Annual Financial Report

RNS Number : 4206E

Rio Tinto PLC

28 February 2020

 

2019 Annual report and Strategic report

28 February 2020

Rio Tinto has published its 2019 Annual report and 2019 Strategic report on its website at: riotinto.com/invest/reports/annual-report on 27 February 2020 (GMT) and both reports have been released to the ASX.

Rio Tinto plc will hold its 2020 annual general meeting in London on 8 April 2020 and Rio Tinto Limited will hold its 2020 annual general meeting in Brisbane, Australia on 7 May 2020. Notices of those meetings will be given during the week commencing 9 March 2020.

Rio Tinto plc has uploaded the 2019 Annual report and 2019 Strategic report to the National Storage Mechanism (NSM) and they will shorlty be available for public inspection at: morningstar.co.uk/uk/NSM  

Rio Tinto will also file its 2019 Annual report on Form 20-F with the United States Securities and Exchange Commission on 28 February 2020. American Depositary Receipt holders will be able to view Rio Tinto's 2019 Annual report and the 2019 Annual report on Form 20-F on the Rio Tinto website at riotinto.com/invest/reports  

Rio Tinto will disclose its 2019 sustainability performance in the sustainability section of its website during the week commencing 16 March 2020 at riotinto.com/sustainability

Hard copies of these documents can be obtained free of charge on request from the company secretaries, whose contact details are on the following page.

In accordance with the requirements of Rules 4.1 & 6.3.5 of the UK Listing Authority's Disclosure Guidance and Transparency Rules, a description of the principal risks and uncertainties affecting the Group and a responsibility statement are set out in appendix 1 to this announcement.

LEI: 213800YOEO5OQ72G2R82

Classification: 1.1 Annual financial and audit reports

Contacts

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riotinto.com  

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Media Relations, United Kingdom Illtud Harri M [phone] David Outhwaite T [phone] M [phone] Media Relations, Americas Matthew Klar T [phone] Media Relations, Asia Grant Donald T [phone] M [phone]	Media Relations, Australia Jonathan Rose T [phone] M [phone] Matt Chambers T [phone] M [phone] Jesse Riseborough T [phone] M [phone]
Investor Relations, United Kingdom Menno Sanderse T: [phone] M: [phone] David Ovington T [phone] M [phone]	Investor Relations, Australia Natalie Worley T [phone] M [phone] Amar Jambaa T [phone] M [phone]
Group Company Secretary Steve Allen Rio Tinto plc 6 St James's Square London SW1Y 4AD United Kingdom T [phone] Registered in England No. 719885	Joint Company Secretary Tim Paine Rio Tinto Limited Level 7, 360 Collins Street Melbourne 3000 Australia T [phone] Registered in Australia ABN 96 004 458 404

This announcement is authorised for release to the market by Rio Tinto's Group Company Secretary.

Appendix 1

Principal risks and uncertainties

Risk management

Effective management of risk provides confidence to all our stakeholders in the Group's ability to meet strategic objectives in alignment with our values -Safety, Teamwork, Respect, Integrity and Excellence.

Risk can manifest as opportunities (upside) or threats (downside) that can affect our business performance.

At Rio Tinto, creating shareholder value is the reward for taking and accepting risk responsibly through effective risk management.

Emerging risks

As we enter a new era of complexity, we expect to experience increasing uncertainty from the interplay of three global forces: geopolitics, technology and society.

There remain significant implications for the Group that arise from ever-growing geopolitical tensions impacting market sentiment. Rising trade tensions between global centres of demand and supply, geopolitical frictions such as the Hong Kong crisis, and deteriorating corporate balance sheets have the potential to slow global growth and impact demand for our products. This in turn could affect Group earnings. Additionally, as not all societies have benefited equally from globalisation, there is an increasing focus on resource nationalism. Global economic conditions remained uncertain throughout 2019 due to escalated trade tensions and heightened geopolitical instability. This combination created market volatility.

Advances in technology bring both opportunities and threats in the medium term. Digital connectivity, and intelligent systems supported by advance analytics and artificial intelligence, are expected to drive the fourth stage of industrialisation. We are focused on being at the frontier of mining technology, implementing industry-leading innovation to sustain our leading cost positions, tackle critical industry challenges, deploy emerging technologies and deliver economic growth options through exploration and orebody optimisation. As we continue to integrate automation in our operations, we are working to position and prepare our workforce for the future through regular training programmes. We are also investing in closing the skills' gap in Australia's future workforce through a four-year national programme that fast-tracks development of skills needed for the digital future. We are acutely aware that with increasing reliance on technology comes a necessity to continue to enhance our cyber security. In 2019, we implemented monitoring technology to enable us to identify malicious activity at our most critical operating assets, and we continue to build on these capabilities.

