Sustainability Report 2017 Building a Sustainable Business Today, with a Focus on Tomorrow

2017 Report Sustainability

Glencore plc Sustainability Report 2017 Building a sustainable business today, with a focus on tomorrow.

Welcome to our 2017 Sustainability Report

About Sustainability Sustainability Our Approach Sustainability Report 2017 Highlights 2017 to Sustainability online this report Our eighth annual Our 2017 sustainability This document sets Further information We publish a full sustainability sustainability report highlights booklet out our approach to on our sustainability report and a separate reviews our activities provides a succinct working sustainably. activities, plus more highlights document. and performance in overview of our It explains our full detailed data on our 2017. It details how activities and thinking on key sustainability There is also an accompanying we address our most achievements during sustainability, from the indicators, is available databook and a complementary material risks and the year. It is designed underlying principles on our website: document, Our Approach to opportunities; it is to be read either as a and values upon Sustainability, which provides www.glencore.com/ aimed at employees, standalone document which we base all our further details on how we sustainability investors, business or to complement the activities, to the details approach the topics material partners, customers, full sustainability report. of our approach and to our business. governments the issues that affect These are available online at and NGOs. our operations. www.glencore.com/ sustainability

Find us on @Glencore facebook.com/Glencore www.youtube.com/glencorevideos Governance Material issues Commodities Additional Information

2017 performance overview and strategic priorities

Lost time injury Total recordable injury Fatalities at frequency rate (LTIFR) frequency rate (TRIFR) New occupational managed operations (per million hours worked) (per million hours worked) disease cases 9 1.02 3.09 46

2015 10 2015 1.34 2015 4.35 2015 127

2016 16 2016 1.40 2016 4.05 2016 89

2017 9 2017 1.02 2017 3.09 2017 46

Strategic priority Strategic priority Strategic priority Strategic priority Zero fatalities 50% reduction of 50% reduction of Year-on-year Group LTIFR by the Group TRIFR by the reduction in number end of 2020 against end of 2020 against of new cases 2015 baseline 2014 baseline of occupational of 1.34 of 5.02 disease

Water withdrawn Total energy use Carbon emissions Community investment 3 (million m ) (petajoules) (million tonnes CO2) spend (US$ million) 924 202 33.5 90 2015 23.0 2015 2015 954 2015 236 14.3 94 2016 23.1 2016 971 2016 222 12.2 2016 84

2017 Scope 1 21.6 2017 2017 2017 924 202 11. 9 Scope 2 90

Strategic priority Strategic priority Strategic priority Strategic priority High water risk Ongoing focus on 5% (minimum) Continue to invest assets to implement improving operational carbon emission in community initiatives five-year water targets efficiencies to reduce intensity reduction to deliver sustainable for 2017-21 energy usage on 2016 levels socio-economic by 2020 benefits

Contents

01 Governance 14 Material issues 70 Commodities 01 2017 performance overview 16 Stakeholder engagement 72 Coal and strategic priorities 18 Catastrophic hazard management 80 Copper 02 At a glance 22 Workplace health and safety 88 Ferroalloys 04 Chairman’s introduction 28 Climate change 92 Nickel 06 Chief Executive Officer’s review 36 Water and effluents 100 Oil 08 Our strategic approach 42 Waste and air emissions 104 Zinc 10 Performance overview 46 Human rights and grievances 12 About this report mechanisms 112 Additional information 52 Community engagement and 112 Glo s s ar y social commitment compliance 116 Assurance statement 58 Product Stewardship 118 Important notice concerning 62 Our people this document including forward 66 Compliance looking statements

Glencore Sustainability Report 2017 01 At a glance

We are one of the world’s largest natural resource companies. Active at every stage of the commodity supply chain, we are uniquely diversified by geography, product and $170m activity, maximising the Annual investment value we can create for our 2018-24 to secure long-term production business and our diverse at our Integrated stakeholders. Nickel Operations

Adjusted EBITDA 2017 (%) $14.8bn (2016: $10.3bn)

Revenue by region 5 and segment 2017 (%) 4

Metal and minerals 7 Key $80.5bn Metal and minerals sites (2016: $66.3bn) Energy products sites (Number of assets where grouped) Energy products Agriculture sites Corporate offices $128. 3bn Marketing office/other (2016: $89.0bn)

Agriculture $12.6bn Business segments Active at every stage of the commodity chain (2016: $22.0bn) 1 Non-current assets by region (%) Exploration, acquisition and development By region $78.2bn Metals and (2016: $74.2bn) minerals 2 Extraction and production

3 Processing and refining Metals and minerals Americas Energy Energy Oceania Agriculture Africa Europe Asia 4 Blending and optimisation

Agriculture 5 Logistics and delivery

02 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

$400m Investment in the Zhairem zinc brownfield development in Kazakhstan to add c.160ktpa zinc in concentrate from 2020

We are investing to grow our cobalt production 5 4 133% over the next three years 7

Highly diversified Global scale Sustainable focus What makes us different?

• High-quality, low-cost +90 50 27% assets in desirable commodities countries reduction in commodities Lost Time Injury Frequency Rate in 2017 • Entrepreneurial culture: 3 150 compared to 2016 employees empowered business segments sites to make decisions • Long-term relationships 24% with broad base of Market insight 90 reduction in suppliers and customers offices Total Recordable Injury Frequency Rate in 2017 • Marketing business c.4,000 compared to 2016 less correlated to employees in marketing 146,000 commodity prices people • Maximum flexibility 40+ and economies of scale years’ experience

Glencore Sustainability Report 2017 03 Chairman’s introduction

Our SafeWork programme is delivering sustainable change at many of our operations, where the effectiveness of our operational controls is improving.

I was very pleased to participate once again in our annual HSEC summit, hosted by our HSEC Committee Chair, Peter Coates. The 2017 summit brought together over 70 of our senior business leaders and focused on sharing learnings on safety and management of catastrophic hazards facing our operations. We will continue to focus our attention on achieving all of our safety ambitions. We are working with multi-disciplinary experts to review our fatality investigation process and to consider more deeply the impact of organisational factors and the possibilities of technological improvements.

Climate change Following our shareholders’ approval of the Aiming for A shareholder resolution at our 2016 AGM, we are continuing to meet its requirements for a comprehensive I am pleased to introduce our I am pleased to report that the response to the challenges posed 2017 Sustainability Report, which Group recorded year-on-year by climate change. details the actions we took during reductions in its lost time injury the year to continue to progress and total recordable injury frequency During the year, we published our the integration of sustainability rates. Our SafeWork programme second publication on the Climate throughout our business. is delivering sustainable change change considerations facing our at many of our operations, where business, which details our The report provides a focus on our the effectiveness of our operational assessment of risks and performance and progress in the controls is improving. We are opportunities related to climate areas that we have identified as continuing to work with our ‘focus change for our operations. being material to Glencore. assets’ to fully embed a culture We have established an initial of safety at these sites. Safety group-wide carbon emission intensity The Board is saddened to report While our employee safety reduction target of at least 5% on that during the year nine people performance is improving, 2016 levels by 2020. This target will lost their lives while working for our contractors are disproportionally help to drive additional emission Glencore. Glencore’s senior involved in safety incidents. reduction efforts across our business. management team believe that The challenge of managing a our ambition of zero fatalities in contractor workforce is universal the workplace is achievable. We and we are reviewing and are continuing to support and reinforcing our approach to encourage our operational teams contractor management. in attaining this ambition.

04 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

I am pleased to report that the Local community engagement and Governance Transition Pathways Initiative social commitment compliance During the year, the Board was awarded Glencore Level 4 (the We are committed to ongoing pleased to welcome two new highest) score in its newly established dialogue with all of our stakeholders members, Gill Marcus the former assessment of how companies are to better understand and manage head of the Reserve Bank of South preparing for the transition to a our impacts. Africa and Martin Gilbert, one of low-carbon economy. Europe’s leading asset management Through engaging transparently and entrepreneurs and current co-CEO In our 2017 Annual Report, we have constructively with the communities of Standard Life Aberdeen plc. taken the first steps to meet the living around our operations, we are recommendations made by the Task working towards building economic We were sad to say farewell to Force on Climate-related Financial resilience and diversity as well as Bill Macaulay and Peter Grauer, who Disclosure for better climate-related ensuring a lasting contribution from have stepped down from the Board. financial disclosures. I welcome our our presence. They have been great contributors stakeholders’ thoughts on the to Board debate and we thank We have continued the rollout of our approach that we are taking. them for their valuable service. Community Leadership Programme (CLP), a toolkit of materials that In 2017, Glencore published its Water supports the building and enhancing first Modern Slavery Statement. Over the last 12 months, we of the social performance capabilities This statement assesses the risks of continued to implement our strategic of our operational staff and teams. slavery, servitude, forced and child water management framework We are supporting the rollout with labour and human trafficking within across the Group. We also finalised regional ‘train-the-trainer’ workshops, our operations and supply chains. It our water management guideline, which also address specific local identifies the steps we are taking to which is in line with the International requirements from the toolkit. It is mitigate and eliminate these risks. Council on Mining and Metal’s helping us to better identify areas position statement on water and its that we need to review further. Going forward water management framework. We will continue our drive to The CLP toolkit supports our At an asset-level, our operations integrate sustainability into every commitment to strong community are continuing to build their aspect of our business. relationships. understanding of their water balances, implement the water Through our participation in a management guideline and multi-stakeholder initiative, led identify actions to reduce their by the Swiss government, we are use of this valuable resource strengthening our management in line with our overall continuous of human rights. The initiative is improvement approach. developing better understanding Tony Hayward on trading commodities companies’ Chairman implementation of the United Nations Guiding Principles.

Glencore Sustainability Report 2017 05 Chief Executive Officer’s review

Many of the key elements that are essential for the global transition to a low-carbon economy are increasingly utilising the commodities produced by our industrial assets.

Our approach to safety is driving consistent improvements at the majority of our assets, with many operations recording industry-leading performance. Our greatest efforts continue to be at our ‘focus assets’ and we are committed to a consistent safety performance across the Group.

Transition to a low-carbon economy Around the world, nations are increasingly coordinating their efforts in the movement towards a low- carbon global economy. We are continuing to play an informed and constructive role in the public policy development process and to work with policy makers on issues related to clean energy, carbon reporting and carbon. As a major producer and consumer of fossil fuels, we are aware of our responsibility to understand and manage our greenhouse gas emissions. We are supporting a Business overview • Purchasing a majority of voting number of projects to help us reduce Our 2017 performance was the class shares in Volcan, a Peruvian energy and fuel use at our operations. strongest on record. Our balance zinc producer We believe that fossil fuels are going sheet has never been more robust • Buying the remaining 31% of the to continue to play an important role and our investment case, underpinned Mutanda copper asset in the DRC in meeting the global energy needs, by our leading marketing and and it is important that this is done industrial businesses, has never • The disposal of 51% of our non-US as cleanly as possible; to help achieve been more solid. petroleum products storage and this, we are supporting the logistics business Throughout 2017, strong economic development of low-emission coal performances in both major • Selling our African zinc assets technology projects, including our developing and developed markets to Trevali continued involvement in the Carbon supported the continuation of the Transport and Storage Corporation positive momentum seen in the Safety Pty Ltd (CTSCo) project in Australia. commodity cycle that began towards It is with great regret that we Details of these efforts are included the end of 2016. experienced nine fatalities during the in this report. year. We are determined to eliminate During the year, we undertook a Many of the key elements that are fatalities from our business. Through number of acquisitions and disposals essential for the global transition to our continued implementation of a that contributed towards our a low-carbon economy are culture of safety at all of our assets strategic objective of creating long- increasingly utilising the copper, and effective operational controls, term value for our shareholders. cobalt and nickel that come from we are working towards delivering These included: our operations. This is supporting this ambition. future demand fundamentals for our diverse portfolio of commodities.

06 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Making a positive Supply chain management Going forward contribution to society Our products are vital to today’s Looking ahead, we believe that society and can be found in devices continued global economic growth and delivering long-term used daily all over the world. We are and the emerging requirements on value to our stakeholders working with our suppliers and the low-carbon economy will customers to encourage responsible continue to have a positive impact on commodity sourcing. We recognise commodity fundamentals. Glencore’s that there is the potential for risks diverse portfolio should position the relating to human rights, conflict Company well to take advantage of Our approach to safety and corruption that exist within these macro opportunities. is driving consistent our supply chain. improvements at the We recognise that it is only through majority of our assets In addition to our existing Code of working in partnership with all of our Conduct and Group Human Rights stakeholders that we can deliver Policy, which detail the expectations sustainable value for all stakeholders. we place on assets with regards to Through daily interactions with our human rights, we are further employees, governments, investors, developing our due diligence process community members and other to specifically address human rights interested parties, we are better able We are committed to risks within our supply chain. We plan to deliver sustainable socio-economic strong community to have implemented a group-wide benefits to our operating countries. relationships and the supply chain due diligence policy The senior management team thank effective delivery of our and management system by the all of those working at Glencore for operational social end of the year. strategy their continued efforts to the success of our company. Payments to governments We welcome fiscal transparency, as it encourages the responsible management of revenues from We contribute to local extractive activities. In addition economies through our to the payments we make to the Ivan Glasenberg payments to suppliers, governments of the countries in Chief executive officer wages and employee which we operate, we contribute benefits and our voluntary to local economies through our support of socio-economic payments to suppliers, wages and initiatives employee benefits as well as our voluntary support of socio-economic initiatives such as health and education projects and infrastructure development. We are further developing our due During 2017, we published our diligence process to second report on our payments to specifically address governments. This report includes the human rights risks within information required by the EU our supply chain Accounting Directive and details our payments to governments by country, project and recipient.

Glencore Sustainability Report 2017 07 Our strategic approach

Glencore’s main strategic objective is to grow total Sustainability framework shareholder returns in a sustainable manner while Corporate strategy maintaining a strong investment grade Integration of Maintain Focus on cost rating and acting as a sustainability a robust and control and responsible operator. throughout our flexible balance operational business sheet efficiencies

We recognise our ongoing Values responsibility to not only deliver Safety – Entrepreneurialism – financial performance but also Simplicity – Responsibility – Openness make a positive contribution to Code of Conduct society and create lasting benefits for stakeholders in a manner that is responsible, transparent and respectful to the rights of all. Group sustainability strategy Board HSEC Committee Oversight and ultimate Health To achieve our strategic objective, responsibility. Become a leader in the protection we are focusing on three strategic and improvement of our people’s Our Board receives regular imperatives: to integrate sustainability and communities’ wellbeing updates and has detailed fully throughout our business; to oversight of how our business Safety maintain a robust and flexible is performing across all Become a leader in workplace balance sheet; and to focus on cost our internally defined safety, eliminating fatalities sustainability-related controls and operational efficiencies and injuries throughout our entire business. material risk areas Environment Our approach to integrating Minimise any negative Sustainability principles, sustainability throughout our environmental impact from guidance and policies business has clearly defined our operations and apply the Integrated throughout the precautionary principle in imperatives, objectives, priority areas business and give guidance decision-making and targets. It supports meeting on the standards we expect. legislative requirements, managing Community and human rights the catastrophic hazards associated Foster sustainable growth and with our business, and maintaining respect human rights wherever our societal licence to operate. we operate

Group HSEC policies Material topics • Internal and external materiality assessment process to identify Operational policies material topics Developed for the specific needs of individual assets • Material topics are the focus of our sustainability strategy review and reporting • Operational activities Management, data reporting, focus on addressing risk management and assurance and progressing the to monitor compliance material topics

08 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Board oversight In addition, it reviews operational Our Board HSEC committee has performance and internal overall responsibility for the strategic and external reports as well as direction of our sustainability activities independent audits and reports of and monitors the development and performance concerning HSEC implementation of strategic HSEC matters; and action plans developed Our Board has overall programmes and policies. by management in response to identified material topics. responsibility for the strategic direction of our sustainability activities

During the year, our Board’s HSEC • considered reports from the • considered engagement with committee discussed a broad range Group’s assurance programme communities and NGOs on of sustainability matters: for sustainability matters with an sustainability matters emphasis on catastrophic hazards • reviewed and approved the Group’s • reviewed and oversaw the Group’s and approved the assurance plan HSEC strategy sustainability report for 2018 • continued its monitoring of achieving • participated in an investor • provided ongoing support for ongoing reductions in fatalities, roadshow to inform and receive management’s engagement on especially at the higher risk “focus feedback on the Company’s climate change and emissions assets”. For this purpose it received sustainable development strategy matters. This included considering a report on, reviewed and made and approach to HSEC management the work of the Group’s climate recommendations in respect of, change working group, chaired • considered a variety of other each fatality by Dr Hayward HSEC issues such as resettlement • reviewed the Group’s progress programmes, incident reporting • considered reports on key on catastrophic hazard management, and health strategy performance indicators in relation to as the most important non-financial material issues, including water and risk management issue for the Group energy use and complaints from host • continued to analyse the communities, process safety implementation of the SafeWork management, water and effluents, programme focusing on the waste and spills, human rights and identification of fatal hazards grievance mechanisms, community and an appropriate safety culture engagement and product stewardship to social commitments

Glencore Sustainability Report 2017 09 Performance overview

2015–20 Material topic Strategic priorities Change Progress in 2017

No major or Zero major or catastrophic environmental Read more catastrophic incidents during 2017 Page 18 environmental Catastrophic incidents hazard management

No fatalities Nine fatalities occurred at Glencore assets Read more Page 22 50% reduction Our LTIFR improved by 24% compared of Group LTIFR by to our 2015 baseline. In 2017, our LTIFR the end of 2020, was 1.02 per million hours worked (2016: Safety against 2015 1.40 including Glencore Agriculture) baseline of 1.341

50% reduction Our TRIFR improved by 38% compared in TRIFR by 2020 to our 2014 baseline. Our 2017 TRIFR was using 2014 3.09 per million hours worked (2016: 4.05 baseline of 5.021 including Glencore Agriculture)

Year-on-year 46 new cases of occupational diseases Read more reduction in recorded, a 48% decrease on 2016 Page 22 the number (2016: 89 cases recorded, including of new cases Glencore Agriculture) Health of occupational diseases

5% (minimum) Our 2017 carbon emission intensity Read more carbon emission increased marginally to 4.78tGHG/tCu Page 28 intensity reduction from 4.75tGHG/tCu in 2016. We are Climate on 2016 baseline implementing initiatives to deliver by 2020 our 2020 carbon target change

1 Baseline figures include Glencore Agriculture

10 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Achieved

On track

Not achieved

2015–20 Material topic Strategic priorities Change Progress in 2017

High water risk The identified high risk sites are Read more assets to currently carrying out operational Page 36 implement changes which are intended to Water and five-year water result in overall improvements targets for 2017–21 effluents

Continue internal Our internal and external audit Read more and external audit programme for high-risk tailings Page 42 programme for storage facilities was ongoing Waste and high-risk tailings throughout the year storage facilities emissions

No serious human Zero serious human rights incidents Read more rights incidents Page 46

Human rights and grievance mechanisms

Implement our Identified material assets to report their Read more social value socio-economic contribution data Page 52 Community creation strategy engagement and Distribute the The toolkit was distributed to all assets. social commitment Community Training on the toolkit took place in compliance Leadership Australia and South Africa. Further Programme Toolkit training sessions will be held in to all assets Canada and South America in 2018

Ongoing During the year, we participated Read more engagement in discussions with the OECD on Page 58 with organisations minerals from high-risk areas and Product and interested with the LBMA on silver stakeholders stewardship on responsible sourcing

Glencore Sustainability Report 2017 11 About this report

This is our eighth annual sustainability report. The report focuses on the performance of our material topics.

Further information about our general Closed sites (or sites in the care and Glencore seeks to report on every approach and positions on various maintenance phase of their lifecycles) incident in the time period when sustainability issues, are available in report on a limited indicator set, it occurs. Occasionally, our incident Our Approach to Sustainability at reflecting their reduced activities reporting may take place at a later www.glencore.com/sustainability/ and workforce. date, as a result of an improved reports-and-presentations. understanding of the incident Data from divestments is included or revisions to its classification. This sustainability report complies until the month before disposal. Where this results in a restatement with the core level of the Global Workforce numbers are the of previously reported data, the Reporting Initiative (GRI) Sustainability exception to this rule, as they are restatement and its rationale Reporting Standards, including based on the end of year status. will be publicly disclosed. the metals and mining sector As a result, this report does not supplement. Our online GRI include workforce data from assets Where data for previous reporting Index provides further details: that were disposed of in 2017 earlier years has been restated, Deloitte www.glencore.com/sustainability/ than 31 December 2017. LLP has not undertaken additional reports-and-presentations. The work to review accuracy and In 2016, Glencore divested a 50% report’s GRI compliance has been completeness. No assurance interest in Glencore Agriculture. independently assured by Deloitte is provided over restated data. LLP (Assurance statement in the Glencore Agriculture represents Additional information section). Glencore’s entire agricultural products We may change our approach operating segment. From this time, to how we report our data in future As signatories to the principles Glencore no longer unilaterally directs sustainability reports without prior of the United Nations Global the key strategic, operating and announcement; we may also change Compact (UNGC), this report serves capital decisions of Glencore the reporting of specific data and as our advanced level UNGC Agriculture and was deemed to have its interpretation. Communication on Progress, outlining disposed of its controlling interest. our support for its broader As such, 2017 data in this report does Related publications development objectives and our work not include Glencore Agriculture. 2016 During 2017, we have published on implementing the principles. It also and 2015 is shown including and the following standalone reports fulfils our reporting requirements as excluding Glencore Agriculture to that are connected to our members of the International Council enable a full analysis of performance. sustainability activities: for Mining and Metals (ICMM). • Glencore Modern Slavery Data and information Statement 2017 Boundaries and scope The data in this report is taken from This report includes information Glencore’s reporting systems. The • Climate Change Considerations and data from our industrial and metrics in this report reflect those for our Business 2017 marketing activities, including only used in the commodity markets • Payments to Governments assets where we have operational and sectors in which we operate Report 2017 control, and excluding investment and are primarily based on GRI and holding companies. We exclude indicators, including indicators • GRI Databook 2017 environmental data from our from the GRI metals and mining • Our Approach to Sustainability. warehouses, silos and ports, with the sector supplement. exception of any environmental spills There is a list of Glencore’s publicly In some instances, figures from if they occur, as their contribution available policy documents at previous years have been restated to these indicators is immaterial. www.glencore.com/who-we-are/ to reflect improvements in our data Our marketing offices do not report governance. on environmental data. collection, analysis and validation systems. All figures stated in this The report contains data for the There is also a list of our current report represent the latest available full year 2017. associations and memberships at data unless remarked upon in the www.glencore.com/sustainability/ Acquisitions are only included if they text. Some of the totals shown may reports-and-presentations. were integrated before 1 July 2017. In reflect the rounding up or down of November 2017, Glencore acquired an sub-totals. interest in Volcan. Due to the date of the acquisition, Volcan’s performance is not included in 2017 data. 12 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Glencore Sustainability Report 2017 13 Material issues

We conduct a materiality assessment every other year to establish the material topics for our sustainability strategy review and sustainability reporting.

Assessments are undertaken at both Group and commodity department Catastrophic hazard Workplace health levels; they take the views of internal and external stakeholders management and safety into account. At each of its meetings, the Board HSEC committee receives a report on our progress on the management Catastrophic events that take The health and safety of our of the identified material issues. place in the natural resource people is our top priority. sector can have disastrous Our ambition is for a workplace physical, environmental, social without fatalities, injuries or and financial impacts. occupational diseases.

Read more Read more Page 46 Page 52

14 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Climate change Water and effluents Waste and air emissions

Climate change is a material issue Water is essential to our industrial Responsible resource production that affects our business and creates assets. It is a valuable resource and involves minimising the impact both challenges and opportunities. we aim to minimise any potential of our waste and air emissions water-related impacts. on the environment and local communities.

Read more Read more Read more Page 28 Page 36 Page 42

Product stewardship Our people Compliance

We aim to deliver competitively Our success relies on the ability to We seek to maintain a culture of priced commodities in a attract and retain the best talent ethical behaviour and regulatory sustainable manner. at entry level. compliance throughout all of our business activities.

Read more Read more Read more Page 58 Page 62 Page 66

Glencore Sustainability Report 2017 15 Stakeholder engagement

We are committed to creating value for all our stakeholders in a manner that is responsible, transparent and respectful to the rights of all.

Catastrophic hazard The geographies and markets in management which we operate are extremely complex and we conduct dialogues on local, national, regional and international levels. Our activities are heavily regulated. Evolving local and national Employees government legislation and policy, Government as well as international regulations Communities can significantly affect our operations. We engage with stakeholders We develop constructive relationships who express concerns with all levels of government in our regarding our catastrophic host countries, as well as fostering hazards. We explain the steps we take to review, control and public dialogue and contributing manage these hazards. to legislation development in Stakeholder interest has sectors that affect our business. continued to be focused on We devote significant resources the management of our to ensuring compliance with tailings storage facilities. all permit requirements. See page 18 We are signatories to the United Workplace Nations Global Compact (UNGC), health and safety aligning our strategies and operations with its principles. The UNGC encourages participants to support the Sustainable Climate change Development Goals (SDGs). We welcome the SDGs and believe that we can play a role in supporting our Employees host governments to meet the SDGs. Labour unions Host governments In addition, we uphold the Communities International Labour Organization Peer companies Declaration on Fundamental We recognise our workforce is Investors Principles and Rights at Work integral for our delivery of a safe and the UN Universal Declaration and healthy workplace. We Government of Human Rights. work with our employee and NGOs union representatives to meet We engage extensively with We are members of the Plenary this ambition on initiatives such interested stakeholders on of the Voluntary Principles on as health and safety committees issues relating to energy, Security and Human Rights and programmes to empower carbon and climate change. and the International Council our workers to stop work in an These include an analysis of on Mining and Metals. unsafe situation. We engage our portfolio against various with our local communities on policy scenarios, as well as We are an active participant public health matters. We an assessment of the risks in the Extractive Industries collaborate with our peers and opportunities presented Transparency Initiative. to progress industry health by climate change across and safety initiatives. our product and operational See page 22 portfolio. We also participate in public policy discussions with a range of stakeholders. See page 28 Stakeholders to whom it matters most

16 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Water Waste and effluents and emissions

Human rights and grievance mechanisms

Employees Communities Communities NGOs NGOs Government Government We work with our local, In our operating regions, we regional and national Employees stakeholders to address are conscious of the increasing Communities water-related concerns of concerns on the waste our NGOs local stakeholders. Our assets assets produce. Through consult with local water users operational improvements Government We recognise that our to understand their priorities and mitigation measures, we operations have the potential and to collaborate on aim to minimise our impact to affect the human rights solutions. We engage with on the environment. of our workforce and regional and national See page 42 surrounding communities. governments on their work We offer fair and transparent to identify material water access to remedy for any stewardship risks. See page 36 stakeholders affected by our operations. Our grievance mechanisms have recorded concerns relating to health and safety, labour conditions, the activities of our security forces and the rights of local communities. See page 46 Our people

Product stewardship

Community engagement and social Employees commitment Unions compliance Government Employees We recognise that our success relies on our ability Customers to attract and retain the best Governments talent at every level. We Our products are vital to today’s society. Communities operate in over 50 countries and respect the diversity of We are working with our NGOs cultures that we work in. customers, national and Government We work with our employees, inter-national authorities and We interact with many diverse unions and the governments other involved stakeholders communities around the of our operating countries on developing regulations world. We actively seek to uphold the rights of our that affect our commodities. broad-based, ongoing support people to a safe workplace, We study the properties of from our local communities as freedom of association, our products to develop part of our licence to operate. collective representation, guidance on their safe use We engage with communities just compensation, job and supply this information through regular dialogue and security and development to our customers and work closely with them to opportunities. employees to help to maximise the value our See page 62 maintain safe workplaces. business creates for them. See page 58 See page 52

Glencore Sustainability Report 2017 17 Catastrophic hazard management

Why this is material: Our approach:

Catastrophic events that take place in the natural We recognise the exceptional nature of catastrophic resource sector can have disastrous impacts on events; our catastrophic and fatal hazard management workers, communities, the environment and corporate policy details our approach to their management, based reputation, as well as having a substantial financial cost. on critical control management with rigorous monitoring and reporting. We require catastrophic and fatal hazards controls to be in place and regularly reviewed. Our ambition: Our approach reflects international leading practice and ICMM guidance. We are committed to protecting the safety and wellbeing of our people and the communities and environment around us.

Further information on our management of catastrophic hazards is available in Our Approach to Sustainability. Key highlights

Major or catastrophic environmental incidents during 2017 0

Sustainable development goals

18 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Improving transportation safety in the DRC Our Mutanda copper operation in During the rainy season, roads can Through the use of GPS tracking, the DRC has identified employee become flooded and deteriorate. Mutanda’s transport team is able to transportation as a catastrophic hazard. monitor the bus drivers’ driving The Mutanda transport team behaviour, dispatch buses efficiently Approximately 5,200 employees are undertakes preventative maintenance and coordinate buses to ensure that transported daily on 120 buses that are on its own buses and monitors the employees’ transportation is conducted operated by four contractor companies. maintenance schedule for contractor in a safe manner. buses. 30 days ahead of expiration The buses pass through small villages, dates, Mutanda notifies drivers of the and Mutanda has identified a risk of need to renew their licences and the buses interacting with pedestrians. contracts and undertake medicals.

