Executive Summary

Rio Tinto Borax defines its contribution to sustainable development through its approach to safeguarding people and the environment, collaborating with customers and neighbors, and investing in new technologies, products and applications.

In 2004, the company focused on more rigorous evaluation of the social, environmental and economic risks and opportunities associated with each of its key business processes. While the concentration was on internal processes, Borax relied on external judgment for guidance, inviting stakeholders from around the world to share their comments and criticisms of the company's Sustainable Development program.

While some of the company's metrics and targets have changed, its commitment to improvement remains constant. Nowhere is this commitment more important to Borax than in the area of safety, and we are proud to report that, in 2004, more than 1,600 employees and contractors achieved the best safety record in company history.

Borax was recognized for its environmental performance in 2004 as the first mining company to win the California Governor's Award for Environmental and Economic Excellence and the first to certify its greenhouse gas emissions with the state's Climate Action Registry. However, although the company did meet or exceed environmental regulations, it also fell short of meeting its own internal targets to lower energy, water use and emissions, and to rehabilitate land disturbed by mining.

Partnerships with customers and communities made a positive contribution to people and the planet. Borax enlists the help of local horticulture students to meet plant diversity requirements associated with returning land to its natural state. On the other side of the world, the company partners with academic institutions and governments to help farmers in India and China improve crop yield and quality.

Borax made the most of rising demand for refined borates and promising new applications in building materials and consumer electronics in 2004. Good financial performance continues to give the company means to invest in improvements – even in its financial practices. Borax was among the first of Rio Tinto's worldwide businesses to begin the process of complying with new legislation enacted to improve the accuracy and reliability of financial statements – Sarbanes-Oxley (SOX) section 404 – and remains committed to proving that good corporate citizenship is good business.