Management systems provide a rigorous continuous improvement framework to support planning, implementation, checking and review of our environmental programmes. One of the new requirements of our environment standards is that businesses are required to certify their environmental management systems (EMS) and we are targeting full compliance with the standards by the end of June 2005.

By the end of 2003, 80 per cent of our operations had implemented ISO 14001 or an equivalent EMS. 71 per cent of operations carried out internal reviews of their EMS in 2003. We had hoped to have full implementation by the end of 2003. Many of the operations that have not yet implemented an EMS have been acquired or developed by Rio Tinto in the last three years and implementation is in progress. Sixty four per cent of Group operations have already had their EMS certified ahead of the June 2005 deadline.

Key elements of management systems are:

• Policies, which are outlined in The way we work;
• Planning, which includes identifying aspects, impacts and indicators, setting targets and undertaking research and development;
• Implementation and operation, which require adequately trained personnel, procedures for suppliers and contractors and testing of emergency plans;
• Checking and review, through audits and reviews and by measuring and reporting performance; and
• Management review, to assess the effectiveness and adequacy of the management system.