Climate Change Data

Environmental Metrics

ESG Focus Areas

• Cultural Heritage Management

Social Achievements

• Developed and implemented a Cultural Heritage Management System (CHMS) across multiple operations globally.
• Established the Rio Tinto Aboriginal Fund, supporting various community initiatives including cultural preservation and celebration.
• Created the Mananga Heritage Centre in Richards Bay, South Africa, preserving and promoting local cultural heritage.
• Implemented an interpretive walking track at Hail Creek Mine, Queensland, Australia, promoting awareness of Aboriginal heritage among employees.
• Donated buildings from the Shawinigan Aluminium Smelting Complex to La Cité de l’énergie, preserving industrial heritage.
• Successfully relocated over 200 graves at Murowa Diamond Mine, Zimbabwe, respecting cultural needs and legal requirements.
• Developed the Wollombi Brook Aboriginal Cultural Heritage Conservation Area in Australia to offset unavoidable heritage disturbances from mining.

Governance Achievements

• Established clear procedures and accountabilities for cultural heritage management across all operations.

Climate Goals & Targets

Environmental Challenges

• Balancing operational needs with the protection of cultural heritage.
• Addressing cumulative impacts of mining on cultural heritage in regions with extensive mining activity.
• Involving a broad range of stakeholders with diverse perspectives on cultural heritage values.
• Managing cultural heritage in areas with limited or no existing legal frameworks.
• Addressing challenges in engaging with marginalized or hard-to-reach community groups.
• Dealing with disputes over cultural heritage significance and management options.
• Managing the relocation of cultural heritage features while preserving their significance.
• Protecting intangible cultural heritage and managing cultural change.
• Communicating effectively with communities and stakeholders on cultural heritage issues.

Mitigation Strategies

• Developed a comprehensive guide for integrating cultural heritage management into operations.
• Implemented inclusive engagement strategies involving communities and stakeholders in decision-making.
• Developed robust cultural heritage knowledge bases through assessments and surveys.
• Established cultural heritage management plans and systems tailored to specific contexts.
• Implemented monitoring, evaluation, and improvement processes to track performance.
• Established formal communication strategies and reporting mechanisms.
• Developed cultural heritage programmes to enhance cultural practices and community development.
• Implemented cultural offsets to compensate for unavoidable heritage impacts.
• Provided cultural awareness training for employees and contractors.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through education and training, economic development, community engagement, and partnerships.

Environmental Metrics

ESG Focus Areas

• Tax transparency
• Sustainable development
• Good corporate governance

Governance Achievements

• Voluntary reporting of tax and wider economic contributions for a number of years.
• Increased level of detailed reporting on tax payments to governments.
• Adherence to established tax strategy principles reviewed and approved by the board of directors.
• Full disclosure to tax authorities.
• Sustaining good relations with tax authorities.

Climate Goals & Targets

Environmental Challenges

• Increased public and press interest in the use of “tax havens” by multinational companies.
• Debate on natural resource taxation policy.
• Risk of fiscal instability influencing global capital flow.

Mitigation Strategies

• Sound commercial reasons for using companies located in tax haven territories (stable government, clear legal framework, beneficial regulatory requirements).
• All exchanges of goods, property and services between companies within the Group are conducted on an arm’s length basis.
• Full disclosure of activities of entities in tax havens to all relevant tax authorities.
• Active engagement with EITI processes.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Extractive Industries Transparency Initiative (EITI)

Third-party Assurance: PricewaterhouseCoopers LLP

Environmental Metrics

ESG Focus Areas

• Tax Transparency

Governance Achievements

• Commitment to tax transparency and reporting in line with EITI principles.
• Active engagement with OECD BEPS process.

Climate Goals & Targets

Environmental Challenges

• Concerns about the proliferation of new tax reporting initiatives leading to multiple and inconsistent requirements and increased compliance costs.
• Potential for double taxation and additional compliance costs resulting from OECD BEPS initiative.
• Need for tax policy to account for the cyclical nature of the mining industry and respect existing investment agreements.

