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Sustainability reporting gets top rating for 9th year

CLIMATE CONCERNS
The Australian Council of Superannuation Investors sees climate change risk as an area of increasing focus

CLIMATE CONCERNS The Australian Council of Superannuation Investors sees climate change risk as an area of increasing focus

5th August 2016

  

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Multinational metals and mining corporation Rio Tinto has again been rated as ‘leading’ in its disclosure of sustainability risks among ratings agency S & P Global Ratings’ ASX200 index of the largest listed, eligible companies by market capitalisation.

This rating makes reference to environmental, social and corporate governance, independent research and advice group Australian Council of Superannuation Investors’ (ACSI’s) 2016 research report, marking the ninth year the group has received this rating.

The leading rating is the highest category possible, Rio Tinto says on its website.

ACSI conducts research on behalf of its 35 members that together manage more than A$1.5-trillion in investments. Its annual report benchmarks public disclosures on material environmental, social and governance (ESG) risks. A leading rating demonstrates to investors that Rio Tinto takes these issues seriously and gives investors valuable information to better inform their investment decisions.

In particular, ACSI has commended Rio Tinto for supporting a special resolution on climate change disclosure which was tabled at the group’s 2016 annual general meeting, held on May 5. The resolution, requisitioned by the ‘Aiming for A’ investor coalition and passed by shareholders, will see the group’s routine annual reporting from 2017 include more information about its climate change policy, emissions management and the resilience of its portfolio to a carbon-constrained future.

ACSI sees climate change risk as an area of increasing focus, as policymakers around the world begin implementing the measures required to meet the United Nations’ twenty-first Conference of the Parties agreement commitments.

Rio Tinto has also retained its status as a constituent of the FTSE4Good Index, which measures the performance of companies demonstrating strong ESG practices.

In its 2015 sustainability report, Rio Tinto states that it is acutely aware that it must understand and manage both the risks to its business and the impact of its operations and products on the local and the global environment.

“Climate change is a challenge to all businesses and the communities we work in, and we will continue to work with our communities to adapt to the impacts of change,” Rio Tinto CEO Sam Walsh states in the 2015 report.

Rio Tinto says it is pleased to support the new global climate agreement reached by governments in Paris in December 2015, which Walsh notes represents an opportunity for growth, with many of the company’s products essential to a low-carbon future.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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