Glencore Sustainability Report 2017 19 Catastrophic hazard management continued

There are protocols for each of the Highlights: Performance fatal hazards we have identified at • Zero major or catastrophic our assets. The protocols provide environmental incidents Number of major minimum requirements to manage or catastrophic hazards and we require each of our • Looking at technology as a environmental incidents assets to conduct self-assessments solution to support behavioural against the appropriate protocols for change 0 their sites. • Developing a site-specific We are now in the early stages of 2015 0 knowledge base of critical learning from the knowledge controls 2016 0 gathered during our implementation and reporting process. During 2017, • Building our knowledge of 2017 0 process safety management each asset began to develop a application opportunities site-specific knowledge base as they build and consolidate their During 2017, we achieved our understanding of the critical controls target of zero major or catastrophic appropriate for the catastrophic environmental incidents. hazards they face. Each department We classify the severity of all reports quarterly to the Board HSEC sustainability-related incidents committee on their implementation against a five-point scale from progress and critical control negligible, to minor, moderate, verification activities. major and catastrophic. As our understanding improves, We assess catastrophic events as it has become clear that many critical being those that have the potential to controls are dependent on human have severe consequences that could behaviour. We are investigating the devastate the Glencore Group, cause effectiveness of various engineering widespread loss of life, significant solutions and technology applications environmental consequences and/or to assess how best to integrate them result in major reputational or into our operational processes and financial damage. reduce dependency on human behaviour. Our newly appointed In 2015, we developed Catastrophic Group Manager HSEC Technology Hazard and Critical Control and Innovation will take this forward. Guidelines. These guidelines detail our approach to the management, In addition to sharing knowledge monitoring and reporting on on catastrophic hazard management catastrophic hazards. Over the past internally, we also participate in a two years, we have implemented number of industry organisations these guidelines across the Group. where we contribute to discussions on the subject with our peers. During 2017, we continued to enhance the protocols on a risk- based priority. We also drafted protocols for structure failure, shafts and winders and security failure, which will be finalised and rolled out in 2018.

20 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

We were founding members Process safety management (PSM) of the Earth Moving Equipment PSM is an operational framework for Next steps Safety Round Table (EMESRT). managing the integrity of the systems • The development of catastrophic This organisation was established in and processes involved in handling hazard protocols for those not 2006 to present a common industry hazardous substances. yet developed approach to reducing health and Our internal cross-commodity PSM safety risks from operating and • Roll out the collision avoidance working group is continuing to work maintaining mining equipment technology at other appropriate on how best to integrate PSM into through original equipment operations the mining process and operations. manufacturers (OEM), contractor We are building our knowledge of • Working with industry peers and end-user engagement. PSM application opportunities across and EMERST to develop our We are now leveraging this all commodity departments. knowledge on catastrophic engagement further through The study will be peer reviewed by hazard management involving ICMM to bring together a external experts and its findings will • Further integration of PSM practices larger number of mining companies. contribute to a Group PSM guideline into applicable operations we plan to roll out during 2018.

Collision avoidance technology

In recent years, two fatalities at our During December 2017, we trialled the Pedestrians instinctively avoid vehicle ferroalloys operations involved technology at one of our mines. In one interactions, which has resulted in collisions between people and vehicles. week, the number of events involving decreased collision-related risk profiles This has led our ferroalloys business to people entering the danger zone was and an improved workplace safety develop collision avoidance technology 1,000, a 97% reduction on a similar performance. We are now looking at in partnership with equipment period in January 2017. the application of this technology at manufacturers. This critical control other sites. The technological change that enables automatically stops a vehicle if another vehicles to stop automatically has also This technology is a first for diesel- vehicle or person enters its ‘danger significantly contributed to behaviour powered mobile equipment in the zone’ (a five-metre perimeter). change at all levels. mining industry.

Glencore Sustainability Report 2017 21 Workplace health and safety

Why this is material: Our approach:

The success of our business is dependent on a safe The health and safety of our people is our top priority and healthy workforce. Our diversity, in terms of and we believe that all fatalities, injuries and occupational geographical locations, working conditions, diseases are preventable. Through strong safety organisational cultures and workforces, means that leadership, we can create and maintain safe workplaces we need to focus on resolving local challenges and for all our people. transforming behaviour at all our sites and at all levels Risk management is at the heart of our approach. We of our organisation in order to achieve strong safety let our people know that we expect every individual, and health performances at all our assets. both employees and contractors, to take responsibility for their own safety and for that of their colleagues and Our ambition: the communities in which they work. We have established fatal hazard protocols that address Our ambition is to become a health and safety leader the most common causes of fatalities and serious injuries in our industry and to create a workplace without within the industry. Our life-saving behaviours encourage fatalities, injuries or occupational diseases through our workers to focus on those hazards with the most establishing a positive safety culture in which all of our potential to cause serious injuries or fatalities. We are employees and contractors are empowered to stop empowering our first-line supervisors to take responsibility work if they consider a workplace or situation unsafe. for their work areas, manage technical safety aspects and motivate behaviours. All of our workforce receive supporting tools that range from universal risk awareness training, virtual reality training materials on each fatal hazard and other training aids.

Further information on our management of workplace health and safety is available in Our Approach to Sustainability.

Key highlights

Lost time injury Total recordable injury frequency rate frequency rate (TRIFR) (LTIFR) 2017 (per million 2017 (per million hours High potential New occupational hours worked) worked) risk incidents (HPRIs) 2017 disease cases 2017 1.02 3.09 368 46

Sustainable development goals

22 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Mopani pioneering virtual reality training In Zambia, our Mopani copper operation The virtual reality technology develops In addition to a safer workplace, is using virtual reality technology to systematic detonation techniques and improving blasting efficiency also results improve the blasting skills of its allows unlimited learning attempts as in reduced operating costs through the employees. well as the practising of numerous minimisation of secondary damage from geological and blasting scenarios with incorrect blasting. instant feedback.

Glencore Sustainability Report 2017 23 Workplace health and safety continued

• During 2017, our African direct employees. The challenge of Performance copper operations recorded managing contractors is universal and one fatality compared to we are continuing to reinforce the work Highlights 12 fatalities (from 4 incidents) that we are doing in this area. in 2016; the lowest fatality rate • 27% year-on-year decrease in Our findings from our investigations in these ‘focus assets’ history LTIFR have also shown that ineffective • Our oil and warehousing businesses first-level supervision is a major • 24% year-on-year decrease in have now been five years fatality free contributor to incidents where our TRIFR • Both our coal and nickel departments workforce has neither practised nor • Analysing HPRIs and putting in were fatality-free and achieved TRIFR chosen life-saving behaviours. This place measures to prevent of 2.74 and 4,57 respectively (2016: has led to the establishment of an similar incidents, as well as coal 3.79, nickel 6.23) internal, cross-commodity working finding solutions to situations • In the DRC, our copper operations group to investigate how we can that contribute to the highest had their second year fatality-free better support our supervisors to cause of HPRIs. and Katanga’s Whole Ore Leach become more effective. The working group is looking at our existing tools • 93% of assets recorded zero infrastructure improvement project and resources and identifying occupational diseases was constructed with an impressive LTIFR of 0.11 per million hours worked revisions to improve our supervisor development programmes. Following two multiple fatality incidents at our African copper assets Supporting training and Safety in 2016, our copper business learnings dissemination It is with great sadness that we extensively reviewed its approach to Our HSEC Committee Chairperson, have to report that during the year health and safety. The copper assets Peter Coates, hosted our annual nine people lost their lives at renewed its focus on tracking of the HSEC Summit that brings together Glencore’s managed assets from number of leadership safety more than 70 of Glencore’s senior nine incidents. 2017 was the first interactions with line employees leaders. The 2017 year summit year that Glencore did not record regarding potentially fatal hazards in focused on sharing learnings on a multiple fatal incident. their work areas. During 2017, there safety and management of Health and safety remains the was a continuous increase in the catastrophic hazards facing our top priority across our Group number of these interactions. In operations. Presentations from the and we are continuing to work at addition, colleagues from our more summit are being used for sharing creating a strong safety culture at mature Australian copper operations its learnings across Glencore and all of our assets. spent time at the African assets to to support broader outreach. support their development of fatal During 2017, we saw a 27% decrease The summit included a presentation hazard controls. Our other commodity in our lost time injury frequency rate by an external psychologist, who had businesses also contributed to the (LTIFR) to 1.02 (2016: 1.40) and a 24% worked with our ferroalloys business development of management plans decrease in total recordable injury during 2016 to apply behavioural for our African copper assets. frequency rate (TRIFR) to 3.09 science to improve behavioural (2016: 4.05). These steps have improved safety consistency, which in turn supports the performance, with the copper positive reinforcement of key SafeWork We remain on track to meet our business recording one fatality in 2017 processes. This included a visible 2020 targets for both indicators (2016: 13) and year-on-year LTIFR leadership approach, regular safety (50% reduction against 2015 reduction to 2.35 (2016: 2.89). campaigns and a clear and persistent and 2014 baselines for LTIFR effort to ensure employees understand and TRIFR respectively). While our safety performance is the consequences of unsafe acts. improving group-wide, our analysis We believe that our SafeWork has shown that contractors were programme is bringing about Our ferroalloys business has run disproportionately involved in sustainable change to safety positive reinforcement coaching fatalities during 2017. Since 2012, performance across the Group. programmes to strengthen the contractor fatalities have represented safety culture within its operations. Since SafeWork’s introduction in 2013 around 30% of our annual fatalities; The insights from these programmes we have achieved: this increased to 67% in 2017, while has been shared with other • A 65% reduction in fatalities contractors contributed to 49% of commodity businesses and led them compared to 2013 baseline of total workforce hours worked. to look to implement the approach 26 fatalities We recognise that our contractors need and to further encourage our • LTIFR has improved by 46% to be fully compliant with SafeWork workforce to practice and choose and TRIFR by 62% against our and that we should manage and train lifesaving behaviours. performance in 2013 our contractors in equal manner to our

24 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Industry collaboration Implementing a safety During the year, Glencore participated Fatalities at managed leadership programme in a number of industry events operations focusing on advancing health and safety within mining. These included: 9 • A collaboration hosted by the 2015 10 International Labor Organization 7 (ILO) that brought together 3 representatives from mining 2016 16 companies, governments of 11 commodity producing countries 5 and unions to discuss health and 2017 9 safety in open cast mines. The 3 symposium resulted in revisions to 6 the ILO’s guidance on the topic. Fatalities – total • Bi-annual ICMM health and safety Fatalities – employees forums as well as participation in Fatalities – contractors the ICMM risk management During 2017, our coal business working group. These forums and achieved its objective of zero working groups are continuing to fatalities. Its LTIFR and TRIFR improved by 20% and 28% discuss collaboration efforts with a respectively on 2016; exceeding its focus on fatality reduction and targeted reductions for the year. critical control management. To support its target of year-on-year Lost time injury frequency rate (LTIFR) performance improvements, the coal (per million hours worked) business undertakes regular reviews to identify areas where it can further 1.13 advance our performance. Excluding Agriculture 1.50 2015 0.73 During 2016, findings showed an inconsistency among frontline leaders 1.34 Including Agriculture 1.80 in hazard recognition and risk 0.80 assessments. In 2017, to address this, 1.22 the coal business developed and Excluding Agriculture 1.38 implemented Frontline Safety 2016 1.03

Leadership Plans. The Plans covers: 1.40 Including Agriculture 1.66 1. Leadership-led improvement to risk 1.05 assessments and hazard 2017 1.02 identification Excluding Agriculture 1.26 0.77 2. Compliance with SafeWork ● ● ● ● ● ● 3. Reporting and recording all Total workforce Employees Contractors incidents involving substandard risk Total recordable injury frequency rate (TRIFR) and hazard analysis and non- (per million hours worked) compliances

4. Proactive steps to improve 4.03 Excluding Agriculture 4.37

compliance with SafeWork 2015 3.67 procedures and standards 4.35 Including Agriculture 4.87 3.74

3.72 Excluding Agriculture 4.02 2016 3.34

4.05 Including Agriculture 4.56 3.36

2017 3.09 Excluding Agriculture 3.43 2.73

● ● Total workforce ● ● Employees ● ● Contractors

Glencore Sustainability Report 2017 25 Workplace health and safety continued

Health In Queensland, Australia, Glencore, Occupational diseases during 2017 We have continued to reduce the along with other local operators were ● Mental health 7% number of new cases of occupational criticised for failing to meet our ● Hearing 48% disease from 89 cases in 2016 to personal dust monitoring obligations. ● Respiratory 9% ● Skin 2% 46 cases in 2017, a decrease of 48%, Following the raising of these ● Musculoskeletal 30% 93% of our assets recorded no new concerns, improvements have been ● Other 4% occupational diseases during the year. made to operational performance in relation to dust management. During 2017, we continued to undertake health risk assessments at Following the group-wide rollout all of our assets. We recognise that of our revised health management one of our greatest challenges is strategy and its associated tools and managing our workforce’s exposure resources, we continue to update to hazards in the workplace. our health intranet site. The tools and resources hosted by the site High potential risk incidents In 2017, we recorded three support the implementation of the Our assets report and share high confirmed cases of Mine Lung strategy and our commitment to potential risk incidents (HPRIs) every Dust Disease. In Australia, there embed a leading health and safety week, along with lessons learned, was one case of mixed dust disease practice at all of our assets. to prevent repeat incidents. HPRIs (elements of silicosis and coal are an opportunity to learn about workers’ pneumoconiosis) and one During the year, we participated with the effectiveness of critical controls case involving silicosis. Both of these our industry peers in the ICMM’s and underpin our approach of employees are continuing to work working group on health indicators, continuous learning. Our Board’s in their roles. We have implemented occupational exposure limits (OEL) HSEC Committee review the findings additional controls to minimise standards and emerging regulations of the investigations for HPRIs further their exposure to dust, and the health effects of exposure identified as having the potential to including regular monitoring and to diesel particulate matter (DPM). result in a catastrophic event. We review. There is one reported In partnership with the ICMM, share these findings across Glencore. silicosis case at Prodeco, Colombia. we are also collaborating with All our coal operations have During 2017, we recorded 368 equipment manufacturers to introduced reporting for all HPRIs (2016: 370 excluding, 405 investigate the impact of mobile incidents (inclusive of respirable including Glencore Agriculture). equipment on emissions, DPM dust) that requires immediate We do not target a reduction in exposure and collision avoidance. notification to all senior operational HPRIs, recognising that their Through engagement with our management and an investigation reporting and recording is an industry peers, we are continuing with rectification actions. important contributor to our progress to investigate opportunities for in improving our health, safety and further improvements to environmental management. operational working conditions.

Total number of new cases of occupational diseases and occupational diseases frequency rate High potential risk incidents (HPRIs) Number of ODRs Number of ODs 140 0.35 368 120 0.30

100 0.25 2015 308 30 80 0.20 60 0.15 2016 370 35

40 0.10 2017 368 20 0.05 Including Agriculture 0 0.00 2015 2016 2017 Excluding Agriculture

● ODs excluding Agriculture ● ODs including Agriculture ODR excluding Agriculture ODR including Agriculture

26 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Through utilising the knowledge Planning and executing a safe shutdown gained from the analysis of HPRIs, we are putting measures in place to prevent similar incidents as well as finding solutions to situations that contribute to the highest cause of HPRIs. During 2017, we identified mobile equipment as a key contributor to HPRIs. We are working with our industry peers through ICMM and EMERST on collision avoidance as well as reviewing the learnings from mobile equipment-related HPRIs. This work is resulting in the implementation of structural corrective actions to encourage the prevention of repeat HPRIs. In 2017, our Murrin Murrin site in of the shutdown and met personally Western Australia undertook a major with senior management who conveyed statutory maintenance shutdown with Murrin Murrin’s expectations in the areas Next steps zero recordable injuries; the safest of safety, training and the management shutdown on record for the operation. of their people whilst on site. • Evolution of fatality investigation process to look more deeply at Murrin Murrin requires a triennial “The contracting companies were organisational factors including: shutdown. While the primary reason assured that any person in a Murrin for the shutdown is a statutory Murrin uniform was there to help use of multi-disciplinary experts inspection of the plant, the scope of contractors do their jobs safely and to assess organisational factors; the shutdown goes beyond statutory efficiently. Further, Murrin Murrin team competency review of those compliance and it is considered an leaders were assigned to clear any operating in key risk areas and opportunity to undertake maintenance roadblocks that might prevent functions; coaching; shared and works that address broader risks contractors from achieving their goals,” and applied learning processes; to a continuous operation. added Rob. effectiveness of SafeWork The 2017 shutdown involved around Murrin Murrin established a high visibility • Continuing to focus on contractor 1,200 employees and contractors on site, safety strategy to detail the specific safety well in excess of normal operating levels. activities relevant to the shutdown and The 23-day shutdown activities involved to define clearly the standards and • Development of controls for each working at heights, vehicle interactions, responsibilities for managing the identified health risk at asset level suspended loads, electrical works associated health, safety and and other potential safety and environment issues. Due to the high • Reflecting HPRI data, the environmental hazards. number of contractor personnel and development of a diagnostic tool their lack of familiarity with the site, In early 2017, a dedicated shutdown to address mobile equipment and pre-mobilisation requirements included planning team, led by Rob Nichol, pedestrian interactions mandatory inductions and training. Operations Manager began planning for the shutdown. The shutdown planning Murrin Murrin embedded its employees team included key operational alongside contractors throughout the employees and specialist contractors shutdown. This focus on teamwork who worked together to develop the received positive feedback from work scope and how to integrate contractors and was considered a major Murrin’s safety culture and work contributing factor to the successful practices into the shutdown. shutdown. “The planning team was able to “The success of the shutdown from a optimise site knowledge, define clear safety perspective was largely due to our objectives and promote teamwork for efforts to make safety productive, and everyone involved in the shutdown. not just protective. Good safety Most importantly, we communicated management is more than an absence expectations on the deliverables in of incidents or injuries; it’s also about terms of safety and quality,” said Rob. learning how things go right and applying those learnings to make sure Leadership from all 22 contracting they do,” Nigel Tonkin, Health, Safety companies visited Murrin Murrin ahead & Environment Manager.

Glencore Sustainability Report 2017 27 Climate change

Why this is material: Our approach:

Climate change is a material issue that affects We openly and transparently disclose our energy and our business and creates both challenges and carbon emissions footprint. Energy is a key input and opportunities. As a significant producer and consumer cost to our business as well as being a material source of of energy products, energy is a key input and cost to carbon emissions. We are continually looking to improve our business as well as being a material source of our our energy and operational efficiency. We are continuing carbon emissions. The transition to a low carbon to revise our carbon scenarios against energy market economy, and its associated public policy projections developed by leading organisations. We developments, represents both risks and participate in a wide range of public policy discussions opportunities for our company. on carbon and energy issues. We are investing in a range of emission reduction projects and initiatives, focusing on both our operations and the use of our products. Our ambition:

We aim to better understand and reduce the impact of our energy and carbon emissions footprint, while integrating climate change related risks and Further information opportunities into all areas of business. We will continue on our management of to take a constructive role in relevant discussions and climate change is available in to support low-emission technologies. Our Approach to Sustainability.

Key highlights

Scope 1 Scope 2 Total energy use 2017 Carbon emissions 2017 Carbon emissions 2017

(petajoules) (million tonnes CO2e) (million tonnes CO2) 202 21.6 11. 9

Sustainable development goals

28 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

High-efficiency low-emission technology Consistent with other global forecasts, We support a low emission pathway Building HELE plants in place of we anticipate that global energy for coal such as the deployment of subcritical technology is one of the key demand will continue to increase, in high-efficiency, low-emission (HELE) near term actions the International line with population and GDP growth. power stations. Energy Agency has identified to address As a low-cost, plentiful and secure global emissions. A HELE coal-fuelled power plant energy source, we believe that coal will substantially reduces CO emissions by Technologies such as HELE, are continue to play a major role in the 2 25-30% compared to older technology. supporting coal as a viable energy advancement of developing source for the future. economies.

Glencore Sustainability Report 2017 29 Climate change continued

Highlights Performance GHG emission intensity • Established an initial group-wide (t GHG/t production In 2017, we established an initial Cu equivalent) carbon emission intensity group-wide carbon emission intensity reduction target of at least 5% reduction target of at least 5% on on 2016 levels by 2020 2016 levels by 2020. This target 4.78 reflects the work we have undertaken • Started to implement the Task 2016 4.75 Force on Climate-related to date to understand our footprint Financial Disclosures’ guidance and will help to drive additional 2017 4.78 for consistent climate-related emission reduction efforts across financial risk disclosures our business. Our internal cross-function and CO2e Scope 1 • Awarded a ‘Level Four – Strategic (million tonnes) Assessment’ by the Transition multi-commodity working group, Pathways Initiative led by our Chairman, is coordinating the steps we need to put in place to 21.6 meet this target. It is also continuing to action the commitments we made 2015 23.0 by endorsing the Task Force on 2016 23.1 Climate-related Financial Disclosures (TCFD) and in response to the Aiming 2017 21.6 for A resolution passed at our 2016 AGM. We regularly report our

progress to the Board HSEC CO2 Scope 2 Committee. We shared the actions (million tonnes) we have implemented with our senior management team during this year’s HSEC summit. 11.9 Through the inclusion of climate 2015 14.3 change considerations into our 2016 12.2 annual planning process, our commodity departments have 2017 11.9 established energy and GHG forecasts for each of their assets. Scope 2 indicators have been restated to reflect IEA’s annual update of grid Additionally, our departments emission factors are identifying, monitoring and delivering a portfolio of energy Total energy consumption and GHG emission reduction (petajoules) opportunities for their assets. These opportunities include 202 initiatives implemented during the reporting period, proposals for the 2015 219.4 16.5 upcoming annual planning process 2016 201.4 20.2 as well as new initiatives that may require further development ahead 2017 202

of inclusion in future budget-cycles. Including Agriculture This process is enabling us to Excluding Agriculture develop a MAC curve to assess more holistically and comprehensively the climate related opportunities. In 2017, we generated 33.5 million

tonnes of Scope 1 and Scope 2 CO2 emissions (2016: 35.3 million tonnes). The decrease was primarily due to lower coal seam emissions at our coal operations.

30 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Our 2017 carbon emission intensity During the year, we successfully Raglan Mine’s first wind turbine increased marginally compared implemented an energy and carbon performed very well in 2017 with 2016, from 4.75tGHG/tCu to reduction project at our South delivering savings of over 2.2 million 4.78tGHG/tCu1. This slight increase African, ferroalloys Boshoek Smelter. litres of diesel, which is a reduction reflects energy use relating to The Boshoek Smelter successfully of 6,250 tonnes of GHG emissions pre-stripping activity and piloted carbon monoxide (CO) and equivalent to taking 1,350 construction work for future generation technology, which vehicles off the road production improvements and generates electricity from the heat of • Nordenham, our zinc plant is in line with our expectations. combusting waste carbon monoxide in Germany, has reduced the from its smelters through the The small increase in 2017 was recycling loop of materials in production of carbon dioxide. The anticipated when our 2020 target its alloying operations, preventing initial findings from the pilot study was established. Structural carbon the processing of the material suggest that Boshoek could reduce intensity improvements are planned throughout the whole plant. its Scope 2 emissions each year by for 2018 to 2020. Our 2018 carbon In addition, it installed advanced 8% or 60,000 tonnes of GHG. Going budget process showed that we are compressors that are reducing forward, our ferroalloys business is on track to meet our 2020 target as its energy consumption. Together, investigating the potential to double we progress towards higher energy these improvements are CO-generation capacity at Boshoek efficiency levels and carbon-efficient delivering annual carbon savings Smelter and is considering the operational changes. of 1,400 tonnes of GHG implementation of the technology at other South African smelters. • Our oil production assets in Chad have begun to electrify their camps During 2017, we also implemented using waste gases as the energy a number of other energy and GHG source. The projected annual reducing initiatives: carbon savings are 5,000 tonnes • In Canada, the second wind turbine of GHG at our Raglan Mine is currently in construction. The wind turbine should produce electricity for the first time in September 2018.

Total greenhouse gas emissions (million tons CO2)

2015 Excluding Agriculture 14.2 22.7

Including Agriculture 14.3 23.0

2016 Excluding Agriculture 12.0 22.7

Including Agriculture 12.2 23.1 2017 Excluding Agriculture 11.9 21.6

● ● Scope 2 – location based ● ● Scope 1

1 We apply the following approach to the GHG emission intensity calculation: • Both GHG emissions and production output from Glencore operated industrial assets are in scope; applying the Glencore economic entitlement basis • In line with the Greenhouse Gas Protocol, we amend our calculations to reflect the acquisition and deconsolidation of assets (such as the deconsolidation of Glencore Agriculture). Out of scope are historical and actual GHG emission and production values of assets deconsolidated by or before the end of the reporting year. • In scope are historical and actual GHG emissions and production volumes of assets acquired before 1 July of the reporting year. • Out of scope are GHG emissions from our Marketing business’ shipping activities, as these are unrelated to our industrial production.

The production value of our diversified portfolio is normalised by applying the copper equivalent approach. In this approach, we calculate the product specific production value by dividing the average price of a specific product in a baseline year with the average price of copper in the same baseline year.

Glencore Sustainability Report 2017 31 Climate change continued

Our total energy use of 202pj was at a Risk management In general, for both time horizons, similar level to that reported in 2016. We have established a risk asset-level operational climate management framework that change risk trends are anticipated Beyond Scope 1 and 2 GHG has a specific focus on carbon to be neutral under the delayed emissions, our activities induce Scope management. This framework action scenario. The analysis showed 3 emissions: indirect GHG emissions enables us to identify, manage a negative outcome under the throughout our supply chain. The and mitigate high-level climate ambitious action scenario. total of these Scope 3 emissions change risk. This reflected the possibility of reduced from 293 million tonnes governments extending existing CO e in 2016 to 281 million tonnes During 2017, an independent 2 or adding new climate change CO e in 2017. Out of this total, the consultancy reviewed the framework 2 programmes, such as increasing most material category of Scope 3 and analysed high-level climate carbon taxes and energy prices. emissions is from clients’ usage of the change trends, including regulatory Analysis under 2030 delayed action fossil fuels which we have produced compliance and physical and scenario indicated a negative physical during the reporting year, amounting reputational impacts, for our impact risk trend, largely driven by to 273 million tonnes CO e (2016: 284 operating regions. The evaluation 2 water related risks, such as flooding million tonnes CO e). This reduction utilised the ‘Delayed action’ and 2 or water scarcity. reflects the slightly lower levels of ‘Ambitious action’ scenarios and fossil fuel production in 2017. Please the time horizons of 2020 and 2030. refer to the 2017 sustainability A full description of these scenarios databook for a full overview of all is available in 2017 Climate Change Scope 3 categories which are relevant Considerations for our Business. and material to our activities.

Glencore climate scenarios: portfolio resilience

Glencore climate Commodities Alignment with IEA scenario scenarios Scenario description portfolio resilience

Delayed Action New Policies Scenario but with Domestic efforts to reduce emissions are variable, with many countries All commodities, (Glencore implementation being not meeting their stated targets or objectives. Inconsistent except ferroalloys Central Scenario) uncoordinated and haphazard implementation of carbon pricing across mainly developed and oil in nature with outcomes economies. Fossil fuels continue to be the primary base for electricity reflective of 5-10 year delays to generation, especially in Asia with slower introduction of low-carbon full and timely implementation technologies and delayed retirement of old plants. Stronger global emphasis on efficiency but slow and poor delivery of climate finance. Carbon prices range from US$5 to US$25 per tonne

CO2e by 2030, rising to a range of US$10 to US$40 by 2040 per

tonne CO2e.

Committed Action New Policies Scenario, Domestic efforts to reduce emissions with focused NDCs All commodities, including timely and full implementation achieved by key countries. Carbon pricing except ferroalloys implementation of Nationally implementation led by developed economies in a coordinated and and oil Determined Contributions structured manner. Moderate growth of nuclear, renewables and (NDCs) increasing use of high-efficiency, low emission (HELE) technologies for use in fossil fuel based electricity generation. Enhanced energy efficiency and consumption improvements in developed and developing countries supported by climate finance. Carbon prices implemented per the IEA new policy scenario (NPS) and

range from US$10 to US$40 per tonne CO2e by 2030, rising to a range of

US$20 to US$50 by 2040 per tonne CO2e.

Ambitious Action 450ppm Scenario (consistent Globally coordinated efforts to reduce emissions accelerated beyond Copper and with achieving 2°C climate the implementation of existing NDCs. Universal adoption of carbon Marketing change goal) pricing supported by a structured global carbon pricing regime. Rapid deployment of break-through technologies and non-subsidised Zinc, seabourne investment in renewable energy, battery storage, energy efficiency and coal, nickel and oil carbon capture and storage (CCS). Ferroalloys Carbon prices implemented per the IEA 450S and range from US$75 to

US$100 per tonne CO2e by 2030, rising to a range of US$125 to US$140

by 2040 per tonne CO2e.