In the longer term, we see societal expectations around the impact of our business on the local economy, communities and environment continuing to rise. There has also been an increase in focus by investment firms on environmental, social and governance (ESG) issues when considering their investment criteria. Climate change constitutes an important part of the ESG framework. Climate risks and opportunities have formed part of our strategic thinking and investment decisions for over two decades. Our climate change report explains our approach to governance and risk management in this area and sets out our 2030 targets and our ambition to reach net zero emissions by 2050 across our operations. We continue to enhance our monitoring and management of greenhouse gas emissions, water and land use, and rehabilitation. Additionally, we have established partnerships across our value chain to explore solutions to climate change. These include the International Council on Mining and Metals (ICMM), Climate Smart Mining, Elysis, Baowu Steel and Tsinghua University.

In 2019, we further improved our controls for managing operational risks. In particular, we have strengthened how we manage the risks of major hazards through the introduction of Centre of Excellence (CoE) teams, in geotechnical, underground, process safety, tailings, energy and climate change and asset management. Our partner-to-operate strategy also supports the value creation and maintenance of mutually beneficial partnerships with key stakeholders, including host governments, communities, customers and suppliers.

Assessing our risks

With the help of management, the Board has carried out a robust bottom-up assessment of the emerging and principal risks of the business. They have also tested the Group's financial plans for severe but plausible scenarios related to certain principal risks materialising. Our principal risks are discussed on the following pages.

There remain certain threats, such as natural disasters and pandemics where there is limited capacity in the international insurance markets to transfer such risks. We monitor closely such threats, and develop business resilience plans. We are currently closely monitoring the potential short and medium-term impacts of the Covid-19 virus, including for example supply-chain, mobility, workforce, market demand and trade flow impacts, as well as the resilience of global financial markets to support recovery. Any longer-term impacts will also be considered and monitored, as appropriate.

We also seek to bring a commensurate level of rigour and discipline to our managed and non-managed joint-ventures as we do to our wholly-owned assets, through engagement and influence, subject to applicable laws.

Principal risks and uncertainties

The principal risks and uncertainties outlined in this section reflect the risks that could materially affect Rio Tinto, or its ability to meet its strategic objectives, either directly or by triggering a succession of events that in aggregate become material to the Group.

Our business units and functions assess the potential economic and non-economic consequences of their respective risks using the framework defined by the Group's Risk Management Standard. Once identified, each principal risk is reviewed and monitored by the relevant internal experts and by the Risk Management Committee and, as appropriate, by the relevant Board committees and the Board.

We deliver our strategy through The way we work, which focuses on the "4Ps": portfolio, people, performance and partners. The principal risks, uncertainties and trends outlined in this report should be considered as forward-looking statements, and are made subject to the cautionary statement on page 300.

Market risks

We operate in global markets and accept the value impact of exchange rate movements and market-driven prices for our commodities, and pursue a value over volume approach.

Commodity prices: risk and uncertainty Commodity prices, driven by demand for and supply of the Group's products, vary and may not be as expected over time. Exchange rate variations and geopolitical issues may offset or exacerbate this risk.	Opportunities A rise in commodity prices, or favourable exchange rate movements, generates more cash flow from operations, enabling the Group to pursue growth options or capital expansions, pay down debt and/or increase returns to shareholders.
Potential impact -  Business model value -  Future financial performance -  Solvency -  Liquidity -  Group reputation	Capturing above-planned returns from commercial insights relating to market movements would deliver additional cash flow to the Group. Threats Falling commodity prices, or adverse exchange rate movements, reduce cash flow, limiting profitability and shareholder returns. These may trigger impairments and/or impact rating agency metrics. Extended subdued prices may reflect a longer-term fall in demand for the Group's products, and the reduced earnings and cash flow streams resulting from this may limit investment and/or growth opportunities.
Strategy delivery: Portfolio People	Failure to deliver planned returns from commercial insights would negatively impact cash flows for the Group.

