RIO TINTO PLC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 20-F

(Mark One)

or

or

or

Julie Parent, T:514-848-8519, E: julie.parent@riotinto.com

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

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Form 20-F cross-reference guide

Other information contained within Rio Tinto’s Annual Report on Form 20-F 2023 (Form 20-F) is not included in this Form 20-F unless specifically

identified above and is furnished to the SEC for information only.

Contents

References to information on websites in the Form 20-F

are included as an aid to their location and such

information is not incorporated in, and does not form part

of, this Form 20-F. We have included any website as an

inactive textual reference only.

References to KPMG's limited assurance report related to

sustainability are not incorporated in, and do not form

part of, this Form 20-F.

Our operations are located on land and waters that have belonged to Indigenous

Peoples for thousands of years. We respect their ongoing deep connection to, and

their vast knowledge of, the land, water and environment. We pay respects to Elders,

both past and present, and acknowledge the important role Indigenous Peoples

play within our business and the communities where we live and work.

Cover | The BlueSmelting™ project in Sorel-Tracy, Canada. BlueSmelting™ involves a completely new ilmenite reduction

technology that could generate 95% less greenhouse gas emissions than the current reduction process, enabling the

production of titanium dioxide, steel and metal powders with a significantly lower-carbon footprint.

Our 2023 reporting suiteOur Annual Report is part of our broader 2023 reporting suite. You can find this report and others, including our 2023 Climate Change Report, Sustainability Fact Book, 2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology and Industry Association Disclosure, on our website. Some of our reports are published on our website later in the year, including our 2023 Taxes Paid Report, Country-by-Country Report, Modern Slavery Statement, and our Voluntary Principles on Security and Human Rights report.

To view and download these documents see riotinto.com/reports.

Our businessWe operate in 351 countries where our 57,000 employees2 are working to find better ways to provide the materials the world needs. Our portfolio includes iron ore, copper, aluminium and a range of other minerals and materials needed for people, communities and nations to grow and prosper, and for the world to cut carbon emissions to net zero. We continuously search for new projects that can support the energy transition, currently exploring for eight commodities in 18 countries.We have more than 150 years of mining and processing experience guiding our work. Today, our business relies on technology such as automation and artificial intelligence to help us run safer, more efficient operations and leave a lighter footprint.

For more informationsee pages 32-39.

Operations and projects 3

Iron Ore

Aluminium

Copper

Minerals

Mines

Smelters, refineries, processing plants and

power and shipping facilities remote from mine

Non-managed operations

1.Includes our mines and production facilities, main exploration activities and countries where we have a significant presence through activities including research and development, commercial, sales, and corporate functions.2.This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 215 for more information.3.The map indicates the location of our global operations and projects, however it does not identify all individual facilities included in an operation. It does not include our offices, research and development centres and some processing and shipping facilities. Operations and projects are indicated according to their product group. The Iron Ore Company of Canada is an iron ore operation but is reported under Minerals due to the management structure. The dots on the map are indicative and in some locations we have more assets than visually represented due to the size of the map.4.2022 underlying EBITDA for Copper has been adjusted to reflect a change in management responsibility for the Simandou iron ore project from Copper to the Chief Technical Officer. As a result, we have moved Simandou outside of reportable segments and accordingly adjusted prior period comparatives.

At a glance

OutlookWe have a strong portfolio of assets across six continents. Our focus is on growing our business while decarbonising, providing products to our customers that support the transition to a low-carbon economy, and delivering attractive returns to our shareholders.Many of our products are essential for the energy transition: we expect this new source of demand, combined with traditional sources, to drive significant volume growth in our products over the coming decades. In developed markets, customer demand for low-carbon and recycled materials is growing with supply security top of mind. In developing economies, reliable access to raw materials for domestic processing is critical. We have the people, orebodies, technology, processing capabilities, access to capital and relationships to meet these diversifying needs.

Very sadly, I must begin by acknowledging the tragic deaths of our four

Diavik colleagues and two airline crew members in a plane crash near Fort

Smith, in the Northwest Territories, Canada, on 23 January 2024. They will

all be dearly missed, and our thoughts are very much with their loved ones,

everyone in Fort Smith, and our team at Diavik.

Our focus in 2023, and as we move into 2024,

has been on embedding an empowering

culture and on delivering consistent

operational performance to progress our four

key strategic objectives.

We recognise that creating and maintaining a

culture where everyone can be at their best

requires constant effort but, two years since we

started learning from the findings of the

Everyday Respect Report, there is positive

momentum. Our executive team is driving this

change, with the full support of the Board,

reinforcing the importance of mindsets

and behaviours that ensure everyone,

everywhere in our operations feels safe, valued

and empowered.

The Group has also made progress on our

four key objectives of becoming best operator,

excelling in development, having impeccable

credentials and strengthening Rio Tinto’s

social licence. There have been real

improvements in our Pilbara iron ore

operations; we are ramping up underground

copper production at Oyu Tolgoi; we are

significantly closer tounlocking the Simandou

project; and we have made strategic and

exciting investments in our aluminium

business, such as the Matalco recycling joint

venture.

Our strong results in 2023 demonstrate our

continued progress towards our four

objectives, with a continued focus on financial

discipline. This discipline has enabled us to

invest in the future health of our business

while at the same time delivering attractive

returns to investors, with the Board

recommending a final dividend of 258 US

cents, taking total dividends declared to$7.1

billion.

Growing and deepening connections

We are committed to deepening connections

with our stakeholders to earn trust, resolve

conflicts, and strengthen our social licence.

This is constant work in progress, but there

were many bright spots in the way our

relationships with governments, communities

and Indigenous Peoples evolved in 2023.

Our partnership with the Mongolian

Government highlights the mutual benefits

when we get this right. We are now deepening

our connection to Mongolia, most recently

forming a partnership with UNESCO to

support its sustainable development. In

Canada, we are growing our aluminium

business, including expanding the use of

AP60 low-carbon smelting technology, with

the continued support of the national and local

governments.

More broadly, we are embedding and

replicating the learnings from a shift to co-

management and co-development at our

operations, such as working closely with the

Nyiyaparli and Ngarlawangga people as we

progress the Rhodes Ridge project in the

Pilbara. As we get closer to unlocking

Simandou in Guinea, we are doing so in close

partnership with communities, in a way that

will support further economic development

beyond the mine.

This commitment to ESG and a stronger

social licence does not end with the life of a

mine. At Le Thoronet in south-east France, a

rehabilitated former bauxite mine we have

handed back to the French authorities, I saw

evidence of how we are thinking about thefull

lifecycle of our assets, beyond our time as their

custodians.

An important part of our engagement is with

non-governmental organisations (NGOs).

Taking part in our civil society roundtables in

the US, UK and Australia provided opportunities

to listen to the concerns of leading civil society

voices, what we can learn to do better, and

understand how we can better work with these

groups. They encouraged us to forge ahead on

establishing nature and biodiversity targets and

helped me understand further how we can better

engage with our communities.

Since becoming Chair almost two years ago, I

have been fortunate to spend a lot of time with

our talented people across the organisation.

In our 150 th anniversary year, we reflected

together on how we can reinvigorate the core

parts of our DNA and be successful in the 150

years to come. With every person I meet and

every site I visit, I grow in confidence that we

are heading in the right direction. This was

clearly illustrated when the Board saw our four

objectives in action at Oyu Tolgoi. We were

deeply impressed by the productivity, the use

of cutting-edge technology and the connection

to the community; a blueprint for what we can

achieve everywhere.

Meetings with stakeholders have also

reinforced the important societal role we have

to play. As a Board, we spent time in China

with our customers, partners, and government

to better understand how combining our

knowledge and technology can create win-win

opportunities and help address the climate

challenge. Similarly, in conversations with

officials in Washington D.C., Canberra,

Ottawa, London, Brussels, Ulaanbaatar and

more, we have discussed the critical role of

mining for energy security, in addition to

providing the basis for resurgent

manufacturing.

What is very clear to me, is Rio Tinto’s

strategic importance in helping societies

resolve their most urgent challenges. Rio

Tinto can be fundamental to the energy

transition. Our industry has been and will

continue to be relied upon to provide the vast

quantities of metals and minerals needed to

build the infrastructure for the generation,

transmission, and storage of renewable

power. The need to repower our own assets

with renewable power can also support

investment in renewables – our Gladstone

aluminium operations being a recent example

of this.

Chair’s statement

Innovation and growth

Innovation and technology are key to driving

our progress, while helping us to simplify and

automate for safer and more efficient

operations. There is real momentum in our

project pipeline and our Chief Scientist’s office

is steering us towards more breakthroughs in

sustainable mining and processing, including

BlueSmelting TM, ELYSISTM and BioIron TM.

We are also working towards our ambitious

targets of a 50% reduction in Scope 1 and 2

emissions by 2030 and achieving net zero

by 2050. This is a physically challenging

task that will require great imagination,

collaboration, and technological advances that

do not yet exist. However, we have

now progressed to a disciplined and

detailed roll-out program, providing greater

definition to what an economical pathway

to decarbonisation looks like. At the

same time, we are exploring more ways

to help our customers accelerate

their own decarbonisation to tackle

our Scope 3 emissions.

We are also seeking to further embed these

targets by introducing a decarbonisation

scorecard into our long-term incentive plan as

part of our 2024 Remuneration Policy

proposals. More detail on these proposals is

set out on page 135.

Our partnerships are key to how we are

developing the technologies to grow and

reduce emissions. Highlights include working

with China Baowu to explore projects to

decarbonise the steel value chain, a multi-

year supply agreement between Iron Ore

Company of Canada and H2 Green Steel in

Sweden, and teaming up with Sumitomo at

our Aluminium Pacific Operations to build a

first-of-a-kind hydrogen plant in Gladstone to

trial lower-carbon alumina refining, with

support from the Australian Government.

Board changes

In the summer of 2022, we evaluated the mix

of skills and experience on the Board and

concluded that we needed to refresh our

composition, with a particular focus on

deepening our mining, operations and

projects experience, as well as our renewable

energy and sustainability capabilities. We also

needed to prepare for future transitions in our

Audit and Risk Committee. I am pleased that

we have made significant progress in this,

with the announcement of six new Non-

Executive Directors.

Dean Dalla Valle, who joined the Board in

June, has vast operational and technical

expertise, and wide experience developing

complex mining projects. Susan Lloyd-

Hurwitz, who also joined in June, is a highly

respected leader and brings deep CEO

experience across large projects, cultural

change, diversity and inclusion, and

sustainability. Joc O’Rourke joined the

Board in October and brings 25 years of

mining industry experience and a passion

for improving operational performance.

In December, we announced the

appointments of Martina Merz, who joined the

Board on 1 February 2024, and Sharon

Thorne, who will join the Board in July 2024.

Both are exceptional leaders, Martina with

deep CEO experience in handling cyclical

businesses, research and development

and decarbonisation initiatives, and Sharon

with deep industry knowledge gained over

30 years of auditing and advising multinational

companies.

As part of that phased transition, Simon

McKeon has agreed to step down as a

Director at the conclusion of our annual

general meetings in 2024, and will not

therefore seek re-election by shareholders.

I am extremely grateful to Simon for his

invaluable contribution. Having regard for his

roles as Rio Tinto Limited's Senior

Independent Director and the Designated

Director for workforce engagement, Simon

has taken a particular interest in Rio Tinto's

revitalised approach to engagement with the

broader Australian community as well as the

company's cultural reset. On behalf of the

Board, I wish him well for the future.

In December, we also said goodbye to a

colleague who will be greatly missed.

Dr Megan Clark stepped down after 9 years

on the Board. Her experience and wise

counsel were invaluable, and we wish her

well for the future.

I am excited to lead a Board with such depth

and breadth of insight, who I know share a

commitment to help Rio Tinto capture

opportunities and achieve its full potential. For

more information on the Board, please see

the Directors’ report on pages 90 to 145.

Looking ahead

There is no doubt we are living through

turbulent times. Politics is becoming

increasingly polarised, the geopolitical

landscape has become more complex

and volatile, and the economic backdrop

remains challenging.

Nevertheless, our purpose, “Finding better ways

to provide the materials the world needs”, drives

everything your company does.

I look to the future with optimism - there has

never been greater demand for what we do, and

the capability of our people, and the quality of our

partnerships, assets, technology, and innovation

give me great confidence we can deliver for all of

our stakeholders.

Once again, I want to thank the leadership

team and the thousands of employees,

contractors and partners around the world

who are bringing Rio Tinto’s purpose and

values to life.

Chair

Q&A with Jakob Stausholm

2023 highlights

0.37

All-injury frequency rate

(2022: 0.40)

$15.2 bn

net cash generated from operating

activities

(2022:$16.1 bn)

$10.1 bn

profit after tax attributable to owners of

Rio Tinto

(2022: $12.4 bn)

$7.1 bn

total dividend declared

(2022:$8 bn)

What are your reflections on 2023?

We approached the year with confidence in

our strategy, a deep commitment to safety and

financial discipline, and a continuous

improvement mindset. By continuing to focus

on our four objectives, we have put Rio Tinto

in a stronger position to capture traditional

and emerging opportunities. In 2023, we

returned to investing in profitable growth with

an eye to the future. Of course, we have a lot

more to do. But that is the best part; there is

so much ahead of us.

While we had zero fatalities at our managed

operations in 2023, four team members from

our Diavik Diamond Mine in the Northwest

Territories in Canada and two crew members

lost their lives when a charter flight crashed

on its way to the mine in January 2024.

We are devastated by this tragic incident

and are working with the authorities to

understand the full facts of what happened.

Nothing is more important than the safety of

our employees, contractors and communities

and we remain committed to evolving our

culture and processes to ensure everyone

goes home safely every day.

We made encouraging progress improving our

operations, including the Pilbara, where we

achieved guidance for iron ore shipments. We

also hit project milestones including first

underground copper production at Oyu Tolgoi in

Mongolia. Despite continued uncertainty in the

operating environment, we delivered another set

of robust financial results. We generated

underlying earnings of$11.8 billion (2022:

$13.4 billion) and net cash generated from

operating activities of$15.2 billion (2022:

$16.1 billion). Profit after tax attributable to

owners of Rio Tinto was$10.1 billion (2022:

$12.4 billion) and our balance sheet remains

strong with net debt of$4.2 billion (2022: net

debt of$4.2 billion). As a result, the Board has

recommended a final ordinary dividend of 258

US cents per share, resulting in total shareholder

returns declared this year of$7.1 billion. This

represents a pay-out ratio of 60%, in line with our

policy.

2023 was another year of extreme weather and

broken temperature records. In December, I

attended the UN climate summit (COP28) and

came away concerned the world is not on track

with the Paris Agreement goal to limit warming to

1.5°C by 2100. National targets are not in line

with the overall goal, and current climate policies

in many countries are not yet aligned with their

stated ambitions.

Many 1.5°C scenarios now overshoot the long

term temperature goal and rely on significant

deployment of carbon dioxide removals to get

to net zero that may not be plausible. No

single company or country can halt the course

of climate change alone, so partnering to

reduce emissions is vital. This is why we put

the low-carbon transition at the heart of our

business strategy and are working with

governments, customers, communities and

others to decarbonise our operations and

value chains.

Rio celebrated its 150 th anniversary in

2023. What did reaching this milestone

mean to you?

Rio Tinto’s strength is built upon its rich

history, and it has been important to explore

our past in our anniversary year to inform our

future. Our story is full of achievements and

failures we must learn from, but there is one

consistent theme: the spirit of innovation and

continuous improvement. This is what our

purpose – finding better ways to provide the

materials the world needs – is all about.

Our people have been doing this from the

beginning, and reaching this milestone has

reinvigorated our commitment to our purpose.

It has also been a reminder that we are a

long-term business. We are laying the

groundwork to ensure Rio Tinto is successful

not just today but for another 150 years.

We remained focused on our four

objectives in 2023. How are we doing

on our journey to best operator?

We need to be in the best shape possible to

capture the opportunities ahead of us, which

is why we are investing in the long-term health

of our people, assets, and ore bodies. By

prioritising these areas, we are creating the

conditions for consistent operational and

financial performance.

Evolving our culture is fundamental to how we

unlock performance. We have continued to

implement the 26 recommendations

of the Everyday Respect Report, and we are

embedding best practices and empowering

our people by deepening the rollout of

the Safe Production System (SPS). This is a

multi-year process, but it is already having a

profound impact. SPS has delivered real

improvements in our Pilbara iron ore

operations, realising a 5 million tonne

production uplift in 2023 and on target to

deliver another 5 million tonnes in 2024. At the

same time, Oyu Tolgoi is an example

of what becoming best operator looks like.

Less than a year since we started

underground production, we are well on track

to ramp up to 500,000 tonnes of copper per

annum, from 2028 to 2036 from this world-

class operation.

From the Chief Executive

“Nothing is more important than the safety of our employees, contractors and communities. We remain committed to evolving our culture and processes to ensure everyone goes home safely every day.”

Our Chief Operating Officer Arnaud Soirat was

instrumental to the success of SPS and Oyu

Tolgoi. Arnaud stepped down at the end of

January 2024 ahead of his retirement,

and I want to thank him for his incredible

contribution and dedication to Rio Tinto for

more than a decade.

How is striving for impeccable ESG

helping us meet customer

expectations?

Our customers increasingly tell us they

want sustainable, traceable, and transparent

low-carbon materials, as well as help

decarbonising their own value chains.

Our strategy and commitment to the highest

environmental, societal and governance

standards positions us to meet these aims.

Our Boron operation became the first open pit

mine to fully transition its heavy machinery to

renewable diesel, and we had breakthroughs

including piloting our BlueSmelting TM technology,

which reduces emissions from processing

ilmenite into titanium dioxide.

More broadly, our approach to environmental,

social and governance (ESG) is informing our

decision-making as we develop projects

including Oyu Tolgoi and Simandou. We are

working closely with communities in areas such

as biodiversity and water management, and to

help realise the full opportunities for economic

development at a national and local level. By

working to the highest ESG standards and

utilising our STARTTM blockchain technology, we

are providing customers with the sustainable and

traceable products they expect.

How is progress on excelling in

development positioning the business

for the future?

Excelling in development is all about shaping our

portfolio for the future. We have an attractive

pipeline and considerable momentum to grow in

the materials essential for the energy transition.

We are further strengthening our Iron Ore

business with key projects in the Pilbara, and in

Guinea we hit major milestones to help us unlock

Simandou, the world’s largest known untapped

source of high-grade iron ore. I visited Guinea in

October and was impressed by how quickly early

works are progressing as we move closer to full

sanction.

In our Aluminium business, we announced an

investment of $1.1 billion to expand our state-

of-the-art AP60 smelter, replacing the Arvida

smelter. We also launched into the rapidly

growing North American market for recycled

aluminium with Matalco, a joint venture that

develops our position further along the

value chain. We remain on track to deliver

1 million tonnes of copper per annum by

the end of the decade, with considerable

progress at Oyu Tolgoi underground,

expansion pathways at Kennecott, the

continued development of Resolution, and

further options with La Granja and Winu.

Further down the pipeline, we have finalised

Nuevo Cobre, a joint venture with Codelco, to

actively explore for copper in Chile.

Critical minerals are vital to achieving a net

zero future, and we continue to explore

opportunities in this area. Highlights from

2023 include steadily advancing the Rincon

lithium project in Argentina, and the

acquisition of the Burra TM Scandium Project in

New South Wales, Australia, a high-grade

scalable resource that could produce up to 40

tonnes per annum of scandium oxide.

How have we strengthened our social

licence this year?

Our social licence underpins all our objectives –

we cannot function as a business without it and

our understanding of this is deepening across

our teams. My conversations with stakeholders

this year suggest we have come a long way to

rebuild trust. However, this is an ongoing journey,

and it is ultimately up to others to judge how we

are performing. We need to continue to listen to

voices from the communities where we operate

and engage with civil society organisations to

understand what we can do better.

Part of this development is having greater

transparency. In March we published an

independent report based on an audit of our

Cultural Heritage Management performance.

The report helped us identify target areas

for improvement, such as a sustained focus

on community engagement throughout

the life of our operations. We have started

taking a more community-led approach,

with co-management and co-development

of sites becoming an embedded part of our

process from the beginning.

We continued to work closely with Indigenous

Peoples this year to ensure better outcomes for

all stakeholders. This has involved partnering for

economic prosperity, such as increasing

opportunities for Pilbara Aboriginal Businesses

as construction progresses at Western Range.

