Other Sustainability Information

Our approach to sustainability

This content provides insight into Fortescue’s approach to sustainability across our operations, growth and energy activities. It details our focus on materiality, governance, and operating with integrity, while highlighting our stakeholder engagement practices, commitment to tax transparency, and sustainable practices in our value chain, including suppliers and products.

Sustainable Finance

In 2021, Fortescue established a Sustainability Financing Framework to enable the future issuance of green and social debt instruments which will support our investments in eligible green and social projects. 

The framework reflects our strong ongoing commitment to sustainability leadership and acts to align our funding policy with our sustainability strategy and climate change objectives, while mobilising investors to contribute capital towards the realisation of the SDGs. 

The framework outlines eligible projects including renewable energy, green hydrogen and ammonia, sustainable water management and socioeconomic advancement and empowerment initiatives. It also outlines a range of impact indicators that will be used for impact reporting for the use of proceeds.

In April 2022, we issued our inaugural green bond for US$800 million. For information on our FY25 allocation, please see our FY25 Annual Report in our Document Library. 

Sustainable Supply Chain

We are committed to advancing sustainable supply chain practices. This includes our upstream suppliers who support and contribute to our operations, projects and products. There are a broad range of sustainability factors that are considered in our contracting approach. Our key sustainable supply chain pillars include human rights, greenhouse gas emissions, circularity and traceability.

Transformation Program

In FY25, we accelerated our transformation program for embedding sustainable supply chain into Contracts and Procurement. We focused on building a solid foundation by redesigning and consolidating our governance, tools and templates (Toolkit) to be fit for purpose for global application and progressing our approach towards best practice. 

External facing documents:

• Sustainable Supply Chain Principles (new) describes our vision and future state ambition. 

• Sustainable Supply Chain Standard (revised) sets out our minimum expectations for all suppliers providing goods, services and works globally, including contractors and subcontractors and their workforce, and workers in the respective supply chains.

Updates to our internal Toolkit:

• Sustainable Supply Chain Procedure (new) explains how to apply sustainability throughout source to contract and undertake appropriate due diligence.

• Sustainability Assessment (new) is used to determine sustainability risks and opportunities for each sourcing activity.

• Enhanced Due Diligence Supplier Questionnaires and Guideline (revised) standardises our approach to sustainable supply chain due diligence globally. Key criteria includes traceability (supply chain mapping), human rights and modern slavery, and newly introduced circularity/stewardship measurements.

In March 2025, we launched our Sustainable Supply Chain Learning Academy with five mandatory modules for all Contracts and Procurement team members to complete by December 2025. The content is designed to empower team members to integrate sustainability requirements into their contracting strategies and supplier relationship management approaches. It also supports the implementation of our revised Toolkit, published in June 2025, which applies to all global Contracts and Procurement sourcing activities from 1 July 2025, including Fortescue Zero.

Decarbonisation Program

Our decarbonisation strategy encompasses a comprehensive approach to managing and responding to climate-related risks and opportunities. This strategy is designed to accelerate our transition towards a low-emissions and climate-resilient economy.

In line with this strategy, we prioritise supplier engagement based on their Scope 1 and Scope 2 emissions and the extent to which they are advancing the electrification of their site assets, such as Heavy Mining Equipment, Light Mining Equipment, Small Mining Equipment, and Light Vehicles.

In FY25, we discussed decarbonisation opportunities with 46 strategic suppliers and hosted multiple online supplier forums throughout the year, including a training workshop to launch our equipment tracking tool for 203 contractors.