Continuous improvement in climate disclosures for steel decarbonisation

19 March 2024

In response to engagement with investors and civil society organisations in the lead up to our Annual General Meetings (AGMs), including consideration of a proposal tabled by the Australasian Centre for Corporate Responsibility (ACCR), we have committed to enhance disclosure on plans to reduce scope 3 emissions from processing iron ore.   

In 2023, our Scope 3 emissions were 578Mt CO₂e (equity basis). Most of these emissions (94%) stemmed from customer processing of our products, with iron ore contributing 69% of those emissions (400Mt CO₂e).

As it stands today, our analysis of our customers’ targets and their governments’ commitments to reduce their emissions shows a trajectory for those processing emissions that approaches net zero by around 2060. 

We are committed to partnering with our customers and suppliers to find better ways to help them achieve their targets a decade earlier – reaching net zero by 2050.

To provide more information and transparency for investors and interested stakeholders on our approach to this challenge, we will enhance disclosures prior to the 2025 AGM and thereafter by providing:

• Actual expenditure on steel decarbonisation, and forecast spend, as a range, over a 3-year period
• Capital expenditure on Rio Tinto-led steel decarbonisation projects and financial contributions to steel decarbonisation partnerships (subject to commercial agreements)
• Known milestones and timelines, anticipated expenditure and potential abatement opportunities of announced projects and partnerships (subject to joint venture partner approvals)
• Potential abatement opportunities of announced projects and partnerships aligned to industry abatement curves and net zero decarbonisation scenarios

We will continue our enhanced approach to climate advocacy, which has included the publication of decarbonisation briefing papers, by identifying and advocating for policies, frameworks and regulations that support acceleration of our steel decarbonisation projects and the adjacent energy transition policies required.

We will engage with ACCR on the development of these disclosures, in particular, on industry appropriate frameworks and enabling policy settings.