Other highlights include working with the

Yindjibarndi Energy Corporation to explore

opportunities for renewable energy projects and

signing the Aganow agreement to enable greater

participation by the Naskapi Nation of

Kawawachikamach in Iron Ore Company of

Canada activities.

What are your main focus areas

for 2024?

Rio Tinto is at the heart of the energy transition

and facing an opportunity-rich world. At the same

time, we are still seeing powerful traditional

drivers of demand and our core markets are

growing. Global trends such as re-

industrialisation and a renewed emphasis on

supply-chain security are presenting even more

opportunities. As both a mining company and a

processing company with a global footprint and a

portfolio built for the future, we are well-

positioned to capture these over the long-term.

Our focus will remain on securing the

enduring health and success of the business,

with an emphasis on disciplined growth,

improving operational performance, exploring

options along the value chain, and investing in

the technologies that will allow us to reach our

decarbonisation targets.

We’ll continue our journey of culture change,

building an environment of trust where

everyone feels safe, respected and

empowered to deliver results. This is what will

drive our performance and enable us to keep

delivering for all our stakeholders in 2024.

Creating value by living our purpose

Our purpose is at the core of everything we do. It inspires our efforts and guides our decisions.

Finding better ways™

to provide the materials the world needs.

Our strategy will move our business, customers, partners and the world forward.

Our objectives guide our everyday work to achieve our strategy and drive progress.

Our people, culture and values createan environment where everyone feels safe,

respected and empowered, so we can continue to find better ways together.

Our business model helps us deliver value that matters to our stakeholders.

Most importantly, effective and responsive corporate governance manages our performance.

Tracked and measured

We measure our strategic progress through a

mix of financial and non-financial key

performance indicators (KPIs) that align with our

purpose and strategy. In addition to key financial,

operational and safety performance metrics, we

track progress across ESG themes including

gender diversity and greenhouse gas (GHG)

emissions.

Overseen by our Board

Our success depends on effective and

responsive corporate governance. Our Board

oversees how we deliver on our purpose and

strategy and monitors our culture to make sure

it aligns with our values. The Board

also oversees how we manage social and

environmental risks and monitors our

performance to ensure we generate value

for shareholders while our business

contributes to wider society.

Reflected in remuneration

Our Remuneration Policy is designed to

support the delivery of our strategy in a

responsible and sustainable way that reflects

our purpose and values. It considers our

financial and safety performance, our culture

and our ESG measures, such as accelerating

decarbonisation and strengthening our social

licence. The main elements include base

salary, short-term incentive plan (STIP) and

long-term incentive plan (LTIP).

For more informationabout our business model see riotinto.com/ourbusiness.

Repurpose & renew

We design and operate our assets

to leave a positive legacy when

operations cease. We engage our

stakeholders in rehabilitation

planning and we review each

site’s plans annually.

Explore & evaluate

We use new and advanced

technologies to explore,

discover and deliver attractive

growth opportunities, focusing

on materials essential for the

energy transition.

Market & deliver

We market our products to meet

the diverse needs of our

customers and maximise value

for our business, delivering

them safely, reliably and

efficiently through our global

logistics network.

Develop & innovate

We are an industry leader in

research and development

and partner with customers,

technology providers, academia

and local communities to

develop new projects and more

efficient, safer and sustainable

production pathways.

Mine & process

We own and operate mining and

processing operations spanning

a range of countries and

commodities. We are a global

industry leader, focused on safe,

productive and environmentally

responsible performance.

Finding better ways™ in 2023

Our purpose in action

Continuous improvement and innovation are part of our DNA. Right across the business, we are finding better ways to provide the materials the world needs while reducing our carbon footprint, developing technologies needed to make net zero a reality, and continuing to support our people and the communities where we live and work.

For more highlights from 2023see our end-of-year video at riotinto.com/annualreport.

1. Green hydrogen is produced using renewable energy.

For more information about BioIronTM see riotinto.com/bioiron.

Becoming best operator with our Safe Production System

We are implementing lessons from our own pockets of excellence. We continue to see improved production efficiency,

safety and engagement at the sites where we have deployed our Safe Production System (SPS).

Our stakeholders

Through partnerships and

collaboration, we gain the

benefit from the expertise

and insight of others.

Our stakeholders give us

a competitive edge and

encourage us to work more

thoughtfully and responsibly.

By engaging with them and

listening to their views, we

can make a more meaningful

contribution to society

while becoming a more

sustainable company.

Section 172(1) statement

This stakeholder section, together

with our stakeholder pages in the

Governance section (pages 96-100),

explains how the Board takes

account of stakeholder interests.

These comprise our “Section 172(1)

statement”.

Workforce

We are creating an environment of trust,

where our people feel safe, respected and

empowered to be their best, to help us attract,

retain and grow great talent and deliver results.

In 2023, we focused on initiatives to help our

people better align with our strategy and culture

journey; we updated our incentive and

performance management framework,

refreshed our Code of Conduct and continued

to develop our leaders.

Our people survey is one of the tools that helps

us understand how our employees experience

working for us. In our most recent survey

conducted in October 2023, our employee

satisfaction rating (eSAT) increased by 1 point

(73 to 74).

55,000¹

Employees across six continents

(2022:52,000)

Employee satisfaction score

(eSAT)

(2022:73)

Civil society organisations

One way we can help address the world’s

many complex environmental, social and

governance challenges, such as climate

change, human rights violations, bribery and

corruption, is through collaboration with civil

society organisations (CSOs) and other

stakeholders. Our senior leaders regularly

engage with CSOs, and although our opinions

may differ from time to time, we respect their

views and value the challenges they set for us

to improve performance across our business.

We hold yearly roundtable discussions with

CSOs in Australia, Europe and North America.

Organisations participated in our 2023 CSO

roundtable discussions in person

Roundtables held in Washington D.C.,

London and Sydney in 2023. A wide range

of topics was discussed, including nature

targets; free, prior and informed consent

(FPIC); community support; our operations

in Madagascar; and Resolution Copper.

Communities

Communities are the places and the people

who make up where we live, work and call

home – from the Gobi Desert in Mongolia, to

KwaZulu-Natal, South Africa, and Saguenay–

Lac-Saint-Jean, Quebec, Canada. We strive to

partner consistently and honestly with

communities on a range of issues, such as

jobs and local procurement, as well as the

impact of our operations on the local

environment. Over the past few years, we

have focused on our own standards of open

and transparent engagement. We are

targeting for all sites to co-manage cultural

heritage with communities and the knowledge

holders, by 2026.

$84.0 m

Voluntary social investment in 2023

(2022: $62.6 m)

A$725m

Spent with Indigenous businesses in

Australia in 2023

(2022: A$565m)

Governments

Governments – national, state and provincial,

and local – are important stakeholders for our

business. They regulate our operations, are

among our commercial partners, and receive

revenue from our taxes and royalties. Our

economic contribution can be significant for

national budgets and local development

priorities, such as job creation and skills

training. We engage with officials on issues

such as how we explore, mine and process ore;

conditions of land tenure; health, safety and

environment; taxation; intellectual property;

competition and foreign investment; data

privacy; conditions of trade and export; and

infrastructure access.

$76 bn

Paid in taxes and royalties globally over the

past ten years

$4.6 bn²

Corporate tax paid in 2023

(2022: $6.9 bn)

$4.1 bn²

Corporate tax paid in Australia in 2023

(2022: $6.1 bn)

1.Includes our total workforce based on managed operations (excludes the Group’s share of non-managed operations and joint ventures) as of 31 December 2023 rounded to nearest 1,000.2.When combined with royalties and other taxes, and with our share of taxes and royalties paid by equity accounted units, this resulted in payments to governments of around $8.5 billion (2022: $10.8 billion), including around $6.5 billion paid in Australia (2022: $8.5 billion).

Investors

Our investors include pension funds,

global fund managers, bondholders,

and tens of thousands of individuals

around the world, including approximately

34,000 Rio Tinto employees.

It is important that we understand our investors’

needs and their vision for the company. We

therefore communicate and engage extensively

with them throughout the year, both in person

and through virtual forums across multiple

jurisdictions. In addition to our annual general

meetings in the UK and Australia, we also held

our 2023 Investor Seminar in Sydney, where

our Executive Committee provided an update

on our progress against our strategy, our

Simandou project and how we are advancing

our decarbonisation program.

$7.1 bn

Total dividends declared to shareholders

(2022:$8.0 bn)

34,000

Rio Tinto employees own shares

in the company 1

(2022: 30,000)

Customers

Our customers’ needs are central to our

operational decision making. Using the insights

generated from everything we buy, sell and

move around the world, our Commercial team

works closely with customers to ensure we

deliver products that meet their specific

requirements. Periodically, we ask our

customers for their feedback via a survey and

the insights help us deliver new and better

products and services. Where possible, we

partner to co-develop solutions that support our

environmental, social and governance

commitments. For example,

in 2023 we significantly expanded our

low-carbon portfolio by forming the Matalco

joint venture to produce and market recycled

aluminium in North America.

1,900

Customers across multiple industries

and countries

$54.0 bn

Consolidated sales revenue in 2023

(2022: $55.6 bn)

543 Mt CO 2 e

Scope 3 emissions from the processing

of our products

(2022:549 Mt CO 2 e)

Suppliers

Engaging with suppliers is an important way in

which we can have a positive impact on

communities. We partner with, and help

develop, local businesses where we operate,

so they can share in our success. Having

good relationships with our suppliers also

helps us take part in technological and market

developments, and we continually strive to

improve our supplier experiences. As with our

customers, we periodically ask our suppliers to

share their feedback in a survey to better

understand how we can develop our

collaboration. We work closely with our

suppliers to create innovative partnerships,

such as our partnership with Neste and Rolls-

Royce that resulted in our Boron site in

California becoming the first open pit mine to

operate heavy machinery running entirely on

renewable diesel.

$20.8 bn

Spent with suppliers globally in 2023

(2022:$22.5 bn)

26 Mt CO 2 e

Scope 3 emissions from all procurement

(2022:26 Mt CO 2 e)

1. Shareholders, primarily through myShare, our global employee share plan.

Western Range spends

A$1 billion with WA

businesses

We spend billions of dollars with local

suppliers across Western Australia and the

Pilbara every year, helping support thriving

communities across the State by providing

local jobs for local people.

Western Australian businesses have so far

been awarded contracts totalling A$1 billion as

construction progresses at our Western Range

mine in the Pilbara, a joint venture together

with China Baowu Steel Group.

Construction at Western Range, which will

help sustain production from our existing

Paraburdoo mining hub, started in 2023 and is

expected to support around 1,600 jobs.

For more information about our local procurement strategy see riotinto.com/sustainableprocurement.

Strategic context

Our strategy is informed by a deep analysis of the interplay of global megatrends, explored

through the lens of plausible scenarios. These set the context for our industry and

underpin our portfolio choices and how we operate. Our success relies on our ability to

strengthen our resilience while building partnerships and capabilities that enable us to

grow profitably.

New industrial policies and

regional competition

In the last two years, we have entered a new

era of industrial policies characterised by

increasing government intervention in the

market and unprecedented levels of subsidies

and policy support, specifically tailored

towards de-risking supply chains and

supporting the energy transition.

Faced with inflationary pressures and

macroeconomic uncertainty, regional and

national governments are attempting to

balance different societal choices, from

accelerating decarbonisation to strengthening

local manufacturing and enhancing supply

security. This has created an increasingly

fragmented and competitive industrial and

climate policy landscape.

Oyu Tolgoi copper-gold mine, Mongolia.

Industrial policies are becoming an

increasingly important determinant of

commodity prices, regional premiums and

project economics.

Policies designed to accelerate the energy

transition are bolstering demand growth for

essential materials such as aluminium, copper

and lithium. To mitigate supply bottleneck risks

and support reindustrialisation, governments

are also promoting the development of new

mining and processing (smelting and refining)

projects via financing or regulatory support.

While this is creating new growth opportunities

for existing producers, it is also incentivising

competition and could result in increasing

risks, such as tighter trade barriers and

resource nationalisation, as value chains

reconfigure.

Energy transition and climate

action

While global efforts to tackle climate change

have continued, the long-term pledges made

by governments and companies still fall short

of what is required to reach net zero emissions

by 2050, to limit the global temperature rise to

1.5°C above pre-industrial levels.

In response, new government policies

and initiatives, such as the US’s Inflation

Reduction Act(IRA), the EU’s Carbon Border

Adjustment Mechanism (CBAM) and Australia’s

Safeguard Mechanism, have been implemented

to support decarbonisation and tackle climate

change.

While these policies are helping accelerate

regional deployment of renewables and

fossil fuel alternatives, several industries still

face significant technology and capital

constraints. This is particularly apparent for

continuous, energy-intensive processes

requiring both large-scale renewables and

grid-scale firming solutions.

As the energy transition progresses,

long-standing materials supply chains will be

reconfigured, creating opportunities and risks

for metals and mining participants. Given

current technology and regulatory hurdles,

processes requiring firm power, such as

aluminium and steel production, will prize

access to hydroelectricity or continue to rely

on nuclear or fossil fuel-based electricity to

offset variability in wind and solar energy.

Existing operations with access to hydropower

could see significant cost advantages,

particularly if carbon penalties increase. By

contrast, industries that can use intermittent

power or green hydrogen 1 will have an

advantage in areas rich in solar and wind

resources.

ESG priorities and evolving

customer needs

Consumers are becoming more

ESG-conscious in their purchasing

behaviours, taking into consideration a

range of themes beyond carbon, including

biodiversity, water, supplier ethics and

integrity, transparency and impacts of

operations and broader value chains on

local communities and society.

With the technology challenges and long

development timelines associated with

decarbonising large-scale processes,

customers in developed markets are

increasingly focusing on securing recycled

materials as they look to reduce their

value chain emissions as well as their

environmental and social footprints.

Community engagement, Simandou, Guinea.

This trend is being further supported by new

industrial policies that have set recycled

content targets and ESG performance hurdles

to access government support.

While recycling presents a direct risk to

primary metal demand growth, it also offers

unique growth and commercial opportunities

for mining companies that have downstream

processing capabilities. These companies can

meet customers’ diverse needs by providing

both high-quality primary products (essential

for some applications) and recycled products

with reduced footprints.

1. Green hydrogen is produced using renewable energy.

Our strategy

Climate change and the low-carbon transition are at the heart of our strategy. We aim to strengthen

our resilience to the physical effects of climate change and secure new opportunities and partnerships

created by changing market fundamentals. Our strategy is designed to deliver strong returns and

growth options while reducing the environmental and social impacts of our business and broader

value chains.

Our strategy has three pillars

Grow in materials essential for the

energy transition

The energy transition will create significant

additional demand for copper, aluminium,

lithium and a range of other critical minerals.

We aim to grow in these commodities as well

as in the supply of high-grade, high-quality

iron ore, essential for low-carbon

steel production.

Accelerate the decarbonisation

of our assets

Due to the scale of our mining and processing

activities, we have significant Scope 1 and 2

emissions (32.6 Mt CO 2 e). We are working

with stakeholders to find commercial and

technological solutions to reduce these by

50% (relative to 2018 levels) by 2030. We

anticipate a total capital spend on

decarbonisation of $5-6 billion by 20301.

Develop products and technologies

that help our customers decarbonise

Our Scope 3 emissions were 578 Mt CO 2 e

in 2023, over 94% of which was from the

downstream processing of our products. We are

partnering with our customers and suppliers and

investing in research and development to

decarbonise our broader value chains and bring

forward their targets, to achieve net zero

processing emissions by 2050.

1. Excluding the purchase of offsets.

Our four objectives

Our strategy is centred around our four objectives: to be the best operator, to achieve impeccable ESG

credentials, to excel in development and to strengthen our social licence. These essential components will

help improve our productivity, reduce capital intensity and assist us in becoming a partner of choice for a

range of stakeholders globally.

Our culture is a key enabler of our strategic

ambitions. It guides us on the journey to

best operator, makes us a better partner and

helps us solve problems as we work towards

net zero.

By building an environment of trust

where everyone feels safe, respected and

empowered, we can attract and retain curious

people who care about their work and

colleagues and are courageous about finding

better ways to do things. This is how

we will deliver on our purpose.

Best operator

We aim to improve our operational

performance by identifying and replicating best

practices across our portfolio and empowering

our people to make positive changes.

We will strive to align our business priorities

with society’s expectations and ensure

sustainability considerations are at the

core of every decision we make.

We will expand and progress our pipeline

of growth opportunities and build capabilities

and partnerships to execute projects

and establish a strong track record of capital-

efficient delivery.

We will build meaningful and enduring

relationships and partnerships with our

stakeholders by listening, learning and

respecting diverse perspectives.

Progressing our strategy

1. Subject to the remaining conditions being met including receipt of regulatory approvals.

2. The estimated annualised capacity of approximately 60 million dry tonnes per annum iron ore for the Simandou life of mine schedule was previously reported in a release to the Australian

3. The production target of around 250 thousand tonnes of additional mined copper over the next ten years (2023 to 2033) at Kennecott was previously reported in a release to the Australian

Securities Exchange (ASX) dated 20 June 2023 titled “Rio Tinto invests to strengthen copper supply in US”. Rio Tinto confirms that all material assumptions underpinning that production target

For more informationabout our projects see the Portfolio management section on pages 30-31.

Progressing our four objectives

Best operator

Focus

Safety and operational performance.

Safety

Safety is our top priority. Our focus is on eliminating

fatalities, preventing catastrophic events and

reducing injuries. While we had zero fatalities at our

managed operations in 2023, tragically four

colleagues died in a plane crash while travelling to

our Diavik mine in January 2024. Our all-injury

frequency rate (AIFR) was 0.37 in 2023

(compared to 0.40 in 2022). We are strengthening

our safety maturity model (SMM) by including

health and environment risks, and we are gaining

greater insight into the culture at each site so we

can take actions to improve.

Operational performance

We continued rolling out the Safe Production

System (SPS) across our assets, engaging our

people to identify issues and improvement

opportunities and develop and share best

practices across the Group.

We have deployed SPS at ~60% of our sites to

date, with implementation at various stages of

maturity. Key performance highlights include a 5

million tonne uplift in iron ore production and a 25%

improvement in AIFR globally in the second half of

2023 (when compared to the first half), at sites

where SPS has been deployed.

In 2023, we announced plans to increase

annual iron ore capacity at Gudai-Darri in

Australia by seven million tonnes to 50 million

tonnes at a cost of $70 million through

incremental productivity gains.

We also initiated a number of projects designed

to improve the Group’s asset management

performance. These included building up

capabilities in our Asset Management Centre of

Excellence, improving critical risk maintenance

plans and spare parts programs and bolstering

shutdown support.

Safety

In 2024, we will strengthen the way we manage

our critical risks, our primary fatality elimination

tool which helps ensure that controls are in place

and working where there is a fatal risk. We will

continue to enhance the understanding and

impact of critical risk management by focusing on

quality conversations and verifications at our

global operations.

We have strong standards and processes to

approve air operators, including regular audits

and engagements to make sure aviation safety

systems match our expectations of safety and

care for our people. In 2024, we will continue

to work with all our sites to actively review

compliance with aviation safety tools and controls

to provide further assurance on top

of our existing processes.

We will also evolve SMM and evaluate its impact

on individuals’ mindsets, rather than simply

verifying safety systems and processes. This will

be strengthened through assessor training, and

how we perform SMM assessments at our sites.

Operational performance

The rollout of the SPS will continue in 2024.

Our focus will be on working with our product

groups to double down on impacts at existing

high-value sites, rather than new deployment

launches. We will also work on significant

maturity uplift of best practices, specifically

problem solving, and completion of site-wide

deployment and end-to-end systems. We will

continue to work with asset management to

integrate efforts to rapidly bring assets back to

health so they can deliver industry-best

Relevant KPIs

All-injury frequency rate

Underlying earnings & underlying EBITDA

Net cash generated from operating activities

Underlying return on capital employed

Free cash flow

Net (debt)/cash

Scope 1 and 2 greenhouse gas emissions

Gender diversity

Total shareholder return

Focus

Decarbonisation, nature, water and waste

management, closure, communities, workforce

diversity, culture and leadership.

We continued to progress our six large carbon

abatement programs focused on repowering

our Pacific Aluminium operations, renewables,

ELYSISTM, alumina process heat, minerals

processing and diesel transition. We also

formed new partnerships with our customers

to reduce value chain emissions.

