Paola Kistler Global Practice Leader Product Stewardship

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

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

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

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

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

6. The Mitigation Hierarchy Rio Tinto’s Biodiversity Strategy

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

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

9. 2009 Group Values Assessment Over the next 5 years Rio Tinto will focus its management actions on the sites that have a very high or high biodiversity context ranking Rio Tinto’s Biodiversity Strategy

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

11. 7000 6000 Cumulative Impact Avoided Through Effective 5000 Threat Reduction (Avoidance and Potential gross Minimization) cumulative impact without threat 4000 reduction or Cumulative Impact to Biodiversity Feature (e.g. hectares of sensitive habitat) compensation 3000 Actions Actual gross required to cumulative mitigate residual impact with footprint and 2000 threat reduction achieve NPI (Restoration, Actual residual Offsets, ACAs) NPI Baseline cumulative impact with 1000 threat reduction and Pre-2004 footprint not compensation requiring compensation 0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Deadline for NPI Baseline Year achieving NPI The BAP results in a plan to get from….. Here To Here Rio Tinto’s Biodiversity Strategy

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

13. Quality Hectares at QMM • NPI accounting carried out as part of QMM BAP • Current analysis shows that, QMM has a Net Positive Impact on forest types in the period 2004-2015 (period 2010 to 2015 predictive). • As the project progresses post 2015 it may become net negative as biodiversity impact (through clearance becomes greater than present compensation measures • Additional compensation measures are being developed to counter this clearance Rio Tinto’s Biodiversity Strategy

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

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

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

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