Our approach to transparency
We are committed to high standards of corporate governance and transparency. We seek to maintain long-term, open, transparent and constructive relationships and dialogue with all of our key stakeholders.
Through our presence, we are able to deliver significant and sustainable economic benefits to our host governments, employees, suppliers and communities. We seek to understand and manage our impacts, generate sustainable benefits for our host communities, while also promoting diversified and resilient local economies. We believe that our transparency encourages the responsible management of revenues, supports an improved understanding of our activities and contributions and strengthens accountability.
Our contributions in 2020
in income taxes, royalties and other payments
Adjusted Effective Tax Rate
in salaries, wages, social security and other benefits
on initiatives supporting local community development
We support and welcome fiscal transparency, for both the payments we make to governments and the redistribution and reinvestment of these payments. We are committed to complying with all applicable tax laws, rules and regulations. We pay all relevant taxes, royalties and other levies in amounts determined by the legislation of relevant national, regional or local governments.
Our covers our approach to tax strategy, management and control of our tax affairs. We actively seek to identify, manage and mitigate our tax risks. Identified tax risks are actively managed within an appropriate tax risk framework and control procedures. Significant risks are routinely reported to the Board and Audit Committee. Download our Group Tax Policy .
Payments to Governments Report
Our activities as a global natural resource company and the payments we make support governments to realise value from their natural resources. Governments can use the taxes and royalties that we pay to fund public services and infrastructure to improve their citizens’ quality of life. We believe countries that transparently and effectively allocate natural resource wealth for the benefit of their communities have the potential to attract more responsible and longer-term business investment.
Since 2015, we have published an annual report, in line with the reporting requirements of Chapter 10 of the . The report includes our contributions to the national, regional and local economies in which we operate, including taxes, royalties and other related information. In response to external stakeholders’ feedback, we expanded our disclosures on certain countries, our contributions and activities in the countries where our payments to government are $100 million or higher, our large custom and excise payments to government entities as well as details on material advances and loans payable. The report also describes our approach to tax transparency and includes our (EITI) disclosures.
Watch the video below to find out more about our commitments as well as the broader socio-economic contribution we make across the countries where we operate.
OECD/G20 – BEPS Country-by-Country Reporting
Since 2016, Glencore prepares a country-by-country report that aggregates tax information per country relating to the global allocation of income, taxes paid and other indicators.
We lodge this report with the Swiss Tax Authorities and, in line with the OECD requirements, it is made available to other tax authorities under the protocols for the automatic exchange of tax information in the jurisdictions where Glencore has a taxable presence. This enables these authorities to monitor the amount of tax that Glencore pays.
Extractive Industries Transparency Initiative (EITI)
The is a multi-stakeholder initiative between governments, companies and civil society, which promotes the open and accountable management of extractive resources. The EITI Standard 2019 sets out the global standard for the good governance in the extractive industry.
Glencore has been an active supporter of the EITI since 2011. We continue to promote its principles of transparency and accountability, and engage with the EITI at both local and international levels.
Where we operate in EITI member countries, we provide local EITI disclosures, participate in local multi-stakeholders groups and engage in policy consultation processes as appropriate.
We promote commodity-trading transparency by disclosing the payments we make to state-owned enterprises in EITI member countries for the purchases of crude oil, minerals and metals. We include these EITI commodity-trading disclosures in our annual report.
We are proud to support and promote the EITI Initiative, which shares our commitment to promote transparency and disclosure throughout the extractives industry. The EITI’s standard and framework builds and maintains trust and good governance and strengthens civil society’s capacity to hold their governments and the extractive sector to account. Our support of the EITI reflects our ambition to be active and valued societal participants by the communities that host us.
Gary Nagle, CEO
Reflecting our transparency commitment, we support and encourage the disclosure of our mining and exploration contracts with governments to the extent that these contracts are not subject to confidentially restrictions. During the course of 2020, we have started the process to disclose such contracts and we will make these available once identified.
The (GRI) is an independent sustainability reporting organisation. The GRI Sustainability Reporting Standards (GRI Standards) are the first and most widely adopted global standards for sustainability reporting, and enable tax reporting as part of this. Our annual sustainability report aligns with GRI documents, it is available .