(Bloomberg) -- More than a quarter of female workers at Rio Tinto Group have experienced sexual harassment and almost half of all staff have been victims of bullying, according to a new report that's set to raise fresh questions about workplace culture in the mining industry.
Rio commissioned the external review and took the rare step of publishing the detailed findings as the world's second-biggest miner seeks to restore its reputation after destroying ancient Aboriginal Australian heritage sites that sparked a public backlash. The report also comes at a time when the mining industry faces sustained pressure from investors, governments and civil society to address its impacts on local communities and the wider environment.
A total of 21 women reported actual or attempted rape or sexual assault at company sites over the past five years, and racism was found to be widespread across operations in Australia and South Africa, according to the report, for which more than 10,000 employees were surveyed on workplace culture. It was initiated last year after a spate of reports over misconduct at remote mine sites in Western Australia.
The industry's remote mines can be especially risky for women. They remain largely male-dominated, with workers living in camp-style accommodation that blurs the line between work and social life. However the study also heard complaints from staff in Singapore, a predominantly office-based location.
“The findings of this report are deeply disturbing to me and should be to everyone who reads them,” Jakob Stausholm, London-based Rio Tinto's chief executive officer, said in a statement. “I feel shame and enormous regret to have learned the extent to which bullying, sexual harassment and racism are happening at Rio Tinto.”
In initial public reactions to the report, investors and advocacy groups said the findings were disturbing but welcomed Rio Tinto's transparency in publishing the details.
“Leadership and accountability at all levels is required to eliminate unacceptable cultures of racism, sexism and bullying from our workplaces,” said Brynn O'Brien, the executive director of the Australasian Centre for Corporate Responsibility. “Rio has taken the first step and is leading the mining industry with this report.”
Still, coming less than two years after the company apologized for the destruction of ancient sites in Australia, the latest revelations over the extent of Rio Tinto's toxic work culture could refocus investor attention on governance and social responsibility in the industry at a time when global public scrutiny on the issues has increased more broadly.
Last year, larger rival BHP Group said it had fired 48 workers at its sites in Western Australia since 2019 after verifying allegations of harassment. The cases emerged after Western Australia's parliament in July announced an inquiry into sexual harassment mining industry following a spate of allegations. The five-member panel is due to publish its findings in April.
Rio, which promoted Stausholm to help mend its reputation, said it would implement all 26 recommendations contained in the findings of a team led by former Australian Sex Discrimination Commissioner Elizabeth Broderick. Measures include making worker camps safer and creating an environment where people feel secure to report unacceptable behavior.
Read more: Mining Giants Face a Sexual Harassment Reckoning as BHP Fires 48
Norges Bank Investment Management, a Rio shareholder, said it doesn't comment on individual investments but “noted the findings of this external review and that the company has said it would implement all 26 recommendations contained in the findings.”
While the study covered Rio workplaces in locations including Canada, the U.S., Mongolia and Singapore, most attention will be focused on Australia, which is home to iron ore mines that generate the bulk of profits and where almost half of the firm's 45,000 staff and contractors are based. About 20% of Rio's workforce is female, according to the firm's most recent annual report.
Read more: Investor Revolt Over Harassment Is a Turning Point for Australia
“It is clear there are significant challenges that need to be addressed both at the company level and across the sector as a whole,” said Louise Davidson, Chief Executive Officer of the Australian Council of Superannuation Investors. “Investors will continue to monitor Rio Tinto's progress in addressing the recommendations of the report.”
Respondents to Broderick's eight-month-long review, which included an online survey, one-to-one meetings and small discussion groups, described an atmosphere where derogatory comments and physical intimidation were commonplace.
“One man said to me: ‘It's a biological fact that women are not as good at maths as men. That's why there aren't as many women engineers,'” said one survey respondent. An operations manager said she had been referred to by colleagues as a “token woman” despite being highly qualified for the role.
The study also found that people working in a country different to their birth experienced high rates of racism, while nearly 40% of men and over 30% of women identifying themselves as Aboriginal or Torres Strait Islander in Australia had been subject to racism. The report also said bullying behavior had become “normalized” in many workplace settings.
While Rio was making progress in tackling theses issues “the challenge now is to ensure that this cultural shift is replicated at all levels of the organization,” the report said.
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