We will continue to integrate new climate change challenges and opportunities into our business strategy and planning. This includes consideration of exposure to physical and regulatory climate change risks, along with action to mitigate or adapt to these risks. Our objectives and key activities are:

Objective

Key activities

1. Monitor and manage the drivers of climate risk

  • Monitor NDC implementation and the progress of key countries towards achieving targets
  • Monitor changes to the regulatory, technological, economic and physical environments applicable to our businesses, both where we operate and in jurisdictions that affect our suppliers and customers (eg weather risks, technology disruption and carbon pricing)
  • Continue to engage in public policy processes in our countries of operation

2. Refine our risk assessment process to manage climate 
change risks and opportunities

  • Develop internal climate change policy scenarios
  • Continue to monitor broader energy market dynamics and supply chains
  • Develop a risk and opportunity management framework to assess and respond to climate change risks and opportunities

3. Address climate change impacts and
regulatory changes

  • Continue internal Group GHG emission measurement and reporting
  • Continue to integrate climate change into business planning at relevant levels
  • Set an internal GHG reduction target where economically viable

4. Investment and community engagement

  • Continued carbon disclosure to stakeholders
  • Continued participation in public policy developments on climate change

Climate change scenarios

We have developed three scenarios that we consider to be plausible views of the future with regard to the world’s climate change responses. They take into account energy market projections by leading organisations such as the IEA, leading climate science projections from the IPCC, and our analyses of likely shifts in policy and other conditions corresponding to scientific and economic changes. Glencore will continue to develop these scenarios and test them against our business.

Scenario

Assumptions

Delayed action

Domestic efforts to reduce emissions (including NDC implementation) are variable, with many countries not meeting their stated targets or objectives. Inconsistent implementation of carbon pricing across mainly developed economies.

Fossil fuels continue to be the primary base for electricity generation with slower introduction of low-carbon technologies and retirement of old plants. Stronger global emphasis on efficiency but slow and poor delivery of climate finance.

Committed action

Domestic efforts to reduce emissions with focussed NDC implementation achieved by key countries. Carbon pricing implementation led by developed economies in a coordinated and structured manner.

Moderate growth of nuclear, renewables and increasing use of high-efficiency, low-emission (HELE) technologies for use in fossil fuel-based electricity generation.

Enhanced energy efficiency and consumption improvements in developed and developing countries supported by climate finance.

Ambitious action

Globally coordinated efforts to reduce emissions accelerated beyond the implementation of existing NDCs. Universal adoption of carbon pricing supported by a structured global carbon pricing regime.

Rapid deployment of break-through technologies and non-subsidised investment in renewable energy, battery storage, energy efficiency and carbon capture and storage (CCS).