Jesuits May Divest from Rio Tinto Due to Ongoing Environmental Concerns
Jesuits Consider Divestment Over Environmental and Ethical Issues
Background of Jesuit Engagement with Rio Tinto
May 6 (Reuters) - The Jesuits in Britain, a Catholic religious order, may sell its stake in Rio Tinto following unsuccessful engagement with the mining giant over environmental concerns in Madagascar and Guinea, its head of ethical investments said on Wednesday.
"We've engaged with Rio the last three, possibly four years coming to AGMs," said Stephen Power SJ, who oversees ethical investments for the order, at Rio Tinto's annual general meeting.
Concerns Over Water Contamination in Madagascar
Issues with Reporting and Transparency
Power added that Rio Tinto's handling of water contamination issues at its Madagascar operations were particularly troubling, with key water reports arriving late, lacking the required detail, or not materialising at all.
Environmental and Health Impacts
Environmental groups have for years said that water downstream of Rio Tinto's southern Madagascar mine contains high concentrations of uranium and lead, potentially endangering local residents who depend on nearby sources for drinking water.
Risks to Local Communities
Lead exposure can impede children's mental and physical development, while uranium poses kidney damage risks.
Rio Tinto’s Response
Rio Tinto chair Dominic Barton said the company has "focused a lot of time" on water quality and flows. He noted external assessments show "regulated metals consistently below laboratory limits of detection."
Broader Environmental and Ethical Concerns
Issues Beyond Madagascar
The Jesuits' concerns extend beyond Madagascar to include Rio Tinto's Simandou project in Guinea and the company's Scope 3 emissions - indirect greenhouse gas emissions from its value chain.
Faith-Based Investor Pressure
The potential divestment reflects growing pressure on mining companies from faith-based investors demanding greater environmental accountability and community protection.
(Reporting by Melanie Burton, Clara Denina, Editing by Louise Heavens)
