Creating shared value Joanne Farrell Global head – Health, Safety, Environment and Communities.

Creating shared valueJoanne FarrellGlobal head – Health, Safety, Environment and Communities

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About Rio Tinto

Europe

SouthAmerica

Australasia

Africa

Asia

NorthAmerica

Aluminium Copper Diamonds & MineralsEnergyIron ore

KeyMines and mining projects

Smelters, refineries, power facilities and processing plants remote from mine

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Argyle Diamonds

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I will broadly address three points today

1 What is shared value and why it’s our approach

2 Our ingredients for success

3 Our challenges

Overview

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Shared value…

…can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in which it operates. Shared value creation focusses on identifying and expanding the connections between societal and economic progress.

SOURCE: Porter & Kramer 2011 ‘Creating Shared Value’ in Harvard Business Review

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The opportunities

Healthy communities

Operational progress

PartnershipBusiness

valueLocal jobs,

employment

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Weipa, Australia

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The potential costs

• Reputation impacts • Loss of value• Operational risk and delays • Fractured communities• Unemployment

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Simandou, Guinea

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Pilbara, Western Australia

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Banks Island, Canada

• Early stage diamond exploration programme

• Home to about 200 Innuvialuit people

• Early engagement raised importance of wildlife protection

• Wildlife monitoring programme established

• Two local people employed as monitors

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Quebec, Canada

Sponsorship of Saguenay-Lac-Saint-Jean symphony orchestra

Choir rehearsal, Jonquiere

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Oyu Tolgoi, Mongolia

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Sharing lessons learned

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•Build on past experiences•Lock in to business processes−Investment decision

making−Comprehensive post-

implementation reviews−Audit and assurance−Training and development−Human Resources

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Relationships

Agreement signing, Pilbara, Western Australia Jadar project, Serbia

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Challenges to realising the ambition

• Internal processes

•Perceptions

•Change

•Cyclical commodity market

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Shared value will realise mutual benefits

• Long term view

• Ensuring a whole business commitment

• Sharing lessons learned

• Building relationships and trust

Questions?

Summary