Responsibly sourcing the commodities for everyday life Sustainability Highlights 2018 Key highlights
Continued roll out of our water management guideline Zero 30% major or catastrophic decrease in new environmental cases of occupational incidents during 2018 disease: 32 cases (2017: 46 cases) Zero serious human rights incidents
$5.7bn tax and royalty Published our payments climate change position statement 33,944 employees and contractors completed e-Learning training on our Code of Conduct
Maintaining our TSF structural integrity with our dam safety assurance 9% programme reduction in Scope 1 and 2 carbon emissions
Ongoing engagement with organisations regarding responsible sourcing
Rolled out our Group Diversity Policy Participating in developing guidance on the UN’s Guiding Principles for $95m the commodity spent on trading sector community initiatives Our strategic approach
As a global producer and marketer of commodities, our geographic presence, products and activities make us unique. Integrating our marketing and industrial business sets us apart from our competitors, helps us generate value and provides greater oversight over our value chain
Our strategic objective is to grow total shareholder returns Sustainability framework in a sustainable manner while maintaining a strong investment Corporate strategy grade rating and acting as a responsible operator. We recognise Integration Maintain a robust Focus on cost control our ongoing responsibility to not of sustainability and flexible and operational only deliver financial performance throughout our business balance sheet efficiencies but also make a positive contribution to society and create lasting benefits Values for stakeholders in a manner that Safety – Entrepreneurialism – is responsible, transparent and Simplicity – Responsibility – Openness respectful to the rights of all. Code of Conduct We believe that by being a better operator, and doing things the Group sustainability strategy Board HSEC Committee right way, we will become a partner Health (the Committee) has oversight of choice for our stakeholders. We Become a leader in the protection and ultimate responsibility. are achieving this through targeting and improvement of our people’s The Committee receives regular continuous improvement in our and communities’ wellbeing updates and has oversight of health and safety programmes, Safety how our business is performing across all our internally defined, our environmental performance, Become a leader in workplace safety, eliminating fatalities and injuries sustainability-related material community relations and delivering risk areas. on our commitments to respect Environment human rights. Minimise any negative environmental impact from our operations and Sustainability principles, Our approach to integrating apply the precautionary principle guidance and policies in decision-making Integrated throughout the sustainability throughout our business and give guidance business has clearly defined Community and human rights on the standards we expect. imperatives, objectives, priority Foster sustainable growth and respect human rights wherever we operate areas and targets. It supports our business to meet legislative requirements, manage the Group HSEC policies Material topics catastrophic hazards associated • Internal and external materiality with our business, and maintain assessment process to identify material topics our social licence to operate. Operational policies Developed for the specific needs • Material topics are the focus of individual assets of our sustainability strategy review and reporting • Operational activities focus Management, data reporting, on addressing and progressing risk management and assurance the material topics to monitor compliance
Glencore Sustainability Highlights 2018 1 Performance overview
We take our responsibilities to our people, to society and to the environment seriously, and align our activities with the relevant international standards
Achieved On track Not achieved
Material topic 2015–2020 strategic priority Performance indicator 2017 2018 Status
Catastrophic hazard • No major or catastrophic Number of environmental incidents 0 0 management environmental incidents (major and catastrophic)
Workplace safety • No fatalities Fatalities at managed operations 9 13 and health • 50% reduction of Group LTIFR by the end of 2020, Lost time injury frequency rate 1.02 1.06 against 2015 figure of 1.341 • 50% reduction in TRIFR by Total recordable injury frequency rate 3.08 3.18 the end of 2020 using 2014 figures as baseline of 5.021 • Year-on-year reduction in New occupational disease cases 46 32 the number of new cases of occupational disease Number of high-potential risk 368 434 incidents reported
Climate change • 5% (minimum) carbon CO2e Scope 1 (million tonnes) 21.6 18.5 emission intensity reduction on 2016 baseline by 2020 CO2 Scope 2 – location-based 11.6 11.8 (million tonnes)
Total energy use (petajoules) 202 208
Carbon emissions intensity (tGHG/tCu) 4.38 4.09
Water and effluents • Complete implementation Share of sites that have implemented n/a n/a of water management the water management guideline guideline by the end of 2019 (%)
Human rights • No serious human Serious human rights incidents 0 0 and grievance rights incidents mechanisms
Community • Implement our social Community investment spend ($ million) 90 95 engagement value creation strategy and social • Distribute the community commitment leadership programme compliance toolkit
Product • Ongoing engagement Continued engagement with a stewardship with organisations and broad range of stakeholders, including interested stakeholders customers, regulatory organisations on responsible sourcing and industry associations
