Rio Tinto, a giant mining company, has announced that it targets to have zero greenhouse gas emissions through a $1bn spending for the coming five years. It has also pledged to cut its emissions by 15 % come 2030. This decision to cut on emissions has been a significant step as it seeks to align itself with the views of investors and the government. It has committed to reaching zero-emission levels over time in spite of its massive mining operations.
The decision is highly possible considering they do not mine coal and oil, which are huge sources of carbon. It, however, quoted to experience problems with Chinese labor, especially with the outbreak of coronavirus that is likely to halt operations. Such a move could affect its efforts to achieve zero emissions with the set timeframes. Rio sets out a gradual program considering the fact that they are not in the fossil fuel mining industry or coal plants. Having strategized their operations, it will be easy for the organization to have visible results by 2050.
It set out a model through which they would be in a position to eliminate carbon emissions in their operations. Through technological solutions, Rio focusses on reducing their emissions significantly by 2030. Systems have already been set up with their target being to cut on carbon emissions. They are also working towards finding better solutions that will be used in the future to tackle this problem using technology. Unlike others in Australia that are for the radical change, it maintains its progress to be gradual but impactful to reach zero levels.
Rio’s primary focus is that committing to zero reductions would bring their operations to huge losses as it would have massive spendings. However, through the application of technology and other strategies, they will manage to conquer the issue without experiencing huge bumps. The company has embarked on a process of improving its products, which subsequently will lead to an addition in prices but at zero emissions in the end.
However, they instated on the importance of making better qualities of their products such as steel, aluminum, and iron to be part of the solution being sought. Rio seems to be focusing mostly on better technology that will lead to substantial cuts in carbon emissions. Their move to embark on this rectification journey has created substantial drops in their profits. It reported a sheer drop from $ 13.9bn to $7 billion last year.