Climate Lobbying Overview: Fortescue Metals Group (FMG) appears to support action on climate change in its top-line messaging, but has very limited engagement on specific climate-related policy. FMG’s engagement on the energy transition appears mixed, supporting a continued role for fossil fuels alongside green hydrogen in the energy mix.

Top-line Messaging on Climate Policy: FMG appears supportive of ambitious climate action in its top-line communications. In its 2021 Climate Change Report, published in August 2021, FMG supported the IPCC’s scientific consensus on climate change and the 2°C temperature goal set out by the Paris Agreement. In the same report, FMG supported “policy-driven solutions” to climate change. In an August 2021 tweet, FMG Chairman, Andrew Forrest, appeared to support a net-zero by 2050 target in Australia. In a June 2022 Renew Economy article, Felicity Underhill, a regional director of Fortescue Future Industries, stated that net-zero by 2050 is not enough, and advocated for even stronger emissions reduction targets. In September 2021, FMG also signed the “Call to Action for Shipping Decarbonization”, which called for a net-zero by 2050 target for the global shipping sector.

However, in August 2020 comments to Australia’s Productivity Commission Inquiry into Resources Sector Regulation, FMG appeared unsupportive of state-level climate policy in Australia, stressing the need for climate policy to be managed at the federal level and emphasizing the risk of policy uncertainty.

Engagement with Climate-Related Regulations: FMG appears to have limited transparent engagement with specific climate-related policy. In its 2021 Climate Change Report, published in August 2021, CEO Elizabeth Gaines welcomed increased GHG targets at national level without reference to a specific policy, or the level of ambition required. In August 2020 comments to Australia’s Productivity Commission, however, FMG did not appear supportive of the GHG guidance published by Western Australia’s Environmental Protection Authority.

Positioning on Energy Transition: FMG appears to have mixed engagement on the energy transition. In its 2021 Climate Change Report, published in August 2021, CEO Elizabeth Gaines called for a “rapid” energy transition prior to 2050, prioritizing renewable green hydrogen. In the same report, FMG also advocated the development of a green hydrogen industry in Australia. As reported by Sydney Morning Herald in March 2021, FMG Chairman, Andrew Forrest, also stated support for a coal phase out and a shift towards cleaner fuels. In a June 2022 Australian Financial Review article, Forrest also advocated that the Australian government do not use coal or gas to alleviate the ongoing energy crisis, and also appeared to support a transition away from oil and gas.

However, in its response to Australia’s Productivity Commission inquiry in August 2020, FMG appeared to support the continuation of fossil fuel exports from Australia. The company stressed that if traditional energy exports are seized, then it may limit the ability to “pursue advancement in emissions reduction related technologies with the potential for global implementation”, adding that the UNFCCC only mandates Australia to mitigate emissions within its own borders. In the same response, Fortescue also appeared to advocate for access to the judicial review process for new projects to be limited. This would make it more difficult for stakeholders to object to future fossil fuel infrastructure projects in Australia.

Additionally, in response to the EU’s initiative to remove its dependency on Russian fossil fuels, Fortescue Chairman Andrew Forrest appeared to support diversifying the EU’s energy mix through expanded role for green hydrogen in a May 2022 Motley Fool article, stating that the fuel can replace “everything which Russia produces in fossil fuel”.

Industry Association Governance: FMG disclosed a list of industry association memberships in its 2021 Climate Change Report, published in August 2021. However, there are no details of the associations’ positions on, or engagement with, climate-related policy. FMG stated that it reviews its memberships annually, but the company has not published a review of its industry associations’ alignment on climate policy. FMG is a member of several state-level industry associations engaging negatively on climate change in Australia including the New South Wales Minerals Council, the Chamber of Minerals and Energy of Western Australia and South Australian Chamber of Mines and Energy.