Sign up to access all our data and the evidence and analysis underlying our overall scores. Once you've created an account, we'll get in touch with further details:
Sign Up
| Overall Assessment |
Comment |
Score |
| Comprehensive |
Rio Tinto Ltd has demonstrated a comprehensive level of transparency in disclosing its climate lobbying activities. The company explicitly names specific climate policies it has engaged with, such as the "Safeguard Mechanism Reform Consultation," the "Technology Investment Roadmap," and the "Guarantee of Origin Scheme." Additionally, it has disclosed its involvement with the "Reforming the New Zealand Emissions Trading Scheme" and amendments to the "Climate Change Response Act 2002." These disclosures provide clear details about the policies and jurisdictions involved.
Rio Tinto also provides detailed information about its lobbying mechanisms and targets. It explicitly mentions submitting feedback to the Australian Government's Department of Climate Change, Energy, the Environment, and Water via the Department's Consultation Hub, as well as engaging with the New Zealand Ministry for the Environment. The company outlines its mechanisms, such as formal submissions, participation in industry associations, and direct engagement with policymakers. Specific examples include its role in the Energy and Climate Change Working Party of the Business Council of Australia, monthly meetings with the Australian Industry Greenhouse Network, and its advocacy within the International Emissions Trading Association. These disclosures demonstrate transparency in both the mechanisms used and the entities targeted.
Furthermore, Rio Tinto has been transparent about the specific outcomes it seeks through its lobbying efforts. The company advocates for detailed and measurable policy goals, such as resetting baselines, implementing facility-specific production-adjusted baselines, and ensuring equitable crediting and trading of Safeguard Mechanism Credits (SMCs). It also supports inter-temporal flexibility, extended Multi-Year Monitoring Periods, and increased government funding for decarbonization projects. Additionally, Rio Tinto has outlined its positions on various aspects of the Safeguard Mechanism reform and other policies, providing detailed reasoning for its advocacy. This level of specificity and alignment with the goals of the Paris Agreement underscores the company's commitment to transparency in its climate lobbying activities.
|
4
|
| Overall Assessment |
Comment |
Score |
| Comprehensive |
Rio Tinto demonstrates a comprehensive governance process for climate lobbying alignment, encompassing both direct and indirect lobbying activities. The company explicitly states that it "reviews the climate advocacy of our industry associations each year, publishes this review on our website and considers it when we decide whether to renew our membership." This annual review includes evaluating "the purpose of the association and the value that the membership may provide to Rio Tinto and its investors," as well as "the adequacy of governance structures within the industry association" and "policy positions and advocacy." Furthermore, Rio Tinto has committed to ensuring that "their policy positions and advocacy are consistent with our own public position and the Paris Agreement." The governance structure is robust, with the Board approving the overall strategy, policy positions, and the Climate Change Report, while also setting emissions targets and monitoring performance. The Chairman is identified as "the Board member responsible for our overall approach to climate change," and the Sustainability Committee oversees key sustainability areas impacted by climate change, including industry association engagement. Additionally, the Chief Executive is tasked with delivering the strategy approved by the Board, integrating climate change considerations into risk management, portfolio reviews, capital investments, and government engagement. Rio Tinto also strengthens accountability by linking executive remuneration to climate performance. The short-term incentive plan (STIP) assigns a performance weighting of 35% to safety, environment, social, and governance matters, with 5% specifically tied to climate change objectives. These objectives include "progress on our Scope 1 and 2 targets" and "progress on our Scope 3 goals," which are explicitly linked to milestones such as steel decarbonization and zero-carbon aluminum. Moreover, Rio Tinto has published detailed disclosures on its lobbying governance processes, including its "annual review of all our industry association memberships" and its commitment to "enhanced transparency and traceability" through initiatives like START for the aluminum industry. The company's approach to climate lobbying governance is further validated by its assurance processes, as evidenced by the KPMG assurance report, which confirms the alignment of Rio Tinto's targets and processes with the goals of the Paris Agreement and the Climate Action 100+ Net Zero Company Benchmark framework. Overall, Rio Tinto's governance process encompasses direct and indirect lobbying activities, with clear monitoring mechanisms, accountability structures, and proactive measures to ensure alignment with climate goals, indicating a high level of transparency and governance.
|
4
|