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| Overall Assessment |
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| Comprehensive |
Fortescue Ltd has demonstrated a high level of transparency in its climate lobbying disclosures. The company provides a detailed account of its lobbying mechanisms by outlining its active participation in consultations and global forums such as the Sustainable Markets Initiative, the World Economic Forum, and COP27, while also noting specific engagements like submissions to the Australian Government and hosting discussions with figures such as Premier Li Qiang of China. It reinforces its commitment by stating, "We value and invest in building positive longstanding relationships with governments around the world" and highlights its coordinated contributions through membership in diverse industry groups. In addition, Fortescue identifies specific legislative initiatives it has engaged with – including the USA's Inflation Reduction Act, Australia's Hydrogen Headstart government package, and the "Hydrogen Production Tax Credit unveiled in May 2024" – which clearly defines the policy areas it targets. Finally, the company outlines concrete outcomes it seeks, such as reducing steelmaking emissions intensity by 7.5% by 2030, achieving Real Zero Scope 1 and 2 emissions by 2030, decarbonizing its fleet, and advancing green hydrogen technologies. This comprehensive disclosure reflects Fortescue's commitment to providing detailed and transparent information on its climate-related lobbying activities.
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4
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| Overall Assessment |
Comment |
Score |
| Comprehensive |
Fortescue Metals Group Ltd demonstrates a comprehensive governance process for climate lobbying alignment, supported by detailed disclosures and robust monitoring mechanisms. The company has published annual lobbying reports, such as the "FY23 Industry Association Report" and "FY24 Industry Association Report," which provide transparency into its memberships with industry associations and their alignment with Fortescue's climate goals. For example, Fortescue states, "We consider our memberships annually to ensure they continue to provide value and align with our Values and objectives," and categorizes memberships by alignment status, including "Generally aligned," "Partially aligned," and "Misaligned." The company has outlined a clear policy for managing and monitoring these memberships, stating, "The management of each membership falls under the responsibility of the nominated Executive," and has a process for addressing misalignments, noting, "Where misalignment is identified, the membership is reassessed according to the criteria outlined in Section 2.1 and must be approved by the CEO or nominated delegate prior to the commencement of the next membership cycle." Fortescue has identified responsible parties for oversight, including the CEO and nominated executives, who play a key role in approving memberships and addressing misalignments. Additionally, Fortescue has conducted detailed policy alignment reviews, such as its FY23 review, which found that of its 77 active memberships, 37 were "Generally aligned" and 40 were "Partially aligned." The company also provides transparency into specific cases of misalignment and its approach to resolving them, such as withdrawing memberships from DomGas Alliance and the NSW Minerals Council due to misalignment with Fortescue's climate positions. Furthermore, Fortescue integrates climate-related metrics into its Executive and Senior Staff Incentive Plan (ESSIP) and Long-term Incentive Plan (LTIP), demonstrating accountability at the highest levels of management. These measures indicate a robust governance framework encompassing direct and indirect lobbying activities, with clear monitoring mechanisms, accountability structures, and alignment measures in place.
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4
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