Positive investment trend Neutral investment trend Negative investment trend

32 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Carbon capture and storage (CCS) The Carbon Transport and Storage incorporates capture at a coal power Corporation Pty Ltd (CTSCo)’s station, transportation and sequestration integrated Surat Basin CCS project to establish a basis for permitting of is a wholly owned subsidiary of long-term CO2 storage in a suitable Glencore. CTSCo’s project is a location in Queensland. scalable demonstration project. This study will provide a scalable model Formed in 2010, CTSCo brings together to deliver a viable commercial the deep subsurface skills required to approach to reducing CO2 emissions demonstrate the effective deployment in Queensland and elsewhere in of storage technology in Queensland’s Australia, reducing Australia’s overall Surat Basin region. The study is carbon footprint and benefiting all delivering an integrated CCS project that emitters of CO2 requiring storage.

Glencore Sustainability Report 2017 33 Climate change continued

Going forward, we will continue to Our climate change working group Lower carbon energy investments assess climate change related risk will drive this risk assessment We are continuing to invest in a range trends at an asset level for our highest process, review its outcome and of emission reduction projects. valued assets. We will focus this monitor follow up on findings. The International Energy Agency assessment on regulatory, operational The climate change working group has identified Carbon Capture and and physical risks from climate will give directions for embedding Storage (CCS) as a vital technology change. We will also consider how to climate change risk into our if the world is to meet its greenhouse manage and mitigate these risks, for ongoing governance. gas reduction targets. The Carbon example, the availability of renewable Portfolio resilience Transport and Storage Corporation energy sources as a counter to carbon We monitor revisions to energy and Pty Ltd (CTSCo), a subsidiary of taxes or rising energy costs as well as carbon scenarios. To date, there has Glencore, is delivering the Integrated taking steps to minimise impacts been little material change to these Surat Basin CCS project. The purpose from flooding or droughts. forecasts since we published our of the study is to deliver an integrated analysis of our portfolio’s resilience to CCS project incorporating carbon future energy demand and carbon capture, transport and sequestration regulations in our publication 2017 to demonstrate the effective Climate Change Considerations for deployment of CCS technology our Business. in the region.

Cross reference table to Task Force on Climate-related Financial Disclosures

Governance: Disclose the organisation’s governance around climate-related risks and opportunities

(a) Describe the Board’s oversight of climate-related risks and opportunities. Board Committees: 2017 Annual Report Page 87 Risk – Board leadership: 2017 Annual Report Page 90

(b) Describe management’s role in assessing and managing climate-related Work at Board meetings: 2017 Annual Report Page 89 risks and opportunities. HSEC Committee report: 2017 Annual Report Page 100

Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning where such information is material

(a) Describe the climate-related risks and opportunities the organisation has Principal risks and uncertainties/climate change: 2017 Annual Report Page 50 identified over the short, medium, and long term.

(b) Describe the impact of climate-related risks and opportunities on the Principal risks and uncertainties/climate change: 2017 Annual Report Page 50 organisation’s businesses, strategy, and financial planning.

(c) Describe the resilience of the organisation’s strategy, taking into 2017 Climate Change Considerations for Our Business consideration different climate-related scenarios, including a 2°C or 2017 Annual Report Page 30 lower scenario.

Risk management: Disclose how the organisation identifies, assesses, and manages climate-related risks

(a) Describe the organisation’s processes for identifying and assessing Principal risks and uncertainties/climate change: 2017 Annual Report Page 50 climate-related risks. 2017 Climate Change Considerations for Our Business Page 14

(b) Describe the organisation’s processes for managing climate-related risks. Addressing climate change across our business: 2017 Annual Report Page 30

(c) Describe the targets used by the organisation to manage climate-related Principal risks and uncertainties: 2017 Annual Report Page 50 risks and opportunities and performance against targets. Key performance indicators: 2017 Annual Report Page 41

Metrics and targets: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material

(a) Disclose the metrics used by the organisation to assess climate-related Reporting on our emissions: 2017 Annual Report Pages 30-31 risks and opportunities in line with its strategy and risk 2017 Databook GRI 305-1 to GRI 305-4 management process. 2017 Annual Report Page 41, 2017 Annual Report Page 1

(b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas Reporting on our emissions: 2017 Annual Report Pages 30-31 (GHG) emissions, and the related risks. 2017 Databook GRI 305-1 to GRI 305-4 2017 Annual Report Page 41, 2017 Annual Report Page 1 Scope 3 greenhouse gas (GHG) emissions: 2017 Databook GRI 305-3, 2017 Sustainability Report Page 32

(c) Describe the targets used by the organisation to manage climate-related Addressing climate change across our business: risks and opportunities and performance against targets. 2017 Annual Report Page 30

34 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

In the DRC, we have established a Reporting on progress public-private partnership through During 2017, the Task Force on Next steps our interests in Katanga Mining and Climate-related Financial Disclosures • Undertake climate change risk Mutanda Mining and the government (TCFD) launched its voluntary assessments at top value assets on a $400 million commitment guidance on consistent climate- towards the refurbishment of the related financial risk disclosures for • Continue our work with the ICMM DRC’s power infrastructure. The companies to use when providing to further develop our industry’s completion of the work is due in information to investors, lenders, response to climate change early 2019. The project will align insurers, and other stakeholders. • Promote best practice sharing and with a World Bank project to expand We support the TCFD guidance and innovative approaches for carbon electricity access in unserved and have started to implement it in our reduction opportunities at our poorly served areas. Our DRC assets annual reporting. We are engaging carbon intensive operations are meeting their energy needs with the ICMM, our peers, the TCFD through power supply agreements and interested stakeholders in with the national power corporation, establishing our TCFD-based SNEL, which delivers energy reporting approach. produced from hydroelectric sources. Further information on the climate- In Canada, Raglan Mine’s second related risks facing our business wind turbine is currently in are available in our publication 2017 construction. The unit will be Climate Change Considerations delivered to Deception Bay in for our Business and in our 2017 summer 2018 and should produce Annual Report. electricity from September 2018. Raglan Mine’s first wind turbine has In 2017, the Transition Pathways performed well during 2017, Initiative (TPI), which aims to define delivering savings of over 2.2 million what the transition to a low carbon litres of diesel, which is a reduction economy looks like for companies of 6,250 tonnes of GHG emissions in high-impact sectors such as oil and equivalent of taking 1,350 vehicles gas, mining and electricity off the road. generation, awarded Glencore a ‘Level Four – Strategic Assessment’. Level Four is the TPI’s highest score and recognises the work that we have undertaken to identify and address the risks to our business posed by climate change. In 2017, we participated in the CDP Climate Change programme, achieving a CDP score of B, consistent with our score in 2016, despite CDP increasing the thresholds in their scoring methodology. Our result reflects our approach of continual improvement in implementing measures to reduce our carbon and energy footprint.

Glencore Sustainability Report 2017 35 Water and effluents

Why this is material: Our approach:

Water is an essential input for many of our industrial We seek to understand our effect on the environment, activities, for example, in the metal production process, minimise our water-related impacts and ensure that our coal handling and preparation plants (CHPP) and for activities do not compromise any shared use of water. dust suppression around our open-cast mines. During We are committed to ensuring good water management the life of our mines, their operational changes require is in place at all our assets, including, where required, regular adaptation of water management to maximise appropriate risk assessments, monitoring and the efficient management of natural resources. We ship implementation of corrective action. We recognise that products over maritime and inland waterways, which water management is a complex issue; to understand could contaminate the water if spilled. Some of our it fully requires a dialogue between all the multiple assets are located in areas with high to extremely high stakeholders involved at each site. Our assets consult their water baseline stress and must share access to water host communities and other relevant local water users to with other local water users. Other assets must manage find out their priorities and collaborate on solutions. surplus water that may involve dewatering activities and flood protection measures.

Our ambition:

We aim to prioritise efficient water use, reuse and recycling, responsible waste water disposal and maintaining any equipment that may pose a hazard to water quality to avoid, and where avoidance is Further information not possible, to minimise any potential water-related on our management of impacts. We work to provide fair and equitable access water and effluents is for all users. available in Our Approach to Sustainability.

Key highlights

Water withdrawn 2017 (million m3) 924

Sustainable development goals

36 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Sharing water in Bolivia

Our Sinchi Wayra/Illapa mining plants recirculating around 85% of the Water treated for human consumption operations are located in the high Andes water used. is distributed via the infrastructure for of Bolivia and face ongoing impacts our mine site and the neighbouring In 2017, Sinchi Wayra/Illapa made a from extreme weather events. communities of the Antequera US$700,000 upgrade to its water municipality. We consistently review our measures to treatment processes. reduce our consumption of fresh water The discharged water benefits around The majority of the treated water is for in our mine processing plants. This 2,600 local farmers and rural dwellers. agricultural irrigation and farm animals. includes our zinc and lead concentrator

Glencore Sustainability Report 2017 37 Water and effluents continued

Strategic water Highlights Performance management framework • Continued the implementation In 2017, we withdrew 924 million m3 During 2017, we continued to of our strategic water of water (2016: 971 million m3 or 829 implement our strategic water management framework million m3 excluding Glencore management framework at all of our assets. This included the finalisation • Finalised our water management Agriculture). The like-for-like increase of our water management guideline, guideline is mainly due to two assets increasing their dewatering efforts as their which is in line with the ICMM’s • Established a guide for sharing operational profiles reached position statement on water and its best practices relating to water groundwater aquifers and all assets water management framework. Reflecting our risk-based approach, • Developed a briefing pack aligning with our revised water the guideline covers the minimum on the implementation of a reporting requirements. requirements for water governance, catchment-based approach We have finalised the harmonisation the identification and evaluation of • Finalised the harmonisation of our water reporting to align with water-related risk and their mitigation, of our water reporting the Water Accounting Framework the management of water in terms of (WAF) of the Minerals Council of quality and quantity and engagement • Knowledge sharing with Australia. with relevant stakeholders. our peers through participation in the ICMM working group on water

Glencore’s overall water balance (million m3)

Water Input (by source) 938 Water used onsite 1,005 Surface water – withdrawn 178 Water used in a task or process 509 Sea water – withdrawn 160 Water recycled at onsite treatment facilities 126 Ground water – withdrawn 291 Water reused 370 Rain water – withdrawn 197 Share of water recycled/reused 35% Potable (drinking) water imported or withdrawn 19 Change in water in storage -81 Other (not potable) water imported from a third party 80 Total water withdrawn 924 Water entrained in ore that is processed 14

Diversions and water transferred to others 67 Surface water diversions 37 Aquifer Interception diverted 14 Water supplied to others 16

Total water withdrawn by quality 938 Category 1 – Water withdrawn 289 Category 2 – Water withdrawn 360 Category 3 – Water withdrawn 289

Water input Water use Water output Water diversion / transferred to others

38 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

During the year, we made further In South Africa, our coal operations Share of progress against key strategic developed integrated electronic Risk category Description total sites objectives in our water management water and salt balances for each Category 5 Very high risk 3 (1.3%) framework. These include: operation. These water balances Category 4 High risk 6 (2.6%) • Establishing a guide for sharing led to each asset developing Category 3 Medium risk 25 (10.9%) best practices relating to water water conservation and demand management strategies, which Category 2 Low risk 15 (6.6%) • Developing a briefing pack on the are supporting the meeting of Category 1 Very low risk 180 (78.6%) implementation of a catchment- water-use efficiency targets. based approach In Australia, the coal business • Completing and distributing a upgraded its operational water Water withdrawn quick guide to our water reporting balance models with predictive (million m3) requirements tools to improve water • Refining our water balance tool management. These predictive tools and finalising the harmonisation of use the water balance model, 924 our water reporting to align with current water inventories and local 2015 766 188 the Water Accounting Framework rainfall forecasts to predict site water (WAF) of the Minerals Council inventories. The models are updated 2016 829 142 of Australia. each month to determine the likely 2017 924 range of operating conditions for the At an asset-level, our operations next year, such as floods, normal Including Agriculture are continuing to build their conditions, conservation and Excluding Agriculture understanding of their water drought. Operating conditions are 2015 data is not directly balances, implement the water comparable to later periods due adjusted to align with the predicted management guideline and to changes in data reporting water management requirements. methodology disclosed in our identify actions to reduce their 2016 Sustainability Report. use of this valuable resource in line with our overall continuous improvement approach.

Glencore’s overall water balance (million m3)

Water output (by source) 1,020 Water discharged to surface water 404 Water discharged to sea water/ocean 171 Water discharged to ground water 25 Water discharge to offsite treatment or disposal locations 11 Water exported to a third party 26 Water lost to evaporation and other losses 331 Water entrained in waste material and final product 51

Total water output by quality 1,020 Category 1 – Water discharged 479 Category 2 – Water discharged 393 Category 3 – Water discharged 147

Glencore Sustainability Report 2017 39 Water and effluents continued

As part of its regional environmental The analysis, supported by our Industry collaboration management strategy and in water-related management systems We are active members of the ICMM’s partnership with other mining and controls, has identified areas for water working group. During 2018, companies and the environmental improvement and the affected assets we will complete a pilot study to trial authorities, Prodeco is developing a are reviewing the recommendations. the ICMM’s catchment-based conceptual regional hydrogeological Two of these assets, the Rhovan approach. The pilot study’s results will model. The model evaluates the vanadium smelter in South Africa determine how we use this approach regional impacts of mining on the and the Zhairem Mining and at our assets. groundwater of the Cesar mining Concentrating Complex in We are also participating in collective region and includes a preliminary Kazakhstan, are making operational action projects in Australia and design of a regional groundwater changes that we hope will address Colombia in collaboration with monitoring network. Work will the identified areas of concern. mining peers and other interested continue in 2018 to further develop Water incidents stakeholders to analyse and mitigate the model and advance the design In 2017, we received 19 water-related shared risks. During 2018, we are of the regional groundwater- complaints at 11 of our assets (2016: considering participating in a similar monitoring network as well as 73 complaints at 10 sites). project in South Africa. developing a preliminary design of a regional surface water-monitoring During the year, we paid four water- We continue to participate in the network. related environmental fines annual CDP Water assessment; our exceeding $10,000, which totalled score of A- (2016: A-) reflects our Risk management $205,000. One fine was for a non- approach to managing water-related We completed our assessment of compliant discharge of waste water risk responsibly. sites facing high water-related risks. into a Kazakhstan river following This assessment analysed the severe weather conditions during quantity of water withdrawn at our 2016 and 2017. The other three fines Next steps operations against the water baseline related to exceedances of applicable stress data provided by the • Continued implementation of the discharge values in Peru in 2003 and World Resources Institute’s (WRI) water management guideline 2008 and a minor tailings spill into a Aqueduct tool. river in 2008. Remediation and • Undertake a pilot study on the We have ranked all of our assets mitigation measures were put in implementation of a catchment- in accordance with their identified place where appropriate. based approach (ICMM) water-related risks, ranging from We are disappointed to report that • Establish a platform to share best category 1, very low risk, through during 2017, we recorded one practice and learnings to category 5, very high risk. water-related moderate Our assessment ranked only 4% environmental incident. The incident of our sites with risk categories occurred in a remote part of our 4 and 5, despite 20% of our sites mining lease for our Koniambo Nickel being located in areas with high to asset in New Caledonia. The area extremely high water baseline stress. impacted was not in active operation. This was due to a large number of The event was triggered by a period the sites located in areas with high to of abnormally high rainfall. Mud extremely high water baseline stress generated by the landslide entered consuming a comparatively small a nearby creek and resulted in a amount of water. temporary discolouration of its water. In consultation with the local We further evaluated all of our government and communities sites allocated with risk categories downstream of the area, we 4 and 5 to understand better their developed remediation plans, which risks. This evaluation looked at the are now completed. Following a water-related risks generated by the thorough investigation into the cause asset as well as the risks they face in of the landslide, Koniambo Nickel respect to overall water availability, has reviewed and revised its water water quality, stakeholder management programme for the engagement and concerns and area impacted, developed tools to regulatory requirements. support increased monitoring outside of active operations, increased monitoring activities and taken steps to prevent further erosion.

40 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Establishing participatory monitoring in Peru

Antapaccay is located in Peru’s Espinar taking hundreds of samples and province, an area of heavy natural found no evidence of pollution. OEFA mineralisation. In Espinar, the water is regularly informs local communities mineralised and naturally unfit for of these results. human consumption. The increasing Antapaccay has also implemented a local population and expanding farming number of participatory monitoring activities are creating stress on water programmes with local communities. availability. In addition, the limited All participatory and company infrastructure in the region is affecting monitoring activities demonstrate that the availability of water. Antapaccay operates in line with Antapaccay has put in place measures, Peruvian law. There is no evidence that such as monitoring and water treatment, Antapaccay’s activities cause pollution or to ensure it does not affect water quality that the increased level of heavy metals or availability. found in the blood of some inhabitants is due to the Antapaccay operation. Antapaccay undertakes environmental monitoring in accordance with national Antapaccay has communicated the legislation and is subject to both results of the monitoring activities external and internal audits on its through a short film, which included a environmental performance. The version in Quechua, the local language, Agency for Assessment and to support understanding by all Environmental Control (OEFA), part of community members. the Ministry of Environment, undertakes the external audits. As part of their auditing, OEFA has conducted several monitoring programmes that involve

Glencore Sustainability Report 2017 41 Waste and air emissions

Why this is material: Our approach:

Responsible resource production involves minimising We work to minimise our direct and indirect impacts on the impact of our waste and air emissions on the the environment, complying with or exceeding relevant natural environment and our host communities. In regulation and always looking for ways to improve our recent years, a small number of sudden catastrophic performance, including reusing of as much waste as failures at tailings facilities within the resource sector possible. Our tailings storage facilities (TSF) undergo have also resulted in a heavy focus on tailings facility regular inspections in line with the stringent regulations management. relating to their management. We continuously monitor our TSF to support their integrity and structural stability. We work to minimise all types of emissions from our Our ambition: stacks, mining operations and processing facilities. We use abatement systems for our air emissions We aim to avoid or minimise any adverse impact on to meet the applicable threshold values. the environment or our surrounding communities.

Further information on our management of waste and emissions is available in Our Approach to Sustainability. Key highlights

Total amount of hazardous and non-hazardous mineral Sulphur dioxide waste generated 2017 emissions 2017 (million tonnes) (thousand tonnes) 2,129 358

Sustainable development goals

42 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Anticipating impact of climate change on waste management The tailings storage facility at our Raglan climate change on the facility. The study Following these presentations, Raglan Mine, located in an Arctic environment made recommendations on the Mine created a multi-stakeholder group at the extreme limit of northern Quebec, methodology that Raglan Mine was to further engage these local Canada is a dry stacking storage facility. applying to its tailings storage. communities in the closure plan for the operation. The closure of the Since 2006, an independent group These recommendations were operation is expected to take place in composed of tailings experts has studied presented to the local communities more than 20 years. the actual and potential impacts of living near Raglan Mine’s operations.

Glencore Sustainability Report 2017 43 Waste and air emissions continued

Air emissions Highlights: Performance Our operations emit sulphur dioxide • Rollout and implementation Waste (SO2), dust and nitrogen oxide (NOx); of our tailings management While our operations continuously we monitor all material emissions. protocol look for ways to minimise waste, the During 2017, our SO2 emissions of reopening of an Australian coal 357.6 thousand tonnes, was a operation and an increase in stripping decrease on 2016, when we recorded Total amount of hazardous ratios (the ratio of the volume of 401.3 thousand tonnes (2016: 401.6 and non-hazardous waste material required to be moved including Glencore Agriculture). mineral waste generated in order to extract the commodity) (million tonnes) at a number of assets, increased This decrease was due to reduced the total waste we produced concentrate availability at one of our 2,129 in 2017 to 2.129 million tonnes. larger operations, Mount Isa Mines, (2016: 2.025 million tonnes). as the sulphur content in the 2015 2,111 concentrate directly influences the During 2017, we rolled out a SO2 emissions. 2016 2,025 group-wide Tailings Management Protocol. The Protocol improves During the year, a small number 2017 2,129 our identification and minimisation of our assets received community or elimination of potential health, complaints relating to emissions: safety, environmental, social or • In Argentina, operations at our Total sulphur dioxide business risks associated with copper-gold mine, Alumbrera, were emissions Tailings Storage Facilities (TSF). suspended following a complaint (thousand tonnes) It expands on our requirements relating to pollution. We for maintenance procedures and immediately undertook on-site 358 annual inspections as well as environmental studies related to detailing assurance processes. the complaint. Shortly after the 2015 366 0.3 We require the design, construction, decision was made to suspend 2016 401 0.3 operation, and closure of our TSF activities, a federal judge found no and associated dams to comply evidence of pollution, reversed the 2017 358 with internationally-recognised order and operations resumed Including Agriculture engineering standards. Excluding Agriculture • In the Philippines, our PASAR Risk assessments are conducted on copper smelter received complaints TSF to evaluate the risks associated relating to SO2 emissions. PASAR with a TSF failure so that the investigated these concerns and associated preventing and found no evidence of the asset mitigating controls can be identified. exceeding the Time Weighted Annual TSF safety inspections are Average level – the Philippines carried out to assess the compliance emissions monitoring system. of the TSF with regulations and PASAR has a continuous emissions engineering standards. monitoring system in place that records real time SO2 emissions to ensure compliance In South Africa, the government introduced amended industry-

specific SO2 emissions limits that will come into force in 2020. All of our ferroalloys smelters meet the updated regulations. Rhovan, our vanadium smelter, has implemented improved measures and we are tracking the impact of these changes ahead of the regulatory deadline.

44 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

In Australia, our McArthur River examples of industry best practice Mine (MRM) has lodged a draft in the construction and closure Next steps environmental impact assessment stages. The EIS process commenced • Ongoing review of operational (EIS) with the Northern Territory in 2014 and involved a large amount waste management procedures government for the long-term of field work in aspects of geology, to identify opportunities for management of its waste rock. geochemistry, hydrogeology and improvement, to minimise the The EIS highlighted a requirement ecology. Throughout the process, impact of the waste we produce to change the method MRM uses MRM has extensively engaged with to store mining waste due to a local stakeholders. change in waste characterisation. The proposed strategy for waste storage and management includes

Managing emissions in Zambia

Following the completion of its Mopani’s emissions capture is generally Mopani has established a system to $500 million smelter upgrade, our within international limits. There are inform the community about possible Zambian copper operation, Mopani, very few instances when these limits increases in emissions each time the is continuing to improve its capture are exceeded for very short periods. smelter needs to restart.

of SO2 emissions. This might be the case when the furnaces are restarted following Today, Mopani captures around 95% scheduled maintenance or a local of its emissions and has real-time power surge. SO2 monitoring stations spread across the community.

Glencore Sustainability Report 2017 45 Human rights and grievance mechanisms

Why this is material: Our approach:

We recognise that our operations may have an impact It is essential that we uphold and respect the human on the rights of our workforce and the surrounding rights of our people and our local communities. Where communities. We are also aware of the need to ensure we may cause adverse impacts on our stakeholders, unencumbered, fair and transparent access to remedy we seek to apply relevant international standards to for any stakeholders affected by our operations. We are understand, control and mitigate the impact. Our continuing to look for ways to strengthen the commitment to respect human rights in accordance mechanisms we have in place to address this. with the Universal Declaration of Human Rights, the UN’s Guiding Principles, the UN Global Compact and ILO core conventions is articulated in our Code of Conduct and Our ambition: Group Human Rights Policy. We also seek to apply the Voluntary Principles on Security and Human Rights, IFC’s To uphold respect for human rights within the Group Standard 5 and ICMM’s position statement on Free and and throughout our value chain. Prior Informed Consent. We have established mechanisms that allow our local stakeholders to express their concerns.

Further information on our management of human rights and grievance mechanisms is available in Our Approach to Sustainability.

Key highlights

Community complaints 1,063

Sustainable development goals

46 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Addressing artisanal mining Our Katanga and Mutanda copper theatre, drawing, music, scouts as well To encourage greater attendance at operations in the DRC are supporting as discussions on the risks of artisanal the holiday camp, we inter-link them holiday camps for school children and mining and the importance of with economic diversification projects agricultural initiatives to deter the education. Attendees receive a meal delivered by local cooperatives. The participation of children and women each day. At the end of the camps, projects include those focused on in artisanal mining. we organise a ceremony, attended agriculture (livestock, bee-keeping, dairy by representatives from the local and the production of jam, juices and Katanga and Mutanda work with local authorities and community leaders, to flour), welding, carpentry and catering. NGOs and churches to deliver the demonstrate the activities undertaken holiday camps. During June to August by the children and to award each child 2017, over 7,200 children participated in with a school uniform. a wide range of activities, such as

Glencore Sustainability Report 2017 47 Human rights and grievance mechanisms continued

We are in the process of reviewing Highlights: Performance our approach to due diligence in • Asset-level self-assessments Risk assessment our supply chain, which will include undertaken on our Group Our South African coal business modern slavery. Human Rights Policy and engaged an external party to The Australian government is grievance mechanisms guidance conduct a validation of their human developing similar reporting rights risk self-assessment. This • External validation of our South requirements that will come into involved identifying a list of African coal’s human rights risk force in 2018. Our Australian assets operational human rights issues assessment process are monitoring its development. and risks through document reviews, • Training on the Voluntary stakeholder engagements and over Indigenous people Principles in Chad, Colombia, the 400 household surveys. The identified The Raglan Agreement, the first DRC and Peru issues were analysed to find areas of impact and benefit agreement alignment and divergence. The coal signed in Canada between a • Publication of our first Modern team are implementing an action mining company and an Aboriginal Slavery Statement plan to address the gaps. population, was signed in 1995. It contains our commitments to Addressing artisanal mining communicate mine updates and During 2017, we noticed an increasing share benefits, to identify concerns interest in responsible cobalt supply and opportunities raised by the and ASM in the DRC, with a specific community, and to respect focus on Lualaba province. In the cultural heritage. DRC, some of this mineral is produced by artisanal miners, using In early 2017, in northern Canada, our women and child labour. As a major Raglan Mine and its Inuit community producer and marketer of cobalt, we partners agreed on additional support efforts to establish greater measures to the Raglan Agreement transparency in the value chain, and that will support the extension of the address the endemic poverty in this life of Raglan Mine for an additional region that is the underlying cause 20 years. Based on the environmental of artisanal mining (ASM). We do and social impact assessment’s not support ASM, nor process or results and conclusions for Raglan purchase any material derived from Mine’s future, the Sivumut ASM in the DRC. We have developed committee (meaning ‘moving robust due diligence processes to forward’ in Inuktitut) reviewed the ensure this material does not enter impacts of the project and its our supply chain. recommendations, which formed the basis of the additional measures Modern slavery to the Raglan Agreement. Further During the year, we published our details are available in the nickel first Modern Slavery Statement. chapter on page 93. Modern slavery (which includes In Australia’s Northern Territory, slavery, servitude, forced labour and our McArthur River Mine (MRM), human trafficking) is a global concern provides on-the-job training for with long-lasting impacts on affected local trainees. During 2018, MRM individuals and communities. will launch a training programme We reject any form of slavery within for a Certificate in Parks and Wildlife our organisation and supply chain. Management. This is being jointly Our annual statement sets out our run with the local Borroloola school. approach and the steps taken for Practical sessions will occur on the prevention of slavery in our site with the support of MRM’s organisation and supply chain. environment team. Once established, MRM are looking to expand the range of study to include other certificates, including motor mechanics.

48 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Resettlement In Colombia, eight critical contractors Peace in Colombia In 2017, our coal business conducted received training specifically on the work on four resettlements, two in rights of children and all of Prodeco’s We continue to support efforts for Colombia and two in South Africa. security employees attended a peace in post-conflict areas. These resettlements are conducted human rights workshop organised In Colombia, our coal operation, in accordance with national and by the Universidad del Norte. Prodeco, continued to participate international standards, including Prodeco also completed an action in the development of Colombia’s the IFC Performance Standard 5: plan to reduce and eliminate the National Plan on Business and Land acquisition and involuntary gaps identified by a human rights Human Rights, led by the Presidential resettlement. Further information risk assessment undertaken in 2016. Advisory Office on Human Rights. on these resettlements is available This included further engagement in the coal chapter on page 76. In 2018, the group is initiating an with stakeholders. evaluation of early warning In Argentina, our Aguilar zinc asset mechanisms, which include defining In the Democratic Republic of is in the process of resettling one criteria and priority cases such as Congo, our Katanga and Mutanda household and the process is threats to personal integrity and operations provided training for expected to be completed in 2018. environmental and child abuses risks. 1,530 contractors and 148 employees, Following a stakeholder consultation Working with security providers a further 30 mine police participated process, the next steps will be to Our assets that are located in in an information session. Mutanda reach common agreement and countries that we have identified also provides regular training to the then to develop a roadmap for as having a high potential risk of regional police force. further opportunities. security-related human rights In Peru, our Antapaccay copper impacts have established procedures The Colombian government will operation held two training integrate the findings into state to support the implementation of the programmes that involved protocols with enhancement Voluntary Principles on Security and three sessions in May and three recommendations. Human Rights. sessions in December. These Prodeco is also participating in the These include providing training programmes trained the 150 Energy Mining Committee (CME). sessions to both directly employed private security contractors. The CME is a Colombian initiative and contracted security officers. We involving private companies, established to foster dialogue on are also working to raise awareness the VPs as well as their operational among public security forces present implementation. CME is currently at our operations. preparing guidance on the respectful In Chad, our oil exploration and management of those exercising their production team undertakes annual right to protest and the actions to prevent escalation into violence. reviews of security. The review involves the Ministries Department. During 2017, the review focused on: the prevention of vandalism acts on facilities and equipment, theft, avoidance of unnecessary night walks around facilities after the 6pm curfew and engagement with the night patrol military team. During the year, our security superintendent in Chad became aware of a human rights incident Meeting between the Colombian government’s in a local community involving an chief negotiator for the peace process with the FARC, and members of the Prodeco’s senior individual from the public security management team. forces assigned to our operation. Our security superintendent spoke to the local head of the public security forces and the individual involved was redeployed out of the region.

