Slide 1: ESG Investor Seminar
ESG Investor Seminar Sydney, 26 November 2018
Slide 2: Cautionary statements
Cautionary statements This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward-looking statements This document contains certain forward-lookin
Slide 3: Delivering value and resilience through sustainability
Delivering value and resilience through sustainability Sydney Investor Seminar Simon Thompson, chairman, 26 November 2018
Slide 4: Agenda
Agenda Time Segment Who Simon Thompson, 10:00 Rio Tinto and ESG Chairman Delivering value and resilience through J-S Jacques, 10:15 sustainability Chief executive Sam Laidlaw, 10:35 Remuneration Committee Chairman of the Remuneration Committee Ann Godbehere, 10:40 Audit Committee Chairman of the Aud
Slide 5: Delivering value and resilience through sustainability
Delivering value and resilience through sustainability Sydney Investor Seminar Simon Thompson, chairman, 26 November 2018
Slide 6: Delivering value and resilience through sustainability
Delivering value and resilience through sustainability Sydney Investor Seminar J-S Jacques, chief executive, 26 November 2018
Slide 7: As pioneers in mining and metals we produce materials essential to human progress
As pioneers in mining and metals we produce materials essential to human progress ©2018, Rio Tinto, All Rights Reserved 7
Slide 8: Our role is to consistently deliver superior shareholder value
Our role is to consistently deliver superior shareholder value over the short, medium and long term. Absolutely vital to achieving this, is managing sustainability well. We know it builds a resilient business for future success and contributes positively to the world around us. ©2018, Rio Tinto, All
Slide 9: ESG is fully embedded in our strategic thinking
ESG is fully embedded in Purpose our strategic As pioneers in mining and metals, we produce thinking materials essential to human progress Strategy Our four strategic drivers: Technology Global breakthrough Shift of power Performance connectivity to the East Portfolio Partnership Demographics Urbani
Slide 10: Our strategy and approach builds from being a company with a focus on material areas
Our strategy and A Running a safe, B Collaborating to C Pioneering approach builds responsible and enable long term materials for from being a profitable profitable business economic benefits human progress company with a focus material areas − Safety and Wellbeing − Communities and Social − Intelli
Slide 11: Voluntary commitments, external benchmarking and accreditation, and transparent reporting
Voluntary commitments, external benchmarking and accreditation, and transparent reporting are key to our approach ©2018, Rio Tinto, All Rights Reserved 11
Slide 12: Our streamlined portfolio changes our sustainability risk
We have been managing sustainability challenges for 146 years Our streamlined portfolio changes our sustainability risk Mineral sands businesses Mongolian copper in Africa Sovereign risk challenges Sovereign and communities OT power solution coal fired risks being actively managed, as per our agreem
Slide 13: Examples: A Running a safe, responsible and profitable business
Examples: A Running a safe, responsible and profitable business
Slide 14: Safety leadership is core to our approach and values
Safety leadership is Continuing history of improvement in AIFR core to our approach and values 2.78 − 100,000 + CRM All injury frequency rate per 200,000 hours verifications per month − Active care and leadership in the field 1.56 − Two fatalities and 1.24 one security related 1.17 1.01 incident in
Slide 15: Preparing for a low carbon future
Preparing for a Emission intensity for managed operations (tCO2e/tCu-eq) low carbon future Scope 1 and 2 − Scope 1 18.2 Mt CO2e − Scope 2 10.7 Mt CO2e − Scope 3 535 Mt CO2e CASE STUDY: Copper - part of the environmental solution − Copper part of the solution Scope 3 for global electrification − Cont
Slide 16: Strong portfolio for a low carbon future
Strong portfolio for a low carbon future 68% of power from Opportunities to be renewables with hydro part of the electricity powered Canadian and battery revolution aluminium Climate change is part of our portfolio decisions Low scope 1 & 2 Copper key to emissions in iron ore electrification With sc
Slide 17: Building a strong culture and employee engagement across the company
Building a strong culture and employee engagement across the company − Our 47,000 employees and 100,000 contractors serve as a useful indicator of societal trends − Employee Engagement Survey (twice a year) − 14 site visits and Town Halls, 20 leaders events − Global purpose and values rollout – best
Slide 18: Examples: B Collaborating to enable long term economic benefits
Examples: B Collaborating to enable long term economic benefits
Slide 19: Our Amrun project delivering sustainable benefits
Our Amrun project delivering sustainable Investment Procurement benefits A$2 billion spent with suppliers A$2.6 billion 99% Australian in capex suppliers Employment 1,200 360+ employees indigenous employees ©2018, Rio Tinto, All Rights Reserved 19
Slide 20: Closure, taking the long term view
