Climate report 2022
Energising Advancing
today tomorrow
Strategic Report | Delivering our ambition Review of industry organisations | Additional Information |
Energising today:
As the world moves towards a low-carbon economy, we are focused on supporting the energy needs of today whilst investing in our transition metals portfolio.
Read more about how we allocate capital to prioritise transition metals: pXX
Advancing tomorrow:
The world of tomorrow will look very different, with new sources of energy and ever greater levels of connectivity. The metals we produce, source and market will support the global ambition to decarbonise.
Our Purpose
Responsibly sourcing the commodities that advance everyday life.
Explore our Climate Report online at: www.glencore.com
Strategic approach
Highlights | 2 |
Chairman's statement | 3 |
Chief Executive Statement | 4 |
Our Climate Action Transition Plan | 6 |
Our targets and ambition | 8 |
Just Transition | 12 |
Governance | 15 |
Risks and opportunities | 20 |
Our seven actions to support Net Zero
Managing our operational footprint | 27 |
Reducing Scope 3 emissions | 33 |
Allocating capital to prioritise transition | 37 |
metals | |
Collaborating with our value chain | 39 |
Supporting updake and integration of | 42 |
abatement | |
Utilising technology to improve resource | 43 |
use efficiency | |
Transparent approach | 46 |
Review of industry organisations
Review of industry organisations | 50 |
Additional Information
Appendix One: Our positions on climate- | 57 |
related topics | |
Appendix Two: Performance data | 59 59 |
Appendix Three: Industry organisations | 66 |
Glossary | 68 |
About this report | 71 |
Important notice | 78 |
Contact us | 79 |
Strategic Report | Delivering our ambition Review of industry organisations | Additional Information |
Important notice | Note on 'our emissions' |
This document has been prepared to provide our investors and potential investors with information on | |
our progress against our 2020 climate change strategy, Pathway to Net Zero. | 'Glencore's emissions' or 'our emissions' means CO2e emissions from our industrial assets (including |
This document has not been prepared as financial or investment advice or to provide any guidance in | Scope 1, 2, and 3) which is defined by reference to operational control save for certain emissions |
relating to our equity share in certain independently managed joint ventures, as set out in the About | |
relation to our future performance. It should be read as a whole, and in conjunction with our periodic | |
this report section, in Appendix two: Performance data and in the Basis of Reporting 2022. Where | |
reporting and other announcements (including, without limitation, regulatory announcements made in | |
'industrial' is used before 'emissions', this is for additional clarity, and the underlying meaning is the | |
connection with our listings on the London Stock Exchange and Johannesburg Stock Exchange ). | |
same irrespective of whether this is included. | |
Glencore operates in a dynamic and uncertain market and external environment. Plans and strategies | Throughout this report, where we refer to our aim and/or efforts to achieve 'net zero emissions' we |
can and must adapt in response to dynamic market conditions, joint venture decisions, new opportunities | |
are referring to a net zero ambition in relation to our emissions. | |
that might arise or other changing circumstances. Investors should not assume that our strategy on | |
climate change will not evolve and be updated as time passes. Additionally, a number of aspects of our | Our 2020 climate strategy focuses on our industrial emissions because we consider these emissions |
strategy involve developments or workstreams that are complex and may be delayed, more costly than | to be the most relevant emissions for the diversified mining sector, given that they arise from (or are |
anticipated or unsuccessful for many reasons, including (without limitation) reasons that are outside of | direct consequences of) our own natural resources production. |
Glencore's control. | Scope 3 emissions associated with third-party volumes traded by our marketing business are not |
There are inherent limitations to scenario analysis and it is difficult to predict which, if any, of the scenarios | |
included in our emissions reporting and targets because, in our view, those trading activities do not | |
might eventuate. Scenario analysis relies on assumptions that may or may not be, or prove to be, correct | result in the generation of additional Scope 3 emissions associated with the transformation or |
and that may or may not eventuate and scenarios may also be impacted by additional factors to the | consumption of the product. The trading of these volumes may give rise to additional emissions |
assumptions disclosed. Given these limitations we treat these scenarios as one of several inputs that we | associated with the transportation and handling of these products and these emissions have been |
consider in our climate strategy. | included in our strategy. We continue to strengthen the accuracy of our reporting of these emissions. |
Due to the inherent uncertainty and limitations in measuring greenhouse gas (GHG) emissions and | |
operational energy consumption under the calculation methodologies used in the preparation of such | |
data, all CO2e emissions and operational energy consumption data or volume references (including, | |
without limitation, ratios and/or percentages) in this document are estimates. There may also be | |
differences in the manner that third parties calculate or report such data compared to Glencore, which | |
means that third-party data may not be comparable to Glencore's data. For information on how we | |
calculate our emissions and operational energy consumption data, see our latest Basis of Reporting 2022, | |
Climate Report and Extended ESG Data, which can be found on our website. | |
Please also refer to the important notice concerning this report, including in relation to forward-looking | |
statements, on page 78. |
Glencore Climate Report 2022 | 1 |
Strategic Report | Delivering our ambition Review of industry organisations | Additional Information |
Performance highlights 2022
Enhanced disclosures
Enhanced disclosures based on feedback received from an extensive consultation with shareholders following the vote on our 2021 Climate Progress Report.
