Fortescue Ltd.

Fortescue Ltd. is a senior iron producer headquartered in Perth, Australia, operating primarily in Australia. The company's portfolio consists of 4 projects, comprising 3 operating mines and 1 exploration project, in addition to several early-stage exploration prospects. Key assets include Iron Bridge, Western Hub, and Chichester Hub. The organization's business model is centered on an integrated technology, energy, and metals framework designed to accelerate industrial decarbonization. A key competitive advantage is the in-house development of green technologies and zero-emission power systems through its dedicated technology and engineering business, which are first deployed within its own operations before being commercialized for external sale. This vertical integration creates a unique feedback loop, allowing for rapid prototyping and real-world testing of innovations in demanding industrial environments. The operational approach leverages a comprehensive value chain, from exploration and processing to logistics and marketing, to maximize efficiency and value. The business structure is designed to support three distinct but interconnected pillars: a core metals business, a global green energy project portfolio, and a green technology development arm. This model positions the entity not just as a producer but as a key enabler of the energy transition for heavy industry, creating diversified revenue streams and mitigating risks associated with traditional commodity cycles.

Strategic direction is anchored by a commitment to achieve Real Zero terrestrial emissions by 2030, which involves eliminating fossil fuel use from its operations without reliance on voluntary carbon offsets. A core component of this strategy is a US$6.2 billion capital investment plan to deploy renewable energy generation, battery storage, and a green mobile fleet. The enterprise is concurrently building a global portfolio of green energy projects, with a disciplined capital allocation framework that requires projects to be economically viable before reaching a Final Investment Decision. This involves prioritizing investments in jurisdictions with supportive regulatory environments and favorable green power costs. A long-term objective is the development of a green metal supply chain, supported by investments in innovative processing technologies that utilize green hydrogen. The company's financial strategy emphasizes maintaining a strong balance sheet to fund growth while delivering consistent shareholder returns, ensuring that its decarbonization and energy transition initiatives are pursued profitably and sustainably.

Executive leadership operates under a dual-CEO structure, with separate chief executives for the Metals and Energy divisions, both reporting directly to the Board. The Board of Directors, as of June 30, 2024, consists of 9 members, including 2 executive directors and 7 non-executive directors, with an additional non-executive director appointed in August 2024. A comprehensive annual evaluation process is in place for the Board and its committees to assess performance. Effective July 1, 2024, the Board restructured its committees to enhance oversight, establishing 3 primary bodies: the Audit, Finance and Risk Management Committee; the People, Remuneration and Nomination Committee; and the Safety and Sustainability Committee. The governance framework is built upon a set of core values, including safety, empowerment, and stretch targets, which guide decision-making and corporate culture. This structure is designed to provide focused leadership on both the core business and its ambitious growth initiatives in the energy sector, while ensuring robust independent oversight.

The sustainability approach is defined by a commitment to achieve Real Zero Scope 1 and 2 terrestrial emissions by 2030 and net-zero Scope 3 emissions by 2040. A key initiative supporting this goal is the cessation of purchasing voluntary carbon offsets, with funds redirected toward direct decarbonization activities. The organization's social commitment is demonstrated through its Billion Opportunities program, which has awarded over A$5 billion in contracts to First Nations businesses since its inception in 2011. Workplace safety is a primary focus, with a commitment to a year-on-year reduction in the Total Recordable Injury Frequency Rate. Environmental stewardship extends to biodiversity, with a strategy to achieve a net positive impact by 2030, and responsible water management, including improving water use efficiency. The company utilizes a double materiality assessment to identify and prioritize sustainability-related risks and opportunities, ensuring its strategy remains aligned with stakeholder expectations and evolving global standards.

The corporate structure includes several key joint ventures to advance strategic objectives. An unincorporated joint venture with Formosa Steel IB Pty Ltd was established for a specific magnetite operation. In 2024, the company announced a landmark joint venture with OCP Group to develop green hydrogen, ammonia, and fertilizer production capabilities. The entity also holds a 72% interest in an incorporated joint venture, Ivindo Iron SA, to advance an exploration and development project. To accelerate its green energy ambitions, the organization established Fortescue Capital, a distinct investment platform designed to raise third-party capital from institutional investors for its portfolio of green energy and decarbonization projects. Substantial shareholders include institutional custodians such as HSBC Custody Nominees and J P Morgan Nominees, alongside significant holdings by Valin Investments (Singapore) Pte Ltd and Tattarang Pty Ltd, reflecting a diverse investor base.