Rio Tinto PLC (LSE:RIO) accelerated its targets to reduce carbon emissions as the Anglo-Australian miner unveiled a longer-term strategy seeking to strengthen its business and improve performance.
It plans to reduce its Scope 1 & 2 carbon emissions by 50% by 2030, more than tripling its previous target, with a 15% cut in emissions by 2025, five years earlier than previously targeted, from its 2018 level of 32.6 million tonnes.
There are three categories of emissions. Scope 1 covers emissions that a company makes directly and Scope 2 are the emissions it makes indirectly such as through the energy supplied on its behalf by another company.
The targets are supported by about US$7.5bn (GBP5.4bn) of direct investments to lower emissions between 2022 and 2030, Rio Tinto said.
“In recognition of the broader carbon footprint of the commodities it produces, Rio Tinto will accelerate its investment in R&D and development of technologies that enable its customers to decarbonise,” it said.
“Working in partnership with governments, suppliers, customers, academia and others Rio Tinto will continue to develop technologies like ELYSIS for carbon-free aluminium and multiple pathways to produce green steel.
“To meet additional demand created by the global drive to net zero emissions, Rio Tinto will prioritise growth capital in commodities vital for this transition with an ambition to double growth capex to about US$3bn a year from 2023,” it said.
Rio Tinto retained its overall capital guidance of US$7.5bln for 2021 and lifted its 2022 guidance to about US$8bn, from about US$7.5bn, and aims to spend between US$9bn and US$10bn per year in 2023 and 2024.
