Fortescue operates under a Code of Conduct and Integrity Policy which reflects the values that underpin the behaviour of the entire Fortescue family and our relationship with stakeholders.
The Code defines our commitment to achieving and maintaining our reputation as an employer of choice, an ethical business partner and a good corporate citizen. It is the responsibility of all employees and contractors to ensure they are familiar with the Code, which is easily accessible both in printed and electronic formats.
Speak Up is a confidential channel for employees to report improper conduct that may include incidents of:
Bribery and corruption undermines legitimate business activities, distorts competition and exposes Fortescue and our people to significant risks.
Our Anti-Bribery and Corruption Policy outlines our zero-tolerance approach to bribery and corruption, encompassing compliance with the laws of every country in which we operate.
As part of Fortescue’s ongoing commitment, our compliance program includes:
The Whistleblower Hotline is a secure, confidential and independent channel for employees, and others, to disclose conduct relating to Fortescue that involves suspected:
Payment of taxes is an important element of our commitment to ensure communities benefit from our operations. The taxes we pay contribute to the economic development of the countries in which we operate.
We strive for full and timely compliance with the letter and intent of the prevailing tax laws of all jurisdictions in which we operate and seek strong, collaborative working relationships with all relevant revenue authorities.
In line with our Board-approved Global Taxation Policy, we work to achieve this by:
Our Board is ultimately responsible for ensuring a robust system of internal controls is in place for tax governance purposes. Our Global Taxation Policy and comprehensive Global Tax Corporate Governance Framework are key to governing the management of tax-related risks in Australia and in all relevant overseas jurisdictions. The Board, through the ARMSC, receives regular updates from senior management on the operation and effectiveness of our Global Tax Corporate Governance Framework.
Fortescue accepts a low level of risk in relation to major transactions and tax compliance activities, undertaking to file only verified tax positions. Major transactions are determined based on the value of the transaction and associated tax risk, technical complexity of the transaction and interpretation of the prevailing tax legislation. Where the application of the tax legislation is unclear, we seek external tax advice and consult with the relevant taxation authorities to achieve an appropriate level of certainty. There are also a number of controls, systems and procedures in place to manage our exposure to tax risk.
We are committed to transparency across all aspects of our business, including in relation to our tax obligations. By providing our investors and other external stakeholders with relevant tax information, we offer a deeper understanding of our tax profile to the wider community. Our continuous review of internal tax policies, industry best practice, feedback from key stakeholders and legislative developments further underpins our commitment to tax transparency.
Fortescue has been a signatory to the Australian Board of Taxation (BoT) voluntary Tax Transparency Code (TTC) since 2017. The TTC sets out several principles and minimum standards to guide additional disclosures of tax information by multinational businesses. The TTC is divided into two parts, with the BoT recommending that Part A and Part B be adopted by large businesses such as Fortescue.
To comply with Part A of the TTC, we have extended the scope of our income tax disclosures contained within our annual financial reports since FY17. Part B disclosures are included in our sustainability reporting. This details our approach to tax strategy and governance, as well as providing additional information on overseas operations and international related party transactions.
Fortescue maintains memberships with a broad range of industry groups and associations, which allows us to contribute in a coordinated way to the development of effective policy frameworks, share best practice and access information and insights on material topics. Participation also provides an opportunity for us to positively influence the association and individual members.
Many industry associations engage in advocacy and lobbying on behalf of members, and we acknowledge the influence these activities can have on policy frameworks. We work to ensure that these actions reflect our own Values and commitments.
Given the nature of membership-based associations and the differing views of members, the policies and commitments of associations may not fully align with our own. Policy alignment is, however, important on critical issues such as climate change, biodiversity and human rights.
An overview of our approach to industry associations including policy alignment updates and details of our memberships held during FY23 is available in our Industry Association Report.