Rio Tinto to Invest $1 Billion to Achieve Net-Zero Emissions by 2050

By Maitane Sardon

Rio Tinto PLC said Wednesday that it will spend $1 billion over the next five years in order to reach its goal of net-zero emissions from its operations by 2050.

The world's second-biggest miner is also targeting a 15% reduction of its overall emissions from 2018 levels by 2030, it said.

"Climate change is a global challenge and will require action across nations, across industries and by society at large", said Rio Tinto Chief Executive Jean-Sebastien Jacques. He said the challenge of the resources industry is to focus on poverty reduction and wealth creation while delivering climate action, which he said will require "complex trade-offs."

To achieve the targets, the miner said it will continue producing materials that can help to reduce overall greenhouse-gas emissions levels--including those that go into batteries--enhance the productivity and efficiency of its operations and explore alternative sources of energy.

Rio Tinto didn't set a target for its Scope 3 emissions--which are emissions from the use of its products--but said it will work with third parties to reduce its carbon footprint across its value chain. The miner doesn't produce coal, one of the most polluting fossil fuels.

The company said it will link the new targets to executive remuneration, adding that the chief executive's short-term incentive plan includes delivery of the group's strategy on climate consistent with the new targets.

Write to Maitane Sardon at [e-mail]

(END) Dow Jones Newswires

February 26, 2020 11:02 ET (16:02 GMT)

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