Professional Documents
Culture Documents
TABLE OF
CONTENTs
1 | Company statement
7 | Communities
47
49
52
53
8 | Environment
59
10
2 | Glencore: an overview
12
12
13
14
24
24
25
9 | Compliance
85
4 | Materiality
26
26
27
27
86
87
10 | Our customers
89
28
91
93
11 | Glossary
95
12 | GRI index
99
15
16
17
28
29
30
31
31
6 | Our people
33
35
35
37
38
41
42
42
43
43
44
13 | Contact
53
54
57
61
66
71
74
78
81
107
Company
statement
1|Company statement
1|
Company statement
Our first sustainability report presents our belief that Glencore has achieved a credible nonfinancial record during 2010, building on the work we have been putting into this area over recent
years.
This report demonstrates that we are serious about our commitments to our people, communities, the environment, our customers and our investors. It summarises where we currently stand in
relation to the achievements and challenges ahead of us. We will use it to guide us as we carry out
the work of continuous improvement and management that are as essential to our non-financial
performance as to other areas of our business.
We encourage our stakeholders to read this report; we look forward to this and subsequent
reports being an important platform for stakeholder engagement.
Glencore in 2010
This past year saw the rollout of Glencore Corporate Practice (GCP), our corporate sustainability
framework. It has been developed and implemented as a set of fundamental commitments,
internal guidance documents and new group-wide non-financial reporting requirements. It is designed to align with internationally agreed standards, formalising and developing sustainability
approaches that we have been working on for many years.
GCP helps us to achieve responsible, sustainable and successful business conduct and to improve our performance every day. It is adhered to by all, from the highest level of Glencores
management to individual employees in our operations around the world. Its requirements are
mandatory and help us meet both our own objectives and the publics expectations.
Key issues
As well as addressing our immediate operational challenges, we consider the global trends that
may influence our business.
As with any industrial operation, our top priority is the safety and wellbeing of all our people. The
deeply regrettable fact that we suffered 18 fatalities across our operations in 2010 reminds us
unambiguously of the work that lies ahead. That is why we are committed to achieving zero harm
across the group and are continually feeding back on and improving our policies and procedures
to achieve this.
We also place great importance on the economic benefits we bring to the communities surrounding our operations. We provide vital employment and income to some areas where economic opportunity can be scarce. We also contribute to local development, in close consultation
with community leaders and stakeholders. We report on our community development initiatives
and programmes extensively in this report.
Another daily priority is to ensure that we protect the environment while conducting large-scale
mining and farming operations and transporting commodities around the world. This requires
continuous monitoring and incremental improvement; the details of our approach are in this
report.
1|Company statement
The issue of climate change is particularly relevant to Glencore as a company with a strong energy division active in liquid and solid fossil fuels. The world is currently seeking the optimum
combination of energy sources that can mitigate climate change while ensuring a secure and
affordable energy supply. While we anticipate new technologies making fossil fuel usage more
efficient and reducing emissions, we also predict increasing use of renewable energy sources.
One of the ways in which Glencore is preparing for these changes is by increasing our biofuel
production and trading activities. We are also examining the extent to which our shipping activities contribute to greenhouse gas emissions, in light of a mooted emissions trading scheme for
the maritime industry.
Future sustainability reporting
This report contains material information on our performance and achievements during 2010 and
the challenges ahead of us. It gives us confidence that our non-financial management and commercial competence together will allow us to continue to take advantage of long-term growth
opportunities throughout our industry and to achieve further sustainable development.
We anticipate that our rigorous corporate governance and management approach will further
raise our sustainability performance over the coming years. For this reason, we have committed
to developing a GCP programme of group-wide targets and objectives during 2011. This will
be based on the commitments we have made in the existing GCP framework and will allow us
to mark our progress towards achieving them. We will detail these targets and objectives in our
2011 sustainability report.
None of this can be achieved without having a great team on board. No corporate programme
can succeed without the talent, professionalism, dedication and motivation of every employee.
Our people are ultimately vital to our success and I want to thank all of them for their contribution.
Ivan Glasenberg
CEO
1|Company statement
1|Company statement
Greenhouse gases
Compiling this report required us to calculate our global greenhouse gas emissions for the first
time. The details are laid out in Chapter 8, but in summary we found it noteworthy that our industrial activities had a smaller carbon footprint than our shipping activities over the past year.
This includes our own vessels and our time charter fleet, but does not include voyage chartering,
which is how we generally ship our metal and coal products.
A considerable proportion of the energy we use is generated from renewable sources, as detailed in Chapter 8. We are also involved in producing renewable energy sources for sale; in 2010
our agricultural products division worked to meet the requirements of the European Renewable
Energy Directive, which concerns the maintenance of a sustainable supply chain for biofuel production. Our agricultural marketing offices and operations will comply with the directive by qualifying for the International Sustainability and Carbon Certification (ISCC) scheme.
Air emissions
2010 was a very important year for improving emission levels at our Kazakhstan operation, as a
complex technical upgrade of various smelters neared completion.
Communities
As circumstances can vary so greatly between different communities, the most effective way to
represent our approach is by detailing a range of specific examples. These show how our involvement contributes to the wellbeing of local communities. They outline the day-to-day challenges
of operating in regions with often exceptionally demanding public health, education, infrastructure and logistics issues.
Looking forward
As a rapidly growing organisation, Glencore has had to adapt and change, and we are well aware
of the challenges ahead of us. GCP is our guide to further improving our non-financial performance and meeting our sustainability commitments.
Our next important milestone will be to develop a full GCP programme with objectives and targets that complement the GCP commitments. We intend to present this work in our next sustainability report, along with Glencores first achievements against these targets.
We welcome all feedback on this report. This can be sent to global.gcp@glencore.com or by
directly contacting the employees named at the end of this report.
Steven Kalmin
CFO
Michael Fahrbach
Corporate Sustainability
2 | Glencore: an overview
2|
Glencore: an overview
Glencore International plc (Glencore) is one of the worlds leading integrated producers and
marketers of commodities. We deal in metals & minerals, energy products and agricultural products. We also produce, refine, process, store and transport these products.
Glencore markets and distributes physical commodities, sourced from third-party producers and
our own production base, to industrial consumers around the world. We have developed great
expertise in the commodities we market and have cultivated long-term relationships with over
7,200 suppliers and customers across many diverse industries (including the automotive, steel,
power generation, oil and food processing industries) and regions.
Our marketing activities are supported by investments in industrial assets that relate to our core
commodities. We have an established record of successful strategic investments in industrial
assets that have become an important component of our physical marketing activities.
We believe that we are:
The largest physical supplier of third-party sourced commodities worldwide for most of the
metals & minerals we market
One of the largest non-integrated physical suppliers of crude oil and oil products
The largest participant worldwide in the supply of seaborne steam coal (including the
volumes under a number of exclusive advisory and agency agreements with entities such as
Xstrata)
Among the worlds leading suppliers of sugar
One of the leading exporters of grain from Europe, the Commonwealth of Independent
States (CIS) and Australia
2 | Glencore: an overview
Glencore
Metals & minerals
Energy products
Agricultural products
Zinc/copper/lead
Oil
Grains
Alumina/aluminium
Coal/coke
Oils/oilseeds
Cotton/sugar
Ferroalloys/nickel/cobalt/iron ore
Marketing
activities
Industrial
activities
Marketing
activities
Industrial
activities
Marketing
activities
Industrial
activities
Glencores business segments are responsible for managing the marketing, sourcing, hedging,
logistics and industrial investment activities for the commodities they deal in.
Each segment reports to management at the corporate level, and is supported by our central
finance, legal, risk, human resources, sustainability and compliance departments.
History
tions in mining, smelting, refining and processing. Our first equity investment in an
industrial asset was 27% of the Mt. Holly aluminium smelter in the United States. Our first
controlling interest in an asset was purchased
in 1988, with a 66.7% interest in a Peruvian zinc
and lead mine. In 1994, our founder sold his
stake by way of a management buyout and
the company was renamed Glencore International AG.
2.2 | Ownership
Since our initial public offering (IPO) in May 2011, Glencore International plc has been a public
company with a primary listing on the London Stock Exchange and a secondary listing on the
Hong Kong stock exchange.
During the period covered by this report, Glencore was a private company, wholly owned by
its employees.
2 | Glencore: an overview
Board of Directors
Risk management
Independent directors
CFO
Audit
Committee
Remuneration
Committee
Nominations
Committee
Internal audit
HSEC
Committee
Corporate
finance
Legal &
compliance
Sustainability
Agricultural
products
Energy products
Aluminium
Nickel/ferroalloys
Oil
Coal
Treasury,
accounting & tax
IT
Grain
Human resources
The Audit Committee monitors the integrity of Glencores financial statements. It also oversees
our external auditing processes, and considers the requirements of all relevant laws and regulations, the Code and the London Stock Exchange listing rules. The committee also reviews the
effectiveness of Glencores internal controls and risk management systems.
The Remuneration Committee makes policy recommendations on management remuneration. It
determines the Chairmans remuneration and specific packages for the executive directors and
management. It also ensures compliance with the Code in this respect. Remuneration is subject
to challenging performance criteria reflecting Glencores objectives and commitments.
The Nominations Committee makes recommendations on the composition of the board and its
committees and on the retirements and appointments of additional and replacement directors.
It ensures compliance with the Code and that the board maintains the appropriate balance of
skills and experience to enable members to discharge their duties and responsibilities effectively.
2 | Glencore: an overview
The HSEC Committee is chaired by an independent board member, with other members including Glencores CEO and Corporate Head of Sustainability. It formulates and recommends policy
on these issues as they affect Glencore operations. In addition, our compliance and business
ethics committee (see section 9.2: Compliance: reporting misconduct) and our group risk management and internal audit teams play key roles in managing GCP activities.
Glencores Articles of Association govern the rights of shareholders to require the circulation of
resolutions, statements or other matters for annual general meetings (AGMs). As Glencore will
hold its first AGM in 2012, the opportunity to use these mechanisms to raise such topics was not
available during the period covered by this report.
Glencores Articles of Association also require all our directors to disclose whether they, or any
person connected to them, have an interest in any company of the Glencore group.
Concentrates
A concentrate is a natural
resources commodity,
consisting of extracted and
processed mineral ores.
Concentrates are the first
stage in the life-cycle of
refined minerals and metals.
2 | Glencore: an overview
2 | Glencore: an overview
2 | Glencore: an overview
2 | Glencore: an overview
Commodity production,
marketing and trading
A marketer with integrated production and
processing capabilities
Extraction
Marketing/Distribution
Consumers
Owned
production
Port facilities and storage
3rd party
production
Port
Shipping
Warehouse
Delivery to
industrial
consumers
Industrial
consumers
Glencore not only produces commodities but offers customers and producers a range of services that include
shipping, logistics, transportation, storage, financing, risk management and marketing. Physical commodity
marketing is a volume-driven business requiring expert risk management, substantial financial resources,
market knowledge and both product and logistical expertise.
Physical sourcing and marketing requires expert product handling and shipment, including appropriate storage
activities. Typically, our staff handling the physical movement of goods account for a significant proportion of
the headcount for each of our business segments. They work closely with our dedicated shipping and chartering
teams, who actively trade freight to gain market knowledge and volume benefits.
