Glencore plc
20 March 2024
Baar, Switzerland
Publication of second Climate Action Transition
Plan
Today, we release our second Climate Action
Transition Plan (the 2024-2026 CATP). We continue to evolve our
approach first published in 2020, introduce a new interim
industrial emissions reduction target and lay out our plans for the
next three years considering the risks and opportunities of our
current combined energy and metals businesses.
Gary Nagle,
Chief Executive Officer, said:
"Our 2024-2026 CATP reflects a wide range of
inputs, including analysis of the evolving market landscape, new
regulatory requirements, mining and energy peer approaches, the
IEA's latest modelling, stakeholder inputs, and emerging insights
from the most recent UNFCCC dialogue. We have also undertaken
extensive engagement with our shareholders and appreciate their
time and support as we have developed this CATP.
"Reflecting on these various inputs, this CATP
retains our existing emissions reduction targets, of 15% and 50% by
the end of 2026 and 2035 respectively and our 2050 ambition of
achieving net zero industrial CO2e emissions, subject to a
supportive policy environment. It also introduces a new interim
target of a 25% reduction in CO2e emissions for our industrial
assets by the end of 2030. We are on track to meet our 2026, 2030
and 2035 emissions reduction targets, all of which are measured
against a restated 2019 baseline.
"Looking ahead, our plan focuses on the delivery
of our commitments, including implementing our MACC initiatives
(where practicable and economically viable) and responsibly phasing
down our thermal coal operations, while also allocating capital to
grow our transition-enabling commodities business, and evolving our
understanding and assessment of the climate-related risks and
opportunities that our business faces."
Our progress
We have maintained our previous industrial
emissions reduction targets and ambition. Our transition plan
reaffirms our existing targets against a restated 2019 baseline and
adds a new interim target, leading towards a 2050 net zero
emissions ambition, subject to a supportive policy
environment:
- 2026: 15% reduction in our
Scope 1, 2 and 3 industrial CO2e emissions against a
restated 2019 baseline by the end of 2026
- 2030: 25% reduction in our
Scope 1, 2 and 3 industrial CO2e emissions against a
restated 2019 baseline by the end of 2030
- 2035: 50% reduction in our
Scope 1, 2 and 3 industrial CO2e emissions against a
restated 2019 baseline by the end of 2035
Glencore's role in the climate transition
Glencore plays an important role in supporting
the global transition to a low carbon economy. Across our business,
we produce, distribute and recycle commodities that are key
components of current transition technologies while supporting the
energy needs of today.
The pace and pathway of decarbonisation are
heavily influenced by many factors, from geopolitics to
technological innovation. Our 2024-2026 CATP must therefore be
resilient and flexible to cope with external economic and political
factors, whilst sustaining our own climate targets and ambition.
These external factors also highlight the need for global
coordination and progressive and well-designed policies that are
consistent with a just and orderly transition.
That is why continuous dialogue and engagement
with stakeholders is an important part of how we develop our plans.
The 2024-2026 CATP reflects a wide range of inputs, from
stakeholder engagement to the IEA's latest modelling to analysing
peer approaches.
Our strategic pillars
The 2024-2026 CATP is comprised of four
strategic pillars:
1. Managing our operational footprint: We
continue to identify and deliver cost-effective emissions reduction
opportunities for our Scope 1 and 2 emissions. Whilst our Scope 1
and 2 industrial emissions reflect a small proportion of our
overall emissions footprint, these factors are within our control
and we are developing solutions to address them, such as
electrification and alternative fuel, as well as strengthening our
own monitoring capabilities.
2. Responsibly reducing our Scope 3 industrial
emissions: We remain committed to the responsible phase-down
of our coal portfolio. We recognise the different roles of thermal
coal and steelmaking coal - and the different transition pathways
for both.
We reaffirm our approach to responsibly reduce
our production of thermal coal in an orderly and just way. As part
of this, we are not progressing any greenfield thermal coal
investments. We expect a continued phase down of our thermal coal
plants, reflecting our emissions reduction targets and in line with
our Just Transition Principles. We will strive to mitigate impacts
and accelerate the social benefit potential of any operational
decisions on our local communities.
