Sustainable development

sustainable

Children at the village school at La Iraca, near the La Granja copper project in northern Peru, have benefited from equipment and a school lunch programme provided by the project.

Rio Tinto is a long term, capital intensive business with mining assets lasting typically 30 years or more, often in remote locations. This means we need economic and social stability so that we can deliver economic returns to our host governments, local communities and our shareholders. We therefore have committed ourselves to the principles of sustainable development. This facilitates access to new opportunities, improves business performance, and inspires our own people, who fully share this commitment.

Results for 2006 show that nearly all of our performance measures are going in the right direction. Broadly speaking we are on target or better in environmental performance, including reductions in energy, greenhouse gas emissions and freshwater use. In safety, we continued to reduce the lost time injury frequency rate and all injury frequency rate. Unfortunately our 2006 safety record was marred by three fatalities at Rio Tinto managed operations.

We have assessed the current status of sustainable development practice in the Group and have set ourselves the objective of being a sector leader in our contribution. Our revised strategy defines what we need to focus on to get there – for example by developing a culture among employees that mirrors our preoccupation with safety. We are developing key performance indicators, improving communications channels and determining the role of sustainable development in supply chain management, risk management and long term planning. Training and awareness raising tools were introduced across all businesses in 2006.

Through initiatives such as this, we are charting a way forward that will make sustainable development an increasing source of distinction and competitive advantage.