ESG rating agencies

Topics of Stakeholder Interest

We are committed to engaging with our stakeholders to understand their concerns. We recognise the value of objective benchmarking of our performance against peers, and support efforts by environmental, social and governance (ESG) rating agencies to do so. A number of our investors, analysts and banks use ESG rating agencies and we recognise the reliance placed on such assessments by many of our stakeholders.

We aim to provide detailed, thoughtful responses to queries by our stakeholders and the ESG rating agencies, as well as reviewing and commenting on reports, assessments and profiles when made available to us.

Our stakeholders and ESG rating agencies have expressed an interest in several topics relating to our industrial activities. Below, we provide information on these topics.

Responses to allegations

Our Cerrejón coal mine is in La Guajira, a water-deficit region in Colombia. Cerrejón is working to improve the efficiency of water use in its activities, while aiming to also preserve and protect the basins within its area of influence and seeking water solutions for neighbouring communities.
Cerrejón is one of the region’s lowest water users, withdrawing less than 2% of the total annual amount of water withdrawn from the Ranchería River. Cerrejón has a water target to maintain its water consumption from freshwater sources to below 20% of the water it uses. Some of this water is extracted from dedicated groundwater bores and treated for human consumption, which includes distribution to local communities. The additional water that Cerrejón uses in its operational activities is mainly mine-affected water from rainfall on dumps and in mine pits.

Supporting local water infrastructure

The El Cercado Dam was completed in 2010 with the intention of mitigating the effects of the cyclical droughts in La Guajira by supplying water to aqueducts of nine municipalities and providing irrigation for agriculture. However, the pipes are not yet connected to the aqueducts, resulting in the municipalities not receiving water collected by the dam.

Cerrejón distributes water through tankers and the water train, which adapts tank cars to supply drinking water to local communities. Cerrejón is also working on identifying sustainable water access solutions. One such solution is the new system built to improve water supply to over 500 users in the rural areas of Papayal and Oreganal in the municipality of Barrancas. The system aims to increase frequency of water access, continuity and coverage for users connected to the aqueduct.

The new system required an investment of over US$500,000, with Cerrejón contributing approximately US$440,000 and a water utility company providing the remainder. These funds are being used to repair and upgrade infrastructure such as pumps and storage tanks, improve the main pipeline, and strengthen the water network in local communities.

In 2015, Cerrejón carried out a partial modification of Bruno Creek due to mining activities. The modification moved a 3.6km section of the waterway 700m to the north and applied technologies to replicate the physical and biotic conditions in the stream’s lower basin. The modified sector was located on an old cattle farm which was not occupied by local communities. The work was completed in 2017 and the ecosystem of the new channel is monitored on an ongoing basis.

The modification project received the necessary permits from the Colombian government’s environmental authority and Cerrejón consulted with over 7,000 people including employees, authorities, local communities, NGOs and the media. Cerrejón does not extract water from the Bruno Creek.

Cerrejón undertakes conservation processes for the ecosystems of various tributary streams, supporting a constant contribution of these tributaries to the flow of the Ranchería River. This approach has contributed to the Colombian Institute of Hydrology, Meteorology and Environmental Studies (IDEAM) monitoring stations on the Rancheria River recording an average of over 35% increase in the river’s flow over the last seven years.

Along the modified channel, external experts, with the oversight of community members, have conducted more than 20 hydrobiological and fauna and flora monitoring surveys and found that the water flow quality and quantity are comparable to that of a similar stream in the region, while also providing habitat for more than 600 species of plants and animals.

Cerrejón has operated for over 40 years in a territory inhabited by the Wayuu Indigenous People and is respectful of their cultural beliefs and traditions. Cerrejón continuously evolves its engagement with the Wayuu to strengthen its transparency and approach to two-way dialogue. Cerrejón’s community team includes Wayuu members, who ensure respectful engagement throughout its daily activities. In addition, specific government-led formal consultation processes with Indigenous groups are ongoing.

A court ruling in December 2016 required Cerrejón to consult with the Indigenous communities within its area of influence on potential compensation for possible environmental, social and cultural impacts that have occurred during more than 30 years of operation.

