2024 Annual Report
Energising today
Advancing tomorrow
Read more about our strategic priorities:
Page 15
Please refer to the end of this document for an
important notice concerning this report, including
forward-looking statements.
◊ Alternative performance measures
We include certain adjusted financial and other
measures in this report, which are alternative
performance measures (APMs) and are not defined
or specified under the requirements of
International Financial Reporting Standards; refer
to the Alternative performance measures section
beginning on page 254 for definitions, explanation
of use and reconciliations. APMs are identified by
the ◊ symbol.
Δ Selected ESG information
Selected environmental, social and governance
(ESG) metrics (Selected Information) in this report
have been subject to independent limited
assurance under the ISAE 3000 (Revised) Standard
by Deloitte LLP. The Selected Information is
identified by the Δ symbol. The scope and
limitations of Deloitte LLP’s assurance are set out in
Performance highlights
1
Our business at a glance
2
Chairman’s introduction
4
Chief Executive Officer’s review
5
Strategic overview
8
Stakeholder engagement (s.172)
21
TCFD
24
Sustainability
42
Ethics and compliance
51
Our people
55
Financial and operational review
59
Marketing activities
66
Industrial activities
73
Risk management
86
Strategic Report
Corporate Governance
Additional information
Independent sustainability
assurance report
140
Independent Auditor’s report to the
members of Glencore plc
143
Consolidated financial statements
159
Alternative performance measures
254
Other reconciliations
261
Production by quarter –
Q4 2023 to Q4 2024
263
Chairman’s governance statement
101
Directors and officers
102
Corporate governance report
105
Audit Committee report
111
ECC Committee report
114
HSEC Committee report
115
Nomination Committee report
116
Directors’ remuneration report
117
Directors’ report
136
Energising today, advancing
tomorrow: As the world moves
towards a low-carbon economy,
we are focused on supporting the
energy needs of today whilst
investing in our portfolio of
transition-enabling commodities.
Contents
their unqualified report beginning on page 140.
Please also see the 2024 Basis of Reporting
available on our website at glencore.com/
publications. As outlined in our 2024 Basis of
Reporting, acquisitions are only included where
they have been integrated before 1 July in the
reporting year. The Selected Information identified
in this report by the Δ symbol therefore excludes
Elk Valley Resources (EVR).
* Selected metrics excluding EVR
In addition to the selected ESG metrics identified
by the Δ symbol in this report, further information
identified by the * symbol excludes EVR.
References to emissions
‘Glencore’s emissions’, ‘industrial emissions’ or ‘our
emissions’ means CO2e emissions from our
industrial assets (including scope 1, 2, and 3) which
is defined by reference to our organisational
boundary of operational control. Our 2024-2026
Climate Action Transition Plan (2024-2026 CATP)
outlines further important information regarding
Explore our Group Reporting Glossary
and the rest of our annual reporting suite
at: glencore.com/publications
our climate-related strategy. We are currently
assessing how best to integrate EVR into our
climate strategy, recognising that the transition
away from steelmaking coal for steel production
will be slower than thermal coal. Our performance
against our targets in this report is therefore
presented excluding EVR.
To assist the reader’s understanding of climate-
related terms contained in this Annual Report as
well as the basis for our approach and the
definitions of certain non-financial metrics, refer to
the 2024-2026 CATP, the 2024 Group Reporting
Glossary and the 2024 Basis of Reporting, which
are available on our website at glencore.com/
publications.
Strategic Report
Corporate Governance
Additional Information
-5
0
5
10
15
20
2024
2023
2022
17.3
4.3
(1.6)
0
5
10
15
20
25
30
35
40
2024
2023
2022
28.8
32.2
38.1
0
2
4
6
8
10
12
2024
2023
2022
4.8
2.5
6.5
3.6
1.7
0.2
0
5
10
15
20
25
30
35
2024
2023
2022
34.1
17.1
14.4
Financial and operational review
Page 59
For further information, including on
restatements, see TCFD from page 24
and Sustainability from page 42
CO2e scope 1 and 2 market-based
industrial emissions*
(million tonnes)
27.1Δ
2023 restated: 28.2
Net (loss)/income attributable to
equity holders (US$ billion)
Shareholder returns
(US$ billion)
Total borrowings
(US$ billion)
Net debt◊
(US$ billion)
CO2e scope 3 industrial emissions*
(million tonnes)
389.3
2023 restated: 401.8
Targeted reductions in our
scope 1, 2 and 3 industrial emissions
against restated 2019 baseline1
15%
end-2026
25%
end-2030
50%
end-2035
Lost time injury frequency rate
per million hours worked
0.71Δ
2023 restated: 0.80
Total recordable injury frequency rate
per million hours worked
1.89Δ
2023 restated: 2.22
“Operationally, 2024 was a
strong year for Glencore. Our
industrial assets delivered full
year production numbers
within their original guidance
ranges, which together with
the addition of EVR’s
steelmaking coal volumes
from July 2024, resulted in a
greater than 4% growth in
copper equivalent volumes
year-over-year.”
Gary Nagle
Chief Executive Officer
(1.6)
2023: 4.3
1.9
2023: 10.1
38.1
2023: 32.2
Adjusted EBITDA◊
(US$ billion)
Performance highlights
14.4
2023: 17.1
Distributions
Buybacks
1. Excluding EVR, refer to the TCFD section of this
report and the 2024-2026 Climate Action Transition
Plan for further information.
0
3
6
9
12
2024
2023
2022
0.1
4.9
11.2
11.2
2023: 4.9
2024 Glencore Annual Report
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Additional Information
R
e
c
y
c
li
n
g
C
a
r
b
o
n
s
o
l
u
ti
o
n
s
Responsibly
sourcing the
commodities
that advance
everyday life
Investors,
banks, financial
analysts and
the media
NGOs and
civil society
groups
Unions
Communities
Governments
and regulators
Our people
Suppliers and
customers
Our business at a glance
Our Purpose
… influences our
strategic priorities
… which we deliver through
our business model
… whilst engaging with
our stakeholders and
creating value
Read more about our strategy
on pages 15 to 18
Read more about our business model
on page 10
Read more about our stakeholders in our
Section 172 Statement on pages 21 to 23
Responsible and ethical
business practices
Effective capital
management
Strong operational and
commercial performance
Industrial
business
Marketing
business
2024 Glencore Annual Report
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Additional Information
Our business at a glance continued
Industrial activities
Our industrial business spans
the metals and energy markets,
producing multiple commodities
from around 50 industrial assets
One of the world’s largest natural resource companies
Safety
We never compromise on safety.
We look out for one another and
stop work if it’s not safe
Entrepreneurialism
We encourage new ideas and
quickly adapt to change. We’re
always looking for new
opportunities to create value and
find better and safer ways of
working
Responsibility
We take responsibility for our
actions. We talk and listen to
others to understand what they
expect from us. We work to
improve our commercial, social
and environmental performance
Simplicity
We work efficiently and focus
on what’s important. We avoid
unnecessary complexity and look
for simple, pragmatic solutions
Integrity
We have the courage to do what’s
right, even when it’s hard. We do
what we say and treat each other
fairly and with respect
Openness
We’re honest and straightforward
when we communicate. We push
ourselves to improve by sharing
information and encouraging
dialogue and feedback
Headquarters
Marketing
Industrial
Our global operations
… delivered through two
business segments
… supported by our Values
For further information, see glencore.com/en/
who-we-are/purpose-and-values/
6
continents >30
countries
>150k
employees and contractors
Marketing activities
We source, market and
distribute over 60 commodities
that advance everyday life
Adjusted EBIT ◊ Marketing 2024
Metals and
minerals
73%
Energy and
steelmaking coal
27%
$3.2bn
2023: $3.5bn
Adjusted EBITDA ◊ Industrial 2024
Metals and
minerals
52%
Energy and
steelmaking coal
48%
$10.6bn
2023: $13.2bn
2024 Glencore Annual Report
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Additional Information
We are a little over halfway through the
three year term of our two independent
compliance monitors, mandated by our
resolutions with the US Department of
Justice. The process has been constructive
and our teams have been working diligently
to facilitate their work and implement their
recommendations across our organisation.
We look forward to continuing to work
with the monitors and their teams over
the coming year.
Reporting suite and outlook
Ahead of our upcoming Annual General
Meeting, we will be publishing further
reports within our annual reporting suite,
including our 2024 Review of Our Direct and
Indirect Advocacy, 2024 Ethics
and Compliance Report, 2024 Sustainability
Report and 2024 Modern Slavery Statement.
These publications reflect our commitment
to transparency and provide further
detailed information about our business
and performance. I welcome feedback from
our stakeholders on these important topics.
Finally, I would like to thank our diverse
workforce across the globe for their terrific
work throughout the year and continued
dedication. We look forward to continuing
our efforts to achieve progress in 2025.
Kalidas Madhavpeddi,
Chairman
Kalidas Madhavpeddi
Chairman
Chairman’s introduction
2024 marked a transformative
year for our business
I welcome our new colleagues at EVR to the
Glencore Group and appreciate the efforts
that have been made over the past several
months to integrate this important new
business into Glencore.
Following the close of the EVR transaction,
and after extensive consultation with our
shareholders, we announced that we would
be retaining our coal and carbon steel
materials business as the Board concluded it
currently provides the optimal pathway for
demonstrable and realisable value
creation for Glencore shareholders.
We are currently assessing how best to
integrate the EVR assets into our climate
transition strategy, recognising that the
transition away from steelmaking coal
will be slower than thermal coal.
Health and safety
The health and safety of our people is a key
priority for the company. The report from our
HSEC Committee (see page 115) sets out the
continued extensive work we are
undertaking to improve our performance.
I am pleased to report that 2024 reflected
the lowest total recordable injury frequency
rate and lost time injury frequency rate that
we have recorded in the past decade.
Unfortunately, despite our continued efforts,
we are saddened to report the loss of fourΔ
lives in work-related incidents during 2024.
We are committed to continuing our work
to improve our systems and processes across
our operations to promote safety and
to make every effort to achieve our ambition
of zero work-related fatalities.
Monitorships
We remain committed to acting in
accordance with our Values, our Code of
Conduct and the law and we have invested
extensively to improve and enhance our
Ethics and Compliance Programme.
Dear Shareholders
I am pleased to introduce to you this year’s
Annual Report. The Board remains focused
on generating long-term value for our
stakeholders in accordance with our
Purpose and Values.
2024 was marked by a number of important
developments, and I am pleased by the
progress that we have made on several
important fronts.
Climate Action Transition Plan
In 2024, we published our 2024-2026 Climate
Action Transition Plan, which emphasised
our responsible thermal coal decline strategy
and outlined our approach to achieving
our climate-related targets and objectives.
I am pleased to report that our plan was
approved at our 2024 Annual General
Meeting by over 90% of voting shareholders.
Business portfolio and developments
In July 2024, we announced that we had
received final regulatory approval and
successfully closed our acquisition of a 77%
interest in EVR from Teck Resources.
We believe the acquisition of EVR has
enhanced the quality of our portfolio,
broadening our ability to provide high-
quality steelmaking coal, an important
transition-enabling commodity
to customers around the world.
See further information at
glencore.com/publications
2024 Glencore Annual Report
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Additional Information
Chief Executive Officer’s review
Gary Nagle
Chief Executive Officer
Our strong operational performance, along
with another strong marketing contribution,
supported the generation of adjusted
EBITDA◊ of $14.4 billion and funds from
operations◊ of $10.5 billion during 2024, down
16%, but up 11%, respectively compared to
2023. The decline in adjusted EBITDA,
particularly within the industrial segment,
was mainly a function of lower average
energy coal prices year-over-year.
Aided by the healthy cash generation, along
with $1.8 billion of net working capital
inflows, we were able to fund $6.7 billion of
net capex, the $7 billion acquisition of EVR
and $1.9 billion of shareholder returns, all
while limiting the increase in year-end net
debt to $11.2 billion, vs $4.9 billion in 2023.
Furthermore, the 2024 figure includes
$1.1 billion of marketing lease liabilities and
$0.6 billion of IFRS consolidated EVR
liabilities, neither of which consume capital
headroom for consideration of ‘top-up’
shareholder returns noted below. And finally,
with a net debt to adjusted EBITDA ratio◊ of
0.78x, we continue to have significant
financial headroom and strength.
Committed to operating safely, responsibly and
ethically, and creating sustainable long-term
value for our stakeholders
We have clear priorities at
Glencore, centered around our
commitment to be a responsible
and ethical business operator,
which seeks to maintain and
strengthen positive relationships
with our various stakeholders.
Amongst such priorities, Safety remains a
core Value and an area of persistent focus
across the business. While progress
continues to be made, with strong and
visible leadership pursuing the safety culture
and operating discipline we’re looking for, I
am saddened to report that we recorded the
loss of fourΔ colleagues in work-related
incidents at our industrial assets in 2024.
Operationally, 2024 was a strong year for
Glencore. Our Industrial assets delivered full
year production numbers within their
original guidance ranges, which together
with the addition of EVR’s steelmaking coal
volumes from July 2024, resulted in a greater
than 4% growth in copper equivalent
volumes year-over-year.
“The strength of our
diversified business model
across our industrial and
marketing businesses,
which focus on the
commodities needed for
today and tomorrow, has
proved itself adept in a
range of market conditions,
giving us a solid foundation
to successfully navigate the
near-term macroeconomic
environment and be well
positioned for the future.”
2024 Glencore Annual Report
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Additional Information
Chief Executive Officer’s review continued
Year-end net debt◊
$11.2bn
Announced returns to shareholders
$2.2bn
Our financial statements report a net loss to
equity holders of $1.6 billion, after accounting
for $5.3 billion of significant items, including
impairments in our South African Coal
operations (lower forecast price
assumptions), in Koniambo, which
transitioned to care and maintenance and
across our custom zinc and copper
metallurgical operations, on account of
historically low treatment and refining
charges.
We are pleased to announce c.$2.2 billion
(c.$0.182 per share) of shareholder returns in
accordance with our capital allocation
framework. We are recommending a $0.10
per share (c.$1.2 billion) base cash
distribution, using our regular formulaic
calculation, together with a ‘top-up’ buyback
of $1.0 billion (c.$0.082 per share), in
anticipation of the cash component of the
sale of Viterra to Bunge, expected to close in
the coming months, subject to regulatory
approval. The top-up returns will be effected
by way of a buyback to be concluded before
the release of our H1 2025 results on
6 August, when we plan to announce further
shareholder returns, noting our regular
updating and reporting of illustrative free
cashflow generation at spot commodity
prices.
Shaping our portfolio
Last year’s acquisition of EVR and, our
subsequent decision to retain our coal and
carbon steel materials business given strong
shareholder support, were important
milestones in shaping our future business
mix. Having also sold various sub-scale,
non-core and/or shorter mine life assets over
the last few years, we are now at an
inflection point in our production growth
outlook, with a step change in our
steelmaking coal business, and a clear
pathway back to around one million tonnes
of copper by 2028, with significant growth
potential thereafter.
Our overall portfolio, offering scale and
diversification by commodity and
geography, is expected, through the cycle, to
provide the ability to value-accretively
optimise the balance between sensible
investment in growth, as appropriate, and
the return of excess cashflow to
shareholders. Based on current production
plans for our existing operations, we model a
c.4% compound annual growth rate to 2028
(in copper equivalents) from 2024.
2024 Glencore Annual Report
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Additional Information
Chief Executive Officer’s review continued
The Strategic Report was approved
by the Board and signed on its behalf
by Gary Nagle
Additionally, we are progressing and refining
our suite of organic copper growth options,
with preliminary estimates indicating the
potential for an additional one million tonnes
of annual copper production at a
competitive weighted average capital
intensity of c.$15-20,000/t of copper
equivalent capex. Subject to supportive
copper market and specific country and
other investment considerations, we intend
to progress the most advanced “shovel
worthy” projects towards feasibility
conclusion and a final investment decision.
While there is increased uncertainty around
the impacts of geopolitics in the shorter-
term, we remain of the view that, in certain
commodities, the scale and pace of global
mine project development will struggle
to meet demand for the materials needed
in the future. We are well placed to
participate in bridging this gap, through
the flexibility embedded in both our
marketing and industrial businesses
to respond to global needs.
Governance
The two independent compliance monitors
mandated by the US Department of Justice
have completed their second review period.
We continue to engage constructively with
the monitor teams and have made good
progress on implementing their first set of
recommendations.
Looking ahead
The strength of our diversified business
model across our industrial and marketing
businesses, which focus on the commodities
needed for today and tomorrow, has proved
itself adept in a range of market conditions,
giving us a solid foundation to successfully
navigate the near-term macroeconomic
environment and be well positioned for the
future. I would like to thank all our
employees for their efforts and significant
contribution during the year. As always, we
remain focused on operating safely,
responsibly and ethically, and creating
sustainable long-term value for our
stakeholders.
Gary Nagle,
Chief Executive Officer
2024 Glencore Annual Report
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Additional Information
As the world moves towards
a low-carbon economy, we
remain focused on supporting
the energy needs of today while
investing in the transition-
enabling commodities that are
key components of current
energy transition technologies.
The energy transition remains a gradual
process and represents far greater change
than a simple switch from one energy source
to another. Traditional energy sources including
coal, oil and gas remain important in
supporting sufficient, reliable and affordable
energy supply during the transition to increased
electrification and renewable energy forms.
Economic and population growth are two
key underlying factors driving energy
demand, with the global economy forecast by
the International Energy Agency (IEA) to grow
at an average of 2.7% per year to 2050 and
global population forecast to expand from
approximately 8 billion to 9.7 billion by 2050.
Efficiency gains on the demand side, beyond
those achieved in the past, will be required to
meet global decarbonisation targets.
Energy transition takes time and the
geopolitical events observed over the past few
years underscore the need for energy security
and affordability in protecting global stability
and development. Thermal coal and other
forms of fossil fuels are expected to continue
to play a part in supporting energy system
stability. An estimated 80% of energy demand
globally is met by fossil fuels. The IEA’s
scenarios indicate that demand for oil, natural
gas and thermal coal is set to peak by 2030,
with a fast decline from these peaks then
needed to fulfil net zero pledges.
Energising
today
Strategic Overview
2024 Glencore Annual Report
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Additional Information
An energy system based on
renewable energy technologies
will look fundamentally
different to the current
hydrocarbon-reliant model.
The metals and minerals we produce,
recycle, source and market are essential
components in the technologies and
infrastructure required to harness
renewable sources of energy and support
ever-growing levels of connectivity,
including in relation to accelerated growth
in artificial intelligence and data centres.
Wind turbines, solar power installations
and electric vehicles generally require
greater volumes of critical minerals than
their fossil fuel-based equivalents. The
impact of growth in demand for renewable
energy products and technologies is
expected to continue to expand over the
coming years as the journey towards a net
zero world progresses.
Traditional manufacturing and
construction sectors, which have
historically underpinned metals demand
growth, remain essential inputs for
growing and urbanising economies.
Combined with the energy transition,
which requires strong growth in solar
power installations, global metals demand
growth is expected to remain robust,
including for aluminium, copper and zinc,
while batteries underpin demand for cobalt
and nickel.
Advancing
tomorrow
2024 Glencore Annual Report
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Additional Information
Industrial business
Our industrial business spans
the metals and energy markets,
producing multiple commodities
from around 50 industrial assets
• Exploration, acquisition
and development
• Extraction and production
• Processing and refining
Our inputs and resources
… and deliver positive impact
for our key stakeholders
Our business model
Assets and natural resources
• Many long-life and high-quality
industrial assets
• Value over volume approach
• Embedded network and knowledge
in marketing activities
Our people and partners
• Established long-term relationships
with customers and suppliers
• >150,000 employees and
contractors globally
Financial discipline
• Capital deployed in disciplined
manner
• Marketing hedges a significant
majority of its price risk
• Marketing profitability driven by
volume-based economies of scale,
value-added services and arbitrage
opportunities
Unique market knowledge
• Finding value at many stages in the
commodity supply chain
… which drive our business model
Investors
$14.4bn
2024 Adjusted EBITDA◊
$3.7bn
Adjusted equity free cash flow (FFO less net
purchases of property, plant and
equipment and dividends to minorities)◊
Our people
14.7%*
Reduction in total recordable injury
frequency rate (2024 vs. 2023)
Payments to governments
$7.6bnΔ
Marketing business
We source, market and
distribute over 60 commodities
that advance everyday life
• Logistics and delivery
• Blending and optimisation
Financial and operational
review on page 59
Strategic priorities
on page 15
Stakeholder
engagement
on page 21
Risk management
on page 86
Corporate
Governance
on page 101
Underpinned by:
Investment case
on page 12
R
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Marketing
business
Industrial
business
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Our value chain
Exploration, acquisition
and development
Our focus on brownfield sites
and exploration close to
existing assets lowers our
risk profile and lets us
use existing infrastructure,
realise synergies and
control costs
Marketing
business
Industrial
business
As a global producer and marketer
of commodities, we are diversified
by geography, products and
activities. Integrating our
marketing and industrial business
sets us apart from most of our
competitors in creating an
enhanced entrepreneurial focus
on value generation
Extraction and
production
We mine and beneficiate
minerals across a range
of commodities, mining
techniques and countries,
for processing or refining at
our own facilities, or for sale
Processing and refining
Our expertise and
technological advancement
in processing and refining
mean we can optimise our
end products to suit a wider
customer base and provide
security of supply as well as
valuable market knowledge
Logistics and delivery
Our logistics assets and
capabilities allow us to
handle large volumes of
commodities, both to fulfil
our obligations and to take
advantage of demand and
supply imbalances. These
value-added services often
make us a preferred
counterparty for customers
without such capabilities
Blending and
optimisation
Our ability to blend and
optimise allows us to offer
a wide range of product
specifications, resulting
in an ability to meet
our customer-specific
requirements and provide
a high-quality service
Our commodities in
everyday products
The products we
produce and market
play an essential role
in modern life
Our recycling
business
We recycle key
commodities to
support the circular
economy
2024 Glencore Annual Report
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Additional Information
Investment case
Our business
Our strength
• Certain markets are underinvested relative to the forecast
commodity needs of the energy transition
• The transition-enabling commodities we supply
are needed for urbanisation, electrification of mobility,
data centres and decarbonisation of energy
• Higher commodity prices are generally needed
to encourage sufficient supply growth to help
meet forecast demand needs of the future
• Portfolio of energy and transition-enabling commodities
necessary to meet the needs of today and tomorrow
• Positioned to produce, recycle, source, market and
distribute the commodities that enable the transition
• Pipeline of growth options in transition metals,
with a majority of these being brownfield
• Flexible business model that adapts quickly to changing
conditions
• Experienced management team focused on maximising
value creation
• Positioned to be highly cash generative through the cycle
Our markets
Glencore is well placed to deliver growth with a clear and differentiated strategy
2024 Glencore Annual Report
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Additional Information
Key market driver 2
We are dependent upon the supply, demand and pricing for our commodities.
Our market drivers
Global energy transition
Future commodity supply
Efforts to limit global temperature
rises will impact fossil fuel demand
• Momentum to decarbonise the global
economy has accelerated in recent
years as nations increasingly
coordinate efforts aimed at reducing
greenhouse gas emissions, including
efforts to achieve net zero emissions
by the end of 2050
• The Paris Agreement aims to hold the
increase of global average
temperatures to well below 2°C above
pre-industrial levels and to pursue
efforts to limit temperature increase
to 1.5°C above pre-industrial levels
Impact on our industry
• This transition is likely to increase
the cost for fossil fuels, impose levies
for emissions, increase costs for
monitoring and reporting and
reduce demand
• Third parties, including potential
or actual investors, have introduced
policies and may introduce further
policies that are materially adverse
to Glencore
• Technological advances are making
renewable energy sources
competitive with fossil fuels, which will
increase renewable energy’s market
share over the longer run
Timing within the economic cycle is
very important when bringing new
mine supply to market
• The pro-cyclical nature of mining
investment means that new mines
are usually approved when commodity
prices are higher
• Given the long development time
frames required to bring new mine
supply online, the timing as to when
this supply becomes available in the
economic cycle is difficult to predict and
it could become available at low points
in the economic cycle, creating excess
supply in the market
Impact on our industry
• Over-investment creates over-supply
and, with it, potentially prolonged
periods of low commodity prices
• The experience from low economic
cycles often increases investor pressure
on companies to be more cautious
about investing in new supply
• Balancing a finite declining resource
base along with heightened country
and operational risks with the need
to grow to meet expected future
demand, is an inherent challenge
for companies in the resource sector
Key market driver 1
Link to strategy
Link to strategy
How we are responding
• We recognise the role we can play to
contribute to the global effort to achieve
the goals of the Paris Agreement by
taking measures to decarbonise our
own operational footprint
• We believe that our contribution should
take a holistic approach and have
considered our targets and long-term
ambition through the lens of our scope
1, scope 2 and scope 3 industrial
emissions
• In 2024, we published our 2024-2026
Climate Action Transition Plan (2024-
2026 CATP), re-iterating our responsible
thermal coal decline approach and
outlining our objectives to achieve
our climate strategy
How we are responding
• Our disciplined approach to capital
allocation seeks to reflect market supply
and demand dynamics
• Given the unpredictability of costs, risks
and timing of large-scale greenfield
projects, we prefer to add supply via
targeted brownfield expansions which
are generally more capital efficient and
lower-risk. We may also look to develop
a suitably de-risked greenfield project if
we believe that there is strong enough
demand and bringing on that supply
will not oversupply the market
• With the expectation that growth
drivers in the global economy will
become weighted towards
decarbonisation spending, in addition
to the commodities currently needed for
everyday life, our portfolio is well placed
to benefit from this transition
Responsible and
ethical business
practices
Effective capital
management
Strong operational
and commercial
performance
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Additional Information
Key market driver 3
Our market drivers continued
Demand for the commodities we produce
Decarbonisation demand,
population growth and
industrialisation of developing
economies has an impact
on commodity demand
• The industrialisation and urbanisation of
developing economies over the past
two decades has driven significant
growth in commodity demand
• China’s rapid growth over this period
now means that it accounts for up
to half of global demand for certain
key commodities
• Looking forward, the world is forecast
by the IEA to reach 9.7 billion people
by 2050, with much of this growth
in highly populous industrialising
economies
• All potential decarbonisation
pathways require significantly more
non-fossil fuel commodities
Impact on our industry
• Current levels of industrialisation
and urbanisation suggest, in isolation,
that demand growth rates for
commodities could be lower in
the future
• In the short to medium term, inflation,
economic instability related to rising
geopolitical tensions, new tariff
considerations and a drag on growth
in China could constrain or reverse
commodity demand growth
Emerging drivers
Substitution
Higher commodity prices and
resource scarcity increase the
likelihood of material substitution
• Widespread adoption of renewable
energy sources as a means of
decarbonising energy supply is
expected to create significant new
demand for the current key transition
enabling commodities, including
copper, nickel and cobalt
• The quantum of potential new demand
is generally large relative to the current
annual production of such commodities
Impact on our industry
• Revenue and earnings of substantial
parts of our industrial asset activities,
and to a lesser extent, our marketing
activities, are dependent on prevailing
commodity prices
• Under a rapid decarbonisation scenario,
a significant increase in demand for the
commodities that currently underpin
renewable technologies is likely to result
in higher prices for those commodities
Link to strategy
Link to strategy
• Accelerated shift in energy demand
from fossil fuel sources to electrification,
and continued population growth,
particularly in Africa and South East Asia,
could generate additional demand
for commodities
How we are responding
• Energy transition commodities such
as copper, nickel, cobalt, zinc, vanadium,
aluminium and steelmaking coal could
become even more important given
their roles in the technologies
and infrastructure that underpin low or
no carbon energy sources
• We are a major producer of
commodities that enable low-carbon
technologies
• We are investing in our portfolio,
including our steelmaking coal assets,
South American copper assets and
projects, and our Canadian Integrated
Nickel Operations (INO) nickel life-
extension projects
• Currently, all energy demand
decarbonisation pathways will require
the type of transition-enabling
commodities that Glencore produces
• Higher sustained commodity prices will
increase the risk of accelerating efforts
to either reduce the quantity of material
needed for a certain application or
substitute an alternative that provides
similar performance at a lower price.
For example, demand for cobalt could
fall if newer equivalent battery
technologies provide similar results with
less or no cobalt content
How we are responding
• Diversification of our portfolio of
commodities and assets and
appropriate management of our
liabilities can mitigate the financial
impact of a negative demand shift
in the event of material substitution of
a particular commodity
• Our market research teams continue
to assess the underlying demand for
our commodities as well as the new
materials that could impact current
renewable technology solutions
Responsible and
ethical business
practices
Effective capital
management
Strong operational
and commercial
performance
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Additional Information
Our strategy for a sustainable future
Strategic priorities
Read more on page 16
Read more on page 17
Read more on page 18
Responsible and ethical
business practices
The world needs a reliable source of responsibly
produced commodities. We are committed to operating
ethically and responsibly in accordance with our Values
and Code of Conduct, respecting human rights and
developing, maintaining and strengthening our
relationships with our various stakeholders. This
approach is supported by our programmes, such as
those related to health, safety, the environment, social
performance and ethics and compliance, which set out
our goals, objectives, expectations and minimum
requirements that we seek to apply consistently across
the Group.
Effective capital management
We recognise that a robust and sufficiently flexible
balance sheet contributes to the delivery of sustainable,
appropriately risk-adjusted, long-term shareholder
returns and should ensure that Glencore is well placed
to withstand the cyclical nature of the natural resource
industry. We intend to prioritise value accretive
investment into transition-enabling commodities that
support the decarbonisation of energy usage and help
meet the commodity demands for everyday life, as well
as proactively manage our overall portfolio of industrial
assets. We will also reduce our thermal coal production
over time.
Strong operational and
commercial performance
We leverage our diversified business model across
industrial and marketing activities to remain adept in a
range of market conditions. We seek to profitably
develop our marketing business, meet industrial
production objectives, as well as deliver on our major
projects. We also focus on the disciplined supply of
commodities, which may result in the proactive
curtailment of our own production from time to time.
Aligned with our Purpose, the commodities in our portfolio help support both the transition to a low-carbon
economy and society’s energy needs as it progresses through the transition.
2024 Glencore Annual Report
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Additional Information
Our strategy for a sustainable future continued
Environmental performance in line
with our targets
We recognise the contribution we can make
to the global effort to achieve the goals
of the Paris Agreement by taking measures
to decarbonise our industrial emissions
footprint and responsibly manage the
depletion of our thermal coal portfolio.
In our 2024-2026 CATP, we reconfirmed our
targets for reducing our scope 1, 2 and 3
industrial emissions against our restated 2019
baseline, to reduce by 15% by the end of 2026
and 50% by 2035 and specified a new target
of a 25% reduction by the end of 2030, while
maintaining our ambition to achieve net zero
industrial emissions by the end of 2050, subject
to a supportive policy environment. Given the
2024-2026 CATP was published prior to the
completion of our acquisition of a 77% interest
in EVR, we are currently assessing how best
to integrate the EVR assets into our climate
transition strategy, recognising that the
transition away from steelmaking coal for steel
production will be slower than thermal coal.
Our performance against our targets in this
report is therefore presented excluding EVR.
During 2024, the scope 1 and 2 market-
based emissions* of the industrial assets
within our operational control, were 27.1Δ
million tonnes CO2e. This represents a 4.1%
decrease from the 28.2 million tonnes
recorded in 2023 (restated).
Our scope 3 emissions* in 2024 were
389.3 million tonnes CO2e, compared to
401.8 million tonnes CO2e in 2023 (restated).
As of the end of 2024, our scope 1, 2 and 3
industrial emissions* were down 23.8%
compared to our restated 2019 baseline.
Detailed information on our restatements
in respect of our emissions is set out in the
Baseline emissions restatement in the TCFD
section on page 38.
In 2024, we recorded no major or
catastrophic environmental incidents Δ.
Social performance and human rights
During 2024, we initiated a review of our
salient human rights risks. The results of this
review will inform our human rights due
diligence across our industrial assets and in
our responsible sourcing practices.
In 2024, we did not cause or contribute to
incidents resulting in severe human rights
impacts.
Refer to the Sustainability section beginning
on page 42 for further information.
Ethics and compliance
We have made significant investments
in our Ethics and Compliance Programme
and have been further driving a culture of
compliance and enhancing our processes
and systems, including in response to the
recommendations of the independent
compliance monitors appointed pursuant
to our resolution with the US Department
of Justice. Detailed information about our
Ethics and Compliance Programme and
enhancements made during 2024 will be
outlined in our 2024 Ethics and Compliance
Report, which will be available on our
website at glencore.com/publications.
Priorities going forward
Sustainability
We continue to implement activities that
promote integration of sustainability
throughout our business to support our
commitment to continuously improve our
standards of health, safety, environmental,
social and human rights performance. Refer
to the Sustainability section on page 45 for
further information on our Group Health,
Safety, Environment, Social Performance
and Human Rights (HSEC&HR) targets.
Key performance indicators
• Safe and healthy workplace – fatalities,
FFR, TRIFR, LTIFR and occupational
disease cases
• Environmental performance in line with
our targets
Key performance indicators: page 19
TCFD: page 24
Sustainability: page 42
Principal risks and uncertainties
• Health, safety and environment
• Geopolitical, permits and licenses to operate
• Low-carbon economy transition
• Social performance and human rights
• Catastrophic and natural disaster events
• Laws and regulations
• Attracting, developing and retaining
people with the necessary skills
Risk management: page 86
Performance in 2024
Health and safety
We require an effective safety management
system at each industrial asset to ensure the
integrity of plant and equipment, structures,
processes and protective systems, as well
as the monitoring and review of critical
controls. Regrettably, there were fourΔ
work-related fatalities during the year.
Our ambition is to become a leader in safety
and create a workplace free from fatalities
and injuries.
Our total recordable injury frequency rate
(TRIFR)* and lost time injury frequency rate
(LTIFR)* decreased by 14.7% and 10.5%
respectively compared to 2023. The 2024 fatality
frequency rate, the total number of work-related
fatalities from incidents and occupational
diseases per 1 million man-hours worked*, was
0.0139 (2023: 0.0132). In 2024, we recorded 281
new occupational disease cases* (2023 restated:
163 cases). Ongoing improvements in our
occupational disease identification, classification
and management processes contributed to this
increase.
Responsible
and ethical
business
practices
Managing emissions
We are working with global specialists and
draw on local expertise within our operational
teams to identify value-accretive abatement
opportunities to further reduce our emissions.
Under all credible scenarios, fossil fuels (coal,
gas and oil) will continue to be part of the
global energy mix for many years to come. We
will responsibly steward the decline of our
thermal coal business as it supports society’s
energy needs through the energy transition.
Ethics and compliance
We will continue to engage constructively
with the monitors and their teams over the
coming year and work diligently to implement
their recommendations.
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Additional Information
Our strategy for a sustainable future continued
Performance in 2024
Balance sheet
Our capital structure and credit profile is
managed around a $10 billion net debt cap
(excluding marketing lease liabilities), with
sustainable deleveraging (after base
distribution) below the cap periodically
returned to shareholders via special cash
distributions and/or share buybacks.
The net debt cap may be flexed temporarily
up to c.$16 billion for mergers and
acquisitions (M&A) opportunities, subject to
accelerated deleveraging to reposition net
debt back to optimal levels.
We finished the year with net debt◊ of
$11.2 billion (including $1.1 billion of
marketing lease liabilities), in line with our
c.$10 billion net debt cap (excluding
marketing lease liabilities) noted above. Net
funding◊ increased by $5.3 billion,
accounting for a net $1.8 billion working
capital inflow, and the disbursement of
$6.7 billion of net capital expenditure,
$1.9 billion of shareholder returns and the
$7.0 billion acquisition of EVR, before
assumption of $0.6 billion of its debt.
Bonds
We issued bonds in a range of currencies in
2024, comprising $4.0 billion, €600 million
and CHF 150 million. Maturities ranged from
3 to 30 years, with our overall bond portfolio’s
maturity profile being managed to not
exceed c.$3 billion in any one year.
Reinvestment
Our 2024 net cash capital expenditure◊ of
$6.7 billion was weighted towards transition-
enabling commodities, as illustrated in the
Industrial activities section on page 73.
Credit rating
The Group’s credit ratings are currently A3
from Moody’s (upgraded in 2024) and BBB+
from Standard & Poor’s.
Credit facilities
During the year, the Group’s $12.9 billion
committed syndicated revolving credit
facilities were extended. Committed
available liquidity was $11.5 billion at year
end.
Priorities going forward
Balance sheet
We are committed to maintaining a strong
balance sheet capable of supporting
our strategy.
We will prioritise preservation of a robust
capital structure and business portfolio,
reflecting our commitment to
maintaining minimum strong BBB/Baa
investment grade ratings.
Our optimal net debt threshold around the
c.$10 billion cap (excluding marketing lease
liabilities) provides significant balance sheet
flexibility, with net debt/adjusted EBITDA
levels comfortably <1x.
Reinvestment
We intend to prioritise investment in
transition-enabling commodities that
support the decarbonisation of energy usage
and help meet the commodity demands of
everyday life, over investment in our energy
fossil fuels portfolio. We are committed to
the responsible phase-down of our thermal
coal portfolio and are not progressing any
thermal coal greenfield investments.
Organic and/or inorganic growth options will
be closely weighed up against share
buybacks, as and when capital allocation
decisions present themselves.
Key performance indicators
• Returns to shareholders – funds from
operations, net funding and net debt
and annual capital returns/distributions
• Value for our shareholders – adjusted
EBIT/EBITDA (both marketing and
industrial), net (loss)/income
attributable to equity holders of the
parent
Key performance indicators:
page 20
Financial and operational review:
page 59
Principal risks and uncertainties
• Supply, demand and prices
of commodities
• Operational delivery
• Major project delivery
• Currency exchange (FX) rates
• Low-carbon economy transition
• Counterparty credit and performance
• Liquidity
Risk management: page 86
Effective
capital
management
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Our strategy for a sustainable future continued
Key performance indicators
• Value for our shareholders – adjusted
EBIT/EBITDA (both marketing and
industrial), net (loss)/income
attributable to equity holders of the
parent
Key performance indicators:
page 20
Financial and operational review:
page 59
Principal risks and uncertainties
• Supply, demand and prices of
commodities
• Geopolitical, permits and licence
to operate
• Operational delivery
• Major project delivery
• Information technology
• Attracting, developing and retaining
people with the necessary skills
• Catastrophic and natural disaster
events
Risk management: page 86
Strong
operational
and
commercial
performance
Performance in 2024
Our industrial assets provide a consistent
source of volumes for our marketing
operations, which are supplemented by
third-party production. Our marketing
teams use our scale and capabilities to
extract additional margin and provide
a high-quality service to our customers
and a reliable supply of commodities.
Production volumes were lower year-on-year
in copper, zinc, nickel and energy coal,
reflecting planned production and portfolio
changes as well as various unplanned
events. However 2024 volumes were
delivered within our guidance ranges,
unchanged from the beginning of the year,
benefiting from strong second half
performances across our key commodities.
Steelmaking coal volumes rose significantly,
reflecting the addition of EVR from July
2024, resulting in a c.4% year-over-year
increase in overall copper equivalent
production.
Adjusted EBITDA◊ contribution from the
industrial activities segment was
$10.6 billion, with adjusted EBITDA mining
margins◊ of 28%, 45% and 32%, respectively,
in our metals, steelmaking and energy coal
assets.
Adjusted EBIT◊ contribution from the
marketing activities segment was
$3.2 billion, at the top end of our $2.2-
$3.2 billion guidance range, albeit 8% lower
than 2023.
Capital expenditure
Our 2024 net cash capital expenditure of
$6.7 billion was weighted towards transition-
enabling commodities, as illustrated in the
Industrial activities section on page 73.
Priorities going forward
Going forward, we will seek to increase the
value of our business by improving the
overall positioning of our assets through an
ongoing focus on portfolio quality and
reliability. We will continue to focus on
operational efficiencies and improvements
to optimise operating cost competitiveness
and margins and we will seek opportunities
to increase the supply of transition-enabling
commodities from our own industrial
operations and through our extensive
marketing activities. We will take a
disciplined supply approach and curtail
production in response to material
oversupply when it makes sense to do so.
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Additional Information
Key performance indicators
Workplace safety
Scope 1, 2 and 3 emissions*
(million tonnes CO2e)
Select non-financial key performance indicators*
Strategic priorities
Responsible and ethical business
practices
Effective capital management
Strong operational and commercial
performance
Work-related fatalities
FourΔ
2023: Four
TRIFR
1.89Δ
2023 restated: 2.22
LTIFR
0.71Δ
2023 restated: 0.80
Link to strategy
416.4
2023 restated: 430.1
Link to strategy
Our financial and non-financial
key performance indicators
(KPIs) provide a measure of
our performance against the
key drivers of our strategy
Approach
Safety, as one of Glencore’s Values, drives
how we do business, and the safety of our
workforce always comes first. We believe
that any loss of life in the workplace is
unacceptable and that injuries are
preventable. We recognise that we are all
responsible for providing and maintaining a
safe workplace. Our business inherently
exposes some of our workers to safety risks.
We take a proactive, preventative approach
towards health and safety. We require an
effective safety management system at each
industrial asset to ensure the integrity of
plant and equipment, structures, processes
and protective systems, as well as the
monitoring and review of critical controls.
We believe that every work-related incident,
illness and injury is preventable and we are
committed to providing a safe workplace.
2024 Performance
With deep regret, we recorded fourΔ
work-related fatalities at our operations in
2024 (2023: four). The incidents were
unconnected. Each one has been thoroughly
investigated by an internal team with root
cause analysis and recommendations for
improvement shared with senior
management and the Board.
The 2024 fatality frequency rate, the total
number of work-related fatalities from
incidents and occupational diseases per
1 million man-hours worked*, was 0.0139
(2023: 0.0132). We believe that consistent
application of our SafeWork initiatives,
through strong, visible leadership, can drive
a culture of safe operating discipline and get
our people home safe.
Our total recordable injury frequency rate
(TRIFR) was lower than in the previous year
at 1.89Δ (2023 restated: 2.22*), while our lost
time injury frequency rate (LTIFR) decreased
to 0.71Δ (2023 restated: 0.80*). Our TRIFR and
LTIFR decreased by 14.7% and 10.5%,
respectively, compared to 2023.* Our 2024
performance reflects the lowest recorded
TRIFR and LTIFR in the past decade.
We recorded 281 new occupational disease
cases* in 2024 (2023 restated: 163 cases).
Ongoing improvements in our occupational
disease identification, classification and
management processes contributed to this
increase.
Approach
In our 2024-2026 CATP, we confirmed our
2026 and 2035 targets for the reduction of
our scope 1, 2 and 3 industrial emissions,
added a new 2030 target and reiterated our
long-term ambition to achieve net zero
industrial emissions by the end of 2050,
subject to a supportive policy environment.
We are currently assessing how best to
integrate the EVR assets into our climate
transition strategy, recognising that the
transition away from steelmaking coal for
steel production will be slower than thermal
coal. Our performance is therefore presented
excluding EVR.
2024 Performance
During 2024, the scope 1 and 2 market-
based emissions* of the industrial assets
within our operational control, were 27.1Δ
million tonnes CO2e. This represents a 4.1%
decrease from the 28.2 million tonnes CO2e
recorded in 2023 (restated).
Our scope 3 emissions* in 2024 were
389.3 million tonnes CO2e, compared to
401.8 million tonnes CO2e in 2023 (restated).
Overall 2024 scope 1, 2 and 3 industrial
emissions* are 23.8% lower than our 2019
restated baseline.
Refer to our 2024 Group Reporting
Glossary, 2024 Basis of Reporting,
the TCFD section on page 24 and the
Sustainability section on page 42 for
further information, including with
regard to restatements.
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Key performance indicators continued
Approach
Adjusted EBIT/EBITDA provide insight
into our overall business performance
(a combination of cost management,
seizing market opportunities and growth),
and are the corresponding flow drivers
towards our objective of achieving industry-
leading returns.
Adjusted EBIT is the net result of revenue
less cost of goods sold and selling and
administrative expenses, plus share of
income from associates and joint ventures,
dividend income and the attributable share
of adjusted EBIT of relevant material
associates and joint ventures, which
are accounted for internally by means
of proportionate consolidation, excluding
significant items.
Adjusted EBITDA consists of adjusted EBIT
plus depreciation and amortisation,
including the related proportionate
adjustments.
2024 Performance
Adjusted EBIT◊ contribution from the
marketing activities segment was
$3.2 billion, 8% down on 2023.
Overall adjusted EBITDA◊ was $14.4 billion,
down 16%, primarily reflecting lower energy
coal pricing benchmarks, partially offset by a
$1.0 billion contribution from EVR since its
acquisition in July 2024.
Approach
Net funding/net debt demonstrates how our
debt is being managed and is an important
factor in ensuring we maintain
a strong investment grade rating
status and a competitive cost of capital.
Net funding is defined as total current and
non-current borrowings less cash and cash
equivalents and related proportionate
adjustments. Net debt is defined as net
funding less readily marketable inventories
and related proportionate adjustments.
The relationship of net debt to adjusted
EBITDA is an indication of our financial
flexibility and strength.
2024 Performance
Net funding◊ at 31 December 2024
was $36.4 billion, while net debt◊ stood
at $11.2 billion.
Net funding◊ increased by $5.3 billion,
accounting for a net $1.8 billion working
capital inflow, and the disbursement of
$6.7 billion of net capital expenditure,
$1.9 billion of shareholder returns and the
$7.0 billion acquisition of EVR, before
assumption of $0.6 billion of its debt.
Net debt◊, including $1.1 billion of marketing
lease liabilities, increased by $6.3 billion to
$11.2 billion, reflecting a $0.9 billion reduction
in readily marketable inventories.
Approach
Funds from operations (FFO) is a measure
that reflects our ability to generate cash for
investment, debt servicing and distributions
to shareholders.
It comprises cash provided by operating
activities before working capital changes,
less tax and net interest payments plus
dividends received and related
proportionate adjustments, as appropriate.
2024 Performance
FFO◊ was $10.5 billion, up 11% compared to
2023, primarily reflecting lower tax payments
versus the base period.
Net interest payments were $1.5 billion, 19%
higher year-over-year, mainly due to higher
funding levels over the year, reflecting the
acquisition of EVR in July 2024.
Approach
Net (loss)/income attributable to equity
holders of the parent is a measure of our
ability to generate shareholder returns.
Reconciliations of gross significant charges
to net significant charges attributable to
equity holders of the parent, after taking
into account the effects of tax and non-
controlling interests, are presented in the
Alternative Performance Measures section
beginning on page 254.
2024 Performance
Net income attributable to equity holders
of the parent before significant items◊ was
$3.7 billion, equivalent to $0.30 per share.
Significant items totalled $5.3 billion,
principally comprising $2.3 billion of
impairments (attributable to equity holders)
and $0.9 billion of additional rehabilitation
provisioning related to closed sites or assets
that have been fully impaired.
Net loss attributable to equity holders of the
parent was $1.6 billion, equivalent to a loss
of $0.13 per share.
Adjusted EBITDA◊
(US$ billion)
Funds from operations◊
(US$ billion)
Net (loss)/income attributable
to equity holders of the parent
(US$ billion)
Net debt◊
(US$ billion)
Select financial key performance indicators
14.4
2023: 17.1
Link to strategy
11.2
2023: 4.9
Link to strategy
10.5
2023: 9.5
Link to strategy
(1.6)
2023: 4.3
Link to strategy
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Section 172 Statement and stakeholder engagement
The UK Corporate Governance Code, which
is available on the FRC website (www.frc.
org.uk), requires the Board to understand
the views of a company’s key stakeholders
and report how their interests and the
matters set out in section 172 of the UK
Companies Act 2006 have been considered
in Board discussions and decision making.
The Board considers the interests of a range
of stakeholders in its discussions, decision
making and development of strategy, and
considers the impact of decision making on
the long-term success of the Group.
During the year, the Directors consider that
they have acted in a way and have made
decisions that would most likely promote
the success of the Company for the benefit
of its members as a whole, with particular
regard for:
• the likely consequences of any decision
in the long term: see the Strategic
overview section on pages 16 to 18, and
Risk management section on pages 87
to 100;
• the interests of employees: see Our
people section, on pages 55 to 58,
the Corporate Governance section on
pages 108 to 110, ECC Committee report
on page 114 and Directors’ remuneration
report on pages 117 to 118;
• the need to foster business relationships
with suppliers, customers and others:
refer to pages 22 to 23 where we provide
further details on stakeholder
engagement;
• the impact of our operations on the
community and environment: see our
Sustainability section on pages 42 to 50
and our 2024 Sustainability Report (to be
published later in 2025), TCFD section on
pages 27 to 37 and 40 to 41, and Risk
management section on pages 86 to 100;
• the desirability to maintain a reputation
for high standards of business conduct:
see our Ethics and compliance section
on pages 51 to 54, our 2024 Ethics and
Compliance Report (to be published later
in 2025), TCFD section on pages 27 to 31
and 40 to 41, Sustainability section on
pages 42 to 50 and 2024 Sustainability
Report, ECC Committee report on page
114, and discussion of risks around
permitting, licence to operate, and laws
and regulations on pages 92 and 99; and
• the need to act fairly between members
of the Company: see the Interactions
with shareholders and other
stakeholders description on page 110,
which outlines the material ways in
which the Board and management
interact with and communicate
to shareholders.
When adhering to the requirements as
to section 172, the Directors have focused
on mapping out the Group’s key stakeholder
groups and reviewing our level of
engagement with them. We operate assets
in more than 30 countries and have over
150,000 employees and contractors.
Engaging with our stakeholder groups,
regardless of their location or opinion, is
a fundamental input into how we operate.
In addition to direct Board engagement,
engagement by management at different
levels of the Group with stakeholders, with
appropriate feedback and reporting to the
Board, enables the Board to understand the
perspectives of our stakeholders and
consider the likely consequences of
decisions in the long term.
To address stakeholder considerations
as part of our decision making, the Board:
• oversees a strategy aimed at achieving
lasting success and generating
sustainable returns for our business, whilst
maintaining our licence to operate;
• has standing agenda items at Board
and committee meetings that consider
our main stakeholder groups’ interests;
• remains focused on its awareness and
strengthening its understanding of the
broad range of views expressed by
Glencore’s stakeholders; and
• holds management to account on the
Group’s commitments, particularly in
relation to matters which are of significant
interest to our stakeholders such as our
climate strategy, interactions with local
communities, health and safety and ethics
and compliance, thereby also ensuring
that management acts in accordance with
our Purpose and Values.
The competing interests of diverse
stakeholder groups are an important
consideration in the Board’s decision
making. The Board is responsible for
challenging management’s approach
to understanding, evaluating and, where
necessary, mitigating adverse impacts on
particular stakeholder groups.
For more detail on Board activity in the year
and how stakeholder interests are taken into
consideration in Board decision making, see
the Corporate Governance section of this
report, beginning on page 101, including the
Audit Committee report on pages 111 to 113,
the ECC Committee report on page 114, the
HSEC Committee report on page 115, the
Nomination Committee report on page 116
and the Directors’ remuneration report on
pages 117 to 118.
Explore our annual reporting suite including
our Sustainability Report and Ethics and
Compliance Report at
glencore.com/publications
2024 Glencore Annual Report
21
Strategic Report
Corporate Governance
Additional Information
Section 172 Statement and stakeholder engagement continued
As a global resources business, we recognise that constructive,
respectful and two-way relationships with stakeholders are
essential for our social licence to operate. The following pages
outline our key stakeholder groups, how we interact with them
and how the Board considers their interests and opinions
during its discussions and decision-making processes. In each
section, the paragraph Why they are important to the Group
outlines why these stakeholders play an important role in the
Group’s pursuit of long-term success.
Our people
Communities
Investors, banks, financial analysts
and the media
Why they are important to the Group:
Our people drive our operational performance,
innovation and the execution of our strategic objectives.
What these stakeholders have indicated is important:
• health, safety and wellbeing;
• training, compensation and career opportunities;
• company culture and reputation; and
• industrial relations.
How the Group maintains engagement:
• intranet, emails, newsletter updates;
• posters and leaflets;
• townhall meetings and forums;
• team meetings;
• pre-shift ‘toolbox’ talks;
• employee surveys;
• focus groups, webinars and trainings; and
• Raising Concerns Programme channels and other
whistleblowing channels.
How the Board takes account of these interests:
• the Board has appointed all members of the ECC
Committee as workforce engagement directors;
• regular updates from corporate functions such as
Human Resources and HSEC&HR;
• regular updates on Raising Concerns Programme and
material internal or external investigations by the
General Counsel and Head of Human Resources;
• results of employee surveys and focus groups; and
• site visits to various offices and industrial assets.
Why they are important to the Group:
Support from local communities is crucial to
maintaining our social licence in the regions where we
are present.
What these stakeholders have indicated is important:
• local employment and procurement opportunities;
• health, safety and wellbeing of workers;
• operational impacts;
• socio-economic development projects;
• environmental management;
• tailings storage facilities;
• potential site closure;
• security and its engagement with the community;
and
• artisanal and small-scale mining (ASM).
How the Group maintains engagement:
• community liaison teams;
• various meetings in different formats to reflect local
expectations and gather community input;
• radio and television broadcasts;
• social media channels and industrial assets’ websites;
and
• industrial asset-specific publications.
How the Board takes account of these interests:
• Group HSEC&HR provides the HSEC Committee with
regular updates on Glencore’s impact on the
communities living around our operations and other
relevant matters relating to these communities, such
as the security situation and the levels of ASM; and
• industrial asset management provides details of
community considerations as input into Directors’
discussions on operational matters, where relevant.
Why they are important to the Group:
Investors and banks supply essential support and capital
to our business and financial analysts and the media
shape market perceptions about us, which can impact
our strategy, financial performance, growth prospects
and long-term success.
What these stakeholders have indicated is important:
• financial and operational performance;
• climate change;
• compliance with laws and regulations;
• company culture and reputation;
• transparent payments to governments;
• health, safety and human rights; and
• industrial relations.
How the Group maintains engagement:
• Annual General Meeting (AGM), regular calls, one-on-
one meetings and other Group events and
presentations;
• Corporate Affairs teams regularly speak to media at
global, national and local levels;
• site visits;
• webinars and online Q&A sessions;
• Annual Report, Half-Year Report, Ethics and
Compliance Report, Sustainability Report, Payments
to Governments Report, and other reports and
presentations; and
• website, social media channels, media releases, and
regulatory announcements.
How the Board takes account of these interests:
• AGM;
• updates from the Chairman on one-on-one meetings
he attends with investors;
• investor relations provides the Board with sell-side
analyst analysis and feedback from investors and
banks on corporate activities and events; and
• following major announcements, Group Corporate
Affairs provides feedback on stakeholder responses to
the Board.
2024 Glencore Annual Report
22
Strategic Report
Corporate Governance
Additional Information
Section 172 Statement and stakeholder engagement continued
Governments and regulators
Suppliers and customers
Why they are important to the Group:
Governments and regulators enable our access to
necessary licences and permits and provide the legal,
industry and policy frameworks that supports our
businesses and ensures that our communities and
people are protected.
What these stakeholders have indicated is important:
• tax and royalty payments;
• compliance with laws and regulations;
• local employment and procurement;
• operational environmental management, including
tailings storage;
• climate change;
• socio-economic development projects;
• transparency and human rights;
• public health; and
• security.
How the Group maintains engagement:
• provide information and updates on key topics, either
directly or as part of industry associations;
• participation in multi-stakeholder organisations,
initiatives and roundtables, such as the Voluntary
Principles on Security and Human Rights (Voluntary
Principles), OECD forums and the Extractive Industries
Transparency Initiative (EITI);
• direct engagement with national, regional and local
government on key topics;
• industrial asset site visits by government stakeholders;
and
• public reporting.