3. Advancing tomorrow through our
transition-enabling commodities portfolio: The
expected growth in clean energy and low-carbon technologies is
leading to an increased need for 'transition' commodities and we
are investing to meet an expected significant increase in demand
for these.
4. Driving new business models: We are
positioning our business for the future through the pursuit of new
business models that support the transition, such as recycling and
carbon solutions.
Elk Valley Resources
We have agreed with Teck Resources Ltd to
acquire a 77% interest in its steelmaking coal business, Elk Valley
Resources (EVR), which remains subject to mandatory regulatory
approvals and is expected to close by no later than Q3 2024.
Steelmaking coal is an important
transition-enabling commodity as it is an essential input into much
of the world's steelmaking in its current form. Steel is necessary
for constructing transportation and infrastructure such as
ocean-going vessels, rail, bridges and buildings, as well as energy
transition infrastructure including wind turbines.
As there was no certainty that any transaction
would be agreed when we commenced work on this strategy, and
because we do not yet have access to the necessary information
relating to EVR, we have developed this strategy considering the
risks and opportunities of our current portfolio of our integrated
energy and metals business.
Our commitment to future reporting
We intend to submit our 2024-2026 CATP for an
advisory vote at our 2024 AGM. We will continue to review our CATP
every three years, or if there are material changes to our
business, and seek advisory votes when our climate plans are
renewed.
For further
information please contact:
Investors
|
Martin Fewings
|
t: +41 41 709 28 80
|
m: +41 79 737 56 42
|
martin.fewings@glencore.com
|
Media
|
Charles Watenphul
|
t: +41 41 709 24 62
|
m: +41 79 904 33 20
|
charles.watenphul@glencore.com
|
www.glencore.com
Glencore LEI:
2138002658CPO9NBH955
Note on 'our emissions' and other
terminology
References to 'Glencore's
emissions', 'our emissions' or 'industrial emissions' mean CO2e
emissions from our industrial assets (including Scope 1, 2 and 3)
which is defined by reference to our organisational boundary of
operational control, as set out in the About our emissions
calculations and reporting section in our latest Annual Report and
our latest Basis of Reporting. Where 'industrial' is used before
'emissions', this is for additional clarity, and the underlying
meaning is the same irrespective of whether this is
included.
Throughout our 2024-2026 Climate
Action Transition Plan (CATP), where we refer to our aim and/or
efforts to achieve 'net zero emissions' we are referring to a net
zero ambition in relation to our industrial emissions.
Reference is made to the Group
Reporting Glossary available at glencore.com/publications for the
2023 reporting suite with respect to the terms used the 2024-2026
CATP.
Notes for Editors
Glencore is Glencore is one of the
world's largest global diversified natural resource companies and a
major producer and marketer of more than 60 commodities that
advance everyday life. Through a network of assets, customers and
suppliers that spans the globe, we produce, process, recycle,
source, market and distribute the commodities that support
decarbonisation while meeting the energy needs of today.
With over 150,000 employees and contractors and a
strong footprint in over 35 countries in both established and
emerging regions for natural resources, our marketing and
industrial activities are supported by a global network of more
than 50 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 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.
We will support the global effort to achieve the goals
of the Paris Agreement through our efforts to decarbonise our own
operational footprint. We believe that we should take a holistic
approach and have considered our commitment through the lens of our
global industrial emissions. Against a restated 2019 baseline, we
are targeting to reduce our Scope 1, 2 and 3 industrial emissions
by 15% by the end of 2026, 25% by the end of 2030, 50% by the end
of 2035 and we have an ambition to achieve net zero industrial
emissions by the end of 2050, subject to a supportive policy
environment. For more information see our 2024-2026 Climate Action
Transition Plan and the About our emissions calculation and
reporting section in our 2023 Annual Report, available on our
website at glencore.com/publications.
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Important
Information
This document does not constitute or form part
of any offer or invitation to sell or issue, or any solicitation of
any offer to purchase or subscribe for any securities.
