,733 Total liabilities3 3,535 5,441 2,601 41,981 53,558
1 Impairment losses exclude exceptional items of US$ nil (2021: US$2,371 million; 2020: US$409 million).
2 Exceptional items reported in Group and unallocated include Samarco dam failure costs of US$(13) million (2021: US$(14) million; 2020: US$(32) million) and Samarco related other income of US$ nil (2021: US$34 million; 2020: US$489 million). Refer to note 3 'Exceptional items' for further information.
3 Group and unallocated comparative periods total assets and total liabilities include Petroleum assets and liabilities that were previously disclosed as part of the Petroleum segment.
Geographical information
Revenue by location of customer
2021 2020 2022 US$M US$M
US$M Restated Restated
Australia 1,649 1,871 1,212 Europe 2,129 886 963 China 36,618 39,653 26,503 Japan 8,401 4,387 3,314 India 5,215 2,189 1,475 South Korea 4,786 3,420 2,666 Rest of Asia 4,303 2,934 1,730 North America 1,282 1,147 719 South America 715 426 315 Rest of world-8 27 65,098 56,921 38,924
Non-current assets by location of assets 2022 2021 2020 US$M US$M US$M
Australia 43,250 48,612 48,236 North America 3,964 9,701 9,682 South America 18,280 18,548 18,179 Rest of world 150 1,851 1,955 Unallocated assets1 858 3,522 6,210 66,502 82,234 84,262
1 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.
120 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
2 Revenue
Revenue by segment and asset
2021 2020 2022 US$M US$M
US$M Restated Restated
Escondida 9,500 9,470 6,719 Pampa Norte 2,670 1,801 1,395 Olympic Dam 1,776 2,211 1,463 Third-party products 2,903 2,244 1,089
Total Copper1 16,849 15,726 10,666 Western Australia Iron Ore 30,632 34,337 20,663 Third-party products 19 18 15 Other 116 120 119
Total Iron Ore 30,767 34,475 20,797 BHP Mitsubishi Alliance 10,254 3,537 4,422 New South Wales Energy Coal 3,035 839 885 Other2 2,260 778 935
Total Coal3 15,549 5,154 6,242 Group and unallocated items4 1,933 1,566 1,220 Inter-segment adjustment --(1)
Total revenue 65,098 56,921 38,924
1 Total Copper revenue includes: copper US$15,992 million (2021: US$14,812 million; 2020: US$10,044 million) and other US$857 million (2021: US$914 million; 2020:
US$622 million). Other consists of silver, zinc, molybdenum, uranium and gold.
2 Includes revenue related to BHP Mitsui Coal (BMC) divested in May 2022.
3 Total Coal revenue includes: metallurgical coal US$11,990 million (2021: US$4,260 million; 2020: US$5,311 million) and energy coal US$3,559 million (2021: US$894 million; 2020: US$931 million).
4 Group and unallocated items revenue includes: Nickel West US$1,926 million (2021: US$1,545 million; 2020: US$1,189 million) and other revenue US$7 million (2021: US$21 million; 2020: US$31 million).
Revenue consists of revenue from contracts with customers of US$65,504 million (2021: US$55,562 million; 2020: US$38,917 million) and other revenue predominantly relating to provisionally priced sales of US$(406) million (2021: US$1,359 million; 2020: US$7 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 as the services are provided, 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 transferring 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), separately recorded as other revenue and presented as part of the total revenue of each asset. The period between provisional pricing and final invoicing is typically between 60 and 120 days.
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.
The Group applies the practical expedient not to disclose information relating to unfulfilled performance obligations, either due to the expected duration of the contract term being one year or less, or for longer term contracts, because the entity has a right to consideration (and can recognise revenue) for goods delivered.
BHP Appendix 4E 2022 121

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.
Exceptional items attributable to Discontinued operations are detailed in note 27 'Discontinued operations'.
Gross Tax Net Year ended 30 June 2022 US$M US$M US$M
Exceptional items by category
Samarco dam failure (1,032) (31) (1,063) Impairment of US deferred tax assets-(423) (423)
Corporate structure unification costs (428)-(428)
BHP Mitsui Coal (BMC) gain on disposal 840-840 Total (620) (454) (1,074)
Attributable to non-controlling interests - -Attributable to BHP shareholders (620) (454) (1,074)
Samarco Mineração S.A. (Samarco) dam failure
The FY2022 exceptional loss of US$1,063 million (after tax) related to the Samarco dam failure in November 2015 comprises the following:
Year ended 30 June 2022 US$M
Other income -
Expenses excluding net finance costs:
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (66) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense -Samarco Germano dam decommissioning 68 Samarco dam failure provision (663) Fair value change on forward exchange derivatives (81)
Net finance costs (290)
Income tax expense (31) Total1 (1,063)
1 Refer to note 4 'Significant events - Samarco dam failure' for further information.
Impairment of US deferred tax assets
The Group recognised an impairment charge of US$423 million (after tax) in relation to deferred tax assets where the recoverability has historically been reliant on Petroleum earnings in the same tax group. While these tax assets remained with the Group following the merger of the Group's oil and gas portfolio with Woodside, the impairment charge reflects the extent of other currently forecast future earnings against which the assets can be recovered.
Corporate structure unification costs
The Group incurred transaction costs associated with the unification of the Group corporate structure under its existing Australian parent company, BHP
Group Limited, which was completed on 31 January 2022. Refer note 16 'Share capital' for further information.
BHP Mitsui Coal (BMC) gain on disposal
On 3 May 2022 the Group sold its 80 per cent interest in BHP Mitsui Coal Pty Ltd (BMC) to Stanmore SMC Holdings Pty Ltd, a wholly owned subsidiary of Stanmore Resources Limited (Stanmore Resources).
Stanmore Resources paid US$1.1 billion cash consideration at completion plus a preliminary completion adjustment of US$218 million for working capital. US$100 million in cash remains payable in six months on 3 November 2022 with potential for an additional amount of up to US$150 million (US$122 million discounted) in a price-linked earnout payable in the 2024 calendar year.
122 BHP Appendix 4E 2022

and Operating Financial Financial
Review Governance Statements Glossary
3 Exceptional items continued
Details of the gain on disposal is as follows:
US$M
Assets
Cash and cash equivalents 63 Trade and other receivables 360
Other financial assets 26
Inventories 92 Property, plant and equipment 1,214 Total assets 1,755 Liabilities
Trade and other payables 253 Interest bearing liabilities 249 Tax payables 9 Provisions 425 Deferred tax liabilities 31 Total liabilities 967 Net assets disposed 788
Less non-controlling interest share of net assets disposed 157 BHP share of net assets disposed 631
Gross consideration 1,318 Transaction and other directly applicable costs (69) Income tax expense -Deferred consideration 222 Gain on disposal 840
The exceptional items relating to the year ended 30 June 2021 and the year ended 30 June 2020 are detailed below.
30 June 2021
Year ended 30 June 2021 Gross Tax Net Restated US$M US$M US$M
Exceptional items by category
Samarco dam failure (1,087) (71) (1,158) COVID-19 related costs (499) 138 (361) Impairment of Energy coal assets (1,523) (651) (2,174) Impairment of Potash assets (1,314) (473) (1,787) Total (4,423) (1,057) (5,480) Attributable to non-controlling interests (34) 10 (24) Attributable to BHP shareholders (4,389) (1,067) (5,456)
Samarco Mineração S.A. (Samarco) dam failure
The FY2021 exceptional loss of US$1,158 million related to the Samarco dam failure in November 2015 comprises the following:
Year ended 30 June 2021 US$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) Total1 (1,158)
1 Refer to note 4 'Significant events - Samarco dam failure' for further information.
COVID-19 related costs
The exceptional item reflects the directly attributable COVID-19 pandemic related additional costs for the Group for FY2021, 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. At the time, COVID-19 was considered a single protracted globally pervasive event.
However, as the pandemic has continued to evolve, certain impacts that were initially considered to be potentially short-term in nature are now expected to continue over a number of reporting periods. These activities are now considered to be part of business as usual operations and, as such, for FY2022, the incremental costs have not been classified as an exceptional item.
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.
BHP Appendix 4E 2022 123

3 Exceptional items continued
Impairment of Potash assets
The Group recognised an impairment charge of US$1,787 million (after tax) in relation to Potash. The impairment charge reflected an analysis of market perspectives and the value that we expected a market participant to attribute to our investments to date. 30 June 2020
Year ended 30 June 2020 Gross Tax Net Restated US$M US$M US$M
Exceptional items by category
Samarco dam failure (176)-(176) Cancellation of power contracts (778) 271 (507) COVID-19 related costs (177) 51 (126) Cerro Colorado impairment (409) (83) (492) Total (1,540) 239 (1,301) Attributable to non-controlling interests (291) 90 (201) Attributable to BHP shareholders (1,249) 149 (1,100)
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) Total1 (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
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, the impacts of maintaining social distancing requirements and other standby charges related to delays caused by COVID-19. At the time, COVID-19 was considered a single protracted globally pervasive event.
However, as the pandemic has continued to evolve, certain impacts that were initially considered to be potentially short-term in nature are now expected to continue over a number of reporting periods. These activities are now considered to be part of business as usual operations and, as such, for FY2022, the incremental costs have not been classified as an exceptional item.
Cerro Colorado impairment
The Group recognised an impairment charge of US$492 million (after tax) in relation to Cerro Colorado. This reflects the decision taken by the Group to reduce Cerro Colorado's throughput for the remaining period of its current environmental licence, which expires at the end of CY2023.
4 Significant events - Samarco dam failure
On 5 November 2015, the Samarco Mineração S.A. (Samarco) iron ore operation in Minas Gerais, Brazil, experienced a tailings dam failure that resulted in a release of mine tailings, flooding the communities of Bento Rodrigues, Gesteira and Paracatu and impacting other communities downstream (the
Samarco dam failure). Refer to section on 'Samarco' in the Operating and Financial Review.
Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). BHP Brasil's 50 per cent interest is accounted for as an equity accounted joint venture investment. BHP Brasil does not separately recognise its share of the underlying assets and liabilities of Samarco, but instead records the investment as one line on the balance sheet. Each period, BHP Brasil recognised its 50 per cent share of Samarco's profit or loss and adjusted the carrying value of the investment in Samarco accordingly. Such adjustment continued until the investment carrying value was reduced to US$ 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.
124 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
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
2022 are shown in the tables below and have been treated as an exceptional item.
2022 2021 2020
Financial impacts of Samarco dam failure US$M US$M US$M
Income statement
Other income1-34 489
Expenses excluding net finance costs:
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure2 (66) (46) (64) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense3-(111) (95) Samarco Germano dam decommissioning4 68 (15) 46 Samarco dam failure provision5 (663) (1,000) (459) Fair value change on forward exchange derivatives6 (81) 136 -Loss from operations (742) (1,002) (83)
Net finance costs7 (290) (85) (93) Loss before taxation (1,032) (1,087) (176) Income tax expense8 (31) (71) -
Loss after taxation (1,063) (1,158) (176)
Balance sheet movement
Trade and other payables (1) (5) (5) Derivatives (160) 136 -Tax liabilities (31) (71) -Provisions (629) (741) (137)
Net liabilities (821) (681) (142)
2022 2021 2020 US$M US$M US$M
Cash flow statement
Loss before taxation (1,032) (1,087) (176)
Adjustments for:
Samarco impairment expense3-111 95 Samarco Germano dam decommissioning4 (68) 15 (46) Samarco dam failure provision5 663 1,000 459 Fair value change on forward exchange derivatives6 81 (136) -Proceeds of cash management related instruments 79--Net finance costs7 290 85 93
Changes in assets and liabilities:
Trade and other payables 1 5 5
Net operating cash flows 14 (7) 430 Net investment and funding of equity accounted investments9 (256) (470) (464)
Net investing cash flows (256) (470) (464)
Net decrease in cash and cash equivalents (242) (477) (34)
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$(56) million (2021: US$(6) million; 2020: US$37 million) change in estimate and US$(12) million (2021: US$21 million; 2020: US$(83) million) exchange translation.
5 US$747 million (2021: US$842 million; 2020: US$916 million) change in estimate and US$(84) million (2021: US$158 million; 2020: US$(457) million) exchange translation.
6 During the period the Group entered into forward exchange contracts to limit the Brazilian reais exposure on the dam failure provisions. While not applying hedge accounting, the fair value changes in the forward exchange instruments are recorded within Loss from equity accounted investments, related impairments and expenses in the Income Statement.
7 Amortisation of discounting of provision.
8 Includes tax on forward exchange derivatives and other taxes incurred during the period.
9 Includes US$ nil (2021: US$(111) million; 2020: US$(95) million) funding provided during the period, US$(256) million (2021: US$(351) million; 2020: US$(365) million) utilisation of the Samarco dam failure provision, and US$ nil (2021: US$(8) million; 2020: US$(4) million) utilisation of the Samarco Germano decommissioning provision.
Equity accounted investment in Samarco
BHP Brasil's investment in Samarco remains at US$ nil. No dividends have been received by BHP Brasil from Samarco during the period and Samarco currently does not have profits available for distribution.
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4 Significant events - Samarco dam failure continued
Provisions related to the Samarco dam failure
2022 2021 US$M US$M
At the beginning of the financial year 2,792 2,051 Movement in provisions 629 741
Comprising:
Utilised (256) (359) Adjustments charged to the income statement:
Change in estimate - Samarco dam failure provision 747 842 Change in estimate - Samarco Germano dam decommissioning (56) (6) Amortisation of discounting impacting net finance costs 290 85 Exchange translation (96) 179
At the end of the financial year 3,421 2,792 Comprising: Current 1,815 1,206 Non-current 1,606 1,586
At the end of the financial year 3,421 2,792 Comprising: Samarco dam failure provision 3,237 2,560 Samarco Germano dam decommissioning provision 184 232
Samarco dam failure provisions and contingencies
As at 30 June 2022, 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 (the Framework
Agreement). 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 Fundaçăo Renova and the Court's decisions, including decisions relating to the scope of individuals eligible for compensation and the amount of damages to which they are entitled, 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 and the provision may be impacted in future reporting periods as a result of appeals and motions for clarification on certain Court decisions that remain outstanding.
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 Fundaçăo 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 their 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 and the outcome of the Judicial Reorganisation (outlined below). 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$3.2 billion before tax and after discounting at 30 June 2022 (30 June 2021: US$2.6 billion). The dam failure provision at 30 June 2022 reflects only the Group's estimate of the costs to be incurred in completing those Programs, as the Group is unable to provide a range of possible outcomes or a reliable estimate of other existing or potential future claims (refer to contingent liabilities below).
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 was suspended from the date of ratification of the Governance Agreement. Formal suspension of the claim ceased on 10 December 2021, however no further rulings have been made.
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. The negotiations are overseen by the President of the National Council of Justice, as the Chief Justice of the Supreme Court in Brazil and are expected to continue until at least the expected end of the term of the current President on 31 August 2022. Outcomes of the negotiations are highly uncertain and, 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 Fundaçăo Renova's annual budget up to a limit of R$2.2 billion (approximately US$420 million). The security currently comprises R$1.3 billion (approximately US$250 million) in insurance bonds and a charge of R$800 million (approximately US$150 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 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$184 million (30 June 2021: US$232 million). The decommissioning is progressing, however further engineering work and required validation by Brazilian authorities could lead to changes to estimates in future reporting periods.
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Operating and Financial Financial
Review Governance Statements Glossary
4 Significant events - Samarco dam failure continued
Contingent liabilities
Key judgements and estimates
The following matters are disclosed as contingent liabilities and given the
Judgements: The outcomes of litigation are inherently difficult to status of these matters it is not possible to provide a range of possible predict and significant judgement has been applied in assessing the outcomes or a reliable estimate of potential future exposures for BHP, likely outcome of legal claims and determining which legal claims unless otherwise stated. A number of the claims below have not specified require recognition of a provision or disclosure of a contingent liability. the amount of damages sought and, where this is specified, amounts could
The facts and circumstances relating to these cases are regularly change as the matter progresses. Ultimately, all the legal matters disclosed as evaluated in determining whether a provision for any specific claim contingent liabilities could have a material adverse impact on BHP's business, is required. competitive position, cash flows, prospects, liquidity and shareholder returns.
Management has determined that a provision can only be recognised Federal Public Prosecution Office claim for obligations under the Framework Agreement and Samarco Germano dam decommissioning as at 30 June 2022. It is not yet possible to BHP Brasil is among the defendants named in a claim brought by the provide a range of possible outcomes or a reliable estimate of potential Federal Public Prosecution Office on 3 May 2016, seeking R$155 billion future exposures to BHP in connection to the contingent liabilities noted (approximately US$30 billion) for reparation, compensation and moral below, given their status. damages in relation to the Samarco dam failure.
Estimates: The provision for the Samarco dam failure currently only The 12th Federal Court previously suspended the Federal Public reflects the Group's estimate of the remaining costs to complete Prosecution Office claim, including a R$7.7 billion (approximately Programs under the Framework Agreement and requires the use of US$1.5 billion) injunction request. On 30 September 2020, Brazilian significant judgements, estimates and assumptions. Based on current Federal and State prosecutors and public defenders filed a request estimates, it is expected that approximately 95 per cent of remaining for the immediate resumption of the R$155 billion (approximately costs for Programs under the Framework Agreement will be incurred by US$30 billion) claim, which was suspended since the date of ratification
December 2024. of the Governance Agreement. Formal suspension of the claim ceased on 10 December 2021, however no further rulings have been made. While the provision has been measured based on the latest information available, changes in facts and circumstances are likely in future BHP Brasil, Samarco, Vale and Federal and State prosecutors have been reporting periods and may lead to material revisions to these estimates. engaging in negotiations to seek a definitive and substantive settlement However, it is currently not possible to determine what facts and of the obligations under the Framework Agreement and the R$155 billion circumstances may change, therefore revisions in future reporting (approximately US$30 billion) Federal Public Prosecution Office claim. periods due to the key estimates and factors outlined below cannot be The negotiations are overseen by the President of the National Council reliably measured. of Justice, as the Chief Justice of the Supreme Court in Brazil and are expected to continue until at least the expected end of the term of the The key estimates that may have a material impact on the provision in current President on 31 August 2022. Outcomes of the negotiations the next and future reporting periods include the: are highly uncertain and it is therefore not possible to provide a reliable - number of people eligible for financial assistance and compensation estimate of potential outcomes and there is a risk that a negotiated and the corresponding amount of expected compensation outcome may be materially higher than amounts currently reflected - costs to complete key infrastructure programs in the Samarco dam failure provision. The provision may also be affected by factors including but not Australian class action complaint limited to: 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 - potential changes in scope of work and funding amounts required in BHP Group Ltd on the Australian Securities Exchange or shares in under the Framework Agreement including the impact of the BHP Group Plc on the London Stock Exchange and Johannesburg Stock decisions of the Interfederative Committee along with further Exchange in periods prior to the Samarco dam failure. The amount of technical analysis, community participation required under the damages sought is unspecified.
Governance Agreement and rulings made by the 12th Federal Court
- the outcome of ongoing negotiations with State and Federal United Kingdom group action complaint
Prosecutors, including review of Fundaçăo Renova's Programs as BHP Group Plc and BHP Group Ltd were named as defendants in group provided in the Governance Agreement action claims for damages filed in the courts of England. These claims - actual costs incurred were filed on behalf of certain individuals, governments, businesses and - resolution of uncertainty in respect of the nature and extent of communities in Brazil allegedly impacted by the Samarco dam failure.
Samarco's long-term cash generation The amount of damages sought in these claims is unspecified. In August 2019, the BHP parties filed a preliminary application to strike out or stay - updates to discount and foreign exchange rates this action on jurisdictional and other procedural grounds. That application - the outcomes of Samarco's judicial reorganisation was successful before the High Court and the action was dismissed. In addition, the provision may be impacted by decisions in, or resolution However, on 8 July 2022, the Court of Appeal reversed the dismissal of, existing and potential legal claims in Brazil and other jurisdictions, decision and allowed the action to proceed in England. BHP Group Ltd including the outcome of the United Kingdom group action complaint and BHP Group (UK) Ltd (formerly BHP Group Plc) will seek permission to and the negotiations seeking a definitive and substantive settlement of appeal to the Supreme Court of the United Kingdom. the obligations under the Framework Agreement and the R$155 billion Criminal charges
(approximately US$30 billion) Federal Public Prosecution Office claim.
The Federal Prosecutors' Office has filed criminal charges against BHP
Outcomes of the negotiations are highly uncertain and it is therefore not Brasil, Samarco and Vale and certain employees and former employees possible to provide a reliable estimate of potential outcomes. of BHP Brasil (Affected Individuals) in the Federal Court of Ponte Nova,
Minas Gerais. On 3 March 2017, BHP Brasil filed its preliminary defences. Given these factors, future actual cash outflows may differ from the
The Federal Court terminated the charges against eight of the Affected amounts currently provided and changes to any of the key assumptions
Individuals. The Federal Prosecutors' Office has appealed seven of those and estimates outlined above could result in a material impact to the decisions with hearings of the appeals still pending. BHP Brasil rejects provision in the next and future reporting periods. outright the charges against the company and the Affected Individuals and is defending itself from all charges while fully supporting each of the Affected Individuals in their defence of the charges.
BHP Appendix 4E 2022 127