1 Baseline figures include Glencore Agriculture.
2 Glencore Sustainability Highlights 2018 Participation in external initiatives
We participate in a wide range of external initiatives, including global, national and regional organisations that support our goal of continuous improvement
Our participation in a range of external initiatives supports our commitment to continuously improve our approach and performance across sustainability topics. The International Council on Mining The Task Force on Climate-related Our activities in these organisations & Metals is an international organisation Financial Disclosures guidance supports varies. Our participation ranges dedicated to a safe, fair and sustainable voluntary, consistent climate-related from reporting our progress to mining and metals industry. financial risk disclosures. taking a role in driving strategic change. A number of external organisations assess and publicly report on our performance. We are also members of a number of other industry- and commodity-specific organisations A voluntary initiative with The Corporate Human Rights Benchmark that encourage the extractive CEO commitments to implement is dedicated to creating the first open sector to adopt and implement a universal sustainability principles and and public benchmark of corporate consistent approach. For example, to take steps to support UN goals. human rights performance. we have been a member of the plenary of the Voluntary Principles on Security and Human Rights since 2015 and we are members of the World Economic Forum’s Partnering Against Corruption Initiative.
CDP encourages the disclosure The Extractive Industries Transparency of the environmental impact of Initiative is the global standard to promote major corporations. We participate the open and accountable management in its water questionnaire. of oil, gas and mineral resources.
The Responsible Mining Index encourages 17 global goals set by the continuous improvement across the United Nations to support a industry by assessing the policies and systematic global approach practices of large mining companies. to society’s overall development.
The Maritime Anti-Corruption Network is a global business network working towards a maritime industry free of corruption.
Glencore Sustainability Highlights 2018 3 Material topics
Our approach to reporting on our sustainability performance and progress focuses on the topics identified as being material to Glencore’s development, performance, position and/or future prospects
Every two years, we undertake Our materiality assessments We believe that the identified a materiality assessment to consider topics at global and topics have the potential to establish the areas of focus for local levels as well as considering have the greatest impact on our sustainability strategic review information relating to our business Glencore’s business activities. and the information we disclose and the natural resources sector; At each of its meetings, in our sustainability reporting. our regulatory requirements the Board HSEC Committee Our assessment takes the views and the topics raised during receives an update on our of both internal and external engagement with our people and progress on the management stakeholders into account. external stakeholders including of the identified material topics. local communities, investors, the media, governments and non- governmental organisations.
The topics that we considered material for 2017 and 2018 are:
Catastrophic Workplace Climate Water and Waste and hazard safety and change effluents air emissions management health Page 7 Page 8 Page 9 Page 5 Page 6
Community Human rights engagement Product Our and grievance and social Compliance stewardship people mechanisms commitment Page 14 Page 12 Page 13 Page 10 compliance Page 11
Our 2018 materiality assessment • Catastrophic hazard • Responsible sourcing identified the following topics management • Human rights that will be our focus during • Workplace safety and health • Land stewardship 2019 and 2020: • Climate change and energy • Responsible citizenship • Water • Our people
4 Glencore Sustainability Highlights 2018 Catastrophic hazard management Key activities during 2018
Our approach We recognise the exceptional nature of catastrophic Evacuation guidelines developed and rolled out events; our Catastrophic and Fatal Hazard Zero Management Policy details our approach to their major or catastrophic management, based on critical control management environmental incidents with rigorous monitoring and reporting. We require (2017: zero) catastrophic and fatal hazards controls to be in place and regularly reviewed. Our approach reflects international leading practice and ICMM guidance.
Alignment of our aviation In addition to those protocol with the Flight already in place, protocols Safety Foundation’s Basic on aviation, structural Aviation Risk Standards failure, shaft and winders, and pandemic and communicable diseases developed
Our surface mine We are taking a leading geo-technology workshop role in the ICMM’s was attended by Initiative for Safer Cleaner Vehicles, to build an evolving industry 45 pathway towards the asset-based colleagues safest approach for who have relevant controlling potential expertise and vehicle interactions responsibilities
Learning from each other Through site exchanges, our zinc employees are learning different approaches and processes that they can implement at their own operations. During the site visits, the participants discuss the integration of geo-technology into mine design, planning and scheduling as well as the role of supervisors, risk and contractor management and behaviour-based safety concepts.
