Rio Tinto to Invest $1 Billion to Achieve Net-Zero Emissions by 2050
27 February 2020 - 03:17AM
Dow Jones News
By Maitane Sardon
Rio Tinto PLC said Wednesday that it will spend $1 billion over
the next five years in order to reach its goal of net-zero
emissions from its operations by 2050.
The world's second-biggest miner is also targeting a 15%
reduction of its overall emissions from 2018 levels by 2030, it
said.
"Climate change is a global challenge and will require action
across nations, across industries and by society at large", said
Rio Tinto Chief Executive Jean-Sebastien Jacques. He said the
challenge of the resources industry is to focus on poverty
reduction and wealth creation while delivering climate action,
which he said will require "complex trade-offs."
To achieve the targets, the miner said it will continue
producing materials that can help to reduce overall greenhouse-gas
emissions levels--including those that go into batteries--enhance
the productivity and efficiency of its operations and explore
alternative sources of energy.
Rio Tinto didn't set a target for its Scope 3 emissions--which
are emissions from the use of its products--but said it will work
with third parties to reduce its carbon footprint across its value
chain. The miner doesn't produce coal, one of the most polluting
fossil fuels.
The company said it will link the new targets to executive
remuneration, adding that the chief executive's short-term
incentive plan includes delivery of the group's strategy on climate
consistent with the new targets.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
February 26, 2020 11:02 ET (16:02 GMT)
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