Operating and Financial Financial
Review Governance Statements Glossary
4 Significant events - Samarco dam failure continued
Contingent liabilities
Key judgements and estimates
The following matters are disclosed as contingent liabilities and given the
Judgements: The outcomes of litigation are inherently difficult to status of these matters it is not possible to provide a range of possible predict and significant judgement has been applied in assessing the outcomes or a reliable estimate of potential future exposures for BHP, likely outcome of legal claims and determining which legal claims unless otherwise stated. A number of the claims below have not specified require recognition of a provision or disclosure of a contingent liability. the amount of damages sought and, where this is specified, amounts could The facts and circumstances relating to these cases are regularly change as the matter progresses. Ultimately, all the legal matters disclosed as evaluated in determining whether a provision for any specific claim contingent liabilities could have a material adverse impact on BHP's business, is required. competitive position, cash flows, prospects, liquidity and shareholder returns.
Management has determined that a provision can only be recognised Federal Public Prosecution Office claim for obligations under the Framework Agreement and Samarco Germano dam decommissioning as at 30 June 2022. It is not yet possible to BHP Brasil is among the defendants named in a claim brought by the provide a range of possible outcomes or a reliable estimate of potential Federal Public Prosecution Office on 3 May 2016, seeking R$155 billion future exposures to BHP in connection to the contingent liabilities noted (approximately US$30 billion) for reparation, compensation and moral below, given their status. damages in relation to the Samarco dam failure.
Estimates: The provision for the Samarco dam failure currently only The 12th Federal Court previously suspended the Federal Public reflects the Group's estimate of the remaining costs to complete Prosecution Office claim, including a R$7.7 billion (approximately Programs under the Framework
Agreement and requires the use of US$1.5 billion) injunction request. On 30 September 2020, Brazilian significant judgements, estimates and assumptions. Based on current Federal and State prosecutors and public defenders filed a request estimates, it is expected that approximately 95 per cent of remaining for the immediate resumption of the R$155 billion (approximately costs for Programs under the Framework Agreement will be incurred by US$30 billion) claim, which was suspended since the date of ratification
December 2024. of the Governance Agreement. Formal suspension of the claim ceased on 10 December 2021, however no further rulings have been made. While the provision has been measured based on the latest information available, changes in facts and circumstances are likely in future BHP Brasil, Samarco, Vale and Federal and State prosecutors have been reporting periods and may lead to material revisions to these estimates. engaging in negotiations to seek a definitive and substantive settlement However, it is currently not possible to determine what facts and of the obligations under the Framework Agreement and the R$155 billion circumstances may change, therefore revisions in future reporting (approximately US$30 billion) Federal Public Prosecution Office claim. periods due to the key estimates and factors outlined below cannot be The negotiations are overseen by the President of the National Council reliably measured. of Justice, as the Chief Justice of the Supreme Court in Brazil and are expected to continue until at least the expected end of the term of the The key estimates that may have a material impact on the provision in current President on 31 August 2022. Outcomes of the negotiations the next and future reporting periods include the: are highly uncertain and it is therefore not possible to provide a reliable - number of people eligible for financial assistance and compensation estimate of potential outcomes and there is a risk that a negotiated and the corresponding amount of expected compensation outcome may be materially higher than amounts currently reflected
- costs to complete key infrastructure programs in the Samarco dam failure provision. The provision may also be affected by factors including but not Australian class action complaint limited to: 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 - potential changes in scope of work and funding amounts required in BHP Group Ltd on the Australian Securities Exchange or shares in under the Framework Agreement including the impact of the BHP Group Plc on the London Stock Exchange and Johannesburg Stock decisions of the Interfederative Committee along with further Exchange in periods prior to the Samarco dam failure. The amount of technical analysis, community participation required under the damages sought is unspecified.
Governance Agreement and rulings made by the 12th Federal Court
- the outcome of ongoing negotiations with State and Federal United Kingdom group action complaint
Prosecutors, including review of Fundaçăo Renova's Programs as BHP Group Plc and BHP Group Ltd were named as defendants in group provided in the Governance Agreement action claims for damages filed in the courts of England. These claims - actual costs incurred were filed on behalf of certain individuals, governments, businesses and - resolution of uncertainty in respect of the nature and extent of communities in Brazil allegedly impacted by the Samarco dam failure.
Samarco's long-term cash generation The amount of damages sought in these claims is unspecified. In August 2019, the BHP parties filed a preliminary application to strike out or stay - updates to discount and foreign exchange rates this action on jurisdictional and other procedural grounds. That application - the outcomes of Samarco's judicial reorganisation was successful before the High Court and the action was dismissed. In addition, the provision may be impacted by decisions in, or resolution However, on 8 July 2022, the Court of Appeal reversed the dismissal of, existing and potential legal claims in Brazil and other jurisdictions, decision and allowed the action to proceed in England. BHP Group Ltd including the outcome of the United Kingdom group action complaint and BHP Group (UK) Ltd (formerly BHP Group Plc) will seek permission to and the negotiations seeking a definitive and substantive settlement of appeal to the Supreme Court of the United Kingdom. the obligations under the Framework Agreement and the R$155 billion Criminal charges
(approximately US$30 billion) Federal Public Prosecution Office claim.
The Federal Prosecutors' Office has filed criminal charges against BHP
Outcomes of the negotiations are highly uncertain and it is therefore not Brasil, Samarco and Vale and certain employees and former employees possible to provide a reliable estimate of potential outcomes. of BHP Brasil (Affected Individuals) in the Federal Court of Ponte Nova,
Minas Gerais. On 3 March 2017, BHP Brasil filed its preliminary defences. Given these factors, future actual cash outflows may differ from the
The Federal Court terminated the charges against eight of the Affected amounts currently provided and changes to any of the key assumptions
Individuals. The Federal Prosecutors' Office has appealed seven of those and estimates outlined above could result in a material impact to the decisions with hearings of the appeals still pending. BHP Brasil rejects provision in the next and future reporting periods. outright the charges against the company and the Affected Individuals and is defending itself from all charges while fully supporting each of the Affected Individuals in their defence of the charges.
BHP Appendix 4E 2022 127

4 Significant events - Samarco dam failure continued
Civil public action commenced by Associations concerning the use of Tanfloc for Samarco judicial reorganisation water treatment
The Vila Lenira Residents Association, State of Espírito Santo Rural Samarco filed for Judicial Reorganisation (JR) in April 2021, with
Producers and Artisans Association, Colatina Velha Neighborhood the Commercial Courts of Belo Horizonte, State of Minas Gerais,
Residents Association, and United for the Progress of Palmeiras Brazil (JR Court), after multiple enforcement actions taken by certain Neighborhood Association have filed a lawsuit against Samarco, BHP financial creditors of Samarco which threatened Samarco's operations.
Brasil and Vale and others, including the State of Minas Gerais, the State The JR Court granted a stay of the enforcement actions in Brazil until of Espirito Santo and the Federal Government. The plaintiffs allege that 15 October 2022. the defendants carried out a clandestine study on the citizens of the The JR is an insolvency proceeding that provides a means for Samarco to locations affected by the Fundão's Dam Failure, using TANFLOC - a seek to restructure its financial debts and establish a sustainable financial tannin-based flocculant/coagulant - that is currently used for wastewater position that allows Samarco to, among other things, continue to rebuild treatment applications. The plaintiffs claim that this product allegedly put its operations and strengthen its ability to meet its Fundação Renova the population at risk due to its alleged experimental qualities. funding obligations. Samarco's operations have continued during the
The plaintiffs are seeking multiple kinds of relief - material damage, JR proceeding. moral damages, loss of profits - and that the defendants should pay for According to the list of creditors filed with the JR Court by the Judicial water supply in all locations where there is no water source other than the Administrators (who are in charge of a first review of the list of creditors
Doce River. filed by Samarco), Fundação Renova's funding obligations undertaken
On 25 July 2022, Samarco, BHP Brasil and Vale presented their defences by Samarco are not subject to the JR, although some financial creditors individually, as well as the State of Minas Gerais, the State of Espírito of Samarco have objected to this position. Some such creditors filed Santo and the Federal Government. The Court's decision is still pending. challenges to the list of creditors filed by the Judicial Administrators, in order to, among other things, prevent Samarco from funding Fundação Other claims Renova. In December 2021, the 12th Federal Court granted BHP Brasil's request that Samarco be able to fund Fundação Renova obligations, BHP Brasil is among the companies named as defendants in a number of overturning a temporary injunction against such funding previously legal proceedings initiated by individuals, non-governmental organisations, granted by the State Court in October 2021. BHP Brasil also obtained a corporations and governmental entities in Brazilian Federal and State preliminary injunction from the Superior Court supporting the jurisdiction of courts following the Samarco dam failure. The other defendants include the 12th Federal Court, and not the State Court, in this matter. An appeal Vale, Samarco and Fundação Renova. The lawsuits include claims against this ruling by certain financial creditors is still to be ruled upon. for compensation, environmental reparation and violations of Brazilian
Samarco has, with the support of BHP Brasil and Vale, continued to meet environmental and other laws, among other matters. The lawsuits seek its Fundação Renova funding obligations. various remedies including reparation costs, compensation to injured individuals and families of the deceased, recovery of personal and property In April 2022, Samarco presented a restructure proposal for voting at a losses, moral damages and injunctive relief. In addition, government meeting of its creditors under the JR proceeding, which was rejected by inquiries and investigations relating to the Samarco dam failure have certain of the Samarco financial creditors. Certain Samarco creditors, been commenced by numerous agencies of the Brazilian
government and including a group of financial creditors and Samarco's employee unions are ongoing. then proposed alternative restructure proposals. Samarco, BHP Brasil and
Vale subsequently each filed objections with the JR Court to both the voting
Additional lawsuits and government investigations relating to the Samarco process regarding the rejection of the Samarco proposal and the restructure dam failure could be brought against BHP Brasil and possibly other BHP proposal filed by a group of financial creditors. These legal disputes, and entities in Brazil or other jurisdictions. others in the JR process, have yet to be ruled on by the JR Court.
BHP insurance It is expected that there will be continuing litigation from creditors against
BHP has various third party general liability and directors and officers Samarco and its shareholders over the course of the JR proceeding, insurances for claims related to the Samarco dam failure made directly including with respect to the treatment of Samarco's Fundação Renova-against BHP Brasil or other BHP entities, their directors and officers, related obligations and attempts to pierce Samarco's corporate veil to hold including class actions. External insurers have been notified of the BHP Brasil and Vale liable for Samarco's debts. The duration and outcome Samarco dam failure along with the third party claims and class actions of the JR remains uncertain with the potential for protracted litigation and referred to above. In the period since the dam failure, the Group has appeals because, among other things, the Samarco JR is occurring under recognised US$573 million other income from general liability insurance new and untested Brazilian bankruptcy legislation. proceeds related to the dam failure. Recoveries related to general liability While the JR is not expected to affect Samarco's obligation or commitment insurance are now considered complete. to make full redress for the 2015 Fundão dam failure, and is not expected As at 30 June 2022, an insurance receivable has not been recognised for to impact Fundação Renova's ability to undertake that remediation and any potential recoveries in respect of ongoing matters. compensation, it is not possible to determine the outcomes of the JR or reliably estimate any impact that the reorganisation may have for BHP Commitments Brasil, including its share of the Samarco dam failure provisions.
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$1,350 million for the Fundação Renova programs and Samarco's working capital during calendar year 2022. Samarco's cash flow generation in the period was sufficient to fund its working capital and the Fundação Renova programs, as such no funding was provided by the Group in the six months to 30 June 2022. Any additional requests for funding or future investment provided would be subject to a future decision by BHP, accounted for at that time.
128 BHP Appendix 4E 2022

and Operating Financial Financial
Review Governance Statements Glossary
4 Significant events - Samarco dam failure continued
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 Samarco insurance
Dam failure related provisions and contingencies Samarco has standalone insurance policies in place with Brazilian
In addition to its obligations under the Framework Agreement as at 30 June and global insurers. Insurers' loss adjusters or claims representatives 2022, Samarco has recognised provisions of US$0.3 billion (30 June 2021: continue to investigate and assist with the claims process for matters not US$0.2
billion), based on currently available information. The magnitude, yet settled. As at 30 June 2022, an insurance receivable has not been scope and timing of these additional costs are subject to a high degree recognised by Samarco in respect of ongoing matters. of uncertainty and Samarco has indicated that it anticipates that it will incur future costs beyond those provided. These uncertainties are likely Samarco commitments to continue for a significant period and changes to key assumptions could At 30 June 2022, Samarco has commitments of US$0.7 billion (30 June result in a material change to the amount of the provision in future reporting 2021: US$0.7 billion). Following the dam failure Samarco invoked force periods. Any such unrecognised obligations are therefore contingent majeure clauses in a number of long-term contracts with suppliers and liabilities and, at present, it is not practicable to estimate their magnitude or service providers to suspend contractual obligations. 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 Samarco non-dam failure related contingent liabilities exposures at this time. The following non-dam failure related contingent liabilities pre-date and are unrelated to the Samarco dam failure. Samarco is currently Samarco is also named as a defendant in a number of other legal contesting both of these matters in the Brazilian courts. Given the status proceedings initiated by individuals, non-governmental organisations, of these tax matters, the timing of resolution and potential economic corporations and governmental entities in Brazilian Federal and State outflow for Samarco is uncertain. courts following the Samarco dam failure. The lawsuits include claims for compensation, environmental rehabilitation and violations of Brazilian Brazilian Social Contribution Levy environmental and other laws, among other matters. The lawsuits seek Samarco has received tax assessments for the alleged non-payment various remedies including rehabilitation costs, compensation to injured of Brazilian Social Contribution Levy for the calendar years 2007-2014 individuals and families of the deceased, recovery of personal and property totalling approximately R$6.2 billion (approximately US$1.2 billion). losses, moral damages and injunctive relief. In addition, government inquiries and investigations relating to the Samarco dam failure have been Brazilian corporate income tax rate commenced by numerous agencies of the Brazilian government andare Samarco has received tax assessments for alleged incorrect calculation ongoing. Given the status of proceedings it is not possible to provide a range of Corporate Income Tax (IRPJ) in respect of the 2000-2003 and 2007-of possible outcomes or a reliable estimate of total potential future exposures 2014 income years totalling approximately R$4.8 billion (approximately to Samarco. US$0.9 billion).
Additional lawsuits and government investigations relating to the Samarco dam failure could be brought against Samarco.
BHP Appendix 4E 2022 129

5 Expenses and other income
2021 2020 2022
US$M US$M
US$M Restated Restated
Employee benefits expense:
Wages, salaries and redundancies 4,197 4,018 3,318 Employee share awards 109 88 90 Social security costs 4 3 2 Pension and other post-retirement obligations 338 274 246
Less employee benefits expense classified as exploration and evaluation expenditure (30) (26) (15) Changes in inventories of finished goods and work in progress (774) (321) (348) Raw materials and consumables used 5,991 4,899 5,472 Freight and transportation 2,319 1,900 1,838 External services 4,525 4,640 3,899 Third-party commodity purchases 2,959 2,220 1,098 Net foreign exchange (gains)/losses (326) 293 (617) Fair value change on derivatives1 (29) 87 393 Government royalties paid and payable 4,014 3,080 2,171 Exploration and evaluation expenditure incurred and expensed in the current period 199 134 123 Depreciation and amortisation expense 5,683 5,084 4,667 Net impairments: Property, plant and equipment 515 2,474 482 Goodwill and other intangible assets-33 -All other operating expenses 2,677 1,991 2,634
Total expenses 32,371 30,871 25,453
Insurance recoveries2 (4) (46) (489) (Gain)/loss on disposal of subsidiaries and operations3 (840) 2 -Dividend income4 (241) (2) (2) Other income5 (313) (334) (229)
Total other income (1,398) (380) (720) 1 Fair value change on derivatives is principally related to commodity price contracts, foreign exchange contracts and embedded derivatives used in the ordinary course of business as well as derivatives used as part of the funding of dividends. 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 Mainly relates to the divestment of BMC in FY2022. Refer to note 3 'Exceptional items' for further information.
4 During FY2022, the Group received dividends of US$238 million from Cerrejón, which reduced completion proceeds net of transaction costs to US$50 million. Refer to note
29 'Investments accounted for using the equity method' for details.
5 Other income is generally income earned from transactions outside the course of the Group's ordinary activities and may include certain management fees from non-controlling interests and joint arrangements, royalties and commission income.
Recognition and measurement
Other 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. Dividend income is recognised upon declaration.
130 BHP Appendix 4E 2022

and Operating Financial Financial
Review Governance Statements Glossary
6 Income tax expense
2021 2020 2022
US$M US$M
US$M Restated Restated
Total taxation expense comprises:
Current tax expense 10,673 9,018 4,285
Deferred tax expense/(benefit) 64 1,598 (88)
10,737 10,616 4,197
2021 2020 2022 US$M US$M
US$M Restated Restated
Factors affecting income tax expense for the year
Income tax expense differs to the standard rate of corporation tax as follows:
Profit before taxation 33,137 24,292 12,825 Tax on profit at Australian prima facie tax rate of 30 per cent 9,941 7,288 3,847 Non-tax effected operating losses and capital gains1 1,087 2,640 409 Tax on remitted and unremitted foreign earnings 441 485 225 Investment and development allowance --(99) Tax rate changes-(1) (8) Recognition of previously unrecognised tax assets (3) (28) (7) Tax effect of loss from equity accounted investments, related impairments and expenses2 (19) 315 153 Amounts (over)/under provided in prior years (80) (57) 13 Foreign exchange adjustments (233) (33) 41 Impact of tax rates applicable outside of Australia (801) (669) (272) Other 97 436 (86)
Income tax expense 10,430 10,376 4,216 Royalty-related taxation (net of income tax benefit) 307 240 (19) Total taxation expense 10,737 10,616 4,197
1 Includes the tax impacts related to the exceptional impairments of US deferred tax assets in the year ended 30 June 2022, NSWEC and Potash in the year ended 30 June 2021 and Cerro Colorado in the year ended 30 June 2020, as presented in note 3 'Exceptional items'.
2 The loss from equity accounted investments, related impairments and expenses is net of income tax, with the exception of the Samarco forward exchange derivatives described in note 4 'Significant events - Samarco dam failure'. This item removes the prima facie tax effect on such loss, related impairments and expenses, excluding the impact of the Samarco forward exchange derivatives which are taxable.
Income tax recognised in other comprehensive income is as follows:
2022 2021 2020 US$M US$M US$M
Income tax effect of:
Items that may be reclassified subsequently to the income statement:
Hedges:
Gains/(losses) taken to equity 274 (259) 94 (Gains)/losses transferred to the income statement (264) 252 (89) Others-(1) -Income tax credit/(charge) relating to items that may be reclassified subsequently to the income statement 10 (8) 5
Items that will not be reclassified to the income statement:
Remeasurement gains/(losses) on pension and medical schemes (9) (21) 25 Others-1 1
Income tax (charge)/credit relating to items that will not be reclassified to the income statement (9) (20) 26
Total income tax credit/(charge) relating to components of other comprehensive income1 1 (28) 31
1 Included within total income tax relating to components of other comprehensive income is US$1 million relating to deferred taxes and US$ nil relating to current taxes (2021: US$(28) million and US$ nil; 2020: US$31 million and US$ nil).
BHP Appendix 4E 2022 131

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 Deferred tax is the tax expected to be payable or recoverable on differences between the Royalties are treated as taxation expected tax on the carrying amounts of assets and liabilities in the financial statements and the corresponding arrangements (impacting taxable income for the tax bases used in the computation of taxable profit, and is accounted for in accordance income tax expense/(benefit)) year, using tax rates with IAS 12. when they are imposed under and laws enacted or government authority and the Deferred tax is generally provided on temporary differences arising between the tax substantively enacted amount payable is calculated bases of assets and liabilities and their carrying amounts in the Financial Statements. at the reporting by reference to revenue derived Deferred tax assets are recognised to the extent that it is probable that future taxable date, and any (net of any allowable deductions) profits will be available against which the temporary differences can be utilised. adjustments to tax after adjustment for temporary payable in respect of Deferred tax is not recognised for temporary differences relating to: differences. Obligations arising previous years. - initial recognition of goodwill from royalty arrangements that
- initial recognition of assets or liabilities in a transaction that is not a business combination and do not satisfy these criteria are that affects neither accounting nor taxable profit recognised as current liabilities
- investment in subsidiaries, associates and jointly controlled entities where the Group is able and included in expenses. 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.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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. 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. 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 2022. Matters with a possible economic outflow and/or presently incapable of being measured reliably are contingent liabilities and disclosed in note 32 'Contingent liabilities'. Details of uncertain tax and royalty matters relating to Samarco are disclosed in note 4 'Significant events - Samarco dam failure'.
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.
132 BHP Appendix 4E 2022

and Operating Financial Financial
Review Governance Statements Glossary
7 Earnings per share
2021 2020 2022 Restated Restated
Earnings attributable to BHP shareholders (US$M)
- Continuing operations 20,245 11,529 7,848
- Total 30,900 11,304 7,956
Weighted average number of shares (Million)
- Basic 5,061 5,057 5,057 - Diluted 5,071 5,068 5,069
Basic earnings per ordinary share (US cents)
- Continuing operations 400.0 228.0 155.2
- Total 610.6 223.5 157.3
Diluted earnings per ordinary share (US cents)
- Continuing operations 399.2 227.5 154.8
- Total 609.3 223.0 157.0
Headline earnings per ordinary share (US cents)
- Basic 439.0 284.8 171.1 - Diluted 438.1 284.2 170.7
Refer to note 27 'Discontinued operations' for basic earnings per share and diluted earnings per share for Discontinued operations. Earnings on American Depositary Shares represent twice the earnings for BHP Group Limited ordinary shares.
Headline earnings is a Johannesburg Stock Exchange defined performance measure and is reconciled from earnings attributable to ordinary shareholders as follows:
2022 2021 2020 US$M US$M US$M
Earnings attributable to BHP shareholders 30,900 11,304 7,956
Adjusted for:
(Gain)/loss on sales of PP&E, Investments and Operations1 (95) (50) 4
Impairments of property, plant and equipment, financial assets and intangibles 515 2,633 494 Samarco impairment expense-111 95
CerrejÏŒn impairment expense-466 -
Gain on disposal of BHP Mitsui Coal (840) -Gain on merger of Petroleum (8,167) -Other2 --48 Tax effect of above adjustments (97) (60) 54 Subtotal of adjustments (8,684) 3,100 695
Headline earnings 22,216 14,404 8,651 Diluted headline earnings 22,216 14,404 8,651
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.
Recognition and measurement
Diluted earnings attributable to BHP shareholders are equal to the earnings attributable to BHP shareholders.
Prior to Group's corporate structure unification, the calculation of the number of ordinary shares used in the computation of basic earnings per share was 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. Effective from 31 January 2022, the aggregate of the weighted average number of ordinary shares of only BHP Group Limited is considered in the computation of basic earnings per share. Refer to note 16 'Share capital' for details on unification.
For the purposes of calculating diluted earnings per share, the effect of 10 million dilutive shares has been taken into account for the year ended 30 June 2022 (2021: 11 million shares; 2020: 12 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 2022, there are no instruments which are considered antidilutive (2021: nil; 2020: nil).
BHP Appendix 4E 2022 133

