WHO WE ARE

Governance

As a premium listed company on the London Stock Exchange, we adhere to the principles and comply with the provisions of the UK Corporate Governance Code, our main applicable governance rules. We seek to apply best practice, ensuring that our approach is up-to-date and relevant.

Governance documentation

Articles of Association: this is our main constitutional document, defining the role of our directors and the rights of our shareholders, along with other matters.

Corporate Governance report from our 2017 Annual Report.

Principal risks and uncertainties table, reproduced from our 2017 Annual Report.

Risk Factors, reproduced from EMTN Base Prospectus issued in June 2018

Remuneration policy, adopted at our 2017 AGM.

In addition to full Board meetings, the Directors exercise their authority through the following Committees:

Audit Committee

Members 

Leonhard Fischer (Chairman), Martin Gilbert, Gill Marcus

This committee meets at least three times a year and has responsibility for monitoring the integrity of our financial statements. It also oversees our risk management policies and has responsibility for reviewing the effectiveness of our system of internal controls. It oversees our relationship with external auditors and reviews the effectiveness of their processes. It also reviews our internal audit function.

Audit Committee Terms of Reference

Remuneration Committee

Members:

John Mack (Chairman), Martin Gilbert, Leonhard Fischer

This committee usually meets at least twice a year; it makes recommendations to the Board on executive director and chairman compensation, as well as exercising an oversight role in relation to other areas of executive remuneration.

Remuneration Committee Terms of Reference

Nomination Committee

Members:

Anthony Hayward (Chairman), Leonhard Fischer, John Mack, Gill Marcus

This committee usually meets at least twice a year and has responsibility for recommending appointments of additional or replacement members to the Board, and advising when it is time for current members to retire. It also advises on the appropriate composition of the Board, including retention of current Directors.

Nomination Committee Terms of Reference

Health and Safety, Environmental and Communities (HSEC) Committee

Members:

Peter Coates AO (Chairman), Ivan Glasenberg, Anthony Hayward, Patrice Merrin

The only committee on which an Executive Director (our CEO) sits. It is responsible for formulating and recommending to the Board our policy on health and safety, environment, security and local community issues as they affect our operations.

HSEC Committee Terms of Reference

Ethics, Compliance and Culture Committee 

Members:

Anthony Hayward, (Chairman),  Patrice MerrinGill MarcusLeonhard Fischer,  Peter Coates AO

This committee has responsibility for overseeing and approving key ethics, compliance and culture related matters within the Group.
It also reviews and reports to the Board on the Group’s ‘raising concerns’ program available for employees to raise, in confidence, any possible wrongdoing in matters within the Committee’s remit.

Ethics, Compliance and Culture Committee Terms of Reference

We seek to maintain a culture of ethical behaviour and compliance throughout the Group, rather than simply performing the minimum required by laws and regulations. We will not knowingly assist any third party in breaching the law, or participate in any criminal, fraudulent or corrupt practice in any country.  

To support this, we have implemented a Group compliance programme that includes a range of policies, procedures, guidelines, training and awareness, monitoring and investigations. Our permanent and temporary employees, directors and officers (as well as contractors, where they are under a relevant contractual obligation) must comply with our relevant compliance policies, procedures and guidelines, in addition to complying with applicable laws and regulations. When we enter into joint ventures where we are not the operator, we strive to influence our partners to adopt similar policies to ours.
 

Group Policy Framework and Compliance Structure

Our policy framework encompasses our values, Code of Conduct and policies, procedures and guidelines on various compliance topics including anti-corruption, sanctions, anti-money laundering, the prevention of fraud, market abuse, the prevention of the facilitation of tax evasion, competition law, data protection and conflicts of interest. This framework reflects our commitment to uphold good business practices and to meet or exceed applicable laws and external requirements. We emphasise their importance in our business activities, including recruitment and induction. Training and awareness on our policies, procedures and guidelines, as well as strong leadership, are critical components of our compliance programme. They ensure our employees understand the behaviour expected of them and provide guidance on how they can identify and practically approach legal and ethical dilemmas in their daily work lives.

Employees can access the compliance policies, procedures and guidelines through various channels, including via the compliance team, the Group intranet or local intranet of the specific asset at which they work. Our managers and supervisors are responsible for ensuring employees understand and comply with the policies and procedures. We monitor and test their implementation on a regular basis. Employees and contractors who have access to a work computer must confirm their awareness and understanding of our compliance requirements electronically every year. Certain assets implement their own policies, procedures and guidelines in addition to those of the Group. These are designed to address specific local requirements, while being consistent with our policy framework.