Glencore Sustainability Highlights 2018 5 Workplace safety and health Key activities during 2018
Our approach The health and safety of our people is our top priority and we believe that all fatalities, injuries and 4% 3% occupational diseases are preventable. Through year-on-year increase year-on-year increase in strong safety leadership, we can create and maintain in lost time injury total recordable injury safe workplaces for all our people. Risk management frequency rate per frequency rate per is at the heart of our approach. We let our people million hours worked million hours worked know that we expect every individual, both (2018: 1.06; 2017: 1.02) (2018: 3.18. 2017: 3.08) employees and contractors, to take responsibility for their own safety as well as for the safety of their colleagues and the communities in which they work. 434 30% high-potential risk year-on-year decrease incidents reported in new cases of (2017: 368) occupational diseases (2018: 32; 2017: 46)
10% 27% increase in the number increase in the number of sites with zero lost of sites with zero total time injuries over the last recordable injuries over five years the last five years
Frontline safety leadership plans During 2018, our coal assets continued to implement their front-line safety leadership plan to address non-compliances, poor hazard recognition and inadequate risk assessments. This includes undertaking visible leadership activities such as the scheduling and completion of critical control verifications, high-risk work verifications, planned task observations and safety interactions.
6 Glencore Sustainability Highlights 2018 Climate change
Key activities during 2018
Our approach We recognise climate change science as set out by the United Nations Intergovernmental Panel on 4.09 30.3 Climate Change. We believe that the global response carbon intensity Scope 1 CO2e and Scope 2 to climate change should pursue twin objectives: (GHG/tCu) location-based CO2 both limiting temperatures in line with the goals of (2017: 4.38) emissions the Paris Agreement; and supporting the United (million tonnes CO2) Nations Sustainable Development Goals, including (2017: 33.2) universal access to affordable energy.
Published our climate change position 208 statement: Furthering total energy use our commitment to (petajoules) the transition to a (2017: 202) low-carbon economy
We were active We engaged with participants in the ICMM’s interested stakeholders, climate change working such as Climate Action group to develop a paper 100+ and the Transition on target setting and Pathway Initiative resilience for the industry
Onaping Depth nickel project – one of the world’s first fully electric mines Our Sudbury Integrated Nickel Operations in Canada are looking to develop one of the world’s first mines wholly operated by battery electric-powered vehicles. Through using electric vehicles, we will reduce greenhouse gas emissions by 44% and deliver considerable cost savings through reduced fuel and energy usage.
Glencore Sustainability Highlights 2018 7 Water and effluents
Key activities during 2018
Our approach We recognise access to safe and clean water and Continued roll out of our new water management sanitation as a human right. We seek to understand 1,020 guideline group-wide our effect on the environment, minimise our water- water withdrawn related impacts and ensure that our activities do (million m3) not compromise any shared use of water. We are (2017: 924) committed to ensuring good water management is in place at all of our assets, including, where required, appropriate risk assessments, monitoring and implementation of corrective action. We recognise that water management is a complex issue; to understand it fully requires a dialogue between all the multiple stakeholders involved at each site. 3 Our assets consult their host communities and 133m m 3 other relevant local water users to find out of water recycled at ‘moderate’ water-related their priorities and collaborate on solutions. onsite treatment facilities environmental incidents (2017: 1)
23 51% water-related Recycling and community complaints reuse efficiency (2017: 19)
Improving our water management In South Africa, our ferroalloys department is establishing predictive water balances that aim to reduce the amount of water a site withdraws and to identify opportunities for further reductions. Using predictive water balances supports more informed management decisions on the optimisation of operational water use, which in turn can lead to cost savings from the reduced withdrawal of water.
8 Glencore Sustainability Highlights 2018 Waste and air emissions
Key activities during 2018
Our approach We work to minimise our direct and indirect impacts on the environment, complying with or exceeding 2,264 381 relevant regulations and always looking for ways total amount of sulphur dioxide emissions to improve our performance, including reusing as hazardous and non- (thousand tonnes) much waste as possible. Our TSFs undergo regular hazardous mineral (2017: 358) dam safety audits and internal assessments in line waste generated with the stringent regulations relating to their (million tonnes) management. We continuously monitor our TSFs (2017: 2,137) to support their integrity and structural stability. We work to minimise all types of emissions from our stacks, mining operations and processing facilities. We use abatement systems for our air emissions to meet the applicable threshold values. 140 15 tailings storage assets implemented facilities monitored and dust reduction maintained by our assets, programmes for including non-operated emissions from fugitive joint ventures sources and stacks
21 assets implemented reduction initiatives to reduce air emissions
such as SO2, NOx, CO and fumes
Improving air quality In 2014, our Mopani Copper Mines in Zambia completed its $500 million upgrade project for its Mufulira smelter. The completion of the project addressed an 80-year-old legacy issue. Today, Mopani captures around 95% of emissions, in line
with local and international guidelines, and has real-time SO2 monitoring stations spread across the community. Occasionally, emissions levels exceed these limits for a short period, due to power failure or a planned shutdown. We are making numerous efforts to limit emissions.
Glencore Sustainability Highlights 2018 9 Human rights and grievance mechanisms Key activities during 2018
Our approach We are committed to upholding and respecting Reviewed assets’ implementation of the human rights of our people and our local 1,057 Glencore’s Human communities. We seek to apply relevant international community complaints Rights Policy standards to understand, control and mitigate the (2017: 1,063) impact. Our commitment to respect human rights in accordance with the Universal Declaration of Human Rights, the UN Guiding Principles, the UN Global Compact and International Labour Organization’s core conventions is articulated in our Code of Conduct and Group Human Rights Policy. We also seek to apply the Voluntary Principles on Security and Human Rights, Member of a Swiss Participant in the International Finance Corporation’s Standard 5 government-led advisory ICMM’s working group and ICMM’s position statement on Free and Prior group developing on community, Informed Consent. guidance for commodity working on grievance trading companies on mechanisms guidance implementing the UN’s Guiding Principles
Ongoing implementation Finalised our Supplier of the Voluntary Standards which will be Principles in Chad, the foundation for Colombia, the DRC enhanced supply chain and Peru due diligence throughout our marketing business and industrial assets
Respecting human rights During 2018, Fundación Ideas para la Paz conducted an evaluation of Prodeco’s, our Colombian coal asset, grievance mechanism to align it with the UN Governing Principles on Business Enterprises and Human Rights (PRNU). The assessment found that Prodeco’s grievance mechanism has made significant progress on improving its alignment with the PRNU. The evaluation also identified some further areas for improvement, including: improving the definitions of performance, results and impacts indicators to support better internal processes; training on human rights issues; updating the grievance mechanism’s procedures and increasing the traceability of the process through improved documentation and involving interested parties in the investigative process. Prodeco is addressing the recommendations.
10 Glencore Sustainability Highlights 2018 Community engagement and social commitment compliance Key activities during 2018
Our approach Through proactive, strategic stakeholder and community engagement, we can support the $5.7bn $95m advancement of the interests of both our host paid in taxes and royalties community investments communities and our assets. We take a cross- (2017: $4.1bn) (2017: $90m) functional approach to understanding and managing our socio-economic contributions and to deliver shared value while managing our impact on society. Community investments are our contributions to, and financial support of, the broader communities in the regions where we operate. We support programmes for community development, enterprise and job Continued rollout of the creation, health, education and the environment. Community Leadership 96% Programme of our workforce is local to the country where we operate (2017: 96%)
Ongoing engagement with a broad range of NGOs 74% of our global procurement spend is with suppliers and contractors local to the countries where we operate (2017: 76%)
Supporting socio-economic development In Chad, our oil exploration and production team is committed to the nationalisation of its workforce. Multiple initiatives are in place to recruit from the local labour market when the required skillset is available. Where it is not, initiatives such as training and competency development and a robust performance management process are in place to develop the skills and competencies of the local workforce to take positions of increasing responsibility over time.
Glencore Sustainability Highlights 2018 11 Product stewardship
Key activities during 2018
Our approach We work with experts, industry consortia, our peers Ongoing engagement Participation in with organisations developing external and customers to study the properties and impacts regarding responsible responsible sourcing of our products throughout their supply chains and sourcing frameworks for cobalt lifecycles, to spread understanding of our products. and copper We play an active role in industry associations, which supports our approach to producing, transporting, storing and sourcing our products, responsibly and safely. We engage with a broad range of stakeholders, including civil society, governments, industrial partners and our customers, to promote responsible commodity sourcing and meet their information Formalised our approach Active participation needs. We support our approach of ongoing to supply chain in LME and LBMA’s improvement in commodity production by management through consultation on sharing learnings throughout our supply chain. developing Supplier responsible sourcing Standards standards
Contributed to ICMM Finalised our supply chain and RMI’s responsible due diligence programme sourcing round-table
Engagement on responsible sourcing initiatives We were a core taskforce member for the Cobalt Institute’s development of its Cobalt Industry Risk Assessment Framework (CIRAF) for the production of cobalt, running the first desktop pilot study. CIRAF aims to be a broadly accepted responsible cobalt framework and is aligned with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The framework establishes an industry-wide supply chain risk management guidance that focuses on upstream producers of cobalt. It supports the responsible production of cobalt through the delivery of enhanced due diligence aligned with industry good practice and those global frameworks that are focused on the responsible sourcing of minerals.
12 Glencore Sustainability Highlights 2018 Our people
Key activities during 2018
Our approach We believe that diversity is essential to our business and prohibit discrimination on any basis. We do not tolerate 158,000 15% any form of racial, sexual or workplace harassment. people of our employees We protect and uphold fundamental human rights (2017: 146,000) are female around the Group, with fairness, dignity and respect. (2017: 14%) We uphold the International Labour Organization Declaration on Fundamental Principles and Rights at Work. We recognise and uphold our people’s rights to a safe workplace, freedom of association, collective representation, just compensation, job security and development opportunities. Rolled out our Group 11% Diversity Policy global turnover (2017: 9%)
Revised and distributed corporate human resources policies Four of our employees were recognised by Women in Mining’s Top 100
Supporting employees’ mental health Our Ernest Henry Mine (EHM) in Queensland, Australia has implemented a proactive programme to identify, reduce and manage the potential risk factors that can lead to mental health issues. The approach includes mental health awareness and workforce education, social activities in the employee residential area and a site-based employee assistance programme. EHM’s mental health wellbeing programme has the potential to address absenteeism and return-to-work time frames associated with impaired or untreated mental health conditions.
Glencore Sustainability Highlights 2018 13 Compliance
Key activities during 2018
Our approach We seek to maintain a culture of ethical behaviour and compliance throughout the Group, rather than 33,944 27, 5 10 simply performing the minimum required by laws employees and employees and regulations. We will not knowingly assist any contractors completed completed e-Learning third party in breaching the law, or participate in any e-Learning training on training on anti-corruption criminal, fraudulent or corrupt practice in any country. our Code of Conduct (2017: 22,872) (2017: 31,737)
Continued our membership of the Partnering Against Corruption Initiative and the Maritime Anti-Corruption Network
Training and awareness Our employees receive induction sessions and ongoing training on a range of compliance issues. We tailor our training programmes and make them relevant for our employees and contractors by including real-life hypothetical scenarios which illustrate how legal and ethical dilemmas might manifest themselves in their daily work activities. In 2018, 33,944 employees and contractors (2017: 31,737) completed our Code of Conduct e-Learning which includes guidance on raising concerns. In addition, 27,510 (2017: 22,872) completed e-Learning training on our global Anti-Corruption Policy, which includes guidance on important topics such as facilitation payments, the giving and receiving of gifts and entertainment and dealings with public officials.
14 Glencore Sustainability Highlights 2018 Responsibly sourcing the commodities for everyday life
Sustainability publications Find us on Our annual sustainability report reviews our activities @Glencore and performance in 2018. It details how we address our most material risks and opportunities; it is aimed at facebook.com/Glencore employees, investors, business partners, customers, youtube.com/glencorevideos governments and NGOs.
Our databook meets the requirements of the Global Reporting Initiative and details the data that supports our performance.
Our Approach to Sustainability publication sets out our approach to integrating sustainability throughout our business.
We also publish an annual payments to government report and modern slavery statement as well as standalone human rights and water reports.
These are available online atglencore.com/sustainability
Sustainability online Further information on our sustainability activities, plus more detailed data on our key sustainability indicators, is available on our website: glencore.com Disclaimer The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, “Glencore”, “Glencore Group” and “Group” are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.
Glencore plc Baarermattstrasse 3 CH-6340 Baar Switzerland Tel: +41 41 709 2000 Fax: +41 41 709 3000 E-mail: [email protected] glencore.com