8 Trade and other receivables
2022 2021 US$M US$M
Trade receivables 4,411 4,450 Other receivables1 1,168 1,946
Total 5,579 6,396 Comprising: Current 5,426 6,059 Non-current 153 337
1 Other receivables mainly relate to indirect tax refunds and receivables from joint venture partners.
Recognition and measurement
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 profit or loss under IFRS 9.
The collectability of trade and other 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 34 per cent (2021: 31 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 2022, trade receivables of US$103 million (2021: US$68 million) were past due but not impaired. The majority of these receivables were less than 30 days overdue. At 30 June 2022, trade receivables are stated net of provisions for expected credit losses of US$3 million (2021: US$3 million).
9 Trade and other payables
2022 2021 US$M US$M
Trade payables 5,360 5,079 Other payables 1,327 1,948
Total 6,687 7,027 Comprising: Current 6,687 7,027 Non-current - -
10 Inventories
2022 2021
US$M US$M Definitions
Raw materials and consumables 1,713 1,904 Spares, consumables and other supplies yet to be utilised in the production process or in the rendering of services.
Work in progress 3,827 3,046 Commodities currently in the production process that require further processing by the Group to a saleable form.
Finished goods 710 834 Commodities ready-for-sale and not requiring further processing by the Group.
Total1 6,250 5,784
Comprising: Inventories classified as non-current are not expected to be utilised or sold within 12
Current 4,935 4,426 months after the reporting date or within the operating cycle of the business. Non-current 1,315 1,358
1 Inventory write-downs of US$163 million were recognised during the year (2021: US$58 million; 2020: US$37 million). Inventory write-downs of US$23 million made in previous periods were reversed during the year (2021: US$26 million; 2020: US$8 million).
134 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
10 Inventories continued
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 and involves estimates of expected metal recoveries and work in progress volumes, calculated using
available industry, engineering and scientific data. These estimates are periodically reassessed by the Group taking into account technical analysis and historical performance.
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.
Inventory quantities are assessed primarily through surveys and assays.
11 Property, plant and equipment
Land and Plant and Other mineral Assets under Exploration buildings equipment assets construction and evaluation Total US$M US$M US$M US$M US$M US$M
Net book value - 30 June 2022
At the beginning of the financial year 8,072 44,682 8,941 10,432 1,686 73,813
Additions1 41 1,935 792 5,872 137 8,777
Remeasurements of index-linked freight contracts2-(369) --(369) Depreciation for the year (663) (5,564) (276) - (6,503) Impairments for the year3 (14) (499) (2) - (515)
Disposals (3) (22) --(25)
Divestment and demerger of subsidiaries and operations4 (448) (8,007) (545) (3,549) (842) (13,391)
Transfers and other movements 1,094 3,344 (416) (3,724) (790) (492)
At the end of the financial year5 8,079 35,500 8,494 9,031 191 61,295
- Cost 14,823 81,218 14,353 9,755 981 121,130
- Accumulated depreciation and impairments (6,744) (45,718) (5,859) (724) (790) (59,835)
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 Additions1 25 3,841 797 5,961 93 10,717 Acquisition of subsidiaries & operations6-151 491 - 642 Remeasurements of index-linked freight contracts2-(59) --(59) Depreciation for the year (694) (5,748) (310) - (6,752) Impairments for the year3 (208) (877) (687) (745) (66) (2,583) Disposals (18) (9) --(27) Divestment and demerger of subsidiaries and operations-(14)-(2)-(16) Transfers and other movements 580 7,968 (2) (8,556) (461) (471) At the end of the financial year5 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)
1 Includes change in estimates and net foreign exchange gains/(losses) related to the closure and rehabilitation provisions for operating sites. Refer to note 15 'Closure and rehabilitation provisions'.
2 Relates to remeasurements of index-linked freight contracts including continuous voyage charters (CVCs). Refer to note 21 'Leases'.
3 Refer to note 13 'Impairment of non-current assets' for information on impairments.
4 BMC and Petroleum were disposed in May 2022 and June 2022 respectively. Refer to notes 3 'Exceptional items' and 27 'Discontinued operations' for more information.
5 Includes the carrying value of the Group's right-of-use assets relating to land and buildings and plant and equipment of US$2,361 million (2021: US$3,350 million). Refer to note 21 'Leases' for the movement of the right-of-use assets.
6 Relates to the acquisition of an additional 28 per cent working interest in Shenzi.
Recognition and measurement
Property, plant and equipment
Property, plant and equipment is recorded at cost less accumulated depreciation and impairment charges. Cost is the fair value of consideration given to acquire the asset at the time of its acquisition or construction and includes the direct costs of bringing the asset to the location and the condition necessary for operation and the estimated future costs of closure and rehabilitation of the facility.
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. Refer to note 21 'Leases' for further details. Right-of-use assets are presented within the category of property, plant and equipment according to the nature of the underlying asset leased.
Exploration and evaluation
Exploration costs are incurred to discover mineral resources. Evaluation costs are incurred to assess the technical feasibility and commercial viability of resources found.
Exploration and evaluation expenditure is charged to the income statement as incurred, except in the following circumstances in which case the expenditure may be capitalised: - the exploration and evaluation activity is within an area of interest that was previously acquired as an asset acquisition or in a business combination and measured at fair value on acquisition or - the existence of a commercially viable mineral deposit has been established
BHP Appendix 4E 2022 135

11 Property, plant and equipment continued
A regular review of each area of interest is undertaken 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.
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.
The Group may use funds sourced from external parties to finance the acquisition and development of assets and operations. Finance costs are expensed as incurred, except where they relate to the financing of construction or development of qualifying assets. Borrowing costs directly attributable to acquiring or constructing a qualifying asset are capitalised during the development phase. Development expenditure is net of proceeds from the saleable material extracted during the development phase. On completion of development, all assets included in assets under construction are reclassified as either plant and equipment or other mineral assets and depreciation commences.
Other mineral assets
Other mineral assets comprise:
- capitalised exploration, evaluation and development expenditure for assets in production - mineral rights acquired - capitalised development and production stripping costs
Overburden removal costs
The process of removing overburden and other waste materials to access mineral deposits is referred to as stripping. Stripping is necessary to obtain access to mineral deposits and occurs throughout the life of an open-pit mine. Development and production stripping costs are classified as other mineral assets in property, plant and equipment.
Stripping costs are accounted for separately for individual components of an ore body. The determination of components is dependent on the mine plan and other factors, including the size, shape and geotechnical aspects of an ore body. The Group accounts for stripping activities as follows:
Development stripping costs
These are initial overburden removal costs incurred to obtain access to mineral deposits that will be commercially produced. These costs are capitalised when it is probable that future economic benefits (access to mineral ores) will flow to the Group and costs can be measured reliably.
Once the production phase begins, capitalised development stripping costs are depreciated using the units of production method based on the proven and probable reserves of the relevant identified component of the ore body which the initial stripping activity benefits.
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 When the benefits of stripping activities are realised in When the benefits of stripping activities are improved access measurement criteria the form of inventory produced; the associated costs to future ore; production costs are capitalised when all the are recorded in accordance with the Group's inventory following criteria are met: 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 Inventory Other mineral assets within property, plant and equipment. stripping activity 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.
136 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
11 Property, plant and equipment continued
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.
Assets classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell and therefore not depreciated. BMC and Petroleum were classified as held for sale since November 2021 and December 2021 respectively.
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, including the expected impact of climate change and the transition to a lower carbon economy, 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.
Plant and Mineral rights and Capitalised exploration, evaluation and
Category Buildings equipment petroleum interests development expenditure
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$2,820 million as at 30 June 2022 (2021: US$2,469 million). The Group's commitments related to leases are included in note 21 'Leases'.
12 Intangible assets
2022 2021 Other Other
Goodwill intangibles Total Goodwill intangibles Total US$M US$M US$M US$M US$M US$M
Net book value
At the beginning of the financial year 1,197 240 1,437 1,197 377 1,574 Additions-36 36-23 23 Amortisation for the year-(60) (60)-(93) (93) Impairments for the year1 - --(52) (52) Disposals-(16) (16) - -Divestment and demerger of subsidiaries and operations2-(66) (66) - -Transfers and other movements-38 38-(15) (15)
At the end of the financial year 1,197 172 1,369 1,197 240 1,437
- Cost 1,197 1,363 2,560 1,197 1,506 2,703
- Accumulated amortisation and impairments-(1,191) (1,191)-(1,266) (1,266)
1 Refer to note 13 'Impairment of non-current assets' for information on impairments.
2 Relates to the merger of Petroleum with Woodside. Refer to note 27 'Discontinued operations' for more information.
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 (cost) 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.
Assets classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell and therefore not amortised.
BHP Appendix 4E 2022 137

13 Impairment of non-current assets
2022
Goodwill Equity-Property, plant and other accounted and equipment intangibles investment Total Cash generating unit Segment US$M US$M US$M US$M
Cerro Colorado Copper 455 - 455 Other Various 60 - 60 Total impairment of non-current assets 515 - 515
Reversal of impairment ---Net impairment of non-current assets - Continuing operations 515 - 515
Net impairment of non-current assets - Discontinued operations - -
Net impairment of non-current assets 515 - 515
2021 Restated
Goodwill Equity-Property, plant and other accounted and equipment intangibles investment Total Cash generating unit Segment US$M US$M US$M US$M
New South Wales Energy Coal Coal 1,025 32-1,057
CerrejÏŒn Coal - 466 466 Potash G&U 1,314 - 1,314 Other Various 135 1-136 Total impairment of non-current assets 2,474 33 466 2,973 Reversal of impairment ---Net impairment of non-current assets - Continuing operations 2,474 33 466 2,973 Net impairment of non-current assets - Discontinued operations 109 19-128 Net impairment of non-current assets 2,583 52 466 3,101
Recognition and measurement
Impairment tests for all non-financial assets (excluding goodwill) are performed when there is an indication of impairment. Goodwill is tested for impairment at least annually. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash generating unit (CGU) to which the asset belongs, being the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. If the carrying amount of the asset or CGU exceeds its recoverable amount, the asset or CGU 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 as impairment losses are not reversed in subsequent periods) 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 CGU. Such reversal is recognised in the income statement. 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).
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 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. FVLCD are based primarily on Level 3 inputs as defined in note 23 'Financial risk management' unless otherwise noted.
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.
138 BHP Appendix 4E 2022

and Operating Financial Financial
Review Governance Statements Glossary
13 Impairment of non-current assets continued
Impairment of non-current assets (excluding goodwill)
Impairment of non-current assets relating to the year ended 30 June 2022 are detailed below.
Impairment of Cerro Colorado
The Group recognised a pre-tax impairment charge of US$455 million. The impairment charge primarily relates to an increase in closure and rehabilitation provision at Cerro Colorado due to additional work required to re-profile waste dumps for closure and an increase in scope for the closure activities.
Impairments of non-current assets relating to the year ended 30 June 2021 are detailed below.
Impairment of New South Wales Energy Coal
The Group recognised pre-tax impairment charges of US$1,057 million. The recoverable amount of negative US$300 million as at 30 June 2021 was determined using VIU methodology, applying discounted cash flow (DCF) techniques. The valuation for NSWEC was 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.
Impairment of CerrejÏŒn
The Group recognised a pre-tax impairment charge of US$466 million. The recoverable amount of US$284 million as at 30 June 2021 represented a FVLCD based on the expected net sale proceeds.
Impairment of Potash assets
The Group recognised a pre-tax impairment charge of US$1,314 million. The recoverable amount of US$3.3 billion as at 30 June 2021 was determined using FVLCD methodology, applying DCF techniques. The valuation was most sensitive to changes in the long-term potash price outlook and the risking applied to the future development phases of the potash resource. The valuation applied a post-tax real discount rate of 6.5 per cent.
Impairment test for goodwill
The carrying amount of goodwill has been allocated to the CGUs, or groups of CGUs, as follows:
2022 2021 Cash generating unit US$M US$M
Olympic Dam 1,010 1,010 Other 187 187
Total goodwill 1,197 1,197
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
Impairment test conclusion The Group performed an impairment test of the Olympic Dam CGU, including goodwill, as at 31 December 2021 and an impairment charge was not required. A goodwill impairment test was not required at 30 June 2022 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 were the FVLCD methodology using DCF techniques has been applied in determining the recoverable amount of valuations calculated? Olympic Dam.
Significant assumptions The current valuation of Olympic Dam exceeds its carrying amount by approximately US$2.4 billion (2021: and sensitivities 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 6.5 per cent (2021: 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 6 per cent (2021: 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 (2021: US$187 million). This represents less than one per cent of net assets at 30 June 2022 (2021: less than one per cent). There was no impairment of other goodwill in the year to 30 June 2022 (2021: US$ nil).
BHP Appendix 4E 2022 139

13 Impairment of non-current assets continued
Key judgements and estimates
Judgements: Assessment of indicators of impairment or impairment reversal and the determination of CGUs for impairment purposes require
All estimates require management judgements and assumptions and significant management judgement. are subject to risk and uncertainty that may be beyond the control of Indicators of impairment may include changes in the Group's operating the Group; hence, there is a possibility that changes in circumstances and economic assumptions, including those arising from changes in will materially alter projections, which may impact the recoverable reserves or mine planning, updates to the Group's commodity supply, amount of assets/CGUs at each reporting date. While no indicators of demand and price forecasts, or the possible additional impacts from impairment, or impairment reversal, were identified across the Group's emerging risks including those related to climate change and the CGUs at 30 June 2022, with the exception of the Cerro Colorado CGU, transition to a low carbon economy. the carrying value of the Spence CGU is the most susceptible to changes
in the significant estimates outlined below in the next reporting period.
Climate change
Impacts related to climate change and the transition to a low carbon The significant estimates impacting the Group's recoverable amount economy may include: determinations are: - demand for the Group's commodities decreasing, due to policy, Commodity prices regulatory (including carbon pricing mechanisms), legal, technological, Commodity prices were based on latest internal forecasts which assume market or societal responses to climate change, resulting in a short-term market prices will revert to the Group's assessment of proportion of a CGU's reserves becoming incapable of extraction in an long-term price. These price forecasts reflect management's long-term economically viable fashion views of global supply and demand, built upon past experience of the - physical impacts related to acute risks resulting from increased commodity markets and are benchmarked with external sources of frequency or severity of extreme weather events, and those related to information such as analyst forecasts. Prices are adjusted based upon chronic risks resulting from longer-term changes in climate patterns premiums or discounts applied to global price markers to reflect the The Group's assessment of the potential impacts of climate change and location, nature and quality of the Group's production, or to take into the transition to a low carbon economy continues to mature. As outlined account contracted prices. in the Basis of Preparation, where sufficiently developed, the potential Future production volumes financial impacts on the Group of climate change and the transition to Estimated production volumes were based on detailed data and took a low carbon economy have been considered in the assessment of into account development plans established by management as part indicators of impairment, including: of the Group's long-term planning process. When estimating FVLCD, assumptions reflect all reserves and resources that a market participant - the Group's current assumptions relating to demand for commodities would consider when valuing the respective CGU, which in some cases and carbon pricing, including their impact on the Group's long-term are broader in scope than the reserves that would be used in a VIU price forecasts test. In determining FVLCD, risk factors may be applied to reserves and - the Group's operational emissions reduction strategy resources which do not meet the criteria to be treated as proved. Estimates: The Group performs a recoverable amount determination
Cash outflows (including operating costs, capital expenditure, closure and for an asset or CGU when there is an indication of impairment or rehabilitation costs and taxes) impairment reversal.
Cash outflows are based on internal budgets and forecasts and life of
When the recoverable amount is measured by reference to FVLCD, asset plans. Cost assumptions reflect management experience and in the absence of quoted market prices or binding sale agreement, expectations. Tax assumptions reflect existing tax and royalty regimes estimates are made regarding the present value of future post-tax cash and rates applicable in the jurisdiction of the CGU. In the case of FVLCD, flows. These estimates are made from the perspective of a market cash flow projections include the anticipated cash flow effects of any participant and include prices, future production volumes, operating capital expenditure to enhance production or reduce cost where a market costs, capital expenditure, closure and rehabilitation costs, taxes, risking participant may take a consistent view. VIU does not take into account factors applied to cash flows and discount rates. The cash flow forecasts future development. may include net cash flows expected from the extraction, processing Discount rates and sale of material that does not currently qualify for inclusion in ore reserves. Reserves and resources are included in the assessment The Group uses real post-tax discount rates applied to real post-tax cash of FVLCD to the extent that it is considered probable that a market flows. The discount rates are derived using the weighted average cost of participant would attribute value to them. capital methodology. Adjustments to the rates are made for any risks that are not reflected in the underlying cash flows, including country risk.
When recoverable amount is measured using VIU, estimates are made regarding the present value of future cash flows based on internal budgets and forecasts and life of asset plans. Key estimates are similar to those identified for FVLCD, although some assumptions and values may differ as they reflect the perspective of management rather than a market participant.
140 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
14 Deferred tax balances
The movement for the year in the Group's net deferred tax position is as follows:
2022 2021 2020 US$M US$M US$M
Net deferred tax (liability)/asset
At the beginning of the financial year (1,402) (91) (491) Income tax (charge)/credit recorded in the income statement1 (125) (1,325) 335 Income tax (charge)/credit recorded directly in equity (42) 42 34 Divestment and demerger of subsidiaries and operations2 (1,439) -Other movements 1 (28) 31
At the end of the financial year (3,007) (1,402) (91)
1 Includes Discontinued operations income tax (charge)/credit to the income statement of US$(61) million (2021: US$273 million; 2020: US$247 million).
2 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 'Exceptional items' and 27 'Discontinued operations' for more information.
For recognition and measurement refer to note 6 'Income tax expense'.
The composition of the Group's net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense charged/(credited) to the income statement is as follows:
Deferred tax assets Deferred tax liabilities Charged/(credited) to the income statement 2022 2021 2022 2021 2022 2021 2020 US$M US$M US$M US$M US$M US$M US$M
Type of temporary difference
Depreciation1 (526) (1,349) 4,844 4,716 554 488 1,394 Exploration expenditure 9 51 --13 347 51
Employee benefits 21 94 (322) (333) 20 (68) (38) Closure and rehabilitation 104 638 (1,448) (2,086) 24 (515) (334) Resource rent tax -122-368 (129) (309) (119) Other provisions 70 108 (192) (227) 49 77 (268) Deferred income 51 11 (1) (16) (31) (31) 33 Deferred charges (57) (36) 584 602 7 68 (132) Investments, including foreign tax credits 139 147 365 671 (298) 414 (77) Foreign exchange gains and losses (13) (3) 154 133 33 63 (18) Tax losses 225 1,999 (307) (82) 28 678 (148) Lease liability1 17 68 (594) (658) (10) 67 (793) Other 16 62 (20) 226 (135) 46 114 Total 56 1,912 3,063 3,314 125 1,325 (335)
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'.
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$18 million at 30 June 2022 (2021: US$1,675 million). The decrease from FY2021 is primarily attributable to the disposal of assets giving rise to these deferred tax assets as part of the merger of Petroleum with Woodside. 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'.
BHP Appendix 4E 2022 141

14 Deferred tax balances continued
The composition of the Group's unrecognised deferred tax assets and liabilities is as follows:
2022 2021 US$M US$M
Unrecognised deferred tax assets
Tax losses and tax credits1 8,462 5,944 Investments in subsidiaries2 1,597 1,712 Deductible temporary differences relating to PRRT3 2,402 Mineral rights4 2,781 3,359 Other deductible temporary differences5 1,777 1,630
Total unrecognised deferred tax assets 14,617 15,047 Unrecognised deferred tax liabilities
Investments in subsidiaries2 2,099 2,203 Future taxable temporary differences relating to unrecognised deferred tax asset for PRRT3 720
Total unrecognised deferred tax liabilities 2,099 2,923
1 At 30 June 2022, the Group had income and capital tax losses with a tax benefit of US$5,777 million (2021: US$3,569 million) and tax credits of US$2,685 million (2021: US$2,375 million), which are not recognised as deferred tax assets, because it is not probable that future taxable profits or capital gains will be available against which the Group can utilise the benefits.
The gross amount of tax losses carried forward that have not been recognised is as follows:
2022 2021
Year of expiry US$M US$M
Income tax losses
Not later than one year 13 Later than one year and not later than two years 5
Later than two years and not later than five years 43 105 Later than five years and not later than 10 years 248 1,449 Later than 10 years and not later than 20 years 1,290 3,347 Unlimited 4,157 4,799
5,738 9,718
Capital tax losses
Not later than one year Later than two years and not later than five years
Unlimited 14,173 4,238
Gross amount of tax losses not recognised 19,911 13,956 Tax effect of total losses not recognised 5,777 3,569
Of the US$2,685 million of tax credits, US$2,129 million expires not later than 10 years and US$556 million expires later than 10 years and not later than 20 years.
2 The Group had deferred tax assets and deferred tax liabilities associated with undistributed earnings of subsidiaries that have not been recognised because the Group is able to control the timing of the reversal of the temporary differences and it is not probable that these differences will reverse in the foreseeable future. Where the Group has undistributed earnings held by associates and joint interests, the deferred tax liability will be recognised as there is no ability to control the timing of the potential distributions.
3 The Group had unrecognised deferred tax assets relating to Australian Petroleum Resource Rent Tax (PRRT) in FY2021. The assets giving rise to these deferred tax assets were disposed as part of the merger of Petroleum with Woodside. Refer to note 27 'Discontinued operations' for more information.
4 The Group had deductible temporary differences relating to mineral rights for which deferred tax assets had not been recognised because it is not probable that future capital gains will be available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation.
5 The Group had other deductible temporary differences for which deferred tax assets had not been recognised because it is not probable that future taxable profits will be available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation.
15 Closure and rehabilitation provisions
2022 2021 US$M US$M
At the beginning of the financial year 11,910 8,810 Capitalised amounts for operating sites: Change in estimate 1,579 1,974 Exchange translation (694) 483 Adjustments charged/(credited) to the income statement: Increases to existing and new provisions 174 564 Exchange translation (58) 76 Released during the year (42) (157) Other adjustments to the provision:
Amortisation of discounting impacting net finance costs 554 380 Acquisition of subsidiaries and operations 179 Divestment and demerger of subsidiaries and operations (4,477) (81) Expenditure on closure and rehabilitations activities (316) (321) Exchange variations impacting foreign currency translation reserve (3) 3 Other movements 62
At the end of the financial year 8,689 11,910 Comprising: Current 475 591 Non-current 8,214 11,319 Operating sites 6,198 9,279 Closed sites 2,491 2,631
142 BHP Appendix 4E 2022
Operating and Financial Financial
Review Governance Statements Glossary
15 Closure and rehabilitation provisions continued
The Group is required to close and 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 closure 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 and self-sustaining condition, consistent with the agreed post-closure 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
Initial recognition and measurement Subsequent measurement
Closure and rehabilitation provisions are The closure and rehabilitation asset, recognised within property, plant and equipment, is depreciated over initially recognised when an environmental the life of the operations. The value of the provision is progressively increased over time as the effect of disturbance first occurs. The individual site 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 close continues to reflect the best estimate of the obligation. If necessary, the provision is remeasured to account the relevant site using current standards for factors such as: and techniques and taking into account risks and uncertainties. Individual site - additional disturbance during the period provisions are discounted to their present - revisions to estimated reserves, resources and lives of operations including any changes to expected value using currency specific discount operating lives arising from the Group's latest assessment of the potential impacts of climate change rates aligned to the estimated timing of and the transition to a low carbon economy cash outflows.
- developments in technology
When provisions for closure and - changes to regulatory requirements and environmental management strategies rehabilitation are initially recognised, the
- changes in the estimated extent and costs of anticipated activities, including the effects of inflation and corresponding cost is capitalised as an movements in foreign exchange rates asset, representing part of the cost of - movements in interest rates affecting the discount rate applied acquiring the future economic benefits of the operation. Changes to the closure and rehabilitation estimate for operating sites are added to, or deducted from, the related asset and amortised on a prospective basis over the remaining life of the operation, generally applying the units of production method.
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$74 million in the year ended 30 June 2022 (2021: US$483 million; 2020:
US$669 million).
BHP Appendix 4E 2022 143

