Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 109

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 109
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 carbon credits retirement methodology . How we source carbon credits We source carbon credits in 3 ways 2 : – We develop new projects – we work with local partners and communities to develop and implement new nature-based solutions projects that address nature loss, while generating carbon credits and delivering benefits for local communities. – We invest in and scale up existing projects – through commercial investments with project partners, we provide capital and support the development and scale-up of nature-based solutions projects in our operating regions. – We source high-integrity carbon credits through spot carbon credit purchases and long-term offtake agreements from nature-based solutions projects that meet our high-integrity criteria. We aim to source the highest quality credits available in the market. All our investments and purchases are subject to our high-integrity criteria, which forms the basis of our due diligence process 3 . To assess projects, we analyse publicly available data, geospatial data, and data and models from project developers. We also hold question and answer sessions with developers, combined with site inspections. This information is assessed against our requirements, and if at any stage the project fails to meet our criteria, we do not proceed with the investment. Our criteria include an assessment of the potential impact of our projects, seeking to ensure that they do not result in negative unintended consequences for people, communities, their heritage or natural ecosystems. The risks and opportunities identified in the assessment must be addressed, managed, tracked and assessed periodically during the project. In 2024, approximately 15% of all projects assessed met our criteria, highlighting our commitment to building a high-integrity and diverse project pipeline for Rio Tinto, including a variety of methodologies across a wide range of ecosystems and land uses. Our high-integrity criteria In 2024, we updated and expanded our high- integrity criteria 4 , using our own learnings and the latest international best practice, guidance and principles, including the Core Carbon Principles by The Integrity Council for the Voluntary Carbon Market and the International Union for Conservation of Nature Global Standard. 1) Additionality: The project and its outcomes are made possible by climate finance and would not have happened otherwise. 2) Quantification: The project can generate real carbon reductions, removals, or both, supported by robust accounting practices. 3) Permanence: The project can deliver permanent carbon reductions, removals, or both, and reversal risks are realistic and well-managed. 4) Governance, Social and Ecological Safeguards: The project takes an integrated approach to protecting or restoring nature