Climate change and energy

Our climate change position and programmes

Rio Tinto believes that emissions of greenhouse gases (GHGs) from human activities are contributing to climate change.  Avoiding human caused changes to the climate is an important international goal.  In order to achieve this goal the world needs reductions in emissions of greenhouse gases.

Our climate change programme is based on preserving and maximising value and reputation through addressing risks and capturing opportunities.  Since 2003, our programme has been structured around 3 core themes which are set out in more detail in our climate change position:

• Building support for government action - this means engaging with governments and stakeholders in all the regions in which we operate to develop effective, efficient and equitable climate policy
• Developing low emission pathways for our products - we want our products to be part of the solution, not part of the problem
• Taking a proactive stance at our operations to reduce greenhouse gas emissions - through the setting of short term targets and longer term initiatives.  We are also preparing to respond to the potentially severe effects of climate change by implementing programmes focussed on adaptation

Our climate change position is underpinned by the Climate Change Action Plan.  This three year plan, adopted in 2006, sets out the overall strategy for ensuring that Rio Tinto's response to climate change is appropriate and coordinated, and that actions are effective in addressing the challenges presented.

As part of the plan, all business units are required to develop and implement their own three year climate change work programmes and report progress on a six-monthly basis.  At the beginning of 2007 all businesses had prepared their programmes which run until 2009.  We review these programmes centrally, provide feedback to individual businesses and share new and innovative features throughout the Group. 

As a company that produces energy (in the form of coal and uranium) and uses large quantities of energy (in mining, refining and smelting), Rio Tinto seeks to combat climate change by finding new and better ways of using and producing energy.  We invest in several research and development programmes, on our own and in partnership with other companies and organisations to find technological solutions to climate change.

In 2007 Rio Tinto joined with oil major BP to take an exciting step towards this new energy future. The Hydrogen Energy joint venture will develop technologies and businesses that reduce carbon emissions and accelerate the deployment of hydrogen fuelled electric power plants. These "decarbonised" energy projects are based on the conversion of fossil fuel feedstocks such as coal, petroleum coke (a refinery by-product) or natural gas, to hydrogen and carbon dioxide gases, with 90 percent of the carbon dioxide being captured and sent for permanent storage in geological formations deep beneath the Earth's surface. By using hydrogen as a fuel, virtually no greenhouse gas emissions are produced and the main by-product is water. Each of the component technologies is already proven but they need to be combined and integrated to a very large scale.

How we manage greenhouse gases

We have been reporting our GHG emissions publicly since 1996. In addition to our annual external verification of health, safety and environmental data, we have participated in the Australian Greenhouse Challenge verification programme. External consultants have, on two occasions, reviewed the methodology we use against the standards of the IPCC and the World Business Council for Sustainable Development.

Our greenhouse gas emissions are largely dependent on how well we manage our energy use. To that end, we have instituted a comprehensive programme of energy audits at our operations to identify a range of energy saving opportunities, and several of these have already been successfully implemented.

We are also a leading international coal producer, and so we are helping to develop technology for carbon capture and storage worldwide.

In addition, we are a significant supplier of uranium oxide for the world's nuclear industry, which is a low emitter of greenhouse gases. Along with developing processes for product stewardship, we have formed - with other uranium producers - a group to look at the implications of the entire fuel cycle.

Rio Tinto is now in its second phase of targets to improve energy use and reduce emissions per tonne of product.  In 2004, we set five year targets to reduce our greenhouse gas emissions by four per cent per tonne of product by 2008 (using a 2003 baseline) and to reduce energy use per tonne of product by five per cent per tonne of product over the same period.  These targets are proving challenging, especially in an environment where mines become deeper over time and trucks need to cart materials over longer distances. To address these challenges advanced mining methods are being applied and improvements made in the efficiency of heavy mining equipment through, for example, use of fuel additives, larger haul trucks, and alternative approaches like conveyor belts for moving material.

Rio Tinto measures and reports its GHG emissions consistent with the WRI/WBCSD Greenhouse Gas Protocol. Our inventory process and reporting methodology have been independently audited and approved. We continue to publicly report our actions and results: 

• We have participated in the Carbon Disclosure Project since its inception.  In 2007 we were one of only four companies worldwide (one of only two carbon intensive companies) to achieve a perfect score in the Climate Disclosure Leadership Index. We were ranked number one in the Mining and Metals sector.
• Alcan was included in the FT500 Climate Disclosure Leadership Index and the Canada 200 Climate Disclosure Leadership Index. Alcan was ranked number one for disclosure in the high carbon impact sector in the Canada 200 report.
• After over a decade of involvement Rio Tinto remains a committed supporter of the Australian Greenhouse Challenge Plus programme.