Communication on progress 2010

The following is an overview of our progress against the ten principles of the UN Global Compact in 2010. This information has been compiled from our Annual Report 2010 and our sustainable development section of the website. 


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 2010.

We have actively supported the work of UN Special Representative John Ruggie and are now reviewing all our internal guidance and controls to ensure that they reflect the new UN Guidelines.

In 2010, we established a formal partnership with the Danish Institute of Human Rights and we will be working together on a number of human rights projects throughout 2011.

Read more about our progress on Principle 1
The way we work

Human rights guidance

Rio Tinto Procurement principles
Business integrity guidance


Employment policy
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.

Training on our human rights policy is required every two years for our employees at the General Manager level or above. During 2009 and 2010, 4,114 Rio Tinto managers completed this training.

We also recognise that every indigenous community is unique and we reach specific agreement with each affected community on how it wants to engage with us in the development and performance of our operations.

Read more about our progress on Principle 2
The way we work

Human rights guidance

Business integrity guidance

Employment policy
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. We recognise the right of all employees to choose to belong to a union and seek to bargain collectively.

Read more about our progress on Principle 3
The way we work

Human rights guidance

Rio Tinto Procurement principles
 

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, relevant employee protection legislation and appropriate pre-employment screening.

Read more about our progress on Principle 4

The way we work

Human rights guidance

Rio Tinto Procurement principles
 

 

5 The effective abolition of child labour We do not use or employ forced, bonded or child labour.

During 2010, Rio Tinto Diamonds continued to implement its ethical guidelines for their economic, social and environmental aspects of their activities to reassure their product has not been processed by child labour or in sweat shops.

Read more about our progress on Principle 5
The way we work

Human rights guidance

Rio Tinto Procurement principles
 
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 believe that diversity improves business outcomes. We strive to create an inclusive culture in which difference is recognised and valued.

Currently, we are focused on improving the representation of women and people from nationalities which are under-represented in our workforce. In 2010, women represented 27 per cent of our graduate intake, 14 per cent of our senior management, 20 percent of the chief executive's executive committee and 13 per cent of the Rio Tinto Board. 8 percent of our 2010 graduate intake were nationals from regions where we are developing new business.

We actively favour local employment where local candidates meet job requirements and laws provide. Many of our agreements with communities include local employment targets. For example, we have made a commitment to employ 60% Mongolian workforce during the construction stage of the Rio Tinto Oyu Tolgoi copper project in Mongolia and this will increase to 90% when the operation is in full production. The La Granja Copper Project in Peru has a target to recruit 100% of non-qualified labour, as well as permanent positions requiring basic training. Since January 2010, local employment has reached 73% at the La Granja site.

Our second global employee engagement survey was completed in 2010. Engagement levels are positive and good progress has been made on improving understanding and support of the Group's vision and values.

Read more about our progress on Principle 6
The way we work  

Human rights guidance

Rio Tinto Procurement principles
 

Employment policy
ENVIRONMENT
7 Businesses should support a precautionary approach to environmental challenges We accept the need for greater climate change action and we support a precautionary approach to environmental challenges.

Between 2008 and 2010, our GHG emissions intensity has reduced by 3.7 per cent, the largest improvement was a result of the 2009 divestment of the Ningxia aluminium smelter in China.

We have also set a Group water target to reduce our freshwater use per tonne of product by 6 per cent by 2013 from a 2008 baseline.

Read more about our progress on Principle 7
The way we work Biodiversity strategy

Closure standard

Environment policy

Rio Tinto climate position

Sustainable development policy

Water strategy

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 Respect for the environment is central to Rio Tinto's approach to sustainable development. We constantly look to improve our performance through consistent application of our environmental standards globally.

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 2010, we:

-  worked with other businesses, governments and organisations on water related public policy issues, such as supporting the National Water Initiative in Australia. We also engaged with other civil society organisations that have an objective of sustainable water management, for example, the World Economic Forum, the Alliance for Water Stewardship, and the International Union for Conservation of Nature.

- developed a framework to adapt to the physical impacts of climate change.

-  rehabilitated 24 per cent of our disturbed land (excluding land disturbed for hydroelectricity dams). We have established an internal rehabilitation target and are working with the Royal Botanic Gardens, Kew to drive performance improvements.

-  continued to implement the biodiversity values assessment protocol developed in 2007. Of the 97 operations assessed, 41 operations were associated with either very high (24) or high (17) biodiversity values on the basis of land in proximity to biodiversity rich habitats, species of conservation significance, additional site specific biodiversity values and/or threats, and the external conservation context.

Read more about our progress on Principle 8
The way we work

Biodiversity strategy

Closure standard

Environment policy

Rio Tinto climate position

Sustainable development policy

Water strategy

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 support the development of environmentally friendly technologies.

We have set a range of local energy targets that cover nearly three quarters of the Group's energy use. We are also working to reduce the energy intensity of our new projects through energy efficient asset design, the use of alternate sources of energy and the development of step change technologies for several of our products.

We continued our active engagement with external organisations to advance our energy goals, for example, we collaborated with the Rocky Mountain Institute to reduce energy use  and explore various alternative energy sources; with General Electric we are jointly developing two key strategic technology projects, the Rio Tinto's "Mine of the Future™"   and GE's "Ecomagination".

Read more about our progress on Principle 9
The way we work

Biodiversity strategy

Closure standard

Environment policy

Rio Tinto climate position

Sustainable development policy

Water strategy

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 Being open and transparent is a key part of the way we operate. We are committed, in principle and in practice, to maximum transparency, consistent with good governance and commercial confidentiality.

In 2010, we had commenced a major review of our compliance programme which lead to a release of a revised version of The way we work, introduction of new or revised standards for antibribery diligence, antitrustfraud and compliance as well as release of a new standard for conducting investigation into allegations of serious wrongdoing. We have also refined our guidelines for information gathering in China and relaunched Speak-OUT programme. Internal communication and training campaigns have accompanied each of these changes.

Read more about our progress on Principle 10
The way we work

Rio Tinto Procurement principles


Antibribery due diligence standards

Antitrust standards and guidance notes

Fraud standards and guidance notes