Glencore plc

Baar, Switzerland

2 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:

·      15% by 2026 on 2019 levels; and

·      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 support the CCT.

For further information please contact:

www.glencore.com 

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 production 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.

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Disclaimer

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.