Market risks continued

China development pathway: risk and uncertainty China's growth pathway could impact demand for the Group's products outside of expectations. China is the largest market for our products.	Opportunities Strong growth, positive policy decisions and reforms drive demand for commodities, resulting in rising commodity prices that may justify capital expansion and increased shareholder returns in the short to medium term.
Potential impact -  Business model value -  Future financial performance -  Solvency -  Liquidity -  Partnerships	Threats An economic slowdown in China, and/or a material change in policy, could result in a slowdown in demand for our products and reduced earnings and cash flow for the Group.
Strategic delivery: Portfolio People

Mitigating actions include:

-  Pursue low-cost production, allowing profitable supply throughout the commodity price cycle.

-  Maintain a diverse portfolio of commodities across a number of geographies.

-  Maintain a global portfolio of customers and contracts.

-  Monitor multiple leading indicators and undertake detailed industry analysis to inform our forecasting assumptions.

-  Leverage market-facing sales, marketing and trading resources in the Group.

-  Apply strong governance reflecting relevant regulatory frameworks and jurisdictions.

-  Comply with the Group's financial risk management practices outlined in the Group's Treasury policy and standard.

Strategic risks

Rio Tinto enforces disciplined capital and risk allocation to the best opportunities (organic and inorganic) for shareholders returns.

Execution of acquisitions and divestments: risk and uncertainty Our ability to secure planned value by successfully executing divestments and acquisitions may vary.	Opportunities Proceeds realised from divested assets are greater than planned, allowing more capital to be returned to shareholders or redeployed into higher-returning or more productive uses. The Group is successful in acquiring and integrating businesses on acceptable terms that provide sustainable future cash flow and/ or future growth optionality.
Potential impact -  Business model value -  Future financial performance -  Solvency -  Liquidity -  Group reputation	Threats Divestment and acquisition activity incurs transaction costs that cannot be recouped. Such activity may result in value destruction by realising less than fair value for divestments, or paying more than fair value or failing to integrate successfully for acquisitions. The Group may also be liable for the past acts or omissions of assets it has acquired that were unforeseen or greater than anticipated at the time of acquisition. The Group may also face liabilities for divested entities if the buyer fails to honour commitments or the Group agrees to retain certain liabilities.
Strategy delivery: Portfolio People Partners

Strategic risks continued

Capital project development: risk and uncertainty Large capital investments require multi-year execution plans and are complex. The Group's ability to deliver projects to baseline plan, principally in terms of safety, cost and schedule, may vary due to changes in technical requirements, law and regulation, government or community expectations, or through commercial or economic assumptions proving inaccurate through the execution phase.	Opportunities An ability to develop projects safely, on time and within budget enhances the Group's cash flows, its licence to operate and investor confidence. Effective implementation of optimisation programmes reduces cost and accelerates development schedules resulting in higher returns earlier.
Potential impact -  Future financial and operational performance -  Health, safety, environment and security (HSE&S) -  Solvency -  Liquidity -  Group reputation	Threats A delay or overrun in a project schedule and/or a significant safety or process safety incident could negatively impact the Group's profitability, cash flows, ability to repay project-specific debt, asset carrying values, growth aspirations and relationships with key stakeholders.
Strategic delivery: Portfolio Performance

Strategic partnerships: risk and uncertainty Strategic partnerships play a material role in delivering the Group's growth, production, cash and market positioning, and these may not always develop as planned.	Opportunities Joint ventures and partnerships offer opportunities to access resources, increase shareholder returns, and reduce political, portfolio and operational risks. We seek to bring a commensurate level of rigour and discipline to our managed and non-managed joint-ventures as we do to our wholly-owned assets, through engagement and influence subject to applicable laws.
Potential impact -  Business model value -  Future financial and operational performance -  HSE&S -  Group reputation	Threats The capacity or financial circumstance or business disposition of our joint venture partners may present barriers to investment decisions and/or to the realisation of full value for the joint venture(s). For non-managed operations, the decisions of the controlling partners may cause adverse impacts to the value of the Group's interest in the operation, or to its reputation, and may expose it to unexpected financial liability.
Strategic delivery: Portfolio Performance Partners

Mitigating actions include:

-  Complete detailed, objective due diligence on all material divestments and acquisitions.

-  Undertake rigorous third-party due diligence and assurance.

-  Involve business unit leaders early in process to recognise integration planning and synergies, or separation of threats and opportunities.

-  Undertake post-investment reviews on divestments and acquisitions to identify key learnings to embed into future initiatives.

-  Consistently approach development of large-scale capital projects through a specialised projects division.

-  Follow rigorous project approval and stage-gating process, including monitoring and status evaluation, as articulated in the Project Evaluation Standard and Guidance.

-  Ensure effective stakeholder management in project development.

-  Approach investments and partnerships with a view to long-term development of relationships rather than short-term transactional advantage.

