1. Creating shared value Joanne Farrell Global head – Health, Safety, Environment and Communities

2. © 2015, Rio Tinto, All Rights Reserved About Rio Tinto 2 Europe South America Australasia Africa Asia North America Aluminium Copper Diamonds & Minerals Energy Iron ore Key Mines and mining projects Smelters, refineries, power facilities and processing plants remote from mine

3. © 2015, Rio Tinto, All Rights Reserved 3 Argyle Diamonds

4. © 2015, Rio Tinto, All Rights Reserved I will broadly address three points today 1 What is shared value and why it’s our approach 2 Our ingredients for success 3 Our challenges Overview

5. © 2015, Rio Tinto, All Rights Reserved Shared value… …can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in which it operates. Shared value creation focusses on identifying and expanding the connections between societal and economic progress. SOURCE: Porter & Kramer 2011 ‘Creating Shared Value’ in Harvard Business Review

6. © 2015, Rio Tinto, All Rights Reserved The opportunities Healthy communities Operational progress Partnership Business value Local jobs, employment

7. © 2015, Rio Tinto, All Rights Reserved Weipa, Australia 7

8. © 2015, Rio Tinto, All Rights Reserved The potential costs Reputation impacts Loss of value Operational risk and delays Fractured communities Unemployment

9. © 2015, Rio Tinto, All Rights Reserved Simandou, Guinea 9

10. © 2015, Rio Tinto, All Rights Reserved 10 Pilbara, Western Australia

11. © 2015, Rio Tinto, All Rights Reserved 11 Banks Island, Canada Early stage diamond exploration programme Home to about 200 Innuvialuit people Early engagement raised importance of wildlife protection Wildlife monitoring programme established Two local people employed as monitors

12. © 2015, Rio Tinto, All Rights Reserved Quebec, Canada 12 Sponsorship of Saguenay-Lac-Saint-Jean symphony orchestra Choir rehearsal, Jonquiere

13. © 2015, Rio Tinto, All Rights Reserved Oyu Tolgoi, Mongolia

14. © 2015, Rio Tinto, All Rights Reserved Sharing lessons learned 14 Build on past experiences Lock in to business processes −Investment decision making −Comprehensive post- implementation reviews −Audit and assurance −Training and development −Human Resources

15. © 2015, Rio Tinto, All Rights Reserved Relationships 15 Agreement signing, Pilbara, Western Australia Jadar project, Serbia

16. © 2015, Rio Tinto, All Rights Reserved Challenges to realising the ambition 16 Internal processes Perceptions Change Cyclical commodity market

17. © 2015, Rio Tinto, All Rights Reserved Shared value will realise mutual benefits Long term view Ensuring a whole business commitment Sharing lessons learned Building relationships and trust Questions? 17 Summary