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GLENCORE PLC - GLN - Publication of second Climate Action Transition Plan

Release Date: 20/03/2024 09:11
Code(s): GLN     PDF:  
Wrap Text
GLN - Publication of second Climate Action Transition Plan

Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
LEI: 2138002658CPO9NBH955

Baar, Switzerland
20 March 2024

Publication of second Climate Action Transition Plan

Today, we release our second Climate Action Transition Plan (the 2024-2026 CATP). We
continue to evolve our approach first published in 2020, introduce a new interim
industrial emissions reduction target and lay out our plans for the next three years
considering the risks and opportunities of our current combined energy and metals

Gary Nagle, Chief Executive Officer, said:

"Our 2024-2026 CATP reflects a wide range of inputs, including analysis of the evolving
market landscape, new regulatory requirements, mining and energy peer approaches,
the IEA's latest modelling, stakeholder inputs, and emerging insights from the most
recent UNFCCC dialogue. We have also undertaken extensive engagement with our
shareholders and appreciate their time and support as we have developed this CATP.

"Reflecting on these various inputs, this CATP retains our existing emissions reduction
targets, of 15% and 50% by the end of 2026 and 2035 respectively and our 2050 ambition
of achieving net zero industrial CO2e emissions, subject to a supportive policy
environment. It also introduces a new interim target of a 25% reduction in CO2e
emissions for our industrial assets by the end of 2030. We are on track to meet our 2026,
2030 and 2035 emissions reduction targets, all of which are measured against a restated
2019 baseline.

"Looking ahead, our plan focuses on the delivery of our commitments, including
implementing our MACC initiatives (where practicable and economically viable) and
responsibly phasing down our thermal coal operations, while also allocating capital to
grow our transition-enabling commodities business, and evolving our understanding
and assessment of the climate-related risks and opportunities that our business faces."

Our progress
We have maintained our previous industrial emissions reduction targets and ambition.
Our transition plan reaffirms our existing targets against a restated 2019 baseline and

adds a new interim target, leading towards a 2050 net zero emissions ambition, subject
to a supportive policy environment:

   -      2026: 15% reduction in our Scope 1, 2 and 3 industrial CO2e emissions against a
          restated 2019 baseline by the end of 2026

   -      2030: 25% reduction in our Scope 1, 2 and 3 industrial CO2e emissions against a
          restated 2019 baseline by the end of 2030

   -      2035: 50% reduction in our Scope 1, 2 and 3 industrial CO2e emissions against a
          restated 2019 baseline by the end of 2035

Glencore's role in the climate transition
Glencore plays an important role in supporting the global transition to a low carbon
economy. Across our business, we produce, distribute and recycle commodities that are
key components of current transition technologies while supporting the energy needs
of today.

The pace and pathway of decarbonisation are heavily influenced by many factors, from
geopolitics to technological innovation. Our 2024-2026 CATP must therefore be resilient
and flexible to cope with external economic and political factors, whilst sustaining our
own climate targets and ambition. These external factors also highlight the need for
global coordination and progressive and well-designed policies that are consistent with
a just and orderly transition.

That is why continuous dialogue and engagement with stakeholders is an important
part of how we develop our plans. The 2024-2026 CATP reflects a wide range of inputs,
from stakeholder engagement to the IEA's latest modelling to analysing peer

Our strategic pillars
The 2024-2026 CATP is comprised of four strategic pillars:

1.       Managing our operational footprint: We continue to identify and deliver cost-
         effective emissions reduction opportunities for our Scope 1 and 2 emissions.
         Whilst our Scope 1 and 2 industrial emissions reflect a small proportion of our
         overall emissions footprint, these factors are within our control and we are
         developing solutions to address them, such as electrification and alternative fuel,
         as well as strengthening our own monitoring capabilities.

2.       Responsibly reducing our Scope 3 industrial emissions: We remain committed
         to the responsible phase-down of our coal portfolio. We recognise the different
         roles of thermal coal and steelmaking coal – and the different transition pathways
         for both.

         We reaffirm our approach to responsibly reduce our production of thermal coal in
         an orderly and just way. As part of this, we are not progressing any greenfield
         thermal coal investments. We expect a continued phase down of our thermal coal
         plants, reflecting our emissions reduction targets and in line with our Just
         Transition Principles. We will strive to mitigate impacts and accelerate the social
         benefit potential of any operational decisions on our local communities.
3.       Advancing tomorrow through our transition-enabling commodities portfolio:
         The expected growth in clean energy and low-carbon technologies is leading to
         an increased need for 'transition' commodities and we are investing to meet an
         expected significant increase in demand for these.

4.       Driving new business models: We are positioning our business for the future
         through the pursuit of new business models that support the transition, such as
         recycling and carbon solutions.

Elk Valley Resources
We have agreed with Teck Resources Ltd to acquire a 77% interest in its steelmaking
coal business, Elk Valley Resources (EVR), which remains subject to mandatory
regulatory approvals and is expected to close by no later than Q3 2024.

