Rio Tinto Group (NYSE: RIO) has disclosed the long-term strategy which is the firm is going to pursue to prosper in Decarbonising world. The firm has also highlighted its plan to strengthen its business and enhance its performance. Rio Tinto is continuously striving to provide value to each shareholder as it is pursuing its policy.
RIO is introducing a new target to cut its Scope 1 & 2 carbon emissions by 50% by 2030, more than tripling its earlier goal. A 15% cut in emissions is now aimed for 2025, five years earlier than previously. These goals are backed by nearly $7.5 billion of direct investments to cut emissions between 2022 and 2030.
Furthermore, Rio Tinto will speed up its investment in R&D and the development of technologies that allow its customers to decarbonize in acknowledgment of the wider carbon footprint of the goods it produces. Rio Tinto will continue to develop technologies like ELYSISTM for carbon-free aluminum and multiple pathways to manufacturing green steel Working in collaboration with governments, suppliers, customers, academia, and others.
Additionally, Rio Tinto will focus on growth capital in commodities necessary for this change to double growth Capex to about $3 billion a year from 2023 to fulfill additional demand created by the global drive to net-zero emissions. Rio Tinto can decarbonize, engage in the growth, and continue to offer attractive returns to shareholders due to its strong balance sheet, world-class assets, and focus on capital discipline.