The resolution, which won the support of 95% of shareholders and the Rio Tinto board, requires the British-Australian metals and mining company to prepare a report, outlining its greenhouse gas reduction goals to 2020 and low carbon technologies the company is investing in.
While Hermes welcomed Rio Tinto’s first report, it said “significantly greater information and disclosure” was required to meet future investor expectations.
“The company’s refreshed public policy on climate change confirms it is seeking a substantial decarbonisation of the business by 2050,” said Duguid.
“We would now like to see details of the company’s long-term strategy to decarbonise its mining and smelting operations, consistent with the Paris Agreement goal to limit climate change to 2°C or even below.
“This should include the level of investment in low carbon research and development and for stretching greenhouse gas emissions targets to be included in the executive remuneration scorecard.”
