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GLENCORE PLC - GLN: Glencore Publishes 2021 Climate Report.

Release Date: 02/12/2021 15:30
Code(s): GLN     PDF:  
Wrap Text
GLN: Glencore Publishes 2021 Climate Report.

(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN

Baar, Switzerland / Sydney, Australia

02 December 2021

                        Glencore publishes 2021 Climate Report

Today, Glencore published its 2021 Climate Report on our website. This year’s report provides an update on
our progress against our emission reduction targets and incorporates our annual review of our industry
organisations’ positions on climate change.

Our purpose is to responsibly source the commodities that advance everyday life. Our unique business
model enables us to produce, recycle and market the materials needed to decarbonise energy, while
simultaneously reducing our own emissions. Our portfolio’s diversity underpins our strategic ambition to
play a leading role in enabling the decarbonisation of global energy demand through supplying metals
such as copper, cobalt, zinc and nickel that are essential to the transition to a low-carbon economy.

We recognise our stakeholders’ interest in climate change and their expectation for Glencore to align its
business strategy with the goals of the Paris Agreement. In December 2020, we published our first three-
yearly climate action transition plan, Climate Report 2020: Pathway to Net Zero. This report received over
94% of shareholder approval at our 2021 AGM. At each AGM, our shareholders will have an advisory vote on
this plan and its intervening progress reports, of which this report is the first one.

During 2021, we strengthened our commitment to reducing our total emissions footprint – Scope 1, 2 and 3
which underpins our ambition to be a net-zero emissions company by 2050. Our revised targets are:
       a. 15% by 2026 on 2019 levels; and
       b. 50% by 2035 on 2019 levels

Gary Nagle, chief executive officer, commented,
   “Our targets and ambition reflect our commitment to align our business strategy with the goals
    of the Paris Agreement and our ongoing engagement with our key stakeholders including the
    Climate Action 100+ group of investors.

    “We were the first company in our sector to put our climate strategy to a shareholder vote and
     were encouraged by the very strong support (94.4%) we received at this year’s AGM. We have
     been working to embed our strategy across all parts of our business, and I am confident we are
     on track to meet our Scope 1, 2 and 3 targets. ”

As set out in our Climate Report 2020, we identified seven pathways to delivering our targets and
ambition. Our Climate Report 2021 reports on the progress made against these pathways:
1.  Managing our operational footprint: reducing our Scope 1 and 2 emissions. We are utilising our
    Marginal Abatement Cost Curve (MACC) to assess viable and economic abatement opportunities. The
    volume of value-accretive Scope 1 and 2 MACC opportunities doubled in 2021.
2. Reducing Scope 3 emissions: our diverse portfolio uniquely allows us to address this portion of our
    footprint through investing in our metals portfolio, reducing our coal production and supporting
    deployment of low emission technologies. During the year, we committed to more aggressive total
    emission reductions with a new short-term 2026 target and a 10% increase in our 2035 target to 50%
    emissions reduction.
3. Allocating capital to prioritise transition metals: investing in the commodities the world needs. We
    allocate around 75% of our capital expenditures to transition metals.

4.   Collaborating with our value chains: working in partnership with our customers and supply chain to
     enable greater use of low-carbon metals and support progress towards technological solutions. In

     2021, Glencore signed long-term supply agreements signed for green aluminium and cobalt, including
     Natur-Al aluminium to Hammerer, partially recycled cobalt to FREYR and the long-term supply of
     cobalt to Britishvolt.

5.   Supporting uptake and integration of abatement : an essential contributor to achieving low- or net
     zero carbon objectives. We signed a memorandum of understanding with China Huaneng for
     cooperation on CCUS technology, commencing with our CTSCo project in the Millmerran power
     station in Australia.

6.   Utilising technology to improve resource use efficiency: contributing to the circular economy. We
     are one of the world’s largest recyclers of end-of-life electronics, batteries and battery metals. We
     plan to grow our global footprint in current and new markets .

7.   Transparent approach: reporting on our progress and performance. We report annually on our
     performance in delivering our Climate Action Transition Plan and provide our shareholders with an
     advisory vote on its progress.

During the year, we also revised our internal climate change governance framework to drive
implementation of the climate strategy and the supporting work programmes. Our new Climate
Change Taskforce (CCT) is responsible for overseeing our climate strategy and progress against our
climate commitments.

It is accountable to our Board of Directors, to whom it provides regular progress and status updates.
Its members include our Chief Executive, Chief Financial Officer, Head of Industrial Assets and
General Counsel, as well representatives from key corporate functions including investor relations,
finance and sustainable development. Commodity departments, including heads of the departments
and nominated representatives, participate in the working groups that s upport the CCT.

For further information please contact:
Martin Fewings             t: +41 41 709 2880     m: +41 79 737 5642

Charles Watenphul           t: +41 41 709 24 62   m: +41 79 904 33 20

Glencore LEI: 2138002658CPO9NBH955

Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major
producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life.
The Group's operations comprise around 150 mining, metallurgical and oil product ion assets.

With a strong footprint in over 35 countries in both established and emerging regions for natural
resources, Glencore's industrial activities are supported by a global network of more than 30
marketing offices. Glencore's customers are industrial consumers, such as those in the automotive,
steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics
and other services to producers and consumers of commodities. Glencore's companies employ
around 135,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative. Our ambition is to be a net zero total emissions company by 2050.

The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities.
In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are
made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only
and do not imply any other relationship between the companies. Likewise, the words “ we”, “us” and “our” are also
used to refer collectively to members of the Group or to those who work for them. These expressions are also used
where no useful purpose is served by identifying the particular company or companies.

Absa Corporate and Investment Bank, a division of Absa Bank Limited

Date: 02-12-2021 03:30:00
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