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Product

stewardship
strategy
Our products help
make modern life work
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Our products help make modern life work
Product stewardship strategy

Our products help make modern life work


Product stewardship strategy
1. Introduction
Rio Tinto recognises the need to and integrated product policy),
better understand both the impacts increased consumer and stakeholder
and benefits of its products across awareness about producers’ retaining
their life cycles. This has resulted some responsibility for their products
in the development of a Rio Tinto throughout their life cycles, the potential
product stewardship strategy. for reputation building and product
This strategy allows for the alignment branding, and the potential for cost
of business product stewardship savings. Initial evidence indicates that
policies and programmes with through building our understanding of
Rio Tinto corporate strategy and product stewardship and how it relates
provides the opportunity to coordinate to Rio Tinto products, there is potential
the longer‑term management of the for Rio Tinto to differentiate itself from
risks and opportunities for product its competitors, enhance its reputation
stewardship across the Rio Tinto group. in the market place and become a ‘brand
The product stewardship strategy of choice’ for metals and minerals
defines the vision and major objectives products. This product stewardship
of product stewardship in Rio Tinto by strategy aims at ensuring that Rio Tinto
drawing together existing programmes can be effectively positioned to maintain
and initiatives together with the and grow its product markets over the
identification of further work. longer term.

In our changing world, new paradigms While considerable commitment is


are emerging in relation to the sale of required by businesses to address the
products so that continued access to product stewardship issues associated
markets cannot be assumed. A timely with their own value chains there is
and proactive strategy, designed to also a need at the Rio Tinto group
address issues that threaten both our level to provide guidance and
licence to mine and market our new assistance on issues, threats, risks
and existing products, will allow and market opportunities that cut
Rio Tinto to position itself to maintain across the Rio Tinto group. To that
and grow its markets in the face of stiff end, there is a need for a strategic
competition. approach to product stewardship
across the Rio Tinto group incorporating
Large uncut diamonds in
the high security area at
Drivers for a product stewardship clear positions on relevant issues and
Argyle Diamond mine, strategy include emerging environmental guidance for implementation at the
Western Australia regulations (new chemicals policies business unit or communities level.
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Our products help make modern life work
Product stewardship strategy

Our products help make modern life work


Product stewardship strategy
2. Rio Tinto product
stewardship strategy

Rio Tinto defines product 2.1 Product stewardship environmental, social, and economic trade associations, though some
stewardship as a programme of position statement values for the benefit of society at large. will be company-focused
action that recognises the need to To achieve this goal, Rio Tinto
ensure that products are produced, Rio Tinto’s goal is to be recognised as will proactively: • Monitor and evaluate emerging
used and managed at end of life a leader in the industry on product issues and plan for appropriate
in a socially and environmentally stewardship issues, thus reflecting • Assume responsibility for our regulatory and stakeholder
responsible manner in order to its commitment to sustainable processes and share responsibility for engagement
support societal goals of sustainable development, differentiating its products our products along their value chains
development and commercial goals and commercial reputation, protecting • Develop minimum sustainable
of sustainable markets. its markets and thereby delivering value • Manage the natural resources for development standards over
to the business and to society at large. which we have charge and our time for major supplier contracts
processes in a eco-efficient manner for products delivered to and
As part of this commitment, Rio Tinto to reduce environmental impacts purchased by Rio Tinto
recognises that the effective stewardship
of products across the value chains, • Utilise life cycle assessment • Facilitate and encourage recycling of
from resource extraction to product appropriately across our business Rio Tinto products where appropriate
recycle or disposal, is crucial. Rio Tinto units as a means of evaluating
believes that being a recognised leader potential impacts of our products • Develop greater awareness amongst
and performer in product stewardship throughout their life cycle in order our workforce about the value of
issues will create value for our business to create value for the business units product stewardship
units through better customer
relationships and sustainable market • Engage with key customers to • Disclose information on our
access. Rio Tinto also believes that develop preferred customer-supplier products to insure a high degree
its products contribute to sustainable relationships leading to increased of transparency in our business
development by contributing to value for Rio Tinto products with the public
sustainable communities, sustainable
markets and a sustainable stock of • Develop product environmental • Seek the agreement and alignment
goods that can be used and recycled safety and health data, as of all Rio Tinto businesses with
for centuries to come. appropriate, to ensure that our Rio Tinto’s corporate position and
The Stacker Reclaimer is used to place coal in stockpiles
after processing. It is then used to load coal onto the
products are safe for the environment principles on product stewardship,
conveyor belt which takes it to the train loading bay for Further, Rio Tinto is committed to and health in all their intended uses. whilst preserving their freedom to
shipment. Blair Athol coal mine Queensland, Australia managing its processes and products Much of this work will be done in implement these according to their
in a responsible manner that balances conjunction with commodity and own business specifics.
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Our products help make modern life work
Product stewardship strategy

