Praveen Menon and Byron Kaye by Ernest Scheyder

(Reuters) – Investors are calling for an overhaul of the whole industry after Rio Tinto, Anglo-Australian mining company (NYSE:), admitted to sexual assault, racism, and bullying in an internal report.

Rio released Tuesday’s 85-page report, which pointed out a culture in which harmful behavior is often accepted and bullying rampant. This spotlighted the wider industry that has been long accused of tolerating unacceptable behaviour.

Camille Simeon is investment director at abrdn and a top-30 shareholder in Rio’s London-listed securities according to Refinitiv.

Simeon stated that they were committed to holding the investees accountable …( and that other boards would be motivated by the results of the report. He also said that abrdn would continue to follow-up with Rio regarding the report.

Two top-20 investors also told Reuters that they planned to talk to the company regarding the report. However, they declined to comment on the matter before the meeting.

The Pension Fund Health Employees Superannuation Trust Australia said that it had also written to the mining companies asking how they were addressing potential similar issues.

The miners who struggle to attract women workers despite a labor shortage have attempted for years to alter a “boys-club” culture. BHP Group, a top global miner (NYSE:), has an ambitious and aspirational goal of attaining gender equality globally by 2025.

Rio Tinto was praised by investors and other industry professionals for publishing these damning results from an outside review, but others in the sector and beyond needed to do the same.

Rio Tinto should not be responsible for this problem. This is an issue in the industry. This is a problem for society. They can’t solve the problem by themselves, and the problem continues elsewhere,” Greg Busson of the Mining and Energy Union, Western Australia’s state secretary.

Rio Tinto began the review last March, just after Jakob Stausholm became CEO. This was in response to backlash following the company’s devastation of the Juukan Gorge rock shelters 46,000 years old that are used as shelters for expanding an iron ore mine.

A Rio spokesperson stated that 142 people were subject to sanctions and 38 were fired.

Market Forces an activist investor group said Juukan Grange highlighted Rio Tinto’s culture of arrogance, as well as other deeply rooted issues. This report had brought them to the surface.

Will Van De Pol from Market Forces, an asset management campaigner said that the findings in this report show the need to increase investor scrutiny over Rio Tinto’s governance practices and Rio Tinto itself.

Rio Tinto needs cultural improvements. This is another opportunity to bring about further changes. We would love to see that happen throughout Rio Tinto.

TOXIC CULTURE

The Tuesday report was completed by an outside company and took almost a year to compile. It also included feedback from more than a quarter Rio’s 45,000 employees.

According to one female worker, he asked her to do oral sex on his male coworker. The supervisor reported the request. He said that he believed the man was making a joke and Rio would ensure Rio wasn’t “alone with him.”

One worker claimed that the pejorative calling out of people of colour was routine and is accepted as part of normal workplace conversation.

A female worker said that she wouldn’t recommend Rio as a workplace to friends. This is a shocking statement from a company which has stated publicly over the years its desire to increase gender diversity. Rio has 19% female employees.

Katie Mehnert from Ally Energy said, “Other businesses need to take it as a signal that human factor can’t be overlooked.” Ally Energy is a network group connecting workers with companies within the renewable energy industry.

“You could have the most valuable assets on Earth, but if you’re trash culture, no one will want to work for your company.”

Rio CEO Stausholm, the person who ordered this report, promised to advocate for change.

Stausholm stated to Reuters, “As CEO I own the culture.” “Now that I have a clear understanding of what it is, I am bound to rectify it.”

Advocate groups for women in mining, and other extractive industries welcomed the report with cautious approval. This acknowledges the many years-old whisperings of those in the mining sector.

“We hope the Rio Tinto example will promote dialogue and inspire other mining companies to follow it,” Barbara Dischinger from International Women in Mining (London), director. This non-profit supports equality in the mining sector.

BHP stated that it is committed to creating an inclusive, diverse and respectful workplace. Elizabeth Gaines, CEO of Fortescue Metals Group OTC: stated that the miner has a zero tolerance policy regarding harassment and bullying. All complaints are taken seriously.

Many miners work in extreme environments for many weeks, often living in close quarters in cramped camps.

In 2018, Reuters reported that miners gathered at an industry convention and stripped down to sing karaoke under their clothes.

People of colour and women of color perceive mining as hostile. Enrolment in engineering courses for mining has plummeted across Australia, Canada, USA, and Canada.

Rio employees reported extreme stress and anxiety in trying to keep away from sexual harassers. This was affecting their productivity and concentration.

Louise Davidson is the CEO of the Australian Council of Superannuation Investors. This group represents 37 institutional and asset investors that collectively hold on average 10% of each ASX200 company.