Cerrejón established a dedicated team to carry out this consultation exercise, which is of unprecedented magnitude in Colombia. By the end of 2023, Cerrejón had reached agreements with 339 out of a total of over 400 Indigenous communities. Consultations with the remaining Indigenous communities are taking place during 2024.

Agreements with communities have included compensation measures to address social and cultural impacts such as: income generation projects related to livestock activities; cultural strengthening initiatives including harmonisation rituals and new engagement protocols; and construction of infrastructure for the general benefit of the community. The projects reflect proposals made by community representatives.

Human rights impact assessment

In 2023, Cerrejón completed its third HRIA on the impact of its activities at its mine, railroad and port. The assessment, which began at the end of 2021, included dialogue with multiple stakeholders, including employees, contractors, communities, government officials and civil society organisations; analysis of documents and reports; and additional meetings with stakeholders to obtain their feedback on preliminary results and recommendations. Around 2,300 people participated in the sessions on the preliminary results and shared views and recommendations.

The HRIA identified six salient human rights issues as the main areas where Cerrejón should focus to mitigate negative human rights impacts. They are: i) controlling environmental impacts that may affect the wellbeing of communities; ii) preserving the safety of communities near Cerrejón’s railway line; iii) ensuring safe and decent working conditions for contractors and employees; iv) preventing human rights violations derived from security protection services; v) promoting the sustainability of resettled communities; and vi) acknowledging and respecting ethnic groups’ cultural heritage.

Cerrejón has worked with various internal functions to define and implement the resulting action plan to address the salient issues. These actions will complement those currently being implemented and will be carried out during 2024 and 2025 to strengthen the human rights due diligence process.

For details on our approach towards ASM in the DRC, please visit Artisanal and small-scale mining (ASM).

Glencore’s cobalt supply chain

The majority of cobalt produced in the DRC comes from large-scale mining operations. Glencore does not tolerate any form of child, forced, or compulsory labour anywhere in our business or our supply chain. Our DRC operations do not purchase, process or sell ore from ASM activities.

While most of the cobalt we supply to the market is from our own operations, we also source some from a select group of third-party suppliers. Our enhanced supply chain due diligence process has identified no significant adverse human rights impacts in our cobalt purchasing activities.

In 2020, we worked with the Responsible Minerals Initiative (RMI) to pilot its Responsible Minerals Assurance Process (RMAP). The RMAP uses independent third-party assessments of smelter and refinery management systems and sourcing practices to validate conformance with RMAP standards. RMAP standards are designed to meet the requirements of the OECD Due Diligence Guidance and the US Dodd-Frank Wall Street Reform and Consumer Protection Act. KCC is listed in the conformant cobalt refiners list of the RMI and regularly undergoes the RMAP, with the findings published on the Glencore and RMI’s websites.

The Global Battery Alliance (GBA) is a partnership of around 170+ businesses, governments, academics, industry actors, international and non-governmental organisations, which the GBA mobilises to provide a framework for collecting and reporting on certain ESG data for batteries.

In 2019, we were one of the founding members of the ReSource consortium, a blockchain traceability platform used to track the origin of battery materials with the aim of ensuring ethical sourcing of such materials. A number of companies have supported the use of ReSource in their businesses. In 2023, ReSource completed a successful cobalt traceability project with a leading EV manufacturer and showcased battery passport pilots with the GBA and the World Economic Forum. In 2023, Glencore started an onboarding process for its cobalt mines (Kamoto Copper Company, Mutanda Mining and Murrin Murrin) on the ReSource platform.

In Australia, we engage and consult with Traditional Owners and custodians, our local and Aboriginal and Torres Strait Islander workforce, and cross-cultural consultants in the development of cultural respect initiatives.

Our Australian industrial assets operating near Indigenous Peoples strive to enable and promote Indigenous employment opportunities at our operations, as well as meaningful and transferable skills development.

MRM’s operations are on or near the traditional lands of Indigenous peoples. Studies including archaeological and ethnographic surveys dating back to the mid-1960s have identified several culturally significant sites in the mine lease area.

MRM’s approach seeks to make a positive difference in its surrounding communities, respect the unique cultural heritage and partner with local groups to make a positive and enduring contribution to the region’s future. Its community team has a permanent office in Borroloola for regular engagement with the community. MRM holds meetings in Borroloola, which are open for every member of the community to attend.

