Materiality

Materiality at Fortescue

Sustainability at Fortescue includes a consideration of both the the impacts and dependencies we have on the environment and people. Those dependencies result in risks and opportunities including those from climate change, global environmental concerns, human rights violations and shifting societal expectations.

Fortescue’s group wide risk management approach is operationalised through our Risk Management Framework and provides a consistent approach to identifying, assessing and managing risks. The Framework consists of a Risk Management Policy, a Risk Management Standard and a Risk Management Procedure.

Our Approach to Materiality

We focus on what is material. This includes what is material to our stakeholders (impact materiality) and what activities and topics are or have the potential to be financially material to our business (financial materiality).

Assessment Overview

In FY24, Fortescue performed a sustainability double materiality assessment, considering both impact and financial materiality. The assessment formed the basis for refreshing our sustainability strategy and material topics. For more information, please see FY24 Sustainability Materiality Report in our Document Library.

In FY25, Fortescue refreshed our materiality assessment, again considering both impact and financial materiality. For more information, please see FY25 Sustainability Materiality Report in our Document Library.

Following this review, Fortescue's Pillars have been simplified to better reflect Fortescue’s sustainability focus areas: Climate, Nature and People. Updates to material topics included:

Consolidation from 16 to 12. The material topics identified for Fortescue have been allocated to the most relevant pillar, noting that by their nature, many of these topics are inter-related across two or more pillars.
The ‘Procurement and marketing’ and 'Product stewardship' have been removed from our list of material topics and the risks, opportunities and impacts previously associated with these areas will be addressed within other material topics, largely within Climate.
Similarly, ‘Innovation’ has been removed as a standalone material topic and will be addressed as a component of other material topics.
‘Human rights’ was previously managed as an overarching component of sustainability and is now primarily managed as a discrete material topic, whilst acknowledging the linkage of human rights to those material topics with corresponding salient human rights risks.
‘Business integrity’ and 'Product stewardship' are now managed as overarching enablers of sustainability, similar to governance and stakeholder engagement, rather than as distinct material topics.
The ‘Climate and decarbonisation’ material topic has been renamed as ‘Climate’ for simplicity and now incorporates ‘Energy and resources’ content that was previously managed as a separate material topic.

Insights from the double materiality process inform Fortescue’s assessment of material risk exposures, while risks captured in the enterprise risk management platform continually feed into sustainability materiality reviews. This ongoing, iterative process helps ensure alignment between sustainability priorities and enterprise risk oversight. For more information, please see the Corporate Governance Statement in the FY25 Annual Report in our Document Library.

Sustainability-related risks and opportunities are also considered as part of functional risk assessment processes by business area, project and facility. Ensuring sustainability risks are adequately considered in our functional risk assessments is an area of continued focus for Fortescue.

Materiality

Materiality at Fortescue

Our Approach to Materiality

Assessment Overview

In FY25, Fortescue refreshed our materiality assessment, again considering both impact and financial materiality. For more information, please see FY25 Sustainability Materiality Report in our Document Library.

Following this review, Fortescue's Pillars have been simplified to better reflect Fortescue’s sustainability focus areas: Climate, Nature and People. Updates to material topics included:

Consolidation from 16 to 12. The material topics identified for Fortescue have been allocated to the most relevant pillar, noting that by their nature, many of these topics are inter-related across two or more pillars.

The ‘Procurement and marketing’ and 'Product stewardship' have been removed from our list of material topics and the risks, opportunities and impacts previously associated with these areas will be addressed within other material topics, largely within Climate.

Similarly, ‘Innovation’ has been removed as a standalone material topic and will be addressed as a component of other material topics.

‘Human rights’ was previously managed as an overarching component of sustainability and is now primarily managed as a discrete material topic, whilst acknowledging the linkage of human rights to those material topics with corresponding salient human rights risks.

‘Business integrity’ and 'Product stewardship' are now managed as overarching enablers of sustainability, similar to governance and stakeholder engagement, rather than as distinct material topics.

The ‘Climate and decarbonisation’ material topic has been renamed as ‘Climate’ for simplicity and now incorporates ‘Energy and resources’ content that was previously managed as a separate material topic.

Sustainability-related risks and opportunities are also considered as part of functional risk assessment processes by business area, project and facility. Ensuring sustainability risks are adequately considered in our functional risk assessments is an area of continued focus for Fortescue.