Communication on progress 2008

The following is an overview of our progress against the ten principles of the UN Global Compact in 2008. This information has been compiled from our Annual Report 2008 and our sustainable development section of the website. In addition to the progress we have noted for each principle, 2008 also saw significant developments in health and safety and community engagement.

	Principle	Our progress	Policy, standards and guidance
HUMAN RIGHTS
1	Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence	We explicitly support the United Nations' Universal Declaration of Human Rights, and respect human rights in conducting our operations around the world. Every employee at Rio Tinto must adhere to our human rights policy outlined in our statement of business practice The way we work. There were no reported incidents of breaches of our human rights policy in 2008. In 2008, 1,469 employees completed the human rights module of our online compliance training system which is compulsory at general manager level and above. The total number of employees who have completed this module (in the 27 months to 31 December 2008) is 3,654. Read more about our progress on Principle 1	The way we work Human rights guidance The way we buy Business integrity guidance
2	Make sure that they are not complicit in human rights abuses	We seek to ensure that Rio Tinto's presence fosters sound relationships and avoids conflict wherever we are. Rio Tinto respects and supports the dignity, well being and rights of Group employees, our families and the communities in which we live, as well as others affected by the Group's operations. Where those rights are threatened, we seek to have international standards upheld and to avoid situations that could be interpreted as condoning human rights abuses. We ensure that our equipment and facilities are not misused in violation of them. The Group's procedures for using security personnel are based on human rights principles and include guidelines and restrictions on the use of force. These procedures are reinforced by training and applied to contract security personnel as well as to Group employees. We train our staff to be aware of the rights of our people and the communities in and around where we work. Our employees are required to comply with our commitments as set out in The way we work. In 2008, all our businesses completed a comprehensive Internal Controls Questionnaire (ICQ) to attest their compliance in the area of human rights. In 2008, there were no reported breaches of the human rights policy. We also have a confidential and independent means for employees to report issues and communicate ideas called Speak-OUT. Read more about our progress on Principle 2	The way we work Human rights guidance The way we buy Business integrity guidance
LABOUR STANDARDS
3	Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining	We recognise everyone's right to choose whether or not they wish to join a union. Consistent with local labour laws our worldwide operations have a mixture of union and non union collective employment agreements and individual agreements. Read more about our progress on Principle 3	The way we work Human rights guidance The way we buy Business integrity guidance
4	The elimination of all forms of forced and compulsory labour	We do not use or employ forced, bonded or child labour. Rio Tinto requires all recruitment to be consistent with the human rights policy, equal opportunity requirements and relevant employee protection legislation. Read more about our progress on Principle 4	The way we work Human rights guidance The way we buy Business integrity guidance
5	The effective abolition of child labour	We do not use or employ forced, bonded or child labour. During 2008, Rio Tinto Diamonds continued to implement a Business Excellence Model to ensure their product has not been processed by child labour or in sweat shops. The Business Excellence Model accredits Indian diamond cutting customers for environmental practices and good working conditions. Rio Tinto Diamonds has also actively assisted the diamond cutting communities of India during the period of global recession which has caused hundreds of thousands of job cuts. We have provided substantial funding to a charitable organisation which pays the school fees of children from diamond cutting families (compulsory in India) where parents are unemployed. This ensures that children remain in school and avoids possible negative consequences for children where families are impecunious. Rio Tinto Diamonds is also an active member of the Council for Responsible Jewellery Council which promotes governance, social and environmental standards across the jewellery supply chain from mine to retail. Read more about our progress on Principle 5	The way we work Human rights guidance The way we buy Business integrity guidance
6	Eliminate discrimination in respect of employment and occupation	Rio Tinto requires all recruitment to be consistent with the human rights policy, equal opportunity requirements and relevant employee protection legislation. We have made slow progress on our target to increase the representation of women in senior management to 20 per cent in 2009, achieving 9 per cent representation in 2008. As at January 2009, 20 per cent of our executive committee were women. More than 2,100 people attended regional and global leadership and functional development programmes in 2008 (an increase of 1,100 people from 2007). Rio Tinto is committed to working in partnership with indigenous communities. We are now the largest private sector employer of indigenous people in Australia and work with local communities to support intergenerational priorities for indigenous people in areas impacted by our mining operations. Read more about our progress on Principle 6	The way we work Human rights guidance The way we buy Business integrity guidance
ENVIRONMENT