How the Board takes account of these interests:
• Group Legal and other Group functions, as applicable,
report on material regulatory issues and emerging
legislation to the Board; and
• Group Corporate Affairs reports on material
engagement with governments and regulators.
Why they are important to the Group:
Well-established relationships with suppliers and
customers are essential to the long-term viability
of our business model.
What these stakeholders have indicated is important:
• responsible sourcing and supply;
• transparency and due diligence in the supply chain;
• procurement spend;
• human rights;
• compliance with laws and regulations;
• competitive pricing; and
• reputation.
How the Group maintains engagement:
• our Responsible Sourcing Programme;
• regular meetings and updates;
• customer industrial site visits;
• participation in commodity-specific responsible
sourcing initiatives; and
• local procurement initiatives.
How the Board takes account of these interests:
• oversight of the implementation of the Responsible
Sourcing Policy.
Unions
Why they are important to the Group:
Unions represent our workforce in a number of regions
and our workforce is critical to our success.
What these stakeholders have indicated is important:
• health, safety and wellbeing;
• negotiation of workplace agreements; and
• industrial relations.
How the Group maintains engagement:
• regular meetings with industrial asset management;
and
• union participation in asset safety committees.
NGOs and civil society groups
Why they are important to the Group:
Maintaining effective engagement with NGOs supports
our efforts to operate responsibly and ethically.
What these stakeholders have indicated is important:
• human rights;
• climate change;
• tailings storage facilities;
• social incidents and public health;
• operational and environmental management;
• socio-economic development projects;
• transparency in payments to governments;
• security and its engagement with community groups;
and
• compliance with laws and regulations.
How the Group maintains engagement:
• direct engagement with global and local NGOs and
civil society groups;
• sustainability reporting, including Sustainability
Report, Modern Slavery Statement and 2024-2026
Climate Action Transition Plan;
• social media channels and corporate website;
• external forums and organisations, such as the Voluntary
Principles, the OECD and the EITI; and
• NGO site visits.
How the Board takes account of these interests:
• Group Sustainability provides regular updates to the
Board on the opinions and activities of NGOs and
civil society groups; and
• regular discussions on major issues of concern to NGOs
and civil society groups and our engagement with them.
How the Board takes account of these interests:
• periodic updates from the Head of Human
Resources and Head of Industrial Assets
on material workforce issues.
2024 Glencore Annual Report
23
Strategic Report
Corporate Governance
Additional Information
Our route to achieving net zero industrial emissions1
0
100
200
300
400
500
600
21
2026
-15%
2030
-25%
2035
-50%
2050
Net zero3
14
512
546
464
410
273
-81
-552
-1362
-1264
-1475
-1
-1
700
2019 Scope 1
2019 Scope 2
2019 Scope 3
Portfolio Depletion (Sc 1, 2, 3)
2026 MACC (S1+2)
2026 Scope 1+2+3 target
Portfolio Depletion (Sc 1, 2, 3)
2030 MACC (S1+2)
2030 Scope 1+2+3
Portfolio Depletion (Sc 1, 2, 3)
2035 MACC (S1+2)
Additional abatement
2035 Scope 1+2+3 target
Portfolio Depletion (Sc 1, 2, 3)
Asset investments
Technology improvements
Offsets and efficiencies
2050 Net Zero ambition
TCFD
As one of the world’s largest diversified natural resource companies, we have an important role to
play in supporting the global transition to a low-carbon economy.
2024-2026 CATP:
Our climate ambition and targets are
underpinned by four strategic pillars:
• Managing our operational footprint;
• Responsibly reducing our scope 3
industrial emissions;
• Advancing tomorrow through our transition-
enabling commodities portfolio; and
• Driving new business models.
Our position on climate change
Our position on climate change is set out in
our 2024-2026 Climate Action Transition
Plan (2024-2026 CATP), and addresses the
following considerations:
• our climate targets and ambition and
consideration of the goals of the United
Nations Framework Convention on
Climate Change and the Paris Agreement;
• our commitments in respect of the
responsibly managed phase down
of our thermal coal portfolio; and
• our approach to capital allocation.
These pillars are supported by responsible
and transparent business practice in respect
of governance, management of risks and
opportunities, capital allocation, just
transition, external engagement, and
transparency and disclosure.
Our route to net zero
industrial emissions
In 2024, we published our second Climate
Action Transition Plan, which sets out our
climate-related strategy for 2024 to 2026.
Our 2024-2026 CATP was approved at
our 2024 Annual General Meeting (AGM)
with over 90% of voting shareholders
supporting the plan. The disclosure in this
section of the Annual Report constitutes a
report on our progress against this plan in 2024.
Our 2024-2026 CATP outlined our scope 1, 2
and 3 industrial emissions reduction targets,
including our newly introduced 2030 target.
These targets comprise: a 15% reduction by
the end of 2026, a 25% reduction by the end
of 2030 and a 50% reduction by the end of
2035, in each case against our 2019 restated
baseline with a longer-term ambition of
achieving net zero industrial emissions by
the end of 2050, subject to a supportive
policy environment. We chose to adopt an
absolute reduction metric as this delivers a
specified reduction in our emissions.
We are on track to meet our targets and are
committed to responsibly managing the
phase down of our thermal coal production.
Significant developments
following 2024-2026 CATP
approval
On 11 July 2024, following the approval of our
2024-2026 CATP, we successfully closed our
acquisition of a 77% interest in Elk Valley
Resources (EVR).
1. The components contributing to our emissions
reductions are indicative and may change
based on actual performance.
2. The pace of portfolio depletion and split
between portfolio depletion and MACC
initiatives are indicative and subject to change.
3. Our 2050 net zero ambition is subject to a
supportive policy environment. Refer to our
2024-2026 CATP.
4. The split between portfolio depletion and asset
investment is indicative and will evolve as
business initiatives are developed and
implemented.
5. Technology improvements, offsets and
efficiencies are illustrative and subject to
continuous review and innovation
The acquisition of EVR has enhanced the quality
of our portfolio, broadening our ability to provide
high-quality steelmaking coal, an important
transition-enabling commodity, to customers
around the world. The acquisition therefore
strengthens Glencore’s position across the
products necessary for the energy transition.
Following completion of the EVR acquisition, we
undertook an extensive consultation process to
assess shareholder views regarding retaining or
demerging the coal and carbon steel materials
business. Following that extensive consultation
and feedback, we determined that we should
retain our coal and carbon steel materials
business as it provided the optimal pathway for
demonstrable and realisable value creation for
Glencore shareholders.
We are currently assessing how best to
integrate the EVR assets into our climate
transition strategy, recognising that the
transition away from steelmaking coal for
steel production will be slower than thermal
coal, as well as the limitations of existing
technology to address scope 3 emissions in
the steelmaking sector.
EVR’s high-quality hard coking coal can
improve blast furnace efficiency and decrease
CO2 emissions per tonne of steel. For the
foreseeable future, we expect continued
demand for EVR’s high-quality steelmaking
coal and, unlike our thermal coal business, do
not intend to phase down EVR’s operations as
part of the Group’s emission reduction strategy.
Due to its location, EVR already has low scope 2
emissions. This contributes to a better than
industry average for its combined scope 1 and 2
emissions per tonne of coal production,
meaning that EVR already has a lower scope 1
and 2 emissions intensity than many of its
peers. In this context, we are evaluating
practical and feasible opportunities for further
reductions of scope 1 emissions.
2024 Glencore Annual Report
24
Strategic Report
Corporate Governance
Additional Information
TCFD continued
We believe that the disclosures in this Annual Report are consistent with the four
Recommendations and eleven Recommended Disclosures of the TCFD.
We are focused on integrating EVR’s
operations into Glencore standards and
systems, including in relation to climate.
Work is ongoing to assess decarbonisation
opportunities and decarbonisation work that
has been completed to date.
In accordance with the Greenhouse Gas
Protocol, we have provided a restated
baseline for our industrial scope 1, 2 and 3
industrial emissions to reflect the acquisition
of EVR. However, given the ongoing work to
develop the climate transition strategy for
these assets, and to support an accurate
assessment of Glencore’s progress against
the targets set out in its 2024-2026 CATP, we
continue to report on performance
excluding the EVR assets. We will continue
to update shareholders on the progress of
integration and the development of EVR’s
climate strategy.
Task Force on Climate-related
Financial Disclosures
The Task Force on Climate-related Financial
Disclosures (TCFD) was established by the
Financial Stability Board to improve reporting
of climate-related risks and opportunities. We
recognise that disclosures on our climate-
related risks and opportunities support our
shareholders in making long-term
investment decisions. As such, we continue to
structure our Annual Report’s climate
disclosures according to the TCFD
Recommendations, taking steps to provide
greater granularity of content over time.
Recommendations of the Task Force on Climate-related Financial Disclosures
The below table outlines where information relating to each of the TCFD’s recommendations
and recommended disclosures can be found within this report. Further supplementary
information is also available where indicated in our 2024-2026 CATP.
Governance
Disclose the organisation’s governance around climate-related risks
and opportunities
2024
Annual
Report
Page
2024-
2026
CATP
Page
a) Describe the Board’s oversight of climate-related risks and
opportunities.
27,
108-110,
115
19
b) Describe management’s role in assessing and managing climate-
related risks and opportunities
27, 86-88
20-21
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the
organisation’s businesses, strategy, and financial planning where such information is material
(a) Describe the climate-related risks and opportunities the organisation
has identified over the short, medium, and long term.
27-31, 90,
93-95
22-23
(b) Describe the impact of climate-related risks and opportunities on the
organisation’s businesses, strategy, and financial planning.
13, 14, 16,
32
22-23
(c) Describe the resilience of the organisation’s strategy, taking into consideration
different climate-related scenarios, including a 2°C or lower scenario.
26, 110
23-24
Risk management
Disclose how the organisation identifies, assesses, and manages climate-related risks
(a) Describe the organisation’s processes for identifying and assessing
climate-related risks.
32,
86-88
22
(b) Describe the organisation’s processes for managing climate-related risks.
27-31,
86-88,
93-95, 115
22-24
(c) Describe the targets used by the organisation to manage climate-
related risks and opportunities and performance against targets.
16, 24-26
7-9
Metrics and targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks
and opportunities where such information is material
(a) Disclose the metrics used by the organisation to assess climate-related
risks and opportunities in line with its strategy and risk management process.
33
11-14
(b) Disclose scope 1, scope 2 and, if appropriate, scope 3 greenhouse gas
(GHG) emissions, and the related risks.
33-37
7
(c) Describe the targets used by the organisation to manage climate-
related risks and opportunities and performance against targets.
16, 24-26
7-9
0
100
200
300
400
500
600
2024
(ex EVR)
2023
(ex EVR)
2022
(ex EVR)
2021
(ex EVR)
2020
(ex EVR)
2019
(ex EVR)
700
700
0
100
200
300
400
500
600
2024
2023
2022
2021
2020
2019
Scope 1
Scope 2
-23.8% from baseline
Scope 3
Scope 1
Scope 2
Scope 3
EVR Scope 1
EVR Scope 2
EVR Scope 3
546.5Mt
623.6Mt
503.6Mt
509.3Mt
462.1Mt
503.8Mt
487.7Mt
436.0Mt
437.2Mt
393.4Mt
430.1Mt
416.4Mt
Restated industrial emissions
excluding EVR
Restated industrial emissions
including EVR
Illustrative
2024 Glencore Annual Report
25
Strategic Report
Corporate Governance
Additional Information
TCFD continued
Intergovernmental Panel on Climate Change
(IPCC) and IEA are among several inputs into
our climate strategy. There are inherent
limitations to scenario analysis and it is
difficult to predict which, if any, of the
scenarios might eventuate. Scenario analysis
relies on assumptions that may or may not
be, or prove to be, correct and that may or
may not eventuate, and scenarios may also
be impacted by additional factors to the
assumptions disclosed. Given these
limitations, we do not seek to align to any
particular pathway or scenario but continue
to monitor and compare our targets to
a range of scenarios.
To illustrate where our emissions reductions
targets are positioned with respect to IEA
scenarios we provide the below graphic.
The graphic illustrates the percentage
changes in global CO2e emissions from
fossil fuel use since 2010 and through 2024
based on data reported by the IEA. The IEA
emissions pathways are shown with linear
interpolation between their published data
points for the respective scenarios and
do not represent any form of commitment
by Glencore to any particular pathway
towards achieving our climate-related
targets and ambition.
Our 2026, 2030 and 2035 industrial emissions
reduction targets, as outlined in our 2024-
2026 CATP, take into account market
demand for our products and remain ahead
of both national governments’ stated
policies and announced pledges for the
same years (as modelled in the IEA Stated
Policies (SPS) and Announced Pledges
Scenarios (APS)). Our targets are not aligned
with the IEA Net Zero Emissions by 2050
Scenario (NZE Scenario), an increasingly
unrealistic scenario due to the extent to
which policy, technology and investment
are lagging this pathway. Among the various
scenarios, we recognise the IEA APS
Scenario as a challenging but real-world
starting point from which to work towards
a ‘supportive policy environment’ in our net
zero industrial emissions ambition. As noted
by the IEA, enabling the APS Scenario
requires implementation of policy,
increased financing and substantial further
development to progress towards a net
zero outcome.
Change in fossil fuel and coal CO2 emissions – WEO 2024 scenarios
2050
2048
2046
2044
2042
2040
2038
2036
2034
2032
2030
2028
2026
2024
2022
2020
2018
2016
2014
2012
CO2 capture
& removal
Net IEA NZE 1.5oC
Gross IEA NZE 1.5oC
Net IEA SPS 2.4oC
Coal only SPS
Coal only APS
Coal only NZE
Net IEA APS 1.7oC
Glencore
baseline 2019
Glencore
15% reduction
Glencore
25% reduction
Glencore
50% reduction
Glencore
NZE ambition
IEA NZE 2024 Net 1.5C
IEA Global CO2
IEA STEPS 2024 Net Coal CO2
IEA 2024 STEPS Net 2.4C
IEA 2024 APS Net 1.7C
IEA NZE 2024 Net Coal CO2
IEA NZE 2024 Gross 1.5C
IPCC SR15 no/ltd overshoot gross (mid)
IEA APS 2024 Net Coal CO2
0%
20%
40%
60%
80%
100%
120%
2024 World Energy Outlook
The International Energy Agency (IEA)’s 2024
World Energy Outlook (WEO) acknowledges
that “demand for energy is rising rapidly, led
by emerging and developing economies”
and while investment in renewable energy
capacity is increasing, the rate of energy
demand growth has resulted in record
volumes of oil, gas and coal being
consumed, and an increase in global carbon
emissions. Economic and population energy
needs are delaying the pathway to emissions
reductions.
We recognise that there are differing views
on the pathway (and energy mix) required
to achieve the Paris Agreement goals.
The scenarios developed by the
Given our integrated portfolio, we expect
that our current business should be resilient
to transition risk across climate scenarios.
Beyond using scenario analysis to assess
potential financial impacts on our business
and consider our strategic resilience, we
leverage our internal analysis of the future
demand outlook for commodities that we
are materially exposed to in order to actively
manage climate policy risks and
opportunities on an annual basis. We closely
monitor the most critical indicators
(including climate policies, rate of clean
energy technology adoption, battery
technology evolution, level of recycling,
among others) to refine our demand and
price expectations. This in turn informs our
decisions to accelerate or decelerate our
project pipeline and allocate capital across
commodities.
In practical terms, energy security and
affordability are increasingly being
recognised as essential measures that need
to be balanced with the rate of transition
to lower emissions systems. This has been
highlighted by the impact of recent conflicts
on energy input costs, the fragility of power
grids, the need for secure baseload power
supply and the need to match energy
demand growth rates which exceed the rate
of adoption of low emissions energy systems.
The need for secure and affordable energy
has led to asymmetric increases in thermal
coal demand and production (especially in
developing economies), with associated risks
of environmental and social impacts.
Our climate approach is informed by the
global policy environment, as we believe that
government commitments are most likely to
influence and direct global energy systems
through the process of transition.
2024 Glencore Annual Report
26
Strategic Report
Corporate Governance
Additional Information
Governance of climate-related
risks and opportunities
Board climate-related activities
During 2024, the Board:
• oversaw the completion of the review and
development of the 2024-2026 CATP,
including considering feedback received
from internal and external stakeholders
and discussing and approving the steps
taken in the plan to respond to the
feedback;
• monitored progress against Glencore’s
climate strategy, including our scope 1, 2
and 3 industrial emissions performance,
and the ongoing development of our
Group marginal abatement cost curve
(MACC);
• considered climate-related issues, with
information provided by management,
when it reviewed strategic decisions
relating to major capital expenditures,
including the decision to retain the coal
and carbon steel materials business;
• through the Chairman and CEO, consulted
with shareholders on climate-related
matters;
• provided our shareholders at our 2024
AGM with their advisory vote on the
2024-2026 CATP;
• reviewed climate-related disclosures in our
reporting suite and other external
engagement;
• participated in training on climate change
covering matters related to duties as
directors, legal risks and external
expectations, as well as evolving climate
issues; and
• reviewed the outcome of the climate-
related risks and opportunities
assessment.
TCFD continued
While climate-related matters are mostly
discussed by the full Board, some of its
committees also review relevant aspects.
The Ethics, Compliance and Culture (ECC)
Committee reviewed our stakeholder
engagement, including on climate-related
matters. The ECC Committee also
considered significant matters on which the
Group has made political representations
and our use of lobbyists and the conduct
and positions of our industry organisations
during 2024 on material issues, in line with
our Political Engagement Policy.
The Board’s Audit Committee reviewed
the Group’s management of financial risk,
including those financial risks relating to
climate change and oversaw the review of
the Group’s financial statements and reports,
including climate-change related financial
disclosures.
The Board’s Remuneration Committee
supported the delivery of our climate
strategy through the consideration of
performance against ESG initiatives when
determining the performance-related pay
for Glencore’s CEO.
Chief Executive and management
team climate-related activities
The Climate Change Taskforce (CCT), which
is led by the CEO and accountable to the
Board, oversaw the development of the
2024-2026 CATP, including engagement
with external stakeholders. Following
approval, the CCT oversaw the development
of plans to support the activities needed to
meet the objectives of the 2024-2026 CATP.
It also reviewed the outcomes of our annual
climate risk assessment.
The CCT will oversee the assessment and
recommend to the Board how best to
integrate EVR into the Group’s overall
climate strategy.
Commodity department
responsibilities
The commodity departments report to
management on progress and
developments in connection with climate-
related risks and opportunities and during
2024 undertook the following activities:
• participated in the Industrial and
Marketing Climate Working Groups to
increase knowledge sharing and enable
acceleration of the adoption of
decarbonisation action Group-wide;
• continued to work on the decarbonisation
of the industrial assets through identifying
carbon abatement opportunities that are
inputs for the Group MACC;
• maintained rolling four-year climate action
plans, supporting their decarbonisation
planning;
• collaborated with industry organisations
to strengthen the understanding of a
commodity’s emissions through
developing life-cycle analysis; and
• continued to identify environmental
products and power supply opportunities
that support a more efficient approach to
carbon and energy markets and our scope
2 industrial emissions reduction efforts.
Strategy
When developing Glencore’s climate
strategy, we considered climate-related risks
and opportunities across three time
horizons:
S
short term (to the end of 2026): the first
six years following the initial publication
of our climate strategy at the end of
2020, which aligns with business and
financial plans developed to deliver our
2026 target;
M
medium term (to the end of 2035): the
mid-point between 2020 and 2050,
being the date of our 2035 target; and
L
long term (to the end of and beyond
2050): our longer-term ambition is to
achieve net zero industrial emissions by
the end of 2050, subject to a supportive
policy environment.
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Additional Information
We have identified the following climate-related risks and opportunities as having the potential to cause a material financial impact for the Group:
A. Transition Risks
Policy and legal
Affected commodity/process/region
• All producing commodities
• Industrial and marketing activities
• Africa, Australia, Canada, Europe, Kazakhstan, South America
Time
horizon
S M
Mitigation measures
We track and respond to regulatory and technology developments, as well as customer demand.
We anticipate increased policy-driven demand for our products that have lower embedded
carbon content. We also recognise the potential for financial impacts arising from uncertainties
in project approval processes and seek to mitigate these impacts where possible. We look to play
an active and constructive role in public policy development on carbon and energy issues, both
directly and through participation in industry organisations, for instance through advocating for a
stable and predictable approach to energy policies in Europe. Through continuous improvements
in emissions data collection and reporting across our operations and value chains, we can better
identify optimisation potential, carbon reduction opportunities and energy efficiencies considering
the total emissions footprint of our industrial assets. We expect that technology will in time enable
us to further enhance reporting of our emissions throughout our value chain and to work with our
stakeholders to reduce emissions.
We operate successfully in multiple jurisdictions that have direct and indirect carbon pricing or
regulations. During 2024, we used actual carbon prices, and carbon prices consistent with the IEA’s
NZE 2023 scenario (as the scenario available at the time of our planning process) to assess the
likelihood and impact of rising carbon prices in our operating jurisdictions.2
We have identified some parts of our business, such as nickel and coal, that would likely
experience significant cost pressure in a high carbon price environment. However, our analysis
of the impact of carbon pricing on operational costs is offset by the expected impact on these
commodities (prices and costs) as a whole, such that Glencore’s operations should retain their
relative positions on the cost/margin curves. We consider local regulation and carbon price
sensitivities as part of our ongoing business planning for existing industrial assets and new
investments.
We recognise the potential for financial impacts arising from global ambitions seeking to drive
quicker decarbonisation. Further information is available in note 1 to the financial statements.
We have assessed that increasing demand for our transition metals commodities is likely to drive
higher prices for those products in turn offsetting increases to processing costs arising from the
implementation of carbon pricing instruments.
We seek to correct inaccurate or misinformation that we identify in the public domain and
reiterate our position on key issues related to our climate change strategy. We report on our
climate plans and progress against these annually to inform our stakeholders.
Risks and opportunities
Our ability to operate or develop industrial assets can be affected by regulatory and policy
developments, such as carbon and corporate taxes, project approvals (or lack thereof or
delays to project approvals), emissions caps or limits on emissions intensity, energy
regulation, carbon trading and use of carbon offsets1. In addition, changing regulations and
the uncertainties associated with project approvals may increase operating costs and reduce
profitability, impacting operational viability and future investments.
There are increasing moves to introduce carbon import taxes, such as the European Union’s
Carbon Border Adjustment Mechanism. These have the potential to affect our products’
export markets and trade flows. Policies relating to cost of carbon and emissions may also
have an impact on our operations, for instance those in Australia and Canada. In particular,
earnings may be impacted by lack of availability, increased pricing or limitations on the use
of carbon trading, as well as due to limits on absolute GHG emissions put in place as a result
of government policies.
Further impacts to earnings may arise from cost impacts associated with policies affecting
technology rollout and adoption, as well as increased taxation on energy. These have been
identified as risks by our zinc and coal departments in Germany and Colombia, respectively.
There is the potential for legal risks during project approval processes, as well as the financial
impacts of approvals uncertainties.
There has been a significant increase in recent years in litigation (including class actions),
in which climate change and its impacts are a key or contributing consideration, including
administrative law cases, human rights claims, tortious cases and claims brought by investors. In
particular, a number of lawsuits have been brought against companies with fossil fuel operations
in various jurisdictions seeking damages related to climate change. A number of regulators have
also increased their scrutiny of companies’ actions in respect of climate change, including
through the adoption of additional reporting requirements and investigating claims related to
inaccurate or misleading disclosure (for example in connection with greenwashing allegations).
1. We assess policy information on: Technology Costs: Solar PV Capital Costs, Cost of Carbon, Industry:
Emissions, Industry: Emissions % Change, Industry: Iron and Steel Emissions, Industry: Iron and Steel
Emissions % Change, Transport: Heavy-Duty Trucks Emissions, Transport: Heavy-Duty Trucks Emissions
% Change, Electricity: % Supply Solar PV and Wind, Electricity: % Supply Solar PV and Wind % Change,
Electricity: Supply Emission Intensity, Electricity: Supply Emission Intensity % Change, Industry: Energy
Consumption TFC, Industry: Energy Consumption TFC % Change, Industry: Iron and Steel Energy
Consumption TFC, Industry: Iron and Steel Energy Consumption TFC % Change, Buildings: Services
Buildings Emissions, Buildings: Services Buildings Emissions % Change, Transport: Oil in Transport TFC,
Transport: Oil in Transport TFC % Change, Transport: Electricity in Transport TFC.
2. There are two main types of carbon pricing: emissions trading systems (ETS) and carbon taxes. An ETS,
sometimes referred to as a cap-and-trade system, caps the total level of greenhouse gas emissions and
allows those industries with low emissions to sell their extra allowances to larger emitters. By creating
supply and demand for emissions allowances, an ETS establishes a market price for greenhouse gas
emissions. A carbon tax directly sets a price on carbon by defining a tax rate on greenhouse gas
emissions or, more commonly, on the carbon content of fossil fuels. It is different from an ETS in that
the emission reduction outcome of a carbon tax is not pre-defined but the carbon price is (World Bank
Pricing Carbon available at www.worldbank.org/en/programs/pricing-carbon).
TCFD continued
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Additional Information
Market
Affected commodity/process/region
• Coal, copper, cobalt, lead, nickel, vanadium, zinc
• Smelting, refining, marketing
• Africa, Australia, Canada, Europe, Kazakhstan, South America
Time
horizon
M L
Mitigation measures
As one of the largest diversified natural resource companies in the world, we can support
the delivery of climate goals by producing, recycling, marketing and supplying the metals
and minerals that are essential to the transition to a low-carbon economy.
Our approach strives to ensure that we identify, understand and monitor our emissions and
climate change issues, to meet regulatory compliance and our commitments that support
the goals of the Paris Agreement (Article 2).
We remain committed to reducing our thermal coal production in accordance with our
emissions reduction targets and ambition.
As the global patchwork of energy and climate change regulation evolves, we closely
monitor international and national developments and their potential to impact our
industrial assets.
We consider energy costs and our emissions in our annual business planning processes.
Commodity departments provide energy and emission forecasts for the forward-planning
period and provide details of projects that may reduce emissions, including identifying and
developing renewable energy generation opportunities. Our business model is well placed to
supply low-carbon and renewable fuel solutions to our industrial assets through the supplier
network of our energy marketing business.
Our assessment of potential mitigation and abatement projects forms the basis of our
internal MACC. We utilise our MACC to act on cost-ranked emission reduction opportunities
to mitigate high carbon prices and are pursuing lower emission sources in our businesses.
As a vertically integrated extractive and marketing business, we can seek to leverage our
own carbon reduction efforts and market expertise to support the increasing needs for
attestable low-carbon products. Our marketing segment’s carbon strategy is expected to
create additional value over time as markets and demand for carbon solutions in the
commodity supply chain evolve.
Risks and opportunities
In response to the ongoing efforts on the decarbonisation of global energy supply and
electrification of key sectors, including mobility and its associated infrastructure, we expect
demand to grow rapidly for renewable energy technologies, and the metals and minerals
required to build them.
Population and economic growth are further expected to drive increasing commodity
demand. Changes in commodity use from emerging technologies, adoption of renewable
energy generation and policy changes may affect demand for our products, both positively
and negatively.
The global coal market is dynamic and subject to the changing geopolitical and energy
landscape. Over time, coal’s share of primary energy demand will continue to decline. In the
2024 Coal Analysis and Forecast to 2027 Report, the IEA indicated that 2024 was a new peak
for global coal production and trade and both demand and trade are expected to decline
going forward. However, the rate of production decline to 2027 is expected to be slow (0.3%
per annum), with production of thermal coal to decline at 0.2% per annum and metallurgical
coal at 1.4% per annum. This is consistent with IEA’s 2024 WEO projection which shows coal
demand is expected to decline in all scenarios. In the APS Scenario, 86% of the projected coal
demand decline to 2030 is expected to occur in North America, Europe and China while
demand in India and Southeast Asia continues to grow. Demand growth in India and
Southeast Asia and the lower rate of demand decline across the balance of Asia is expected
to support net export supply volumes from Australia and North America.
We are a significant energy consumer. Energy is a key input and cost to our business as well
as a material source of our carbon emissions. Governments may impose taxes or levies on
procured energy sources, limit supplies or introduce required purchasing or generation of
renewable energy. The introduction of carbon taxes and/or clean fuel standards may result
in increased operating costs for our industrial assets.
Increasing demand and higher commodity prices can drive substitution and market
dislocations of products.
TCFD continued
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Additional Information
Reputation
Affected commodity/process/region
• All commodities
• Industrial and marketing activities
• Global
Time
horizon
S M
Mitigation measures
We engage with a broad range of stakeholders on diverse topics, including climate change
and related areas of concern. Our engagement with our local communities and those
directly affected by our operations aims to be transparent and honest. Where we identify
differing opinions, we look for opportunities to find constructive solutions.
We engage closely with our investors, lenders and capital providers, including targeted
engagements in relation to climate change.
By maintaining strong relationships with our investors, lenders and other capital providers,
and investment grade credit ratings, we continue to have a broad range of sources from
which to access funds. We regularly review our banks’ and other institutions’ climate
change-related policies and any evolution in applicable restrictions.
Risks and opportunities
Negative stakeholder perception around the role of the extractive sector may arise from
its contribution to climate change or environmental and social impacts associated with
resource exploitation. This, in turn, may impact the development or maintenance of our
industrial assets due to restrictions in operating permits, licences, or similar authorisations.
A number of companies, including Glencore, have faced shareholder requisitioned
resolutions on climate-related matters. These may continue to escalate, and may impact our
business and reputation.
These issues may impact our access to capital or insurance, resulting in increased costs of
finance and/or divestment of our shares and bonds, as banks and other financial institutions
discontinue working with companies involved in fossil fuels.
Technology
Affected commodity/process/region
• Transition metals, coal
• Industrial and marketing activities
• Global
Time
horizon
M L
Mitigation measures
Increased adoption of renewable energy sources as a means of decarbonising energy supply
is expected to create significant new demand for the current key transition-enabling
commodities, including copper, nickel and cobalt, which we produce and market.
We are investing in emission reduction projects and initiatives, focusing on both our
industrial operations and the use of our industrial products. We are also undertaking energy
efficiency projects to reduce our industrial scope 1 and 2 emissions. Refer to pages 34-35 for
further details.
Where relevant technologies are not available, we seek to identify appropriate opportunities
to participate in industry and research partnerships targeting emissions reduction.
Risks and opportunities
Development of new technologies and lower costs for nascent industries may either drive
increased demand for our commodities or result in substitution and lower demand. It may
also provide opportunities to address our scope 1, 2 and/or 3 industrial emissions.
Delays in development of new technologies enabling decarbonisation of mobile equipment
may impact our ability to meet our 2050 net zero ambition, while the uncertainty associated
with these technologies may impact our operating costs.
TCFD continued
2024 Glencore Annual Report
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Additional Information
B. Physical – acute and chronic
Affected commodity/process/region
• Coal, copper, nickel, zinc
• Industrial activities
• Africa, Australia, Canada, Kazakhstan, South America
Time
horizon
S M L
Mitigation measures
Our Energy & Climate Change Standard, Tailings Storage Facility and Dam (TSF and Dam)
Management Standard and Environment Standard require our industrial assets to develop
baselines and undertake annual risk assessments in these areas as described in more detail
below.
Glencore’s TSF Framework is aligned with the ICMM’s Tailings Governance Framework
position statement, the Global Industry Standard on Tailings Management (GISTM), the
Canadian Dam Association’s Dam Safety Guidelines and the International Commission on
Large Dams. Our TSF Framework and TSF and Dam Management Standard embeds
corresponding dam design and management guidance, as well as other internal and
external guidelines to inform the requirements detailed therein.
We conduct various reviews of our TSFs, including through third-party assurance and regular
satellite monitoring, and these reviews include consideration of the impact of extreme
weather events. We have published detailed disclosure on the conformance of our TSFs with
very high and extreme consequences of failure with the GISTM. This information is available
on our website at glencore.com/sustainability/esg-a-z/tailings.
Hydrogeological monitoring, real-time geotechnical monitoring and early alerts help identify
and proactively address risks associated with flooding at our facilities. In addition,
infrastructure design, such as surface and underground drain systems and emergency
spillways, help contain excess water and prevent damage.
Monitoring of animal populations and their land and aquatic habitats and river health,
as well as developing internal site-specific nature targets, supports our operations to track
and address risks posed by climate to nature.
Our current assessment of the acute and chronic physical risks related to climate change
does not require us to make additional financial provisions for our operations or adjust the
estimated useful lives of specific assets.
Risks and opportunities
We have identified extreme weather events such as floods, hurricanes, and droughts, as well
as changes in rainfall patterns, temperature and storm frequency as risks that can affect our
industrial assets’ operating processes, including costs and capacity. Availability of water for
our industrial assets and nearby communities may be impacted by changes in climate,
resulting in increased risk of flood at some industrial assets, and increased aridity in others.
We report on our industrial assets’ exposure to water-related risks on our water microsite.
We identified several sites across Peru, Canada and Australia where flooding presents a risk
by 2030, due to its potential negative impacts on our supply chain, and disruption to our
production processes and deliveries.
The risk of an increase in frequency and severity of weather events such as extreme heat
or cold, floods or droughts, wildfires and rainfall can pose risks to nature, including river
health and animal populations, for instance in South Africa.
Severe weather events can also impact the infrastructure at our industrial assets, including
equipment and roads, as well as our tailings storage facilities, which may overflow as a result
of extreme storms, or lose structural integrity as a result of geotechnical instability arising
from flooding. Events such as flooding can also impact production and revenues due to
site downtime.
glencore.com/sustainability/esg-a-z/
water-management
TCFD continued
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Additional Information
Impacts of climate-related risks and
opportunities on our financial
planning
We recognise that disclosure of how we
allocate capital can help stakeholders assess
and evaluate our approach to mitigating
climate-related risks. We are investing in and
intend to continue our efforts to supply
transition-enabling commodities.
Approximately 65% of our total capital
expenditure on industrial assets◊ in 2024
related to our copper and cobalt, zinc and
nickel assets as outlined further below. We
expect to continue to allocate a majority of
our industrial capital expenditure to assets
that produce transition-enabling
commodities over the next three years.
The following graphic outlines our
breakdown of spend categories per
commodity:
TCFD continued
Industrial capex ◊ weighting (%)
Others
Oil
Steelmaking
Coal
Nickel
Zinc
Copper
7%
13%
45%
4%
1%
12%
Energy Coal 18%
2024
2024
48% 45%
13%
7%
18%
12%
4%
3%
3%
3%
1%
15%
9%
19%
2023
Metals and
Minerals
$4.8bn
Mobile and fixed
mining and
processing
equipment
(incl. major
overhauls
and leases,
primarily fleet)
Smelters /
Astron Energy
Coal
Handling
& Prep.
Plant
Exploration
Infrastructure
and develop-
ment drilling
Property Purchases
Other
Water and tailings
management
Deferred mining
(opencut and
underground)
Energy
products and
steelmaking
coal
$2.3bn
In 2024, our total capital expenditure on
industrial assets◊ was $7.1 billion (2023:
$6.1 billion), of which 45% was for our copper
and cobalt assets, 13% for zinc and 7% for
nickel, including in relation to:
• the development of Collahuasi copper
joint venture’s desalination and water
transportation project; and
• building the Onaping Depth underground
nickel mine in Sudbury, Ontario.
Our capital expenditure for energy products
and steelmaking coal included $695 million
for the EVR business acquired in July 2024
and extensive deferred stripping for both
steelmaking and thermal coal. $1.3 billion
(18%) of our 2024 industrial capital
expenditure related to our thermal coal
assets◊ (2023: $1.2 billion).
A meaningful level of capital expenditure
relating to scope 1 and 2 industrial emissions
reduction initiatives and opportunities has
been included in our capital expenditure
plans.
Responding to carbon pricing
We operate successfully in multiple
jurisdictions that have direct and indirect
carbon pricing or regulation. We consider
local regulation and carbon price sensitivities
as part of our ongoing business planning for
relevant industrial assets and new
investments. We expect the rising cost of
carbon will increase operating costs,
increasing the cost of production, which, in
turn, would ordinarily be passed on to end
users.
For our internal sensitivity analysis of
potential impacts associated with rising
carbon prices, we considered carbon prices
that are consistent with the IEA’s 2023 NZE
scenario, which was the scenario available in
2024:
Carbon
price
– US$/t
Advanced
economies
Emerging
markets
Developing
economies
2022
As legislated
2030
158
101
28
2040
231
180
96
2050
281
225
203
Based on our analysis in 2024, with the pass
through of carbon prices to end users, no
immediate material risks in relation to our
business were identified in connection with
cost of production for coal, copper or nickel.
Risk management
We set out our climate-related risks and
describe our processes for identifying,
assessing and mitigating these risks on
pages 86-90 and 93.
One of our principal controls for managing
risks at a Group level is to develop a Group
standard, which sets expectations of
performance for a particular topic, and forms
the basis of internal and external assurance.
Our Group standards require our industrial
assets to identify and assess impacts and
risks, including those related to climate
where relevant, to develop appropriate
responses, and to monitor and report
on progress in order to manage those
risks. Climate-related risks are prioritised,
and materiality determinations are made,
in line with the Group Enterprise Risk
Management process.
Risks identified by the industrial assets and
departments are reviewed by our Head of
Industrial Assets as part of quarterly business
reviews. These include a review of the Group
Risk Register and the actions taken to
manage these risks.
2024 Glencore Annual Report
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Additional Information
For climate-related impacts and risks,
actions may include relevant engineering
works, optimisation of operational processes
and review of asset infrastructure design and
maintenance. Where relevant, such as in the
case of water-related risks, our industrial
assets are required to assess the risks to
other stakeholders, and to incorporate
stakeholder-related considerations to assist
with decision-making in relation to
mitigating, transferring, accepting,
or controlling climate-related risks.
In 2024, we rolled out a climate change risk
assessment procedure, which provides the
methodology, scenarios and knowledge
base to be used by the industrial assets.
The results were reviewed by the CCT
and the Board.
For further information on our approach
to managing risks, including climate-
related risks, across the Group,
see the Risk management section on
page 86
Metrics and targets
Our portfolio profile provides the flexibility to
decarbonise our industrial emissions
footprint. We currently focus on our
emissions as our key metric to measure our
performance against our climate-related
targets. Refer to page 37 for a summary of
our emissions performance for 2019 to 2024.
Unless otherwise indicated, information on
our emissions presented herein does not
include EVR.
In addition to measuring CO2e emissions as
the key metric for our targets and ambition,
we also consider other factors when
assessing climate-related risks and
opportunities in line with our strategy.
TCFD continued
These are set out below, with corresponding
pages for further information:
Reducing scope 3 industrial emissions:
• Reserves and resources (see our 2024
Resources and Reserves Report)
• Production volumes (see the Industrial
activities section in this Annual Report)
• Sensitivity of CGU carrying values to
climate change scenarios (see note 1 to the
financial statements)
Continuing investment in transition metals:
• Capital expenditure by segment (see note
2 to the financial statements)
Physical risks:
• Water Risk Register (see glencore.com/
sustainability/esg-a-z/water-
management)
Remuneration:
• Directors’ remuneration report, pages 125
and 129-132
We track and report on a number of other
metrics relating to energy, land use and
waste management (see annual Glencore
ESG Data Book, which can be found at
glencore.com/publications), but we do not
currently consider these metrics material for
the purposes of assessing our climate-
related risks and opportunities.
Information on how we consider the impacts
of carbon pricing is outlined in further detail
on page 32. Details on how performance
metrics on climate-related issues are
incorporated into remuneration policies are
available in the Directors’ remuneration
report starting on page 117.
Monitoring methane emissions
Methane is a focus area for GHG emissions
performance due to its global warming
potential. It is also an important element in
safety management at underground coal
operations. Our coal industrial assets utilise
various strategies to measure and mitigate
their methane emissions.
We recognise the importance of accurate
measurement of, and strategies to mitigate,
methane emissions. Our coal assets utilise the
most accurate regulated measurement
methods available in their jurisdictions. Our
emissions reduction targets include
fugitive methane.
During 2024, we transitioned three of our
open-cut mines (Hail Creek, Clermont and
Collinsville) to the most accurate regulated
method available in Australia for open-cut
fugitive emissions measurement, Method 2
under the Australian National Greenhouse
and Energy Reporting legislation, as
amended (Method 2). Our transition to
Method 2 concluded a three-year
programme of extensive site-specific
technical studies required to comply with
Australia’s principles of transparency,
comparability, accuracy, and completeness.
This completes the transition of all of our
Australian coal industrial assets to Method 2.
We continue to monitor and review the
development of emerging technologies
for methane detection and measurement
including satellite, aerial and remote sensing
methods. We observe that such emerging
technologies would currently find it
challenging to comply with the principles
of regulated methods. We believe more
research is required, to assess what potential
role ‘top-down’ monitoring may have in
informing emissions inventory. We remain
aligned with the Australian government and
its Climate Change Authority, who consider
further work is required before such
methods can be applied to estimate
emissions inventory with transparency and
credibility. We are engaging with relevant
stakeholders and partnering with other
companies in research, and monitoring
other ’top-down’ measurement by credible
stakeholders, including the Australian
government.
Managing gas is a major safety requirement
for underground coal mining, with the
added benefit of emissions reduction.
Our Australian coal business drains gas
from coal seams impacted by mining; the
captured methane is either mitigated via
flaring or directed to power generation,
in turn reducing the mine’s emissions.
Abating fugitive methane emissions at open
cut mines is technically and operationally
challenging and there is currently not a
proven and effective abatement option.
Typically, open-cut mines are shallower than
underground mines, have lower gas
contents, and mining activities target
multiple coal seams of varying thickness,
all of which are barriers to effective gas
drainage. In addition, there is a need to
manage safe interaction between active
mining processes and gas drainage activities,
while allowing adequate time for gas capture
prior to mining.
We continue to investigate and assess
opportunities to abate fugitive emissions
feasibly and practicably at our open cut
mines. We are also working collaboratively
with our peers in the Australian Coal
Industry Research Program to address these
challenges.
2024 Glencore Annual Report
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Additional Information
During 2024, our operational footprint, or our
scope 1 and scope 2 market-based emissions,
were 27.1Δ million tonnes CO2e. This
represents a 4.1% decrease from the 28.2*
million tonnes (restated) recorded in 2023
and is largely attributable to the transition of
Koniambo nickel to care and maintenance,
partially offset by a restart of operations at
Nordenham zinc and an increase in scope
2 market-based emissions attributed to
Kazzinc. Our 2024 scope 1 and scope
2 market-based emissions represent a
reduction of 21.4% compared to the restated
2019 baseline year (34.4* million tonnes
CO2e).
Our scope 1 emissions (direct emissions)
were 16.2Δ million tonnes CO2e in 2024. This
figure includes emissions from reductants
TCFD continued
0
100
200
300
400
500
600
2023
(restated)
2024
2022
(restated)
2021
(restated)
2020
(restated)
2019
(restated)
Scope 3 - all other categories
Scope 3 - catergory 11 - use of sold products
512.0Mt
408.1Mt 407.3Mt
363.3Mt
401.8Mt 389.3Mt
Our scope 3 emissions vs
coal production
used in our metallurgical smelters along
with emissions from the combustion of
diesel and other fossil fuels directly used by
our industrial assets. It also includes the CO2
and methane emissions from the coal and
oil operations under our operational control,
which in 2024 accounted for 21.5% of our
total reported scope 1 emissions. Our 2024
scope 1 emissions represent a 10.6% decrease
on the 18.1* million tonnes (restated)
recorded in 2023, which primarily reflects
Koniambo nickel transitioning to care and
maintenance. Our 2024 scope 1 emissions
represent a reduction of 21.7% compared to
the restated 2019 baseline year (20.7* million
tonnes), driven by the managed phase-down
of our thermal coal portfolio (La Jagua,
Calenturitas, Newlands, Liddell, and Integra),
the transition to care and maintenance at
Koniambo nickel, Lydenburg and
Rustenburg ferrochrome smelters, and
abatement achieved from decarbonisation
projects estimated to total around 1 million
tonnes CO2e.
Our scope 2 market-based emissions
(indirect emissions from the generation of
electricity purchased and consumed by our
industrial assets) were 10.9Δ million tonnes
CO2e in 2024, a 7.3% increase from the 10.1*
million tonnes (restated) recorded in 2023.
The increase is largely due to the restart of
operations at Nordenham Zinc, while
emissions attributed to Kazzinc increased
due to a combination of a 3% rise in energy
use coupled with a 10% annual increase in
the emissions factor applied. Our 2024 scope
2 market-based emissions represent a
reduction of 20.9% compared to the restated
2019 baseline year (13.8* million tonnes). The
total energy use by our industrial assets was
189PJΔ in 2024 (2023 restated: 204*PJ).
1. Excludes emissions related to production from independently managed Hunter Valley Operations (HVO), Hlagisa and Wonderfontein, which are reported in
category 15 (investments).
Renewable energy sources, bundled or
unbundled with energy attribute certificates,
delivered 4.3% of our industrial energy needs
(2023 restated: 3.5%). Beyond our contractual
renewable energy claims, our operations in
eastern Canada and the DRC continue to
physically benefit from being connected to
their local grids which supply energy from
predominantly hydro-power sources.
Our transition metals businesses include
energy intensive smelting operations and,
as a result, our annual metal production
volumes are a major driver of our annual
scope 1 and scope 2 emissions.
Looking ahead, we anticipate continuing to
realise abatement opportunities identified in
our MACC, recognising that some of the
more impactful abatement opportunities in
our action plans have multi-year delivery
timelines, especially where they involve
establishing renewable energy additionality.
Our scope 3 emissions in 2024 were 389.3*
million tonnes CO2e, compared to 401.8*
million tonnes CO2e in 2023 (restated). The
3.1%* decrease was principally due to a 3.8%*
decrease in sold coal volumes that were
produced by our industrial assets, partially
offset by an 3.4%* increase in sold oil
products that were processed by our Astron
Energy Refinery.
In 2024, emissions resulting from our
customers’ use of sold coal and refined oil
products produced by our industrial assets
totalled 313Δ million tonnes CO2e (2023
restated: 325* million tonnes CO2e),
representing around 82%1 of our total scope
3 emissions.
Reducing our scope 1 and 2
industrial emissions
Our MACC enables an assessment of viable
and economic abatement opportunities
across our industrial assets, with respect to
potential scale and economics. We
undertake a uniform approach to MACCs at
a commodity department level. This delivers
a Group-wide aggregation of key
decarbonisation opportunities and actions,
which in turn supports a holistic approach to
reviewing the pipeline of initiatives from
concept to execution stages. Industrial asset-
level data is incorporated into our annual
planning cycles, supporting the assessment
and triggering of investment decisions,
including in relation to consideration of
carbon price scenarios in these
opportunities.
Our MACC continues to evolve and identify
industrial emissions reduction opportunities
across our portfolio. When practically and
commercially viable, implementation of
abatement opportunities is pursued. For
example, this may include anticipating when
increases to carbon prices and/or
technological advancement at scale make
the use of biofuels more attractive than
diesel, or when the building of renewable
power installations can sensibly replace
purchasing grid-generated power.
In 2024, we progressed efforts to reduce our
industrial scope 1 and 2 emissions through
various initiatives, including:
In Australia:
• Our underground coal mines continued to
undertake extensive gas drainage, flaring
and offsite export for power generation
and our open-cut mines maintained
haulage planning to reduce fossil fuel
consumption.
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Additional Information
• In 2024, Mount Isa Mines continued to
make progress to source indirect energy
needs from renewable sources (power
purchase agreements (PPA) with
certification).
In South America:
• Our copper industrial assets are
implementing an energy strategy aimed
at enabling the electrification of its hauling
fleet in collaboration with original
equipment manufacturers by assessing
asset-specific opportunities and emerging
technologies. Glencore actively
participates in both Komatsu’s GHG
Alliance and Caterpillar’s Pathway to
Sustainability program; two collaborative
initiatives focused on reducing emissions
from hauling fleets. We continue to
monitor development of these
technologies for their commercial viability.
• Further studies were conducted to
evaluate technologies for replacing
industrial heat processes, both low- and
high-temperature applications. As these
technologies mature, we continue to
monitor their development to secure
viable solutions when they become
commercially available and cost
competitive.
• Our industrial assets Altonorte,
Antapaccay, and Lomas Bayas currently
source their electricity through PPAs with
renewable energy certification. As part of
our copper life of asset expansion strategy
which requires the development of
projects, we are also exploring possibilities
for renewable energy options when these
projects come online.
In South Africa:
• Our ferroalloys business advanced several
renewable energy initiatives, including the
conclusion of an offsite solar PPA (with
certification), with construction
commencing in 2025 and operations
expected to start towards the end of 2026.
Construction progressed on the 25MW
on-site Rhovan solar PV facility expected
to generate some 52GWh in the first
12 months of operation. Ferroalloys is also
pursuing a project for the construction of a
35MW solar PV plant at our eastern
chrome mines with the potential to grow
this facility with onsite storage and
potential for export of energy. Multiple
other projects were successfully advanced
through the initial stages of the grid
connection process.
• Our coal business implemented a pilot
solar plant at the Tweefontein colliery
during 2023, which had its first full year of
operation in 2024. The plant is actively
reducing scope 2 emissions at the
processing facility while serving as a test
case for broader renewable energy
deployment.
• Astron Energy continues to implement
initiatives and projects as part of its energy
efficiency programme at the refinery to
reduce scope 1 emissions during the
refining process.
In Europe:
• Our Asturiana zinc smelter in Spain
acquired another PPA that will start
delivering energy in 2025. This is the third
PPA that Asturiana has secured, which
should lead to over 20% of its energy
coming from renewable sources.
• The Britannia Refined Metals refinery has a
contract (with certification) with a
renewable energy provider until 2027,
enabling it to utilise 100% renewable
energy.
TCFD continued
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Additional Information
TCFD continued
Group-level MACC for year 2026
US$/t CO2e
Group-level MACC for year 2030
US$/t CO2e
Fuel switch
Operating efficiency
Process technology
Renewables
-0.75K
-0.50K
-0.25K
0.00K
0.25K
0.50K
0.75K
Levelised Cost of Carbon （USD/CO2e t）
0K
100K
200K
300K
400K
500K
600K
700K
800K
900K 1000K 1100K 1200K 1300K 1400K 1500K 1600K 1700K 1800K
Sum of CO2e reductions (t)
Asset – Initiative
Group-level MACC for year 2035
US$/t CO2e
Fuel switch
Operating efficiency
Other
Process technology
Renewables
-0.75K
-0.50K
-0.25K
0.00K
0.25K
0.50K
0.75K
Levelised Cost of Carbon （USD/CO2e t）
Sum of CO2e reductions (t)
Asset – Initiative
0K
1000K
2000K
3000K
4000K
5000K
6000K
7000K
8000K
9000K
A MACC presents the costs or savings expected from different opportunities, alongside the
potential volume of emissions that could be reduced if implemented. MACCs measure and
compare the financial cost and abatement (reduction) benefit of individual actions based
on $/tCO2e.
A MACC shows each opportunity as an action, presented as a box above or below a horizontal
axis. The boxes above the horizontal axis indicate there is a cost to that action – the higher the
box, the higher the cost. Boxes below the horizontal axis indicate a saving from that action –
the lower the box, the greater the saving. The MACC enables comparison between actions and
annualised costs or savings. The width of the box indicates the action’s potential volume of
reduction per year, expressed as tCO2e.
The curve shape is created by ordering the actions from lowest cost to the left, to highest cost
on the right. The MACC shows the projects (actions) that are modelled to deliver emissions
reductions in the year of the MACC. Projects may overlap between the 2026, 2030 and
2035 MACCs.
Fuel switch
Operating efficiency
Other
Process technology
Renewables
-0.75K
-0.50K
-0.25K
0.00K
0.25K
0.50K
0.75K
Levelised Cost of Carbon （USD/CO2e t）
Sum of CO2e reductions (t)
0K
500K
1000K
1500K
2000K
2500K
3000K
3500K 4000K 4500K 5000K
5500K
6000K 6500K
7000K
7500K
8000K
Asset – Initiative
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Additional Information
TCFD continued
Reducing our scope 3 emissions
We aim to address these emissions by
making changes to the products and
services we purchase and to our portfolio,
recognising that for value-chain abatement
to align with just transition principles,
reduction and mitigation strategies must
consider the broader social, economic and
environmental impacts of the global
transition to net zero.
During 2024, we published our scope 3
emissions calculation methodology, which
details the organisational and operational
boundaries, data sources and key
assumptions we use to calculate and report
our emissions by scope 3 category.
As of the end of 2024, our scope 3 emissions
represented around 94%* of our emissions,
the majority of which relate to our thermal
coal portfolio. Detailed information on our
scope 3 method is set out in our 2024 Basis
of Reporting and detailed information on our
restatements is set out further below.
Between 2019 and 2024, we closed six coal
mines, La Jagua, Calenturitas, Newlands,
Liddell, and Integra, as well as Hlagisa, an
independently managed joint venture in
which we have a 23.12% equity interest.
Moving forward, we expect to do the same
with respect to at least six additional mines
by the end of 2035.
Overview of restated 2019 baseline for our scope 1, 2 and 3 emissions
excluding EVR
The below table summarises our emissions performance for 2019 to 2024
excluding EVR
2019
restated
2020
restated
2021
restated
2022
restated
2023
restated
2024
Change
2024 vs.
2019
Scope 1 – Direct
emissions (Mt CO2e)
20.7
16.4
17.1
17.4
18.1
16.2Δ
-21.7%
Scope 2 – Indirect
market-based
emissions (Mt CO2e)
13.8
11.4
12.8
12.7
10.1
10.9Δ
-20.9%
Scope 3 – Indirect
emissions (Mt CO2e)
512.0
408.1
407.3
363.3
401.8
389.3
-24.0%
Total (Mt CO2e)
546.5
436.0
437.2
393.4
430.1
416.4
-23.8%
Overview of our baseline restatements 2019–2023
Baseline and our emissions reporting
as of FY2023
2019
2020
2021
2022
2023
Our scope 1 emissions (Mt CO2e)
19.0
15.2
16.0
16.4
16.7
Our scope 2 emissions (market-based) (Mt CO2e)
13.9
11.6
13.0
12.8
10.3
Our scope 3 emissions (Mt CO2e)
520.7
414.0
412.9
368.3
405.8
Our scope 1, 2 and 3 emissions (Mt CO2e)
553.7
440.8
441.8
397.5
432.8
Baseline and our emissions reporting
as of FY2024
2019
restated
2020
restated
2021
restated
2022
restated
2023
restated
Our scope 1 emissions (Mt CO2e)
20.7
16.4
17.1
17.4
18.1
Our scope 2 emissions (market-based) (Mt CO2e)
13.8
11.4
12.8
12.7
10.1
Our scope 3 emissions (Mt CO2e)
512.0
408.1
407.3
363.3
401.8
Our scope 1, 2 and 3 emissions (Mt CO2e)
546.5
436.0
437.2
393.4
430.1
Change to our scope 1 FY2023 reporting (%)
9%
8%
7%
6%
8%
Change to our scope 2 FY2023 reporting (%)
-1%
-1%
-1%
-1%
-2%
Change to our scope 3 FY2023 reporting (%)
-2%
-1%
-1%
-1%
-1%
Change to our FY2023 reporting (%)
-1%
-1%
-1%
-1%
-1%
490
500
510
520
530
540
550
560
Restated 2019
baseline (ex EVR)
Scope 3
restatements
Scope 2
restatements
Scope 1
restatements
2019 baseline
+1.7
-0.2
-8.7
2019
553.7Mt
2019
546.5Mt
Scope 1
Scope 2
Scope 3
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Additional Information
TCFD continued
Baseline emissions restatement
This report contains our emissions data
excluding EVR for the full year 2024, as well
as a restatement of energy use and our
scope 1, 2 and 3 emissions for the years
2019–2023.
