Modernising Agreements and Transition to Renewables
Maintaining our rigorous approach to investments
Final decision
Independent
Investment
business and
Committee
technical teams
Evaluation
committee
Product Group
level governance
and investment
committees
Project
review
Rio Tinto
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Board
Investment
themes
Evaluation
criteria
Commodities which enable
the energy transition
Decarbonisation
Independent Economics
team sets prices
(including carbon),
global scenarios and
discount rates
Set ranking
criteria
Scenario based NPV, IRR,
payback ranges
Opportunity
development
Detailed Risk
assessment (including ESG)
Controlled risk taking allows for more
opportunities
Using a range of criteria across
different investment opportunities
Integrity
Rigorous assessment of options
Decarbonisation
Capital intensity of CO2 reduction
| Cost of capital
Growth
Embedded options | Cost position
| Valuation
M&A
Embedded options | Cost
position | Strategic fit | Right owner
| Valuation
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