Glencore Sustainability Report 2017 49 Human rights and grievance mechanisms continued

Grievance mechanisms Mount Isa Mines, our copper and Complaints by type (%) Following the group-wide rollout of zinc operation in Australia, received ● Dust 5.3% our grievance mechanism guidance the majority of complaints relating ● Odour 20.1% during 2016, our departments to odour emissions (57 complaints, ● Noise 12.3% ● Water 1.8% undertook self-assessments against 5% of total complaints received ● Trac 1.7% our Group Human Rights Policy and group-wide). Mount Isa Mines has ● Internal security 0% ● Public security 0.2% grievance mechanisms guidance. implemented an extensive air ● Access to property 19.3% quality control system and alert ● Blasting 3.5% These assessments identified a need ● Fallout damage 9.6% process in order to better control to improve our understanding of ● Other 26.2% and mitigate emissions. actual and potential human rights incidents affecting local stakeholders. PASAR, our copper smelter in the We are looking to develop stronger Philippines, received complaints

internal reporting procedures that relating to SO2 emissions (52 will help us to identify issues complaints, 5% of total complaints early on and to take steps to received group-wide). PASAR prevent their escalation. investigated these concerns and found no evidence of the asset We seek to make our grievance exceeding the Time Weighted mechanisms available to the Average level – the Philippines community members impacted by emissions monitoring system. PASAR our operations. We also promote has in place continuous emissions these mechanisms, for instance via monitoring system that records real local radio stations or in posters and time SO emissions. notice boards. Community members 2 are able to submit complaints At our Mangoola coal operation in directly, through the regular Australia, the majority of complaints interactions with the operations’ received related to noise. It is an community teams, or anonymously. operation with a community living Complaints are reviewed and nearby. The number of complaints assessed by the operation, and received from this community have actions necessary to address the issue significantly decreased year-on-year, are communicated to the individual with 52 complaints received in 2017 who lodged the complaint. compared to over 500 in 2013. This is a result of improvements to During the year, we received 1,063 operational performance in relation complaints from the communities to air and noise management, living around our operations. These which make up the majority mainly related to odour, access to of the complaints. property and noise with communities in Chad, Australia and the Philippines We take all of our complaints reporting most of the complaints. seriously and continuously look for new ways to minimise our impacts. In Chad, our oil exploration and production (E&P) operation recorded the majority of the complaints reported during 2017. Most of these complaints related to flooding on neighbouring properties during construction works and heavy rainstorms. Chad E&P fully addressed and remedied the issues raised and put in place measures to avoid similar occurrences in the future.

50 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Proactively responding to community concerns Next steps • Ongoing participation in advisory group for a multi-stakeholder initiative (government, NGOs, companies) to develop guidance for commodity companies to implement UN Guiding Principles, led by the Swiss government. Once finalised, the guidance will be promoted globally and implemented by Glencore • Continued engagement with the OECD

Over the past five years, our coal • Using automated systems to identify business has achieved a 72% reduction adverse meteorological conditions in community complaints since 2013 likely to result in noise impacts and a 33% reduction during 2017. • Avoiding placing operations on raised The majority of our coal business’ and exposed areas to minimise noise historical complaints relate to air and and dust generation noise and the reduction reflects the • Planning for progressive and continued focus on improving temporary rehabilitation operational performance. Steps taken include: • Setting aside sufficient water for dust suppression • Identifying effective noise management controls during the • Undertaking noise and air quality mine planning, assessment and awareness training for employees operational phases. These include implementing activity specific noise controls, minimising haul distances as far as practical and minimising the clearing of trees, bush and grass during construction work

Glencore Sustainability Report 2017 51 Community engagement and social commitment compliance

Why this is material: Our approach:

We recognise that our business activities make a Our operations have a significant effect on the significant contribution to the national and local communities in which we work, and on society as a economies in which we operate. We seek to whole. It is our responsibility to minimise any negative understand and manage our impacts, generate impact and to support sustainable development and sustainable benefits for our host communities, growth. Through a proactive, strategic stakeholder while also promoting diversified and resilient and community engagement, we can support the local economies. advancement of the interests of both our host communities and our assets. We take a cross-functional approach to understanding and managing our socio- Our ambition: economic contributions and to deliver shared value while managing our impact on society. We aim to foster sustainable growth wherever we operate and to contribute to society throughout our value chain, via employment, procurement, enterprise development, infrastructure and social Further information investment programmes. on community engagement and social commitment compliance is available in Our Approach to Sustainability. Key highlights

Tax and royalty Community payments 2017 initiatives 2017 $4bn $90m

Sustainable development goals

52 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Developing local procurement in the DRC Our Katanga copper operation in Katanga has undertaken consultation Following the consultation process, the DRC is working with local sessions with local communities that Katanga identified a number of authorities to support and promote included representatives from civil projects including repairing schools, local employment and procurement society, including churches, NGOs, a community centre and hospital through funding infrastructure schools and youth movements, wards, building a health centre and improvement projects. women’s associations and agriculture drilling community wells. Katanga is cooperatives, to identify projects to employing local contractors and In the Kolwezi region, the local develop local procurement and skills. suppliers on all of the projects. authorities are keen to develop small and medium-sized enterprises and see Katanga as a key player in the delivery of this ambition.

Glencore Sustainability Report 2017 53 Community engagement and social commitment compliance continued

We have ongoing engagement with Highlights Performance a broad range of NGOs. In particular, • Continued to rollout the Community engagement our discussions during 2017 involved Community Leadership During the year, we continued the organisations active in Colombia. Programme rollout of our Community Leadership These groups take a strong interest Programme (CLP). This is a toolkit of in the ongoing resettlement activities • Ongoing engagement with materials for our community relations close to our Prodeco coal operation – a broad range of NGOs teams, as well as for our human further information is available in the resources, environment and Coal chapter. procurement colleagues, covering For the past eight years, our nickel all aspects of interactions with local business in Canada has supported communities, including engagement, the work of two local NGOs. Cape investment and performance Fund is a social investment fund monitoring. Its purpose is to build aimed at supporting aboriginal and enhance the social performance entrepreneurs launch and develop capabilities of our operational staff their business ideas. Over 20 of and teams. Canada’s largest organisations We supported the rollout with are investors in the Cape Fund. regional ‘train-the-trainer’ workshops, The second NGO is Learning for which also addressed specific local Sustainable Future, whose mission requirements from the toolkit. is to promote, through education, A number of our assets’ General the knowledge, skills, values, Managers attended the training perspectives, and practices essential sessions, demonstrating the for a sustainable future primarily importance that our sites award through professional development community relations. for teachers to deliver inspiring and engaging sustainability lessons. The CLP toolkit is supporting our commitment to strong community In South Africa, our coal business relationships and the effective continued its collaboration with delivery of operational social strategy. three local organisations, Re-Action! It is helping us to better identify areas Consulting, Life Careways and Life that we need to review further. We Occupational Health, to advance will continue to use the CLP as a its Employee Wellness Programme. broad training framework that will In 2017, our coal business formally continue to evolve as part of the extended the wellness programme review and development of to include a detailed financial our approach. wellness element to address the indebtedness challenge In addition to our interactions with faced by employees. The focus of the communities living around our our ferroalloys and coal businesses assets, we continued our dialogue was to increase the number of HIV with broader civil society groups. In positive employees on care and Switzerland, we are participating in a treatment programmes; 73% of government-led initiative to develop HIV-positive employees participate guidance on the implementation of in the programme. the UN’s Guiding Principles in the commodity-trading sector.

54 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community engagement on a shared resource

In 2010, in coordination with the NSW regulators and other industries. It is a management, water management, Minerals Council, the region’s miners collaborative effort, determining the rehabilitation and mine closure. established the Upper Hunter Mining biggest priorities for the local The community and local government Dialogue in Australia, to address community, understanding their work with the mining companies to community concerns on the pressure concerns and working together shape the strategic direction of the created by mining on local infrastructure to develop and implement solutions initiative. Working together is improving and services, land rehabilitation, water to their top priorities. communication between industry and and air quality. The mining industry and the community the community and fostering a better The Dialogue, which Glencore chairs, work together to identify projects to understanding for all involved on how brings together six coal producers from assist with understanding and managing the mining industry works. the region and community and business of the local impacts of mining. Some of leaders, environmental groups, residents, these projects have included air quality

Glencore is an active participant • In Peru, our Antapaccay copper • In Australia, our McArthur River in a dialogue process established operation is collaborating with local Mine in the Northern Territories, between members of the mining farmers and other organisations to provides on-the-job training for industry and faith groups. In 2016, improve local agricultural practices employees. It is also developing this initiative was formalised as the and continued its support for the a programme with the local Mining and Faith Reflections Initiative local dairy and wool sectors Borroloola school to deliver training and an independent secretariat was for a Certificate in Parks and • In Colombia, our Prodeco coal established. During 2017, we were Wildlife Management. The practical operations support a number pleased to host the faith group at sessions will take place on site with of programmes to enhance the Prodeco and to support the work the environment team. Once educational opportunities of to strengthen the ties between the established, MRM will look to community members. These mining industry and local churches. develop other practical courses include improving the quality of We also participated in the faith for other certificates such as small public schools, providing access groups’ dialogue in South Africa. motor mechanics opportunities for higher education, Going forward, we are looking at technical education and • In Chad, our socio-economic opportunities to strengthen dialogue employability training for adults. analysis for our Badila oil block in specific countries facing challenges identified the need to construct related to resource extraction. • Prodeco also provides training a new school to serve the with an educational institute. surrounding villages. The children Social commitment compliance These programmes support local attending the Bardira School took Our socio-economic contribution community members becoming their lessons sitting on the dirt scorecard measures and qualified as a truck operator, mine under a tree. As there was no communicates our social impact. technician as well as other non- shelter, lessons had to stop during During the year, we progressed the mining skills such as oral and the rainy season and, as a result, work that we are undertaking to writing skills many children failed to complete better align the scorecard to our • In South Africa, our coal business their school programme. Working broader social management strategy. offers training linked to needs with the regional education board, This included: identified within the mining we identified a site for the new • In Zambia, our Mopani operation industry and other non-mining school that was mid-way between invested over $20 million to portable skills in order to reduce four villages. The new primary establish a training centre, which dependency. During 2017, 106 school can accommodate over runs programmes for mining and community engineering learners 200 pupils. A local contractor engineering artisans received theoretical and practical was engaged to build the school training, 84 received driver at a cost of around $76,000 • In northern Canada, our Raglan education licence training, 49 Mine is running the Tamatumani attended training colleges to obtain Program, a recruitment and skills a trade qualification, 31 received development initiative for local training in early childhood Inuit people, which supports their development and nine received career advancement at the mine training to work with children and adults with special needs

Glencore Sustainability Report 2017 55 Community engagement and social commitment compliance continued

Socio-economic contribution In 2015, we launched the Glencore socio-economic contribution scorecard to collect information on our performance. The scorecard supports our efforts to meet objectives for maintaining and strengthening our societal licence to operate, while supporting our local communities’ own objectives. Operational objectives Community objectives Maintain and protect societal licence to operate, as measured by: Achieve resilience, as measured by: • Levels of community support and community perceptions • Measurable benefits • Anticipation and mitigation of risks associated with benefit • Reduced dependency on the asset generation, such as additional migration to these areas, • Diversified economy or confusion over which entity will provide public services • Incidents of societal unrest

The scorecard examines the key value flows that our assets create for four principal stakeholder groups. Stakeholder group Value flows 2017 results Employees • Wages and benefits • 96% of our workforce is local to the countries where we operate Suppliers and contractors • Procuring goods and services • 76% of our global procurement bill is with suppliers and contractors • Skills and enterprise development local to the countries where we operate Local communities • Community development • We spent $90 million on programmes supporting local community • Use of shared public-use development, including $12 million for enterprise development and infrastructure economic diversification of local entrepreneurs • Skills and enterprise development • In general, over 2.5 million people living near to our assets have benefited from our community investment activities, including healthcare facilities, education programmes and enterprise development • Approximately $14.6 million spent on infrastructure for water processing and distribution • $2.6 million spent building or maintaining over 128 kilometres of roads Local and • Taxes and royalties • $4 billion paid to host governments in taxes and royalties national government • Shared public-use infrastructure • Nearly $25 million spent on public infrastructure such as water, power and sewage networks and roads

Economic value added in 20171 North South Rest of $ million Group Africa Australia America America the world Revenues2 243,740 5,508 11,6 6 8 33,893 6,542 186,129 Payments to suppliers (operating costs)3 229,028 3,808 8,093 32,084 4,808 180,235 Economic value added 14,712 1,700 3,575 1,810 1,734 5,894 Royalties and taxes 4,5 4,113 807 1,653 287 519 848 Employee wages and benefits6 4,719 682 1,536 741 515 1,243 Sum of payments to providers of capital 7 3,223 582 105 -91 60 2,567 Community investments 90 32 5 2 13 37 Sum of capital expenditure 3,411 944 864 434 575 594 Economic value retained/contributed -844 -1,349 -588 436 52 605

1 For presentation purposes, all figures in this table have been rounded to the nearest unit. 2 Revenues include sales, intercompany sales and other income. 3 Operating costs include all costs of goods sold excluding salaries, employee benefits, taxes, community investments, depreciation, impairment and M2M. 4 Does not include total net refunds from governments on VAT, GST and sales tax amounting to $1,553 million. Taxes and royalty payments for Equatorial Guinea amounting to $27 million are not included. 5 Does not include income taxes paid in Colombia, Peru and Chile, relating to Glencore’s ownership interest in joint ventures (Cerrejón, Antamina and Collahuasi) amounting to a total of $415 million. 6 Excludes all costs relating to contractors; these are shown in operating costs. 7 Consists of dividend payments and interest expenses to third parties and inter-Group entities. Payments to providers do not include any repayments of loans principals.

56 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

We are active participants in the In 2017, the tax and royalty ICMM working groups on closure payments made by our industrial Next steps and its socio-economic impacts and marketing activities was $4.11 • Review approach to social on communities. As the work has billion (excluding Glencore development developed, the two ICMM working Agriculture), an increase on 2016. groups have recognised the need The increase is mainly due to • Development of supporting to integrate socio-economic aspects improved profitability and guidance and implementation into closure management and, production volumes. tools as a result, are now working Our highest payments made to closely together. governments in 2017 were: We pay all relevant taxes, royalties Payments (excluding VAT) ($ million) and levies required by local and Country 2017 national regulation in our host Australia 1,627 countries. The payments we make Kazakhstan 494 to the governments of the countries Democratic Republic of Congo 407 in which we operate include local, South Africa 300 national, sales and employment taxes, government royalties and Colombia 225 licence and permitting fees. In Canada 212 addition, we contribute to local Peru 150 economies through our payments United Kingdom 90 to suppliers, wages and employee Argentina 76 benefits, voluntary support of socio- United States 74 economic initiatives such as health Switzerland 72 and education projects and Zambia 55 infrastructure development. Does not include total net refunds from governments We welcome fiscal transparency, on VAT, GST and sales tax amounting to $1,553 million. Taxes and royalty payments for Equatorial Guinea as it encourages the responsible amounting to $27 million are not included. management of revenues from Does not include income taxes paid in Colombia, Peru extractive activities. We are a and Chile, relating to Glencore’s proportionate ownership interest in joint ventures (Cerrejon, Antamina and supporter of the Extractive Industries Collahuasi) amounting to a total of $415 million. Transparency Initiative (EITI) and its principles of transparency and accountability. We participate in in-country forums supporting the EITI. Our annual payments to governments report includes the information required by the EU Accounting Directive, and details payments by country, project and recipient.

Glencore Sustainability Report 2017 57 Product stewardship

Why this is material: Our approach:

Our products are vital to today’s society, creating We work with experts, industry consortia and our peers devices used daily, all over the world. Supplying these to study the properties and impacts of our products products in a timely fashion with consistency in quality throughout their lifecycles, to spread understanding and safety is essential to our business and to our of our products. Through building a thorough customers. There is increasing focus by consumers on understanding of our products’ properties, we are best the supply chain of the products they consume. In turn, able to produce, transport and store them safely and our customers are seeking increasing reassurance on mitigate potential adverse impacts on our workers’ sustainability in the production of the raw materials health and environment. We engage with a broad range they buy. Our product stewardship programme of stakeholders, including civil society, governments, continues to evolve to meet the needs of our industrial partners and our customers, to promote commodities’ markets. responsible commodity sourcing.

Our ambition:

We aim to deliver competitively priced commodities that meet our stakeholders’ needs and contribute to global society in a sustainable manner. In addition to being a sustainable producer, we seek to be a Further information responsible marketer of commodities incorporating on product stewardship is health, safety, environment and human rights available in Our Approach considerations throughout our supply chain. to Sustainability.

Sustainable development goals

58 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

End-of-life electronics recycling

In Canada, our Horne Smelter is one It recovers, among other things, copper, The recycling system recovers almost of the few plants in the world that gold, silver, platinum and palladium from all of the precious metals and copper responsibly recycles end-of-life computers and other information contained in the approximately 130,000 electronics and other copper bearing technology and communications metric tonnes of recyclable material materials into copper cathodes. equipment such as mobile phones. received annually.

Glencore Sustainability Report 2017 59 Product stewardship continued

supply chain due diligence is the United Nations (UN) Principles Performance receiving increasing legislative on Business and Human Rights and measures such as the UK and the the UN Global Compact. We will align Highlights proposed Australia’s Modern Day our due diligence with the OECD Due Slavery Act. Diligence Guidance for Responsible • Ongoing engagement with Supply Chains of Minerals from organisations regarding Our customers are increasingly Conflict Affected and High-Risk Areas. responsible sourcing seeking assurance that their own supply chains do not have any links We have already taken steps to rank Established a working group to • to human rights abuses. Both the the commodities that we source support our understanding of London Metal Exchange (LME) reflecting the role they play in our the proposed LBMA silver and the London Bullion Market supply chain, their country of origin, guidance and to provide Association (LBMA) are incorporating related-existing and emerging detailed feedback during the supply chain due diligence regulation and the focus of our consultation process requirements into their codes customers. We are now undertaking • We continued our active of conduct. detailed risk assessment and participation on the Technical mitigation planning for the Our Code of Conduct and Group Advisory Committee of Better Coal commodities that we have identified Human Rights Policy detail our as having high and medium-risk approach and the expectations we associated with their production. place on our assets concerning We work with all our stakeholders to human rights. We are further We are continuing our ongoing encourage responsible commodity developing our due diligence process engagement with organisations sourcing. We recognise that there is to specifically address human rights regarding responsible sourcing. In the potential for risks relating to risks within our supply chain. particular, we have participated in human rights, conflict and corruption discussions with the OECD on that exist within our supply chain. The approach we are taking is minerals from high-risk areas and the Direct or indirect links to human risk-based, focusing on the regions LBMA on silver. rights violations in our supply chain with the highest risk of human can lead to substantial reputational rights abuse. It reflects our existing During the year, the LBMA began to damage. In addition, human rights commitments to initiatives such as draft responsible silver guidance that would become mandatory within a

Responsibility through the value chain

Processing Marketing Mining Fabrication End product and refining and logistics

Supporting sustainability Meeting expectations

Suppliers Glencore Customers

Value chain for the marketing business

60 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Product stewardship initiatives The new regulation requires that Emerging regulation As part of our approach to managing all EU importers of 3TG (tin, and mitigating occupational health tungsten, tantalum and gold) meet risks, we are updating our database international responsible sourcing on the potentially hazardous standards, set by the Organisation substances that are present at our for Economic Co-operation and operations. The database prioritises Development (OECD). We are well substances, based on their properties, placed to meet the requirement regulatory developments and inputs of the upcoming legislation. from external stakeholders. We are In 2017, Glencore did not produce, then better able to put in place process or market any ‘conflict Our Group monitoring system appropriate mitigation measures. minerals’ originating from the conflict tracks emerging regulations and determines the degree of risk or We inform our workers, transporters areas as defined under the Dodd- impact they are likely to have on our and customers of the possible Frank Act (tin, tungsten, tantalum business. We have consolidated this hazards of our products and which and gold from the DRC and analysis into our product stewardship safety precautions they need to adjoining countries). scorecard that covers new regulations follow when handling, storing and In Europe, the REACH registration and/or product guidance. transporting our product to prevent process is ending. In other regions physical, personal and environmental We are working with industry of the world, the adaptation of similar harm. This information is provided associations to identify further ways in chemical management legislation which we can contribute to the aims of within safety data sheets, which are to REACH is gaining momentum. the circular economy regarding updated regularly and sent to Turkey and Korea are currently commodities. our customer. implementing their own versions. For example, we are investigating In addition to the important work We have prepared our business to the potential of leasing vanadium in around health risk management, meet the new requirements and we battery storage solutions, extracting Glencore is taking a leading role in will continue to supply commodities and reusing the vanadium at the end the development of a supply chain into these regions. of the lease term. There is potential application of this approach in other initiative by the Cobalt Institute. The catalyst processes. initiative will establish guidance for risk management within the supply Next steps EU Critical resources legislation – the chain, focusing on the upstream transition to a low-carbon economy • Continue to follow responsible producers of cobalt. It will support involves many commodities that the sourcing initiatives the responsible production of cobalt EU has restricted/banned on health • Engage with stakeholders and reasons. Nickel is looking at this through the delivery of enhanced customers to build recognition from the battery market perspective. due diligence aligned with industry good practice and those global of our responsible practices frameworks that are focused on the • Participate in the development couple of years for all smelters and responsible sourcing of minerals. of initiatives and policies to avoid refiners that sold through the LBMA. overly cumbersome supply chain Recognising that this guidance would Glencore is an active participant on requirements affect a number of our operations, the Technical Advisory Committee we established a working group to (TAC) of BetterCoal. The TAC is a • In response to the clarification support internal understanding of multi-stakeholder group with of market requirements on the new rules and to provide detailed participants from unions, coal responsible sourcing, develop feedback to the LBMA during the customers, companies and civil a business implementation consultation process. Following the society. In Colombia, the TAC visited strategy in partnership with the finalisation of the LBMA guidance, our coal operation, Prodeco. Prodeco internal stakeholders our affected assets are implementing will also participate in Bettercoal’s • Engage with internal stakeholders these new market requirements in assurance programme. on benchmark exposure limits order to meet the Compliance for priority hazardous substances new recommendations. During 2017, the European Union’s reflecting the regulatory We are continuing to engage with (EU) Conflict Minerals Regulation developments for OELs as well our customers on our responsible was finalised. It will come into force as the requirements of Glencore’s practices and supply chain oversight. on 1 January 2021 and all affected occupational health strategy We hosted a number of visits by companies will need to have in • Implement, where necessary, the customers to our assets. place appropriate measures by the end of 2020. recently finalised guidance produced by the LBMA for silver refiners

Glencore Sustainability Report 2017 61 Our people

Why this is material: Our approach:

Our success relies on our ability to attract, develop and We believe that diversity is essential to our business and retain the best talent, at every level. We must maintain prohibit discrimination on any basis. We do not tolerate a capable and engaged workforce that brings a diverse any form of racial, sexual or workplace harassment. We range of experience and perspectives to the protect and uphold fundamental human rights around organisation, in order to continue meeting our the Group, with fairness, dignity and respect. We uphold business objectives. the International Labour Organization Declaration on Fundamental Principles and Rights at Work. We recognise and uphold our people’s rights to a safe workplace, Our ambition: freedom of association, collective representation, just compensation, job security and Our aim is recognition as a top employer in all of our development opportunities. operating regions.

Further information on Our people is available in Our Approach to Sustainability.

Sustainable development goals

62 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Glencore Sustainability Report 2017 63 Our people continued

towards the completion of their Highlights Performance tertiary qualification, as required by • External recognition for our Training and skills development their respective higher learning training programmes Where possible, we employ locally institutions, six female candidates and our training and skills received supervisory training • Our Australian zinc assets rolled development programmes support exposing them to the opencast out a programme to develop this ambition. Training and skills environment and seven community employee safety skills development is fundamental to our candidates received blasting • Our South African ferroalloys business. Reflecting the diversity of assistant training. assets hosted a first aid our business and workforce, we tailor Across Glencore, external competition, supporting skills our training programmes to meet the organisations have recognised our development and teamwork skills needed in the communities that skills development programmes. In support our assets. • Ongoing efforts group-wide to Australia, our copper assets received attract a diverse workforce We prioritise the safety and wellbeing two prestigious industry awards of our people across the Group. Our recognising its outstanding approach reflects local needs. In 2017, achievements for vocational these efforts included: education and training. In Canada, the Prix Créateurs d’emplois du • A first aid competition involving Québec was attributed to Raglan teams from our South African Mine, part of our Integrated Nickel ferroalloys assets. The event Operations for its contribution to supported skills development in innovation and job retention in the teamwork; emergency response; northern region of the province. preservation of life; prevention of further injury; and promotion During the year, we continued of recovery our graduate and internship programmes. In Australia, senior high • In Australia, our zinc assets rolled school girls local to the Mount Isa out a programme to develop the Mines operation participated in the safety skills of its employees. Glencore Girls for Mining Mentoring Following a base-line survey, Programme. On the programme, employees and contractors experienced female mining participated in both classroom- professionals mentor the students. based learning and in-field The students gain an insight into coaching. We furthered this professional life in the mining approach with toolkits distributed industry. to supervisors and a new safety campaign. Following the Diversity programme, we have noted a Reflecting the wide geographic significant increase in the reporting footprint of our workplaces, diversity of hazards. A follow-up survey is at the core of Glencore’s approach showed a markedly improved to its people. We are continuing our safety culture. efforts to attract a diverse workforce that reflects the communities living • Our South African coal business around our operations. provides employees with on-the- job practical training, external Our Group Diversity Policy promotes courses or bursaries to obtain a diverse and inclusive workforce. We higher education degrees or have established guiding principles to diplomas. During 2017, 36 improve gender balance, encourage engineering learners received and support diversity and to prevent theoretical and practical learner discrimination of gender or any other development, 18 bursaries were diverse attribute. Our principles awarded to attend university, 18 support increased diversity awareness graduates completed their practical throughout our business. training at our coal operations, 10 Group-wide, we employ 12,037 learners followed a one year women, which is 14% of practical exposure programme our employees.

64 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Industrial relations Zambia’s Mining Woman At CEZinc, a zinc refinery in Canada, Next steps of the Year owned by the Noranda Income Fund • Implement the Group Diversity (NIF) and in which Glencore has a Policy at all industrial and 25% stake and operates, members of marketing assets the United Steelworkers Union (USW) went on strike in February. The labour • Continue to promote Glencore as dispute resulted from the NIF’s cost an employer of choice reduction initiatives to adjust to • Build awareness of employment market terms after the conclusion of opportunities among university a 15-year term where the NIF enjoyed students the advantage of fixed processing fees. In November, the 371 members of the USW voted in favour of a new six-year collective agreement. The agreement was a compromise During 2017, Mopani’s Mirriam between the NIF’s need to restructure Mapyapya received the Zambia its cost base and the USW’s goal of Chamber of Mines’ Mining Woman keeping its members’ pension of the Year award. benefits unchanged. Mirriam Mapyapya, a rock mechanics During 2017, in Australia, we engineer at Mopani copper operations, negotiated new enterprise received the Zambian Mining Woman agreements (EAs) with local of the Year award from the then Minister of Finance, Felix Mutati. At the Construction, Forestry, Mining and event, Mopani was also recognised as Energy Union (CFMEU) lodges at Zambia’s Mining Company of the Year 13 of our coal operations. The for the third year running and won exception was at our Oaky three awards from eight categories. North mine where we had been To win the award, the judges assessed negotiating with the CFMEU on Mirriam, alongside nominees from a new agreement for nearly eight mining companies, on criteria three years. relating to leadership, professional In March 2018, following an extended integrity and mentoring. The labour dispute, Oaky North’s nominees’ also had to demonstrate the benefits they brought to their employees voted in favour of the area of work as well as their ability proposed new EA and we began a to motivate others and influence a formal process of re-integrating these significant positive change for employees back into the workforce. Zambia’s geology, mining or mineral We believe the new agreed EA processing industry. positions the mine for a Mirriam has worked for four years at successful future. Mopani, in a predominantly male Turnover environment that is typical of the During 2017, our global turnover was Zambian mining sector. During that time, Mirriam has been an active team 9% a slight reduction on 2016 (10%). player and challenged the gender myth through competence, ability and a passion for success in the workplace, both underground and on surface. Mirriam is committed to a safe workplace and often leads the safety meetings for her section. Mirriam is furthering her skills as a rock mechanics engineer through working towards the South African Chamber of Mines certificate for Rock Engineering.