We also identified several opportunities for

investment in large-scale nature-based solutions

with the potential to halt and reverse nature loss,

support positive, sustainable change for

communities and address climate change.

In 2023, we progressed a number of

innovative projects designed to reduce our

environmental footprint and create new

revenue streams through the adoption of more

circular practices. These spanned the

extraction of by-products, recycling and finding

new life for our closure sites.

Social

Our work in 2023 focused on delivering our new

communities and social performance strategy,

underpinned by updated standards, targets and

vision for the business. We continued to work on

improving our approach to engage and partner

with our host communities and better manage

cultural heritage. In 2023, we completed an

independent Cultural Heritage Audit, providing a

systematic review of all the heritage sites that we

manage worldwide.

In 2023, we continued to drive leadership,

management and ethics and compliance

improvements, with a focus on building a

thriving culture, implementing the learnings

from the Everyday Respect Report, and

improving our transparency and practices.

In 2023, the Business Conduct Office (BCO)

launched Care Hub, an independent care unit

providing support, care and resolution options

to anyone affected by harmful behaviours.

Care Hub currently supports matters reported

through myVoice.

72% of senior leaders have now completed

Voyager, our senior leadership program. We

also increased the offering of the Leading

Sustainable Corporations and Leader as

Coach programs to further support

development and our cultural journey.

We will define our next round of climate and

nature targets in 2024, drawing on knowledge

and experience from across the business and

from our external partners, to develop more

holistic commitments across these key areas.

We will continue to progress our emissions

reduction targets to build upon those currently in

place, considering learnings from the approach

we have taken with our water targets.

Social

Guided by our 2026 Communities and Social

Performance Targets, a core 2024 focus is for

our people in high human rights risk roles to

complete job-specific and general human

rights training. We will also continue to work

together with communities to manage and

protect heritage and find ways to deepen the

impact of our social investment through

strategic, outcomes-focused partnerships.

We will continue our cultural journey towards an

inclusive and diverse workplace led by our values

of care, courage and curiosity focusing in

particular on safety, leadership and employee

listening. In 2024, we will be working to clarify our

measures to demonstrate progress.

For more informationabout our ESG progress see pages 40-77.

Relevant KPIs

All-injury frequency rate

Total shareholder return

Scope 1 and 2 greenhouse gas emissions

Gender diversity

Focus

Project development, future options (pipeline

projects, exploration and M&A), technology

development and deployment.

Project development

We have continued to advance a number of

projects across the business (see page 17),

including making significant progress at the

Simandou iron ore project in Guinea in

collaboration with our joint venture partners.

In our iron ore business, Gudai-Darri reached

nameplate capacity in the second quarter with

the current wave of replacement mines like

Robe Valley in production and Western Range

commencing construction.

In our aluminium business, we announced

investment in a significant AP60 expansion.

We also acquired a 50% equity stake

in Matalco from Giampaolo Group for

$738 million to become a leader in recycled

aluminium supply in North America.

In our copper business, we achieved first

sustainable production from the Oyu Tolgoi

underground mine with associated

infrastructure ramping up on schedule. Work

has also progressed to expand underground

operations at Kennecott.

Pipeline projects

We advanced studies and permitting at a

range of greenfield projects including

Resolution and Winu, and formed a joint

venture with First Quantum to help unlock the

La Granja copper project.

We also continued to fill and progress our

pipeline of exploration opportunities. We

entered a joint venture (Nuevo Cobre) with

Corporación Nacional del Cobre de Chile

(Codelco) to explore and potentially develop

copper assets in Chile’s prospective

Atacama region.

Technology

We continued to progress our technology

roadmap while building our technical

capabilities and partnership networks. In 2023,

we progressed 130 priority research and

development projects, including 32 growth-

focused projects on discovering new ore

bodies, reducing capital intensity and

unlocking new revenue streams.

We will continue to explore new approaches,

technologies and partnership opportunities to

discover, progress and develop projects to

support future growth in close consultation

with communities.

We will manage our pipeline of opportunities

to deliver high-quality growth options, with a

strong focus on materials needed in a

decarbonising world.

Future priorities include development of the

mine, rail and port infrastructure for Simandou

in Guinea in collaboration with our partners,

construction of the Rincon lithium starter plant

in Argentina, management of key closure

projects at Argyle and Gove and optimisation

of the next tranche of replacement mines in

the Pilbara.

We will continue to explore and evaluate new

mining, processing, technology and renewable

energy opportunities to ensure we maintain a

high-quality portfolio of short-, medium- and

long-term growth options that can deliver

strong and resilient cash flows throughout the

cycle.

For more informationabout our capital projects and future options see pages 30-31.

Relevant KPIs

Total shareholder return

Underlying return on capital employed

Free cash flow

Net (debt)/cash

Scope 1 and 2 greenhouse gas emissions

Focus

Adopting a multi-stakeholder approach for

external engagements to deepen connections

and build mutually beneficial partnerships.

Building cultural capability and competency

across the Group to ensure we fully understand,

value and partner with our host communities.

Communities and partners

In 2023, we piloted a Group-wide approach to

community perception monitoring that brings

the voices of communities into the business,

supporting deeper, more effective and data-

driven social performance.

We also signed an MoU with the YEC to

explore opportunities to collaborate on

renewable energy projects on Yindjibarndi

Country in the Pilbara region of Western

Australia.

The Iron Ore Company of Canada (IOC) and

the Naskapi Nation of Kawawachikamach

signed an agreement to establish a mutually

beneficial relationship based on dialogue,

collaboration and trust over the coming

decades. This socio-economic agreement

aims to create opportunities for greater

participation by the Naskapi People in IOC’s

activities through training and development,

employment, collaboration on environmental

projects, and procurement.

Communities and partners

Our future priorities are informed by our 2026

Communities and Social Performance (CSP)

targets which help us monitor progress toward

the core objectives of our CSP strategy. Our

targets guide progress across the business as

well as for individual assets, which will

continue to maintain local targets and metrics,

developed in consultation with local

communities.

In 2024, a core focus is on ensuring all

employees in high human rights risk roles

complete job-specific and general human rights

training. We will also continue to progress longer

term targets including by 2026 for:

–all sites to co-manage cultural heritage with

communities and knowledge holders

–70% of total community investment to be

through strategic, outcomes-focused

partnerships.

Understanding and acting on the perceptions of

communities who host our operations is

essential. We will roll out our new community

perception monitoring program that we piloted in

2023 to all our assets throughout 2024 and 2025.

We continue to find better ways to work

with communities and Indigenous Peoples,

particularly in how we protect heritage.

Our approach aims to enhance our

understanding and appreciation of cultural

heritage and ensure the voices of communities

inform our planning and decision making.

For more informationabout our community engagement see pages 66-70.

Relevant KPIs

Total shareholder return

Scope 1 and 2 greenhouse gas emissions

Gender diversity

Key performance indicators

We use a range of financial and non-financial metrics to measure Group performance against our four

objectives: to be best operator; to achieve impeccable environmental, social and governance (ESG)

credentials; to excel in development; and to strengthen our social licence.

Alignment to our four objectives and associated risks key

All-injury frequency rate

(AIFR)

per 200,000 hours worked

risks

ll

We define AIFR as the number of injuries per

200,000 hours worked by employees and

contractors at the operations that we manage.

It includes medical treatment cases, restricted

workday and lost-day injuries.

The safety and wellbeing of our employees

and contractors is our number one priority.

We are committed to having a safe work

environment and our focus is on eliminating

fatalities, preventing catastrophic events and

reducing injuries. We continue to implement

our safety maturity model (SMM). By

implementing our systems, including SMM,

critical risk management (CRM) and the Safe

Production System (SPS), we are ensuring we

advance our safety culture and foster both

physical and psychological safety.

We continue to share learnings and

strengthen our partnerships with industry and

associated committees (such as the

International Council on Mining and Metals),

contracting partners and local communities

to improve health, safety and wellbeing

outcomes.

AIFR and SMM are included as performance

metrics in the safety component of the short-term

incentive plan (STIP) (see page 130-133).

Our AIFR was 0.37 in 2023, an improvement

from 2022 (2022: 0.40). While we had no

fatalities at managed operations in 2023,

tragically four colleagues died in a plane crash

travelling to our Diavik mine in January 2024.

We will renew focus on our critical risk

management program. We will also work on

embedding enhancements to the SMM.

(TSR)¹

measured over the preceding five years

(using annual average share price)

risks

llll

TSR is a combination of share price

appreciation (using annual average share

price) and dividends paid and reinvested to

show the total return to the shareholder over

the preceding five years.

Our strategy aims to maximise shareholder

returns through the commodity cycle, and TSR

is a direct measure of that.

TSR is reflected in the long-term incentive

plan (LTIP), measured equally against a

mining based index (the EMIX Global Mining

Index historically and from 1 August 2023

the S&P Global Mining Index) and a broader-

based index of large global corporates

(the MSCI World Index) (see page 134-135).

TSR performance over the five-year period

was driven principally by movements in

commodity prices and changes in the global

macro environment. Rio Tinto significantly

outperformed both the EMIX Global Mining

Index and the MSCI World Index over the five-

year period.

We will continue to focus on generating free

cash flow from our operations. This allows us

to return cash to shareholders (short-term

returns) while investing in the business

(long-term returns).

Underlying return on capital

employed (ROCE)

%

risks

ll

Underlying ROCE is a non-IFRS measure

defined as underlying earnings excluding net

interest divided by average capital employed

(operating assets). For more information and a

reconciliation of underlying ROCE to the

nearest comparable IFRS measure, see

Alternative Performance Measures (pages

289-294).

Our portfolio of low-cost, long-life assets

delivers attractive returns throughout the cycle

and has been reshaped significantly in recent

years. Underlying ROCE measures how

efficiently we generate profits from investment

in our portfolio of assets.

Underlying earnings, as a component of

underlying ROCE, is included in the STIP.

In the longer term, underlying ROCE also

influences TSR, which is included in the LTIP

(see pages 134-135).

Underlying ROCE decreased five percentage

points to 20% in 2023, reflecting the decrease

in underlying earnings driven by lower

commodity prices, and an increase in capital

employed due to capital expenditure and

acquisitions.

We will continue to focus on maximising

returns from our assets over the short,

medium and long term. We will invest with

discipline to strengthen our operations while

delivering growth in a decarbonising world.

1. The TSR calculation for each period is based on the change in the calendar-year average share prices for Rio Tinto plc and Rio Tinto Limited over the preceding five years. This is consistent with the

methodology used for calculating the vesting outcomes for Performance Share Awards (PSA). The data presented in this chart accounts for the dual corporate structure of Rio Tinto.

Underlying earnings¹ and

underlying EBITDA

Underlying earnings

Underlying EBITDA

risks

l

Underlying earnings and underlying EBITDA

are non-IFRS measures.

Underlying earnings represents net earnings

attributable to the owners of Rio Tinto,

adjusted to exclude items that do not reflect

the underlying performance of the Group’s

operations. For more information on these

exclusions and a reconciliation to the nearest

IFRS measures refer to Alternative

Performance Measures (pages 289-294).

Underlying EBITDA is a segmental

performance measure and represents profit

before tax, net finance items, depreciation and

amortisation. Exclusions from underlying

EBITDA and a reconciliation to the nearest

IFRS measures can be found in note 1.

These financial KPIs measure how well we are

managing costs, increasing productivity and

generating the most revenue from each of

our assets.

Underlying earnings are reflected in the STIP.

In the longer term, both measures influence

TSR, which is the primary measure for the

LTIP (see pages 134-135).

Underlying earnings of$11.8 billion were

$1.6 billion lower than in 2022. Underlying

EBITDA of$23.9 billion was$2.4 billion lower

than in 2022. The 9% decrease in underlying

EBITDA resulted from lower commodity prices

and higher operating unit costs partially offset

by improvements in sales volumes across our

portfolio.

We remain focused on cost control, in

particular maintaining discipline over fixed

costs to drive attractive margins and returns

across our portfolio.

1. Comparative information for year 2021 and 2022 has been

restated to reflect the adoption of narrow scope

amendments to IAS12 “Income Taxes”; refer to page 166

for details.

Net cash generated from

operating activities

risks

l

This KPI refers to cash generated by our

operations after tax and interest, including

dividends received from equity accounted

units and dividends paid to non-controlling

interests in subsidiaries.

This KPI measures our ability to convert

underlying earnings into cash.

Net cash generated from operating activities is

included in the STIP. In the longer term, the

measure influences TSR, which is included in

the LTIP (see pages 134-135).

Net cash generated from operating activities of

$15.2 billion was 6% lower than 2022. This

was primarily driven by price movements for

our major commodities and a modest rise in

working capital.

Free cash flow

risks

ll

Free cash flow is a non-IFRS measure defined

as net cash generated from operating

activities minus purchases of property, plant

and equipment, intangibles, and payments of

lease principal, plus proceeds from the sale of

property, plant and equipment, and intangible

assets. For more information and a

reconciliation of free cash flow to the nearest

comparable IFRS measure see Alternative

Performance Measures (pages 289-294).

This KPI measures the net cash returned by

the business after the expenditure of

sustaining and growth capital. This cash can

be used for shareholder returns, reducing debt

and other investment.

Free cash flow is included in the STIP. In the

longer term, the measure influences TSR,

which is included in the LTIP (see pages

134-135).

Free cash flow decreased by$1.3 billion to

$7.7 billion in 2023, primarily due to the

decrease in net cash generated from

operating activities and increases in sustaining

and growth capital expenditure.

Net (debt)/cash

risks

ll

Net (debt)/cash is a non-IFRS measure

defined as total borrowings plus lease

liabilities less cash and cash equivalents

and other liquid investments, adjusted for

derivatives related to net (debt)/cash (see note

19 of the financial statements). For more

information and a reconciliation of net (debt)/

cash to the nearest comparable IFRS

measure, see Alternative Performance

Measures (pages 289-294).

This KPI measures how we are managing

our balance sheet and capital structure.

A strong balance sheet is essential for

giving us the flexibility to take advantage

of opportunities as they arise, and for returning

cash to shareholders.

Net (debt)/cash is, in part, an outcome of free

cash flow, which itself is reflected in the STIP.

In the longer term, net (debt)/cash influences

TSR, which is reflected in the LTIP (see pages

134-135).

Net debt remained stable at$4.2 billion.

This included free cash flow of$7.7 billion,

offset by dividends of$6.5 billion and the

$0.7 billion acquisition of Matalco 1.

Scope 1 and 2² greenhouse

gas emissions

(equity Mt CO 2 e)

risks

llll

We measure our Scope 1 and 2 greenhouse

gas emissions on an equity basis. It includes

the equity share of Scope 1 and 2 emissions

from managed and non-managed operations

expressed in million metric tonnes of carbon

dioxide equivalent.

Climate risks and opportunities have formed part

of our strategic thinking and investment

decisions for over two decades. The low-carbon

transition is at the heart of our business strategy.

We focus on growth in the materials that enable

the transition, decarbonising our operations and

partnering with our customers to decarbonise

our value chains.

Climate change is included in our ESG metrics

for executive remuneration with a weighting of

10% of the STIP (see page 130). The carbon

abatement target set for 2023 was 10Mt CO 2 e.

A total of 29 projects progressed though a

development stage during the year, leading to

an above target performance of 12Mt CO 2 e

abatement expected by 2030. We have put

forward proposals to incorporate

decarbonisation related performance

measures into our LTIP as part of our 2024

Remuneration Policy. See page 134-135 for

further information.

Our Scope 1 and 2 emissions were 32.6 Mt

CO 2 e in 2023. This is 6% below our adjusted

2018 baseline of 34.5Mt CO 2 e and slightly

below our 2022 adjusted emissions of 32.7 Mt

CO 2 e (adjusted for acquisitions). Abatement

delivered by our projects in 2023 exceeded

emissions growth from higher production

giving a slight reduction in emissions on a like

for like basis. Our 2023 emissions were

slightly higher than our actual 2022 emissions

total of 32.3Mt CO 2 e due to the recent

acquisitions of additional equity in OT and

MRN. By 2025, we expect to have made

financial commitments to abatement projects

that will achieve more than 15% of Group

emissions. However, it is expected our actual

emissions abatement will lag this.

A summary of our Climate Action Plan can be

found on pages 52-55 of this Annual Reportas

well as in our 2023 Climate Change Report.

Gender diversity

representation of women within our workforce

risks

lll

Includes our total workforce based on

managed operations (excludes the Group’s

share of non-managed operations and

joint ventures)4.

Inclusion and diversity are imperative for

the sustainable success of the business.

Our sustained performance and growth rely on

having workforce diversity that is

representative of the communities in which we

operate and having a workplace where people

are valued for who they are and encouraged

to contribute to their full potential.

In 2023, our aspiration was to increase the

proportion of women in our workforce by two

percentage points. This aspiration was

included in our strategic scorecard for

executive remuneration, with a 5% weighting

of the STIP. For more information

see pages 130-131.

In this first year of the target, our

representation of women at Rio Tinto

increased from 22.9% to 24.3%, a 1.4

percentage point increase. We saw

improvements across all levels of the

organisation with senior leaders increasing

from 28.3% to 30.1%, and operations and

general support increasing from 16.2%

to 17.7%.

Our target to increase the proportion of

women in our workforce year-on-year creates

an important focus.

We are focused on implementing the

recommendations from the Everyday Respect

Report and we are confident that this will

improve both the attraction and retention of

women and other diverse

groups to Rio Tinto. For more information

about the Everyday Respect initiative see

riotinto.com/everydayrespect.

1. Subject to usual closing adjustments.

2. In 2023, we improved our carbon emissions reporting and now use the market-based method as our primary measure for assessing performance against our emissions targets. Further detail on

this change in reporting and the implications for our emissions baseline is available in our 2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology. Our adjusted scope 1 and 2

emissions (adjusted for acquisitions) have been disclosed for 2022.

3. In 2020, we updated our definition of our total workforce to include those employees who were unavailable for work (eg on parental leave) and temporary contractors. Note: less than 1% of the

workforce gender is undeclared.

4. Baseline reset with definition for 2020 to 2023 gender diversity.

Key performance indicators continued

Chief Financial

Officer’s statement

"In 2023, our financial results were resilient,

driven by an improvement in our operational

performance. As we shape our portfolio for the

future, we will continue to allocate capital with

discipline."

Uplift in operational performance

drives resilient financial results

In 2023, the Group’s total copper equivalent

production increased by just over 3% from

2022. This reflected the Gudai-Darri mine in

the Pilbara reaching its nameplate capacity

and deployment of our Safe Production

System. In addition, we benefited from our

increased ownership in Oyu Tolgoi as the

underground ramps up and the Kitimat

aluminium smelter returned to full capacity. In

a year in which average commodity prices

declined compared to the prior period, we

maintained our discipline on cost and capital,

leading to net cash generated from operating

activities of$15.2 billion, underlying earnings

of$11.8 billion and profit after tax attributable

to owners of Rio Tinto of$10.1 billion.

We maintained our financial strength, ending

the year with net debt of$4.2 billion, just 1%

higher than the position at the start of the year.

Our balance sheet strength enables us to run

our business consistently and maintain

investment, regardless of where we are in the

cycle. We have chosen not to have a net debt

target, but have a principles-based approach

to anchor the balance sheet around a single A

credit rating.

Consistent capital allocation,

balancing essential capex with

shareholder returns and growth

We will continue to allocate the capital

generated by our operations with discipline

and remain committed to attractive

shareholder returns. We have consistently

applied our financial framework, which has

been in place for more than a decade. It is

straightforward and serves us well,

underpinned by our three priorities. Essential

capex remains the first priority - sustaining

capex to ensure the integrity of our assets,

high-returning replacement projects and

investment for decarbonisation. The second

priority is the ordinary dividend within our well-

established returns policy, where we now have

an eight-year track record of paying out at

60% of underlying earnings. The third involves

testing investment in compelling growth

against debt management and further cash

returns to shareholders.