15 Closure and rehabilitation provisions continued
Key estimates
Closure cost estimates are generally based on conceptual level studies For BMA, the increase largely reflects a preliminary assessment of the early in the operating life of an asset with more detailed studies and potential impacts on BMA mine lives resulting from: planning performed as closure risks (including those related to climate
- the significant increase in coal royalties applicable in Queensland from change) are identified and/or as an asset, or parts thereof, near closure.
1 July 2022
As such, the recognition and measurement of closure and rehabilitation - consideration of the Group's long-term outlook for metallurgical coal provisions requires the use of significant estimates and assumptions, commodity prices, which reflects a range of drivers of commodity including, but not limited to: demand and supply, for example, the latest climate-related - the extent (due to legal or constructive obligations) of potential announcements from key market countries activities required for the removal of infrastructure, decharacterisation These factors have resulted in the Group recognising that the end of of tailings storage facilities and rehabilitation activities operations at BMA sites may be earlier than previously anticipated. - costs associated with future closure activities
- the extent and period of post-closure monitoring and maintenance, The best estimate of the impact on the estimated closure cash flows and including water management their timing, and therefore the discounting of the provision, contributed to an increase in the provision, and associated rehabilitation asset, of - applicable discount rates approximately US$750 million. Given the timing of the announcement of
- the timing of cash flows and ultimate closure of operations the change to the Queensland coal royalty regime and the preliminary
The extent, cost and timing of future closure activities may also be nature of the assessment, further changes to the provision may arise in impacted by the potential physical impacts of climate change. future reporting periods.
In estimating the potential cost of closure activities, the Group considers At Cerro Colorado, additional work required to re-profile waste dumps factors such as long-term weather outlooks, for example forecast for closure and an increase in scope for other closure activities have changes in rainfall patterns. Closure cost estimates also consider the contributed to an increase in the closure provision of approximately impact of the Group's energy transition strategy on the costs and timing US$400 million. As operations are ongoing at Cerro Colorado the of performing closure activities and the impact of new technology when increase has initially been capitalised. However, given the proximity appropriately developed and tested. For example, closure cost estimates to closure and the estimated future cash flows of Cerro Colorado the largely continue to reflect the use of existing fuel sources for the Group's resulting rehabilitation asset has been impaired as outlined in note 13 equipment while the Group continues to invest in the development of 'Impairment of non-current assets'. alternative fuel sources and fleet electrification. While the closure and rehabilitation provisions reflect management's best Estimates for post-closure monitoring and maintenance reflect the estimates based on current knowledge and information, further studies, Group's strategies for individual sites, which may include possible trials and detailed analysis of relevant knowledge and resultant closure relinquishment. The period of monitoring and maintenance included in activities for individual assets continue to be performed throughout the the provision requires judgement and considers regulatory and licencing life of asset. Such studies and analysis can impact the estimated costs requirements, the outcomes of studies and management's current of closure activities. Estimates can also be impacted by the emergence assessment of stakeholder expectations. As post-closure monitoring of new closure and rehabilitation techniques, changes in regulatory and maintenance may be required for significant periods beyond the requirements and stakeholder expectations for closure (including costs completion of other closure activities, it is exposed to the potential long- associated with equitable transition), development of new technologies, term impacts of climate change, particularly changes in rainfall patterns. risks relating to climate change and the transition to a low carbon
While reflecting management's current best estimate, the cost of post- economy, and experience at other operations. These uncertainties may closure monitoring and maintenance may change in future reporting result in future actual expenditure differing from the amounts currently periods as the understanding of, and potential long-term impacts from, provided for in the balance sheet. climate change continue to evolve.
Sensitivity
While progressive closure is performed across a number of operations, A 0.5 per cent increase in the discount rates applied at 30 June 2022 significant activities are generally undertaken at the end of the production would result in a decrease to the closure and rehabilitation provision life at the individual sites, the estimated timing of which is informed by of approximately US$675 million, a decrease in property, plant and the Group's current assumptions relating to demand for commodities and equipment of approximately US$490 million in relation to operating carbon pricing, and their impact on the Group's long-term price forecasts. sites and an income statement credit of approximately US$185 million in respect of closed sites. In addition, the change would result in a Remaining production lives range from 2-104 years (2021: 3-91 years). decrease of approximately US$70 million to depreciation expense and Given the generally shorter remaining operational lives of the Group's a US$25 million increment in net finance costs for the year ending previously held Petroleum assets, the average remaining production
30 June 2023. life for all operating sites, weighted by current closure provision, has increased to approximately 29 years (2021: 27 years). The discount Given the long-lived nature of the majority of the Group's assets, the rates applied to the Group's closure and rehabilitation provisions are majority of final closure activities are generally not expected to occur for determined by reference to the currency of the closure cash flows, the a significant period of time. period over which the cash flows will be incurred and prevailing market However, a one-year acceleration in forecast cash flows of the Group's interest rates (where available). The Group continues to monitor current closure and rehabilitation provisions, in isolation, would result in an market conditions with no change made to the Group's discount rates in increase to the provision of approximately US$185 million, an increase in the current year. property, plant and equipment of US$125 million in relation to operating The increase in closure and rehabilitation provisions relating to continuing sites and an income statement charge of US$60 million in respect of
operating sites reflects updates to the expected cost and timing of closed sites. closure activities across the Group's portfolio, with the most significant increases in the year ended 30 June 2022 being at BHP Mitsubishi Alliance (BMA) and Cerro Colorado.
144 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
16 Share capital
BHP Group Limited BHP Group Plc
2022 2021 2020 2022 2021 2020 shares shares shares shares shares shares
Share capital issued
Opening number of shares 2,945,851,394 2,945,851,394 2,945,851,394 2,112,071,796 2,112,071,796 2,112,071,796 Issue of shares 4,400,000 - - -Corporate structure unification 2,112,071,796 - (2,112,071,796) -
Purchase of shares by ESOP Trusts (8,704,669) (7,587,353) (5,975,189) (63,567) (185,054) (185,297) Employee share awards exercised following vesting 8,522,684 6,948,683 6,893,113 77,748 173,644 222,245 Movement in treasury shares under Employee Share Plans 181,985 638,670 (917,924) (14,181) 11,410 (36,948) Closing number of shares 5,062,323,190 2,945,851,394 2,945,851,394-2,112,071,796 2,112,071,796
Comprising:
Shares held by the public 5,061,272,144 2,944,982,333 2,945,621,003-2,112,057,615 2,112,069,025 Treasury shares 1,051,046 869,061 230,391-14,181 2,771
Other share classes
5.5% Preference shares of Ł1 each - --50,000 50,000 Special Voting share of no par value-1 1 - -Special Voting share of US$0.50 par value - --1 1 DLC Dividend share-1 1 - -
During August 2021, BHP Group Limited issued 4,400,000 fully paid ordinary shares to the BHP Billiton Limited Employee Equity Trust at A$52.99 per share, to satisfy the vesting of employee share awards and related dividend equivalent entitlements under those employee share plans.
On 3 September 2021, BHP Group Plc acquired by way of gift from J.P. Morgan Limited the 50,000 issued 5.5 per cent cumulative preference shares of Ł1.00, in the capital of BHP Group Plc. These preference shares held by BHP Group Plc were cancelled on 31 January 2022.
On 31 January 2022, 2,112,071,796 fully paid ordinary shares in BHP Group Limited were issued to BHP Group Plc shareholders in a one for one exchange of their BHP Group Plc ordinary shares, resulting in BHP Group Limited becoming the sole parent company of the Group with a single set of shareholders. BHP Group Plc had one Special Voting share on issue and BHP Group Limited had one Special Voting share and one DLC dividend share on issue to facilitate operation of the Group's dual listed structure. These shares were bought back for nominal value in January 2022 and subsequently cancelled. Share capital of BHP Group Limited at 30 June 2022 is composed of the following classes of shares:
Ordinary shares fully paid Treasury shares
Each fully paid ordinary share of BHP Group Treasury shares are shares of BHP Group Limited that are held by the ESOP Trusts for the purpose of Limited carries the right to one vote at a meeting issuing shares to employees under the Group's Employee Share Plans. Treasury shares are recognised at of the Company. cost and deducted from equity, net of any income tax effects. When the treasury shares are subsequently sold or reissued, any consideration received, net of any directly attributable costs and income tax effects, is recognised as an increase in equity. Any difference between the carrying amount and the consideration, if reissued, is recognised in retained earnings.
The following classes of shares existed prior to the Group's unification on 31 January 2022:
Special Voting shares Preference shares DLC Dividend share
Each of BHP Group Limited and BHP Group Plc Preference shares have the right to repayment of The DLC Dividend share supported the Dual Listed issued one Special Voting share to facilitate joint the amount paid up on the nominal value and any Company (DLC) equalisation principles in place since voting by shareholders of BHP Group Limited and unpaid dividends in priority to the holders of any the merger in 2001, including the requirement that BHP Group Plc on Joint Electorate Actions. other class of shares in BHP Group Plc on a return ordinary shareholders of BHP Group Plc and BHP of capital or winding up. The holders of preference Group Limited are paid equal cash dividends per shares have limited voting rights if payment of share. This share enabled efficient and flexible capital the preference dividends are six months or more management across the DLC and was issued on in arrears or a resolution is passed changing the 23 February 2016 at par value of US$10. rights of the preference shareholders.
BHP Appendix 4E 2022 145

17 Other equity
2022 2021 2020
US$M US$M US$M Recognition and measurement
Share premium account-518 518 The share premium account represented the premium paid on the issue of BHP Group Plc shares recognised in accordance with the UK Companies Act 2006. It was transferred to the common control reserve as part of the unification of the Group's corporate structure.
Capital redemption reserve-177 177 The capital redemption reserve represented the par value of BHP Group Plc shares that were purchased and subsequently cancelled. It was transferred to the common control reserve as part of unification of the Group's corporate structure. Common control reserves (1,603) - The common control reserve arose on unification of the Group's corporate structure and represents the residual on consolidation between BHP Group Ltd's investment in BHP Group Plc's and BHP Group Plc's share capital, share premium and capital redemption reserve at the time of unification.
Employee share awards reserve 174 268 246 The employee share awards reserve represents the accrued employee entitlements to 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 41 100 50 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 (19) (54) (23) 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.
Foreign currency translation (14) 43 39 The foreign currency translation reserve represents exchange differences arising from reserve the translation of non-US dollar functional currency operations within the Group into US dollars.
Equity investments reserve (8) 15 16 The equity investment 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. Non-controlling interest 1,441 1,283 1,283 The non-controlling interest contribution reserve represents the excess of contribution reserve consideration received over the book value of net assets attributable to equity instruments when acquired by non-controlling interests.
Total reserves 12 2,350 2,306
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:
2022 2021 Other individually Other individually immaterial immaterial Minera subsidiaries Minera subsidiaries Escondida (incl. intra-group Escondida (incl. intra-group
US$M Limitada eliminations) Total Limitada eliminations) Total
Group share (per cent) 57.5 57.5 Current assets 2,929 2,996 Non-current assets 11,636 11,867 Current liabilities (2,192) (1,912) Non-current liabilities (4,762) (4,733) Net assets 7,611 8,218
Net assets attributable to NCI 3,235 574 3,809 3,493 848 4,341
Revenue 9,500 9,470
Profit after taxation 3,522 3,605 Other comprehensive income 11 27 Total comprehensive income 3,533 3,632
Profit after taxation attributable to NCI 1,497 658 2,155 1,532 615 2,147
Other comprehensive income attributable to NCI 5-5 11-11
Net operating cash flow 4,519 5,007 Net investing cash flow (860) (655) Net financing cash flow (4,029) (4,001)
Dividends paid to NCI 1,760 780 2,540 1,590 537 2,127
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.
146 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
18 Dividends
Year ended 30 June 2022 Year ended 30 June 2021 Year ended 30 June 2020 Per share Total Per share Total Per share Total US cents US$M US cents US$M US cents US$M
Dividends paid during the period1
Prior year final dividend 200 10,119 55 2,779 78 3,946 Interim dividend 150 7,601 101 5,115 65 3,288 350 17,720 156 7,894 143 7,234
1 5.5 per cent dividend on 50,000 preference shares of Ł1 each determined and paid for financial years 2021 and 2020. No dividend paid for the financial year 2022.
These preference shares were cancelled on 31 January 2022.
Dividends paid during the period differs from the amount of dividends paid in the Consolidated 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$127 million were received as part of the funding of the interim dividend and is disclosed in Proceeds/(settlements) of cash management related instruments in the Consolidated Cash Flow Statement.
Prior to the corporate structure unification, the Dual Listed Company merger terms required that ordinary shareholders of BHP Group Limited and BHP
Group Plc were paid equal cash dividends on a per share basis.
Each American Depositary Share (ADS) represents two ordinary shares of BHP Group Limited. Dividends determined on each ADS represent twice the dividend determined on BHP Group Limited ordinary share.
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 16 August 2022, BHP Group Limited determined a final dividend of 175 US cents per share (US$8,857 million), which will be paid on 22 September 2022 (30 June 2021: final dividend of 200 US cents per share - US$10,114 million; 30 June 2020: final dividend of
55 US cents per share - US$2,782 million).
BHP Group Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of 30 per cent.
2022 2021 2020 US$M US$M US$M
Franking credits as at 30 June 7,007 14,302 10,980 Franking credits arising from the payment of current tax 2,043 1,799 471
Total franking credits available1 9,050 16,101 11,451
1 The payment of the final 2022 dividend determined after 30 June 2022 will reduce the franking account balance by US$3,796 million.
In addition to dividends paid, the Group made an in specie dividend to eligible BHP shareholders during the period by distributing the 914,768,948 Woodside shares it received as consideration for the sale of BHP Petroleum. The closing price of Woodside shares on ASX on 31 May 2022 was A$29.76. The implied value of the in specie dividend was therefore A$27.2 billion (US$19.6 billion). At this valuation, the in specie dividend was approximately A$5.38 (US$3.86), with A$2.30 (US$1.66) of franking credits being distributed, per BHP share. Further detail are detailed in note 27 'Discontinued operations'.
19 Provisions for dividends and other liabilities
The disclosure below excludes closure and rehabilitation provisions (refer to note 15 'Closure and rehabilitation provisions'), employee benefits, restructuring and post-retirement employee benefits provisions (refer to note 26 'Employee benefits, restructuring and post-retirement employee benefits provisions') and provisions related to the Samarco dam failure (refer to note 4 'Significant events - Samarco dam failure').
2022 2021 US$M US$M
Movement in provision for dividends and other liabilities
At the beginning of the financial year 581 1,240 Dividends determined 17,720 7,894 Charge/(credit) for the year: Underlying 493 260 Discounting 1 2 Exchange variations 122 20 Released during the year (48) (43) Utilisation (96) (267) Dividends paid (17,851) (7,901) Divestment and demerger of subsidiaries and operations (146) -Transfers and other movements (102) (624)
At the end of the financial year 674 581 Comprising: Current 356 293 Non-current 318 288
BHP Appendix 4E 2022 147

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.
Under IFRS 16/AASB16 'Leases', vessel lease contracts 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.
2022 2021
US$M Current Non-current Current Non-current
Interest bearing liabilities
Bank loans 397 2,075 437 1,823 Notes and debentures 1,690 9,673 1,244 13,525 Lease liabilities 519 2,057 889 3,007 Bank overdraft and short-term borrowings - -Other 16 1 58 -
Total interest bearing liabilities 2,622 13,806 2,628 18,355
Less: Lease liability associated with index-linked freight contracts 113 161 346 679
Less: Cash and cash equivalents
Cash 5,728-4,408 -Short-term deposits 11,508-10,838 -
Less: Total cash and cash equivalents 17,236-15,246 -Less: Derivatives included in net debt
Net debt management related instruments1 (358) (1,330) 20 537 Net cash management related instruments2 273-34 -
Less: Total derivatives included in net debt (85) (1,330) 54 537 Net debt 333 4,121 Net assets 48,766 55,605 Gearing 0.7% 6.9%
1 Represents the net cross currency and interest rate swaps designated as effective hedging instruments included within current and non-current other financial assets and liabilities.
2 Represents the net forward exchange contracts included within current and non-current other financial assets and liabilities.
Cash and short-term deposits are disclosed in the cash flow statement net of bank overdrafts and interest bearing liabilities at call.
2022 2021 2020 US$M US$M US$M
Total cash and cash equivalents 17,236 15,246 13,426 Bank overdrafts and short-term borrowings - -
Total cash and cash equivalents, net of overdrafts 17,236 15,246 13,426
Cash and cash equivalents includes US$127 million (2021: US$159 million) restricted by legal or contractual arrangements.
Recognition and measurement
Cash and short-term deposits in the balance sheet comprise cash at bank and on hand and highly liquid cash deposits with short-term maturities that are readily convertible to known amounts of cash with insignificant risk of change in value. The Group considers that the carrying value of cash and cash equivalents approximate fair value due to their short-term to maturity. Refer to note 21 'Leases' and note 23 'Financial risk management' for the recognition and measurement principles for lease liabilities and other financial liabilities.
Interest bearing liabilities and cash and cash equivalents include balances denominated in the following currencies:
Interest bearing liabilities Cash and cash equivalents 2022 2021 2022 2021 US$M US$M US$M US$M
USD 8,813 11,146 7,654 12,003 EUR 3,463 4,505 2,656 4 GBP 2,621 3,415 30 32 AUD 783 1,053 3,360 573 CAD 584 635 3,437 2,455 Other 164 229 99 179
Total 16,428 20,983 17,236 15,246
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.
148 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
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 FY2022 and Moody's affirmed its credit rating on 2 June 2022. 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 following the announcement of the proposed merger of our petroleum business with Woodside. Upon completion of the merger, on 1 June 2022 Standard & Poor's lowered the Group's long-term credit rating by one notch, removed the credit rating from CreditWatch, and confirmed a credit rating of A-/A-1 outlook stable (long-term/short-term).
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$5.5 billion. As at 30 June 2022, US$ nil commercial paper was drawn (2021: US$ nil). The facility was amended in November 2021 for IBOR transition and is due to mature on 10 October 2026. A commitment fee is payable on the undrawn balance and interest is payable on any drawn balance comprising a reference rate plus a margin. 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:
Bank loans, Expected Derivatives Obligations Trade 2022 debentures and future interest related to Other under lease and other
US$M other loans payments debentures derivatives liabilities payables1 Total
Due for payment:
In one year or less or on demand 2,109 492 525 221 579 6,608 10,534 In more than one year but not more than two years 1,634 427 300 112 443-2,916
In more than two years but not more than five years 2,609 1,032 492 246 936-5,315
In more than five years 7,550 3,705 1,467 245 1,470-14,437 Total 13,902 5,656 2,784 824 3,428 6,608 33,202 Carrying amount 13,852-1,824 752 2,576 6,608 25,612
Bank loans, Expected Derivatives Obligations Trade 2021 debentures and future interest related to Other under lease and other
US$M other loans payments debentures derivatives liabilities payables1 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
1 Excludes input taxes of US$79 million (2021: US$176 million) included in other payables. Refer to note 9 'Trade and other payables'.
BHP Appendix 4E 2022 149

21 Leases
Movements in the Group's lease liabilities during the year are as follows:
2022 2021 US$M US$M
At the beginning of the financial year 3,896 3,443 Additions 866 1,223 Remeasurements of index-linked freight contracts (369) (59) Lease payments1 (1,288) (879) Foreign exchange movement (126) 115 Amortisation of discounting 125 109 Divestment and demerger of subsidiaries and operations2 (492) -Transfers and other movements (36) (56)
At the end of the financial year 2,576 3,896 Comprising: Current liabilities 519 889 Non-current liabilities 2,057 3,007
1 Includes US$39 million (2021: US$45 million) related to Discontinued operations.
2 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 'Exceptional items' and 27 'Discontinued operations' for more information.
A significant proportion by value of the Group's lease contracts relate to plant facilities, office buildings and vessels. Lease terms for plant facilities and office buildings typically run for over 10 years and vessels for four to 10 years. Other leases include port facilities, various equipment and vehicles.
The lease contracts contain a wide range of different terms and conditions including extension and termination options and variable lease payments. The Group's lease obligations are included in the Group's Interest bearing liabilities and, with the exception of vessel lease contracts that are priced with reference to a freight index, form part of the Group's net debt.
The maturity profile of lease liabilities based on the undiscounted contractual amounts is as follows:
2022 2021 Lease liability US$M US$M
Due for payment:
In one year or less or on demand 579 980 In more than one year but not more than two years 443 680
In more than two years but not more than five years 936 1,397 In more than five years1 1,470 1,842
Total 3,428 4,899 Carrying amount 2,576 3,896
1 Includes US$707 million (2021: US$878 million) due for payment in more than ten years.
At 30 June 2022, commitments for leases not yet commenced based on undiscounted contractual amounts were US$928 million (2021: US$457 million). Movements in the Group's right-of-use assets during the year are as follows:
2022 2021 Land and Plant and Land and Plant and buildings equipment Total buildings equipment Total US$M US$M US$M US$M US$M US$M
Net book value
At the beginning of the financial year 638 2,712 3,350 689 2,358 3,047 Additions 41 825 866 25 1,227 1,252 Remeasurements of index-linked freight contracts-(369) (369)-(59) (59) Depreciation expensed during the period (103) (872) (975) (111) (670) (781)
Depreciation classified as exploration-(3) (3)-(19) (19) Impairments for the year (7)-(7) (30) (2) (32) Divestment and demerger of subsidiaries and operations1 (116) (313) (429) - -Transfers and other movements (1) (71) (72) 65 (123) (58)
At the end of the financial year 452 1,909 2,361 638 2,712 3,350
- Cost 745 4,307 5,052 897 4,393 5,290
- Accumulated depreciation and impairments (293) (2,398) (2,691) (259) (1,681) (1,940)
1 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 'Exceptional items' and 27 'Discontinued operations' for more information.
Right-of-use assets are included within the underlying asset classes in Property, plant and equipment. Refer to note 11 'Property, plant and equipment'.
150 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
21 Leases continued
Amounts recorded in the income statement and the cash flow statement for the year were:
2021 2020 2022 US$M US$M
US$M Restated Restated Included within
Income statement
Depreciation of right-of-use assets 964 753 623 Profit from operations Short-term, low-value and variable lease costs1 847 834 637 Profit from operations Interest on lease liabilities 119 102 82 Financial expenses
Cash flow statement
Principal lease payments 1,130 732 632 Cash flows from financing activities Lease interest payments 119 102 82 Cash flows from operating activities
1 Relates to US$585 million of variable lease costs (2021: US$510 million; 2020: US$415 million), US$222 million of short-term lease costs (2021: US$294 million; 2020: US$201 million) and US$40 million of low-value lease costs (2021: US$30 million; 2020: US$21 million). Variable lease costs include contracts for hire of mining service equipment, drill rigs and transportation services. These contracts contain variable 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. Non-lease components are accounted for in accordance with the accounting policies applied to each underlying good or service received.
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 received.
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 the unwinding of finance charges on the lease liability.
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 sub-lease) 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 (as lessor) 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 head lease contract but sub-leases the associated right-of-use asset (as lessee), 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 The incremental borrowing rate reflects the rates of interest a lessee lease require the Group to apply significant judgement in evaluating would have to pay to borrow over a similar term, with similar security, the whether the Group controls the right to direct the use of assets and funds necessary to obtain an asset of similar value to the right-of-use therefore whether the contract contains a lease. Management considers asset in a similar economic environment. Under the Group's portfolio all facts and circumstances in determining whether the Group or the approach to debt management, the Group does not specifically borrow for supplier has the rights to direct how, and for what purpose, the underlying asset purchases. Therefore, the incremental borrowing rate is estimated assets are used in certain mining contracts and other arrangements, referencing the Group's corporate borrowing portfolio and other similar including outsourcing and shipping arrangements. Judgement is used to rated entities, adjusted to reflect the terms and conditions of the lease assess which decision-making rights mostly affect the benefits of use of (including the impact of currency, credit rating of subsidiary entering the assets for each arrangement. 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 between lease Estimates: Where the Group cannot readily determine the interest rate and non-lease components. implicit in the lease, estimation is involved in the determination of the weighted average incremental borrowing rate to measure lease liabilities.
BHP Appendix 4E 2022 151

