Solar at Diavik

Climate reporting

2025 Climate Action Plan

(this is now integrated within our 2024 annual report)

2025 Climate Action Plan
PDF
12.22 MB
Scope 1, 2 and 3 Emissions Calculation and Climate Methodology 2024
PDF
2.03 MB
Industry Association Disclosure 2024
PDF
1.65 MB

The materials we produce and the way we provide them to society matter. We have ambitious emissions reduction targets and are now delivering against those. 

Since we set our targets, we have delivered 5Mt CO2e in operational emissions abatement, and our gross emissions are now 14% below 2018 levels, primarily from renewable electricity contracts. In 2024 we committed to abatement projects, totalling 3.6Mt CO2e which are expected to contribute to our target to reduce net emissions by 50% by 2030.

30.7Mt CO2e (adjusted equity)

Gross Scope 1 and 2 emissions
(2023: 33.9Mt CO2e)

574.6Mt CO2e

Scope 3 emissions
(2023: 572.5Mt CO2e)

78%

Percentage electricity from renewable sources
(2023: 71%)

$589m

Total decarbonisation spend
(2023: $425m)

How we report on our progress 

Our first Climate Action Plan (CAP) was approved by investors at our 2022 Annual General Meetings. At that time, we included a commitment to report on our progress annually and update the CAP every 3 years. The updated 2025 CAP retains our commitments to decarbonise our assets and work with customers and suppliers to reduce our value chain emissions. It also shows how the energy transition is at the heart of our strategy.

Our strategy and approach

Hydropower

Climate change

We’re working towards net zero emissions by 2050
Solar panels

Climate position and advocacy

Our position on climate change
Dry land

Physical climate risk and resilience

From tropical cyclones in Australia and Madagascar to wildfires across Canada, the impacts of extreme weather on our operations are real

Our Climate Action Plan at a glance

1. Grow production of materials essential for the energy transition

Copper, lithium, aluminium and high-quality iron ore are fundamental to renewable energy infrastructure, electric vehicles, and energy storage solutions. This global shift to a low-carbon economy is driving unprecedented demand for our commodities. Our ambition is to grow total production by ~3% per year on a copper equivalent basis1.

Grow production of materials essential for the energy transition

  • Highlights across our portfolio

    Iron ore

    • High-grade iron ore from Iron Ore Company of Canada (IOC) and Simandou in Guinea is essential for the production of low-carbon steel
    • Investment in the development of our Pilbara operations and the technology needed to produce low-carbon steel

    Aluminium

    • Acquisition of a 50% stake in Matalco in 2023 supports the growing demand for low-carbon and recycled products
    • A $1.1 billion investment in expanding the AP Technology™ AP60 aluminium smelter in Quebec
    • Investment in ELYSISTM technology development and trials

    Minerals

    • The Rincon lithium project in Argentina achieved first production
    • Acquisition of the Burra™ Scandium Project in Australia
    • Our recent agreement to acquire Arcadium Lithium plc will, subject to acquisition completion, enable us to provide many of the key materials that go into electric vehicle batteries

    Copper

    • Having increased our equity in 2022, the expansion of the Oyu Tolgoi underground mine in Mongolia is a cornerstone of our copper strategy
    • Expanding underground mining at Kennecott, targeting an additional 250,000 tonnes of copper production over the next decade2
    • Joint venture with First Quantum Minerals on the La Granja project in Peru, one of the world’s largest undeveloped copper deposits

    1 Ambition for compound annual growth rate (CAGR) for copper equivalent production from 2024 to 2033, including inorganic lithium growth.
    2 The production target of around 250,000 tonnes of additional mined copper over the next 10 years (2023 to 2033) at Kennecott was previously reported in a release to the Australian Securities Exchange (ASX) dated 20 June 2023 titled “Rio Tinto invests to strengthen copper supply in US”. Rio Tinto confirms that all material assumptions underpinning that production target continue to apply and have not materially changed.

2. Reduce emissions from our own operations

We aim to reduce our net Scope 1 and 2 emissions by 50% by 2030 (relative to 2018 levels), and to reach net zero by 2050.

We follow the principles of the mitigation hierarchy, prioritising abatement of emissions from electricity generation and use, process emissions and direct fuel consumption. In line with the IFRS standard on climate-related disclosures (S2), we report gross and net emissions separately. 

Our target applies to our net operational emissions on an equity share basis. Our gross Scope 1 and 2 emissions reductions are expected to be at least 40% by 2030, and the use of carbon credits towards our target will be limited to 10% of our 2018 baseline. 

In 2024, our net emissions include the use of Australian Carbon Credit Units (ACCUs) by our Australian assets to comply with the Safeguard Mechanism in the calendar year 20241. 

