Our activities can make a significant contribution to the national, regional and local economies through the production and marketing of commodities that provide the basic building blocks for development. We provide employment and training, business partner opportunities, tax and royalty payments to governments that help provide essential services, socioeconomic development and environmental stewardship.
We aim to avoid harm to people and the environment from our activities, respect human rights, contribute to social and economic development of affected people and society more widely, and to establish and maintain trusting relationships with stakeholders, through ethical and responsible business practices.
How does Glencore approach social performance management?
Our assets are located in an extremely diverse contexts; some in highly developed countries with strong legal and political frameworks, and others in more challenging socio-political circumstanceswith a history of conflict, limited basic services, and weak rule of law.
We are committed to being a valued partner in all communities where we operate, working with others to find and implement solutions to social issues, and helping to build resilient and peaceful communities.
Our aim is to always operate ethically, in line with our values, andset and achieve consistently high standards in our social performance.
How does Glencore engage with host communities?
The first step in designing our social programmes is to build an understanding of our host communities through data gathering and engagement.
We as analyse local demographics, economies, sociocultural activities, religions, existing and potential conflict, and availability of services and infrastructure to build a picture of our host communities.
We supplement this work by listening to people’s needs and concerns, as well as identifying our potential impacts, risks and opportunities.
From these assessments, we design stakeholder engagement strategies aligned with our business objectives and local needs. We work to create meaningful, constructive and proactive dialogue with our local communities.
We design our community consultation processes to be inclusive, respectful of local context, cultures and traditions. We take particular care to identify vulnerable groups, such as women, children and Indigenous people, and develop and implement strategies to include them in the engagement process.
We provide our local communities with information in a range of different ways, tailored to the local context and culture. These may include radio broadcasts, social media channels, site publications and a range of face-to-face meetings.
Paying special attention to vulnerable groups
Some people living in our host communities are at risk of economic and social discrimination. These may include Indigenous people, women, children, disabled and elderly people, and victims of conflict.
Wherever we operate, we look for these groups during our stakeholder identification and determine the most appropriate ways to engage with them. We try to understand and respect their situation and concerns, and identify opportunities for their inclusion and participation.
Working with Indigenous groups and respecting cultural heritage
Our business interacts with many diverse communities around the world. We appreciate and respect the importance of their cultural heritage and seek to avoid, or where avoidance is not possible, minimise impacts from our operations and activities on places, items or other aspects of historical and cultural significance. Wherever possible, we work with relevant parties, including the people whose heritage may be affected, to identify, preserve and protect heritage of significance.
Some of our assets are located on or near the traditional lands of Indigenous Peoples. We engage in open and continuous dialogue with local and Indigenous communities affected by our activities to better understand their culture, views, and aspirations, and work with them to minimise adverse impacts and create enduring benefits.
A number of our assets have formal agreements in place with Indigenous groups including Indigenous Land Use Agreements in Australia and Impact Benefit Agreements in Canada. At relevant assets, we focus on practical and meaningful measures that can enhance the socio-economic capacity and well-being of our local and Indigenous communities.
Our approach aligns with the ICMM Position Statement on Indigenous Peoples and Mining, demonstrating respect for Indigenous People’s rights, interests, special connections to lands and waters, and perspectives. The statement requires members to adopt and apply engagement and consultation processes that ensure the meaningful participation of Indigenous communities in decision making, through a process consistent with their traditional decision-making processes, and based on good faith negotiation. Members are expected to work to obtain the consent of Indigenous People prior to undertaking development of new projects and changes to existing projects where significant adverse impacts on Indigenous Peoples are likely to occur.
In 1995, our Raglan Mine, located between the Inuit communities of Salluit and Kangiqsujuaq in northern Quebec, the operation signed The Raglan Agreement. The Agreement between Raglan Mine and five Inuit partners enshrines comprehensive socio-economic impacts and benefits with local stakeholders.
Following the Juukan Gorge incident, we have been closely following the Australian inquiry process and we commissioned an expert third party to present the learnings from the Juukan rockshelter event to our relevant teams. We also established an Indigenous Relations and Cultural Heritage Working Group in Australia to review our approach to Indigenous engagement and assess our current heritage management governance, standards and practices. The Australian review is being expanded to incorporate all our mining assets and projects which are considered to have the potential to impact on cultural heritage. The outcomes of the review will be used to strengthen our cultural heritage management throughout the Group.
Supporting local business
We use local suppliers whenever we can, to reduce our costs and provide our host communities with alternative employment opportunities. Our development of local procurement bases helps host governments to fulfil their objectives.
We work to support and promote businesses based close to our assets to drive local economic diversification through the provision of finance, management expertise and advice, or work premises.
Our approach varies from region to region, but can include:
- Encouraging our large international suppliers to build partnerships with local businesses
- Financing or constructing business parks and centres to host and support local entrepreneurs
- Training for small businesses
- Programmes to support local businesses meet local and international quality standards
- Working with local government agencies to support training and help develop business plans
In regions with a less developed small business sector, our community and procurement teams work together to identify needs and develop programmes to help local businesses meet our quality standards and expectations for conduct. We offer targeted business management training, underwrite credit applications and guarantee future business within specific limits. We also encourage large international contractors to develop local partnerships to transfer skills and build capacity locally.
Making our payments to governments transparent under the EU Accounting Directive
We pay all relevant taxes, royalties and levies required by local and national regulation in our host countries.
The payments we make to the governments of the countries in which we operate include local, national, sales and employment taxes, government royalties and licence and permitting fees.
We welcome fiscal transparency, as it encourages the responsible management of revenues from extractive activities. We are a supporter of the Extractive Industries Transparency Initiative (EITI) and its principles of transparency and accountability. We participate in in-country forums supporting the EITI.
Our annual includes the information required by the EU Accounting Directive, and details payments by country, project and recipient. The report includes disclosure on our oil purchases payments to state-owned enterprises in EITI-compliant countries.
Metrics and targets
We measure and monitor our community impact and aim for continuous improvement.
We require our assets to regularly review their approach to ensure that they are meeting community needs and addressing priorities. Community perception surveys are performed every three years to evaluate the effectiveness of our approach and provide valuable information to shape future plans.