Mitigation Strategies

• Advocating for a consistent global approach to tax reporting with proportionate disclosure requirements and thresholds.
• Constructive engagement with the OECD BEPS process.
• Maintaining and improving reporting and transparency procedures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Extractive Industries Transparency Initiative (EITI)

Third-party Assurance: PricewaterhouseCoopers LLP

Environmental Metrics

ESG Focus Areas

• Safety
• Communities
• Environment
• Governance
• Value Chain
• Climate Change
• Human Rights
• Biodiversity

Environmental Achievements

• 25.9% reduction in greenhouse gas emissions intensity since 2008
• 68% of electricity sourced from renewable energy
• 7% decrease in greenhouse gas emissions intensity since 2015
• RenewAl™ low CO2 aluminium brand launched
• Perfect 5 Green Alliance score for port operations (Saguenay)
• C$85m spent on Lac-Saint-Jean environmental projects

Social Achievements

• US$166m spent on community programmes
• 3 new community agreements signed in Australia, Madagascar and the US
• Lowest all injury frequency rate in company history (second consecutive year)
• 8.3% of permanent Australian workforce is Indigenous
• 93.5% of Oyu Tolgoi workforce are Mongolian nationals
• 46.4% female graduate intake (exceeding 40% target)
• Launched "Here for business" programme in Gladstone, Australia

Governance Achievements

• Implemented critical risk management (CRM) across 60+ operational sites
• Released most detailed tax transparency report to date
• Developed first annual modern slavery statement
• Updated human rights training
• Improved HSE assurance processes
• Conducted over 30 business resilience exercises

Climate Goals & Targets

Environmental Challenges

• One fatality at Paraburdoo operations
• Increased rate of new cases of occupational illness (36% increase from 2015)
• Lower than desired employee engagement score
• Increased regulatory and legislative activity in business integrity
• Challenges in achieving net positive impact on biodiversity
• Volatile aluminium prices and increased competition
• Mine closures expected in coming years
• Climate change impacts on operations
• Managing cumulative environmental impacts in regions with multiple operators
• Managing water resources in water-scarce environments
• Managing tailings and water storage facilities
• Implementing effective control and assurance systems across global supply chain
• Addressing legacy issues at former operating sites

Mitigation Strategies

• Implementing CRM to prevent fatalities
• Adding to health programmes and tightening reporting requirements
• Focusing on key messages from employee survey to improve engagement
• Risk-based approach to integrity and compliance programme
• Shifting focus from NPI on biodiversity to minimizing impacts using mitigation hierarchy
• Investing close to C$300 million in Saguenay assets
• Progressing plans for responsible closure
• Conducting climate change risk assessments for new investments
• Working with other operators to manage cumulative impacts
• Setting site-specific water performance targets
• Reviewing and auditing tailings and water storage facilities
• Seeking suppliers with consistent values and conducting regular training
• Working with local stakeholders to create value at legacy sites

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier code of conduct
• Know your supplier procedure
• Third party due diligence assessments on commercial relationships
• Local procurement initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Use of renewable energy sources

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, ICMM Sustainable Development Framework

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Not disclosed

Rio Tinto chief executive signed a public statement of support for the SDGs

Sustainable Products & Innovation

• RenewAl™ low CO2 aluminium

Awards & Recognition

• National Economic Development Excellence Award (DEAL partnership)
• Certificate of Merit from the Enviropaedia Eco-Logic Awards (RBM)
• Distinction status in Hydro Quebec’s Energy Savers Circle (Canadian aluminium operations)
• Recognition for innovative use of wind power at Diavik Diamond mine

Environmental Metrics

ESG Focus Areas

• Safety
• Process Safety
• Water and tailings management
• Climate change
• Biodiversity
• Business integrity
• Human rights
• Community relationships
• Economic contributions
• Closure
• Value chain

Environmental Achievements

• 27% reduction in greenhouse gas emissions intensity since 2008
• 69% of electricity sourced from renewable energy
• Developed a new biodiversity protection and natural resource management standard
• 2% reduction in greenhouse gas emissions intensity in 2017 versus 2016