Glencore has established a fixed baseline
year of 2019 for the industrial asset emissions
(scope 1, 2 and 3) reduction targets outlined
in the 2024-2026 CATP. To enable
comprehensive and consistent tracking of
progress against targets over time, the GHG
Protocol requires a restatement of baseline
emissions when significant changes in
company structure or emissions inventory
methodology occur, including:
• structural changes such as mergers,
acquisitions, and divestments;
• changes in calculation methodologies,
improvement in data accuracy, or
discovery of significant errors; and
• changes in categories or activities
included in the scope 3 inventory.
Restatement for structural changes
Emissions from our sold industrial asset
Volcan, which was previously within the
organisational boundary, were removed
from the baseline and subsequent reporting
periods across emissions scopes. Between
2019 and 2023, this has resulted in an annual
decrease of 0.05-0.08 Mt CO2e in our scope 1
emissions, 0.15-0.22 Mt CO2e in our scope
2 market-based emissions and c.0.9-1.4 Mt
CO2e in scope 3.
For an illustrative view including EVR see the
graphic Restated industrial emissions
including EVR, on page 25.
Restatement for improvements in
data accuracy
Our CO2e emissions apply the global
warming potential (GWP) values for a
100-year time horizon of the IPCC’s Sixth
Assessment Report, 2021 (AR6), where the
granularity of the published emission factors
allows such a conversion. In 2023 we
amended our CO2e emissions to apply the
GWP values of AR6, except for certain CO2e
emissions from the extraction of coal and
decommissioned coal mines, where we
continued to apply the GWPs from the
IPCC’s Fifth Assessment Report (AR5).
During 2024, we completed the conversion
for these CO2e emissions to the GWPs of the
AR6, resulting in an increase in our scope 1
emissions of about 1%.
AR6 contains two GWP values for methane;
a methane – fossil value (29.8) and methane
– non-fossil value (27.0). In our 2023
restatement, we had consistently
implemented the methane – fossil value,
resulting in an increase of about 0.3% across
our emissions inventory reported in 2023.
However, a recent assessment of the Global
Warming Potential Values Guidance,
published by the GHG Protocol in August
2024, showed that our usage of the GWP
values for methane was not in line with the
methane GWP instructions. This correction
in approach, where the methane – fossil
value is used for methane emissions from
fossil fuel fugitive emission sources and
industrial processes, and the methane – non
fossil value is used for all other sources of
methane emissions, including the
combustion of fossil fuels, resulted in a
decrease of less than 0.1% across our
reported emissions.
During 2024, we updated our emissions
factors and material density conversions to
align with the latest available Cross Sector
Tool – Emissions Factors published by the
GHG Protocol in March 2024. This change
resulted in a 2.7% increase in our scope 1
emissions reported in the baseline year.
Restatement for methodology
changes
During 2024, three of our Australian open-
cut mines completed the implementation of
Method 2 for open-cut fugitive emissions
measurement (see page 33 of this section).
This change resulted in reduced scope 1
emissions at our Clermont and Collinsville
mines, and increased emissions at our Hail
Creek mine. Our restatement of total fugitive
emissions at the three mines over the 2019
to 2023 period results in an annual average
increase of around 0.7 million tons CO2e.
Scope 3 emissions – restatement for
enhanced value chain analysis
In 2024, we further refined our commodity
value-chain mapping and industry-average
analysis, which allows us to differentiate
between the multiple processing routes and
geographies our purchased and sold
products follow, from mined ore to first-use
product. This value-chain analysis is linked to
available national or regional industry
average emissions factors, which helps us to
further enhance our estimates of emissions
associated with upstream and downstream
value-chain processing and transportation,
in particular those reported in categories 1, 4,
9, 10, and 15.
See table Scope 3 emissions: Overview of
baseline restatements by Scope 3 category
on page 39 for further detail on the impact of
restatements on our reported scope 3
inventory.
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Additional Information
TCFD continued
Scope 3 emissions: Overview of baseline restatements by scope 3 category
Scope 3 category
2019
baseline
in Mt CO2e
Restated 2019
baseline
in Mt CO2e
Scope 3 delta
in Mt CO2e
Summary
1. Purchased goods
and services
17.8
11.8
-6.0
Improvements in data accuracy:
• Where third-party concentrate or ore is purchased from multi-commodity sources (i.e., zinc-lead or nickel-cobalt) we
have updated our emissions factors to use a mass allocation approach, which allows us to more accurately account for
the emissions embedded in the feedstock purchased. This resulted in a 5.1 million tonne reduction in reported emissions
associated with third-party feedstock purchases.
Structural changes:
• Emissions embedded in consumables purchased by divested assets (Volcan) were removed from our baseline and
subsequent reporting years.
2. Capital goods
2.3
2.2
-0.1
Structural changes:
• Emissions associated with capital goods purchased by divested assets (Volcan) were removed from our baseline and
subsequent reporting years.
3. Fuel- and energy-
related activities
(not included in
Scope 1 or 2)
5.1
4.9
-0.2
Improvements in data accuracy:
• Analysis of consumed fuels reported by our Astron Energy refinery identified that certain fuels were also produced by
the asset. As the upstream emissions associated with own-produced fuels are already accounted for in the producing
asset’s scope 1 and 2 and across other upstream scope 3 categories, we have adjusted our calculations to remove these
emissions from category 3. This resulted in a reduction in emissions reported in activity A.
• Other minor restatements in category 3 resulted from our update of material density conversions to align with the latest
datasets published by the GHG Protocol, refinements in emission factor usage to consistently apply the most
appropriate datasets across reporting years, and the removal of emissions associated with divested assets (Volcan).
• In addition to a 0.2Mt decrease in reported baseline emissions, the above restatements also resulted in a 0.2Mt decrease
in our 2023 emissions reported in category 3.
4. Upstream
transportation
and distribution
5.4
5.7
+0.3
Enhanced value-chain analysis:
• Further refinements in our value-chain mapping and trade-route analysis resulted in an increase in reported upstream
emissions associated with marine transport.
Improvements in data availability:
• Some of our industrial assets were able to collect and report additional activity data for road and rail transport
associated with purchased feedstock or sold commodities, which resulted in a minor increase in reported emissions.
9. Downstream
transportation
and distribution
3.4
3.4
-0.0
Enhanced value-chain analysis:
• Further refinements in our value-chain mapping and trade-route analysis resulted in a marginal decrease in reported
downstream emissions associated with marine transport.
10. Processing of
sold products
20.3
17.9
-2.4
Improvements in data accuracy:
• The introduction of additional data checks, which include that for each of our industrial assets we compare total annual
produced volumes with the sum of intercompany transfers, direct and indirect commodity sales, identified that across
reporting years for the purposes of our scope 3 emissions reporting we had overstated sales of zinc metal produced at
Kazzinc by c.250,000 tonnes per year. The correction of this results in a 1.5 million tonnes CO2e reduction in reported
emissions associated with downstream processing of sold products.
Structural changes:
• Emissions associated with downstream processing of sold products produced by divested industrial assets (Volcan)
were removed from our baseline and subsequent reporting years.
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Additional Information
TCFD continued
Scope 3 category
2019
baseline
in Mt CO2e
Restated 2019
baseline
in Mt CO2e
Scope 3 delta
in Mt CO2e
Summary
11. Use of sold
products
431.1
431.3
+0.2
Improvements in data accuracy:
• Material density conversions updated to align with the latest datasets published by the GHG Protocol resulted in an
increase in emissions from the use of sold oil products.
• The correction of the GWP for methane to align with AR6 and GHG Protocol guidance resulted in a minor decrease in
reported emissions associated with the use of sold coal.
15. Investments
35.3
34.9
-0.4
Enhanced value-chain analysis:
• We identified a missing downstream processing step in our estimate of scope 3 emissions for Alunorte, an
independently managed JV. Adding emissions associated with this step resulted in a 2.0 million tonnes CO2e increase in
reported emissions associated with our investments.
Improvements in data accuracy:
• We have corrected our equity share of emissions associated with the Wonderfontein coal mine, an independently
managed JV by Umcebo, also an independently managed JV, adjusting emissions to reflect the stake we hold in
Wonderfontein rather than our interest in Umcebo. This resulted in a 1.5 million tonnes CO2e reduction in reported
emissions associated with our investments.
Structural changes:
• Emissions associated with divestments have been removed from, and those associated with new investments were
added to, our baseline and subsequent reporting years.
Our Scope 3 emissions
520.7
512.0
-8.7
Update on prior Bukhtarma-
related restatement
As outlined in our 2023 Annual Report,
Glencore operates Kazzinc, which is
comprised of a number of different industrial
sites, including the Bukhtarma hydro-power
plant (Bukhtarma).
Following an assessment of the Kazzinc
operations against the GHG Protocol and
Glencore’s Emissions and Energy Reporting
Procedure we determined that we should
restate our direct and indirect energy
consumption and associated scope 2
emissions both within the location-based
and market-based approach. Refer to our
2023 Annual Report for further information.
Following discussions with ECOJER, the
Kazakh I-REC authority, Kazzinc has now
registered the Bukhtarma hydro-power
plant and obtained International Renewable
Energy Certificates (I-RECs) for the usage of
Bukhtarma-generated power by various
Kazzinc industrial sites for 2023 and 2024,
giving us the choice on whether to report
this energy use as renewable. At the time of
preparing the 2024 Annual Report, we were
in discussions regarding the renewal of the
long-term lease for Bukhtarma. We have
therefore not restated nor reported this
energy usage as renewable for 2023 or 2024,
respectively, to avoid potential volatility in
reported scope 2 emissions but would be
able to do so in the future pending
confirmation of the long-term lease.
External engagement
We believe that it is appropriate that we take
an active and constructive role in public
policy development. Evolving regulatory
developments and scrutiny of our advocacy
activities require that we hold and
communicate consistent positions on policy.
We communicate these positions both
directly through our engagement with
government representatives and policy
makers, as well as indirectly through the
industry organisations in which we hold
membership.
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Additional Information
TCFD continued
For further detail, please see our 2024
Review of Our Direct and Indirect Advocacy,
which will be available at glencore.com/
publications.
Just transition
A just and orderly transition is a global,
regional and country specific challenge
which we cannot solve alone. In our
approach we seek to work together with
governments, other businesses,
communities and other stakeholders to
mitigate impacts and accelerate the social
benefit potential that the energy transition
facilitates.
Our Just Transition Principles are set out
in our 2024-2026 Climate Action Transition
Plan on pages 26-28.
Our actions
We have determined that the relevance of
a just and orderly transition for our industrial
business is greatest in Colombia and South
Africa, where we are focusing our efforts.
Colombia
During 2024, Cerrejón met with government
representatives to discuss the need for a
national just-transition roadmap. It also
participated in discussions on the energy
transition in La Guajira, during which
Cerrejón expressed its willingness to be part
of just transition planning and activities and
detailed the activities it is currently working
on to support a just and orderly transition
in the region.
Cerrejón is supportive of economic
diversification as part of the socio-economic
component of a just and orderly transition
process. Since 2018, it has worked with
external consultants to identify and assess
diversification opportunities for the La
Guajira region. The Ministry of Mines used
the assessment’s approach and findings to
carry out a similar analysis for the Cesar
mine corridor. The consolidated findings
were published by the Colombian
Government in 2024.
Cerrejón continues to contribute to
community resilience through targeted
discretionary and non-discretionary social
contribution, including empowering
communities to implement and execute on
their own social investment projects, which
contributes to enhanced business
capabilities, and technical and professional
skills in non-mine related activities. During
2024, Cerrejón contributed nearly $23 million
across a number of different projects.
Cerrejón also continues to implement a
progressive land rehabilitation programme,
with more than three million trees planted
in rehabilitated and environmental offset
areas and over 5,000 hectares rehabilitated.
Its ongoing environmental assessments
and monitoring is used for future land use
assessments.
Prodeco initiatives to promote resilient
communities include promoting economic
diversification and income generation
through fishing, agriculture and cattle
raising projects and providing seed capital
and technical assistance for income
generation projects for former employees.
It is also developing the mine closure plan
and evaluating opportunities to install a
floating solar farm.
South Africa
In South Africa, our coal and ferroalloys
commodity businesses and Astron Energy
participate in ongoing discussions with
the national government on just transition.
In addition, we participate in a variety of
industry forums that support the country's
energy transition. Reflecting the
complexities of transforming South Africa’s
electricity supply sector, we are actively
engaging with local and national
government, to support the move towards
renewable energy in a way that is both
responsible and sustainable. We are also
engaging directly with Eskom, the national
energy provider, to support efforts to
broaden and accelerate the introduction of
renewable energy in a responsible and
sustainable manner.
We recognise that dialogue with a broad
range of stakeholders is needed for a
transparent and stable approach to energy
transition in South Africa.
Supporting solar power
Many of our coal operations are in renewable
energy development zones, where
rehabilitation efforts can involve
opportunities for renewable energy projects,
including solar power. We have evaluated
areas of land for solar PV deployment, with
the objective of meeting local energy needs
while contributing to broader national
demands through grid-sharing. These
projects are planned in partnership with
local communities, relevant authorities and
Eskom as part of our efforts to ensure they
are environmentally, economically and
socially sustainable, while creating new
opportunities for vulnerable groups
impacted by the coal transition.
Our Rhovan Renewable Energy Programme
has generated employment opportunities
for over 140 people with the vast majority of
them coming from local communities
following training in solar PV installations.
Following the installation, there will be
opportunities in maintenance and cleaning
activities with local businesses providing
such services to the Rhovan site.
In November 2024, we announced the
successful financial close of the 100 MW
Sonvanger Solar PV power plant for the
Glencore Merafe Venture’s chrome smelting
and mining activities. This project is the first
utility-scale project closed by a sole sponsor
and single independent power producer
(IPP) in South Africa. It is 100% locally owned
with 20% female ownership and is part of
wider plans to develop 5,000 megawatts of
capacity to support the expansion of
electricity infrastructure.
Supporting socioeconomic development
We engage with communities and
government representatives in our areas
of influence to identify fundamental needs.
Some of our initiatives include:
• Partnering with district and national water
providers to supply additional capacity to
host communities water frameworks.
Borehole drilling and reticulation
infrastructure forms a core part of our
mandatory and discretionary corporate
spend.
• Connecting houses to the electricity
network and working on further expansion
projects with the national service provider.
• Participating in multi-stakeholder
collaboration with other large corporate
entities to support significant
infrastructure upgrades. During 2024,
these included investing in the
replacement of a steel bridge as well as
the upgrade of the R540 road, with work
initiated in 2023 and due to complete
in 2026.
• Supporting STEM training and youth
development projects.
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Additional Information
Sustainability
Our approach
The Board’s Health, Safety, Environment and
Communities (HSEC) Committee sets the
strategic direction for our sustainability
activities and oversees the development and
implementation of our HSEC&HR strategy
and programmes and monitors
performance. It meets at least four times a
year and receives regular updates on how
our business is performing across our
internally defined, sustainability-related
material risk areas.
Responsibility for implementing and
monitoring our sustainability activities across
the Group rests with our senior management,
including the CEO, Head of Industrial Assets
and heads of our corporate functions and
commodity departments.
We take our responsibilities
to our people, to society and to
the environment seriously, and
align our internal health, safety,
environment, social
performance and human rights
(HSEC&HR) governance with
relevant international standards.
Our Group policies support the delivery of our
Values and Code, which together detail the
behaviour and performance expectations for
all our offices and industrial assets where we
have operational control.
Our HSEC&HR policies, such as our
Environment Policy, Health and Safety
Policy, Tailings Storage Facility Policy,
Social Performance Policy and Human
Rights Policy, are available in different
languages on our website at
glencore.com/who-we-are/policies
Through our HSEC&HR standards,
procedures and guidelines, we aim to
establish consistent business practices and
standards for our industrial assets. Our
industrial assets tailor their implementation
of Group standards to reflect local cultures
and challenges. These support
our commitment to be a responsible and
ethical operator.
Our Group HSEC&HR strategy outlines our
goals, priorities and objectives for our
industrial assets and, to the extent
applicable, the marketing business over the
next five years. It aligns to our Purpose and
our Values and considers our external
stakeholder expectations. Each year, we
review our strategy for material updates to
consider whether it continues to fulfil the
needs of our business and our stakeholders.
Further details on our sustainability approach,
performance and ambitions are available in
our sustainability-related publications. These
include our Sustainability Report, published
annually, with reference to the requirements
of the Global Reporting Initiative (GRI), as
well as the following publications:
• Sustainability Summary
• ESG Data Book and GRI Index
• 2024-2026 Climate Action Transition Plan
• Payments to Governments Report
• Modern Slavery Statement
• Voluntary Principles on Security and
Human Rights (Voluntary Principles)
Report
• ESG A-Z section on our website
• Water microsite, considering the
requirements of the International Council
on Mining and Metals (ICMM)’s Water
Reporting: Good Practice Guide
• Tailings storage facilities microsite, which
includes Global Industry Standard for
Tailings Management (GISTM)-aligned
disclosures.
• Basis of Reporting
Our sustainability communications
are available on our website:
glencore.com/publications
Engaging with our stakeholders
We engage with relevant stakeholder
groups with a view to building meaningful
relationships and understanding their
expectations and aspirations. Further
information on our stakeholder engagement
activities will be available in our 2024
Sustainability Report.
External commitments
We participate in a wide range of external
initiatives, supporting our commitment to
ongoing improvements to our approach and
performance across sustainability topics. Our
engagement varies from reporting on our
progress to taking a role in driving
strategic change.
We seek to align with relevant international
standards to understand, control and
mitigate our impacts. We are signatories to
the United Nations (UN) Global Compact,
aligning our strategies and operations with
its principles, which cover human rights,
labour, environment and anti-corruption. We
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Additional Information
Sustainability continued
Conflict-Affected and High-Risk Areas
(CAHRAs), 3rd Edition (OECD DDG).
We support transparency in the
redistribution and reinvestment of the
payments we make to local and national
governments. We are active participants,
both in our operating jurisdictions and at
a global level, in the Extractive Industries
Transparency Initiative (EITI). We comply
with the UK regulatory obligations under
Disclosure and Transparency Rule (DTR) 4.3A
of the Financial Conduct Authority’s
Disclosure Guidance and Transparency
Rules, and, in line with those provisions, we
publish an annual Payments to Governments
Report, detailing the material payments we
make by country and project.
As part of our commitment to responsible
product stewardship, we follow the UN’s
globally harmonised system for classification
and labelling of chemicals (GHS), the
European Union’s REACH regulations on the
registration, evaluation, authorisation and
restriction of chemicals, and the London
Bullion Market Association (LBMA)
Responsible Gold guidance. Where
appropriate, we participate in the REACH
consortia related to the materials we
produce; these include the consortia for zinc,
cobalt, cadmium, sulphuric acid, lead
and precious metals.
Risk management and assurance
Our management of HSEC&HR-related risks
aligns with Glencore’s general approach to
the identification, assessment and
mitigation of risk. Our industrial assets use
our enterprise risk management framework
to identify and assess hazards, including
those with potentially major or catastrophic
consequences, and to develop plans
to address, and eliminate or mitigate the
related risks. For each of the identified
catastrophic hazards we have implemented
a standardised approach to identifying and
understanding their causes and controls
that includes critical control verifications.
Group Internal Audit and Assurance (GIAA)
provides independent and objective
assurance to help strengthen governance
and controls. The Audit Committee reviews
and approves the risk-based GIAA audit plan
and the HSEC Committee reviews and
endorses relevant components of the plan.
For HSEC&HR related risks, GIAA provides
assurance over a broad range of
sustainability topics as well as the systematic
management of the catastrophic hazards
and their controls. Internal and external
senior subject matter experts participate in
this assurance programme.
Multi-disciplinary assessments allow us
to audit complex issues from a range
of viewpoints for a more robust appraisal.
We use these assessments to review
operations and activities with different risk
factors, such as tailings storage facilities,
underground operations, open pit mines
and metal processing plants.
The HSEC Committee reviews the results
of these audits, together with their key
findings, and the corrective actions agreed
to by the industrial assets to strengthen their
management of the identified risks.
recognise the UN’s Sustainable
Development Goals (SDGs) and their
systematic global approach to society’s
overall development. We believe that we can
play a role in supporting our host
governments to meet the SDGs.
Our policy framework aligns with the
International Labour Organization (ILO)
Declaration on Fundamental Principles and
Rights at Work, the UN Universal Declaration
of Human Rights, and the UN Guiding
Principles on Business and Human Rights
(UNGPs). In addition, we are members of the
Voluntary Principles Initiative and operate in
accordance with the Voluntary Principles on
Security and Human Rights (Voluntary
Principles), and the International Finance
Corporation’s Standard 5 on Involuntary
Resettlement. We articulate these
commitments in our Code of Conduct and
our Human Rights Policy.
We have been a member of the ICMM since
2014. We endorse its Mining Principles and
position statements, and since 2023, report
against its Performance Expectations.
We are committed to mitigating the risk of
modern slavery, child labour and other
human rights risks. Our annual Modern
Slavery Statement sets out the steps we take
to identify and address these risks in our
industrial activities and our supply chain.
Our responsible sourcing strategy considers
the production, sourcing of metals and
minerals and the procurement of goods and
services. Our Responsible Sourcing Policy
and our Supplier Code of Conduct form the
basis of our risk-based supply chain due
diligence programme that for metals and
minerals aligns with the Organisation for
Economic Cooperation and Development’s
(OECD) Due Diligence Guidance for
Responsible Supply Chains of Minerals from
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Additional Information
Sustainability continued
2024 material topic
Public disclosures
Annual
Report
Sustainability
Report
Modern
Slavery
Statement
Payments to
Governments
Report
2024-2026
CATP
Ethics and
Compliance
Report
Voluntary
Principles
Report
Water
Microsite
TSF
Microsite
Climate change
Water
Land management
Biodiversity
Diversity, equity and
inclusion
Social performance
Catastrophic hazards
(incl. tailings dam
management)
Occupational health
Workforce safety
Ethics and compliance
Transparency
Responsible sourcing
Human rights
Indigenous Peoples
Just transition (emerging
topic)
Detailed information available
High-level information available
No information available
Catastrophic hazards: glencore.com/
sustainability/esg-a-z/catastrophic-
hazard-management
Workforce safety: glencore.com/
sustainability/esg-a-z/safety
Ethics and Compliance: glencore.com/
sustainability/ethics-and-compliance
Transparency: glencore.com/who-we-
are/transparency
Climate change: glencore.com/
sustainability/esg-a-z/climate-change
Water: glencore.com/sustainability/
esg-a-z/water-management
Land management: glencore.com/
sustainability/esg-a-z/land-management
Biodiversity: glencore.com/sustainability/
esg-a-z/land-management#biodiversity
Diversity: glencore.com/sustainability/
esg-a-z/our-people#diversity
Responsible sourcing: glencore.com/
sustainability/esg-a-z/responsible-
sourcing-and-supply
Human rights: glencore.com/
sustainability/esg-a-z/human-rights
Indigenous Peoples: glencore.com/
sustainability/esg-a-z/
communities#Indigenous
Occupational health: glencore.com/
sustainability/esg-a-z/health
Read more on these topics here:
Materiality assessment
We regularly undertake a sustainability-
related materiality assessment that
considers input from within our business
and from external sources. We use this
assessment to inform our HSEC&HR strategy
and our sustainability-related disclosures
and publications.
During 2022, we undertook a third party-led
materiality assessment with internal and
external stakeholders to validate the
appropriateness of our existing material
topics and to identify emerging issues.
Consolidating the internal and external
stakeholders’ prioritisation resulted in the
identification of the topics listed in the table
below as being material.
During 2024, we reviewed and updated our
salient human rights risks. Salient human
rights risks are those that have the most
severe and widespread negative impact on
people. A key objective was to gather
insights from a diverse range of external
stakeholders to have a broad perspective on
our current and future salient human rights
risks. Understanding which risks are
considered ‘salient’ allows us to focus our
efforts and resources to proactively prevent,
mitigate and account for how we manage
the potential impacts.
Responding to evolving sustainability
disclosure requirements
We are reviewing the materiality assessment
requirements set out by the IFRS’s
International Sustainability Standards Board,
which are expected to be adopted in the UK
through its Sustainability Reporting
Standards and the European Union’s
Corporate Sustainability Reporting Directive.
In due course, we will adapt our approach to
materiality assessments to meet relevant
reporting requirements.
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Additional Information
Sustainability continued
Meeting our targets
Our policy architecture supports our efforts to meet our Group HSEC&HR targets. In 2024, we continued to implement our policy framework documents through a series of workshops and training
programmes. Our industrial assets periodically undertake gap assessments against revised HSEC&HR standards, and where gaps are identified, improvement actions are developed and progressively
completed. Both Group HSEC&HR and our industrial commodity departments review progress against our Group HSEC&HR targets on a monthly or quarterly basis, depending on the target.
Group HSEC&HR targets
2024 progress*
Risk management and governance
Implement a proactive risk-based approach to prevent
HSEC&HR incidents.
Our Enterprise Risk Management Standard includes our approach to catastrophic risks and the need to identify and
monitor critical controls. Our industrial commodity departments annually present their risk registers and material
controls to eliminate or mitigate the risks. Risks identified by our industrial assets and commodity departments are
reviewed by our Head of Industrial Assets as part of quarterly business reviews. These include a review of the Group
Risk Register and the actions taken to manage these risks.
No catastrophic tailings storage facility (TSF) dam failures.
We recorded no catastrophic TSF dam failures.
Conformance with GISTM in accordance with our
ICMM commitments.
We updated our GISTM disclosures on TSFs with a ‘Very High’ and ‘Extreme’ Consequence Classification, including
providing updates on our progress in the areas of improvement disclosed in 2023. We are working towards meeting
the ICMM’s 5 August 2025 deadline for GISTM disclosures on TSFs with all other Consequence Classifications. We
will continue to implement the requirements of the GISTM. Further information is available on our website
glencore.com/sustainability/tailings.
Health
Year-on-year reduction in the number of new occupational disease
cases (excluding new cases from legacy exposures).
In 2024, we recorded 281 new occupational disease cases (2023 restated: 163 cases). Ongoing improvements in our
occupational disease identification, classification, and management processes contributed to this increase.
Safety
No work-related fatalities.1
It is with deep sadness that we recorded the loss of fourΔ lives in work-related incidents at our industrial assets during 2024.
Environment
In our 2024-2026 Climate Action Transition Plan, we outlined our
responsible thermal coal decline strategy and holistic scope 1, 2 and 3
industrial emissions reduction targets of 15% by the end of 2026, 25%
by the end of 2030 and 50% by the end of 2035 (all against a restated
2019 baseline). We also further reiterated our ambition of achieving
net zero industrial emissions by the end of 2050, subject to a
supportive policy environment.
We recorded 416.4 Mt of scope 1 and 2 market-based emissions, and scope 3 emissions (2019 restated: 546.5Mt). This
decrease is largely attributable to the managed decline of coal production in our operationally controlled industrial
assets, which results in lower customer use of our sold coal volumes. For further information see Baseline emissions
restatement in the TCFD section and our 2024 Basis of Reporting. We are currently assessing how best to integrate
the EVR assets into our climate transition strategy, recognising that the transition away from steelmaking coal for
steel production will be slower than thermal coal. Our performance is presented excluding EVR.
Strengthening the reporting of performance against water targets for
all assets located in water-stressed2 areas.
As of the end of 2024, 37% of the industrial sites that we track for our water targets are in water-stressed areas. We
have finalised the assessment of material water-related risks and set local water targets for our industrial assets
located in water-stressed areas and we are implementing actions to reduce impacts and improve performance
against these targets. Our water microsite provides further information on our activities in this space:
glencore.com/sustainability/esg-a-z/water-management.
No major or catastrophic1 environmental incidents.
We recorded no major or catastrophic environmental incidentsΔ.
Social performance and human rights
Do not cause or contribute to incidents resulting in severe3 human
rights impacts.
We did not cause or contribute to incidents resulting in severe human rights impacts.
1. Refer to the 2024 Basis of Reporting for further information on how these metrics are recorded.
2. We define water-stressed areas as having a high to extremely high or arid and low water-use baseline water stress, as per the World Resources Institute definitions.
3. Severe is the equivalent of catastrophic and major on Glencore’s incident classification scale. For human rights, a catastrophic incident is one with a gross human rights violation or grave systemic human rights
impacts and a major incident involves an isolated grave or serious abuse of human rights.
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Additional Information
Sustainability continued
TSF management
Over the years, a small number of high-
profile TSF failures at the operations of large
mining companies have resulted
in catastrophic consequences.
We have a robust governance process in
respect of our TSFs and we monitor them
for integrity and structural stability. Flooding
and seismic activity are the main natural
phenomena that may affect TSFs.
Our industrial assets evaluate natural
phenomena and incorporate these
considerations into their TSF designs where
relevant. In addition, our TSFs undergo
regular external inspections.
We recognise the severe consequences of
TSF failures, including potential human
rights impacts. We require our industrial
assets to conduct human rights risk
assessments to identify and mitigate the
risks to communities, environment and our
workforce related to TSFs.
We continue to manage closed TSFs
responsibly post-closure until they reach a
state of safe closure. We regularly inspect
our facilities, and external experts conduct
independent inspections and reviews.
Further information on our approach to
tailings management is available on our
website glencore.com/sustainability/
tailings. It provides an overview of our
approach towards managing our TSFs and
includes details on our TSFs.
Performance during 2024
We target zero major or catastrophic
incidents, which we achieved during 2024.
During 2024, we continued to report on our
conformance to the GISTM for our TSFs with
‘Very High’ or ‘Extreme’ Consequence
Classifications. Based on our ongoing TSF
management systems and the independent
third-party assessments that we have in
place for these TSFs, we believe that we have
identified all gaps in conformance and are
managing these appropriately.
Workforce safety
Safety, as one of Glencore’s Values, drives
how we do business, and the safety of our
workforce always comes first. We believe
that any loss of life in the workplace is
unacceptable and that injuries are
preventable. We recognise that we are all
responsible for providing and maintaining a
safe workplace. Our business inherently
exposes some of our workers to safety risks.
SafeWork is Glencore’s approach to
eliminating work-related fatalities. SafeWork
has a set of minimum expectations and
mandatory Fatal Hazard Protocols, Life-
Saving Behaviours, and safety tools, which
our industrial assets must implement. We
believe consistent application of SafeWork
through strong, visible leadership drives a
culture of safe operating discipline and will
get our people home safe.
We require an effective safety management
system at each industrial asset to meet both
legislative and SafeWork requirements,
provide a structured risk-based approach for
the identification and management of safety
risks, systematically assess our performance,
and identify and share lessons learned from
incidents.
We regard reporting of high potential risk
incidents (HPRIs) as part of our strategy to
prevent repeat incidents and, as such, we do
not target a reduction in this metric. The
internal reporting of HPRIs allows for the
identification of activities that need
prioritising to advance our learning and
improve safety performance.
Contractor management
We recognise that contractor safety incidents
are a contributing factor to our safety
performance. Our contractors and suppliers
are expected to support us in our efforts to
eliminate work-related fatalities and injuries.
Our Contractors and Suppliers HSEC&HR
Management Standard sets out the
mandatory requirements for our industrial
assets’ management of contractors and
suppliers with respect to our HSEC&HR risks
and compliance against our HSEC&HR
requirements. Our commitment to improve
our safety performance was a key driver in
the development and implementation of the
standard.
The standard requires all our industrial
commodity departments to conduct a risk
assessment to identify, assess and define
controls for the management of HSEC&HR
risks, opportunities and impacts arising from
the use of contractors and suppliers and
their work.
The implementation of the standard is
initially focused on safety, with various
initiatives to improve leaders’ capability to
manage contractors, help prevent safety-
related incidents and share learnings from
HPRI investigations.
Our approach to managing our
HSEC&HR-related material
topics supports the delivery of
the Group’s strategic priorities.
Catastrophic hazard
management including tailings
storage facility management
We define catastrophic events as those with
severe consequences that could cause
widespread loss of life or significant
environmental harm or result in major
reputational or financial damage. We are
committed to eliminating catastrophic
incidents at our industrial assets.
We recognise the exceptional nature of such
events and have developed specific
programmes to proactively identify, monitor
and mitigate catastrophic hazards within
our industrial business. We review our
management of catastrophic risks to
understand whether they are adequately
controlled. We require our industrial assets
to put in place appropriate management
and mitigation measures.
GIAA oversees our internal audit
programme, which considers our
catastrophic hazards and critical control
management, using both internal and
external expert assessors. It gives particular
attention to identifying catastrophic hazards,
their critical controls and management
plans, as well as the effectiveness of
verification and reporting processes. The
HSEC Committee reviews the findings from
the catastrophic hazard audits.
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Additional Information
Sustainability continued
Performance during 2024
We are saddened to report the loss of fourΔ
lives at our operations during 2024, having
also recorded four work-related fatalities in
2023. All loss of life is unacceptable, and we
are determined to eliminate work-related
fatalities.
In 2024, our total recordable injury frequency
rate (TRIFR) was lower than in the previous
year at 1.89Δ (2023 restated: 2.22*), while our
lost time injury frequency rate (LTIFR)
decreased to 0.71Δ (2023 restated: 0.80*).1 Our
2024 performance reflects the lowest
recorded TRIFR and LTIFR in the past
decade.
In 2024, our HPRIs totalled 497* (2023: 532*).
The majority of HPRIs related to mobile
equipment and working at heights; around
86% resulted in no injuries.
Occupational health
We are committed to protecting the health
and promoting the wellbeing of our
workforce and the residents of our host
communities. We do this by creating healthy
workplaces and identifying and managing
potential health risks, impacts and
opportunities. We strive to manage health
hazards exposure at source.
By their nature, some of our activities may
expose our workers to occupational hazards.
We implement a risk-based approach that
underpins the continual improvement of our
understanding and control of health
hazards, with the goal of eliminating
occupational diseases in our workplaces.
We use a variety of on-site programmes to
assess and manage exposure to health
hazards, support workers with injuries and
occupational diseases, and identify and
assess the physical needs of our workers.
Where appropriate, we extend these health
programmes to our host communities, to
combat regional health issues and promote
healthy lifestyles.
Several of our industrial assets, including
those in Colombia, Peru, and Canada, also
identify and assess the psychosocial
wellbeing needs of their workers. To assist
with the implementation of these
requirements, we have developed tools to
support our industrial assets in identifying
and assessing risks and opportunities related
to psychosocial wellbeing in their operating
context
We also identify opportunities to promote,
educate and support our workers in making
healthy lifestyle choices, and lead a safe and
healthy life.
Performance during 2024
During 2024, we recorded an increase in the
number of new cases of occupational
disease, at 281* cases (2023 restated: 163*).
Ongoing improvements in our occupational
disease identification and classification
contributed to the increase in reported
occupational disease cases.
In 2024, we advanced our risk-based
strategy for identifying and managing health
hazards, emphasising potential health
consequences. This included the further
development of Glencore Exposure Action
Levels (GEALs) for prioritised health hazards.
The GEALs established internal benchmarks
to initiate actions aimed at mitigating
exposures to critical health hazards.
Throughout the year, our GEALs specifically
targeted lead, diesel particulate matter and
respirable crystalline silica, while also
assessing other health risks that could be
managed using a similar methodology.
Water
We recognise that water is an increasingly
precious resource and that it is essential for
many of our industrial activities. Some of our
industrial assets are in water-stressed areas
and share access to water with other local
water users, while other industrial assets
manage surplus water that may involve
dewatering activities and flood protection
measures.
Regardless of their location, we require our
industrial assets to undertake detailed
assessments of their local environmental
conditions during their operation and as part
of operational changes in their lifecycle, to
develop water management strategies to
maximise the efficient and sustainable use
of this important natural resource.
Stakeholder concerns around the ongoing
availability of water, security of access and
the potential for water contamination have
increased over the past decade in response
to extreme climatic events. We recognise
that access to safe and clean water and
sanitation is essential to the healthy
functioning of ecosystems and the services
they provide. We acknowledge that access
to water is integral to wellbeing and
livelihoods and the spiritual and cultural
practices of many communities.
Our industrial assets consult their host
communities and other relevant local water
users to understand local priorities and seek
to collaborate on sustainable solutions
within our water catchments.
Performance during 2024
In 2024, our overall water input2 was
846Δ million m3 (2023 restated3: 981* million
m3). The decrease is primarily related to the
sale of Volcan.
Our industrial sites operating in water-
stressed areas are implementing action
plans to reduce their impacts and improve
their performance. They have set internal
targets, with some having more than one
target to cover different risks. The targets
predominantly relate to reducing or
improving water consumption, catchment-
level conditions and water quality; some
targets also relate to habitat restoration and
improving water treatment, groundwater
and compliance.
Further information on our activities in this
space can be found on our water microsite:
glencore.com/sustainability/esg-a-z/
water-management.
Closure planning
Many of our industrial activities are finite. We
recognise that we are temporary custodians
of the land on which we operate, and we are
committed to responsible land ownership
and meeting a set of objectives and criteria
relating to post-closure land use that are
agreed with relevant authorities following
consultation with a broad range of
stakeholders.
1. Our 2023 results were restated, driven by a correction in reporting of data input and classification at a limited number of our industrial assets.
2. Water input includes water that is withdrawn from the environment (surface water, groundwater, seawater, precipitation, or water that is entrained in ore extracted from the ground) or provided by third parties
(this covers supplied potable water and water of lower quality, e.g., treated wastewater that can be used for production purposes).
3. Our 2023 results were restated, driven by an improvement in our estimation approach at one of our industrial assets.
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Additional Information
Sustainability continued
restore the land over the life of an industrial
asset. We require our industrial assets to have
closure plans that could be initiated at any
time whether planned, unplanned or
temporary closure and to consult with local
communities on the development of their
closure plans. We develop financial estimates
for closure planning, with financial assurance
often provided to government agencies prior
to development or expansion. Our industrial
assets are required to regularly review their
closure plans to ensure they remain fit for
purpose and align with the industrial
asset’s lifecycle.
Our Closure Planning Standard requires our
industrial assets to assess their closure
maturity using principles within the ICMM’s
Closure Maturity Framework. This considers
integration into life of asset planning,
knowledge base, closure vision, principles
and objectives, post-closure land use,
stakeholder engagement, assessment of
risks and opportunities, closure activities,
success criteria, progressive closure, social
and economic transition, closure costs,
closure execution planning, monitoring,
maintenance and management and
successful transition.
Performance during 2024
During 2024, we strengthened our oversight
over our industrial assets nearing the closure
phase of their operations, including
reviewing their approach. For our industrial
assets, regardless of their position in their
lifecycle, we are requiring a stronger closure
planning approach. In early 2025, senior
management representatives visited several
industrial assets as part of a closure planning
technical knowledge share.
Nature
Our industrial activities have the potential to
impact surrounding ecosystems by direct
operations during the industrial asset’s
lifecycle. We are committed to minimising
and mitigating the impacts of our industrial
assets on nature. We recognise that there is
an opportunity for us to contribute to the
protection of nature, by implementing the
mitigation hierarchy and offsetting some of
our impacts that cannot be mitigated or
restored. We also have ongoing workstreams
to mitigate, manage and reduce our
industrial activities’ impacts on nature and
natural capital. In accordance with our
nature strategy, we continue to evaluate
how our industrial assets can achieve no net
loss of biodiversity.
From project design to operational closure,
we focus on reducing our physical footprint
on land, identifying, managing and
addressing our actual and potential impacts
to biodiversity, by applying the principles of
the mitigation hierarchy (avoid, minimise,
restore and offset).
We require our industrial assets to establish
a robust environmental and socioeconomic
knowledge base and to develop risk-based
biodiversity action plans and site-level
biodiversity targets to drive progress
in this key area.
Our industrial assets’ land stewardship and
biodiversity management plans can include
measures such as, preliminary clearing
works, habitat relocation, flora and fauna
conservation, invasive species control and
fire and grazing management.
We require that, where feasible, our
industrial asset plans support the
continuation or enhancement of land
practices that benefit host communities,
such as grazing and other agricultural
activities, while considering impacts to
ecosystems.
As an ICMM member, we commit not to
conduct any exploration, drilling or mining
in UNESCO World Heritage areas and
International Union for Conservation of
Nature (IUCN) category I-IV protected areas
(‘no-go’ areas), and not to put the integrity of
such properties at risk. Our industrial assets
work to avoid the loss of any IUCN Red List
threatened species.
We welcome the development and
publication of the recommendations for the
Taskforce on Nature-related Financial
Disclosures (TNFD). We have already
incorporated various elements, such as the
TNFD’s Locate, Evaluate, Assess, Prepare
(LEAP) risk process into our environmental
governance framework for implementation
at our industrial assets. We continue to
evaluate the recommendations of the TNFD
and their application to our business.
Performance during 2024
Where appropriate, we require our industrial
assets to develop biodiversity management
plans or update existing plans based on the
outcomes of biodiversity risk assessments. In
2024, we continued to progress a LEAP1
assessment across our industrial assets,
focusing on land owned or leased.
1. LEAP: the Taskforce on Nature-related Financial Disclosures (TNFD) has developed an integrated assessment process for nature-related risk and opportunity management called LEAP, which stands for: Locate your
interface with nature; Evaluate your dependencies and impacts; Assess your risks and opportunities; and Prepare to respond to nature-related risks and opportunities and report.
We believe this is possible by integrating
closure planning throughout the life of asset
with the ultimate aim of achieving safe and
stable landforms and sustainable outcomes
that consider our Just Transition Principles.
We are planning to close several industrial
assets within the next five years and we
recognise that our closure planning and
execution should align with the ICMM's
Closure Maturity Framework. This provides
confidence to our stakeholders that we take
our stewardship of the land seriously, and
work towards a just and orderly transition for
our workforce and the communities living
near our industrial assets as our operations
approach closure.
A core component of our operations’
lifecycle is progressive rehabilitation. Where
active operations have ceased, we review
opportunities for restoration and
rehabilitation in the previously operated
areas. Progressive rehabilitation has benefits
that include reducing an operation’s
footprint, improving the visual appeal of the
landscape, and reducing dust, erosion, and
sedimentation, as well as improving
conditions for local communities and future
land users.
To support progressive rehabilitation, when
land becomes available, our industrial assets
may undertake various actions in earlier
lifecycle stages, such as the excavation and
preservation of topsoil and overburden from
areas designated for operations, prior
to development.
Our industrial assets develop closure plans,
including progressive rehabilitation
programmes, where feasible, to incrementally
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Sustainability continued
Climate change
We support the global climate change goals
outlined in the United Nations Framework
Convention on Climate Change and the
Paris Agreement to limit the rise in global
temperature to well below 2°C by the second
half of this century.
The world requires a global transformation
of energy, industrial and land-use systems to
achieve the goals of the Paris Agreement
and the SDGs. We believe this transition is a
key part of the global response to the
increasing risks posed by climate change.
As one of the world’s largest diversified
natural resource companies, we have a key
role to play in supporting the global
transition to a low-carbon economy. We are
committed to supporting the transition by
supplying the transition-enabling
commodities needed for the energy systems
of tomorrow, while continuing to responsibly
serve the energy needs of today.
Information in response to the requirements
of the Task Force on Climate-related Financial
Disclosures is set out in the TCFD section on
pages 24 to 41.
Human rights
We recognise that we have the potential
to impact human rights directly through
our operations, or through our relationships
with business partners. We are committed to
respecting human rights and actively support
our employees, business partners and others
to understand and meet this commitment.
We uphold the dignity, fundamental
freedoms and human rights of our people,
communities and others potentially
affected by our activities.
We require our industrial assets to conduct
regular human rights training for their
workforce, with a focus on those workers in
positions exposed to human rights concerns,
such as security. This covers general human
rights awareness during day-to-day activities
for our wider workforce, as well as focused
training on the Voluntary Principles for our
security employees and contractors.
Enabling complaints and
grievance processes
We require our industrial assets to have in
place local complaints and grievance
processes that meet the UNGPs’ effectiveness
criteria. This means they are designed to be
legitimate, accessible, predictable, equitable,
transparent, and rights-compatible. These
processes encourage people to raise issues in
a manner that respects the rights of
the complainant. Where people have
complaints or grievances, we aim to
investigate and resolve them at the local
level. We require our industrial assets to
investigate and record all complaints.
We do not allow any form of punishment,
discipline, or retaliatory action against
people for speaking up or cooperating with
an investigation.
Security
Our business faces complex security
challenges which are a function of
geopolitics, industrial asset locations and the
evolution of emerging threats. Globally, there
is an escalation in geopolitical instability and
threat. For our industrial assets, maintaining
security is essential to providing a safe
working environment, protecting our assets,
and managing our relationship with the
community. We provide resources, including
guidelines and tools, to support our
businesses in identifying and appropriately
managing security threats and risks.
We are committed to working alongside our
host communities and security-related
stakeholders in a way that protects the
security of our workforce and the communities
that interact with our industrial assets. We do
this in a way that respects human rights and
aligns with Glencore’s Values, our
commitment to operating responsibly and
ethically, and the Voluntary Principles.
Performance during 2024
We did not cause or contribute to incidents
resulting in severe human rights impacts.
During 2024, we initiated a review of our
salient human rights risks. Working with a
third-party consultant, we engaged with
over 40 internal and external stakeholders
and rightsholders to canvass a diverse range
of perspectives on salient human rights
relevant across our industrial activities and
supply chain. The saliency assessment aims
to support the implementation of human
rights due diligence, to improve the
management of human rights-related risks.
We also continued to implement our regional
security learning forums, building on the
regional security workshops held in 2023,
with particular focus on high risk or volatile
jurisdictions. These forums take a cross-
functional approach and include security,
social and human rights, procurement,
compliance and legal practitioners from
across our operating regions. Open dialogue
has supported peer-learning and
collaboration on security-related challenges
and opportunities for enhanced consistency
of security practice and engagement.
Indigenous Peoples
Some of our industrial assets are located on or
near the traditional territories of Indigenous
Peoples. Our approach aligns with the ICMM
Position Statement on Indigenous People
and Mining, which requires mining projects
located on lands traditionally owned by or
under customary use of Indigenous Peoples
to respect Indigenous Peoples’ rights,
interests, special connections to lands and
waters, and perspectives.
We respect the rights, perspectives, interests,
and aspirations of Indigenous Peoples and
acknowledge their right to maintain their
culture, identity, traditions and customs.
We adopt and apply engagement and
consultation processes that seek the
meaningful participation of Indigenous
communities in decision making that is
consistent with their traditional decision-
making processes. We seek, through good
faith negotiation, to reach mutually
beneficial agreements with Indigenous
Peoples who have an interest in or
connection to the land on which we operate.
Performance during 2024
In 2024, we engaged in internal dialogue with
Indigenous engagement specialists from
across our industrial assets as part of our
efforts to align with the updated ICMM
Indigenous Peoples Position Statement.
Part of this work included reviewing the
engagement practices of our industrial assets
that are on, or near, the traditional territories
of Indigenous Peoples to learn from good
practices and to support a consistent approach
regardless of our operating jurisdiction.
Social performance
Our activities can make a significant
contribution to the national, regional and
local economies through the production
and marketing of commodities that help
provide the basic building blocks for
development. We provide employment and
training, business partner opportunities, tax
and royalty payments and other levies to
governments that help provide essential
services, socioeconomic development and
environmental stewardship.
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practice, and embed the framework at our
industrial assets. For further information on
the socioeconomic benefits accrued via our
payments to governments of taxes, royalties
and other levies, see our forthcoming 2024
Payments to Governments Report, which
will be published on our website.
Through the development of the framework,
we have strengthened our approach to capture
our direct social contribution performance,
which takes into account our discretionary
(that is, voluntarily undertaken at Glencore’s
discretion) and non-discretionary (for example,
linked to operating permits) payments.
Further information on our direct social
contribution in 2024, including discretionary
and non-discretionary payments, will be
provided in our 2024 Sustainability Report and
ESG Databook, which will be available on our
website at glencore.com/publications.
Responsible sourcing and supply
Our Responsible Sourcing Programme
considers the sourcing of metals and minerals
and procurement of goods and services.
We identify and assess modern slavery, child
labour and other human rights-related risks
within our supply chains.
Our Responsible Sourcing Policy sets out our
comprehensive risk-based supplier risk
management framework. We utilise this
framework to identify, assess and manage key
risks (including modern slavery, child labour
and other human rights abuses) in our goods,
services, metals and minerals supply chains.
Our approach includes due diligence,
selection, on-boarding, and monitoring of
suppliers, through to corrective actions and
disengagement. Due to differing requirements,
we split our process of due diligence between
the procurement of goods and services and
the sourcing of metals and minerals.
Sustainability continued
We aim to minimise adverse impacts from our
activities and to build partnerships to support
sustainable development and growth.
Stakeholder engagement
Through meaningful stakeholder engagement
and integration of social performance into our
core business, we support the advancement of
the mutual interests of our host communities,
broader society, and our industrial assets. With
activities ranging from exploration to mines
and mineral processing facilities to industrial
assets in closure, we are present in a hugely
diverse range of geographies and cultures
around the world. Some of our industrial assets
operate in challenging sociopolitical contexts
and we remain committed to working to help
find and implement solutions to social issues
and to support the building of resilient and
peaceful communities.
As a member of the societies where we
operate, we work in partnership with
government, civil society and development
agencies to share knowledge, build capacity
and contribute to enduring positive social and
economic outcomes. We require our industrial
assets to implement a range of engagement
activities designed to be relevant and
appropriate for different stakeholders,
including vulnerable groups, with access
to local-level complaints and grievance
processes (see the Human rights section
on the previous page for more information).
Social contribution
In addition to our employment, local
procurement and taxes, royalties, and other
levies, we seek to make a positive
contribution to the social and economic
development of our host communities
and society more broadly through our social
investment programmes.
Our strategic objective is to advance
socioeconomic development and
opportunities by partnering with
communities to build resilience and reduce
dependency on our operations. This is
challenging when the immediate, short-term
needs in many of our communities are high.
Our aim is to focus our efforts on developing
programmes that contribute to longer-term
social objectives through activities such as
enterprise and job creation, education, health
and wellbeing and capacity building.
We base our socioeconomic development
activities on the resources, needs and plans
identified at a local or regional level, which is
informed by relevant data gathering and
community engagement.
Performance during 2024
During 2024, we launched our Social
Contribution Framework at our inaugural
social contribution workshop. The workshop,
which was opened by the CEO and senior
management, was attended by over 90
senior managers and cross-functional
practitioners from across our business. The
workshop considered the role of our social
investment and community partnerships as
enablers of socioeconomic opportunity in
the communities in which we operate.
The framework articulates the goals,
operating principles, and governance of our
industrial assets’ social contributions for
enhanced business performance and
sustained development outcomes for
stakeholders. The framework has moved
away from ‘investment’ and towards
‘contribution’ to reflect the spirit of co-
development and partnership, and our goal
to be an enabler of socioeconomic
opportunity everywhere we operate.
We are supporting the rollout of the
framework with a programme of local
capacity building to elevate skills, enhance
Further details on our approach are included
in our annual Modern Slavery Statement,
which is available on our website at
glencore.com/publications.
Performance overview 2024
In 2024, six refineries producing London
Metal Exchange (LME) and/or LBMA brands
successfully passed third-party assessments,
in order to meet the LME’s and LBMA’s
responsible sourcing requirements.
The following refineries passed LME
assessments: Murrin Murrin, Queensland
Metal’s Copper Refinery, Kazzinc, Nikkelverk,
CCR Refinery, Asturiana de Zinc, Britannia
Refined Metals (BRM), Lomas Bayas and
Pasar. In addition, Kazzinc, CCR Refinery and
BRM also passed LBMA assessments.
Our copper and cobalt industrial assets in
the Democratic Republic of the Congo,
Kamoto Copper Company SA, and Mutanda
Mining S.A.R.L., successfully passed third-
party responsible sourcing audits and
renewed their conformance status, which
supports both industrial assets to meet
customer expectations. Of our remaining
three sites, Portovesme previously
underwent LME assessments, while
Nordenham and CEZinc, are scheduled for
third party assessments in early 2025.
In 2024, we renewed our limited assurance
through a third-party expert on our level of
conformance in 2023 with the European
Union’s Conflict Minerals Regulation that
relates to the import of materials into Europe.
The assessment concluded that our due
diligence management system complies, in all
material aspects, both with the EU’s Conflict
Minerals Regulation and with the OECD DDG.
Further information is available on our
website: glencore.com/sustainability
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Ethics and compliance
We are committed to operating
responsibly and ethically
wherever we operate and
understand that we can only
remain a business partner
of choice by upholding
this commitment.
Our approach
This section contains an overview of the key
elements of our Ethics and Compliance
Programme, and how we manage our main
compliance risks.
You can access more detailed information
about our Ethics and Compliance Programme
in our 2024 Ethics and Compliance Report,
which will be published on our website and
provide a summary of our programme, how
we raise awareness of it, monitor it, and seek
to continuously improve it, as part of our
efforts to ensure it is fully embedded into our
business globally.
Our scope
Our employees, directors and officers,
as well as contractors under Glencore’s
direct supervision, working for a Glencore
office or industrial asset directly or indirectly
controlled or operated by Glencore plc
worldwide, must comply with our Code and
our Ethics and Compliance Programme as
well as applicable laws and regulations,
regardless of location. Our Supplier Code of
Conduct sets out the expectations we have
for all our suppliers, including expectations
regarding ethical business practices. We also
seek to assert our influence over our joint
For further information, you can visit our
website: glencore.com/sustainability/
ethics-and-compliance
Together with other
functions, ensuring
an appropriate
system for discipline
and incentives
Coordinating objective
and consistent
internal investigations,
whilst maintaining
confidentiality and
protecting against
retaliation
Providing safe channels to
raise concerns regarding
potential misconduct,
including via our Raising
Concerns Programme
Assessing the effectiveness of Ethics and
Compliance Programme implementation
and identifying opportunities for improvement
Identifying, assessing
and evaluating
compliance risks
and controls
Establishing
approaches and
requirements to
mitigate compliance
risks and reflect
ethical and legal
expectations and
requirements
Training and raising
awareness on ethics
and compliance risks
Providing advice and guidance
to employees on ethics and
compliance matters
Bo
ar
d
ov
er
si
gh
t a
nd
g
ov
er
na
nc
e
Advice
Monitoring
Speaking
openly and
raising concerns
Investigations
Discipline and
incentives
Risk
assessments
Policies,
standards,
procedures
and guidelines
Training and
awareness
Values
Safety
Integrity
Responsibility
Openness
Simplicity
Entrepreneurialism
Key elements of our Ethics and Compliance Programme
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Ethics and compliance continued
as the identification of focus areas to be
included within the monitoring process.
Policies, standards, procedures
and guidelines
Our Group policy framework encompasses
our Values, Code and a suite of policies,
standards, procedures and guidelines on
various compliance matters and risks, with a
strong emphasis on key risks such as
corruption, sanctions, money laundering and
market conduct.
This framework reflects our commitment to
uphold ethical business practices and to
meet, or exceed, applicable laws and
external requirements.
Employees can access the Group policy
governance documents in up to 12
languages, through various channels. Our
offices and industrial assets are responsible
for implementing these documents and
developing and implementing local
procedures, consistent with Group policies
and standards, but adapted for local risks
and requirements.
Training, awareness and events
Training supports employees in building the
awareness, knowledge, skills and mindset
needed to understand and behave in line
with our Values, Code, policies and the law. It
is key to establishing a connection with our
employees and to motivating ethical and
compliant behaviour. We have a
comprehensive approach, which seeks to
ensure the right planning, expertise and
delivery to the right audience at the right
time.
ventures (JVs) that we do not control to
encourage them to act in a manner
consistent with our Values and Code.
