The board of mining giant Rio Tinto has supported a resolution that requires much greater transparency in future on how it will deal with climate change risk.
The resolution, which will be put to shareholders at the company’s AGM in London in April, is the product of the ‘Aiming for A’ coalition, which ClientEarth supports.
Similar resolutions were passed by both BP and Shell last year and have now also been filed with Anglo American and Glencore.
Welcoming the board’s decision to back the special resolution, which requires 75% support from shareholders to pass, ClientEarth lawyer Alice Garton said: “This is an encouraging move from Rio Tinto’s board. Carbon heavy companies are particularly exposed to the risks associated with climate change, like stranded assets and increased regulation, so it is essential that those risks, and the opportunities available, are communicated fully and openly to investors.”
Before receiving backing from the board, the resolution had received unprecedented support from major institutional investors, including four of the world’s ten largest pension funds.
Alice Garton added: “This resolution is a highly effective tool for investors. If it passes the 75% threshold then it will be legally binding. We hope Anglo American will follow suit in their AGM notice, allowing their shareholders to also vote to gain a much fuller picture of the company’s climate-related risks and opportunities.”
The Special Resolution will be voted on at Rio Tinto’s AGM on 14 April.