MRM’s Local Language Employment Program is focused on providing opportunities for people living in local community or connected to local language groups. The initiative is advertised through word of mouth in the community to attract candidates. Around one in four of MRM’s employees identify as Aboriginal and Torres Strait Islander. MRM’s operations are regulated via licences and approvals issued by the Northern Territory (NT) and Commonwealth governments, as well as the conditions of the Aboriginal Areas Protection Authority (AAPA) certificates, designed to protect Sacred Sites. MRM is committed to complying with the NT Aboriginal Sacred Sites Act and has internal processes laid out in its Aboriginal Cultural Heritage Management Plan designed to protect and respect Sacred Sites and cultural heritage. It understands its obligation to protect such sites on its mining lease and takes this obligation very seriously.

Aboriginal Cultural Heritage Review

MRM has undertaken an Aboriginal Cultural Heritage Review to identify potential gaps between its history and compliance with Sacred Sites and cultural heritage sites. The review confirmed details of known Sacred Sites and cultural heritage sites but also found some discrepancies between MRM’s records and those held by the AAPA. MRM had documented the details of sites in the immediate vicinity of its operational areas but did not accurately document sites further away on its mineral lease.

One reason for this is that some of the original studies of cultural heritage sites occurred before modern GPS and mapping technologies were available. As such, while the general location of some sites was known, its exact location was not accurately mapped. In some cases, mapping was deliberately vague as Traditional Owners did not want the locations of sites recorded to protect them from potential harm.

MRM has implemented its Aboriginal Cultural Heritage Management Plan (ACHMP) aimed at protecting and respecting sacred sites. The ACHMP details how sites should be protected and monitored for physical or environmental impacts. An education programme supports MRM’s leaders, planners and the broader workforce in strengthening their awareness of their responsibilities under the ACHMP.

Formal engagement on cultural heritage management is through the Gudanji Yanyuwa Garrwa and Marra Aboriginal Corporation, which is representative of traditional owners and custodians for cultural heritage on the land where we operate. MRM recognises that there are always opportunities to strengthen its relationships with local communities and is currently negotiating an Indigenous Land Use Agreement (ILUA). The ILUA negotiations involve broad consultation with Traditional Owners on a variety of matters, including Sacred Sites and cultural heritage protection.

Lead levels in fish

MRM’s wastewater discharge licence is issued by the NT government’s Department of Environment and Natural Resources under the Water Act 1992. The licence provides conditional approval, including strict environmental controls, for the discharge of excess water to the receiving environment. It provides protection to the receiving environment, community values and beneficial uses of the McArthur River by defining site-specific trigger values for water quality, which must not be exceeded at a defined location.

Emissions generated by MIM are constantly monitored and managed. Its Air Quality Control (AQC) Centre was established in 1975 and is continually reviewing engineering approaches, operating procedures and monitoring programmes for ways to reduce emissions.

MIM has systems to manage emissions and dust generated by its operations to minimise impacts to the local Mount Isa community. The AQC Centre uses real-time air quality data to monitor emissions and observe emerging weather patterns.

The ACQ Centre works both predictively and reactively as part of its efforts to minimise impacts to the community and ensure compliance with regulatory limits. The AQC Centre provides daily forecasts and planning advice to MIM’s smelter operations and monitors real-time air quality data and conditions at ground level to allow smelter operations to respond appropriately to any unexpected weather events.

As part of its air quality monitoring system, MIM has two continuous metal monitors in the community which measure metals in air 24/7 and inform efforts to mitigate any impact to the people of Mount Isa.

MIM publishes real-time and historical air quality data for sulphur dioxide results. This is also made available via its Air Quality in Mount Isa (AQMI) app, which enables the current results to be checked at any time via a smartphone.

Lead pathways

MIM’s Lead Pathways Study of Mount Isa focused on land, water and air.

MIM commissioned the Lead Pathways Study in 2006. It was conducted by the University of Queensland’s Centre for Mined Land Rehabilitation (CMLR) in collaboration with the National Research Centre for Environmental Toxicology (Entox).

The study investigated the natural and industrial pathways of lead and other heavy metals into the Mount Isa community and assessed the potential risks to human and environmental health. The study was completed in 2017 and concluded there was a relatively low health risk from lead in soil, water and air for most of the Mount Isa community.