Board and management
oversight and support
Our Board of Directors plays a critical role
in overseeing and assessing our culture
of ethics and compliance, and ensuring
policies, practices and behaviours are
consistent with our Values. Our Board has
established a separate Ethics, Compliance
and Culture (ECC) Committee, which is
responsible for overseeing our Ethics and
Compliance Programme and approving key
ethics, compliance and culture-related
matters within the Group. The ECC
Committee receives quarterly updates on
our Ethics and Compliance Programme’s
implementation, including compliance risks
and how they are managed, and on
compliance resources. The Board separately
receives quarterly updates on whistleblowing
and investigation processes, and material
internal and external investigations.
Our Board oversight is supported
and augmented by oversight from
management-level committees, including
the ESG Committee, the Business Approval
Committee and the Raising Concerns and
Investigations Committee.
The ESG Committee comprises Glencore’s
CEO, CFO, Head of Industrial Assets, General
Counsel, Head of Compliance, Head of
Corporate Affairs, Head of Human Resources,
Head of Health, Safety, Environment, Social
Performance and Human Rights (HSEC&HR)
and Head of Sustainability. It also includes
senior members of management
representing marketing and industrial assets
across different commodities. The ESG
Committee reviews and considers the
various ESG issues, programmes and
projects implemented across the Group. It
also reviews and approves Group policies,
standards, procedures, systems and controls
relevant for the corporate functions.
The Business Approval Committee, a
sub-committee of the ESG Committee,
comprises Glencore’s CEO, CFO, General
Counsel, Head of Corporate Affairs, Head of
Sustainability and, where applicable, heads
of departments and corporate functions. It
determines and sets guidance and criteria,
and reviews business relationships,
transactions and counterparties that may
give rise to ethical or reputational concerns.
The Raising Concerns and Investigations
Committee comprises Glencore’s CEO, CFO,
General Counsel, Head of Industrial Assets,
Head of Human Resources and Head
of Compliance. The committee oversees the
operation of our Raising Concerns
Programme and the conduct of
investigations and is tasked with ensuring
recommendations and sanctions are applied
consistently across the Group.
Group Compliance function
structure
Our Group Compliance function is comprised
of our corporate and regional teams.
The Corporate Compliance team is
responsible for designing, monitoring and
continuously improving our Ethics and
Compliance Programme. The Corporate
Compliance team also provides guidance
and advice to the Regional Compliance team
and the business on implementing and
embedding our Ethics and Compliance
Programme to support consistent
application across the organisation.
The Regional Compliance team is
responsible for the implementation of
the Ethics and Compliance Programme
across regions and commodities. They
provide guidance to the business and
support our local compliance officers and
the network of local compliance
coordinators.
Risk assessments
To assess whether our Ethics and
Compliance Programme is appropriately
designed, tailored to our business and that
resources are adequately allocated, we
identify, record and evaluate compliance
risks faced by our marketing and industrial
segments.
We achieve this by performing an annual
Group Compliance risk assessment, which
reviews current compliance risks at Group
level in a number of risk areas, but focuses in
particular on anti-corruption and bribery,
given the nature of our business and the
geographies in which we operate.
We document these risks in the Group
Compliance Risk Register and this forms the
basis for local risk assessments. Through the
local risk assessments, these risks are then
assessed at appropriate intervals within each
office and industrial asset across the Group.
These local risk assessments help us evaluate
the specific compliance risks faced by each
of our businesses, identify and assess the
controls in place to mitigate those risks, as
well as identify further controls that may be
required.
Group and local risk assessments are also an
input into the drafting and updating of
Group policies, standards, procedures and
guidelines, the determination of our training
and awareness initiatives and Group
Compliance team resourcing needs, as well
Explore these polices online at
glencore.com/who-we-are/policies
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Ethics and compliance continued
While training is a critical component of our
Ethics and Compliance Programme, regular
awareness-raising and communication are
equally important. We therefore supplement
our compliance training with various
awareness initiatives, communications,
activities and events throughout the year.
Advice
Our compliance officers are professionals
with compliance, legal and audit
backgrounds and with expertise in our key
areas of compliance risks, including bribery
and corruption and market conduct. Due to
the fast-paced nature of our business, they
are required to respond quickly and
effectively to inquiries coming in from the
business. They guide the business on changes
in laws and regulations, our policies, standards,
procedures and guidelines, and how to make
appropriate decisions whilst encouraging
them to think critically about issues.
Monitoring
We continuously monitor and test the
implementation of our Ethics and
Compliance Programme, via site and
desktop reviews (including data analytics
projects) to determine its effectiveness and
to assess whether it is operationalised and
embedded into our business. Monitoring
activities also enable us to identify
opportunities for improvement that help
develop and evolve our Ethics and
Compliance Programme and respond to
changes in our business, the environments
we operate in, and applicable laws and
regulations.
Speaking openly and raising
concerns
We are committed to creating a culture
where everyone feels free to raise concerns
in a secure and confidential way. We take
confidentiality seriously, and do not tolerate
retaliation against anyone who speaks
openly about conduct they believe is
unethical, illegal, or not in line with our Code
and policies, even if the concern is not
substantiated.
We have a comprehensive suite of
documents which establish a framework for
managing concerns, including our Raising
Concerns and Whistleblowing Policy. This
policy sets out our approach to protecting
individuals who raise concerns and
information on the process for reporting,
escalating, investigating and remedying
concerns.
Concerns can be raised locally, or via our
Raising Concerns Programme, our corporate
whistleblowing programme managed in
Switzerland. It allows whistleblowers to raise
concerns anonymously in a variety of
languages.
Discipline and incentives
We expect our workforce to act in
accordance with our Values, Code, and the
requirements outlined in our policies,
standards and procedures regardless of role
and location. Failure to observe these
requirements may result in disciplinary
action, including dismissal.
Group Human Resources is responsible for
managing the various discipline and
incentive processes and standards. It has
implemented a standardised formal
behavioural review for the most senior
managers worldwide, which has the ability
to impact their performance bonuses. The
review focuses on three main elements:
• culture: the actions which an employee
has taken to promote our desired culture
including communicating the importance
of compliance, demonstrating an
understanding of the importance of ESG
topics when making business decisions,
and supporting the recommendations
from our independent compliance
monitors;
• identifying and mitigating compliance
risks: how an employee has identified and
mitigated compliance risks during the
year; and
• leadership and behaviour towards others:
how an employee has promoted a positive
and collaborative work environment in
their team and, in particular, created an
environment of open communication
where people feel confident to raise issues.
Specific elements of the review call out the
importance of leaders creating an
environment where others are encouraged
to report issues, actively escalating issues of
concern themselves and showing
commitment to integrity and our Ethics and
Compliance Programme through team
hiring and promotion decisions.
Key topics
Anti-corruption and bribery
Our Anti-Corruption and Bribery Policy is
clear: the offering, providing, authorising,
requesting or accepting of bribes is
unacceptable, and we do not engage in
corruption or bribery, including making
facilitation payments. We assess corruption
risks within our businesses and work to
address these risks through policies,
standards, procedures and guidelines on
various topics. These cover our approach to:
• political contributions;
• political engagement;
• sponsorships, charitable contributions and
community investments;
• travel, gifts and entertainment;
• use of cash on hand; and
• interactions with public officials.
Sanctions and trade controls
Our Sanctions Policy sets out our
commitment to complying with all
applicable sanctions and restrictive
measures, and we generally adhere to
United States, European Union, United
Nations and Swiss sanctions throughout our
business, whether we are legally required to
do so or not. We do not participate in
transactions designed or intended to evade
or facilitate a breach of applicable sanctions
or restrictive measures, and we do not
conduct business in, or involving any,
embargoed territory or sanctions targets.
We do not conduct business that would
violate any applicable restrictive measures
like export controls, trade embargoes or anti-
boycott laws, and we do not engage in any
sanctionable activity that could result in the
designation of Glencore as a sanctions
target. We also do not conduct business
with sectorally sanctioned entities, which is
prohibited by sanctions. We only allow
deviations from these general requirements
in exceptional circumstances with prior
approval from Compliance and Group
management and, under all circumstances,
these must be compliant with
applicable laws.
To manage our sanctions risk exposure and
support our efforts to ensure compliance, we
implement controls and processes. These
include screening and conducting due
diligence on our counterparties and vessels
using a risk-based approach, to determine
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whether they are a sanctions target, subject
to sectoral sanctions or otherwise attract
sanctions risk.
Anti-money laundering and anti-tax
evasion
Our Anti-Money Laundering Policy sets out
our approach to ensuring that we comply
with all applicable laws and regulations to
prevent money laundering and the
facilitation of tax evasion, and appropriately
manage the related risks. We do not tolerate
tax evasion of any kind and we do not
knowingly or wilfully facilitate tax evasion.
We implement a number of controls and
processes to manage these risks.
Market conduct
Our Market Conduct Policy sets out our
approach to how we comply with market
conduct rules specifically relating to market
manipulation, insider dealing and unlawful
disclosure of inside information. We are
committed to complying with all applicable
laws, regulations and rules applying to
Glencore’s activities and behaviour in the
physical and commodity derivative or
related financial markets.
To manage the risks of market abuse and
insider dealing we have implemented a
series of procedures and guidelines. We
provide training on a range of topics
including market conduct, benchmark
manipulation, inside and confidential
information, exchange rules and regulations
applicable to specific jurisdictions. We have
also made significant investments in trade
and communications surveillance including
building a dedicated surveillance team and
progressively implementing trade and
electronic communications surveillance
controls.
Ethics and compliance continued
Our business partners
We work with a range of business partners
and expect them to share our commitment
to ethical business practices and conduct.
Business partners include our suppliers,
customers, JVs, JV partners, service providers
and other counterparties. We have a
comprehensive framework for managing
the key risks associated with our business
partners. Through this framework, we seek
to comply with applicable laws (including
anti-corruption and bribery, sanctions,
anti-money laundering and anti-tax evasion)
and manage the reputational risks that can
arise from engaging with certain types of
business partners.
Adherence to our Ethics and Compliance
Programme is required for all JVs that we
control or operate. For JVs we do not control
or operate, we seek to influence our JV
partners to adopt our commitment to
responsible business practices and
implement appropriate compliance
programmes.
In respect of mergers, acquisitions and
disposals, we conduct thorough pre-
transaction due diligence. Where we acquire
the right to control or operate a business, we
conduct a post-transaction risk assessment
and review and implement the Glencore
Ethics and Compliance Programme. When
we dispose of our interest in JVs, business
undertakings or operations, we conduct due
diligence on the purchaser.
Investigations and resolutions
Glencore has been subject to a number of
investigations over the last few years.
Glencore has taken all of these investigations
very seriously and our response to the
investigations was overseen by our
Investigations Committee, comprised of
Non-Executive Directors, led by our
Chairman. We have sought to cooperate
extensively with the various authorities
investigating Glencore in order to resolve
these investigations as expeditiously
as possible, while also seeking to learn
from them in order to support the
continuous improvement of our Ethics and
Compliance Programme.
In 2022, Glencore announced the resolution
of certain long-standing investigations by
authorities in the United States, the United
Kingdom and Brazil into past practices at
certain Group businesses. Separately, in
December 2022, Glencore reached an
agreement with the Democratic Republic of
Congo relating to past conduct.
On 5 August 2024, Glencore announced that
the Office of the Attorney General of
Switzerland (OAG) closed its criminal
investigation against Glencore International
AG with a summary penalty order and
abandonment order. Glencore was held
liable for failing to take all necessary and
reasonable organisational measures to
prevent the bribery of a Congolese public
official by a business partner in 2011. The OAG
imposed a fine of CHF 2 million and a
compensation claim of $150 million on
Glencore, in respect of the estimated benefit
obtained by the business partner. Glencore
did not admit the findings of the OAG, but in
the interests of resolving this matter has
agreed not to appeal the summary penalty
order. The OAG stated in the summary
penalty order that it did not identify that any
Glencore employees had any knowledge of
the bribery by the business partner, nor did
Glencore benefit financially from the
conduct of the business partner. The parallel
investigation by the Dutch Prosecution
Service was also concluded and the case was
dismissed following the resolution of the
Swiss investigation.
In September 2024, Jersey authorities
notified the Group that it is under
investigation and the investigation appears
to be related to the same underlying facts as
the concluded resolutions with the other
authorities. Refer to note 32 to the financial
statements for further information.
Monitorships
Under the terms of our resolutions with the
United States Department of Justice (DOJ),
independent compliance monitors were
appointed to assess and monitor the
company’s compliance with the resolutions
and evaluate the effectiveness of our Ethics
and Compliance Programme and internal
controls. The DOJ acknowledged the
enhancements we had made to our
programme, but required the appointment
of the monitors because at the time the
enhancements to the programme were new
and had not been fully implemented
or tested.
The monitors were appointed in June 2023
and issued their first report in March 2024.
The Group has made significant progress in
implementing the recommendations in the
first report. The monitors have recently
completed their second review period
during which they continued to undertake
various activities including extensive
document review and multiple site visits,
which involved interviews, transaction
testing, and other analysis. We will continue
to work to address their recommendations,
and further enhance our Ethics and
Compliance Programme.
Further information will be provided in
our upcoming Ethics and Compliance
Report: glencore.com/publications
2024 Glencore Annual Report
54
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Additional Information
Our people
We have over 150,000 employees
and contractors, who collectively
work to deliver our strategy and
support our Values of Safety,
Integrity, Responsibility,
Openness, Simplicity and
Entrepreneurialism.
During 2024, we continued our efforts to
embed the Group Human Resources policies
and standards with an emphasis on
engaging with our people.
Our approach
Through our Group Human Resources
policies and standards we strive to create
and maintain a workplace characterised by
equality of opportunity, freedom of
association, high performance and integrity.
These policies and standards support our
commitment to being a responsible and
ethical operator and assist us in delivering our
strategic priorities. Governance of our Group
Human Resources policies and standards
rests with the Board’s Ethics, Compliance and
Culture (ECC) Committee. Responsibility for
delivery and implementation rests with our
senior management, including the CEO and
heads of corporate functions and commodity
departments. Each commodity department
has dedicated Human Resources team
members charged with the day-to-day
delivery of Human Resources services, in line
with our policies and standards. We are
continuing to develop and implement our
Group standards and assure against them in
an effort to mitigate the inherent risks in
our business.
We have a focused Group Human Resources
function that develops policies and
standards which establish the minimum
expectations for our businesses. The Group
Human Resources function also creates and
manages the governance and assurance
activities designed to ensure the adoption
and effectiveness of these policies and
standards across the business. This approach
assists us in delivering our strategic priorities
and enhances the effectiveness of our
human resources practices in supporting
business needs.
Operational responsibility for day-to-day
human resources management is
decentralised, with the human resources
departments within the industrial and
marketing departments taking on the
responsibility for implementing relevant
processes and addressing the specific needs
of their respective departments. This model
allows for greater flexibility and
responsiveness and is designed to ensure
that our global approach is implemented in
a manner that is closely aligned with the
specific requirements of each business while
maintaining consistency with strategic
priorities.
Investing in our people
Industrial and marketing departments
develop and implement tailored human
resources strategies and are responsible for
identifying the most effective methods to
invest in their workforce. They are
responsible for carrying out a periodic review
and designing and executing targeted
programmes and other strategic initiatives.
Modules in these targeted programmes are
focused on enhancing the skills, knowledge,
and capabilities of employees and cover a
range of topics which can include crisis
management, decision making, behavioural
change and psychological safety in high risk
working environments. They are designed to
ensure our employees are well-equipped to
meet the evolving demands of their
respective roles and contribute to the
Group’s broader goals.
Group Human Resources provides additional
support for employee development through
our global e-learning platform, Advance. The
platform enhances our approach to
employee development and continues to
support our goal to develop a highly skilled
and agile workforce. Advance offers a
comprehensive range of professional,
management and leadership skills for
employees at all stages of their careers. The
platform is available to all networked
employees globally and is currently being
used by more than 100 sites in over 30
countries.
Incentivising the right
behaviours
We expect all employees to uphold our
Values, adhere to our Code of Conduct, and
comply with the requirements set out in our
policies and procedures, regardless of their
role or location. Non-compliance with these
expectations may lead to disciplinary action,
including dismissal. Group Human Resources
is responsible for overseeing the
management of disciplinary processes, as
well as the implementation and enforcement
of incentive processes and standards.
Our senior leaders play a critical role in
shaping the cultural tone of the organisation,
with their behaviour serving as a key driver
of our compliance culture. The performance
of the senior leaders in our corporate
functions, marketing departments and
industrial assets is assessed through a
comprehensive annual review process.
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Additional Information
Our people continued
A key aspect of the review is to encourage
reflection on how our people identify and
mitigate compliance risks. The process
includes a detailed assessment of
individuals’ leadership, ethical behaviour and
support for the Ethics and Compliance
Programme. The process is carefully
managed by Group Human Resources to
promote global consistency and
effectiveness. The process includes
mandatory training for all senior leaders,
emphasising the importance of the review
process. Training is designed to enhance the
quality of self-assessments, manager
reviews, and performance discussions. This
approach reinforces the behaviours we value
as an organisation and underpins our
commitment to operating responsibly and
ethically in all aspects of our business.
Creating our desired culture
Building an inclusive culture supports our
efforts to drive the growth of our business
and attract, develop and retain top talent.
We are committed to creating an
environment that embraces diverse
perspectives where performance
expectations are high and barriers to
progression are removed. This strengthens
our ability to achieve our strategic priorities.
Maturity mapping classification
levels
We use our maturity assessment tool to
assist our businesses in conducting self-
assessments based on their current and
planned activities in connection with
building a more diverse and high performing
organisation. Maturity is assessed based on
data points which include action plans being
implemented and the demographic
make-up of the organisation. Our mapping
comprises three levels and helps the
businesses to identify and prioritise actions
that can have the most meaningful impact
on their business.
Maturity level
Key Focus Areas
Foundational
Raising awareness and
engagement, setting up action
plans and governance across
offices and assets to remove
barriers to progression and
representation.
Transitional
Continuing our efforts to
optimise Human Resources
policies and processes and
making meaningful progress
against the organisation’s
goals.
Transformational Taking our approaches to the
next level and working with
external certification bodies to
benchmark our activities.
Our ambition is to progress those industrial
assets and offices that were categorised as
‘foundational’ level to a ’transitional’ level by H1
2025, and for all businesses to demonstrate
progress towards reaching the
’transformational’ level by the end of 2027.
Globally, we have conducted inclusive
leadership training for senior leaders,
managers and supervisors to engage them as
advocates for our desired culture. To date, we
have trained more than 4,000 people across
the different businesses. Globally, we have
increased the percentage of female employees
to 19% in 2024, supported by a rate of female
hires at 26% globally, including increases in the
number of female hires in our ferroalloys and
marketing departments.
Engaging with our people
Our ability to achieve our business strategy
relies on attracting, developing, and
retaining a diverse group of skilled and
experienced individuals, while encouraging
their engagement and ensuring high
performance. We assess employee
engagement using an engagement score,
which is benchmarked across our businesses
against an external high-performance
benchmark and compared to other large-
scale industrial companies.
We assess the culture of our business
through a biennial People Survey. Our
People Survey enables us to build a picture
of how extensively our Code and Values are
embedded within our organisation and
provides insights from our workforce
including on core elements to our business
such as the physical safety of our employees,
How we all behave
The behaviours we consistently
and intentionally demonstrate to
create a collaborative culture
that values our differences,
encourages our people to be
themselves and enables them to
participate and contribute to
their full potential.
Who we all are
The collection of unique visible and
invisible characteristics that make
each of us different including, but
not limited to, sexual orientation,
education, age, ethnicity, cultural
background, family status,
experience and beliefs.
How we all succeed
The actions necessary to ensure fair
treatment and access to
opportunities, resources, programmes
and practices for all, especially those
who are under-represented or have
been historically disadvantaged, such
that they can participate fully,
regardless of their identity.
How we all grow
The removal of barriers that might
prevent any person or group of
people from developing to their full
potential. Different steps may be
required to facilitate growth
opportunities for under-
represented groups.
Where it all happens
There is no ‘one size fits all’.
Building a more inclusive work
environment and removing
barriers requires that we set some
global priorities and a framework
that is customised locally and
implemented according to the
local context.
Creating our desired culture
All our businesses are encouraged to develop local plans tailored to their business needs and current demographic profile across a range of topics and focus areas.
2024 Glencore Annual Report
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Additional Information
ethics and compliance, and fair and
respectful treatment. In 2024, we surveyed
both networked and non-networked
permanent employees, with approximately
76,000 colleagues invited to participate. We
focused on improving participation by
allowing employees to access the People
Survey through email, QR code and paper
copies, which helped us gather feedback
from our non-networked population. This
resulted in an increase in the participation
rate to 75%, compared to 66% in 2022.
The results of the 2024 People Survey
showed an overall improvement compared
to 2022. Our survey results indicated a two
percentage-point increase in participants
expressing pride in working for the Group,
rising from 82% in 2022 to 84% in 2024. This
result also exceeded global benchmark data
provided by our third party survey provider
by two percentage points. The global
benchmarks include organisations from
various industries and countries that have
conducted surveys with our third party
survey provider in the past three years.
Our continued efforts on safety have been
recognised by employees, reflecting an
improvement compared to our previous
survey. There was a notable increase from
75% to 81% in the number of participants
who felt the company cares about the health
and wellbeing of its employees, which is ten
percentage-points above global benchmark
data.
Results for key compliance questions have
either improved compared to 2022 or
remained consistently high. The findings
indicate that employees are aware of how to
raise concerns and feel confident in doing so
if necessary, reflecting the company’s
commitment to facilitating a speaking
openly culture.
Results indicated that 86% of participants
believe their colleagues act in line with the
Code and 85% expressed confidence in
knowing how to report suspected breaches
of the Code. These findings align with global
benchmark comparisons, drawing on data
from leading high-performance
organisations within large-scale industrial
sectors.
In addition, 78% of participants felt that the
company sets business objectives that can
be achieved without compromising our
compliance commitments, which is a three
percentage-point increase compared to our
results in 2022 and 84% felt that their direct
manager acts in accordance with the Code,
policies and the law, which is an increase of
four percentage-points compared to 2022
and two percentage-points above global
benchmark data.
To gain a more detailed understanding of
the awareness and perception of the Raising
Concerns Programme in some of our larger
marketing offices, we also collected further
employee feedback through a
supplementary compliance survey. The
additional compliance survey is designed to
enhance our understanding of employee
preferences for reporting channels and
potential resistance areas or challenges for
employees when reporting or engaging with
the Raising Concerns Programme. Of these
marketing employees surveyed, 94%
indicated that they know how to report
suspected breaches of the Code. In addition,
88% said that they feel comfortable
approaching Compliance for guidance on
compliance topics and 5% reported
becoming aware of a potential concern over
the past 12 months, significantly below the
Institute of Business Ethics cross-industry
benchmark of 25%.
While our compliance index reflects strong
performance overall, we acknowledge
variability across our portfolio, with some
responses in assets and offices indicating
employees in those locations may feel less
confident in raising concerns or in the
Group's ability to effectively investigate them
or protect the individuals from potential
retaliation. Addressing this issue remains a
key priority for us, as we are committed to
ensuring that all employees across the
business feel confident in speaking up.
A focus on wellbeing,
anti-harassment and discipline
Our Group Anti-Harassment Standard sets
out the mandatory minimum requirements
that must be observed as part of our efforts
to protect our people from any form of
violence, discrimination and harassment,
including sexual harassment, all of which,
are clearly defined in the standard. Many
industrial assets continue to develop
processes and programmes aimed at further
embedding this standard.
Amongst other requirements, all industrial
assets and offices are required to have a
documented leadership statement
committing to a safe and inclusive
workplace, a locally available employee
assistance programme in place to support
employees’ emotional and psychological
wellbeing and to ensure that the periodic
health risk assessments, as outlined in the
Group’s Health Standard, address factors
that increase the likelihood of violence and
harassment.
A core part of our training curriculum is our
new global Respect at Work e-learning
module, aimed at our networked workforce.
The course is designed to encourage
reflection on our behaviours and interactions
with one another. This training addresses
key topics such as recognising harmful
behaviours, understanding our
responsibilities as individuals and leaders,
and ensuring that all employees are treated
with dignity and respect. In 2024, over 95% of
our networked workforce completed the
e-learning module.
Our Group Discipline Standard provides
detailed guidance on managing disciplinary
processes across our corporate offices,
marketing departments, and industrial
assets. This standard was updated in 2024
and is designed to ensure the appropriate
and consistent application of disciplinary
sanctions across our business. The standard
mandates the involvement of senior
management members at the Group level
for disciplinary matters related to high-
severity business integrity concerns. The
standard also requires the involvement of
relevant departmental leadership in the
communication of the disciplinary outcome
to the relevant employee in an effort to
ensure ownership by the business of the
outcome. Additionally, the standard
incorporates specific training and
monitoring requirements to drive consistent
application of disciplinary processes across
the organisation.
These requirements are still in the process of
being implemented, but we are encouraged
by the initial consistency of outcomes being
reported.
Our people continued
2024 Glencore Annual Report
57
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Additional Information
Our people continued
Workforce composition
and development
The majority of our employees work at mine
and smelter sites and are employed through
full-time employment contracts, with
contractors representing approximately 47%
of our global workforce in 2024.
Around 74% of our workforce is unionised.
Employee turnover in continuing operations
was approximately 8.7% in 2024.
In 2024, we had one strike across our
operations lasting longer than a week.
Living wage
Paying a living wage to our employees is a
cornerstone of our efforts to promote fair
compensation. As part of this commitment,
we periodically conduct a living wage review
process, which includes assessing
compensation across the countries where we
operate. This review supports our efforts to
ensure that employees receive compensation
that exceeds the local living wage, reinforcing
our dedication to fair and equitable pay
practices worldwide. Through these efforts,
we continue to prioritise fair and equitable
compensation for all our employees.
Diversity of employees globally
Male
81%
Female
19%
2024 diversity metrics
Glencore tracks and reports on progress on
senior management diversity by following
the FTSE Women Leaders Review.
Review submitted
% of women
FTSE Women
Leaders Review
35%1
1. Based on a population of approximately 77
senior leaders, which we define as senior
employees that operate across departments and
commodities, and departmental leadership,
whose focus is on a particular commodity or set
of commodities.
Gender balance of employees
Male: 68,048 Female: 16,098
0
5,000
10,000
15,000
20,000
25,000
South America
North America
Europe
Australia
Asia
Africa
Number of female employees
Number of male employees
Employment type
Employees: 84,146 Contractors: 73,968
0
10,000
20,000
30,000
40,000
50,000
South America
North America
Europe
Australia
Asia
Africa
Number of employees
Number of contractors
2024 Glencore Annual Report
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Additional Information
Financial results
2024 reflected the progressive normalisation
of energy markets from the severe
disruptions and elevated market volatilities
seen over 2022-23, with thermal coal and gas
prices materially declining (average period-
over-period key benchmark thermal coal
and gas prices saw falls of c.13-22%). On the
contrary, certain metals markets saw
favourable physical market conditions, for
example copper and zinc concentrates, with
smelter treatment and refining charges (TC/
RCs) for both commodities reaching
historically low levels during the year. Other
metal markets, however, remained in
oversupply, such as nickel (continued strong
supply growth from Indonesia) and cobalt
(continued supply growth), resulting in
average year-over-year commodity price
decreases of 22% and 27%, respectively.
In this context, largely reflecting lower
thermal coal commodity prices and market
volatility, adjusted EBITDA◊ was
$14,358 million and adjusted EBIT◊ was
$6,938 million, decreases of 16% and 33%
respectively compared to 2023. Income for
the year attributable to equity holders
decreased from $4,280 million in 2023 to a
loss of $1,634 million in 2024, after
recognising various significant items,
including impairments in our South African
Coal operations where our lower forecast
price assumptions had the largest impact, in
Koniambo, which transitioned to care and
maintenance and across our custom zinc
and copper metallurgical operations, on
account of historically low spot TC/RCs in
2024, driving a reduction in long-term
assumptions. EPS decreased from $0.34 per
share to a loss of $0.13 per share.
The 2024 adjusted EBIT◊ contribution from
the marketing activities segment was
$3,191 million, a decrease of 8% from the prior
period, reflecting the return to more stable
market conditions, following the progressive
normalisation of energy markets since 2022.
The adjusted EBITDA◊ contribution from the
industrial segment was $10,567 million, a
decrease of 20% year-over-year, largely due
to lower thermal coal prices, where average
Newcastle and API4 index prices were down
22% and 13% respectively, compared to 2023.
Adjusted EBITDA◊ was supported by a
$999 million EBITDA contribution from EVR
(acquired in July 2024) and 8% and 23%
higher average period-over-period copper
and gold prices respectively, however
historically low TC/RCs over 2024 weighed
significantly on our custom copper and zinc
metallurgical operations, while the lower
nickel and cobalt prices also pressured
earnings. Reflecting these macro outcomes,
our 2024 weighted average adjusted EBITDA
mining margins◊ were 28% in our metal
operations and 36% in our energy and
steelmaking coal operations, compared to
26% and 49% respectively in 2023. See pages
75 and 76.
Market conditions
Selected average commodity prices
Spot
31 Dec
2024
Spot
31 Dec
2023
Average
2024
Average
2023
Change in
average
%
S&P GSCI Industrial Metals Index
438
423
446
427
4
S&P GSCI Energy Index
243
245
253
266
(5)
LME (cash) copper price ($/t)
8,653
8,464
9,148
8,485
8
LME (cash) zinc price ($/t)
2,954
2,640
2,779
2,650
5
LME (cash) lead price ($/t)
1,925
2,035
2,070
2,137
(3)
LME (cash) nickel price ($/t)
15,111
16,375
16,815
21,487
(22)
LME (cash) aluminium price ($/t)
2,527
2,346
2,420
2,254
7
Gold price ($/oz)
2,625
2,063
2,390
1,943
23
Silver price ($/oz)
29
24
28
23
22
Fastmarkets cobalt standard grade,
Rotterdam ($/lb) (low-end)
10
13
11
15
(27)
Ferro-chrome 50% Cr import, CIF main
Chinese ports, contained Cr (¢/lb)
79
96
96
102
(6)
Iron ore (Platts 62% CFR North China)
price ($/DMT)
93
130
104
114
(9)
Coal API4 ($/t)
104
98
105
121
(13)
Coal Newcastle (6,000 kcal/kg) ($/t)
122
149
135
173
(22)
Coal HCC (Aus premium hard coking
coal) ($/t)
200
326
241
296
(19)
Dutch TTF Natural Gas 1-Month
Forward ($/MWh)
52
35
37
44
(16)
Oil price – Brent ($/bbl)
75
77
80
82
(2)
Currency table
Spot
31 Dec
2024
Spot
31 Dec
2023
Average
2024
Average
2023
Change in
average
%
AUD : USD
0.62
0.68
0.66
0.66
–
USD : CAD
1.44
1.32
1.37
1.35
1
EUR : USD
1.04
1.10
1.08
1.08
–
GBP : USD
1.25
1.27
1.28
1.24
3
USD : CHF
0.91
0.84
0.88
0.90
(2)
USD : KZT
525
456
470
457
3
USD : ZAR
18.84
18.36
18.33
18.46
(1)
Financial and operational review
2024 Glencore Annual Report
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Additional Information
Financial and operational review continued
Adjusted EBITDA/EBIT◊
Adjusted EBITDA by business segment is as follows:
US$ million
2024
2023
Change
%
Marketing
activities
Industrial
activities
Adjusted
EBITDA
Marketing
activities
Industrial
activities
Adjusted
EBITDA
Metals and
minerals
2,436
5,844
8,280
1,774
5,445
7,219
15
Energy and
steelmaking
coal
1,447
5,316
6,763
2,098
8,452
10,550
(36)
Corporate and
other1
(92)
(593)
(685)
28
(695)
(667)
(3)
Total
3,791
10,567
14,358
3,900
13,202
17,102
(16)
Adjusted EBIT by business segment is as follows:
US$ million
2024
2023
Change
%
Marketing
activities
Industrial
activities
Adjusted
EBIT
Marketing
activities
Industrial
activities
Adjusted
EBIT
Metals and
minerals
2,375
1,715
4,090
1,714
1,551
3,265
25
Energy and
steelmaking
coal
908
2,644
3,552
1,708
6,132
7,840
(55)
Corporate and
other1
(92)
(612)
(704)
28
(741)
(713)
(1)
Total
3,191
3,747
6,938
3,450
6,942
10,392
(33)
1. Corporate and other marketing activities includes $165 million (2023: $321 million) of Glencore’s equity
accounted share of Viterra.
Marketing activities
Marketing delivered solid results, in a return
to a more normal backdrop, following the
elevated levels of energy market volatility
and disruption which characterised much of
2022 and extended into H1 2023. Such
calmer markets can be seen in our lower
reported value at risk (VaR) levels, discussed
below.
Marketing adjusted EBITDA◊ and EBIT◊
decreased, respectively, over 2023, by 3% to
$3,791 million and by 8% to $3,191 million. A
substantial increase in contribution from
metals and minerals largely offset the
year-over-year reduction in energy and
steelmaking coal earnings and contribution
from Viterra.
Metals and minerals adjusted EBIT◊ was up
39% over 2023, largely reflecting broadly
tight physical markets and drawdown of
inventories in various commodities,
including copper and zinc concentrates and
aluminium. Although at a reduced growth
rate, industrial metals demand continued to
be supported by the energy transition sector
and related infrastructure investment along
with fiscal stimulus measures in China and
monetary policy actions in the US.
Adjusted EBIT◊ from the energy and
steelmaking coal business was $908 million,
owing primarily to the rebalancing and
normalisation of international energy trade
flows, following the extremely elevated price
and market volatility period in 2022-2023.
Our 50% share of Viterra earnings (captured
within Corporate and other) was $165 million
(post-interest and tax) compared to
$321 million in the prior year. In June 2023,
Glencore agreed to dispose of its interest in
Viterra in a cash-and-shares transaction with
Bunge, which is awaiting final regulatory
approvals (see note 16 of the financial
statements).
Industrial activities
Industrial adjusted EBITDA◊ declined by 20%
to $10,567 million (adjusted EBIT◊ was
$3,747 million, compared to $6,942 million in
2023). The year-over-year decrease was
primarily driven by lower contributions from
our coal operations, owing to the substantial
declines in key thermal coal pricing
benchmarks noted above. 2024 was
positively impacted by the $999 million
EBITDA contribution from EVR, which was
acquired in July 2024. In metals and
minerals, an increased contribution from
Kazzinc (up $0.5 billion), mainly due to
higher gold prices (up 23%) and a lower
negative result at Koniambo as it
transitioned into care and maintenance,
more than offset the impacts of markedly
lower TC/RC realisations at our custom
copper and zinc metallurgical operations.
2024 Glencore Annual Report
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Additional Information
Financial and operational review continued
Earnings
A summary of the differences between reported adjusted EBIT◊ and income attributable to
equity holders, including significant items, is set out in the following table:
US$ million
2024
2023
Adjusted EBIT ◊
6,938
10,392
Net finance and income tax expense in relevant material associates
and joint ventures1
(670)
(554)
Proportionate adjustment Volcan1
48
222
Net finance costs
(2,334)
(1,900)
Income tax expense2
(749)
(2,170)
Non-controlling interests
459
708
Income attributable to equity holders of
the Parent pre-significant items ◊
3,692
6,698
Earnings per share (Basic) pre-significant items (US$)3 ◊
0.30
0.53
Significant items ◊
Share of Associates’ significant items4
113
(90)
Viterra share in earnings post held for sale classification
(165)
(186)
Movement in unrealised inter-segment profit elimination5
45
258
EVR inventory fair value adjustment5
(444)
–
(Loss)/gain on disposals of non-current assets - net6
(337)
850
Other expense – net7
(1,926)
(1,091)
Impairments8
(2,266)
(2,484)
Income tax expense2
(947)
(37)
Non-controlling interests’ share of significant items9
601
362
Total significant items
(5,326)
(2,418)
(Loss)/income attributable to equity holders of the Parent
(1,634)
4,280
(Loss)/earnings per share (Basic) (US$)3
(0.13)
0.34
1. Refer to note 2 of the financial statements and to the Alternative performance measures section
beginning on page 254 for reconciliations.
2. Refer to other reconciliations section for the allocation of the total income tax expense between
pre-significant and significant items.
3. Based on weighted average number of shares, refer to note 18 of the financial statements.
4. Recognised within share of income from associates and joint ventures, see note 2 of the financial
statements.
5. Recognised within cost of goods sold, see note 2 of the financial statements.
6. Refer to note 4 of the financial statements and to the Alternative performance measures section
beginning on page 254 for reconciliations.
7. Recognised within other income/(expense) – net, see note 5 of the financial statements and to
Alternative performance measures section beginning on page 254 for reconciliations.
8. Refer to note 7 of the financial statements and to Alternative performance measures section beginning
on page 254 for reconciliations.
9. Recognised within non-controlling interests, refer to Alternative performance measures section
beginning on page 254.
Significant items
Significant items are items of income and
expense, which, due to their nature and
variable financial impact or the expected
infrequency of the events giving rise to
them, are separated for internal reporting,
and analysis of Glencore’s results, to aid in
providing an understanding and
comparative basis of the financial
performance of the Group before such items.
In 2024, Glencore recognised a net expense,
after tax and non-controlling interests, of
$5,326 million (2023: $2,418 million) in
significant items comprised of:
• Income of $113 million (2023: expense of
$90 million) relating to Glencore’s share of
significant expenses recognised directly by
our associates.
• Viterra share in earnings of $165 million
(2023: $186 million), relating to the period
following the held for sale accounting
classification as at 30 June 2023 (no
statutory earnings have since been
recognised), as Glencore, for segmental
and internal reporting and analysis
purposes, continues to report its equity
accounted share of Viterra earnings. See
notes 2 and 16.
• Movement in unrealised inter-segment
profit elimination of $45 million (2023:
$258 million). See note 2.
• Fair value related adjustment of
$444 million in respect of inventory
acquired (required to be fair valued higher
under IFRS) as part of the EVR acquisition
which, following the acquisition, was sold
in the ordinary course. See notes 2 and 26.
• Loss on disposals of non-current assets of
$337 million (2023: gain of $850 million),
primarily related to the recycling to the
statement of income of Volcan’s non-
controlling interests ($282 million) upon
disposal in May 2024. The 2023 gain
resulted from the disposal of Cobar
($585 million) in June 2023 and from the
acquisition of the remaining 56.25% in
MARA project ($224 million). See note 4.
• Other expense – net of $1,926 million (2023:
$1,091 million) see note 5. Balance primarily
comprises:
– $445 million (2023: net gain of
$46 million) of net foreign exchange
losses, whereby 2024 primarily relates to
realised foreign currency losses, recycled
from other comprehensive income,
recognised in respect of an intragroup
restructuring.
– $115 million (2023: loss of $103 million) of
mark-to-market gains on equity
investments/derivative positions
accounted for as held for trading,
including the ARM Coal non-
discretionary dividend obligation.
– $295 million (2023: $168 million) relating
to various legal matters and related
costs (legal, expert, compliance),
including in respect of the government
investigations (see note 32) and
monitorships.
– $870 million (2023: $503 million) of
closed site rehabilitation provisioning,
being the movements in restoration,
rehabilitation and decommissioning
estimates relating to sites that are no
longer operational or assets that have
been fully impaired.
– $194 million (2023: $40 million) of
termination and severance related costs
resulting primarily from the decision to
transition Koniambo to care and
maintenance.
2024 Glencore Annual Report
61
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Additional Information
Financial and operational review continued
held. Non-current assets increased from
$59,827 million to $70,946 million, primarily
due the acquisition of EVR in July 2024
($13.1 billion, see note 26), offset by
$1,942 million of impairments to property,
plant and equipment (see note 7).
Current and
non-current liabilities
Total liabilities were $94,800 million as at
31 December 2024, compared to
$85,632 million as at 31 December 2023.
Current liabilities increased from
$49,478 million to $49,709 million. On a net
basis, the movement mainly relates to a
decrease in liabilities held for sale related to
the Volcan disposal ($1,550 million) as noted
above, offset by an increase in current
borrowings of $1,877 million (see note 21).
Non-current liabilities increased from
$36,154 million to $45,091 million, primarily
due to an increase of non-current
borrowings of $3,989 million (see note 21)
and deferred tax and provisions on account
of the acquisition of EVR in July 2024 (see
note 26).
Movements relating to current and non-
current borrowings are set out below in the
net funding and net debt movement
reconciliation and in note 21.
Equity
Total equity was $35,660 million as at
31 December 2024, compared to
$38,237 million as at 31 December 2023, the
movements being primarily the loss for the
year of $2,694 million (including non-
controlling interests of $1,060 million) and
$1,894 million of shareholder distributions
and buybacks, offset by non-controlling
interests recycled to the statement of
income on disposal of Volcan of $282 million
and $1,652 million of non-controlling
interests recognised in respect of the
acquisition of EVR (see note 26).
Other comprehensive
income/(loss)
An income of $21 million was recognised
during 2024, compared to a loss of
$262 million in 2023, primarily relating to
foreign exchange losses recycled to the
statement of income of $345 million (2023:
$3 million), net of mark-to-market losses of
$67 million (2023: $94 million) with respect
to various minority investments (see note 11),
and exchange losses on translation of
foreign operations of $179 million (2023:
$190 million), being primarily our South
African ZAR-denominated subsidiaries.
• Impairments of $2,266 million (2023:
$2,484 million), see note 7. The
corresponding net impact, after income
taxes and non-controlling interests was
$1,655 million (2023: $1,672 million), refer to
Alternative performance measures
section beginning on page 254. The 2024
charges relate primarily to:
– South African Coal operations
($611 million), due to lower thermal coal
price assumptions and the ongoing
export logistics challenges in South
Africa;
– Koniambo ($419 million), following the
announcement in February 2024 that
the operations would transition to care
and maintenance and the continuing
challenging nickel market environment;
– Various custom zinc and copper
metallurgical operations ($1,487 million),
due to significantly lower smelter
treatment charge (TC) revenue streams
over the forecast period; and
– Impairment reversals at various zinc and
lead mining operations ($579 million),
being positively impacted by the lower
forecast zinc and copper TC
assumptions noted above.
The 2023 net charge primarily related to
Mutanda ($762 million), McArthur River
($118 million), Kazzinc ($196 million), and
Nordenham ($191 million), due to
significant changes to key macro
estimates and operational challenges in
certain areas, Mopani advance
($156 million) and an impairment reversal
of $138 million at our Astron oil refinery,
owing to an improved refining margin
outlook.
• Income tax expense of $947 million (2023:
$37 million) – see the Income taxes section
below.
Net finance costs
Net finance costs were $2,334 million during
2024, a 23% increase compared to
$1,900 million in the comparable reporting
period. Interest expense for 2024 was
$2,921 million, up 16% over 2023, mainly due
to higher funding levels over the year,
reflecting the acquisition of EVR in July 2024.
Interest income was $587 million compared
to $615 million in the prior year. See note 6.
Income taxes
An income tax expense of $1,696 million was
recognised during 2024, compared to an
expense of $2,207 million in 2023. Adjusting
for $947 million of income tax expenses
(2023: $37 million) relating to significant
items (primarily on account of impairments,
foreign exchange fluctuations and tax losses
not recognised), the 2024 pre-significant
items tax expense was $749 million (2023:
$2,170 million). The calculated effective tax
rate, pre-significant items, was 32.4%,
compared to 33.6% in 2023.
Statement of financial
position
Current and non-current assets
Total assets were $130,460 million as at
31 December 2024, compared to
$123,869 million as at 31 December 2023.
Current assets decreased from
$64,042 million to $59,514 million, primarily
due to a decrease in assets held for sale
following the disposal of Volcan in May 2024
(see note 16) and inventories, reflecting a net
overall reduction in physical metal units
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Financial and operational review continued
Business and investment
acquisitions and disposals
Net outflows from business acquisitions and
investments acquisitions/disposals were
$6,957 million over the year, compared to an
outflow of $614 million in 2023. The outflow
mainly comprises the acquisition of EVR
($7.0 billion, see note 26).
The net outflow in 2023 mainly comprised
purchases of the remaining interests, not
previously owned, in the MARA project
($290 million) and Noranda Income Fund
($199 million) and a 30% stake in the
Alunorte alumina operation in Brazil
($678 million), offset by the proceeds from
the sale of Cobar ($791 million).
Cash flow and net funding/debt
Net funding◊
US$ million
31.12.2024 31.12.2023
Total borrowings as per financial statements
38,107
32,241
Proportionate adjustment – net funding1
687
746
Cash and cash equivalents
(2,389)
(1,925)
Net funding◊
36,405
31,062
1. Refer to the Alternative performance measures section beginning on page 254 for definition and
reconciliations.
Cash and non-cash movements in net funding
US$ million
2024
2023
Cash generated by operating activities before working capital
changes, interest and tax
11,180
15,117
Proportionate adjustment – Adjusted EBITDA◊1
2,510
2,068
Adjustments included within EBITDA◊1
445
46
Net interest paid1
(1,516)
(1,278)
Tax paid1
(2,304)
(7,069)
Dividends received from associates1
214
568
Funds from operations◊
10,529
9,452
Net working capital changes2
1,759
4,105
Investment in long-term advances and loans2
(75)
–
Acquisition and disposal of subsidiaries – net2
(6,929)
344
Purchase and sale of investments – net2
(23)
(890)
Purchase and sale of property, plant and equipment – net2
(6,737)
(5,561)
Margin (payments)/receipts in respect of financing-related hedging
activities
(693)
897
Acquisition of non-controlling interests in subsidiaries
(5)
(68)
Distributions paid and transactions of own shares – net
(1,894)
(10,130)
Cash movement in net funding
(4,068)
(1,851)
Net funding acquired in business combinations
(570)
(16)
Change in lease obligations
(1,093)
(841)
Foreign currency revaluation of borrowings and other non-cash items
388
(854)
Total movement in net funding
(5,343)
(3,562)
Net funding◊, beginning of the year
(31,062)
(27,500)
Net funding◊, end of year
(36,405)
(31,062)
Less: Readily marketable inventories◊2
25,238
26,145
Net debt◊, end of year
(11,167)
(4,917)
1. Refer to the Alternative performance measures section beginning on page 254.
2. Refer to the Other reconciliations section beginning on page 261.
Cash flow and net funding/debt
The reconciliation in the table on this page is
the method by which management reviews
movements in net funding and net debt and
comprises key movements in cash and any
significant non-cash items.
Net funding◊ as at 31 December 2024
increased by $5.3 billion to $36.4 billion and
net debt◊ (net funding less readily
marketable inventories) increased by
$6.3 billion to $11.2 billion. Funds from
operations◊ were $10.5 billion, up 11% over
prior year, a year that was impacted by the
lag effect of settlement in H1 2023 of
$2.7 billion of 2022 final income tax
payments, in Australia and Colombia, due to
high coal industrial earnings in 2022. The net
funding◊ increase of $5.3 billion, lessened by
$1.8 billion of net working capital inflows, was
after disbursing $6.7 billion of net capital
expenditure, $1.9 billion of shareholder
distributions and buybacks, financing of the
$7.0 billion acquisition of EVR, before
assuming $0.6 billion of its debt (see note 26)
and reflecting $1.1 billion of lease obligations.
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Financial and operational review continued
Liquidity and funding activities
In March 2024 (effective May 2024), Glencore
extended its core syndicated revolving credit
facilities.
As at 31 December 2024, the overall facilities
comprise:
• $9,010 million one-year revolving credit
facility with a one-year borrower’s term-
out option (to May 2026); and
• $3,900 million medium-term revolving
credit facility (to May 2029).
As in previous years, these committed
unsecured facilities contain no financial
covenants, no rating triggers, no material
adverse change clauses and no external
factor clauses.
As at 31 December 2024, Glencore had
available committed liquidity amounting to
$11.5 billion (31 December 2023: $12.9 billion).
Credit ratings
In light of the Group’s extensive funding
activities, maintaining investment grade
credit rating status is a financial priority. The
Group’s credit ratings are currently A3 from
Moody’s and BBB+ from Standard & Poor’s.
Glencore’s publicly stated objective, as part
of its overall financial policy package, is to
seek and maintain a minimum of strong
Baa/BBB credit ratings from Moody’s and
Standard & Poor’s respectively. In support
thereof, Glencore targets a maximum 2x net
debt/adjusted EBITDA◊ ratio through the
cycle, augmented by a net debt cap of
c.$10 billion (excluding marketing lease
liabilities).
Distributions
In accordance with the Company’s
shareholder return policy, the Directors have
recommended a 2024 financial year base
cash distribution of $0.10 per share
amounting to $1.2 billion, accounting for own
shares held as at 1 February 2025, whereby
payment will be effected as a $0.05 per share
distribution in June 2025 and a $0.05 per
share distribution in September 2025 (in
accordance with the Company’s
announcement of the 2025 Distribution
timetable made on 19 February 2025). The
Company will also conduct a buy-back of its
own shares to the value of up to $1.0 billion,
with intended completion by the time of the
Group’s interim results announcement in
August 2025.
The cash distribution is to be effected as a
reduction of the capital contribution
reserves of the Company. As such, this
distribution would be exempt from Swiss
withholding tax. As at 31 December 2024,
Glencore plc had CHF7.3 billion of such
capital contribution reserves in its statutory
accounts. The distribution is subject to
shareholders’ approval at Glencore’s Annual
General Meeting on 28 May 2025.
The distribution is ordinarily paid in US
dollars. Shareholders on the Jersey register
may elect to receive the distribution in
sterling, euros or Swiss francs, the exchange
rates of which will be determined by
reference to the rates applicable to the US
dollar at the time. Shareholders on the
Johannesburg register will receive their
distribution in South African rand. Further
details on distribution payments, together
with currency election and distribution
mandate forms, are available from the
Group’s website (www.glencore.com) or
from the Company’s Registrars.
Capital management objectives
Glencore’s capital management objectives
include preserving its overall financial health
and strength for the benefit of its
stakeholders, maintaining an optimal capital
structure in order to provide a high degree
of financial flexibility at an attractive cost of
capital and safeguarding its ability to
continue as a going concern, while
generating sustainable long-term
profitability. The Board regularly assesses
capital efficient growth opportunities and
aims to make value accretive capital
allocation decisions. For more information
about Glencore’s distribution policy and
other capital management initiatives, see
note 27 of the financial statements.
Balance sheet
optimisation
M&A
opportunities
Shareholder
returns
Business
reinvestment
Capital
management
objectives
2024 Glencore Annual Report
64
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Corporate Governance
Additional Information
Financial and operational review continued
Basis of presentation
The financial information in the Financial and Operational Review is presented on a
segmental measurement basis, including any references to revenue (see note 2) and has
been prepared on the basis as outlined in note 1 of the financial statements, with the
exception of the accounting treatment applied to relevant material associates and joint
ventures for which Glencore’s attributable share of revenues and expenses are presented. In
addition, Glencore disposed of its 23.3% interest in the Peruvian listed Volcan (see note 26) in
May 2024. Prior to its disposal, the Group accounted for Volcan using the equity method for
internal reporting and analysis due to the relatively low economic interest it held.
The Group’s results are presented on an “adjusted” basis, using alternative performance
measures (APMs) which are not defined or specified under the requirements of IFRS, but are
derived from the financial statements, prepared in accordance with IFRS, reflecting how
Glencore’s management assesses the performance of the Group. The APMs are provided in
addition to IFRS measures to aid in the comparability of information between reporting
periods and segments and to aid in the understanding of the activities taking place across
the Group by adjusting for significant items and by aggregating or disaggregating (notably
in the case of relevant material associates and joint ventures accounted for on an equity
basis) certain IFRS measures. APMs are also used to approximate the underlying operating
cash flow generation of the operations (adjusted EBITDA). Significant items are items of
income and expense, which, due to their nature and variable financial impact or the
expected infrequency of the events giving rise to them, are separated for internal reporting
and analysis of Glencore’s results, to aid in providing an understanding and comparative
basis of the underlying financial performance.
APMs used by Glencore may not be comparable with similarly titled measures and disclosures
by other companies. APMs have limitations as an analytical tool, and a user of the financial
statements should not consider these measures in isolation from, or as a substitute for, analysis
of the Group’s results of operations; and they may not be indicative of the Group’s historical
operating results, nor are they meant to be a projection or forecast of its future results.
Alternative performance measures are denoted by the symbol ◊ and are further defined and
reconciled to the underlying IFRS measures in the Alternative performance measures
section beginning on page 254.
Non-Financial and Sustainability Information Statement
Reporting
requirements
Policies
Reference in 2024 Annual Report
1. Environmental
Matters
• Code of Conduct
• Environment Policy
• Tailings Storage Facility Policy
• Supplier Code of Conduct
• Responsible Sourcing Policy
• TCFD, from page 24
• Sustainability, from page 42
• Risk management, from page
86
2. Employees
• Code of Conduct
• Environment Policy
• Health and Safety Policy
• Equality of Opportunity Policy
• Diversity and Inclusion Policy
• Raising Concerns and
Whistleblowing Policy
• Our people, from page 55
• Ethics and compliance, from
page 51
• ECC Committee report, from
page 114
• Risk management, from page
86
3. Human Rights
• Code of Conduct
• Human Rights Policy
• Supplier Code of Conduct
• Responsible Sourcing Policy
• Raising Concerns and
Whistleblowing Policy
• Sustainability, from page 42
• HSEC Committee report, from
page 115
• Risk management, from page
86
4. Social Matters
• Code of Conduct
• Social Performance Policy
• Supplier Code of Conduct
• Responsible Sourcing Policy
• Sustainability, from page 42
• Our people, from page 55
• Risk management, from page
86
5. Anti-corruption
and anti-bribery
• Code of Conduct
• Anti-Money Laundering Policy
• Competition Law Policy
• Anti-Corruption and Bribery
Policy
• Conflict of Interest Policy
• Fraud Policy
• Information Governance Policy
• Market Conduct Policy
• Sanctions Policy
• Raising Concerns and
Whistleblowing Policy
• Inside Information and
Securities Dealing Policy
• Ethics and compliance,
from page 51
• ECC Committee report, from
page 114
• Risk management, from page
86
Reporting
requirements
Policies
Reference in 2024 Annual Report
6. Business model
• Our business model in Strategic
overview, from page 10
7. Principal Risks
and Uncertainties • Enterprise Risk Management
Policy for Industrial Assets
• Risk management, from page
86
8. Non-financial key
performance
indicators
• Strategic overview, from page 8
2024 Glencore Annual Report
65
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Corporate Governance
Additional Information
We source, market and
distribute over 60 commodities
that advance everyday life
Market insight and customer
understanding
Our global scale and presence in more than
60 commodities and over 30 countries gives
us extensive market knowledge and insight
to help us fully understand the needs of
our customers.
Anticipating supply and demand
Our strategy seeks to maximise value
through our integrated marketing and
industrial businesses working side-by-side
to give us presence across the entire supply
chain, delivering in-depth knowledge
of physical market supply and demand
dynamics and an ability to rapidly adjust
to market conditions.
Marketing
activities
Arbitrage opportunities
Many of the physical commodity markets
in which we operate are fragmented or
periodically volatile. This can result in
arbitrage: price discrepancies between the
prices for the same commodities in different
geographic locations or time periods. Other
factors with arbitrage opportunities include
freight and product quality.
Product arbitrage
Disparity
Pricing differences between blends,
grades or types of commodity, taking
into account processing and
substitution costs.
Execution
Ensure optionality with commodity supply
contracts, and look to lock in profitable
price differentials through blending,
processing or end-product substitution.
