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AUM in Action

Rio Tinto Pledges to Report on Scope 3

Metals and mining major Rio Tinto has made new commitments to enhance disclosures on Scope 3 emissions following sustained engagement efforts by the investor-led Climate Action 100+ (CA100+). The company intends to disclose its actual expenditure on steel decarbonisation and forecast spend over a three-year period, as well as provide transparency on capital expenditure for steel decarbonisation projects and financial contributions to decarbonisation partnerships. “CA100+ provides a useful focal point for our engagement with investors on climate change and we have aligned our climate action plan with the CA100+ Net Zero Company Benchmark,” said Alf Barrios, Chief Commercial Officer at Rio Tinto. “It is hoped this significant step forward ultimately provides a foundation for Rio Tinto to define a Scope 3 reduction target.” The investor coalition noted that Rio Tinto’s current Scope 3 emissions from processing iron represented 65% of the company’s total carbon footprint, or 400 metric tonnes of CO2 a year. “The multi-pronged approach of strong investor engagement, backed by a credible shareholder escalation and underpinned by steel decarbonisation research, has catalysed action and this important result,” said Naomi Hogan, Company Strategy Lead at the Australian Centre for Corporate Responsibility. “In particular, it highlights the importance of escalation as a necessary and logical component of effective stewardship.” In the same week, the International Energy Agency (IEA) published its 2024 outlook for global critical minerals, highlighting a strong growth in demand and fall in prices in 2023. Lithium demand rose by 30%, the IEA said, while nickel, cobalt, and graphite also saw demand increase by 8-15%. The report also noted major price declines for battery materials – lithium spot prices fell by 75%, while cobalt, nickel and graphite prices decreased by 30-45%. 

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