Glencore Sustainability Report 2017 65 Compliance

Why this is material: Our approach:

Glencore’s success is founded on its reputation, built We have implemented a Group compliance programme over many years as being an honest and reliable that includes policies, procedures, guidelines, training business partner. By upholding our commitment to and awareness, and monitoring. Our permanent ethical business practices that fully adhere to regulatory and temporary employees, directors and officers requirements, we seek to maintain this reputation and (as well as contractors, where they are under a relevant meet our long-term objectives by being a business contractual obligation) must comply with our compliance partner of choice. policies, procedures and guidelines that apply to their work, in addition to complying with applicable laws and regulations. When we enter into joint ventures where we Our ambition: are not the operator, we seek to influence our partners to adopt similar policies to ours. We seek to maintain a culture of ethical behaviour and regulatory compliance throughout all of our business activities.

Further information on our Group compliance programme is available on our website and in our 2017 Annual Report.

Sustainable development goals

66 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Glencore Sustainability Report 2017 67 Compliance continued

Our employees who do not have Highlights Performance regular access to a work computer • 31,737 employees and Training and awareness receive training on compliance topics contractors (2016: 29,569) Training and awareness on our through other platforms appropriate completed e-Learning training policies, procedures and guidelines, to their function and location. These on our Code of Conduct as well as strong leadership and tone approaches include induction sessions, pre-shift general training • 22,872 employees completed from the top, are critical components and toolbox talks. training on anti-corruption of our compliance programme. Together, they support our Monitoring • Active members of the employees’ understanding of the Our compliance monitoring Partnering Against Corruption behaviour expected from them and function (CMF) seeks to ensure Initiative and the Maritime provide guidance on how to identify the effectiveness of Glencore’s Anti-Corruption Network and practically approach legal and compliance programme through ethical dilemmas in their daily monitoring and testing the working lives. implementation and execution The target audience of our Code of of our compliance policies, Conduct e-Learning training is procedures, guidelines and relevant employees with regular access to a controls. The CMF works alongside work computer. Our Code of Conduct our Group internal audit function e-Learning training includes guidance (GIA), which evaluates and improves on raising concerns. In 2017, 31,737 the effectiveness of our risk employees and contractors (2016: management, control and 29,569) completed this training. business governance processes. Our anti-corruption e-Learning The CMF performs specific testing, training targets those who interact continuous monitoring and onsite with third parties and includes reviews and discusses the results guidance on giving and receiving with the relevant marketing office gifts and entertainment. During the or industrial operation to determine year, 22,872 employees (2016: 20,119) the most appropriate course of completed this training. action, including any required corrective action. The CMF also Our compliance teams also conduct reviews and analyses reports received engaging face-to-face training for by our Raising Concerns programme, relevant employees to raise as well as compliance specific awareness about compliance risks observations and findings noted by related to their functions and to train GIA. The CMF uses the findings from them on Glencore’s compliance these various inputs to identify areas policies and procedures. of improvement. The CMF also

68 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

provides input on compliance related Raising concerns – reports by category 2017 Compliance Summit matters into our GIA process (2017)

and programme. ● Our 2017 Compliance Summit Accounting, auditing and ﬁnancial reporting 1 included a session with our CEO, Ivan In 2017, CMF visited multiple sites ● Business integrity 51 Glasenberg, who took questions from across six countries. The CMF also ● Health, safety, attendees from across the Group. environment and collaborated with the Group community 20 In November, we hosted a Compliance information technology and ● HR, diversity and accounting team to integrate workplace respect 77 Summit at our offices in Switzerland ● Misuse, for around 60 of our compliance monitoring and testing into both our misappropriation of officers and coordinators. accounting and payment systems. corporate assets 14 ● Other 20 Over two days, participants engaged in Reporting Misconduct training and interactive workshops, If an employee, contractor or third providing them the opportunity to party encounters a situation that share knowledge and learn from best appears to breach our Code of practice. Attendees enhanced their Conduct, policies or procedures, that skills and gained tools to support the Raising concerns – reports by region individual must raise this promptly advancement of the compliance (2017) function at a local level. with his or her immediate supervisor or manager or through our Raising ● Africa 76 ● The Summit also gave participants an Concerns programme. In 2017, the Asia 36 opportunity to hear directly from their ● Australia 8 Raising Concerns programme ● Europe 12 peers on how they are implementing received 183 (2016: 153) reports on ● North America 8 Glencore’s compliance programme at ● South America 43 their local operations. potential situations where Group policies may have been breached. Ivan Glasenberg, Glencore’s CEO, addressed the Summit with a clear All queries raised via the Raising and resounding message: Compliance Concerns programme are reviewed is vital to Glencore’s success and always and assessed promptly in accordance has a priority seat at the table. with our internal guidelines. Glencore has a zero tolerance approach for retaliation against any employee, Participation in external contractor or third party who reports anti-corruption organisations a concern in good faith. This is critical We are a member of the Partnering to ensuring individuals feel Against Corruption Initiative (PACI). comfortable raising concerns and we Members collaborate on collective communicate this message action and share leading practice in to employees. organisational compliance. The initiative has a commitment of zero In the event that an investigation into tolerance on bribery and the a Raising Concerns report finds a requirement to implement practical breach of the Code of Conduct has and effective anti-corruption taken place, action is taken. This programmes. We are also an action may include termination, associate member of the Maritime suspension, a formal warning, the Anti-Corruption Network (MACN). implementation of a retraining and coaching plan or participation in a We actively participate in PACI and workplace conduct workshop. MACN’s annual events. We have incorporated guidelines from both organisations into our procedures.

Glencore Sustainability Report 2017 69 Commodities report

Our activities generate significant benefits for our host governments and communities. We support the responsible management of revenues from extractive activities.

Energy Metals and Metals and products minerals minerals Coal Copper Ferroalloys We are a leading producer and We mine and process copper ore We deal in bulk and noble exporter of bituminous thermal and we have a sizeable smelting ferroalloys. We are one of the coal and a significant producer of and refining capacity. We are also largest integrated producers of both premium hard and premium one of the largest producers of both ferrochrome and primary semi-soft coking coal. cobalt, a by-product created by vanadium, and a producer our copper assets in the DRC. of manganese ferroalloys.

Read more Read more Read more Page 72 Page 80 Page 88

70 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Metals and Energy Metals and minerals products minerals Nickel Oil Zinc We are a leading global nickel We trade in crude oil, refined We are one of the world’s largest producer and trader. We deal in products and natural gas. We miners and producers of zinc, metal, concentrates, intermediates source crude oil and oil products with a combination of mines and ferronickel, and produce and have additional interests and smelters that is unique by-products such as precious in oil and gas production for a single business. metals and platinum. sharing contracts.

Read more Read more Read more Page 92 Page 100 Page 104

Glencore Sustainability Report 2017 71 Coal

We are a leading producer and exporter of bituminous thermal coal and a significant producer of both premium hard and premium semi-soft coking coal. We supply thermal coal to customers from a wide range of industries and locations, including major utilities across three continents. We have interests in more than 26 operating coal mines in Australia, South Africa and Colombia.

Energy products Coal at

1 a glance 2 8 9 10 11 3

12 4 7 5 13 6 14 15 19 16 17 18

• 1. Prodeco • 8. Collinsville • 15. Liddell 120 . 6 • 2. Cerrejón* • 9. Newlands • 16. Mangoola million tonnes of coal • 3. Izimbiwa • 10. Oaky Creek • 17. Integra produced at our assets • 4. Goedgevonden • 11. Rolleston • 18. Mount Owen • 5. Tweefontein • 12. Ulan • 19. Tahmoor in 2017 • 6. iMpunzi • 13. Bulga • 7. Clermont • 14. Ravensworth

10 6 . 3 Mt * Independent jv of thermal coal sold via our marketing business KPIs in 2017 2017 2016 2015 Fatalities at managed operations 0 1 0 Lost time injury frequency rate (LTIFR) 26 (per million hours worked) 1.21 1.50 1.35 Total recordable injury frequency rate (TRIFR) coal mines across (per million hours worked) 2.74 3.79 3.32 Australia, South Africa New occupational disease cases 11 11 5 and Colombia at 20 CO2e Scope 1 (million tonnes) 9.9 11.1 11. 2 assets CO2 Scope 2 – location based (million tonnes) 1.3 1.3 1.7 Total energy use (petajoules) 38 37 39 23,000 Water withdrawn (million m3) 114 73 98 Community investment spend ($ million) 5.0 6.1 4.9 employees and contractors across the Number of employees and contractors 23,258 21,564 23,442 coal business Proportion of female employees (%) 15% 14% 14%

72 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Safety

Implementing Frontline Safety Leadership Plans

During 2017, our coal business achieved 3. Reporting and recording all incidents • The South African coal assets its objective of zero fatalities. Its LTIFR involving substandard risk and hazard established a weekly high-risk and TRIFR improved by 20% and 28% analysis and non-compliances verification process, which allowed respectively on 2016; exceeding its managers to establish steps for the 4. Proactive steps to improve compliance targeted reductions for the year. identification, recording and verification with safe work procedures and standards of high-risk work or activities within their To support the coal business’ target of Reflecting local needs, each of our area of responsibility. This approach has year-on-year performance improvement, coal business’ three operating countries significantly improved safety it undertakes regular reviews to identify adopted Plans for their frontline leaders: performance and our South African areas where it can further advance our business has seen no loss of life since performance. During 2016, findings • In Australia, the coal business is 2012. We are now implementing a showed an inconsistency among its implementing a revised Targeted similar approach at our Australian assets frontline leaders in hazard recognition Visible Leadership Model. This places and risk assessments. To address this, focus on planning interactions as part In Colombia, a number of awards have in 2017 the business developed and of the planning process in line with the recognised our commitment to safety. implemented Frontline Safety risk profile, with more in-depth Prodeco has received, for the third Leadership Plans. interactions for higher risk activities consecutive year, the Cruz Esmeralda Medal of Merit for Excellence. The These Plans cover: • In Colombia, the Prodeco team are Medal is the highest distinction that focusing on leadership development 1. Leadership-led improvement to risk the Colombian Safety Council awards as well as visible safety leadership in assessments and hazard identification to companies for their health and the field, which includes mandatory safety standards at work, which our 2. Compliance with safe work procedures safety interventions such as PPE operations have. and standards inspections, area inspections and safety days

Glencore Sustainability Report 2017 73 Coal continued

Health Environment

Mine Lung Dust Disease Implementing a proactive approach to rehabilitation and mine closure planning

In 2017, we recorded three confirmed Our coal business has the largest land • Improved topsoil water management cases of Mine Lung Dust Disease footprint across Glencore (39% of ahead of seeding (MLDD). Glencore’s land disturbance in 2017). • Using a biologic cover such as mulch The coal business currently owns or In Australia, there were two confirmed to protect the topsoil from erosion leases around 570,000 hectares, of MLDD cases. One case was mixed dust which 55,000 hectares (around 10%) disease, which has elements of silicosis Mine closure have been disturbed and around and coal workers’ pneumoconiosis, Our coal business currently has 12 17,000 hectares rehabilitated. and the second case was silicosis. Both operations in care and maintenance affected employees are continuing to and five moving to closure. Our Rehabilitation work in their roles with additional approach focuses on land management Our Australian coal business links controls in place to minimise further and life of mine planning in order to operational management’s KPIs to their exposure to dust. Prodeco, in deliver mine closure options that provide rehabilitation targets. Colombia, reported a silicosis case. for sustainable post-mining land use and During 2017, our Liddell operation in relinquishment of mining tenements. During the year, we participated in New South Wales has been conducting Part of this planning process includes both public and private sessions of cattle trials on both rehabilitated and the treatment of final pits and we are the Queensland Parliamentary Select non-rehabilitated land. These trials are taking steps to minimise the size or Committee Inquiry into Coal Workers’ demonstrating the long-term viability of environmental impact of a final void. Pneumoconiosis. Our contribution grazing on rehabilitation pastures. The provided information on the scope of results are consistently showing that During the year, Glencore Australia the issue and potential opportunities cattle grazed on rehabilitation pastures hosted the ICMM mine closure working for improvement. gain significantly higher weight to those group. We hosted eight peers at a workshop that included a visit to our All our operations have introduced grazing on non-rehabilitated land. operations and an opportunity to share single exceedance reporting (inclusive In Colombia, Prodeco completed practices and shape industry approach. of respirable dust), which requires studies and trials that assessed This was followed up with a workshop in immediate notification to senior rehabilitation alternatives to improve South America, where Glencore also operational management and an its approach towards disturbed areas. participated, which looked to combine investigation with rectification actions. Prodeco will implement the revised considerations of environmental impacts We are monitoring and, where rehabilitation techniques at its of closure with social ones. appropriate, implementing Calenturitas and La Jagua mines. We are also playing an active role engineering improvements that The new approach includes: through the Australian Coal Industry’s address dust mitigation strategies. • Stabilising topsoil with grass before research programme and industry These include increasing sprays on tree planting and only planting trees associations to improve understanding the cutting machine and improving when the soil can support them and guidance on final voids and the sealing of crushers as well as post-mining land use. continuing our efforts towards achieving automation.

74 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Environment

Supporting research into low emission technology

The International Energy Agency The initial test storage of 180,000t CO2, implications of the proposed project. has identified carbon capture and pending permitting approval by the In 2015, an independent community storage (CCS) as a vital technology Queensland Government is located baseline research captured the issues if the world is to meet its greenhouse and contained within the boundaries and attitudes of the local Wandoan gas reduction targets. of Glencore’s Glenhaven property, community. The results are shaping the located 15km outside of the township local engagement programme and Despite this, out of a total of $2 trillion of Wandoan. ongoing interaction with the community. invested in “clean” energy over the last ten years – like solar, wind and biofuels – Formed in 2010 as a project-specific This project, if successful, will deliver a only 1% has been directed to CCS. entity, CTSCo brings together the deep viable commercial approach to reducing

Glencore has participated in a number subsurface skills required to demonstrate CO2 emissions in Queensland and of low emission technology projects the effective deployment of CCS elsewhere in Australia, reducing in Australia. technology in Queensland’s Surat Australia’s overall carbon footprint and Basin region. benefiting all emitters of CO requiring One of these is the Carbon Transport 2 storage. Through the retro-fit of and Storage Corporation Pty Ltd (CTSCo)’s The project is intended to deliver an post-combustion capture modules at an integrated Surat Basin CCS project integrated CCS project that incorporates existing coal-fired power station located in Queensland. CO2 capture at a Queensland coal power in the Surat Basin, between 120,000 station, transport and sequestration Established as a wholly owned subsidiary tonnes to more than 1,000,000 tonnes to establish a basis for permitting of of Glencore, CTSCo, in addition to per annum could be captured. long-term CO storage in the Surat Basin Glencore, receives grant funding from 2 in Queensland. For more information about CTSCo, visit the black coal industry, via ACALET www.ctsco.com.au. (the Australian Coal Association Low CTSCo is committed to working closely Emissions Technologies) and the with local communities and fully Commonwealth Government. investigating the economic, environmental, social and cultural

Glencore Sustainability Report 2017 75 Coal continued

Climate change

Recognising the importance of high-efficiency low-emission technology

Courtesy of J-Power.

In line with other global forecasts, we A coal plant that receives its final (CCUS). If we are to achieve global anticipate that global energy demand investment decision today will probably climate targets, gas power plants and will continue to increase in line with not begin operating for a further five to industrial facilities will need CCUS population and GDP growth. We ten years. The usual life of a coal plant is technology to support the use of coal. expect the rising demand in both around 40 years. That means a coal plant If the world is to meet its global developed and developing economies approved for construction today will climate targets, the Global CCS Institute to require all forms and sources of likely be operating at least into the 2050s estimates over 2,000 CCUS facilities energy, as well as a suite of low- and possibly beyond. are required by 2040. Today, there emission technologies. We support a low emission pathway for are only 17 large-scale CCS facilities While the specific energy mix required to coal. A HELE coal-fuelled power plant operating globally, two on coal-fuelled

meet this expected demand will vary reduces CO2 emissions by 25-30% power generation, with a further from country to country, we anticipate compared to older subcritical 20 in development. that absolute demand for coal is set to technology. HELE technologies are now Lack of political support, policy parity rise in the developing Asia Pacific region becoming the default technology for with other low-emission technologies as these economies focus on lowest-cost new power plants across Asia. China and and limited funding opportunities is electricity for their economic growth and Japan have taken the lead in deploying hindering CCUS deployment. However, urbanisation. Coal is, and will continue to these technologies and they are being this is beginning to change. Recently, be, the lowest cost fuel source for built in India and Southeast Asia as well. progress on a new tax credits regime in large-scale power generation in Asia. Building HELE plants in place of the US to encourage CO2 storage could subcritical technology is one of the key Many emerging and developing be a game changer for American CCUS near term actions the International countries (China, India, Bangladesh, deployment. In addition, the Chinese Energy Agency has identified to address Vietnam, Philippines, Nigeria, Ghana government has been clear on the global emissions. To date, 24 countries, and others) have included lower importance it places on CCUS including China, have included HELE emission coal technologies in their technology that has led to some technology in their Nationally COP21 Nationally Determined important developments such as the Determined Contributions pledged Contributions (NDC). We expect growth Yanchang CCS project and CCS projects under the Paris Agreement. in the deployment of high-efficiency, by China Energy. low-emission (HELE) power stations, Another technology that is supporting underpinning coal as a viable fuel for the delivery of global climate targets is the future. carbon capture, utilisation and storage

76 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community and Human Rights

Respecting human Creating shared value rights in Colombia in South Africa

In Colombia, our coal business is partnering with local organisations to further develop its management of human rights. In 2017, Prodeco engaged Fundación Ideas para la Paz (FIP) to undertake a human rights due diligence exercise for its suppliers. The exercise reviewed Prodeco’s ten most critical contractors. The results were shared with the contractors and Prodeco will work with them to close the identified gaps. Prodeco continue to participate in the development of Colombia’s National Plan on Business and Human Rights, Our South African coal business is During 2017, a new enterprise led by the Presidential Advisory Office continuing its support for local schools development initiative was introduced on Human Rights. The group is and communities to assist the development of sustainable working with the Colombian emerging enterprises from local The business is supporting an e-learning government to draft state protocols communities and provide opportunities project that connects under-performing that develop and support processes for for job creation. The programme and disadvantaged schools through the early identification of community provides an online system for local video conferencing and desktop sharing. grievances. Early stage identification businesses to register their company The aim is to increase the pass rates enable concerns to be addressed in a and the services they provide. Local particularly for maths and science. The timely and appropriate manner as well businesses also have the ability to see use of technology has increased the as mitigating escalation. the opportunities available and to apply quality of learning and teaching. to the procurement process. Recognising that vision and learning are inter-related, our South African coal business launched an eye screening initiative at our local schools. During 2017, the programme screened 5,502 learners from eighteen schools and 374 children received spectacles. A further 2,234 students received treatment for minor ailments and there were 15 referrals to the state ophthalmologist for further examinations.

Glencore Sustainability Report 2017 77 Coal continued

Community and Human Rights

Supporting territorial peace in Colombia

Local capacity building • Diploma in Territorial Peace and Capacity Building of Civil Society and Official Local capacity Entities (in partnership with the Cesar building Development and Peace Programme) • Territorial and institutional strengthening project • Strategic social dialogues • Together for Peace youth group

Peace- Corporate Peace Culture Entrepreneurship • Training in human rights and peace building Corporate Peace for Peace strategies Culture related topics to our employees and contractors Responsible Management • Human rights-focused risk analysis • Background of impacts

Responsible • UN Guiding Principles on Business Management and Human Rights • UN Voluntary Principles on Security and Human Rights Entrepreneurship for Peace • Agricultural projects in lands not used for mining • Environmental offset programmes

We recognise the significant progress Colombia Internacional (CCI), an support our local communities in made towards achieving sustainable organisation supporting agro-enterprise preparing for the post-conflict phase peace in Colombia. Prodeco is supportive business projects, to create sustainable that the country is entering of the steps taken by the government livelihood projects and forest offsetting • Alliance for peace: Prodeco is working and is an active participant. programmes that will encourage the with the Cesar Development and community to participate in rural Prodeco is working to implement its Peace programme to develop projects development projects, especially in commitment to the peace process. In that support a sustainable peace for rural areas historically affected by the line with the concept of “Paz Territorial” communities that have suffered internal conflict (peace throughout the regions), Prodeco violence, conflict, poverty, exclusion is developing ways to build the capacities • Leadership for Peace: is a training and marginalisation. Through the of local institutions and to promote programme to prepare local alliance, a group of 120 leaders, with sustainable communities, while communities and civil institutions for 60 based in Prodeco’s local encouraging a corporate culture of taking part in the peace progress. communities, are participating in peace and responsible operation Prodeco created the training in community projects, running for public within the company. partnership with the Cesar office, and expressing their opinions Development and Peace programme. constructively Prodeco is supporting the peace During 2017, Prodeco launched a pilot process through: • Responsible management: Through dialogue initiative with the La Victoria including human rights focus in impact • Entrepreneurialism for peace: de San Isidro community. The pilot assessments and risk management a programme that supports the aims to establish organisational mechanisms, Prodeco is working to development of a sustainable networks and an economic prevent social and environmental agricultural business that aligns with development model that integrate impacts in local communities; if the peace agreement goals. Prodeco with the peace process, while not correctly managed, these may is working with a range of institutions, maintaining opportunities for dialogue contribute to new conflicts in the future including the UNDP and Corporación with local communities, allowing us to

78 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community and Human Rights

Undertaking resettlement Increasing transparency in the supply chain in accordance with international standards

Our coal business is undertaking four resettlements, two in Colombia and two in South Africa. The resettlements are conducted in accordance with national and international standards, including the IFC Performance Standard 5: Land acquisition and involuntary resettlement. In Colombia, during 2017, Prodeco met a number of its key resettlement milestones: • At the Plan Bonito community, work continued on the livelihood restoration plan, benefiting 96 families and 473 people and developing 73 businesses. • Prodeco and the other involved mining companies finalised the negotiation of the El Hatillo resettlement action plan (RAP) in compliance with the relevant national and international standards. This community consists of 320 families, of whom 130 are non- residents. During 2017, the consultation process on the RAP included multiple meetings with community, national and local entities, the resettlement operator and technical team as well as more than 72 workshops. The RAP implementation is scheduled to begin during 2018. In 2017, we conducted one resettlement in South Africa (Wonderfontein) and commenced There is increasing pressure for During the year, European utility consultation with 13 families at transparency in the supply chain in companies conducted third party Zonnebloem. relation to the ethical sourcing of our human rights reviews of their Colombian In 2015, our Goedgevonden coal products and services. suppliers including Prodeco. operation undertook a full In 2017, we stepped up our resettlement of the 37 households Prodeco has committed to the engagement with our European of the Tree Plantation community to initiative Bettercoal and in 2018 will customers, government and NGOs Phola, a town in the local municipality. participate in its assurance programme. and held a number of meetings to The homes are new build and provide an overview of the coal connected to the municipal water business, our sustainability performance infrastructure. We are continuing to and key challenges. work with the remaining six families.

Glencore Sustainability Report 2017 79 Copper

We are one of the world’s largest copper suppliers and its third largest producer of mined copper. Our industrial assets and marketing activities are fully integrated, and we have a sizeable custom smelting and refining capacity. We have assets in all the major copper-producing regions. We are also one of the world’s largest producers of cobalt due to the by-products created by our copper assets in the DRC.

Metals and minerals 1 3 4 Copper at 2 16

a glance 20 5 12 17 14 6 13 15 7 8 9 11 18 10

• 1. Horne smelter • 8. Lomas Bayas • 15. Sable 4 Mt • 2. San José Recycling • 9. Altonorte • 16. Pasar of copper metal and • 3. CCR refinery • 10. Punitaqui • 17. Ernest Henry Mining concentrates sold via • 4. Rhode Island Recycling • 11. Alumbrer a • 18. Mount Isa Mines our marketing business • 5. Antamina • 12. Katanga • 19. CSA Mine • 6. Antapaccay • 13. Mopani • 20. Townsville Copper refinery in 2017 • 7. Collahuasi • 14. Mutanda 1, 310 k t of own-sourced copper KPIs produced in 2017 2017 2016 2015 Fatalities at managed operations 1 13 6 Lost time injury frequency rate (LTIFR) 20 years (per million hours worked) 0.38 0.71 0.51 Total recordable injury frequency rate (TRIFR) average reserve life for (per million hours worked) 2.35 2.89 3.20 our copper assets New occupational disease cases 20 53 34

CO2e Scope 1 (million tonnes) 1.7 1.6 1.6

CO2 Scope 2 – location based (million tonnes) 1.7 1.7 1.5 Total energy use (petajoules) 43 42 45 Water withdrawn (million m3) 372 350 291 Community investment spend ($ million) 37.5 32.2 41. 3 Number of employees and contractors 55,760 44,473 43,782 Proportion of female employees (%) 8% 8% 8%

80 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Safety

Improving safety measures at Katanga Addressing local road safety in the DRC

Our Katanga operation has held workshops to address road safety in the local community. Driving on Kolwezi’s public roads around the Katanga concession, can be hazardous and a number of the mine’s vehicles have been involved in accidents. In November 2017, recognising the risk to employee and community safety, Katanga organised a road safety workshop at a local technical institute for community members. Following an overview of Kolwezi statistics for road incidents (injuries, deaths and damages to property), the participants discussed how to improve pedestrians’ safety as well as their own driving habits. As Katanga in the DRC ramps up to full We share our access points for transport production, the operation has with our contract workforce and with The workshop also highlighted to introduced a number of measures to employees of neighbouring operations. attendees the dangers of drinking and enhance safety measures. Katanga also tests for alcohol all those driving and discussed the risks of using passing through these entrance points overcrowded public transport due to Following the completion of its whole to ensure that they do not expose our its lack of seatbelts and the poor ore leach project and ahead of employees or equipment related risks. maintenance of vehicles. re-starting operations, Katanga implemented several measures to The new system was started in Going forward, Katanga will continue improve safety that focus on plant November and is already delivering to engage with the community on access and addressing the identified some positive results: safety topics. Quarterly initiatives are risks related to onsite alcohol planned with other local • Improved employee punctuality consumption. technical schools. • Additional turnstiles have mitigated During 2017, Katanga installed Increasing road safety awareness previous issues with congestion – 16 new turnstiles to improve access could lead to a reduction in the previously 900 employees took and introduced additional biometric number of vehicle-related accidents in 30 minutes to pass through the controls. These controls include the Kolwezi area, which in turn would turnstiles, now 2,000 can pass automatic alcohol testing and lead to a reduction in injuries, deaths through in 25 minutes fingerprint and badge scanning. and property damage. • Enhanced understanding of Through information sessions, Katanga The Provincial Ministry of employees attendance and has increased awareness of the dangers Infrastructure has recognised and absenteeism relating to alcohol consumption in the praised Katanga’s efforts to workplace as well as informed workers • The alcohol testing automatically encourage a safer community. and their families about the new denies access to ‘positive’ employees approach to alcohol testing. and there has been a significant decrease in positive alcohol The new system automates Katanga’s testing rates requirement of 100% employee participation in alcohol testing, which in • Katanga can track access more turn has allowed the redeployment of reliably onsite security team to other posts, providing the security department with greater functional flexibility.

