The issue

2022 marks Rio Tinto’s first triannual say-on-climate vote, where shareholders are offered the opportunity to express their views on the company’s transition plan via a non-binding vote. We believed the interval between these votes necessitated greater scrutiny with regard to the plan and its ambition, with support of the proposal signalling a green-light of the current strategy until 2025. We also had a preference that the company get to a point where science-based targets were possible.

The outcome

We believed an abstention was the most appropriate vote in this instance in order to recognise Rio's recent progress on scope 1 and 2 target setting and initiatives to engage with its supply chain on scope 3, whilst nevertheless expressing the need for greater ambition around scope 3 target setting.