Rio Tinto CEO: Climate Goals Remain Viable for Business Success

Rio Tinto's CEO, Jakob Stausholm, has reiterated the company's commitment to achieving net-zero emissions by 2050, emphasizing that climate goals remain a viable and strategic choice for the mining giant. Stausholm's stance aligns with the company's long-term business strategy, focusing on growth in materials for the low-carbon transition, decarbonising operations, and tackling emissions across value chains.

Rio Tinto's ambitious climate targets include reducing Scope 1 and 2 emissions by 15% by 2025 and by 50% by 2030. The company is investing approximately $1 billion over the next five years to tackle climate change, with a clear roadmap to achieve net-zero emissions by 2050. Stausholm's confidence in the company's strategy is evident in his statement, "We are continuing to execute the strategy we set in 2021, which will deliver long-term value by focusing on growth in materials for the low-carbon transition, decarbonising our operations and tackling emissions across our value chains."

Rio Tinto's commitment to climate advocacy and collaboration with industry and government stakeholders is integral to its decarbonization efforts and business objectives. The company engages with investor and civil society organizations on its approach to climate advocacy, publishing a series of briefing papers on key emission sources, efforts to decarbonize specific assets, and how policy settings can support its Scope 1 and 2 emissions reduction targets.

One example of Rio Tinto's collaboration is the Lighthouse initiative, a joint venture with Alcoa, Apple, and the governments of Canada and Quebec. This initiative aims to develop and commercialize breakthrough technology for aluminum smelting without direct carbon emissions. The ELYSIS™ technology has the potential to reduce greenhouse gas emissions by 7 million tonnes in Canada alone, equivalent to removing 1.8 million cars from the roads.

Rio Tinto's approach to climate advocacy and collaboration with industry and government stakeholders supports its decarbonization efforts and business objectives by enhancing its social license to operate, accessing new markets and opportunities, reducing operational costs, and attracting and retaining talent. By engaging with stakeholders and demonstrating a commitment to sustainability, Rio Tinto can improve its relationships with local communities, governments, and investors.

In conclusion, Rio Tinto's CEO, Jakob Stausholm, has emphasized the company's commitment to achieving net-zero emissions by 2050, aligning with its long-term business strategy. The company's ambitious climate targets, investments in low-carbon transition materials, and collaboration with industry and government stakeholders all contribute to a sustainable and prosperous future for Rio Tinto and the broader economy.