The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch on Wednesday.
This follows the release of an announcement this morning from the mining giant.
Why is the Fortescue share price on watch?
The Fortescue share price will be one to watch closely today after the company announced a raft of leadership changes.
According to the release, Fortescue is making these changes as part of its evolution into a global green renewables and resources company.
It expects the changes to help to deliver Fortescue's global green energy business strategy – to lower global emissions, to decarbonise Fortescue, and to create significant additional value for shareholders, through sharing green fuels and technology with the world.
This follows two decades of Fortescue's iron ore, trucks, and trains generating billions of tonnes of carbon emissions and polluting the Earth.
What are the changes?
The biggest change sees Dr Andrew "Twiggy" Forrest AO return to lead Fortescue as its Executive Chairman. He will be focused on overseeing the iron ore business for an interim period to help drive the company's transition when its current CEO, Elizabeth Gaines, concludes her tenure in August.
Another change will see Dr Mark Hutchinson, former President and CEO of General Electric (GE) Europe, join Fortescue Future Industries (FFI) in early July. He will initially take the role of Director of Projects, before assuming the role of CEO of FFI by the end of 2022.
The current FFI CEO, Julie Shuttleworth, will continue in her role during the transition process and will then move to a senior executive leadership role.
Dr Forrest commented: "Bringing in someone with Mark's global leadership experience and proven track record in managing large scale, complex global organisations and projects goes to the heart of our global vision for FFI. We are committed to sharply arresting climate change, creating massive economic growth, increasing jobs, and growing our business profitability for our shareholders."
The Executive Chairman also dismissed concerns that FFI could destroy shareholder wealth and continues to believe it will be a profitable business.
"We will prove that going green has a fabulous and profitable future, providing significant additional value for shareholders by ramping up innovative and game changing green technologies, green operating know-how and sharing that and our future massive green fuel supply to the world," he added.
Dr Forrest concluded with a warning to other mining companies that are ignoring the need to decarbonise.
"We are doing the hard work to genuinely decarbonise Fortescue, avoiding the temptation we see all around us to greenwash. I wish to specifically congratulate Rio Tinto and BHP for their efforts in their own inevitable decarbonisation journey. For those remaining in the private and public mining and energy sector who ignore the world's need to change, you do so at your ignorance and peril."
What else is changing?
Joining Dr Hutchinson at FFI will be the former CEO of AGL Energy Ltd (ASX: AGL), Andrew Vesey. He will be appointed as FFI's Head of Energy Transition Projects.
The release notes that Mr Vessey has spent more than 40 years transforming and repositioning organisations by focusing on advanced technology and execution. His recognitions and awards include Business Leader of the Year' (Climate Alliance); 'CEO of The Year' (S&P Platts Global Energy Awards) – One of Australia's 'Low Carbon Heroes.
Finally, another key appointment sees Christiaan Heyning join as Head of Decarbonisation. Mr Heyning joins FFI from McKinsey where he was a founding partner of the Perth business. He has a 20-year track record of strongly improving business outcomes in mining and industry internationally, with a very strong focus on sustainability.