We employ compliance officers (generally based in Glencore’s major offices in Baar, London, Rotterdam, New York and Singapore), regional compliance officers (responsible for implementation of the programme in specific geographical jurisdictions) and compliance coordinators (who sit in individual offices and/or assets across the globe). Compliance officers are full time compliance employees who provide dedicated compliance support to the business.  Regional compliance officers manage implementation of the compliance programme at a regional level and provide guidance to the business and to local compliance coordinators.  Local compliance coordinators, guided by the corporate and regional compliance teams, take on a compliance role in addition to their primary role. Where necessary, in certain of our assets, we appoint compliance coordinators on a full-time basis. To ensure the effective implementation of our compliance programme worldwide, we nominate and appoint qualified and appropriate individuals for compliance coordinator roles, given the nature and risks identified at our operations and offices following a formal nomination and appointment procedure. These compliance coordinators support our employees in day-to-day business considerations, particularly those seeking advice on ethical, lawful behaviour or policy implementation. Employees may access the contact details of our compliance officers and coordinators via the Group intranet and their local intranet.

Board Oversight and Governance

We provide training to the Board of Directors emphasising the role of the board in the oversight and implementation of an effective ethics and compliance programme.  Furthermore, the Board receives quarterly updates on the programme through the relevant committees.  These updates cover all focus areas (including anti-corruption, sanctions and money laundering) and include topics such as team and programme structure, policies, procedures and guidelines, as well as updates on the training and awareness activities the Group facilitates.  We also report to the Board on material investigations and reports into our Raising Concerns programme.    We have also established an Ethics, Compliance and Culture Committee which further oversees the operation and implementation of our compliance programme.   

The Group has a Business Ethics Committee (BEC) which comprises Glencore’s CEO, CFO, and General Counsel, senior management and members of the compliance team. The BEC considers compliance issues relevant to the Group and reviews and approves our policies, procedures and guidelines. The BEC reports to the to the Board through the relevant committees.  The BEC approves policies, procedures and guidelines which are then implemented by our compliance function.  

Training and awareness

Our employees receive induction sessions and ongoing training on a range of compliance issues.  Employees and contractors are required to complete training on our Code of Conduct as well as our Global Anti-Corruption Policy, which includes guidance on important topics such as raising concerns, facilitation payments, the giving and receiving of gifts and entertainment and dealings with public officials.  We tailor our trainings and make them relevant for our employees and contractors by including real-life hypothetical scenarios which illustrate how legal and ethical dilemmas might manifest themselves in their daily work activities.  

The target audience of the Code of Conduct e-Learning is employees with regular access to a work computer and the training on anti-corruption targets those whose function may require them to interact with third parties. For those employees who do not have regular access to a work computer, we provide training in other ways including induction sessions, pre-shift general training and toolbox talks. In addition, compliance officers and compliance coordinators conduct face-to-face training for relevant employees to raise awareness about compliance risks related to their functions and to train them on Glencore’s compliance policies, procedures and guidelines. 
 

Monitoring

As part of the Group compliance programme, we conduct monitoring on a risk-based basis to test and verify compliance with the Group policies, procedures and guidelines and with the laws and regulations applicable to Glencore’s marketing and industrial activities. This entails performing periodic and ad hoc testing reviews in accordance with the corporate testing and monitoring plans, analysing documents and procedures and, in the case of findings, collaborating with the relevant marketing office or industrial operation to determine the most appropriate course of action, including any required corrective action.

Bribery and corruption

Glencore’s Global Anti-Corruption Policy is available on the Group website. It contains our clear position on bribery and corruption: the offering, paying, authorising, soliciting or accepting of bribes is unacceptable. We conduct analysis for corruption risks within our businesses and work towards addressing these risks through policies, procedures, guidelines, training and awareness, monitoring and controls.  

Certain of our operations screen potential new employees before hiring using a risk-based approach. Recruitment is required to take place in line with the Corporate Recruiting Policy and guidance for avoiding corruption risks in the hiring process, including guidance in relation to the hiring of relatives of public officials. It is prohibited to recruit or employ current or former public officials or their relatives in consulting roles, secondments or employment in order to influence a public official in his or her official capacity for the purpose of obtaining an advantage.