Steelmaking coal is an important transition-enabling commodity as it is an essential
input into much of the world's steelmaking in its current form. Steel is necessary for
constructing transportation and infrastructure such as ocean-going vessels, rail, bridges
and buildings, as well as energy transition infrastructure including wind turbines.

As there was no certainty that any transaction would be agreed when we commenced
work on this strategy, and because we do not yet have access to the necessary
information relating to EVR, we have developed this strategy considering the risks and
opportunities of our current portfolio of our integrated energy and metals business.

Our commitment to future reporting
We intend to submit our 2024-2026 CATP for an advisory vote at our 2024 AGM. We will
continue to review our CATP every three years, or if there are material changes to our
business, and seek advisory votes when our climate plans are renewed.

For further information please contact:
 Martin Fewings            t: +41 41 709 28 80     m: +41 79 737 56 42

 Charles Watenphul         t: +41 41 709 24 62     m: +41 79 904 33 20

Glencore LEI: 2138002658CPO9NBH955

Note on 'our emissions' and other terminology
References to 'Glencore's emissions', 'our emissions' or 'industrial emissions' mean CO2e emissions from our
industrial assets (including Scope 1, 2 and 3) which is defined by reference to our organisational boundary of
operational control, as set out in the About our emissions calculations and reporting section in our latest
Annual Report and our latest Basis of Reporting. Where 'industrial' is used before 'emissions', this is for
additional clarity, and the underlying meaning is the same irrespective of whether this is included.
Throughout our 2024-2026 Climate Action Transition Plan (CATP), where we refer to our aim and/or efforts
to achieve 'net zero emissions' we are referring to a net zero ambition in relation to our industrial emissions.
Reference is made to the Group Reporting Glossary available at for the 2023
reporting suite with respect to the terms used the 2024-2026 CATP.

Notes for Editors
Glencore is Glencore is one of the world's largest global diversified natural resource companies and a major
producer and marketer of more than 60 commodities that advance everyday life. Through a network of
assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and
distribute the commodities that support decarbonisation while meeting the energy needs of today.
With over 150,000 employees and contractors and a strong footprint in over 35 countries in both established
and emerging regions for natural resources, our marketing and industrial activities are supported by a
global network of more than 50 offices.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation,
battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers
and consumers of commodities.
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.
We will support the global effort to achieve the goals of the Paris Agreement through our efforts to
decarbonise our own operational footprint. We believe that we should take a holistic approach and have
considered our commitment through the lens of our global industrial emissions. Against a restated 2019
baseline, we are targeting to reduce our Scope 1, 2 and 3 industrial emissions by 15% by the end of 2026, 25%
by the end of 2030, 50% by the end of 2035 and we have an ambition to achieve net zero industrial
emissions by the end of 2050, subject to a supportive policy environment. For more information see our
2024-2026 Climate Action Transition Plan and the About our emissions calculation and reporting section in
our 2023 Annual Report, available on our website at

Important Information
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for any securities.

Cautionary statement regarding forward-looking information
Certain descriptions in this document are oriented towards future events and therefore contains statements that are, or
may be deemed to be, "forward-looking statements" which are prospective in nature. Such statements may include,
without limitation, statements in respect of trends in commodity prices and currency exchange rates; demand for
commodities; reserves and resources and production forecasts; expectations, plans, strategies and objectives of
management; expectations regarding financial performance, results of operations and cash flows, climate scenarios;
sustainability performance (including, without limitation, environmental, social and governance) related goals, ambitions,
targets, intentions, visions, milestones and aspirations; approval of certain projects and consummation of certain
transactions (including, without limitation, acquisitions and disposals, in particular the proposed acquisition of a majority
stake of EVR from Teck Resources Limited and potential subsequent demerger of the combined coal and carbon steel
materials business); closures or divestments of certain assets, operations or facilities (including, without limitation,
associated costs); capital costs and scheduling; operating costs and supply of materials and skilled employees; financings;
anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; and tax, legal and
regulatory developments.

These forward-looking statements may be identified by the use of forward-looking terminology, or the negative thereof
including, without limitation, "outlook", "guidance", "trend", "plans", "expects", "continues", "assumes", "is subject to",
"budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "projects", "anticipates",
"believes", or variations of such words or comparable terminology and phrases or statements that certain actions, events
or results "may", "could", "should", "shall", "would", "might" or "will" be taken, occur or be achieved. The information in this
document provides an insight into how we currently intend to direct the management of our businesses and assets and

to deploy our capital to help us implement our strategy. The matters disclosed in this document are a 'point in time'
disclosure only. Forward-looking statements are not based on historical facts, but rather on current predictions,
expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of
operations, prospects, financial conditions and discussions of strategy, and reflect judgments, assumptions, estimates and
other information available as at the date of this document or the date of the corresponding planning or scenario analysis

