Corporate Social

Responsibility Report

2017

Together we are Fortescue

ABN 57 002 594 872

2 FORTESCUE METALS GROUP LIMITED I OVERVIEW

The year at a glance

TOTAL RECORDABLE INJURY FREQUENCY RATE FOR FY17

ABORIGINAL WORKFORCE

2.9

FY16 - 4.3

15.8%

FY16 - 14%

CONTRACTS AWARDED TO ABORIGINAL COMPANIES AND JVs

FIRST ALL-FEMALE CLASS OF

A$1.95BILLION

FY16 - A$1.8 BILLION

FORTESCUE VTEC

GRADUATES

FEMALE BOARD MEMBER

GREENHOUSE GAS EMISSIONS

REPRESENTATION

INTENSITY REDUCED BY

55.6%

AT 30 JUNE 2017

8%

FROM FY15

EMPLOYEES RETURNED FROM

TOTAL PROCUREMENT SPEND

PARENTAL LEAVE

IN AUSTRALIA

96%

PREVIOUS 12 MONTHS: 85%

98.5%

FY16 - 98.49%

In this Report

Overview 3

Operating and Financial Review 15

Fortescue's approach 19

Engaging with stakeholders 27

Setting high standards 33

Creating positive social change 57

Safeguarding the environment 81

Corporate Directory 99

FORTESCUE METALS GROUP LIMITED I 2017 CORPORATE SOCIAL RESPONSIBILITY REPORT 1

About this Report

Together we are Fortescue

Integrity is a fundamental Fortescue value and the Company works hard to maintain open and transparent relationships with its stakeholders. This report addresses the key material issues and opportunities relating to Fortescue during the financial year 1 July 2016

to 30 June 2017 (FY17).

Fortescue Metals Group Ltd (Fortescue) is a signatory to the United Nations Global Compact (UNGC) and this report represents the Company's ongoing commitment to reporting progress towards the principles of the UNGC. The content is also informed by the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines which are also referenced in the

ASX Corporate Governance Council, Corporate Governance Principles and Recommendations, 3rd Edition. This report has been prepared in accordance with the GRI Standards: Core option. A copy of the GRI Content Index with links to relevant sections of the document

is provided in the Navigation Index on pages 101 to 105.

The report also takes into account:

  • Issues identified through Fortescue's Risk Management Framework

  • Fortescue's commitments and policies which guide its Corporate Social Responsibility (CSR) approach

  • Guidance provided by key bodies including International Council on Mining and Metals (ICMM)

  • Community interests based on existing stakeholder engagement programs

  • Key matters within the industry.

All references to Fortescue, the Group, the Company, refer to Fortescue Metals Group Limited (ABN 57002594 872) and its subsidiaries. All references to a year, are the financial year ended 30 June 2017 unless otherwise stated.

Assurance

Fortescue supports the intent of the ASX Corporate Governance Council Principles and Recommendations 3rd Edition (Principles and Recommendations) and meets

specific requirements unless disclosed otherwise. The overall approach to audit and assurance is outlined in the 2017 Fortescue Corporate Governance Statement, which is available at www.fmgl.com.au

All data on Greenhouse Gas emissions, total energy consumption and

total energy production contained in this report was subject to independent assurance by auditors,

PricewaterhouseCoopers, in accordance with the National Greenhouse and Energy Reporting (Audit) Determination 2009 and ASAE 3410: Assurance Engagement on Greenhouse Gas Statement, and the Australian Standard on Assurance Engagement.

Other than that stated, no additional external assurance has been sought regarding the content of this report.

Feedback

Fortescue appreciates any feedback which will help the Company improve future reporting and communication with stakeholders.

Please forward any feedback or requests for additional information to CSR@fmgl.com.au

A survey requesting specific feedback on this report is also available

at www.fmgl.com.au

Fortescue's Board of Directors approved this report for publication on 21 August 2017.

A summary of Fortescue's operations and financial statements for 1 July 2016 to 30 June 2017 are reported separately in the 2017 Annual Report available at www.fmgl.com.au

Front and back cover design: 'Desert, Waves and Beyond' by Jilalga Murray

Jilalga was commissioned by Fortescue to create a piece of art that captured its unique story. The bold elements encapsulate and celebrate the steadfast history of the Company. Throughout the image a story is told about strong business relationships, great friendships, and camaraderie within the Company.

The artwork is contemporary, bright and stylised and shows Fortescue as a new, successful force in the industry. Visually it portrays a belief that together with heart, spirit and a deep respect for the Traditional Owners and their country on which Fortescue operates, everyone benefits. Together they make the future brighter for all.

2 FORTESCUE METALS GROUP LIMITED I OVERVIEW

Fortescue Metals Group Ltd. published this content on 21 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 August 2017 23:02:02 UTC.

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