Glencore Sustainability Report 2017 81 Copper continued

Health

Implementing the World Health Organization’s (WHO) Test and Start programme in Zambia

In Zambia, Mopani is supporting the 90–90–90, ie 90% of people living with The programme’s ‘stable on care’ rollout of the WHO’s Test and Start HIV know their HIV status, 90% of people element supports the transfer of programme that aims to deliver who know their status are receiving stable clients (HIV clients with universal HIV/AIDS counselling and treatment and 90% of people on HIV suppressed viral loads) to the treatment. treatment have a suppressed viral load community. These are both Mopani to enable their immune system to employee and community members. Mopani has collaborated with the remain strong and that they are no American Centre for Disease Control The community volunteers provide longer infectious. (CDC) and launched a new HIV/AIDS high-level care as well as distribute strategy called Test and Start/Stable The Test and Start element of the medicines to the clients’ homes. on Care to reduce congestion in health programme re-trains volunteers in basic The Stable on Care model reduces clinics. Test and Start contributes to counselling and testing as well as congestion at clinics and medical universal HIV testing through early providing them with the tools such as facilities, allowing the clinicians case identification and linkage to electronic tablets for data capture, blood to concentrate on cases that are care and treatment. pressure machines, thermometers, scales more serious. and bicycles. The equipping of the The Test and Start programme To date, we have supported the transfer volunteers enables them to carry out is free of charge and available to all of around 1,600 stable clients to the home visits and reduces the need for community members. community and the management of referrals to medical facilities. This in turn, their treatment in their homes. The programme supports the UNAIDS means community members can focus Fast Track goals for achieving the on other activities, as they do not have to make trips to medical facilities

82 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community

Supporting local socio-economic development in Peru

family and citizenship. Around 7% of the Antapaccay also runs the PLACME dairy local population cannot read, 75% of project to support local milk producers. which are women. The dairy plant, established as a social and productive project, offers Espinar To date, this programme has encouraged dairy producers a fair market for milk over 1,000 people to read and write, 90% from cows. It collects around 17,000 of which are women. In addition to litres of milk each day, via six collection improving literacy skills, the programme routes, from dairy farming communities supports the participants to develop across Espinar. PLACME also runs income-generation projects such as technical training programmes, which animal husbandry, food preparation using Antapaccay is supporting community include courses on improving breeding local supplies, textile production and projects that deliver long-lasting and productivity practices, including vegetable growing. socio-economic benefits. Good Milking Practices (BPO); milk Antapaccay is located in the Espinar The Espinar Specialised Educational hygiene and quality; correct use of province, one of Peru’s poorest regions, Resource Central (CREE) is an educational milking machines; antibiotic where 12% of children under five are programme that gives children and management; and the optimum use malnourished and almost a third of teenagers supplementary education to of cattle feed. develop specific skills and abilities. The homes lack running water. PLACME is one of just eight dairy initiative helps to address the limited plants with HCAP certification in Peru. Antapaccay is supporting a number of available resources of the local This certification guarantees that the projects to encourage a resilient and educational institutions. CREE directly products produced are safe and meet diverse local economy. benefits more than 1,800 students and national standards. PLACME produces 500 teachers per year from local schools. Health and sells cheese, yogurt, butter and Around ten years ago, Antapaccay built The programme also supports students in other dairy products in eight Peruvian and equipped a $3 million hospital in obtaining places at the high performance cities. To celebrate Espinar’s 100-year partnership with local and regional school (COAR) and Espinar now has more anniversary, PLACME made a 370kg government and the Health Ministry. students in the COAR than any other cheese, the largest ever made in Today, the hospital is fully integrated into province in Cusco with the number of the region. students increasing each year. Between the public health network and Since 2013, Antapaccay has spent 2015 and 2017, 55 of the 58 Espinar Antapaccay continues to support and around $30 million to develop the local students admitted to COAR received fund health positions and campaigns. livestock sector, which directly benefits teaching on the CREE programme. over 3,200 people annually. The projects Education The CREE Mobile School, a school on support livestock and agricultural Antapaccay is also involved in a number wheels, allows the CREE programme to development; we give veterinary of programmes designed to improve the reach rural areas. In 2017, it benefited assistance to more than 53,300 skills of the community members living around 1,000 students and nearly 100 animals per year, genetic improvement close to our operations. It is developing parents at 15 rural schools. The mobile programmes for cattle and sheep, the technical and industrial capabilities school is helping to close the academic water canals, agricultural campaigns, of young people to improve their gap between urban and rural schools. infrastructure, care for veterinary employment options and to promote emergencies and more. entrepreneurship and self-employment. Agriculture In 2017, 1,040 young people received Antapaccay is collaborating with local technical training in cooking, textiles, farmers and other organisations to improve heavy equipment mechanics, local agricultural practices. It is supporting agriculture, business entrepreneurship, alpaca and sheep breeders through the design and artisanal skills. Fiber and Wool Plant (FILASAC). FILASAC The operation also supports the offers local breeders fair market prices, Education for a New Life programme, as well as product collections with the which targets a reduction in illiteracy option of free mechanical shearing, and builds communication and basic training programmes and technical maths skills through topics involving advice. This plant is also articulating food, healthcare, production, work, with the local artisans.

Glencore Sustainability Report 2017 83 Copper continued

Community

Building capacity within the local Developing local community in Zambia procurement in the DRC

In Zambia, Mopani is strengthening standards, with a goal of promoting the capacity of local contractors and sustainable mining and enhanced young people around its mining towns safety standards. through the training it offers at its As a further step to build the capacity state-of-the art training centre. of local suppliers and contractors, Mopani has invested in excess of Mopani has adopted an ‘equal business $21 million to set up the ultra-modern opportunities for all’ policy. This Mopani Central Training Centre (MCTC), approach reserves certain businesses which runs programmes for mining and for vulnerable groups of society such as engineering artisans. Mopani fully the aged and physically challenged. sponsors the school leavers enrolling Mopani is using these businesses for the for the technical education, vocational provision of sand, bamboo and silica. and entrepreneurship training As an example, the silica orders are authority-accredited craft certificates. valued at more than $10,000 per order In the DRC, Katanga is working with This sponsorship covers costs for and Mopani makes an average local authorities to support and accommodation, meals and learning of six orders per month. Mopani rotates promote local employment and materials. Students also receive a the orders it places to support equal procurement through funding monthly allowance and are likely to business opportunity and distribution. infrastructure improvement projects. get jobs within Mopani on completion Mopani has also established a local of their training. In the DRC, as is common in many enterprise development designation other commodity-producing In 2016, as part of the MCTC, Mopani to further its collaboration with the countries, the role of mining sector constructed an academy for contractors, Zambia Development Agency, Citizens’ in supporting and advancing local the Sustainability Development Economic Empowerment Commission, procurement and economic Academy (SDA) at a cost of over other government agencies and donor diversification is a dominant topic in $600,000. The academy enhances the agencies to build on available the resource management discussion. capacities of local contractors and opportunities for capacity building facilitates the transfer of skills and within local businesses. Katanga is located in the Kolwezi knowledge. The SDA aligns its different region, where local authorities are keen programmes with Zambia’s mining to develop small and medium-sized regulations as well as with international enterprises and see Katanga, as being a key player in the delivery of this ambition. Katanga is working with the local authorities to support and promote local facilities, procurement and job opportunities. During 2017, Katanga undertook a number of consultation sessions in its local communities with representatives from civil society, including churches, NGOs, schools and youth movements, women’s associations and agriculture cooperatives, to identify projects to develop local procurement and skills. Following the consultation process, Katanga identified a number of projects including: • Repairing and equipping of four schools, including the provision of 600 desks and computer equipment, and a community centre that benefits 1.800 people

84 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community

Developing local Providing alternatives to artisanal procurement in the DRC mining in the DRC

• Repairing of three wards, with a capacity of 108 beds, and a pharmacy at the local Mwangeji Hospital • Building and equipping a health centre and repairing and providing medical equipment for another two • Drilling four community wells. Katanga is employing local contractors and suppliers on all of the projects. We are working these local businesses to help them to deliver the projects while adhering to international safety procedures and construction standards as well as to Glencore’s SafeWork. Katanga’s safety team are delivering safety inductions and providing PPE Our Katanga and Mutanda copper a wide range of activities, such as (personal protection equipment) to operations in the DRC are supporting theatre, drawing, music, scouts as well as the contractors’ employees. We are holiday camps for school children and discussions on the risks of ASM and also giving regular talks on SafeWork. agricultural initiatives to deter the the importance of education. Attendees participation of women and children in receive a meal each day. At the end Our engineering department have artisanal mining activities. of the camps, a ceremony, attended carried out a number of inspections at by representatives from the local In the region where our Katanga and the projects’ sites and are working with authorities and community leaders, Mutanda copper operations operate, the contracting companies to address demonstrates the activities undertaken there are limited employment any gaps in construction standards. by the children and each child receives opportunities outside of mining. This a school uniform. has led to local communities members seeing artisanal and small-scale mining During the holiday camps, we noted (ASM) as an income opportunity. an increased number of children not accessing artisanal mines and once ASM is informal and those undertaking school resumed, pupil attendance the activities are not employed by increased. a mining company. Instead, they work independently using their own To encourage greater attendance at the resources or are members of artisanal holiday camp, we inter-link them with cooperatives. Many prefer ASM to economic diversification projects agriculture, as it is more profitable delivered by local cooperatives. The with higher profits gained over a projects include those focused on shorter period. Generally, artisanal agriculture (livestock, bee-keeping, dairy mining is most likely to involve and the production of, jam, juices and women and children. flour), welding, carpentry and catering. In recent years, Katanga and Mutanda In 2017, these projects supported over have noted an increased number of 4,000 people and provided training and children engaging in ASM activities business development and support. during school holidays. The operations Local dependency on artisanal mining is have established holiday camps as an reducing through creating and alternative to ASM. sustaining sustainable alternative livelihoods. In addition, increased Katanga and Mutanda work with local household revenue is available for NGOs and churches to deliver the the payment of school fees. holiday camps. During June to August 2017, over 7,200 children participated in

Glencore Sustainability Report 2017 85 Copper continued

Community

Addressing malaria in the DRC

In the DRC, the public health and In 2017, Mutanda joined the IRS effective against the anopheles community departments of our programme, enabling the targeted area mosquito. The studies also investigate Katanga and Mutanda operations have to be expanded. Together, Katanga and mosquito volumes in the targeted areas. a comprehensive control programme Mutanda sprayed around 20,000 houses, The chemicals used align with World to reduce the impact of malaria on 90% of the households targeted, and Health Organization Guidelines. their workforce and within their local provided protection to over 115,000 The activities undertaken are communities. people. significantly reducing the number of Katanga and Mutanda are located in the In 2017, larvae control measures focussed malaria cases. By the end of 2016, the Lualaba province, one of the DRC’s most on stagnant water within the operational incidence rate dropped to 246.47 cases urbanised and with a rapidly growing site and its surrounding communities. per 1,000 people and in 2017, it fell population. In the region, malaria is the This was in addition to the existing control further to 54.62 cases per 1,000 people. number one reason for out-patient programme. The improvement has also reduced the hospital attendance and admissions, burden that malaria places on our Insecticide treated nets are available for accounting for up to 40% of admissions. employees and local communities as at-risk groups, which include pregnant well as reducing sick days for employees Malaria has devastating impacts on women and children under five years. and school children. communities and incomes due to the The programme drew on experiences burden of caring for those affected by and learnings from a similar programme Katanga and Mutanda recognise that the disease and an increased mortality at our Mopani operation in Zambia. a collaborative, multi-sectoral approach rate. We have seen that investment in is key in the fight against malaria. Their During 2017, local community malaria malaria reduces poverty in local programmes are being delivered in awareness sessions were held. All of communities. partnership with the Ministry of Health, Katanga’s employees also participate in local authorities and a local radio station In Kolwezi, the town closest to Katanga, malaria transmission and control as well as with support from local the malaria incidence rate had been awareness sessions. Katanga is funding an community leaders. increasing annually. In 2012, there were intermittent presumptive treatment, 417.25 cases per 1,000 people increasing which supports the prevention of malaria Going forward, Katanga and Mutanda in 2015 to 449.26 cases per 1,000 people. during pregnancy through proper are continuing the programmes and Our workforce experienced increasing diagnosis and effective treatment. are on track to meet their ambition of absences from work due to malaria and reducing the local malaria incidence Entomological studies are being local spending to combat malaria was rate by 50% on a 2015 baseline supported as part of the IRS programme. rising year-on-year. (449.26/1000 population) by 2020 and This research provides a better to achieve a 100% reduction on In 2016, in light of these alarming trends, understanding of chemicals most mortality due to malaria. Katanga made the decision to revamp its malaria control programme. The programme had a number of key initiatives, including indoor residual spraying (IRS), education and research. The IRS programme arranges training for spray operators on the safe handling, application, storage and disposal of insecticides in the field, as well as the importance of wearing full personal protective equipment at all times. During 2016, Katanga sprayed over 12,000 houses, 91% of the households targeted, providing protection against malaria to over 80,000 people.

86 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community

Rebuilding the DRC’s power infrastructure Operating as part of the community at Mount Isa Mines We are supporting a national technical and engineering programme At Mount Isa Mines, we work with our effort to improve the DRC’s power as well as overseeing the associated local community to manage our infrastructure through our support for procurement. operational footprint. a public-private partnership that will The work is due to be completed in Mount Isa Mines (MIM) is one of deliver power to under-served early 2019, aligning with a World Bank Australia’s largest and most complex communities. project to upgrade the high-voltage industrial assets with a nearby local When we arrived in the DRC in 2008, distribution network allowing the community of over 22,000 residents. the country was emerging from many national power corporation, SNEL, to We take a continuous improvement years of civil conflict, which had resulted expand electricity access in unserved approach to managing MIM, in its power infrastructure being and poorly-served areas. implementing technical and under-funded. Our partnership with the government engineering advancements to improve We recognised that we needed to take and SNEL is building the infrastructure operating procedures and utilising a strategic approach to the energy needed to support the government’s monitoring to minimise the impact needs of our assets and that we had ambition of universal electricity access of our activities on the community. a role to play in the rebuilding of the through a stable countrywide power Since 2003, we have invested in excess DRC’s national grid. Our approach led supply. All of the generated power will of $500 million in environmental to the development of a public-private feed into the national grid, from which expenditure and significantly improved partnership between Glencore, through our assets draw their power our environmental performance. Today, our interests in the Katanga and requirements. MIM’s 32,000 hectare lease is governed Mutanda copper assets, and the We meet the energy needs of our by more than 80 separate permits, government on a $400 million assets in the DRC through power and we maintain a stringent and commitment towards the supply agreements with SNEL, which transparent reporting programme refurbishment of the DRC’s power delivers energy produced from with key stakeholders. infrastructure. We engaged an hydroelectric sources. engineering firm and initiated a We are committed to ensuring our community benefits from the success of our operations, and working in partnership with local community groups to build a strong and sustainable region. MIM invests around AUD2 million every year in events, projects and initiatives to create opportunities and improve health, education and employment outcomes for its local communities, with a focus on supporting vulnerable populations and building capacity within disadvantaged groups. Similarly, as the primary local employer, MIM’s employees are also members of the Mount Isa community. We prioritise their safety, champion a positive workplace culture that recognises the critical role our employees play in our success, and make smart business decisions to build and maintain employment stability and security. Mount Isa Mines has almost a century of successful coexistence alongside the city of Mount Isa.

Glencore Sustainability Report 2017 87 Ferroalloys

We deal in bulk and noble ferroalloys. Bulk ferroalloys include ferrochrome and chrome ore, ferromanganese, silicon manganese, manganese ore, and ferrosilicon. Noble ferroalloys include vanadium and molybdenum products. We are one of the world’s largest and lowest cost integrated ferrochrome producers and one of the largest producers of primary vanadium.

Metals and

minerals 2 Ferroalloys at a glance 11 12 13 14 3 15 16 4 5 6 7 17 8 9 10

• 1. Glencore Manganese Norway* • 8. Waterval mine • 14. Lydenburg smelter 1, 531 k t • 2. Glencore Manganese France* • 9. Kroondal mine • 15. Helena mine ferrochrome mined • 3. Rhovan • 10. Wonderkop mine • 16. Magareng mine • 4. Boshoek smelter • 11. Mototolo mine • 17. Chartec • 5. Boshoek mine • 12. Lion smelter • 6. Rietvlei mine • 13. Thorncliffe mine 20.9 mlb • 7. Rustenburg smelter of vanadium produced from our own sources * Divested in February 2018 in 2017 KPIs 2017 2016 2015 32 koz Fatalities at managed operations 2 1 1 of platinum produced Lost time injury frequency rate (LTIFR) (per million hours worked) 1.05 1.14 1.24 from our own sources Total recordable injury frequency rate (TRIFR) in 2017 (per million hours worked) 3.51 3.89 4.13 New occupational disease cases 4 6 1 45 koz CO2e Scope 1 (million tonnes) 4.5 4.4 4.5 CO2 Scope 2 – location based (million tonnes) 6.7 6.7 6.6 of palladium produced Total energy use (petajoules) 34 31 31 from our own sources Water withdrawn (million m3) 19 19 21 in 2017 Community investment spend ($ million) 4.0 3.3 3.5 Number of employees and contractors 13,533 18,867 17,401 Proportion of female employees (%) 17% 16% 15%

88 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Safety

Trialling collision avoidance technology Encouraging safety in the workplace

Mototolo mine’s latest safety initiative is based on the belief that keeping your family foremost in your thoughts, drives safe behaviour at work. This campaign started when we decided to include our families in our safety efforts,” says Daniel Mohapi, Mototolo’s Mine Manager. “We called this campaign the Lunch Box campaign whereby our employees’ family members submitted entries on how important we are to them and why we should work safely. We awarded prizes to those who entered.” Some of the entries included: “We need you”, “We love you more than rainbows” and “You help me to ride my bicycle”. “We wanted to remind our employees that we all have loved ones at home,” Our ferroalloys business has worked Following the implementation of a says Daniel, “and they are waiting for with equipment manufacturers to revised enforcement and management us to return to them safely at the end develop technology that automatically programme that focused on employees’ of every day.” stops vehicles if pedestrians enter interactions, we saw a 67% reduction in Mototolo’s Lebowa shaft rolled out this the ‘danger zone’. critical proximity events during 2017. campaign as part of a wider safety In recent years, our ferroalloys business We have equipped our primary movers programme our ferroalloys business experienced two fatalities that resulted (high-risk vehicles) with collision is implementing at its operations. from incidents involving vehicles. The avoidance technology and are in the Susan Visser, Director of Sustainable business took the decision to investigate process of installing this technology to Development said, “safety should be technology that would automatically our secondary movers (low-risk vehicles). such an integrated part of the way stop vehicles if a pedestrian enters the Following recommendations from the that we live and respond at work and ‘danger zone’, that is within a five metre equipment manufacturers, we are also at home, that we automatically take zone around the vehicle. making additional improvements to the safe decision or action. We enhance maintenance efficiencies. As a first step, the ferroalloys team should all live according to the wanted to improve traffic management The steps that we have taken included “I own safety” motto”. and associated procedures to reduce a non-negotiable implementation Ferroalloys issued all employees with the amount of unplanned interactions strategy. This strategy requires: a bandanna emblazoned with the between pedestrians and vehicles. • Every vehicle to stop when its danger motto “I own safety” to further drive Following intensive trials and testing at zone is breached by a pedestrian this message home. our Waterval East Chrome Mine in South • Managers engage with employees Africa, we selected a service provider to that record excessive interactions equip the entire fleet at Waterval with monitoring equipment. This allowed us Following the implementation of these to record actual interactions between measures, we have seen a clear change vehicles and pedestrians. Our initial in employee behaviour, which has findings showed that our traffic resulted in decreased collision-related management and related initiatives risk incidents and an improved were inefficient; the trial also identified workplace safety performance. opportunities for improvement.

Glencore Sustainability Report 2017 89 Ferroalloys continued

Safety Community

Improving safety at Lydenburg Smelter Building the Bethanie Clinic

Our South African Rhovan vanadium mine is located in an impoverished region, where the unemployment rate is at 25% and over 12% of people are aged over 60 years. Many rely on government grants for survival. Rhovan sources around 80% of its labour from five communities with a combined population of over 17,000 people. Rhovan is the main employer and local economic driver in the region. Prior to 2016, one, run-down medical facility, staffed by three nurses serviced the five local communities. There were no maternity services and mothers-to- be had to travel 30-50 kilometres to the nearest regional hospitals. During scheduled community Our Lydenburg Smelter has introduced safety walkabouts that address meetings, the local Traditional Council an inclusive multi-pronged approach minimum standards and learnings from approached Rhovan and requested its towards improving safety HPRIs. This approach has resulted in assistance to build a bigger, better- performance. greater cooperation across all levels. equipped clinic. Rhovan initiated a From 2009 to 2016, Lydenburg Smelter The steps taken have led to improved consultation process that involved the recorded an annual disabling injury cooperation on safety matters, increased Department of Health and local severity rate (DISR) that ranged between knowledge sharing and employees government representatives. Several 42 and 200 and an average total feeling responsible and empowered to meetings were also held with Bakwena recordable injury frequency rate (TRIFR) create and maintain a safe workplace. Ba Mogopa Traditional Council. of 4.5 – this compared to Glencore’s The Council represent the community. This comprehensive, inclusive and 2016 DISR of 94 and TRIFR of 3.72. The area were the clinic was built was multi-pronged approach is resulting provided by the traditional leadership. During its annual strategy session, the in a steady increase in safety and management team decided to take environmental awareness while The engagement process concluded drastic action to turnaround these productivity and workplace morale has with Rhovan adopting the safety performance rates. also significantly improved. In 2017, the refurbishment of the Bethanie Clinic. DISR and TRIFR rates were 100% and The team introduced a number of Rhovan employed a local construction 77% improvements respectively on initiatives to improve communication company to build the clinic. During the 2009 rates (falling to zero and 1.36 and increase the sharing of ideas. The construction process, the Department respectively) and Lydenburg Smelter safety initiatives included the of Health made frequent inspections has not recorded a lost time injury implementation of the SafeWork to confirm the building of the clinic for over one year. programme, safety drives and frequent was in accordance with its specific innovative safety campaigns, which have requirement. During 2017, Rhovan captured the attention of employees handed over the ZAR24 million clinic and their families. Working safe has to the Department of Health for its become part of the operating culture at operations. Today, the clinic employs Lydenburg Smelter. 20 permanent staff. Lydenburg introduced a participative This newly built, state-of-the-art management approach, which involves community clinic accommodates up management representatives being to 3,500 people per month. Its services present in operational areas and include maternity, casualty and general involved in procedural decisions. The wards as well as facilities for HIV/Aids management team also lead weekly and TB testing and treatment.

90 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community Environment

Supporting community Reducing emissions and energy costs development

Our Lydenburg Smelter’s community We are using waste carbon monoxide During the normal operational process, development initiatives focus on gas to generate electricity, reducing CO gas is flared turning it into carbon

education and training, healthcare, emission and delivering costs savings. dioxide (CO2), which is vented into the infrastructure development and arts atmosphere. A portion of the CO gas In South Africa, our ferroalloys smelters and culture and include: now becomes a fuel source through its are large consumers of power and large combustion in the internal combustion In 2012, Lydenburg Smelter donated emitters of emissions. Domestic energy engines, which in turn generates power. ZAR8 million towards the construction costs are rising and the South African of a multi-purpose community centre government is considering a carbon tax The Boshoek Smelter’s CO-generation to serve the nearby Mashishing scheme. Our ferroalloys business has plant has 13 gas engines with an community. The South African explored options to mitigate the impact installed generation capacity of 9.1 MWe. government developed the concept of electricity prices and the potential Gas is transported from the furnaces via multi-purpose community centres to carbon tax have on operating costs. a pipeline to the CO-generation plant. In simplify access to essential government the plant, the gas is conditioned before The team have investigated utilising the services in outlying communities. its combustion in the engines. chemical energy contained in the Prior to the construction of the centre, carbon monoxide (CO) excess gas During 2017, the plant commissioned Mashishing residents had to commute generated during ferrochrome and all engines completed testing on 100 kilometres to the town of Nelspruit production in the closed furnaces at the efficiency for gas quality. to access similar services. Boshoek Smelter. This project has established a process At the centre, the local community can The ideas explored included using the to utilise excess CO gas that generates make applications for birth certificates gas as a carbon source to aid the growth electrical power. The generated and identity documents as well as of oil rich algae that can become biofuel, electricity is consumed onsite and apply for social grants. The community converting the gas to a liquid fuel as well further prevents the emission of centre also hosts a library and an early as generating electricity through the additional greenhouse gases. childhood development centre. It offers combustion. Boshoek is now looking to streamline services to about 120,000 people. Following various trials, the ferroalloys the process, to enable it to double A community project hosted by the team identified the combustion of gas generation capacity and help to adapt centre and supported by the in an internal combustion engine to the technology for installation at the Lydenburg Smelter is the 2enable drive a generator as the most effective Lion and Lydenburg Smelters. programme, available in the centre’s use of the waste gas. This led to the The completion of the optimisation digital and music hub. Tshomarelo (To save) project, a of the CO-generation plant and its full CO-generation initiative. operating capacity is targeted for The 2enable programme is a digital the end of 2018. educational platform with content and lessons aligned to the schools’ syllabus. It provides learning support for subjects such as mathematics, science, English, accounting and music theory. The digital hub also provides a much- needed facility for local children to do their homework and access wifi under supervision. The learners are also able to develop and pursue their musical interest in the digital and music hub through a music academy established in conjunction with Casterbridge Music Development Academy. Participation in music can contribute to learning ability and the music academy students have shown progress in their school work as well as positive behavioural changes.

Glencore Sustainability Report 2017 91 Nickel

We are a leading global nickel producer and trader. We deal in metal, concentrates, intermediates and ferronickel, as well as producing associated by-products such as copper, precious metals and platinum metals.

3 Metals and minerals

Nickel at 2

a glance 4

5 6

• 1. Raglan Mine – Onaping Depth (project) 204 kt • 2. Sudbury Integrated – Nickel Rim Depth (project) of nickel sold via our Nickel Operations • 3. Nikkelverk marketing business – Sudbury smelter • 4. Kabanga (project) in 2017 – Nickel Rim South mine • 5. Murrin Murrin – Fraser mine • 6. Koniambo Nickel 10 9 .1 k t of nickel produced at our own assets in 2017 KPIs 2017 2016 2015 Fatalities at managed operations 0 0 1 18 years Lost time injury frequency rate (LTIFR) (per million hours worked) 1.34 1.11 1.15 average reserve life Total recordable injury frequency rate (TRIFR) for our nickel assets (per million hours worked) 4.57 6.23 6.59 New occupational disease cases 0 0 1

CO2e Scope 1 (million tonnes) 2.4 2.3 1.8

CO2 Scope 2 – location based (million tonnes) 0.04 0.04 0.05 Total energy use (petajoules) 28 31 25 Water withdrawn (million m3) 117 107 69 Community investment spend ($ million) 1.6 1.0 3.5 Number of employees and contractors 6,657 6,402 6,515 Proportion of female employees (%) 15% 15% 16%

92 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Safety

Encouraging a culture of prevention to improve safety performance

Through establishing a proactive • Identification and assessment of A positive safety deviant is a leader approach to reporting and identifying hazards – as Raglan Mine is a fly-in, within his or her team who integrates hazards as well as implementing a fly-out site, its workforce not only prevention into everyday behaviours and robust process for workplace risk works, but also lives on site and hazard who motivates colleagues to do the management, our Raglan Mine has identification goes beyond those same. He or she questions the “usual developed a strong culture of on a typical mining environment way of doing things” by challenging the prevention that is improving status quo and seizing new opportunities • Risk assessments – the assessments its safety performance. to improve prevention processes. rank hazards according to their level Charles Levac, Manager, Risk, Prevention of risk as well as identifying effective As part of its Tamatumani programme, and Environment, says, “A prevention controls to eliminate or reduce the risk which supports and promotes Inuit culture goes hand-in-hand with employment, Raglan Mine launched the • Reporting – by establishing a reporting the level of reporting, risk identification Golden Glove Award in 2017. The award culture employees have the and analysis, and recognition. We recognises Inuit apprentices who confidence to report safety incidents continuously encourage our employees demonstrate exemplary behaviour with the knowledge that submitted and contractors to report incidents and towards the prevention of hand and information will be acted upon hazardous conditions and take actions, finger injuries – the most common so we can learn and improve the safety • Good prevention practices utilise recordable injury that takes place of our working environment. We expect the findings of risk assessments at the operation. employees and contractors to be more to put in place measures to eliminate Together, these initiatives have than involved; we expect them to be or mitigate risks and improve contributed to a significant improvement engaged every day to foster a sustainable work practices in Raglan Mine’s safety performance. safety culture for themselves, their In 2017, Raglan Mine launched the In 2017, Total Recordable Injury colleagues and their families.” Positive Safety Deviant – a monthly Frequency Rate (TRIFR) of 1.92 was Recognising that all employees have employee recognition initiative a 44% reduction versus their 2016 a role in driving safety performance, designed to foster and maintain performance of 3.42 and 18% better Raglan Mine has identified key a strong safety culture. than their target of 2.35. performance indicators to assess and strengthen their prevention culture:

Glencore Sustainability Report 2017 93 Nickel continued

Safety

Recognition for Improving safety performance through visible outstanding safety management, setting safety standards and training performance In Canada, our Fraser Mine was recognised during 2017 for its outstanding safety performance with an industry award. During 2017, Fraser Mine, part of our Sudbury Integrated Nickel Operations, received the 2016 John T. Ryan Regional Safety Award in the Metal Mine category for the province of Ontario – the first time Fraser Mine has received this trophy. The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) is a technical society of professionals with over 14,600 members from industry, academia and government. CIM makes several awards annually to individuals for their outstanding achievements and contributions to their respective fields and to the mining and minerals industries in general. CIM’s John T. Ryan Safety Trophy is an award of excellence that recognises In Norway, the Nikkelverk refinery and practical skills, such as working the Canadian mine that records the recorded a Total Recordable Injury on ladders and scaffolding and how lowest accident frequency during the Frequency Rate (TRIFR) of 7.66 in 2017, to work in confined spaces, and previous year. beating a target of 10.00 and delivering emphasised the hazards associated with a 50% year-over-year decrease on certain tasks and when using particular Gary Potts, Director, Fraser Mine, said, 15.34 in 2016. tools or equipment. “it is with great pleasure and pride that I say, ‘congratulations!’ Safety is Nikkelverk delivered this significant Going forward, Nikkelverk’s safety something we all need to work on safety improvement through focusing initiatives will include: on three key areas: visible management, relentlessly to continuously improve. • A continued focus on strengthening setting safety standards and training. While we all acknowledge that there the safety culture through visible is more work to be done to achieve Visible management requires management, positive reinforcement, zero harm, this award serves as a great operational leaders to visibly layered audits and coaching testament to the efforts of employees demonstrate a commitment to • The ongoing implementation of to minimise risk in the workplace. safety, act as role models and clearly Glencore’s fatal hazard protocols “Enterprise Risk Management tools communicate their expectations for such as the pre-task assessments, safety. It requires leaders to engage with • The construction of a safety training adherence to defined standards and the workforce to encourage safe work centre practices and the sharing of learnings as procedures and improvements to the • The further digitalisation of safety well as using positive reinforcement with workplace have all been instrumental systems, including further employees and contractors. in driving Fraser Mine’s safety development of an existing app performance. I have no doubt we Hand injuries at Nikkelverk comprised used to register and track hazardous will continue to see improvements more than half of all recordable injuries conditions, high-potential risk in our safety culture and statistics.” at the site and the site addressed this incidents and accidents risk with a renewed focus. • Carrying out a comprehensive risk Several training sessions, delivered by assessment related to health and experienced professionals, were held occupational hygiene to increase workforce competency. The training sessions focused on basic