Geographic arbitrage
Disparity
Different prices for the same product
in different geographic regions, taking
into account transportation and
transaction costs.
Execution
Leverage global relationships
and production, processing and logistical
capabilities to source product in one location
and deliver in another.
Time arbitrage
Disparity
Different prices for a commodity depending
on whether delivery is immediate or at a
future date, taking into account storage
and financing costs.
Execution
Book ‘carry trades’ that benefit from
competitive sources of storage, insurance
and financing.
Creating opportunities
The significant scale of both our own
production and the volumes secured from
third parties allows us to create margin
opportunities from our ability to supply
the commodity qualities the market needs
through processing and/or blending and
optimisation of qualities.
Generating returns
We generate returns as a fee-like income
from distribution of physical commodities
and arbitrage opportunities. Our use of
hedging instruments results in profitability
being largely determined by these activities
rather than by absolute price movements.
2024 Glencore Annual Report
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Additional Information
Marketing activities continued
Highlights
Marketing adjusted EBIT◊ of $3,191 million
was at the top end of our through-the-cycle
long-term guidance range of $2.2-$3.2 billion
per annum, although 8% lower than 2023.
The substantial increase in marketing
adjusted EBIT◊ from metals and minerals
largely offset the year-over-year reduction in
energy and steelmaking coal earnings and
the contribution from Viterra.
Metals and minerals adjusted EBIT◊ of
$2,375 million was 39% higher than in 2023,
reflecting tight physical markets and
drawdown of inventories in various
commodities, including copper and zinc
concentrates. Although at a reduced growth
rate, industrial metals demand continued to
be supported by the energy transition sector
and related infrastructure investment, while
H2 2024 was aided by fiscal stimulus
measures in China and monetary policy
actions in the US.
Adjusted EBIT◊ from the energy and
steelmaking coal business was $908 million,
a 47% decrease from 2023, owing primarily
to the rebalancing and normalisation of
international energy trade flows, following
the extremely elevated price and market
volatility period in 2022-2023. Natural gas
and thermal coal prices both trended
materially lower in 2024, on account of
supply growth and weak European demand.
Viterra’s underlying adjusted EBITDA◊ was
$1.6 billion on a 100 per cent basis (2023:
$2.1 billion). Glencore’s attributable, after-tax
share (reported within corporate and other)
was $165 million, which was $156 million
(49%) lower than last year. Glencore’s
interest in Viterra remains in the held for sale
category, following last year’s agreement for
it to be acquired by Bunge in a cash-and-
shares transaction (see note 16 and the
Alternative performance measures section
beginning on page 254).
Financial overview
US$ million
Metals and
minerals
Energy and
steelmaking
coal
Corporate
and other1
2024
Metals and
minerals
Energy and
steelmaking
coal
Corporate
and other1
2023
Revenue◊
82,819
118,504
–
201,323
69,293
117,415
–
186,708
Adjusted EBITDA ◊
2,436
1,447
(92)
3,791
1,774
2,098
28
3,900
Adjusted EBIT ◊
2,375
908
(92)
3,191
1,714
1,708
28
3,450
Adjusted EBITDA margin
2.9%
1.2%
n.m.
1.9%
2.6%
1.8%
n.m.
2.1%
1. Corporate and other marketing activities includes $165 million (2023: $321 million) of Glencore’s equity accounted share of Viterra.
Selected marketing volumes sold
Units
2024
2023
Change
%
Copper metal and concentrates1
mt
3.6
3.3
9
Zinc metal and concentrates1
mt
3.2
2.5
28
Lead metal and concentrates1
mt
1.3
0.7
86
Gold
moz
2.4
2.1
14
Silver
moz
42.9
50.9
(16)
Nickel
kt
265
234
13
Ferroalloys2
mt
9.8
9.6
2
Alumina/aluminium
mt
10.9
10.2
7
Iron ore
mt
74.6
78.4
(5)
Coal2
mt
57.7
74.9
(23)
Crude oil
mbbl
710
645
10
Oil and gas products
mbbl3
662
558
19
1. Estimated metal unit contained.
2. Includes agency volumes.
3. Includes conversion of oil and gas products to barrels of oil equivalents.
2024 Glencore Annual Report
67
Strategic Report
Corporate Governance
Additional Information
0
5
10
15
20
Fastmarkets cobalt standard grade
(low-end) ($/lb)
Dec
2024
Dec
2023
Dec
2022
Price, $
LME copper cash prices started the year at
$8,450/t, in line with the average over 2023.
Prices remained stable until mid-March
when the China Smelters Purchasing Team
(CSPT) announced potential smelter
production cuts to mitigate further declines
in treatment and refining charges (TC/RCs).
Prices moved rapidly to the $10,000/t level in
April and rallied further during May, when
regional supply imbalances in North America
took prices to a record high of $10,900/t, as
speculative positioning moved to the largest
net long in recent years. The rapid price rise
induced weakness in refined demand from
fabricators in China and increased
availability of smelting-and-refining scrap,
resulting in a consequent increase in visible
refined inventories. As copper prices eased
during Q3 2024, fabricator buying activity
improved, supported by the energy
transition sector and related infrastructure
investment, as well as fiscal stimulus
measures in China and monetary policy
actions in the US. In Q4, the strengthening of
the US dollar and negative sentiment on the
outlook for potential US tariffs and trade
policies, resulted in speculative positioning
reducing its net-length, taking prices lower,
with LME cash copper prices ending the year
at $8,653/t.
Entering 2024, continued expansion of
smelter capacity coupled with constrained
mine supply growth, resulted in spot TC/RCs
decreasing to single digits in March 2024, a
stark contrast to the 7-year high reached in
October 2023. Strong competition for
concentrate continued to weigh on smelter
economics, with the 2025 benchmark TC/
RCs between major miners and Chinese
smelters being agreed at $21.25/2.125c, while
spot cargos transacted below $10/1.0c during
the late stages of 2024.
Cobalt metal prices commenced the year at
$12.80/lb, then continued their downward
trend, reflecting a heavily oversupplied
market resulting from significant production
growth from a key mine in the DRC. Prices
reached a low of $9.75/lb in early Q4, before
some support held $10/lb levels through to
year-end.
Overall demand growth remained healthy,
most notably in consumer electronics, which
exhibited positive momentum having
digested the Covid inventory overhang,
whilst AI-enabled devices induced a more
compelling consumer upgrade cycle. Cobalt
consumed within the electric vehicle (EV)
supply chain was broadly flat year-over-year.
Cobalt hydroxide payability showed the
opposite trend, starting the year around
53-54%, gradually improving to 61-62% in
mid-Q4, before easing back to c.60% by year
end. Throughout the year, Chinese refiners
sought to take advantage of weak payables,
producing more cobalt metal from
hydroxide given its superior economics,
resulting in metal prices underperforming
hydroxide payables. On a net basis,
hydroxide prices retreated approximately
12% from the start of the year to around $6/lb
at year end.
Copper
Cobalt
Marketing activities continued
LME copper
($/t)
0
2,000
4,000
6,000
8,000
10,000
12,000
LME Inventory, th tonnes (’000)
Price, $
Dec
2024
Dec
2023
Dec
2022
0
100
200
300
400
500
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Additional Information
0
100
200
300
400
500
600
LME Inventory, th tonnes (’000)
Price, $
LME nickel
($/t)
0
10,000
20,000
30,000
40,000
Dec
2024
Dec
2023
Dec
2022
0
100
200
300
400
500
600
LME Inventory, th tonnes (’000)
Price, $
LME zinc
($/t)
0
1,000
2,000
3,000
4,000
Dec
2024
Dec
2023
Dec
2022
Average nickel prices fell 22% YoY in 2024, on
the back of a significant physical market
surplus, concentrated in exchange
deliverable metal. This was mainly led by
well above trend supply growth from
Indonesia and China, with the registration of
six new LME deliverable brands since
mid-2023 providing liquidity for surplus
nickel metal units. Exchange stocks (LME
and SHFE) more than doubled through
2024, increasing 120kt YoY. In contrast, the
non-exchange deliverable class 2 nickel
market was more balanced in 2024.
On the demand side, stainless steel output
exhibited robust growth of c.5% globally in
2024. This was, however, unevenly led by
China and Indonesia that together
contributed over 70% of the growth. Strong
Chinese stainless output has been
increasingly directed into exports with nearly
10% directly exported in H2 2024 (almost
double that in 2023), and even more
indirectly, via the growing exports of various
stainless steel containing goods. Meanwhile,
nickel demand growth from EVs and the
broader battery sector is estimated to have
slowed to below 5% in 2024, impacted by the
rise in non-nickel containing battery
chemistries.
Zinc
Concerns around concentrate availability
and the resulting metal production impact,
combined with a relatively stable global zinc
metal demand environment, led to a gradual
zinc price recovery from lows of c.$2,450/t in
Q1 to c.$3,050/t in Q4, resulting in a yearly
average of $2,777/t, a 5% increase from
$2,649/t in 2023.
Global mine supply in 2024 was relatively flat
YoY, contributing to spot TCs dropping from
$85/dmt in January to $-45/dmt in
September, before recording a small up-tick
to $-25/dmt by year-end. Due to low raw
material availability, smelters in both China
(Chinese concentrates imports dropped by
c.13% YoY) and ex-China de-stocked to
record lows.
Given the low TC environment, smelter
economics came under extreme pressure,
resulting in metal production curtailments
of c.0.3Mt YoY. To compensate for the
country’s lower concentrate imports, metal
imports into China increased by c.18% YoY,
supported by the positive arbitrage
conditions for long periods in the year. LME
and SHFE metal inventories increased
marginally by c.25kt during 2024 to 270kt,
although they remain low by historical
standards at c.1 week of global metal
demand.
On the demand side, Chinese demand was
weaker in 2024, due to low orders from the
property and infrastructure sectors. Ex-
China, weak European steel demand was
offset by growth in emerging markets such
as India and South-East Asia and stable
consumption in North America.
The 2024 average LME cash lead price
declined moderately to $2,072/t from $2,137/t
in 2023, with the market reflecting relatively
stable demand conditions. However, in the
concentrates market, strong Chinese
demand, combined with a lack of new
mined supply, drove spot TC/RCs down from
$80/dmt in January to $-10/dmt in
December, though lead-silver concentrates
traded at even lower TCs/RCs.
Marketing activities continued
Nickel
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Additional Information
0
500
1,000
1,500
2,000
LME aluminium
($/t)
0
500
1,000
1,500
2,000
2,500
3,000
LME Inventory, th tonnes (‘000)
Price, $
Dec
2024
Dec
2023
Dec
2022
Fastmarkets ferrochrome
Dec
2024
Dec
2023
Dec
2022
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Price, $
($/lb)
Ferrochrome supply growth outpaced
demand growth over 2024, leading to a
reduction in prices which gathered pace in
H2 2024. The commissioning of large,
low-cost smelters in Inner Mongolia, China
resulted in global margin pressure.
Chrome ore prices remained elevated for
most of the year, due to strong demand
from China. However, the reduction in
ferrochrome prices in H2 triggered a
subsequent decline in chrome ore prices.
Vanadium demand in China continued to
decline in 2024. Demand in the rest of the
world also fell, as steel producers faced
increasing pressure from Chinese exports.
2024 global vanadium supply was
nonetheless resilient, despite many
producers being faced with low prices and
elevated costs.
Aluminium markets began 2024 with prices
trading within a range of $2,150-$2,350/t. In
April, both the UK and USA implemented
tighter sanctions on Russian metal,
including banning metal exchanges from
accepting physical delivery for settlement,
which pushed prices up to $2,798/t by late
May. Prices then ultimately settled within a
new range of $2,450-$2,700/t, closing the
year at $2,552/t, with most market
movements within this range influenced by
macroeconomic developments and general
market flows.
The Fastmarkets' European In-Warehouse
aluminium premium rose during the year
from $202/t to $360/t as a market, with
depleted stockpiles, sought to source
material from the Middle East and Asia.
Similarly, the Platts Japan premium
increased during the year from $77/t to
$203/t as less material was sourced from
Russia, while the Platts Mid-West premium
rose from $414/t to $515/t.
Operational challenges at several large
alumina refineries, bauxite supply
disruptions, and weather-related issues,
contributed to a significant reduction in the
ex-China alumina market balance for 2024,
dropping from an expected +1Mt surplus to a
deficit of c.0.6MT. This tightening of the spot
market caused the Platts Alumina FOB
Australia price to almost double by year end,
closing at $672/t, up from the $350/t close at
the end of 2023.
Ferroalloys
Aluminium
Marketing activities continued
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Additional Information
Price, $
Platts iron ore
($/t)
0
40
80
120
160
200
Dec
2024
Dec
2023
Dec
2022
Inventories at Chinese ports built up over
2024 due to growth in global seaborne
supply (+2% YoY) and a fall of c.2% YoY in
global pig iron output. Iron ore prices
therefore trended down over the year from
c.$140/t at the start of the year to sub-$90/t
in September, before bouncing back off cost
support.
Chinese steel exports surged c.47% YoY via
excess steel mill capacity and subdued
domestic demand, with e.g. real estate steel
demand continuing to struggle (-24% YoY).
China’s steel exports were most competitive
in South-East Asia, Middle East and Africa.
Chinese steel exports (c.11% of Chinese steel
production) were a major support driver for
iron ore prices in 2024.
Due to the availability of low-cost Chinese
steel exports, global steel profitability
remained under pressure, leading to output
drops from ex-China mills, particularly in
Iron ore
Coal
North America and Japan. After starting the
year negative, Chinese blast furnace mill
profitability remained around break-even for
most of 2024, having improved on news of
government stimulus in September/
October. The focus on cost cutting by steel
mills led to low-grade iron ore prices
outperforming high grade ores on a
historical relativity basis.
Global seaborne thermal coal demand grew
by c.3% in 2024 to record levels, driven by a
c.5% increase in imports in the Asia-Pacific
region, which more than offset reduced
demand in Europe. This increased demand
was primarily met by supply growth from
Indonesia and Australia. South African
exports from Richard’s Bay were supported
by improved rail performance, however
overall exports from South Africa decreased
c.5% in 2024, primarily due to reduced
trucked volumes.
Average thermal coal reference prices
continued their decline and normalisation
from the historical highs and market
tightness / disruption seen in 2022/2023. For
2024, the respective annual average index
values were: GCNewc ($135/t; down 21% YoY),
API4 ($105/t; down 12% YoY), and API2 ($113/t;
down 12% YoY).
Global production of blast furnace pig iron,
the main driver of steelmaking coal demand,
decreased by c.2% during the year, with
Chinese (-2.5%) and Russian (-4%) declines
more than offsetting higher production in
India (+1.9%) and Europe (+1.6%). Global
steelmaking coal supply grew c.2% from
Australia and c.16% from USA, contributing
to premium HCC prices averaging $241/t in
2024, 19% below the $296/t average in 2023.
FOB coal price
($/t)
Dec
2023
Dec
2022
Dec
2024
0
50
100
150
200
250
300
350
400
450
Aust HCC
Newc thermal
Marketing activities continued
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Additional Information
Dutch TTF Natural Gas
1-Month Forward ($/MWh)
Dec
2024
Dec
2023
Dec
2022
Price, $
0
10
20
30
40
50
60
70
80
Brent crude oil
($/bbl)
0
20
40
60
80
100
120
Dec
2024
Dec
2023
Dec
2022
Price, $
Brent crude oil opened 2024 at $77/bbl and
rose to over $90/bbl in early April, driven by
the widening conflict in the Middle East,
positive economic data from the USA, and
falling oil product inventories. In late Q2,
prices declined to a low of $77/bbl amid
speculative selloffs and mixed economic
indicators, subsequently recovering to $87/
bbl on reassurances that OPEC+ would delay
production increases. In Q3, weak economic
data weighed on prices, with Brent hitting a
multi-year low of $69/bbl. Escalating
tensions in the Middle East was a key theme
in Q4, with oil prices largely range bound.
Brent crude closed the year at $75/bbl.
Oil
In gas markets, the mild northern
hemisphere 2023/24 winter, together with
higher gas production and inventory levels,
saw Asian and European spot gas prices
falling to pre-energy-crisis levels in Q1. The
European TTF natural gas price benchmark
reached a low of $7/mmbtu in February.
From Q2, gas prices strengthened across
most key markets as lower gas supply,
stronger Asian demand and the potential for
reduced Russian piped gas supply, drove a
tighter market gas balance. TTF closed the
year at $15/mmbtu.
Oil refining margins registered positive gains
at the start of the year as refinery outages
restricted product output. Margins retreated
from March as processing utilisation
recovered, leading to higher refined product
inventories. In Q4 2024, margins recovered
amidst reduced product output due to a
heavy refinery outage maintenance season
and improving product demand.
Marketing activities continued
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Additional Information
Adjusted EBITDA◊ weighting
2023
26%
10%
23%
6%
41%
6%
1%
23%
26%
3%
12%
23%
12%
2024
2024
23%
10%
26%
26%
3%
Marketing
Other industrial
activities
Energy coal
Zinc
Copper
12%
Steelmaking
coal
Industrial activities capex◊
(US$ billion)
0
2
4
6
8
2024
2023
2022
6.1
7.1
4.8
We are a major producer of
commodities that support the
energy and mobility transition,
including copper, aluminium,
cobalt, nickel, zinc and steelmaking
coal, while our high-quality energy
coal provides competitively priced
and reliable energy.
Industrial
activities
Metals and minerals
mining margin ◊
28%
2023: 26%1
Net positive pricing variance
1. Restated. See footnotes to the table
on page 76
Energy and steelmaking coal
margin ◊
36%
2023: 49%
Lower average realised coal prices
Production and financial highlights
(own sourced)
Industrial activities adjusted
EBITDA◊ (US$ billion)
Zinc
(kt)
Nickel
(kt)
Industrial capex◊ weighting
Copper
(kt)
Coal
(mt)
0
5
10
15
20
25
30
2024
2023
2022
13.2
27.3
10.6
0
200
400
600
800
1,000
1,200
2024
2023
2022
1,058.1
951.6
1,010.1
0
200
400
600
800
1,000
1,200
2024
2023
2022
938.5
918.5
905.0
0
20
40
60
80
100
120
2024
2023
2022
107.5
97.6
82.3
0
20
40
60
80
100
120
2024
2023
2022
101.3
99.6
106.1
8.7
7.5
19.9
Energy coal
Steelmaking coal
Others
Oil
Steelmaking
Coal
Nickel
Zinc
Copper
7%
13%
45%
4%
1%
12%
Energy Coal 18%
2024
2024
48% 45%
13%
7%
18%
12%
4%
3%
3%
3%
1%
15%
9%
19%
2023
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Additional Information
Highlights
Industrial adjusted EBITDA◊ of $10,567 million
was $2,635 million (20%) down on the prior
year, mainly due to lower coal contributions,
reflecting particularly the significant
reductions in average realised thermal coal
prices, noting the aforementioned heavily
disrupted energy markets and higher
average prices seen in 2022 and 2023.
Adjusted EBITDA◊ contribution from Metals
and minerals assets was $5,844 million, up
7% compared to the prior year. Key
contributors to the year-over-year increase
were Kazzinc (up $0.5 billion), owing to
higher realised gold prices, and a lower
negative contribution from Koniambo
($0.3 billion), following the decision to
transition its activities into care and
maintenance in Q1 2024. These positive
components were partially offset by
significantly lower contributions from our
custom metallurgical assets (down
$0.3 billion in copper and $0.3 billion in
European and North American zinc),
reflecting their tight physical concentrate
markets, with historically low TC conditions
materialising over 2024. Adjusted EBITDA
metals mining margins◊ were 28% compared
to 26% in 2023, primarily due to a net overall
positive pricing variance for our metals’
commodity basket (copper, zinc, gold and
silver up, with nickel, cobalt and ferrochrome
down).
Industrial activities continued
Financial overview
US$ million
Metals and
minerals
Energy and
steelmaking
coal
Corporate
and other
2024
Metals and
minerals
Energy and
steelmaking
coal
Corporate
and other
2023
Revenue◊
36,753
22,315
6
59,074
35,556
24,858
7
60,421
Adjusted EBITDA◊
5,844
5,316
(593)
10,567
5,445
8,452
(695)
13,202
Adjusted EBIT◊
1,715
2,644
(612)
3,747
1,551
6,132
(741)
6,942
Adjusted EBITDA mining margin◊
28%
36%
30%
26%
49%
35%
Production from own sources – Total1
2024
2023
Change %
Copper
kt
951.6
1,010.1
(6)
Cobalt
kt
38.2
41.3
(8)
Zinc
kt
905.0
918.5
(1)
Lead
kt
185.9
182.7
2
Nickel
kt
82.3
97.6
(16)
Gold
koz
738
747
(1)
Silver
koz
19,286
20,011
(4)
Ferrochrome
kt
1,166
1,162
–
Steelmaking coal
mt
19.9
7.5
165
Energy coal
mt
99.6
106.1
(6)
1. Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group’s attributable share of production
is included.
Adjusted EBITDA◊ contribution from energy
and steelmaking coal assets was
$5,316 million, down 37% compared to 2023,
overwhelmingly due to significantly lower
average realised coal prices, as noted above.
To counter some of this variance, 2024 was
positively impacted by the $999 million
EBITDA contribution from EVR, which was
acquired in July 2024. Adjusted EBITDA◊
energy and steelmaking coal mining
margins reduced to 36% compared to 49% in
2023.
Capitalised capex◊ of $7,118 million (2023:
$6,074 million) was $1,044 million (17%)
higher year-over-year. Excluding EVR, capex
was $349 million (6%) higher, mainly within
our copper business unit, as additional
mining equipment was acquired, various key
projects were advanced, including
Collahuasi’s large-scale desalination plant,
and growth project activities stepped up
within our South American portfolio (Peru
and Argentina).
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Additional Information
Financial information 2024
US$ million
Revenue◊
Adjusted
EBITDA◊
Adjusted EBITDA
mining margin3,4 ◊
Depreciation
and amortisation
Adjusted
EBIT◊
Capital
expenditure◊
Copper
Africa
2,374
222
9%
(820)
(598)
520
Collahuasi1
2,120
1,382
65%
(295)
1,087
911
Antamina1
1,582
1,158
73%
(527)
631
434
South America
2,210
904
41%
(697)
207
828
Development projects2 (MARA, El Pachon, New Range)
–
(106)
(2)
(108)
111
Custom metallurgical
11,535
200
(168)
32
374
Intergroup revenue elimination
(277)
–
–
–
–
Copper
19,544
3,760
44%
(2,509)
1,251
3,178
Zinc
Kazzinc
4,199
1,185
28%
(725)
460
270
Australia
3,829
204
5%
(278)
(74)
366
European custom metallurgical
4,181
49
(84)
(35)
148
North America
898
(17)
(46)
(63)
146
Volcan
–
7
–
7
–
Zinc
13,107
1,428
17%
(1,133)
295
930
Nickel
Integrated Nickel Operations
1,165
182
16%
(329)
(147)
440
Australia
666
59
9%
(35)
24
38
Koniambo
143
(131)
n.m.
(11)
(142)
–
Nickel
1,974
110
13%
(375)
(265)
478
Ferroalloys
2,128
472
22%
(112)
360
178
Aluminium/Alumina
–
78
–
78
5
Iron ore
–
(4)
–
(4)
–
Metals and minerals
36,753
5,844
28%
(4,129)
1,715
4,769
Coal
Steelmaking Canada
2,186
999
46%
(393)
606
695
Steelmaking Australia
1,604
706
44%
(268)
438
172
Thermal Australia
7,258
2,751
38%
(1,178)
1,573
724
Thermal South Africa
1,199
313
26%
(282)
31
177
Cerrejón thermal coal
1,685
222
13%
(324)
(102)
414
Prodeco
–
(37)
(1)
(38)
1
Coal (own production)
13,932
4,954
36%
(2,446)
2,508
2,183
Coal other revenue (buy-in coal)
1,041
Oil E&P assets
296
142
48%
(99)
43
11
Oil refining assets
7,046
220
(127)
93
76
Energy and steelmaking coal
22,315
5,316
36%
(2,672)
2,644
2,270
Corporate and other
6
(593)
(19)
(612)
79
Total Industrial activities◊
59,074
10,567
30%
(6,820)
3,747
7,118
1. Represents the Group’s share of these JVs.
2. Excluding projects associated/aligned with existing operating assets such as Coroccohuayco, where such costs are included within their respective operating assets.
Industrial activities continued
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Additional Information
Industrial activities continued
Financial information 2023
US$ million
Revenue◊
Adjusted EBITDA◊
Adjusted EBITDA
mining margin3,4 ◊
Depreciation and
amortisation
Adjusted EBIT◊
Capital
expenditure◊
Copper
Africa
2,442
195
8%
(575)
(380)
622
Collahuasi1
2,045
1,307
64%
(326)
981
864
Antamina1
1,432
1,031
72%
(403)
628
427
South America
2,209
1,012
46%
(794)
218
599
Australia
106
19
18%
–
19
–
Development projects2 (MARA, El Pachon, New Range)
–
(71)
(1)
(72)
76
Custom metallurgical
10,008
455
(188)
267
310
Intergroup revenue elimination
(148)
–
–
–
–
Copper
18,094
3,948
43%
(2,287)
1,661
2,898
Zinc
Kazzinc
3,685
693
19%
(684)
9
387
Australia
3,400
(53)
(2%)
(276)
(329)
322
European custom metallurgical
4,522
201
(100)
101
125
North America
992
106
(55)
51
89
Volcan
–
48
–
48
–
Zinc
12,599
995
9%
(1,115)
(120)
923
Nickel
Integrated Nickel Operations
1,265
228
18%
(324)
(96)
496
Australia
831
184
22%
(29)
155
34
Koniambo
415
(455)
n.m.
(33)
(488)
–
Nickel
2,511
(43)
20%
(386)
(429)
530
Ferroalloys
2,352
593
25%
(106)
487
135
Aluminium/Alumina
–
(47)
–
(47)
6
Iron ore
–
(1)
–
(1)
–
Metals and minerals
35,556
5,445
26%
(3,894)
1,551
4,492
Coal
Steelmaking Australia
1,917
944
49%
(262)
682
176
Thermal Australia
10,775
6,051
56%
(1,282)
4,769
678
Thermal South Africa
1,505
384
26%
(309)
75
219
Cerrejón thermal coal
2,308
674
29%
(268)
406
246
Prodeco
–
(80)
(6)
(86)
5
Coal (own production)
16,505
7,973
48%
(2,127)
5,846
1,324
Coal other revenue (buy-in coal)
1,034
Oil E&P assets
340
209
61%
(103)
106
14
Oil refining assets
6,979
270
(90)
180
183
Energy and steelmaking coal
24,858
8,452
49%
(2,320)
6,132
1,521
Corporate and other
7
(695)
(46)
(741)
61
Total Industrial activities◊
60,421
13,202
35%
(6,260)
6,942
6,074
3. Adjusted EBITDA mining margin◊ for metals and minerals is adjusted EBITDA◊ excluding non-mining assets as described below ($5,764 million (2023: $5,208 million)) divided by revenue◊ excluding non-mining
assets and intergroup revenue elimination ($20,273 million (2023: $19,767 million) i.e. the weighted average EBITDA margin of the mining assets. Non-mining assets are Copper custom metallurgical assets and
development projects, Zinc European custom metallurgical assets, Zinc North America (principally smelting/processing), Koniambo (transitioned to care and maintenance in Q1 2024), the Aluminium/Alumina
group and Volcan. The 2023 comparative was restated from 23% to 26%, principally reflecting the margin impact of Koniambo following the care and maintenance transition in Q1 2024.
4. Energy and steelmaking coal EBITDA margin◊ is adjusted EBITDA◊ for coal and Oil E&P (but excluding Oil refining) ($5,096 million (2023: $8,182 million)), divided by the sum of coal revenue from own production and
Oil E&P revenue ($14,228 million (2023: $16,845 million)).
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Production data
Production from own sources – Copper assets1
2024
2023
Change %
African Copper (KCC, Mutanda)
Copper metal
kt
224.5
241.5
(7)
Cobalt2
kt
35.1
38.8
(10)
Collahuasi3
Copper in concentrates
kt
245.8
252.2
(3)
Silver in concentrates
koz
3,657
4,032
(9)
Gold in concentrates
koz
45
41
10
Antamina4
Copper in concentrates
kt
144.7
142.4
2
Zinc in concentrates
kt
92.1
156.6
(41)
Silver in concentrates
koz
3,835
3,912
(2)
South America (Antapaccay, Lomas Bayas)
Copper metal
kt
74.1
65.8
13
Copper in concentrates
kt
145.8
173.0
(16)
Gold in concentrates and in doré
koz
80
97
(18)
Silver in concentrates and in doré
koz
1,077
1,267
(15)
Cobar
Copper in concentrates
kt
–
15.0
(100)
Silver in concentrates
koz
–
180
(100)
Total Copper department
Copper
kt
834.9
889.9
(6)
Cobalt
kt
35.1
38.8
(10)
Zinc
kt
92.1
156.6
(41)
Gold
koz
125
138
(9)
Silver
koz
8,569
9,391
(9)
1. Controlled industrial assets and joint ventures only (excludes Volcan). Production is on a 100% basis
except for joint ventures, where the Group’s attributable share of production is included.
2. Cobalt contained in concentrates and hydroxides.
3. The Group’s pro-rata share of Collahuasi production (44%).
4. The Group’s pro-rata share of Antamina production (33.75%).
5. Copper metal includes copper contained in copper concentrates and blister.
6. The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
Industrial activities continued
Copper assets
On a like-for-like basis, removing 15,000
tonnes of Cobar (sold in June 2023) volumes
from the prior period, own sourced copper
production of 951,600 tonnes was 43,500
tonnes (4%) below 2023. This reflected lower
planned production at Antapaccay and
Collahuasi, further impacted by
geotechnical-related delays at Antapaccay
and lower grades and unplanned mill
downtime at KCC. H2 2024 copper
production of 489,000 tonnes was 26,400
tonnes (6%) higher than H1 2024, mainly
reflecting improved KCC production due to
higher-grade ores, higher than planned
run-rates at Mutanda and increased Mount
Isa copper production, following a regional
flooding event earlier in the year.
Own sourced cobalt production of 38,200
tonnes was 3,100 tonnes (8%) lower than
2023, reflecting expected lower grades at
Mutanda.
African Copper
Own sourced copper production of 224,500
tonnes was 17,000 tonnes (7%) lower than
2023, mainly reflecting lower grades and
unplanned mill downtime at KCC. H2 2024
copper production of 123,900 tonnes was
23,300 tonnes (23%) higher than H1 2024,
reflecting planned development into
higher-grade mining areas.
Own sourced cobalt production of 35,100
tonnes was 3,700 tonnes (10%) lower than
2023, mainly reflecting expected lower
grades at Mutanda.
Collahuasi
Attributable copper production of 245,800
tonnes was 6,400 tonnes (3%) lower than
2023, primarily due to planned lower metal
content in the pit sequence and lower
recoveries as a result of complex mineralogy
and water constraints, particularly in H2
2024.
Antamina
Attributable copper production of 144,700
tonnes was broadly in line with 2023.
Attributable zinc production of 92,100 tonnes
was 64,500 tonnes (41%) lower than 2023,
reflecting the expected mining sequence
during the year, characterised by higher
copper/lower zinc grades.
South America
Copper production of 219,900 tonnes was
18,900 tonnes (8%) below 2023, reflecting
Antapaccay’s anticipated higher strip ratio in
2024, further impacted by mine sequence
delays due to geotechnical challenges in Q2
2024, partly offset by increased production
from Lomas Bayas.
Copper custom metallurgical assets
Copper anode production of 440,800 tonnes
was in line with 2023. Q4 2024 production of
127,700 tonnes was 34% higher than Q4
2023, mainly reflecting Altonorte’s periodic
maintenance shutdown in the base period.
Copper cathode production of 463,600
tonnes was 43,700 tonnes (9%) lower than
2023, reflecting Pasar’s planned plant
maintenance during June-July 2024.
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Production from own sources – Zinc assets1
2024
2023
Change %
Kazzinc
Zinc metal
kt
128.3
113.8
13
Zinc in concentrates
kt
99.2
60.1
65
Lead metal
kt
37.4
18.7
100
Lead in concentrates
kt
4.5
16.9
(73)
Copper metal5
kt
17.4
14.8
18
Gold
koz
603
598
1
Silver
koz
3,340
2,727
22
Silver in concentrates
koz
90
548
(84)
Australia (Mount Isa, Townsville,
McArthur River)
Zinc in concentrates
kt
548.4
549.4
–
Copper metal
kt
67.4
69.1
(2)
Lead in concentrates
kt
144.0
147.1
(2)
Silver
koz
486
615
(21)
Silver in concentrates
koz
5,283
5,129
3
North America (Kidd)
Zinc in concentrates
kt
37.0
38.6
(4)
Copper in concentrates
kt
18.3
22.6
(19)
Silver in concentrates
koz
1,343
1,378
(3)
Total Zinc department
Zinc
kt
812.9
761.9
7
Lead
kt
185.9
182.7
2
Copper
kt
103.1
106.5
(3)
Gold
koz
603
598
1
Silver
koz
10,542
10,397
1
Industrial activities continued
Zinc assets
Own sourced zinc production from the zinc
department itself (i.e. excluding Antamina)
was 51,000 tonnes (7%) higher than 2023.
Overall own sourced zinc production of
905,000 tonnes was broadly in line with
2023, reflecting lower zinc tonnes from
Antamina (64,500 tonnes), given its expected
copper/zinc mine sequence during the year,
largely offset by the ramp up of Zhairem
(Kazzinc, up 53,600 tonnes). H2 2024 zinc
production of 487,800 tonnes was 70,600
tonnes (17%) higher than H1 2024.
Kazzinc
Own sourced zinc production of 227,500
tonnes was 53,600 tonnes (31%) higher than
2023, reflecting Zhairem’s ramp up.
Own sourced lead production of 41,900
tonnes was 6,300 tonnes (18%) higher than
2023, also due to Zhairem’s ramp up.
Own sourced copper production of 17,400
tonnes was 2,600 tonnes (18%) higher than
2023, due to an unscheduled furnace
shutdown at the copper smelter in the base
period.
Australia
Zinc production of 548,400 tonnes was in
line with 2023.
Lead production of 144,000 tonnes was
broadly in line with 2023.
Copper production of 67,400 tonnes was
broadly in line with 2023.
North America
Zinc production of 37,000 tonnes was 1,600
tonnes (4%) lower than 2023, due to
expected lower grades.
Zinc custom metallurgical assets
Zinc metal production of 874,500 tonnes
was 121,900 tonnes (16%) higher than 2023,
mainly reflecting the restart of Nordenham
Zinc in February 2024.
Lead metal production of 197,900 tonnes
was 46,700 tonnes (19%) lower than 2023,
reflecting supply delays from Mount Isa to
Northfleet and Portovesme’s lead line being
in care and maintenance.
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Additional Information
Nickel assets
Excluding KNS, own sourced nickel
production of 77,300 tonnes was 6,900
tonnes (10%) higher than 2023. Overall own
sourced nickel production of 82,300 tonnes
was 15,300 tonnes (16%) lower than 2023,
reflecting KNS’s transition to care and
maintenance (22,200 tonnes) in Q1 2024,
partially offset by recovery from the INO
supply chain constraints seen in the base
period (3,700 tonnes) and higher production
from Murrin Murrin (3,200 tonnes).
Integrated Nickel Operations
Own sourced nickel production of 43,000
tonnes was 3,700 tonnes (9%) higher than
2023, reflecting that the base period
endured supply chain constraints and
follow-on impacts from the Raglan strike in
2022, while maintenance outages impacted
the Sudbury smelter in H2 2024. Total
refinery production of 98,400 tonnes was 3%
higher than the comparable 2023 period.
Murrin Murrin
Own sourced nickel production of 34,300
tonnes was 3,200 tonnes (10%) higher than
2023, due to longer than planned
maintenance in the base period.
Ferroalloys assets
Attributable ferrochrome production of
1,166,000 tonnes was in line with 2023.
Industrial activities continued
Production from own sources – Nickel assets1
2024
2023
Change %
Integrated Nickel Operations (INO)
(Sudbury, Raglan, Nikkelverk)
Nickel metal
kt
42.9
39.1
10
Nickel in concentrates
kt
0.1
0.2
(50)
Copper metal
kt
10.2
8.9
15
Copper in concentrates
kt
3.4
4.8
(29)
Cobalt metal
kt
0.6
0.4
50
Gold
koz
10
11
(9)
Silver
koz
175
223
(22)
Platinum
koz
25
24
4
Palladium
koz
70
65
8
Rhodium
koz
3
3
–
Murrin Murrin
Nickel metal
kt
34.3
31.1
10
Cobalt metal
kt
2.5
2.1
19
Koniambo
Nickel in ferronickel
kt
5.0
27.2
(82)
Total Nickel department
Nickel
kt
82.3
97.6
(16)
Copper
kt
13.6
13.7
(1)
Cobalt
kt
3.1
2.5
24
Gold
koz
10
11
(9)
Silver
koz
175
223
(22)
Platinum
koz
25
24
4
Palladium
koz
70
65
8
Rhodium
koz
3
3
–
Production from own sources – Ferroalloys assets1
2024
2023
Change
%
Ferrochrome6
kt
1,166
1,162
–
Vanadium Pentoxide
mlb
18.3
19.5
(6)
Coal assets
Steelmaking coal production of 19.9 million
tonnes mainly reflects Canadian
steelmaking coal production of 12.5 million
tonnes, representing the Elk Valley
Resources (EVR) business acquired in July
2024. Australian steelmaking coal
production was consistent year-over-year.
Energy coal production of 99.6 million
tonnes was down 6% on 2023, reflecting the
progressive impact of scheduled mine
closures, longwall moves in Australia in 2024,
export rail constraints in South Africa and a
combination of permit delays, community
blockades and unusually heavy rain at
Cerrejón.
Canadian steelmaking
EVR production of 12.5 million tonnes reflects
the post-acquisition period from 11 July 2024.
Australian steelmaking
Production of 7.4 million tonnes was in line
with 2023.
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Additional Information
Industrial activities continued
Australian thermal and semi-soft
Production of 63.9 million tonnes was
2.4 million tonnes (4%) lower than 2023, due
to longwall moves at Ulan and the base
period inclusion of 1.4 million tonnes from
Liddell mine, prior to its closure in July 2023.
South African thermal
Production of 16.6 million tonnes was
1.2 million tonnes (7%) lower than 2023,
mainly reflecting measures implemented in
2023-24 to reduce coal production due to
export rail capacity constraints. Should
additional rail capacity be restored,
production rates could be increased.
Cerrejón
Production of 19.1 million tonnes was
2.9 million tonnes (13%) lower than 2023, due
to community blockades and permitting
delays which impacted planned mine
sequencing, in combination with unusually
heavy rains in Q4 2024.
Oil assets
Exploration and production (non-operated)
Entitlement interest oil production of
4.0 million boe was 0.8 million boe (16%)
lower than 2023, largely due to natural field
declines.
Total production – Custom metallurgical assets1
2024
2023
Change %
Copper (Altonorte, Pasar, Horne, CCR)
Copper metal
kt
463.6
507.3
(9)
Copper anode
kt
440.8
443.3
(1)
Zinc (Portovesme, Asturiana, Nordenham,
Northfleet, CEZ Refinery)
Zinc metal
kt
874.5
752.6
16
Lead metal
kt
197.9
244.6
(19)
Coal assets1
2024
2023
Change
%
Canadian steelmaking coal
mt
12.5
–
–
Australian steelmaking coal
mt
7.4
7.5
(1)
Steelmaking coal
mt
19.9
7.5
165
Australian semi-soft coal
mt
3.3
4.1
(20)
Australian thermal coal (export)
mt
54.1
55.2
(2)
Australian thermal coal (domestic)
mt
6.5
7.0
(7)
South African thermal coal (export)
mt
11.7
13.7
(15)
South African thermal coal (domestic)
mt
4.9
4.1
20
Cerrejón
mt
19.1
22.0
(13)
Energy coal
mt
99.6
106.1
(6)
Total coal department
mt
119.5
113.6
5
Oil assets (non-operated)
2024
2023
Change
%
Glencore entitlement interest basis
Equatorial Guinea
kboe
3,772
4,135
(9)
Cameroon
kbbl
201
608
(67)
Total Oil department
kboe
3,973
4,743
(16)
Mineral resources and
ore reserves
The resource and reserve data in the
following tables comprise summary extracts
of the Glencore Resources and Reserves
report as at 31 December 2024, as published
on the Glencore website on 30 January 2025.
The Glencore Resources and Reserves report
was publicly reported, as appropriate for
individual components, in accordance with
the 2012 edition of the Australasian Code for
Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code),
the 2016 edition of the South African Code
for Reporting of Mineral Resources and
Mineral Reserves (SAMREC), the Canadian
Institute of Mining, Metallurgy and
Petroleum (CIM) Standards on Mineral
Resources and Reserves (2014 edition) and
the Petroleum Resources Management
System (PRMS) for reporting of oil and
natural gas reserves and resources.
Data is reported as at 31 December 2024,
unless otherwise noted. For comparison
purposes, data for 2023 has been included.
Metric units are used throughout, and all
data is presented on a 100% asset basis with
the exception of Oil assets which are shown
on a working interest basis. All tonnage
information has been rounded to reflect the
relative uncertainty in the estimates; there
may therefore be small differences in
the totals.
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Additional Information
Measured Mineral
Resources
Indicated Mineral
Resources
Measured and
Indicated Resources
Inferred Mineral
Resources
Proved
Ore Reserves
Probable
Ore Reserves
Total
Ore Reserves
Name of operation
Commodity
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Copper assets
KCC
Ore (Mt)
–
–
266
279
266
279
26
28
–
–
130
128
130
128
Copper (%)
–
–
3.94
4.04
3.94
4.04
3.53
3.62
–
–
3.52
3.69
3.52
3.69
Cobalt (%)
–
–
0.59
0.61
0.59
0.61
0.63
0.64
–
–
0.45
0.46
0.45
0.46
Mutanda
Ore (Mt)
197
180
80
70
276
249
20
20
–
–
108
97
108
97
Copper (%)
1.94
2.02
1.83
1.82
1.91
1.97
2.39
2.49
–
–
1.79
1.88
1.79
1.88
Cobalt (%)
0.61
0.65
0.74
0.81
0.65
0.69
0.73
0.74
–
–
0.65
0.69
0.65
0.69
Collahuasi
(Mt)
1,120
973
4,614
4,600
5,734
5,570
5,100
5,000
798
654
3,365
3,462
4,155
4,122
Copper (%)
0.81
0.81
0.77
0.79
0.79
0.79
0.71
0.72
0.92
0.93
0.76
0.77
0.79
0.80
Molybdenum (%)
0.02
0.02
0.02
0.02
0.02
0.02
0.01
0.01
0.02
0.02
0.02
0.02
0.02
0.02
Antamina
(Mt)
352
367
511
533
863
900
1,220
1,200
248
139
303
87
551
226
Copper (%)
0.79
0.81
0.92
0.89
0.87
0.86
1.01
1.03
0.86
0.91
0.97
0.99
0.92
0.94
Zinc (%)
0.41
0.42
0.72
0.74
0.60
0.61
0.56
0.58
0.47
0.48
0.84
0.94
0.68
0.66
Silver (g/t)
10
10
12
12
11
11
11
11
10
9.1
13
13
12
11
Molybdenum (%)
0.02
0.03
0.02
0.02
0.02
0.02
0.02
0.02
0.03
0.03
0.02
0.02
0.02
0.02
Lomas Bayas
Ore (Mt)
308
272
1,298
1,163
1,606
1,435
632
733
169
145
103
139
272
284
Copper (%)
0.34
0.36
0.27
0.28
0.29
0.30
0.25
0.25
0.30
0.32
0.27
0.25
0.29
0.29
Antapaccay
Ore (Mt)
280
316
842
868
1,123
1,184
95
102
195
227
210
232
404
459
(incl. Coroccohuayco)
Copper (%)
0.45
0.45
0.52
0.51
0.05
0.49
0.32
0.31
0.39
0.40
0.36
0.37
0.37
0.38
Gold (g/t)
0.07
0.07
0.08
0.08
0.08
0.08
0.05
0.05
0.07
0.07
0.07
0.07
0.07
0.07
Silver (g/t)
1.5
1.4
1.9
1.9
1.9
1.9
1.0
1.0
1.1
1.1
1.3
1.3
1.2
1.2
El Pachón
Ore (Mt)
269
269
1,810
1,790
2,080
2,060
3,900
4,000
–
–
–
–
–
–
Copper (%)
0.72
0.72
0.47
0.47
0.50
0.51
0.39
0.39
–
–
–
–
–
–
Silver (g/t)
2.4
2.4
1.9
1.9
2.0
2.0
1.5
1.6
–
–
–
–
–
–
Molybdenum (%)
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
–
–
–
–
–
–
MARA
Ore (Mt)
127
–
1,090
1,020
1,220
1,020
120
55
–
–
–
–
–
–
Copper (%)
0.75
–
0.44
0.51
0.47
0.51
0.29
0.36
–
–
–
–
–
–
Gold (g/t)
0.27
–
0.19
0.20
0.20
0.20
0.09
0.09
–
–
–
–
–
–
Silver (g/t)
3.60
–
3.30
3.36
3.40
3.36
1.90
2.61
–
–
–
–
–
–
Molybdenum (%)
0.03
–
0.03
0.03
0.03
0.03
0.03
0.03
–
–
–
–
–
–
West Wall
Ore (Mt)
–
–
891
861
891
861
1,500
1,100
–
–
–
–
–
–
Copper Project
Copper (%)
–
–
0.50
0.51
0.50
0.51
0.38
0.42
–
–
–
–
–
–
Gold (g/t)
–
–
0.04
0.05
0.04
0.05
0.03
0.05
–
–
–
–
–
–
Molybdenum (%)
–
–
0.01
0.01
0.01
0.01
0.01
0.01
–
–
–
–
–
–
North America
Ore (Mt)
516
516
2,062
2,062
2,582
2,582
1,875
1,875
–
–
–
–
–
–
Copper (%)
0.37
0.37
0.39
0.39
0.38
0.38
0.35
0.35
–
–
–
–
–
–
Industrial activities continued
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Additional Information
Industrial activities continued
Measured Mineral
Resources
Indicated Mineral
Resources
Measured and
Indicated Resources
Inferred Mineral
Resources
Proved
Ore Reserves
Probable
Ore Reserves
Total
Ore Reserves
Name of operation
Commodity
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Zinc assets
Polymetallic Kazzinc
Ore (Mt)
56
49
120
135
176
183
123
122
30.5
23.5
22.4
29.4
52.9
53
Zinc (%)
2.91
2.15
1.49
1.76
1.94
1.87
2.12
2.15
3.95
3.22
2.70
3.75
3.44
3.52
Lead (%)
0.94
0.72
0.73
0.77
0.79
0.76
0.99
0.98
1.09
0.79
0.79
1.05
0.96
0.93
Copper (%)
0.33
0.39
0.17
0.16
0.22
0.22
0.30
0.30
0.14
0.18
0.25
0.15
0.16
0.17
Silver (g/t)
19
18
15
16
16
16
23
23
18
16
10
14
14
15
Gold (g/t)
0.9
1.2
0.81
0.75
0.84
0.87
0.77
0.74
0.26
0.63
0.90
0.51
0.58
0.58
Kazzinc Gold
Ore (Mt)
12
20
51
55
63
74
21
21
9.9
18.3
30.1
36.4
40.0
55
(Vasilkovsky)
Gold (g/t)
2.2
2.2
2.1
2.1
2.2
2.1
1.9
1.9
2.0
1.9
2.8
1.7
2.1
1.8
Mount Isa -
Ore (Mt)
92
81
184
183
277
264
119
104
18.6
17.5
40.7
44.3
59
61
Zinc bearing
Zinc (%)
7.94
9.03
7.05
7.94
7.35
8.27
6.83
7.33
7.00
7.26
6.59
6.72
6.72
6.88
Lead (%)
3.27
3.97
3.47
3.67
3.41
3.76
3.39
3.87
3.47
3.61
3.55
3.54
3.53
3.55
Silver (g/t)
63
79
70
69
68
72
66
75
67
72
65
64
66
65
Mount Isa -
Ore (Mt)
15
35
14
26
29
62
–
1
0.5
1.7
1.8
4.6
2.3
6.4
Copper bearing
Copper (%)
2.07
2.07
1.79
1.80
1.93
1.95
–
1.54
2.00
2.18
1.78
1.87
1.87
1.95
Mount Isa -
Ore (Mt)
22
13
222
205
244
218
136
190
–
–
–
–
–
–
Polymetallics
Zinc (%)
–
–
2.24
2.38
2.04
2.24
3.92
3.69
–
–
–
–
–
–
Lead (%)
–
–
1.98
1.83
1.81
1.72
1.29
1.61
–
–
–
–
–
–
Copper (%)
1.95
1.84
0.55
0.55
0.68
0.63
0.04
0.07
–
–
–
–
–
–
Silver (g/t)
–
–
40
40
37
38
28
33
–
–
–
–
–
–
McArthur River
Ore (Mt)
95
96
32.6
39.9
127
136
3
4
59
65
11.0
14
70
79
Zinc (%)
9.25
9.65
10.35
10.36
9.53
9.85
8.90
8.42
9.45
8.90
6.64
6.37
9.01
8.45
Lead (%)
4.05
4.24
4.83
4.73
4.25
4.39
5.82
5.34
4.41
4.16
3.22
3.08
4.23
3.97
Silver (g/t)
41
42
51
50
43
45
62
59
44
42
34
32
43
40
Mount Margaret
Ore (Mt)
4.6
4.6
7.9
7.9
12.5
12.5
–
–
–
–
–
–
–
–
Copper (%)
0.70
0.70
0.81
0.81
0.77
0.77
–
–
–
–
–
–
–
–
Gold (g/t)
0.20
0.20
0.25
0.25
0.24
0.24
–
–
–
–
–
–
–
–
Zinc North America
(Mt)
21.3
22.6
42.7
42.9
64
65
67
67
1.5
1.7
1.3
1.1
2.8
2.7
Zinc (%)
4.04
3.98
4.47
4.46
4.33
4.30
3.43
3.43
3.42
3.12
3.51
3.75
3.46
3.37
Lead (%)
0.48
0.45
0.45
0.45
0.46
0.45
0.46
0.46
–
–
–
–
–
–
Copper (%)
1.34
1.36
0.85
0.86
1.02
1.03
0.48
0.48
1.41
1.51
1.23
1.28
1.32
1.42
Silver (g/t)
44
43
94
94
77
77
109
109
40
39
45
41
42
40
Gold (g/t)
0.39
0.37
0.26
0.25
0.30
0.29
0.21
0.21
–
–
–
–
–
–
Pallas Green
Ore (Mt)
–
–
–
–
–
–
45.0
45.0
–
–
–
–
–
–
Zinc (%)
–
–
–
–
–
–
7.21
7.21
–
–
–
–
–
–
Lead (%)
–
–
–
–
–
–
1.22
1.22
–
–
–
–
–
–
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Corporate Governance
Additional Information
Measured Mineral
Resources
Indicated Mineral
Resources
Measured and
Indicated Resources
Inferred Mineral
Resources
Proved
Ore Reserves
Probable
Ore Reserves
Total
Ore Reserves
Name of operation
Commodity
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Nickel assets
INO
Ore (Mt)
9.6
7.3
35.9
36.7
45.4
44.0
60
56
9.9
8.6
21.5
23.4
31.3
31.9
Nickel (%)
2.90
2.85
2.52
2.51
2.60
2.56
1.46
1.58
2.36
2.38
2.02
2.02
2.13
2.12
Copper (%)
0.82
0.85
2.00
1.96
1.75
1.77
1.63
1.72
0.67
0.72
0.87
0.84
0.81
0.81
Cobalt (%)
0.07
0.07
0.05
0.05
0.06
0.06
0.03
0.03
0.05
0.05
0.05
0.05
0.05
0.05
Platinum (g/t)
0.81
0.80
1.0
1.0
0.94
0.92
0.69
0.76
0.68
0.72
0.50
0.50
0.55
0.56
Palladium (g/t)
1.9
1.8
1.7
1.7
1.7
1.7
1.1
1.2
1.6
1.7
0.83
0.86
1.1
1.11
Murrin Murrin
Ore (Mt)
159
163
46.2
48.3
205
211
9
9
127
134
24.4
25.4
152
159
Nickel (%)
1.00
1.00
0.98
0.98
1.00
1.00
0.95
0.95
0.95
0.97
0.94
0.95
0.95
0.97
Cobalt (%)
0.08
0.08
0.07
0.07
0.08
0.08
0.06
0.06
0.08
0.08
0.07
0.07
0.08
0.08
Koniambo
Ore (Mt)
15.5
15.8
44.6
44.6
60
60
110
110
–
–
–
–
–
–
Nickel (%)
2.18
2.18
2.09
2.09
2.11
2.11
2.10
2.10
–
–
–
–
–
–
Measured Mineral
Resources
Indicated Mineral
Resources
Measured and
Indicated Resources
Inferred Mineral
Resources
Proved
Ore Reserves
Probable
Ore Reserves
Total
Ore Reserves
Name of operation
Commodity
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Ferroalloys assets
Western
Chrome Mines
Ore (Mt)
63
62
42
62
106
124
91
91
8.9
7.9
1.4
2.6
10.4
10.5
Cr2O3 (%)
42.0
42.0
41.8
41.5
41.9
41.7
42.0
42.0
30.1
30.1
28.7
28.0
29.9
29.5
Tailings
Ore (Mt)
–
–
–
–
–
–
2.0
2.0
–
–
–
–
–
–
Cr2O3 (%)
–
–
–
–
–
–
17.9
17.4
–
–
–
–
–
–
Eastern
Chrome Mines
Ore (Mt)
66
67
55
58
121
125
174
176
19.0
19.9
8.8
7.6
28.2
27.6
Cr2O3 (%)
40.4
40.3
38.6
38.4
39.6
39.4
38.3
38.2
35.6
35.0
31.6
31.5
33.6
34.0
Tailings
Ore (Mt)
–
–
–
–
–
–
–
5
–
–
–
–
–
–
Cr2O3 (%)
–
–
–
–
–
–
–
18.8
–
–
–
–
–
–
Vanadium
Ore (Mt)
37
40
43
37.2
80
77
120
110
10.6
11.3
7.2
7.1
17.8
18.3
V2O5 (%)
0.47
0.47
0.46
0.46
0.46
0.46
0.49
0.49
0.47
0.47
0.43
0.43
0.46
0.46
Manganese
Ore (Mt)
41.7
32.9
14.0
12.3
55.7
45.1
2
3
18.4
20.1
–
–
18.4
20.1
Mn (%)
36.6
37.0
36.2
36.5
36.5
36.8
35.7
36.8
36.0
36.2
–
–
36.0
36.2
Measured Mineral
Resources
Indicated Mineral
Resources
Measured and
Indicated Resources
Inferred Mineral
Resources
Proved
Ore Reserves
Probable
Ore Reserves
Total
Ore Reserves
Name of operation
Commodity
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Aluminium assets
Aurukun
Ore (Mt)
96
96
344
344
440
440
3
3
–
–
–
–
–
–
Al2O3 (%)
53.5
53.5
49.7
49.7
50.5
50.5
48.6
48.6
–
–
–
–
–
–
MRN
Ore (Mt)
463
473
3.6
3.5
467
477
34
150
38.6
43.3
170
2.9
209
46.3
A.Al2O3 (%)
47.4
47.4
48.8
49.0
47.4
47.4
47.3
49.5
48.0
48.9
49.1
49.0
48.9
48.9
R.SiO2 (%)
5.3
5.3
2.5
2.6
5.2
5.3
5.2
4.0
5.2
4.9
4.6
4.9
4.7
4.9
Industrial activities continued
2024 Glencore Annual Report
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Strategic Report
Corporate Governance
Additional Information
Energy and steelmaking coal
Measured Coal
Resources
Indicated Coal
Resources
Inferred Coal
Resources
Coal Reserves
Proved Probable
Marketable
Coal Reserves
Proved Probable
Total Marketable
Coal Reserves
Name of operation
Commodity
2024
2023
2024
2023
2024
2023
2024
2024
2024
2024
2024
2023
Coal assets
Australia
Steelmaking/Thermal Coal (Mt)
7,508
7,397
9,609
9,840
14,030
14,690
913
742
705
561
1,258
1,321
South Africa
Thermal Coal (Mt)
2,094
2,119
789
788
305
305
438
236
273
154
426
448
EVR
Steelmaking Coal (Mt)
2,642
–
2,413
–
1,560
–
178
1,075
117
680
805
–
Canada (non-EVR)
Steelmaking/Thermal Coal (Mt)
45
45
113
113
130
130
–
–
–
–
–
–
Cerrejón
Thermal Coal (Mt)
3,200
3,250
1,250
1,300
700
600
130
100
130
100
230
260
Working Interest Basis
Working Interest Basis
Equatorial Guinea
Cameroon
Total
Equatorial Guinea
Cameroon
Total
Net Reserves
(2P - Proved and
Probable)1
Oil
mmbbl
Gas
bcf
Oil
mmbbl
Gas
bcf
Oil
mmbbl
Gas
bcf
Combined
mmboe
Net Contingent
Resources (2C)1
Oil
mmbbl
Gas
bcf
Oil
mmbbl
Gas
bcf
Oil
mmbbl
Gas
bcf
Combined
mmboe
31-Dec-23
6.5
98.0
1.2
–
7.7
98.0
24.4
31-Dec-23
27.0
310.0
–
–
27.0
310.0
80.0
Revisions
(1.3)
(1.7)
–
–
(1.3)
(1.7)
(1.6)
Revisions
–
–
–
–
–
–
–
Divestment
–
–
–
–
–
–
–
31-Dec-24
27.0
310.0
–
–
27.0
310.0
80.0
Production
(1.2)
(28.0)
(0.3)
–
(1.5)
(28.0)
(6.3)
1. ‘Net’ reserves or resources are equivalent to Glencore’s working interest in the asset/property.
