The overall objective of the external assurance process is to enhance the transparency and accountability of Rio Tinto's performance on social and environment issues by providing assurance that the material in the S&E review is relevant, complete and accurate, and that, in particular, Rio Tinto's policies and programmes are reflected in implementation activities at operations. This assurance process for the content of our annual S&E review included seeking comments from external opinion formers on the terms of reference.

Following the positive reception given by all parties concerned to ERM's 2002 programme, ERM was asked to submit a proposal to undertake external assurance of Rio Tinto's review programme for the period 2003 - 2005. As part of this process ERM and Rio Tinto developed a set of guiding criteria to ensure that there would be no conflict of interest between ERM's assurance activities and other work undertaken for Rio Tinto by ERM.

For the period 1997 to 2001, the verification of data was undertaken by Arthur D Little (ADL). In 2002, ICF Consulting acquired the Arthur D. Little Global Environment & Risk Practice - Americas. ICF Consulting undertook the data verification in 2002. Because of their long and continuing association with Rio Tinto, it was decided that a new external party should undertake the data verification exercise for 2003.

ERM was appointed to undertake the data verification exercise as part of the overall assurance programme. The scope of work required review of the processes used to generate the data and the interpretations of them that are presented in the S&E review, with the objective of answering the following questions:

• What confidence can be placed in the quality of the data submitted by the operations?
• Have the data have been collected, consolidated and reported in the S&E review accurately?
• Do the data support the claims made in the S&E review? and
• Are the data reported by Rio Tinto in the S&E review relevant?

ERM's fees for assurance and verification in 2003 were £215,200.

ERM's approach to reviewing the quality of reported data will provide Rio Tinto with a valuable and robust data verification programme that builds on the successful data verification reviews conducted by ICF during the last six years.

What were their methodologies and conclusions?

We believe that it is important to learn from our assurance and verification activities. The recommendations made by ERM and ICF in the 2002 Social and environment review have been assessed, and actions taken during 2003 to address them. What action has been taken on the 2002 recommendations?