PERTH (miningweekly.com) – Iron-ore major Fortescue Metals this week launched its Sustainability Financing Framework, enabling the future issuance of green and social debt instruments that will support investments in eligible green and social projects.
The miner said this week that the framework seeks to mobilise investors and capital to contribute to the realisation of the United Nations Sustainable Development Goals.
Eligible projects will include investments in renewable energy, green hydrogen and ammonia, energy storage, clean transportation and pollution control, as well as projects that focus on employment opportunities, educational and vocational training and socioeconomic empowerment.
“As societal expectations change, sustainability has never been more important to our investors, stakeholders and employees. As a business, we are focused on meeting and exceeding these expectations,” said Fortescue CEO Elizabeth Gaines.
“The introduction of our Sustainability Financing Framework is a demonstration of our team’s passion and commitment to integrate sustainability into all aspects of our business, ensuring communities continue to benefit from our growth and development as we take a global leadership position in the green energy transition.
“Fortescue Future Industries (FFI) will be the driving force behind delivery of our climate change targets, enabling our diversification from a pure play iron-ore producer to a green renewables and resources company through investment in renewable energy, heavy industry decarbonisation technology and the supply of green hydrogen and ammonia,” Gaines said.
The framework reflects Fortescue’s strong ongoing commitment to environmental, social and governance (ESG) leadership and aims to align the company’s funding policy with its sustainability strategy and climate change objectives, Gaines said.
It builds on Fortescue’s industry-leading announcement to achieve carbon neutrality by 2030 for Scope 1 and 2 emissions, and net-zero Scope 3 emissions by 2040, addressing emissions across the company’s global value chain.
“The launch of the Framework recognises the growth in sustainable, green and social sources of capital. It is designed to further optimise our capital structure and, together with our disciplined approach to capital allocation, will provide for the continued delivery of value to our stakeholders,” Fortescue CFO Ian Wells said.