31-Dec-24
4.0
68.3
0.9
–
4.9
68.3
16.5
Industrial activities continued
2024 Glencore Annual Report
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Strategic Report
Corporate Governance
Additional Information
Carbon intensity of industrial
activities
We show the carbon intensity of our
industrial operations as scope 1 and 2
emissions compared to production from
those operations (adjusted to align with our
organisational boundary of operational
control and expressed in tonnes Cu-
equivalent). We have shown metals mining,
coal mining excluding EVR, metals smelting
and oil refining separately. Emissions data is
collected on a site-by-site rather than
activity-by-activity basis. Integrated sites
with mining and smelting capability have
therefore been allocated to the most
appropriate category.
Our scope 1 and 2 emissions have been
restated to reflect industrial asset portfolio
changes from acquisitions and disposals, a
correction of the applied global warming
potential for methane aligned with AR6 and
GHG Protocol guidance, an update of
emissions factors and material density
conversions to align with the latest datasets
published by the GHG Protocol, and from a
methodology change in measuring fugitive
emissions at three of our Australian open-cut
coal mines. For details on our restatements,
refer to the Baseline emissions restatement
in the TCFD section on page 38. Our relevant
Cu-equivalent production for metals mining
has been restated to include production
from third-party feed sources.
Metals mining1
2024
2023
Reported own sourced metals production
Copper
kt
951.6
1,010.1
Zinc
kt
905.0
918.5
Cobalt
kt
38.2
41.3
Nickel
kt
82.3
97.6
Lead
kt
185.9
182.7
Gold
koz
738
747
Silver
koz
19,286
20,011
Converted to copper equivalents3,4
kt
2,059
2,178
Add: Cu-equivalent third-party feed
kt
611
665
Less: attributable Cu-equivalent production
from non-operated JVs
kt
(460)
(492)
Add: Cu-equivalent production
from Volcan
kt
42
168
Less: Cu-equivalent production of assets
disposed since 2019
kt
(42)
(183)
Relevant Cu-equivalent production
kt
2,210
2,336
CO2e emissions of operated assets (Scope 1)
mt
4.4
6.1
CO2e emissions of operated assets (Scope 2)
mt
3.1
2.8
CO2e emissions of operated assets
(Scope 1 & 2)
mt
7.5
8.9
Carbon intensity of metals mining
t CO2e/t
Cu-equiv
3.4
3.8
Metals smelting2
2024
2023
Reported smelter production
Copper anode
kt
440.8
443.3
Copper cathode
kt
463.6
507.3
Lead
kt
197.9
244.6
Zinc
kt
874.5
752.6
Ferroalloys
kt
1,165.7
1,162.2
Converted to copper equivalents
kt
1,506
1,516
Add: minority interests share of
operated JVs
kt
42
42
Add: net Cu-equivalent production of assets
acquired since 2019
kt
-
25
Relevant Cu-equivalent production
kt
1,549
1,583
CO2e emissions of operated assets (Scope 1)
mt
4.1
4.2
CO2e emissions of operated assets (Scope 2)
mt
6.6
6.0
CO2e emissions of operated assets
(Scope 1 & 2)
mt
10.7
10.2
Carbon intensity of metals smelting
t CO2e/t
Cu-equiv
6.9
6.4
Coal mining (excluding EVR)
2024
2023
Reported coal production
mt
119.5
113.6
Less: EVR production
mt
(12.5)
-
Add: minority interests share of
operated JVs
mt
18.2
17.6
Less: non-operated JVs
mt
(5.5)
(5.7)
Relevant coal production
mt
119.7
125.5
Converted to copper equivalents
mt
1,376
1,442
CO2e emissions of operated assets
excluding EVR (Scope 1)
mt
6.8
7.0
CO2e emissions of operated assets
excluding EVR (Scope 2)
mt
1.0
1.2
CO2e emissions of operated assets
excluding EVR (Scope 1 & 2)
mt
7.8
8.2
Carbon intensity of coal mining
excluding EVR
t CO2e/t coal
0.065
0.065
Carbon intensity of coal mining
excluding EVR
t CO2e/t Cu-equiv
5.6
5.7
1. Includes integrated mine/smelter operations:
Mount Isa, Kazzinc, INO, Murrin Murrin,
Koniambo.
2. Includes integrated mine/smelter operations:
Ferroalloys.
3. Converted to Cu-equivalents on the basis of 2019
average prices.
4. Also includes by-products such as platinum,
palladium and rhodium.
CO2e emissions of operated assets (Scope 1 & 2)
2024
2023
CO2e emissions of operated assets
(Scope 1 & 2)
Metals
mt
7.5
8.9
Coal
mt
7.8
8.2
Smelters
mt
10.7
10.2
Astron Energy
mt
1.1
0.9
Add: other assets
mt
-
0.1
Total reported CO2e emissions
(Scope 1 & 2)
mt
27.1
28.2
Change vs. restated 2019 baseline
-21%
-18%
Industrial activities continued
Oil refining and distribution
2024
2023
Astron Energy - energy content of
refined products
billion Btu
166,204
136,665
CO2e emissions of Astron Energy
(Scope 1)
mt
0.9
0.8
CO2e emissions of Astron Energy
(Scope 2)
mt
0.2
0.1
CO2e emissions of Astron Energy
(Scope 1 & 2)
mt
1.1
0.9
Carbon intensity of Astron Energy
t CO2e/billion Btu
6.3
6.6
2024 Glencore Annual Report
85
Strategic Report
Corporate Governance
Additional Information
Risk management
Effective risk management is
crucial in helping the Group
achieve its objectives. This
includes preserving Glencore’s
overall financial strength for the
benefit of stakeholders and
safeguarding its ability to
continue as a going concern,
while generating sustainable
long-term returns.
Glencore’s approach to risk management
and control is approved and overseen
by our Board and its committees and
managed by our Group Leadership team.
Risk management is one of the core
responsibilities of the Group
Leadership team and it is central
to our decision-making processes.
The Board assesses and
approves our overall risk
appetite and monitors our risk
exposure, supported by the
Audit, Health, Safety,
Communities (HSEC) and
Ethics, Compliance and Culture
(ECC) Committees.
There are four key areas the
Board needs to address to
meet its obligations under
the 2018 UK Corporate
Governance Code:
• conducting a robust
assessment of emerging and
principal risks;
• monitoring the risk
management and internal
control system and, at least
once a year, reviewing
its effectiveness;
• considering the long-term
viability and success of
Glencore which is dependent
on the management of risk;
and
• promoting a risk-aware
culture that encourages
proactive risk-based
management and decision
making.
In addition to this ongoing work
of the Board and its committees,
the Board undertakes a
complete review of the Group’s
principal and emerging risks in
its Q4 meeting, which are then
updated and considered in
subsequent meetings as part
of the review process for this
report and the half-year report.
We have five Board committees:
• Audit Committee
• ECC Committee
• HSEC Committee
• Nomination Committee
• Remuneration Committee
These committees provide
oversight of the risks in their
respective areas. They are tasked
with, among other things,
evaluating and monitoring these
risks. They receive regular
reports from the Group external
auditor, as well as corporate
functions, including:
• Compliance
• Finance
• Group Internal Audit and
Assurance (GIAA)
• Health, Safety, Environment,
Social Performance and
Human Rights (HSEC&HR)
• Human Resources
• IT
• Legal
• Sustainability
Our CEO leads our
management team, supported
by our CFO, Head of Industrial
Assets and General Counsel
and the rest of our Group
Leadership, comprising our
Head of Corporate Affairs,
Head of Human Resources
and Head of Sustainability,
and departmental leadership
comprising the heads of each
marketing department and our
industrial leads.
Management is responsible
for the design, implementation
and maintenance of the risk
management programme.
By operation of its oversight
function, management reviews
on an ongoing basis the impact
of our risks and appropriate
mitigants.
Management continues
to develop and update the
relevant internal risk
management procedures and
standards that support the risk
management programme.
Business risk owners in
departments are responsible
for their respective operations,
including implementing a risk
management process that
identifies, assesses and
manages risk.
Each corporate function
monitors risks in its respective
area and coordinates and leads
the design and maintenance of
its relevant risk monitoring
programme, which is then
implemented by management
and relevant risk owners in the
business. These corporate
functions provide regular
updates to the Board and its
committees covering various
risks and the performance of the
relevant controls in place.
Reporting covers various topics,
including Group VaR, credit
exposure, GIAA reports, litigation,
compliance monitoring and
HSEC&HR matters. The Board
also receives updates on the
Raising Concerns Programme
and material external and
internal investigations.
Management
Departments and corporate functions
Board
Board committees
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Risk management process
Our risk management approach is modelled
after industry standards for internal control
frameworks. We seek to apply our approach
across the organisation, supported by our
controls and risk culture as follows:
Glencore’s principal risks and uncertainties
(PRUs) are organised into four key pillars:
• Strategic;
• HSEC;
• Finance and Information Technology; and
• Legal, Compliance and Human Resources.
Risk is identified, assessed and monitored
across each of the respective functions
by applying a framework that identifies
material matters and supports an ongoing
assessment of what is most relevant to our
business and stakeholders.
Managing risk for joint ventures
We take measures to ensure that our
material risk management practices are
implemented at the joint ventures (JVs) that
we control or operate. In other JVs, we seek
to influence our JV partners to adopt our
commitment to responsible business
practices and implement appropriate
programmes in respect of their main
business risks.
Group Internal Audit and
Assurance
GIAA provides independent and objective
assurance and advisory services to help
strengthen governance, risk management
and control processes. In doing so, GIAA
supports the Board and senior management
in protecting the stakeholders, assets,
reputation, and sustainability of Glencore.
Risk management continued
Strategic risks
Board
PRUs
• Supply, demand and
prices of commodities
• Geopolitical, permits and
licences to operate
• Operational delivery
• Low-carbon economy
transition
• Major project delivery
HSEC risks
HSEC
PRUs
• Health, safety and
environment
• Social performance and
human rights
• Catastrophic and natural
disaster events
Finance and Information
Technology risks
Audit
PRUs
• Currency exchange rates
• Counterparty credit and
performance
• Liquidity
• Information technology
Legal, Compliance
and Human
Resources risks
ECC
PRUs
• Laws and regulations
• Attracting, developing
and retaining people
with the necessary skills
Risk management process
Building on the structure of oversight, responsibility and process, these PRUs are
managed across our two segments (marketing and industrial activities) by cross-segment
functional teams.
The Audit Committee reviews and approves
the risk-based GIAA audit plan and the HSEC
and ECC Committees review and endorse
their relevant components of the plan.
These committees are all regularly
updated on delivery of the GIAA audit
plan, relevant findings, and the progress
on the implementation of agreed
management actions.
The GIAA audit plan is developed through
top-down discussions with senior
management and bottom-up independent
risk assessments of GIAA’s audit and
assurance universe. GIAA also performs
reviews at the direction of senior
management and the Board committees.
GIAA’s work focuses on evaluating whether
relevant controls are designed adequately
and operating effectively to mitigate key
risks.
The Audit Committee has concluded
that the GIAA function remains effective.
External assurance
Internal assurance
Monitoring
Internal controls
Identify
Measure
Mitigate and control
Report
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Risk management continued
Principal and emerging risks
Our approach is framed by the ongoing
understanding of the risks that we are
exposed to, emerging trends that could
seriously impact our business model, our risk
appetite in respect of these risks, how these
risks change over time and our efforts to
ensure risk monitoring takes place across
multiple organisational levels.
In accordance with UK Financial Reporting
Council (FRC) guidance, we define a
principal risk as a risk or combination of risks
that could seriously affect the performance,
future prospects or reputation of Glencore.
These include those risks which would
threaten the business model, future
performance, solvency or liquidity
of the Group.
The Group understands an emerging risk as
a risk that has not yet fully crystallised but is
at an early stage of becoming known and/or
coming into being and expected to grow in
significance in the longer term. Emerging
risks typically have their origin outside
Glencore and there is often insufficient
information for these risks to be fully
understood and mitigation by the Group
may not be possible.
The Board mandates its ECC, HSEC and
Audit Committees to identify, assess and
monitor the principal and emerging risks
relevant to their respective remits. These
committees meet at least four times a year
and are always followed by a meeting of the
Board, giving the opportunity for all
Directors to review and discuss their work.
Risk assessment
The assessment of our principal risks,
according to exposure and impact,
is detailed on the following pages.
The commentary on the risks in this section
should be read in conjunction with
the explanatory text under the section
Understanding our risk information below
and the Important notice at the end of this
report.
In total, there are 14 PRUs (2023: 12), of which
the following five are the most significant
and may potentially give rise to the most
material and adverse effects on the Group:
Marketing risk management
Glencore’s marketing activities are
exposed to a variety of risks, such as
commodity price, basis, volatility, foreign
exchange, interest rate, credit and
performance, and liquidity. Glencore
devotes significant resources to
developing and implementing policies
and procedures to identify, monitor
and manage these risks.
Glencore’s marketing risk (MR) is managed
at both the department and corporate
level. Initial responsibility for risk
management is provided by the
businesses in accordance with and
complementary to their commercial
decision making. A support, challenge
and verification role is provided by the
corporate MR function headed by the
Chief Risk Officer (CRO) via its daily risk
reporting and analysis which is split
by market and credit risk.
The MR function monitors and analyses
the large transactional flows across many
locations using timely and comprehensive
recording and reporting of resultant
exposures, which provides the
encompassing positional analysis,
and continued assessment of universal
counterparty credit exposure.
The MR team provides a wide array of daily
and weekly reporting. The MR function
strives to continuously enhance its stress
and scenario testing as well as improve
measures to capture additional risk exposure
within the specific areas of the business.
Value at Risk
One of the tools used by Glencore to monitor
and limit its primary market risk exposure,
principally commodity price risk related
to its physical marketing activities, is a value
at risk (VaR) computation. VaR is a risk
measurement technique, which estimates
a threshold for potential loss that could
occur on risk positions as a result of
movements in risk factors over a specified
time horizon, given a specific level of
confidence and based on a specific price
history. The VaR methodology is a
statistically defined, probability-based
approach that takes into account market
volatilities, as well as risk diversification
by recognising offsetting positions and
correlations between commodities and
markets. In this way, risks can be
measured consistently across markets
and commodities and risk measures can
be aggregated to derive a single risk value.
Glencore uses a VaR approach based
on Monte Carlo simulations computed
at a 95% confidence level and utilising
a weighted data history for a one-day
time horizon.
Glencore’s Board, as part of its annual
review process approved a Group VaR
limit of $200 million.
The year-end VaR (one day 95%) was
$28 million, comfortably within the
Group’s $200 million limit. Average Group
VaR during 2024 was $53 million, with an
observable high of $76 million and a low of
$28 million, while average equivalent VaR
during 2023 was $92 million. There were
no limit breaches during 2024.
Jul
Jan
Dec
Nov
Oct
Sep
Ago
Jun
May
Apr
Mar
Feb
VaR progression
$m
200
150
100
50
0
Metals and minerals
Oil and gas
• Supply, demand and prices of commodities;
• Liquidity;
• Geopolitical, permits and licences to operate;
• Laws and regulations; and
• Catastrophic and natural disaster events.
Understanding our risk information
There are many risks and uncertainties which
have the potential to significantly impact our
business. The order in which the identified
risks and uncertainties appear does not
necessarily reflect the likelihood of their
occurrence or the relative magnitude
of their potential material adverse effect
on our business.
To enhance understanding, we have sought
to provide examples of specific risks, but the
below list does not purport to be exhaustive.
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Risk management continued
Our latest documentation for debt investors
and their related risk disclosures is available
at: glencore.com/investors/debt-investors.
To provide additional context for the
descriptions included in this section:
• ‘risk’ includes an uncertainty or hazard and
together with ‘material adverse effect on the
business’ should be understood as a
negative change which can seriously affect
the performance, future prospects or
reputation of the Group. These include those
risks which would materially threaten the
business model, future performance,
reputation, solvency or liquidity of the Group;
• where we hold minority interests in certain
businesses, although these entities are not
generally subsidiaries and would not usually
be subject to the Group’s operational control,
these interests should be assumed to be
subject to these risks. ‘Business’ refers to
these and any business of the Group;
• where we refer to natural hazards, events
of nature or similar phraseology we are
referring to matters such as earthquakes,
floods, severe weather and other natural
phenomena;
• where we refer to ‘mitigation’ or
‘management’ we explains the steps we
take to reduce or manage risks but we do
not intend to suggest that we eliminate
such risks. Our mitigation and
management of risks encompasses a
broad range of actions and also usually
includes taking out insurance where it is
customary and economic to do so;
• this section should be read as a whole;
often commentary in one section is
relevant to other risks and the occurrence
of one risk may exacerbate the other risks
we face;
• ‘commodity/ies’ will usually refer to those
commodities which the Group produces
or sells; and
• a reference to a note is a note to the 2024
financial statements.
Risk appetite
Following from our strategy and our key risk
principles, our risk appetite can be defined
as ‘the nature and extent of risk the Group is
willing to accept in relation to the pursuit of
its objectives’. We look at risk appetite from
the context of severity of the consequences
expected should the risk materialise
following an evaluation of any internal
or external factors influencing the risk
and the status of management actions
to mitigate or control the risk.
If a risk exceeds our appetite, it can threaten
the achievement of our objectives and may
require a change to our strategy. If a risk is
approaching the limit of the Group’s appetite,
management action may be required to
ensure the risk remains within appetite levels.
For certain risks, such as those relating to
safety, compliance or cyber security, our risk
appetite for exceptions or deficiencies in our
material controls is very low. Our internal
assurance programmes seek to evaluate
these material controls along with technical
and specialised experts and the results
of that assurance work will determine
the risk appetite evaluation, along with
the management response to any
issues identified.
We classify our PRUs and set the corresponding
risk appetite categorisations as follows:
Averse
Mitigation of risk and uncertainty to a low
probability of occurrence is a paramount
objective as the consequences of occurrence
could be catastrophic for the Group.
These PRUs should be considered in
connection with any forward-looking
statements in this document as explained in
the Important notice at the end of this
report.
Identifying, quantifying and managing risk is
complex and challenging. Although we seek
to identify and, where appropriate and
practical, actively manage risk through the
implementation of the requirements
outlined in our policies, standards and
procedures, there can be no assurance that
these measures will be effectively
implemented or adequately protect the
Group against identified risks, including the
PRUs described in the following pages.
This section describes our approach and efforts
which seek to manage and mitigate risk. Risk
is, however, by its very nature uncertain and
inevitably events may lead to our policies,
standards and procedures not having the
intended mitigating effect on the negative
impacts of the occurrence of a particular event.
Our scenario planning and stress testing may
accordingly prove to be inadequate,
particularly in situations where material
negative events occur in close succession.
Many risks that we face are connected and the
effects of one risk may exacerbate another. This
interdependence highlights the importance of
considering all potential risks holistically to
effectively manage their cumulative impact.
Our analysis should be read against all risks to
which it may be relevant.
In this section, we have sought to update our
explanations, reflecting our current outlook.
Certain investors may also be familiar with
the risk factors that are published in the
Group debt or equity prospectuses or listing
documents. These provide in part some
differing descriptions from our PRUs.
Minimal
Mitigation to a minimal level of residual
risk for risks that present less severe
consequences ultimately resulting in an
agreed operational tolerance level, such
as VaR and liquidity minimum limits, or
the thresholds set within the authority
delegated to management.
Cautious
The risk is of a strategic and inherent
nature of the business environment in
which we operate. Exposure and
tolerance to such risks (e.g. supply and
demand of commodities) are a function
of the strategy chosen, matters of which
are reserved for the Board and/or
shareholders.
We further assess the potential impact and
likelihood of PRUs, which informs our analysis
of these risks in comparison to the prior year.
Impact
Impact represents the impact of the risks
once all material controls and other
mitigating factors have been applied. It is
the residual impact the risk might have on
the Group’s operations and viability. Impact
is measured as low, medium and high.
Likelihood
Likelihood, similar to impact, is the
residual likelihood of a risk materialising
after all material controls and other
mitigating factors have been applied.
It is in direct correlation with the level
of control that management has over a
particular given risk. The more a risk is
subject to a higher degree of external
factors, the higher the likelihood will be.
Likelihood is measured as unlikely,
possible and likely.
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Summary map of PRUs
Risk management continued
Unlikely
Possible
Likely
10 11
12 13 14
8
1
7
9
2
5
6
3
4
Impact
Low
Medium
High
Risk probability change
in 2024 vs. 2023
Increase
Stable
Decrease
Principal Risks
Risk
appetite
Impact
Likelihood
2024 vs.
2023
Strategic
1
Supply, demand and prices of commodities
Cautious
Likely
2
Geopolitical, permits and licences to operate
Cautious
Possible
3
Operational delivery
Minimal
Possible
4
Low-carbon economy transition
Cautious
Possible
5
Major project delivery
Minimal
Possible
New
HSEC
6
Health Safety and Environment
Averse
Possible
7
Social performance and human rights
Minimal
Likely
8
Catastrophic and natural disaster events
Averse
Unlikely
Finance and IT
9
Currency exchange rates
Minimal
Likely
10
Counterparty credit and performance
Minimal
Possible
11
Liquidity
Minimal
Possible
12
Information technology
Minimal
Possible
Legal, Compliance and Human Resources
13
Laws and regulations
Averse
Possible
14
Attracting, developing and retaining people
with the necessary skills
Cautious
Possible
New
Emerging risks
Material substitution
2024 developments
Supply, demand and prices
of commodities
Average prices for our key commodities'
benchmarks, with the exception of copper,
were mostly lower over 2024 compared to
2023. The progressive normalisation of
energy markets over the course of 2024
resulted in declines in the average
Newcastle and API4 thermal coal prices of
22% and 13%, respectively, compared to 2023,
while key battery metals prices (cobalt and
nickel) also declined due to market
oversupply. Copper and zinc concentrate
supply (relative to smelter capacity) has
been tight, resulting in smelter treatment
charges (TCs) reaching historic lows, even
reaching negative points over the period.
Short to medium term forecasts suggest
TCs are to remain at relatively low levels,
which has resulted in a series of strategic
reviews and evaluations of the longer-term
business prospects for a number of our
custom smelters.
Mergers and acquisitions
The acquisition of Elk Valley Resources (EVR)
was a meaningful development for the
Group. The acquisition closed in July 2024
and we have taken significant steps to
integrate EVR into the Group.
Following the close of the EVR transaction,
and after extensive consultation with our
shareholders, we announced that we would
be retaining our coal and carbon steel
materials business, as the Board concluded
that this provided the optimal pathway for
demonstrable and realisable value creation
for Glencore shareholders.
Operational delivery
Our production results across commodities
were in line with our market guidance for
2024 reflecting stronger second half
performances across our key commodities.
Copper production demonstrated
progressive recovery at Antapaccay
following a geotechnical event in H1, higher
feed grades and earlier unplanned mill
downtime at KCC. Cobalt production was
lower than 2023 reflecting lower grades at
Mutanda. Zinc production was broadly in
line with 2023 reflecting lower zinc tonnes
from Antamina offset by the ramp up of
Zhairem. Nickel production was impacted by
moving Koniambo to care and maintenance,
offset by improved performance at INO and
higher production from Murrin Murrin.
Thermal coal production reflected the
progressive impact of scheduled mine
closures, longwall moves in Australia,
export rail constraints in South Africa
and a combination of permit delays,
community blockages and unusually
heavy rain at Cerrejón.
Low-carbon economy transition
At our 2024 Annual General Meeting (AGM),
over 90% of voting shareholders supported
Glencore's 2024-2026 Climate Action
Transition Plan (2024-2026 CATP). We are
currently assessing how best to integrate
the EVR assets into our climate transition
strategy, recognising that the transition
away from steelmaking coal for steel
production will be slower than thermal coal.
Safety
Regrettably, there were four∆ work-related
fatalities at our industrial operations in 2024,
in South Africa, Peru, Kazakhstan and
Australia. While other safety indicators have
shown decreasing or stable trends, our
objective is to prevent work-related fatalities
wherever we operate and significant further
initiatives have been launched to address
this ongoing critical challenge.
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Risk management continued
Legal and compliance
Investigations by the Dutch and Swiss
authorities were resolved in August 2024
with a summary penalty order and an
abandonment order. This followed
resolutions with the US, UK and Brazilian
authorities in 2022. The Group also continues
to face class action claims in the UK related
to the announced resolutions. In September
2024, Jersey authorities notified the Group
that it is under investigation which appears
to be related to the same underlying facts as
the concluded resolutions with the other
authorities. The Group may also face
additional investigations by authorities in
other jurisdictions.
Monitors
The independent compliance monitors
mandated under our resolutions with
the DOJ were appointed in June 2023
and issued their first report in March 2024.
The Group has made significant progress
in implementing the recommendations
in the first report. The monitors recently
completed their second review period
during which they continued to undertake
various activities including extensive
document review and multiple site visits,
which involve interviews, transaction testing,
and other analysis. We will continue to work
to address their recommendations and
further enhance our Ethics and Compliance
Programme.
Geopolitical developments
Geopolitical developments continue to
evolve, contributing to market uncertainty.
Recent and anticipated policy changes
under the new US administration,
particularly related to tariffs, bear careful
monitoring in the coming months. In
response to newly announced tariffs, other
governments may institute further
retaliatory tariffs and seek to exert more
control over their natural resources. This
may, in turn, disrupt or curtail our operations,
business activities or ability to pursue new
opportunities or cause us to incur additional
costs, particularly in relation to sourcing and
logistics. At the same time, governments
continue to tighten sanctions, particularly
concerning individuals and companies
associated with conflicts around the world.
This requires ongoing vigilance.
Major projects
The emerging pro-business environment in
Argentina have created a more constructive
environment for Glencore to grow its copper
business via development of the MARA and
El Pachon projects. Given the portfolio of
these and other large projects, the Group
has established a dedicated global Capital
Projects Group department under a new
Head of Capital Projects reporting to the
Head of Industrial Assets. Given the
quantum of planned capital expenditure, as
well as various closure projects across the
world, Major project delivery (previously
included under Operational delivery) has
been added as a standalone principal risk.
Attracting, developing and
retaining people
The Group faces ongoing challenges to
ensure that the right capabilities are
available to manage risks and deliver on
performance targets. This is becoming a
pervasive risk facing the sector, with
extractive industries often not seen as a
career pathway of choice. The remote
footprint of some of our assets also presents
additional hurdles, leading to this being
called out as a new principal risk.
Longer-term viability
In accordance with the requirements of the
2018 UK Corporate Governance Code, the
Board has assessed the Company’s
prospects in the long term, incorporating
but not limited to the 2050 date associated
with the Company’s net zero ambition.
The assessment was informed by the
potential medium- and long-term impact of
climate change on the outlook for our
commodity businesses, under a range of
possible scenarios, as set out on page 26.
Such impacts are uncertain, being
particularly dependent on long-term
changes in the energy mix related to power
generation and transportation, as well as
consumption efficiencies, behavioural
change and coordinated implementation of
government policy and regulation
frameworks. This analysis, however, indicates
stable or improving opportunities across the
portfolio in the SPS scenario. In the APS and
NZE scenarios, we project significant
thermal coal demand decline over the
longer term, mitigated, however, (from a
financial perspective) by materially stronger
demand for battery and new energy
infrastructure required metals.
The Board has also assessed the company’s
ability to meet its liabilities as they fall due over
the four-year period from 1 January 2025. This
period is consistent with the company’s
established annual business planning and
forecasting processes and cycle which is
subject to review and approval each year by
the Board. The Directors believe this is an
appropriate review period having regard to the
Group’s business model, strategy, PRUs,
sources of funding and liquidity.
The four-year plan considers Glencore’s
adjusted EBITDA, capital expenditure and
funds from operations (FFO), and assumes
refinancing of credit facilities and bonds as
needed. The resulting net debt was tested
against a c.$10 billion net debt cap, excluding
marketing lease liabilities, and the key financial
ratio of net debt to adjusted EBITDA. Stress
tests to simulate the potential impacts of
exposure to the relevant PRUs were
performed. While all the PRUs have the
capability to impact business and financial
performance, the most scenario-relevant
to the assessment of viability are Risk 1 (Supply,
demand and prices of commodities) and Risk 3
(Currency exchange rates). For the 2025-28
plan the stress-test scenarios were:
• Scenario 1: Reversion – Commodity prices
and inflation reverting to historical norms
over the outlook period (Highly likely); and
• Scenario 2: Recession – Commodity prices
set at the low end of analysts’ consensus
ranges as of December 2024 for the
entirety of the outlook period
(Improbable).
In either downside scenario, the company’s
capital management framework and
distribution policy, post servicing our base
cash distribution, prioritise the balance
sheet, such being managed around the
stated net debt cap, excluding marketing
lease liabilities. Additional mitigating actions
include the ability to defer or cancel capital
expenditure, to manage working capital and
to reduce distributions to shareholders. After
taking account of any such required
mitigating actions, in the downsides
described, the company could sustainably
maintain a net debt balance within its
c.$10 billion cap, excluding marketing lease
liabilities.
Based on the results of the related analysis,
the Directors have a reasonable expectation
that the Company will be able to continue in
operation and meet its liabilities as they fall
due over the four-year period of this
assessment.
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Risk management continued
1. Supply, demand and prices
of commodities
2024 vs. 2023
Risk appetite
Link to
strategy
Cautious
We are subject to the inherent risk of
sustained low prices for our main
commodities, particularly affecting our
industrial business. The revenue and
earnings of substantial parts of our industrial
asset activities and, to a lesser extent, our
marketing activities, are dependent upon
prevailing commodity prices. The prices of
the commodities we produce are dependent
on the expected volumes of supply or
demand for commodities which can vary for
many reasons out of our control.
New or improved energy production
possibilities and/or technologies are likely to
reduce the demand for some commodities.
Governmental net zero emissions targets
will require demand for unabated thermal
coal and other hydrocarbon fuel sources to
significantly reduce over time.
The dependence of the Group (especially our
industrial business) on commodity prices,
supply and demand of commodities, makes
this the Group’s foremost risk.
2. Geopolitical, permits and
licences to operate
2024 vs. 2023
Risk appetite
Link to
strategy
Cautious
The current geopolitical environment is
dynamic, and disputes, tariffs or changes in
policy could impact trade flows, market access
and our ability to conduct business. The
potential for conflict is increasing, which in turn
could impact our entire business from
production and marketing to sourcing and
logistics.
We control and operate industrial assets and
projects in many countries across the globe,
some of which are categorised as developing,
complex or having unstable political or social
environments. As a result, we are exposed
to a wide range of political, economic,
regulatory, social and tax environments.
Regulatory regimes applicable to resource
companies can often be subject to adverse
and unexpected changes. Our operations may
also be affected by political and economic
instability, including terrorism, civil disorder,
violent crime, war and social unrest.
The terms attaching to any permit or licence to
operate may be onerous and obtaining these
and other approvals can be particularly difficult.
Furthermore, in certain countries, title to land
and rights and permits in respect of resources
are not always clear or may be challenged.
Increased scrutiny by governments and tax
authorities of multinational companies has
elevated potential tax exposures for the Group.
Additionally, governments have sought
additional sources of revenue by increasing
rates of taxation, royalties or resource rent
taxes and aggressively enforcing their tax
codes. The tax codes of some countries can be
uncertain in their application and the access
Potential impact on the Group
• Significant falls in the prices of certain
commodities (e.g., copper and coal) can
have a severe drag on our financial
performance, impede shareholder returns
and could lead to concerns by external
stakeholders as to the strength of the
Group’s balance sheet.
• A global surplus or shortage in one or
more of the commodities we produce
could have a major impact on their price,
and therefore on our financial
performance.
Mitigating factors or controls
Inherent business model mitigations:
• We maintain a diverse portfolio of
commodities, geographies, assets
and contracts.
• We seek to prepare for anticipated shifts
in commodity demand, for example by
prioritisting investment in parts of the
business that will potentially grow with
increases in renewable energy generation
and EVs and battery production, and by
closely monitoring fossil fuel (particularly
thermal coal) demands. We are also able
to reduce the production of commodities
within our portfolio in response to
changing market conditions.
Established and implemented mitigating
controls:
• Our financial leverage of under 1x in the
ordinary course of business should support
our ability to obtain financing in a downside
scenario (see Liquidity on page 98).
• We continue to maintain focus on cost
discipline and achieving greater
operational efficiency to increase our
resilience to lower prices.
• We actively manage commodity price risk
in our marketing segment, including via
daily analysis of Group VaR.
to impartial administrative and judicial redress
may be limited.
Potential impact on the Group
• Adverse actions by governments and others
can result in operational/project delays or
loss of permits or licences to operate, which
could have a material adverse effect on the
Group thereby affecting the Group’s
long-term viability and success.
• Failure to obtain or renew a necessary
permit or the occurrence of other disputes
could mean that we would be unable to
proceed with the development or continued
operation of an industrial asset and/or
impede our ability to develop new assets
or projects.
• Laws and regulations in the countries in
which we do business may change or be
implemented in a manner that may have
a materially adverse effect on the Group.
Mitigating factors or controls
• The Group’s industrial assets are diversified
across various countries which reduces the
Group’s exposure to any particular country.
• The Group has active engagement strategies
with the governments, regulators and other
stakeholders within the countries in which
it operates or intends to operate. Through
strong relationships with stakeholders,
we endeavour to secure and maintain
our licences to operate.
• We endeavour to operate our businesses
according to high legal, ethical, social
and human rights standards, and to ensure
that our presence in host countries leaves
a positive lasting legacy.
• We operate under a Tax Policy, annually
reviewed by the Board, which sets out the
Group’s commitment to comply with all
applicable tax laws, rules and regulations,
without exception, and to be characterised
as a ‘good corporate fiscal citizen’.
Strategic priorities
Responsible and ethical business practices
Effective capital management
Strong operational and commercial
performance
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Risk management continued
3. Operational delivery
2024 vs. 2023
Risk appetite
Link to
strategy
Minimal
Our industrial activities are subject to
significant risks throughout each operation’s
lifecycle, from project planning, through
initiation, development, operation and/or
expansion and ultimate closure.
Delivery of operational performance at
existing industrial assets can be impacted by
a range of factors, including the level of
geological risk relating to factors such as
structure and grade as well as geotechnical
and hydrological risks, natural hazards,
processing problems, technical
malfunctions, supply chain risk of
unavailability of materials and equipment,
unreliability and/or constraints of
infrastructure, disasters, force majeure
factors, cost overruns, or delays in
permitting or other regulatory matters.
Some of the Group’s interests in industrial
assets are not controlling stakes. Although
the Group has various arrangements and
forums through which it seeks to influence
these industrial assets and protect its
position, these may not be effective and
these entities or other shareholders in these
entities may act contrary to the Group’s
interests or be unable or unwilling to fulfil
their obligations.
Potential impact on the Group
• The development and operation of assets
may lead to future upward revisions in
estimated costs (capital and operating
expenditure), including in relation to
delays or other operational difficulties
or damage to properties or facilities,
which may cause production to be
reduced or to cease, and may require
greater infrastructure spending.
• Severe operating difficulties may result
in impairments.
Mitigating factors or controls
• Operating performance, risks and hazards
are managed through our quarterly
reporting processes and ongoing
assessments, and reporting and
communication of the risks that affect our
operations along with updates to the risk
register.
• We publish our assessment of reserves
and resources based on available drilling
and other data sources annually.
Conversion of resources to reserves and,
eventually, reserves to production is an
ongoing process that takes into account
technical and operational factors, and the
economics of the particular commodities
concerned.
• We manage a disciplined annual process
for life of asset planning whereby asset
resource development and production
plans are reviewed by the Group, including
understanding the range of potential risks
to operational delivery.
• We report our production results quarterly
and provide guidance on future
production periods which considers
exposure to operational delivery risk.
4. Low-carbon economy
transition
2024 vs. 2023
Risk appetite
Link to
strategy
Cautious
The global transition to a low-carbon
economy may affect our business through
regulations to reduce emissions, carbon
pricing mechanisms, reduced access to
capital, permitting risks and fluctuating
energy costs, as well as changing demand
for the commodities we produce and
market. A number of governments have
already introduced or are contemplating the
introduction of regulatory responses to
support the achievement of the goals of the
Paris Agreement and the transition to a
low-carbon economy. This includes countries
where we have assets such as Australia,
Canada, Chile and South Africa, as well as our
customer markets such as China, South
Korea, Japan and Europe.
A transition to a low-carbon economy and its
associated public policy and regulatory
developments is likely to reduce demand for
fossil fuels like thermal coal over time and
could lead to certain of our coal assets no
longer being economically viable.
Potential impact on the Group
• A transition to a low-carbon economy and
its associated public policy and regulatory
developments may lead to:
– the imposition of new regulations, and
climate change-related policies on fossil
fuels by actual or potential investors,
customers and banks, that may impact
Glencore’s reputation, access to capital
and financial performance;
– import duties/carbon taxes in our
customers’ markets which may affect
our access to those markets as well as
our commodities’ delivery costs;
– increased costs for energy and for other
resources, which may impact associated
costs and the economic competitiveness
of our industrial assets;
– the imposition of levies or taxes, whether
or not related to greenhouse gas
emissions;
– impacts on the development or
maintenance of our industrial assets due
to restrictions in operating permits,
licences or similar authorisations; and/or
– impairment of certain assets that are no
longer economically viable.
• Variations in commodity use from
emerging technologies, moves towards
renewable energy generation and policy
changes may affect demand for our
products, both positively and negatively.
• Implementing low-carbon processes and
technologies at our industrial assets may
increase our operating costs, while also
potentially growing/changing our
customer base.
• ESG concerns may increase pressure to
divest our coal assets, limit/stop our access
to financing, restrict production from,
development of, or close, coal assets and
impact our ability to optimise our portfolio.
Some parties may choose not to invest in
or transact with us, due to our fossil fuel
operations.
• Socioeconomic concerns associated with
the transition to a low-carbon economy
may increase expectations of our closure
plans and increase closure liabilities.
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5. Major project delivery
2024 vs. 2023
Risk appetite
Link to
strategy
New
Minimal
The Group is exposed to the impact of
unsatisfactory major project delivery. Failure
to deliver on major projects or the lack of an
adequate project pipeline may result in an
inability to provide expected production
output, which can in turn have an adverse
impact on our capital and operational
results. This could also impact our ability to
deliver production growth and/or meet
guidance.
A number of our industrial assets are
reaching closure within the next 2 – 5 years
which will require the implementation of
significant closure projects and is another
source of major project delivery risk. The
variable maturity of closure planning at our
assets can exacerbate this risk.
This risk can manifest when project
completion timelines extend beyond key
milestones documented at the time of
project approval or in circumstances when
additional funding in excess of approved
budgets and contingencies may be required.
Major project milestones may be missed,
either in terms of timing or budget
considerations, because of numerous factors,
including delays in receiving permits and
licenses, inadequate process discipline, lack
of appropriate skills or labour shortages, and
inadequate project governance.
Risk management continued
• We may be the subject of climate-related
litigation or regulatory scrutiny. There has
been a significant increase in litigation
(including class actions), in which climate
change and its impacts are a contributing
or key consideration, including
administrative law cases, tortious cases
and claims brought by investors. In
particular, a number of lawsuits have been
brought against companies with fossil fuel
operations in various jurisdictions seeking
damages related to climate change.
A number of regulators have also
increased their scrutiny of companies’
actions in respect of climate change,
including through investigating claims
related to inaccurate or misleading
disclosure and/or greenwashing.
Mitigating factors or controls
• Climate considerations are taken into
account as part of our strategic decision
making. Our internal Climate Change
Taskforce (CCT), led by our CEO and
overseen by the Board of Directors, is
responsible for delivering our climate
strategy and addressing progress against
our climate commitments.
• As outlined in our 2024-2026 CATP,
we intend to deliver our climate strategy
through four strategic pillars: managing
our operational footprint; responsibly
reducing our Scope 3 industrial emissions;
advancing tomorrow through our
transition-enabling commodities portfolio;
and driving new business models.
• To understand better and plan for the
effects of climate change on our business,
we have a framework for identifying,
understanding, quantifying, where
possible, and, ultimately, seeking to
manage climate-related challenges and
opportunities facing our portfolio,
which covers government policy,
lobbying activities, carbon pricing, energy
costs, physical impacts, access to capital,
risks relating to permits, product demand
and litigation risks.
Potential impact on the Group
• Overall risk to the credibility of the
company in delivering on its stated
objectives or guidance provided to
investors and analysts.
• Demand on capital funding in excess
of approved budgets and forecasts
submitted.
• Impact on project pipeline execution
due to unplanned consumption
of available funding.
• Shortfall on projected volumes relative
to production guidance.
• Materially underdelivering on initial
project return expectations, which
may also result in impairments.
Mitigating factors or controls
• A dedicated team under the new Head of
Capital Projects, reporting to the Head of
Industrial Assets, has been set up to
manage the global portfolio and focus on
capital efficiency and performance
expectations.
• The Group Project Management Standard
defines the corporate requirements for
major project development, including
governance requirements for concept,
pre-feasibility and feasibility studies and
execution.
• The gating of projects between defined
phases of project study is subject to
internal investment committee approval
and from the pre-feasibility phase
onwards, an independent project review is
mandatory.
• Each department has developed project
management systems and processes to
meet the requirements of the Group
Project Management Standard.
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Risk management continued
7. Social performance and
human rights
2024 vs. 2023
Risk appetite
Link to
strategy
Minimal
Respecting human rights and building
strong relationships with the communities
in which we operate are fundamental to the
current and future viability of our business.
We have a geographically diverse business,
operating in both developed and developing
countries in an array of different contexts.
A perception that we are not respecting
human rights or generating local sustainable
benefits could have a negative impact on
our ability to operate effectively, our
reputation with stakeholders, our ability to
secure access to new resources, our capacity
to attract and retain the best talent and
ultimately, our financial performance.
Areas that may be affected negatively
include the health and safety of our
workforce and surrounding communities,
particularly vulnerable peoples,
environmental damage and interactions
with individuals and groups who live and
work in or near our local communities. Poor
performance can contribute to social
instability and the perceived and real value
of our assets.
Some of our mining operations are in
remote areas where they are a major
employer in the region. This presents
particular social challenges when the mine’s
resources are depleted to an extent that
it is no longer economic to operate
and must be closed.
funding remedial actions or other
reparations, including payment of
compensation, to negatively impacted
communities.
Mitigating factors or controls
• We establish HSEC&HR policies, standards
and procedures designed to (1) protect our
people, communities and the
environment, and (2) ensure we comply
with laws and external regulations. These
also set out our goals, objectives,
expectations and requirements that
should be applied consistently across the
Group and provide clear guidance on the
minimum requirements we expect all our
industrial assets to meet, as well as those
for our workforce and business partners.
• SafeWork encompasses Glencore’s
approach to creating a workplace without
fatalities and serious injuries. SafeWork
provides a set of minimum expectations
for the management of fatal and
catastrophic hazards, the consistent
application of which can drive a safe
operating discipline and a positive safety
culture.
• We work with local authorities, local
community representatives and other
partners, such as NGOs, to help overcome
major public health issues in the regions
where we work, such as HIV/AIDS, malaria
and tuberculosis.
6. Health, safety and
environment
2024 vs. 2023
Risk appetite
Link to
strategy
Averse
Industrial operations are inherently
hazardous. The success of our business is
dependent on a safe and healthy workforce
and work environment. Identifying and
managing risks to the safety and health of
our people is essential for maintaining our
commitment to responsible production.
Our operations around the world can have
direct and indirect impacts on the
environment and host communities. Our
failure to manage and mitigate these may
affect maintenance of our operating licences
as well as affect future projects, acquisitions
and our reputation.
We operate in some countries with complex
and challenging political and/or social
climates, which increases our risk of non-
compliance with laws and regulations, as
well as with our HSEC&HR policies, standards
and procedures.
Potential impact on the Group
• Compliance with environmental, safety
and health regulations, and our relevant
HSEC&HR policies, standards and
procedures may result in increased costs.
• Non-compliance or incidents causing
serious injury or fatality or other damage
at, or to, our facilities or surrounding areas,
may result in significant losses. Related
consequences could include (1)
interruptions in production, (2) litigation
and imposition of penalties and sanctions,
(3) having licences and permits withdrawn
or suspended and (4) undertaking or
• The Group Closure Planning Standard
requires that all industrial assets have a
credible closure plan that could be
initiated at any time, whether on planned
life of asset closure, or an earlier
unforeseen or temporary closure.
• Annual closure planning reviews are
conducted to ensure alignment with
Group requirements.
• A comprehensive risk register is
maintained for each major project and
material risks are integrated into the
enterprise risk management process.
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Potential impact on the Group
The consequences of adverse community
reactions or allegations of human rights or
social incidents could also have a material
adverse impact on the cost, profitability,
ability to finance or even the viability of an
operation and the safety and security of our
workforce and assets. In addition, global
connectivity means that local issues can
quickly escalate to a regional, national and
global level, potentially resulting in
reputational damage and social instability.
Mitigating factors and controls
• We respect communities’ perspectives by
seeking to actively consult with them on
our relevant decision making and
engaging openly and honestly to build
lasting relationships.
• We endeavour to focus our social
investments on initiatives and
programmes to deliver long-term benefits
fostering socioeconomic resilience.
• We support the advancement of the
interests of both our host communities
and our industrial assets.
• We tailor our community approach to be
relevant and appropriate to the local
context, including regarding tangible and
intangible cultural heritage.
• We seek to apply the UN Voluntary
Principles on Security and Human Rights
(Voluntary Principles) prioritising regions
where there is a high risk to human rights
from the deployment of public and private
security forces.
• We respect the rights, interests,
perspectives and aspirations of Indigenous
Peoples and, through good faith
negotiation, seek to adhere to the process
and principles of free, prior and informed
consent (FPIC).
Risk management continued
• We strive to uphold and respect the
human rights of our workforce, local
communities and others who may be
affected by our activities, in line with the
United Nations Guiding Principles on
Business and Human Rights (UNGP).
• We require our industrial assets to
implement locally appropriate complaints
and grievance processes to receive
feedback and comments on our
performance, and take actions when
necessary to address the issues raised.
• We believe that artisanal and small-scale
mining (ASM) can play an important and
sustainable role in many economies when
carried out responsibly and transparently,
including the DRC. We work with the Fair
Cobalt Alliance, a multi-stakeholder action
platform that works towards eliminating
child and forced labour, improving work
practices in ASM operations, and
supporting alternative livelihoods to help
increase incomes and reduce poverty.
• We implement policies, standards and
procedures designed to identify, prevent
and mitigate human rights risks and
impacts across our business, and are
committed to understanding and
documenting the social risks and
opportunities in the communities in which
we operate.
8. Catastrophic and natural
disaster events
2024 vs. 2023
Risk appetite
Link to
strategy
Averse
Catastrophic or natural disaster events at the
Group’s industrial assets can have disastrous
impacts on workers, communities and the
environment, while also impacting
production and resulting in substantial
financial costs and harm to our reputation.
These events may arise due to natural
causes (flood, earthquake, drought) or due to
infrastructure (including underground
mines or open-pits or tailings or water
storage facility failure) or equipment failure
(such as shafts and winders).
Climate change may increase physical risks
to our assets and related infrastructure,
largely driven by extreme weather events
and water-related risks such as flooding or
water scarcity.
Potential impact on the Group
• Loss of life, significant environmental
damage, or social impact on livelihoods
arising from such an event may have
material adverse impacts on our business
and reputation.
• The suspension of production arising from
one of these events for an extended period
could have a significant impact on our
business.
• Inclusion of new design standards for
improved management of potentially
catastrophic events during the
development of new projects and as
required for the remediation of risks at
industrial assets may lead to future
upward revisions in estimated costs,
delays or other impacts. This may cause
production to be reduced or to cease and/
or require greater infrastructure spending.
Also, the realisation of these risks could
require significant additional capital and
operating expenditures.
Mitigating factors or controls
• Our HSEC&HR policies, standards and fatal
hazard protocols (FHPs) have been
developed to assist in the management
of the fatal and catastrophic hazards that
present a material risk to our operations.
They are designed to assist in the
prevention of incidents and protect our
people, the environment, communities,
assets, and other stakeholders. They are
taken into account in the planning, design,
construction, operation, maintenance and
monitoring of our surface and
underground mines, water and tailings
storage facilities, leach pads, smelters,
refineries and other infrastructure and
equipment.
• We have implemented a comprehensive
tailings management framework, with
clear governance, accountabilities,
systems, training, auditing and reporting
on performance.
• A comprehensive process has been
established for the independent assurance
of HSEC&HR catastrophic hazards across
our operating sites.
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Risk management continued
10. Counterparty credit
and performance
2024 vs. 2023
Risk appetite
Link to
strategy
Minimal
We are subject to the risk of non-
performance by our suppliers, customers
and hedging counterparties, in particular in
respect of our marketing activities.
Financial assets consisting principally of
receivables and advances, derivative
instruments and long-term advances and
loans can expose us to concentrations of
credit risk.
Potential impact on the Group
• Non-performance by suppliers, customers
and hedging counterparties may occur
and cause losses in a range of situations,
such as:
– a significant increase in commodity
prices resulting in suppliers being
unwilling to honour their contractual
commitments to sell commodities at
pre-agreed prices;
– a significant reduction in commodity
prices resulting in customers being
unwilling or unable to honour their
contractual commitments to purchase
commodities at pre-agreed prices; and
– suppliers to whom we have made
prepayments not honouring their
contractual obligations due to financial
distress or other reasons.
Mitigating factors or controls
• We seek to diversify our counterparties
and try to ensure adherence to open
account limits.
• We make extensive use of credit
enhancement tools, seeking letters of
credit, insurance cover, discounting and
other means of reducing credit risk with
counterparts. Where possible, earmarked
credit exposures are covered through
credit mitigation products.
• We monitor the credit quality of our
physical and hedge counterparties and
seek to reduce the risk of customer default
or non-performance by requiring credit
support from creditworthy financial
institutions.
• Open account risk is governed by Group-
wide procedures with established
thresholds for referral of credit decisions
by department heads to the CEO, CFO and
CRO (and the Board, for highest level
approvals), relating to potential credit risk
exposures at varying levels, depending on
counterparty credit quality.
Mitigating factors or controls
• The inverse FX correlation (against USD
commodity prices) usually provides
a partial natural FX hedge for the
industrial business.
• We continuously monitor and report
on financial impacts resulting from
foreign currency movements to determine
appropriate actions and mitigating
responses.
• In respect of commodity purchase
and sale transactions denominated
in currencies other than US dollars,
the Group’s policy is usually to hedge
the specific future commitment through
a forward exchange contract. From time
to time, the Group may hedge a portion
of its operating currency exposures and
requirements in an attempt to limit
any adverse effect of exchange rate
fluctuations.
9. Currency exchange
(FX) rates
2024 vs. 2023
Risk appetite
Link to
strategy
Minimal
FX changes affect us as a global company
usually selling in US dollars but having costs
in a large variety of other currencies. The
main currency exchange rate exposure is
through our industrial assets, as a large
proportion of the costs incurred by these
operations, which are spread across many
different countries, is denominated in the
currency of the country in which each
industrial asset is located, the currencies of
which fluctuate against the US dollar. The
vast majority of our sales transactions are
denominated in US dollars.
Producer country currencies tend to
strengthen in correlation with relevant
higher commodity prices. Similarly,
decreases in commodity prices are generally
associated with increases in the US dollar
relative to local producer currencies.
Potential impact on the Group
• A depreciation in the value of the US dollar
against one or more of these currencies
will result in an increase in the cost
base of the relevant operations in US
dollar terms.
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11. Liquidity
2024 vs. 2023
Risk appetite
Link to
strategy
Minimal
Liquidity risk is the risk that we are unable
to meet our payment obligations when due,
or are unable, on an ongoing basis, to borrow
funds in the market at an acceptable cost
to fund our commitments.
While we may adjust our minimum internal
liquidity threshold from time to time in
response to changes in market conditions
this minimum internal liquidity target may
be breached due to circumstances we are
unable to control, such as general market
disruptions, sharp movements in commodity
prices or an operational problem that affects
our suppliers, customers or our own
business.
Potential impact on the Group
• Our failure to access funds (liquidity)
would severely limit our ability to engage
in our business activities and may mean
that we would not have sufficient funds
available for our marketing and industrial
activities, both of which employ
substantial amounts of capital. If we
do not have funds available for these
activities, then they would decrease.
• Debt costs may rise owing to ratings
agency downgrades and the possibility
of more restricted access to funding.
Risk management continued
Mitigating factors or controls
• Diversification of our funding sources
(bank borrowings, bonds and trade
finance, further diversified by currency,
interest rate and maturity).
• Considering the Group’s extensive funding
activities, maintaining investment grade
(specifically minimum strong Baa/BBB
ratings from Moody’s and Standard &
Poor’s) credit rating status is a financial
priority. To support this, Glencore targets a
maximum 2x net debt/adjusted EBITDA
ratio through the cycle. However, while
maintaining our ordinary course
c.$10 billion net debt cap, excluding
marketing lease liabilities, the leverage
ratio would more likely be under 1x.
Deleveraging below the c.$10 billion cap,
excluding marketing lease liabilities, is
periodically returned to shareholders.
• Our financial policies seek to ensure
access to funds, when desired, even in
periods of market volatility.
• Our bond maturity profile is managed
such that maturity repayments do not
exceed approximately $3 billion in any
given year.
