Glencore Plc · LSE:GLEN
Glencore — ESG Presentation (June 2014)
31 slides from Glencore's sustainability presentation, Jun 30, 2014
Slide 1: Sustainable Development Presentation
Sustainable Development Presentation London, 30 June 2014
Slide 2: Agenda
Agenda 1 Welcome – Tony Hayward 2 Overview of Sustainable Development – Peter Coates 3 2013 Performance Highlights and Next Steps – Ivan Glasenberg 4 Q&A 2
Slide 3: Opening comments
Opening Opening comments comments Tony Hayward Tony Hayward
Slide 4: Our values
Our values Our Values We want our employees to be ambassadors for our core Values Values GLENCORE 4
Slide 5: Glencore today
Glencore today • Major producer and marketer of over 90 commodities, with operations in over 50 countries • Successful integration of Xstrata complete • Strong owner-manager culture • Roll-out of new Code of Conduct post-Xstrata acquisition. • Policies addressing material SD issues completed the GCP
Slide 6: A strong board
A strong board Anthony Hayward Leonhard Fischer Chairman H Non Executive Director A(C), N • Former CEO of BP • CEO of RHJ International (parent • CEO of Genel Energy (LON) of the Kleinwort Benson Group) (EBR) • NED of Julius Baer (VTX) Ivan Glasenberg, CEO William Macaulay Executive Director H Non E
Slide 7: Forward agenda
Forward agenda • Total board commitment to improving safety performance • Continue to contribute to socio-economic development wherever we operate and identify partners to achieve lasting change on the ground • Transparent and open dialogue with all our stakeholders • Active role in shaping the glob
Slide 8: Overview of Sustainable Development
Overview of Sustainable Development Overview of Sustainable Development Peter Coates Peter Coates
Slide 9: Approach to SD: Glencore Corporate Practice (GCP)
Approach to SD: Glencore Corporate Practice (GCP) Our Values: fundamental principles by which we conduct our business Values Code of Conduct: how we work in accordance with Code of these principles Conduct Corporate policies: operational guidance Corporate Policies detailing expectation of key manag
Slide 10: SD Governance - Role and Responsibilities of the Board
SD Governance - Role and Responsibilities of the Board To review and endorse the Group Values and ensure that the corporate policies and Code of Conduct reflect these values. To ensure that the Values, polices and Code of Conduct are effectively communicated throughout the organisation. To ensure th
Slide 11: SD Governance – Meeting our Obligations
SD Governance – Meeting our Obligations Sustainability is embedded across the organisation: • At Board level, HSEC Committee, which includes the Chairman and CEO, oversees the development and implementation of corporate policies and strategic programmes. • At Group level, corporate policies and stan
Slide 12: SD Governance – Meeting our Obligations: Assurance
SD Governance – Meeting our Obligations Assurance Informal Assurance Formal DuPont Base Site Visits Line Audits Interviews Internal with audits management HSEC KPI reports to assurance the Board (in progress) 12
Slide 13: SD Governance - Progress
SD Governance - Progress Since our inaugural SD presentation in November 2013: • Chairman appointed • Female Director appointed • Admitted to membership of ICMM • Climate change position in progress • Anti Bribery and Corruption policy made public • Developed and made public the Human Rights policy
Slide 14: Corporate policies
Corporate policies Nine internal HSEC policy documents launched in early 2014: » HSEC Management Framework » Health & Safety » Environment » Human Rights » Community & Stakeholder Engagement » Catastrophic Incidents & Hazards » Emergency Response & Crisis Management » Risk Management Framework » Ass
Slide 15: Safety
Safety • Improvement of safety performance remains an absolute priority for the board and the management team • Board continues to review all fatal incidents and share the learning across the group • 26 fatalities in 2013, all fatalities are unacceptable • 19 of the 26 fatalities occurred in operati
Slide 16: Focus on developing world
Focus on developing world • We are deliberately focused on Community water infrastructure, South Africa brown-field operations, often in challenging locations, with diverse organisational culture and complex legacy issues. • We believe that the need for strong standards is often greatest at these op