In 2023, capital expenditure rose by 5% to

$7.1 billion, reflecting the impact of inflation, in

particular on our sustaining capital. We

foresee a disciplined increase in capital

expenditure over the coming years as our

growth projects accelerate and

decarbonisation advances. This is critical to

ensure we have the right portfolio to keep

creating value for decades to come, so we can

benefit from increased demand from both

traditional sources and from the energy

transition. And we have more to come:

exploration and evaluation spend increased to

$1.2 billion, with greenfield spend mainly

focused on copper and lithium, while

evaluation prioritised projects with near-term

investment decisions, including the Simandou

iron ore project in Guinea. We expect

Simandou to become our largest capital

project over the coming years. It will be

constructed and funded by a co-development

partnership that will share the risk and deliver

higher returns than our cost of capital. We

believe that Simandou's high grade, high

quality product will position us well for the

decarbonisation of the steel industry.

Our financial strength means that we can

reinvest for growth, accelerate our

decarbonisation and continue to pay attractive

dividends through the cycle. For 2023, we are

returning 60% of underlying earnings to

shareholders, which equates to a full-year

ordinary dividend of 435 US cents per share,

or $7.1 billion.

Outlook underpins a strong Rio

Tinto for the long term

We are well positioned in an opportunity-rich

world where there has never been greater

demand for what we do, from mining to

processing. The work we are doing today is

creating a stronger Rio Tinto for years to

come.

Net cash generated from operating activities

$15.2 billion

(2022:$16.1 billion)

Profit after tax attributable to owners of Rio

Tinto (net earnings)

$10.1 billion

(2022:$12.4 billion)

Underlying earnings

$11.8 billion

(2022:$13.4 billion)

This is why our strategy is about growing in

the materials the world needs. A strategy that

will ensure Rio Tinto remains strong in the

short, medium and long term with the ability to

invest while always paying attractive returns.

Chief Financial Officer

Financial review

The Financial review and Business review for the year ended 31 December 2021 can be found on pages 32 to 39 and pages 42 to 71, respectively,

of our Form 20-F filed with the United States Securities and Exchange Commission on 25 February 2022.

Key financial highlights

the detailed reconciliations on pages 289 to 294. Our financial results are prepared in accordance with IFRS — see page 158 for further information.

2. Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income Taxes'.

Income Statement

To provide additional insight into the performance of our business, we

report underlying EBITDA and underlying earnings. Underlying EBITDA

and underlying earnings are non-IFRS measures. For definitions and a

detailed reconciliation of underlying EBITDA and underlying earnings to

the nearest IFRS measures, see pages 289 to 291, respectively.

The principal factors explaining the movements in underlying EBITDA

are set out in this table.

Resilient financial results, primarily impacted by

commodity price movements

In general, we saw lower prices for our commodities, as supply

improved, outpacing modest demand growth.

Movements in commodity prices resulted in a $1.5 billion decline in

underlying EBITDA overall compared with 2022. This was primarily from

lower pricing for our Aluminium business, driven by London Metal

Exchange (LME) prices, lower premiums and lower alumina pricing.

Higher realised pricing in our Iron Ore business was offset by lower

pricing for copper, diamonds and industrial minerals.

The monthly average Platts index for 62% iron fines converted to a Free

on Board (FOB) basis was 0.5% higher, on average, compared with

The average LME price for copper was 3% lower, the average LME

aluminium price was 17% lower while the gold price was 8% higher

compared with 2022.

The Midwest premium duty paid for aluminium in the US averaged $512

per tonne, 22% lower than in 2022.

Benefit from weaker local currencies in 2023

Compared with 2022, on average, the US dollar strengthened by 4%

against the Australian dollar and by 4% against the Canadian dollar.

Currency movements increased underlying EBITDA by$0.6 billion

relative to 2022.

Improvement in sales volumes but weaker mix

Higher sales volumes across the portfolio increased underlying EBITDA

by $0.7 billion compared to 2022. This was mostly attributable to a 3%

increase in Pilbara iron ore shipments, with the Gudai-Darri mine

reaching full capacity, partly offset by lower portside sales volumes

(down 4%). Higher copper sales were driven by the ramp-up of the Oyu

Tolgoi underground mine. This was partly offset by lower margins

achieved due to our product mix (-$0.3 billion) mainly associated with a

reduced proportion of Aluminium VAP sales and following high quality

diamond sales in 2022.

Impact of inflation offset by lower energy prices

We saw a$0.4 billion benefit to underlying EBITDA on the easing of

energy prices compared to 2022, mainly related to lower diesel prices at

our Pilbara iron ore operations, lower energy prices at our alumina

refineries and aluminium smelters, along with lower fuel prices in our

Marine business. General price inflation across our global operations

resulted in a net$0.4 billion reduction in underlying EBITDA, which

includes a $0.2 billion year-on-year benefit from the impact of inflation

on closure provisions.

Unit cost pressures persist due to temporary

operational factors and weaker markets: some easing

of market-linked raw material prices in second half

We remain focused on cost control, in particular maintaining discipline

on fixed costs, which are expected to be broadly flat in 2024. While

inflation has eased, we continued to see lag effects in its impact on our

third party costs, such as contractor rates, consumables and some raw

materials; we expect this to stabilise in 2024.

In the second half of 2023, we started to see some easing of market-

linked prices for key raw materials such as caustic, coke and pitch:

these benefited underlying EBITDA by $0.2 billion.

Temporary operational issues reduced underlying EBITDA by $0.6

billion. We saw a 20% rise in Copper C1 unit costs, primarily driven by

lower refined volumes at Kennecott following the planned rebuild of the

smelter and refinery. In Minerals, fixed unit cash costs increased at Iron

Ore Company of Canada (IOC), driven by lower production following the

wildfires in Northern Quebec in June as well as extended plant

downtime and conveyor belt failures in the third quarter.

Other cost pressures and weaker market demand lowered underlying

EBITDA by $1.0 billion. In Minerals, we experienced market weakness

for many of our products, in particular for TiO 2 feedstock, which gave

rise to lower volumes and resulting higher unit costs. In the Pilbara, a

higher mine work index and investment in mine maintenance and

system health were in part offset by cost efficiencies on delivering

increased volumes. In Aluminium, we invested in improving the integrity

across our integrated operations.

Overall, we continue to experience tightness in our key labour markets,

in Western Australia, Quebec and Utah, which raised costs above

general inflation. We also entered into a new collective bargaining

agreement at IOC and applied the new labour law in Mongolia.

We have also increased our investment in decarbonisation, research &

development, technology, along with communities and social investment

to deliver on our four objectives.

Increasing our global exploration and evaluation

activity

Our ongoing exploration and evaluation expenditure in 2023 was $0.9

billion, compared with guidance of $1.0 billion and $0.7 billion in 2022.

The increase was mainly attributable to increased activity at the Rincon

lithium project in Argentina and across the other product group projects.

We also expensed costs associated with the Simandou iron ore project

in Guinea (included in underlying EBITDA on a 100% basis): these

increased from $0.2 billion to $0.5 billion, with qualifying Simandou

costs being capitalised from the fourth quarter of 2023. These

expenditures were partly offset by a $0.2 billion gain on disposal of 55%

of our interest in the La Granja copper project in Peru to First Quantum

Minerals in 2023, leading to a net charge to the Income Statement of

$1.2 billion (2022:$0.9 billion).

Net earnings

The principal factors explaining the movements in underlying earnings and net earnings are set out below.

Financial figures are rounded to the nearest million, hence small differences may result in the totals. Comparative information has been restated to reflect the adoption of narrow scope amendments

to IAS12 'Income Taxes'.

Increase in tax on underlying earnings

The effective tax rate on underlying earnings in 2023 was 30%

compared with 26% in 2022. Consequently the tax on underlying

earnings increased by $0.2 billion despite a decrease in underlying

EBITDA. The rate in 2023 was in line with guidance, whereas the 2022

rate was lower due to the recognition of additional deferred tax assets in

respect of Oyu Tolgoi and adjustments in respect of prior periods.

Decrease in underlying earnings attributable to

outside interests

We completed the acquisition of Turquoise Hill Resources' non-

controlling interests in December 2022, which resulted in a reduction of

Oyu Tolgoi's earnings being attributable to outside interests and

therefore a higher share of income being attributable to Rio Tinto. The

ramp-up of exploration and evaluation spend at Simandou resulted in

greater charges attributable to outside interests given our 45.05%

effective interest in the project.

Items excluded from underlying earnings

The differences between underlying earnings and net earnings are set out in this table (all numbers are after tax and exclude amounts attributable to

non-controlling interests).

Financial figures are rounded to the nearest million, hence small differences may result in the totals. Comparative information has been restated to reflect the adoption of narrow scope amendments

to IAS12 'Income Taxes'.

On pages 290 to 291 there is a detailed reconciliation from net earnings to underlying earnings, including pre-tax amounts and additional

explanatory notes. The differences between profit after tax and underlying EBITDA are set out in the table on page 175.

We recognised net impairment charges of$0.7 billion (after tax), mainly related to our alumina refineries in Queensland, taken in the first half of

2023. This was triggered by the challenging market conditions facing these assets, together with our improved understanding of the capital

requirements for decarbonisation and the recently legislated cost escalation for carbon emissions. For a detailed explanation of the impairment

process, refer to note 4 to the Financial Statements in the 2023 Annual Report. The signing of key agreements with the Government of Guinea and

other joint venture partners for co-development of the infrastructure for the Simandou iron ore project gave rise to an impairment reversal trigger, for

amounts which had been fully impaired in 2015. Previously capitalised exploration and evaluation costs associated with the mine and retained items

of property, plant and equipment totalling$0.2 billion (after tax and outside interests) have therefore been reversed.

We excluded$1.1 billion of closure cost charges from underlying earnings, of which $850 million related to the closure update announced by Energy

Resources of Australia (ERA) on 12 December 2023. This was considered material and was therefore aggregated with other closure study updates

in the second half of 2023 which were similar in nature. These other updates were at legacy sites and at the Yarwun alumina refinery, which was

expensed due to the impairment earlier in the year.

We recognised an exchange and derivative loss of$0.3 billion (2022: loss of$0.1 billion). The exchange losses are largely offset by currency

translation gains recognised in equity. The quantum of US dollar debt is largely unaffected and we will repay it from US dollar sales receipts.

Our Canadian aluminium business completed an internal sale of assets. This resulted in the utilisation of previously unrecognised capital losses and

an uplift in the tax depreciable value of assets on which a deferred tax asset of$0.4 billion has been recognised.

Net earnings and underlying earnings refer to amounts attributable to the owners of Rio Tinto. The net profit attributable to the owners of Rio Tinto in

2023 was$10.1 billion (2022:$12.4 billion). We recorded a profit after tax in 2023 of$10.0 billion (2022:$13.0 billion) of which a loss of$0.1 billion

was attributable to non-controlling interests (2022 profit:$0.7 billion).

Underlying EBITDA and underlying earnings by product group

Financial figures are rounded to the nearest million, hence small differences may result in the totals and period-on-period change. Underlying EBITDA and underlying earnings are non-IFRS

measures used by management to assess the performance of the business and provide additional information which investors may find useful. For more information on our use of non-IFRS financial

measures in this report, see the section entitled "Alternative performance measures" (APMs) and the detailed reconciliations on pages 289 to 294.

Financial review continued

Simandou iron ore project

Costs attributable to the Simandou project in Guinea increased from

$0.2 billion to$0.5 billion (100% basis at underlying EBITDA level) on

ramp-up of project activity in 2023. We commenced capitalising

qualifying spend on Simandou from the fourth quarter of 2023, with $0.3

billion included in capital expenditure (100% basis).

Central and other costs

Pre-tax central pension costs, share-based payments, insurance and

derivatives were a$0.2 billion credit compared with a$0.4 billion credit

in 2022, reflecting movement on derivatives in the two years.

On a pre-tax basis, restructuring, project and one-off central costs were

mainly associated with corporate projects and were comparable to 2022.

Other central costs of$1.0 billion were 29% higher than 2022, reflecting

increased investment in decarbonisation, research & development and

technology. Our core central costs increased in line with inflation.

On an underlying earnings basis, net interest was a credit of$0.3 billion

(2022: credit of$0.1 billion), reflecting Rio Tinto's increased interest in

Oyu Tolgoi and the related financing items following the acquisition of

Turquoise Hill minorities in 2022.

Continuing to invest in greenfield exploration

We have a strong portfolio of greenfield exploration projects in early

exploration and studies stages, with activity in 18 countries across eight

commodities. This is reflected in our pre-tax central spend of

$0.3 billion. The bulk of this expenditure in 2023 focused on copper in

Australia, Chile, Colombia, Namibia, the United States and Zambia;

diamonds in Canada; nickel in Brazil, Canada and Peru; heavy mineral

sands in South Africa; and potash in Canada. We recently partnered

with Codelco on the Nuevo Cobre copper project in the prospective

Atacama region in Chile and with Charger Metals on the Lake Johnston

lithium project in the Yilgarn, Western Australia. This spend is offset by

the gain recognised on disposal of 55% of our interest in the La Granja

copper project ($0.2 billion, pre-tax).

Cash flow

Financial figures are rounded to the nearest million, hence small differences may result in the totals.

the detailed reconciliations on pages 289 to 294. Our financial results are prepared in accordance with IFRS — see page 158 for further information.

–$15.2 billion in net cash generated from operating activities,6% lower

than 2022, primarily driven by price movements for our major

commodities and a$0.9 billion rise in working capital, partly offset by

lower taxes paid. The cash outflow from the working capital increase

was driven by healthy stocks in the Pilbara, still elevated in-process

inventory at Kennecott following the extended smelter rebuild and

higher working capital at Iron & Titanium, reflective of weaker market

conditions. Receivables also reflected a 20% higher iron ore price at

2023 year end (vs 2022) that will be monetised in 2024. Operating

cash flow was also impacted by lower dividends, primarily from

Escondida ($0.6 billion in 2023;$0.9 billion in 2022).

–Taking into account the timing of payments in Australia, taxes paid of

$4.6 billion in 2023 were at a similar level to 2022, which included

around $1.5 billion of payments related to prior years.

–Our capital expenditure of$7.1 billion was comprised of$1.0 billion of

growth ($0.9 billion on a Rio Tinto share basis),$1.6 billion of

replacement,$4.3 billion of sustaining and$0.2 billion of

decarbonisation capital (in addition to$0.2 billion of decarbonisation

spend in operating costs). We expect to spend around $4.0 billion

each year on sustaining capital; spend in 2023 included the smelter

and refinery rebuild at Kennecott ($0.3 billion) and targeted

investment in asset health in Iron Ore and Aluminium. We funded our

capital expenditure from operating activities and generally expect to

continue funding our capital program from internal sources.

–$6.5 billion of dividends paid in 2023, being the 2022 final ordinary

and the 2023 interim ordinary dividends.

–$0.8 billion of acquisitions related to the Matalco recycling joint

venture and the Nuevo Cobre exploration joint venture with Codelco.

–The above movements, together with$0.4 billion of other

movements, resulted in net debt 1 remaining stable year-on-year at

$4.2 billion at 31 December 2023.

Balance sheet

Net debt 1 of $4.2 billion was unchanged at 31 December 2023

compared to the prior year end.

Our net gearing ratio 1 (net debt/(cash) to total capital) was 7% at

31 December 2023 (31 December 2022:7%). See page 294.

Our total financing liabilities excluding net debt derivatives at

31 December 2023 (see page 205) were$14.4 billion (31 December

2022:$12.3 billion) and the weighted average maturity was around 12

years. At 31 December 2023, approximately 68% of these liabilities

were at floating interest rates (75% excluding leases). The maximum

amount within non-current borrowings maturing in any one cale ndar

year is $1.65 billion, which matures in 2033.

On 7 March 2023, wepriced $650 million of 10-year fixed rate SEC-

registered debt securities and $1.1 billion of 30-year fixed rate SEC-

registered debt securities. The 10-year notes will pay a coupon of 5.000

per cent and will mature 9 March 2033 and the 30-year notes will pay a

coupon of 5.125 per cent and will mature 9 March 2053.

We had$10.5 billion in cash and cash equivalents plus other short-term

cash investments at 31 December 2023 (31 December 2022:

$8.8 billion).

Provision for closure costs

At 31 December 2023, provisions for close-down and restoration costs

and environmental clean-up obligations were$17.2 billion

(31 December 2022:$15.8 billion). The increase was largely due to

revised closure estimates following new studies at certain operations

and legacy sites, including ERA, together with the amortisation of

discount ($1.0 billion), which includes the effect of elevated inflation for

the year. This was partly offset by a revision of the closure discount rate

to 2.0% (from 1.5%), reflecting expectations of higher yields from long-

dated bonds, which resulted in a$1.1 billion decrease in the provision.

$0.8 billion of the provision was also utilised through spend in 2023.

the detailed reconciliations on pages 289 to 294.

Financial review continued

Our shareholder returns policy

The Board is committed to maintaining an appropriate balance between cash returns to shareholders and investment in the business, with the

intention of maximising long-term shareholder value.

At the end of each financial period, the Board determines an appropriate total level of ordinary dividend per share. This takes into account the

results for the financial year, the outlook for our major commodities, the Board’s view of the long-term growth prospects of the business and the

company’s objective of maintaining a strong balance sheet. The intention is that the balance between the interim and final dividend be weighted to

the final dividend.

The Board expects total cash returns to shareholders over the longer term to be in a range of 40% to 60% of underlying earnings in aggregate

through the cycle. Acknowledging the cyclical nature of the industry, it is the Board’s intention to supplement the ordinary dividend with additional

returns to shareholders in periods of strong earnings and cash generation.

60% payout ratio on the ordinary dividend delivers an eight-year track record

1. Based on weighted average number of shares and declared dividends per share for the respective periods and excluding foreign exchange impacts on payment.

We determine dividends in US dollars. We declare and pay Rio Tinto plc dividends in pounds sterling and Rio Tinto Limited dividends in Australian

dollars. The 2023 final dividend has been converted at exchange rates applicable on 20 February 2024 (the latest practicable date before the

dividend was declared). American Depositary Receipt (ADR) holders receive dividends at the declared rate in US dollars.

The 2023 final ordinary dividend to be paid to our Rio Tinto Limited shareholders will be fully franked. The Board expects Rio Tinto Limited to be in a

position to pay fully franked dividends for the foreseeable future.

On 18 April 2024, we will pay the 2023 final ordinary dividend to holders of ordinary shares and holders of ADRs on the register at the close of

business on 8 March 2024 (record date). The ex-dividend date is 7 March 2024.

Rio Tinto plc shareholders may choose to receive their dividend in Australian dollars or New Zealand dollars, and Rio Tinto Limited shareholders

may choose to receive theirs in pounds sterling or New Zealand dollars. Currency conversions will be based on the pound sterling, Australian dollar

and New Zealand dollar exchange rates five business days before the dividend payment date. Rio Tinto plc and Rio Tinto Limited shareholders must

register their currency elections by 26 March 2024.

We will operate our Dividend Reinvestment Plans for the 2023 final dividend (visit riotinto.com for details). Rio Tinto plc and Rio Tinto Limited

shareholders’ election notice for the Dividend Reinvestment Plans must be received by 26 March 2024. Purchases under the Dividend

Reinvestment Plan are made on or as soon as practicable after the dividend payment date and at prevailing market prices. There is no discount

available.

Portfolio management

Capital projects

1. Rio Tinto share of the Western Range capital cost includes 100% of funding costs for Paraburdoo plant upgrades.

2. WCS is currently a consortium of Singaporean company, Winning International Group (50%), Weiqiao Aluminium (part of the China Hongqiao Group) (50%) and United Mining Supply Group

(nominal shareholding). WCS is the holder of Simandou North Blocks 1 & 2 (with the Government of Guinea holding a 15% interest in the mining vehicle and WCS holding 85%) and associated

infrastructure. Baowu Resources has entered into an agreement to acquire a 49% share of WCS mine and infrastructure projects through a Baowu-led consortium, subject to conditions including

regulatory approvals. In the case of the mine, Baowu has an option to increase to 51% during operations.

3. WCS holds the mining concession for Blocks 1 and 2, while Simfer SA holds the mining concession for blocks 3 and 4. Simfer and WCS will independently develop their mines.

4. Estimated numbers, subject to approval by the Simfer board and government authorities. Spend incurred on the project in 2023 was $0.9 billion of which $539 million was charged to the Income

Statement and $330 million was capitalised ($266 million on a cash basis). All qualifying costs are being capitalised from the fourth quarter of 2023.