• It should be noted that the credit ratings
agencies make certain adjustments,
including a discount to the value of our
readily marketable inventories, such that
their calculated net debt is higher than
ours. The Group’s credit ratings are
currently A3 from Moody’s and BBB+ from
Standard & Poor’s.
12. Information technology
2024 vs. 2023
Risk appetite
Link to
strategy
Minimal
The ever-increasing reliance on digital
technologies has brought with it a
corresponding rise in risks relating to impacts
from an IT disruption, including those that may
be caused by a cyber attack, ranging from the
proliferation of ransomware to nation-state
activity and the monetisation of cybercrime.
Our industrial production, operations,
environmental management, health and
safety management, communications,
transaction processing, risk management
and compliance processes often depend on
the effective application and adoption of
information technology. The increasing
convergence of information technology and
operational technology networks creates
new risks and may demand additional
management time and focus.
Our key business processes are regularly
updated and adapted to suit our business
needs. However, new technology may not be
as reliable as we anticipate, and we may not
be able to maintain the use of our existing
technology effectively.
Our long supply chains also involve
numerous third parties that are exposed to
the same or similar risks. Any failure or
outage of information or operational
technology systems could cause a significant
disruption to our business.
Furthermore, the emergence of machine
learning and artificial intelligence has led to
an exponential increase in the volume and
sophistication of fraud attempts. The use of
‘Deepfake’ technology, powered by machine
learning, makes it easier to manipulate
audio and video content, increasing the
potential for phishing or fraud attacks that
impersonate senior executives. Given the
accelerating pace at which AI is being used
to create malware and deepfakes, there
is a significant and growing threat to the
security and authenticity of digital content,
necessitating robust and vigilant
cybersecurity measures.
Potential impact on the Group
• The potential consequences of a
cybersecurity breach, incident, or failure of
Glencore’s IT systems are significant and
wide-ranging. Such an event could lead to
disruption of our businesses, jeopardise the
safety of our employees, result in the
exposure of confidential information,
damage our reputation, and create
substantial financial and legal risks
for the Group.
• The ramifications could extend beyond
just our own operations and impact our
customers, suppliers, and other business
partners as well.
Mitigating factors or controls
• We take a proactive and multi-faceted
approach to maintaining our IT systems
and mitigating cybersecurity exposure
and other IT risks.
• Our IT security standards include layered
cyber security, privileged access
management, and multiple layers of email
security and malware protection, as well as
the use of two-factor authentication and
VPN technology for securing corporate
applications and communications.
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Risk management continued
our understanding of our rights and
obligations under these laws.
Potential impact on the Group
• Any changes to these laws or regulations
or their more stringent enforcement or
restrictive interpretation could cause
additional significant expenditure to be
incurred and/or cause suspensions of
operations and delays in the development
of industrial assets or projects.
• The costs associated with compliance with
these laws and regulations, including the
costs of regulatory permits, are substantial
and increasing.
• The impact of any monetary fines,
penalties, redress or other restitution
requirements, and the associated
reputational damage arising from
proceedings that are resolved adversely to
the Group, could be material.
• Any successful claims brought against the
Group could result in material damages
being awarded against the Group, the
cessation of operations, compensation and
remedial and/or preventative orders.
• In addition, the cost of cooperating with
investigations and/or defending
proceedings can be substantial.
Mitigating factors or controls
• We seek to ensure compliance through
our commitment to complying with
applicable laws and regulations. We
monitor legislative developments and
engage with governments and regulators
on these topics. Where our standards go
beyond the minimum requirements
outlined in applicable laws or regulations,
we apply the stricter standards.
• We have implemented a number of
programmes designed to ensure
compliance with applicable laws and
regulations, including our Group Ethics
and Compliance Programme that includes
a range of policies, standards, procedures,
guidelines, training and awareness,
monitoring and investigations.
• We have invested significant resources
towards developing the Group Ethics and
Compliance Programme, including
through increasing the number of
dedicated compliance professionals,
enhancing our compliance controls,
increasing our training and awareness
activities, and strengthening the Group’s
Raising Concerns Programme and
investigations processes.
• We engage reputable external legal firms
and consultants as necessary to support
these efforts.
• We have engaged two independent
compliance monitors pursuant to our
resolutions with the DOJ, who are
conducting a comprehensive review of our
culture and Group Ethics and Compliance
Programme and have made relevant
recommendations, which the Group is
implementing.
13. Laws and regulations
2024 vs. 2023
Risk appetite
Link to
strategy
Averse
We are exposed to extensive laws and
regulations, including those relating to
bribery and corruption, sanctions, taxation,
anti-trust, financial and commodity markets
regulation and rules, non-financial reporting
requirements, data protection,
environmental protection, use of hazardous
substances, product safety and dangerous
goods regulations, post-closure reclamation,
employment of labour and occupational
health and safety standards. In addition,
there are a number of high expectations
regarding the need to act ethically in our
business and we are exposed to the risk that
unethical business practices may, by
themselves, harm our ability to engage with
certain business partners, and/or give rise to
questions as to whether we are committed
to complying with applicable laws.
As a diversified sourcing, marketing and
distribution company conducting complex
transactions globally, we are particularly
exposed to the risks of fraud, corruption,
sanctions violations and other unlawful
activities both internally and externally.
Additionally, certain of our existing industrial
and marketing activities are in countries that
are categorised as developing or have
challenging political or social climates or
where the legal system is uncertain, and/or
where corruption is generally understood to
exist, which creates risks in relation to our
compliance with laws and external
requirements. The legal system and dispute
resolution mechanisms in some countries in
which we operate may be uncertain,
meaning that we may be unable to enforce
• We keep our system software up-to-date
and use global platforms to proactively
manage patch compliance, while routine
third-party penetration tests and dedicated
programmes for enhancing the monitoring
and security of our Operational Technology
(OT) platforms seek to ensure the
effectiveness of our security measures.
• Our IT Security Council sets the global
cyber security strategy, conducts regular
risk assessments, and designs solutions to
protect against emerging threats, and our
Cyber Defence Centre is responsible for
day-to-day monitoring and remediation
of cyber vulnerabilities across the Group.
• We have an incident response team in
place to coordinate a swift and effective
response in the event of a major IT outage
or cyber incident.
• We prioritise employee education
to raise awareness of cyber security
threats and encourage best practices
in information security.
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Additional Information
14. Attracting, developing and
retaining people with the
necessary skills
2024 vs. 2023
Risk appetite
Link to
strategy
New
Cautious
Our ability to achieve our business strategy
depends on attracting, developing and
retaining a wide range of skilled and
experienced people. Tight labour markets
and entry into new countries are leading to
heightened competition for diverse talent
and critical skills all through the mining and
resources value chain, from resource
definition through marketing.
Our global footprint and ownership of assets
and projects in more remote areas provides
a further challenge in ensuring the right
technical expertise is available at the
right places to manage a range
of operational risks.
We are focused on developing a culture of
trust, where all our people feel respected,
safe and empowered. If we fail to maintain a
culture that aligns to our strategy, this could
harm our reputation and have a material
adverse effect on our earnings, cash flows
and financial condition.
Potential impact on the Group
• Inability to attract, develop and retain
people with necessary skills could
negatively impact delivery of our strategy.
• Business interruption or
underperformance may arise from a lack
of access to the right capabilities.
Mitigating factors or controls
• We conduct annual and quarterly business
planning activities that identify trends
in turnover and retention, which enables
corrective action to be taken when
needed.
• Our Human Resources policies and
standards are designed to set clear
expectations for our business, and we
maintain an assurance programme that
measures implementation of these
standard requirements.
• We have local trainee (apprenticeship)
and graduate internship programmes
and other future skill development
partnerships.
• We conduct a biennial people survey,
as part of our engagement strategy
and retention efforts.
• We provide respect at work training to
mitigate sexual harassment, bullying and
discrimination in our workplace.
• We undertake succession planning for
critical roles.
• We provide leadership training and
development programmes.
Risk management continued
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Additional Information
We are committed to
promoting a strong culture
of corporate governance
investigations, was no longer needed as a
standalone committee.
We continue to dedicate substantial effort
and resources to ensure constructive
engagement with the two independent
compliance monitors mandated by our
resolutions with the US Department of
Justice and their teams. The Group has
worked diligently on the implementation of
their first set of recommendations and has
made significant progress. The monitors
have recently completed their second review
period and we look forward to continuing to
work with them over the balance of their
three-year term. Further information on our
ongoing efforts to enhance our Ethics and
Compliance Programme will be provided in
our upcoming 2024 Ethics and Compliance
Report, which will be available on our
website at glencore.com/publications.
Looking forward
The Board believes that a robust governance
framework remains key not only for the
Company’s continued success but also to
ensure that we are seen by our stakeholders
as a reliable and trusted partner. The Board
remains committed to promoting a strong
culture of corporate governance, proactively
managing risk and delivering long-term
value for stakeholders. I would like to
reiterate my thanks to our dedicated teams
across the organisation for their efforts and
significant contributions during the year. I
am confident that our ongoing collaboration
and commitment will allow us to continue to
successfully navigate new challenges and
opportunities.
Kalidas Madhavpeddi
Chairman
Kalidas Madhavpeddi
Chairman
I am pleased to report on another active year
for the Board, which reflected the
opportunities and challenges for our Group.
Board composition
In the last twelve months there have been
four changes to the Board. We would like to
express our gratitude to Peter Coates, who
retired in May, and David Wormsley, who
retired in December, for their committed
service to the Board and the Group.
We were pleased to have John Wallington
join us last year and have María Margarita
Zuleta join us last month. John has a strong
track record in the mining industry while
Stakeholder engagement
In 2024, we actively engaged with our
shareholders on a number of topics,
including our 2024-2026 Climate Action
Transition Plan and our revised
Remuneration Policy, both of which were
put to a shareholder vote and resoundingly
approved at the 2024 AGM.
We also appreciate the feedback we
received from our shareholders during our
formal demerger consultation following the
close of the EVR transaction. This feedback
was an essential input into our decision
making process as we weighed whether to
retain or demerge our coal and carbon steel
materials business.
At times, there are difficult decisions to be
made, such as the Group’s decision in early
2024 to transition Koniambo Nickel SAS to
care and maintenance. This followed several
months of extensive discussions and
negotiations with relevant government and
other key stakeholders. In such situations,
the Board looks to identify the course of
action that is in the best interests of the
Company in the long term. In doing so, we
have regard to the impact of our decisions
on different stakeholders, such as our
workforce, communities, suppliers and
customers, and how best to manage that
impact.
The Board continues to welcome the input
from a broad range of stakeholders, which
helps us to take a considered approach on
important topics affecting the Group.
Investigations and monitorships
In 2024, we concluded that the
Investigations Committee, which had been
established to oversee work related to the
previously disclosed government
Maria has extensive experience in
government and legal matters. They are
both strong additions to the Board. I believe
it is crucial that we have a good mix of
Directors from both mining and other
backgrounds so that the Board as a whole
can appraise and challenge decision making
from a technical as well as a holistic
perspective.
Performance review
This year we carried out an internal review
which reflected overall satisfaction with the
operation of the Board and its committees.
Some minor operating and administrative
recommendations were also discussed, as
outlined in the Nomination Committee
report. We continue to be committed to
ensuring that we maintain a strong and
cohesive Board which is able to have a
strategic and long-term outlook, while also
dynamically considering opportunities,
challenges and near-term considerations as
they arise.
Workforce engagement
Board members undertook a number of site
visits in 2024, including to the DRC and
Colombia, and we are planning further visits
this year, including to EVR in Canada. These
visits are an essential part of our ongoing
work to allow the Directors to better
understand our business on the ground,
engage with local management and hear
directly from our diverse workforce across
different geographies.
Chairman’s governance statement
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Additional Information
0-2 yrs
25%
3-6 yrs
50%
7-9 yrs
25%
Notes
All the Directors are non-executive apart
from the CEO. The Chairman is considered
not to be independent from the date of
appointment. Mr Madhavpeddi was
independent up to his appointment as
Chairman. The remaining Non-Executive
Directors are designated as independent.
Gill Marcus
Senior Independent Director (75)
A E N
Senior Independent Director since
December 2022; appointed in January 2018.
Experience
Gill Marcus worked in exile for the African
National Congress from 1970 before
returning to South Africa in 1990. In 1994, she
was elected to the South African Parliament.
In 1996, she was appointed as the Deputy
Minister of Finance and from 1999 to 2004
was Deputy Governor of the Reserve Bank.
Gill Marcus was Governor of the South
African Reserve Bank from 2009 to 2014.
Ms Marcus was the non-executive chair of
the Absa Group from 2007 to 2009 and has
been a non-executive director of Gold Fields
Ltd and Bidvest. She has acted as chair of a
number of South African regulatory bodies.
From 2018 to 2019, she was appointed to the
Judicial Commission of Inquiry into
allegations of impropriety at the Public
Investment Corporation.
Ms Marcus is a graduate of the University of
South Africa.
Gary Nagle
Chief Executive Officer (50)
Joined Glencore in 2000; Chief Executive
Officer since July 2021.
Experience
Gary Nagle joined Glencore in 2000 in
Switzerland as part of the coal business
development team. He was heavily involved
in seeding a portfolio of assets to Xstrata in
2002, in conjunction with its initial listing on
the London Stock Exchange.
Mr Nagle worked for five years (2008–2013) in
Colombia as CEO of Prodeco. He then
moved to South Africa to be Head of
Glencore’s ferroalloys assets (2013–2018).
Following that he was the head of Glencore’s
coal assets based in Australia. He was a
non-executive director of Lonmin plc from
2013 to 2015 and has represented Glencore
on the Minerals Councils of Australia and
Colombia.
Mr Nagle has commerce and accounting
degrees from the University of the
Witwatersrand and qualified as a Chartered
Accountant in South Africa in 1999.
Kalidas Madhavpeddi
Chairman (69)
H N R
Appointed in February 2020.
Experience
Kalidas Madhavpeddi has over 40 years of
experience in the international mining
industry, including being CEO of CMOC
International, the operating subsidiary of
China Molybdenum Co Ltd (China Moly),
from 2008 to 2018. His career started at
Phelps Dodge, where he worked from 1980
to 2006, ultimately becoming senior VP
responsible for the company’s global
business development, acquisitions and
divestments, as well as its global exploration
programmes and president of its
international operations.
Mr Madhavpeddi is currently a director of
Novagold Resources (TSX:NG) and Dundee
Precious Metals Inc (TSX:DPM).
He was formerly director and chair of the
governance committee of Capstone Mining
(TSX:CS).
He has degrees from the Indian Institute of
Technology, Madras, India and the University
of Iowa and has completed the Advanced
Management Program at Harvard Business
School.
Committee membership as of the date
of this report is as follows:
A
Audit
E
Ethics, Compliance and Culture (ECC)
H
Health, Safety, Environment and
Communities (HSEC)
N
Nomination
R
Remuneration
denotes Committee Chair
Directors
Directors and officers
Board tenure
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Cynthia Carroll
Independent Non-Executive Director (68)
E H N R
Appointed in February 2021.
Experience
Cynthia Carroll has over 30 years’ experience
in the resources sector. She began her career
as an exploration geologist at Amoco before
joining Alcan. She held various executive
roles including President of Bauxite, Alumina
and Specialty Chemicals and CEO of the
Primary Metal Group, Alcan’s core business.
From 2007 to 2013 she served as CEO of
Anglo American plc.
Ms Carroll is currently a non-executive
director of Baker Hughes Company
(NYSE:BKR) and Pembina Pipeline
Corporation (TSE:PPL) and has previously
served on the boards of Hitachi Ltd, BP and
Sara Lee.
Ms Carroll holds a Bachelor’s degree in
Geology from Skidmore College (NY), a
Master’s degree in Geology from the
University of Kansas and an MBA from
Harvard University. She is a fellow of the
Royal Academy of Engineers and a Fellow of
the Institute of Materials, Minerals and
Mining.
Martin Gilbert
Independent Non-Executive Director (69)
A N R
Appointed in May 2017. Senior Independent
Director from May 2018 to December 2022.
Experience
Martin Gilbert co-founded Aberdeen Asset
Management in 1983, leading the company
for 34 years and overseeing its 2017 merger
with Standard Life, when he was made
co-CEO.
Mr Gilbert is currently chairman of AssetCo
plc (LON:ASTO), Revolut Limited and
Toscafund. He was formerly deputy chair of
the board of Sky plc until 2018.
Mr Gilbert is a member of the International
Advisory Board of British American Business.
Mr Gilbert was educated in Aberdeen. He
has an LLB, an MA in Accountancy and is a
Chartered Accountant.
Liz Hewitt
Independent Non-Executive Director (68)
A E N
Appointed in July 2022.
Experience
Liz Hewitt has over 30 years’ business
experience in executive and non-executive
positions. She began her career and qualified
as a chartered accountant with Arthur
Andersen & Co. She held various executive
positions in private equity companies
including 3i Group plc, Gartmore Investment
Management Limited and Citicorp Venture
Capital Ltd. At 3i Group plc, she was a private
equity investor and then director of
corporate affairs. She also worked for Smith
& Nephew plc as group director of corporate
affairs.
Liz Hewitt is currently a non-executive
director of Kerry Group plc (LON: KYGA). She
was previously non-executive director of
National Grid plc (2020–2024), Melrose
Industries plc (2013–2022), Novo Nordisk
(2012–2021), Savills plc (2014–2019) and
Synergy Health plc (2011–2014).
Ms Hewitt holds a bachelor’s degree in
economics from University College London.
John Wallington
Independent Non-Executive Director (67)
H N
Appointed in June 2024.
Experience
John Wallington has over 40 years’
experience in the mining industry,
overseeing operations in South Africa,
Australia, Colombia and Canada.
Mr Wallington enjoyed a career at Anglo
American plc covering 27 years, culminating
as Global CEO Anglo Coal. Prior to this he was
appointed as CEO Anglo Coal South Africa
(2001-2004).
After leaving Anglo American, he held positions
as CEO Coal of Africa, (2010-2013), Head of
Energy Sibanye (2016-2018) and CEO Riversdale
Resources based in Canada (2020-2022). He
also held positions as a non-executive director
with Keaton Energy (2009), Buffalo Coal (2015)
and Kwatani (2018-2020).
Mr Wallington holds a BSc in Mining
Engineering from the University of the
Witwatersrand in Johannesburg, South Africa.
Further qualifications include executive
programmes with both the London and Harvard
Business Schools. He is certified with the Institute
of Corporate Directors through the ICD-Rotman
Board Dynamics Program (University of Toronto).
Directors and officers continued
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Additional Information
Board retirees
The following non-executive directors
served during the year: Peter Coates, who
retired from the Board in May 2024, and
David Wormsley, who retired from the
Board in December 2024.
María Margarita Zuleta
Independent Non-Executive Director (59)
E N R
Appointed in February 2025.
Experience
María Margarita Zuleta has over 30 years’
experience as a legal professional with a broad
range of experience including in a law firm,
business, government and academia. Ms
Zuleta began her career as a lawyer in 1991 and
became a partner of Brigard & Urrutia in
Bogotá. In 2002, she was appointed as Deputy
Minister of Justice in Colombia and in 2004
Director of the Presidential Program against
Corruption. Between 2005-2012 she was
General Counsel of Prodeco during its
ownership by Glencore and Xstrata. In 2012, Ms
Zuleta was appointed as the Director General of
the National Public Procurement Agency of
Colombia. In 2017, she was appointed a
professor at the Universidad de los Andes in
Bogotá, Colombia and since April 2019 has
been Dean of its School of Government.
Ms Zuleta has served on the boards of several
Colombian companies since 2005 and currently
serves on the boards of Corficolombiana (listed
on the Colombian Stock Exchange), Proindesa,
and Aval Valor Compartido AVC.
Ms Zuleta holds a law degree from La
Universidad de los Andes in Colombia.
John Burton
Company Secretary (60)
Appointed Company Secretary in September
2011.
Experience
From 2006 to 2011, John Burton was
company secretary and general counsel of
Informa plc, where he established the group
legal function and a new company
secretarial team. Before that he had been a
partner of CMS in London for eight years,
advising on a broad range of corporate and
securities law matters.
Mr Burton holds a B.A. degree in Law from
Durham University. He was admitted as a
Solicitor in England and Wales in 1990.
Directors and officers continued
Steven Kalmin
Chief Financial Officer (54)
Appointed as Chief Financial Officer in June
2005.
Experience
Steven Kalmin joined Glencore in September
1999 as general manager of finance and
treasury functions at Glencore’s coal
industrial unit in Sydney. He moved to
Glencore’s head office in 2003 to oversee
Glencore’s accounting function, becoming
CFO in June 2005. From November 2017 to
June 2020 he was a director of Katanga
Mining Limited (TSX:KAT). He was also
formerly a board member of Century
Aluminum Company.
Mr Kalmin holds a Bachelor of Business (with
distinction) from the University of
Technology, Sydney and is a member of
Chartered Accountants Australia and New
Zealand and the Financial Services Institute
of Australasia.
Before joining Glencore, Mr Kalmin worked
for nine years at Horwath Chartered
Accountants.
Officers
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Additional Information
Board diversity, skills and experience in 2024
Kalidas
Madhavpeddi
American
Gary Nagle
S. African
Martin Gilbert
British
Cynthia Carroll
American
John Wallington
S. African
Gill Marcus
S. African
David Wormsley2
British
Liz Hewitt
British
Experience
Resources
Non-executive directorship
C-suite
International M&A
Technical skills1
Leadership and strategy
Financial expertise
Environment
Social
Governance
Health and safety
Investor relations
Communications and reputation
Risk management
1. The majority of these skills have been acquired through exposure and experience at leadership level, rather than as part of a formal education.
2. Mr Wormsley retired from the Board with effect from 31 December 2024.
Corporate governance report
Diversity
The Group Diversity and Inclusion Policy is applicable to all employees as well as Directors
and officers and is taken into consideration for purposes of appointments to the Board and
its committees. It sets out our commitment to build a working environment that enables full
and active participation and embraces and encourages diversity of thought and experience
in order to maximise business performance.
The Board is very cognisant of the ongoing desire from stakeholders for greater diversity in senior
management and boards. The underlying data for information presented on this page was collected
directly from the individuals indicated in the tables and reflects the position as at 31 December 2024.
The FCA UK listing rules require companies to disclose, on a comply or explain basis, whether they
meet specific diversity targets, being:
at least 40% of the board are women
3 out of 8 Directors were women, corresponding to 37.5%
at least one of the senior board positions is a woman Gill Marcus is the Senior Independent Director
at least one member of the board is from a minority
ethnic background
Kalidas Madhavpeddi is from a minority ethnic
background (in UK terms)
We believe the small size of our Board assists in its collegiality and sense of purpose. Although
we missed the 40% gender diversity target by 2.5% as of the end of 2024, 50% of our board
members are women as of the date of this report. The Board will continue to seek to achieve
greater diversity in the senior management of the Group and throughout the organisation.
Number
of Board
members
Percentage
of the Board
Number
of senior
positions on
the Board1
Number
in executive
management
Percentage
of executive
management2
Gender identity
Men
5
62.5%
2
5
71.4%
Women
3
37.5%
1
2
28.6%
Not specified/prefer not to say
–
–
–
–
–
Ethnic Background
White British or other White
(including minority white groups)
7
87.5%
2
6
85.7%
Mixed/Multiple Ethnic Groups
–
–
–
1
14.3%
Asian/Asian British
1
12.5%
1
–
–
Black/African/Caribbean/Black British
–
–
–
–
–
Other ethnic group
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
1. In accordance with UKLR 6.6.6R(9)(a) includes the Chairman, Chief Executive Officer and the Senior
Independent Director.
2. In accordance with UKLR 6.6.6R(10), executive management for these purposes are our Company
Secretary and members of our key management personnel (our CFO, General Counsel, Head of
Industrial Assets, Head of Corporate Affairs, Head of Human Resources and Head of Sustainability).
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Additional Information
Corporate governance report continued
Roles and responsibilities
Chairman
• Leading the Board
• Shaping the culture in the boardroom
• Promoting sound and effective Board
governance
• Ensuring effective communication with
shareholders
• Leading the annual performance
evaluation of the Board
Senior Independent Director
• Acting as confidante of the Chairman and,
when appropriate, as an intermediary
for other independent Directors
• Acting as Chair of the Board if the
Chairman is unable to attend
• Leading the Chairman’s performance
appraisal along with other independent
Directors
• Answering shareholders’ queries when
usual channels of communication are
unavailable
Chief Executive Officer
• Leading the management team
• Executing the Group’s strategy developed
in conjunction with the Board
• Implementing the decisions of the Board
and its committees
• Delivering on the Group’s commercial
objectives
• Developing Group policies and ensuring
effective implementation
Non-Executive Directors
• Constructively challenging the Chief
Executive Officer and senior management
• Bringing an independent mindset and
a variety of backgrounds and experience
around the Board table
• Providing leadership and challenge
as chairs or members of the Board and
its committees
• Assessing the Chairman’s performance
and leadership
Company Secretary
• Ensuring that Board procedures are
complied with and that papers are
provided in sufficient detail and on time
• Informing and advising the Board
on all governance matters
• Informing the Board on all matters
reserved to it
• Assisting the Chairman and the Board
regarding the annual performance
evaluation process
Division of responsibilities
As a Jersey incorporated company, Glencore
has a unitary Board, meaning all Directors
share equal responsibility for decisions
taken. Glencore has established a clear
division between the respective
responsibilities of the Non-Executive
Chairman and the Chief Executive Officer,
which are set out in a schedule of
responsibilities approved by the Board and
reviewed annually. While the Non-Executive
Chairman is responsible for leading the
Board’s discussions and decision making,
the CEO is responsible for implementing
and executing strategy and for leading
Glencore’s operating performance. The
Company Secretary is responsible for
ensuring that there is clear and effective
information flow to the Non-Executive
Directors.
Day-to-day management of the Company is
the responsibility of the CEO. He is
supported by the CFO and General Counsel,
who together with the CEO have line of sight
across the Group, as well as the rest of our
Group Leadership, comprising the Head of
Industrial Assets, Head of Corporate Affairs,
Head of Human Resources, Head of
Sustainability and the departmental
Board attendance throughout the year
Attendance during the year for all in-person scheduled full agenda Board and all permanent
Board Committee meetings is set out in the table below:
Board
of 4
Audit
of 4
ECC
of 4
HSEC
of 4
Nom
of 3
Rem
of 3
Cynthia Carroll
4
4
4
3
3
Peter Coates1
2
2
2
2
Martin Gilbert
4
4
3
3
Liz Hewitt
4
4
3
Kalidas Madhavpeddi
4
4
3
3
Gill Marcus
4
4
4
3
Gary Nagle
4
David Wormsley2
4
4
3
3
John Wallington3
2
2
2
1
1. Mr Coates attended all relevant meetings until the date of his retirement on 29 May 2024.
2. Mr Wormsley retired with effect from 31 December 2024.
3. Mr Wallington attended all relevant meetings from the date of his appointment as an Independent
Non-Executive Director on 1 June 2024.
There were other limited agenda or unscheduled meetings during the year: 8 Board, 2
Remuneration Committee and 2 Audit Committee meetings.
There were also various meetings of the Investigations Committee, which has now been
dissolved. Most Directors also attended, by invitation, the meetings of the committees of
which they are not members.
leadership, which includes the heads of each
marketing department and our industrial
leads.
Senior Independent Director
Gill Marcus is the Senior Independent
Non-Executive Director. She is available
to meet with shareholders and acts as an
intermediary between the Chairman and
other independent Directors when required.
This division of responsibilities, coupled
with the schedule of reserved matters for
the Board, ensures that no individual has
unfettered powers of decision.
Non-Executive Directors
The Group’s Non-Executive Directors provide
a broad range of skills and experience to the
Board (see table on page 105), which assist in
their roles in formulating the Group’s
strategy and in providing constructive
challenge to senior management.
Independence of Non-Executive
Directors
Glencore regularly assesses its
Non‑Executive Directors’ independence.
Except for the Chairman, all are regarded by
the Board as Independent Non-Executive
Directors within the meaning of
‘independent’ as defined in the 2018 UK
Corporate Governance Code and free from
any business or other relationship which
could materially interfere with the exercise
of their independent judgement. Mr
Madhavpeddi was independent at the time
of his appointment as Chairman.
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Additional Information
Corporate governance report continued
business and functions, and the roles and
responsibilities of a UK premium listed
company director.
The Directors receive training on legal and
compliance topics, climate matters and
regular updates on relevant business and
governance matters. Mr Wallington
completed two full days of in-person
induction meetings in 2024.
Board meetings
The Board approves annually a schedule that
sets out the matters reserved for its approval,
including Group strategy, financial
statements and annual budget, and material
acquisitions and disposals. Meetings are
usually held at the Group’s headquarters in
Baar, Switzerland. The Board and its
committees have standing agenda items to
cover proposed business at their scheduled
meetings. The Chairman seeks to ensure
that the very significant work of the
committees feeds into, and benefits through
feedback from, the full Board. The Board and
committee meetings seek to cover all
aspects of the Group and, for this purpose,
receive input and support from senior
management through reports and
presentations, which among others cover
operational, financial, audit, risk, legal,
sustainability, climate, safety, compliance,
governance and investor relations. These
reports and presentations allow Directors
to further their understanding of the
business and provide the insights necessary
for defining the Group’s strategy and
objectives, in turn contributing to a more
effective Board.
Board committees
The following permanent committees are
in place to assist the Board in exercising its
functions: Audit, Nomination, Remuneration,
HSEC and ECC. The Board is provided with
technical and commercial updates as
appropriate during the year, as well as
updates on our Raising Concerns
programme and material internal or external
investigations. The Board may also establish
temporary committees for specific purposes.
As each committee reports to the Board,
committee meetings are held prior to Board
meetings.
A report from each chair of the permanent
committees is set out later in this report.
All permanent committees’ terms of
reference are available at: glencore.
com/who-we-are/governance
Each committee reports to, and has its terms
of reference approved by, the Board and the
minutes of the committee meetings are
circulated to the Board. Each committee
regularly reviews its terms of reference to
ensure they reflect the Board’s expectations
as to the committee’s role as well as the
latest corporate governance requirements
and recommended practices.
Board changes
Peter Coates and David Wormsley retired
from the Board in May and December 2024,
respectively. John Wallington was appointed
as an Independent Non-Executive Director
to the Board in June 2024 and María
Margarita Zuleta was appointed as an
Independent Non-Executive Director to the
Board in February 2025.
The following changes in the composition of
the Board committees were made:
• ECC Committee: Liz Hewitt replaced
Peter Coates as a member of the
committee. María Margarita Zuleta
became a member of the committee.
• Remuneration Committee: María
Margarita Zuleta replaced David Wormsley
as a member of the committee.
Board governance and structure
This Corporate governance report, along
with the Strategic report and the Directors’
report, sets out how Glencore has complied
with the principles and provisions of the 2018
UK Corporate Governance Code in a manner
which enables shareholders to evaluate how
these principles have been applied. The
Board believes that the Company has
complied with the relevant provisions
throughout the year.
During the year, the Board comprised one
Executive Director with the remaining
members being Non-Executive Directors
(including the Chairman). A list of the
current Directors, with their brief
biographical details and other significant
commitments, is provided in the
previous pages.
The CFO attends all meetings of the Board
and Audit Committee and usually the
meetings of the HSEC and ECC Committees.
The Company Secretary attends all meetings
of the Board and its committees.
Appointment of Non-Executive
Directors
All the Non-Executive Directors have letters
of appointment and the details of their
terms are set out in the Directors’
remuneration report. No other contract with
the Company or any subsidiary undertaking
of the Company in which any Director was
materially interested existed during or at the
end of the financial year.
Director induction and information
New Directors receive a full, formal and
tailored induction following joining the
Board, including meetings with
management and a comprehensive
introduction to the Group’s Purpose, Values
and Code, the main aspects of the Group, its
• HSEC Committee: Kalidas Madhavpeddi
replaced Peter Coates as Chair of the
committee. John Wallington became a
member of the committee and in
February 2025 replaced Kalidas
Madhavpeddi as its chair.
In addition, in 2024, we concluded that the
Investigations Committee, which had been
established to oversee the Group’s response
to the previously disclosed government
investigations, was no longer needed as a
standalone committee.
Board and committees’ main
activities
Below are details of the main topics which
were reviewed, discussed, and when
required, approved during 2024:
Regular updates
• Reports from committee chairs
• Reports from the CEO, CFO, Company
Secretary, General Counsel and other
members of senior management
Group strategy
• The overall strategy of the Group, including
future prospects, capital allocation and
climate and sustainability matters. This
included specific M&A developments such
as the closing of the transaction to acquire
a 77% interest in EVR and the deliberations
as to the eventual decision to retain the
Group’s combined coal and carbon steel
materials businesses after consultation
with shareholders
Financial and risk
• Evaluation of the internal control
environment
• Finance reports, forecasts and capital
position updates
• 2025 budget and 2026–2028 business plan,
life of asset planning and costs analysis
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Corporate governance report continued
• Capital management, debt and returns
analysis
• Financial statements
• Group principal and emerging risks
• Group risk management framework
• Tax policies and provisions
Government investigations
• Regular scheduled and ad hoc meetings
of the former Investigations Committee to
review progress and receive updates on
interactions with the Swiss and Dutch
authorities until the resolution of those
investigations
Monitorships
• Review of DOJ-mandated independent
compliance monitorships, including
ongoing work to address
recommendations
Governance and stakeholders
• Review and approval of Annual and
Sustainability Reports and 2024-2026
Climate Action Transition Plan (2024-2026
CATP)
• AGM, voting results and outcomes
• Investor relations reports
• Analysts’ updates
• Corporate governance framework
• Stakeholder engagement
• Board performance review
• Chairman’s performance
• Group policies
Legal and compliance
• Litigation updates
• Regulatory developments
• Board compliance training
• Material permitting and licences
• Group Ethics and Compliance Programme
• Raising concerns reports and material
internal and external investigations
Health, Safety, Environment and
Communities
• Fatalities, major incidents and other safety
issues
• Tailings storage facilities reviews
• Environmental incidents reports
• HSEC&HR policy framework
• Social and human rights performance
• Responsible sourcing
• Cultural heritage
• Communities engagement
Succession and remuneration
• Succession planning for Board and senior
management
• Senior management remuneration
Climate-related matters
• Oversight of the Group’s climate strategy
and response to climate-related risks and
opportunities that affect our business
• Monitoring progress against Glencore’s
climate strategy, including our Scope 1, 2
and 3 emissions performance, and the
ongoing development of our Group
marginal abatement cost curve (MACC)
• Providing our shareholders at our 2024
AGM the opportunity to vote on whether
the 2024-2026 CATP should be approved
following the Board’s endorsement
• Consideration of the plans for
development of the climate transition
strategy for EVR and overall integration
with the Group strategy
• Review of climate-related disclosures in
the Annual Report and other external
engagement
• Participation in internal training on
climate change, including on duties as
Directors, legal and general climate risk
considerations, external expectations and
evolving climate issues
Other activities
Information, management meetings,
site visits and professional
development
It is considered essential that the Non-
Executive Directors attain a robust
knowledge of the Group and its business
and allocate sufficient time to Glencore to
discharge their responsibilities effectively.
The Board calendar is planned to ensure
that Directors are briefed on a wide range
of topics.
Site and office visits by Non-Executive
Directors are an important part of the
Board’s work. A typical visit to an industrial
asset includes a tour of the facility and
discussions with local management as to
opportunities and challenges. It also includes
a session with a cross-section of workers
without management present, to encourage
the workers and Non-Executive Directors to
freely and openly ask questions of each
other. Each session differs, reflecting the
local workforce and issues affecting their
operations. However, they typically include a
discussion of topics such as health and
safety, compliance and raising concerns.
In addition to meeting with the local CEO,
the Board members have private meetings
with other members of the local
management team and other key
stakeholders which may include the local
CFO, external audit partner, a team member
from internal audit and assurance, and the
HSEC&HR, human resources and
compliance leads.
The Company Secretary assists in the
planning of the visit to ensure that as many
of the Board’s objectives as possible can be
met. This involves one or more planning
meetings with the Board members for each
visit as well as significant preparations with
local management. In 2024, there were visits
to the following sites:
• Ravensworth coal mine in New South
Wales, Australia;
• Canadian Copper Refinery and the Horne
Smelter, both in Quebec, Canada;
• KCC and MUMI copper and cobalt
operations, both in the DRC; and
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• workforce matters including diversity,
equity and inclusion (DEI); and
• cost control.
There were also visits to the Group’s Toronto
and New York offices, with the New York visit
having a focus on compliance and market
conduct issues as the Head of Market
Conduct is based in this office.
All Directors have access to the advice and
services of the Company Secretary, who is
responsible for ensuring that Board
procedures are complied with, and that
Directors have access to independent and
professional advice at the Group’s expense,
where they judge this to be necessary to
discharge their responsibilities as Directors.
Investigations
The work of the former Investigations
Committee continued last year in respect of
the investigations by the Swiss and Dutch
authorities, which then concluded with the
resolution of these investigations in August
2024. See note 32 to the financial
statements.
Management of conflicts of
interest
All Directors endeavour to avoid any
situation of conflict of interest with the
Company. Potential conflicts can arise and
therefore processes and procedures are in
place requiring Directors to identify and
declare any actual or potential conflict of
interest. Any notifications are required to be
made by the Directors prior to, or at, a Board
meeting and all Directors have a duty to
update the whole Board of any changes in
circumstances. Glencore’s Articles of
Association and Jersey law allow for the
Board to authorise potential conflicts and
the potentially conflicted Director must
abstain from any vote accordingly.
Related party transactions
In the course of its business, the Group
enters into transactions with organisations
which may constitute related parties.
All material related party transactions are
required to be reviewed and approved by
the Board. If a conflict exists for a Director,
they will not be allowed to vote on the
resolution approving the transaction. The
Company also seeks advice whenever an
assessment is to be made as to whether any
material transaction may be a related party
transaction under the terms of FCA UK
Listing Rule 8.
Transactions between the Group and its
significant joint ventures and associates
are summarised in note 33 to the
financial statements.
Acquisition and disposal of
assets
The Board reviews and approves all
material proposed transactions, including
acquisitions and disposals of assets, and
where required, there is an assessment as to
whether material transactions comply
with FCA UK Listing Rule 7 requirements.
If required, the Board may engage an
independent third-party adviser to review
the proposed transaction and provide an
independent opinion for the Board to assist
in its decision making in addition to the
requirements to have advice from a sponsor
under the FCA UK Listing Rules.
Oversight of management
of climate-related risks
and opportunities
Climate change is a Board-level standing
agenda item. During 2024, our internal
climate change governance framework
continued to drive implementation of our
climate strategy and its supporting
work programmes.
The Board is responsible for overseeing
progress against the Group’s climate
transition strategy, which is led by the
management team. Management, led by
our CEO in his capacity as chair of our
Climate Change Taskforce (CCT), reports to
the Board on implementation of the
strategy.
Climate strategy continues to be an
important area of focus for our shareholders.
There continues to be broad support for our
climate strategy, which seeks to maintain
resilience to the risks and opportunities of
the evolving energy transition, while
maintaining focus on progressing towards
our ambition of achieving net zero industrial
emissions by 2050, subject to a supportive
policy environment. The principal areas of
interest for our shareholders include:
• Cerrejón coal mine in Colombia.
Particular areas of focus for these site visits
included the following:
• opportunities and challenges facing the
business;
• tone from the top locally on our Values,
especially on Safety and Integrity;
• management of catastrophic risks;
• health and safety initiatives, including the
effectiveness of SafeWork;
• effectiveness of the Ethics and Compliance
Programme and sufficiency of compliance
resources;
• how accounting internal controls are
being embedded;
• relationships with communities,
particularly during the site visits at KCC
and Cerrejón, which included meetings
with leadership groups of local
communities;
• quality and relevance of the internal audit
function;
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Corporate governance report continued
• comparison of our targets and ambition to
relevant IEA scenarios; and
• integration of the EVR steelmaking coal
assets into the climate strategy.
In response to the constructive
recommendations we received from
stakeholders, we proposed an updated
2024-2026 CATP at last year’s AGM, which
received overwhelming support from voting
shareholders. We are currently assessing
how best to integrate the EVR assets into
our climate transition strategy following the
decision to retain the Group’s combined coal
and carbon steel material businesses after
consultation with shareholders.
We will continue our strategy of active
engagement with our stakeholders on this
topic.
Accountability and audit
Financial reporting
The Group has in place a comprehensive
financial review cycle, which includes a
detailed annual planning/budgeting process
where our commodity departments prepare
budgets for overall consolidation and
approval by the Board. The Group uses many
performance indicators to measure both
operational and financial activity in the
business. Depending on the measure, these
are reported and reviewed on a daily, weekly
or monthly basis. In addition, management
in the business receives weekly and monthly
reports of indicators which are the basis
of regular operational meetings, where
corrective action is taken if necessary. At a
Group level, a well-developed management
accounts pack, including income statement,
balance sheet, cash flow statement as well
as key ratios, is prepared and reviewed
monthly by management. As part of the
monthly reporting process, a reforecast of
the current year projections is performed.
To ensure consistency of reporting, the
Group has a global consolidation system
as well as a common accounting policies
and procedures manual. Management
monitors the publication of new reporting
standards and works closely with our
external auditor in evaluating any impact.
Risk management and internal control
The Board has complied with provisions 28
to 31 of the 2018 UK Corporate Governance
Code by establishing an ongoing process for
identifying, evaluating and managing the
risks that are considered significant by the
Group in accordance with the Guidance on
Risk Management, Internal Controls and
Related Financial and Business Reporting
published by the Financial Reporting
Council, as detailed on pages 86 to 100. The
Directors confirm that they have carried out
a robust assessment of the principal and
emerging risks facing the Group and have
reviewed the effectiveness of the risk
management and internal control systems.
The Directors also confirm that the Group’s
risk management and internal control
systems remain effective.
Interactions with shareholders and
other stakeholders
The Board aims to present a balanced and
clear view of the Group in communications
with shareholders and believes that being
transparent in describing how we see the
market and the prospects for the business
is extremely important.
We communicate with shareholders in
a number of different ways. The reporting of
our full- and half-year results and quarterly
production reports is achieved through the
publication of reports and other
communications including releases,
presentations and group calls. The full- and
half-year financial reporting is followed by
investor meetings across a variety of
locations where we meet institutional
shareholders. We also regularly meet with
existing and prospective shareholders. We
facilitate visits to parts of the business from
time to time to give analysts and major
shareholders a better understanding of how
we manage our operations. These visits and
meetings are principally undertaken by a
combination of the CEO, CFO and Head
of Investor Relations.
In addition, many key shareholders have
meetings with the Chairman and appropriate
other senior participants, including other
Non‑Executive Directors, the Company
Secretary and the Head of Sustainability.
The matters covered by meetings with the
Chairman and Company Secretary include
the work of the Board’s committees.
For individual shareholders, the AGM is the
primary opportunity for direct interaction
with the Board and management. The
Chairman, along with the Chair of each
committee, are available for questions at
the AGM.
The Company’s next AGM is due to be held
on 28 May 2025. Full details of the meeting
will be set out in the AGM notice of meeting.
All documents relating to the AGM will be
available on the Company’s website at:
glencore.com/agm
The Board may interact with other
stakeholders in additional ways. For
example, the Board’s main direct interaction
with employees and communities is through
visits to industrial sites and marketing offices
as described above. Direct interaction with
NGOs usually takes place through
correspondence and there is interaction
with a variety of stakeholders at the
Company’s AGM.
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Liz Hewitt
Chair
Other members
Martin Gilbert
Gill Marcus
David Wormsley1
1. Until his retirement on 31 December 2024
The Audit Committee met six times during
the year. Each committee member attended
all of these meetings. All current Audit
Committee members are considered by the
Board to be Independent Non-Executive
Directors and to be financially literate by
virtue of their relevant financial experience.
As a whole, the Audit Committee has the
skills and experience relevant to the sector.
John Burton is the Secretary to the
Committee.
credit and market risks, across the Group’s
industrial and marketing activities;
• reviewing the global audit plan, scope
and fees of the audit work to be
undertaken by the external auditor;
• reviewing the annual Group internal audit
and assurance plan;
• monitoring the progress made in
remediating the internal control
deficiencies noted by the external auditor
(IT access controls and certain review
controls over journal entries, trading and
complex models). The Audit Committee
regularly discusses these matters, the
actions to remediate them and the
progress being made with management
and the external auditor; refer to item 4 of
the Significant issues section (Internal
controls over financial reporting (ICFR));
• reviewing and agreeing the
preparation and scope of the year-end
reporting process;
• considering applicable regulatory
changes to reporting obligations;
• considering the scope and methodologies
to determine the Company’s going
concern and longer-term viability
statements;
• reviewing the full-year and half-year
financial statements with management
and the external auditor;
• evaluating the Group’s procedures for
ensuring that the Annual Report, taken as
a whole, is fair, balanced and
understandable;
• monitoring the independence of the
external auditor and the operation
of the Company’s policy for the provision
of non-audit services by the external
auditor; and
• recommending to the Board a resolution
to be put to the shareholders for their
approval on the appointment of the
Audit Committee report
external auditor and to authorise the
Board to fix the remuneration and terms
of engagement of the external auditor.
Risk management and internal
controls review process
The Audit Committee receives reports and
presentations at each scheduled meeting on
management of marketing and related risks
(excluding operational and sustainability
risks which are reviewed by the HSEC
Committee and compliance risks which
are reviewed by the ECC Committee) and
the Board separately carried out an in-depth
review of the identified principal and
emerging risks and uncertainties and the
Group’s risk management framework as a
whole which is revisited prior to finalisation
of the Annual and Half-Year Reports.
The Board’s internal controls review
processes are outlined in the Risk
management section beginning on
page 86.
Significant issues
The Audit Committee assesses whether
suitable accounting policies, including the
implementation of new accounting
standards, have been adopted and whether
management has made appropriate
estimates and judgements. It also reviews
the external auditor’s reports outlining audit
work performed and conclusions reached
in respect of key judgements, as well as
identifying any issues in respect of
these reports.
During 2024, the Audit Committee focused
on the following key matters, reviewing
carefully in relation to items 3 to 9,
management’s position and any items of
challenge raised by the external auditor. In
The Audit Committee usually invites the
CEO, CFO, General Counsel, Group Financial
Controller, Chief Risk Officer, Head of
Compliance, Head of Group Internal Audit
and Assurance (GIAA) and the lead partner
from the external auditor to attend each
meeting. Other members of management,
GIAA and the external audit team may
attend as and when required. Other
Directors also usually attend its meetings.
Additionally, the Audit Committee holds
closed sessions with the external auditors
and the Head of GIAA without members of
management being present at every
scheduled meeting. The Audit Committee
has adopted an approach which allows only
certain limited non-audit services to
be contracted with the external auditor.
Responsibilities
The primary function of the Audit
Committee is to assist the Board in fulfilling
its responsibilities with regard to financial
risk management and internal controls,
financial reporting, and oversight of external
and internal audit.
During the year, the Audit Committee’s
principal work included the following:
• reviewing the Group’s internal financial
controls and financial risk
management systems;
• reviewing the Group’s financial and
accounting policies and practices,
including discussing material issues with
management and the external auditor,
especially matters that influence or could
affect the presentation of accounts
and key figures;
• considering the output from the Group-
wide processes used to identify, evaluate
and mitigate financial risks, including
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Audit Committee report continued
each case the Audit Committee was satisfied
with the agreed position.
1. Audit plan review
Reviewed key developments and audit risks
central to planning for the half-year review
and annual audit. These included most of
the matters set out below.
Considered and agreed for the half year
review and full year audit the materiality,
scope and approach to be applied by the
external auditor including in relation to
certain procedures and testing.
2. Implementation of monitors’
recommendations
Reviewed the plan to address the various
finance-related recommendations from the
independent compliance monitors,
especially the greater promotion of a
compliance conscious mentality by finance
personnel.
3. Significant accounting matters and
audit risks
Considered current or prospective significant
accounting matters and audit risks. These
included the matters discussed below as
well as a number of key judgements and
estimates related to matters such as legal
proceedings, revenue recognition related to
LNG contracts, provisions for restoration and
rehabilitation and acquisitions and disposals
of assets during the period, especially with
respect to EVR.
4. Internal controls over financial
reporting (ICFR)
Monitored enhancements to the Group’s
internal controls and related financial
assurance structures, noting future
regulatory requirements in this regard.
5. Provision 29 planning
In an additional meeting the Audit
Committee considered the planning for the
2024 UK Corporate Governance Code’s
requirements with respect to the
effectiveness of the Group’s risk
management and internal control
framework, which will apply from 2026.
6. Impairments
Considered whether the carrying values of
goodwill, industrial assets, physical trade
positions and material loans and advances
may be impaired as a result of commodity
price volatility and some asset-specific
factors including the impact of climate
change. This included reviewing reports
from the external auditor and management,
whereby performance assumptions were
derived from the Board-approved business
plan and other strategic plans underpinning
future performance expectations.
Considerable focus was applied to
management’s commodity price, discount
rate and exchange rate assumptions and
their sensitivities within the models.
7. Taxation
Due to its global reach, including operating
in many higher-risk jurisdictions, the Group
is subject to complexity and uncertainty in
accounting for income taxes, particularly the
evaluation of tax exposures and
recoverability of deferred tax assets. The
Audit Committee engaged with
management to understand the potential
tax exposures globally and the key estimates
made in determining the positions recorded,
including the status of communications with
local tax authorities and the carrying values
of deferred tax assets. The African copper
assets continue to be a particular area of
focus.
8. Counterparty exposures
Considered exposures to credit and
performance risk, which resulted in the
requirement to make estimates around
recoverability of receivables, loans, trade
advances and contractual non-performance.
As part of an ongoing review, the Audit
Committee considered material continuing
exposures, the robustness of processes
followed to evaluate recoverability and
whether the amounts recorded in the
financial statements are reasonable.
9. Annual Report
Performed a detailed review of the Annual
Report in respect of the matters within the
Audit Committee’s remit.
10. Site visits
As part of the Board’s programme of site
visits, discussions are usually held with
designated individuals, representing local
accounting leadership, GIAA, external audit,
compliance and human resources.
11. Other material issues
A full discussion of the Value at Risk (VaR)
limits applied in the year is set out in the Risk
management section on page 88.
The Audit Committee considered, and was
satisfied with, the going concern and
longer-term viability conclusions reached as
set out on page 91.
Having considered all of the above, the Audit
Committee recommended to the Board
approval of the 2024 half year and full year
preliminary results and the Annual Report.
Internal audit
The Audit Committee monitored the
effectiveness of the GIAA function’s work, as
described in the Risk management section
on page 87.
The Audit Committee continued to focus on
the critical role of GIAA and the progress
made on the implementation of its new
strategy following a revamping of the
function, which has required a significant
number of changes in approach and
increased resources.
Review of the effectiveness and
independence of the external
audit
The Audit Committee assesses the quality
and effectiveness of the external audit
process on an annual basis in conjunction
with the senior management team through
completion and review of committee and
management questionnaires covering all
aspects of the audit process. Key areas of
focus include consideration of the quality
and robustness of the audit, whether the
scope of the auditor’s work is sufficient,
identification of and response to areas of risk
and the experience and expertise of the
audit team, including the lead audit partner
and whether there is appropriate scepticism
by the auditor of management’s
assumptions. If there are any questions as to
auditor’s independence, the Audit
Committee has the authority to engage
independent counsel as necessary to resolve
such issues. The evaluation for the 2024
external audit concluded that the external
auditor was independent, objective and
effective in the delivery of the audit.
For 2024, fees paid to the external auditor
were approximately $41.0 million. These
included audit-related assurance services
of $3.0 million and non-audit fees of
$1.0 million as permitted by the UK Financial
Reporting Council (FRC)‘s Revised Ethical
Standard; further details of non-audit fees
are contained in note 30 to the financial
statements.
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Audit Committee report continued
A key factor that may impair an auditor’s
independence is a lack of control over
non-audit services provided by the external
auditor. The Group addresses this issue by
assessing whether:
• services performed by the auditor are
non-audit services permitted by the FRC’s
Revised Ethical Standard;
• prior approval by the Audit Committee is
required for non-audit services; and
• disclosure of the extent and nature of
non-audit services is needed.
Non-audit services are only undertaken if
there is a commercial reason to do so
without jeopardising independence. The
Group’s Rules Governing the Independence
of the External Auditor were updated by the
Audit Committee following the release of
the FRC’s Revised Ethical Standard 2024.
The Audit Committee has the primary
responsibility for making recommendations
to the Board on the appointment,
reappointment and removal of the external
auditor. The committee is satisfied that it
complies with the FRC’s document Audit
Committees and the External Audit:
Minimum Standard, which is principally
concerned with oversight of audit and
non-audit services.
The Group complies with the provisions of
the Statutory Audit Services for Large
Companies Market Investigation (Mandatory
Use of Competitive Tender Processes and
Audit Committee Responsibilities) Order
2014, which includes the requirement to
re-tender the external audit periodically.
Deloitte was appointed as Glencore’s
external auditor on 22 August 2011 for the
year ended 31 December 2011 and
subsequent years. Following a competitive
tender process run by the Audit Committee
in 2021, Deloitte was reappointed as the
external auditor for the year ended
31 December 2022 and subsequent years.
The lead audit partner rotated three times
during this period, with the most recent
rotation being after the 2022 audit.
UK Financial Reporting Council
The FRC is a body authorised by the UK
Secretary of State to review and investigate
the annual accounts, strategic reports and
directors’ reports of public and large private
companies for compliance with relevant
reporting requirements. In 2024, the FRC
carried out a review of the Company’s 2023
annual report and accounts. Following its
review, the FRC asked us to provide more
details about several reclassifications of
comparative amounts that were disclosed in
the notes to the 2023 financial statements.
We provided the FRC with the information
and explanations it requested, and agreed to
provide more detailed explanations of the
nature of any future restatements of
comparative amounts if they arise. We have
also refined the description of the physical
advances and prepayments accounting
policy to more clearly link the policy with our
financial instruments accounting policy
(reflected in note 1 to the financial
statements).
Liz Hewitt
Chair of the Audit Committee
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Additional Information
Ethics, Compliance and Culture (ECC) Committee report
The ECC Committee met four times during
the year. Each committee member attended
all of the meetings during their period of
appointment. Peter Coates attended the first
two meetings until his retirement in May
2024. All other Directors are invited to attend
the meetings.
María Margarita Zuleta became a member of
the ECC Committee upon appointment to
the Board in February 2025.
Nicola Leigh (Deputy Company Secretary) is
the Secretary of this committee.
Responsibilities
The main responsibilities of the ECC
Committee are:
• overseeing the implementation of the
Group Ethics and Compliance Programme
including Group policies, standards,
procedures, guidelines, systems and
controls for the prevention of unethical
business practices and misconduct;
• reviewing reports and the activities of
relevant management committees: ESG
and Business Approval Committees;
• assessing and monitoring culture to
ensure alignment with the Group’s
Purpose and Values and ensuring
appropriate levels of workforce
engagement by the designated
Directors; and
• monitoring the Group’s stakeholder
engagement.
Main activities
During the year, the ECC Committee’s
activities included the following:
Ethics and Compliance
• Provided oversight of the key elements
of the Ethics and Compliance Programme,
including risk assessments, policy
implementation, training and awareness,
internal monitoring, and reviews
conducted by third-party specialists.
• Reviewed the implementation and
effectiveness of the Ethics and Compliance
Programme and approved updates to
Group policies.
• Reviewed the compliance structure and
resourcing to assess whether it is sufficient
for the Group.
• Oversaw the engagement of the Group
with the independent compliance
monitors appointed pursuant to the
resolutions with the US Department of
Justice, including in respect of their
extensive review work and the
implementation of their
recommendations.