Storage capacity
worldwide
Suezmax
freight capabilities
4
7,000 tons
2.1 million m3
Energy
Oil
Coal (excl. Prodeco)
Agricultural products
9.0 million m3
9.5 million tons
4.8 million tons
Oil
Agricultural Products
Coal
Aframax
38
Panamax
39
MR tanker
93
Handy-size
27
Small-size
Total
203 vessels
NB: All figures based on the Glencore prospectus released in May 2011
NB: All figures based on the Glencore prospectus released in May 2011
2 | Glencore: an overview
2 | Glencore: an overview
Segments
Departments
Key commodities
Energy products
Locations of industrial assets:
Chile
Colombia
Singapore
South Africa
West Africa
Agricultural products
Locations of industrial assets:
Main office
Office
Independent agent
Argentina
Australia
Brazil
Bulgaria
Germany
Hungary
Kazakhstan
Netherlands
Paraguay
Poland
Romania
Russia
Ukraine
Uruguay
Grain Barley
Cotton
Wheat
Corn
Rapeseed
Sugar
Biodiesel
Vegetable oil
3|
About this report
Our reporting is aligned with internationally recognised standards that include the Global
Reporting Initiative (GRI) G3 Guidelines and its metals and mining sector supplement. We believe
that our reporting has achieved Application Level A, with the exception of our targets and objectives, and performance against those targets, which we commit to report in 2011. The index
published in this report (see the GRI index) documents the extent to which we meet these reporting requirements.
3.2 | Data
For an organisation of Glencores operational scope and geographical reach, it is critical to collect
and consolidate data based on commonly defined reporting elements. That fact is particularly
true for this initial report, as it has required the recent rollout of a reporting system that for the
first time gathers consolidated non-financial data from across Glencore. This rollout took place in
the final quarter of 2010 (with our initial GCP assessment taking place in late 2009). Our intention
is to strengthen our data validation and standardisation processes over the coming years.
As far as possible, we have gathered and consolidated data back to 2008, to give context for the
current results. There have been some limitations on data comparability and completeness, as
information dating from 2008 and 2009 was gathered before our current reporting systems were
implemented.
We have included data only from operations controlled by Glencore at the end of 2010. Entities
which were under our control in 2008 or 2009 but disposed of by the end of 2010 have been omitted.
In addition, some of our illustrative case studies feature initiatives or projects that were commissioned or commenced before 2010 but were still delivering continuous benefits during 2010.
Collecting sustainability data at a group level allows us to compare figures and consolidate information consistently. We can therefore identify and focus on areas that need improvement or offer
good practice examples for the rest of the group.
Although all data presented is subject to internal documentation and review requirements, our
current processes are not as mature as those used for our financial reporting.
The data metrics in this report are those generally used throughout the industries in which we
operate. They are primarily based on the GRI G3 Guidelines and its metals and mining sector
supplement. Where more specific metrics are applied, these are specified in the relevant section.
As our head offices and satellite marketing offices have comparatively little sustainability impact
compared with our industrial activities, we do not report on measures such as energy consumption
and community issues for these offices.
We reserve the right to change our approach to the inclusion of data in future sustainability reports without prior announcement, along with changes to specific data and its interpretation. In
addition, we are reporting to the public using a newly established reporting system and therefore
we may make future restatements of data already reported, if improvements in our reporting and
verification systems make this appropriate.
All monetary figures stated are in US dollars (USD), unless otherwise indicated.
4 | Materiality
4|
Materiality
This report details our performance against the commitments of our corporate responsibility
programme, Glencore Corporate Practice (GCP). We have determined the material issues within
each performance area or issue using experience gained from our industrial and marketing activities, and by interacting with our people, the local communities and other stakeholders. We
have done this according to the following criteria:
1. The impact the matter has on our business and the regions where we work
2. The degree to which the matter is under our direct control or indirect influence
3. The impact or potential impact on local communities, and on our people, customers,
operations or sourcing
4. The relevance to our key stakeholders: we consider these to be our people, local communities,
our customers, our investors and the governments of the countries in which we operate
Once we have established the relevant issues, we develop appropriate policies and approaches.
We take into consideration international and sector-specific standards and guidelines, our own
reporting and risk management systems, our community and investor relations programmes and
the outcomes of regular dialogue between our corporate management and operational staff. We
believe that this first public non-financial report will also help us further engage with our stakeholders and prompt valuable and constructive input for our continuous improvement process.
When examining the issues relevant to us, we find some that are universal to all our business
activities, and others specific to the local circumstances at our different operations. These are
defined by geographical location, type of operation, regulatory environment and the development
levels and resources of the local communities.
This report covers the most significant (material) issues as determined during the implementation of GCP. It does not exhaustively list all potential topics. If a specific issue is omitted, this does
not indicate that it is not on our agenda or otherwise addressed by GCP.
4 | Materiality
5|
Glencore Corporate Practice
Glencores management approach to non-financial performance and corporate responsibility,
along with our policies, is embedded into the Glencore Corporate Practice (GCP) framework.
This framework represents our commitment to good business conduct, the environment, Health
& Safety, our people and communities.
International law
Best practice standards
GCP principles
It is designed to:
Ensure compliance with regulations at international and local levels
Meet internationally accepted good practice standards for corporate governance and
managing non-financial activities
Allow us to act proactively and continuously improve performance in these areas
Allow regular internal and external reporting on our actual performance
GCP is designed and implemented to meet internationally recognised sector-specific good
practice standards.
Glencore supports the Extractive Industries Transparency Initiative (EITI) but is not currently a
signatory to any other external codes of conduct, initiatives or programmes relating to economic,
environmental or social charters, although we observe developments closely. We are a member
of the relevant trade associations for many of the commodities that we produce and trade.
GCP management
programme
Local law
It is clear that GCP must address and respect a wide range of subjects. For this reason the principles
are supported by specific policies and programmes for individual issues, such as our compliance
programme. We also have appropriate controls in place to allow us to benchmark our performance
against targets, and to provide guidance and indication of where we need to take corrective action.
Glencore has sizeable industrial operations that do not operate under the Glencore name. These
operations issue their own policies (in accordance with the GCP principles) and implement them
using their own programmes adapted to their specific needs, operating environments and products.
All operations have been issued with the GCP principles and minimum requirements and are currently
conducting self-assessments on their compliance. These reports on how they are performing and
their planned actions will help us shape and enhance GCP in the future.
Communities
Based on the principles of dialogue and co-operation, contributing to local development and
hazard prevention, our industrial and logistical operations in particular must ensure that:
Any local impact from their activities is assessed and, if necessary, mitigated
Sufficient staff and infrastructure are provided to manage community relations
Complaints are registered and handled effectively
We encourage all our operations to seek additional possibilities for community involvement.
The environment
Based on the principles of compliance and continuous improvement, our industrial and marketing
activities must ensure that:
Our environmental impact is identified, assessed and monitored
Regulatory requirements are monitored and complied with
Environmental management programmes and controls are implemented
Sufficient staff and resources are provided
Contractors and service providers are involved where necessary
Programmes and targets are implemented to improve continuously the efficient use
of resources, protection of biodiversity, climate change impact and pollution prevention
(by addressing the management of water, waste and air emissions and the rehabilitation of land)
Actual performance is tracked
Our customers
Based on the principles of assuring quality and contractual performance as well as regulatory
compliance, our corporate marketing and product safety staff work with our suppliers and service
providers to ensure that:
Product quality is assured throughout the supply chain
Products comply with all regulatory requirements
Product information and documentation are provided to ensure safe transport, handling and use
Our investors
Our corporate functions aim to achieve superior long-term financial returns with minimum business
risk, along with strong internal governance and consideration of environmental, health, safety and
community standards. They must support our business segments and their commodity departments and together follow internationally accepted good practice standards and guidelines.
Compliance
Based on the principles of compliance with all relevant local and international laws and overall
integrity of business conduct, our marketing activities must follow the guidance and instructions
of our corporate compliance programme. Our industrial operations must implement their own
compliance programmes, which address their specific requirements but are consistent with our
overall commitment.
Communication and reporting
The facilitation of fact-based, fair and open communications with parties interested in our operations is an integral part of GCP. GCP is integrated into our corporate reporting structures, adding
a non-financial dimension to our financial reporting. Through our reporting and an open dialogue
regarding the environment, our people, Health & Safety and local communities, our stakeholders
can report issues to the highest level of the organisation and for appropriate action.
5.3 | Implementation
We believe that robust management of the issues addressed by GCP requires guidance, co-
ordination and control from the corporate level. But our success in meeting both our own ex-
Internationally recognised
external standards
pectations and those of our stakeholders is most often determined by how we perform at a local
operational level.
This means that it is vital that our local-level operations embrace these corporate standards and
take responsibility for, and ownership of, GCP issues. They are best able to set priorities and understand where, and with what impact, execution of activities occurs. Our intention for the GCP
framework is to ensure harmonised guidance, facilitation, control, active support and communication; it establishes common ground and understanding within the Glencore group, aligning
our internal expectations and defining minimum requirements.
We used a multi-stage approach to designing and implementing the GCP framework. The first
stage in 2009 comprised an initial questionnaire-based assessment. In 2010, we undertook GCPspecific site visits and two-way consultation with key representatives from each of our business
segments. This was followed by the authoring, reconciliation and final board approval of our
seven GCP principles and commitments in May 2010. We then introduced an internal non-financial reporting system, which forms the database for much of the information presented in this
report. To help facilitate a thorough understanding of GCP and provide guidance throughout the
organisation, we developed the GCP guidance document, which gives background information
on GCP and its objectives.
The next step will require all industrial operations to perform a self-assessment on the minimum
requirements of GCP and report back on the results.
GCP boundaries
>50%
ownership or
operational control
The GCP framework is mandatory within our marketing activities, as well as in all industrial activities
where we own more than 50% of the operation. Although GCP cannot apply directly to customers,
suppliers, agents, service providers or contractors, we encourage employees to ensure that these
partners comply, for example through contractual arrangements, appropriate communication or
training.
We also use our influence to raise awareness of the basic GCP principles within joint ventures and
entities in which we have non-controlling stakes.
GCP reporting
GCP adds non-financial aspects to our internal corporate reporting, covering our social, environ
mental, community and compliance performance. Depending on the subject matter, routine reports are made either annually or monthly. Major incidents, which we classify as class A, must
be reported within 24 hours.
We also publish annual public sustainability reports; this is the first of these publications. These
follow GRI guidelines, including the sector-specific supplement for metals and mining.
Group
objectives
Operationspecific
objectives
Using our 2010 data as a baseline, we intend to establish a series of measurable GCP objectives
during 2011, which will form the GCP programme. This programme will include a set of grouplevel objectives that support implementation of the GCP commitments, to be published in the
2011 GCP report.
Every business within our group will create its own list of objectives, appropriate for its specific
operations, based on the GCP objectives. Each list will be approved by the appropriate management team, which will also carry out periodic assessments, management reviews and corrective action plan approval. Each businesss individual objectives must be distinct and measurable
and designed to contribute to Glencores overall group objectives.
Commitment
to our people
Our GCP commitment states: Hiring and retaining skilled and motivated
employees is important to our continued success. We are committed to fair
remuneration by the provision of competitive wages and benefits.
We do not tolerate any kind of harassment or discrimination and support
the UNs Universal Declaration of Human Rights, which prohibits forced,
compulsory or child labour.
One of our ultimate goals is to ensure the Health & Safety of our employees
and contractors. In order to meet this goal we develop, implement and
maintain Health & Safety management systems and programmes which
meet international standards. These are tailored to the specific needs of
our different operations and activities.
6 | Our people
6|
Our people
One of the key factors in Glencores success is a good, trusting relationship with our people. This
priority is reflected in the principles of Glencore Corporate Practice (GCP) and its related guidance,
which require regular, open, fair and respectful communication, zero tolerance for human rights
violations, fair remuneration and, above all, a safe working environment.
We also believe that putting our people first helps us to attract and retain highly qualified and
skilled employees in all disciplines. This is an important driver for sustainable success, especially
given the competitive markets in which we operate. For instance, our marketing activities require
people with a thorough understanding of the commodity markets in nearly every region of the
world. And we need many specialists to plan and manage the logistics required to move and
deliver the products that we buy and sell.
