Rio Tinto’s emissions targets not good enough: climate activists

The mining company has committed to reduce its emissions by 15pc by 2030 in absolute terms and be carbon neutral by 2050.

Nick Evans

less than 2 min read

8:10PMMarch 04, 2020

Rio Tinto’s Yarwun Alumina Refinery in Queensland.

Climate activists have put Rio Tinto on notice that they don’t believe its new carbon emission targets are tough enough, despite the company committing to reduce its emissions by 15 per cent by 2030 in absolute terms and be carbon neutral by 2050.

Rio made the new commitments in its latest climate change goals, released along with its annual financial statements last week. It pledged to spend $1bn over the next five years to reach the goals, including moving its Pilbara iron ore operations to a greater mix of renewable energy.

It would reduce its carbon intensity at its managed and non-managed operations by 30 per cent by 2030, and is targeting a 15 per cent reduction in absolute terms by the same date, the company said.

The mining giant maintained its refusal to set so-called Scope 3 emission targets — those relating to those of its customers — and knew it was likely to face at its annual shareholder meeting over the issue.

But pressure group Market Forces signalled its dissatisfaction with its carbon reduction ambitions, pulling a resolution targeting only Rio’s Scope 3 refusal, and demanding the company accept greater scrutiny of its own carbon emissions.

The new resolution demands Rio set short, medium and long-term targets for its own emissions, and those made indirectly in its own production, and reports regularly on its success in realising those ambitions.

“All targets should be independently verified as aligned with the climate goals of the Paris Agreement,” the new resolution says.

Rio’s refusal to agree to set scope 3 targets for its customers has left it increasingly isolated among its peers, after BHP and Glencore both indicated they would accede to shareholder pressure to do so.

Rio will hold its annual Australian shareholder meeting in Brisbane on May 7.

Rio shares closed up $1.20, or $1.4 per cent, at $90 on Wednesday.

Nick EvansResource Writer

Nick Evans has covered the Australian resources sector since the early days of the mining boom in the late 2000s. He joined The Australian's business team from The West Australian newspaper's Canberra bureau, where he covered the defence industry, foreign affairs and national security for two years. Prior to that Nick was The West's chief mining reporter through the height of the boom and the slowdown that followed.