1. Report Quality and
Assurance
Chair: John Purcell, Policy Advisor Corporate Regulation, CPA Australia; Member, GRI’s
Australian Advisory Group
.
Richard Boele, Managing Director, Banarra
Renzo Mori Junior, Researcher, University of Southern Queensland
Adrian King, National Leader, Climate Change & Sustainability Services, KPMG
Nancie-Lee Robinson, General Manager – Governance, Integration & Reporting, Telstra

2. KPMG in BHP Billiton’s
Assurance Journey
Adrian King
Tuesday 27 March 2012

3. What I will cover
1. BHP Billiton’s reporting in FY11
2. KPMG’s assurance in FY11
3. The differences in these levels of
assurance
4. KPMG’s approach to assurance
5. Why companies are seeking greater
assurance
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 2
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

4. BHP Billiton’s reporting in FY11
ICMM Sustainable Development
Framework Requirements
Global Compact Principles
Source: www.bhpbilliton.com
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 3
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

5. Increasing levels of assurance
Limited Scope to be
assurance finalised
11 parameters
Limited
Reasonable
assurance assurance
Limited assurance 6 parameters
4- 6 parameters GHG
Limited
Verification assurance Emissions
No Statement – no
assurance standard AA1000 AA1000 & ISAE3000 ISAE3000 ISAE3000 ISAE3000
FY97 FY02-03 FY04 – 06 FY07 - 09 FY10 - 12
BHP Billiton BHP Billiton
Environment Sustainability
Report 1997 Report 2012
Source: www.bhpbilliton.com
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 4
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

6. KPMG’s assurance in FY11
– GRI application level check (Verification)
– Limited assurance over selected areas
– Reasonable assurance over GHG
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 5
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

7. GRI Application Level check
(Verification)
Control environment
Review controls
Process controls
Data review
Data verification
Customer
Group Service Asset Operation Process Data
Group
Sustainability report
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 6
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

8. Limited assurance
Control environment
Review controls
Process controls
Data review
Trend analysis
Benchmarking Understand and review of processes Data verification
Customer
Group Service Asset Operation Process Data
Group
Sustainability report
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 7
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

9. Reasonable assurance
Control environment
Review controls
Process controls
Data review
Trend analysis
Benchmarking Understand and review of processes Data verification
Testing control environment Data verification Testing process controls
Data verification Testing review controls
Customer
Group Service Asset Operation Process Data
Group
Sustainability report
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 8
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

10. KPMG’s Approach to Assurance
Assurance Regulation of Quality control at
Standards assurance provider firm level
■ Standards are subject to ■ Monitoring of assurance ■ Ethical requirements
continuous improvement quality by professional body
and regulator ■ Peer review required
■ Mandatory supporting
standards ■ Complaints mechanism ■ Independence requirements
■ Disciplinary processes
KSAM
KPMG Sustainability
Assurance Manual
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 9
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

11. Why companies are seeking greater assurance
■ Less errors in reporting
■ Improved processes and controls
■ Greater confidence in reported information
■ Ability to support claims to regulators
■ Lower reputational and reporting risks
Ultimately to enhance reliability &
credibility of information
© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 10
(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of
KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

12. © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International).
Liability limited by a scheme approved under Professional Standards Legislation.