94 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Environment

Transitioning to a Future proofing our mines by going electric more cost and energy efficient process The Nikkelverk refinery recently completed the decades-long transition of wire anodes used in the electrowinning process to refine nickel to box anodes, reducing energy costs and increasing production efficiency. Nikkelverk refines nickel using the electrowinning process. In electrowinning, a current passes from the anode through a liquid leach solution, extracting and depositing the metal onto a cathode. Nikkelverk has been transitioning its electrowinning process from wire to box anodes since 1998. The advantage of box anodes over the wire anodes is that they use around 15% less energy At our Sudbury Integrated Nickel the carcinogenic properties of diesel and distribute the flow of current more Operations (INO) in Canada, we exhaust emissions. In the wake of these evenly through the solution. Energy are developing deposits that once studies, regulatory bodies are reviewing efficiency helps to reduce costs while operational will be wholly operated exposure limits with a view to introduce the more even current flow provides with battery electric-powered a significant reduction. vehicles (EVs). for a better quality cathode as it EVs have no emissions, resulting in less causes a smoother surface – a feature At 2,600m deep, a major portion pollutants, they are quieter to operate customers have identified as of the operating costs for the mine and experience less wear and tear and important. In addition, the equipment infrastructure at our Onaping have lower maintenance needs due to used in the process experience less Depth project is the ventilation and their simpler machinery. Using EVs, wear and tear, minimising production refrigeration that is required to eliminate Sudbury INO’s new mines will reduce air stops and making the process less exhaust contaminants and heat and (SO2, NOx and diesel particulate matter) labour intensive for operators. to maintain reasonable temperatures. and greenhouse gas emissions and The electrowinning tanks contain We anticipate that the new mine will deliver considerable cost savings thousands of anodes. The first start producing in 2022–23 and is through reduced fuel and energy usage. designed for EVs. 4,000 box anodes started production Sudbury INO will also make substantial in 1998, with an additional 1,000 box Currently, Sudbury INO anticipates that cost savings during construction and anodes installed annually until 2014, the introduction of EVs will require no operations. At Onaping Depth, the when installation increased to 3,000 significant changes to the mine access reduced size and number of ventilation box anodes per year. In mid-2017, the and design although significant changes openings will save CAD$24 million as replacement process completed, in the mine logistics and operating well as an estimated operating savings enhancing Nikkelverk’s position philosophy will be required to deliver of CAD$8 million per annum from as the most technologically advanced charging sites and equipment duty reduced energy usage. refinery in the world and one of cycles. Onaping Depth will significantly Glencore is currently working with the the lowest cost refineries in the reduce the scope for its ventilation Canadian Mining Innovation Council western world. systems compared to those for an and Global Mining Standards Group equivalent diesel-fuelled operation. The Norwegian National Energy to develop guidelines and standards Agency recognised Nikkelverk’s Previously, diesel was the preferred for the use of EVs underground. We are energy stewardship. Nikkelverk has fuel in the mining sector due to its also working with our peers through also received ISO 50001 – Energy availability, efficiency and energy density. the International Council on Metals and Management certification for their In addition to the known costs Minerals to support innovation forums energy management systems and associated with mitigating emissions that are targeting the reduction and efficiency activities, which included and heat emitted by diesel-fuelled removal of diesel emissions from mining. the box anodes. vehicles, recent studies have confirmed

Glencore Sustainability Report 2017 95 Nickel continued

Community

Sudbury INO celebrates the opening of the Indigenous Sharing and Learning Centre

Enhancing Indigenous education The ISLC builds awareness for non- Shelly Moore-Frappier, the director through creating a venue that brings Indigenous people as well as capacity of the ISLC said. “I want it to be a place people together to promote a better in the Indigenous communities that can where they can call it their own; a place understanding of Indigenous peoples, lead to a much greater role in the where they’re able to gather and history, cultures and traditions. Sudbury extractives industry. celebrate; a place where they can grieve, if they have to.” In 2017, Laurentian University’s “This is a significant day for many of us,” Indigenous Sharing and Learning stated Peter Xavier, Vice President, The ISLC features 7,500 square feet Centre (ISLC) officially opened, Sudbury INO, during the official opening of space and was designed with input bringing together students, faculty, ceremony of the ISLC. “When we were from the Indigenous community staff and the community to enhance made aware of this project back in 2010, including the Laurentian University indigenous education. it was an easy decision for us to support Native Education Council, which was this vision of creating a centre of instrumental in advocating and Our Sudbury Integrated Nickel knowledge sharing within the university supporting its development. The Operations (INO) was a major donor for as it focuses on several key areas such as spectacular round-room, inspired by the ISLC and its contribution reflects its education, capacity building and the wigwam, has four entry points that support for the Truth and Reconciliation Indigenous cultures. This vision has now face each of the compass points and process for indigenous persons in become a reality. I’m looking forward to is equipped with a state-of-the-art Canada. hearing how this Centre benefits the multi-media system. youth in the years to come.”

96 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Supporting women Developing our workforce in our workforce

Koniambo Nickel SAS, a joint venture between Société Minière du Sud Pacific (SMSP) and Glencore Nickel, is located in the North Province of New Caledonia, an Australasian island. Koniambo Nickel actively supports and encourages its employees to be personally involved in a number of community initiatives. The first partnership that Glencore New Caledonia, as a core shareholder of Koniambo Nickel, entered into was a three-year partnership agreement with the Kanak Culture Development Agency to support cultural initiatives. Koniambo Nickel also works to address social problems that affect its workforce. It has a significant ratio of women on staff compared to other industrial operations. In 2017, 30% of the site’s staff were women, occupying 40% of operational roles. Koniambo Nickel is proud of this characteristic, but recognise the context surrounding women in New Caledonia. According to one study, acts of physical or sexual violence occur four to five times more Our Norwegian refinery, Nikkelverk, job and talk about those improvements. frequently in New Caledonia than in has been recognised for its This provides opportunities to share France, and 9% of women there have commitment to vocational education. knowledge and learning at individual, team and organisational levels. It also suffered rape or attempted rape in In 2017, Nikkelverk received the 2016 creates a strong sense of ownership their lifetime. Agdering Competence Award for its and commitment among the employees efforts in vocational education through Since 2012, Koniambo Nickel has been of the enterprise, providing a meaningful focusing on building competence supporting the Domestic Violence and job every day. Women’s Association. The Association capacity, business management, learning, organises events to highlight spousal sharing experiences and networking This approach to knowledge sharing abuse and domestic violence. across industries and sectors. has resulted in some major achievements. Recently Nikkelverk Koniambo Nickel supports its female Agdering recognised Nikkelverk’s developed a process for copper employees who require the assistance commitment to develop strategic electrolysis that sets a new standard provided by women’s organisations. competence capacity in their workforce, for energy consumption, and Koniambo Nickel participates in global noting “Nikkelverk has gradually gone will contribute to CO reduction. events that promote women’s from being viewed as a traditional 2 awareness, such as ‘Orange the World’ industrial workplace to being perceived “This award recognises the 550 and the United Nation’s World Women’s as an active education business today. employees who produce probably the Day. The site promotes awareness The company is one of the largest purest nickel in the world,” said Øivind raising messages and in 2017 invited contributors to vocational education Stenstad, Managing Director, Nikkelverk. the North Province’s Women’s Condition and training in the region.” “Increasingly, we are being recognised Service to run workshops onsite. for the way we do business; this most Nikkelverk’s Business System is a recent award speaks to our commitment Onsite security measures are important systematic and structured work to vocational education to develop for all employees and particularly methodology that covers all work strategic competencies in our people.” women to feel at ease while working functions. It places expectations on for Koniambo Nickel. employees to do their jobs, improve the

Glencore Sustainability Report 2017 97 Nickel continued

Community

Raising the profile of the Northern Goldfields region Participating in multi- stakeholder engagement

In the Northern Goldfields region of 30 heritage and geological Western Australia, our Murrin Murrin significance sites operation established the Minara • Grants for the Gwalia Museum for its Community Foundation (MCF) in 2007 exhibitions on the people and places to contribute to the long-term benefit of historic Gwalia of the people in the region. Elaine Labuschagne, Manager of The MCF creates long-term benefits for Economics and Heritage Services for the people in the northern Goldfields local government, said: “We are trying to region of Western Australia, particularly develop different tourism products so those communities near our Murrin there is more than one aspect available Murrin operation. The MCF focuses on for people to see in town. There is so economic, social, cultural and heritage much to see and do in Leonora and our development, through providing whole aim with this project is to try to financial assistance in the form of offer visitors more and encourage them community grants to local groups. to stay longer.” This support has included a series of The MCF has also supported major grants linked to regional tourism regional community events such as strategies in the northern Goldfields: the Leonora Golden Gift, a nationally • The Goldfields Tourism Network recognised athletic carnival and the Association to develop the Golden Goldfields Cyclassic, a historic cycle Quest Discovery Trail, a 965km race dating back to 1928. regional trail of diverse landscapes, Jim Epis, CEO, Shire of Leonora rich in history and heritage said, “The continued support offered • The preservation of heritage by the MCF is not only appreciated by collections of aboriginal artefacts the Shire of Leonora, but the whole at the Great Beyond Visitor Centre, community and ensures the success a regional museum of the Leonora Golden Gift. MCF has contributed to many successful projects • The development of Heritage and We hosted an independent developed over a number of years.” Geotrails, trails that incorporate multi-stakeholder group at our Raglan Mine to promote a better understanding of the challenges that arise from operating in a remote location. During 2017, our Raglan Mine in northern Quebec, hosted a Community of Interest (COI) Advisory Panel. The COI Advisory Panel is an independent, multi-stakeholder group organised by the Mining Association of Canada (MAC) and made up of representatives from aboriginal groups, local community members from mining regions, environmental and social NGOs and labour and financial organisations.

98 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community

Participating in multi- Extending Raglan Mine in community partnership stakeholder engagement

Working alongside its members, MAC promotes the industry nationally and internationally, engages with governments on policies affecting the sector and educates the public on the value mining brings to Canadians. In 2000, MAC introduced Toward Sustainable Mining (TSM) to demonstrate its commitment to responsible mining. TSM is a set of tools and indicators to drive performance and the responsible management of mining risks. MAC established the COI Advisory Panel in 2004 to advise on the design and implementation of TSM and to provide a platform for two-way dialogue between MAC and civil society. During the COI Advisory Panel’s visit, it examined Raglan Mine’s practices and gained a greater perspective on Our Raglan Mine in northern stakeholder engagement led to the the numerous challenges the mine faces Quebec, has worked with local formation of the Sivumut committee, from operating in a remote region of Inuit communities to secure its a team of representatives from the local the country. The COI Advisory Panel long-term future. communities of Salluit and Kangiqsujuaq, the Makivik Corporation provided insightful feedback on Raglan In 1995, Raglan Mine and five Inuit as well as Raglan Mine. During the year, Mine’s daily operations. partners signed the Raglan Agreement. the Sivumut committee reviewed the The Raglan Agreement was the first Each year, MAC acknowledges impacts of the Sivumut project as Impact and Benefit Agreement signed member companies with the TSM identified through the ESIA process in Canada between a mining company Leadership Award, a recognition for and its recommendations formed and an Aboriginal population. The facilities that meet or surpass a Level the basis of the additional measures Raglan Agreement includes a number A ranking for all indicators under its to the Raglan Agreement. tailings management, energy use of considerations on the protection of and greenhouse gas emissions the environment, financial provisions, The signing of the additional measures management, aboriginal and local businesses, local training and has strengthened Raglan Mine’s community outreach, biodiversity employment and conflict resolution. relationship with its host communities. By securing Raglan Mine’s future, the conservation management, and In early 2017, Raglan Mine and its region of Nunavik will continue to safety and health protocols. Inuit community partners agreed benefit from maintained economic on additional measures to the Raglan Raglan Mine was one of nine winners stability through existing jobs, contracts Agreement that will support the of the 2017 TSM Leadership Award. and profit sharing. The award recognised the progress extension of the life of Raglan Mine made by Raglan Mine since its last for an additional 20 years. external audit in 2014. Improvements Raglan Mine’s current operations were included reaching an AAA level of due to wind down in 2020. The Sivumut Excellence and Leadership for tailings project (meaning “moving forward” in management, biodiversity conservation Inuktitut) outlines the projects to extend management and safety and health. the life of Raglan Mine beyond 2020. Raglan Mine also proved its robust crisis management and communications The environmental and social impact planning and maintained its AAA level assessment (EISA) for the development for aboriginal and community outreach. project included extensive public consultations sessions with Raglan Mine’s Inuit communities. This

Glencore Sustainability Report 2017 99 Oil

We trade in crude oil, refined products and natural gas. We source crude oil and oil products from a range of suppliers, with additional interests in oil and gas production sharing contracts. We also have a substantial shipping portfolio and access to a range of logistics, storage and investment capabilities.

Energy products Oil at a glance 1 2 3 4

• 1. Chad Oil Assets 6 million • 2. Cameroon Oil Assets barrels of oil marketed • 3. Block O. Equatorial Guinea* by our business every • 4. Block I, Equatorial Guinea* single day

22% * Partner operated YoY increase in Brent crude price KPIs 2017 2016 2015 Fatalities at managed operations 0 0 0 Lost time injury frequency rate (LTIFR) (per million hours worked) 0.48 0.26 0.46 Total recordable injury frequency rate (TRIFR) (per million hours worked) 1.21 0.65 2.21 New occupational disease cases 0 0 0

CO2e Scope 1 (million tonnes) 1.0 1.1 1.0

CO2 Scope 2 – location based (million tonnes) 0.0 0.0 0.0 Total energy use (petajoules) 10 10 9 Water withdrawn (million m3) 0.3 0.1 0.4 Community investment spend ($ million) 0.1 0.1 0.4 Number of employees and contractors 875 1,109 2,405 Proportion of female employees (%) 14% 17% 24%

100 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Environment

Reusing waste water Investing in technology to deliver efficiency gains

In 2011, the shipping arm of Glencore the 23t burned by other non-Promas Oil ordered two product tankers, the tankers. This has resulted in annual specifications of which we insisted savings of around $700,000 (based needed to deliver a fuel-efficient on $350t/IFO380) per ship. performance and meet our The technology and equipment commitment to reducing emissions. improvements made to the vessels have The energy optimisation and also reduced operational costs. environmental efficiencies measures Cavitation erosion has decreased and that Glencore Oil installed included an recent underwater inspections have improved hull form, a new improved revealed no pitting or cavitation damage electronically controlled main engine to the propellers. This is likely to reduce and a Rolls-Royce Promas technology dry-docking costs as we anticipate not propeller and rudder package. needing to make major repairs to the propeller or rudder. In 2014, Glencore Oil began to operate the vessels, the Alpine Maria and Alpine Propeller induced lower noise and Mary. After two years of operation, vibration are other benefits. Following a Glencore Oil has noticed that each series of vibration measurements aboard vessel achieved efficiency improvements both vessels, we noted that the readings in the region of 23%, resulting in a daily were very good and better than those reduction in fuel consumption of 5.5 recorded for this class of ship. tonnes per day compared to other Glencore Oil will continue to monitor the similar sized tankers in our 41 vessel efficiency gains achieved with these two fleet. ships as part of our wider commitment Based on service speeds of 13kts, to reducing our environmental footprint. Alpine Mary and Alpine Maria typically burn 17.5t of fuel a day as opposed to

In Chad, our oil business’ exploration and production (E&P) are reusing the waste water our operation generates to irrigate a small nursery on our land. Members of the local community run the nursery. The oil E&P team is using the native trees grown by the nursery to rehabilitate areas that were cleared for exploration and drilling activities. During Chad’s 2017 National Day of the Tree, oil E&P planted 250 trees at five local schools. These trees are acting as fences around the schools. At our Badilla operation, local community members are utilising the grey water from the oil E&P operations in their vegetable gardens. The waste water is a key component in the compost making operation. The use of compost has improved the productivity of the vegetable garden and our camp restaurant buys and cooks with the vegetables.

Glencore Sustainability Report 2017 101 Oil continued

Community

Supporting community infrastructure in Chad Implementing the Voluntary Principles in Chad

Our Chad exploration and production (E&P) oil operations work with both private and public security. Recognising the risk to human rights, we work with our security providers to implement the United Nations Voluntary Principles on Human Rights and Security (the Voluntary Principles). Chad E&P has formal guidance in place for dealing with security forces; this guidance requires private security contractors to act in accordance with the Voluntary Principles and other internationally recognised standards. In 2017, Chad E&P reviewed and strengthened this guidance in relation to the Voluntary Principles. In Chad, our oil exploration and A local contractor, at a cost of around production (E&P) assets are committed $8,000, undertook the repairs. Glencore During 2017, Chad E&P provided to constructive and long-term has also helped the community to training on the Voluntary Principles to relationships with their host develop a co-operative to raise funds to both public and private security communities. purchase the diesel required for the representatives. operation of the water tower and for its During 2017, the Chad E&P team ongoing maintenance. supported a number of projects in the communities living close to their Construction of the Bardira School operations. Our socio-economic analysis for our Badila oil block identified the need Community bridge repairs to construct a new school to serve the At the end of 2016, representatives surrounding villages. Prior to 2017, the from six councils local to our Mangara children attending the Bardira School oil block requested that Glencore help took their lessons sitting on the dirt under with the repairs of the Maimougou a tree. As there was no shelter, lessons village bridge. The bridge provides a had to stop during the rainy season and, route for trade and recreational visits as a result, many children failed to between six local villages – it had fallen complete their school programme. into disrepair resulting in local community members having to Glencore approached the regional undertake a long detour. education board to see how we could best assist. Working with the regional The restoration of the bridge completed education board, we identified a site in mid-2017 at a cost of $65,000. for the new school that was mid-way between four villages. Next, the new Rehabilitation of the primary school was constructed – Miladi village water tower the school can accommodate over The Miladi village is close to Glencore’s 200 pupils. A local contractor was Badila oil block. In early 2017, the local engaged to build the school at a cost canton chief requested Glencore’s of around $76,000. support to repair the broken water tower in the Miladi village. Our assessment of The whole community attended the the situation showed that women and school’s opening ceremony. children were walking 3km a day to bring water from a neighbouring village.

102 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community

Implementing the Addressing community concerns in Chad Voluntary Principles in Chad

Training included a two-day ‘train-the- Our Chad Exploration and Production Following unexpected heavy rainfall, trainer’ workshop delivered by the Swiss (E&P) operations, have established a flooding took place during the entity COGINTA for public and private robust grievance mechanism to collect construction phase of the Mangara security personnel. and address community concerns. Bridge. During a project to repair a Mangara access road, contract workers Over the two days, the COGINTA training In our areas of operations, our local E&P accessed land outside of our licence and covered: teams establish grievance mechanisms caused slight damage to the ground to receive, assess and respond to • An overview of the Voluntary and trees. individual and community concerns Principles and responsibilities of and to resolve them in a timely manner. Chad E&P fully addressed and remedied participating countries and companies the issues raised and put in place The grievance mechanisms established • The legal resources available for measures to avoid similar occurrences by Chad E&P align with the trainers, such as conventions and in the future. The actions taken included: recommendations made by the treaties, United Nations’ instruments, International Finance Corporation’s • Attendance by our stakeholder international and national Performance Standards on Social and relations teams at construction humanitarian law, ethics and codes Environmental Sustainability. The local meetings when building activities of conduct communities were consulted on and are communicated to impacted • Expected behaviour for the respect approved the grievance management communities of human rights procedure. • Ongoing meetings with the The participants asked many questions In Chad, the grievance mechanism construction contractors to ensure to understand better issues that they process captures concerns through a that they are aware of Chad E&P’s had previously experienced as well as variety of methods, including the routine expectations of their behaviour, using the workshop as an opportunity and ongoing community liaison as well especially when their activities take to share their learnings from challenges as formal stakeholder engagement. place near to local communities faced while performing their roles. Through monitoring and reporting on • The implementation of a ‘community Some of the challenges raised by the grievances raised, we are able to incident notification report’ process, the attendees included addressing measure the effectiveness of the which assists in the early identification community cultural differences and grievance management, as well as and response to incidents as well as educational barriers within their identify and address broad trends and establishing roles and responsibilities workforces – the workshop was an recurring concerns. to address concerns opportunity to standardise security methods, which would address During 2017, the Chad E&P grievance • The ongoing recruitment and training these concerns. mechanism process received 440 of community liaison officers. The complaints from local communities. officers engage with local community Chad E&P holds regular public forums, Following, investigation and follow-up representatives and are key in usually around four sessions per year, steps, 175 of these were valid concerns. identifying appropriate measures which involve all interested stakeholders 80% of the complaints received related to address the issues raised including NGOs, village chiefs and to impacts from construction activities canton heads, administrative authorities during two infrastructure projects. and military representatives. During the forums, discussions cover a range of operational matters, including security. During the year, our security superintendent became aware of a human rights incident in a local community involving an individual from the public security forces assigned to our operation. Our security superintendent spoke to the local head of the public security forces and the individual involved was relocated out of the region.

Glencore Sustainability Report 2017 103 Zinc

We are one of the world’s largest miners and producers of zinc, with a combination of mines and smelters that is unique for a single business. We trade in zinc and lead concentrates, the raw materials used to produce zinc and lead, and valuable by-products such as sulphuric acid. We also deal in gold and silver, which are typically mined in conjunction with zinc, copper and lead ores.

1 Metals and 11 13 minerals 2 4 3 15

5 12 Zinc at 14 a glance

6 8 7 9 16 10 17 18

• 1. Bracemac-McLeod mine • 8. Volcan* • 15. Kazzinc 1,090 kt • 2. Kidd operations • 9. Sinchi Wayra/Illapa • 16. Lady Loretta mine of zinc production from • 3. General Smelting • 10. Aguilar • 17. McArthur River mine own sources in 2017 • 4. Brunswick Lead smelter • 11. Britannia Refined Metals • 18. Mount Isa Mines • 5. CEZinc refinery • 12. Asturiana de Zinc • 6. Antamina • 13. Nordenham 3.9 Mt • 7. Los Quenuales • 14. Portovesme of zinc and lead metal * Volcan was acquired in late 2017 and its performance is not included in 2017 data and concentrates sold via the marketing KPIs business in 2017 2017 2016 2015 Fatalities at managed operations 6 1 2 Lost time injury frequency rate (LTIFR) (per million hours worked) 1.63 1.59 1.94 Total recordable injury frequency rate (TRIFR) (per million hours worked) 4.00 3.61 4.26 New occupational disease cases 11 17 79

CO2e Scope 1 (million tonnes) 2.1 2.0 2.3

CO2 Scope 2 – location based (million tonnes) 2.1 2.1 2.3 Total energy use (petajoules) 48 49 52 Water withdrawn (million m3) 301 277 278 Community investment spend ($ million) 39.6 36.2 34.4 Number of employees and contractors 41,769 42,942 42,663 Proportion of female employees (%) 18% 18% 18%

104 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Safety

Improving contractor safety at Kazzinc

Our operational team at Kazzinc is • Holding regular training workshops • Assessing all contractor companies for working in partnership with its for contractors on SafeWork. The safe work practices twice a year; high contractor companies to improve workshops included theoretical and scores result in advantages during safety performance. on-site training using simulators bidding processes At our Kazzinc operation in Kazakhstan, • Requiring contractor companies to • Ongoing review and improvements to 21% of the 27,000 workforce are use a checklist approach to ensure existing systems and handbooks as contractors – on both long and the full implementation of Kazzinc’s well as looking for opportunities for short-term contracts. Having a flexible safety requirements. Kazzinc also further cooperation workforce has many benefits including uses the checklist to assess In November, Kazzinc’s CEO led a hiring appropriate skill-sets for specific contractors’ performance workshop to highlight the results of jobs and external perspectives, however, • Introducing a multi-level control the steps taken to improve contractor it can prove challenging to ensure all system that involves assigning a management. Kazzinc’s operational contractors consistently meet our Kazzinc supervisor for each contractor team made presentations on their best required safety standards. company throughout their practice achievements and contractors During 2017, Kazzinc introduced a employment at Kazzinc, undertaking demonstrated the work they had number of activities to align the safety planned and targeted audits and the undertaken to implement SafeWork. culture and knowledge and practice of participation of contractor employees Together the operational team and the onsite contractors. These included: in site safety meetings representatives from the contractor companies identified areas of • Signing safety agreements with all • Recording all contractor non- strengths and weaknesses and contracting companies that detailed compliances and, when necessary, made recommendations on further the main safe working conditions imposing fines improvements to contractors’ requirements safety performance.

Glencore Sustainability Report 2017 105 Zinc continued

Safety Environment

Developing an innovative tool Recognition for a to mitigate a difficult task sustainable approach to mining Mitigating the risks associated with a • Be manoeuvrable and mobile as well difficult maintenance task through as being able to fit into the tight space innovation and teamwork. under the truck and around the axle In Australia, George Fisher Mine’s fleet • Include a fail-safe for hydraulic failure of four Caterpillar AD45 underground The tool was refined throughout its haulage trucks require an annual development and production process. replacement of their front suspension The revisions included the addition of struts. The removal and replacement grab rails to improve the tools of the front struts is a difficult, time manoeuvrability and guard bars for consuming and physically demanding better protection of the operator. process due to the weight of the strut (145kg) as well as the restricted space In addition to mitigating the risks in and around the front axle area of associated with the removal and the truck obstructing vertical lifts. This replacement of front struts, the new tool During 2017, our Kidd Operations exposes the maintenance personnel has also reduced the time required to were one of nine Canadian facilities to multiple hazards. undertake the replacement by around awarded a Towards Sustainable 11 hours. Other vehicles with a similar George Fisher Mine initially investigated Mining (TSM) Leadership Award suspension arrangement can also utilise a number of commercial solutions. The by the Mining Association the tool and plans are underway to team were unable to find an appropriate of Canada (MAC). assess its suitability for the other mine off-the-shelf solution and started to trucks in operation at George This award recognises facilities that design and build a tool in-house. Fisher Mine. meet or exceed a Level A ranking The tool needed to: for all indicators under the tailings The tool was developed and management, energy use and GHG • Support the entire 145kg weight of manufactured for under AUD20,000 and emissions management, Aboriginal the strut and eliminate uncontrollable has been shortlisted in the Queensland and community outreach, biodiversity movements Mining Industry Health and Safety conservation management, and Innovation awards. safety and health TSM protocols, and meet all requirements of the crisis management and communications planning protocol. “We celebrate these nine facilities for being role models within the Canadian mining industry. TSM’s requirements go well beyond regulatory obligations, and earning a TSM Leadership Award is a testament to their leadership in environmental protection and engagement with local and Indigenous communities,” stated Pierre Gratton, president and CEO, MAC. “Kidd Operations has a long history of exemplifying leadership in health and safety, environmental sustainability and community engagement. We are proud to have been recognised by the Mining Association of Canada for our ongoing commitment to meeting and exceeding the criteria established for sustainable mining across all categories,” said Steve Badenhorst, general manager.

106 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Environment

Sharing scientific and indigenous knowledge

Our McArthur River Mine (MRM) in Local Traditional Owners have For a number of years, MRM has hired Australia is helping scientific and contributed to the study by sharing their local people on seasonal tree-planting indigenous ecological knowledge knowledge with consulting scientists crews. In 2017, MRM’s environment team to come together and drive from IndoPacific Environmental. Walking employed two local indigenous trainees environmental initiatives. through the bush on the mine site, the in dedicated rehabilitation roles. Gurdanji people identify plants of value Traditional Owners also wanted to Traditional Owners from MRM’s and explain their cultural, medicinal and become more involved in MRM’s surrounding region have been involved nutritional purposes. environmental programmes and MRM in three programmes to secure the invited community members to assist in long-term future of the local There is also an ongoing study into tree propagation and planting on site. environment: an ethnobotany study, fish catching and eating habits of A number of Traditional Owners spent community tree-planting programme local Indigenous people. In the time working alongside the environment and a school training partnership. study, IndoPacific Environmental is team collecting and propagating seeds consulting with local people to gain an and planting out tubestock. Ethnobotany study understanding of the fish species caught Traditional Owners have a deep and eaten as well as documenting the School training partnership understanding of using native plants for names for each fish in the four local During 2017, local students attended food and medicine gained over tens of Indigenous languages. a site visit and information session thousands of years. An ethnobotany at MRM’s nursery, where they learned study commissioned by MRM is Community tree-planting programme about nursery management and documenting the knowledge of the local MRM has an extensive nursery to support the various rehabilitation techniques Gurdanji people. The study is identifying the rehabilitation of the McArthur River used on site. MRM hopes that this will and documenting the traditional food channel, a 5.5km diversion of the encourage an interest in environmental and medicine plants of the Gurdanji McArthur River. During 2017, an upgrade management in preparation for the start people to ensure MRM has sufficient to the nursery is supporting the of a certificate course in Conservation information to manage landscape propagation of more than 80,000 plants and Land Management. Borroloola vegetation communities in a way that from seed to tubestock each year. School will offer the course in 2018 incorporates their ecological heritage. A new dedicated hardening off area through support from MRM. accommodates the extra plants and allows the plants to acclimatise to the harsh natural environment prior to planting.

