health, safety, environment and communities safety, environment and communities joanne farrell -...
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Health, Safety, Environment and CommunitiesJoanne Farrell - Global Head of Health, Safety, Environment and Communities
Sustainable Development Workshop Sydney 20156 July 2015
Mandena Conservation Zone – QMM Madagascar
©2015, Rio Tinto, All Rights Reserved
Cautionary statement
This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited (“Rio Tinto”). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. In this presentation all figures are US dollars unless stated otherwise.
Forward-looking statements
This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Rio Tinto Group. These statements are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, and Section 21E of the US Securities Exchange Act of 1934. The words “intend”, “aim”, “project”, “anticipate”, “estimate”, “plan”, “believes”, “expects”, “may”, “should”, “will”, “target”, “set to” or similar expressions, commonly identify such forward-looking statements.
Examples of forward-looking statements include those regarding estimated ore reserves, anticipated production or construction dates, costs, outputs and productive lives of assets or similar factors. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors set forth in this presentation.
For example, future ore reserves will be based in part on market prices that may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and political uncertainty.
In light of these risks, uncertainties and assumptions, actual results could be materially different from projected future results expressed or implied by these forward-looking statements which speak only as to the date of this presentation. Except as required by applicable regulations or by law, the Rio Tinto Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. The Group cannot guarantee that its forward-looking statements will not differ materially from actual results.
Disclaimer
Neither this presentation, nor the question and answer session, nor any part thereof, may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by Rio Tinto. By accessing/ attending this presentation, you agree with the foregoing and, upon request, you will promptly return any records or transcripts at the presentation without retaining any copies.
This presentation contains a number of non-IFRS financial measures. Rio Tinto management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Rio Tinto’s annual results press release and/or Annual report.
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Injury frequency ratesPer 200,000 hours worked
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Safety is fundamental to our business
• Whilst we have achieved our lowest ever injury rates -we are yet to achieve a fatality free year
• We are focused on reducing injury rates and eliminating fatalities
• 2 fatalities at managed operations in 2014
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'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
All injury frequency rate
Lost time injury frequency rate
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Leadership
and culture
Critical risks
and controlsSystems
and technology
Learning and
communication
Safety – our strategy
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• Focus on fatality risk controls
• Vehicles and driving risk
reduction
• Learning lessons from fatal
and potential fatal incidents
• Supply chain safety
• Process safety
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Safety – current priorities
Kestrel mine rescue team training
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Process Safety
• Process Safety Management
implementation is progressing
well
Three key initiatives:
1. Raise leader awareness
2. Understand our risks in
depth
3. Implement a new process
safety standard
• Collaboration with industry
leaders including Shell and
DuPont
Rio Tinto Minerals – Boron Operations
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Sustainability: a critical business priority
We aspire to be a company that is admired and respected for
delivering superior value and for being the industry’s trusted
partner.
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The way we work
The way we work symbolises
what we stand for as a
business.
It makes clear how we behave
according to our values of
respect, integrity, teamwork
and accountability.
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Goals and targets for Rio Tinto
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Targets Performance FY 2014
Year on year reduction of injuries and zero fatalities
2 fatalities at managed operations in 2014
9% reduction in our AIFR compared with 2013
Year on year improvement in rate of new cases of occupational illness
6% reduction compared with 2013
All managed operations complete review of health risks through the implementation of critical control management plans by the end of 2015
41% of managed operations reviewed and implemented CCMPs as at the end of 2014
10% reduction in total greenhouse gas emissions intensity between 2008 and 2015
18% total reduction in greenhouse gas emissions intensity compared with 2008 -currently beating our 2015 target
Managed operations with material water risk will have achieved their approved local water performance targets by 2018
66% of managed operations were on track to meet their recently approved local water performance targets
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Assurance
Three layers
of assurance
Avoided event
Standards, Guidance, operating practices
First party audits:
Operations
Second party audits:
Business conformance audits
Third party audits:
Internal / external audit
Risk / Hazard
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• Emergency response
• Ebola response
• Vector borne diseases
• Occupational health
• Mental health
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Health – current priorities
Pilbara wellness programme,
Australia
Ebola Virus
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• Agreements
• Capacity building
• Resettlement
• Heritage
Richards Bay Minerals, South Africa
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Communities – current priorities
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Community engagement – Zulti South project
Health Clinics
Subsistence to Small Scale Farming Relocation and compensation
Business development centre
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Accreditation, membership and reporting
• Rio Tinto is assessed and included in a number of sustainability leadership indices:
− Dow Jones Sustainability Index
− FTSE4Good Index
− ACSI – Comprehensive
• We are a member of leading sustainability associations, including:
− ICMM
− International Emissions Trading Association
• We have helped shape and participate in voluntary supply chain and transparency initiatives:
− Responsible Jewellery Council
− Aluminium Stewardship initiative
− Extractive Industries Transparency Initiative
• We participate in or are accredited under a number of voluntary schemes, including:
− ISO – 14001 and OHSAS 18001
− Global Reporting Initiative
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Rio Tinto supports and is a member of the following organisations
Health, Safety, Environment and CommunitiesKelly Payne, Principal Advisor, Environment
Sustainable Development Workshop Sydney 20153 July 2015
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• Managing natural
resources – water, air,
land
• Climate change
• Closure
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Environment – current priorities
Lac Saint-Jean Shoreline Protection – Saugenay, Canada
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Managing natural resources – water, air, land
Air quality control, Cape Lambert, Australia
• Managing natural
resources we share with
other users
• Increasing expectations on
conservation and use of
resources
• Shared resources require
collaborative responses
with other users
Rehabilitated coastal rainforest at Richards Bay, South Africa
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Water management – shaped by technical and stakeholder considerations
• Access to water
• Water risks :
− Water constrained
settings
− Water surplus
settings
− Sensitive ecological
settings
• Water targets Water clarification and recycling at Hail Creek
Coal, Australia
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Climate change and energy management
• Management of climate risks
and opportunities to business
value
• Reduction in emissions
intensity and absolute
emissions since 2008
• Energy use is the largest
source of our emissions
Weipa solar project, Australia
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Waste management
• Mining generates mineral
and non-mineral waste
• Programmes that improve
our waste management and
its environmental impact
benefit the long term
management of water quality
and land rehabilitationWaste management - Guinea
Waste management – Boron Operation, USA
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Rehabilitating the land we use
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• Rio Tinto Coal Australia’s Hunter
Valley environment team received a
highly commended accolade at the
2014 NSW Minerals Council
Environment and Community
Excellence Awards
• An innovative seeder / aerator has
been developed that:
− Allows soil preparation, compost
incorporation and cover crop
seeding to be done in a single
pass; and
− Helps reduce water runoff and
erosion.
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Rehabilitation – award winning work
Stephen Galilee, CEO NSW Minerals Council
presenting the award to Rio Tinto representatives
The award winning aerator
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Closure – new life into old sites
Anglesey Aluminium
• Commenced production in 1970
• Smelting ceased on 30 September
2009
• Re-melt facility dedicated to the
production of billet operated from November 2009 until April 2013
Lynemouth Smelting
• Commenced production in 1974
• Smelting operations ceased March
2012
• Remelt operations ceased in
November 2012
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Foundations of sustainable value creation
Accountability
Respect
Integrity
Teamwork
• Relentless pursuit of shareholder value
• Disciplined decision-making
• For the environment and communities
• For health, safety and wellbeing
• Transparency in all that we do
• Fairness, honesty and openness
• Long-term partnerships
• Continuous improvement
Safety tasks, Dampier Salt