Glencore publishes 2020 Payments to Governments Report
30 June, 2021
Our corporate purpose, to responsibly source the commodities that advance everyday life, is core to how we operate. Our commitment includes implementing high standards of corporate governance and transparency. We welcome fiscal transparency, as it encourages the responsible management of revenues from extractive activities.
The global pandemic made 2020 a challenging year, affecting and continuing to impact our business, employees, communities and society at large. Despite the challenges, our payments to governments totalled around $5.8 billion, of which $2.1 billion is reported pursuant to the EU Accounting Directive extractive industries’ reporting requirements. This compares to a 2019 total of $7.7 billion and $4 billion under the EU reporting requirements. The year-on-year reduction reflects a decrease in production due to the global pandemic, as well as substantially lower commodity prices.
In 2020, our global effective tax rate, pre-significant items, was 29.7%, consistent with 2019’s 30.5%.
Our contribution goes beyond the taxes and royalties that we pay and our activities contribute significant, long-term socio-economic value to our operating countries, enabling governments to realise value from their natural assets and to fund public services and infrastructure that improve their nation’s way of life. Our global footprint can make significant and sustainable economic benefits to our host governments, employees, suppliers and communities through the provision of employment and training, tax and royalty payments, local procurement, social development and environmental stewardship.
During the year, we spent $4.6 billion on wages and benefits for the 145,000 people working for Glencore and $95 million on initiatives that benefit the communities living around our operations, of which $19 million was spent on specific Covid-19 related activities.
We believe that increased transparency is important to building trust and delivering accountability. As part of our ongoing commitment towards increased transparency in the industry, we continue to support and encourage the Extractives Industry Transparency Initiative (EITI). As in previous years, we are disclosing our payments to state-owned entities for the purchases of oil, gas, minerals and metals in EITI countries. We are supportive of the disclosure of mining and exploration contracts with governments, to the extent that these are not subject to confidentiality restrictions. Since December 2020, we publish on our website the beneficial ownership information of our operating joint ventures.
Steve Kalmin, our Chief Financial Officer, speaks about our commitment to transparency and disclosure, as well as the broader socio-economic contribution we make across the countries where we operate.
For further information please contact:
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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 responsibly-sourced commodities that advance everyday life. The Group's operations comprise around 150 mining, metallurgical 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 a global network of more than 30 marketing 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's companies employ around 135,000 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. Our ambition is to be a net zero total emissions company by 2050.