Glencore Energy UK limited fully resolves investigation by UK authorities
3 November 2022
£280,965,092.95 financial penalty and costs is part of previously announced coordinated resolutions with authorities in the US, UK and Brazil
Aggregate amounts of the resolutions are materially consistent with the provision recorded in Glencore’s FY 2021 results
Glencore Energy UK Limited will pay a financial penalty and costs of £280,965,092.95 in respect of the previously announced resolution of the UK Serious Fraud Office (“SFO”) investigation. The penalty was determined by the Southwark Crown Court, where the company previously admitted to five counts of bribery and two counts of failure to prevent bribery under the UK Bribery Act 2010. As the SFO noted, Glencore provided a high level of cooperation with the SFO’s investigation and engaged in an extensive programme of corporate reform.
Today’s hearing in London follows Glencore’s 24 May 2022 announcement that it had reached coordinated resolutions of investigations by authorities in the United Kingdom, the United States and Brazil into past activities in certain Group businesses related to bribery, and separate US investigations related to market manipulation.
The aggregate payments to resolve the UK, US and Brazilian investigations do not differ materially from the $1,500 million provision recorded in Glencore’s FY2021 results.
In a statement, Kalidas Madhavpeddi, Chairman of Glencore said:
“The conduct that took place was inexcusable and has no place in Glencore. The Company is committed to operating a company that creates value for all stakeholders by operating transparently under a well-defined set of values, with openness and integrity at the forefront. The Company has taken significant action towards implementing a world-class Ethics and Compliance Programme built around risk assessment, policies, procedures, standards and guidelines based on international best practice, associated training and awareness initiatives as well as monitoring systems.”
Glencore continues to cooperate with a previously disclosed and ongoing investigation by the Office of the Attorney General of Switzerland (“OAG”) into Glencore International AG for failure to have the organisational measures in place to prevent alleged corruption, and an investigation of similar scope by the Dutch Public Prosecution Service. The timing and outcome of these investigations remain uncertain (see Notes 21 and 27 of the Company’s 2022 Half-Year Report).
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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. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that enable decarbonisation while meeting the energy needs of today.
Glencore companies employ around 135,000 people, including contractors. With 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 40 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.
Glencore recognises its responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is to be a net zero total emissions company by 2050. In August 2021, we increased our medium-term emission reduction target to a 50% reduction by 2035 on 2019 levels and introduced a new short-term target of a 15% reduction by 2026 on 2019 levels.
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.