Closure, taking the long term view Close-down and restoration/ Significant track record environmental in closure: Holden, provisions total a recent example US$10 billion in our 2017 accounts Planning for the end at the beginning, revised closure strategy, risk assessment & leadership at ICMM ©2018,
Slide 21: Examples: C Pioneering materials for human progress
Examples: C Pioneering materials for human progress Connecting billions of people worldwide
Slide 22: Industry breakthrough: Partnership with Apple for carbon free aluminium production
Industry breakthrough: Partnership with Apple for carbon free aluminium production − Most significant innovation in the aluminium industry in more than a century − Removes all direct greenhouse gases and replaces with oxygen ©2018, Rio Tinto, All Rights Reserved 22
Slide 23: Sustainability is a fundamental driver of our business success
Sustainability is a fundamental driver of our business success and enables us to provide Electric cars use only Cu Co Li two-thirds of the energy the materials the world needs to progress of a petrol car travelling the same distance* Our role is to provide materials to drive 1 human progress and del
Slide 24: ESG Investor Seminar Board Committees
ESG Investor Seminar Board Committees Sydney 26 November 2018
Slide 25: Remuneration Committee – Sam Laidlaw, chairman
Remuneration Committee Sam Laidlaw – chairman
Slide 26: Remuneration Committee remit
26 Remuneration Committee remit Key areas of oversight • Determining the Group’s Remuneration structure and policies and: i. Ensuring they reward fairly and responsibly with a clear link to corporate and individual performance and the company’s long term strategy and values ii. Assessing their cost
Slide 27: Remuneration Committee key topics
27 Remuneration Committee key topics Key focus areas in the last 12 months Likely focus areas in next 12 months • Reviewing terms of the new Remuneration Policy • Implement any relevant changes for the UK Corporate Governance Code and other • Reviewing the rules of the 2018 Equity Incentive Plan reg
Slide 28: Audit Committee – Ann Godbehere
Audit Committee Ann Godbehere – chairman and senior independent director
Slide 29: Audit Committee remit and use of time in last 12 months
29 Audit Committee remit and use of time in last 12 months Agenda time allocation (last 12 months) Key areas of oversight Governance • Financial reporting 4% Financial reporting • Internal control, including internal Ethics & integrity 10% control over financial reporting (SOx) • Risk management 39%
Slide 30: Audit Committee key topics
30 Audit Committee key topics Key focus areas in the last 12 months Likely focus areas in 2019 • Oversight of financial reporting • Supporting the new CFO and his initiatives • Review of carrying values and any indicators • Effectiveness of internal controls following the of impairment or impairment
Slide 31: Sustainability Committee – Megan Clark, chairman
Sustainability Committee Megan Clark - chairman
Slide 32: Tailings and water storage – Rio Tinto standard
32 Tailings and water storage – Rio Tinto standard • August 2015 - issued standard on “Management • December 2016 - ICMM published a Position of tailings and water storage” setting out the Statement in December 2016 covering six requirements for the management of risks elements of Tailings Storage F
Slide 33: Major hazard risk assurance – tailings and waste water
33 Major hazard risk assurance – tailings and waste water Sustainability Committee rd 3 line Group Independent audits of control effectiveness • Audit findings, management action monitoring by the Board Internal Audit Technical Internal assessments and reviews reviews nd 2 line BCA1 audits HSEC revi
Slide 34: Sustainability Committee
34 Sustainability Committee Agenda time allocation (last 12 months) Key areas of oversight Sustainable development reporting 19% • Safety Safety and health • Health Whistleblowing 29% • People and assets security oversight 1% • Environment (including water management) • Climate change Sustainable de
Slide 35: Sustainability Committee key topics
35 Sustainability Committee key topics Likely focus areas in 2019 • Health and safety • Critical risk management maturity • Process safety • Tailings and water storage • Underground safety • Environment • Climate change – integration of risks and opportunities into corporate strategy • Closure – int
Slide 36: Delivering value and resilience through sustainability
Delivering value and resilience through sustainability Sydney Investor Seminar Simon Thompson, chairman, 26 November 2018
Slide 37: Delivering value and resilience through sustainability
Delivering value and resilience through sustainability Sydney Investor Seminar Simon Thompson, chairman, 26 November 2018
Slide 38: Pioneering high ESG standards, focussing on the long term
1 Pioneering high ESG standards 2 Focussing on the long term 3 Integrating ESG into operational and strategic decision-making 4 Building durable stakeholder partnerships Delivering consistently superior 5 shareholder returns AND meeting our obligations to society ©2018, Rio Tinto, All Rights Reserve