Sustainable development workshop - Rio Tinto

1 Sustainable development workshop Joanne Farrell, Matthew Bateson, Laurel Green and Helen Newell Sustainable development workshop London 2016 21 October 2016 Rio Tinto Kennecott inland sea shorebird reserve 2016, Rio Tinto , All Rights Reserved Cautionary statement This presentation has been prepared by Rio Tinto plc and Rio Tinto Limited ( Rio Tinto ). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. In this presentation all figures are US dollars unless stated otherwise. Forward-looking statements This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Rio Tinto Group. These statements are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, and Section 21E of the US Securities Exchange Act of 1934. The words intend , aim , project , anticipate , estimate , plan , believes , expects , may , should , will , target , set to or similar expressions, commonly identify such forward-looking statements.

2 Examples of forward-looking statements include those regarding estimated ore reserves, anticipated production or construction dates, costs, outputs and productive lives of assets or similar factors. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors set forth in this presentation. For example, future ore reserves will be based in part on market prices that may vary significantly from current levels. These may materially affect the timing and feasibility of particular developments. Other factors include the ability to produce and transport products profitably, demand for our products, changes to the assumptions regarding the recoverable value of our tangible and intangible assets, the effect of foreign currency exchange rates on market prices and operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and political uncertainty. In light of these risks, uncertainties and assumptions, actual results could be materially different from projected future results expressed or implied by these forward-looking statements which speak only as to the date of this presentation.

3 Except as required by applicable regulations or by law, the Rio Tinto Group does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. The Group cannot guarantee that its forward-looking statements will not differ materially from actual results. Disclaimer Neither this presentation, nor the question and answer session, nor any part thereof, may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by Rio Tinto . By accessing/ attending this presentation, you agree with the foregoing and, upon request, you will promptly return any records or transcripts at the presentation without retaining any copies. This presentation contains a number of non-IFRS financial measures. Rio Tinto management considers these to be key financial performance indicators of the business and they are defined and/or reconciled in Rio Tinto s annual results press release and/or Annual report.

4 2 2016, Rio Tinto , All Rights Reserved Injury frequency rates Per 200,000 hours worked 3 Safety is fundamental to our business Whilst we have achieved our lowest ever injury rates, we are yet to achieve a fatality-free year We are focused on reducing injury rates and eliminating fatalities Health, Safety & Environment elevated to Executive Committee level in 2016 2016, Rio Tinto , All Rights Reserved 4 Leadership and culture Critical risks and controls Systems and technology Learning and communication Safety our strategy 2016, Rio Tinto , All Rights Reserved Four key focus areas Critical risk management Learning critical lessons from fatal and potential fatal incidents Process safety Contractor safety 5 Safety current priorities Critical risk management Layered system of verifications Front Line workers use critical control checklists before beginning critical work 2016, Rio Tinto , All Rights Reserved 6 Process Safety Three facets: process safety governance structures improved understanding of process safety hazards process safety standard with common set of requirements for managing technical complexities of process safety risk 2016, Rio Tinto , All Rights Reserved 7 The way we work The way we work symbolises what we stand for as a business It makes clear how we behave according to our values of respect, integrity, teamwork and accountability 2016, Rio Tinto , All Rights Reserved Material risk management and health critical control monitoring plans Mental health Vector borne and infectious diseases Improving health reporting Health risk advisory panel R ssing epidemiological study Learning and communication 8 Health current priorities Dampier Salt R U OK?

5 Day Mosquito 2016, Rio Tinto , All Rights Reserved Accreditation, membership and reporting Rio Tinto is assessed and included in a number of sustainability leadership indices: Dow Jones Sustainability Index FTSE4 Good Index ACSI Leading We are a member of leading sustainability associations, including: ICMM International Emissions Trading Association We have helped shape and participate in voluntary supply chain and transparency initiatives: Responsible Jewellery Council Aluminium Stewardship initiative Extractive Industries Transparency Initiative We participate in or are accredited under a number of voluntary schemes, including: ISO 14001 and OHSAS 18001 Global Reporting Initiative 9 Rio Tinto supports and is a member of the following organisations 2016, Rio Tinto , All Rights Reserved 10 Environment strategy Maintain compliance at the right cost Look forward and prepare the business Minimise our liabilities Hazard identification and risk analysis Environment controls Incident identification, reporting, investigation Long-term focus of engagement with regulators and communities Horizon scanning Risk-focused external advocacy Stakeholder engagement HSEC in Design Innovation Design for closure Progressive rehabilitation Contaminated sites management Biodiversity mitigation hierarchy 2016, Rio Tinto , All Rights Reserved 11 Environment biodiversity.

