Governance
Our Governance Framework
Fortescue’s governance framework ensures strong oversight and accountability for the development and execution of our Climate Transition Plan. Detailed information about governance structures, roles, and responsibilities is outlined in our FY25 Annual Report, available on our website.
Board
The Board holds ultimate responsibility for the Climate Transition Plan, including approving climate-related targets and monitoring progress against decarbonisation initiatives.
The Board Committees play critical roles in supporting climate-related governance:
Management
The day-to-day execution of Fortescue’s business strategy, including climate-related initiatives, is delegated to the executive team.
Climate-related progress is monitored through two key executive committees.
Fortescue’s dedicated Sustainability team, led by the Director of Sustainability and External Affairs, oversees the coordination, review, and approval of Climate Transition Plan disclosures.
Culture
Fortescue’s Values form the foundation of our approach to aligning culture with the Strategic Ambition of our Climate Transition Plan. While we recognise that this is an ongoing process, we are committed to creating a culture that supports our decarbonisation goals and empowers our workforce to contribute meaningfully to this transition.
Incentives and Remuneration
Climate-related metrics and targets are formally incorporated into incentive plans operating across all levels of Fortescue. This includes the Executive and Senior Staff Incentive Plan (ESSIP) and Long-Term Incentive Plan (LTIP) which are the short and long term incentive plans that our CEOs, Executives and other senior leaders participate in, and the Staff Incentive Plan (SIP), which is the short-term incentive plan for all other eligible employees.
Skills, competencies and training
The workforce plan includes skills transition pathways for the most affected roles. We worked with government bodies to develop strategies to strengthen our electrical workforce, as we recognise this is the critical enabler for our workforce towards 2030.
Ensuring we maintain a workforce with the appropriate skills and capabilities to operate as we decarbonise is one of our identified program-level risks. These risk and mitigation strategies are communicated to the Board through the AFRMC as a part of the decarbonisation risk management activities.
