rio tinto 2010 Annual Report Basic Materials UK/Australia 4 actiOn 2010 Annual report This report is available online Visit www.riotinto.com/annualreport2010 Background: Rio Tinto is a leading international mining group, operating in Australia, North America, Europe, South America, Asia and Africa. Their businesses include open pit and underground mines, mills, refineries and smelters as well as a number of research and service facilities. To achieve the Company aim of delivering superior returns to shareholders over time, Rio Tinto takes a long-term and responsible approach to the Group’s business. The Company operates, and closes, operations safely, responsibly and sustainably. Rio Tinto’s 2010 Annual Report is the second year that the Company has integrated its sustainable development performance highlights into the Report; it then directs readers online for further detail. globalsector leadership Striving for content review: The initial set up and management statements of the Report states that sustainable development is central to the way in which Rio Tinto works and that the commitment is permeated through the entire business. The material issues are also clearly identified and the framework in place to manage these is discussed. Sustainable development and the Company values are central aspects of the Group business model and governance structure. Through a specific introduction by the Chairman, the Company’s ‘the way we work’ defines how the Company conducts itself as a business and how the values and approach to sustainable development are implemented throughout each level of the business. ‘Licence to operate’ is defined as one of the strategic drivers of the business and specific aims, objectives and actions are given as well as clear articulation of how the Company adds value across the cycle. As is common in this industry, safety is a key material issue for Rio Tinto and is clearly highlighted as a KPI. The Report also discusses how non-financial measures are used in directors’ remuneration, and safety is identified as a key measure. The operating review also contains safety and GHG emission reports for each of the product groups. Sustainable development risks are outlined with some discussion of potential impacts as well as detailed explanation of the risk management processes in place. There is a board level sustainability committee which features as part of the discussion and a sustainable development section which provides a summary of the issues of material importance to the Company and the key priorities for the Group. A table showing goals and targets as well as the progress towards these goals is provided with performance data. Where relevant, clear signposts direct the reader back to other areas of the Report; demonstrating the integration between group financial and operational performance, and sustainable development performance. Summary: Rio Tinto’s Annual Report demonstrates that sustainable development issues are central to their business strategy and activities, and there is a strong commitment from management throughout the organisation. This is reflected in how the Company has begun to integrate core information through its management statements, strategy, business model, governance and risk disclosures. 20 The integrated journey
