As one of the world’s largest diversified resource companies, we recognise climate change science as set out by the United Nations and are proud of the role we play in supporting the transition to a low-carbon economy.
Through responsibly sourcing the commodities that advance everyday life, we supply raw materials that provide affordable energy and are essential to societal transformations such as the growing demand for electric vehicles.
We responsibly manage, monitor and report our direct and indirect emissions.
What is Glencore’s position on climate change?
We support the global climate change goals outlined in the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement to limit the rise in global temperature to well below 2°C by the second half of this century.
We believe that only through collective global action can the world achieve the goals of the Paris Agreement and limit the impact of climate change, as well as deliver the United Nations Sustainable Development Goals, including universal access to affordable energy.
We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement by decarbonising our own operational emissions footprint. We believe that our contribution should be based on a holistic approach and have considered our commitments through the lens of our total emissions footprint.
Our well-positioned portfolio supports the transition to a low-carbon economy, while also meeting the need for universal access to reliable energy.
Why this matters
The world requires a global transformation of energy, industrial and land-use systems to achieve these goals. As one of the largest diversified natural resource companies in the world, we can support the achievement of the goals by producing, trading and supplying the metals and minerals that are essential to the transition to a low-carbon economy and to meeting the needs of everyday life.
We understand the role the commodities we produce and market have in meeting the needs of daily lives. The diversity of our portfolio underpins our strategic ambition to play a leading role in enabling the decarbonisation of global energy demand through providing metals such as copper, cobalt, zinc and nickel that are essential to the transition to a low-carbon economy.
Our climate change commitments
In line with the ambitions of the 1.5°C scenarios set out by the Intergovernmental Panel on Climate Change (IPCC), we target a short-term reduction target of 15% by 2026 and a medium-term 50% reduction of our total (Scope 1, 2 and 3) emissions by 2035 on 2019 levels. Post-2035, our ambition is to achieve, with a supportive policy environment, net zero total emissions by 2050.
Climate change strategy
Our Climate Change Taskforce (CCT) is accountable to and provides progress and status updates to our Board of Directors and Management Committee. Its members include our CEO, CFO, COO and Group Legal Counsel. It monitors and oversees our progress against Glencore’s climate commitments.
Within the CCT there are a number of working groups focusing on the following activities:
- Achieving our emissions reductions targets;
- Identifying and leveraging carbon marketing opportunities
- Designing and implementing systems to support complete, accurate and attestable reporting; and
- Monitoring external trends and coordinating and overseeing advocacy and communication.
We incorporate energy costs and our carbon footprint into our annual planning process. Commodity departments are required to provide energy and greenhouse gas (GHG) emissions forecasts for each asset over the forward planning period and provide details of emissions reduction projects.
The CCT oversees the ongoing integration of carbon emissions and energy into our annual business planning and the mapping of our projected energy and carbon footprints. It includes an assessment of potential mitigation and abatement projects, and underpins the basis of our internal Marginal Abatement Cost Curve.
Climate change disclosure
Our approach to climate is of significant importance for our shareholders and they have expressed a desire to have the opportunity to directly advise Glencore of their opinion on our plans and their implementation. At least every three years, we issue our Climate Plan. Our annual Progress Report on our activities and progress against our Climate Plan is put to a shareholder advisory vote at every AGM.
We also 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.
Supporting the electric vehicle revolution
We responsibly source the commodities that advance everyday life. Our well-positioned portfolio includes commodities that are essential to energy and mobility transformations, such as copper, nickel and cobalt.
The growth in electric vehicle (EV) uptake is driving demand for the mass production of powerful batteries that require the raw materials we produce.
The increased deployment of EVs will also result in greater demand for secure and reliable baseload electricity and associated infrastructure required to service the EV fleet. This presents further opportunity for our business to support the transition to a low-carbon economy.
Metrics and targets
We divide CO2 emissions reporting into three different scopes, in line with the Greenhouse Gas Protocol, and measure both the direct and indirect emissions generated by the industrial activities, entities and facilities where we have operational control.
We separate our CO2 emissions reporting into Scope 1 and Scope 2 – location-based emissions. Scope 1 (measured in CO2e) includes emissions from combustion in owned or controlled boilers, furnaces and vehicles/vessels and coal seam emissions (direct emissions). Scope 2 – location-based emissions (measured in CO2) applies the grid emission factor to all our purchased electricity, regardless of specific renewable electricity contracts (indirect emissions).
The majority of our Scope 1 emissions include fugitive emissions from the production of coal (coal seam emissions) and consumption of fuel and reductants. Scope 2 emissions principally relate to purchased electricity for our operations, in particular our metals processing assets, which require secure and reliable energy 24 hours a day, 365 days a year.
In addition to Scope 1 and 2 GHG emissions, our activities include Scope 3 emissions. These relate to the indirect GHG emissions across our value chain. These include upstream emissions associated with the products and services we purchase from suppliers and downstream emissions that include emissions resulting from our customers’ use of the fossil fuels that we produce, their processing of our metals and concentrates, and the emissions resulting from time-chartered vessels.