Cautionary
statement regarding forward-looking information
Certain descriptions in this document are
oriented towards future events and therefore contains statements
that are, or may be deemed to be, "forward-looking statements"
which are prospective in nature. Such statements may include,
without limitation, statements in respect of trends in commodity
prices and currency exchange rates; demand for commodities;
reserves and resources and production forecasts; expectations,
plans, strategies and objectives of management; expectations
regarding financial performance, results of operations and cash
flows, climate scenarios; sustainability performance (including,
without limitation, environmental, social and governance) related
goals, ambitions, targets, intentions, visions, milestones and
aspirations; approval of certain projects and consummation of
certain transactions (including, without limitation, acquisitions
and disposals, in particular the proposed acquisition of a majority
stake of EVR from Teck Resources Limited and potential subsequent
demerger of the combined coal and carbon steel materials business);
closures or divestments of certain assets, operations or facilities
(including, without limitation, associated costs); capital costs
and scheduling; operating costs and supply of materials and skilled
employees; financings; anticipated productive lives of projects,
mines and facilities; provisions and contingent liabilities; and
tax, legal and regulatory developments.
These forward-looking statements may be
identified by the use of forward-looking terminology, or the
negative thereof including, without limitation, "outlook",
"guidance", "trend", "plans", "expects", "continues", "assumes",
"is subject to", "budget", "scheduled", "estimates", "aims",
"forecasts", "risks", "intends", "positioned", "predicts",
"projects", "anticipates", "believes", or variations of such words
or comparable terminology and phrases or statements that certain
actions, events or results "may", "could", "should", "shall",
"would", "might" or "will" be taken, occur or be achieved. The
information in this document provides an insight into how we
currently intend to direct the management of our businesses and
assets and to deploy our capital to help us implement our strategy.
The matters disclosed in this document are a 'point in time'
disclosure only. Forward-looking statements are not based on
historical facts, but rather on current predictions, expectations,
beliefs, opinions, plans, objectives, goals, intentions and
projections about future events, results of operations, prospects,
financial conditions and discussions of strategy, and reflect
judgments, assumptions, estimates and other information available
as at the date of this document or the date of the corresponding
planning or scenario analysis process.
By their nature, forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements to
differ materially from any future event, results, performance,
achievements or other outcomes expressed or implied by such
forward-looking statements. Important factors that could impact
these uncertainties include (without limitation) those disclosed in
the risk management section of our latest Annual Report and
Half-Year Report (which can each be found on our website). These
risks and uncertainties may materially affect the timing and
feasibility of particular developments. Other factors which impact
risks and uncertainties include, without limitation: the ability to
produce and transport products profitably; demand for our products
and commodity prices; development, efficacy and adoption of new or
competing technologies; changing or divergent preferences of our
stakeholders; changes to the assumptions regarding the recoverable
value of our tangible and intangible assets; changes in
environmental scenarios and related regulations, including, without
limitation, transition risks and the evolution and development of
the global transition to a low carbon economy; recovery rates and
other operational capabilities; timing, quantum and nature of
certain acquisitions and divestments; health, safety, environmental
or social performance incidents; labour shortages or workforce
disruptions; natural catastrophes or adverse geological conditions,
including, without limitation, the physical risks associated with
climate change; effects of global pandemics and outbreaks of
infectious disease; the outcome of litigation or enforcement or
regulatory proceedings; the effect of foreign currency exchange
rates on market prices and operating costs; actions by governmental
authorities, such as changes in taxation or regulation or changes
in the decarbonisation policies and plans of other countries;
changes in economic and financial market conditions generally or in
various counties or regions; political or geopolitical uncertainty;
and wars, political or civil unrest, acts of terrorism,
cyber-attacks or sabotage.