As per our Global Anti-Corruption Policy, facilitation payments should not be made. We also do not permit the use of any of our funds or resources as contributions to any political campaign, political party, political candidate or any such affiliated organisations.  Although we do not directly participate in party politics, we do on occasion engage in policy debate on subjects of legitimate concern to our business, employees, customers, end users and the communities in which we operate. Any of our officers, employees or associated persons who lobbies on our behalf must comply with all applicable laws and regulations (including but not limited to complying with the laws and regulations relating to registration and reporting). 

We may only give and receive appropriate, lawful business gifts and entertainment in connection with our work, provided that such gifts and entertainment satisfy the general principles set out in the Global Anti-Corruption Policy and are not given or received with the intent or prospect of influencing the recipient’s decision-making or other conduct.  Furthermore, we have approval procedures in place which provide specific requirements for certain types of gifts and entertainment and certain operations, including our procedure for gifts and entertainment for public officials which applies whenever an employee of our marketing operations intends to arrange entertainment, travel, accommodation or a gift for a public official and the value of the courtesy exceeds a specific threshold.

In addition to our standard “Know Your Counterparty” programme, the Group has implemented the Third Party Due Diligence Procedure which seeks to ensure that our third party relationships which present the highest corruption risk are conducted in accordance with applicable laws and regulations and our Global Anti-Corruption Policy. The procedure sets out a detailed process whereby circumstances that may pose a corruption risk are, on a risk basis, reviewed, addressed and taken into consideration when deciding whether and on which conditions to proceed with a third party relationship, particularly intermediaries, joint-ventures and service providers.  The procedure also requires, where necessary, for ongoing monitoring and review of the relationships to ensure compliance with our Global Anti-Corruption Policy.

We report on an annual basis in respect of our total payments to governments, and provide country-by-country and project-by-project information in this regard.  Additionally, and where applicable, we have aligned our reporting on such payments with the requirements of Chapter 10 of the EU accounting directive.    

Glencore is a member of the Partnering Against Corruption Initiative (PACI). Members collaborate on collective action and share leading practice in organisational compliance. The initiative is based on a commitment to zero tolerance on bribery and implementation of practical and effective anti-corruption programmes. We are also an associate member of the Maritime Anti-Corruption Network (MACN), and participate in its various activities.

Sanctions

Glencore is committed to respecting, upholding and complying with all sanctions applicable to our business and to all transactions in which we engage, regardless of our role or location. The applicability and scope of the applicable sanctions can differ per transaction, jurisdiction and other factors. Our Global Sanctions Policy sets forth our approach to sanctions and how we work toward complying with applicable sanctions and appropriately manage sanctions risk. The Glencore Sanctions Procedure outlines the steps and procedures we take to ensure compliance with the Global Sanctions Policy.

Prevention of Facilitation of Tax Evasion

The Group does not tolerate tax evasion of any kind, including facilitation of tax evasion by any person employed or contracted to the Group or acting on its behalf and has procedures which seek to prevent any such facilitation.

Reporting misconduct

Everybody working for Glencore must promptly raise any situations in which the Glencore Code of Conduct, its underlying policies or the law appear to be breached with a supervisor or manager. Alternatively, they may raise the concern with the appropriate manager in human resources, legal, finance, corporate affairs, sustainability or senior management, or with his or her local compliance contact. 

Where the concern remains unresolved through these local channels, or should an employee, contractor, supplier or other stakeholder feel uncomfortable utilising the local channels for resolution of the concerns for whatever reason and at any time, the concern can be referred to the Glencore Raising Concerns Programme.

The process is simple. To raise a concern using Glencore’s secure web platform, individuals may visit https://glencore.raisingconcerns.org and click on the “Raise a Concern” button. For most countries, telephone numbers are also available to make a report.  These relevant telephone numbers can be found at the above web address.  

When using the platform, no IP information, time stamps or metadata is recorded and reports are encrypted.  All reporters will remain anonymous unless the reporter chooses to disclose his or her name, or unless the reporter’s name is required by local law.  If a concern is reported in good faith and the reporter elects to identify himself or herself, the reporter’s identity will be considered private and must be protected.  This means Glencore will only disclose the identity of the reporter to those people at Glencore who need the information to investigate and resolve the concern.  

Glencore will not tolerate retaliation for reports made in good faith.  Abuse of the channel, however, is not acceptable.