Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 83

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 83
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 Explore opportunities for innovation and adaptation, such as the development of low-carbon technologies and the transition to renewable energy sources. – Inform strategic planning: Inform our strategic decisions and investments, ensuring our business remains resilient and able to adapt to, and mitigate, the challenges posed by climate change. Our scenario approach is reviewed every year as part of our Group strategy engagement with the Board. We do not undertake climate modelling ourselves, rather we determine the approximate temperature outcomes in 2100 by comparing the emissions pathways to 2050 in each of our scenarios with the Shared Socio-Economic Pathways (SSP) set out in the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report. We also consider the carbon budgets associated with different temperature outcomes which are inevitably uncertain. In 2024, we updated the scenario framework used to assess the resilience of our business under different transition-related scenarios. Our Conviction and Resilience scenarios translate our beliefs of the future into macroeconomic drivers and improve our understanding of policy impacts. These scenarios underpin our fundamental assumptions about long-term trends and we believe they cover a realistic range of future outcomes. They reflect what we anticipate will happen rather than our aspirations. Our core scenarios are crucial in guiding our investment strategies and overall portfolio strategy. Additional scenarios (including our 1.5°C- aligned Aspirational Leadership scenario) are used to further evaluate the positive and negative effects of the energy transition across our portfolio. By considering various future scenarios, we can identify risks and opportunities, adapt to changes, and maintain a resilient portfolio. Our short-term carbon pricing assumptions align with consensus price forecasts in each region, accounting for transitional assistance, such as free allocation, where appropriate. Medium- to long-term carbon prices are determined by national climate targets, and our understanding of the marginal abatement costs and objectives for each scheme. The temperature outcomes of scenarios and sensitivities are derived from complex modelling which continues to evolve and is inherently uncertain. The emissions pathways in Conviction and Resilience limit temperature rises to around 2.1°C, and around 2.5°C by 2100 respectively, roughly aligning with IPCC’s intermediate emissions scenario (SSP2-4.5). We also use the SSP2-4.5 and highest emissions scenario (SSP5-8.5) in our bottom-up asset-level physical risk and resilience assessments. See pages 66 - 69 for more information.

| Annual Report on Form 20-F 2024 | 44 | riotinto.com |