Slide 17: External Commitments
External Commitments Memberships: • International Council on Mining & Metals: admitted as member in May 2014, following a rigorous assessment process • Voluntary Principles on Security and Human Rights (application in progress) • UN Global Compact • Extractive Industries Transparency Initiative Refe
Slide 18: 2013 Performance and Next Steps
2013 Performance & 2013 Performance and NextNext Steps Steps IvanGlasenberg Ivan Glasenberg
Slide 19: Glencore – the most diversified major
Glencore – the most diversified major Strong inaugural full year results • Resilient performance from marketing activities • Continued delivery of growth assets • Improving position in cost curve for industrial assets • Significant real cost reductions • Benefits of diversified model Strong, visible
Slide 20: Group-wide focus issues
Group-wide focus issues Safety: • Number one priority is to provide a safe working environment Environment: • We seek to minimise the impact our activities have on the environment Human rights: • We are committed to upholding human rights of our stakeholders License to operate: • Our contribution to
Slide 21: SD Performance 2013
SD Performance 2013 • 26 fatalities Prodeco Puerto Nuevo shiploader • Zero catastrophic environmental incidents • $180 million in community investments • Substantial operational upgrades with significant environmental benefits: • New acid plant at Mopani, Zambia, to reduce SO2 emissions by 97% • New
Slide 22: Safety: Top Management Priority
Safety: Top Management Priority 22
Slide 23: Safety: Performance
Safety: Performance We deeply regret 26 fatalities that occurred at LTIFR(1) 2009 to 2013 our managed operations in 2013 3.50 • Continued improvement in LTIFR: 3.0 (2009) to 1.9 (2013) 3.00 3.00 Challenges remain: 2.73 • 77% of fatalities occurred in emerging 2.51 economies (excluding Chile/Peru), i
Slide 24: Environmental performance 2013
Environmental performance 2013 Our Group environment policy Water withdrawal and energy use 2011 to 2013 commits us to identify, 1,000 969 understand and mitigate our environmental impacts as part of 800 779 strategic planning and day-to-day operations. 670 600 2013 highlights: • Zero catastrophic e
Slide 25: Communities and Human Rights: performance highlights 2013
Communities and Human Rights: performance highlights 2013 • Successful resettlement of Plan Ernest Henry Mining cultural survey, Australia Bonito, Colombia • Working in partnership with governments and local stakeholders to ensure programme efficiency and alignment with national objectives: DRC, Col
Slide 26: Socio-economic contribution
Socio-economic contribution We seek to leverage our core business to achieve 2013 Economic Value Distribution meaningful, sustainable development • Local procurement: where possible, we source Payments to suppliers 70,491 locally Royalties and taxes 3,698 • Local employment: we provide training to l
Slide 27: Compliance
Compliance • Business Ethics Committee • 115 Compliance Coordinators at marketing offices and industrial operations worldwide • policies (publicly available on website), training and screening • zero-tolerance for bribery, sanctions violations or participation in other criminal, fraudulent or corrup
Slide 28: Fostering market transformation
Fostering market transformation • Signatory of the Extractive Industries Transparency Initiative (EITI); support in-country efforts to strengthen fiscal transparency. • Actively contribute experience and insight to help evolve national legislative frameworks and practices wherever we operate: • Kaza
Slide 29: Looking ahead
Looking ahead Safety: • Zero fatalities • 20% reduction in LTIFR Environment: • Zero serious environmental incidents • Develop a water management strategy Human rights: • Align security management processes with the Voluntary Principles Social: • Maintain contribution to socio- economic development
Slide 30: Conclusion: Glencore today
Conclusion: Glencore today Total Board and management Mount Owen coal rehabilitation, Australia commitment to achieve leading SD performance: • Xstrata integration complete • Nine HSEC policies address areas of material risk • SafeWork programme launched at focus sites • Board reconstitution complet
Slide 31: Q&A
Q&A