Glencores GCP guidance prescribes the minimum requirements that we believe are needed for
our operational managers and staff to contribute to our Health & Safety commitment. This commitment can briefly be summarised as zero harm. It requires a skilled, trained and motivated
workforce.
The engineers at our industrial assets and our other industrial, technical and project experts are
key to our operations. They must often work in remote locations or countries where there is an
overall shortage of skilled workers. We address this issue in many ways, including using strategic
workforce planning as well as targeted programmes and policies to enable skills development.
We believe that the precise approach should be determined by local conditions, so we develop a
unique way forward for each operation, while ensuring that each is consistent with GCP.
The varied nature of Glencores operations also means that we recognise a wide range of collective
and individual bargaining arrangements, with the underlying recognition of our peoples right to
freely associate and join trade unions.
Glencore is committed to upholding the United Nations (UNs) Universal Declaration of Human
Rights and therefore does not tolerate child labour or forced labour at any of our operations. We
also respect the International Labour Organization (ILO) Declaration on Fundamental Principles
and Rights at Work.
Glencore is an equal opportunity employer that employs and promotes people based on merit.
Where we work with contractors, we use our influence along with encouragement and engagement
to ensure that their organisations employee relations are consistent with ours.
6 | Our people
FFR
0.12
0.08
0.04
0
2008
2009
2010
FFR
Total fatalities
2008
0.1120
20
2009
0.1383
18
2010
0.1034
18
Our internal reporting system provides us with important data that we analyse to help the group
learn from serious incidents and accidents.
he data reported in this section often refers to the total workforce, ie both employees and contractors.
T
Wherever data refers only to employees, this is stated clearly.
FFR = total number of fatalities permillion hours worked (by both employees and contractors).
6 | Our people
The lost time injury frequency rate (LTIFR)3 for Glencores metals & minerals and agricultural
divisions was 3.36 in 2010. Our agricultural division started recording Health & Safety indicators
in 2010 and determined the LTIFR to be 2.68.
LTI FR
4
3
2
1
0
2008
2009
2010
2008
4.32
4.45
3.25
n/a
4.08
2009
4.17
4.26
2.60
n/a
3.90
2010
3.45
3.84
1.21
2.68
3.36
NB: Neither agricultural activities for 2008 to 2009 nor oil product activities are included, as they started Health &
Safety GCP reporting in 2011
As can be seen from this graph, there have been great improvements in coal LTIFR figures since 2008.
Approximately 90% of the hours worked across all our industrial assets in 2010 can be attributed to
our activities surrounding metals & minerals and coal. The LTIFR for our metals & minerals assets was
3.84, an improvement of 10% compared with 2009 and 14% compared with 2008.
We do not aggregate information on absenteeism at a group level.
LTIFR = total number of injuries permillion hours worked (by both employees and contractors).
6 | Our people
Hours
120
80
40
0
Group
2008
65
8
10
53
2009
37
10
17
31
2010
138
12
22
110
NB: Information recorded for employees only. Marketing activities not included
Across Glencore, the average hours of training per employee dropped between 2008 and 2009.
This was mainly due to our partial closure of some mines in response to the economic crisis, and
the new 2010 training initiatives at Kazzinc, our Kazakhstan metallurgy operation, which increased
the average training hours significantly.
Kazzinc has started a large-scale safety training project called Superintendents School, the retraining of Ridder Sokolny mine engineers and a professional training programme for workers, all
of which contributed to a rise in the average training hours for 2010.
The Iscaycruz opening in Peru also resulted in an increase from 74 hours per employee in 2009 to
84 hours per employee in 2010 for this operation.
Paramount to safe operations is our inclusion of contractors in all our training. On average they
account for a quarter of our people across the Glencore group. In general, our contractors are
obliged to adhere to the same rules and procedures as our employees.
4
T
he International Maritime Organization (IMOs) International Convention on Standards of Training, Certification
and Watchkeeping for Seafarers (1978 and as amended) sets qualification standards for masters, officers and watch
personnel on seagoing merchant ships.
6 | Our people
Prodeco, Colombia
Golden Rules for safety
The Golden Rules are Prodecos minimum
rules, standards and procedures, designed to
prevent fatalities and major accidents based
on the most common hazards of mining. They
are mandatory for all employees, contractors
and visitors at all times, and are intended to:
Ensure compliance with safe working
practices and Health & Safety procedures
Identify hazards and assess risks before
any task or activity begins
Ensure that our people are trained,
qualified and competent for their work
Ensure that the specified personal protective equipment for each activity is used
We primarily protect our people by minimising their exposure to hazards using engineering controls
or equipment. We use personal protective equipment to supplement these measures, on account of the wide variety of working environments. The most common hazards in our workplaces
are working with heavy loads, noise, silica, diesel exhaust particles, acid mist and particulate matter
containing heavy metals.
Although each operation manages its own Health & Safety locally, our newly implemented GCP
reporting system includes a group-wide requirement to record and report occupational illnesses.
This means illnesses caused by exposure to factors associated with employment, and includes
acute or chronic illnesses or diseases.
Based on the information received in 2010, we saw 2785 new occupational illnesses reported, representing an occupational diseases rate (ODR) of 3.63, for our metals & minerals, coal and agricultural operations. The vast majority of these reported illnesses (83%) were types of noise-induced
hearing impairment, which accumulates over the long term and was therefore partly incurred at
times when workers conditions were outside our control. Other conditions included respiratory
illnesses (12%), musculoskeletal disorders (5%) and skin conditions (0.4%).
his number does not include Kazzinc, as the latest order of Kazakhstans Minister of Public Health, No. 709 dd
T
16.11.2009, introduced a reclassification of occupational illnesses that is currently being amended. The amended
order is expected to take effect in 2011.
1.
2.
3.
4.
5.
6.1.3 | Health
As our group contains such a diversity of locations and types of operation, the health conditions to
be addressed can vary greatly from site to site. We therefore employ a wide range of programmes
adapted to match specific local circumstances, while meeting our general GCP requirements. Local
Health & Safety officers and site managers have day-to-day accountability for the programmes
used at their own sites. Each programme starts with an assessment of the workplace and working
environment to determine the appropriate measures to ensure our peoples long-term wellbeing
and health.
La seguridad,
un compromiso de todos.
6.
7.
8.
9.
11. Ninguna persona o vehculo debe entrar a una rea que este
siendo cargada con explosivos, o que ya est cargada, sin
previo permiso de los dueos o responsables de dicha rea.
6 | Our people
In many of the countries where we operate, we give our people general preventive healthcare and
medical advice. This is particularly important in locations where public healthcare provision is less
well developed, as our support can make a great difference to the general health of our people
and their families.
In addition to onsite medical care, we also run a wide range of health programmes and initiatives.
Their scope and type depend on the specific needs of the local workforce. Our initiatives are
especially relevant in countries with particular health threats, for example, in some countries
where we operate malaria is a major threat, while others have some of the highest HIV/AIDS
infection rates in the world. We try to address these issues with specifically tailored programmes.
Periodic larviciding of stagnant water where mosquitoes are most likely to breed
6 | Our people
Mutanda, DRC
Preventing child mortality
The Mutanda mine is a remote operation.
When Glencore became involved in this
joint venture in 2007, healthcare provision in
the local community was very limited. With
an under-five mortality rate close to 30%,
Mutanda had to act quickly to reverse this
worrying situation. The team initially planned
to build a clinic focusing on Mutanda employees and their dependants, but it became
apparent that this was not expansive enough
to lower the mortality rate.
Mutanda constructed two additional clinics
and formed an alliance with the DRC government to open a vaccination clinic for underfives, operated by the Mutanda team with
6 | Our people
9%
Industrial activities:
Metals & minerals and energy (2010)
1%
2%
15%
15%
6%
Industrial activities:
Agricultural (2010)
2%
11%
3%
2%
21%
45%
22%
26%
1%
67%
51%
Region
Africa
Asia
Australia
CIS
Europe
Latin America
North America
Total
Headcount
59
400
56
580
1 241
176
260
2 772
Region
Africa
Asia
Australia
CIS
Europe
Latin America
North America
Total
Headcount
12 431
1 381
1 103
24 284
678
7 142
591
47 610
Region
CIS/Australia
Europe
Latin America
Total
Headcount
4 904
801
1 569
7 274
Metals
Agricultural Energy
Employees
43 031
7 274
4 579
Contractors
16 637
659
5 198
Total
59 668
7 933
9 777
NB: Excludes contractors in oil terminal operations not under Glencore operating control
6 | Our people
6.2.1 | Turnover
Our staff turnover for 2010 was 14% of our total employment figure. The age group with the largest turnover was between 30 and 50 years (7%), followed by the under-30s (4%) and finally the
over-50s (3%). These turnover rates are comparable with those that we observed in 2008 and 2009.
The turnover rate across our industrial activities was 14% in 2010, the same as for marketing.
This rate is slightly lower than that of previous years, due to improved economic conditions. The
average turnover across the last three years within our agricultural division was 33%, a relatively
high figure due to the nature of a business with many short-term seasonal workers.
Africa
Asia
Australia
CIS
Europe
Latin America
North America
Group
20
15
10
5
0
6.2.2 | Diversity
Consistent with our figures for 2008 and 2009, around a fifth of our employees across the group
were female in 2010. As a London listed company, we also recognise the importance of increasing
the number of women on our board. We will take this into account when making future appointments to the Glencore board of directors.
Africa
Asia
Australia
CIS
Europe
Latin America
North America
Group
20
15
10
5
0
6.4%
21.3%
11.8%
27.2%
26.7%
8.6%
18.3%
19.1%
More than half of all people working for Glencore are aged between 30 and 50; this is in line with
other industries.
23%
57%
< 30 years
3050 years
> 50 years
2008
22
57
21
2009
22
57
21
2010
23
57
20
6 | Our people
Prodeco, Colombia
Local employment
As part of our commitment to the wellbeing of
our local communities, we focus on employing
people from the areas where our operations
are based. We define this as being born in
the regions of La Jagua de Ibirico, Becerril,
El Paso, Codazzi and Chiriguan (Cesar), or
having lived there for at least five years. We
give first consideration to people from these
municipalities, if they meet the criteria and
standards of our selection policy and process.
While this is not a legal requirement in Colombia, our environmental management plan
makes reference to this preference for local
workers.
From 2008 to 2010, we saw a 40% increase
in local employment. In 2010, 92% of direct
6 | Our people
6 | Our people
Our people have the right and the ability to negotiate and to organise themselves with respect
to labour conditions and labour rights. Our sites operate a range of different industrial relations
models that include individual site and collective bargaining agreements. We have not identified
any instances of sanctions or warnings on these issues from inspection agencies in 2010.
We consult and communicate with our people on a timely basis during significant organisational
changes as well as offering support where necessary. These changes include closures, restructuring and acquisitions. We also follow all regulatory requirements in relation to minimum notice
periods. Notice periods vary across the group due to the variety of businesses and locations.
There were eight strikes during the year lasting more than five days; the majority of these took
place in South America.
Commitment to
communities
7 | Communities
7|
Communities
We understand that our relationships with local communities are important, not only for all our
operations, but for the whole Glencore group. We believe that the best way to manage these vital
relationships is to adhere to the principles of open dialogue and co-operation.
We believe that we should contribute to local communities economic and social development
(above and beyond the employment opportunities we provide and the royalties and taxes we pay)
and mitigate as far as possible any adverse impact that might arise from our operations. These
ideals are an integral part of the Glencore Corporate Practice (GCP) community commitment.