Social Achievements

• Launched the new Rio Tinto purpose and enhanced company values
• Introduced a new global minimum standard for paid parental leave
• Exceeded 20% target for women in senior management
• Contributed to 1,336 community programs with a total spend of US$176 million

Governance Achievements

• Published 2nd slavery and human trafficking statement
• Launched Talk to Peggy campaign
• Established a dedicated centralised closure group to manage closure activities

Climate Goals & Targets

Environmental Challenges

• Two fatalities at managed operations in 2017
• Major safety incidents at Bell Bay and Sorel-Tracy
• Five significant community incidents reported
• Challenges in managing energy intensity due to deeper mining and longer transportation distances
• Uncertainty regarding the impacts of climate change on commodities

Mitigation Strategies

• Implementation of Critical Risk Management (CRM) program
• Implementation of process safety standard
• Strengthening controls and continual evaluation of information provided to leaders
• Increased focus on renewable energy options
• Climate change risk assessments for new investments
• Engagement with external stakeholders to improve communication of climate change information

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier code of conduct
• Know your supplier procedure
• Third-party due diligence assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise
• Water risk
• Climatic extremes

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Use of renewable energy

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Core option), GRI Mining & Metals Sector Supplement, ICMM Sustainable Development Framework

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• RenewAlTM low carbon dioxide aluminium

Awards & Recognition

• Canadian-American Business Council’s Corporate Leadership Award
• Richards Bay Minerals Certificate of Merit Water Conservation Award
• Queensland Resources Council Best Company Indigenous Employment and Training Initiative Award
• Mining Association of Canada Leadership Award
• Austmine Miners Innovation Award
• Quebec Transport Association’s Excellence Awards
• Utah Safety Council’s Award of Merit
• Women in Mining and Resources Singapore Inclusion & Diversity Awards
• Golden Gecko Award for Environmental Excellence (certificate of merit and finalist)

Environmental Metrics

ESG Focus Areas

• Health and safety
• Climate change
• Communities
• Corporate political behaviour
• Cyber security
• Employee relations
• Ethics and integrity
• Corporate governance
• Human rights
• Operational environment
• Tailings and structures
• Transparency
• Value chain
• Waste and circular economy
• Water

Environmental Achievements

• 29.4% decrease in greenhouse gas emissions intensity since 2008
• 24% reduction in total greenhouse gas emissions intensity between 2008 and 2020

Social Achievements

• 12-point increase in employee net promoter score (eNPS)
• 3-point increase in employee satisfaction score (eSAT)
• 4-point increase in our recommend score
• 54% of our graduate intake were women, 4% above target and up 18% from 2018

Governance Achievements

• Zero fatalities at managed operations
• All injury frequency rate (AIFR) at 0.42 (target: 0.38), reduced 5% from 2018 (0.44)

Climate Goals & Targets

Environmental Challenges

• Mining disturbs land, waters and potentially the livelihoods of neighbouring communities
• Transition to a low carbon economy
• Managing cultural and heritage impacts
• Increasingly important role technology plays in our business
• Growing interest in the rigour of our systems, our due diligence and performance in our own business and our supply chain
• Preventing and minimising impacts from our operations on their surrounding environments and communities
• Mining and metals industry produces large volumes of tailings (mining residues) that need to be permanently and safely stored
• Interest in and expectations of our value chain are increasing
• We generate mineral waste – waste rock, tailings and slag - and non-mineral waste – auxiliary materials that support our mining and mineral processing operations

Mitigation Strategies

• Work to retain the biodiversity value of sensitive areas and contribute to regional biodiversity research and conservation efforts
• Measure our carbon footprint and seek to report following international guidelines
• Developing strong and lasting relationships
• Strong cyber security practices
• Strong employee engagement and people capability
• Group-wide business and ethics framework and strong accountability processes
• Strong foundations and rules for the Board to support and challenge the executive team on the alignment of sustainability to our business strategy
• Focus on reducing exposures and industrial diseases, and on improving wellbeing
• Work to respect the human rights of all people along our value chain
• Management controls and programmes must help manage inherent risks
• Transparent about the controls we have in place and our performance in managing them
• Greater disclosure of information leads to greater accountability

Supply Chain Management

Supplier Audits: 3,273 due diligence checks completed on third parties

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, ICMM’s 10 Principles for Sustainable Development

Certifications: Aluminium Stewardship Initiative (ASI), Responsible Jewellery Council (RJC)

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Environmental Challenges

• Diverse global customer base with different operating approaches, technology deployment, electricity grid emissions factors and other business inputs that affect the estimation of emissions in our value chains.

