Rio Tinto’s Biodiversity Strategy Our Strategy to make the Protection of Biodiversity a Business Priority Paola Kistler Global Practice Leader Product Stewardship

October 20, 2015 Rio Tinto’s Biodiversity Strategy 2 Where we operate Key Mines and mining projects Smelters, refineries, power facilities and processing plants remote from mine Aluminium Copper Diamonds Energy Iron ore Minerals Africa Europe South America North America Australasia Asia

October 20, 2015 Rio Tinto’s Biodiversity Strategy 3 Elements of a business case Access to land, sea and related natural resources (directly, or through supply chains) Legal and social (functional) license to operate Access to capital and insurance Access to markets for products (old and new) Access to human capital A seat at Policy development table Maintaining Access to land and resources is a key driver in the Biodiversity Strategy business case

October 20, 2015 Rio Tinto’s Biodiversity Strategy 4 Our goal of net positive impact (NPI) Rio Tinto’s goal is to have a net positive impact on biodiversity. This means minimising the impacts of our business and contributing to biodiversity conservation to ensure that a region ultimately benefits as a result of our presence.

October 20, 2015 Rio Tinto’s Biodiversity Strategy 5 Role of collaboration in achieving NPI  Capacity to deliver Rio lacked technical and strategic capacity in Biodiversity policy issues partner organisation provided this  Setting Expectations NGOs provide a benchmark of societal expectations  Mutual Vision NGOs shared a common vision with RT to advance biodiversity performance at operations  Business relevance Engagement provides positive influence on our core business activities  Access to Broader Networks Enables the Rio Tinto to tap into networks Our Biodiversity Partners IUCN* BirdLife International Conservation International Fauna & Flora International Royal Botanic Gardens Kew Earthwatch** Various National Relationships Birds Australia Australian Museum Audubon US Global Initiatives BBOP WBCSD EVI BSR ES WG

October 20, 2015 Rio Tinto’s Biodiversity Strategy 6 The Mitigation Hierarchy

October 20, 2015 Rio Tinto’s Biodiversity Strategy 7 Tools for the Job The tools include: A Group wide Biodiversity Values Assessment profile A Biodiversity Action Planning (BAP) tool Quality Hectares biodiversity metric An offset design tool (under development) A number of tools have been developed to help our operations identify, plan for and manage biodiversity programmes based on the needs of business and the biodiversity values of the regions in which they operate.

October 20, 2015 Rio Tinto’s Biodiversity Strategy 8 Biodiversity Values Assessment A group wide survey to assess the biodiversity profile of the Rio Tinto group. Assessment is independent of management intervention. Operations are ranked into ‘very high’, ‘high’, ‘moderate’ and ‘low’ biodiversity value groupings. Key biodiversity broad issues that are examined as part of this assessment are: Interaction with protected areas Interaction with sensitive habitats Species of conservation value Site specific context Conservation maturity

October 20, 2015 Rio Tinto’s Biodiversity Strategy Group Values Assessment Over the next 5 years Rio Tinto will focus its management actions on the sites that have a very high or high biodiversity context ranking

October 20, 2015 Rio Tinto’s Biodiversity Strategy 10 Biodiversity Action Planning Identify the important biological values on and off site at the species, habitat and ecosystem service level. Understand what impacts mining activities and infrastructure have on these features. Develop a plan to mitigate the impact (considering avoidance, minimisation, rehabilitation, offsets and additional conservation actions). To achieve our NPI goal, an operation must be able to:

October 20, 2015 Rio Tinto’s Biodiversity Strategy 11 The BAP results in a plan to get from….. Here To Here

October 20, 2015 Rio Tinto’s Biodiversity Strategy 12 Measuring NPI: Quality hectares metric Rio Tinto’s fundamental unit of measurement for biodiversity losses and gains is Quality Hectares (QH) Any biodiversity value can be expressed as a combination of its spatial extent and quality (or condition) : –The area over which a species is found combined with the species density or habitat quality in this area –The area over which a “non-timber forest product” (e.g. a medicinal plant) is found and some measure of the density of this product or the habitat quality as a surrogate for this density measure. For example, 200ha of forest at 50% ‘optimum quality’ is expressed as 100 Quality Hectares.

October 20, 2015 Rio Tinto’s Biodiversity Strategy 13 Quality Hectares at QMM Habitat type Losses (QH) Gains (QH) Net Impact Fort Dauphin-type littoral forest (Mandena, Petriky, Ste Luce) Littoral forest (all the above plus Mahabo and Ambatotsirongorongo) Forest - all types (all littoral forest plus Tsitongambarika humid forests) NPI accounting carried out as part of QMM BAP Current analysis shows that, QMM has a Net Positive Impact on forest types in the period (period 2010 to 2015 predictive). As the project progresses post 2015 it may become net negative as biodiversity impact (through clearance becomes greater than present compensation measures Additional compensation measures are being developed to counter this clearance

October 20, 2015 Rio Tinto’s Biodiversity Strategy 14 Target Setting At the group level we have an internal NPI target which we are initially applying to operations that have a biodiversity values ranking of Very High and High. At an operational level we set targets and objectives for local biodiversity values through the biodiversity action planning process. We therefore work on a diverse range of conservation issues including: –Salmon habitat restoration (Scotland) –Invasive ant and weed programmes (Northern Territory Australia) –Shore bird habitat restoration (Utah USA) –Littoral forest conservation (Madagascar) –Chimpanzee population management (Guinea)

October 20, 2015 Rio Tinto’s Biodiversity Strategy 15 “Conservation actions intended to compensate for the residual, unavoidable harm to biodiversity caused by development projects, so as to ensure no net loss of biodiversity” pursued once all possible efforts to avoid and minimise harm to biodiversity have been under taken. not acceptable when unique, ‘un-tradable’ values are at stake size and complexity will vary & must be comensurate with biodiversity loss where possible ‘like for like’ but not limited to ‘like for like’ stakeholder engagement critical in identification, development and implementation Biodiversity Offsets: A critical tool in NPI

October 20, 2015 Rio Tinto’s Biodiversity Strategy 16 Conservation Offsets and Actions Biodiversity offsetting is increasingly being used by Rio Tinto operations to compensate for residual impacts on biodiversity

October 20, 2015 Rio Tinto’s Biodiversity Strategy 17 Path Forward Continued refinement of biodiversity metrics –quality hectares –Biodiversity values Valuation of Biodiversity and Ecosystem Services –IUCN Madagascar study –TEEB Biodiversity offset methodologies –Aggregated offsets –Offset packaging (carbon and other ecosystem services) –Biobanking