2020 CEO Survey: Mike Henry, BHP

Reforms that support skills, job creation and global competitiveness will be critical to economic growth, says BHP chief Mike Henry.

What are the three enduring lessons or changes to flow from COVID-19?

This year has reinforced the value of relationships and the importance of looking out for one another, and demonstrated the remarkable things we can achieve when working together in common cause. We have overcome huge challenges in 2020 — as individuals, as organisations and as a nation.

Our ability to keep things going was made possible with the support of communities, Traditional Owners, governments and business partners. Overcoming and recovering from COVID-19 will require collaboration on a global scale.

How would you rate the shape of the Australian economy as we head into the new year?

Many individuals, businesses and sectors have been acutely impacted by COVID-19 and the restrictions put in place to protect public health. However, the economy has fared better than many nations due to decisive government action to bring the pandemic under control and to soften the impact through stimulus, as well as the strength of our exports. The road to full recovery will be long.

What three reforms are needed to sustainably grow the economy?

Reforms that support skills, job creation and global competitiveness will be critical. They go hand-in-hand and will enable the business-led economic recovery that the government has called for.

Skills, training and education will help businesses to create more job opportunities across Australia – especially in regional areas.

Tax competitiveness remains fundamentally important to our investment decisions, and sustainable tax reform will directly support a business-led recovery. Global competition for capital will only increase and fiscal settings must be competitive for capital investment.

And, while not a reform as such, we are hopeful that Australia’s mutual interests with China will see diplomacy prevail. Our two economies are complementary and a constructive relationship is in the interests of both nations and the region. Australia is a trading nation. Our strength lies in being able to access the rest of the world — to export our resources, our services and our know-how.

What are the three best growth opportunities for your company in 2021?

The foundations we have put in place at BHP over the past several years have stood up to the challenge and disruption of COVID-19. The quality of our assets, our balance sheet and our diversified portfolio mean BHP is well positioned to weather uncertainty.

In terms of growth opportunities, foremost it is the opportunity to grow value through improving productivity.

Our overarching view of the positive long-term outlook for continued growth in commodity demand remains. Even with the recovery from COVID-19, trends such as population growth, rising living standards and action on climate change will drive demand for essential energy, metals, and fertilisers for decades to come.

What impact will digital transformation have on your company?

BHP has made significant investments in technology over a number of years. We are also familiar with working globally across time zones, geographies and cultures. This set us up relatively well to keep our business operating through COVID-19.

We know there is much more opportunity to be unlocked through combining the power of digital technology with innovative thinking and effective collaboration. Data analysis, machine learning, decision automation, autonomous operations and mixed reality are key examples relevant to BHP.

How would you rate business, state and federal government performance this year?

Many important and difficult decisions were made early this year in a short space of time to protect public health and, where possible, to keep working safely to support jobs and communities, and keep the economy ticking over.

Generally, I think Australians have worked together well and in the right spirit to get the best outcome for the nation, and governments and business have played their part in that.