Our targets cover more than 95% of our operational emissions and are calculated using the market-based Scope 2 method. To ensure a focus on real reductions and comparability over time, we adjust our 2018 baseline to exclude emissions reductions achieved by divesting assets and allow increases associated with acquisitions.

Reduce emissions from our own operations

  • Progress in 2024 and action in 2025

    Progress in 2024  Action in 2025 
    Renewable electricity  

    Repowering Pacific Aluminium Operations 

    • Announced 2 renewable PPAs for 2.2GW to supply our Boyne aluminium smelter in Gladstone and secured in-principle Queensland government support.
    • Further explored commercial sourcing strategy at Tomago to secure an energy solution for the energy supply contract which expires on 31 December 2028.
    • Signed long-term PPAs to supply our New Zealand Aluminium Smelters with electricity generators for a total of 572MW of hydro electricity.
    • Secure remaining renewable and firming portfolio for Boyne smelter, pending government support. 
    • Continue to engage with governments and energy market participants on the future energy supply for Tomago.
    • Develop a renewable energy strategy for Gladstone alumina refineries (previously 2024).

    Other renewable electricity developments

    • Commenced construction of solar PV at Gove (10MW) and Amrun mine (12MW). 
    • Executed wind Virtual Power Purchase Agreement (VPPA) (78.5MW) at Monte Cristo in the US to abate our regional Scope 2 emissions. 
    • Completed construction and commenced operating Diavik diamond mine solar plant (3MW). 
    • Commissioned a 5MW solar plant and commenced construction of Kennecott solar Phase 2 (25MW). 
    • Signed a 230MW wind PPA at Overberg for Richards Bay Minerals (RBM). 
    • Signed a 140MW wind PPA at Khangela for RBM. 
    • Construction was progressed on the 148MW solar PV project at Bolobedu for RBM (PPA signed in 2022). 
    • Commenced a pilot program for rooftop solar installation at our operations in the Pilbara. 
    • Executed new contracts for EACs across global assets while developing new PPAs and Build Own Operate (BOO) solutions.
    • Complete commissioning of solar PV at Amrun and Gove. 
    • Complete construction of Kennecott solar Phase 2 (25MW). 
    • Complete construction of the 16MW wind facility at QIT Madagascar Minerals. 
    • Commence construction of the 230MW wind PPA at Overberg for RBM. 
    • Finalise an agreement to secure energy from a 75MW solar farm being developed by Yindjibarndi Energy Corporation.
    • Progress development of Karratha Solar Farm (80MW) with Ngarluma Aboriginal Corporation. 
    • Execute additional renewable energy PPAs, while construction continues on the 78.5MW US wind VPPA.
     Diesel transition  
    • Transitioned 100% of Kennecott heavy mining equipment to renewable diesel (95% of operations transitioned). 
    • Collaborated with BHP on battery-electric haul trucks pilot program, including receipt of trucks for local options and assembly in Western Australia. 
    • Acquired land to pilot production of renewable diesel in Australia, using Pongamia trees. 
    • Developed a partnership with China’s State Power Investment Corporation (SPIC) to demonstrate a fleet of battery swap electric haul trucks and associated infrastructure at Oyu Tolgoi.
    • Progress Caterpillar battery-electric haul truck trial at BHP Jimblebar mine site in the Pilbara. 
    • Deploy fleet of battery swap electric trucks at Oyu Tolgoi. 
    • Progress planting of Pongamia saplings in Queensland, Australia. 
     Processing minerals and metals

    Aluminium anodes

    • Progressed start-up of the industrial scale 450kA ELYSIS™ cells at Alma. 
    • Announced the project at Arvida for 10 ELYSIS™ cells operating at 100kA, a $285 million investment in partnership with Investissement Québec. Significantly progressed on site preparation and ordering long lead items for this project.
    • Commission an industrial scale 450kA cell at Alma (previously 2024). 
    • Perform further tests of the 100kA cell at Arvida. Finalise technical package, site preparation and building construction at Arvida for the additional 10 cells.
     

    Alumina processing

    • Completed double digestion pre-feasibility study at QAL. 
    • Completed 95% of detailed design and engineering for the Yarwun Alumina refinery hydrogen calcination project, including awarding major construction packages and commencing electrolyser site works. 
    • Progressed feasibility study for electric boiler project at Vaudreuil after delays due to power requirements and scope changes. 
    • Progressed electric steam and thermal energy storage (TES) studies for refineries. 
    • Executed bio-pellet trials at Yarwun and progressed energy crop growing trials.
    		  