Our products help make modern life work


Product stewardship strategy
2.2 Product stewardship principles 6. Protection of markets and license to
market requires active monitoring
1. Product stewardship is part of the of health, environment and life cycle
way in which we do business and issues associated with products
is a key component of sustainable beyond the gate as well as proactive
development. engagement with regulators and
the public.
2. Product stewardship involves active
management along the value chain 7. Downstream and upstream
to maximise value, minimise waste, communication is essential to
conserve resources and to minimise protect market share, evaluate life
health and environmental impacts cycle issues beyond the gate and
of products through their life cycle. to create and sustain value.

3. Life cycle approaches and thinking 8. Accountability for stewardship


can contribute to advancing the actions includes public reporting
understanding, appraisal and on actions taken.
management of minerals
and metals. 9. Development and disclosure
of data on products regarding
4. Value can be created or destroyed their potential for health and,
across a product’s life cycle. Value environmental effects as well as
can be maintained by keeping metal their safe use is key to maintaining
and mineral intrinsic properties transparency and public trust.
An iron tap ladle pre-heat. Prior to the
intact, minimising dissipative
iron tap, the iron ladle gets pre-heated to
uses and by efficient recycling. 10. A long-term perspective is take the molten iron, which is poured into
important to insure the success the ladle. The ladle takes about an hour to
5. Continuous improvement in of our products in the marketplace. pre-heat, but new, or refurbished ladles,
processes and products is key Our decision-making will reflect take between 12–14 hours. The ladle is
pre-heated with carbon monoxide (CO),
to improving eco-efficiency both the need to manage short-term which is produced by the furnaces. Each
and minimising health and demands and the need to look to ladle takes approximately 60 tons of iron.
environmental impacts. the future of all our products. Sorel Tracy, QIT Canada
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Our products help make modern life work
Product stewardship strategy

Our products help make modern life work


Product stewardship strategy
3. Rio Tinto product 3.2 Objectives

stewardship goals
and objectives Rio Tinto policy: The way we work

3.1 Goals Product stewardship strategy


Rio Tinto’s goal is to be recognised as a leader in the industry on product stewardship
To achieve our goals of: issues, thus reflecting its commitment to sustainable development, differentiating its
products and commercial reputation, protecting its markets and thereby delivering value
1. Contributing to societal sustainable to the business and to society at large.
development;

2. Sustaining our access to minerals


and markets; Objective 1 Objective 2 Objective 3 Objective 4
Integrate product Secure market Develop and Engage with
3. Demonstrating the benefits of our stewardship into access and communicate customers and
products and understanding their business systems competitive product safety, stakeholders
impacts across their life cycles; and advantage health and to create
environment data opportunities and
enhance reputation
4. Gaining shareholder value from our
product stewardship programme and
becoming a recognised leader in the
industry on product stewardship and Programme Programme Programme Programme
supplier of choice.

Four objectives have been defined


which are shown below. These
objectives provide a strategic Outcome Outcome Outcome Outcome
approach for implementation of
the product stewardship strategy.
Business decision Rio Tinto proactive HSE data available Rio Tinto is considered
making process in assessing and for all products, a brand of choice
Left
Stacked sheets of newly produced incorporates product managing threats labels and Safety by external parties
copper cathode at Escondida, Chile stewardship issues and opportunities Data Sheets
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Our products help make modern life work
Product stewardship strategy

Our products help make modern life work


Product stewardship strategy
4. The business case

The path forward lies in the refinement The range of product stewardship issues
and implementation of the product currently before Rio Tinto presents both
stewardship strategy at the business unit opportunities (eg, product branding) and
level. This will require business units risks (eg, potential market restrictions).
to develop individual, comprehensive
approaches that fulfil our commitment Many of these risks and opportunities
to product stewardship and maximise are common to other health, safety and
added value to our products and environment matters, and reflect the
shareholders. business case for our Group commitment
to sustainable development. Long-term
The four objectives have been identified business value is delivered through:
as part of the strategy. Key elements
for each objective are presented in • continued licence to operate granted by
Appendix one. our neighbours, regulators and society;

Each of these elements requires • better access to resource


different corporate and operational development opportunities;
perspectives and plans to achieve the
objectives. While the development of • better access to markets for our products;
product stewardship programmes for
various products will largely be driven by • preferred supplier status; and
businesses the focus on improving public
perception and advocating public policy • product branding
positions will require input from both
business and corporate perspectives.

