Climate
Climate Change can affect Fortescue through changes in markets, policy, technology and customer demand, as well as through more severe physical climate hazards. Understanding these risks and opportunities, and how our business may respond under different conditions, supports our strategic and operational decision-making.
Fortescue’s Pilbara iron ore operations and export value chain are exposed to extreme heat, tropical cyclones, intense rainfall and flooding, severe storms, bushfire weather, sea-level rise and rainfall variability. These hazards may disrupt mining, processing, rail or port operations, damage infrastructure and affect shipments. In FY26, these disruptions remained within expected operational parameters and had no material financial impact.
In FY26, our emissions profile reflected the growth and scale of our mining operations. The increase in Scope 1 emissions was attributed to increased iron ore shipments, increased gas consumption as Iron Bridge ramped up and an increase in total materials moved to meet the mine plan.
Scope 1 and 2 emissions within the scope of our Real Zero Target increased from 2.60 MtCO₂-e in FY25 to 2.72 MtCO₂-e in FY26. This increase is consistent with our transition plan, under which emissions are expected to increase in the short term as production increases and while we deploy low-emissions technology. Based on current projections, these emissions are expected to decline from FY28.
Our climate-related targets remain unchanged. Achievement of the Real Zero Target remains dependent on technical performance, approvals, supply-chain delivery and the ability to implement solutions on a profitable basis.
Read more in our FY26 Sustainability Report.
Our Real Zero Target
We use this term (Real Zero Target) to refer to Fortescue’s target to eliminate Scope 1 and 2 emissions from our Australian terrestrial iron ore operations in the Pilbara by the end of 2030. Our commitment is to eliminate emissions which are equivalent to Fortescue’s equity share in our joint venture partnerships. We are also working with our joint venture partners to encourage the elimination of emissions equivalent to their equity shares in those joint ventures.
For the purpose of this target, “terrestrial” means that Scope 1 shipping emissions are excluded. These emissions are addressed through our Shipping Target.
CLIMATE-RELATED RISKS AND OPPORTUNITIES
Fortescue identifies and assesses climate-related risks and opportunities through our risk management, strategy, financial planning and investment processes.
In FY26, our Sustainability Report: Climate Statements identified one physical risk: operational disruptions due to climate-related events. These events may affect mining, processing, rail and port operations, asset integrity, shipment volumes, operating costs and cash flows.
The disclosures also identified two transition risks: policy and regulatory uncertainty and market exposure. These risks may affect costs, competitiveness, customer demand, product quality requirements, grade preferences and pricing dynamics as climate policy, carbon compliance, maritime regulation and steel value chain decarbonisation evolve.
Fortescue also identified two transition opportunities: industrial decarbonisation and electrification, and diversification into materials needed for the energy transition. These opportunities include renewable power, battery storage, electrified mining equipment, Fortescue Zero technologies, Green Metals and critical minerals such as copper.
In FY26, Fortescue used climate-related scenario analysis to test how different climate, market, policy and technology conditions could affect our strategy and business model. Subject to the scope, assumptions and uncertainties described in our Sustainability Report: Climate Statements, the assessment indicates that Fortescue’s strategy and business model remain resilient under the scenarios assessed. This does not mean climate-related risks could not have a material effect on Fortescue in the future.
Our Reporting on Climate
FY26 Sustainability Report: Climate Statements
Our FY26 Sustainability Report: Climate Statements within our Annual Report provides Fortescue’s statutory climate-related financial disclosure. It covers governance, strategy, risk management, climate-related risks and opportunities, resilience, metrics and targets, including Scope 1, Scope 2 and relevant Scope 3 greenhouse gas emissions.
This is Fortescue’s first climate-related financial disclosure prepared in accordance with Australian Sustainability Reporting Standard AASB S2 Climate-related Disclosures and the climate statement requirements of the Corporations Act 2001.
Climate Transition Plan 2026
Our Climate Transition Plan 2026 outlines the actions, pathways and assumptions that underpin Fortescue’s decarbonisation strategy and emissions reduction targets. It provides an update on progress during FY26, including key developments, achievements, challenges and adjustments made to our approach throughout the reporting period.
Previous reports and other resources
Explore our FY26 Sustainability Document Library for previous reports, supporting sustainability resources and other publications that complement the information presented on this site.
