We recognise global climate change science, as laid out by the United Nations Intergovernmental Panel on Climate Change. Find out how we are responding to the shift to a lower-carbon economy.
We believe that the global response to climate change should pursue twin objectives: both limiting temperatures in line with the goals of the Paris Agreement and supporting the United Nations Sustainable Development Goals, including universal access to affordable energy.
Why this matters
As one of the world’s largest diversified resource companies, Glencore has a key role to play in enabling transition to a low carbon economy. We do this through our well-positioned portfolio that includes copper, cobalt, nickel, vanadium and zinc - commodities that underpin energy and mobility transformation, for example through batteries for electric vehicles. We believe this transition is a key part of the global response to the increasing risks posed by climate change.
To deliver a strong investment case to our shareholders, we must invest in assets that will be resilient to regulatory, physical and operational risks related to climate change.
We actively engage with policy-makers on regulatory changes arising from global climate change efforts – such as the COP21 commitments agreed in the Paris agreement.
To meet the growing needs of a lower carbon economy, Glencore aims to prioritise its capital investment to grow production of commodities essential to the energy and mobility transition and to limit its coal production capacity broadly to current levels.
Energy is also one of our highest production costs – so we seek ways to improve our own energy efficiency and reduce our greenhouse gas (GHG) emissions.
In 2017, we announced a target to reduce our greenhouse gas emissions intensity by 5% by 2020 compared to a 2016 baseline. We are currently on track to meet this target. We are developing new, longer-term targets, based on policy and technological developments that support the Paris Goals, and intend to make these public in our 2020 annual report.
Climate change disclosure
We recognise the importance of disclosing to investors how we ensure our material capital expenditure and investments are aligned with the Paris Goals. This includes each material investment in the exploration, acquisition or development of fossil fuel (including thermal and coking coal) production, resources and reserves, as well as in resources, reserves and technologies associated with the transition to a low carbon economy.
Starting in 2020, we intend to report publicly on the extent to which, in the Board’s opinion, this was achieved in the prior year and the methodology and core assumptions for this assessment. These disclosures will be made in our Annual Report