Rio Tinto plc (UK) | To vote Abstain on receipt of 2023 annual report at Rio Tinto plc

Status
Voted
AGM date
Previous AGM date
Proposal number
1
Resolution details
Company ticker
RIO
Submitted by
Sarasin & Partners
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Accounts/reports, auditor appointment or ratification
Filer type
Management
Company sector
Materials
Company HQ country
United Kingdom
Resolved clause
To receive the financial statements, Strategic Report and the reports of the Directors and auditors for the year ended 31 December 2023.
Supporting statement
RESULTS:

99.58% FOR

https://sarasinandpartners.com/stewardship-post/rio-tinto-2024-agm-how-we-are-voting-for-net-zero-accounting/

Financial Statements: Abstain
Like last year, we are abstaining on Rio’s financial statements. Rio’s leadership on climate-related financial disclosures is clear, and we have welcomed the vigilance leading to the $1.2bn impairment of two Australian alumina refineries linked to decarbonisation regulations. Despite this, we continue to have concerns:

1) The lack of disclosures for long-term commodity price assumptions.

2) The low-carbon tax assumptions used for both the reference scenario and 1.5°C scenario versus those suggested by the International Energy Agency.

3) How climate is considered in estimating closure provisions.

4) Lack of visibility on how physical impacts have been considered.

We note that the Board highlights solvency risks that might be associated with a faster roll out of green steel and the “inclusion of closure considerations throughout the lifetime of the assets”.

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