Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 212

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 212
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potential impairment charges and reversals over the course of the year. The key assets discussed included Rio Tinto Kennecott, wherethe revised mine plan was identified as an impairment trigger and, following the impairment test, management concluded that thecarrying value remained supportable, and in Pacific Aluminium where decarbonisation activities resulted in an impairment charge forQueensland alumina refinery. |
| Application of the policyfor items excluded fromunderlying earnings andunderlying EBITDA | The Committee reviewed the Group’s policy for exclusion of certain items from underlying earnings and confirmed the consistentapplication of this policy year on year. The pre-tax items excluded from underlying earnings comprised charges of $0.8 billion andincome of $1.5 billion. A reconciliation of net earnings to underlying earnings is presented in the Alternative Performance Measuressection.                                                                                                                                                      |
| Estimate for provision forclosure, restoration andenvironmental obligations              | The Committee reviewed the significant changes in the estimated provision for closure, restoration and environmental obligations byproduct group and Rio Tinto Closure. The Committee received updates on the closure studies completed in the period and reviewedeconomic assumptions assessed by management, including changes to the discount rate.                                                                                                                                                                                                            |
| Climate change                                                                           | The Committee received an overview of the work that management is undertaking in relation to climate change and the potentialfinancial reporting implications thereof. The Committee reviewed the accounting for long-term renewable power purchase agreementsentered into during the period and the climate change disclosure in the Annual Report, with particular emphasis on the impact toimpairment charges and the related disclosure of sensitivities.                                                                                                     |

| Annual Report on Form 20-F 2024 | 115 | riotinto.com |

Directors’ report | Audit & Risk Committee report

Climate change-related financial reporting The Directors have considered the relevance of the risks of climate change and transition risks associated with achieving the goals of the Paris Agreement when preparing and signing off the Company’s accounts. The narrative reporting on climate-related matters is consistent with the accounting assumptions and judgements made in this report. The Audit & Risk Committee reviews and approves all material accounting estimates and judgements relating to financial reporting, including those where climate issues are relevant. The Group’s approach to climate change is supported by strong governance, processes and capabilities. This year, we updated the scenario framework used to assess the resilience of our business under different transition- related scenarios. Conviction scenario is now our central case. It underlies strategic planning across the Group, is used in commodity price forecasts, valuation models, reserves and resources determination, and in