22 Net finance costs
2021 2020 2022 US$M US$M
US$M Restated Restated
Financial expenses
Interest expense using the effective interest rate method:
Interest on bank loans, overdrafts and all other borrowings 491 607 1,093 Interest capitalised at 2.90% (2021: 2.83%; 2020: 4.14%)1 (113) (204) (265) Interest on lease liabilities 119 102 82 Discounting on provisions and other liabilities 645 353 343
Other gains and losses:
Fair value change on hedged loans (1,286) (779) 721 Fair value change on hedging derivatives 1,277 704 (788) Loss on bond repurchase2-395 -Exchange variations on net debt (99) 99 (18) Other 16 13 24
Total financial expenses 1,050 1,290 1,192
Financial income
Interest income (81) (67) (334)
Net finance costs 969 1,223 858
1 Interest has been capitalised at the rate of interest applicable to the specific borrowings financing the assets under construction or, where financed through general borrowings, at a capitalisation rate representing the average interest rate on such borrowings. Tax relief for capitalised interest is approximately US$34 million (2021: US$61 million; 2020: US$80 million).
2 Relates to the additional cost on settlement of two multi-currency hybrid debt repurchase programs and the unwind of the associated hedges, included in a total cash payment of US$3,402 million disclosed in repayment of interest bearing liabilities in the Consolidated Cash Flow Statement.
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.
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.
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. 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 Economic hedging of commodity sales, operating costs, short-term cash deposits, other monetary items and debt instruments
Where Group commodity production is sold to customers on pricing terms that deviate from the Measuring and reporting the exposure in relevant index target and where a relevant derivatives market exists, financial instruments may customer commodity contracts and issued be executed as an economic hedge to align the revenue price exposure with the index target and debt instruments.
US dollars.
Where debt is issued in a currency other than the US dollar and/or at a fixed interest rate, fair value
Executing hedging derivatives to align the and cash flow hedges may be executed to align the debt exposure with the Group's functional total group exposure to the index target. currency of 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
US dollars, derivative financial instruments may be executed to align the foreign exchange exposure to Execution of transactions within the Group's functional currency of US dollars. approved mandates.
3 Strategic financial transactions
Execution of transactions within
Opportunistic transactions may be executed with financial instruments to capture value from perceived approved mandates. market over/under valuations.
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.
152 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
23 Financial risk management continued
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 2022, 80 per cent of the Group's borrowings were exposed to floating interest rates inclusive of the effect of swaps (2021: 82 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 in section 23.4 'Derivatives and hedge accounting'.
Based on the net debt position as at 30 June 2022, 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$29 million (2021: increase of US$7 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 being replaced by alternative risk-free rates (ARR) as part of inter-bank offer rate (IBOR) reform. Sterling LIBOR ceased to be published on 1 January 2022 and USD LIBOR will no longer be published after 30 June 2023. The Group has assessed the implication of IBOR reform and has updated various policies, systems and processes including the adoption of the International Swaps and Derivatives Association (ISDA) IBOR Fallbacks Protocol. In November 2021, the Group amended its US$5.5 billion revolving credit facility to reference ARRs. Furthermore, in March 2022 Escondida executed the Group's first Secured Overnight Financing Rate (SOFR) linked loans.
The amendments to IFRS 9/AASB 9 'Financial Instruments', IFRS 7/AASB 7 'Financial Instruments (IFRS 7): Disclosures' and IFRS 16/AASB 16 'Leases' in relation to IBOR reform early adopted by the Group in previous periods impact the Group's cross currency and interest rate swaps, which reference US LIBOR, and the associated hedge accounting. Refer to section 23.4 'Derivatives and hedge accounting' for further information.
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 restated at the end of each reporting period 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 carrying values of financial assets and liabilities at the end of the reporting period denominated in currencies other than the
US dollar that are exposed to foreign currency risk:
2022 2021
Net financial (liabilities)/assets - by currency of denomination US$M US$M
AUD (3,649) (4,421) CLP (602) (649) GBP 388 535 EUR 280 366 Other 187 128
Total (3,396) (4,041)
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 2022, 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$16 million (2021: decrease of US$21 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 net liabilities at fair value of US$56 million (2021: net assets of US$138 million).
BHP Appendix 4E 2022 153

23 Financial risk management continued
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 or loss using Level 2 valuation inputs based on forecast selling prices in the quotation period. The Group's exposure at 30 June 2022 to the impact of movements in commodity prices upon provisionally invoiced sales and purchases volumes was predominately around copper.
The Group had 289 thousand tonnes of copper exposure as at 30 June 2022 (2021: 254 thousand tonnes) that was provisionally priced. The final price of these sales and purchases volumes will be determined during the first half of FY2023. 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$162 million (2021: US$166 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.
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 profit or loss 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 which are carried at fair value through profit or loss, 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.
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 according to the designation of the underlying instrument.
For financial assets and liabilities carried at fair value, the Group uses the following to categorise the inputs to the valuation 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 inputs Based on quoted prices (unadjusted) Based on inputs other than quoted prices Based on inputs not observable in the market in active markets for identical included within Level 1 that are observable using appropriate valuation models, including financial assets and liabilities. for the financial asset or liability, either discounted cash flow modelling. directly (i.e. as unquoted prices) or indirectly (i.e. derived from prices).
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Review Governance Statements Glossary
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.
IFRS 13
Fair value hierarchy 2022 2021
Level1 IFRS 9 Classification US$M US$M
Current cross currency and interest rate swaps2 2 Fair value through profit or loss-20 Current other derivative contracts3 2,3 Fair value through profit or loss 326 207
Current other financial assets Amortised cost 100 -Current other investments5 1,2 Fair value through profit or loss 203 3 Non-current cross currency and interest rate swaps2 2 Fair value through profit or loss 136 1,123 Non-current other derivative contracts3 2,3 Fair value through profit or loss 16 152
Non-current other financial assets4 3 Fair value through profit or loss 273 -
Non-current investment in shares 1,3 Fair value through other 138 31 comprehensive income Non-current other investments5 1,2 Fair value through profit or loss 239 304
Total other financial assets 1,431 1,840 Cash and cash equivalents Amortised cost 17,236 15,246 Trade and other receivables6 Amortised cost 1,674 2,363 Provisionally priced trade receivables 2 Fair value through profit or loss 3,478 3,547
Total financial assets 23,819 22,996
Non-financial assets 71,347 85,931 Total assets 95,166 108,927
Current cross currency and interest rate swaps2 2 Fair value through profit or loss 358 -Current other derivative contracts3 2,3 Fair value through profit or loss 118 52
Current other financial liabilities7 Amortised cost 103 78 Non-current cross currency and interest rate swaps2 2 Fair value through profit or loss 1,466 586 Non-current other derivative contracts3 2,3 Fair value through profit or loss 31 -Non-current other financial liabilities7 Amortised cost 500 560 Total other financial liabilities 2,576 1,276 Trade and other payables8 Amortised cost 5,223 6,277 Provisionally priced trade payables 2 Fair value through profit or loss 1,385 574 Bank loans9 Amortised cost 2,472 2,260 Notes and debentures9 Amortised cost 11,363 14,769 Lease liabilities 2,576 3,896 Other9 Amortised cost 17 58
Total financial liabilities 25,612 29,110
Non-financial liabilities 20,788 24,212 Total liabilities 46,400 53,322
1 All of the Group's financial assets and financial liabilities recognised at fair value were valued using market observable inputs categorised as Level 2 unless specified otherwise in the following footnotes.
2 Cross currency and interest rate swaps are valued using market data including interest rate curves (which include the base LIBOR rate and swap rates) and foreign exchange rates. A discounted cash flow approach is used to derive the fair value of cross currency and interest rate swaps at the reporting date.
3 Includes other derivative contracts of US$ nil (2021: US$121 million) categorised as Level 3. Significant items in FY2021 were derivatives embedded in physical commodity purchase and sales contracts of gas in Trinidad and Tobago which were disposed as part of the merger of the Petroleum business during the period.
4 Includes receivables contingent on outcome of future events relating to mining, and regulatory approvals of US$233 million (2021: US$ nil).
5 Includes investments held by BHP Billiton Foundation which are restricted and not available for general use by the Group of US$252 million (2021: US$260 million) of which other investment (mainly US Treasury Notes) of US$119 million categorised as Level 1 (2021: US$72 million).
6 Excludes input taxes of US$427 million (2021: US$486 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$79 million (2021: US$176 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 (2021: US$3,018 million) of fixed rate debt not swapped to floating rate, the fair value at 30 June 2022 was US$3,126 million (2021: US$4,052 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 in IAS 32 'Financial Instruments: Presentation' 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 due or expected to be settled within 12 months otherwise they are classified as non-current.
BHP Appendix 4E 2022 155

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 of 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 Carrying Foreign Recognised Recognised amount of exchange in cash flow in cost of Recognised in Hedged value 2022 notes and notional at Interest hedging hedging the income Accrued of notes and US$M debentures spot rates rate risk reserve reserve statement1 cash flows Total debentures2
A B C D E F G B to G A + B + C USD 4,740-(16) - (7) 86 63 4,724 GBP 2,599 796 (115) (35) 13 26 42 727 3,280 EUR 3,449 585 112 (16) 8 (4) 45 730 4,146 CAD 575 167 5 (8) 6 (3) 1 168 747 Total 11,363 1,548 (14) (59) 27 12 174 1,688 12,897
Fair value of derivatives Carrying Foreign Recognised Recognised amount of exchange in cash flow in cost of Recognised in Hedged value 2021 notes and notional at Interest hedging hedging the income Accrued of notes and US$M debentures spot rates rate risk reserve reserve statement1 cash flows Total debentures2
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
1 Predominantly related to ineffectiveness.
2 Includes US$3,018 million (2021: US$3,018 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship.
The weighted average interest rate payable is USD LIBOR + 1.74 per cent (2021: USD LIBOR + 2.18 per cent). Refer to note 22 'Net finance costs' for details of net finance costs for the year.
Interest Rate Benchmark Reform
IBOR reform impacts the Group's cross currency and interest rate swaps, which reference 3-month US LIBOR, and the associated hedge accounting. At 30 June 2022, the notional value of hedging instruments that reference 3-month US LIBOR is US$ 15.6 billion (2021: US$16.8 billion). The SOFR benchmark rate is being widely adopted by market participants as the replacement for US LIBOR in new contracts. 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 cross currency and interest rate swaps with maturity dates beyond 30 June 2023 will only transition to ARR once US LIBOR publication ceases. As at 30 June 2022, the Group has not transitioned any of its existing cross currency and interest rate swaps to alternative risk-free rates, however it is expecting to commence active transition of the existing cross currency and interest rate swaps portfolio to alternative benchmark rates during FY2023.
156 BHP Appendix 4E 2022

Operating and Financial Financial
Review Governance Statements Glossary
23 Financial risk management continued
The following table shows the notional value of the Group's hedging instruments that are expected to expire before 30 June 2023.
Notional value to mature before Notional LIBOR expires
Notional value FY2023 Hedging instrument currency US$M US$M
Interest rate swaps USD 10,719 748 Cross-currency interest rate swaps EUR 3,187 404
GBP 1,673 923 Total 15,579 2,075
In addition, the Group has other arrangements which reference 3-month US LIBOR benchmarks and extend beyond 2022. These include USD bank loans of US$1.6 billion (2021: US$2.3 billion). Refer to note 20 'Net debt'.
The Group has previously adopted amendments to IFRS 9 and IFRS 7 in relation to IBOR Reform. These amendments provide reliefs from applying specific hedge accounting requirements to hedging arrangements directly impacted by these reforms. In particular, where changes to the Group's instruments arise solely as a result of IBOR reform and do not change the economic substance of the Group's arrangements, the Group is able to maintain its existing hedge relationships and accounting. The Group has continued to apply these reliefs, resulting in no impact on the Group's hedge accounting. Upon transition to alternative risk-free rates, the Group will seek to apply further reliefs in IFRS 9 and continue to apply hedge accounting to its hedging arrangements.
Movements in reserves relating to hedge accounting
The following table shows a reconciliation of the components of equity and an analysis of the movements in reserves for all hedges. For a description of these reserves, refer to note 17 'Other equity'.
Cash flow hedging reserve Cost of hedging reserve 2022
US$M Gross Tax Net Gross Tax Net Total
At the beginning of the financial year 142 (42) 100 (77) 23 (54) 46
Add: Change in fair value of hedging instrument recognised in OCI (914) 274 (640) --(640)
Less: Reclassified from reserves to interest expense - recognised through OCI 831 (250) 581 50 (15) 35 616
At the end of the financial year 59 (18) 41 (27) 8 (19) 22
Cash flow hedging reserve Cost of hedging reserve 2021
US$M Gross Tax Net Gross Tax Net Total
At the beginning of the financial year 71 (21) 50 (32) 9 (23) 27 Add: Change in fair value of hedging instrument recognised in OCI 863 (259) 604 --604
Less: Reclassified from reserves to interest expense - recognised through OCI (792) 238 (554) (45) 14 (31) (585) At the end of the financial year 142 (42) 100 (77) 23 (54) 46
Changes in interest bearing liabilities and related derivatives resulting from financing activities
The movement in the year in the Group's interest bearing liabilities and related derivatives are as follows:
Derivatives (assets)/ Interest bearing liabilities liabilities Bank Cross overdraft and currency and 2022 Bank Notes and Lease short-term interest rate
US$M loans debentures liabilities borrowings Other swaps Total
At the beginning of the financial year 2,260 14,769 3,896-58 (557)
Proceeds from interest bearing liabilities 1,150 --14-1,164 Settlements of debt related instruments - - - -Repayment of interest bearing liabilities1 (941) (1,232) (1,163)-(55)-(3,391)
Change from Net financing cash flows 209 (1,232) (1,163)-(41)-(2,227)
Other movements:
Divestment and demerger of subsidiaries and operations - (492) - -Interest rate impacts-(1,286) --1,277 Foreign exchange impacts 3 (894) (126)-(2) 898 Lease additions - 866 - -Remeasurement of index-linked freight contracts - (369) - -Other interest bearing liabilities/derivative related changes-6 (36)-2 70
At the end of the financial year 2,472 11,363 2,576-17 1,688
BHP Appendix 4E 2022 157

23 Financial risk management continued Derivatives (assets)/ Interest bearing liabilities liabilities Cross Bank overdraft currency and 2021 Notes and Lease and short-term interest rate US$M Bank loans debentures liabilities borrowings Other 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 liabilities1 (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) 1 Includes US$33 million (2021: US$38 million) of Discontinued operations cash flows. 24 Key management personnel Key management personnel compensation comprises: 2022 2021 2020 US$ US$ US$ Short-term employee benefits 13,979,139 14,081,625 12,564,637 Post-employment benefits 634,363 744,951 1,172,727 Share-based payments 11,165,439 11,601,866 13,514,588 Total 25,778,941 26,428,442 27,251,952 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 Senior Executive Officer (i.e. President Petroleum until 31 May 2022). Transactions and outstanding loans/amounts with key management personnel There were no purchases by key management personnel from the Group during FY2022 (2021: US$ nil; 2020: US$ nil). There were no amounts payable by key management personnel at 30 June 2022 (2021: US$ nil; 2020: US$ nil). There were no loans receivable from or payable to key management personnel at 30 June 2022 (2021: US$ nil; 2020: 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 2022 (2021: US$ nil; 2020: US$ nil). For more information on remuneration and transactions with key management personnel, refer to the Remuneration Report under Governance. 25 Employee share ownership plans Awards, in the form of the right to receive ordinary shares in BHP Group Limited 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. Following unification of our dual listed company structure in January 2022, employees holding unvested BHP Group Plc awards received one BHP Group Limited award per BHP Group Plc award held at the time of unification. Vesting of awards will stay on the original timeframes. Employees holding BHP Group Plc acquired shares under Shareplus received one BHP Group Limited share for each BHP Group Plc share owned. 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. On completion of the merger between BHP Petroleum and Woodside on 1 June 2022, adjustments were made to unvested awards held under the above mentioned employee share ownership plans to ensure participants continue to be appropriately treated. The number of 'Uplift' awards granted of 1,574,034 shares was calculated based on the number of unvested awards held prior to the merger multiplied by 1.1205 being the USD value of the in specie dividend divided by the closing BHP Group Limited share price on 31 May 2022 (converted into USD on the same date) plus one. 158 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary 25 Employee share ownership plans continued The table below provides a description of each of the plans. Transitional and Commencement Plan CDP and STIP LTIP and MAP KMP awards Shareplus Type Short-term incentive Long-term incentive Long-term incentive All-employee share purchase plan Overview The CDP was implemented The LTIP is a plan for Executive KMP and Awards may be granted Employees may in FY2020 as a replacement members of the Executive Leadership Team to new Executive KMP contribute up to for the STIP, both of which are who are not Executive KMP, and awards are recruited into or within US$5,000 to acquire generally plans for Executive KMP granted annually. the Group to bridge shares in any plan and members of the Executive the time-based gap year. On the third The MAP is a plan for BHP senior Leadership Team who are not between the vesting of anniversary of management who are not KMP. The number Executive KMP. awards either granted the start of a plan of share rights awarded is determined by a in their non-KMP roles year, the Group will Under the CDP, two thirds of the participant's role and grade. or to replace awards match the number of value of a participant's short-term foregone from a acquired shares. incentive amount is awarded previous company. as rights to receive BHP Group Limited shares 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 shares at the end of the two-year vesting period. Vesting CDP: Service conditions only for LTIP: Service and performance conditions. Service and Service conditions only. conditions the two-year award. Vesting of performance conditions. BHP's Total Shareholder Returną (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 at determines the vesting of 67 per cent of the discretion to determine the end of the five-year vesting awards, while performance relative to the if the performance period, including a five-year view 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. will vest (or otherwise governance and conduct. lapse), having regard to For awards granted from December 2017 STIP: Service conditions only. personal performance onwards, 25 per cent of the award will vest and the underlying where BHP's TSR is equal to the median financial performance TSR of the relevant comparator group(s), of the Group during the as measured over the performance period. performance period. Where TSR is below the median, awards will not vest. Vesting occurs on a sliding To the extent the scale when BHP's TSR measured over the performance condition performance period is between the median is not achieved, TSR of the relevant comparator group(s) up awards will lapse. to a nominated level of TSR outperformance There is no retesting over the relevant comparator group(s), as of the performance determined by the Committee, above which condition. 100 per cent of the award will vest. Vested awards may be subject to a holding lock. MAP: Service conditions only. Vesting CDP - 2 and 5 years LTIP - 5 years 2 years 3 years period STIP - 2 years MAP - 1 to 5 years Dividend CDP - Yes LTIP - Yes Yes No Equivalent STIP - Yes MAP - Varies Payment Exercise None None None None period 1 For LTIP awards granted prior to unification and where the five-year performance period ends after unification, the TSR at the start of the performance period is based on the weighted average of the TSRs of BHP Group Limited and BHP Group Plc and the TSR at the end of the performance period is based on the TSR of BHP Group Limited. BHP Appendix 4E 2022 159

25 Employee share ownership plans continued Employee share awards Number of BHP Group Number of Plc awards Weighted awards at the Number of Number of transferred to Number of average Weighted beginning awards issued awards Number of BHP Group awards at the remaining average of the during the vested and awards Limited on end of the contractual life share price at 2022 financial year year exercised lapsed unification1 financial year (years) exercise date BHP Group Limited CDP awards 216,340 491,654 --707,994 2.2 n/a STIP awards 200,785 9,014 125,989 - 83,810 0.2 A$47.70 LTIP awards 3,543,220 714,781 1,114,524 - 3,143,477 1.8 A$47.70 MAP awards2 9,953,517 3,915,785 4,615,318 2,321,453 161,642 7,094,173 1.2 A$46.62 Transitional and Commencement KMP awards 77,000 9,279 --86,279 0.2 n/a Shareplus 4,539,194 3,091,639 2,465,378 531,479 280,494 4,914,470 1.3 A$50.54 BHP Group Plc MAP awards 176,049 72,412 70,657 16,162 161,642-n/a Ł22.18 Shareplus 232,767 63,209 2,174 13,308 280,494-n/a Ł22.11 1 On unification of the Group's corporate structure on 31 January 2022 (refer note 16 'Share capital' for details) 161,642 of unvested awards over BHP Group Plc shares lapsed and were replaced by equivalent awards over BHP Group Limited on the terms of the MAP awards. Under the rules of the Shareplus, on unification, holders of acquired BHP Group Plc shares, exchanged them for BHP Group Limited shares on the same terms of other BHP Group Plc shareholders. As participants were not eligible for matching shares in BHP Group Plc, BHP Group Limited made an equivalent offer of rights to match 280,494 unvested awards, which will vest based on their original timeline and will be satisfied with the delivery of BHP Group Limited shares. Given the unification had no impact on the vesting timelines or the terms and conditions of the MAP awards and Shareplus, the changes did not represent a modification that changed the fair value of the awards. 2 There were 2,761 number of awards vested and exercisable at the end of the financial year. Fair value and assumptions in the calculation of fair value for awards issued Weighted average fair value of awards Estimated granted during Risk-free Estimated life Share price at volatility of 2022 the year US$ interest rate of awards grant date share price Dividend yield BHP Group Limited CDP awards 27.46 n/a 2 and 5 years A$38.05 n/a n/a LTIP awards 13.66 1.36% 5 years A$38.05 30.0% n/a MAP awards1 A$51.33/A$36.39/A$46.55/ 5.0% up to 30 June 2022 and 22.10 n/a 1-5 years A$50.58/A$42.52 n/a 7.5% per annum thereafter Shareplus 22.80 0.12% 3 years A$45.66 n/a 5.51% BHP Group Plc MAP awards 20.85 n/a 3 years Ł18.62 n/a 5.0% up to 30 June 2022 and 7.5% per annum thereafter Shareplus 14.53 0.15% 3 years Ł20.68 n/a 6.60% 1 Includes MAP awards granted on 17 August 2021, 29 September 2021, 1 March 2022, 30 March 2022 and 17 June 2022. 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 BHP Billiton Limited Employee Equity Trust. The trustee of this trust is an independent company, resident in Jersey. The trust uses 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. 160 BHP Appendix 4E 2022

and Operating Financial Review Governance Financial Statements Glossary 26 Employee benefits, restructuring and post-retirement employee benefits provisions 2022 2021 US$M US$M Employee benefits1 1,351 1,624 Restructuring2 27 54 Post-retirement employee benefits3 281 534 Total provisions 1,659 2,212 Comprising: Current 1,319 1,606 Non-current 340 606 Post-retirement Employee employee benefits Restructuring benefits3 Total 2022 US$M US$M US$M US$M At the beginning of the financial year 1,624 54 534 2,212 Charge/(credit) for the year: Underlying 1,424 24 78 1,526 Discounting - 30 30 Net interest expense - (9) (9) Exchange variations (131) (1) (51) (183) Released during the year (58) (2) (2) (62) Remeasurement gains taken to retained earnings - (24) (24) Utilisation (1,381) (43) (58) (1,482) Divestment and demerger of subsidiaries and operations (128) (6) (217) (351) Transfers and other movements 1 1-2 At the end of the financial year 1,351 27 281 1,659 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 The net liability recognised in the Consolidated Balance Sheet includes US$165 million present value of funded defined benefits pension obligation (2021: US$377 million) offset by fair value of defined benefit scheme assets US$(169) million (2021: US$(398) million), US$85 million present value of unfunded defined pension and post-retirement medical benefits obligation (2021: US$321 million) and US$200 million unfunded post-employment benefits obligation in Chile (2021: US$234 million). 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 the reporting date Provision Description Employee Liabilities for benefits accruing to employees up until the reporting date in respect of wages and salaries, annual leave and any benefits accumulating sick leave are recognised in the period the related service is rendered. Liabilities recognised in respect of short-term employee benefits expected to be settled within 12 months are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for other long-term employee benefits, including long service leave are measured as the present value of estimated future payments for the services provided by employees up to the reporting date. 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 short and long-term employee benefits (other than unpaid wages and salaries) are disclosed within employee benefits. Liabilities for unpaid wages and salaries are recognised in other creditors. Restructuring Restructuring provisions are recognised when: - the Group has developed 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 that are not expected to be settled within 12 months of the reporting date are measured at the present value of the estimated future cash payments expected to be made by the Group. BHP Appendix 4E 2022 161