    • Start QAL double digestion feasibility study (previously 2024). 
    • Begin hydrogen calcination trials at Yarwun. 
    • Final approval of, and commence work on, electric boiler project in Vaudreuil. 
    • Commence small-scale electric calcination pilot in Vaudreuil.
     

    Minerals processing

    • Validated phase 1 of BlueSmeltingTM technology for ilmenite ore and safely transitioned from smelter gas to hydrogen. 
    • Established new joint venture ÉvolysTM to manufacture biocarbon products. 
    • Completed long-term 5% replacement trials to qualify biocarbon as a raw material at RBM and RTIT Quebec Operations.
    • Completed an industrial trial of replacing coke with biocarbon (25% replacement) for pelletisation.
    		  
    • Develop bioenergy supply sources (biofuel and biocarbon) to support the industrial ramp-up of the new joint venture ÉvolysTM.
    • Complete phase 2 of the BlueSmeltingTM technology validation. 
    • Complete the installation and commissioning of an electric boiler at IOC.
     Nature-based solutions
    • Feasibility studies completed in Guinea, with South Africa study delayed by elections and now due in mid-2025. 
    • Dual pilot-feasibility approach continued in Madagascar for the protection and restoration of the Tsitongambarika Forest including clean cooking, reforestation and conservation activities, with learnings to be applied to other regions in 2025. 
    • Voluntary agreements finalised, including an investment in the Makira Natural Park REDD+ Project in Northern Madagascar, through a partnership with the Wildlife Conservation Society and Everland. 
    • Finalised ACCU offtake agreements for high-quality human-induced regeneration and with savanna fire management project developers. Invested in the Silva Carbon Origination Fund securing access to large-scale, high-integrity environmental planting ACCUs. 
    • Published details on our project development and carbon credit sourcing strategy, including our due diligence process and planned volumes.
    • Assess South Africa feasibility study and move into pilot phase if feasible. 
    • Deliver first cookstoves for Guinea and Madagascar clean cooking pilots.
    • Begin pilot programs for reforestation in Guinea and Madagascar.
    • Initiate pilot-feasibility study for a sustainable agro-forestry project in Guinea. 
    • Secure offtake agreement for Argentina native grasslands management carbon project. 
    • Expand our environmental planting ACCU pipeline in Australia. 

3. Partner to decarbonise our value chains 

In 2024, our Scope 3 emissions were 574.6Mt CO2e (equity basis), approximately 19 times higher than our Scope 1 and 2 emissions. This is compared to a restated 2023 number of 572.5 Mt CO2e (equity basis).

The majority of these emissions (94%) stem from customers processing our products, particularly iron ore (69%) and bauxite and alumina (23%).

Specifically, emissions related to iron ore processing were 395.9Mt CO2e in 2024, compared to 399.9Mt CO2e in 2023. Emissions related to bauxite and alumina processing increased from 127.1Mt CO2e (restated) in 2023 to 134.0Mt CO2e in 2024, mostly as a result of increased bauxite sales.

Many of our customers have set public targets for their Scope 1 and 2 emissions (our Scope 3). About 55%1 of our steel-producing customers by direct iron ore sales volume have set public targets to reach net zero or carbon neutrality by 2050. Meanwhile, nearly 33%1 of our bauxite sales are to customers with net zero emissions targets, though only 11% of customers are aiming for net zero by 2050. 

Helping our customers and suppliers to achieve their targets earlier and reach net zero by 2050

  • Progress in 2024 and Action in 2025

    Progress in 2024  Action in 2025 
    Steel value chain   

    Existing pathways 

    • Commissioned lump drying plant using innovative microwave technology in Meishan, China with Baowu. 
    • Commissioned low-carbon sintering demonstration facility with Shougang. The facility has proven a ~10% reduction in CO2 emissions per tonne of sinter and is replicable across the industry. 
    • Commissioned small-scale carbon capture and utilisation (CCU) pilot facility (100m3/hr) with Shougang.
    • Complete construction of large-scale (3,000 m3/hr) CCU facility with Shougang. 
    • Implement learnings on blast furnace burden optimisation and slag recycling to additional steel mills.
     

    Emerging pathways 

    • Entered into an agreement with GravitHy, an early-stage industrial company in France that will produce ultra-low carbon Hot Briquetted Iron (HBI). We will supply high-grade pellets from IOC and manage the sales and marketing of GravitHy’s HBI production.
    		  
    • Continue to support early development of low-carbon DRI projects that utilise high-grade iron ore, with a focus on locations that are proximate to our operations. 
     

