The company improved its CAP, increasing transparency and engagement regarding future investments in downstream steel decarbonisation and transition metals, clarifying its views on possible future climate scenarios, and increasing disclosure on corporate lobbying and alignment. This helps us assess the company's positioning and the resilience of future cash flows across different commodity demand and policy pathways. We supported the renewed CAP at the 2025 AGM and will continue to monitor delivery. We opposed the activist's unification proposal after reviewing the benefits and trade-offs. After initial discussions in 2025, we are continuing dialogue on physical risk and adaptation.

Over the course of our ownership of Rio Tinto, we have engaged on a wide range of governance and sustainability considerations, including board composition, community relations and mine safety. We have been speaking to the company about its approach to environmental risks and opportunities for more than ten years, and this has been a particular focus area since our opposition to the CAP at the 2022 AGM. This was the first time the company put its CAP to a non-binding advisory shareholder vote and committed to triennial shareholder approval. After discussions with the company, we concluded that the strategy lacked the detail and ambition to be expected of a company with a large market capitalisation operating in a high-impact sector. This assessment reflected the possible risks for Rio Tinto and its impact on stakeholders. We believe that direct risks to the company's operations and any impact on more broadly defined stakeholders – its workforce and local communities, for example – could materially impact long-term investment returns if not appropriately managed. We continued engaging with the company to share our expectations ahead of a renewed shareholder vote in 2025.

This assessment reflected the possible risks for Rio Tinto and its impact on stakeholders. We believe that direct risks to the company's operations and any impact on more broadly defined stakeholders – its workforce and local communities, for example – could materially impact long-term investment returns if not appropriately managed. We continued engaging with the company to share our expectations ahead of a renewed shareholder vote in 2025.

Concurrently, in 2024, activist investor Palliser campaigned for an independent review into unifying share classes under a single listing at the 2025 AGM. Palliser argued that unification would unlock shareholder value and simplify the company's governance structure. We assessed the merit of this proposal and engaged with the company alongside our engagement on the CAP, focusing on the net effect on long-term shareholder value, balancing any potential valuation uplift against management distraction from operating performance and capital allocation decision-making.