-  Maintain strong focus on contractor management.

-  Actively participate within the governance structures of joint ventures to promote, where possible, alignment with the Group's policies and strategic priorities.

Financial risk

We maintain a strong balance sheet and liquidity position to preserve financial flexibility through the cycle.

Liquidity : riskanduncertainty External events and internal capital discipline may impact Group liquidity.	Opportunities Favourable market conditions and strong internal capital discipline could increase Group liquidity and/or balance sheet strength and allow the Group to pursue investment or growth opportunities, pay down debt and/or enhance returns to shareholders.
Potential impact -  Future financial performance -  Solvency -  Liquidity -  Group reputation	Threats The Group's ability to raise sufficient funds for planned expenditure, such as capital growth and/or mergers and acquisitions, as well as the ability to weather a major economic downturn, could be compromised by a weak balance sheet and/or inadequate access to liquidity.
Strategic delivery: Performance

Mitigating actions include:

-  Comply with the Group's Treasury policy and standard, which outlines the fundamental principles that govern the Group's financial risk management practices.

-  Maintain a prudent gearing ratio and other financial metrics commensurate with a strong investment-grade credit rating.

-  Manage the liquidity and financing structure of the Group using forecasts and sensitivity analysis tools to actively monitor, determine and enable access to the appropriate level, sources and types of financing required.

-  Subject funds invested by the Group to credit limits and maturity profiles based on Board-approved frameworks to promote diversification and maintain appropriate liquidity.

-  Maintain accurate financial reporting and tracking of our business performance.

-  Report financial performance monthly to senior management and the Board.

-  Seek Board approval of the financial strategy, long-term planning and cash flow forecasting.

-  Apply a shareholder returns policy which allows shareholder returns to adjust with the cycle.

Resources risks

We invest to accurately identify new deposits and develop orebody knowledge accurately, which underpin our operations and projects, as well as our projections for the financial performance of the business.

Exploration and resources: risk and uncertainty The success of the Group's exploration activity and estimates of Ore reserves and resources may vary.	Opportunities The discovery of a new viable orebody can significantly improve future growth options.
Potential impact -  Business model value -  Future financial and operational performance -  Group reputation Strategy delivery: Portfolio Performance	The volume of ore in reported reserves/resources numbers is based on the geological, commercial and technical information available at the date of the report and is, by its nature, incomplete. As new information comes to light, the economic viability of some Ore reserves and mine plans can be restated upwards. As a result, projects may be more successful and of longer duration than initially anticipated.
	Threats A failure to discover new viable orebodies could undermine future growth prospects.
	If new information comes to light, or operating conditions change, the economic viability of some Ore reserves and mine plans can be restated downwards. As a result, projects may be less successful and of shorter duration than initially anticipated, and/or the asset value may be impaired.

Mitigating actions include:

-  Comply with the Group's resources and reserves standard.

-  Establishment of the Orebody Knowledge Centre of Excellence, as part of Group Technical.

-  Recruit and retain skilled and experienced exploration and evaluation personnel.

-  Provide stable funding for exploration activities.

 -  Continually review the prospects of opportunities in the exploration portfolio, and prioritise spend accordingly.

-  Utilise new technologies where appropriate for exploration and evaluation of reserves/resources.

-  Develop, leverage and manage third-party partnerships.

Health, safety, environment and security risks

Our operations are inherently hazardous. We seek to achieve operational excellence to ensure that our employees and contractors go home safe and healthy, and that there are no adverse impacts on the communities and the environment where we operate.

Health, safety, environment and security: risk and uncertainty Our operations and projects are inherently hazardous, with the potential to cause illness or injury, damage to the environment, disruption to a community or a threat to personal security.	Opportunities Delivering leading performance in health, safety, environment and communities is essential to our business model and our success as a Group. Meeting or exceeding our commitments in these areas contributes to sustainable development for both Rio Tinto and our partners, and underpins our continued access to resources, capital and a diverse workforce to sustain the organisation. Good performance in closure and legacy management of closed sites can enhance our reputation with stakeholders and enable us to maintain access to land, resources, people and capital, so we can continue to establish new projects with the support of local communities.
Potential impact -  Future financial performance -  HSE&S -  Communities and social performance -  Group reputation	Threats Failure to manage our health, safety, environment or community risks could result in a catastrophic event or other long-term damage that could in turn harm the Group's financial performance and licence to operate.
Strategic delivery: Portfolio People Performance Partners

Mitigating actions include:

-  Continued focus on HSE&S as a core priority at all operations and projects, overseen by the Sustainability Committee and supported by the Group's Risk Management Committee, as well as second and third line assurance activities.

