Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 82

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 82
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 mined copper over the next 10 years (2023 to 2033) at Kennecott was previously reported in a release to the Australian Securities Exchange (ASX) dated 20 June 2023 titled “Rio Tinto invests to strengthen copper supply in US”. Rio Tinto confirms that all material assumptions underpinning that production target continue to apply and have not materially changed. Using scenarios to identify climate risks and portfolio opportunities Although climate change presents clear growth opportunities for our commodities, it also presents both physical and transition risks to our portfolio if we fail to align our business with a net zero future. The transition to a low-carbon economy impacts the commodities we produce and how they are processed in our value chains – particularly for carbon-intensive steel and aluminium production. Carbon pricing regulation is currently applied to our operations and our customers. Increasing climate policy ambition can therefore affect our operational costs, markets and technology development. Physical risks such as extreme weather events, rising sea levels and temperature fluctuations can disrupt our supply chains, damage infrastructure and impact the availability and cost of raw materials. We use scenarios to identify and assess risks and opportunities, including climate, that may affect our business in the medium and long term. To assess transition risks, we use market analysis for our short-term outlook, and our Conviction and Resilience scenarios for our medium- and long-term assessment. For physical risks, we use an intermediate and high emissions scenario. For planning purposes, we define short-term as up to 2 years, medium-term as 2 to 10 years and long- term as beyond 10 years. Our short-term timeframe aligns with our annual planning process. The medium-term timeframe aligns to extended planning horizons for our growth projects and emissions abatement projects. Our long-term timeframe considers the full lifespan of our mining assets and infrastructure, and the continued impact climate risks and opportunities are expected to have on the business. Inevitably there is increasing uncertainty in the assumptions and projections further into the future, so there is inherent uncertainty in the assessment of risks and opportunities presented below. Short-term assessment: While scenarios provide a valuable long-term perspective, our short-term outlook is guided by market analysis. This allows us to respond swiftly to immediate market conditions and trends, ensuring we are agile and competitive in the near term. Medium- and long-term assessment: We use these scenarios to: – Identify and evaluate risks: These include climate-related physical and transition risks, both of which can impact our business model, financial performance and market positioning. – Assess opportunities: