Water Report 2019 Contents
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Water Report 2019 Contents Our approach Business How we use Contents Introduction to water Model water Page 1 Page 2 stewardship Page 3 Page 5 Page 9 Targets, Water impacts, goals and Performance risks and Next steps About external this report Page 11 opportunities Page 34 engagement Page 35 Page 19 Page 27 Appendix 3 Appendix 1 Appendix 2 Diclaimer and Glossary Water use, reuse/ Water input Water discharged Contact Page 36 recycling Page 37 Page 43 Page 55/56 Page 49 Sustainability contacts Find us on We welcome feedback on this report or on any other @Glencore aspect of sustainability at Glencore. Comments can be sent to [email protected] facebook.com/Glencore youtube.com/glencorevideos Sustainability online Further information on our sustainability activities, plus more detailed data on our key sustainability indicators, is available on our website: glencore.com/sustainability 1 Glencore Water Report 2019 Introduction Life is not possible without water. Water is a crucial resource for the natural environment, human beings and business activities. At Glencore, we recognise access to water as a fundamental human right and strive to support equitable access to water, as well as implement leading sustainable water management systems throughout our global operations. Ivan Glasenberg, CEO “We recognise access to water as a fundamental human right. It is essential to our operating processes and we support equitable access to water through working with all our regional water users.” Glencore is one of the world’s largest natural resource companies and we recognise that water is a fundamental requirement for our operations and future development, as well as for the communities in which we operate. We manage a number of water- for local community use as drinking Our 2019 Water Report explains our related challenges across our diverse water, for sanitation purposes or in interactions with water, shared assets, including water stress and agricultural activities. resource users and the regional excess water. Some of our assets are context of our activities. It also Other challenges can include located in regions with high to outlines our approach to water extended periods of severe drought extremely high water baseline stress stewardship, our water-related or flooding that longer-term impacts as defined by the World Resource performance, challenges and arising from climate change may Institute’s (WRI) Aqueduct Water opportunities, as well as our further intensify. To address these Risk Atlas. Water scarcity may result associated asset-level targets (where challenges, we identify water-saving in competition between industrial applicable), goals and objectives. The and water-sharing opportunities to operations and local communities. report provides information about help conserve water, reduce water We recognise our role in working our external engagement and the dependency and mitigate with stakeholders to support next steps on our journey to environmental and local community adequate access to water for users. implement our strategic water impacts. management framework. The Excessive water can also significantly This is our second annual report appendices show detailed affect our activities through the costs dedicated to water. We have chosen breakdowns of our water associated with dewatering our to focus on water in response to performance on river basin and assets and treating water ahead of stakeholder interest on our approach country levels. its discharge. We often treat the to responsible water management. excess water and make it available Glencore Water Report 2019 2 Business model Glencore is present at multiple stages of the commodity supply chain and uniquely diversified by geography, product and activity, maximising the value we create for our business and our stakeholders. Inputs and resources on which our business model depends Assets and natural resources • Our resources and reserves feature many long-life and high quality assets • We are a disciplined producer, Our industrial business seeking to align supply with Our industrial business spans the demand and value over volume metals and energy markets, producing • Our established marketing more than 60 commodities operations have global reach from 150 sites and deep understanding of their respective markets Our people and partners • We have established long-term relationships with a broad range of suppliers and customers across diverse Exploration, acquisition and development industries and geographies Our focus on brownfield sites and exploration close to existing • c.160,000 employees and assets lowers our risk profile and lets us use existing infrastructure, contractors spread across realise synergies and control costs. over 35 countries in both established and emerging regions for natural resources Extraction and production Financial discipline We mine and beneficiate minerals across a range of commodities, • We seek to deploy capital mining techniques and countries, for processing or refining at in a disciplined manner, our own facilities, or for sale. seeking to create value for all our stakeholders • Our hedging strategies protect Processing and refining us against price risks and ensure Our expertise and technological advancement in processing that our marketing profitability and refining mean we can optimise our end products to suit is primarily determined by a wider customer base and provide security of supply as volume-driven activities and well as valuable market knowledge. value-added services rather than absolute price Unique market knowledge • As an integrated commodity producer and marketer, we are uniquely positioned to generate value at every stage of the commodity chain Our values reflect our purpose, our priorities and the beliefs by which Safety Openness we seek to conduct ourselves and carry out our business activities. Integrity Simplicity They define what it means to work at Glencore, regardless of location or role. Responsibility Entrepreneurialism 3 Glencore Water Report 2019 Geographic arbitrage Our commodities in Product arbitrage Our marketing business everyday products We move commodities from where they are plentiful to where they are needed Time arbitrage Logistics and delivery Our logistics assets allow us to handle large volumes of commodities, both to fulfil our obligations and to take advantage of demand and supply imbalances. These value added services make us a preferred counterparty for customers without such capabilities. Blending and optimisation Our ability to blend and optimise allows us to offer a wide range of product specifications, resulting in a high-quality service and an ability to meet our customer specific requirements. We have around 150 mining and national and local economies in which we metallurgical sites and oil production assets operate. We believe that our presence can in over 35 countries with a workforce of deliver long-term sustainable benefits to our about 160,000 employees and contractors. host countries and regions. We recognise that our business activities make a significant contribution to the Glencore Water Report 2019 4 How we use water Our activities involve the use and management of water of different qualities and quantities and require environmental approvals and regulatory permits How we use water: The most water intensive activity in our mining operations is the removal of water from mines (dewatering), needed to safely access our Mining deposits. Depending on site conditions, this may include both active operations dewatering, as well as passive seepage collection. Our water management activities may also involve diverting surface water bodies, under environmental approvals. Our mineral concentrators use water in the processing of ore to facilitate Metal separating minerals from waste material to produce higher-grade ore concentrators concentrates. Leaching and Our leaching and hydrometallurgical processing use water in hydrometallurgical processes to extract metals from metal-bearing material for further processing recovery. Our coal operations use water to beneficiate their products by Coal removing waste material from the coal to meet customers’ product operations specifications. Oil exploration Our oil exploration and production activities use water in oil and production processing and reservoir management processes (ie water injection). 5 Glencore Water Report 2019 Wet air cleaning techniques, like scrubbers or electrostatic Emission precipitators, are used to remove particles and gaseous substances abatement and (eg sulphur dioxide). Throughout our operational processes, we also dust mitigation use sprinklers and water carts to reduce dust levels that may result from mining, transport and stockpiling activities. We collect and treat water to meet the requirements for potable water Water for our sites or for third parties such as communities, as well as for treatment process water usage. We treat water prior to discharge in compliance with regulatory approvals, permits and licenses. Many of our activities use water for cooling purposes, predominately for Cooling activities non-contact cooling activities whereby no deterioration of the water quality takes place. A number of our assets support local governments by supplying water Local water to surrounding communities for a variety of uses including drinking infrastructure water and agriculture. We ship our products over maritime and inland waterways and abide by environmental protection guidance, such as the International Shipping Maritime