In addition to our direct economic contribution, our operations bring additional value to their
local communities by procuring local products and services, investing in local infrastructure and
contributing to development projects in the region.
This effect is generally more marked at operations in remote regions, which are often underfunded in terms of infrastructure and public amenities. Such communities experience significant
benefit from the economic development, employment and improved infrastructure provided by
our operations. This is particularly relevant for our mining operations, which generally make the
greatest contribution to their surrounding communities medium and long-term local development.
To a lesser extent it also applies to our farming operations.
Our community contributions have additional value to Glencore as they can help generate broad
acceptance and respect for our presence. This acceptance helps Glencore run our operations
successfully, not only by retaining our licence to operate in each region, but also when applying
for new projects and maintaining our workforce.
Another issue that affects our local communities is mine closure, when resources become depleted
or no longer economic. Our mining operations develop plans for closure that take the expected
lifetime of each specific mine and the requirements of the relevant licence to operate into
account. We make estimates for future restoration, rehabilitation and decommissioning costs
that necessarily include assumptions regarding the circumstances of closure. These assumptions
include the future regulatory framework, the timing of the closure and rehabilitation activities,
and the impact closure will have on local communities.
GCP outlines and mandates the Glencore groups general approach to managing community
relationships. But ultimate responsibility lies with local management at each operation, who must
determine their specific priorities through understanding and assessing local needs, concerns
and rights.
We believe that the effectiveness of our programmes will be determined by consistent longterm behaviour. This can deliver a strong track record of benefit to the communities in which we
operate.
Across Glencore, there are many examples of such consistent track records, both from operations
that we have run for many years (such as Los Quenuales in Peru or Kazzinc in Kazakhstan) and from
those that we have recently become involved with (eg Mutanda in the DRC).
Human rights
7 | Communities
7 | Communities
By the end of 2010, half of our 14metals & minerals and coal operations had a formal complaint
management system in place. These systems recorded 173 complaints in 2010, the majority of
which were about water use and odour. We also recorded six disputes regarding land use, all of
which are currently being resolved.
Where we find significant challenges, we address these step by step, using consistent long-term
initiatives to allow for a successful outcome.
Kazzinc, Kazakhstan
Kazzincs track record on community involvement
Kazzinc constantly strives to strike a balance
between its economic, social and environmental responsibilities, while making a positive lasting contribution to the communities
in which it operates. Since its inception, over
99.9% of the workforce has consisted of local
citizens and the company offers scholarships
for higher education to local residents, ensuring that the local workforce is fully capable
of supporting modern mining operations.
Kazzinc also proactively seeks feedback by
engaging with both government and non-government stakeholders, particularly residents of
nearby communities, employees, and members
of the unions.
Ust-Kamenogorsk kindergarten
7 | Communities
Katanga, DRC
Katanga and the local community
Katanga is located in Kolwezi, in the Katanga
province of the Democratic Republic of Congo
(DRC). It is an integral part of the lives of local
communities, both through its social responsibility projects and as the largest employer
in the region, employing approximately 3,100
people directly and 3,000 as contractors.
Since 2008, Katanga has invested over USD
23 million in local community projects and infrastructure, with a further USD10million bud
geted for 2011. Katanga management works with
both local and provincial government to identify
key projects that ensure the most positive social
impact. Education, health services and infrastructure have been targeted. Since 2008, pro
jects have included those discussed below.
Education
Katanga has contributed financially and supplied raw materials, engineers and labour for
the construction and rehabilitation of schools
that include Nuru Ahenee Royale de Kolwezi,
Mupaja, Walemba, Matendo and Nyumba
nursery school, Jean XXIII College and the
University of Kolwezi.
Health
Katanga has assisted with the rehabilitation
of Mwangeji hospital, provided essential
medicines, and contributed USD 2 million to
constructing a mine hospital to cater for its
employees and dependants: a population of
30,000. It has also commenced work on two
new hospitals, Pweto in the south of Katanga
and Kisangani in Kivu province.
School in Kolwezi
Infrastructure
Katanga has provided boreholes for drinking
water for several villages in and around Kolwezi,
most notably in Musonoi and Mutoshi, plus five
new boreholes, along with associated equipment and pumps, for Kolwezi. It has paved
19km of roads in Kolwezi and maintains a further 30km between nearby villages, along with
7 | Communities
7 | Communities
7.3 | Resettlements
On rare occasions, one of our mining operations will be unable to continue without resettling
some local inhabitants; this obviously has a major impact on the surrounding communities. If this
is unavoidable, we collaborate closely with local communities and authorities in alignment with
international standards (such as the International Finance Corporations Operational Directive
4.30 on involuntary resettlement).
In 2010, our only operation to be affected by resettlement activity was Prodeco in Colombia. This
will have an impact on communities near our Calenturitas site. The Colombian government has
required the four mining companies operating in this area to resettle three towns; an initial census
shows that about 320 families will need to be resettled. The four companies are still investigating
the possible effects and consulting with local communities to reach a common consensus. This
will establish the appropriate processes for the resettlement.
7 | Communities
Minara, Australia
Supporting local indigenous communities
Minara is committed to supporting local indigenous communities, with a range of initiatives
that cover education and training, economic
development and the protection of indigenous
culture and heritage.
Minara provides support for young indigenous
people to access educational opportunities. A
scholarship programme enables students to
pursue tertiary education through pre-tertiary
placements in residential boarding programmes
at Perths leading schools. Support may extend
to accommodation and related costs at university residential colleges. The company also
recognises that most local indigenous children
attend local schools, so in 2010 it contributed
to uniform programmes, nutritional education
and school events at individual local schools.
Minara actively supports indigenous employment opportunities through a pastoral training and employment programme, developed
in consultation with local indigenous stakeholders; this provides a number of entrylevel positions. The company also engages
various indigenous-owned businesses to provide services at Murrin Murrin.
When the Murrin project began, Minara created the Murrin Murrin Aboriginal Environmental
Liaison Committee; this includes Minara community officers, indigenous representatives
and government and agency officials from
the region and Perth. Consultations provide
information on environmental compliance,
sustainability reporting, pastoral updates and
proposed new mining activities. The committee is also a forum to discuss new employment
and training opportunities.
The company also established the Minara
Community Foundation in 2007 to support the
people of the northern goldfields in the long
term. During 2010, grants included contributions to a transport programme to provide
improved access to local townships, and to
an Aboriginal media corporation, to provide
a radio station for indigenous communities.
Additional funds were given to the Laverton
Leonora Cross-Cultural Association to assist
with various services for local indigenous
people.
7 | Communities
Mopani, Zambia
New skills for retired miners
The retirement age in Zambia is 55. As
Mopani's retired miners are relatively young
and eager to continue working, and recognising the opportunity to assist retired miners to
develop skills in agriculture, Mopani established the Makumbi farm project in Mufulira.
Acquired in 2004, this 1,300 hectare farm plot
has been managed as a project for 106 former
employees and their families. The retired miners and their families were provided with an
opportunity to learn farming skills (under the
supervision of a farm manager until August
2010) and take ownership of a viable opera-
tion. Mopani has provided agricultural equipment (including tractors and irrigation equipment) and consulted with an agronomist on
the most effective crops and farming methods
for the area. The farm, which is run as a cooperative, now produces maize, fruit, poultry
and dairy and has proved to be a sustainable
project, which Mopani continues to support as
and when required.
This group has not only developed new skills
in a farming discipline of its choice, but has
also established an additional food supply and
source of income for its families.
7.5.2 | Infrastructure
Through our mining activities we make significant investments in equipment and infrastructure,
which benefit the surrounding communities. See the feature on Katanga in DRC earlier in this
chapter to see how our activities can add to the development of local infrastructure.
Our local mine managers constantly seek out the combination of measures that will help their local
communities most effectively; they follow the general principle of enabling, not simply donating.
Major expenditure on the productive infrastructure of our host countries creates the basis for further
wealth generation and represents our long-term commitment to the surrounding communities.
7.5.3 | Charitable contributions and sponsorship
In addition to our large-scale community programmes, Glencore also actively makes donations and
provides sponsorship. Our people may make charitable donations in Glencores name for bona fide
purposes (ie to a charitable or not-for-profit organisation for which no tangible benefit is received, or
expected, by Glencore). This must be in accordance with all applicable laws and regulations.
We believe that charitable contributions and sponsorship should never be used as a substitute for
political contributions. Guidance on Glencores policy towards charitable contributions is given
in our corporate ethical guide.
In 2010 Glencore International AG gave USD9million in charitable donations and sponsorship
across the group.
7 | Communities
Africa
Americas
Asia*
Europe
Oceanic
Total
1 682
3 367
3 686
1 030
1 005
10 771
8 839
2 646
2 990
1 079
740
Employee wages
Operating costs
194
271
213
73
133
885
195
31
61
185
473
Community investments
Net economic value retained/added
before taxes and capital investment
Payments to governments
(taxes and royalties)
(as percentage of value retained
before tax)
Capital expenditure
Economic value retained
24
12
34
71
116
407
388
124
52
503
89
112
308
63
575
27%
79%
114%
378
426
391
43
123
1 360
582
130
311
170
238
1 432
7 | Communities
7.6 | Lobbying
Anyone who lobbies on Glencores behalf must comply with all applicable laws and regulations
(including but not limited to those relating to registration and reporting). Guidance on Glencores
policy towards lobbying is given in our corporate compliance programme.
IT room and computers donated to the El Cruce New School in Colombia by Prodeco, via their Calenturitas
Foundation
Commitment to
the environment
8 | Environment
8|
Environment
Glencores diverse operations, whether undertaken by our industrial or marketing activities, have
the potential to make an impact on the environment.
We believe that it is vital to identify the associated risks at each stage of our supply chain if we are
to manage and limit the environmental impact of our activities. We have extensive programmes
and management systems in place; and we aim to continually improve our performance wherever
possible.
Most of the environmental issues that affect us are best addressed at a local level. Glencore Corporate Practice (GCP) provides our group-wide requirements for good practice in environmental
management. These requirements are implemented by each of our operations in such ways as
best fit their specific circumstances, but overall they require us to:
1. Identify, assess and monitor all environmental impacts
2. Monitor and comply with all national and international regulatory requirements
3. Implement adequate environmental management programmes and controls
4. Provide competent staff and sufficient resources for environmental management
5. Involve contractors and service providers where necessary
6. Implement programmes and targets to continuously improve the efficient use of resources,
protection of biodiversity, climate change impact and pollution prevention (by addressing the
management of fresh and waste water, waste and air emissions and the rehabilitation of land)
7. Track and assess actual performance
We try to optimise the use of materials and energy wherever possible.
In addition to our environmental responsibility for our own activities, we participate in a range
of supply chains whose environmental impacts are not under our direct control or influence. For
example, we use third-party services for maritime shipping of products by voyage charter and for
storing our goods in warehouses or tank farms.
We aim to work in partnership with our customers, suppliers and service providers to promote
environmental awareness and limit the environmental impact along the entire supply chain.
Figure 10: Raw materials used in processing activities
Materials
Ore to ore concentrates
2008
(1 000 tons)
2009
(1 000 tons)
2010
(1 000 tons)
19 349
16 649
18 775
3 436
3 729
4 219
3 397
3 208
3 390
Bauxite to alumina
3 164
2 627
2 777
2 167
1 905
1 645
Seeds to crusher
1 567
329
537
356
8 | Environment
Materials
Chemicals used for ore processing
2008
(1 000 tons)
2009
(1 000 tons)
2010
(1 000 tons)
1 350
1 287
1 269
452
371
361
256
245
294
Fertilisers
102
180
100
Explosives
22
17
57
49
17
20
24
Pesticides
2%
63%
Africa
Australia
CIS
Latin America
8 | Environment
Each of our industrial mining sites implements a land management plan, created by local operational management and approved by the local competent authorities. Plans are developed
specifically to suit the geographical location, any nearby protected or high biodiversity areas
and the activities at the site, as well as local regulations. They may include environmental impact
assessments and biodiversity baseline studies to determine and minimise impact and contribute
to the conservation and restoration of biodiversity. This involves the collection of plants and
seeds and their cultivation in nurseries as well as the relocation of wildlife.