26 Employee benefits, restructuring and post-retirement employee benefits provisions continued Post-retirement Defined contribution pension schemes and multi-employer pension schemes employee For defined contribution schemes or schemes operated on an industry-wide basis where it is not possible to identify assets benefits attributable to the participation by the Group's employees, the pension charge is calculated on the basis of contributions payable. The Group contributed US$324 million during the financial year (2021: US$301 million; 2020: US$243 million) to defined contribution plans and multi-employer defined contribution plans. These contributions are expensed as incurred. Defined benefit pension and post-retirement medical schemes The Group operates or participates in a number of defined benefit pension schemes throughout the world, all of which are closed to new entrants. 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. The Group also operates a number of unfunded post-retirement medical schemes in the United States, Canada and Europe. For defined benefit schemes, an asset or liability is recognised in the balance sheet based at the present value of defined benefit obligations less, where funded, 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. Full actuarial valuations are prepared by local actuaries for all schemes, using discount rates based on market yields at the reporting date on high-quality corporate bonds or by reference to national government bonds if high-quality corporate bonds are not available. Where funded, scheme assets are invested in a diversified range of asset classes, predominantly comprising bonds and equities. 27 Discontinued operations On 22 November 2021, the Group and Woodside signed a binding SSA for the merger of the Group's oil and gas portfolio with Woodside. Woodside has subsequently acquired the entire share capital of BHP Petroleum International Pty Ltd ('BHP Petroleum') in exchange for new Woodside ordinary shares. While the merger had an economic effective date of 1 July 2021, the Group continued to control the Petroleum assets and carry on business in the normal course for 11 months until 1 June 2022 (Completion Date). As such, the Group recognises its share of revenue, expenses, net finance costs and associated income tax expense related to the Discontinued operation until the Completion Date. As consideration for the sale of BHP Petroleum, the Group received 914,768,948 newly issued Woodside ordinary shares at Completion Date. On the Completion Date, the Group paid a fully franked in specie dividend in the form of Woodside shares to eligible BHP shareholders. Eligible BHP shareholders received one Woodside share for every 5.5340 BHP shares they held on the Group's register at the record date of 26 May 2022. As part of completion and in order to reflect the economic effective date, the Group made a net cash payment of US$0.7 billion to Woodside in addition to US$0.4 billion in cash that was left in the BHP Petroleum bank accounts to fund ongoing operations. The total cash transfer of US$1.1 billion reflects the net cash flows generated by BHP Petroleum between 1 July 2021 and Completion Date adjusted for dividends Woodside would have paid on the newly issued Woodside ordinary shares, had the Merger completed on 1 July 2021. The net cash completion payment to Woodside is subject to a customary post-completion review, which may result in an adjustment to the amount paid. BHP Mitsui Coal Pty Ltd (BMC), while being divested on 3 May 2022, is not considered to meet the criteria for classification as a Discontinued operation given its relative size to the Group and the Coal segment. For further information, refer to note 3 'Exceptional items'. The contribution of Discontinued operations to the Group's profit and cash flows is detailed below: Income statement - Discontinued operations 2022 2021 2020 US$M US$M US$M Revenue 6,404 3,896 4,007 Other income 170 130 57 Expenses excluding net finance costs (2,207) (3,629) (3,322) Loss from equity accounted investments, related impairments and expenses (4) (6) (4) Profit from operations 4,363 391 738 Financial expenses (165) (88) (70) Financial income 6 6 17 Net finance costs (159) (82) (53) Profit before taxation 4,204 309 685 Income tax expense (1,471) (545) (492) Royalty-related taxation (net of income tax benefit) (237) 11 (85) Total taxation expense (1,708) (534) (577) Profit/(loss) after taxation from operating activities 2,496 (225) 108 Net gain on Petroleum merger with Woodside (after tax) 8,159 - Profit/(loss) after taxation 10,655 (225) 108 Attributable to non-controlling interests - -Attributable to BHP shareholders 10,655 (225) 108 Basic earnings/(loss) per ordinary share (cents) 210.5 (4.5) 2.1 Diluted earnings/(loss) per ordinary share (cents) 210.1 (4.5) 2.1 The total comprehensive income attributable to BHP shareholders from Discontinued operations was a gain of US$10,596 million (30 June 2021: loss of US$231 million; 30 June 2020: gain of US$118 million). The conversion of options and share rights would decrease the loss per share for the year ended 30 June 2021, therefore its impact has been excluded from the diluted earnings per share calculation.
162 BHP Appendix 4E 2022

Review and Financial Governance Financial Statements Glossary 27 Discontinued operations continued Cash flows from Discontinued operations 2022 2021 2020 US$M US$M US$M Net operating cash flows 2,889 1,351 1,021 Net investing cash flows1 (904) (1,520) (1,033) Net financing cash flows2 (33) (38) (39) Net increase/(decrease) in cash and cash equivalents from Discontinued operations 1,952 (207) (51) Net cash completion payment on merger of Petroleum with Woodside (683) -Cash and cash equivalents disposed (399) - Total cash impact 870 (207) (51) 1 Includes purchases of property, plant and equipment and capitalised exploration of US$1,144 million related to drilling and development expenditure (30 June 2021: US$1,020 million; 30 June 2020: US$1,079 million), proceeds from sale of subsidiaries, operations and joint operations, net of cash of US$91 million (30 June 2021: investment of US$480 million; 30 June 2020: US$ nil), proceeds from sale of assets of US$151 million (30 June 2021: US$39 million; 30 June 2020: US$78 million) and other investing outflows of US$2 million (30 June 2021: outflow of US$59 million; 30 June 2020: outflow of US$32 million). 2 Represents net repayment of interest bearing liabilities of US$33 million (30 June 2021: US$38 million; 30 June 2020: US$39 million). Exceptional items - Discontinued operations Exceptional items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and impact is considered material to the Financial Statements. Items related to Discontinued operations included within the Group's profits for the year ended 30 June 2022 are detailed below. Gross Tax Net Year ended 30 June 2022 US$M US$M US$M Exceptional items by category Net gain on Petroleum merger with Woodside1 8,167 (8) 8,159 Total 8,167 (8) 8,159 Attributable to non-controlling interests - -Attributable to BHP shareholders 8,167 (8) 8,159 1 The tax expense associated with the exceptional item reflects the tax impact of transaction costs and other restructuring related activities undertaken pre-merger. There are no further tax impacts arising on the net gain on merger of our Petroleum business with Woodside as generated tax losses were either offset with capital gains in other entities in the Group, or not recognised on the basis that it is not probable that future capital gains will be available against which the Group can utilise the tax losses. Net gain on disposal of Discontinued operations Details of the net gain on Petroleum merger with Woodside is presented below: 2022 US$M Assets Cash and cash equivalents 399 Trade and other receivables 1,560 Other financial assets 91 Inventories 295 Property, plant and equipment 12,055 Intangible assets 66 Investments accounted for using the equity method 240 Deferred tax assets 1,470 Other 18 Total assets 16,194 Liabilities Trade and other payables 913 Interest bearing liabilities 243 Tax payables 300 Provisions 4,518 Deferred income 48 Total liabilities 6,022 Net assets 10,172 Fair value of Woodside shares1 19,566 Net cash completion payment on merger of Petroleum with Woodside2 (683) Foreign currency translation reserve transferred to the income statement 54 Other provisions and related indemnities recognised at completion (353) Transaction and other directly attributable costs (245) Income tax expense (8) Net gain on Petroleum merger with Woodside 8,159 1 Represents the consideration received being the fair value of 914,768,948 Woodside ordinary shares received using the closing ASX share price of A$29.76 on 31 May 2022 (US$21.39 equivalent based on an exchange rate of AUD/USD 0.7187). 2 Reflects the net cash flows generated by BHP Petroleum between 1 July 2021 and Completion Date adjusted for dividends Woodside would have paid on the newly issued Woodside ordinary shares, had the Merger completed on 1 July 2021. BHP Appendix 4E 2022 163

27 Discontinued operations continued The Exceptional items related to Discontinued operations included within the Group's profit for the years ended 30 June 2021 and 30 June 2020 are outlined below: Gross Tax Net Year ended 30 June 2021 US$M US$M US$M Exceptional items by category Impairment of Potash assets1-(278) (278) COVID-19 related costs (47) 8 (39) Total (47) (270) (317) Attributable to non-controlling interests - -Attributable to BHP shareholders (47) (270) (317) 1 The exceptional item reflects the impairment of tax losses originally expected to be recoverable against taxable profits from the Group's Potash assets. The impairment is included in Discontinued operations as the entity with the losses transferred to Woodside and therefore the losses are no longer available to the Group. Gross Tax Net Year ended 30 June 2020 US$M US$M US$M Exceptional items by category COVID-19 related costs (6) 2 (4) Total (6) 2 (4) Attributable to non-controlling interests - -Attributable to BHP shareholders (6) 2 (4) 28 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. Group's interest Country of 2022 2021 Significant subsidiaries incorporation Principal activity % % Coal BHP Mitsui Coal Pty Ltd1 Australia Coal mining - 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 Ltda2 Chile Copper mining 57.5 57.5 Minera Spence SA Chile Copper mining 100 100 Iron Ore BHP Iron Ore (Jimblebar) Pty Ltd3 Australia Iron ore mining 85 85 BHP Iron Ore Pty Ltd Australia Service company 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 The divestment of BHP's 80 per cent interest in BHP Mitsui Coal Pty Ltd (BMC) to Stanmore Resources Limited was completed on 3 May 2022. Refer to note 3 'Exceptional items' for further information. 2 As the Group has the ability to direct the relevant activities at Minera Escondida Ltda, it has control over the entity. The assessment of the most relevant activity in this contractual arrangement is subject to judgement. The Group establishes the mine plan and the operating budget and has the ability to appoint the key management personnel, demonstrating that the Group has the existing rights to direct the relevant activities of Minera Escondida Ltda. 3 The Group has an effective interest of 92.5 per cent in BHP Iron Ore (Jimblebar) Pty Ltd; however, by virtue of the shareholder agreement with ITOCHU Iron Ore Australia Pty Ltd and Mitsui & Co. Iron Ore Exploration & Mining Pty Ltd, the Group's interest in the Jimblebar mining operation is 85 per cent, which is consistent with the other respective contractual arrangements at Western Australia Iron Ore. 164 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary 29 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. Ownership interest Significant associates Country of incorporation/ Associate or 2022 2021 and joint ventures principal place of business joint venture Principal activity Reporting date % % Cerrejón1 Anguilla/Colombia/Ireland Associate Coal mining in Colombia 31 December - 33.33 Compañía Minera Antamina S.A. Peru Associate Copper and zinc mining 31 December 33.75 33.75 (Antamina) Samarco Mineração S.A. Brazil Joint venture Iron ore mining 31 December 50.00 50.00 (Samarco) 1 At 30 June 2021, the Group's investment in Cerrejón was classified as 'Assets held for sale' and payables owed to Cerrejón was classified as 'Liabilities directly associated with the assets held for sale'. During FY2022 the Group received dividends of US$238 million from Cerrejón and on 11 January 2022, BHP completed the sale of its 33.33 per cent interest in Cerrejón to Glencore. In accordance with the sale agreement, the final sale proceeds was adjusted for the dividends received to a final number of US$50 million. Voting in relation to relevant activities in Antamina, determined to be the approval of the operating and capital budgets, does not require unanimous consent of all participants to the arrangement, therefore joint control does not exist. Instead, because the Group has the power to participate in the financial and operating policies of the investee, this investment is accounted for as an associate. Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). As the Samarco entity has the rights to the assets and obligations to the liabilities relating to the joint arrangement and not its owners, this investment is accounted for as a joint venture. The Group is restricted in its ability to make dividend payments from its investments in associates and joint ventures as any such payments require the approval of all investors in the associates and joint ventures. The ownership interest at the Group's and the associates' or joint ventures' reporting dates are the same. When the annual financial reporting date is different to the Group's, financial information is obtained as at 30 June in order to report on an annual basis consistent with the Group's reporting date. The movement for the year in the Group's investments accounted for using the equity method is as follows: Total equity Year ended 30 June 2022 Investment in Investment in accounted US$M associates joint ventures investments At the beginning of the financial year 1,742-1,742 Loss from equity accounted investments, related impairments and expenses1,2 653 (676) (23) Investment in equity accounted investments 52-52 Dividends received from equity accounted investments3 (787)-(787) Divestment and demerger of equity accounted investments (240)-(240) Other-676 676 At the end of the financial year 1,420-1,420 1 US$(676) million represents US$(663) million movement in the Samarco dam failure provision including US$(747) million change in estimate and US$84 million exchange translation, US$68 million movement in provisions related to the Samarco Germano dam decommissioning provision including US$56 million change in estimate and US$12 million exchange translation and US$(81) million fair value change on forward exchange derivatives. Refer to note 4 'Significant events - Samarco dam failure' for further information. 2 Includes share of operating losses of equity accounted investments from Discontinued operations of US$4 million (2021: US$6 million; 2020: US$4 million). Refer to note 27 'Discontinued operations'. 3 Includes dividends received from equity accounted investments from Discontinued operations of US$10 million (2021: US$10 million; 2020: US$12 million). The following table summarises the financial information relating to each of the Group's significant equity accounted investments. BHP Brasil's 50 per cent portion of Samarco's commitments, for which BHP Brasil has no funding obligation, is US$350 million (2021: US$350 million). Associates Joint ventures 2022 Individually Individually US$M Antamina immaterial1 Samarco2 immaterial Total Current assets 1,275 4993 Non-current assets 5,293 5,717 Current liabilities (847) (10,830)4 Non-current liabilities (1,851) (7,873) Net assets/(liabilities) - 100% 3,870 (12,487) Net assets/(liabilities) - Group share 1,306 (6,244) Adjustments to net assets related to accounting policy adjustments-2685 Investment in Samarco-5166 Impairment of the carrying value of the investment in Samarco - (1,041)7 Additional share of Samarco losses-5,3268 Unrecognised losses-1,1759 Carrying amount of investments accounted for using the equity method 1,306 114 - 1,420 Revenue - 100% 5,264 1,670 Profit/(loss) from Continuing operations - 100% 2,133 (528)10 Share of profit/(loss) of equity accounted investments 720 (276)11 Impairment of the carrying value of the investment in Samarco - -Additional share of Samarco losses-290 Fair value change on forward exchange derivatives-(81) Unrecognised losses-(609)9 Profit/(loss) from equity accounted investments, related impairments and expenses 720 (63) (676)-(19) Comprehensive income - 100% 2,133 (528) Share of comprehensive income/(loss) - Group share in equity accounted investments 720 (63) (676)-(19) Dividends received from equity accounted investments 776 11 - 787 BHP Appendix 4E 2022 165

29 Investments accounted for using the equity method continued Associates Joint ventures 2021 US$M Individually Individually Restated Antamina Cerrejón immaterial1 Samarco2 immaterial Total Current assets 1,499-5093 Non-current assets 4,885-4,380 Current liabilities (1,285)-(9,222)4 Non-current liabilities (1,062)-(7,627) Net assets/(liabilities) - 100% 4,037-(11,960) Net assets/(liabilities) - Group share 1,362-(5,980) Adjustments to net assets related to accounting policy adjustments - 2805 Investment in Samarco - 5166 Impairment of the carrying value of the investment in Samarco --(1,041)7 Additional share of Samarco losses - 4,4428 Unrecognised losses - 1,7839 Carrying amount of investments accounted for using the equity method 1,362-380 - 1,742 Revenue - 100% 4,822 844 814 Profit/(loss) from Continuing operations - 100% 1,847 (43) (2,202)10 Share of profit/(loss) of equity accounted investments 623 (14) (1,076)11 Impairment of the carrying value of the investment in Cerrejón-(466) -Impairment of the carrying value of the investment in Samarco --(111)7 Additional share of Samarco losses - 85 Fair value change on forward exchange derivatives - 136 Unrecognised losses - (24)9 Profit/(loss) from equity accounted investments, related impairments and expenses 623 (480) (68) (990)-(915) Comprehensive income/(loss) - 100% 1,847 (43) (2,202) Share of comprehensive income/(loss) - Group share in equity accounted investments 623 (480) (68) (990)-(915) Dividends received from equity accounted investments 714 13 10 - 737 Associates Joint ventures 2020 US$M Individually Individually Restated Antamina Cerrejón immaterial Samarco2 immaterial Total 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 - 1,4129 Profit/(loss) from equity accounted investments, related impairments and expenses 212 (68) (144) (508)-(508) Comprehensive income/(loss) - 100% 629 (182) (3,617) Share of comprehensive income/(loss) - Group share in equity accounted investments 212 (68) (144) (508)-(508) Dividends received from equity accounted investments 105 9 12 - 126 1 The unrecognised share of gain for the period was US$16 million (2021: unrecognised share of loss for the period was US$40 million), which decreased the cumulative losses to US$217 million (2021: increase to US$233 million). 2 Refer to note 4 'Significant events - Samarco dam failure' for further information regarding the financial impact of the Samarco dam failure in November 2015 on BHP Brasil's share of Samarco's losses. 3 Includes cash and cash equivalents of US$106 million (2021: US$134 million). 4 Includes current financial liabilities (excluding trade and other payables and provisions) of US$6,837 million (2021: US$6,567 million). 5 Relates mainly to dividends declared by Samarco that remain unpaid at balance date and which, in accordance with the Group's accounting policy, are recognised when received not receivable. 6 Working capital funding provided to Samarco during the period is capitalised as part of the Group's investments in joint ventures and disclosed as an impairment included within the Samarco impairment expense line item. 7 In the year ended 30 June 2016 BHP Brasil adjusted its investment in Samarco to US$ nil (resulting from US$(655) million share of loss from Samarco and US$(525) million impairment). Additional cumulative impairment losses relating to working capital funding of US$(516) million have also been recognised. 8 BHP Brasil has recognised accumulated additional share of Samarco losses of US$(5,326) million resulting from US$(4,539) million provisions relating to the Samarco dam failure, including US$(787) million recognised as net finance costs. 9 Share of Samarco's losses for which BHP Brasil does not have an obligation to fund. 10 Includes depreciation and amortisation of US$205 million (2021: US$154 million; 2020: US$84 million), interest income of US$19 million (2021: US$1 million; 2020: US$16 million), interest expense of US$628 million (2021: US$492 million; 2020: US$588 million) and income tax (expense)/benefit of US$(7) million (2021: US$(303) million; 2020: US$(256) million). 11 Includes accounting policy adjustments mainly related to the removal of foreign exchange gains on excluded dividends payable. 166 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary 30 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. Group's interest 2022 2021 Significant joint operations Country of operation Principal activity % % Mt Goldsworthy1 Australia Iron ore mining 85 85 Mt Newman1 Australia Iron ore mining 85 85 Yandi1 Australia Iron ore mining 85 85 Central Queensland Coal Associates Australia Coal mining 50 50 Atlantis2 US Hydrocarbons production - 44 Bass Strait2 Australia Hydrocarbons production - 50 Macedon2 Australia Hydrocarbons production - 71.43 Mad Dog2 US Hydrocarbons production - 23.9 North West Shelf2 Australia Hydrocarbons production - 12.5-16.67 Pyrenees2 Australia Hydrocarbons production - 40-71.43 ROD Integrated Development2 Algeria Hydrocarbons production - 28.85 Shenzi2 US Hydrocarbons production - 72 Trinidad/Tobago2 Trinidad and Tobago Hydrocarbons production - 45-68.46 1 These contractual arrangements are controlled by the Group and do not meet the definition of joint operations. However, as they are formed by contractual arrangement and are not entities, the Group recognises its share of assets, liabilities, revenue and expenses arising from these arrangements. 2 These joint operations formed part of the Group's oil and gas portfolio that merged with Woodside on 1 June 2022. Refer to note 27 'Discontinued operations' for details. Assets held in joint operations subject to significant restrictions are as follows: Group's share 2022 2021 US$M US$M Current assets 1,928 2,260 Non-current assets 26,256 38,725 Total assets1 28,184 40,985 1 While the Group is unrestricted in its ability to sell a share of its interest in these joint operations, it does not have the right to sell individual assets that are used in these joint operations without the unanimous consent of the other participants. The assets in these joint operations are also restricted to the extent that they are only available to be used by the joint operation itself and not by other operations of the Group. 31 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 2022 (2021: US$ nil), other than those with post-employment benefit plans for the benefit of Group employees. These are shown in note 26 'Employee benefits, restructuring and post-retirement employee benefits provisions'. - Related party transactions with Samarco are described in note 4 'Significant events - Samarco dam failure'. Further disclosures related to related party transactions are as follows: Transactions with related parties Joint ventures Associates 2022 2021 2022 2021 US$M US$M US$M US$M Sales of goods/services - - - -Purchases of goods/services --1,852.132 1,564.073 Interest income --0.398 2.241 Interest expense --0.005 -Dividends received --787.208 737.250 Net loans made to/(repayments from) related parties --(23.554) (12.108) Outstanding balances with related parties Joint ventures Associates 2022 2021 2022 2021 US$M US$M US$M US$M Trade amounts owing to related parties --351.607 316.269 Loan amounts owing to related parties - --17.097 Trade amounts owing from related parties --6.855 0.004 Loan amounts owing from related parties - --40.651 BHP Appendix 4E 2022 167

32 Contingent liabilities 2022 2021 US$M US$M Associates and joint ventures1 1,541 1,532 Subsidiaries and joint operations1 925 1,615 Total 2,466 3,147 1 There are a number of matters, for which it is not possible at this time to provide a range of possible outcomes or a reliable estimate of potential future exposures, and for which no amounts have been included in the table above. 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. Uncertain tax and The Group is subject to a range of taxes and royalties across many jurisdictions, the application of which is uncertain royalty matters 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 The table above includes contingent liabilities related to the Group's equity accounted investment in Samarco to the extent contingent liabilities they are capable of reliable measurement. Details of contingent liabilities related to Samarco are disclosed in note 4 'Significant events - Samarco dam failure'. Divestments Where the Group divests or demerges entities, it is generally agreed to provide certain indemnities to the acquiring or and demergers demerged entity. Such indemnities include those provided as part of the demerger of South 32 Ltd in May 2015, divestment of Group's Onshore US assets in September 2018 and October 2018 divestment of BMC in May 2022 and the merger of the Group's Petroleum business with Woodside in June 2022. No material claims have been made pursuant to these indemnities as at 30 June 2022. 33 Subsequent events 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. 168 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary 34 Auditor's remuneration 2022 2021 2020 US$M US$M US$M Fees payable to the Group's auditors for assurance services Audit of the Group's Annual Report 9.816 10.642 11.196 Audit of the accounts of subsidiaries, joint ventures and associates 0.605 1.234 1.262 Audit-related assurance services required by legislation to be provided by the auditor 1.933 1.770 1.815 Other assurance and agreed-upon procedures under legislation or contractual arrangements 7.938 1.867 2.003 Total assurance services 20.292 15.513 16.276 Fees payable to the Group's auditors for non-assurance services Other services --0.400 Total other services --0.400 Total fees 20.292 15.513 16.676 All amounts were paid to EY or EY affiliated firms with fees determined, and predominantly billed, in US dollars. Fees payable to the Group's auditors for assurance services 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 and economic contribution report, in addition to the audits of the financial reports prepared in connection with the merger of BHP's oil and gas portfolio with Woodside and the unification of BHP's dual listed corporate structure. Fees payable to the Group's auditors for other services No amounts were payable for other services in FY2022 or FY2021. Amounts for other services in FY2020 comprised tax compliance services (US$0.269 million) and tax advisory services (US$0.131 million). 35 BHP Group Limited BHP Group Limited does not present unconsolidated parent company Financial Statements. Selected financial information of the BHP Group Limited parent company is as follows: 2022 2021 US$M US$M Income statement information for the financial year Profit after taxation for the year 22,871 3,106 Total comprehensive income 22,868 3,108 Balance sheet information as at the end of the financial year Current assets 4,778 7,126 Total assets 43,565 49,957 Current liabilities 3,176 2,819 Total liabilities 3,517 3,097 Share capital1 4,350 823 Treasury shares (31) (32) Reserves 168 236 Retained earnings 35,561 45,833 Total equity 40,048 46,860 1 The increase from FY2021 mainly relates to the Group's unification transaction completed during the current period. Refer to note 16 'Share capital'. Parent company guarantees BHP Group Limited has guaranteed certain financing arrangements available to subsidiaries of US$6,980 million at 30 June 2022 (2021: US$7,879 million). The Deed Poll Guarantee where BHP Group Limited had guaranteed certain current and future liabilities of BHP Group (UK) Ltd (formerly BHP Group Plc) was terminated during the year (guaranteed liabilities at 30 June 2021: US$10 million). BHP Group Limited and its wholly owned subsidiary BHP Group (UK) Ltd have severally, fully and unconditionally guaranteed the payment of the principal and premium, if any, and interest, including certain additional amounts that may be payable in respect of the notes issued by 100 per cent owned finance subsidiary, BHP Billiton Finance (USA) Ltd. BHP Group Limited and BHP Group (UK) Ltd have guaranteed the payment of such amounts when they become due and payable, whether on an interest payment date, at the stated maturity of the notes, by declaration or acceleration, call for redemption or otherwise. The guaranteed liabilities at 30 June 2022 amounted to US$4,234 million (2021: US$5,466 million). In addition, BHP Group Limited and BHP Group (UK) Ltd have severally guaranteed a Group Revolving Credit Facility of US$5,500 million (2021: US$5,500 million), which remains undrawn. BHP Appendix 4E 2022 169

