Rio Tinto, China Baowu Sign Pact Aimed at Improving Steel-Sector Emissions
September 25 2019 - 7:59AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--Rio Tinto PLC (RIO.LN) on Wednesday signed a partnership
agreement with China's biggest steelmaker, China Baowu Steel Group
Corp., and a Chinese university to explore ways to cut the steel
industry's giant carbon footprint.
Rio Tinto said the memorandum of understanding with Baowu and
Tsinghua University would pave the way for a working group to
develop and implement new methods of reducing steel-sector
emissions and improving the industry's environmental performance
more broadly. Rio Tinto is the world's second-biggest mining
company by market value and a top producer of iron ore, a key
steel-making ingredient.
The global steel industry accounts for between 7% and 9% of
direct emissions from the use of fossil fuel, according to the
World Steel Association.
"The materials we produce have an important role to play in the
transition to a low-carbon future and we are committed to
partnering with our customers and others to find the most
sustainable ways to produce, process and market them," said Rio
Tinto Chief Executive Jean-Sébastien Jacques.
Rio Tinto has faced questions from investors and activists on
how it might help address the pollution customers create when using
its products, particularly iron ore. The miner earlier this year
signaled it would seek to address climate issues by collaborating
with customers, rather than seeking to set targets for them, and
Mr. Jacques said Wednesday's agreement is a "pioneering
partnership."
China Baowu Chairman Chen Derong said the steelmaker hopes to
jointly tackle climate challenges with its partners in the MoU to
help create a less-polluting steel industry.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
September 25, 2019 07:44 ET (11:44 GMT)
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