Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Australia
  4. Australian Stock Exchange
  5. Rio Tinto Group
  6. News
  7. Summary
    RIO   AU000000RIO1

RIO TINTO GROUP

(RIO)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Rio Tinto exits seen reverberating across boardrooms

09/11/2020 | 10:00am EDT
The Rio Tinto mining company's logo is photographed at their annual general meeting in Sydney

The departure of Rio Tinto Chief Executive Jean-Sebastien Jacques over the destruction of ancient Aboriginal heritage sites in Australia has put mining executives globally on notice - ignore cultural and social issues at your peril.

Tens of billions of dollars have been poured into companies based on environmental, social and governance (ESG) factors giving ethically-minded investors greater clout in how companies handle corporate crises.

Jacques and two deputies resigned on Friday after weeks of shareholder pressure over what was seen as the miner's inadequate initial response to the destruction of the rockshelters - a board-led inquiry found no single individual was at fault and reprimanded the three senior executives by trimming bonus payments.

"For the CEO and a couple of senior management to go over an ESG issue, it's just going to reverberate through board rooms throughout the resource sector," said Ben Cleary, a partner at Tribeca Investment Partners.

The backlash over the destruction of the rockshelters coincided with protests in the United States over racial injustice and became one facet of the Black Lives Matter demonstrations in Australia.

As companies in the United States and elsewhere grapple with addressing racism and inequality, social issues -- the S in ESG -- are gaining traction where once climate change and executive pay -- the E and G -- dominated.

In ESG investing, fund managers talk about a company's 'social license'. Unlike a legal license, the social license is an intangible asset based on the company's ESG reputation.

"Reputation is now the thin red line between license to operate and failure," said Neville White, Head of Responsible Investment Policy & Research at Edentree Investment Management.

"The Board has not acquitted itself with glory especially by assuming a financial penalty would be enough - placing a value on the irreplaceable added insult to their destructive injury."

One London-based fund manager, who declined to be named, said miners globally were going to have to be more mindful of the impact of their operations on indigenous people.

Rio chairman Simon Thompson said on Friday that what happened at the site had been wrong and that the company was "determined to ensure that the destruction of a heritage site of such exceptional archaeological and cultural significance never occurs again".

Rio's detonations, which allowed it to access higher grade iron ore, came amid a wider movement in Australia focused on the treatment of Aboriginal groups, who fall behind the general population on markers ranging from child mortality to literacy.

Land rights barrister Greg McIntyre said it was too early to say whether Rio's move signalled a turning point in relation to dealings with Aboriginal groups.

"What it does indicate is that this issue is being taken seriously, which is a positive development, but it's not a solution to the problem."

By Paulina Duran and Byron Kaye


ę Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
3I GROUP PLC -1.36% 1270.5 Delayed Quote.11.10%
RIO TINTO GROUP 1.47% 134.17 End-of-day quote.17.87%
RIO TINTO PLC -3.32% 6083 Delayed Quote.14.92%
All news about RIO TINTO GROUP
03:31aGlencore ups expectations for FY trading, lowers nickel, coal
RE
07/29Australia shares edge lower as tech stocks weigh, Origin Energy top loser
RE
07/29RIO TINTO : Miner Turquoise Hill's profit beats on strong output, metal prices
RE
07/29Miner Turquoise Hill's quarterly profit up over 33%
RE
07/29European ADRs Move Higher in Thursday Trading
MT
07/29Today on Wall Street: GDP growth misses estimates
07/29RIO TINTO : Half Year Results 2021 - Release
PU
07/29RIO TINTO : UBS keeps a Sell rating
MD
07/29RIO TINTO : Deutsche Bank reiterates its Neutral rating
MD
07/29ANALYST RECOMMENDATIONS : Facebook, Microsoft, PayPal, Tesla, Shopify...
More news
Financials (USD)
Sales 2021 67 035 M - -
Net income 2021 24 491 M - -
Net cash 2021 4 460 M - -
P/E ratio 2021 5,86x
Yield 2021 13,2%
Capitalization 146 B 146 B -
EV / Sales 2021 2,12x
EV / Sales 2022 2,58x
Nbr of Employees 47 500
Free-Float 65,3%
Chart RIO TINTO GROUP
Duration : Period :
Rio Tinto Group Technical Analysis Chart | RIO | AU000000RIO1 | MarketScreener
Technical analysis trends RIO TINTO GROUP
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 24
Last Close Price 87,77 $
Average target price 90,16 $
Spread / Average Target 2,71%
EPS Revisions
Managers and Directors
Jakob Stausholm Chief Executive Officer & Executive Director
Peter Lloyd Cunningham Chief Financial Officer & Executive Director
Simon Robert Thompson Chairman
Arnaud Soirat Chief Operating Officer
Megan Clark Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
RIO TINTO GROUP17.87%146 357
BHP GROUP25.69%181 581
RIO TINTO PLC14.92%142 073
ANGLO AMERICAN PLC35.82%53 738
GRUPO MÉXICO, S.A.B. DE C.V.15.37%37 634
SAUDI ARABIAN MINING COMPANY (MA'ADEN)72.59%22 509