We aim to avoid the loss of any International Union for Conservation of Nature (IUCN) Red List
threatened species.
One of our sites is located near part of the Colombian forest reserve called Serrana de los
Motilones. Leasing this area means that approximately 0.7% of our land lies close to protected
areas. In addition, less than 0.1% of our land is within or close to areas of high biodiversity value
(outside protected areas), as defined by the local national governments
Type of land
Total land owned, leased or managed
Total land under rehabilitation
Total land disturbed
Land with high biodiversity value
Land close to or within protected areas
2008
(ha)
2009
(ha)
2010
(ha)
383 428
375 995
436 730
1 307
1 617
1 982
16 351
17 035
21 035
124
137
137
2 864
2 864
Our mining operations develop plans for closure that depend on the expected life of each mine
and requirements arising from the relevant licence to operate. They make estimates of costs
for future restoration, rehabilitation and decommissioning that necessarily include assumptions
regarding the circumstances of closure (future regulatory framework, the timing of the closure
and rehabilitation activities).
Land newly
disturbed
(ha)
Land newly
rehabilitated
(ha)
Land disturbed
(closing balance)
(ha)
Year
Land disturbed
(opening balance)
(ha)
2009
16 351
684
17 035
2010
17 035
4 087
87
21 035
Biodiversity is an important issue for Glencore, as any mining operation will necessarily have an
impact on the biodiversity of the surrounding area. These impacts may be direct (eg from land
clearing) or indirect (including noise or air emissions). Each of our sites has its own individual
set of issues, although our operations are predominantly in brownfield sites, which have a lower
impact on biodiversity than greenfield operations. If one of our sites has a biodiversity concern,
our specialists undertake to mitigate the problem, as exemplified in the following feature on
Prodeco in Colombia.
8 | Environment
Prodeco, Colombia
Calenturitas river diversion project
Prodeco relocated 6 km of the Calenturitas
river to reach 77million tons of coal. The Colombian Ministry of Environment approved
the environmental management plan. This
included risk assessments on environmental
issues, uses of natural resources, and social
impact, as well as extensive consultation with
the local community.
The maximum, average and minimum flow
rates of the Maracas, Tucuy and Calenturitas
Maracas
Sector A Ro
tor
c
Se
Potencial
Extensin
Ro Tucuy
turitas
Se
cto
rD
Zona de
Infraestructura
Sector C
Ro Calen
8 | Environment
18%
Australia
CIS
Latin America
77%
Our farming operations are located in regions with a long tradition of agriculture, which means
that none of our farm land is located near protected or high biodiversity areas. Our port in Russia
is technically in a protected area; according to the Russian Water Code, every coast must have a
protection belt of 20m, making the bank of the river Don a protected area.
We use precision agriculture technology and our farming units receive regular in-house and external
training on good practice.
We constantly strive to improve the quality and productivity of our farming assets. We are currently
exploring the use of minimum tillage and no-till technologies that are less harmful and have less
negative impact on the soil.
Our overall aim is to ensure that our arable land is productive over the long term and minimise
our environmental impact.
8.1.3 | Environmental incidents
Glencores ultimate aim is to eliminate all significant environmental incidents, and consequently
also any environmental fines, penalties or prosecutions.
Our GCP reporting systems classify environmental incidents to measure their significance, track
remedial responses, and learn from them.
Incident Classification
Class A: major
Class B: moderate
Class C: minor
Near miss incident
(NMI)
Incident or spill with a major environmental impact that has a long-term effect reversible only
by long-term remediation with aftercare
Incident or spill with a significant reversible environmental impact requiring remediation but
not necessarily aftercare
Incident or spill with a minor reversible environmental impact requiring minor to no remediation with no aftercare
Incident that under slightly different circumstances could have caused illness, injury or damage
to individuals, assets, the environment or company reputation, but did not
According to this reporting framework, 297 incidents were reported in 2010, of which none were
classified as major, 11 as moderate and 286 as minor. Furthermore, we experienced 137 NMIs.
Precision agriculture
technology
8 | Environment
In total there was a 2,436m3volume of spillages. All spills were cleaned up appropriately, and all
the incidents were investigated fully.
The NMI reporting element is to promote a better understanding of the conditions that can
lead to incidents that damage the environment. Over the coming years we will use this reporting
system to systematically develop a group-wide understanding of how environmental incidents
occur and how they are best prevented.
the 2014 deadline. As well as being more environmentally friendly, this will eliminate labourintensive manual harvesting.
Vinasse (a by-product of ethanol distillation)
and residual water from processing are both
used in fertirrigation,7 reducing the use of
chemical fertilisers and water. Filter cake (from
the sugarcane juice filtering) and boiler ashes
are both used as organic fertilisers.
The plants bagasse (a by-product used as
a biofuel) production currently supplies Rio
Vermelhos energy requirements. As capacity
increases, any excess bagasse will be used to
produce additional electricity, which will be
sold to Brazils national grid.
2,000 km
RN
PB
PE
AL
SE
Amazon rainforest
MT
2,500 km
GO
MG
MS
Sugarcane
PR SP
Sources: NIPE-Unicamp,
IBGE and CTC
A
n agronomic practice that provides precise timed and spaced supplies of fertilisers and other chemicals during
crop irrigation. It reduces disturbance of the land being farmed and associated labour requirements.
8 | Environment
8.2 | Water
All our business divisions have a special dependency on water. It is a critical input for our metals & minerals and agricultural businesses. In addition, we shipmillions of barrels of petroleum
products and crude oil over maritime waters, along coastlines and through inland waterways.
This means that two of our key sustainable development challenges are protecting maritime and
inland waters and maintaining access to high-quality water.
Water reuse or recycling, the efficient use of water, responsible waste water disposal and ensuring
the integrity of any equipment that may pose a hazard to water quality are high-priority activities.
This includes interaction with our local communities, to understand their collective interests
regarding their water needs and the preservation of sources of fresh water.
8.2.1 | Marketing
Here, our concerns centre on maintaining the quality of the bodies of water that we use during transportation. This is of particular relevance for our oil business, as our own fleet and our
chartered vessels transport our products across oceans, around coastlines and along waterways.
It is vital that we take precautions to minimise any spillage that might occur in the event of an
accident during transportation. In 2010, all vessels in the oil divisions time charter fleet were
double-hulled, as were all of the vessels we owned. Together, these represented 40% of our oil
product shipping capacity.
Voyage-chartered vessels are always vetted for safety assurance as per our chartering standards
before each use. All hydrocarbon-carrying time charters participate in our assurance programme
for structural integrity.
Our next most important priority is to ensure that our service providers take a sustainable
approach to managing our vessels and product storage facilities.
We require all tank-cleaning activities to comply with the OCIMF/ICS International Safety Guide
for Oil Tankers and Terminals (ISGOTT). The waste water from washing tanks must be handled
and dealt with in strict compliance with MARPOL8 regulations. Before tank cleaning is undertaken,
providers must carefully consider factors such as the cargo history, the vessels construction and
equipment, the availability of resources and the experience of the cleaning supervisor. This is an
important quality procedure to avoid cargo contamination.
All those managing our time charter and owned vessels must have a class-approved ballast water
and sediments management plan and follow it strictly. They must maintain records of all ballast
water exchanges in accordance with the current Ballast Water Management (BWM) convention
and comply with any country-specific requirements.
8.2.2 | Industrial
Water management for our mining and agricultural activities involves the efficient management
of fresh and process water (ie water that has been used by our operations). This includes water
reconditioning and reuse, and the treatment of waste water before discharge into public sewers
or surface water. Treatment can include the removal of heavy metals, suspended solids and oils
and greases, as well as pH neutralisation.
These factors pose a particular challenge for our metals & minerals activities, as their processes
are water-intensive and also involve managing complex water balances.
As with most of our environmental issues, we take a local or regional approach to water management, due to the wide variation in our operations water requirements and the diversity of their
MARPOL is the International Convention for the Prevention of Pollution from Ships 1973.
SIRE protocol
8 | Environment
geographical environments. Each site tailors its water management plan to local circumstances,
which in turn helps us to build better relationships with other water users and maintain our licence
to operate.
The range of initiatives carried out by our mining operations is represented by the following
examples.
SC is primarily responsible for inspecting vessels in national ports to ensure they comply with international
P
safety regulations, and for ensuring that seafarers operate in a safe working environment.
10
The TMSA programme helps ship operators to improve and measure their management systems, encouraging
them to assess their safety management systems against listed performance indicators.
9
8 | Environment
11
HSSE drill
PI Std 650: Welded Steel Tanks for Oil Storage is a standard from the American Petroleum Institute that
A
establishes minimum requirements for material, design, fabrication, erection and testing of storage tanks for
petroleum, petroleum products and other liquid products.
8 | Environment
Murrins full-scale commercial heap leach operation was commissioned in 2007 and fully integrated with existing facilities. This allowed
production of both nickel and cobalt metal directly from heap leach facilities, and has led to
a number of significant operational improvements.
8 | Environment
In 2010, the total volume of water withdrawn by our industrial activities for metals & minerals and
coal products was 300millionm3.
Figure 16: Metals & minerals and coal water withdrawal, by source
160 000
Thousandm3
120 000
80 000
2008
2009
2010
40 000
Surface
water
Ground Rainwater
water
collected
Public
water
supply
Waste
water from
3rd parties
Surface water
Ground water
Rainwater collected
Public water supply
Waste water from 3rd parties
145 801
97 784
3 930
32 143
2 101
147 382
100 410
4 321
36 556
4 198
147 858
106 200
6 252
35 896
3 895
Furthermore, we recycled 309 million m3 of water in our production processes (compared with
294millionm3 in 2009 and 301millionm3 in 2008). This means that on average we have reused our
water 2.1times.
In total we discharged 147millionm3 of treated waste water to inland water courses.
Figure 17: Total load within waste water from metals & minerals and coal
16 000
Tons
12 000
8 000
4 000
0
2008
2009
2010
2008
12 874
1 436
2009
15 623
3 496
2010
9 510
3 866
NB: Data from one mining asset is not included as the waste water management and treatment were in the process
of being technically upgraded during 2010
Our agricultural divisions farming activities used 45millionm3 of water for irrigation in 2010, while
our biodiesel facilities, crushing plants and logistics facilities consumed 942,000m3.
8 | Environment
Kazzinc, Kazakhstan
Water recycling at Zyryanovsk and Ridder concentrator plants
One of Kazzincs objectives is to improve
the process water recycling system and so
minimise intake from natural water sources
and reduce effluent discharge. Kazzincs water
consumption is mostly used by ore processing:
the concentrators at Zyryanovsk and Ridder
each use around 80,000m3 per day.
Installing water recycling systems at these concentrator plants led to a significant improvement in the quality of local river water, which
had previously been affected by discharge
from their tailing dams. The recycling systems
now include ponds for water sedimentation
and the settling of solids, plus biological water
purification to remove metals and other components, after which the treated water is returned
to the concentrators.
Kazzinc has water quality monitoring stations
at the rivers and observation wells around
their concentrators, tailing dams and biologic
al ponds to monitor, analyse and forecast any
alterations in the recycling systems water
balance. These stations measured a significant
reduction in the impact of effluents, with river
water now complying with the highest fishery
water standards.
