Storebrand AM excludes Rio Tinto PLC and Rio Tinto Ltd

Decision based on deforestation impact of mining project in the Amazon.

• Storebrand excluded Rio Tinto PLC and Rio Tinto Ltd (Rio Tinto Group) from investment in Q2
• Based on breach of deforestation criterion in Storebrand’s Exclusion Policy
• Related to bauxite mining project in Brazilian Amazon
• Storebrand AM sold off shares valued at NOK 195 million as of 31^st May, 2025

Storebrand Asset Management has excluded the companies Rio Tinto PLC and Rio Tinto Ltd (Rio Tinto Group) for breaching the deforestation criterion in Storebrand’s Exclusion Policy.

“Deforestation causes systemic risk to the global economy and financial risk in our portfolios.” - Vemund Olsen, Senior Sustainability Analyst, Storebrand Asset Management

The decision is based on Rio Tinto’s participation in the joint venture Mineração Rio do Norte (MRN), which operates a bauxite mine in the Saracá-Taquera National Forest in the Brazilian Amazon and is planning to expand the mine with effect from 2026. The expansion of the mine is planned to cover around 100 square kilometers, of which approximately 64 percent would be completely deforested during the project’s lifespan. The deforestation would contribute to loss and fragmentation of extensive areas of intact tropical rainforest, within one of the most important areas for biodiversity globally.

In November last year, the Council on Ethics for Norway’s Government Pension Fund Global (GPFG) recommended the exclusion of Rio Tinto, due to an unacceptable risk that the company contributes to severe environmental damage. Storebrand contacted Rio Tinto in May 2025 to ask for the company’s opinion on the recommendation by the Council on Ethics, expressing concern about the severe impact on intact tropical rainforest expansion of the mining area will have, and asking for confirmation of whether MRN plans to move ahead with the project. Rio Tinto confirmed the expansion plans, and pointed to MRN’s reforestation plans as a satisfactory mitigation of the project’s environmental impact.

“Tropical rainforests provide ecosystem services which society and the economy depends on. Intact Amazon rainforest areas must be off-limits for mining activities, or else we risk pushing the Amazon beyond its tipping point.” - Vemund Olsen, Senior Sustainability Analyst, Storebrand Asset Management

Storebrand does not consider reforestation to be adequate to mitigate the damage caused by the clearing of intact old growth rainforest. To be removed from Storebrand’s exclusion list, Rio Tinto should commit to using its influence within the MRN Joint Venture to halt any further deforestation in the STNF, or exit the Joint Venture.

For more in-depth information on the case >>

Additional quotes
 “A major factor in our decision was that the mine area scheduled for deforestation is located in currently intact, old growth, highly biodiverse rainforest. MRN’s expansion of the mine will result in the deforestation and degradation of one of the most biodiverse areas on Earth, not only in the mining area but also in the surrounding forest. This would have massive negative impacts on biodiversity, probably including many species not yet described by science.”

“While engagement is our preferred tool as an investor, in this case it makes no sense to engage on the quality of restoration efforts, when we know that it may take hundreds of years to restore these areas to their original state, if that is at all possible. The only valid goal of engagement would be to convince the companies to refrain from expanding the mine into intact forests.”