Annex 1
RIO TINTO
CLIMATE CHANGE
POSITION
Rio Tinto believes that emissions of greenhouse
gases (GHG's) resulting from human activities are contributing
to climate change. Avoiding human caused changes to the climate
is an important international goal. In order to achieve this goal
the world needs reductions in emissions of greenhouse gases.
Actions are required to improve our understanding
of the problem and provide solutions for both adaptation and GHG
emissions abatement. Rio Tinto recognises that addressing the
challenge of climate change will impose costs for GHG abatement
and necessitate a change in the way the world uses energy. A full
and comprehensive portfolio of policy and technology options will
be required to achieve the highest benefit and lowest overall
cost for society.
Rio Tinto's climate change programme will undertake
initiatives in three key areas:
1. BUILDING SUPPORT
FOR GOVERNMENT
ACTION
Rio Tinto will engage with stakeholders to advocate
for domestic and international government policies that:
Encourage leadership from developed economies
while enabling all countries to contribute to effective management
of GHG emissions.
Set credible limits for future emissions that
recognise the scale and long-term nature of the climate change
challenge.
Support technology development and deployment
to change the way we use energy.
Utilise broad-based market mechanisms that increase
flexibility and reduce the cost of abating GHG emissions. As a
tool to achieve a specific emissions reduction target, emissions
trading is preferred over carbon taxes or inflexible on-site reduction
requirements.
Rio Tinto recognises that domestic and international
policies and measures to address climate change present business
risks and opportunities that will affect shareholder value. We
will continue to address climate change challenges by minimising
the business risks, capturing the opportunities, and taking actions
that fully consider social, environmental, and economic values.
2. DEVELOPING
LOW EMISSION
PATHWAYS FOR
OUR PRODUCTS
Rio Tinto is committed to helping develop low
GHG emissions pathways that will allow our products to continue
to meet the needs of society. Our businesses will contribute to
this goal in meaningful ways, notably:
Aluminium: We are promoting energy efficiency
by providing lightweight transportation components and encouraging
increased recycling. We are also working to increase the GHG efficiency
of aluminium smelting.
Borates, talc, titanium, and salt: Our industrial
minerals are used to improve the energy efficiency of buildings,
transportation, and certain industrial processes. Our solar-evaporated
salt uses a fraction of the energy of the alternative process
for making high purity salt.
Coal: We are working to accelerate development
and deployment of near "zero emissions" power generation
and hydrogen production from coal.
Copper: We are promoting the use of copper in
high efficiency electrical motors, and supporting increased electrification
as a cost effective contributor to GHG emissions abatement.
Iron Ore: We are reducing steel industry GHG
emissions through development of our carbon efficient HIsmelt(R)
iron making process and production of flux pellets.
Uranium: We produce fuel for low carbon emissions
nuclear electricity generation and hydrogen production.
3. TAKING A
PROACTIVE STANCE
AT OUR
OPERATIONS TO
REDUCE GHG EMISSIONS
Rio Tinto will take a proactive, pragmatic,
and transparent approach to achieve GHG emissions reductions from
our operations and the use of our products. Our operations will
adapt to the physical impacts of a changing climate. We will accomplish
this by:
Setting and achieving progressive targets to
reduce GHG emissions per unit of production either through direct
reductions or by offsets. We will report our progress annually.
Undertaking and encouraging research and development
projects designed to reduce GHG emissions from our operations
and from the use of our products.
Working with our customers and suppliers to help
them and us reduce GHG emissions.
Considering the physical impacts of a changing
climate as a part of our normal planning process and having appropriate
contingency plans in place to adapt to potential impacts.
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