5. Simfer Jersey Limited is a joint venture between the Rio Tinto Group (53%) and Chalco Iron Ore Holdings Ltd (CIOH) (47%),a Chinalco-led joint venture of leading Chinese SOEs (Chinalco

(75%), Baowu (20%), China Rail Construction Corporation (2.5%) and China Harbour Engineering Company (2.5%)). Simfer S.A. is the holder of the mining concession covering Simandou

Blocks 3 & 4, and is owned by the Guinean State (15%) and Simfer Jersey Limited (85%). Simfer Infraco Guinée S.A.U. will deliver Simfer’s scope of the co-developed rail and port infrastructure,

and is, on the date of this notice, a wholly-owned subsidiary of Simfer Jersey Limited, but will be co-owned by the Guinean State (15%) after closing of the co-development arrangements.

6. The estimated annualised capacity of approximately 60 million dry tonnes per annum iron ore for the Simandou life of mine schedule was previously reported in a release to the Australian

7. Co-development of the rail and port infrastructure remains subject to a number of conditions, including regulatory approvals in Guinea and China, the entry into a number of legal agreements,

ratification of the investment framework for co-development by the Republic of Guinea, and agreement between Simfer, WCS and the Republic of Guinea regarding the budget for the rail and port

infrastructure.

8. The NRS Mineral Resources and Ore Reserves, together with the Lower Commercial Skarn (LCS) Mineral Resources and Ore Reserves, form the Underground Skarns Mineral Resources and

Ore Reserves.

9. The 250 thousand tonne copper production target for the Kennecott underground mines over the years 2023 to 2033 was previously reported in a release to the Australian Securities Exchange

(ASX) dated 20 June 2023 "Rio Tinto invests to strengthen copper supply in US”. All material assumptions underpinning that production target continue to apply and have not materially changed.

10. The 500 thousand tonne per year copper production target (stated as recoverable metal) for the Oyu Tolgoi underground and open pit mines for the years 2028 to 2036 was previously reported in

a release to the Australian Securities Exchange (ASX) dated 11 July 2023 “Investor site visit to Oyu Tolgoi copper mine, Mongolia”. All material assumptions underpinning that production target

Future options

Safety

The number of potentially fatal incidents (PFIs)

in Iron Ore decreased 48% to 13 with falling

objects and vehicle collisions/rollovers

accounting for the majority of these incidents.

Our all-injury frequency rate (AIFR) decreased

10% to 0.61, compared to 0.68 in 2022.

These improvements are the result of

consistently using the safety maturity model

(SMM) for the past four years across our

operations. SMM encourages best practices

across our business in leadership, team

engagement and learning to improve our

safety culture. We also re-engaged our

workforce on critical risk management (CRM),

a safety program that makes sure frontline

workers are focused on the critical safety risks

in their work.

We continued our journey to mature our

workplace safety culture and create an

environment where our people are both

physically and psychologically healthy and

safe. We completed the first year in our five-

year Mentally Healthy Iron Ore Strategy, with a

focus on building capability in our leaders to

manage psychosocial risks in the workplace.

Our focus remains on creating a safe,

respectful and inclusive workplace where our

people can bring their whole selves to work.

For more informationabout our global health and safety initiatives see pages 71-72.

In April 2023 the Radiological Council, an

independent statutory authority, found Rio

Tinto did not breach the Radiation Safety Act

in relation to the loss of a radioactive capsule

while in transit from our Gudai-Darri mine site.

We also conducted a thorough review and

identified opportunities to further improve the

selection of radiation gauges, and how the

items are packaged and transported.

Iron ore market fundamentals were well-

supported in 2023. Steelmakers in China

maintained elevated operating rates as

domestic demand rose 1.5% year-on-year.

Infrastructure and other government-backed

construction surpassed residential property as

the largest steel consuming sectors, while

manufacturing continued to contribute

substantial volumes of demand.

A 47% increase in net steel exports further

supported China’s crude steel production which

exceededone billion tonnes for the fourth

consecutive year. China’s steel exports also

resulted in higher contestable iron ore demand

globally since they in part displaced steel,

which would have been produced in other

regions using captive iron ore or higher scrap

rates. This resulted in a 6.6% year-on-year

increase in China’s iron ore imports, reaching

a record 1.18 billion tonnes, which helped

absorb the 5% year-on-year increase in

seaborne supply (to 1.5 billion tonnes). At the

same time, China’s port inventories declined

to a three-year low.

In 2023, our Iron Ore business’s absolute

greenhouse gas (GHG) emissions were

3.2 Mt CO 2 e (on an equity basis), an increase

of 0.57Mt CO 2 e compared to the 2018

emissions baseline (2.64Mt CO 2 e). This was

driven by an increase in production.

Approximately one-quarter of Iron Ore emissions

are from the gas used to generate power. To reduce

our reliance on gas we are progressing

development of 600 to 700MW of renewable energy

capacity and preparing for early fleet electrification

from 2030. We continue to progress the potential

development of a Pilbara coastal solar farm and are

partnering with the Yindjibarndi Energy Corporation

to explore opportunities to collaborate on renewable

energy projects.

For more informationabout our decarbonisation efforts in the Iron Ore product group, see our 2023 Climate Change Report at riotinto.com/climatereport.

1. This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer topage 215 for more information.

Iron Ore

Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result in the year on year change.

1. Dampier Salt is reported within Iron Ore, reflecting management responsibility. Iron Ore Company of Canada continues to be reported within Minerals. The Simandou iron ore project in Guinea

reports to the Chief Technical Officer and is reported outside the Reportable segments.

2. The Pilbara underlying free on board (FOB) EBITDA margin is defined as Pilbara underlying EBITDA divided by Pilbara segmental revenue, excluding freight revenue.

3. Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income Taxes'.

4. Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment; capitalised evaluation costs; and purchases less sales of other intangible assets.

5. Underlying return on capital employed (ROCE) is defined as underlying earnings excluding net interest divided by average capital employed.

Underlying EBITDA of$20.0 billion was 7%

higher than 2022, with a 2% improvement in

realised prices ($0.8 billion) and higher

volumes, following the ramp-up of Gudai-Darri.

Unit costs of $21.5 per tonne were $0.2 per

tonne lower than 2022. Cost escalation from

inflation was offset by a weaker Australian

dollar and gains on derivative contracts.

Higher iron ore volumes offset a higher mine

work index and mine maintenance costs.

Our Pilbara operations delivered an underlying

FOB EBITDA margin of 69%, compared with

68% in 2022, largely due to the iron ore price.

We price the majority of our iron ore sales

(79%) by reference to the average index price

for the month of shipment. In 2023, we priced

approximately 10% of sales with reference to

the prior quarter’s average index lagged by

one month with the remainder sold either on

current quarter average, on the spot market or

other mechanisms. We made approximately

74% of sales including freight and 26% on an

FOB basis.

We achieved an average iron ore price

of $99.7 per wet metric tonne on an FOB basis

(2022: $97.6 per wet metric tonne) across our

product suite. This equates to $108.4 per dry

metric tonne, assuming 8% moisture (2022:

$106.1 per dry metric tonne), which compares

with the monthly average Platts index for 62%

iron fines converted to an FOB basis of $110.3

per dry metric tonne (2022: $109.8 per dry

metric tonne). The 2% lower realised price

compared to the Platts index was mainly due

to the lower average grades of our portfolio

compared to the 62% index.

Segmental revenue for our Pilbara operations

included freight revenue of $2.1 billion (2022:

$2.2 billion).

Net cash generated from operating activities

of$14.0 billion was on a par with 2022.

Benefits from higher realised prices and higher

volumes offset a build in working capital to

ensure healthy stocks across the system and

an increased receivables balance due to

strong iron ore prices at year end. Free cash

flow of$11.4 billion was$0.3 billion higher

than 2022, mostly driven by a$0.4 billion

reduction in capital expenditure to$2.6 billion

due to lower spend on replacement capital.

Pilbara operations produced 331.5 million

tonnes (100% basis) of iron ore,2% higher

than 2022. Shipments, on a 100% basis, were

3% higher (+10 million tonnes) than in 2022,

making 2023 the second highest shipment

year on record. Improved system performance

supported by a 5 million tonne uplift from

implementation of the Safe Production

System, and ramp-up of Gudai-Darri to its 43

million tonne nameplate capacity, offset mine

depletion. SP10 volumes accounted for 47.5

million tonnes of 2023 shipments (or 14%).

We continue to see strong demand for our

portside product in China, with sales totalling

23.3 million tonnes in 2023 (2022: 24.3 million

tonnes). At the end of 2023, inventory levels

were 6.4 million tonnes, including 3.9 million

tonnes of Pilbara product. In 2023,

approximately 86% of our portside sales were

either screened or blended in Chinese ports.

In January 2024, Dampier Salt Limited entered

into a sales agreement for the Lake MacLeod

salt and gypsum operation in Carnarvon,

Western Australia with privately-owned salt

company Leichhardt Industrials Group for

$251 million (A$375 million). Completion of the

sale is subject to certain commercial and

regulatory conditions being satisfied. The

transaction is subject to capital gains tax.

For more informationabout our capital projects and future growth options, see pages 30-31.

Safety

In 2023, we continued to focus on building

resilience within our safety systems and

processes. We implemented actions to

improve our safety culture for our employees

and our contractors, by identifying areas of

organisational improvement, strengthening our

control environment, and leveraging our safety

maturity model to analyse and address the

root causes of all our potentially fatal incidents

(PFIs).

The improvement in our safety maturity

translated into a decrease of almost 6% in our

all-injury frequency rate (AIFR) from 0.35 in

2022 to 0.33 in 2023. Increased incident

identification and proactive PFI 2 reporting

have been key elements in enhancing our

safety culture. However, despite this

improvement, five workers were injured in PFI

incidents in 2023; three of these injuries

occurred in vehicle-related incidents. We

continue to progress our program to reduce

vehicle-pedestrian risks, focusing on fatigue

and work scheduling as primary factors

contributing to this trend. Ongoing work will be

needed in 2024 to help re-emphasise the

importance of working together to build and

sustain a strong safety culture.

For more informationabout our global health and safety initiatives, see pages 71-72.

Aluminium prices came under pressure in

2023, mainly driven by weaker demand

outside of China. This impact on operating

margins was partly offset by lower operating

costs. Supply was volatile, with hydropower-

integrated smelters in China only able to fully

resume production in the third quarter

following low precipitation in the first half, yet

production was curtailed once again in the

fourth quarter due to the oncoming dry

season. Global demand was similarly uneven

through the year.

While China’s electric vehicle and solar panel

manufacturers significantly increased their

consumption, the US, Europe and Japan

recorded historically low levels of aluminium

semi-fabricated orders and shipments.

Primary aluminium inventory remained

low in China due to strong demand and

seasonal disruptions to domestic production,

which required high levels of aluminium

primary imports, mainly from Russia.

Meanwhile, aluminium inventories

outside the Chinese market remain

below average historical levels.

In 2023, our Aluminium business’s absolute

greenhouse gas emissions (24.2 Mt CO 2 e)

were 1.4% lower than the 2018 equity

baseline (24.5Mt CO 2 e). This reduction

includes improvements in processing

efficiency, increased use of hydroelectric

boilers in refining instead of natural gas

boilers, and reduced aluminium production at

the Kitimat smelter. Following a strike in 2021,

the Kitimat smelter resumed its operations and

reached full operating capacity in September

The 2023 emissions intensity of our

managed Canadian smelters, powered by

hydroelectricity, was 2.28Mt CO 2 e per tonne of

aluminium. Our Vaudreuil alumina refinery

continues to have one of the lowest carbon

footprints of any metallurgical alumina refinery

in the world today.

For more informationabout our decarbonisation efforts in the Aluminium product group, see our 2023 Climate Change Report at riotinto.com/climatereport.

1. This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 215 for more information.

2. A proactive PFI is one where there was neither injury nor property damage. Proactive PFIs are leading indicators of safety performance and offer the opportunity to learn from near miss incidents.

They reflect a psychologically safe culture.

Aluminium

1. Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income Taxes'.

2. Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment; capitalised evaluation costs; and purchases less sales of other intangible assets. It excludes

equity accounted units (EAUs).

3. Underlying return on capital employed (ROCE) is defined as underlying earnings excluding net interest divided by average capital employed.

Although global primary aluminium demand

rose by ~1% in 2023, falling costs and an

increase in global supply led to a 17%

reduction in the LME price and lower market

and product premiums. Market-related costs

for key materials such as caustic, coke and

pitch moderated with some of this benefitting

underlying EBITDA in the second half.

Operating costs particularly in our mines and

refineries increased year on year with a focus

on improved operational stability and asset

health. Overall there was significant margin

compression for our Aluminium business with

a 38% decrease in underlying EBITDA to$2.3

billion. Underlying EBITDA margin fell eight

percentage points to 21%.

We achieved an average realised aluminium

price of $2,738 per tonne, 18% lower than

Average realised aluminium prices comprise

the LME price, a market premium and a value-

added product (VAP) premium. The cash LME

price averaged $2,250 per tonne,17% lower

than 2022, while in our key US market, the

Midwest premium duty paid, which is 57% of

our total volumes (2022: 57%), decreased by

22% to $512 per tonne (2022: $655 per

tonne). Our VAP sales represented 46% of the

primary metal we sold (2022: 50%) and

generated product premiums averaging $354

per tonne of VAP sold (2022: $431 per tonne).

Our conversion of underlying EBITDA to cash

remained relatively strong, with net cash

generated from operating activities of$2.0

billion. Free cash flow of$0.6 billion reflected

investment in the business of$1.3 billion.

Bauxite production of 54.6 million tonnes was

unchanged from 2022. Operations saw a

continued improvement in the fourth quarter,

following the challenges of higher-than-

average rainfall at Weipa in the first quarter

and equipment downtime at both Weipa and

Gove in the first half.

We shipped 37.3 million tonnes of bauxite to

third parties, 2% lower than 2022. Segmental

revenue for bauxitewas also unchanged at

$2.4 billion. This includes freight revenue of

$0.5 billion (2022: $0.6 billion).

Alumina production of 7.5 million tonnes was

unchanged from 2022, with the Yarwun and

Queensland Alumina Limited (QAL) refineries

showing improved operational stability.

For the 2023 calendar year, as the result of

QAL's activation of a step-in process following

sanction measures enacted by the Australian

Government in 2022, we continued to take on

100% of capacity for as long as the step-in

continues. We have used Rusal’s 20% share

of capacity under the tolling arrangement with

QAL. This additional output is excluded from

our production results as QAL remains 80%

owned by Rio Tinto and 20% owned by Rusal.

On 1 February 2024, the Federal Court of

Australia rendered its decision in the litigation

initiated by Rusal against Rio Tinto and QAL,

dismissing Rusal’s case. Rio Tinto and QAL

are working to understand the impacts of the

decision.

Aluminium production of 3.3 million tonnes

was 9% higher than 2022, after we returned to

full capacity at the Kitimat smelter and

completed cell recovery efforts at Boyne

during the third quarter. All other smelters

continued to demonstrate stable performance.

For more informationabout our capital projects and future growth options, see pages 30-31.

Safety

We experienced an increase in the number of

injuries and Potentially Fatal Incidents (PFIs)

across our copper assets. There were 22 PFIs

in 2023 compared to 18 in the previous year.

We had an overall all-injury frequency rate

(AIFR) of 0.35 compared to 0.22 in 2022, an

increase of 59%, with an employee AIFR of

0.31 and a contractor AIFR of 0.38.

Unfortunately, in 2023, we also experienced

two permanent damage injuries at our

Simandou project and Kennecott Underground

project, and a Process Safety Tier I event at

our Kennecott smelter. Extensive action plans

are being executed to ensure our people and

their safety remains at the centre of everything

we do, and through our critical risk

management we are focusing on fatality

prevention across our sites. Underpinning our

strategy, we continue our journey to embed

our enhanced safety maturity model to help us

improve and sustain exceptional safety

performance. Copper assets continue to focus

on understanding and reducing their most

significant health risks exposures, including

heat stress, diesel particulate matter and SO 2

exposure through the Kennecott smelter

rebuild. First line assurance for catastrophic

risk prevention is well embedded at Oyu Tolgoi

and is beginning to develop at our other

assets. This will provide greater certainty on

our risk control effectiveness for major hazard

and process safety risks going forward.

For more informationabout our global health and safety initiatives, see pages 71-72.

London Metal Exchange copper prices were

supported by expectations that China’s

demand would recover substantially as

COVID-19 restrictions were lifted at the

beginning of 2023. Disruptions to mine supply

in major mining countries further tightened

market fundamentals in the first quarter,

before loosening later in the year with the

commissioning of new mining projects in

South America and Africa.

Concerns about the US and China’s economic

growth towards the middle of the year

undermined sentiment. That was followed by a

stabilisation in China after pro-growth

measures were stepped up in the third quarter.

Overall, China’s demand was resilient, lending

support to copper prices together with

inflationary pressure, although price gains

were capped by US dollar appreciation. In the

final months of 2023, there were several

disruptions to mine supply in Latin America

that resulted in a notably tighter copper

concentrates market.

In 2023, our Copper business’s absolute

greenhouse gas emissions (1.0 Mt CO 2 e) were

65.5% lower than the 2018 equity baseline

(3.04Mt CO 2 e). The decrease in emissions

was mainly driven by decarbonising power

and commercial transactions in renewable

energy. Rio Tinto Kennecott is fully

transitioning to renewable diesel after a

successful seven month trial. Kennecott’s fleet

of 90 haul trucks and all heavy machinery will

begin to transition to renewable diesel in the

first quarter of 2024, along with consumption

from the concentrator, smelter, and refinery.

The transition will reduce Kennecott’s carbon

emissions by approximately 495,000 tonnes of

CO 2 equivalent per annum, comparable to

eliminating the annual emissions of more than

107,000 cars 3.

Nuton TM, our bioleaching technology venture,

has the potential to deliver game changing

ESG performance. Compared to conventional

concentrating and smelting and based on our

comparative environmental benchmark study

with the University of Technology, Sydney,

Nuton TM is projected to have a carbon intensity

up to 60% lower than a global average of 5.2

tonnes per tonne of copper. Combined with

opportunities for renewable energy that can

further reduce emissions from Nuton TM, we’re

excited about the incredible outcome Nuton TM

could bring.

For more informationabout our decarbonisation efforts in the Copper product group, see our 2023 Climate Change Report at riotinto.com/climatereport.

1.2022 has been adjusted to reflect a change in management responsibility for the Simandou iron ore project from Copper to the Chief Technical Officer. As a result, we have moved Simandou

outside of reportable segments and accordingly adjusted prior period comparatives.

2. This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 215 for more information.

3. Comparison calculation used US EPA Greenhouse gas equivalencies calculator (https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator).

Copper

2022 has been restated following the transfer of the Simandou iron ore project to outside the Reporting segments, as it now reports to the Chief Technical Officer, and to reflect the adoption of narrow

scope amendments to IAS12 'Income Taxes'.

1. Average realised price for all units sold. Realised price does not include the impact of the provisional pricing adjustments, which positively impacted revenues by $2 million (2022: $175 million

negative).

2. Net cash generated from operating activities excludes the operating cash flows of equity accounted units (EAUs) but includes dividends from EAUs (Escondida).

3. Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment, capitalised evaluation costs and purchases less sales of other intangible assets. It excludes

EAUs.

4. Underlying return on capital employed (ROCE) is defined as underlying earnings (product group operations) excluding net interest divided by average capital employed.

5. Mine design and plans will be reviewed by regulatory bodies as part of the OTFS23 process.

6. The 500 thousand tonne per year copper production target (stated as recoverable metal) for the Oyu Tolgoi underground and open pit mines for the years 2028 to 2036 was previously reported in

a release to the Australian Securities Exchange (ASX) dated 11 July 2023 “Investor site visit to Oyu Tolgoi copper mine, Mongolia”. All material assumptions underpinning that production target

We delivered first sustainable production from

the underground mine at Oyu Tolgoi, where

we doubled our interest to 66% following the

acquisition of Turquoise Hill Resources at the

end of 2022. However, lower refined copper

volumes and higher unit costs, primarily driven

by the planned smelter and refinery rebuild at

Kennecott, in addition to higher energy prices

and an increase in exploration and evaluation

expenditure, led to underlying EBITDA being

down 26% to$1.9 billion. Underlying EBITDA

margin remained relatively strong at 42%.

Our copper unit costs, at 195 cents per pound,

increased by 32 cents, or 20%, as a result of

the lower shipment volumes of refined copper

following the planned rebuild at Kennecott and

higher input costs.

