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GLENCORE PLC - GLN - Furthering our commitment to the transition to a low-carbon economy

Release Date: 20/02/2019 09:02
Code(s): GLN     PDF:  
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GLN - Furthering our commitment to the transition to a low-carbon economy

Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64

Baar, Switzerland
20 February 2019

Furthering our commitment to the transition to a low-carbon
economy

As one of the world’s largest diversified resource companies, Glencore has a
key role to play in enabling transition to a low carbon economy. We do this
through our well-positioned portfolio that includes copper, cobalt, nickel,
vanadium and zinc - commodities that underpin energy and mobility
transformation. We believe this transition is a key part of the global response
to the increasing risks posed by climate change.

We recognise climate change science as set out by the United Nations
Intergovernmental Panel on Climate Change. We believe that the global response
to climate change should pursue twin objectives: both limiting temperatures in
line with the goals of Articles 2.1(a) (1) and 4.1(2) of the Paris Agreement (’the
Paris Goals’) and supporting the United Nations Sustainable Development Goals,
including universal access to affordable energy.

To deliver a strong investment case to our shareholders, we must invest in
assets that will be resilient to regulatory, physical and operational risks
related to climate change.

To meet the growing needs of a lower carbon economy, Glencore aims to prioritise
its capital investment to grow production of commodities essential to the energy
and mobility transition and to limit its coal production capacity broadly to
current levels(3).

(1) Article 2.1(a) of The Paris Agreement states the goal of "Holding the increase in the global
average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit
the temperature increase to 1.5°C above pre-industrial levels, recognizing that this would
significantly reduce the risks and impacts of climate change."
(2) Article 4.1 of The Paris Agreement reads: “In order to achieve the long-term temperature goal
set out in Article 2, Parties aim to reach global peaking of greenhouse gas emissions as soon as
possible, recognizing that peaking will take longer for developing country Parties, and to
undertake rapid reductions thereafter in accordance with best available science, so as to achieve
a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in
the second half of this century, on the basis of equity, and in the context of sustainable
development and efforts to eradicate poverty.”
(3) This may include the exercise of our pre-emptive rights to acquire minority stakes of joint-
venture partners in our existing operations.

Following engagement with investor signatories of the Climate Action 100+
initiative, we are taking the following steps to further our commitment to the
transition to a low-carbon economy:

    1. Paris-consistent strategy / capital discipline
       As Glencore rebalances its portfolio towards commodities that support the
       transition to a low-carbon economy, the intensity of Scope 3 emissions
       is expected to decrease. Starting in 2020, we will start disclosing our
       longer-term projections for the intensity reduction of Scope 3 emissions,
       including mitigation efforts.

       Glencore recognises the importance of disclosing to investors how the
       company ensures that material capital expenditure and investments are
       aligned with the Paris Goals. This includes each material investment in
       the exploration, acquisition or development of fossil fuel (including
       thermal and coking coal) production, resources and reserves, as well as
       in resources, reserves and technologies associated with the transition
       to a low carbon economy. Starting in 2020, we intend to report publicly
       on the extent to which, in the Board’s opinion, this was achieved in the
       prior year and the methodology and core assumptions for this assessment.
       These disclosures will be made in our Annual Report.

    2. Public Scope 1 and 2 targets
       In 2017, we announced our first target of reducing our greenhouse gas
       emissions intensity by 5% by 2020 compared to a 2016 baseline. We are
       currently on track to meet this target.

       Glencore recognizes the importance of continued reductions of greenhouse
       gas emissions from our operations. We are developing new, longer-term
       targets based on policy and technological developments that support the
       Paris Goals, and intend to make these public in our Annual Report in
       2020. We will report annually on our progress.

    3. Review of Progress
       Glencore reports annually on the progress in meeting its climate change
       objectives. The disclosure is included in our Annual Report and supported
       by further details in the Sustainability Report. We are committed to
       transparency and will continue to publish data on our climate change
       performance on our website, including continued disclosure of our Scope
       3 emissions.

       We will give consideration to how our climate change objectives can be
       reflected in the design of the relevant schemes for executive management.

       In addition to our reporting under 1 and 2 above, every three years, we
       will review any changes to the Nationally Determined Contributions (NDCs)
       in line with the Paris Agreement mechanism, and other relevant policy,
       economic and technology developments to assess societal progress in the
       energy transition and to update our scenario-based portfolio assessment.

    4. Alignment with Taskforce on Climate-related Financial Disclosures (TCFD)
       recommendations
       Glencore was an early supporter of the voluntary guidance on consistent
       climate related financial disclosures produced by the TCFD. We are pleased
       to publicly support the TCFD guidance and have started to implement its
       recommendations in our annual reporting.
       Consistent with TCFD recommendations, as appropriate, Glencore will
       continue to disclose the metrics, targets and scenarios we use to assess
       and manage relevant climate-related risks and opportunities.

    5. Corporate climate change lobbying
       Glencore believes that it is appropriate that we take an active and
       constructive role in public policy development and to participate in
       relevant trade associations. Glencore acknowledges “IIGCC Investor
       Expectations on Corporate Climate Lobbying” and recognizes the importance
       of ensuring that its membership in relevant trade associations does not
       undermine its support for the Paris Agreement and the Paris Goals.

       Glencore will consider whether its membership in relevant trade
       associations aligns with the company’s stated positions in this
       statement. The result of this review, including any material
       misalignments identified and actions that will be taken, will be made
       public in 2019.

For further information please contact:

Investors
Martin Fewings        t: +41 41 709 2880    m: +41 79 737 5642    martin.fewings@glencore.com
Ash Lazenby           t: +41 41 709 2714    m: +41 79 543 3804    ash.lazenby@glencore.com

Media                
Charles Watenphul     t: +41 41 709 24 62   m: +41 79 904 33 20   charles.watenphul@glencore.com
                     
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955

Notes for Editors

Glencore is one of the world’s largest global diversified natural resource companies
and a major producer and marketer of more than 90 commodities. The Group's operations
comprise around 150 mining and metallurgical sites, oil production assets and
agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources,
Glencore's industrial and marketing activities are supported by a global network of more
than 90 offices located in over 50 countries.

Glencore's customers are industrial consumers, such as those in the automotive, steel,
power generation, oil and food processing sectors. We also provide financing, logistics
and other services to producers and consumers of commodities. Glencore's companies
employ around 158,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human
Rights and the International Council on Mining and Metals. We are an active participant
in the Extractive Industries Transparency Initiative.

Follow us on social media:
      www.facebook.com/Glencore
      www.flickr.com/photos/glencore
      www.instagram.com/glencoreplc
      www.linkedin.com/company/8518
      www.slideshare.net/glencore
      www.twitter.com/glencore
      www.youtube.com/glencorevideos

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 the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively
to members of the Group or to those who work for them. These expressions are also used where no
useful purpose is served by identifying the particular company or companies.

Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking Division)

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