Cape Lambert Port Expansion Update,


Iron Ore, Pilbara, Australia
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Our products help make modern life work
Product stewardship strategy

Our products help make modern life work


Product stewardship strategy
Appendix 1:
Strategy objectives and key elements

Objective one. Objective two.


Integrate product stewardship into business systems. Secure market access and competitive advantage.

Key elements: Key elements:


• Rio Tinto provides strategic guidance in product stewardship, through the integration • ensure that each business unit has a program to monitor for existing and emerging
of product stewardship into the HSEQ management system health, environment, economic and social issues across the value chain of key
Rio Tinto’s products:
• Rio Tinto encourages the alignment of product groups/business units with the Rio Tinto
product stewardship strategy and thereby the development of their own supporting Business units seek to:
product stewardship policies and programmes
• identify regulations, groups, science-related activities, and technical developments
• Rio Tinto and business units are building internal capacity to; evaluate and interpret that pose serious threats and opportunities to their operations and markets;
life cycle assessment (LCA) to understand full ‘value chain’ (ie the environmental
• prioritise and respond to issues of greatest concern and coordinate with Rio Tinto
impacts of the production, use, recycling and disposal processes) of Rio Tinto products
and to compare gains in eco-efficiency when production processes change or production • implement a programme responding to regulatory and other stakeholder agendas that
improvements are made and; to evaluate trade-offs between identified issues. Rio Tinto may threaten product markets or create opportunities in conjunction with Rio Tinto
and business units seek to:
• report on significant health and environmental aspects (ISO 14001) related to products
– understand the benefits and significant environmental impacts of our products and mining processes
along the value chain;
• evaluate and fill key information gaps for product in order to deflect market threats
– develop baseline and progressive life cycle inventories (LCI) on key products, and to position for market advantages eg through early research
for internal use and to make these available to customers (eg through reports,
declarations or labels) as appropriate, in line with ISO14040; • voluntarily disclose information to the public on products placed in the market as a key
to maintaining transparency and public trust
– utilise LCI information together with technology evaluations to assess production
process improvements and process eco-efficiencies, including potential integration • engage with customers and suppliers as appropriate to identify opportunities to assess
of LCI with environmental management systems like ISO 14001; and manage risks (note – so that customer needs are better meet, existing markets
were appropriate are protected and supply arrangements can be leveraged)
– engage with customers regarding their need for life cycle information on Rio Tinto
products and with suppliers regarding life cycle information on the products and • engage with key customers regarding identified market threats to focus efforts
raw materials they supply to us; and in the proper direction;

– use the information to enhance business reputation and gain leverage in the • communicate threats and opportunities within and across appropriate business
market place by using the information collected. units and with trade associations.
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Our products help make modern life work
Product stewardship strategy

Our products help make modern life work


Product stewardship strategy
Alma Works
aluminium rod,
Quebec, Canada

Objective four.
Objective three.
Engage with customers and stakeholders to create opportunities
Develop and communicate product safety, health and environmental data.
and enhance reputation.
Key elements: Key elements:
Business units participate in and develop environmental research programmes where Business units with assistance from Rio Tinto seek to:
appropriate to ensure that Rio Tinto’s licence to operate (mineral access) and licence
• identify strategic priorities and issues
to market (market access) is maintained.
• actively engage with customers, regulatory authorities, policy makers and the
Business units seek to:
public across all levels of the business to ensure each Business unit is viewed
• identify and search for market opportunities that provide competitive advantage; as a responsible producer’
• engage with customers and trade associations in order to identify opportunities for • communicate and participate with corporate Rio Tinto programmes aimed at
product design, product branding and eco-efficiency design that add value to products; risk/benefit identifications and market access for facilitating internal
communication pathways
• identify opportunities for product differentiation to gain financial reward; and
• report on product stewardship programmes and progress.
• leverage product performance data and Rio Tinto and business unit reputations
• participate in and contribute to trade association programmes where appropriate
• develop appropriate research programmes to obtain data as needed to support
regulatory and market issues.
Rio Tinto plc Rio Tinto Limited
2 Eastbourne Terrace 120 Collins Street
London W2 6LG Melbourne, Victoria 3000
United Kingdom Australia

T +44 (0)20 7781 2000 T +61 (0)3 9283 3333


www.riotinto.com

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0017 V1 PRODSTEWSTRAT FEB2012 PDF

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