RIO

POLITICS – RIO

2018

ACCR engaged with Rio Tinto on lobby group spending, and with the help of over 100 supportive shareholders and 3 institutional co-filers, our resolution appeared on the agenda of the company’s AGM on May 2, 2018. Our co-filers, Australian Local Government Super, the Church of England Pensions Board and the Seventh Swedish National Pension Fund (AP7) represent $84bn in total assets under management.

 

The board of Rio Tinto decided to only allow our resolution to be heard at the company’s annual general meeting in Melbourne and not in London. Our executive director Brynn O’Brien told the Financial Times that ‘it is puzzling that Rio Tinto would choose to deny UK shareholders the opportunity to express an opinion on an issue with ramifications for the long-term interests of their company.’

The board advised shareholders to vote against our resolution. On this, Brynn told The Australian that the Rio Tinto board’s decision to not support our resolution, nor give adequate commitments ‘will reinforce shareholder concerns that Rio is flat-footed in their response to the damaging activities of coal lobbyists.’

 

What our resolution was about

Rio Tinto is using shareholders’ money to pay for an expensive membership to the Minerals Council of Australia (MCA). Rio Tinto and the MCA’s positions on climate change and energy policy drift further apart every year. We have now reached a point where the MCA’s lobbying efforts in many ways undermine the interests of Rio Tinto. Put simply, the MCA is lobbying for more coal and use of fossil fuels, and still believe this is the future of energy. Rio Tinto, on the other hand, needs to be a part of Australia’s transition to renewable energy sources. It just doesn’t make sense for Rio Tinto to spend shareholders funds’ on supporting the MCA, who have all their eggs in one basket, when that basket is full of coal.

 

Our Resolution in the Media

• The Australian Financial Review Australian Council of Superannuation Investors backs Rio Tinto lobby group review 20/4/18
• The Big Smoke Australia BHP sides with climate wreckers, US Chamber of Commerce and Minerals Council of Australia 12/4/18
• City A.M. Mining giant Rio Tinto faces shareholder revolt over climate change issues 11/4/18
• The Australian Business Review Rio sticks with Minerals Council of Australia despite green activists 15/3/18
• The Sydney Morning Herald Minerals Council goes cold on coal in new energy policy 14/3/18
• Chief Investment Officer Church of England Joins Rio Tinto Resolution 12/3/18
• The Financial Times Advocacy group says Rio denies UK investor vote on fossil fuel memberships 9/3/18
• ABC Radio Rio Tinto facing shareholder revolt over energy policy 3/3/18
• AP7 Vad det är roligt att jobba ihop! 3/3/18
• The Australian Financial Review Investors challenge Rio Tinto to review Mineral Council of Australia membership 2/3/18
• The Guardian Rio Tinto faces $84bn shareholder revolt over membership of Minerals Council 2/3/18
• City A.M. Shareholders worth £47bn set to force Rio Tinto to review its relationship with industry bodies blocking climate change progress 2/3/18
• The Sustainability Report ACCR seeking shareholders for resolution at Rio Tinto AGM 9/2/18
• Mining.com Rio investors asked to push miner to leave Minerals Council of Australia 6/2/18
• The Guardian Rio Tinto investors recruited to force mining giant to quit Minerals Council 6/2/18
• The Australian Financial Review Activist ACCR targets Rio Tinto over Minerals Council links 29/1/18

Coal Lobbying in the Media

• The Brisbane Times No one is buying the Minerals Council’s coal ‘slime‘ 9/2/18
• The Sydney Morning Herald Coal industry campaign dwarfs political spending by green groups 2/2/18
• The Guardian Miners receive twice as much in tax credits as Australia spends on environment 2/2/18