Rio Tinto (ASX, LON, NYSE: RIO) will spend $1 billion over the next five years to reduce its carbon footprint and have net zero greenhouse gas emissions by 2050, but some analysts say the announcement is a minor step towards helping the mining industry achieve climate goals.
Delivering full-year results for 2019, in which the company recorded its highest profit in eight years, chief executive officer Jean-Sébastien Jacques said the world has got to a point where it is necessary to sacrifice growth to meet climate targets.
“The challenge for the world, and for the resources industry, is to continue the focus on poverty reduction and wealth creation, while delivering climate action,” Jacques said. “This will require complex trade-offs.”
Rio’s boss, at the helm since 2016, said that lower consumption, growth and returns are some of the sacrifices consumers, governments and shareholders must all be willing to make. This is especially true for the natural resources industry, which has come under increasing pressure to curb emissions.
“There are no easy answers,” Jacques told investors. “There is no clear pathway right now for the world to get to net zero emissions by 2050. The ambition is clear but the pathway is not.”
For the rest of this article: https://www.mining.com/rio-tintos-1bn-spend-to-reach-zero-emissions-not-enough-analysts/