We generated$0.5 billion in net cash from

operating activities, a 64% decrease on 2022,

from the same drivers as underlying EBITDA,

together with $0.3 billion lower dividends from

Escondida.

Negative free cash flow of$1.4 billion reflected

the above movements and significant

investment of$2.0 billion in sustaining capital

and our growth projects. This mainly related to

the ongoing development of the Oyu Tolgoi

underground, the projects at Kennecott and

evaluation costs at Resolution and Winu.

Mined copper production, at 620 thousand

tonnes, was 2% higher than 2022, reflecting

first sustainable production from Oyu Tolgoi

underground in the first quarter. This offset

challenges at Kennecott following a conveyor

failure in March, with the concentrator not

returning to full capacity until the third quarter.

Our share of mined copper production from

Escondida was flat at 300 thousand tonnes.

Refined copper production decreased by 16%

to 175 thousand tonnes as we undertook the

largest rebuild of the smelter and refinery in

Kennecott’s history across the second and

third quarters. The smelter rebuild was

successfully completed in the fourth quarter of

2023 and the ramp-up is progressing.

Oyu Tolgoi underground project

During 2023, Rio Tinto, Oyu Tolgoi and the

Government of Mongolia continued to work

together towards the implementation of

Mongolian Parliamentary Resolution 103.

We continue to see strong performance from

the underground mine, with a total of 86

drawbells opened from Panel 0, including 67

drawbells in 2023.

By the end of 2023, shafts 3 and 4 sinking had

reached 923 metres and 1,013 metres below

ground level, respectively. Final depths

required for shafts 3 and 4 are 1,130 and

1,176 metres, respectively. Both shafts are

expected to be commissioned in the second

half of 2024.

Construction of the conveyor to surface works

continued to plan and was 88% complete at

the end of 2023. Commissioning remains on

track for the second half of 2024.

Construction of primary crusher 2 commenced

in December 2023 and is due to be complete

by the end of 2025.

Construction works for the concentrator

conversion remains on schedule.

Commissioning is expected to be

progressively completed from the fourth

quarter of 2024 through to the second quarter

of 2025. Technical studies for mine design and

schedule optimisation for Panels 1 and 2 were

completed during the second quarter 5. The

operation remains on track to ramp up to

deliver average mined copper production of

~500 thousand tonnes per year (100% basis)

between 2028 and 20366.

For more informationabout our capital projects and future growth options, see pages 30-31.

Nuevo Cobre exploration joint venture agreementWe have entered into a joint venture with Corporación Nacional del Cobre de Chile (Codelco) following the acquisition of PanAmerican Silver’s 57.74% stake in Agua de la Falda S.A. The new joint venture, known as Nuevo Cobre (New Copper), will allow us to explore and potentially develop Nuevo Cobre’s assets in partnership with Codelco in Chile’s prospective Atacama region.Chile has the largest copper reserves in the world, and currently is the leading copper producer. Chile is also a leader in other critical minerals that the world needs for the energy transition and to achieve net zero carbon emissions. The partnership builds on a collaboration agreement with Codelco, which first commenced in 2007, that encourages best practices, innovation, and technology to improve safety and productivity in underground mining.

Safety

While we recorded zero fatalities at managed

operations in 2023, tragically four colleagues

died in a plane crash while travelling to our

Diavik diamond mine in January 2024.

We are working closely with the authorities

to support their efforts to understand the

full facts of what happened.

Unfortunately, in 2023, we also experienced a

permanent damage injury at our Diavik mine.

The number of potentially fatal incidents (PFIs)

increased to 27, with vehicle collision and

rollover, contact with electricity and lifting

operations accounting for the highest number

of PFIs. Two of these PFIs were also

significant process safety incidents at our

RTIT Quebec Operations site in Sorel-Tracy,

which did not result in injuries. We have

heightened our focus on managing these risks

and have implemented measures in response

to the investigation.

Our all-injury frequency rate (AIFR) decreased

to 0.24, compared to 0.38 in 2022, as we

recorded fewer employee and contractor

injuries. The rate of injuries in our contractor

workforce reduced significantly, going from

0.42 in 2022 to 0.20 in 2023.

In 2024, we will continue our journey of

improvement, enabled by the safety maturity

model. Additionally, we will intensify our focus

on health, environment, and security to

achieve our objectives of creating a safe and

productive workplace for our employees and

contractor partners.

For more informationabout our global health and safety initiatives, see pages 71-72.

The titanium dioxide (TiO 2) market saw a

downturn in demand in developed regions,

although there was a small improvement

towards the fourth quarter. Elevated feedstock

inventory also hampered TiO 2 purchases,

leading to production cuts by major producers.

Borates prices also came under pressure as

weak construction markets globally impacted

underlying demand. Higher supply from

leading producers accumulated into inventory

as downstream demand underperformed.

The demand for IOC pellets in the European,

Japanese, and Korean markets was stable in

2023 despite weaker steel production amid

inflationary pressures. Following tentative

signs of stabilisation in the European steel

market in the middle of the year, pellet

demand and premiums came under downward

pressure by the end of the third quarter, and

headwinds in the Atlantic Basin persisted

through to the end of the year. Nevertheless,

the demand for Direct Reduction pellets

remained resilient in the Middle East and

North Africa on the back of firm steel

production in that region.

Downward pressure on lithium carbonate

prices emanated from the deceleration in

electric vehicle (EV) output growth and

inventory accumulation along the supply

chain. Supply from non-traditional regions

(Africa) entered the market, incentivised by

two years of elevated prices. Longer term,

lithium market fundamentals remain strong as

EV adoption continues to accelerate on

supportive government policies and supply

shortfalls requiring further investment.

In 2023, our Minerals product group’s absolute

greenhouse gas (GHG) emissions were 3.7Mt

CO 2 e, a 6.7% decrease from 2022 levels and

0.1% lower than the 2018 equity baseline

(3.7Mt CO 2 e). We started the BlueSmelting TM

demonstration plant at our RTIT Quebec

Operations, a new ilmenite smelting

technology that, if fully implemented, has the

potential to reduce the site’s overall GHG

emissions by up to 70%.

We announced we would build the largest

solar power plant across Canada’s territories

at Diavik Diamond Mine, featuring over 6,600

solar panels. It is expected to be fully

operational in the first half of 2024. In Boron,

California, we became the first open pit mine

in the world to fully transition our heavy

machinery from fossil to renewable diesel,

which brings an anticipated CO 2 e reduction of

up to 45,000 tonnes per year. At QIT

Madagascar Minerals, we commissioned the

8MW solar plant and 8.25 MWh lithium-ion

battery energy storage system, and we started

the construction of the 16MW wind project,

scheduled for completion by 2025.

We have also opened a new battery

manufacturing and testing research laboratory

within our Bundoora Technical Development

Centre in Melbourne, Australia, to test how our

minerals and other products will perform in

real-world applications, such as in EV

batteries.

For more informationabout our decarbonisation efforts in the Minerals product group, see our 2023 Climate Change Report at riotinto.com/climatereport.

1. This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 215 for more information.

1. Iron Ore Company of Canada (IOC) continues to be reported within Minerals.

2. Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income Taxes'.

3. Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment; capitalised evaluation costs; and purchases less sales of other intangible assets.

4. Underlying return on capital employed (ROCE) is defined as underlying earnings (product group operations) excluding net interest divided by average capital employed.

Underlying EBITDA of$1.4 billion was 42%

lower than 2022, primarily due to lower prices

and higher costs. We experienced market

weakness for many of our products, in

particular for TiO 2 feedstock, where underlying

demand for pigment was subdued on weak

real estate activity in the Americas, Europe

and China. This gave rise to lower sales

volumes and, in combination with the two

furnace failures at our RTIT Quebec

operations, resulted in higher unit costs.

Net cash generated from operating activities of

$0.5 billion was 64% lower than 2022, while

negative free cash flow of$0.2 billion reflected

the lower underlying EBITDA, higher working

capital due to market conditions and a modest

rise in capital expenditure.

Production of iron ore pellets and concentrate

at IOC of 9.7 million tonnes was 6% lower

than 2022 with challenges due to the wildfires

in Northern Quebec in the second quarter, as

well as extended plant downtime and

conveyor belt failures in the third quarter.

TiO 2 slag production of 1,111 thousand tonnes

was 7% lower than 2022. Two furnaces at our

RTIT Quebec Operations remain offline

following process safety incidents in June and

July. In the fourth quarter, we decommissioned

an additional furnace, which is due for

reconstruction in 2024. As a result, we entered

2024 with six out of nine furnaces operating at

our RTIT Quebec Operations and three out of

four online at Richards Bay Minerals (RBM).

Borates production was 7% lower than 2022,

as we adjusted for decreased customer

demand, despite improved equipment

reliability.

Our share of carats recovered was 28% lower

than 2022, due to depleting one of three

underground pipes and reaching the end of life

for open pit mining.

For more informationabout our capital projects and future growth options, see pages 30-31.

Breakthrough technology: Scandium, a case in pointScandium is a critical mineral in increasing demand for the energy transition and modern technologies such as aerospace, lasers and microelectronics due to its alloying and emerging high-tech properties. We are combining scandium with our low-carbon aluminium to produce an alloy that is stronger, more flexible and more resistant to heat and corrosion.Today, our commercial scale demonstration plant in Quebec uses an innovative process to extract and produce high-purity scandium oxide from the waste streams of the existing TiO2 production, without any additional mining.This will make Rio Tinto one of the largest producers of scandium in the Western world. In two years, we have gone from testing the extraction process in a laboratory, to being able to supply a large share of the global scandium market. In 2023, we acquired a high-grade scandium resource in New South Wales, Australia. The BurraTM Scandium Project is a small, high-value physical scandium asset, with a small environmental footprint. When operational, Burra will significantly increase, and geographically and operationally diversify, our annual scandium production. Scandium is emblematic of Rio Tinto’s transformation in terms of what we mine and how we mine.

to ESG

As temporary custodians of the

land where we operate, we are

entrusted with accessing the

world’s essential materials and

making them available for

society’s use.

These resources are finite, and we have a

responsibility to find better ways to extract the

full value from them in the safest and most

sustainable way possible.

We know that responsibly managing our

business impacts is fundamental if we want to

continue to grow and deliver on our strategy.

Two of our core objectives are to strengthen

our social licence and achieve impeccable

credentials. As part of these commitments, we

align our business priorities with society’s

expectations and ensure sustainability

considerations are at the core of every

decision we make.

Our shareholders, employees and host

governments expect us to find better ways to

lower our impact, decarbonise our operations

and increase circularity, while contributing to a

positive legacy for the host communities and

countries where we operate.

And we have a big role to play in the world’s

transition to a low-carbon future. The materials

we produce are essential in many low-carbon

technologies. It also means we must deliver

our own decarbonisation, alongside investing

in research and development that enables our

customers to decarbonise more quickly.

To meet our goals, we are focusing on

developing the right mindset and culture,

encouraging our people to work together to

find new solutions and building partnerships

with those who share our ambition for a more

sustainable future.

Solar panel plant at Gudai-Darri, the Pilbara, Western Australia. See our 2023 Climate Change Report for further information about this project.

Our ESG

framework

We want to ensure all our

stakeholders benefit from the

success of our business. To do this,

our priorities and performance must

align with society’s expectations,

which are constantly evolving.

Each year we complete a materiality

assessment to understand what ESG issues

and topics matter most to, and have the

greatest impact on, our stakeholders and our

business. We gather information from internal

and external stakeholders via interviews,

surveys and reviews of publicly available

information. We ask them what is important

now and what they think will be important in five

to ten years. Some issues are identified as

higher materiality than others. Our ESG

framework describes how we manage and

report externally on these issues and how we

contribute to the United Nations Sustainable

Development Goals (UN SDGs).

The insights we gather through this process

guide our work towards achieving impeccable

ESG credentials and strengthening our social

licence. This includes providing people and

communities with economic opportunities;

safeguarding and promoting the health, wellbeing

and human rights of people and communities;

combating climate change; and being excellent

stewards of the natural resources entrusted to

us. Our commitment to running a transparent,

values-based, ethical business underpins all

our work.

To achieve impeccable ESG credentials,

we aim to:

–Provide people and communities with social

and economic opportunities so they can live

and grow sustainably.

–Play our role to advance a fair and socially

inclusive energy transition.

–Build a healthy, diverse and inclusive

workforce, support local communities to

achieve their goals and aspirations, and

deliver positive social outcomes.

–Decarbonise our operations (Scope 1

and 2) and our value chains (Scope 3) and

maximise the full value of our resources.

–Encourage circularity and provide critical

minerals that the world needs to advance.

–Minimise environmental and heritage

impacts and act as a responsible steward of

water and biodiversity, to strengthen our

resilience to a changing environment.

The UN SDGs

Our approach to ESG aligns with the UN SDGs,

which are recognised as the global blueprint for a

sustainable future. The SDGs are a useful

reference point to ensure we direct our efforts

where they can deliver the most impact and our

focus areas reflect society’s expectations. We

focus on goals that we feel are most relevant to

operating our business responsibly and where

we can have the biggest impact. Our two lead

goals are SDG 12 (responsible consumption and

production) and SDG 8 (decent work and

economic growth).

Our operations also contribute to eight

supporting SDGs (3, 4, 5, 6, 9, 10, 13 and 15),

while SDG 17 (partnerships for the goals)

reflects our approach to sustainability and is

fundamental to the way we run our business.

For more informationabout our approach to the UN SDGs see riotinto.com/sustainabilityapproach.

What is important now

Our internal and external stakeholders are

broadly aligned on the four highly material ESG

topics. Climate change is the most important

topic and includes greenhouse gas emissions

reduction, climate resilience and adaptation, and

just transition. Respecting human rights; cultural

and heritage site management; and health,

safety and wellbeing are the other three highly

material topics.

For our business, the safety and wellbeing of our

people remains our highest priority. Biodiversity

and ecosystems; business integrity and

governance; ESG transparency and disclosure;

inclusion, diversity and equity; local community

relations, tailings and mineral waste

management; and water management are also

material topics as we strive to build a sustainable

What will be important in the future

Our internal and external stakeholders feel that

climate change will only continue to increase in

importance over the next decade. Biodiversity

and ecosystems; the impact of technology;

respecting human rights; risk management and

cybersecurity; business integrity and

governance; supply chain transparency; and

end-to-end materials management will also

increase in importance.

Water management will continue to be an

extremely important topic in the future due to

the reliance of local communities and our

mining operations on this increasingly scarce

resource. Managing all these ESG topics well

will be integral to our social licence to operate

and the success of our business.

Reporting our performance

Our materiality assessment records the

threshold at which an issue or topic becomes

important enough for us to report on

externally. The importance of a topic is

based on the significance of its impact on

stakeholders. An ESG materiality assessment

differs from financial materiality, which may

use financial metrics or other quantitative

analyses to determine what would be

considered a significant or material impact.

As a member of ICMM, we commit to reporting

on our ESG performance against the Global

Reporting Initiative (GRI) standards and

implementing the ICMM Performance

Expectations (PEs). The ICMM Mining

Principles framework focuses on

the implementation of systems and practices

related to a broad range of ESG areas.

In 2022, all 29 Rio Tinto managed

operating and refining assets completed

a self-assessment against the ICMM PEs.

A self-assessment was also completed

for Rio Tinto Corporate. The criteria for

prioritising 26 of our 29 operating assets

for validation, within the three year cycle

(2023-2025), was also disclosed at this time.

In 2023, on-site third-party validations were

completed for 12 of our priority operating and

refining assets. The validation reports received

to date demonstrate a high level of alignment

between the self-assessment and validation

outcomes, with identification of relevant areas

for improvement. Information on the 2022 self-

assessment or 2023 validation results are

presented in the ICMM PE Summary tab in the

2023 Sustainability Fact Book. We have

continued to improve our reporting to meet

additional disclosure requirements, including

the ICMM Social and Economic Reporting

Framework (SERF). In 2023 we have

disclosed our performance against most of the

SERF indicators.

The majority of our ESG reporting is

incorporated into this Form 20-F and

supplemented by our 2023 Sustainability Fact

Book containing current and historical data on

topics including health, safety, environment,

climate, communities, human rights,

responsible sourcing, ICMM PEs

and transparency.

For more informationsee our 2023 Sustainability Fact Book at riotinto.com/sustainabilityreporting.

Governance and assurance

The Sustainability Committee oversees

strategies to manage social and environmental

risks, including management processes and

standards. The Committee reviews the

effectiveness of management policies and

procedures relating to safety, health,

employment practices (apart from

remuneration, which is the responsibility of

the People & Remuneration Committee),

relationships with neighbouring communities,

environment, security and human rights, land

access, political involvement and sustainable

development. Given its strategic significance,

climate change is overseen directly by

the Board.

For more informationabout our Sustainability Committee see pages 111-112.

This year, the Group’s auditor KPMG was

again engaged to provide the Directors of

Rio Tinto with assurance on selected

sustainability subject matters. KPMG’s limited

assurance statement satisfies the

requirements of subject matters 1 to 4 of the

ICMM assurance procedure.

For more informationabout our external auditors and internal assurance see page 109.

Non-financial and sustainability

information statement

The ESG section includes information required

by regulation in relation to:

–Environmental and climate matters,

including Task Force on Climate-related

Financial Disclosure (TCFD) disclosures

(pages 44-58).

–Our employees (pages 71-74).

–Social matters (pages 66-75).

–Human rights (page 75).

–Corruption and bribery (pages 76-77).

Other related information can be found here:

–Our business model (page 9).

–Material risks and how they are managed

(pages 80-88).

–Non-financial key performance indicators

(page 43).

Notes on data

The data summarised in this ESG section

relates to calendar years. Unless stated

otherwise, parameters are reported for all

managed operations without adjustment

for equity interests. Where possible, we

include data for operations acquired

before 1 October of the reporting period.

Divested operations are included in data

collection processes up until the transfer

of management control.

How we report

1. Includes our Climate Change Reportand 2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology.

2. Includes our Taxes Paid Report and Country-by-Country Report.

3. Includes our Modern Slavery Statement and our Voluntary Principles on Security and Human Rights Report.

For more informationsee riotinto.com/sustainabilityreporting.

Our ESG framework continued

2023 performance against ESG targets

1. While we expect to have made financial commitments to abatement projects totalling more than 15% of our emissions by 2025, achieved emissions reductions will lag this.

2. We take a “site-centric” view of the definition of local, which allows operations to establish their own definition, based on a set of common principles. These principles require that each operation,

in defining “local” takes into consideration its geographic, social and economic area of impact as well as ownership. For example, suppliers located within the Pilbara region of Western Australia

are defined as “local” for Rio Tinto Iron Ore’s Pilbara Operations. This approach is consistent with international best practice and aligns with the ICMM Social and Economic Reporting Framework

guidance.

3. The cultural heritage co-management maturity framework sets out a maturity model consisting of five levels of maturity – from "learning the practice" to "leading practice". There are six categories

against which a site will be evaluated to determine its level of maturity, covering various aspects of cultural heritage management.

4. Contractors refers to category 1, 2 and 3 contractors.

5. From 2021, the definition used to calculate diversity was changed to include people not available for work, and contractors (those engaged on temporary contracts to provide services under the

direction of Rio Tinto leaders), excluding project contractors.

6. We define senior leadership as Managing Directors, General Managers, Group Advisers and Chief Advisors.

7. Identifying with a nationality is not mandatory. More than 48% of our graduates have not formally reported a nationality.

8. eSAT (Employee Satisfaction) is a measure of “how happy an employee is to work at Rio Tinto”. It is calculated by averaging the responses on a 1-7 scale and expressing this out of 100.

Climate change

Our operational emissions targets are

ambitious - to reduce emissions by 15% by

2025 and 50% by 2030 relative to 2018 levels,

reaching net zero by 2050. Our targets cover

more than 95% ofour reported Scope 1 and 2

emissions and are aligned with 1.5°C

pathways. We adjust our baseline to exclude

reductions achieved by divesting assets and

to account for acquisitions.

Our definition of net zero applies to our

operational (Scope 1 and 2) emissions on an

equity basis. To reach net zero we will need to

decarbonise our operations as far as

technically and commercially practical, and

address all the remaining emissions with

carbon dioxide removals from the atmosphere

and long-term storage.

To tackle our Scope 3 emissions across our

value chains we are committed to helping our

customers and suppliers achieve their targets

a decade earlier - reaching net zero by 2050.

