Fortescue Ltd (ABN 57 002 594 872)
Climate Impact & Sustainability Data (2016-07 to 2017-06, 2018-07 to 2019-06, 2022-07 to 2023-06)
Reporting Period: 2016-07 to 2017-06
Environmental Metrics
Total Carbon Emissions:1.717 million tonnes of CO2e
Water Consumption:170.6 million kL of groundwater abstracted
ESG Focus Areas
- Safety
- Aboriginal employment and development
- Diversity
- Climate Change
- Community development
- Environmental protection
- Ethical conduct
- Human rights
- Modern slavery
Environmental Achievements
- Reduced Greenhouse Gas emissions intensity by 8% from FY15
- Reduced total Scope 1 and Scope 2 GHG emissions by 3% compared to the previous 12 months, and by 11% since FY15
- Reduced emissions intensity in electricity generation by 18% since FY15
- No significant environmental incidents occurred during FY17
- Over 77.6% of waste recycled across all sites (over 80% for Cloudbreak and Christmas Creek)
Social Achievements
- Reduced Total Recordable Injury Frequency Rate (TRIFR) by 33% to 2.9
- Increased Aboriginal workforce to 15.8% (1,250 including contractors)
- Increased female employment to 17.3%
- Increased female representation on the Board to 55.6%
- Awarded nearly A$2 billion in contracts to Aboriginal businesses and joint ventures since 2011
- Introduced 14-day payment terms for Aboriginal and small Pilbara businesses
- 96% retention rate of employees returning from parental leave
Governance Achievements
- Adopted the Australian Board of Taxation’s Voluntary Tax Transparency Code
- Paid over A$2 billion in company, royalties and employment related taxes
- No violations of anti-bribery and corruption laws detected
- Participated in the Dow Jones Sustainability Index assessment
Climate Goals & Targets
Long-term Goals:
- By 2021: Achieve 10% spend on total procurement with Aboriginal businesses; complete and publish findings of a Pilbara-wide hydrogeological systems study; identify a sustainable disposal method for OTRs and conveyor belt
Medium-term Goals:
- By 2020: Reduce injuries to lowest TRIFR and severity quartile of resources industry; achieve 25% female employment; achieve 30% female employment in management; achieve 20% Aboriginal employment; achieve 10% Aboriginal employment in leadership roles; achieve 25% decrease in emissions intensity in electricity generation from FY15 levels; achieve 10% of total procurement with Aboriginal businesses by 2021
Short-term Goals:
- By end of FY18: Achieve top quartile safety excellence and culture survey results; develop and implement a business-wide healthy lifestyle program; complete investigations into alternative water disposal options; update approach to local employment and residential workforce; review and update community investment strategy; complete audit of high-risk suppliers
Environmental Challenges
- Climate change related risks: extreme weather events, water scarcity, rising sea levels, regulatory changes, market shifts
- Supply chain disruptions
- Maintaining a zero-tolerance approach to bribery and corruption
Mitigation Strategies
- Implementing measures to protect assets and ensure operational resilience
- Reducing emissions and investing in low-emission technologies
- Developing alternative sourcing strategies
- Implementing a rigorous system of rules and controls to prevent bribery and corruption
- Conducting compliance audits of suppliers
Supply Chain Management
Supplier Audits: 100% of potential and eventual suppliers assessed using human rights risk assessment software
Responsible Procurement
- Standard terms and conditions prohibiting slavery/forced labour
- Human rights clauses in all new contracts
- Due diligence process for compliance with Fortescue’s Code of Conduct and Integrity
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Water scarcity
- Rising sea levels
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Reducing emissions
- Investing in low-emission technologies
Reporting Standards
Frameworks Used: GRI Standards: Core option, UNGC, ICMM Sustainable Development Principles
Certifications: ISO 14001
Third-party Assurance: PricewaterhouseCoopers (for Greenhouse Gas emissions, energy consumption and production)
UN Sustainable Development Goals
- Goal 3 (Good Health and Well-being)
- Goal 5 (Gender Equality)
- Goal 8 (Decent Work and Economic Growth)
- Goal 10 (Reduced Inequalities)
- Goal 13 (Climate Action)
The report details how various initiatives contribute to these goals.