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements to differ materially from any future event, results, performance,
achievements or other outcomes expressed or implied by such forward-looking statements. Important factors that could
impact these uncertainties include (without limitation) those disclosed in the risk management section of our latest
Annual Report and Half-Year Report (which can each be found on our website). These risks and uncertainties may
materially affect the timing and feasibility of particular developments. Other factors which impact risks and uncertainties
include, without limitation: the ability to produce and transport products profitably; demand for our products and
commodity prices; development, efficacy and adoption of new or competing technologies; changing or divergent
preferences of our stakeholders; changes to the assumptions regarding the recoverable value of our tangible and
intangible assets; changes in environmental scenarios and related regulations, including, without limitation, transition
risks and the evolution and development of the global transition to a low carbon economy; recovery rates and other
operational capabilities; timing, quantum and nature of certain acquisitions and divestments; health, safety,
environmental or social performance incidents; labour shortages or workforce disruptions; natural catastrophes or
adverse geological conditions, including, without limitation, the physical risks associated with climate change; effects of
global pandemics and outbreaks of infectious disease; the outcome of litigation or enforcement or regulatory
proceedings; the effect of foreign currency exchange rates on market prices and operating costs; actions by
governmental authorities, such as changes in taxation or regulation or changes in the decarbonisation policies and plans
of other countries; changes in economic and financial market conditions generally or in various counties or regions;
political or geopolitical uncertainty; and wars, political or civil unrest, acts of terrorism, cyber-attacks or sabotage.

Readers, including, without limitation, investors and prospective investors, should review and consider these risks and
uncertainties (as well as the other risks identified in this document) when considering the information contained in this
document. Readers should also note that the high degree of uncertainty around the nature, timing and magnitude of
climate-related risks, and the uncertainty as to how the energy transition will evolve, makes it difficult to determine all
potential risks and opportunities and disclose these and any potential impacts with precision. Neither Glencore nor any of
its affiliates, associates, employees, directors, officers or advisers, provides any representation, warranty, assurance or
guarantee as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forward-
looking information contained in this document or that the events, results, performance, achievements or other
outcomes expressed or implied in any forward-looking statements in this document will actually occur. Glencore cautions
readers against reliance on any forward-looking statements contained in this document, particularly in light of the long-
term time horizon which this document discusses in certain instances and the inherent uncertainty in possible policy,
market and technological developments in the future.

No statement in this document is intended as any kind of forecast (including, without limitation, a profit forecast or a
profit estimate), guarantee or prediction of future events or performance and past performance cannot be relied on as a
guide to future performance.

Except as required by applicable regulations or by law, Glencore is not under any obligation, and Glencore and its affiliates
expressly disclaim any intention, obligation or undertaking, to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. This document shall not, under any circumstances, create any
implication that there has been no change in the business or affairs of Glencore since the date of this document or that
the information contained herein is correct as at any time subsequent to its date.

Cautionary statement regarding climate strategy
Glencore operates in a dynamic and uncertain market and external environment. Plans and strategies can and must
adapt in response to dynamic market conditions, changing preference of our stakeholders, joint venture decisions,
changing weather and climate patterns, new opportunities that might arise or other changing circumstances. Investors
should assume that our climate strategy will evolve and be updated as time passes. Additionally, a number of aspects of
our strategy involve developments or workstreams that are complex and may be delayed, more costly than anticipated or
unsuccessful for many reasons, including, without limitation, reasons that are outside of Glencore's control. Our strategy
will also necessarily be impacted by changes in our business, such as the proposed acquisition of EVR and potential
demerger of the combined coal and carbon steel materials business.

There are inherent limitations to scenario analysis, and it is difficult to predict which, if any, of the scenarios might
eventuate. Scenario analysis relies on assumptions that may or may not be, or prove to be, correct and that may or may
not eventuate and scenarios may also be impacted by additional factors to the assumptions disclosed. Given these
limitations we treat these scenarios as one of several inputs that we consider in our climate strategy.

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. GHG emissions calculation and reporting methodologies may change or be progressively
refined over time resulting in the need to restate previously reported data. 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 the About our emissions calculations and reporting section in our 2023 Annual Report and our 2023 Basis of
Reporting, which are available on our website.

Certain statistical and other information included in this document is sourced from publicly available third-party sources.
This information has not been independently verified and presents the view of those third parties and may not necessarily
correspond to the views held by Glencore and Glencore expressly disclaims any responsibility for, or liability in respect of,
and makes no representation or guarantee in relation to, such information (including, without limitation, as to its
accuracy, completeness or whether it is current). Glencore cautions readers against reliance on any of the industry,
market or other third-party data or information contained in this document.

Information preparation
In preparing this document, Glencore has made certain estimates and assumptions that may affect the information
presented. Certain information is derived from management accounts, is unaudited and based on information Glencore
has available to it at the time. Figures throughout this document are subject to rounding adjustments. The information
presented is subject to change at any time without notice and we do not intend to update this information except as

Subject to any terms implied by law which cannot be excluded, Glencore accepts no responsibility for any loss, damage,
cost or expense (whether direct or indirect) incurred by any person as a result of any error, omission or misrepresentation
in information in this document.

Other information
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.

Absa Corporate and Investment Bank, a division of Absa Bank Limited

Date: 20-03-2024 09:11:00
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