Our business model and strategy
Our business model
As a global producer and marketer of commodities, we are diversified by geography, products and activities. Integrating our marketing and industrial business sets us apart from our competitors in creating an enhanced entrepreneurial focus on value generation.
Our strategy
Aligned with our Purpose to responsibly source the commodities that advance everyday life, the commodities in our portfolio help support both the transition to a low-carbon economy and society’s energy needs as it progresses through the transition.
We have three strategic priorities:
- Responsible and ethical business practices
- Effective capital management
- Strong operational and commercial performance
Our priorities
The world needs a reliable source of responsibly produced commodities. We are committed to operating ethically and responsibly in accordance with our Values and Code of Conduct, respecting human rights and developing, maintaining and strengthening our relationships with our various stakeholders. This approach is supported by our programmes, such as those related to health, safety, the environment, social performance and ethics and compliance, which set out our goals, objectives, expectations and minimum requirements that we seek to apply consistently across the Group.
We recognise that a robust and sufficiently flexible balance sheet contributes to the delivery of sustainable, appropriately risk-adjusted, long-term shareholder returns and should ensure that Glencore is well placed to withstand the cyclical nature of the natural resource industry. We will prioritise value accretive investment, balancing growth and shareholder returns through active management of our industrial asset portfolio, aligned with our strategic role in supplying the commodities essential to everyday life and global progress.
We seek to deliver safe and reliable performance with disciplined cost management by placing accountability and ownership at the right place in the organisation. We leverage our diversified business model across industrial and marketing activities to remain adept in a range of market conditions. We seek to profitably develop our marketing business, meet industrial production objectives, as well as deliver on our major projects. We also focus on the disciplined supply of commodities, which may result in the proactive curtailment of our own production from time to time.