7	Businesses should support a precautionary approach to environmental challenges	In 2008 100% of our sites received Environmental Management System (EMS) Certification. We did not meet our 2003 to 2008 greenhouse gas (GHG) emissions target, with a 3.8 per cent increase in emissions per tonne of product (excluding former Alcan operations), compared to a four per cent reduction target. Our GHG emissions efficiency decreased by 0.8 per cent in 2008. Performance of the former Rio Tinto operations decreased during 2008, but this was offset by a small improvement from the former Alcan operations. We recorded a reduction of 6.3% in fresh water withdrawal per tonne of product compared to 2003 (excluding former Alcan operations) which fell short of our target of 10% for this period. Ethical Corporation, an independent firm that encourages debate and discussion on responsible business practices, has recognised Rio Tinto's water strategy as providing a model for other businesses. Read more about our progress on Principle 7	The way we work Biodiversity strategy Closure standard Environmental management system standard Air quality control standard Mineral waste management standard Acid rock drainage prediction and control standard Greenhouse gas emission standard Hazardous materials and contamination control standard Land use stewardship standard Noise and vibration control standard Non mineral waste management standard Water use and quality control standard
8	Undertake initiatives to promote greater environmental responsibility	Rio Tinto has developed and implemented a number of practical programmes covering the management of air quality, ecosystems services, biodiversity, climate change, energy, land, water, waste, and closure. These programmes include input from our local communities as well as from experts in these fields. During 2008 we: Implemented the Biodiversity values assessment protocol developed in 2007. Thirty seven operations (of 102 assessed) were associated with either very high (27) or high (10) biodiversity values on the basis of: - land in proximity to biodiversity rich habitats; - species of conservation significance; - additional site specific context; and - the external conservation context. Were invited by the World Economic Forum to join its Project Board for a major water initiative from 2008-2010. Our participation at the forum is a unique opportunity to participate at a leadership level in the water debate, to learn from other leading companies about their successful approaches, and to enable others to recognise the good work we have already undertaken in water management. Progressed a number of projects targeting emissions reductions: Our Health, Safety and Environment function is developing a project entitled Natural Capital. This will investigate the business case and methodologies around designing and implementing ecosystem service offsets and investments in non operational, land based assets. Read more about our progress on Principle 8	The way we work Biodiversity strategy Closure standard Environmental management system standard Air quality control standard Mineral waste management standard Acid rock drainage prediction and control standard Greenhouse gas emission standard Hazardous materials and contamination control standard Land use stewardship standard Noise and vibration control standard Non mineral waste management standard Water use and quality control standard
9	Encourage the development and diffusion of environmentally friendly technologies	Rio Tinto continues to be an active member of the Australian Cooperative Research Centre for Greenhouse Gases (CO2CRC) and sponsor the Otway Basin Pilot Project, Australia's research and demonstration project for storing carbon dioxide in geological formations. We are a founding member of the Global CCS (carbon capture and storage) Institute as well as a member of the FutureGen Alliance in the USA. We also actively participate in international policy and technical organisations seeking to support the development and deployment of low emission technologies. These include the Carbon Sequestration Leadership Forum, the Asia Pacific Partnership, the International Energy Agency Greenhouse Gas Research and Development Programme and the CCS Association. Read more about our progress on Principle 9	The way we work Biodiversity strategy Closure standard Environmental management system standard Air quality control standard Mineral waste management standard Acid rock drainage prediction and control standard Greenhouse gas emission standard Hazardous materials and contamination control standard Land use stewardship standard Noise and vibration control standard Non mineral waste management standard Water use and quality control standard
ANTI CORRUPTION
10	Business should work against corruption in all its forms, including extortion and bribery	We are committed to maximum transparency, consistent with good governance and commercial confidentiality. Since 2005, we have required all our managers and above to undertake training on our business integrity guidance. This addresses areas such as political involvement, bribery, corruption, facilitation payments and gifts and entertainment. Since 1 January 2008, 3803 employees have completed this training module. Following face to face training sessions in 2007 focusing on the United States Foreign Corrupt Practices Act (FCPA) an on line training module on the FCPA has been made available to our businesses. Every year, each of our businesses completes a rigorous and comprehensive Internal Control Questionnaire (ICQ) that checks their compliance with our policies and standards, including those set out in our statement of business practice The way we work. During 2008, a team reviewed The way we work and a revised version will be launched in 2009. It is mandatory for our employees to adhere to the principles and policies set out in the The way we work and to undertake training on it. We have a toll free telephone based program available for employees and others to report concerns. The program is called Speak-OUT. This program is confidential and is operated by a company independent of Rio Tinto. In addition to the reports to senior management in the relevant businesses, monthly reports are received from the operator by the Chief executive and the Global Head of Compliance. We do not directly or indirectly participate in party politics or make payments to political parties or individual politicians. Read more about our progress on Principle 10	The way we work Human rights guidance The way we buy Business integrity guidance