36 Deed of Cross Guarantee BHP Group Limited together with certain wholly owned subsidiaries set out below have entered into a Deed of Cross Guarantee (Deed) dated 6 June 2016 or have subsequently joined the deed by way of an Assumption Deed. The effect of the Deed is that BHP Group Limited has guaranteed to pay any outstanding liabilities upon the winding up of any wholly owned subsidiary that is party to the Deed. Wholly owned subsidiaries that are party to the Deed have also given a similar guarantee in the event that BHP Group Limited or another party to the Deed is wound up. The wholly owned subsidiaries that are identified below are relieved from the requirements to prepare and lodge audited financial statements. The following companies are parties to the Deed and members of the Closed Group as at 30 June 2022: BHP (Towage Services) Pty Ltd1 OS ACPM Pty Ltd1 BHP Direct Reduced Iron Pty Limited OS MCAP Pty Ltd BHP Iron Ore Pty Ltd1 UMAL Consolidated Pty Ltd1 BHP Minerals Pty Ltd1 BHP Freight Pty Ltd BHP WAIO Pty Ltd1 BHP Group Operations Pty Ltd1 Pilbara Gas Pty Limited BHP Innovation Pty Ltd BHP Coal Pty Ltd1 BHP Lonsdale Investments Pty Ltd BHP MetCoal Holdings Pty Ltd1 BHP Minerals Holdings Proprietary Limited1 Broadmeadow Mine Services Pty Ltd BHP Nickel West Pty Ltd1 Central Queensland Services Pty Ltd BHP Olympic Dam Corporation Pty Ltd1 Hay Point Services Pty Limited The Broken Hill Proprietary Company Pty Ltd1 BHP Yakabindie Nickel Pty Ltd1,2 1 These companies are parties to the Deed and are relieved from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports and Directors' reports. 2 The company is eligible for relief from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports and Directors' reports as at 30 June 2022 and was not eligible for relief as at 30 June 2021. 3 Dampier Coal (Queensland) Proprietary Limited was removed from the Deed on 10 May 2022, as it is no longer wholly owned by BHP Group Limited following the completion of the Group's divestment of BMC. A Consolidated Statement of Comprehensive Income and Retained Earnings and Consolidated Balance Sheet, comprising BHP Group Limited and the wholly owned subsidiaries that are party to the Deed for the years ended 30 June 2022 and 30 June 2021 are as follows: 2022 2021 Consolidated Statement of Comprehensive Income and Retained Earnings US$M US$M Revenue 38,159 37,568 Other income 6,077 4,751 Expenses excluding net finance costs (15,293) (26,789) Net finance costs (172) (247) Total taxation expense (5,651) (5,495) Profit after taxation 23,120 9,788 Total other comprehensive income (3) 1 Total comprehensive income 23,117 9,789 Retained earnings at the beginning of the financial year 50,277 48,666 Net effect on retained earnings of entities added to/removed from the Deed (62) -Profit after taxation for the year 23,120 9,788 Transfers to and from reserves (84) (52) Dividends (33,055) (8,125) Retained earnings at the end of the financial year 40,196 50,277 170 BHP Appendix 4E 2022

and Operating Financial Review Governance Financial Statements Glossary 36 Deed of Cross Guarantee continued 2022 2021 Consolidated Balance Sheet US$M US$M ASSETS Current assets Cash and cash equivalents 13 2 Trade and other receivables 1,527 1,906 Loans to related parties 8,697 7,158 Other financial assets 284 - Inventories 2,582 2,101 Other 75 96 Total current assets 13,178 11,263 Non-current assets Trade and other receivables 43 60 Other financial assets 234 - Inventories 456 491 Property, plant and equipment 36,199 35,457 Intangible assets 1,120 1,143 Investments in Group companies 26,800 31,838 Other-20 Total non-current assets 64,852 69,009 Total assets 78,030 80,272 LIABILITIES Current liabilities Trade and other payables 3,919 3,898 Loans from related parties 9,966 4,828 Interest bearing liabilities 213 283 Other financial liabilities 26 - Current tax payable 1,783 1,777 Provisions 1,611 1,459 Deferred income 8 8 Total current liabilities 17,526 12,253 Non-current liabilities Trade and other payables-4 Loans from related parties 10,014 11,472 Interest bearing liabilities 586 690 Deferred tax liabilities 874 998 Provisions 3,896 3,236 Deferred income 5 8 Total non-current liabilities 15,375 16,408 Total liabilities 32,901 28,661 Net assets 45,129 51,611 EQUITY Share capital - BHP Group Limited 4,638 1,111 Treasury shares (31) (32) Reserves 326 255 Retained earnings 40,196 50,277 Total equity 45,129 51,611 37 New and amended accounting standards and interpretations and changes to accounting policies New and amended accounting pronouncements adopted in the current year The adoption of new and amended accounting pronouncements applicable from 1 July 2021 did not result in a significant impact on the Group's Financial Statements. This includes the Interest Rate Benchmark (IBOR) Reform - Phase 2 (Amendments to IFRS 9/AASB 9 'Financial Instruments', IAS 39/ AASB139 'Financial Instruments: Recognition and Measurement'; IFRS 7/AASB 7 'Financial Instruments: Disclosures'; IFRS 4/AASB 4 'Insurance Contracts' and IFRS 16/AASB 16 'Leases') early adopted in the prior year. New and amended accounting pronouncements on issue but not yet effective From 1 July 2022, the Group will adopt an amendment to IAS 16/AASB 116 'Property, Plant and Equipment' that requires an entity to recognise the sales proceeds from selling items produced while preparing property, plant and equipment for its intended use, and the related cost, in profit or loss, instead of deducting the amounts received from the cost of the asset. The amendment is applied retrospectively, but only to items of property, plant and equipment that became ready for its intended use on or after 1 July 2020. The impact of the amendment on the Group is not expected to be significant and the Group has not identified any material amounts deducted from the cost of assets since 1 July 2020. A number of other accounting standards and interpretations have been issued and will be applicable in future periods. While these remain subject to ongoing assessment, no significant impacts have been identified to date. These pronouncements have not been applied in the preparation of these Financial Statements. BHP Appendix 4E 2022 171

2 Directors' declaration In accordance with a resolution of the Directors of BHP Group Limited, the Directors declare that: (a) in the Directors' opinion the Financial Statements and notes are in accordance with the Australian Corporations Act 2001 (Cth), including: (i) complying with the applicable Accounting Standards and the Australian Corporations Regulations 2001 (Cth); and (ii)givingatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossofBHPGroupLimitedandtheGroupasat30June2022and oftheirperformancefortheyearended30June2022 (b) the Financial Statements also comply with International Financial Reporting Standards, as disclosed in the Basis of preparation to the Financial Statements (c) to the best of the Directors' knowledge, the management report (comprising the Operating and Financial Review and Directors' Report) includes a fair review of the development and performance of the business and the position of the Group and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that the Group faces (d) in the Directors' opinion there are reasonable grounds to believe that BHP Group Limited will be able to pay its debts as and when they become due and payable (e)asatthedateofthisdeclaration,therearereasonablegroundstobelievethatBHPGroupLimitedandeachoftheClosedGroupentitiesidentified innote36totheFinancialStatementswillbeabletomeetanyliabilitiestowhichtheyare,ormaybecome,subjectbecauseoftheDeedofCross GuaranteebetweenBHPGroupLimitedandthosegroupentitiespursuanttoASICCorporations(Wholly-owned Companies) Instrument 2016/785 (f) the Directors have been given the declarations required by Section 295A of the Australian Corporations Act 2001 (Cth) from the Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2022 Signed in accordance with a resolution of the Board of Directors. Ken MacKenzie Chair Mike Henry ChiefExecutiveOfficer 16August2022 172 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary 3 Lead Auditor's Independence Declaration under Section 307C of the Australian Corporations Act 2001 Auditor's independence declaration to the directors of BHP Group Limited As lead auditor for the audit of the financial report of BHP Group Limited for the financial year ended 30 June 2022, I declare to the best of my knowledge and belief, there have been: (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; (b) no contraventions of any applicable code of professional conduct in relation to the audit; and (c) no non-audit services provided that contravene any applicable code of professional conduct in relation to the audit. This declaration is in respect of BHP Group Limited and the entities it controlled during the financial year. Ernst & Young Rodney Piltz Partner Melbourne 16 August 2022 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation BHP Appendix 4E 2022 173

4 Independent auditor's report to the members of BHP Group Limited Report on the audit of the financial report Opinion We have audited the financial report of BHP Group Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated balance sheet as at 30 June 2022, the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated cash flow statement for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2022 and of its consolidated financial performance for the year ended on that date; and b. Complying with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB), Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our consideration of climate change related risks The Group continues to develop its assessment of the potential impacts of climate change, including considering divergent climate scenarios across a range of temperature outcomes, with two scenarios; the Central Energy View and the Lower Carbon View, currently being used as inputs to the Group's operational planning cases as explained in the Climate change section within the financial report. The financial impacts of climate change and the transition to a low carbon economy (climate change) on the Group were considered in our audit where they have the potential to materially impact the basis of preparation, including the key judgements and estimates exercised by the Group in the preparation of the financial report, particularly in relation to the assessment of the carrying value of property, plant and equipment and the determination of closure and rehabilitation provisions. The key judgements and estimates disclosed in the financial report, incorporate assumptions that are directly and/or indirectly impacted by climate change, including Board approved climate related commitments and strategies, to the extent they can be reliably estimated, in accordance with International Financial Reporting Standards as issued by the IASB and Australian Accounting Standards. The key audit matters section of this report address how we have assessed the Group's climate related assumptions to the extent they impact each key audit matter. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the financial report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 174 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Assessment of the carrying value of property, plant and equipment Why significant How our audit addressed the key audit matter Refer to Note 3 'Exceptional items', Note 11 'Property, plant and The primary audit procedures we performed, amongst others, included equipment' and Note 13 'Impairment of non-current assets'. the following: Accounting standards require an assessment of indicators of - We evaluated the design of, and tested the operating effectiveness impairment and impairment reversal annually, or more frequently if of, the internal controls over the Group's processes of assessment for indicators of impairment exist, for each cash generating unit (CGU). indicators of impairment and impairment reversal. The Group's assessment of indicators of impairment and impairment - We performed an analysis for indicators of impairment and impairment reversal included an evaluation of geo-political events and conflicts, reversal, which included considering the performance of the assets regulatory and legislative changes, macro-economic disruptions, and external market conditions. Our procedures involved assessing the commodity price forecasts, reserves, operating expenditure, asset key inputs such as commodity price forecasts, discount rates, reserve performance and ongoing impact of the COVID-19 pandemic. estimation, operating expenditure and asset performance. - We considered the impact of geo-political events and conflicts, During the year, the Group determined that no indicators of impairment regulatory and legislative changes, macro-economic disruptions and or impairment reversal existed for the Group's CGUs, with the the COVID-19 pandemic as part of our evaluation of indicators of exception of Cerro Colorado. The Group recorded an impairment impairment and impairment reversal. expense of US$515 million primarily in relation to Cerro Colorado as - We assessed commodity price forecasts assumed by the Group against outlined in Note 13. comparable market data. The assessment of the indicators of impairment and impairment - We involved our valuation specialists to assist in evaluating, amongst reversal for CGUs was considered to be a key audit matter as it other things, the discount rates applied and commodity price forecasts. involved significant judgement. Assessing the existence of indicators of impairment or impairment reversal for a CGU is complex and The Group uses internal and external experts to provide geological, subjective due to the use of forward-looking estimates, which are metallurgical, mine planning, commodity price forecasts and technological inherently difficult to determine with precision. There is also a level information to support key assumptions in the assessment of indicators of of judgement applied by the Group in determining the key inputs into impairment or impairment reversal. these forward-looking estimates. With assistance from our mining reserves specialists, we examined the The key estimates in the Group's determination of indicators of information provided by the Group's experts, including assessment of impairment or impairment reversal, which influence whether or not the reserve estimation methodology against the relevant industry and an estimate of the recoverable amount of a CGU is required were regulatory guidance. We also assessed the qualifications, competence as follows: and objectivity of the internal and external experts. - Commodity prices: assumptions in relation to commodity price With the assistance of our climate change and valuation specialists we forecasts are inherently uncertain. There is a risk that the have evaluated how climate related considerations and judgements assumptions are not reasonable and may not appropriately such as those reflected through commodity price forecasts, carbon reflect changes in supply and demand, including the impact of price assumptions and the incorporation of climate related strategies climate change. and commitments into the forecast cashflows have been reflected in - Reserves: assessing the estimation of reserves is complex as there the consideration of asset carrying values, including the assessment of is significant estimation uncertainty in assessing the quantities of indicators of impairment and indicators of impairment reversal. reserves, and the amount that will be economically recovered based We assessed the adequacy of the disclosures included in Notes 11 and on future production estimates over the asset life. 13 of the financial report. - Discount rates: given the long life of the Group's assets, CGU recoverable amounts are sensitive to the discount rate applied. Determining the appropriate discount rate to apply to a CGU is judgemental. The Group has continued to advance its evaluation of the potential financial impacts of climate change incorporated into the assessment of indicators of impairment and impairment reversal, the results of which are disclosed in the Climate change section and Note 13 of the financial report. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation BHP Appendix 4E 2022 175

Closure and rehabilitation provisions Why significant How our audit addressed the key audit matter Refer to Note 15 'Closure and rehabilitation provisions'. The primary audit procedures we performed, amongst others, included the following: The Group has closure and rehabilitation obligations to restore and rehabilitate environmental disturbances created by its operations and - We evaluated the design of, and tested the operating effectiveness related sites. of, internal controls related to the Group's closure and rehabilitation provision estimates. These obligations arise from regulatory and legislative requirements - We evaluated the Group's legal and regulatory obligations for closure across multiple jurisdictions. and rehabilitation, life of operation, future rehabilitation costs, discount The key inputs used to determine the closure and rehabilitation rates and timing of future cashflows. provisions are: - We tested that the future rehabilitation costs were consistent with the - Life of the operation or site; closure plans prepared by the Group's internal experts. - Estimated cost of future closure and rehabilitation activities; - We tested the mathematical accuracy of the closure and rehabilitation - Timing of the closure and rehabilitation activities; provision calculations. - Discount rates; and - With the assistance of our rehabilitation subject matter specialists, we evaluated a sample of closure and rehabilitation provisions for - Current regulatory and legislative requirements. operating and closed asset sites within the Group, including: As a result of these inputs and the evaluation of climate related - Evaluation of the closure and rehabilitation plans with regard to risks and strategies, closure and rehabilitation provisions have a applicable regulatory and legislative requirements; high degree of estimation uncertainty with a wide potential range of - Evaluation of the methodology used by the Group's internal mine reasonable outcomes. closure engineers against industry practice and our understanding of Closure and rehabilitation provisions were considered to be a the business; and key audit matter as the estimation of these provisions is complex, - Assessment of the reasonableness of the timing of cash flows involves a high degree of judgement and often requires specialist and cost estimates against the closure and rehabilitation plan and expertise to estimate the costs required to satisfy closure and industry practice. rehabilitation obligations. - The Group has used internal and external experts to support the The Group has continued to advance its evaluation of the potential estimation of the mine closure and rehabilitation provisions. With the financial impacts of climate change and incorporated the related assistance of our rehabilitation subject matter specialists, we assessed estimates, to the extent they can be reliably measured, in the the qualifications, competence and objectivity of the internal and determination of the closure and rehabilitation provisions, the results of external experts and that the information provided by the Group's which are disclosed in Notes 1 and 15 of the financial report. internal and external experts has been appropriately reflected in the calculation of the closure and rehabilitation provisions. - We assessed the discount rates adopted to calculate the closure and rehabilitation provisions, including benchmarking to comparable market data. - With the assistance of our climate change and other subject matter specialists, we evaluated how the Group's response to climate change had been considered in the determination of closure and rehabilitation provision estimates, such as physical risks created by changes to long-term weather outlooks, estimates related to post closure monitoring and maintenance and the timing of closure activities impacted by mine operating lives. - We assessed the adequacy of the disclosures included in Note 15 of the financial report. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 176 BHP Appendix 4E 2022

Review and Financial Governance Financial Statements Glossary Samarco dam failure provisions recognised, including the Germano dam decommissioning, and contingent liabilities disclosures Why significant How our audit addressed the key audit matter Refer to Note 3 'Exceptional items', Note 4 'Significant events - The primary audit procedures we performed, amongst others, included Samarco dam failure' and Note 32 'Contingent liabilities'. the following: There were a number of significant judgements and disclosures made - We assessed the design of, and tested the operating effectiveness by the Group in relation to the Samarco dam failure and the Germano of, the internal controls over the Samarco dam failure accounting and dam decommissioning, including: disclosure process. This included testing controls over: - Determining the extent of the Group's and BHP Billiton Brasil - The determination of the provision for the remediation of the Ltda's legal obligation to continue to fund the costs associated Samarco dam failure, including significant assumptions such as the with the Samarco dam failure, and the quantification of the cost estimate to remediate, the nature and extent of remediation continued obligation required by the Governance Agreement and activities and compensation for the impacted peoples; and Framework Agreement; - The Group's assessment of the legal claims and determination of the - Determining the costs of the decommissioning of the Germano associated provision and related contingent liability disclosures. dam complex; - Determining the status, accounting treatment and quantification - We assessed the key assumptions used to determine the provision (if applicable) of the legal claims against BHP Group Limited, recorded by the Group in relation to potential obligations by: BHP Group (UK) Ltd, BHP Billiton Brasil Ltda and Samarco; - Understanding the impact of any court decisions on the number and compensation category of impacted peoples; - Determining the status of any potential settlements; and - Understanding the impact of any Brazilian court decisions on the - Disclosures relating to the contingent liabilities from the various infrastructure remediation program relating to the resettling of legal claims and other circumstances that represent exposures to communities impacted by the dam failure; the Group. We identified the Samarco dam failure provisions recognised, and - Inquiring with the Group's subject matter experts for the various contingent liabilities disclosures, as a key audit matter as auditing remediation programs regarding the cost estimate to remediate the these estimates is complex. There is a high degree of estimation environment, residents' wellbeing and infrastructure damaged by the uncertainty, together with a wide range of reasonable outcomes. dam failure; Significant judgement was required in relation to assessing the - Evaluating the qualifications, competence and objectivity of the completeness and measurement of the estimated cash outflows Group's subject matter experts, and the independent external related to the provisions and contingent liabilities, including the party that contribute to the determination of the cash flow probability of the outflows. This is due to: estimates by considering their qualifications, scope of work and - The significant size of the potential claims, combined with the multi- remuneration structure; jurisdictional legal and regulatory locations; - Comparing the nature and extent of remediation activities described - High degree of judgement and estimation around certain key in the Framework Agreement to the activities included in the cash assumptions in the provision, including: flow forecasts; - Selecting a sample of cost estimates included in the provision and - Cost estimates of remediation and compensation requirements considering the underlying supporting documentation, such as for the Samarco dam failure; - The number and compensation category of impacted people court decisions; - Assessing the period in which a provision change was recorded by entitled to compensation; and - Nature and extent of remediation activities. understanding when the event that caused the change occurred; - Assessing the Germano dam decommissioning provision, with the assistance of our rehabilitation subject matter specialists, as part of our audit procedures reported in the Closure and Rehabilitation Provisions key audit matter above; - Determining whether or not it is possible to provide a range of outcomes or a reliable estimate of any potential settlement outcomes; and - Evaluating the historical accuracy of prior year's forecasted cash flows with respect to the Group's current year actual cash flows. - We read the claims and assessed their status and considered whether they now represented liabilities through: - Inquiries with the Group's external and internal legal advisors, senior management, Group finance, and members of the Executive Leadership Team, with respect to the ongoing proceedings; - Inspection of correspondence with external legal advisors; and - Independent confirmation letters received from external legal advisors. - We assessed the disclosures regarding the environmental and legal contingent liabilities as included in Note 32, and the relevant disclosures regarding the significant events relating to Samarco dam failure as included in Note 4 against the disclosure requirements of the relevant accounting standards. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation BHP Appendix 4E 2022 177

Information other than the financial report and - Evaluate the appropriateness of accounting policies used and the auditor's report thereon reasonableness of accounting estimates and related disclosures made by the directors. The directors are responsible for the other information. The other information comprises the information included in the Company's - Conclude on the appropriateness of the directors' use of the going 2022 annual report other than the financial report and our auditor's concern basis of accounting and, based on the audit evidence report thereon. obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability Our opinion on the financial report does not cover the other information to continue as a going concern. If we conclude that a material and we do not and will not express any form of assurance conclusion uncertainty exists, we are required to draw attention in our auditor's thereon, with the exception of the Remuneration Report and our related report to the related disclosures in the financial report or, if such assurance opinion. disclosures are inadequate, to modify our opinion. Our conclusions In connection with our audit of the financial report, our responsibility are based on the audit evidence obtained up to the date of our is to read the other information and, in doing so, consider whether the auditor's report. However, future events or conditions may cause the other information is materially inconsistent with the financial report, Group to cease to continue as a going concern. or our knowledge obtained in the audit or otherwise appears to be - Evaluate the overall presentation, structure and content of the materially misstated. financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner If, based on the work we have performed on the other information that achieves fair presentation. obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to - Obtain sufficient appropriate audit evidence regarding the financial report that fact. We have nothing to report in this regard. information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the Responsibilities financial report of the directors for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. The directors of the Company are responsible for the preparation of We communicate with the directors regarding, among other matters, the financial report that gives a true and fair view in accordance with the planned scope and timing of the audit and significant audit findings, International Financial Reporting Standards as issued by the IASB, including any significant deficiencies in internal control that we identify Australian Accounting Standards and the Corporations Act 2001 and for during our audit. such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and We also provide the directors with a statement that we have complied is free from material misstatement, whether due to fraud or error. with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may In preparing the financial report, the directors are responsible for reasonably be thought to bear on our independence, and where assessing the Group's ability to continue as a going concern, disclosing, applicable, actions taken to eliminate threats or safeguards applied. as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to From the matters communicated to the directors, we determine those liquidate the Group or to cease operations, or have no realistic matters that were of most significance in the audit of the financial report of alternative but to do so. the current year and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public Auditor's financial report responsibilities for the audit of the disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because Our objectives are to obtain reasonable assurance about whether the the adverse consequences of doing so would reasonably be expected to financial report as a whole is free from material misstatement, whether outweigh the public interest benefits of such communication. due to fraud or error, and to issue an auditor's report that includes our Report on the audit of the Remuneration Report opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Opinion on the Remuneration Report Auditing Standards will always detect a material misstatement when it We have audited the Remuneration Report included in the Directors' exists. Misstatements can arise from fraud or error and are considered Report for the year ended 30 June 2022. material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the In our opinion, the Remuneration Report of BHP Group Limited for basis of this financial report. the year ended 30 June 2022, complies with section 300A of the Corporations Act 2001. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional Responsibilities scepticism throughout the audit. We also: The directors of the Company are responsible for the preparation and - Identify and assess the risks of material misstatement of the financial presentation of the Remuneration Report in accordance with section report, whether due to fraud or error, design and perform audit 300A of the Corporations Act 2001. Our responsibility is to express an procedures responsive to those risks, and obtain audit evidence opinion on the Remuneration Report, based on our audit conducted in that is sufficient and appropriate to provide a basis for our opinion. accordance with Australian Auditing Standards. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Ernst & Young - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on Rodney Piltz the effectiveness of the Group's internal control. Partner Melbourne 16 August 2022 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 178 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Glossary BHP Appendix 4E 2022 179

