Glencore Plc · LSE:GLEN
Glencore — Glencore Xstrata — ESG Presentation (November 2013)
38 slides from Glencore's sustainability presentation, Nov 26, 2013
Slide 1: Welcome & Overview agenda
Welcome & Overview – Peter Coates Governance & Business Ethics – John Burton Sustainable Development at Glencore Xstrata – Michael Fahrbach Health & Safety – Stephen Eichstadt Environment – Michael Fahrbach Communities & Human Rights – Anna Krutikov Q&A - All
Slide 2: Forward looking statements
This presentation has been prepared by Glencore Xstrata Xstrata plc ("Glencore Xstrata"). Forward looking statements This document contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. Such statements are qualified in their entirety by th
Slide 3: Overview
Overview Peter Coates
Slide 4: Glencore Xstrata today – a unique business model
Glencore Xstrata today – a unique business model .. Major presence across the entire value chain Traditional miners Traders Exploration Exploration Mining / Mining / producing producing Processing / Processing / refining refining Logistics Logistics Marketing & Marketing & trading trading 4
Slide 5: Glencore Xstrata today - diversification
Glencore Xstrata today - diversification (By H1 2013 EBIT) BHP: Copper 30% Oil 27% Zinc 13% Copper 17% Nickel 3% Iron Ore 52% Coal 14% Coal 3% Oil 4% Other 1% Marketing metals 22% Marketing energy 16% Marketing agri 1% Corp and other (3%) Rio Tinto: Anglo American (1) Iron Ore 89% Iron Ore 48% Alumi
Slide 6: Our operations
Our operations © Offices tm Technology f& Chemoil at Portfacilties Infrastructure &storage fm PecoriniMetals si Agriculture warehousing Portfacilties Sstorage fm Agriculture storege GlencoreXstrata
Slide 7: Our values
Our values • Safety • Our first priority in the workplace is to protect the health and well-being of all our workers. We take a proactive approach to health and safety; our goal is continuous improvement in preventing occupational disease and injuries • Entrepreneurialism • Our approach fosters the
Slide 8: SD at Glencore Xstrata
SD at Glencore Xstrata Statement of Values and Code of Conduct rolled out across the organisation after the completion of the merger in May: • Safety is a core priority for the organisation • We are committed to operating with respect for our workforce, our communities and the environment • We suppo
Slide 9: SD organisation
SD organisation • Sustainability is embedded across the organisation: • At Board level, HSEC Committee includes Interim Chairman and CEO and oversees development and implementation of strategic programmes • At Group level, SD team develops corporate policies and standards, engages with assets to rol
Slide 10: SD Performance – 2012 Review
SD Performance – 2012 Review • 27 fatalities across the combined group • 0 major or catastrophic environmental incidents • $200 million spent on community investment programmes worldwide • $4.3 billion paid in taxes & royalties to our host governments Looking ahead: • Eliminating fatalities and seri
Slide 11: Governance & Business Ethics
Governance & Business Ethics John Burton
Slide 12: Board reconstruction after AGM
Board reconstruction after AGM Anthony Hayward • CEO of Genel Energy plc Interim Chairman and • Member of the European advisory Board of AEA Senior Independent Director • Member of HSEC Committee Executive Independent Non Executive Directors Directors CEO ED INED INED INED INED Ivan Glasenberg Peter
Slide 13: Business ethics at Glencore Xstrata
Business ethics at Glencore Xstrata • Clear anti-bribery policies / compliance manuals - compliance with all applicable laws Our Code of Conduct • Zero tolerance approach towards breaching of sanctions and bribery • Specialised screening software for all counterparties • Ongoing monitoring of busine
Slide 14: SD at Glencore Xstrata
SD at Glencore Xstrata Michael Fahrbach
Slide 15: Sustainable development – where we are
Sustainable development – where we are Clear commitment from the board downwards to sustainability and continuous performance improvement Progress to date • New Statement of Values and Code of Conduct rolled out across the organisation • Focus on core operational aspects, including safety, environme
Slide 16: Approach to SD: Corporate Practice (GCP) 1/2
Approach to SD: Glencore Xstrata Corporate Practice (GCP) 1/2 Our Values – fundamental Values principles by which we conduct our business Code of Code of Conduct – how we work in Conduct accordance with these principles Corporate policies – operational Corporate Policies guidance detailing expectati
Slide 17: Approach to SD: Corporate Practice (GCP) 2/2
Approach to SD: Glencore Xstrata Corporate Practice (GCP) 2/2 • Glencore Xstrata Corporate Practice (GCP) in line with international standards and sector good practice • Code of Conduct and corporate policies define minimum requirements for the entire business • Respects the autonomy of our assets A
Slide 18: Approach to SD: Materiality
Approach to SD: Materiality Values Materiality assessment • Internal and external stakeholder input driven • Evaluation focus is based on compliance, reputation, relationship to our people and external stakeholders, impact on our financial performance • Risk based •Determined by materiality assessme
Slide 19: SD Performance: Looking ahead
SD Performance: Looking ahead • Complete GCP framework, including the assurance programme • Continue to improve our safety performance across the group with a focus on our 5 assets with the highest number of fatalities • Build on our strong environmental track record and strengthen focus on resource