The Ridder concentrator water recycling system started work to modify the tailing dam
Sedimentation pond
8.3 | Energy
Glencores energy consumption comprises a mix of direct (including fuel oil, gasoil and natural
gas) and indirect (mostly electricity bought from external suppliers) energy use. Our different
business segments and marketing activities have a wide variance in energy requirements, due to
the difference in the work they undertake.
Petajoules
160
120
80
40
0
2008
2009
2010
Indirect energy
Direct energy
2008
38
97
2009
37
88
2010
40
103
8 | Environment
41%
51%
Agricultural products
Marketing activities
Metals & minerals
Energy products
8.3.1 | Marketing
Our marketing activities energy consumption mainly takes the form of the maritime fuel oils used
to drive approximately 300 time charter and 40 owned vessels, which transport our oil, grain and
coal.12
We do not report energy consumption for other transportation activities, such as maritime transportation by voyage charter, inland waterway shipping and truck or rail transportation. This is
because we primarily use third-party services, which do not fall within our reporting boundaries.
We are currently observing the increased transparency in energy efficiency reporting for vessels
closely. As these initiatives progress, we will evaluate the extent to which they can be used to assist
in reducing the overall energy consumption of our transportation activities.
Terajoules
60 000
45 000
30 000
15 000
0
2008
2009
2010
Bunker fuel
2008
46 288
2009
50 097
2010
59 122
Our bunker fuel consumption has increased in line with our business expansion.
8.3.2 | Industrial
Our engineers main day-to-day objectives are to make our operations as energy-efficient as
possible and to maintain security of supply. This is especially true for our energy-intensive metallurgical operations.
Overall, 9% of Glencores direct energy consumption comes from renewable sources, mainly
from our hydropower station in Kazakhstan (see also section 8.5: Environment: greenhouse gas
emissions). When contributions from maritime shipping are excluded from consideration, the
percentage of energy from renewable sources rises to 21%; this in principle represents the energy consumption of our land-based operations.
12
M
etals & minerals are not included as this division uses only third-party voyage charter vessels, which are
excluded from this scope.
8 | Environment
Figure 21: Direct energy consumption by source, including Scope 1 maritime shipping (2010)
9%
4%
6%
10%
71%
Coal
Natural gas
Oil products
Reductants and others
Renewables (hydropower, etc)
Figure 22: Direct energy consumption by source, excluding maritime shipping (2010)
21%
8%
16%
Coal
Natural gas
Oil products
Reductants and others
Renewables (hydropower, etc)
24%
31%
47%
53%
Non-renewable
Renewable
13
Worldwide Trends in Energy Use and Efficiency, International Energy Agency, 2008.
8 | Environment
he Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 (the London
T
Convention) is one of the first global conventions to protect the marine environment from human activities,
promoting the control of all sources of marine pollution.
8 | Environment
Tons
80 000
60 000
40 000
20 000
0
2008
2009
2010
SO2
NOX
2008
54 827
86 750
2009
59 396
93 892
2010
70 261
110 793
8.4.2 | Industrial
Glencore local operations managers and environmental specialists regularly assess our air emission
performance. They co-operate closely with relevant authorities and local communities to find the best
ways to lower their impact on the surrounding communities and to stay within permissible emission
limits.
The air emissions most relevant to our industrial activities are SO2, dust or particulate matter (PM)
and to a lesser extent NOX. At our metallurgical smelters SO2 and PM are typically emitted as either
stack or fugitive emissions. Stack or point emissions emanate regularly from a fixed source (such as a
flue, chimney or stack) and are therefore generally measurable. Fugitive emissions emanate irregularly
from many diffuse sources, such as gas leakage from equipment, and, in the case of PM emissions, the
movements of trucks and machinery in dusty areas.
Stack emissions are predominantly controlled by capturing exhaust gas as it is emitted and undertaking mechanical filtering and/or exhaust gas treatment.
For our mining activities, fugitive PM emissions are considered most relevant. These are caused by the
blasting, excavating, moving and crushing of ore rock, or the removal of topsoil, overburden or waste
rock. Stationary filter equipment cannot eliminate them due to their fugitive nature. Instead, each
operation undertakes a range of different initiatives to minimise emissions, including regular spraying
of mine access roads, stockpiles and mining areas (mostly with recycled water).
The combustion engines of our land-based mobile machinery (excavators, off-road trucks, generators,
etc) emit SO2, NOX and PM.
The local conditions for each operation determine the best way to reduce its air emissions and
manage mitigation programmes. In some cases this might involve significant investments in new installations or technical upgrades of existing plant to include integrated environmental protection.
In 2010 our industrial activities reported 202,545tons of SO2 emissions.15 Our smelters showed a
sulphur capture rate of 80%.16
200 000
Tons
150 000
100 000
50 000
0
2008
15
16
2009
2010
2008
528
174 485
2009
230
227 238
2010
435
202 110
he emissions from land-based mobile machinery were calculated using the emission factors presented in the
T
EMEP/EEA air pollutant emission inventory guidebook 2009.
T
his figure does not include Murrin, as the complexity of sulphur balance does not currently allow reliable data
calculation.
8 | Environment
The 80% capture rate is mainly due to ongoing major work to install sulphur dioxide capture
facilities at our Zambian operation, where SO2 had been emitted freely into the atmosphere for
decades before our arrival. This project will be completed in 2015, in line with the plan agreed
with the Zambian government. The challenge the government has set has been to redevelop
our facilities to improve their environmental performance while still securing and expanding the
significant employment Mopani provides. We have invested heavily to meet this challenge.
In addition, the PM emissions from our stationary industrial activities totalled 2,925 tons. PM
emissions from our mobile machinery totalled 1,020 tons.
The figure for our stationary industrial activities represents the PM emissions from point sources.
We do not monitor fugitive emissions continuously. Instead, we measure PM10 emissions at various hot spots, to ensure that the preventive measures we have in place to suppress dust are
effective, and to allow continuous improvement.
Tons
3 000
2 000
1 000
0
2008
2009
2010
2008
845
2 540
2009
316
2 144
2010
1 020
2 925
The NOX emissions from our land-based mobile machinery amounted to 8,341 tons in 2010.
Tons
6 000
4 000
2 000
0
2008
2009
2010
NOX
2008
6 790
2009
2 656
2010
8 341
8 | Environment
8 | Environment
Scope 2:
Indirect emissions
Scope 3:
Indirect emissions
With the introduction of GCP we started to undertake GHG emission accounting at a corporate level.
Figure 29: Scope 1 GHG emissions from industrial activities and maritime shipping (2010)
0.3%
43%
57%
10%
47%
Industrial activities
Shipping
Oil shipping
Grain shipping
Coal shipping
NB: There are no scope 1 emissions for shipping in metals & minerals
8.5.1 | Marketing
A study by the IMO estimates GHG emissions from international shipping to amount to 870million
tons. This represents around 2.7% of the global emissions of CO2 in 2007.17 These emissions are
projected to increase considerably in the years to come.
The majority of GHG emissions from international shipping is composed of CO2, with other GHG
emissions being of less importance.
Glencore requires extensive shipping activities to deliver our products to customers. As we
mostly use third-party contractors for land and inland waterway transportation, the GHG generated from these activities are scope 3 emissions, which we do not account for. This also applies to
the vast majority of our maritime shipping of metals & minerals and coal products.
17
econd IMO GHG Study 2009, published in 2009. Considering other studies, the emissions may vary significantly,
S
from about 400 to 900million tons of CO2, accounting for 2% to 4% of global CO2 emissions.
8 | Environment
Our oil and grain products are primarily transported by time-chartered fleets or vessels owned
or partly owned via our shipping division.
To calculate the GHG emissions from our shipping operations we used the annual bunker fuel
consumption figures for our owned and time charter vessels and the emission factors published
by the IMO.19 Based on this, our emissions were 4.3million tons of CO2e in 2010 (compared with
3.7million tons in 2009 and 3.4million tons in 2008). This represents 57% of our overall GHG emissions.
We undertook a second analysis of our oil divisions shipping activities in 2010 using a different
calculation methodology,20 which produced deviations in the range of 6%. Applying this method
would mean that our annual scope 1 GHG emissions from maritime shipping equalled 4 milliontons.
8.5.2 | Industrial
Scope 1 GHG emissions from Glencores industrial activities equalled 3.3 million tons in 2010,
2.8milliontons in 2009 and 3.9milliontons in 2008.
3 000
2 000
1 000
0
2008
2009
2010
Agricultural products
Energy products
Metals & minerals
2008
2009
2010
(thousand
tons)
(thousand
tons)
(thousand
tons)
188
818
2 859
110
225
2 426
286
823
2 160
Our main source of GHG emissions is the burning of fossil fuels, whether by stationary installations and mobile hauling equipment in our open-pit operations, or by the agricultural machinery
used in our farming operations.
According to the Fourth Assessment Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC),
2007.
19
Protocol MEPC 60/WP.6 of the Marine Environment Protection Committee, IMO, published on 22March2010.
CH4 and N2O emissions are based on the Second IMO GHG Study 2009, published in 2009.
20
T he emissions were calculated using the Energy Efficiency Operational Indicator (EEOI), which refers to the
mass of CO2 per ton of cargo carried per nautical mile (ton mile).
18
8 | Environment
We also estimated21 that our open-pit coal mines emitted 15,251tons of coal seam methane in 2010,
resulting in 381,280 tons of CO2e (compared with 426,071tons in 2009 and 434,128tons in 2008).
Our rice cultivation released 391tons22 of CH4 in 2010, corresponding to 9,774tons of CO2e.
8.5.3 | Renewable energy
A considerable proportion of the energy we use is generated from renewable sources (see section 8.3: Environment: energy).
Most of the renewable energy we use is generated by our Bukhtarma hydroelectric plant in
Kazakhstan, which is located on the Irtysh river, 5 km upstream from Serebryansk. Bukhtarma
has nine 75 MW turbines with a total generating capacity of 675 MW. It is operated by Kazzinc
under a long-term concession, and integrated into Kazakhstans national electricity grid as a
peak producer to regulate supply. Bukhtarma generates 2.4 billion kW of electricity per year,
covering approximately 80% of Kazzincs electricity needs.
The amount of energy produced every year would release the equivalent of 1.1million tons CO2e
if we were using a conventional fossil fuel-based power plant23.
In a smaller example, we burn approximately 20,000tons of sunflower hulls in our agricultural
plant in Argentina every year. The heat generated is converted to steam, which is used in our
production processes in a form of thermal recycling. If this energy were produced by burning
coal, it would emit 25,000tons of CO2 per year.
C alculated according to 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 Energy.
C alculated according to 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 4 Agriculture,
Forestry and Other Land Use.
23
C alculated on the basis of the country-specific emission factor for Kazakhstan for the generation of electricity and
heat as presented in CO2 Emissions from Fuel Combustion: Highlights, International Energy Agency, 2010 edition.
21
22
8 | Environment
As stated in section 8.3.2: Environment: Energy: industrial, our total indirect (scope 2) energy
consumption for 2010 was 40 petajoules, of which 21 petajoules originated from non-renewable
sources. Bringing this into the context of CO2 emissions, we calculate that this equated to 2.8million tons24 of CO2. This compares with emissions of 2.8milliontons in 2009 and 2.9milliontons
in 2008.
Approximately 19 petajoules of our indirect energy was generated from renewable sources, such
as hydro and geothermal power. We estimate that this would represent 1.7milliontons25 of CO2
emissions if it had been generated from non-renewable sources.