    Future pathways

    • Approved spend of US$143 million to build a 1 tonne per hour research and development facility for BioIron™ in Western Australia. Secured location and progressed detailed design and engineering for the pilot plant. 
    • Entered into the NeoSmelt collaboration with BlueScope, Australia’s largest steel maker, and BHP to jointly develop Australia’s first Electric Smelter Furnace (ESF) pilot plant. Commenced pre-feasibility study and confirmed the pilot plant’s location in the Kwinana Industrial Area, Western Australia. 
    • Began lab trials for pelletisation of Pilbara ores with Baowu.
    • Completed conceptual studies on building a beneficiation plant in the Pilbara.
    		  
    • Progress construction of the BioIron™ pilot plant in Western Australia. 
    • Complete pre-feasibility study and commence feasibility study for the NeoSmelt ESF pilot plant, subject to stage gate approval. 
    • Undertake ESF trials with Baowu, utilising DRI produced from pellets containing Pilbara ores. 
    • Begin next stage of studies and test work for a beneficiation pilot plant in the Pilbara.
     Aluminium value chain  
    • Digestion improvement technology successfully implemented at one of our bauxite customers’ operations. 
    • Completed organics technologies overview and opportunity assessment. 
    • Customer visits completed in Q4 2024 to present the portfolio of control options. 
    • Supported Pacific Aluminium Operations in looking at options to reduce bauxite moisture, and provided data and input from a customer perspective. A commercially available technology has been identified for a vacuum stockpile drainage system. A pre-feasibility study has been approved for implementation for Amrun’s bauxite.
    • Work with a further customer on implementing digestion improvement technology in 2025. 
    • Work with select customers to improve organics management capabilities. 
    • Continue to support Pacific Aluminium Operations in progressing technical options to reduce moisture content in our bauxite.
      Shipping  
    • Progressed to a 39% reduction in emissions intensity (from 37% end 2023; relative to IMO’s intensity baseline year 2008). 
    • Completed energy saving device installation program across fleet of 17 owned vessels. Introduced 4 more LNG dual-fuelled vessels into the fleet, bringing our current total to 9. 
    • In conjunction with the Western Australia–East Asia iron ore green corridor, engaged with industry on a process safety deep dive on ammonia used as fuel and supported a ship-to-ship ammonia transfer trial in Western Australia. 
    • Improved emission transparency using actual voyage data for over 95% of our cargo shipments for which we manage shipping, achieving our target.
    • Accelerate energy efficiency drive, including through incentivising value-accretive energy saving device installations on chartered vessels. 
    • Partner with stakeholders to progress economic frameworks for the development of the Western Australia-East Asia iron ore green corridor. 
    • Mature ammonia health, safety, environment and communities (HSEC) risk and control framework, ahead of potential ammonia dual-fuel vessel charter.
     Procurement  
    • Engaged with 50 of our highest-emitting suppliers on emissions reduction, focused on driving supplier accountability for setting and delivering against their decarbonisation targets. 
    • Implemented decarbonisation as evaluation criteria for new sourcing in high-emitting categories. 
    • Sustain engagements with 50 high-emitting suppliers. 
    • Continue to embed and sustain decarbonisation criteria in standard processes to evaluate new sourcing in high emissions categories.

Past reports

Climate Change Report 2023
Climate Change Report 2023
PDF
3.44 MB
Scope 1, 2 and 3 Emissions Calculation Methodology - Addendum 2023
PDF
404 KB
Industry Association Disclosure 2023
PDF
1.72 MB
Climate Change Report 2022
Climate Change Report 2022
PDF
2.27 MB
Scope 1, 2 & 3 Emissions Calculations Methodology 2022
PDF
1.32 MB
Industry Association Disclosure 2022
PDF
407 KB
Climate Change Report 2021
Climate Change Report 2021
PDF
2.31 MB
Scope 1, 2 & 3 Emissions Calculations Methodology 2021
PDF
3.87 MB
Industry Association Disclosure 2021
PDF
1.94 MB
Climate Change Report 2020
Climate Change Report 2020
PDF
3.48 MB
Scope 1, 2 & 3 Emissions Calculations Methodology 2020
PDF
1.52 MB
Industry Association Disclosure 2020
PDF
107 KB
Climate Change Report 2019
Climate Change Report 2019
PDF
7.05 MB
Industry Associations & Climate Change 2019
PDF
220 KB
Climate Change Report 2018
PDF
7.18 MB

Our 2024 reports

Employee at Oyu Tolgoi

Reports

Our reporting reflects our commitment to sustainability and transparency
Rincon in Argentina

Annual report

Our drive for innovation and continuous improvement is at the core of our purpose
Nursery at Richards Bay Minerals

Sustainability reporting

As stewards of the lands where we operate, we have a responsibility to safely and sustainably access the world’s essential materials