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Rio Tinto partners with Schneider Electric to drive decarbonization through circular and sustainable market ecosystem

Rueil-Malmaison, France

23/06/2021

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Rio Tinto a leading global mining and metals company, and Schneider Electric, the leader in digital transformation of energy management and automation, have signed a memorandum of understanding (MoU) for a first of its kind collaboration to develop a circular and sustainable market ecosystem for both companies and their customers.

This multi-product partnership will see Schneider Electric use responsibly sourced materials produced by Rio Tinto. These include low carbon aluminum and copper produced with renewable power, iron ore, and borates. Rio Tinto will utilize energy and industrial services from Schneider Electric, as the companies work together to develop digital platforms, technologies and solutions to be deployed across the metals and mining supply chain to drive further decarbonization.

Rio Tinto Chief Commercial Officer Alf Barrios said: “This unique partnership will help accelerate decarbonization and renewable energy solutions by combining low-carbon materials with cutting-edge digital technology. Working together will allow Rio Tinto and Schneider Electric to pursue opportunities beyond what is possible for either company on its own. This collaboration also opens doors to consider strategic initiatives such as expanding the use of artificial intelligence and predictive analytics to reduce downtime in our plants, digitization of our supply chains, and a host of other transformative technologies.”

Schneider Electric Executive Vice-President Industrial Automation, Barbara Frei said: “We are excited to work with Rio Tinto to develop clean and pioneering solutions to meet industrial decarbonization challenges. As the world’s most sustainable corporation and a manufacturer with a global network of smart factories and smart distribution centers, Schneider Electric is on a mission to make industries of the future eco-efficient, agile, and resilient through open, software-centric industrial automation and sustainable energy solutions. This new partnership demonstrates that Rio Tinto is as passionate as we are about bridging progress and sustainability for all.”

The partnership will draw on Schneider Electric’s Energy as a Service expertise to evaluate the use of innovative solutions, including microgrids, to supply energy from low-carbon sources, and artificial intelligence and advanced analytics to help meet sustainability goals at Rio Tinto sites and throughout its supply chain.

Rio Tinto’s START traceability and transparency initiative, the first sustainability label for aluminum using blockchain technology, will be deployed with Schneider Electric to unlock value for customers, suppliers and partners. The companies will work to expand this transparency, offering START in combination with Schneider Electric’s EcoStruxure™ platform, an IoT system architecture that connects everything in an enterprise, from the shop floor to the top floor, to deliver enhanced safety, reliability, efficiency, and sustainability.

The companies will also partner to evaluate emerging innovation opportunities, such as the efficient production of critical materials for renewable technologies and advances in low-carbon, green steel manufacturing, both of which will play a significant long-term role in industrial decarbonization.

  • Rio Tinto produces high-quality iron ore, copper, aluminium, and minerals that have an essential role in enabling the low-carbon transition.

    We have publicly acknowledged the reality of climate change for over two decades and have reduced our emissions footprint by over 30 percent in the decade to 2020.

    We have set 2030 targets to reduce our absolute emissions by 15% and our emissions intensity by 30% relative to our 2018 baseline. These targets are consistent with a 45% reduction in absolute emissions, relative to 2010 levels, and the Intergovernmental Panel on Climate Change (IPCC) pathways to 1.5°C. They are supported by our commitment to spend approximately $1 billion on emissions reduction initiatives over the first five years of the ten-year target period. In 2020, we set new Scope 3 emissions reduction goals to guide our partnership approach across our value chain.

    Read more about our approach to climate change: www.riotinto.com/invest/reports/climate-change-report

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