Peter Cunningham: I mean, I think the policy has been well set. I mean I think last year, when you look at it, it was still a very strong year for us financially. So when you look at the EBITDA and what we produce and $9 billion free cash flow, we’re actually paying out 8 of that in the dividend. So I think that’s reflective of the overall approach we’re really adopting here is by looking in and around at all the metrics, looking at the market and taking that sort of broad view. So we’re very, very comfortable that 60% was the right payout on this year’s results. I think when it comes to net debt, I mean, again, having a strong balance sheet gives you so much flexibility. When you think of the cyclicality of this industry, it allows you just to keep investing through it and to keep giving returns to shareholders and to take opportunistically — take opportunities when they come up.
So that’s what we want to do. And that’s why having that strong balance sheet really makes, I think, such good sense to us. So we’re very comfortable. We’re very comfortable having a bit of cash on the balance sheet when markets were so, so strong, very comfortable at the 4.2%. We’ve got lots of flexibility and headroom to the extent we want to use that within our sort of principles-based approach to the balance sheet.
Myles Allsop: Could you ever imagine paying up 40%?
Peter Cunningham: I think at the moment, I think we’re very comfortable what the track record we’ve got, but you don’t know what the future looks like.
Menno Sanderse: Ever is a long time. So last question here in the room.
Jakob Stausholm: It’s a very difficult question. I just wanted to make the point of you’ve seen Rio Tinto that hasn’t grown a lot for a long time. That actually, take the guidance of this year, is indicating that it will be growing. And the real trick for us is how do we stick with a 60% payout ratio and start getting the company to grow? And so far, it looks very encouraging. And we don’t want to — we don’t want to go into wild growth. This company has tried this kind of swing too much. We don’t want to be there. We want to be disciplined. And one of the ways to keep it disciplined is having the dividend. But on the other hand, just paying extra dividend cannot be an end in itself. It’s an amazing company, and we have opportunities to get it to grow in the right order, and we should do so because that is actually in the interest of the shareholders.
Menno Sanderse: The last one.
Unidentified Analyst: Sorry, boring question on CO2 emissions, Scope 1, 2 has reduced. Good job. Scope 3 has increased, I think, as from 553 million to 583 million tonnes. Not growing volumes or not increasing Scope 3 is a stupid idea. But does it — or how much does Scope 3 increases play into your investment decisions these days?
Jakob Stausholm: Look, Scope 3 is only going to be more and more important, and I would say we can still do much, much more. The way I tend to look at Scope 3 is try to break it down into things. There is one element is the upstream Scope 3. It’s not that enormous for us, but we need to manage our suppliers very well. Another area that’s quite significant, 8 million tonnes of CO2, is our logistics. And even though Scope 3, I feel that we can influence that and we must do more and do a better job on that front. And then the real big thing, of course, is the downstream, and that’s kind of an influencing role. But frankly, the steel industry is just asking to join up with us and trying together to find solutions. And there is a lot happening at this point in time.
So I would not be surprised if you see — the only point is, of course, many of these things will have an impact 5 or 10 years from now. But it’s actually happening now with the technology development, et cetera. So it is a vital part. I think the key thing though is it’s very difficult to use annual numbers because you need to think about projections 5 and 10 years down the road. But I do think that when we stand here next year, we need to be much more tangible on Scope 3. There is more work to be done.
Menno Sanderse: Okay. We are literally 1 minute to 10. So I’d like to close it up here. Thank you, everybody, so much for joining here. Thank you, everybody in Australia for staying up somewhat later in the office. And thank you Bold for coming in from Mongolia. Clearly, Bold is looking forward to welcoming some of you on-site during this year. If you don’t join us there, then we’ll see you at the half year. Thank you very much.