Thousand tons
16 000
12 000
8 000
4 000
Indirect
Direct
2008
2009
2010
2008
2009
2010
(thousand
tons)
(thousand
tons)
(thousand
tons)
2 892
7 261
2 790
6 435
2 779
7 607
73%
27%
42%
31%
Indirect
Direct
Direct maritime shipping
Direct industrial activities
8.6 | Waste
All waste generated by Glencore is stored and disposed of safely if it cannot be reprocessed,
regardless of whether it is classified as non-hazardous or hazardous.
The majority of our waste, in terms of both volume and tonnage, consists of various types of
mineral, which is typical for mining and metallurgical operations. For this reason, local waste
management is an integral part of each of our mining operations, and varies depending on the
local conditions and the internal and external disposal facilities available.
Mineral waste from mining can be broadly divided into overburden (the rock, soil and ecosystem
that lies above a coal seam or ore body), waste rock and tailings (waste from ore processing), all
of which usually remain at the site that generated them.
Some, such as topsoil (which is a subsection of overburden from open-pit mining), are valuable
resources, and are carefully stored and protected from erosion to be used in later rehabilitation
projects. In addition, as much waste rock as possible is reused to backfill mining areas. Where this
is not possible, waste rock is disposed of in special areas and under special conditions to prevent
adverse environmental impact such as erosion or acid rock drainage.
C alculation is based on the specific energy mixes for the national electricity supply of the countries discussed,
according to CO2 Emissions from Fuel Combustion: Highlights, International Energy Agency, 2010 edition.
25
C alculation is based on the specific energy mixes for the natio nal electricity supply of the countries discussed,
according to CO2 Emissions from Fuel Combustion: Highlights, International Energy Agency, 2010 edition.
24
8 | Environment
Figure 33: Proportion of waste rock used for landfill and backfill (2010)
60%
40%
Backfilled
Landfilled
Our copper and zinc mining operations typically produce tailings (ore residues), which are
disposed of in tailings dams. These are specially designed ponds filled with a suspension
consisting of tailings and water, which comes via pipeline from our mine concentrator plants.
Through sedimentation of the suspended solids the tailings gradually fill the dam, where they are
disposed of. Excess water is either recycled back into the plant or discharged into surface water
in a way that meets local regulatory requirements. Once the capacity of a tailing dam is reached,
the entire structure is rehabilitated, generally by drying out the contents and covering the structure
with topsoil.
Maintaining the integrity of a tailing dam is one of the most important tasks at each mining
operation, as a failure can result in an unintended release of tailings and negative effects on
the surrounding environment and communities. For this reason our tailing dams are regularly
inspected by our own staff and independent surveyors.
Figure 34: Total amount of waste rock, tailings and slags & sludges
Million tons
400
300
200
100
0
2008
2009
2010
2008
2009
2010
(million
tons)
(million
tons)
(million
tons)
0.9
19
217
0.6
21
93
0.9
24
311
Million tons
400
300
200
100
0
2008
2009
2010
Non-hazardous
Hazardous
2008
2009
2010
(million
tons)
(million
tons)
(million
tons)
21
215
22
93
22
314
Our next most common waste comes from our metallurgical operations. Although we produce a
smaller volume and tonnage of this type of waste, some of it is classified as hazardous. This calls
for additional measures to ensure secure disposal, either through a careful choice of disposal
location or by special treatment such as inertisation.
8 | Environment
Some metallurgical waste can be treated in specialised recovery plants. Our new smelter complex in Kazakhstan (see section 8.4: Environment: air emissions) is a good example of what can
be achieved if opportunities for waste recovery are systematically explored and integrated into
the production process.
In 2010 we were able to recycle 11.3% of the waste from our metallurgical plants.
The large volumes and tonnages of waste from our mining and metallurgical operations are disposed of in installations that belong to our premises or mining concessions.
For certain waste streams, such as domestic or workshop waste (eg waste oils), disposal is outsourced to local waste disposal companies. This also applies to waste from our owned fleet and
oil storage activities. While most of these wastes are sent for recycling (eg waste oils) or landfilled
(if recycling is not possible), some are incinerated.
Mutanda, DRC
Secure tailings storage and disposal
Commitment
to compliance
Our GCP commitment states: We comply with or exceed the laws, regulations and best practice guidelines applicable to our operations and products
in the jurisdictions in which we operate.
Along the entire supply chain, our employees and contractors are required
to act in strict adherence to these principles to ensure the satisfaction of our
business partners and the quality and safety attributes of our products.
We will not assist any third party in violating the law in any country, nor
pay or receive bribes, nor participate in any other criminal, fraudulent or
corrupt practice. We seek to prevent such misconduct through strong leadership, internal policies and procedures.
Glencores employees and contractors are obliged to comply with appli
cable law and applicable corporate policies, and it is the obligation of
our managers and supervisors to ensure employees and contractors act
accordingly. Additionally, they are obliged to prevent, detect and report
any violations of the law or our corporate policies.
Our employees are encouraged to avoid situations that could cause conflicts of interest between the company and the employee.
9 | Compliance
9|
Compliance
Our commitment to compliance is based on the relevant Glencore Corpoarte Practice (GCP)
principle. This covers compliance with the laws, regulations and good practice guidelines
applicable to our operations and products in the jurisdictions in which we operate. It also
covers our overall integrity of business conduct.
Our aim is not just to establish a set of rules for compliance with laws and regulations, but to
develop and maintain a culture of compliance and ethical behaviour within the Glencore group.
9 | Compliance
Marketing activities
Business Ethics Committee (BEC)
BEC sub-committee
External
regulatory
requirements
roup
G
compliance
department
Compliance
co-ordinators
ompliance
C
manuals
Policies
Training
rading
T
Traffic
Logistics
Administration
Internal audit
Consultation
Industrial activities
External regulations and the results of our internal audits feed into the work of both our group compliance
managers and the local compliance managers at each of our industrial operations. Our group compliance and
business ethics committees interact together and with our trading, traffic, logistics and administration functions
to create our compliance policies and manuals. They also feed training and consultation results back into our
compliance policies in a process of continual improvement.
Commitment to
our customers
Our GCP commitment states: We aim to maintain high standards of service wherever we operate, honour all business obligations undertaken and
develop long-term relationships with commercial counterparties based on
trust and integrity.
We carry out management policies and programmes to ensure our products meet regulatory requirements and provide documentation to customers to allow safe transport, handling and use.
10 | Our customers
10|
Our customers
We are proud of our strong customer base and aim to meet their expectations at every step of
our service and product delivery. Consequently the Glencore Corporate Practice (GCP) commitment to our customers aims to maintain high standards of service wherever we operate, honour
all business obligations and develop long-term relationships based on trust and integrity.
To ensure adherence to our customer commitment we have implemented management policies
and programmes assuring the quality of our products throughout the supply chain. This is supported by an ongoing dialogue with our suppliers and customers.
Our policies and programmes are also designed to ensure that our products comply with regulatory
requirements and that we provide supporting information and documentation that allows their
safe transport, handling and use.
Glencore operates within complex supply chains that are distributed around the world. We have
recently observed an increasing demand for transparency of supply chains in global trade.
Regulators have already taken action on certain aspects of transparency. Examples include the
commodities referred to as conflict minerals, which originate in the DRC and neighbouring
countries, and the supply chain requirements stipulated in the EUs Renewable Energy Directive
(RED).
In other cases consumer alliances establish criteria, either in support of existing regulatory initiatives or to manage matters before any action has been taken by regulators. We work closely with
our customers on such matters and give their supply chain integrity concerns and requirements
the same consideration as quality or timeliness factors.
We regard supply chain developments in sustainability as a joint effort between producers,
suppliers, marketers and consumers.
10 | Our customers
Figure 37: Quality control and product safety within the Glencore group
GLENCORE
Trading
Traffic
Chartering
Customer
requirements
Supplier
Allocation
Logistics
Customer
satisfaction
Specification
Delivery in time
Security of supply
Compliance
Quality control
Product safety
Centred on our product value chain, this figure shows how our customers requirements feed into our trading
function and sourcing structure. Our traffic function deals with the allocation of products, whether produced
or sourced by Glencore, to fit customer requirements. Chartering deals with the logistics of delivering product
orders. This entire process must be efficient and effective to deliver customer satisfaction; where required,
it is monitored by quality control at control points that include the supply point and the load/discharge port.
Throughout the chain, our product safety function manages the regulatory compliance of our products.
10 | Our customers
Some specific products may also require supplementary quality assurance measures. Examples
from the agricultural sector are GMP+ standards for EU food and feed product trading, and the
International Sustainability and Carbon Certification (ISCC) requirements for renewable fuels.
GMP+
Good manufacturing practice (GMP) for our EU grain feed products
As a major feed ingredient supplier to the
European compound feed industry, Glencore
has signed up to a quality assurance programme developed specifically for the agricultural industry. Based on a Dutch initiative,
Feed for Food, the programme treats animal
feed safety as a component of overall food
safety, with the assumption that animal feed
and food for human consumption cannot be
viewed separately.
The programme includes proactive quality assurance based on Hazard Analysis and Critical
Control Points (HACCPS) and complements
the US Food and Drug Administrations exist-
EU RED compliance
Ensuring sustainable biomass production
As one of the relevant renewable energy
sources, biomass is a crucial component of a
climate-friendly energy supply. It is an essential
alternative to fossil fuels but public attention
has focused on the potential negative impact
of the growing use of biomass fuel.
The European Renewable Energy Directive
(2009/28/EC or EU RED) sets requirements to
limit any negative impact. It requires that biomass for biofuel or bioenergy must be sustainably produced, with proof that biofuels emit
significantly less greenhouse gas than fossil
fuels. The current target for biodiesel, for example, is 35% less.
The European Commission is implementing
RED compliance by requiring external verification of whether the complex RED requirements
are met. Our agricultural division decided to
do this by adopting the ISCC scheme, the first
nationally approved international certification
system for biomass sustainability and greenhouse gas savings.
Glencores ISCC-certificated
operations, as of summer
2011
Glencore Polska
Glencore Grain UK Limited
Glencore Crales France
SAS
Glencore Grain Hungary
SERNA Ukraine
Glencore Grain BV
B
IOPETROL Marketing BV
Glencore Bulgaria
Glencore Romania
BIOPETROL Rostock
GmbH
B
IOPETROL Rotterdam BV
Dutch Biodiesel BV
Lubmin Oils GmbH
10 | Our customers
Glossary
11 | Glossary
11|
Glossary
brownfield site
A potential development site in an urban
area that has had previous development.
See greenfield site.
CLP
The Classification, Labelling and Packaging
Regulation is a European Union regulation
that aligns the EU system of classification, labelling and packaging chemical
substances and mixtures to the Globally
Harmonised System (see GHS).
CO2e
CO2e is the universal unit of measurement
for the global warming potential (GWP)
of greenhouse gas (GHG), where one unit
of CO2e is the GWP for one unit of carbon
dioxide. This unit allows us to discuss the
equivalence of different GHGs in terms of
their GWP. The GWPs used in this report
are 1 for CO2, 25 for CH4 (methane) and
298 for N2O (nitrous oxide).
downstream/upstream
Terms referring to relative positions in a
supply chain, meaning respectively: further
down the chain towards supplying a product to customers, or further up the chain
towards production of products.
EITI
The Extractive Industries Transparency
Initiative aims to strengthen governance by
improving transparency and accountability
in the extractives sector (oil, gas and mining). EITI promotes revenue transparency
by monitoring and reconciling company
payments and government revenues at the
country level.
EU RED
The European Commissions Renewable
Energy Directive outlines the European
Unions renewable strategy and targets
including regulation of sustainability
criteria for biofuels and their precursors
(eg soy and rape).
European Chemicals Agency (ECHA)
The ECHA is an agency of the European
Union that works to improve the general
quality of life by ensuring the safe use of
chemicals and fostering innovation.
ferroalloys
Various iron alloys that have a high proportion of one or more other element, for
example manganese, chrome or silicon.