Glencore Sustainability Report 2017 107 Zinc continued

Environment

Water, a resource valued and shared Best practice water by Sinchi Wayra with their communities management passes test

The implementation of best-practice water management at Australia’s McArthur River Mine (MRM) was put to the test during a near-record rainfall event during the 2017-18 wet season. The greater than 1-in-100 year rainfall event saw 538mm fall in just seven days, with almost 200mm in one 24-hour period. Over the week roads were flooded, bridges were over- topped and large sections of the local community were isolated by floodwaters. At the mine site itself however, good planning meant the event was handled well, with additional resources deployed as needed and the environment protected. Like all mine sites in tropical climates, the management of water is a critical environmental issue for MRM. All water collected on site needs to stay on site or be discharged in a controlled In Bolivia, our Sinchi Wayra/Illapa We treat the excess water from manner to protect the environment. mining operations are working with operational processes and rain before it local communities to improve access is discharged into natural streams. This to water and to minimise fresh supply of water to natural channels water use. supports local agriculture. Extreme weather events, such as In accordance with Bolivian law, water droughts, floods, landslides and extreme discharged from the mine site is temperatures are severely affecting regularly tested. Laboratory results from Bolivia and particularly the rural the water samples collected at exit communities in the high Andes. In 2014, points show our discharged water meets Bolivia was classified as the second most all regulatory requirements. vulnerable country in South America to During 2015-2017, Sinchi Wayra/Illapa climate change (after Guyana). invested $1.3 million in a number of Sinchi Wayra/Illapa mining operations projects in partnership with local are located in the high Andes of Bolivia communities. These projects included and face ongoing impacts from extreme improved access to water, environment weather events. Sinchi Wayra/Illapa is preservation and land reclamation, proactively taking steps to reduce the economic development, health and impact of climate change and to education. In addition, in 2017, Sinchi minimise the consumption of fresh Wayra/Illapa made a $700,000 upgrade water in our mine processing plants. to its water treatment processes. The discharged water benefits around 2,600 Today, the fresh water requirement of local farmers the Sinchi Wayra/Illapa mining and rural dwellers. operations is minimal, as our Bolívar- based zinc and lead concentrator plants recirculate 85% of the water used.

108 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Environment

Best practice water Preserving the last untouched piece management passes test of River Thames marshland

During the wet season, from around November to April, water is collected and managed, and water is then evaporated during the dry season. With a big wet season experienced the previous year, the mine site took extra precautions heading into the 2017–18 season to ensure it was ready. These included: • Upgrades to water management infrastructure and rigorous maintenance • Treatment of open pit and underground water to provide additional wet season storage capacity In Kent, in the United Kingdom, offsite water, which previously flowed Britannia Refined Metals Ltd (BRM) through BRM’s land, has also improved • Maintenance of river gauging stations owns the last untouched piece of BRM’s management of its onsite water and early warning flood systems marshland adjacent to the River during heavy rain events. In early 2016, • The renegotiation of an approved Thames, the Botany Marshes. BRM is the local community began to access waste water discharge licence to give actively managing the marshland to the Botany Marshes for recreational more flexibility for the release of water ensure its long-term sustainability. activities. As the severe rain hit the local area, the During 2004 to 2011, BRM sponsored During 2016–18, BRM is implementing good planning delivered results, there a number of field surveys, ecological phase two, which involves establishing a was no uncontrolled discharge of water studies, impact assessments and habitat newly developed Habitat Management from the mine site, and downstream management plans that confirmed Plan, created by Kent Wildlife Trust. The areas were protected. the presence of 16 legally protected Plan includes managing the growth of (red-listed and endangered) species. the reed beds and grassland to One of the keys to achieving this result The studies showed that the following encourage greater vegetation diversity. was the establishment of onsite capacity were using the Botany Mashes as ‘home’: BRM will continue to work with the Kent to analyse water samples with a certified otters, yellow-faced bee, saltmarsh Wildlife Trust to ensure the sustainability laboratory. This meant the mine could short-spur beetle, viviparous lizard, of local biodiversity. quickly understand the quality of water harvest mouse and the Cetti warbler. from different sources and deal with it Since 2016, volunteers from Kent accordingly. The studies also noted evidence of a Wildlife Trust have hosted a number of gradual deterioration of the Botany education days for local school children. The safety and security of the mine’s Marshes’ biodiversity. The analysis Without active intervention the workers was the first priority. During the showed that the deterioration was marshland would have deteriorated extreme rainfall, a helicopter was on avoidable through active intervention to a point where it was unable to support standby on site for emergency response to prevent the marsh from drying out the protected species. In early 2016, a bird to ensure the safety of the site personnel. and scrub taking over. survey was carried out that recorded 16 BRM developed a project to divert extra species compared to the 2011 rainwater from its main road into a new baseline ecology report; of which four pond, which would then naturally feed have a Red conservation status. into a ditch system to maintain the BRM has contributed over £500,000 wetness of the marsh. to the project since 2012. The Botany Between 2013 and the end of 2015, Marshes have been designated as a phase one of the project was Local Wildlife Site in Kent; these are undertaken. This included digging, areas that are considered to be creating pathways and clearing the important for the conservation ditches. Today, the diversion of clean of wildlife.

Glencore Sustainability Report 2017 109 Zinc continued

Community

Delivering big results through a local trainee programme

A programme to recruit and train The mine implemented a strategy to Advertising the trainee truck operator local people as truck operators is invest in a training programme to positions attracted almost 250 responses helping to fill important positions develop the skills of its own workforce. with a good mix of male and female for the McArthur River Mine (MRM) There was a particular focus on recruiting applicants. MRM offered training in remote northern Australia. local community members to the roles positions to 17 people, many of whom because they tend to stay longer, are have now graduated into qualified MRM is increasing its workforce to cater better acclimatised to the tropical operator roles. for ore and waste rock movements climate and understand the challenges required for this year. The mine faced This approach is helping to create a of working in the local environment. some challenges filling the positions due stable and dedicated workforce. to a national shortage of qualified truck operators. Trained operators are hard to recruit across Australia and particularly in the Northern Territory.

110 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Community

Preserving the future through closure planning

A programme to recruit and train local people as truck operators is paying big dividends for McArthur River Mine (MRM) in remote northern Australia. MRM is increasing its workforce to cater for a need to move additional ore and waste rock this year. The mine faced difficulties filling the positions due to a national shortage of qualified truck operators. Trained operators are hard to recruit across Australia and particularly in the Northern Territory. The mine implemented a strategy to invest in a training programme to develop the skills of its own workforce. There was a particular focus on recruiting local community members to the roles because they tend to stay longer, are better acclimatised to the tropical climate and understand the challenges of working in the local environment.

In Australia, our McArthur River Mine OwnersAdvertising of the the land trainee to understand truck operator their For MRM, the key considerations for (MRM) has been working closely with wishespositions for theattracted future. almost 250 eventual closure include considering Traditional Owners and local residents responses with a good mix of male the infrastructure that should be left Given the literacy challenges of many to preserve the long-term future of the and female applicants. MRM offered for future community or business use, Traditional Owners, for whom English land on which it operates. training positions to 17 people, many such as the power station, airport and is a second language, visual and practical of whom have now graduated into village facilities. Mine closure is an integral part of all aidsqualified were criticaloperator to roles.help fully explain the mining operations and a plan serves process. Maps, diagrams, aerial photos, The engagement with stakeholders as a road map to direct, refine and animationsThis approach and is3D helping models to were create utilised. a throughout the past three years implement closure at the end of the stable and dedicated workforce. has resulted in a more robust As consultation progressed, more mine’s economic life. This ensures that closure strategy. people engaged with the process, the integrity of the environment is including local residents in the nearby sustained after mining operations town of Borroloola, non-Government have ceased. organisations and regulators. MRM The closure objective for the MRM mine held eight town meetings in Borroloola, site, in line with views expressed during which are open to all residents, over stakeholder consultations, is to return as the past three years, maximising the much of the project area as practical to opportunity for people to understand pre-mining land uses including low different options for the future and intensity cattle grazing and traditional provide their input. cultural uses. During this period, 566 individuals were The closure plan recognises that engaged through 263 consultations. Site discussions need to take place early to tours were also a valuable way for people ensure closure planning is aligned with to see for themselves the current the community’s future needs. To that landform, and these were attended by end, consultation has taken place over a 132 people. period of almost three years, starting with meetings with the Traditional

Glencore Sustainability Report 2017 111 Glossary

ASM CO2e Artisanal and small-scale mining. Carbon dioxide equivalent is the universal unit of measurement for the global warming potential (GWP) of

available blue water greenhouse gases, where one unit of CO2e is the GWP for According to the Aqueduct Global Maps 2.0 of the World one unit of carbon dioxide. This unit allows us to discuss Resource Institute (WRI) this is the total amount of water the equivalence of different GHGs in terms of their GWP.

available to a catchment before any users are satisfied. The GWPs used in this report are 1 for CO2, 28 for It is calculated as all water flowing into the catchment methane and 298 for nitrous oxide, as per IPCC’s from upstream catchments plus any imports of water to 5th Assessment. the catchment minus upstream consumptive use plus runoff in the catchment. commodity departments Each of Glencore’s business segments are divided backfilling into a number of commodity departments, Filling mined voids with non-hazardous material generally e.g. copper, nickel, ferroalloys and zinc within the Metals sourced from mine residues, to ensure long-term stability & Minerals business segment. See Who we are of excavations and minimise the effects of seismic activity. www.glencore.com/what-we-do/ for a full list. baseline water stress According to the Aqueduct Global Maps 2.0 of the World concentrate Resource Institute (WRI) this constitutes total annual water A natural commodity consisting of extracted and withdrawal (municipal, industrial, and agricultural) processed mineral ores; the first step towards producing expressed as a percentage of the total annual available refined minerals and metals. flow. Higher values indicate more competition among users. Arid areas with low water use are scored as high COP21 stress when calculating aggregated scores. The baseline The 2015 United Nations Climate Change Conference, water stress is calculated as water withdrawals divided by COP21, was held in Paris, France, from 30 November to mean available blue water. Areas with less than 0.03m/m2 12 December 2015. It was the 21st yearly session of the available blue water and less than 0.012m/m2 water Conference of the Parties (COP) to the 1992 United withdrawal are classified as “arid and low water use”. Nations Framework Convention on Climate Change (UNFCCC). The conference negotiated the Paris business segment Agreement, a global agreement on the reduction of Glencore operations are divided into three business climate change, the text of which represented a segments: Metals & Minerals, Energy Products and consensus of the representatives of the 196 Agricultural Products. Each segment manages its own parties attending. marketing, sourcing, hedging, logistics and industrial investments. copper equivalent A product specific production value that is calculated by “care & maintenance” phase dividing the average price of a specific product in a A phase in the lifecycle of an asset where production baseline year with the average price of copper in the is stopped, but with the potential to recommence same baseline year. operations at a later date; we manage conditions to ensure that the asset remains in a safe and critical control stable condition. A control that is crucial to preventing or mitigating the consequences of an event. The absence or failure of a CDP critical control would significantly increase the risk CDP is an international, not-for-profit organisation that connected to the relevant hazard, regardless of the provides a global system for companies and cities to existence of other controls. Controls include actions that measure, share and disclose environmental information. should be taken, devices and technical systems. See www.cdp.net for further information. direct energy closure plan Energy used and generated by our operations, including A formal document detailing a costed conceptual outline energy generated by combustion in boilers, furnaces and of how the operation will be closed, taking into account vehicles owned or controlled by us. Sources include coal, the options available to deal with prevailing social and coke, diesel, gasoline, biomass, biodiesel, fuel oil, jet fuel, environmental issues. We set aside funds specifically for kerosene, LPG, naphtha, natural gas, propane and site closure, including land rehabilitation. recovered electricity generated on site. See indirect energy.

112 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

ECHA HPRIs The European Chemicals Agency is an agency of the High potential risk incidents are incidents that could have European Union that manages the technical, scientific potentially resulted in a catastrophic (Category 5) or major and administrative aspects of the REACH system and (Category 4) outcome. drives implementation of the EU’s chemicals legislation. HSEC EITI Health, safety, environment and communities. The Extractive Industries Transparency Initiative aims to strengthen governance by improving transparency and ICMM accountability in the extractives sector (oil, gas and The International Council on Mining and Metals is an mining). EITI promotes revenue transparency by industry trade body dedicated to establishing and monitoring and reconciling payments from mining promoting leading sustainability practices. businesses and government revenues at the country level. IFC ferroalloys The International Finance Corporation is part of the Various iron alloys that have a high proportion of one or World Bank Group; it finances private sector ventures more other elements, e.g. manganese, chrome or silicon. and projects in developing countries and provides these with advice and guidelines. fugitive emissions Emissions that emanate irregularly from many diffuse ILO sources, such as gas leakages from equipment, and, in the The International Labour Organization is a United Nations case of dust, the movements of trucks and machinery in agency that seeks the promotion of social justice and dusty areas. internationally recognised human and labour rights.

GHG ILO Declaration Greenhouse gas. The Declaration on Fundamental Principles and Rights at Work was adopted by the ILO in 1988, with the core Greenhouse Gas Protocol categories of collective bargaining, discrimination, forced Standards and guidance for corporate accounting and labour and child labour. reporting on GHG emissions, which help governments and business leaders to understand, quantify, and indirect energy manage GHG emissions (e.g. CO2). The protocol separates Energy used by our sites, but supplied by third parties, GHG emissions into different scopes depending often as electricity. This includes electricity, steam and on source. heating/cooling. See direct energy.

GRI “industrial activities” The Global Reporting Initiative is a network-based Glencore term covering assets and activities related to organisation that develops and disseminates voluntary commodity production and processing, as separate from sustainability reporting guidelines; there is a specific marketing activities. See “marketing activities”. supplement for the mining and metals industry. IPCC grievance process The Intergovernmental Panel on Climate Change assesses A formal mechanism that local community members or scientific, technical and socio-economic information on other stakeholders can use to register concern about real the risk of human-induced climate change. It was or perceived actions by nearby operations, with the established by the United Nations Environment objective of resolving problems before they escalate. Programme (UNEP) and the World Meteorological Organization (WMO). hazardous Dangerous, as defined by national legislation. ISO 9001 A quality management system standard (not a HELE performance standard) issued by the International High-efficiency, low-emission Organization for Standardization (ISO). It is a voluntary standard that can be independently audited by hours worked certifying bodies. Total hours worked by employees and contractors at our industrial sites, including overtime but excluding any scheduled or unscheduled absence (e.g. holidays or sickness) during the reporting year.

Glencore Sustainability Report 2017 113 Glossary continued

ISO 14001 OCIMF A management system standard, similar to ISO 9001, The Oil Companies International Marine Forum is a but covering environmental impacts and risk. voluntary association of oil companies with an interest in the shipment of crude oil and products. LBMA The London Bullion Market Association is an international OECD trade association, representing the London market for The Organisation for Economic Co-operation and gold and silver bullion, which promotes refining Development is an international organisation that standards, trading documentation and the development provides a forum in which governments can work of good trading practices. together to share experiences and seek solutions to tackle economic, social, environmental and LTI governance challenges. Lost time injuries are recorded when an employee or contractor is unable to work following an incident. We overburden record lost days as beginning on the first rostered day that The rock and soil that lies above a coal seam or ore body the worker is absent after the day of the injury. The day of and must be removed for mining activities. the injury is not included. LTIs do not include Restricted Work Injuries (RWI) and fatalities. petajoule A measure of energy equivalent to a thousand trillion LTIFR joules, or 1015 joules, usually used to express energy LTIFR is the total number of LTIs recorded per million consumption by cities or major industries. working hours. PM “marketing activities” Particulate matter, or dust, usually from industrial sources. Glencore term covering trading and sales activities as well as the infrastructure and resources used in transporting protected area products from our industrial sites to customers. A location that receives protection because of its natural, See “industrial activities”. ecological or cultural value.

MARPOL PSM The main international convention for preventing ships Process safety management. from polluting the marine environment, whether by operational or accidental causes. REACH Registration, Evaluation, Authorisation and Restriction of mixtures Chemicals is the European Union’s chemicals control act. In the context of product safety regulations, a mixture or solution comprising two or more substances, where each Scope 2 (location-based) emissions substance is defined as a chemical element and its This approach applies grid emission factors to all compounds in the natural state, or obtained by any purchased electricity, regardless of contractual purchase manufacturing process, including any additive necessary arrangements for renewable electricity. to preserve stability and any impurity deriving from the process used. Scope 2 (market-based) emissions This approach applies GHG emissions from contractual nitrogen oxides arrangements; supplier-specific emission factors are A range of related chemical compounds, collectively applied when relevant and available, but where they are indicated as NOx, which can react to form GHGs. not, the country’s residual or grid emission factor Examples are nitric oxide and nitrogen oxide. is applied.

occupational disease sulphur dioxide

Any chronic ailment or illness that occurs as a result of A chemical compound (SO2) produced by various work or occupational activity; these are typically identified industrial processes, including the combustion of sulphur-

as being more prevalent in a given body of workers than containing fuels. SO2 is a pollutant gas and a precursor to in the general population, or in other worker populations. particulates in the atmosphere. It can be captured and An occupational disease is different from an converted to saleable sulphuric acid. occupational injury.

114 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

tailings The residue of an industrial process, especially residue that contains mineral ore.

TRIFR Total Recordable Injury Frequency Rate = number of fatalities + lost time injuries (LTIs) + restricted work injuries (RWIs) + medical treatment injuries (MTIs) per million hours worked.

UNGPs The United Nations Global Compact principles cover human rights, labour, environment and anti-corruption.

Voluntary Principles The Voluntary Principles on Security and Human Rights (Voluntary Principles) Initiative is a multi-stakeholder initiative involving governments, companies and NGOs, which promotes a set of principles for oil, gas, and mining companies to guide them in providing security for their operations in a manner that respects human rights. waste rock Mineral wastes produced during mining, excluding overburden. It includes the parts of ore deposits that are not processed for economic reasons. Waste rock is either used for backfilling or stored at the surface. water discharge Total of water effluents discharged over the course of the reporting period to subsurface waters, surface waters, sewers, treatment facilities, etc. water input Total amount of water withdrawal plus water entrained in ore that is processed. See “water withdrawal”. water output Total amount of water discharged plus water entrained in waste material and final product and water lost to evaporation and other losses. See “water discharge”. water withdrawal Total amount of water drawn into the boundaries of the reporting organisation from all sources for any use over the course of the reporting period. Includes surface water, ground water, rainwater, potable water and non-potable water imported from third parties.

WHO The World Health Organization is the directing and coordinating authority for health within the United Nations system, which sets many internationally- recognised norms and standards. workforce References to our workforce include both employees and contractors.

Glencore Sustainability Report 2017 115 Assurance statement

• the approach that it has adopted to identify and prioritise its material sustainable development risks and opportunities, as stated on page 16 of the Sustainability Report 2017 (ICMM Subject Matter 2); Independent assurance report to Glencore Plc on selected information • the existence and status of implementation of systems and approaches used to manage and in the 2017 Sustainability Reporting report its material sustainable development risks and opportunities (ICMM Subject Matter 3) and associated An overview of the scope of our assurance work selected key performance indicators, presented We have been engaged by Glencore International AG in Table 1 below (ICMM Subject Matters 4 ); and (“Glencore”) to perform a limited assurance engagement on the following selected sustainability information • its self-declaration of preparing the Report in (“Subject Matter”) reported in the Glencore Plc (“Glencore”) accordance with the Global Reporting Initiative (“GRI”) 2017 Sustainability Report, and the documents “Our Standards at a core level, as stated on page 12 of the Approach to Sustainability” and “Databook and GRI Sustainability Report 2017 and in the Databook and References” for the year ended 31 December 2017. Each GRI References 2017 (ICMM Subject Matter 5). of these documents are available on Glencore’s website http://www.glencore.com/sustainability. Reporting Criteria The above Subject Matter has been assessed against the Selected Subject Matter for assurance criteria provided in the ICMM Sustainable Development Glencore’s assertion in relation to: Framework Assurance Procedure and the definitions and approaches in the Glencore Corporate Practice • the alignment of its policies to the International (GCP) database field definitions documents (“Glencore’s Council on Mining and Metals (“ICMM”) ten Sustainable Reporting Criteria” and “Glencore GHG calculation Development Principles and Position Statements as principles Scope 1, 2 and 3”), dated March 2017, stated on page 12, of the Sustainability Report 2017 which is available upon request from Glencore. (ICMM Subject Matter 1);

Table 1: ICMM Subject Matters 3 and 4 Report Assured Material risks and opportunities Page¹ Key performance indicators figure Catastrophic hazard management 20 Total number of major (Category 4) and catastrophic (Category 5) spills 0 Workplace health and safety 24 Total number of Fatalities (employee and contractor) 9 Total Recordable Injury Frequency Rate (employee and contractor) (injuries per million working hours) 3.09 Total Lost Time Injury Frequency Rate (employee and contractor) (injuries per million working hours) 1.02 Climate change 30 Total direct and indirect energy consumption (PJ) 202

Total direct GHG emissions (million tons of CO2e) 21.6

Total indirect GHG emissions – location-based (million tons of CO2) 11. 9 Total Scope 3 GHG emissions - losses from transmission and distribution of electricity (million tons of CO2) 0.94 Total Scope GHG 3 emissions from the use of products sold (fossil fuels, million tons of CO2e) 273 Water and effluents 38 Total water withdrawal (million m3) 924 Total water discharge (million m3) 637 Waste and air emissions 44 Reported KPIs not within scope of current year assurance Human rights and grievance mechanisms 48 Reported KPIs not within scope of current year assurance Community engagement and social 56 Total amount of Payments made to Governments (million USD) 4,113 commitment compliance Product stewardship 60 Reported KPIs not within scope of current year assurance Our people 64 Reported KPIs not within scope of current year assurance Compliance 68 Reported KPIs not within scope of current year assurance

1 Page references are provided to the Sustainability Report 2017. * KPIs will be reported in the Databook and GRI References 2017

116 Glencore Sustainability Report 2017 Governance Material issues Commodities Additional Information

Our assurance conclusion • Evaluation of the design of controls and functionality of Based on our procedures described in this report, the Group sustainability information management and nothing has come to our attention that causes us to reporting database (“GCP database”) at a corporate level. believe that the selected Subject Matter, stated above • Analytical Reviews and trend analysis of reported data and on the indicated pages of the Sustainability Report per commodity department for selected key 2017 and Databook and GRI References 2017, for the performance indicators; year ended 31 December 2017, have not been prepared, in all material respects, in accordance with the • Conducting physical reviews at a sample of assets, Reporting Criteria. selected on a judgmental basis on materiality of contribution to reported group KPI data, geographic Respective responsibilities of Directors coverage (Africa, South Africa, Australia, South America, and independent assurance provider and Europe) and commodity coverage (Coal, Copper, The Directors are responsible for the preparation of the Ferro Alloys, Nickel, Oil and Zinc). This work was sustainability information and statements contained performed to: within Glencore’s Sustainability Report. They are • corroborate consistency in understanding and responsible for determining Glencore’s sustainability application of Glencore Reporting Criteria; and objectives and for establishing and maintaining appropriate performance management and internal • identify systemic challenges to sustainability control systems from which the reported information management and data measurement, collection, is derived. reporting and control processes, or issues pervasive to region, department and / or group, for the selected Our responsibility is to express a conclusion on the subject matter selected subject matter based on our procedures. We conducted our engagement in accordance with the We believe that our evidence obtained is sufficient International Standard on Assurance Engagements (ISAE) and appropriate to provide a basis for our limited 3000 (Revised) Assurance Engagements other than Audits assurance conclusion. or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Inherent limitations Board. This standard requires that we comply with the Inherent limitations exist in all assurance engagements independence and ethical requirements and to plan and due to the selective enquiry of the information being perform our assurance engagement to obtain sufficient examined. Therefore fraud, error or non-compliance may appropriate evidence on which to base our limited occur and not be detected. Additionally non-financial assurance conclusion. We performed the engagement in information, such as that included in Glencore’s accordance with Deloitte’s independence policies, which Sustainability Report 2017, and “Our Approach to cover all of the requirements of the International Sustainability” document is subject to more inherent Federation of Accountants’ Code of Ethics and in some limitations than financial information, given the nature areas are more restrictive. The firm applies the and methods used for determining, calculating, and International Standard on Quality Control 1 and sampling or estimating such information. accordingly maintains a comprehensive system of quality Our work has been undertaken so that we might state to control including documented policies and procedures the Company those matters we are required to state to regarding compliance with ethical requirements, them in this report and for no other purpose. To the fullest professional standards and applicable legal and extent permitted by law, we do not accept or assume regulatory requirements. responsibility to anyone other than Glencore for our work, The evidence gathering procedures for a limited for this report, or for the conclusions we have formed. assurance engagement are more limited than for a While we acknowledge that this report will be published reasonable assurance engagement which is akin to a on the Glencore website, the maintenance and integrity financial audit, and therefore less assurance is obtained of that website is the responsibility of the Directors of than for a reasonable assurance engagement. Glencore. The work that we carried out does not involve consideration of the maintenance and integrity of that Work performed website and, accordingly, we accept no responsibility for Our limited assurance procedures included, primarily: any changes that may have occurred to this report and • Making enquiries of management and senior executives to Glencore’s Reports since they were initially presented on obtain an understanding of the overall governance and the website. internal control environment, risk management, materiality assessment and stakeholder engagement processes relevant to the identification, management and reporting Deloitte LLP of Glencore’s material sustainable develop issues, and London, United Kingdom associated selected key performance indicators. 16 April 2018

Glencore Sustainability Report 2017 117 Important notice concerning this document including forward looking statements

This document contains statements that are, or may be deemed Authority and the Listing Requirements of the Johannesburg to be, “forward looking statements” which are prospective in Stock Exchange Limited), Glencore is not under any obligation nature. These forward looking statements may be identified by and Glencore and its affiliates expressly disclaim any intention, the use of forward looking terminology, or the negative thereof obligation or undertaking to update or revise any forward such as “outlook”, “plans”, “expects” or “does not expect”, “is looking statements, whether as a result of new information, expected”, “continues”, “assumes”, “is subject to”, “budget”, future events or otherwise. This document shall not, under any “scheduled”, “estimates”, “aims”, “forecasts”, “risks”, “intends”, circumstances, create any implication that there has been no “positioned”, “predicts”, “anticipates” or “does not anticipate”, or change in the business or affairs of Glencore since the date of “believes”, or variations of such words or comparable terminology this document or that the information contained herein is and phrases or statements that certain actions, events or results correct as at any time subsequent to its date. “may”, “could”, “should”, “shall”, “would”, “might” or “will” be taken, No statement in this document is intended as a profit forecast occur or be achieved. Such statements are qualified in their or a profit estimate and no statement in this document should entirety by the inherent risks and uncertainties surrounding be interpreted to mean that earnings per Glencore share for future expectations. Forward-looking statements are not the current or future financial years would necessarily match based on historical facts, but rather on current predictions, or exceed the historical published earnings per Glencore share. expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, This document does not constitute or form part of any offer prospects, financial condition and discussions of strategy. or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this By their nature, forward looking statements involve known document does not constitute a recommendation regarding and unknown risks and uncertainties, many of which are any securities. beyond Glencore’s control. Forward looking statements are not guarantees of future performance and may and often do differ The companies in which Glencore plc directly and indirectly materially from actual results. Important factors that could cause has an interest are separate and distinct legal entities. In this these uncertainties include, but are not limited to, those document, “Glencore”, “Glencore group” and “Group” are used discussed in Glencore’s Annual Report 2017. for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are Neither Glencore nor any of its associates or directors, officers used for ease of reference only and do not imply any other or advisers, provides any representation, assurance or guarantee relationship between the companies. Likewise, the words that the occurrence of the events expressed or implied in any “we”, “us” and “our” are also used to refer collectively to members forward-looking statements in this document will actually occur. of the Group or to those who work for them. These expressions You are cautioned not to place undue reliance on these forward- are also used where no useful purpose is served by identifying looking statements which only speak as of the date of this the particular company or companies. document. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct

118 Glencore Sustainability Report 2017 This report is printed on Cocoon Offset which is FSC® certified, as well as having ISO14001 EMS, EMAS and the European EcoLabel. Printed in the UK by Pureprint who are a CarbonNeutral® company. Both manufacturing mill and the printer are registered to the Environmental Management System ISO 14001 and are Forest Stewardship Council® (FSC) chain-of-custody certified. If you have finished with this document and no longer wish to retain it, please pass it on to other interested readers or dispose of it in your recycled paper waste. Thank you.

Designed and produced by Glencore plc Glencore

Sustainability 2017 Report

Glencore plc Baarermattstrasse 3 CH-6340 Baar Switzerland Tel: +41 41 709 2000 Fax: +41 41 709 3000 E-mail: [email protected] www.glencore.com