Slide 1: Climate change our approach
Climate change our approach Webinar for investors March 2017
Slide 2: Presenters
Presenters Matthew Bateson – Head of Environment and Legacy Management Vivek Tulpule – Head of Economics and Markets
Slide 3: Agenda
Agenda • Introduction • Highlights from our first climate change report • Our use of carbon pricing and scenarios • Current focus of internal analysis • Q&A 68% of the electricity we use is sourced from hydro, solar or wind
Slide 4: Climate change report highlights
Climate change report highlights Our climate change report puts in one publication our position and approach towards climate change It is structured around the elements of the shareholder resolution on climate resilience supported by the Board at last years AGM Future disclosure will include further
Slide 5: Our position
Our position We have had a public position on climate change for over a decade We have stated our support for the Paris Agreement and the long term goal to limit global average temperature rise to below 2°C We continue to advocate for carbon policies based on market mechanisms that protect competiti
Slide 6: Our products
Our products The use of our products will produce emissions, and they have a role in reducing other people’s emissions Our portfolio is well positioned to deliver products that will be demanded in a low carbon economy RenewAl™ offered in 2016
Slide 7: Our performance
Our performance Since 2008, we have reduced our GHG emissions by 35%, and seen a reduction in our GHG intensity by 26% Portfolio changes and efficiency have been key drivers of performance Challenge is to continue performance given headwinds faced by mining
Slide 8: Carbon pricing
Carbon pricing We develop separate price assumptions for the regions and markets in which we operate Our process to develop and update our carbon price includes: • short-term market data • price forecasts and scenarios • input from experts within and outside our business Since 1998 We monitor a rang
Slide 9: Carbon scenarios
OJUTLON] Carbon scenarios Rio Tinto's climate change scenarios Limited action Global concern focuses on economic growth and stability. Limited action to address climate change challenges beyond current commitments. Coordination of action between jurisdictions is slow to evolve. Fossil fuels continue
Slide 10: Next steps
Next steps Over the next 18 months, we will test the business against both physical impacts from possible change and the potential impact on the resilience of our portfolio We invite your feedback and questions