-  The second line assurance is provided by our central support functions and technical Centre of Excellence (CoE) teams to verify compliance with Group HSE&S strategy, policy and performance standards.

-  Regularly review and audit HSE&S processes, training and controls to promote and improve effectiveness at managed and (where practicable) non-managed operations.

 -  Monitor monthly HSE&S performance at the Group level.

-  Report, investigate, and share learnings from HSE&S incidents.

-  Build safety targets into personal performance metrics to incentivise safe behaviour and effective risk management (see Remuneration report).

-  Develop mutually beneficial partnerships with local communities and establish appropriate social performance targets.

-  Report annually on performance on greenhouse gas emissions, water, and land use and rehabilitation, among others.

-  Focus on fatality elimination through implementation of a programme to verify safety risk controls.

Climate change

We provide essential materials for human progress and a low-carbon future. By collaborating with our partners across the value chain, we aim to do this in a sustainable way and help address climate change challenges.

Climate change: risk and uncertainty Climate change is a systemic challenge and will require coordinated actions between nations, between industries and by society at large. It requires a long-term perspective to address both physical climate change and low-carbon transition risks and uncertainties.	Opportunities Climate change has formed part of our strategic thinking and investment decisions for over two decades. Each of the commodities we produce has a role to play in the transition to a low-carbon economy - aluminium in electric vehicles, copper in wind turbines, iron ore for critical infrastructure and minerals for rechargeable batteries, such as lithium.
Potential impact -  Business model value -  Future financial and operational performance -  Group reputation	Threats Current and emerging climate regulations have the potential to result in increased costs, change supply and demand dynamics for our products and create legal compliance issues and litigation, all of which could impact the Group's financial performance and reputation. Our operations also face risk due to physical impacts of climate change, including extreme weather.
Strategic delivery: Portfolio Partners

Mitigating actions include:

-  Partnering to reduce the carbon footprint across the value chain. This includes the development of new partnerships to explore pathways with our customers to improve the environmental performance of our product value chains.

-  Enhancing our resilience to physical climate impacts. We consider climate risks over the life of our operations, from the way we design and develop new projects through to closure and beyond. Supported by the new Energy and Climate Change Centre of Excellence (CoE), we use scenarios to assess further medium- and long-term risks.

 -  Implementation of a series of controls to manage the threat of extreme weather, including structural integrity programmes across all critical assets, emergency response plans and flood management plans. These controls keep our people safe and help our operations return to normal capacity as quickly as possible.

-  Increasing the supply of the materials essential to building a low-carbon economy.

-  Setting targets to reduce our emissions (on an absolute and intensity basis) over the short, medium and long term.

Communities and other key stakeholder risks

We recognise the value of positive engagement with a range of stakeholders, and seek to develop collaborative and mutually-beneficial partnerships though our partner-to-operate strategy.

Sovereign: risk and uncertainty The Group's operations are located across a number of jurisdictions, which exposes the Group to a wide range of economic, political, societal and regulatory environments.	Opportunities Proactive engagement with governments, communities and other stakeholders can increase access to new resources, support stable and predictable investment frameworks and operational environments, and shape mutually-beneficial policies and legal/regulatory frameworks.
Potential impact -  Business model value -  Future financial and operational performance -  Group reputation -  Communities and social performance	Threats Adverse actions by governments and other stakeholders can result in operational/project delays or loss of licence to operate. Other potential actions can include expropriation, changes in taxation, and export or foreign investment restrictions, which may threaten the investment proposition, title, or carrying value of assets. Legal frameworks with respect to policies such as energy, climate change and mineral law may also change in a way that increases costs.
Strategic delivery: Portfolio Performance Partners

Closure , reclamation and rehabilitation: risk and uncertainty Planning for the future of our sites after they cease their operating life is a core business function governed by our Closure Steering Committee. Estimated costs and liabilities are provided for, and updated annually, over the life of each operation. However, estimates may vary due to a number of factors that either create opportunities or challenges.	Opportunities We are actively assessing opportunities to find solutions to repurpose and reuse sites for future economic or social benefit through working collaboratively with our stakeholders. For all new asset developments, we incorporate closure into the design of our assets, as well as how to optimise decommissioning, remediation and any long-term management obligations. For existing operations, where possible, we progressively rehabilitate land throughout the life of the operations.
Potential impact -  Business model value -  Future financial and operational performance -  Group reputation	Threats Plans and provisions for closure, reclamation and rehabilitation may vary over time due to changes in stakeholders' expectations, legislation, standards, technical understanding and techniques. In addition, the expected timing of expenditure could change significantly due to changes in the business environment and orebody knowledge that might vary the life of an operation.
Strategic delivery: Portfolio Performance Partners

Mitigating actions include:

-  Comply with Group policies and standards which provide guidance concerning risk management, communities and social performance. This is overseen by our Sustainability Committee, and Closure Steering Committee.

