This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Aug. 29, 2023--Fortescue Metals Group Ltd.'s change in its capital allocation framework could increase its capital expenditure on its green business. The Australia-based iron ore miner announced as part of its fiscal 2023 results that it will no longer allocate 10% of its net profit after tax to its energy division, Fortescue Energy. Rather, all projects will now have to compete for capital on their respective risk-adjusted merits. This may mean that if Fortescue Energy develops multiple concurrent projects, more capital would be required than the former policy could have accommodated. This change comes as Fortescue Metals continues to target a final investment decision (FID) on five renewable
