Glencore Plc · LSE:GLEN
Glencore — ESG Presentation (May 2015)
26 slides from Glencore's sustainability presentation, May 18, 2015
Slide 1: 2015 Sustainable Development roadshow
Water sampling at Alumbrera, Argentina 2015 Sustainable Development roadshow London, 18 May 2015
Slide 2: Agenda
Agenda • Opening comments Tony Hayward, Chairman • Overview of Sustainable Development (SD) Peter Coates, Non-Executive Director, Chair HSEC • 2014 Performance highlights and next steps Ivan Glasenberg, Chief Executive Officer • Q&A 2
Slide 3: Opening comments
Ernest Henry copper mine, Cloncurry, Australia Opening comments Tony Hayward, Chairman
Slide 4: Our Values and who we are
Our Values and who we are What we stand for Safety Entrepreneurialism Simplicity Responsibility Openness Our first priority in the Our approach fosters the We aim to achieve our key We recognise that our work can We value relationships and workplace is to protect the highest level of professionalism
Slide 5: SD strategy: we address the actual and potential impacts of our activities
SD strategy: we address the actual and potential impacts of our activities • We are committed to operating transparently and responsibly • Our values and Code of Conduct lay out our approach to sustainability and embody our expectations of our people and our business partners • Our policies and proc
Slide 6: A strong board – composition and roles
A strong board – composition and roles Anthony Hayward Leonhard Fischer Non-Executive Director A(C), N, R Chairman H • CEO of BHF Kleinwort Benson • Former CEO of BP Group S.A. (formerly RHJ • CEO of Genel Energy (LON) International S.A) (EBR) • Chairman of Kleinwort Benson Bank Ltd and BHF-Bank AG
Slide 7: Board’s focus in 2014
Board’s focus in 2014 Ensuring that our • Launch of HSEC policies addressing all material issues values are upheld • Review and launch of new Code of Conduct that addresses the throughout the group needs of the organisation and reflects stakeholder feedback Safety is a top priority • Chair the annua
Slide 8: Looking ahead
Looking ahead Our objective is to ensure that systems are in place to enable us to act in accordance with our values and the expectations of our stakeholders 2015 priorities: • Maintain focus on eliminating fatalities and improving the safety record at our operations • Engage in informing the climat
Slide 9: Overview of Sustainable Development
Newlands coal mine, Australia Overview of Sustainable Development Peter Coates, Non-Executive Director, Chair HSEC
Slide 10: Approach to SD: Glencore Corporate Practice (GCP)
Approach to SD: Glencore Corporate Practice (GCP) Our Values: fundamental principles by which we conduct Values our business Code of Conduct: how we work Code of Conduct in accordance with these principles Group policies: 1. Health and Safety 2. Emergency response and crisis management 3. Catastroph
Slide 11: SD Performance – 2014 milestones
SD Performance – 2014 milestones Policies Code of Climate on key HSEC issues Conduct change launched revised and launched position published in early 2015 Improved Contribution 40% transparency record reduction in on internal reporting project launched to fatalities mechanisms and better understand
Slide 12: Safety – Board involvement
Safety – Board involvement • We are committed to creating a strong safety culture at all levels of the organisation • Board continues to review all fatal incidents and share the learning across the group • In 2014, Chairman of the HSEC Committee chaired the first safety summit, bringing together our
Slide 13: HSEC assurance
HSEC assurance Following the launch of the HSEC policies, our HSEC assurance process is designed to ensure compliance with policies and management of material risks • Annual cycle Board HSEC Committee • Risk-driven • High acceptance Inputs Execution Reporting • Catastrophic risks; • Site level • Fin
Slide 14: Stakeholder engagement
Stakeholder engagement • Engaging with stakeholders is a key part of our decision-making process and essential to our accountability • In 2014, the Board HSEC Committee engaged with the following groups: Internal External Site visits: 1:1 dialogue with Canada, Colombia, Kazakhstan investors Safety s
Slide 15: Commitment to dialogue
Commitment to dialogue An open-door policy with all our stakeholders • We maintain and seek constructive partnerships to explore the challenges we face as a business, such as one we have initiated with international NGO CARE We regularly host visits by NGOs, media and government at our operations Co
Slide 16: 2014 performance and next steps
Lomas Bayas copper mine, Chile 2014 performance and next steps Ivan Glasenberg, Chief Executive Officer
Slide 17: 2014 Highlights
2014 Highlights(1) Strong financial performance despite difficult market conditions • Adjusted EBITDA(2) of $12.8bn, down 2% • Marketing Adjusted EBIT(2) of $2.8bn, up 18% • Net income(3) of $4.3bn, down 7% • Industrial synergies and cost savings of $1.9bn realised Robust balance sheet and strong ca
Slide 18: Focusing on issues that matter
Focusing on issues that matter • Our materiality analysis is based on internal risk assessment and external perspectives of our key stakeholders • The diversity of our operations and locations means that materiality varies form site to site • We maintain an open-door policy with all our stakeholders
Slide 19: Compliance
Compliance • Compliance is part of the Group’s fabric of corporate structure, operations and procedures • Board Audit Committee oversight • Business Ethics Committee and Sub-Committee, chaired by Group CEO • Group compliance teams and 106 Compliance Coordinators at marketing offices and industrial o
Slide 20: Safety: Top Management Priority
Safety: Top Management Priority 16 fatalities in 2014 91% of our operations 13 at focus assets had no new (71,000 people): cases of Kazakhstan, Ukraine, occupational Bolivia, DRC, Zambia disease 3 across all other assets (110,000 people): South Africa (2), Australia (1) We are determined to eliminat
Slide 21: Mitigating environmental impacts
Mitigating environmental impacts • We are implementing an ambitious programme of upgrades at our brownfield assets with modern and efficient infrastructure • The recently completed Mopani smelter upgrade reduced Group SO2 emissions by 83,000 tonnes • In 2014 we commenced development of a strategy to
Slide 22: Climate change
Climate change • Climate change issues are now a part of the political, social and regulatory landscape • We recognise that producing and using fossil fuels can contribute to greenhouse gas (GHG) emissions and measure, manage and report on our energy and carbon footprint • Over next 25 years, energy
Slide 23: Promoting sustainable growth and respect for human rights
Promoting sustainable growth and respect for human rights Managing the impacts • Plan Bonito resettlement completed – all families gained property ownership and continued monitoring • Contributing to development – $114 million invested in CSI Respect for human rights • Grievances and complaints are
Slide 24: Creating value for our local communities
Creating value for our local communities 2014 Economic Value Distribution (USD M) Glencore Contribution Record Payments to suppliers 39,992 • In 2014, we launched the Glencore - Local suppliers 20,758 Contribution Record to help us Royalties and taxes 4,966 demonstrate our full impact and ensure - B
Slide 25: Looking ahead – key 2015 targets
Looking ahead – key 2015 targets Continuous improvement in health, safety, sustainability and governance performance Maintain Review approach Eliminate fatalities No catastrophic sustainable to grievance And continue to environmental positive handling as part of improve safety incidents contribution
Slide 26: Q&A
Wheat crop in Bute, Australia Q&A