CLIMATE REPORT 2020: PATHWAY TO NET ZERO

Baar, Switzerland

4 December 2020

Climate report 2020: pathway to net zero

Glencore today announces its ambition to be a net-zero emissions company by 2050, and sets out how it plans to achieve this through:

-       Our commitment to reducing our total emissions footprint - Scope 1, 2 and 3 - by 40% by 2035 on 2019 levels

-       Our ambition of achieving net zero on our total emissions footprint by 2050, with a supportive policy environment

We will achieve this by:

1. Managing our operational footprint: reducing our Scope 1 and 2 emissions

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

3. Allocating capital to prioritise transition metals: investing in the commodities the world needs

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

5. Supporting uptake and integration of abatement: an essential contributor to achieving low- or net zero carbon objectives

6. Utilising technology to improve resource use efficiency: contributing to the circular economy

7. Transparent approach: reporting on our progress and performance

The world is facing the challenge of meeting the increasing energy needs of a growing population, while radically reducing its carbon footprint.  We believe the commitments and trajectory we outline today show how we are part of the solution. 

Ivan Glasenberg, chief executive officer commented, "A significant portion of Glencore's earnings is derived from the metals and minerals that enable the transition to a low-carbon economy. As the world prioritises renewable technologies, battery storage and electric mobility, our business is well-positioned to meet the growing demand for the commodities that underpin these future focused industries. Our ambition to be a net zero total emissions company by 2050 reflects our commitment to contribute to the global effort to achieve the goals of the Paris Agreement."

Our products enable the transition to a low-carbon economy.  We are one of the largest producers and suppliers of copper, cobalt and nickel - metals that are essential to batteries used for electric vehicles and energy storage, as well as the infrastructure required for the transmission of renewable energy.  The world needs these commodities if it is to achieve the goals of the Paris Agreement and limit the rise of global temperatures.

The world is going to require many times more metal than is currently produced.  Glencore has a large production footprint and pipeline of projects in the commodities needed to build renewable energy grids, electrify transport and meet every day needs.  We also operate a large recycling business, through which we enable the reuse of critical products needed to deliver the transition to a low-carbon economy.

The world today depends on fossil fuels - coal, natural gas and oil - to meet its energy needs. Under all credible scenarios, fossil fuels (oil, gas and coal) will continue to be an important part of the global energy mix for many years to come.  We do not believe that selling our coal mines would help reduce the associated emissions.  Responsible stewardship of our coal assets and responsible reduction of our coal portfolio, while maintaining a focus on our high-quality coal assets in Australia, supports our ambition to reduce our total emissions to achieve net zero by 2050.

A low-carbon future requires low-carbon metals.  As a mining and trading company, we are uniquely positioned to work directly with our customers and relevant industry groups to support and promote the greater use of low-carbon metals, and to form strategic partnerships that enable critical transitions in transportation, infrastructure and energy systems.

In line with the commitments we made in February 2020, we publish today our

Climate Report 2020: Pathway to Net Zero, which sets out our climate ambition and the pathway to achieve it, and assesses our portfolio against principal climate scenarios in the mid- and long-term. 

The report aligns with the recommendations of the Taskforce for Carbon-related Financial Disclosures, and focuses on strategy, governance, risk management and metrics.  Updates on performance will be included in our 2020 Annual Report and Sustainability Report.

We have also published our review of the positions on climate change taken by the industry associations in which we participate. This review is available here.

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 commodities. The Group's operations comprise around 150 mining and metallurgical sites 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 its global marketing network.

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 160,000 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.

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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.