Glossary Units of measure Other terms BHP Group Plc share A fully paid ordinary share in the capital of BHP % AASB (Australian Accounting Standards Board) Group Plc (now known as BHP Group (UK) Ltd). percentage or per cent Accounting standards as issued by the BHP Group Plc shareholders dmt Australian Accounting Standards Board. The holders of BHP Group Plc shares (prior to dry metric tonne Activity data unification of the DLC structure). g/t A quantitative measure of a level of activity grams per tonne that results in greenhouse gas emissions. BHP Group Plc Special Voting Share Activity data is multiplied by an energy and/ A single voting share issued to facilitate joint ha or emissions factor to derive the energy voting by shareholders of BHP Group Plc on hectare kcal/kg consumption and greenhouse gas emissions Joint Electorate Actions (prior to unification of the associated with a process or an operation. DLC structure). kilocalories per kilogram Examples of activity data include kilowatt-hours BHP Group (UK) Ltd kg/tonne or kg/t of electricity used, quantity of fuel used, output kilograms per tonne BHP Group (UK) Ltd (formerly known as BHP of a process, hours equipment is operated, Group Plc) and its subsidaries. km distance travelled and floor area of a building. kilometre ADR (American Depositary Receipt) BHP shareholders koz In the context of BHP's financial results, BHP An instrument evidencing American Depositary shareholders refers to the holders of shares in thousand troy ounces kt Shares or ADSs, which trades on a stock BHP Group Limited. kilotonnes exchange in the United States. ADS (American Depositary Share) Board ktpa The Board of Directors of BHP. kilotonnes per annum A share issued under a deposit agreement ktpd that has been created to permit US-resident Carbon neutral kilotonnes per day investors to hold shares in non-US companies Carbon neutral includes all those greenhouse and, if listed, trade them on the stock exchanges gas emissions as defined for BHP kV in the United States. reporting purposes. kilovolt ADSs are evidenced by American Depositary Carbon dioxide equivalent (CO2-e) kW Receipts, or ADRs, which are the instruments The universal unit of measurement to indicate kilowatt that, if listed, trade on a stock exchange in the the global warming potential (GWP) of each kWh United States. greenhouse gas, expressed in terms of the kilowatt hour GWP of one unit of carbon dioxide. It is used ASIC (Australian Securities and Investments lb to evaluate releasing (or avoiding releasing) Commission) pound different greenhouse gases against a The Australian Government agency that m common basis. enforces laws relating to companies, securities, metre financial services and credit in order to protect Carbon offsets m3 consumers, investors and creditors. The central purpose of a carbon offset for cubic metre an organisation is to substitute for internal Assets ML GHG emission reductions. Offsets may be Assets are a set of one or more geographically megalitre generated through projects in which GHG proximate operations (including open-cut mines emissions are avoided, reduced, removed mm and underground mines). Assets include our from the atmosphere or permanently stored millimetre operated and non-operated assets. Mt (sequestration). Carbon offsets are generally ASX (Australian Securities Exchange) created and independently verified in million tonnes ASX is a multi-asset class vertically integrated accordance with either a voluntary program or Mtpa exchange group that functions as a market under a regulatory program. The purchaser of a million tonnes per annum operator, clearing house and payments system carbon offset can 'retire' or 'surrender' it to claim MW facilitator. It oversees compliance with its the underlying reduction towards their own GHG megawatt operating rules, promotes standards of corporate emissions reduction targets or goals or to meet governance among Australia's listed companies legal obligations. oz troy ounce and helps educate retail investors. CEO Water Mandate ppm BHP The CEO Water Mandate is a UN Global parts per million BHP Group Limited and its subsidiaries. Compact initiative that mobilises business scf leaders on water, sanitation, and the Sustainable BHP Group Limited Development Goals. Endorsers of the CEO standard cubic feet BHP Group Limited and its subsidiaries. Water Mandate commit to continuous progress t BHP Group Limited share against six core elements of stewardship and tonne A fully paid ordinary share in the capital of BHP in so doing understand and manage their TW own water risks. Companies that endorse the Group Limited. terawatt Mandate agree to continuous improvement in six TWh BHP Group Limited shareholders core areas of their water stewardship practice: terawatt hour The holders of BHP Group Limited shares. Direct Operations, Supply Chain & Watershed tpa Management, Collective Action, Public Policy, BHP Group Limited Special Voting Share tonnes per annum Community Engagement and Transparency. A single voting share issued to facilitate joint BHP is an active signatory of the Mandate. tpd voting by shareholders of BHP Group Limited on tonnes per day Joint Electorate Actions. t/h BHP Group Plc tonnes per hour BHP Group Plc (now known as BHP Group (UK) wmt Ltd) and its subsidiaries. wet metric tonnes 180 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Commercial Equity share approach GHG (greenhouse gas) Our Commercial function seeks to maximise A consolidation approach whereby a company For BHP reporting purposes, these are the commercial and social value across our accounts for greenhouse gas emissions from aggregate anthropogenic carbon dioxide end-to-end supply chain. It provides effective operations according to its share of equity in the equivalent emissions of carbon dioxide and efficient service levels to our assets and operation. The equity share reflects economic (CO2), methane (CH4), nitrous oxide (N O), customers through world-class insights and interest, which is the extent of rights a company hydrofluorocarbons (HFCs), perfluorocarbons 2 market intelligence, deep subject-matter has to the risks and rewards flowing from an (PFCs) and sulphur hexafluoride (SF ). expertise, simple processes and centralised operation. Also see the definition for 'Operational Nitrogen trifluoride (NF ) GHG emissions 6 standard activities. The function is organised control approach'. are currently not relevant 3 for BHP around the core activities in our inbound and reporting purposes. outbound value chains, supported by credit ELT (Executive Leadership Team) The Executive Leadership Team directly reports Global goal for nature and market risk management, and strategy and to the Chief Executive Officer and is responsible The global goal for nature defines what is planning activities. for the day-to-day management of BHP and needed to halt and reverse today's catastrophic Company leading the delivery of our strategic objectives. loss of nature. It is supported by a number of BHP Group Limited and its organisations that ask governments to adopt respective subsidiaries. Energy the goal at the international level, which each Energy means all forms of energy products country, the private sector, communities and Continuing operations where 'energy products' means combustible others can contribute to achieving. Assets/operations/entities that are owned and/or fuels, heat, renewable energy, electricity, or operated by BHP, excluding assets/operations/ any other form of energy from operations that Goal (in respect of greenhouse gas emissions) entities classified as Discontinued Operations. are owned or controlled by BHP. The primary An ambition to seek an outcome for which sources of energy consumption come from fuel there is no current pathway(s), but for which Convention of Biological Diversity consumed by haul trucks at our operated assets, efforts will be pursued towards addressing The Convention on Biological Diversity as well as purchased electricity used at our that challenge, subject to certain assumptions (CBD) is the international legal instrument for operated assets. or conditions. 'the conservation of biological diversity, the sustainable use of its components and the fair Energy content factor GRI (Global Reporting Initiative) and equitable sharing of the benefits arising out The energy content of a fuel is an inherent GRI works with businesses and governments to of the utilization of genetic resources' that has chemical property that is a function of the understand and communicate their impact on been ratified by 196 nations. number and types of chemical bonds in the fuel. critical sustainability issues. Discontinued operations Entrained water Groundwater Assets/operations/entities that have either Entrained water includes water incorporated into Water beneath the earth's surface, including been disposed of or are classified as held product and/or waste streams, such as tailings, beneath the seabed, which fills pores or for sale in accordance with IFRS 5/AASB that cannot be easily recovered. cracks between porous media such as soil, 5 Non-current Assets Held for Sale and rock, coal, and sand, often forming aquifers. Executive KMP (Key Management Personnel) Groundwater use from Discontinued Operations. may be abstracted for Executive KMP includes the Executive Director bore fields or accessed via dewatering to Dividend record date (our CEO), the Chief Financial Officer, the access ore. For accounting purposes, water The date, determined by a company's board of President Operations (Minerals Australia), the that is entrained in the ore can be considered directors, by when an investor must be recorded President Operations (Minerals Americas), as groundwater. as an owner of shares in order to qualify for a and the Senior Executive Officer (President forthcoming dividend. Petroleum until 31 May). It does not include the Group Non-Executive Directors (our Board). BHP Group Limited and its DLC (Dual Listed Company) respective subsidiaries. BHP's Dual Listed Company structure had two Financial control approach parent companies (BHP Group Limited and A consolidation approach whereby a company GWP (global warming potential) BHP Group Plc (now known as BHP Group (UK) reports greenhouse gas emissions based on A factor describing the radiative forcing impact Ltd)) operating as a single economic entity as a the accounting treatment in the company's (degree of harm to the atmosphere) of one result of the DLC merger. The DLC structure was consolidated financial statements, as follows: unit of a given greenhouse gas relative to one unified on 31 January 2022. unit of CO2. BHP currently uses GWP from the - 100 per cent for operations accounted for Intergovernmental Panel on Climate Change DLC Dividend Share as subsidiaries, regardless of the equity (IPCC) Assessment Report 5 (AR5) based on A share to enable a dividend to be paid by BHP interest owned 100-year timeframe. Group Plc to BHP Group Limited or by BHP - for operations accounted for as a joint Group Limited to BHP Group Plc (as applicable) operation, the company's interest in HPI (high-potential injuries) prior to unification of the DLC structure. the operations High-potential injuries (HPI) are recordable injuries and first aid cases where there was the DLC merger It does not report greenhouse gas emissions potential for a fatality. The Dual Listed Company merger between BHP from operations that are accounted for Group Limited and BHP Group Plc (now known using the equity method in the company's ICMM (International Council on Mining and Metals) as BHP Group (UK) Ltd) on 29 June 2001. financial statements. The International Council on Mining and Metals is an international organisation dedicated ECR Functions to a safe, fair and sustainable mining and BHP's Economic Contribution Report for the Functions operate along global reporting lines to metals industry. year ended 30 June 2022. provide support to all areas of the organisation. Functions have specific accountabilities and IFRS (International Financial Reporting Standards) Emission factor Accounting standards as issued by the deep expertise in areas such as finance, legal, A factor that converts activity data into governance, technology, human resources, International Accounting Standards Board. greenhouse gas emissions data (e.g. kgCO2-e corporate affairs, health, safety and community. emitted per GJ of fuel consumed, kg CO2-e IPCC (Intergovernmental Panel on Climate Change) emitted per KWh of electricity used). Gearing ratio The Intergovernmental Panel on Climate The ratio of net debt to net debt plus net assets. Change (IPCC) is the United Nations body for assessing the science related to climate change. BHP Appendix 4E 2022 181

Glossary continued KMP (Key Management Personnel) Non-operatedasset/non-operated joint venture Paris Agreement Key Management Personnel (KMP) includes the (NOJV) The Paris Agreement is an agreement between roles which have the authority and responsibility Non-operatedassets/non-operated joint countries party to the United Nations Framework for planning, directing and controlling the ventures include interests in assets that are Convention on Climate Change (UNFCC) to activities of BHP. These are Non-executive owned as a joint venture but not operated by strengthen efforts to combat climate change and Directors, the CEO, the Chief Financial BHP. References in this Annual Report to a 'joint adapt to its effects, with enhanced support to Officer, the President Minerals Australia, the venture' are used for convenience to collectively assist developing countries to do so. President Minerals Americas and the Senior describe assets that are not wholly owned Aims of the Paris Agreement Executive Officer (i.e. President Petroleum until by BHP. Such references are not intended to The central objective of the Paris Agreement 31 May 2022). characterise the legal relationship between the is its long-term temperature goal to hold global KPI (key performance indicator) owners of the asset. average temperature increase to well below 2°C Used to measure the performance of the Group, Occupational illness above pre-industrial levels and pursue efforts to individual businesses and executives in any An illness that occurs as a consequence of work- limit the temperature increase to 1.5°C above one year. related activities or exposure. It includes acute pre-industrial levels. Legacy assets or chronic illnesses or diseases, which may be Paris-aligned Legacy assets refer to those BHP-operated caused by inhalation, absorption, ingestion or Aligned to the Paris Agreement goals. assets, or part thereof, located in the Americas direct contact. that are in the closure phase. OELs (occupational exposure limits) Petroleum (asset group) An occupational exposure limit is an upper limit A group of oil and gas assets (see 'Asset LME (London Metal Exchange) on the acceptable concentration of a hazardous groups') formerly operated by BHP before A major futures exchange for the trading of substance in workplace air for a particular its merger with Woodside in June 2022. industrial metals. material or class of materials. OELs may also Petroleum's core production operations were be set for exposure to physical agents such as located in the US Gulf of Mexico, Australia and Location-based reporting Trinidad and Tobago. Petroleum produced crude Scope 2 greenhouse gas emissions based on noise, vibration or radiation. oil and condensate, gas and natural gas liquids. average energy generation emission factors OFR for defined geographic locations, including BHP's Operating and Financial Review for the PPE (personal protective equipment) local, subnational, or national boundaries (i.e. year ended 30 June 2022. PPE means anything used or worn to minimise grid factors). In the case of a direct line transfer, risk to worker's health and safety, including air the location-based emissions are equivalent to Onshore US supplied respiratory equipment. the market-based emissions. BHP's petroleum asset (divested in the Residual mix Market-based reporting year ended 30 June 2019) in four US shale The mix of energy generation resources and Scope 2 greenhouse gas emissions based on areas (Eagle Ford, Permian, Haynesville associated attributes such as greenhouse gas the generators (and therefore the generation and Fayetteville), where we produced oil, emissions in a defined geographic boundary fuel mix from which the reporter contractually condensate, gas and natural gas liquids. left after contractual instruments have been purchases electricity and/or is directly provided Operated assets claimed/retired/cancelled. The residual mix can electricity via a direct line transfer). Operated assets include assets that are wholly provide an emission factor for companies without Nature positive owned and operated by BHP and assets that contractual instruments to use in a market-based A high-level goal and concept describing a future are owned as a joint venture and operated by method calculation. A residual mix is currently state of nature (e.g. biodiversity, ecosystem BHP. References in this Annual Report to a 'joint unavailable to account for voluntary purchases services and natural capital) which is greater venture' are used for convenience to collectively and this may result in double counting between than the current state. This definition comes describe assets that are not wholly owned electricity consumers. from the Taskforce on Nature-related Financial by BHP. Such references are not intended to SASB (Sustainability Accounting Standards Board) Disclosures (TNFD) Framework - Beta release characterise the legal relationship between the The Sustainability Accounting Standards Board v0.1 owners of the asset. is a non-profit organisation that develops Net zero (for a BHP greenhouse gas goal, target or Operational control approach standards focused on the financial impacts A consolidation approach whereby a company of sustainability. pathway, or similar) accounts for 100 per cent of the greenhouse gas Net zero includes the use of carbon offsets Scope 1 greenhouse gas emissions emissions over which it has operational control as governed by BHP's approach to carbon Scope 1 greenhouse gas emissions are direct (a company is considered to have operational offsetting described at bhp.com/climate. emissions from operations that are owned control over an operation if it or one of its or controlled by the reporting company. Net zero (for industry sectors, the global economy, subsidiaries has the full authority to introduce For BHP, these are primarily emissions from transition or future, or similar) and implement its operating policies at the fuel consumed by haul trucks at our operated Net zero refers to a state in which the operation). It does not account for greenhouse assets, as well as fugitive methane emissions greenhouse gases (as defined in this Glossary) gas emissions from operations in which it from coal and petroleum production at our going into the atmosphere are balanced by owns an interest but does not have operational operated assets. removal out of the atmosphere. control. Also see the definition for 'Equity share approach'. NGER (National Greenhouse and Energy Scope 2 greenhouse gas emissions Reporting Scheme) Operations Scope 2 greenhouse gas emissions are indirect The Australian National Greenhouse and Energy Open-cut mines, underground mines and emissions from the generation of purchased Reporting (NGER) scheme is a single national processing facilities. or acquired electricity, steam, heat or cooling framework for reporting and disseminating that is consumed by operations that are owned company information about greenhouse Other (with respect to water consumption volumes) or controlled by the reporting company. BHP's gas emissions, energy production, energy This includes water volumes used for purposes Scope 2 emissions have been calculated consumption and other information specified such as potable water consumption and amenity using the market-based method unless under NGER legislation. facilities at our operated assets. otherwise specified. Nickel intermediates Concentrate, matte, residue, and mix sulphide. 182 BHP Appendix 4E 2022

Operating and Financial Review Governance Financial Statements Glossary Scope 3 greenhouse gas emissions Tier 1 asset United Nations Sustainable Development Goals Scope 3 greenhouse gas emissions are all other An asset that we believe is large, long-life and (SDGs) indirect emissions (not included in Scope 2) that low-cost. The Sustainable Development Goals (SDGs), occur in the reporting company's value chain. TRIF (total recordable injury frequency) also known as the Global Goals, were adopted For BHP, these are primarily emissions resulting The sum of (fatalities + lost-time cases + by the United Nations in 2015 as a universal from our customers using and processing restricted work cases + medical treatment cases) call to action to end poverty, protect the planet, the commodities we sell, as well as upstream x 1,000,000 ÷ actual hours worked. and ensure that by 2030 all people enjoy peace emissions associated with the extraction, and prosperity. production and transportation of the goods, Stated in units of per million hours worked. WAF (Water Accounting Framework) services, fuels and energy we purchase for use BHP adopts the US Government Occupational The Water Accounting Framework is a common at our operations; emissions resulting from the Safety and Health Administration guidelines mining and metals industry approach to water transportation and distribution of our products; for the recording and reporting of occupational accounting in Australia. and operational emissions (on an equity basis) injury and illnesses. TRIF statistics exclude non-from our non-operated joint ventures. operated assets. Water quality - Type 1 Water of high quality that would require minimal SEC (United States Securities and Exchange TSR (total shareholder return) (if any) treatment to meet drinking water Commission) TSR measures the return delivered to standards. This water is considered high-quality/ The US regulatory commission that aims to shareholders over a certain period through the high-grade in the International Council on Mining protect investors, maintain fair, orderly and movements in share price and dividends paid and Metals (ICMM) 'Good Practice' Guide (2nd efficient markets and facilitate capital formation. (which are assumed to be reinvested). It is the Edition) (2021). Senior manager measure used to compare BHP's performance to An employee who has responsibility for planning, that of other relevant companies under the Long- Water quality - Type 2 Term Incentive Plan. Water of medium quality that would require directing or controlling the activities of the entity moderate treatment to meet drinking water or a strategically significant part of it. In the OFR, Underlying attributable profit standards (it may have a high salinity threshold senior manager includes senior leaders and Profit/(loss) after taxation attributable to BHP of no higher than 5,000 milligrams per litre any persons who are directors of any subsidiary shareholders excluding any exceptional items total dissolved solids and other individual company even if they are not senior leaders. attributable to BHP shareholders as described in constituents). This water is considered high-Shareplus Financial Statements note 3 'Exceptional items'. quality/high-grade in the International Council on All-employee share purchase plan. For more information refer to OFR 11. Mining and Metals (ICMM) 'Good Practice' Guide Underlying EBIT (2nd Edition) (2021). Social investment Social investment is our voluntary contribution Earnings before net finance costs, taxation Water quality - Type 3 towards projects or donations with the primary expense, Discontinued operations and any Water of low quality that would require significant purpose of contributing to the resilience of exceptional items. Underlying EBIT includes treatment to meet drinking water standards. It may the communities where we operate and the BHP's share of profit/(loss) from investments have individual constituents with high values of environment, aligned with our broader business accounted for using the equity method including total dissolved solids, elevated levels of metals priorities. BHP's targeted level of contribution net finance costs and taxation expense/(benefit). or extreme levels of pH. This type of water also is 1 per cent of pre-tax profit calculated on the For further information, refer to OFR 11. includes seawater. This water is considered low-average of the previous three years' pre-tax Underlying EBITDA quality/low-grade in the International Council on profit as reported. For FY2023-FY2030, our Earnings before net finance costs, depreciation, Mining and Metals (ICMM) 'Good Practice' Guide social investment will be assessed as a total amortisation and impairments, taxation expense, (2nd Edition) (2021). over the seven year goals period to FY2030, Discontinued operations and exceptional items. rather than calculated as an average of the WRSA (Water Resource Situational Analysis) previous three years' pre-tax profit. Underlying EBITDA includes BHP's share A Water Resource Situational Analysis (WRSA) of profit/(loss) from investments accounted is a holistic assessment of the water situation South32 for using the equity method including net where an asset operates. The process is During FY2015, BHP demerged a selection finance costs, depreciation, amortisation and designed to describe the water challenges that of our alumina, aluminium, coal, manganese, impairments and taxation expense/(benefit). stakeholders share and the opportunities for nickel, silver, lead and zinc assets into a new For further information, refer to OFR 11. collective action to address those challenges. company - South32 Limited. Unification The WRSA is prepared by a credible third-party and draws on publicly available information Surface water The unification of BHP's corporate structure and direct stakeholder input. Within a defined All water naturally open to the atmosphere, under BHP Group Limited as effected on 31 area that includes the water resources that BHP including rivers, lakes and creeks and external January 2022. interacts, each WRSA includes assessment of: water dams but excluding water from oceans, Unit costs - the sustainability of the volume and quality seas and estuaries (e.g. precipitation and runoff, One of the financial measures BHP uses to including snow and hail). of the water resources, taking into account monitor the performance of individual assets. interactions of all other parties and any related Target (in respect of greenhouse gas emissions) Unit costs are calculated as ratio of net costs of environmental, social or cultural values and An intended outcome in relation to which we the assets to the equity share of sales tonnage. climate change forecasts have identified one or more pathways for Net costs is defined as revenue less Underlying EBITDA excluding freight and other costs, - the state of water infrastructure, water access, delivery of that outcome, subject to certain depending on the nature of each asset.Western sanitation and hygiene of local communities assumptions or conditions. - the environmental health of the water Third-party water Australia Iron Ore, Queensland Coal and New Water supplied by an entity external to the South Wales Energy Coal unit costs exclude catchments that feed the water resources operational facility. Third-party water may government royalties; Escondida unit costs taking into account the extent of vegetation, contain water from three sources, surface water, exclude by-product credits. runoff, and any conservation of the area - external water governance arrangements and groundwater and seawater. their effectiveness BHP Appendix 4E 2022 183

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