Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 92

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 92
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, and the use of carbon credits towards our target will be limited to 10% of our 2018 baseline. In 2024, our net emissions include the use of Australian Carbon Credit Units (ACCUs) by our Australian assets to comply with the Safeguard Mechanism in the calendar year 2024 1 . Our targets cover more than 95% of our operational emissions and are calculated using the market-based Scope 2 method. To ensure a focus on real reductions and comparability over time, we adjust our 2018 baseline to exclude emissions reductions achieved by divesting assets and allow increases associated with acquisitions. While there is no universal standard for determining the alignment of targets with the Paris Agreement goals, we concluded that our Scope 1 and 2 target for 2030 was aligned with efforts to limit warming to 1.5°C when we set it in 2021. At that time, KPMG provided limited assurance over the alignment of this target with efforts to limit warming to 1.5°C. Our targets were not set using a sectoral decarbonisation approach as there was no sector-specific methodology then. This remains the case today. We use emissions metrics and other measures to track our progress towards our targets. We monitor and report this progress to the Executive Committee through an internal quarterly reporting process, which includes operational emissions and progress on abatement projects across our decarbonisation programs. KPMG provided limited assurance over our 2024 progress reporting against our Climate Action Plan in addition to its reasonable assurance of our Scope 1 and 2 emissions, and limited assurance of Scope 3 emissions. KPMG’s statement is included at the end of the report.

| The 4 most significant sources ofoperational emissions are:–electricity (purchased and generated)- 37%–carbon anodes in aluminium andreductants in titanium dioxide furnaces- 25%–fossil fuels for heat at our processingplants and alumina refineries - 23%–diesel consumption by our miningequipment and rail fleet - 13%. |

While our asset portfolio has evolved since 2018, as we orient our growth to transition materials, the share of emissions from our different commodities has remained stable. Today, approximately two-thirds of our emissions are generated from our Aluminium business. Our Group-wide consumption of electricity is approximately 4 times that of other global diversified mining majors, due to the high energy intensity of the Aluminium business. However, 78% of the electricity we use is from renewable sources