Aligning our capital expenditure
Continued alignment of our material capital expenditure and investments with the goals of the Paris Agreement and our own climate commitments. In 2022, around 75% of our capital expenditure was on sustaining and expanding our metals operations, with 25% used to our energy portfolio as it is responsibly managed down over time.
Restating our 2019 baseline
Restated our 2019 baseline for our emissions (Scope 1, 2 and 3 emissions, market based) from 374 to 508 million tonnes of CO2e to reflect acquisitions and divestments and other changes to the scope of reporting to enhance clarity and consistency.
Understanding our products' carbon footprints
Participated in efforts to understand our commodities' CO2e emission. In 2022, we contributed to the development of the Global Battery Alliance's Battery Passport, which provides a framework for collecting and reporting on certain ESG data. We also provided input into GBA's 'rulebook' for the GHG footprint and participated in its battery passport pilot.
A non-linear transition
We believe that the global energy transition will be non-linear through time and geography and may create significant challenges for stakeholders in our value chain. We have developed an initial set of principles that will inform our approach to a Just Transition. These build on our existing commitments and practices around closure planning and social and environmental
management.
Abating Scope 1 and 2 emissions
Identified a total of 4.4Mt of CO2 in potential Scope 1 abatement opportunities and 9.9 Mt of CO2 in potential Scope 2 abatement opportunities, as represented on the
2035 Marginal Abatement Cost Curve.
Supporting uptake and integration of abatement
Continued to progress our wholly-owned Carbon Transport and Storage Company (CTSCo) Project, which aims to demonstrate carbon capture from a power station and the sustainable storage of the captured CO2 in the Surat Basin in Queensland, Australia. Studying the potential use of a relatively small portion of the Wandoan coal resource (up to 4 million tonnes per annum) as a feedstock to produce blue hydrogen and ammonia, with the intention to capture approximately 90% of CO2e emissions from this process and permanently store them deep underground using CCS technology.
Transparency on our advocacy activities
Disclosed our direct advocacy linked to climate-related topics and conducted our annual review of the positions and activities of the industry organisations to which we belong.
Our performance highlights 2022
Scope 1 emissions
(CO e million tonnes)
162 .6
2021: 15.9 (rebased from 15.0)
Scope 2 location-based emissions
(CO e million tonnes)
102 .4
2021: 10.4 (rebased from 10.8)
Scope 2 market-based emissions
(CO e million tonnes)
112 .4
2021: 11.4 (rebased from 11.1)
Total energy use
(petajoules)
193
2021: 186 (rebased from 178)
Scope 3 emissions
(CO e million tonnes)
3422
2021: 365 (rebased from 254)
Glencore Climate Report 2022 | 2 |
Strategic Report | Delivering our ambition Review of industry organisations | Additional Information |
Chairman's statement
I am proud of the progress we are making in delivering our climate commitments
Kalidas Madhavpeddi
Chairman
When I became Chairman in 2021, Glencore had already established a strong strategic approach towards managing its emissions and implementing initiatives that would support the delivery of the goals of the Paris Agreement and had launched its climate strategy with strong investor support. The Company has continued to respond actively to the challenges of climate change and to take actions to deliver on its strategy.
Given the importance of climate strategy to the company, the Board is responsible for overseeing the Group's climate strategy and progress on implementation of our strategy is a standing item on the Board agenda, and is discussed in Board meetings at least twice yearly. During Board meetings, we discuss the Group's progress on delivering our climate strategy, consider the steps that the Group may need to take to address risks and challenges and how best to leverage opportunities.
We receive regular updates from our CEO, Gary Nagle, as chair of our Climate Change Taskforce. We use this information and consider climate issues when reviewing strategic decisions, including those relating to major capital expenditure and acquisitions and divestments with the potential to affect our emissions profile across Scope 1, 2 and 3 emissions.
Board members receive annual training on a range of climate change matters. These have included our duties as directors, legal risks, external expectations and evolving climate issues. This training has emphasised the importance of effective integration of climate change into the Group's risk management processes and related Board oversight.
In 2022, I have actively engaged with our shareholders and interested stakeholders on climate change. At our 2022 Annual General Meeting, we had our second shareholder advisory vote on the progress against our three-yearly climate action transition plan. In response to the results of this vote, along with Gary, I undertook an active engagement programme to understand better our shareholders' views on our climate strategy.
The Board and I considered the feedback received from the shareholder consultation process and discussed and approved the steps the Group should take to respond to these issues. We have set out the key points raised during our discussions with shareholders on climate change and how we are responding on page 49.
I am proud of the progress we are making in delivering our climate commitments and believe our holistic approach to supporting the global transition to a low-carbon economy.
Kalidas Madhavpeddi,
Chairman
23 March 2023
Glencore Climate Report 2022 | 3 |
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Glencore plc published this content on 23 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2023 13:42:10 UTC.