Slide 20: Safety & Health
Safety & Health Stephen Eichstadt
Slide 21: 2012 Safety performance
2012 Safety performance Work-related loss of life: • 27 fatalities at assets within our operational control • 22 fatalities at former Glencore Assets • 5 fatalities at former Xstrata Assets LTIFR (per million hours worked) • 2.0 for the Group • 2.8 former Glencore Assets • 1.1 former Xstrata Assets
Slide 22: Safety way forward
Safety way forward Any fatality is unacceptable and, we believe, preventable” – Ivan Glasenberg Targets • Zero fatalities • 20% reduction in LTIFR • TRIFR reported at all assets Risk-based Approach • Focus on fatality elimination • Top 6 fatal hazards • Behavioural causes • Assets with highest numbe
Slide 23: Safety way forward: key components
Safety way forward: Key components • 12 Fatal hazard protocols written in a staged approach • Life-Saving behaviours and consequence management • Enabling line supervisors • Promoting courage to make the safe choice • Holistic training and awareness of fatal hazards • Incident recreation scenarios R
Slide 24: Occupational health
Occupational health Approach • Challenges vary across industries and geographies • Workplace and working environment assessments at operations • Programmes tailored for operations to fit circumstances • Equipment, engineering controls and PPE as required New Cases 2012 • Preventative healthcare and
Slide 25: Environment
Environment Michael Fahrbach
Slide 26: Environment approach
Approach We comply or seek to exceed applicable laws, regulations and other requirements Drivers for performance: • No serious incidents Mt Owen West rehabilitation (former Hebden and Ravensworth East) mined from 1960’s • Increasing regulatory pressure land legacy issues • Societal demand for low ca
Slide 27: Carbon
Carbon Fossil fuels will continue to play a vital role in the global energy mix. We strive to meet the societal demand to reduce the emission of GHGs through our continuous effort to improve the energy efficiency of our operations. • Where feasible, we take measures to capture or mitigate GHG emissi
Slide 28: Carbon – abatement and mitigation at Coal Australia
Carbon – abatement and mitigation at Coal Australia In 2012 Coal in Australia abated over 1.3million tonnes of emissions using flares and mine methane for power. This is a saving of over $29 million under the carbon scheme. • Directive to install flares for waste coal mine gas at sites where it can
Slide 29: Water
Water Two of our most important sustainability challenges are protecting maritime and inland waters and maintaining access to high-quality water while respecting the water needs of other stakeholders • Marketing activities (especially the oil business) have in place robust processes and vetting proc
Slide 30: Air emissions
Air emissions Continuous control and mitigation of air emissions is a core part of our environmental management programmes • 2014 will see a decrease in SO2 emissions upon completion of the smelter modernisation in Mopani (new SO2 recovery rate 97% vs 50%) • Koniambo will bring a Nickel smelter into
Slide 31: Air emissions: tank farms for petroleum products
Air emissions: tank farms for petroleum products • €250 million joint investment in the construction of a petroleum products terminal in the port Antwerp • 918,000m3 storage capacity in the heart of the north-western European oil market • Terminal is operated to minimise its environmental impact and
Slide 32: Communities & Human Rights
Communities & Human Rights Anna Krutikov
Slide 33: Communities approach
Approach Respect for communities and human rights is enshrined in the Code of Conduct Detailed engagement plans that incorporate: • Engagement with all stakeholders • Ongoing dialogue • Respect for cultural heritage • Engagement with vulnerable groups • Continued monitoring of performance • Timely r
Slide 34: Communities
Communities Our practice Resettlement Resettlement activities at seven operations: • Aligned with IFC performance standards • Focusing on maintaining and improving quality of life following resettlement Indigenous Peoples Recognising cultural sensitivities and traditional decision-making mechanisms
Slide 35: Human Rights
Human Rights Key actions: Reviewing existing systems and developing formal Group policy aligned with UN Guiding Principles on Business & Human rights: • Due diligence • Operational standards • Business partners • Monitoring (grievance mechanisms) Rolling out Voluntary Principles on Security & Human
Slide 36: Socio-economic contribution
Socio-economic contribution In 2012, we invested over $200 million in We seek to maintain broad-based support for our community programmes operations by ensuring that the communities in which we operate benefit from our presence: • Access to global markets • Our agricultural division works with smal
Slide 37: Socio-economic contribution: taxes and royalties
Socio-economic contribution The taxes and royalties constitute a significant source of income for our host governments • Signatory of the Extractive Industries Transparency Initiative (EITI); support in-country efforts to strengthen fiscal transparency. • Preparing for the EU Transparency Directive,
Slide 38: Q&A agenda
Welcome & Overview – Peter Coates Governance & Business Ethics – John Burton Sustainable Development at Glencore Xstrata – Michael Fahrbach Health & Safety – Stephen Eichstadt Environment – Michael Fahrbach Communities & Human Rights – Anna Krutikov Q&A - All