Climate
Climate is the greatest challenge facing the global community. It also presents a once in a lifetime opportunity for economic growth and value creation.
Targets
Fortescue’s climate targets support our commitment to decarbonisation across our operations and value chain.
Real Zero Target
FY25
2.66mt CO2e
FY24
2.38mt CO2e
FY23
2.26mt CO2e
In progress
Target continues into FY26
Steelmaking Target
FY25
1.357tCO2e/t of iron ore
FY24
1.368tCO2e/t of iron ore
FY23
1.361tCO2e/t of iron ore
In progress
Target continues into FY26
Shipping Target
FY25
0.019tCO2e/t of iron ore
FY24
0.019tCO2e/t of iron ore
FY23
0.016tCO2e/t of iron ore
In progress
Target continues into FY26
Scope 3 Target
FY25
275.88mt CO2e
FY24
269.31mt CO2e
FY23
267.61mt CO2e
In progress
Target continues into FY26
Our targets in detail
Our Real Zero Target is an emissions reduction target that aims to eliminate Scope 1 and 2 emissions from our Australian terrestrial iron ore operations by the end of 2030. This target addresses the majority of the business’s Scope 1 and 2 emissions and only relies on offsets where we are required by law to purchase them.
Our Steelmaking Target aims, by 2030, to enable a reduction in emissions intensity from steelmaking by Fortescue's customers of 7.5 per cent, from FY21 levels.
Our Shipping Target aims, by 2030, to enable a reduction in emissions intensity levels from the shipping of our iron ore by 50 per cent, from FY21 levels.
Our Scope 3 Target aims, by 2040, to achieve Net Zero Scope 3 emissions.
Detailed definitions of all targets can be found in our FY25 Climate Change Report available in our FY25 Annual Report in the Document Library
The Urgency of Climate Action
In FY25, Fortescue reinforced its leadership in addressing the global challenge of climate change, recognising it as both an urgent crisis and a transformative opportunity. With global temperatures reaching unprecedented levels in 2024 and average temperatures exceeding 1.5°C above pre-industrial times, the need for decisive action has never been clearer. As extreme weather tops the World Economic Forum’s Global Risks Report for the second consecutive year, Fortescue is committed to advancing solutions that align growth with sustainability while addressing the pressing risks of a changing climate.
Our Real Zero Target
We are focused on implementing solutions that provide a profitable pathway to reaching our Real Zero Target. Achieving profitable pathways assumes that by 2028 the policy disincentives to decarbonisation are removed. We are less than half-way through our decarbonisation journey and we have already found and are implementing profitable pathways to eliminate emissions from areas of our terrestrial iron ore operations that create the largest emissions, including power generation, mining fleet and haulage. We are now focused on identifying profitable solutions for the residual sources of emissions.
At this stage, our commitment is to eliminate emissions which are equivalent to our own equity share in our joint venture partnerships. We are also working with our joint venture partners to encourage the elimination of emission equivalent to their equity shares in those joint ventures.
FY25 Key Milestones
In FY25, Fortescue continued to expand its portfolio of actionable decarbonisation projects. Key milestones include the commissioning of a 100MW solar farm near the Iron Bridge mine, which now supplies 25 per cent of the mine’s electricity needs, and signing major equipment contracts with leading manufacturers. These include agreements for ammonia-powered shipping, electric drill rigs, and zero emission mining machines, including autonomous battery-electric trucks. Furthermore, we awarded a contract to XCMG, with a potential value of over US$400 million, to purchase over 100 pieces of zero emissions Heavy Mobile Equipment, demonstrating decarbonisation in action.
100MW
Solar Farm commissioned near Iron Bridge mine
25%
Mine's electricity needs powered by our Solar Farm
$400M
Contract with XCMG for over 100 pieces of zero-emissions heavy mobile equipment
Accelerating Decarbonisation
Key areas
Looking Ahead
As climate impacts intensify and the urgency of decarbonisation grows, Fortescue remains confident in its ability to lead. The FY25 Climate Change Report highlights our achievements, challenges, and opportunities, providing a framework for continued progress. Fortescue’s goal of building a climate-resilient business by 2030 remains within reach—delivering value for all stakeholders while contributing to a cleaner, more sustainable future.
Our Reporting on Climate Change
Our Climate Transition Plan and our annual Climate Change reports are essential components of disclosures on our ambition, activities and performance related to climate.
FY24 Climate Transition Plan
Our FY24 Climate Transition Plan outlines specific actions we are taking to work towards our emissions reduction targets, including detailed pathways, timelines and the implementation of low-carbon technologies and practices. It communicates our progress towards our ambition to accelerate decarbonisation on a global scale, and highlights achievements, challenges and adjustments made throughout the reporting period. This report ensures transparency and accountability by showing stakeholders the tangible results and advancements in our climate actions.
We will publish an update of this plan in September 2025.
FY25 Climate Change Report
The FY25 Climate Change Report has been prepared for Fortescue’s stakeholders and details our progress in managing climate-related matters, including risks and opportunities. It is aligned with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD), which has guided our climate-related reporting since FY18.
During FY25, the Australian Treasury changed legislation to enact new policy for climate change reporting. Under this new regime, the measurement and disclosure of climate-related financial information is guided by Australian Sustainability Reporting Standard (ASRS) AASB S2 Climate-related disclosures (AASB S2) issued by the Australian Accounting Standards Board (AASB). AASB S2 has its genesis in TCFD recommendations.
While we continue to report under the TCFD framework, we are preparing our business for ASRS compliance. This report contains many elements of additional disclosures that will be required under AASB S2 from FY26.