-  Collaborate with key stakeholders, and participate in strategic partnerships and/or governance structures to create opportunities and mitigate threats.

-  Develop long-term relationships with a range of international and national stakeholders.

-  In relation to sovereign risk, maintain geographically diverse portfolio to reduce concentration of exposure to changes in particular locations.

-  Monitor jurisdictional risks, including sovereign risks, and take appropriate action.

Governance risks

Our employees operate in compliance with The way we work (our global code of business conduct), Group delegation of authorities, and all other Group policies, standards and procedures.

Regulation and regulatory intervention: risk and uncertainty The Group's reputation and regulatory licences are dependent upon appropriate business conduct and are threatened by actual or perceived breaches of law, reputation and our code of conduct.	Opportunities Good corporate citizens are acknowledged to operate to a high ethical standard, thus attracting talent and securing access to resources and investment opportunities.
Potential impact -  Potential impact -  Business model value -  Future financial performance -  Group reputation	Threats Fines may be imposed on Group companies for breaching anti-trust rules, anti-corruption legislation, or sanctions or for human rights violations, or for other inappropriate business conduct.
Strategic delivery: People Partners	A serious allegation or formal investigation by regulatory authorities (regardless of ultimate finding) could result in a loss in share price value and/or assets or loss of business. Other consequences could include the criminal prosecution of individuals and/or Group companies, imprisonment, fines, legal liabilities and reputational damage to the Group.

Mitigating actions include:

-  Comply with Group policies, standards and procedures that provide guidance to our businesses and drive compliance with regulatory obligations.

-  Identify and meet our regulatory obligations and respond to emerging requirements.

-  Dedicate legal and compliance teams to assist Group businesses in complying with regulatory obligations and internal standards and procedures.

-  Maintain appropriate oversight and reporting, supported by training and awareness, to drive compliance with regulatory obligations.

-  Continue to develop and deploy training across relevant sectors of the workforce.

Operational and people risks

We seek to achieve operational and commercial excellence through the engagement of our workforce and the deployment of effective standards, processes and systems.

Operational and commercial excellence: risk and uncertainty Accessing, developing and retaining talent as Rio Tinto and our industry evolves presents a constant challenge. The Group's ability to maintain its competitive position is dependent on the services of a wide range of internal and external skilled and experienced personnel and contracting partners.	Opportunities Enhance productivity and business resilience through building operational and commercial excellence.
Potential impact -  Future financial and operational performance -  Liquidity -  HSE&S -  Communities and social performance -  Group reputation	Threats Business interruption or underperformance may arise from a lack of capability in people, standards, processes or systems to prevent, mitigate or recover from an interruption (for example, a significant weather event), which results in a material loss to the Group.
Strategic delivery: People Performance

Mitigating actions include:

-  Development of Centres of Excellence for key technical capability in major hazard and asset management.

-  Continue to provide leadership, technical and commercial development opportunities.

-  Comply with slope geotechnical, tailings management, underground mining and process safety technical and safety standards, supported by subject-matter experts and audit protocols, reducing the risk of operational failure.

-  Comply with the Acceptable Use of Information and Electronic Resources standard, supported by periodic reviews of IT infrastructure and security controls by dedicated cyber-security team.

-  Undertake business resilience planning and execution exercises for plausible and severe scenarios.

Responsibility Statements

Each of the current directors, whose names and function are listed in the Group's 2019 Annual report, confirm that, to the best of their knowledge:

· the Rio Tinto Group financial statements and notes, which have been prepared in accordance with IFRS as adopted by the EU, the Corporations Act 2001 as amended by the Australian Securities and Investments Commission Order dated 14 December 2015, the UK Companies Act 2006 and Article 4 of the EU IAS Regulation, give a true and fair view of the assets, liabilities, financial position and profit of the Group;

· the Rio Tinto plc financial statements and notes, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice give a true and fair view of the assets, liabilities, financial position and profit of the company; and

· the Strategic report section of the Annual report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that it faces.

 

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