Awards & Recognition
- Supply Nation’s 2017 Corporate Member of the Year and Outstanding Impact Award
- International Water Association Project Innovation Award (2012)
Reporting Period: 2018-07 to 2019-06
Environmental Metrics
Total Carbon Emissions:1.85 million tonnes of CO2e
Scope 1 Emissions:1.69 million tonnes CO2e
Scope 2 Emissions:0.15 million tonnes CO2e
Water Consumption:136,266,801 kL groundwater withdrawal
Waste Generated:25,259 t
Carbon Intensity:319.6 t CO2e/mt.km in FY19
ESG Focus Areas
- Employee health, safety and wellbeing
- Economic contribution (including taxes)
- Creating employment and business opportunities for Aboriginal people
- Workforce diversity
- Business conduct
- Climate change action and disclosure
- Building sustainable communities
- Protecting biodiversity and water resources
- Protecting Aboriginal heritage
- Tailings management
- Human Rights including the eradication of modern slavery
Environmental Achievements
- Reduced GHG emissions intensity across operations by 10.9% since FY15
- Reduced emissions intensity in electricity generation by 17% from FY15 levels
- Reduced emissions intensity in energy consumption by 8.1% since FY17
- Zero significant environmental incidents
- More than 75% of dewatered water used for beneficial purposes or reinjected
Social Achievements
- Achieved a record annual low TRIFR of 2.8
- Increased female employment rate to 19.4%
- 25.5% female employment in senior management roles
- 12.1% Aboriginal employment rate across Australian workforce
- 15.1% Aboriginal employment rate across Pilbara operations
- A$2.3 billion in contracts awarded to Aboriginal businesses and joint ventures
- Launched In-Home Child Care program in Port Hedland
Governance Achievements
- Implemented a Family and Domestic Violence Leave Policy
- 35 Whistleblower disclosures investigated
- No material adjustments made to tax payments following income tax reviews
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero operational GHG emissions in the second half of the century
Medium-term Goals:
- Achieve a female employment rate of 25% by 2020
- Achieve a female employment rate of 30% in manager and above roles by 2020
- Achieve an Aboriginal employment rate of 20% across Fortescue's Australian operations by 2020
- Achieve an Aboriginal employment rate of 10% in leadership roles by 2020
- Achieve an Aboriginal employment rate of 20% in skilled trades by 2022
- Achieve a spend of 10% of total procurement with Aboriginal businesses by 2021
Short-term Goals:
- Achieve a 25% decrease in emissions intensity in electricity generation from FY15 levels by FY20
- Achieve a 5% decrease in emissions intensity in energy consumption in the production process from FY17 levels by FY20
- Identify a sustainable disposal method for off-the-road tyres and conveyor belts by the end of FY20
- Investigate composting opportunities for food-related mine wastes by the end of FY20
Environmental Challenges
- Increased severity of extreme weather events
- Changes in precipitation patterns
- Rising sea levels
- Reduced product demand
- Reputational damage
- Modern slavery practices in the supply chain
Mitigation Strategies
- Building resilience into operations
- Reducing emissions through various initiatives (renewable energy, AHS, etc.)
- Diversifying portfolio into base metals
- Engaging with customers and stakeholders
- Implementing a Modern Slavery Voluntary Statement
- Collaboration with suppliers, industry, government, and NGOs
Supply Chain Management
Responsible Procurement
- Code of Conduct and Integrity
- Human Rights Policy
- Procurement Policy
- Billion Opportunities program
Climate-Related Risks & Opportunities
Physical Risks
- Increased severity of extreme weather events
- Changes in precipitation patterns
- Rising sea levels
Transition Risks
- Policy and regulatory changes
- Reduced product demand
- Reputational damage
Opportunities
- Investment in renewables and alternative fuel technology
- Diversification into base metals
Reporting Standards
Frameworks Used: GRI Standards Core option, UNGC, ICMM
Certifications: ISO 14001
Third-party Assurance: KPMG (greenhouse gas emissions, total energy consumption, and total energy production)
Reporting Period: 2022-07 to 2023-06
Environmental Metrics
ESG Focus Areas
- Modern Slavery
Social Achievements
- Reviewed and updated Human Rights Policy, reaffirming rejection of modern slavery and commitment to fair and living wages.
- Enhanced supply chain due diligence with updated processes and new tools like the Modern Slavery Investigation and Remediation Tool.
- Piloted new forensic technology to identify modern slavery risks in supply chains.
- 8,371 employees completed Online Training Module on human rights and modern slavery.
- 875 employees completed face-to-face training module.
Governance Achievements
- Management of human rights (including modern slavery) identified as a strategic matter with specific Board oversight.
Climate Goals & Targets
Long-term Goals:
- Continue engagement with HRREC and civil society.
- Continue to evaluate and refine modern slavery KPIs.
- Launch the human rights due diligence framework, guidance, and tools.
- Refresh the Human Rights Advisory Group.
Medium-term Goals:
- Continuously improve internal training modules.
- Review the grievance procedure and implement a remediation protocol.
Short-term Goals:
- Identify and implement a screening solution to close the gap in the MSPP.
- Improve use, assessment, and tracking of supplier SAQs.
- Complete the pilot project for forensic traceability technology.
- Continue to improve the advanced due diligence approach for renewable technologies.
- Refine and improve tender schedules.
Environmental Challenges
- Modern slavery risks in operations and supply chain, particularly beyond Tier 1 and Tier 2.
- High modern slavery risks in certain countries (China, DRC, India, Jordan, Kazakhstan, Malaysia, Papua New Guinea, Türkiye, UAE).
- High-risk categories: renewable energy technologies, electronics, rubber, construction, shipping, rail rolling stock, offshore fabrication, labour hire, cleaning, catering, and security services.
- Gap in supplier due diligence due to transition to a new source-to-contract system in Q3 FY23, resulting in 553 newly onboarded suppliers not screened using the MSRAT.
Mitigation Strategies
- Human Rights Policy and Code of Conduct and Integrity.
- Modern Slavery Procurement Procedure (MSPP).
- Modern Slavery Risk Assessment Tool (MSRAT).
- Supplier Self-Assessment Questionnaire (SAQ), including a bespoke Labour and Recruitment Supplier SAQ.
- In-depth industry risk reports from independent consultants.
- Supply chain mapping.
- Human Rights Site Visit Checklist.
- Risk-based approach to supplier audits.
- Forensic technology pilot for traceability.
- Risk Management Plans (RMPs).
- Updated Standard Terms and Conditions with modern slavery provisions.
- Vessel Nomination Questionnaire (VNQ) and vessel inspections.
- Employee training and awareness-raising activities.
- Supplier engagement and collaboration.
- Whistleblower Hotline and grievance mechanisms.
Supply Chain Management
Supplier Audits: Risk-based approach; commissioned third-party audits for chain of custody and worker welfare.
Responsible Procurement
- Code of Conduct and Integrity, Human Rights Policy, Procurement Policy, Sustainable Procurement Standard, Standard Terms and Conditions, Supplier SAQ.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Guiding Principles on Business and Human Rights
Third-party Assurance: Independent, third-party verification of material metrics