In particular, we continue to work with our

customers to develop and scale up the

technologies to decarbonise steel and

aluminium production.

In this section, we comply with the

requirements of Listing Rule 9.8.6(8)R by

including climate-related financial disclosures

consistent with the Task Force on Climate-

related Financial Disclosures (TCFD)

recommendations and recommended

disclosures.

In determining our compliance with all

11 of the TCFD recommendations and

recommended disclosures, we have

considered both Section C of the TCFD Annex

entitled “Guidance for All Sectors”

and Section E of the TCFD Annex entitled

“Supplemental Guidance for Non-Financial

Groups”. The climate-related financial

disclosures made within this section

also comply with the requirements of

the Companies Act 2006 as amended

by the Companies (Strategic Report) (Climate-

related Financial Disclosure)

Regulations 2022.

Climate change matters are also integrated

into other parts of this report, such as the key

performance indicators (KPIs), material risks,

and notes to the financial statements.

Progress on our Climate Action Plan (CAP) is

material to the successful implementation of

our Group strategy. This is summarised in the

metrics and targets area of this climate

change section. For supplementary

information, please see our 2023 Climate

Change Report and 2023 Sustainability Fact

Book. We will continually enhance our climate

reporting in response to emerging standards

and requirements set by the International

Sustainability Standards Board and

national regulators.

“Many 1.5°C climate change

scenarios rely on significant

deployment of carbon

dioxide removals to get to

net zero, which may not be

realistic. No single company

or country can halt the

course of climate change

alone, so partnering to

reduce emissions is vital.”

Environmental monitoring. Kennecott, US

Climate-related governance A)Describe the board’s oversight of climate-related risks and opportunitiesB)Describe management’s role in assessing and managing climate-related risks and opportunities

Climate-related strategy and risk management

Strategy A)Describe the climate-related risks* and opportunities the organisation has identified over the short, medium, and long term. B)Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning. C)Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. Risk management A)Describe the organisation’s processes for identifying and assessing climate-related risks. B)Describe the organisation’s processes for managing climate-related risks. C)Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management. *We typically refer to risks as both threats and opportunities, but follow TCFD wording in this section.

Our quantification and assessment of climate-

related risks and opportunities is embedded

within our Group risk management framework.

This includes six core elements that are

continually reviewed to ensure that we are

effectively managing current risks and preparing

for emerging risks.

In 2022, we launched the physical resilience

program which included a climate risk and

resilience assessment methodology. This

guideline provides our assets and product

groups with a bottom-up assessment

framework to quantify physical climate risk and

focuses on the following:

–Climate modelling assumptions: to guide

the selection of future emission scenarios

and time horizons to support bottom-up risk

assessment and analyses.

–A risk assessment process: to identify and

evaluate climate-related risks and

–A risk management framework: to plan and

implement risk responses, communicate

risks with stakeholders and maintain and

update risk information.

Our three lines of defence provide assurance

that risks are effectively managed in line with

our policies, standards and procedures. While

risk management is the accountability of our

leaders, all employees are empowered to

identify and manage risks at the point that they

arise in their business. For further detail

regarding the Group risk management

process, the risk factors of the Group and how

ESG has been incorporated into these, see

pages 78-88.

We use scenarios to identify and assess the

climate-related risks and opportunities impacting

our business in the, medium and long term. We

use market analysis for our short-term outlook

rather than the scenarios which provide a longer

term view out to 2050. For climate change

planning purposes, we define short term as up to

two years, medium term as two to ten years and

long term as beyond ten years.

Our short-term time frame aligns with our annual

planning process. The medium-term time frame

aligns to extended planning horizons that align

with our growth projects and emissions

abatement projects. Our long-term time frame

considers the full lifespan of our mining assets

and infrastructure, the long-term extent of our

operations, and the continued impact climate

risks and opportunities are expected to have on

the business.

Low-carbon transition

strategy and risk

management

Through our Group risk assessment process

and climate scenario analysis, it is evident that

the low-carbon transition poses numerous

transitional risks and opportunities for

our business.

Based on our analysis of these risks and

opportunities, their impact on the Group, and the

role played in the transition, we have identified

numerous transition-related material risks and

associated opportunities that have been

incorporated into our Group risk strategy.

The materiality, and subsequent prioritisation, of

each risk has been calculated through assessing

the likelihood of an impact occurring as well as

the effect this would have on the Group’s free

cash flow or business value.

The Group’s climate change and the low-carbon

transition uncertainties, based on our risk

management process, have been assessed

through the following material risks:

2. Preparing our Iron Ore business to meet the

demand for green steel.

3. Building trusted relationships

with communities.

4. Minimising our impact on the environments

we work in and building resilience to

changes in those environments, including

climate change and natural disasters.

7. Delivering on our growth projects.

8. Achieving our decarbonisation targets

competitively.

9. Conducting our business with integrity,

complying with all laws, regulations,

and obligations.

See pages 82-88 where we have highlighted

the key regions impacted by these risks, our

risk management responses, and the relevant

groups with oversight of each process.

The numerous risks and opportunities

resulting from the low-carbon transition affect

our portfolio in a variety of ways. The table on

page 48 provides an overview of the varying

impacts that the low-carbon transition has on

our overall portfolio.

For more informationon financial reporting considerations and sensitivities related to climate change and the low-carbon transition, see the notes to our financial statements on pages 162-165.

Capital allocation and

investment framework

Decarbonisation investment is derived from

the Group’s capital allocation framework and

aligned to our 2025 and 2030 Scope 1 and 2

emissions targets.

Our target to reduce emissions by 50% by 2030

relative to 2018 levels remains unchanged.

However, we now believe that achieving this will

require less capital investment and more

operating expenditure. We originally estimated

that approximately 3GW of renewable power

would be needed to decarbonise our operations

in the Pilbara - 1GW to replace gas-fired power

generation and 2GW to decarbonise our diesel-

based fleets. Carbon reduction from economically

viable, large-scale fleet electrification has always

been expected post-2030, however delays in the

availability of this technology mean that we now

do not expect to invest in the same scale of

Pilbara renewables pre-2030. We remain

committed to developing 1GW of renewable

energy capacity in the Pilbara, however, we now

estimate that 600 to 700MW capacity is required

by 2030.

To accelerate our emissions abatement, we will

take advantage of commercial solutions that can

be ready in the market this decade and avoid

lengthy project development schedules.

Therefore, although our 2030 emissions target

remains unchanged, we now believe that this can

be met with $5bn-$6bn of capital investment,

down from previous guidance of $7.5bn. This

excludes capitalised RECs, voluntary offsets and

compliance offset costs.

The table below shows capital and operational

expenditure on decarbonisation. Group figures

have been disclosed on page 173-174 and 184.

Decarbonisation expenditure

Capital expenditure on abatement projects

$94m

(2022: $86m)

Carbon credits and renewable energy

certificates (RECs) (intangible assets)

$61m

(2022: $33m)

Operational expenditure

$234m

(2022: $138m)

Investments

$36m

(2022: $42m)1

1. Our 2022 figures have been restated to include Office of

Chief Scientist and battery material investments.

Climate change scenarios

Our scenario approach is reviewed every year

as part of our Group strategy engagement with

the Board. We have not fundamentally

changed the scenarios presented in 2022 or

the analysis undertaken in early 2023 to

evaluate the resilience of our business under

different transition-related scenarios. Our

scenario framework focuses on two prevailing

macro-level business concerns: the rate of

global economic growth and the pace of

climate action, each heavily influenced by

global geopolitics and governance. Our two

core scenarios (Competitive Leadership and

Fragmented Leadership) are used to generate

a central reference case for commodity

forecasts and valuations. Additional scenarios

(including our Aspirational Leadership

scenario) are used to further evaluate the

positive and negative effects of the energy

transition across our portfolio and stress test

investment decisions. We have designed our

Aspirational Leadership scenario with the aim

or reaching net zero by 2050, to help us better

understand the world on a 1.5°C pathway and

what this would mean for our business.

We do not undertake climate modelling

ourselves, but determine the approximate

temperature outcomes in 2100 by comparing

the emissions pathways to 2050 in each of our

scenarios with the Shared Socio-economic

Pathways (SSP) set out in the

Intergovernmental Panel on Climate Change

(IPCC) Sixth Assessment Report. We also

consider the carbon budgets associated with

different temperature outcomes. The

emissions pathway of Aspirational Leadership

is most closely aligned with the IPCC’s shared

socio-economic pathway 1 (SSP1-1.9) with

emissions reaching net zero by 2050, which

limits warming to 1.5°C. The emissions

pathway in Competitive Leadership limits the

global temperature increase to 1.6-2.0°C

(SSP1-2.6). Fragmented Leadership’s

emissions pathway is between SSP1-2.6 and

SSP2-4.5, so the global temperature increase

is less than 2.5°C by 2100. For physical risk,

we also use the IPCC’s highest emissions

scenario (SSP5-8.5) in our bottom-up asset-

level physical risk and resilience assessments

and other scenarios for our financial risk

modelling (see page 163 for more

information). So, when assessing risks and

opportunities to the business we use a 1.5°C-

aligned scenario to assess a fast low-carbon

transition and we use the highest emissions

and high temperature outcome scenario

(SSP5-8.5) to assess physical climate risks.

While there are many uncertainties about how

a changing climate may negatively affect

gross domestic product (GDP) growth,

physical impacts of climate change are

integrated into the GDP growth assumptions in

our three scenarios. These are most

significant in Fragmented Leadership and

least significant in Aspirational Leadership.

1. These metrics have been extracted from our scenarios modelling and have been rounded to avoid the impression that they are precise predictions. Mtoe = Million tonnes of oil equivalent, PPP =

purchasing power parity.

2.11% p.a. decline in CO 2 emissions based on 2021-49 period in net zero pathway (by 2050), emissions in 2030 are highest in Competitive Leadership due to high GDP growth.

3.2021-50 compound annual growth rate (CAGR) based on global electric vehicle (EV) sales.

Our overall portfolio risks and opportunities in the low-carbon transition

Key

Our approach: decarbonisation

and producing materials needed

for the low-carbon transition

The energy transition is a key driver of

commodity demand today and will continue to be

so over the next two decades. This will come on

top of the demand growth from continued

urbanisation and industrialisation (particularly in

emerging economies) and it will trigger a new

phase of demand growth in developed

economies, which have faced saturating demand

over the past two decades.

While the low-carbon transition is expected to

create additional demand for our commodities

(and therefore an opportunity to provide transition

materials), the outlook for demand varies

significantly between our scenarios as a function

of GDP growth, technology uptake, and scrap

supply and use. Different demand trajectories,

combined with industry supply responses and

global carbon policy evolution, determine the

market prices for our three major commodities

and implications for our Group-level and asset

valuations.

We aim to invest in quality assets that give

robust returns under our scenarios, creating a

resilient portfolio with a significant upside to

the energy transition. We have continued to

invest in our copper portfolio through

traditional assets such as Oyu Tolgoi and

Kennecott, as well as early-stage application

of our Nuton TM copper leaching technology.

In aluminium, we continue to develop

emissions-free smelting technology with

ELYSIS™ trials. Significant further research

and development is needed, including to scale

up the technology towards larger commercial-

sized cells, before the broader implementation

of ELYSIS™ is possible. For this reason, we

do not expect this new technology to achieve

emissions abatement across our smelters

before 2030.

We believe that global iron ore demand will

remain strong with a premium on higher grade

ore needed for the production of green steel in

Direct Reduction Iron-Electric Arc Furnace

(DRI-EAF) steel processing. This includes the

higher grade ores from the IOC and our

Simandou project. Demand for these ores

increases in our Aspirational Leadership and

Competitive Leadership scenarios.

In other commodities, we are evaluating a

range of opportunities to produce lithium as

well as making demonstrable progress on

various critical mineral developments that are

essential for the energy transition.

The pace of technological development is

uncertain, which could delay or increase the

cost of our decarbonisation efforts as well as

the ability to fully capitalise on transition

For additional information on the resilience of

our portfolio, see page 163.

Physical climate risk

and resilience

Our business and wider value chain

experience a range of impacts associated with

extreme weather. As the climate continues to

change, so will the frequency and magnitude

of events and impacts associated with

extreme events. Proactive risk management is

crucial for us to operate safely, productively,

and profitably, well into the future.

Physical climate risk refers to the adverse

impacts that arise from extreme weather

and changes in climatic conditions and are

typically categorised into two main types:

–Acute climate risks involve sudden and

extreme events that can lead to rapid and

severe impacts. Examples include tropical

cyclones, wildfires, heatwaves, extreme

rainfall, flooding and hail. Acute risks can

disrupt operations, damage infrastructure,

impact our people and communities, and

result in production downtime and increased

operational costs.

–Chronic climate risks manifest gradually

over time, encompassing challenges such

as rising sea levels, increasing air

temperatures, and longer-term changes in

precipitation patterns. Chronic risks are

characterised by a slower onset and

progression, requiring longer-term

adaptation strategies and planning. Chronic

risks can result in reduced resource

availability, increased costs (such as water

and energy), impacts on productivity and

health and wellbeing of our workforce, and

can potentially affect supply

chain resilience.

The combination of these two types of climate

risk can lead to a compound extreme (such as

a landfalling tropical cyclone coupled with

higher sea levels) and can accentuate related

impacts.

Building resilience to a changing climate

means having the capacity to anticipate, adapt

to, and recover from the impacts of extreme

weather events, ensuring the long-term

viability of our assets, our people and

communities, and broader value chains.

Our strategy and approach

Taking and managing risk responsibly is

essential to operating and growing our

business safely, effectively, and sustainably.

Enhancing our resilience to physical

climate risk is an important component

of our approach to climate change and

is embedded within our risk management

and internal controls framework. Our approach

to physical climate risk and resilience is

centred around four pillars that guide our risk

management and work on adaptation, and is

summarised below.

Weather/climate analytics and insights

We use the latest-generation weather and climate data products to gain quantitative insights into short, medium and long-term weather and climate

risks. The strategic implementation of these advanced tools help manage physical climate risks proactively across our geographically diverse sites

and supply chains. Across the Group, we utilise the following tools, the combination of which cater for time horizons and weather and climate risks

from hours in the future (operational resilience and short-term decision-making) to decades (long-term strategic and scenario planning).

Climate change projections are available

for every site in our portfolio (including

non-managed assets). Downscaled climate

change projections are available for over 60

climate change variables and future emission

scenarios from the IPCC Coupled Model

Intercomparison Project 5 and 6 (CMIP5 and

CMIP6). We have completed flood risk

modelling for 100% of our managed and non-

managed assets considering three future

emission scenarios and time horizons

spanning present-day, medium and

long-term time horizons.

Physical risk and resilience

assessment

Our approach to quantifying and assessing

physical risk (threats) and resilience is both

targeted and systematic, spanning from

individual assets (bottom-up) to the Group

level (top-down). We first identify climate risks

and opportunities across varying and

applicable time horizons (present day/short

term, medium and long term) and emission

scenarios. Next, we evaluate their potential

financial and non-financial consequences and

likelihood and we prioritise these risks by

materiality for effective risk management and

appropriate resource allocation. This process

is integrated within the Rio Tinto Risk

Management Information System. The scope

of our assessments includes our operations

and the environments in which we operate,

our people, the communities that host us, and

our supply chain.

Resilience planning and adaptation

Each site, operating context and location is

unique. Our resilience planning identifies the

most appropriate resilience measures to

manage climate risks and adapt to them.

This can explore multiple options, weighing up

cost-benefit, alongside principles of adaptive

management, modularity and sustainability. An

investment decision is comprehensively

evaluated before funding approval. This

includes prioritising projects and engaging key

stakeholders to seek alignment on the

investment and its implementation.

Monitoring and evaluation

Risks are actively and regularly monitored with

clearly defined roles and responsibilities.

Adaptation is a continuous and evolving

process and we continually evaluate the

latest-generation of climate change data and

emerging technologies to assess the risk

profile of our assets and infrastructure over

time. Where a material change to the

economic, social, environmental or physical

context of the risk has been identified, the

assessment process is revisited.

Physical climate risks and impacts

Combining climate insights with a top-down

assessment, we have identified eight

Group-level material physical climate risks.

Identifying and evaluating our most material

challenges and significant risks empowers us

to implement targeted controls, adaptation

strategies and risk management plans, to

safeguard our business and ensure a safe,

profitable and productive operation in a rapidly

changing climate.

While the emergence of climate-related risks

varies in response to the evolving nature

of the underlying hazards, many of these risks

could manifest today. For example,

an extreme heat event could impact the

health, safety and productivity of our workforce

in the short term. However, increases in future

temperature means that risks may become

more material. The summary table on page 51

takes into account both the short-term risk that

could emerge during current operations as

well as the long-term risk associated with

climate change.

Climate-related metrics and targets

A)Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process. B)Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and the related risks. C)Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.

We have identified various metrics to monitor

our climate-related risks, opportunities and

targets. Our decarbonisation strategy is

monitored by tracking progress on our

abatement projects and reporting Scope 1 and

2 emissions. On Scope 3 emissions, we track

our customer engagement on decarbonisation,

progress on individual projects and

partnerships as well as our emissions.

We provide metrics for transition-related

opportunities (the increased demand for

transition materials) on page 56. Physical risks

metrics include the financial exposure metric

and annualised damage metric on pages

57-58.

We have also disclosed other ESG-related KPIs,

metrics and targets that integrate with our

objective of achieving impeccable ESG

credentials within the respective Environmental,

Social, and Governance performance sections of

this Form 20-F. A summary of these metrics is

found on page 43 with other Group KPIs

highlighted on pages 20-22.

Scope 1 and 2: Operational

emissions targets aligned with

1.5°C

In 2023, we updated our Scope 2 emissions

reporting methodology to align with improved

and evolving global GHG emissions reporting

standards. Our primary metric for Group

emissions is a market-based methodology and

we have restated our baseline and current

emissions. Further detail on this change in

reporting and the implications for our

emissions baseline is available in our 2023

Addendum - Scope 1, 2 and 3 Emissions

Methodology report.

While there is no universal standard for

determining the alignment of targets with the

Paris Agreement goals, we conclude that our

Scope 1 and 2 targets for 2030 are aligned

with efforts to limit warming to 1.5°C. In 2021,

KPMG provided limited assurance over the

alignment of our Scope 1 and 2 targets with

efforts to limit warming to 1.5°C. They also

provided assurance of the roadmap to

delivering those targets (as set out in our 2021

Climate Change Report). KPMG provide

assurance over our 2023 reporting of progress

on our Climate Action Plan (CAP)

commitments as well as on our 2023 Scope 1,

2 and 3 emissions.

Current year progress and update

on 2025 target

Our Scope 1 and 2 emissions were 32.6 Mt CO 2 e

in 2023. This is 6% below our 2018 baseline of

34.5 Mt CO 2 e and slightly below our adjusted

2022 emissions of 32.7 Mt CO 2 e (adjusted for

acquisitions). Abatement delivered by our

projects in 2023 exceeded emissions growth

from higher production giving a slight reduction in

emissions on a like for like basis.

Our 2023 emissions were slightly higher than

our actual 2022 emissions total of 32.3 Mt

CO 2 e due to the recent acquisitions of

additional equity in OT and MRN.

Against a backdrop of rising production, the

emissions reductions achieved since 2018 are

mostly the result of decarbonising power.

These include PPAs at Escondida and the

purchase of renewable energy certificates

(RECs) at our Kennecott and Oyu Tolgoi

copper operations.

The scale of our commitments on abatement

projects has increased rapidly since we reset

our Scope 1 and 2 emissions targets in

October 2021. In 2023, we have made project

commitments which deliver abatement of

around 2Mt CO 2 e per year, mostly in

renewable energy contracts and certificates,

and biofuels deployment.

By 2025 we expect to have made financial

commitments to abatement projects that will

achieve more than 15% of Group emissions.

However, our actual emissions abatement will

lag this.

These delays are the result of a range

of factors including engineering and

construction timelines, pace of development

related to new technology and energy systems

in the locations we operate, and the need to

carefully integrate our ambitions with the

needs of our local communities and

stakeholder groups. We also need additional

abatement to address underlying emissions

growth as our production plans evolve.

Progress to our 2030 target

Between now and 2030, the most significant

opportunities to reduce our Scope 1 and 2

emissions are to switch the electricity we

generate or purchase to renewables, and to

address process heat emissions from our

alumina refineries.

