18th Mar 2019 10:46
LONDON (Alliance News) - Rio Tinto PLC on Friday has called for shareholders to reject two special resolutions, one directly addressing climate change, that will be put to vote at its upcoming annual general meeting.
Resolution 18 would amend the mining major's constitution to allow non-binding resolutions and resolution 19 would require that, from 2020, the company would have to report on its transition plans in keeping with the Paris Agreement goal of limiting global warming to 1.5 degrees Celsius.
This would include Rio Tinto reducing its Scope 1, 2, and 3 greenhouse gas emissions and reporting on how is capital expenditure aligns with this goal, with executive pay as an incentive.
The Anglo-Australian mining major said the resolutions were put forward by shareholders representing approximately 0.02% of shares in Rio Tinto Ltd.
Rio Tinto Chair Simon Thompson said of resolution 19: "The resolution calls for Rio Tinto to set targets for Scope 3 emissions. Scope 3 emissions are primarily the emissions of our customers, mainly steel makers in China, over which we have very limited control. Options exist for the reduction of these emissions, but the speed, economic viability and ultimate deployment of these technologies lie within the control of our customers, not Rio Tinto."
Thompson also added: "The analysis that currently underpins our work to set the new targets is predicated upon a less than 2 [degrees Celsius] scenario, reflecting the International Energy Agency's Sustainable Development scenario but not the more recent 1.5 [degrees Celsius] scenario outlined by the Intergovernmental Panel on Climate Change in their 2018 Special Report."
The company opposes resolution 18, allowing non-binding resolutions, because it believes these will "create uncertainty" and present difficulties "including in relation to the authority and accountability of the directors".
"Rio Tinto is committed to being be part of the solution to address the challenge of climate change and is aiming for a substantial decarbonisation of its business by 2050 as part of the transition to a low carbon future. Our new targets from 2020 will reflect this ambition," Rio Tinto said.
Shares in Rio Tinto were up 2.2% at 4,241.00 pence on Monday.
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