KEY PERFORMANCE INDICATORS

PEOPLE PORTFOLIO PERFORMANCE

All injury frequency rate 1. Total shareholder return 1. Total shareholder return
2. Underlying earnings and underlying EBITDA 2. Underlying earnings and underlying EBITDA
Water 3. Return on Capital Employed 3. Return on Capital Employed
 Permitted surface water allocation 4. Net cash generated from operating activities 4. Net cash generated from operating activities
volumes 5. Free Cash Flow 5. Free Cash Flow
 Annual allocation usage 6. Net debt 6. Net debt
 Estimated catchment runoff from average 7. Total greenhouse gas (GHG) emissions 7. Total greenhouse gas (GHG) emissions
annual rainfalls intensity intensity

For the past years, the company’s aim is to deliver superior shareholder value and society contribution to the modern life. Rio Tinto wanted to generate long-term,
sustainable profits that allows the to invest on communities to enhance their sustainability. Their sustainability framework focuses on the following:
a. Running a safe, responsible, and profitable business (People, Human rights, Environment, Tailings, and Ethics and Integrity)
b. Collaborating to enable long-term economic benefits (communities, social and economic development)
c. Pioneering materials for human progress (Climate change, materials for the future, and partnerships and closure)

RIO TINTO uses a range of financial and non-financial metrics to measure company’s performance against
the key areas of their strategy (portfolio, people, performance).
Key Performance Indicators focuses on its people, portfolio, and performance. Rio Tinto used both quantitative for portfolio and performance analyses while
qualitative analysis for People using scorecards. Specifically, key methods are shown in the table below:

Safety Water Communities Climate Change

Safety performance
Safety maturity model
Rate of Occupational Illnesses
All injury frequency rate
Permitted surface water allocation
volumes
Annual Allocation Usage
Estimated Catchment Runoff from
average rainfalls
Economic contribution Net zero
Community Investment Reduction rate of emissions
Payment to landowners Total greenhouse gas emissions
Taxes and royalties paid
Spent with supplier in more than 120
locations
Development contributions
What would be the benefits for the company taking the efforts in disclosing sustainability information?

 To consider the impacts of the company’s operations on sustainability issues

 To allow them to be transparent about the risks and opportunities the company faces
 To provide tangible, credible demonstrations of their level of sustainability, by following proper guidelines for sustainability reporting.
What would be the role of the accountant in achieving the company's sustainability program?

 Ensure that the company must gain benefits from its sustainable practices by developing risk mitigation methods on its environmental impact of their
operations
 They can provide insights in providing additional funding and subsidies to strengthen their sustainability methods.