Image: Overview

Overview/introduction

Introduction

Rio Tinto is a leader in finding, mining and processing the earth’s mineral resources to meet essential needs. The continued success of our business is underpinned by a strong commitment to all aspects of sustainable development with an integrated approach to economic, social and environmental management and effective corporate governance.

We believe a sustainable development approach can raise performance standards generally, including improving financial performance and creating additional shareholder value. Respect for the environment together with healthy and constructive relations with communities provides a solid basis for uninterrupted mining and processing operations. This ensures supply to consumers and benefits society while securing rewarding jobs for employees.

Our economic activity provides society with materials, helps to support community infrastructure, health care and education programmes, and rewards shareholders with a return on their investment. Further, it provides the means to develop innovative approaches to global environmental and social challenges.

For us, sustainable development is a global concept that should be applied locally. Varying circumstances such as location, communities, environment, commodities, markets and scale mean that local solutions must be found.

Our nine policies in The way we work spell out the way we seek to address issues that are relevant to society and its concerns. Taken together, the policies amount to the way we wish to contribute to sustainable development.

We measure our performance against our policies. To make our reporting more relevant, transparent and accountable, we have structured the contents of this Review to reflect the policies in The way we work and the three pillars of sustainable development – social, environment and economic. The change has been made to aid transparency and to assist public evaluation of our performance. It reflects not only our own thinking, but has also been guided by external comment and reader feedback regarding previous Reviews.

This Review report on activities at the Rio Tinto Group level, comprising 30 managed businesses which in total control 57 active mining operations, five smelters/refineries remote from operations, 19 other operations (including rail, port, power generation, plant, mill, loading/packing facilities and land development), seven development projects, five exploration regions and 19 closed operations. Data are also collected from head office and support functions.

Data is reported for calendar years. Unless otherwise stated, data is for operations managed by Rio Tinto covering the year 2005 and are the total for the parameter at each operation even though equity ownership may be less than 100 per cent.

The consulting firm, Environmental Resources Management (ERM), conducted a joint external assurance and data verification exercise. A statement from ERM, as well as our response to last year’s external assurance and verification recommendations, is provided in the assurance section of this Review.

As a member of the International Council on Mining and Metals (ICMM), Rio Tinto was involved in the work of the ICMM and the Global Reporting Initiative (GRI) to develop a Mining and Metals Sector Supplement to the 2002 Sustainability Reporting Guidelines. ICMM member companies have committed themselves to move to reporting in accordance with the guidelines.

This Review provides information on how our reporting activities incorporate the principles outlined by the GRI.

In addition to this Group level Sustainable development review, each of our businesses and the Exploration group produce their own reports for their local communities and other audiences. The local 2005 reports will be available from the end of April 2006.

Feedback on the format or content of our Sustainable development review is useful to us in preparing future Reviews and our social and environment programmes.

Image: Overview