To reach our 2030 goals, our single largest

lever - accounting for around one-quarter of

our emissions - is to develop a competitive

renewable energy solution for the Boyne and

Tomago aluminium smelters in our Pacific

Aluminium Operations (PacOps). In December

2023, we signed a PPA to buy all the electricity,

and associated green products to be generated

in the future, from the 1.1GW Upper Calliope

Solar Farm project, which if combined with more

renewable power and suitable firming,

transmission and industrial policy, could provide

part of a solution to repower Rio Tinto’s three

Gladstone production assets (Boyne aluminium

smelter, Yarwun alumina refinery and the

Queensland Alumina Limited (QAL) alumina

refinery). Once approved and developed, this

solar project has the potential to reduce operating

carbon emissions by 1.8Mt per year.

We must also execute other key projects in our

pipeline related to renewable electricity contracts

and alumina processing heat reductions to meet

our 2030 target.

We expect to make financial commitments before

the end of the decade that will result in structural

abatement of our portfolio beyond 2030. This

demonstrates our continued commitment

towards our net zero goal.

In 2023, we built a 5MW solar plant pilot

project at Kennecott Copper. We approved,

subject to regulatory approvals, a 12.4MW

solar system and a 2.1MWh battery storage

system via long-term PPAs for Amrun. There

have been continued discussions on the

proposed coastal Pilbara solar photovoltaic

with stakeholders and we progressed studies

for further solar and wind developments.

In alumina processing, we have developed a

decarbonisation energy strategy for Yarwun and

QAL refineries. We have progressed our double

digestion pre-feasibility study at QAL which

includes the construction and commissioning of a

pilot plant to provide technical inputs to support

the study. Electric boiler feasibility studies have

progressed at Vaudreuil and we have also

approved the Yarwun Hydrogen Calcination Pilot

Demonstration Program. .

Voltalia began Phase 1 construction of a

130MW solar farm for Richards Bay Minerals

(via PPA) and construction has also

commenced on the 16MW Phase 2 Wind

project at QIT Madagascar Minerals.

In the Pilbara, we remain committed to

building 1GW of renewable energy capacity.

However, due to the extended timeline for

deployment of battery electric haulage

solutions, we now estimate that 600MW to

700MW capacity is required by 2030.

We have completed the commercial and

technical due diligence of the submissions for

supply of renewable electricity to Gladstone

aluminium assets. In 2024, we aim to progress

renewable energy supply for Boyne Smelter,

launch a Request for Proposal for renewable

energy projects for Tomago, and seek renewable

energy and storage capacity for Tranche 1 of

electrification at the Gladstone alumina refineries.

While prioritising emissions reductions at our

operations, we are also investing in nature-

based solutions (NbS) that can bring benefits

to people, nature and climate. We may retire

high quality carbon credits generated by these

projects towards our 2030 targets. This will

complement our abatement project portfolio –

which aims to reduce operational emissions by

50% by 2030 – and support our compliance

with carbon pricing regulation such as the

Safeguard Mechanism in Australia.

Our emissions reporting will continue to

transparently distinguish between our

underlying operational emissions, the volume

and type of carbon credits retired and net

Group emissions.

In 2023, our net emissions total does not include

86,000 ACCUs retired for compliance with the

Safeguard Mechanism for the period 2021-22.

We expect to include ACCUs in our net

emissions figure from 2024 onwards.

Pathway to our 2030 Scope 1 and 2 emissions target

(Mt CO 2 e, equity basis)1

Note: small differences in chart attributable to rounding.

1. Restated emissions due to Scope 2 methodology changes. Data represent gross Scope 1 and 2 emissions and direct abatement projects.

2.“Other required” will flex over time based on abatement project delivery, growth, closures and asset changes.

Scope 3: Partnering to reduce the

carbon footprint of our value

chains

In 2023, our Scope 3 emissions were 578.1 Mt

CO 2 e (equity basis), approximately 18 times

higher than our Scope 1 and 2 emissions. Most

of these emissions (94%) stem from customer

processing of our products, particularly iron ore

(69%) and bauxite and alumina (22%).

Scope 3 processing emissions related

to our iron ore rose from 386.6 Mt CO 2 e in

2022 to 399.9 Mt CO 2 e in 2023 primarily

due to an increase in production.

Downstream processing emissions from

bauxite and alumina decreased from 147.3 Mt

CO 2 e in 2022 to 129.8 Mt CO 2 e mostly as a

result of reduced emission intensities related

to aluminium smelting in China.

We have seen a significant increase in the

number of our customers setting public targets

for their Scope 1 and 2 emissions (our Scope

3). About 53% of our total iron ore sales are

now to steel producers with existing public

targets to reach net zero by 2050, up from

about 50% in 2022 and 28% in 2021.

Meanwhile, nearly 40% of our bauxite sales

are to customers with net zero emissions

targets, though only 13% of this is to

companies aiming for net zero by 2050.

As these numbers rise, we expect to enhance

our ability to partner through the value chain to

achieve our common sustainability objectives.

As things stand today, our analysis of our

customers’ targets and their governments’

commitments to reduce their emissions, shows a

trajectory for those processing emissions that

approaches net zero by around 2060.

We are committed to partner with our

customers and suppliers to find better ways to

help them achieve their targets a decade

earlier – reaching net zero by 2050.

To do this, we are investing in the development of

breakthrough technologies aiming to help

decarbonise our value chains and upgrading our

ores to be suitable for these.

As the world’s largest iron ore producer, we have a

key role to play in decarbonising the steel industry.

We are currently working with over 40 partners

across 50 projects in 10 countries. Supported by

research on our ore bodies, our objective is to

unlock the most sustainable and economic

pathways for our iron ores.

To reduce our Scope 3 emissions, we have defined

4+2 focus areas to address our Scope 3 emissions.

These include our four most significant categories

considering the magnitude of emissions and our

ability to drive meaningful incremental impact –

steel, alumina refining, shipping and procurement

decarbonisation. In parallel, we are also working on

two transversal programs aimed at leveraging our

size and scale to support collective industry and

policy action and enhancing emissions transparency

across our value chains.

Steel value chain: We are actively working

with our customers to help reduce their carbon

emissions from the current blast furnace

process. We have progressed the design plan

of the Baowu Meishan microwave lump drying

pilot plant and are also testing increased lump

usage in the blast furnace with POSCO and

Zenith. An economically viable carbon capture

technology with Shougang that could capture

blast furnace gas is also currently in

development.

As part of our focus on emerging pathways,

we aim to utilise our high-grade iron ores to

accelerate the early proliferation of low-carbon

technologies. During the year, we signed a multi-

year agreement to supply high grade direct

reduction iron ore pellets from IOC operations to

H 2 Green Steel’s integrated steel plant. We are

also evaluating a portfolio of options in energy-

advantaged regions (Canada, US, Europe,

Australia, and the Middle East) to accelerate the

build-out of natural gas and, eventually, hydrogen

shaft furnace solutions.

Due to the scarce availability of high-grade ore,

the main focus of our research and development

is on a range of new technologies that unlock

competitive low-carbon pathways for low and

medium-grade iron ores.

We are working to solve the key constraints to

this, notably removing impurities found in low-

mid grade iron ores prior to/during iron and

steel making.

We are currently evaluating the extent to which

impurities can be economically removed from our

Pilbara blend ores prior to processing and have

completed mineral resource and inventory

reviews to understand how much of our

future reserves are suitable for upgrading. Our

detailed feasibility study related to BioIron™ has

been completed and we have progressed

research on the pelletisation of Pilbara ores.

In 2023, we spent $28 million on steel

decarbonisation initiatives, and have set

specific action-oriented targets for

steel decarbonisation.

We estimate that we will spend $100 million

on steel decarbonisation in 2024.

Approximately one third of this will be capital

expenditure on BioIron™ (subject to approvals

and technical feasibility), with the remainder

being operational expenditure on our other

partnerships.

Aluminium value chain: The majority of our

product is processed in China using coal-fired

refining and smelting processes, where we

have little influence over the power source for

these electricity grids. Because of this, our

short-to-medium-term focus is to help our

customers improve the alumina refining

process to increase energy efficiency and

optimise the use of our bauxite. This is mostly

via sweetening and improved digestion and

renewable energy for heat source via

hydrogen calcination and electric boilers in the

longer term.

In 2023 we worked with three key customers

representing more than 47% of our bauxite sales,

to shortlist potential areas for future collaboration

and we are now developing action plans to

collaborate in priority ESG areas.

Procurement: Due to the nature of our

businesses, many of our purchased inputs are

from hard-to-abate sectors, such as caustic,

coke, pitch and steel. In 2023 we completed a

study to understand the sources of our

procurement-related emissions. This

enhanced our understanding of the sources

and nature of our procurement-related

emissions, including our highest emitting

categories and suppliers, and potential

abatement solutions.

Shipping: Our Scope 3 emissions from

shipping and logistics are 9.2Mt CO 2 e. We

have achieved a 37% emissions intensity

reduction relative to 2008 by incorporating

larger, more efficient vessels such as

Newcastlemaxes into our fleet, implementing

various design improvements and technical

modifications, and by ensuring the

implementation of speed and route

optimisation measures.

We continue to explore opportunities for

biofuels and liquid natural gas (LNG) and are

focused on bringing dual fuel, net zero vessels

into our portfolio by 2030.

Although the economics of implementing

these fuels remain challenging, a 12-month

biofuel trial has been completed on our owned

vessels which affirmed the fuel’s technical

viability for existing vessels.

Scope 3 near-term targets

By holding ourselves accountable on real and

measurable commitments in the near term, we

can help to make sure technologies are

developed early enough to accelerate the

transition in the long term.

Therefore, this year we have set specific near-

term targets for steel, alumina refining,

shipping and procurement decarbonisation.

To accelerate steel decarbonisation, we have

set targets to support our customers to reduce

blast furnace emissions by 20-30% by 2035,

halve our Scope 3 emissions from IOC by

20351 relative to 2022 levels, commission the

BioIron™ continuous pilot plant (CPP)1, shaft

furnace (DRI) and Electric Smelting Furnace

pilot plant by 2026 and finalise the Pilbara

beneficiation pilot plant study by 2026.

In alumina decarbonisation, we are committing to

partnerships with the goal of improving energy

efficiency, specifically via implementing and

validating digestion improvement technology and

developing approaches to control or remove

organic compounds from the refining process.

We are also committing to developing

technologies that reduce moisture in our bauxite.

In relation to shipping emissions, we are

aiming to reach net zero by 2050, have 10% of

our chartered fleet using net zero fuel by 2030

(as per our First Movers Coalition pledge),

achieve a 40% emissions intensity reduction

by 2025 with a 50% reduction by 2030, and

improve emissions reporting accuracy using

actual voyage data in 2024.

To help decarbonise our procurement, starting

in 2024, we will engage with our top 50

suppliers on decarbonisation and incorporate

it as a key criterion for all new sourcing in

high-emission categories.

1. Subject to funding approval and technical feasibility.

2023 Scope 3 emissions by category and source (equity basis)

578.1 Mt CO 2 e (2022:583.9 Mt CO 2 e)

Scope 1 and 2 greenhouse gas emissions – equity basis (Rio Tinto share 1). Performance against target

Our 2030 greenhouse gas emissions targets are to reduce our absolute Scope 1 and 2 emissions by 15% by 2025 and 50% by 2030 compared with our 2018 equity baseline. Please see page 150

of this report and our 2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology report for further detail on our emissions reporting methodology.

Changes to our 2018 baseline include: Scope 2 update to market-based methodology, the additional equity share of the Oyu Tolgoi mine that was purchased in mid-December 2022, and the

additional equity share of MRN purchased in 2023 so a like-for-like comparison can be done on progress. We have also adjusted our 2022 emissions total to compare our actual progress on

abatement in 2023 relative to other changes at our operations.

The baseline value is based on the current equity in each asset, including zero equity in divested assets.This differs from the "Scope 1, 2 and 3 greenhouse gas emissions - equity basis" table which

does not get adjusted with asset or equity changes.

1. Rio Tinto share (equity basis) represents emissions from our benefit or economic interest in the activities resulting in the emissions.

2. Scope 2 emissions in the Baseline are calculated using the market- based method.

Scope 1, 2 and 3 greenhouse gas emissions – equity basis

Queensland Alumina Limited (QAL) is 80% owned by Rio Tinto and 20% owned by Rusal. However, as a result of QAL's activation of a step-in process following the Australian Government’s

sanction measures, Rio Tinto is currently entitled to utilise 100% of the capacity at QAL, but paying 100% of the costs for as long as that step-in continues. Our 2023 equity emissions and our 2018

baseline include QAL emissions on the basis of Rio Tinto’s 80% ownership. In 2023, the additional emissions associated with the step-in were 0.8Mt. Rusal has commenced proceedings challenging

the validity of the step-in and the sanctions regime may change over time, such that the duration of the step-in remains uncertain. Historical Scope 1 and 2 emissions have been restated to reflect

improvements in data quality.

1. Scope 2: Market-based emissions reported as zero include Escondida, Resolution Copper, Weipa and Kennecott Copper with surrendered Renewable Energy Certificates (RECs) and Oyu Tolgoi

I-RECs from Inner Mongolia and nearby provinces. QMM has a wind and solar contract with energy attributes.

2. In 2023, we did not reduce our reported net emissions by using any surrendered carbon units as eligible offsets retired. Our net emissions total does not include 86,000 ACCUs retired for

compliance with the Safeguard Mechanism for the period 2021-22. We expect to include ACCUs in our net emissions figure from 2024 onwards.

3. Scope 1 and 2 equity emissions total – Location-based: 31.1Mt CO 2 e.

4. Historical information for copper equivalent intensity has been restated in line with the 2023 review of commodity pricing to allow comparability over time.

5. GHG Protocol Corporate accounting and reporting standard recommends disclosure of CO 2 emissions from biologically sequestered carbon for transparency. These are from biofuel use and are

not classified as our Scope 1 emissions.

1. Scope 2 emissions in this table are calculated using the market-based method.

Note: The sum of the categories may be slightly different to the Rio Tinto total due to rounding.

Transition materials metrics

The following table provides metrics related to the first two pillars of our business strategy (grow in materials essential for the energy transition and

accelerate the decarbonisation of our assets).

These metrics are production, revenue, capital expenditure, operating assets and emissions associated with each of our products. These products

are classified as key transition materials (KTM) and other transition materials (OTM) aligning with the CA100+ Net Zero Standard for Diversified

Mining Companies. The table also includes iron ore and gold as transition neutral materials (TNM). We divested the last of our coal assets in 2018.

Further notes on production and capacity

Mined copper: On track for 1Mt copper production within five years.

Recycled aluminium (Matalco): System capacity of 900kt; production of 582kt in 2023.

Lithium carbonate (Rincon 3000): System capacity of 3,000 tonnes by the end of 2024.

Iron ore (Pilbara System): System capacity of 345-360Mt mid-term.

Iron ore dual fines product of blast furnace and direct reduction fines (Simandou): 60Mtpa production target (Rio Tinto share of 27Mt). The

estimated annualised capacity of approximately 60 million dry tonnes per annum iron ore for the Simandou life of mine schedule was previously

reported in a release to the ASX dated 6 December 2023 titled “Investor Seminar 2023”. Rio Tinto confirms that all material assumptions

underpinning that production target continue to apply and have not materially changed.

1. Production figures are measured according to Rio Tinto's ownership % share of each site. For further details on the share %, see pages 297 and 298 of this Form 20-F where these have been

highlighted.

2. Revenue reflects third party sales by product on a consolidated basis inclusive of our share of equity accounted units.

3. Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment, capitalised evaluation costs and other intangible assets, inclusive of our share of equity

accounted units and reported by product.

4. Operating assets by product recorded above are the net assets of subsidiaries, joint operations and the Group’s share relating to equity accounted units adjusted for net (debt)/cash and post-

retirement assets and liabilities, net of tax, after the deduction of non-controlling interests.

5. Scope 1, 2, and 3 emissions are measured on an equity basis and align to the Rio Tinto ownership % share used to record production values. For additional information on our emissions

methodology, see our 2023 Sustainability Fact Book at riotinto.com/sustainabilityreporting.

6. The emissions in this table are Scope 1 and 2 GHG emissions for the operating sites producing the commodity listed. The total differs from the full Group share reported numbers as these

exclude development, closure sites, marine and corporate emissions.

7. Copper production from Oyu Tolgoi, Kennecott and Escondida has been certified under the Copper Mark system. The Copper Mark certification for Escondida has been obtained via BHP who is

the majority partner.

8. For a list of assets certified under the Aluminium Stewardship Initiative, see our 2023 Sustainability Fact Book.

9. Minerals comprise titanium dioxide slag (KTM), borates (TNM), salt (TNM) and diamonds (TNM).

10.2023 Mineral production is as follows:

–Titanium dioxide slag (‘000 tonnes): 1,111 (2022: 1,200)

–Borates (‘000 tonnes): 495 (2022: 532)

–Salt (‘000 tonnes): 5,973 (2022: 5,757)

–Diamonds (‘000 carats): 3,340 (2022: 4,651)

11. Iron Ore Company of Canada continues to be reported at Rio Tinto share.

Physical climate risk and resilience

Modelling financial exposure to

physical climate risk

Throughout 2023, we advanced our climate

physical risk modelling, in collaboration with our

climate risk consultants Marsh, and used

modelling from XDI. Our latest analysis estimates

the expected financial losses for individual

assets, considering various time horizons and

emission scenarios caused by discrete physical

climate hazards. This analysis shows the

potential financial losses associated with asset

damage, but excludes the losses associated with

business interruption or productivity loss. The

latter, while considered in the formulation of the

analysis, was excluded due to the complexity of

our value chain and the increased subjectivity of

loss attribution. This aspect may be considered in

future years and requires further analysis to fully

assess financial consequences.

Understanding and quantifying our financial

exposure to these physical climate risks is

important for prioritising our adaptation and

investment decisions, safeguarding our

assets, maintaining operational resilience,

ensuring long-term profitability, and aligning

with the evolving expectations of investors,

regulators and stakeholders.

This modelling process and methodology

considers the following:

1. Asset portfolio: encompasses a significant

breadth of assets, including mining assets

and critical infrastructure components,

which are integral to our operations. Our

modelling has considered over 18,000

individual points, each with unique latitude

and longitude coordinates, representing

assets across 76 sites in 18 countries.

Assets are geolocated, facilitating the

assessment of climate-related risks and

hazards to their specific geographic

location. Each point is assigned one of 28

asset archetypes, representing our diverse

asset base. These archetypes best define

the engineering characteristics and

specifics of that point and determine the

vulnerability to damage by different climate

hazards. Archetypes do not capture unique

design and engineering attributes of each

asset.

Only active industrial and mining facilities

were modelled, including non-managed

operations. Corporate offices and remote

operation centres have been modelled but

are not presented in this analysis. Assets in

our closure portfolio have not been

modelled, but are considered in bottom-up

physical risk and resilience assessments.

2. Climate scenarios, time horizons and

hazards: modelling considers two future

emissions scenarios - Representative

Concentration Pathways (RCPs) - from

the IPCC, including RCP4.5 (intermediate

greenhouse gas emission scenario)

and RCP8.5 (high greenhouse gas

emission scenario).

Source: The Intergovernmental Panel on Climate Change

Our physical climate risk modelling considers

present day (short term) and future risks.

Multiple future time horizons are modelled,

including 2030 (medium term), 2040 and 2050

(long term). Eight climate hazards are

modelled in this analysis, including flooding

(riverine and surface water), coastal

inundation, including sea level rise, extreme

heat, cyclonic wind, extreme wind, forest fire

and freeze-thaw.

3. Annualised damage (AD): the output of

the modelling is calculated for each asset

under various climate scenarios, time

horizons and hazards. AD, expressed as a

percentage, represents the expected

average annual damage to an asset

attributable to climate-related hazards

relative to a fixed value (eg $1 million). As

such, an AD of 0.5% would mean that for

every $1 million of exposure, $5,000 could

be damaged, on average, in any given year.

Asset-specific outputs have been

aggregated to the site, region and Group

level. Risk categorisation is based on the

AD values, with thresholds set at <0.2% for

low AD risk, 0.2-1% for medium AD risk,

and >1% for high AD risk.

Estimates consider a stationary “do nothing”

approach for our operating assets and does

not consider present or future controls,

adaptation/resilience projects that will likely

materially impact our AD cost.

Annualised damage risk scores

At the Group level, present day AD losses fall