FFR
A fatality frequency rate is the total number of fatalities recorded permillion hours
worked.
fugitive emissions
Emissions that emanate irregularly from
many diffuse sources, such as gas leakages
from equipment, and, in the case of Particulate Matter emissions, the movements
of trucks and machinery in dusty areas.
GCP
Glencore Corporate Practice, our corporate responsibility framework and management programme.
GHS
The United Nations Globally Harmonised
System of Classification and Labelling of
Chemicals is an international agreement on
chemical classification and communication.
greenfield site
A previously undeveloped site for commercial development or exploitation. See
brownfield site.
Greenhouse Gas Protocol
Standards and guidance for corporate
accounting and reporting on GHG emissions, helping governments and business
leaders to understand, quantify, and
manage GHG emissions (eg CO2).
GRI
The Global Reporting Initiative is a
network-based organisation that develops
and disseminates voluntary sustainability
reporting guidelines; there is a specific
supplement for the mining and metals
industry.
Hazard Analysis and Critical Control Point
(HACCP)
HACCP is a management system in which
food safety is addressed through the
analysis and control of biological, chemical
and physical hazards from raw material
production, procurement and handling, to
manufacturing, distribution and consumption of the finished product.
Heap leaching
An industrial mining process to extract
compounds from ore. The ore is usually
crushed and heaped on an impermeable
leach pad, then irrigated with a leach
solution to dissolve the metals. The solution containing the dissolved minerals is
treated to recover the target mineral and
then recycled.
IFC
The International Finance Corporation is
part of the World Bank Group that finances
and provides advice and guidelines for
private sector ventures and projects in
developing countries.
11 | Glossary
LTI
A lost time injury is a work-related injury
resulting in an employee or contractor
being unable to attend work on the next
calendar day after the day of the injury,
according to professional medical advice.
LTIFR
A lost time injury frequency rate is the total
number of injuries recorded permillion
hours worked.
marketing activities
Glencore term covering trading and sales
activities as well as the infrastructure and
resources used transporting products from
industrial sites to customers. See industrial activities.
MARPOL
The main international convention for
preventing ships from polluting the marine
environment, whether by operational or
accidental causes.
nitrogen oxides
A range of related chemical compounds,
collectively indicated as NOX, which can
react to form greenhouse gases. Examples
are nitric oxide and nitrogen oxide.
OCIMF
The Oil Companies International Marine
Forum is a voluntary association of oil
companies with an interest in the shipment
of crude oil and products.
OECD
The Organisation for Economic Co-operation and Development is an international
organisation that provides a forum in which
governments can work together to share
experiences and seek solutions to tackle
economic, social, environmental and governance challenges.
off-gas
Gas emitted as a result of industrial
processes or the combustion of fuels such
as natural gas, gasoline/petrol, diesel fuel,
fuel oil or coal.
oil majors
Vertically integrated oil and gas companies
involved in all stages of the oil industry:
exploration, production, refining, trading,
marketing, and sometimes transportation.
petajoule
A measure of energy equivalent to a thousand trillion joules, or 1,000,000,000,000,000
joules, usually used to express energy
consumption by cities or major industries.
PM
Particulate matter, or dust, usually from
industrial sources.
PM10
Particles of 10micrometres or less in size,
the particulate on which the US Environmental Protection Agencys air quality
standard is now measured.
process water
Water used in any industrial process to
produce a product or affect the process.
produced water
Water removed from crude oil during
processing.
protected area
A location that receives protection because of its natural, ecological or cultural
value.
REACH
REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is the
European Unions chemicals control act.
SIRE
The Ship Inspection Report Programme
is an OCIMF tanker risk assessment tool
intended to address safety concerns about
sub-standard shipping.
sulphur dioxide
A chemical compound (SO2) produced by
various industrial processes, including the
combustion of sulphur-containing fuels.
SO2 is a pollutant gas and a precursor
to particulates in the atmosphere. It can
be captured and converted to saleable
sulphuric acid.
tailings
The residue of an industrial process, especially residue that contains mineral ore.
thermal coal
Any coal suitable for use in steam boilers.
Also known as steam or energy coal.
OSHAS 18001
The internationally recognised assessment
specification for occupational Health &
Safety management systems.
GRI Index
12 | GRI Index
12|
GRI index
Profile Disclosures
Indicator Description of indicator
Reference
Level of
reporting Comment
1. Strategy
1.1
Statement from the most senior decision-maker of the organization.
1.2
Description of key impacts, risks, and opportunities.
Chapter 1
Section 1.1
Chapter 2
Section 2.1
Section 2.1
Section 2.1
Chapter 2
Section 2.2
Sections 2.4, 2.5, 2.6
2. Organizational Profile
2.1
Name of the organization.
2.2
Primary brands, products, and/or services.
2.3
Operational structure of the organization, including main divisions,
operating companies, subsidiaries, and joint ventures.
2.4
Location of organizations headquarters.
2.5
Number of countries where the organization operates, and names of
countries with either major operations or that are specifically relevant
to the sustainability issues covered in the report.
2.6
Nature of ownership and legal form.
2.7
Markets served (including geographic breakdown, sectors served, and
types of customers/beneficiaries).
2.8
Scale of the reporting organization.
2.9
Significant changes during the reporting period regarding size, structure,
or ownership.
2.10
Awards received in the reporting period.
Chapter 2
Section 2.2
Chapter 7
3. Report Parameters
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
Section 3.1
3.2
3.3
3.4
3.5
3.6
Section 3.1
Chapter 13
Chapter 4
Section 3.1
n/a
Section 3.1
Section 3.1
Section 3.2
3.7
3.8
3.9
3.10
3.11
3.12
3.13
n/a
n/a
Chapter 12
Chapter 3
Fully reported GRI Indicator Partially reported GRI Indicator Not reported GRI Indicator n/a Not applicable
It is intended to get
external assurance
for the 2011 report
12 | GRI Index
4.12
4.13
4.14
4.15
4.16
4.17
Reference
Level of
reporting Comment
Section 2.3
Section 2.3
Section 2.3
Section 2.3
Section 2.3
Section 2.3
Section 2.3
Chapter 5
Section 2.3;
Chapter 5
Section 2.3;
Chapter 5
Chapter 5
Chapters 5, 6, 10
Chapters 5, 6, 10
Chapter 4
Chapter 4, 5
Chapter 5;
Section 7.1
Chapter 5;
Section 7.1
Fully reported GRI Indicator Partially reported GRI Indicator Not reported GRI Indicator n/a Not applicable
12 | GRI Index
Performance Indicators
Indicator Description of indicator
Reference
Level of
reporting Comment
Economic indicators
DMA EC Management approach to Economic Aspects, goals and performance,
policy, additional contextual information.
Chapters 1, 7
EC1
Section 7.5
Chapter 1
Section 7.5
Section 7.5
Chapters 1, 8
Chapter 8
Chapter 8
Section 8.3
Section 8.3
Section 8.2.2
Section 8.2.2
Section 8.1
Section 8.1.1
Section 8.1.1
Section 8.1.1
Section 8.5
n/a
n/a
EC2
EC3
EC4
EC6
EC7
EC8
Environmental indicators
DMA EN Management approach to Environmental Aspects, goals and performance, policy, organizational responsibility, training and awareness,
monitoring and follow-up, additional contextual information.
EN1
Materials used by weight or volume.
EN2
Percentage of materials used that are recycled input materials.
EN3
Direct energy consumption by primary energy source.
EN4
Indirect energy consumption by primary source.
EN8
Total water withdrawal by source.
EN10 (A) Percentage and total volume of water recycled and reused.
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
EN12
Description of significant impacts of activities, products, and services
on biodiversity in protected areas and areas of high biodiversity value
outside protected areas.
MM1
Amount of land (owned or leased, and managed for production
activities or extractive use) disturbed or rehabilitated.
MM2
The number and percentage of total sites identified as requiring
biodiversity management plans according to stated criteria, and the
number (percentage) of those sites with plans in place.
EN16
Total direct and indirect greenhouse gas emissions by weight.
EN17
Other relevant indirect greenhouse gas emissions by weight.
EN19
Emissions of ozone-depleting substances by weight.
EN20
NOX, SOX, and other significant air emissions by type and weight.
EN21
Total water discharge by quality and destination.
EN22
Total weight of waste by type and disposal method.
MM3
Total amounts of overburden, rock, tailings, and sludges and their
associated risks.
EN23
Total number and volume of significant spills.
EN26
Initiatives to mitigate environmental impacts of products and services,
and extent of impact mitigation.
EN27
Percentage of products sold and their packaging materials that are
reclaimed by category.
EN28
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations.
Section 8.4
Section 8.2.2
Section 8.6
Section 8.6
Section 8.1.3
Section 8.5.3;
Chapter 10
n/a
Chapter 8
Fully reported GRI Indicator Partially reported GRI Indicator Not reported GRI Indicator n/a Not applicable
12 | GRI Index
Reference
Level of
reporting Comment
Chapters 1, 6;
Sections 6.1, 6.2
Section 6.2
Section 6.2.1
Section 6.3
Section 6.3
Section 6.3
Section 6.1.1
Section 6.1.2;
Chapter 7
Section 6.1.2
Section 6.2
Section 6.2
Chapter 5;
Sections 6.2, 6.3
Section 6.3
Section 6.3
Section 6.3
Section 6.3
Section 6.3
Section 6.3
Section 7.4
Fully reported GRI Indicator Partially reported GRI Indicator Not reported GRI Indicator n/a Not applicable
12 | GRI Index
Reference
Level of
reporting Comment
Chapter 1;
Section 5.2;
Chapter 7
Section 5.2;
Chapter 7
Section 7.1
Section 7.1
Section 7.4
Section 7.3
Chapter 7
Chapter 9
Chapter 9
Chapter 9
Section 7.6
Chapters 8, 9
Section 5.2;
Chapter 10
Section 10.2
n/a
Chapter 9
Fully reported GRI Indicator Partially reported GRI Indicator Not reported GRI Indicator n/a Not applicable
12 | GRI Index
Contact
13 | Contact
13|
Contact
We welcome feedback on this report or on any other aspect of sustainability at Glencore.
You can send general comments to global.gcp@glencore.com.
Otherwise you can contact:
Corporate sustainability
Michael Fahrbach
Tel: +31 (0) 10 40 44 406
michael.fahrbach@glencore.com
Corporate communications
Simon Buerk
Tel: +41 (0) 41 709 2679/2878
simon.buerk@glencore.com
13 | Contact
This report may include statements that are, or may be deemed to be, forward looking statements, beliefs or opinions, including statements with respect to the business, prospects, strategies and plans of Glencore. These forward looking statements
involve known and unknown risks and uncertainties, many of which are beyond Glencores control and all of which are based on
the Glencore board of directors current beliefs and expectations about future events. These forward looking statements may
be identified by the use of forward looking terminology, including the terms believes, estimates, plans, projects, anticipates, will, could, or should or in each case, their negative or other variations thereon or comparable terminology, or by
discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters
that are not historical facts. Forward looking statements may and often do differ materially from actual results. Glencore is not
under any obligation and Glencore and its affiliates expressly disclaim any intention or obligation to update or revise any forward
looking statements, whether as a result of new information, future events or otherwise.
No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of
risks and uncertainties facing Glencore. Such risks and uncertainties could cause actual results to vary materially from the future
results indicated, expressed or implied in such forward looking statements. Forward looking statements speak only as of the
date of this report.
GLENCORE INTERNATIONAL AG
Baarermattstrasse 3
P. O. Box 777
CH6341 Baar
Switzerland
110 | Sustainability Report 2010