Detailed findings from the study are available on MIM’s website.

Overview

Our Antapaccay copper industrial asset is located between the Salado and Cañipía Rivers and while it has a licence to use water from the Salado River, a large proportion of the water used by Antapaccay is taken from underground wells that are part of the mine’s drainage system. Antapaccay’s water is mostly recycled, with only a small amount being treated and discharged into the Cañipía and Salado Rivers, in line with permits provided by the national water authority (ANA). Water discharge, both quality and quantity, is monitored in real time and reported to the authorities. Access to water is a problem across Peru. The drinking water for Espinar’s urban area, where most of the province’s population live, comes from the Huayllumayu dam, which receives water from the Apurimac catchment area. Many residents in Espinar’s urban areas have access to water for only a limited period each day due to a lack of public infrastructure and water treatment facilities. As a result, water is an ongoing source of tension in the area.

In rural areas, where smaller communities live, there is a lack of infrastructure to draw, treat and store water. In these areas, government-conducted studies have shown that the quality of surface and groundwater is influenced by the geochemistry of the soils of the Salado and Cañipia River basins. The 13 rural communities living around Antapaccay mostly draw water from springs, separate from the Salado and Cañipía Rivers. These springs contain naturally occurring heavy metals.

2012 social unrest

In 2012, certain individuals, including the mayor of Espinar, alleged negative environmental impacts caused by mining operations, giving rise to a demonstration in which the national police killed two people and seriously injured others.

Following the demonstration, allegations of human rights abuse were made against the police and Antapaccay. Some of the alleged victims tried to pursue their claims in the Peruvian court. In addition, 22 people launched a civil case in the English courts against Xstrata (the owner in 2012). The claimants argued that as Xstrata had identified Peru as a moderate or high-risk country for human rights abuses, it knew or should have known of the risks of human rights abuses by public and/or private security forces in Peru and should have taken steps to prevent such abuses. Xstrata rejected liability for the actions of the Peruvian police and/or private security forces and denied providing any assistance or encouragement to the police. In January 2018, the English High Court dismissed the claimants claim.

Natural presence of heavy metals

Following the social unrest in 2012, a dialogue table between the mine, local communities and government representatives, originally started in 2001, was restarted. The dialogue table included an Environment working group, with a purpose to “develop an integral health and environmental intervention plan for the Espinar province”. Its approach included the implementation of several water studies, the results of which were summarised in the Participatory Health and Environment Monitoring Report published in 2013.

The Participatory Health and Environment Monitoring Report concluded that the quality of surface and groundwater in Espinar is influenced by the geochemistry of the soils of the Cañipia and Salado river basins. However, no causal link was made to Antapaccay’s operations, meaning the mineral content in water is likely related to the natural presence of minerals in the soil.

Independently of the studies carried out as part of the Participatory Health and Environment Monitoring Report, Antapaccay carries out monitoring of the water upstream and downstream in accordance with its approved water monitoring plan, i.e., it is carried out by a state-accredited laboratory that follows a chain of custody for the water samples. The water monitoring results are submitted to the government’s Environmental Assessment and Enforcement Agency (OEFA) on a monthly and quarterly basis and are reviewed by their specialists to confirm established standards are being met. Through these means Antapaccay can ensure that its activities conform with the environmental permitting conditions.

Antapaccay’s investment in water and health

Antapaccay has a ‘Framework Agreement’ with Espinar Provincial authorities. Under the Framework Agreement, Antapaccay is required to make an annual contribution of 3% of profit before tax to finance social improvement projects for the benefit of communities in Espinar Province.

Antapaccay encourages efforts to improve access to water for Espinar’s urban area and rural communities through supporting initiatives that address water quantity and quality issues. Antapaccay uses the government work-for-taxes programme to fund the construction of water and sanitation systems that will provide potable water to Espinar (urban area) 24 hours a day. The project is ongoing and will benefit the residents of the provincial capital of Espinar.

