Basic Materials

Fortescue shifts to green energy: CEO Elizabeth Gaines steps down

Fri 10 Dec 21, 3:02pm (AEST)
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Key Points

  • Gaines to become a global green hydrogen brand ambassador for the company
  • FMG is aiming for carbon neutrality by 2030 through absolute emissions reduction
  • FMG is pivoting from iron ore to focus on green energy and resources

After four years in the role, Fortescue (ASX: FMG) CEO Elizabeth Gaines is stepping down. She will become a non-executive director and serve as a global green hydrogen brand ambassador for the company. 

FMG is transitioning from pure play iron ore and metals exploration to become a vertically integrated green energy and resources group. 

Gaines has been a key figure in this change during her nine years at the company - across her roles as non-executive Director, CFO and CEO.

“Elizabeth’s depth of character, leadership, global integrity and respect is appreciated by Fortescue’s executives and fellow directors,” says Chairman Andrew Forrest. 

"With the new CEO our team will continue to empower Fortescue’s leadership of a commercial solution to global warming."

The search for a new CEO

Gaines will help the company find a new CEO who can lead FMG towards achieving carbon neutrality for Scope 1 and 2 emissions by 2030. The company aims to do this through absolute emissions reduction, rather than by using offsets.

“I know the successful candidate will be able to build on our excellent operational performance and lead the diversification of Fortescue from a pure play iron ore producer to a renewable energy and resources company,” Gaines noted.

The future of Fortescue

Previously, Forrest has said that he doesn’t expect FMG to be making green hydrogen at scale until at least 2023.

Until then, FMG’s shares remain largely tied to iron ore prices.

China’s appetite for iron ore jumped in November, with customs data showing a 14.6% increase on the month and 6.9% increase year-on-year. 

Broker consensus rates the company as a Hold.

 

Written By

Jed Herne

Content & Strategy

After graduating with a 99.4 ATAR, Jed won 3 scholarships to Curtin University, where he earned his Bachelor's degree and served as a Student Ambassador. He is primarily interested in long-term passive index funds as a vehicle for financial independence. Outside of covering financial news, Jed is a published author, podcaster, and has an unhealthy obsession with bouldering.

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