Loading Mr Thompson said the mining industry recognised that it had a profound impact on wider society, both positive and negative. It creates jobs, tax revenue, economic prosperity for remote regions, and the raw materials that are "essential for human progress", he said. But it also has negative environmental and social impacts, including land disturbance, significant water consumption and climate change. Sustainability, social responsibility and other so-called ESG (environmental, social, governance) issues are growing focus areas for mining companies in Australia and worldwide in the face of heightened scrutiny from investors and a spate of shareholder resolutions targeting heavy emitters. The International Council on Mining and Metals told a mining conference in Melbourne earlier last month that there had been a “convergence” of the environmental and social demands of communities in which miners operated and the demands of institutional shareholders. Mr Thompson said the Rio Tinto board considered investment in ESG issues to be a "source of differentiation". He said the company's portfolio was in "very, very good shape" as climate change had "been integrated into our strategic planning for nearly two decades". "Many of the global mega trends that we see today do indeed support demand for our products – for example, urbanisation and the growth of the middle class. But others clearly pose a major threat," he said. "I hope that the centrality of ESG issues to many of our board discussions is already evident, as we continue to reshape our portfolio for the transition to a low-carbon economy."
Speaking at an investor meeting in Australia on 26 November, Simon Thompson said that inaction on climate change posed “perhaps the greatest long-term threat” to the mining company’s business. The company has been under pressure from environmental groups and politicians for its coal seam gas (CSG) operations in Queensland. Rio Tinto is the latest leading mining and resource firm in the country to warn about the dangers of political inaction on climate change and to demand a carbon price.