Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 180

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 180
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 proactive approach to responding to the uncertainty. This includes committing to decarbonisation targets and associated capital expenditure, optimising our portfolio for future demand, and developing deeper understanding of exposure across the business using the latest generation climate analytics. Please refer to material risks 2, 4 and 8 on page 91 an d the Climate Action Plan on page 41 for further details. Generative Artificial Intelligence (AI) and advancing technologies have the potential to unlock transformative opportunities for businesses through enhancing efficiency, and data-driven insights to support decision making, driving pace and breadth of innovation. It is also in its infancy, which carries significant unknown risks. Our focus is on robust monitoring and internal upskilling to understand this evolution, supported by strong governance processes to support its use. Longer-term viability statement Context Our business model underpins our ability to deliver on our strategy. This is outlined on page 8 . Our business planning processes include modelling a series of macroeconomic scenarios and using various assumptions that consider internal and external factors. As part of our risk management framework, we closely track, monitor and mitigate material risks to our business plan and model. Viability assessment process and key assumptions The assumptions underlying our business plan and macroeconomic forecast have the greatest level of certainty for the first 3 years. Our longer-term viability assessment examines the first 5 years (2025-29) of the business plan. This allows for a detailed analysis of the potential impacts of risks materialising in the first 3 years, and enables us to further stress test the business plan for risks materialising towards the end of the time period, although with less certainty. The risk factors section outlines risks that could materially affect our performance, prospects or reputation. For the viability assessment, we have considered material risks that could severely impact the Group’s liquidity and solvency in addition to non- financial impacts.

| Assessment of viabilityThe risks and key assumptionsconsidered in our longer-term viabilityassessment are as follows:Risk A: Remaining competitivethrough economic cycles or shocksScenario assumptions: An economic shockarising in 2025, caused by escalatinggeopolitical tensions, a trade war or militaryactions, leading to a sustained loss ofconfidence in financial markets and supplychain disruptions. It assumes commodityprices experience large negative pricingshocks in 2025 through 2029 and a short-term supply disruption for key commodities.The scenario relates to material risk 11(Remaining competitive through economiccycles or shocks by maintaining strongfinancial and operating performanceunderpinned by a healthy inventory of high