The Work for Taxes mechanism was created by the Peruvian government in 2008 to enable companies to ‘pay’ a part of their income taxes in advance through the execution of public works projects. By accepting infrastructure projects in lieu of future taxes, national, regional and local governments can forgo the mobilisation of public funds and reduce the burden on government budgets, as the private sector assumes the upfront costs and management of new infrastructure projects.

In several rural communities in Antapaccay’s area of influence, studies are underway to evaluate the community water and sanitation systems, aiming to identify existing infrastructure and beneficiaries. In a number of communities, this type of study has been the foundation for building potable water and sanitation systems. For instance, a water and sanitation system has been built in Tintaya-Marquiri, and similar projects are underway in Huancané Bajo and San José. Similar projects are underway for other communities.

Agriculture is an important livelihood for many communities surrounding the Antapaccay operation. However, many of these communities lack the relevant water infrastructure required to support agriculture and livestock activities. Under the Framework Agreement, Antapaccay supported the construction of an irrigation system in the Apurimac River basin. In addition, prefeasibility studies are underway for the Jatarana-San Martin Dam construction project, located in the upper part of the Cañipia River basin. The project includes the installation of an irrigation system for agricultural production and hydraulic infrastructure to collect dam rainwater in the upper part of the basin for transferring to the middle and lower basins, the implementation of which will be funded through the work for taxes programme. It is anticipated that ten different communities’ agriculture and livestock activities will benefit from the dam.

In addition to investments in water infrastructure, Antapaccay continues to support health initiatives in Espinar. The Espinar hospital, which is fully integrated into the public health network, was built with funds from the Framework Agreement in 2007 and continues to receive support from Antapaccay.

2021 Amnesty International Report

In 2021, Amnesty International published its Failed State of Health report. The primary objective of the report was to make recommendations for the government of Peru to address health-related challenges associated with community exposure to toxic substances in the Espinar province. Amnesty International’s report also referenced Glencore’s presence in this region, through Antapaccay mine and the Coroccohuayco Project (an exploration project that is currently on hold, Antapaccay has postponed its construction).

Antapaccay is planning to develop a new mining zone, the Coroccohuayco Project, to replace its current mining area.

Antapaccay needs to acquire land from third parties, including rural communities, for the development of the Coroccohuayco Project. The land acquisition will be performed in accordance with Peruvian law and IFC Performance Standard 5.

The Coroccohuayco project is currently performing pre-feasibility studies and is preparing an Environmental Impact Assessment.

Participation in CDP

Glencore has not participated in CDP’s voluntary questionnaire submission process since 2018, prior to which, we completed CDP’s Climate Change questionnaire. We regularly engage with our stakeholders on their preferences for receiving sustainability-related information for Glencore. Overwhelmingly, the indicated preference has been for Glencore to provide information via its own publications, rather than from third-party providers.

We stopped voluntarily completing a CDP Climate Change questionnaire after the Task Force on Climate-Related Financial Disclosures (TCFD) released its recommendations for effective climate-related financial risk disclosures. Glencore was an early adopter of the TCFD guidance, and we began working on implementing the TCFD recommendations after the TCFD released its final report in 2017. Our stakeholders have recognised the efforts we have made in our subsequent annual reports in response to the TCFD’s reporting guidance and note our efforts to continue to enhance our disclosures.

During 2023, the European Union finalised the Corporate Sustainability Reporting Directive, with supporting European Sustainability Reporting Standards (ESRS), and the International Sustainability Standards Board (ISSB) published its first two IFRS Sustainability Disclosure Standards, IFRS Standard 1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS Standard 2 (Climate-related Disclosures). Both organisations have looked to incorporate and align the requirements and recommendations of other sustainability-reporting bodies, including CDP, in these new disclosure requirements. In November 2022, CDP announced that it would incorporate ISSB climate-related disclosure standards into its global environmental disclosure platform. Similarly, in April 2023, CDP committed to support the implementation of the ESRS, as well as other standards.

Glencore welcomes the launch of the IFRS Sustainability Disclosure Standards by the ISSB and supports greater alignment between reporting frameworks and standards. In line with both regulatory requirements and stakeholder expectations, Glencore will work towards implementing further updates to its disclosures under applicable reporting requirements. We expect this approach will support both consistency and comparability between issuers’ publications. We will also continue to review the evolving sustainability disclosure requirements and engage with our interested stakeholders on their expectations.