6 Our journey 2009 Rio Tinto goal of NPI for all very high & high biodiversity value sites by 2015 2014 Rio Tinto biodiversity management workshop 2016 Redefining biodiversity management 2012 Internal target to have: biodiversity action plans in place and in progress by 2015 2005 Land stewardship standard 2007 IUCN assists Rio Tinto to conduct group-wide biodiversity values assessment 2015 Release of new land disturbance & rehab control standard 2004 Rio Tinto announces biodiversity strategy and goal of NPI 2016, Rio Tinto , All Rights Reserved 12 Biodiversity, managing the risks Replacing our NPI aspiration with a performance requirement for sites to minimise residual biodiversity impact Biodiversity to be fully integrated into Rio Tinto environmental assurance processes Focus on what we can reasonably achieve through avoidance, minimisation and restoration. Financing or regulatory requirements maintained; offsets implemented in response to regulator, financing requirements 2016, Rio Tinto , All Rights Reserved Climate change - GHG emissions intensity performance In 2008, we set a target of a 10% reduction to be achieved by 2015 By the end of 2015, we achieved a reduction Major contributions from divestment and closure of old smelters, and the start of low intensity operations (Kitimat, Oyu Tolgoi)

7 New target extended to 2020 - aims for a 24% reduction relative to our 2008 baseline 13 2016, Rio Tinto , All Rights Reserved 14 Closure & Legacy Management Challenge for the whole sector Life of mine planning Structured closure planning process 2016, Rio Tinto , All Rights Reserved 15 Closure & Legacy management Global programme to rehabilitate, remediate and manage long term liabilities from closed sites Closure and step out from sites in Europe Management under strict EPA regulations in US Experience being passed onto design, operation and closure planning of existing sites Sabart smelter, France 2016, Rio Tinto , All Rights Reserved Local school in Fort Dauphin, Madagascar 16 Respect for human rights embedded across Group Core to our business practice: Key documents: The way we work, Human Rights Policy, Supplier Code of Conduct Risk-based, integrated approach including stand-alone studies where appropriate General and targeted online and in person training Multi-product group, cross-functional human rights working group for better coordination Consistent with global guidance and initiatives.

8 Support and respect human rights consistent with the Universal Declaration of Human Rights Implementing UN Guiding Principles on Business and Human Rights Active in global initiatives continuous learning Voluntary Principles on Security and Human Rights UN Global Compact OECD Guidelines for Multinational Enterprises UN Annual Forum on Business and Human Rights 2016, Rio Tinto , All Rights Reserved 17 Human Rights key actions in 2015-16 Governance Human Rights Policy reviewed and updated New online human rights 101 and function specific (including procurement, security, communities) training modules developed Social and human rights risk assessment at Oyu Tolgoi Reporting Continued to include human rights section in Annual and Sustainable development reports Preparation for UK Modern Slavery Act statement (March 2017) Corporate Human Rights Benchmark UN Guiding Principles Reporting Framework database Rio Tinto recognised for its human rights approach by an independent NGO, Business and Human Rights Resource Centre Security and human rights Conducted Voluntary Principles on Security and Human Rights and use of force training in Mongolia, South Africa, Jamaica and Guinea Group-level audit of security and human rights.

9 Implementation of audit recommendations Responsible Supply Chain Pilot programme to review the Group s third party pre-tender due diligence process and launch of Know your Supplier procedure development and launch of new Supplier Code of Conduct Miners at Oyu Tolgoi, Mongolia 2016, Rio Tinto , All Rights Reserved 18 Transparency continued leadership Rio Tinto supports tax transparency and initiatives like EITI as a cornerstone of good governance, to eliminate corruption in all its forms and to improve understanding of the mining sector s economic contribution. Global and national involvement in Extractives Industries Transparency Initiative oEmployee board member oEmployee representatives on multi-stakeholder groups in Australia, Mongolia, USA. Open and constructive engagement in the development and implementation of mandatory reporting legislation in the EU, UK, Canada and USA Reporting consistent with UK legislation (EU Accounting Directive) and Australian Government Transparency Initiative Sixth Taxes paid report in June 2016 - constructive contribution to ongoing debate We support consistent global standards of transparency and tax reporting Community Relations staff member and an agricultural and livestock expert giving technical advice to a local farmer, La Granja, Peru 2016, Rio Tinto , All Rights Reserved 19 Taxes paid 2015 most extensive report yet Sixth Taxes paid report - clear communication with shareholders on complex topic.

10 Onew information on our principles of tax planning ocommentary on tax havens Rio Tinto is a very significant global taxpayer and contributor to the economy o$ billion in taxes and royalties in 2015 o~ $50 billion aggregate taxes and royalties paid since first report in 2010 o> US$329 billion aggregate direct economic contribution since first report Report aligns with new requirements of EU Accounting Directive and compliant with Australian Government transparency initiative o2015 report discloses payments on a project by project basis oLower reporting threshold $100 000 compared to previous $1 million 2016, Rio Tinto , All Rights Reserved 20 Communities building enduring relationships All operations have 5 year communities targets: locally defined targets that demonstrate the local economic benefits of employment and procurement of goods and services capture and manage community complaints with year on year reduction in repeat and significant complaints.