Readers, including, without limitation,
investors and prospective investors, should review and consider
these risks and uncertainties (as well as the other risks
identified in this document) when considering the information
contained in this document. Readers should also note that the high
degree of uncertainty around the nature, timing and magnitude of
climate-related risks, and the uncertainty as to how the energy
transition will evolve, makes it difficult to determine all
potential risks and opportunities and disclose these and any
potential impacts with precision. Neither Glencore nor any of its
affiliates, associates, employees, directors, officers or advisers,
provides any representation, warranty, assurance or guarantee as to
the accuracy, completeness or correctness, likelihood of
achievement or reasonableness of any forward-looking information
contained in this document or that the events, results,
performance, achievements or other outcomes expressed or implied in
any forward-looking statements in this document will actually
occur. Glencore cautions readers against reliance on any
forward-looking statements contained in this document, particularly
in light of the long-term time horizon which this document
discusses in certain instances and the inherent uncertainty in
possible policy, market and technological developments in the
future.
No statement in this document is intended as any
kind of forecast (including, without limitation, a profit forecast
or a profit estimate), guarantee or prediction of future events or
performance and past performance cannot be relied on as a guide to
future performance.
Except as required by applicable regulations or
by law, Glencore is not under any obligation, and Glencore and its
affiliates expressly disclaim any intention, obligation or
undertaking, to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
This document shall not, under any circumstances, create any
implication that there has been no change in the business or
affairs of Glencore since the date of this document or that the
information contained herein is correct as at any time subsequent
to its date.
Cautionary
statement regarding climate strategy
Glencore operates in a dynamic and uncertain
market and external environment. Plans and strategies can and must
adapt in response to dynamic market conditions, changing preference
of our stakeholders, joint venture decisions, changing weather and
climate patterns, new opportunities that might arise or other
changing circumstances. Investors should assume that our climate
strategy will evolve and be updated as time passes. Additionally, a
number of aspects of our strategy involve developments or
workstreams that are complex and may be delayed, more costly than
anticipated or unsuccessful for many reasons, including, without
limitation, reasons that are outside of Glencore's control. Our
strategy will also necessarily be impacted by changes in our
business, such as the proposed acquisition of EVR and potential
demerger of the combined coal and carbon steel materials
business.
There are inherent limitations to scenario
analysis, and it is difficult to predict which, if any, of the
scenarios might eventuate. Scenario analysis relies on assumptions
that may or may not be, or prove to be, correct and that may or may
not eventuate and scenarios may also be impacted by additional
factors to the assumptions disclosed. Given these limitations we
treat these scenarios as one of several inputs that we consider in
our climate strategy.
Due to the inherent uncertainty and limitations
in measuring greenhouse gas (GHG) emissions and operational energy
consumption under the calculation methodologies used in the
preparation of such data, all CO2e emissions and operational energy
consumption data or volume references (including, without
limitation, ratios and/or percentages) in this document are
estimates. GHG emissions calculation and reporting methodologies
may change or be progressively refined over time resulting in the
need to restate previously reported data. There may also be
differences in the manner that third parties calculate or report
such data compared to Glencore, which means that third-party data
may not be comparable to Glencore's data. For information on how we
calculate our emissions and operational energy consumption data,
see the About our emissions calculations and reporting section in
our 2023 Annual Report and our 2023 Basis of Reporting, which are
available on our website.
Sources
Certain statistical and other information
included in this document is sourced from publicly available
third-party sources. This information has not been independently
verified and presents the view of those third parties and may not
necessarily correspond to the views held by Glencore and Glencore
expressly disclaims any responsibility for, or liability in respect
of, and makes no representation or guarantee in relation to, such
information (including, without limitation, as to its accuracy,
completeness or whether it is current). Glencore cautions readers
against reliance on any of the industry, market or other
third-party data or information contained in this
document.
Information
preparation
In preparing this document, Glencore has made
certain estimates and assumptions that may affect the information
presented. Certain information is derived from management accounts,
is unaudited and based on information Glencore has available to it
at the time. Figures throughout this document are subject to
rounding adjustments. The information presented is subject to
change at any time without notice and we do not intend to update
this information except as required.
Subject to any terms implied by law which cannot
be excluded, Glencore accepts no responsibility for any loss,
damage, cost or expense (whether direct or indirect) incurred by
any person as a result of any error, omission or misrepresentation
in information in this document.
Other
information
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.