Mitigation Strategies

• Developed a steelmaking energy and mass balance model to estimate emissions; employed conservative model assumptions on technology deployment, closed-loop energy efficiency and regional grid factors across the regions in which our customers operate; used internal carbon modelling and will refine Scope 3 emissions as customers develop and publish their Scope 1 and 2 emissions inventory.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) (2015), GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2013), Technical Guidance for Calculating Scope 3 Emissions (version 1.0)

Third-party Assurance: PricewaterhouseCoopers

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1 and 2 emissions to 31.1Mt CO2e in 2021, a 4% reduction against the 2018 equity emissions baseline.
• 75% renewable power at managed operations (mostly hydropower).

Social Achievements

• Launched START, a new standard for transparency and traceability across the aluminum value chain.
• Committed to investing $18 million over 10 years to support the Cooperative Research Centre for Transition in Mining Economies.
• Awarded over $60 million of contracts to Traditional Owner businesses to support the Argyle Diamond mine's transition.

Climate Goals & Targets

Environmental Challenges

• Decarbonizing hard-to-abate emissions (anodes, process heat, mobile diesel).
• Scope 3 emissions from customers' processing of iron ore, bauxite, and alumina.
• Managing physical climate risks (extreme weather events).
• Ensuring a just transition for workers and communities.

Mitigation Strategies

• Investing $7.5 billion in capital expenditure (2022-2030) for decarbonization.
• Deploying solar and wind renewables at scale (targeting 1GW in the Pilbara).
• Developing and scaling up ELYSISTM zero-carbon aluminum smelting technology.
• Partnering with customers on steel and aluminum decarbonization.
• Enhancing asset resilience to physical climate risks.
• Supporting a just transition through early engagement with communities and workers.

Supply Chain Management

Responsible Procurement

• Engaging with suppliers to reduce emissions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (cyclones, flooding, drought, heat waves).

Transition Risks

• Regulatory changes
• Market shifts
• Technological advancements

Opportunities

• Growth in low-carbon materials (copper, lithium, aluminum, high-grade iron ore).

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: KPMG

Sustainable Products & Innovation

• ELYSISTM zero-carbon aluminum smelting technology.

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions from 33.7 Mt CO2e in 2018 to 30.3 Mt CO2e in 2022 (equity basis). Note that this does not include the additional equity share of the Oyu Tolgoi mine purchased in mid-December 2022.

Climate Goals & Targets

Environmental Challenges

• Data limitations and exclusions in Scope 3 emissions calculations due to the complexities of the value chain and the lack of readily available data from customers and suppliers.
• Uncertainty in emissions from aluminium smelting operations where bauxite customers supply their processed alumina.

Mitigation Strategies

• Improved accuracy of Scope 3 reporting by applying emission factors relevant to customers and suppliers where available. Use of CRU Group data for emissions intensities where customer or supplier-specific data is unavailable.
• Implementation and use of SeaCarbon portal to capture marine voyage level emissions more accurately.
• Use of actual voyage distances and fuel used on a voyage-by-voyage basis for time-chartered marine vessels and some spot vessels.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) (2015), GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2013), Technical Guidance for Calculating Scope 3 Emissions (version 1.0)

Third-party Assurance: KPMG

Environmental Metrics

ESG Focus Areas

• Health, wellbeing, safety and security
• Equity, diversity and inclusion
• Human rights
• Community engagement
• Indigenous peoples
• Environment
• Responsible third-party partnerships
• Bribery and corruption
• Sanctions and trade controls
• Competition
• Tax transparency
• Data privacy
• Cyber security
• Intellectual property

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Responsible sourcing considering working conditions, environmental practices, safety standards and human rights policies of higher-risk suppliers

Climate-Related Risks & Opportunities