Stakeholder engagement
• Reviewed our ESG engagement, including
with investors, NGOs and multi-
stakeholder organisations that invest or
engage on ESG issues, and track the
development of reporting on ESG-related
topics.
• Considered the significant matters
on which the Group has made political
representations and our use of lobbyists
and the conduct and positions of our
member organisations during 2024 on
material issues in accordance with our
Political Engagement Policy.
• Considered regulatory developments
in relation to responsible sourcing and the
progress of the Group’s programme in
meeting the evolving requirements and
identifying and addressing relevant risks in
our supply chain.
Workplace culture and practices
• Considered management of health-
related concerns, policies and
communications for employees with
a focus on mental health and wellbeing
and providing accurate health advice
and support.
• Considered Group HR policies, standards
and legislative compliance around the
globe.
• Continued to assess whether the Group
has or is developing the appropriate
measures to address concerns regarding
potential harmful behaviour in our
operations.
• Considered regulatory developments in
relation to diversity and inclusion and the
Group’s proposed governance and action
planning to meet regulatory guidance and
good practice.
• Assessed employee attitudes toward the
Group’s culture of compliance through
reviewing the results from our 2024
People Survey.
• Reviewed the outcome of behavioural
reviews for senior leaders, including
adjustments to compensation.
Workforce engagement
As part of the ECC Committee’s role in
assessing and monitoring Group culture,
individual Non-Executive Directors engaged
with a range of employees during their site
visits. Discussions were focused on local
business topics and Group-wide initiatives
such as those related to ethics and
compliance, health and safety, diversity and
our Values.
The Board considers having designated
workforce engagement Directors as the
most constructive method of workforce
engagement and has chosen for all
members of this committee to be such
workforce engagement Directors. Each
Director uses the forum of this committee to
provide feedback to the Board on the
concerns of the workforce and ensure
that employees’ voices are heard in
the boardroom.
Cynthia Carroll
Chair of the ECC Committee
Cynthia Carroll
Chair
Other members
Liz Hewitt
Gill Marcus
María Margarita Zuleta
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Additional Information
Health, Safety, Environment and Communities (HSEC) Committee report
The HSEC Committee met four times during
the year. Each committee member attended
all meetings during their period of
appointment. Peter Coates attended the first
two meetings until his retirement in May
2024. Every scheduled meeting had a
substantial agenda, reflecting the HSEC
Committee’s objective of monitoring the
achievement by management of ongoing
improvements in HSEC&HR performance.
John Burton is the Secretary of this
committee.
During 2024, the HSEC Committee was
chaired by Kalidas Madhavpeddi, following
the retirement of Peter Coates. From
February 2025, the HSEC Committee has
been chaired by John Wallington.
Responsibilities
The main responsibilities of the HSEC
Committee are:
• ensuring that appropriate Group policies
and standards are developed in line with
our Values and Code of Conduct for the
identification and management of current
and emerging health, safety,
environmental, social performance and
human rights risks;
• ensuring that the policies and standards
are effectively communicated
throughout the Group and that
appropriate processes and procedures
are developed at an operational level
to implement these policies and standards
and assess their effectiveness through:
– assessment of operational performance;
– review of updated internal and external
reports; and
– independent audits and reviews of
performance with regard to HSEC&HR
matters, and action plans developed
by management in response to
issues raised;
• evaluating and overseeing the quality
and integrity of any reporting to
external stakeholders concerning
HSEC&HR matters; and
• reviewing the outcome of investigations
following fatalities and the recommended
actions to improve safety and prevent
recurrence.
Main activities
During the year, the HSEC Committee
engaged in the following activities:
• HSEC&HR Strategy: reviewing the Group’s
implementation efforts for the new
HSEC&HR strategy, approving updates to
Group policies and overseeing integration
efforts following the successful completion
of the EVR acquisition.
• Health and safety: overseeing the Group’s
fatality prevention programme including
SafeWork, which is Glencore’s approach
to eliminating work-related fatalities. The
committee was updated on the progress
of implementation and reviewed each
fatality occurring with emphasis on
reviewing the investigation outcomes and
recommendations and effective
communication of lessons to be learned
across the Group. There was also a focus
on a safety turnaround plan for the
ferroalloys department and improvement
plans for Kazzinc. Further, there were
reviews of critical incidents and trends
in TRIFR, LTIFR, HPRIs and other
relevant statistics.
• Environment: reviewing the Group’s
progress and performance concerning
emissions, nature, energy, water and
stewardship and other impacts.
• Social performance and human rights:
reviewing material issues including
security management, the Social
Contribution Framework, the approach to
engagement with Indigenous Peoples,
cultural heritage issues, investigations and
complaints, monitoring the Group’s
strategy and reviewing serious incidents.
• Assurance: reviewing the work of the
HSEC&HR Audit component of the GIAA
function, including overview of key
HSEC&HR catastrophic audits such as
tailings storage facilities, multi-disciplinary
open cut and underground audits,
metallurgical plants and concentrators.
• Tailings storage facilities: overseeing the
work on our tailings management
framework and updated Tailings Storage
Facility Policy which is aligned with the
International Council on Mining and
Metals (ICMM)’s Tailings Governance
Framework position statement, the Global
Industry Standard on Tailings
Management (GISTM), the CDA’s Dam
Safety Guidelines and the International
Commission on Large Dams and the
internal work on the Group’s facilities,
particularly those with a ‘very high’ or
‘extreme’ consequence classification.
• External affairs: monitoring the Group’s
external HSEC reporting including GISTM
disclosure and ICMM performance
expectations disclosure, continuing
consideration of material issues, and
stakeholder and investor engagement.
John Wallington
Chair of the HSEC Committee
John Wallington
Chair
Other members
Cynthia Carroll
Kalidas Madhavpeddi
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Additional Information
The Nomination Committee met three times
during the year and each committee
member attended all of the meetings during
their period of appointment.
John Burton is the Secretary of this
committee.
Role and responsibilities
The main responsibilities of the Nomination
Committee are to assist the Board with
succession planning and with the selection
process for the appointment of new
Directors, both Executive and Non-Executive,
including the Chair, and overseeing
succession plans for senior management.
This involves:
• evaluating the balance of skills, knowledge
and experience of the Board and
identifying the capabilities required for
a particular appointment;
• overseeing the search process;
• evaluating the need for Board
rejuvenation and succession planning
generally;
• overseeing planning for CEO and CFO
succession;
• monitoring the CEO’s planning for senior
management succession to seek to ensure
that the Group has a suitable pipeline of
candidates; and
• considering diversity in appointments.
Main activities
During the year, the Nomination Committee
focused on the following main tasks:
• Consideration of the current composition
of various Group senior leaders and the
succession plans for these individuals.
• Consideration of business leadership
development and talent management in
the industrial business.
• Review of committee compositions.
Also, prior to the notice of the 2024 AGM
being compiled, the Nomination Committee
considered the performance of each
Director. It concluded that each Director
was effective in their role and continued
to demonstrate the commitment required
to remain on the Board. Accordingly,
it recommended to the Board that re-
election resolutions be put for each
continuing Director at the AGM.
Succession planning and the review of
succession-related development actions is
considered regularly by leadership and
Human Resources. Specific focus is placed
on measuring and increasing the diversity of
the senior management group and the
candidate pipeline. Our overriding targets
for diversity in senior leadership remains
those targets suggested by the FTSE
Women Leaders Review.
The Nomination Committee acknowledged
the recommendations of the FTSE Women
Leaders Review (formerly Hampton-
Alexander Review) on gender and the Parker
Review on ethnic diversity. As of
31 December 2024, three Board members,
out of a total of eight, were women. The
Board’s composition therefore missed the
40% recommendation of the FTSE 100
Women Leaders Review by 2.5 percentage
points in 2024. However, following the
retirement of David Wormsley on
31 December 2024 and the appointment of
María Margarita Zuleta on 18 February 2025,
50% of the Board members are now women.
The Nomination Committee continues to
encourage improvements in diversity within
the Group’s management and it is part of
the Nomination Committee’s policy when
making new Board appointments to
consider the importance of diversity on the
Board, including gender and ethnicity, which
is considered in conjunction with experience
and qualifications.
Board performance and
effectiveness
Each year, the Board undertakes a review of
its own effectiveness and performance, and
that of its committees and individual
directors. At least every three years, the
review is externally facilitated with the last
external review being completed in 2022. In
2024, a performance evaluation was
conducted internally. The process for how
the review was conducted is discussed
below.
In 2024, each Director completed
questionnaires that covered various key
indicators of Board and committee
performance and effectiveness. The review
of each Director’s performance was led by
the Chairman and the Senior Independent
Director in one-to-one meetings. The
Chairman and Senior Independent Director
also reviewed each other’s performance. The
review took place in January and February,
and the final results were presented to the
Board collectively for discussion. The Board
discussed some minor operating and
administrative recommendations, which
included dedicating more time for Audit
Committee meetings and addressed the
topic of Board composition and succession
planning. Overall, the 2024 review reaffirmed
that the Board believes that the Board and
its committees continue to operate
effectively and are well functioning.
Kalidas Madhavpeddi
Chair of the Nomination Committee
Nomination Committee report
Kalidas Madhavpeddi
Chair
Other members
All other Non-Executive Directors
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Additional Information
Directors’ remuneration report
For the year ended 31 December 2024
Martin Gilbert
Chair
Other members
Kalidas Madhavpeddi
Cynthia Carroll
David Wormsley1
María Margarita Zuleta2
1. Until his retirement on 31 December 2024
2. From her appointment on 18 February 2025
Introduction from the
Remuneration Committee Chair
Dear shareholders,
On behalf of the Board, I am pleased to
present the Directors’ remuneration report
for the financial year ended 31 December
2024, my first full year as Chair of Glencore’s
Remuneration Committee.
A key focus for the committee’s work during
2024 was the implementation of the revised
Remuneration Policy for the CEO, including
the measurement and assessment of
performance given the unique nature of the
CEO’s pay package.
We have been guided in our decision
making by the principles of responsible pay
and believe that our policy achieves its
intended objectives to provide due
recognition and support for Glencore’s
progression now and into the future. A
number of important considerations have
informed our decisions this year, including:
• the views and expectations of our
stakeholders;
• financial and non-financial performance;
• the Group’s ESG initiatives; and
• our continued focus on capital projects
and delivering production into global
markets.
Remuneration Policy
2024 represents the first year of application
of the new policy, which was approved by an
overwhelming 97.6% of voting shareholders
at our 2024 Annual General Meeting. The
policy, which replaced the annual bonus and
restricted share plans with one single Career
Shares Plan, was developed following
extensive consultation with major
shareholders and investor bodies in 2023
and early 2024.
The Career Shares Plan is uniquely designed
to support Glencore’s long-term value
creation strategy by prioritising overall
performance while avoiding short-term,
volatile financial outcomes and behaviours.
By emphasising long-term share ownership
over cash-based rewards, the plan fosters
strategic decision-making and reinforces
alignment with shareholder interests. To
further strengthen this alignment, career
shares cannot be sold during the CEO’s
tenure and are subject to a two-year
post-exit shareholding requirement, in
addition to the minimum ownership level
set by the Remuneration Policy. In practice,
the ultimate value of these awards to the
CEO will be based on the share price at the
end of the applicable holding period (which
will be in a minimum of five years’ time),
ensuring the CEO’s decisions and actions
reflect a sustained commitment to
Glencore’s long-term success and
shareholder experience.
The Career Shares Plan provides the CEO a
maximum potential incentive opportunity of
525% of salary at grant. The actual award size
is determined by the committee following a
comprehensive, holistic review of the
progress made in the relevant performance
year, focusing on the company’s long-term
strategic priorities, with the assessment
incorporating a one-year retrospective
analysis that considers macroeconomic
factors and, where applicable, multi-year
trends to provide a broader perspective and
mitigate the risk of unintended
compensation outcomes. Any award is
subject to a three-year vesting period, after
which the committee conducts a second
assessment to evaluate performance against
key underpins such as shareholder
distributions, ESG progress, and overall
business performance, before determining
the final vesting level. The initial review
ensures that actions taken align with
long-term strategic priorities and are
forward-looking, while the final review
confirms the actual delivery of these
priorities before the awards are vested and
delivered to the CEO.
The company intends to implement the
policy in a considered way and will continue
to monitor the views of shareholders and
engage directly with them as appropriate.
2025 career shares award
In early 2025, the committee conducted a
comprehensive and holistic assessment of
performance for the first career shares
award, the sole form of incentive
compensation granted to the CEO under the
Remuneration Policy. This assessment
focused on evaluating the degree of
alignment between the actions taken during
the performance year and Glencore’s
long-term value creation strategy,
considering the company’s strategic
priorities: (1) responsible and ethical business
practices; (2) effective capital management;
and (3) strong operational and commercial
performance.
In line with the performance evaluation
framework described above, the committee
reviewed multiple financial and non-
financial performance dimensions, including
key financial, operational, and sustainability
achievements that demonstrated the quality
of strategy execution and sustained
performance. In line with the Remuneration
Policy, the assessment incorporated a
one-year retrospective analysis and took into
account the macroeconomic environment
and multi-year trends, allowing for a broader
perspective and the avoidance of
unintended compensation outcomes.
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Directors’ remuneration report continued
The committee determined that a career
shares award of 500% of salary, representing
95% of the maximum opportunity, is an
appropriate reflection of the CEO’s
leadership and the transformational
progress achieved. This outcome recognises
meaningful advancements that have
strengthened Glencore’s long-term position,
including strong financial and operational
execution, a disciplined approach to capital
allocation, and sustained progress on key
ESG initiatives. The vesting of this career
shares award remains subject to the
satisfaction of underpins at the end of the
three-year vesting period, and any vested
awards cannot be sold during the CEO’s
tenure and remain subject to a two-year
post-exit shareholding requirement. In
practice, this means the actual value of the
career shares award to the CEO will
ultimately depend on Glencore’s share price
when the holding restrictions lapse. The
committee is confident that this award
appropriately reflects the strategic progress
achieved while ensuring a clear and long-
term link between performance and
compensation outcomes.
When our shareholders approved the
Remuneration Policy, we committed to
robust disclosure of the applicable
performance dimensions, the evaluation of
performance levels and the resulting award
determination for career shares each year.
This transparency ensures clarity around
how performance is assessed and how it
influences award outcomes. Further details
on the committee’s determination of the
2025 career shares award for the CEO,
including the specific considerations and
assessment process, can be found in the
Summary of career shares award
considerations for the CEO section of this
report starting on page 130.
Performance incentive outcomes in
2024
The CEO did not receive an annual bonus for
2024.
The first set of three restricted share awards
for the CEO under the former remuneration
policy vested on 30 June 2024. The
committee conducted a holistic assessment
of the performance underpins for the
restricted share awards prior to the award
vesting in full. Further details of the
committee’s assessment of these underpins
are provided in the Restricted Share Plan
award vesting in the 2024 section of this
report. These vested awards remain subject
to holding for five years after grant or two
years-post employment, whichever occurs
latest, ensuring that there is a robust and
long-term alignment of pay outcomes with
the shareholder experience.
Wider workforce considerations
The committee is advised of pay and
conditions around the Group and considers
such information when considering
executive pay. The Head of Human
Resources and the Head of Reward also
attend meetings by invitation and are able
to share information about the wider
workforce. In 2024, there was a continued
focus on promoting employee engagement
and facilitating site visits and direct
communication between employees and
Board members on a wide range of topics,
including diversity and inclusion, health and
wellbeing, safety, business and strategy,
wider workforce pay including living wage
considerations, the CEO pay ratio and
compliance initiatives.
Remuneration for the Chairman
and Non-Executive Directors
Fees for the Chairman and Non-Executive
Directors are reviewed annually and are
benchmarked against peer companies.
Based on our latest review and taking into
consideration that fees have remained
largely unchanged since 2017, the fees for
the Senior Independent Director and
Non-Executive Directors were increased in
2024 to remain competitive with market
practice and the Group’s peers, as described
in further detail on page 134.
Conclusion
Ensuring that our remuneration approach,
practices, and outcomes fully support our
strategy remains an overarching priority. The
committee’s focus in 2025 will be the
continued implementation of the
Remuneration Policy to ensure that our
approach to executive remuneration
remains fair, responsible, and provides a
dynamic framework that can accommodate
the evolving demands of a changing
business environment and the priorities of
our business, shareholders, and other
stakeholders.
Sincerely,
Martin Gilbert
Chair of Remuneration Committee
17 March 2025
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Additional Information
Directors’ remuneration report continued
Annual Report on Remuneration
The Directors’ remuneration report will be put to an advisory shareholder vote at the AGM on
28 May 2025. Certain sections of the report are subject to audit and are marked accordingly.
Remuneration Committee
Membership and experience
All committee members were considered independent on their appointment to the Board.
Further details concerning independence of the Non-Executive Directors are contained on
page 102. The members of the committee provide a useful balance of skills, experience and
perspectives to provide the critical analysis required in carrying out the committee’s
function. Each committee member has had a long career in the management of large
organisations and therefore provides considerable experience of remuneration analysis,
design and implementation.
Role and responsibilities
The committee’s principal responsibilities are to regularly review the appropriateness and
relevance of the Remuneration Policy and set remuneration for the Chairman, the CEO and
senior management.
The committee reviews wider workforce remuneration and related policies and the
alignment of incentives and rewards with culture, taking these into account when setting
the policy for Executive Director remuneration. The committee further considers corporate
performance on ESG issues when setting remuneration for the CEO. Additionally, the
committee seeks to ensure that the incentive structure for the Group’s senior management
does not give rise to ESG risks by inadvertently promoting and/or rewarding behaviours that
are not aligned with the Group’s Values, Code of Conduct and policies.
The terms of reference of the Remuneration Committee set out its role. They are available on
our website at: glencore.com/who-we-are/governance
Committee meetings in 2024
The committee had five meetings during the year. It considered, amongst other matters, the
remuneration packages applicable to the CEO and senior management, the making and
vesting of share awards to the CEO, the standardised formal behavioural review process for
the most senior managers worldwide and the content and approval of the Directors’
remuneration report.
The CEO and CFO may be invited to attend some or all of the proceedings of committee
meetings; however, they do not participate in any decisions concerning their own
remuneration. Similarly, the Chairman is not involved in discussions regarding his own fees.
Advisers to the committee
The committee received remuneration advice from Mercer UK Limited (Mercer), its
independent external adviser. Mercer is a member of the Remuneration Consultants Group
(the UK professional body for Remuneration Consultants) and adheres to its code of conduct.
The committee is satisfied that the advice provided is objective and independent. The fees
paid for advice in respect of 2024 were $87,716. The Mercer team does not have any
connection with the company or individual Directors.
AGM shareholder voting
At the AGM held on 29 May 2024, the votes cast to approve the Directors’ Remuneration
Policy and the Directors’ Remuneration Report, for the year ended 31 December 2023, were
as follows.
Votes ‘For’
Votes ‘Against’
Votes ‘Withheld’1
Directors’
Remuneration Policy
97.60%
2.40%
-
8,295,211,021
203,971,217
180,282,952
Directors’
Remuneration Report
96.36%
3.64%
-
8,287,185,228
313,222,214
79,057,748
1. A vote withheld is not counted in the calculation of the proportion of votes for and against the
resolution.
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Additional Information
Directors’ remuneration report continued
UK Corporate Governance Code considerations
In 2024, the committee considered the factors set out in provision 40 of the 2018 UK Corporate Governance Code as part of its review of the Remuneration Policy. In our view, the policy
addresses those factors as set out below:
Clarity: remuneration arrangements should be
transparent and promote effective engagement with
shareholders and the workforce.
Our policy and pay arrangements are clearly disclosed each year in our Annual Report. The committee proactively seeks
engagement with shareholders on remuneration matters. The committee believes that the simplified CEO remuneration
structure contributes significantly to clarity.
Simplicity: remuneration structures should avoid
complexity and their rationale and operation should be
easy to understand.
Our remuneration structure comprises fixed and variable remuneration. The new policy utilises a single integrated incentive in
the form of career shares which provides a simple and transparent mechanism for aligning CEO and shareholder interests
while steering away from the complexities of traditional separate short- and long-term incentives.
Risk: remuneration arrangements should ensure
reputational and other risks from excessive rewards, and
behavioural risks that can arise from target-based
incentive plans, are identified and mitigated.
There are suitable mechanisms for the committee to reduce award levels for career shares, and all awards are subject to malus
and clawback provisions. Career shares reduce the risk of unintended remuneration outcomes associated with complex
performance conditions typical of other forms of long-term incentive. The comprehensive Career Shares Plan underpins also
mitigate the risk of payments for failure while the requirement to retain the awards until after retirement ensures a very
long-term alignment with shareholders.
Predictability: the range of possible values of rewards to
individual directors and any other limits or discretions
should be identified and explained at the time of
approving the policy.
Career shares have reward values that are less volatile than conventional performance share plans (removing the risk of
potentially unintended outcomes). Maximum award levels and discretions are set out in the Remuneration Policy tables
including scenario charts showing the potential outcomes.
Proportionality: the link between individual awards, the
delivery of strategy and the long-term performance of
the company should be clear. Outcomes should not
reward poor performance.
Variable pay represents a significant majority of the CEO’s total remuneration opportunity and is entirely delivered in shares
which must be retained for two years post-employment, in line with the provisions of the Career Shares Plan. The committee
considers performance holistically as part of the underpin each year to ensure that there is a clear link to strategy. Discretion is
available to the committee with the ability to reduce awards, if necessary, to ensure that formulaic outcomes do not reward
poor performance.
Alignment to culture: incentive schemes should drive
behaviours consistent with company purpose, values
and strategy.
The career shares align the CEO’s interests with those of shareholders by ensuring a focus on delivering against strategy
including a strong focus on shareholder returns and ESG performance.
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Additional Information
Directors’ remuneration report continued
Remuneration at a glance
The main features of the Remuneration Policy that were approved by shareholders at the 2024 AGM and as applied in 2025 are summarised in the table below. This policy applies to the CEO
who is the only person who serves as an Executive Director. The full text of the policy can be found in our 2023 Annual Report on the company’s website at glencore.com/publications.
Element of remuneration
Purpose and link to strategy
Policy and operation
Application of the
Remuneration Policy in 2025
Paid over the financial year
Base salary
To recruit, retain, and motivate
individuals of a high calibre and
reflect their skills, experience,
responsibilities, development and
contribution
Reviewed annually with adjustments effective 1 January
Adjustments, if any, take into account those applied across the wider workforce; the
committee retains discretion to award higher increases where appropriate to take
into account market conditions, performance and/or development of the individual,
a change in the responsibility and/or complexity of the role, new challenges or a
new strategic direction for the company
CEO: $2.0m (0% increase)
Pension
Provides retirement benefits
(defined contribution scheme), in
line with Swiss regulations and
contribution levels in all-employee
Swiss scheme
Any benefit will derive from contributions made. These are made under the Group’s
Swiss all-employee scheme
An annual cap of $150,000 on the cost of provision of retirement benefits applies
Unchanged from 2024
Benefits
Provides appropriate supporting
non-monetary benefits including
salary loss (long-term sickness) and
accident/travel insurance, under
the Group’s Swiss all-employee
schemes
A monetary limit of $100,000 per annum for these benefits applies
Unchanged from 2024
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Directors’ remuneration report continued
Element of remuneration
Purpose and link to strategy
Policy and operation
Application of the
Remuneration Policy in 2025
Vesting at the end of three years subject to performance modified awards and comprehensive underpins, with a post-vest holding period
Career Shares Plan
Incentivises the creation of
shareholder value throughout and
beyond the length of career
Maximum incentive opportunity: 525% of salary; target opportunity 350% of salary
Annual awards determined with reference to various performance dimensions, in
which financial, operational and ESG performance, as well as strategy delivery, will
be assessed at the time of the award. The majority of the assessment will be based
on financially relevant performance. Material adjustments may be made to the
award (including to zero) in certain circumstances to ensure there are no rewards
for failure such as a very significant safety, environment or reputationally damaging
situation
Vesting after three years subject to holistic review of overall business performance,
including shareholder distributions, absolute and relative shareholder performance
and progress against ESG initiatives
Separate to the minimum shareholding requirements described below, shares will
only be released (other than to meet tax obligations) on the later of five years from
grant or two years post-employment
Award of $10 million (500% of
salary, or 95% of maximum)
Governance best practices
Minimum shareholding
requirement
Provides long-term alignment with
shareholders
In-post (% of pre-tax salary): 525%, usually to be achieved within five years of Board
appointment
Post-exit (% salary): the lower of the shareholding at departure or 525% of salary for
a period of two years
Unchanged from 2024
Malus and clawback
Awards subject to the applicable plan rules governing the Career Shares Plan are subject to
malus and clawback provisions until vesting that allow the committee to reduce or clawback
awards, which may be applied in certain circumstances, such as material failures in the
financial, operational, compliance or ESG performance of the company and a failure to
identify and/or report such failure(s); and any other circumstances that are deemed to have a
significant impact on the reputation or financial prospects of the company.
The committee may, in its discretion, decide to delay vesting and therefore extend the
period during which malus and clawback may be applied if facts come to light within the
period warranting an investigation.
Discretion and vesting subject to the underpin
In addition to the specific discretions set out in the policy table above, the Committee may
exercise various discretions related to the operation of the policy, subject to any applicable
plan rules. In particular, these include, but are not limited to, the following:
• the participants of the Career Shares Plan and the legacy Restricted Shares Plan;
• the timing of award grants, vesting and/or payment;
• the size of an award and/or payment (subject to the limits set out in the policy table);
• the determination of vesting;
• dealing with a change of control or corporate restructuring;
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Directors’ remuneration report continued
• the determination of a good/bad leaver for incentive plan purposes and the treatment
of pro-rating and holding periods;
• adjustments required in certain circumstances (e.g., rights issues, corporate reorganisation
and/or change to capital structure); and
• the determination of the appropriate performance conditions, underpins, weightings
and targets for the Career Shares Plan.
The holistic, qualitative judgement, which is applied as an underpin test before career shares
are awarded, is an important aspect to ensure that vesting is not simply driven by a formula
or the passage of time that may result in unexpected or unintended remuneration
outcomes. The exercise of any discretion will be fully disclosed in the applicable statement
of implementation of the policy.
Executive Director’s contract
It is the company’s policy to provide for 12 months’ notice for termination of employment
for Executive Directors, to be given by either party.
Under normal circumstances, the company may terminate the employment of an Executive
Director by making a payment in lieu of notice equivalent to basic salary only for the notice
period at the rate current at the date of termination. In appropriate cases, an Executive
Director can be dismissed without compensation.
The table below outlines the key features of the service contract for Mr Nagle, the only
person who served as an Executive Director during 2024.
A copy of the service contract of Mr Nagle is available for inspection at the company’s
registered office as noted on page 269 or as otherwise indicated in the Notice of 2025 AGM.
Provision
Service contract terms
Notice period
12 months’ notice by either party
Contract date
1 July 2021
Expiry date
Rolling service contract
Termination
payment
No special arrangements or entitlements on termination. Any
compensation would be limited to base salary only for any unexpired
notice period (plus any accrued leave)
Change in control
On a change of control of the company, no provision for any
enhanced payments, nor for any liquidated damages
Termination policy summary
In practice, the facts surrounding any termination do not always fit neatly into defined
categories for good or bad leavers. Therefore, it is appropriate for the committee to consider
the suitable treatment on a termination having regard to all of the relevant facts and
circumstances available at that time. This policy applies both to any negotiations linked
to notice periods on a termination and any treatment which the committee may choose
to apply under the discretions available to it under the terms of the long-term incentive
arrangements. The potential treatments on termination under these plans are summarised
below.
Incentives
Good leaver
Bad leaver
Definition
• If a leaver is deemed to be a ‘good
leaver’; i.e., leaving through serious
ill health or death, as a result of
change in control, or otherwise at
the discretion of the committee
• If a leaver is deemed to be a ‘bad
leaver’; typically, voluntary
resignation or leaving for
disciplinary reasons
Career
Shares
Plan
• Will receive a pro-rated award
vesting at the normal vesting date
(if applicable, subject to the
application of the underpin at the
normal measurement date)
• The committee retains the
discretion to disapply pro-rating
and to accelerate the vesting of the
awards; however it does not expect
to use this other than in exceptional
circumstances
• All unvested awards would normally
lapse
In the event of a change of control or similar event, awards may become payable or vest
early with treatment broadly in line with that for good leavers. Rules permit a roll-over
of awards in appropriate circumstances.
There is no legislative requirement to include a cap or limit in relation to payments for loss
of office. The committee will take all relevant factors into account in deciding whether any
discretion should be exercised in an individual’s favour in these circumstances, and the
committee will aim to ensure that any payments made are appropriate having regard to
prevailing best practice guidelines. The committee may also, after taking appropriate legal
advice, sanction the payment of additional sums in the settlement of potential legal claims
and/or the provision of outplacement and similar services.
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Additional Information
Directors’ remuneration report continued
Recruitment Remuneration Policy
The company’s Executive Director Recruitment Remuneration Policy aims to give the
committee sufficient flexibility to secure the appointment and promotion of high-calibre
executives and secure the skill sets to deliver our strategic goals.
In determining an appropriate remuneration package, the committee will take into
consideration all relevant factors (including quantum, nature of remuneration, market
practice, corporate governance at that point in time and the jurisdiction from and
to which the candidate is recruited) to ensure that arrangements are at the same
time fair to the individual and in the best interests of the company and its stakeholders.
For any future Executive Director appointments, the committee will review the
remuneration package at that time by considering, among other factors, the current
Remuneration Policy. However (consistent with the UK regulations) for a newly appointed
Executive Director the committee is not constrained by the caps on fixed pay within the
current Remuneration Policy. Nonetheless, the committee will not pay more than it
considers to be necessary to support recruitment having regards to appropriate market
rates and evolving best practice.
Managing potential conflicts of interest
In order to avoid any conflicts of interest, remuneration is managed through well-defined
processes ensuring that no individual is involved in the decision-making process related
to their own remuneration. In particular, the remuneration of an Executive Director is set
and approved by the committee; the Executive Director is not involved in the determination
of his remuneration arrangements and does not attend meetings where this is discussed.
The committee also receives support from external advisers and evaluates the support
provided by those advisers annually to ensure that advice is independent, appropriate
and cost-effective. Committee members bring their own judgement to consideration
of all matters.
Executive Director external appointments
None currently. The appropriateness of future appointments, if any, will be considered
as part of a wider review of Directors’ interests/potential conflicts.
Potential rewards under various scenarios
The chart below is based on the following scenarios, in accordance with UK reporting
regulations:
• Minimum: Mr Nagle’s salary of $2 million, pension contributions of $134,000 and 2024
benefits of $15,000.
• Target pay: as minimum, plus career shares payable at target, based on target opportunity
of 350% of salary.
• Maximum pay: as minimum, except career shares at maximum opportunity of 525%
of salary.
• Maximum plus: as maximum, except the share price on the career shares is assumed
to increase by 50%.
Each element ignores the impact of distribution roll-up.
0
5,000
10,000
15,000
20,000
Maximum
plus
Maximum
Target
Minimum
100%
2,149
9,149
12,649
17,899
24%
17%
12%
76%
83%
59%
29%
Fixed remuneration
Career shares
Share price
Scenarios
US$’000
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Directors’ remuneration report continued
Implementation report
Executive Director remuneration (audited)
The emoluments of the CEO, the only person who served as an Executive Director during
2024, were as follows.
Gary Nagle
Single figure table (US$’000)
2024
2023
Salary
2,000
1,854
Benefits1
15
15
Pension
134
121
Other
-
-
Total fixed remuneration
2,149
1,990
Annual bonus2
–
3,843
Long-term incentives3
3,116
-
Total variable remuneration
3,116
3,843
Total
5,265
5,833
1. Lunch card and unemployment insurance covered by employer, in line with all other Swiss-based
employees.
2. The CEO did not receive an annual bonus award in respect of 2024 as the plan was removed following
shareholder approval of the new Remuneration Policy at the 2024 AGM. Under the new policy, 100% of
the incentive awards for the CEO will be delivered as career shares.
3. Represents the value on the vesting date of the Restricted Share Plan award that vested in 2024.
The aggregate fees for all Non-Executive Directors for 2024 were $2,829,000 (2023:
$2,904,000). The total emoluments of all Directors for 2024 (including pension contributions)
were $8,094,000 (2023: $8,737,000).
Incentive outcomes for 2024
Annual bonus
The Annual Bonus Plan was removed following shareholder approval of the Remuneration
Policy at the 2024 AGM. Accordingly, the CEO did not receive an annual bonus award in
respect of 2024.
Restricted Share Plan award vesting in 2024
Glencore’s Restricted Share Plan (RSP) was approved by shareholders at the 2021 AGM. The
first 2021 RSP award was granted on 1 July 2021 and vested on 30 June 2024.
As disclosed at grant, RSP awards vest after three years following the date of award subject to
the satisfaction of performance underpins designed to mitigate the risk of payments for failure
by enabling a reduction when: (1) shareholders do not receive the minimum distribution
applied under the Company’s stated distribution policy; (2) absolute and relative shareholder
performance over the vesting period is deemed unsatisfactory; or (3) progress against ESG
initiatives, including the implementation of the Group’s Ethics and Compliance Programme
and performance against the Climate Action Transition Plan, is considered unsatisfactory.
The committee has assessed the underpin conditions that apply to the 2021 RSP award and
determined that it is appropriate for the award to vest in full, noting that the design principle
of the restricted share award is for awards to vest unless otherwise determined to be
inappropriate in the circumstances. This vested RSP award remains subject to holding for
five years after grant or two years-post employment, whichever occurs latest. Therefore, the
value of this award to the CEO will be based on the share price at the end of this holding
period, demonstrating long-term pay and performance alignment.
Underpin
Performance considerations
Distributions to
shareholders and
share buybacks
• Distributions declared and paid to shareholders each year during
the vesting period in line with Glencore’s capital allocation
framework, amounting to a total of $9.9 billion of base
distributions paid from 1 July 2021 to 30 June 2024
• Special ’top-up’ shareholder returns each year during the vesting
period beyond base cash distributions, applied in the form of
incremental base cash distributions and/or share buybacks
amounting cumulatively to $3.4 billion and $6.9 billion, respectively,
from 1 July 2021 to 30 June 2024
Overall company
performance
• Strong three-year total shareholder return of 76% from 1 July 2021
to 30 June 2024, exceeding the total shareholder return of 23% for
the FTSE 350 Industrial Metals and Mining Index and 28% for the
FTSE 100 over the same period
• Glencore’s balance sheet remains strong alongside significant
returns to shareholders and continued investment in the business
• Managed capital structure and investment grade credit profile in
line with shareholder returns framework, including funding the
acquisition of EVR in 2024
ESG performance
• Climate change: Introduced new 2024-2026 Climate Action
Transition Plan, which received 90.07% support of voting shareholders,
reflecting proactive engagement and shareholder confidence
• Safety: Continued focus on health and safety, with no major or
catastrophic environmental incident, 6% decreases in TRIFR and
LTIFR vs. three year rolling averages reflecting efficacy of our SafeWork
programme, as well as a decrease in work-related fatalities compared
to pre-2021 performance which was positively noted. While progress
continues to be made, with strong and visible leadership pursuing a
proactive safety culture and operating discipline, Glencore recorded
the loss of fourΔ colleagues in work-related incidents at its industrial
assets in 2024, an important reminder that there is still work to do
across the business
• Governance: Made significant investments into our Ethics and
Compliance Programme reflecting a commitment to ensure a strong
culture of ethics and compliance across the Group. Rolled out our
refreshed Code of Conduct and enhanced behavioural reviews for
designated senior management to bolster compliance culture
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Directors’ remuneration report continued
There are three outstanding awards from the 2022, 2023, and 2024 RSP awards. The
committee has determined that the performance underpins for these awards remain
appropriate in the context of market developments and the company’s strategy. The
committee continues to monitor the annual progress achieved for each of the outstanding
awards. We will disclose the committee’s assessment for the vesting of the 2022 RSP award
in our 2025 Annual Report.
2024 RSP awards (audited)
During the year ended 31 December 2024, Mr Nagle received a final award of restricted
shares which may vest after a three-year period, subject to the achievement of the underpins
described above. The award is set out in the table below.
Grant
(% of annual salary)
Face value
of award
(US$’000)
No. shares1
Vesting date2
Gary Nagle
225%
$4,172
725,277
18 March 2027
1. Based on a share price of $5.75 which was the volume weighted average price during December 2023.
2. Subject to holding for five years after grant or two years post-employment, whichever occurs latest.
Statement of Directors’ interests in shares (audited)
As at 31 December 2024 the CEO’s interests in shares via incentives were as follows. Details of
his beneficial shareholdings are shown in the Share ownership guidelines section below.
Outstanding scheme interests at
31 December 2024
Vested scheme interests
Total of all
scheme
interests as at
31 Dec 2024
Unvested
scheme
interests
subject to
performance1
Unvested
scheme
interests not
subject to
performance2
Total
outstanding
scheme
interests
As at
31 Dec 2023
As at
31 Dec 2024
Gary Nagle
2,167,455
867,167
3,034,622
-
461,108
3,495,730
1. Includes awards under the legacy RSP.
2. Excludes awards under the Deferred Bonus Plan issued in 2024.
Between 31 December 2024 and the publication date of this 2024 Annual Report, the CEO
and Non-Executive Directors’ interests remained unchanged, except for the CEO’s career
shares award as disclosed on page 130.
Plan
Date of
award1
Interests
at
1 January
2024
Interests
awarded
during
2024
Interests
vested
during
2024
Interests
lapsed
during
2024
Interests
outstanding at
31 December
2024
Date at
which
award
vests
Gary Nagle
21 RSP award
1/7/21
461,108
–
461,108
–
– 30/06/24
22 RSP award
14/03/22
833,556
–
–
–
833,556
13/03/25
23 RSP award
23/03/23
608,622
–
–
–
608,622
22/03/26
24 RSP award
19/03/24
725,277
–
–
725,277
18/03/27
21 bonus
deferred shares
14/03/22
216,667
–
–
–
216,667
13/03/25
22 bonus
deferred shares
23/03/23
316,399
–
–
–
316,399
22/03/26
23 bonus
deferred shares
19/03/24
334,101
–
–
334,101
18/03/27
Total
2,436,352 1,059,378
461,108
–
3,034,622
2024 Glencore Annual Report
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Additional Information
Directors’ remuneration report continued
Share ownership guidelines
The committee promotes the critical importance of aligning the interests of the CEO with
those of shareholders. The aim is to encourage the build-up of a meaningful shareholding in
the company over time by retaining shares received through the Restricted Share Plan and
the Career Shares Plan, pursuant to which vested shares cannot be sold until two years
post-departure.
In line with the current Remuneration Policy, the in-post shareholding requirement for the
CEO is 525% of salary pursuant to which the CEO is required to retain the lower of: (1) actual
shareholding on stepping down from the Board and (2) such shares as then represent the
policy level of 525% of salary for two years after stepping down (although the Board may
relax this requirement in appropriate cases) with such policy enforceable through a
requirement to lodge such shares at the company’s request.
The CEO maintains a sizeable interest in Glencore shares that exceed the minimum
shareholding requirement and has meaningful personal financial exposure that is aligned to
the shareholder experience.
Director
Beneficially
owned shares
as at 31 Dec 2024
Shareholding
requirement
(as % of salary)
Current
shareholding
(as % of salary)1
Shareholding
requirement met?
Gary Nagle
2,402,696
525%
531%
Yes
1. A share price of US$4.42, applying an exchange rate of £1=US$1.25 as at 31 December 2024 has been
used for the purpose of calculating the current shareholding as a percentage of salary. Unvested
awards do not count towards the satisfaction of the shareholding guidelines.
CEO pay ratio
The table below shows the ratio of CEO single figure remuneration for 2024 to the
comparable, indicative, full-time equivalent total remuneration for employees globally,
whose pay is ranked at the 25th percentile, median and 75th percentile, as at 31 December
2024. We present this comparison using method A, which provides the most statistically
accurate method of calculation for the purpose of this disclosure. Our methodology complies
with the UK reporting regulations except that we have substituted all of our employees for
this comparison rather than just the UK employees as specified in the regulations on the
basis that this is a more meaningful comparison since we are a global group, which is not
headquartered in the UK and our UK employees represent fewer than 1% of all employees
worldwide.
Year
Method (A)
25th percentile
pay ratio
Median pay ratio
75th percentile
pay ratio
2024
A
$17,906
294:1
$37,902
139:1
$84,453
62:1
2023
A
$15,613
374:1
$31,720
184:1
$79,101
74:1
2022
A
$12,893
471:1
$25,059
242:1
$68,250
89:1
20211, 2
A
$10,404
381:1
$23,530
169:1
$67,734
59:1
20201
A
$8,525
177:1
$21,212
71:1
$65,025
23:1
20191
A
$8,558
176:1
$21,238
71:1
$64,077
23:1
1. Mr Glasenberg, CEO until 30 June 2021, waived all entitlements to variable compensation.
2. Calculated in respect of Mr Glasenberg’ s compensation until 30 June 2021 and Mr Nagle from 1 July –
31 December 2021.
Additional UK remuneration disclosures
Under UK reporting regulations, UK companies are also required to disclose various data
comparing the percentage change in Directors’ year-on-year remuneration compared with
employees of the listed company itself, i.e., not on a Group-wide basis. As Glencore plc has no
direct employees, there is no relevant data to disclose.
Relative importance of remuneration spend
The table below illustrates the change in total remuneration, distributions paid and net profit
from 2023 to 2024.
2024
US$m
2023
US$m
Distributions and buybacks attributable to equity holders
1,810
10,122
Net (loss)/income attributable to equity holders
(1,634)
4,280
Total remuneration
6,429
5,969
The figures presented have been calculated on the following bases:
• Distributions and buybacks – distributions paid and shares bought back during the year.
• Net income (loss)/income attributable to equity holders – our reported net (loss)/income in
respect of the financial year.
• Total remuneration – represents total personnel costs as disclosed in note 24 to the
financial statements which includes salaries, wages, social security, other personnel costs
and share-based payments receivable by all employees of the Group.
2024 Glencore Annual Report
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Additional Information
Directors’ remuneration report continued
Statement as to certain categories of payments (audited)
No additional payments were made in 2024: (1) for loss of office to Executive Directors, (2) to
former Executive Directors in respect of any period following their date of retirement, and (3)
the CEO, who was the only Executive Director in 2024, held no external non-executive
directorships and so no fees were payable.
Alignment between pay and performance
Total shareholder return performance
This graph shows the value to 31 December 2024, on a total shareholder return (TSR) basis,
of £100 invested in Glencore plc on 31 December 2014 compared with the value of £100
invested in the FTSE 100 Index.
The committee believes that the FTSE 100 Index is an appropriate comparator as it is a broad
equity index reflecting the performance of the largest UK-listed companies.
The UK reporting regulations also require that a TSR performance graph is supported by
a table summarising aspects of CEO remuneration, as shown below for the same period
as the TSR performance graph:
0
50
100
150
200
250
300
FTSE 100
182.9
176.1
Glencore
2016
2017
2018
2019
2020
2021
2022
2023
2025
2024
2015
History of CEO remuneration
Single figure of
total remuneration1
(US$’000)
Annual variable
element award
rates against
maximum
opportunity
Long-term incentive
vesting rates against
maximum
opportunity
2024
Gary Nagle
5,265
100%
n/a
2023
Gary Nagle
5,833
82.9%
n/a
2022
Gary Nagle
6,071
93.6%
n/a
2021
Gary Nagle2
3,208
93.6%
n/a
2021
Ivan Glasenberg3
756
–
–
2020
Ivan Glasenberg
1,508
–
–
2019
Ivan Glasenberg
1,503
–
–
2018
Ivan Glasenberg
1,503
–
–
2017
Ivan Glasenberg
1,513
–
–
2016
Ivan Glasenberg
1,509
–
–
2015
Ivan Glasenberg
1,510
–
–
1. The figures in this table are reported in US dollars and have been translated to US dollars where
applicable at the exchange rates used for the preparation of the financial statements in each relevant
financial year. The value of benefits and pension provision in the single figure vary as a result of the
application of exchange rates.
2. Mr Nagle was appointed CEO on 1 July 2021 and his 2021 remuneration was prorated accordingly in 2021.
3. Mr Glasenberg retired as CEO on 30 June 2021 and his salary was prorated accordingly in 2021. He
waived all entitlements to variable compensation.
Implementation of Remuneration Policy in 2025
This section provides details of how the policy will be implemented for 2025.
Fixed remuneration
Base salary
Effective date
Increase %
Reason
Gary
Nagle
$2m
1 January 2025
0%
No increases are envisaged for the term
of the Policy
Glencore’s annual pension provision for the CEO is fully aligned with the Swiss requirements,
local legal limits and that of other employees based in Switzerland, where the CEO is located.
For the CEO, the maximum employer contribution is up to 12.3% of salary (capped at
c.$150,000 per annum) and the maximum co-contribution limit is up to 6.2% of salary.
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Additional Information
Directors’ remuneration report continued
3
unique and shareholder-
friendly design features
Career Shares Plan
Performance
period
Vesting period
Holding period
Lifecycle of career shares awards
2022 – 2024
Start of 2025
2026
2027
2028
Hold +2 years
post-employment
Career shares award
(0 – 525%)1
1. In the event of catastrophic events,
awards can be reduced to zero.
1
Career shares awards are
performance modified at grant
The Board will holistically assess
performance encompassing a broad mix
of financial, operational and ESG dimensions
taking into account multi-year trends
and performance.
• Responsible and ethical business practices
• Effective capital management
• Strong operational and commercial
performance
2
Vesting is subject to
comprehensive performance
underpins
Comprehensive performance underpins
(in line with Glencore’s strategic priorities)
apply over the vesting period, designed
to mitigate the risk of payments for failure
by enabling a reduction in vesting when:
1. Shareholders do not receive the minimum
distribution applied under the Company’s
stated distribution policy
2. Progress against ESG initiatives
is deemed unsatisfactory
3. Overall business performance
is deemed unsatisfactory
3
CEO cannot realise any value
from career shares until two
years post-employment
The additional requirement to hold career
shares for two years post-employment
ensures that 100% of the awards are truly
aligned with the long-term shareholder
experience. The value of the awards will rise
and fall in line with the prevailing share price
when the restrictions lapse.
It also encourages ownership behaviours
and discipline critical to our success:
• Long-term risk management
• Sustainable growth
• Succession planning
Award
granted
Award
vested
Performance-based remuneration
Under the Remuneration Policy, the CEO does not receive an annual bonus. Instead, 100% of incentive awards for the CEO are delivered annually from 2024 as career shares that will only be
released (other than to meet tax obligations) on the later of five years from grant or two years post-employment. The maximum incentive opportunity is set at 525% of salary and is not
guaranteed. The target award level is set at 350% of salary. Awards are based on performance and may be adjusted (including to zero) in the event of a significant and reputationally
damaging situation to ensure there are no rewards for failure. Vesting of the awards remains subject to comprehensive shareholder returns and ESG underpins to reinforce our stewardship
and commitment to sustainable shareholder value creation.
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Additional Information
Directors’ remuneration report continued
Summary of career shares award considerations for the CEO
The 2025 inaugural career shares award serves as the sole form of incentive compensation
for the CEO under the Remuneration Policy. In determining the award, the committee
conducted a comprehensive and holistic review of the CEO’s leadership and key
accomplishments, evaluating the degree of alignment between actions taken in the
performance year and Glencore’s long-term strategic priorities: (1) responsible and ethical
business practices; (2) effective capital management; and (3) strong operational and
commercial performance. A detailed description of these strategic priorities can be found on
page 15.
As career shares are fundamentally long-term in nature, the review went beyond annual
financial performance and also assessed Glencore’s broader social and environmental
performance. The committee considered key financial, operational, and ESG achievements
that demonstrated the quality of leadership, strategy execution, and overall performance.
This assessment incorporated both quantitative and qualitative performance dimensions,
evaluated in the context of the Board-approved strategy, the business plan, and the
company’s overall contribution to long-term value creation. A one-year retrospective
analysis, including macroeconomic considerations, was conducted alongside a review of
multi-year trending performance, where applicable, ensuring a balanced perspective and
mitigating the risk of unintended compensation outcomes.
When determining the appropriate opportunity award level, the committee focused on the
degree of progress achieved. A maximum outcome reflects transformational progress,
including meaningful advancements that strengthen the company’s long-term position. By
contrast, a target-level award is granted when there has been some progress, yet only
incremental progress. If progress has been limited or decisions have resulted in significant
reputational damage, the committee will adjust the award accordingly — including down to
zero — to ensure there is no reward for failure. It is important to note that the committee
evaluates performance at two key points throughout the life of the career shares award:
1. At grant, based on long-term strategic progress to determine the maximum potential
opportunity of the award, which remains subject to performance underpins over the
three-year vesting period.
2. At vesting (after three years), which ensures that the long-term strategy has been
delivered before the final vesting is determined. Final vesting is subject to the committee’s
assessment of the underpins including shareholder returns, progress against ESG
initiatives, and overall business performance. The outcome of this assessment will be
disclosed in the annual report following award vesting.
To reinforce long-term alignment with shareholder interests, career shares cannot be sold
during the CEO’s tenure and are subject to a two-year post-exit shareholding requirement.
This requirement comes in addition to the minimum ownership level required by the
Remuneration Policy. In practice, the value of this award to the CEO will be based on the
share price at the end of this career-based holding period, demonstrating the long-term
performance alignment of this incentive structure which seeks to ensure that all career
shares awards reflect a sustained commitment to Glencore’s long-term success and
shareholder experience.
Career shares performance considerations for the CEO
In early 2025, the committee completed a comprehensive review of Glencore’s progress
towards executing the Board-approved strategy and how key decisions and actions have
positioned the company for future success and sustainable growth. A summary of the overall
performance assessment is provided below, and key highlights of Glencore’s strategic
progress and advances are further summarised in the table on pages 132-133.
Operational review
2024 was another significant year for Glencore. Operationally, our industrial assets delivered
a strong performance and met full year production numbers within their original guidance
ranges. There was a net overall addition to the 2024 mineral reserve base, notably in copper
at Antamina, bauxite at MRN, and steelmaking coal via the acquisition of EVR. Solid industrial
performance, along with a strong marketing contribution that delivered for the fifth year in a
row at or above the top end of our long-term guidance range, supported the generation of
adjusted EBITDA◊ of $14.4 billion and funds from operations (FFO)◊ of $10.5 billion in 2024,
down 16% but up 11%, respectively, compared to 2023. Glencore maintained a strong focus on
cost containment across our industrial portfolio. Despite inflationary pressures, costs were
kept relatively stable, aided by various efficiency measures that were implemented
throughout the year. Glencore also successfully transitioned several key leadership positions
including the Head of Industrial Assets, the Industrial Leads for Zinc and Copper, and
Co-Department Heads for Ferroalloys and Nickel Marketing.
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Long-term strategy execution and sustainable growth
Under the CEO’s leadership, Glencore has focused on simplifying its portfolio over the last
few years to build a strong foundation for the future. Today, Glencore is a major global
copper producer, with a portfolio that holds long-life, low-cost assets across different
geographies around the world. The strategic retention of the coal and carbon steels
materials business following extensive shareholder consultation in 2024 is expected to
enhance Glencore's cash-generating capacity to fund opportunities in our transition metals
portfolio, such as the copper growth project pipeline, as well as to accelerate and optimise
the return of excess cash flows to shareholders. The strategic acquisition of EVR in 2024, a
highly cash generative, long-life asset, contributed to a greater than 4% growth in copper
equivalent production volumes year-over-year. With the successful acquisition of the
remaining stake in MARA and full ownership of El Pachón and Coroccohuayco, Glencore
now controls three exciting large-scale copper growth projects. MARA and Coroccohuayco,
as brownfield projects near existing assets, presenting opportunities for efficient
development with relatively low capital intensity. Significant work has been completed
during 2024 laying a strong foundation for future development. Across these projects,
Glencore remains focused on protecting and enhancing the value of its capital investments,
leveraging its extensive infrastructure, groundwork and expertise to drive strategic and
sustainable outcomes. This flexibility allows the company to pursue the most value-accretive
opportunities for shareholders, alongside sensible M&A and shareholder returns, including
buybacks.
Aligned with our business strategy of supporting the energy needs of today, whilst investing
in our transition-enabling commodities portfolio, Glencore is well placed to participate in
bridging the gap in supply to meet the commodity demand that the energy transition is
expected to generate. Aided by a strong balance sheet with a net debt to adjusted EBITDA
ratio◊ of 0.78x in 2024, Glencore has significant financial headroom and strength to invest in
“shovel-worthy” projects that by preliminary estimates have the potential to contribute an
additional one million tons of annual copper production. To future proof the business, a Head
of Capital Projects was appointed in 2024 to build a new Capital Projects Group department,
bolstering Glencore’s project execution capabilities. With significant financial flexibility to
operationalise projects, Glencore continues to monitor market conditions as part of its efforts
to ensure that this is done at the right time when supply is most needed and when the
conditions are most favourable.
Long-term value generated for shareholders
Glencore has returned substantial value to shareholders since the appointment of Mr. Nagle
as CEO in July 2021. In terms of total shareholder returns, from 1 July 2021 to 31 December
2024, Glencore delivered 40% in total shareholder returns, outperforming returns of 30% for
the FTSE 100 Index and 8% for the FTSE 350 Industrial Metals and Mining Index. Over the
same period, Glencore has repurchased a total of c.1.2 billion of shares through strategic
share buybacks, representing c.10% of current shares eligible for distribution, along with base
and top up cash distributions of $14.2 billion in accordance with our capital allocation
framework. The decision to prioritise a substantial return of excess capital to shareholders via
buybacks demonstrates our confidence in the long-term value of the business and an
unremitting focus on effective capital deployment seeking to maximise long-term value for
shareholders.
Overall performance assessment
While commodity prices have softened, the Board has carefully considered this within its
assessment and believes that the CEO has made significant progress to position Glencore for
long-term growth. The Board remains confident that the production strategy and measured
approach to project ramp-ups are the right levers to deliver sustainable value generation.
The resilience of Glencore’s diversified business model, underpinned by the strong
performance of its marketing segment, solid operational delivery in industrial assets, a
positive track record of value-accretive M&A, and a pipeline of healthy reserves and resources
that meet the commodity demands of everyday life, provides assurance that the company is
well-positioned to manage short-term volatility while executing on its strategic priorities.
These decisions align fully with the Remuneration Policy’s intent to take a holistic and
multi-year perspective, ensuring that compensation outcomes fairly reflect underlying
strategic progress rather than short-term market fluctuations. Key highlights of Glencore’s
strategic progress and advances are further summarised in the table below.
Based on this performance assessment, the committee determined that a career shares
award equal to 500% of salary (or 95% of maximum) is a fair reflection of Glencore’s strategic
progress to date under the CEO’s leadership. The final vesting level will be reviewed following
the three-year vesting period subject to the committee’s review of holistic underpins,
including factors such as shareholder returns, progress against ESG initiatives, and overall
business performance. The outcome of this review will be disclosed in the 2027 Annual
Report upon vesting of the first career shares award.
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Directors’ remuneration report continued
Strategic progress and
advancement highlights
2025 strategic priorities and
performance dimensions
Highlights of actions taken to advance strategy
Strategic execution progress
Limited
Transformational
Responsible and ethical business
practices
• Safety performance
• Climate Action Transition Plan
• Community and human rights
• Management of monitor process
and progress with monitor
recommendations
• Safety remains a core Value and an area of persistent focus across the business. Practical measures including
robust training, automation, and verification of high-risk work activities as part of the ongoing implementation
of SafeWork, have driven sustained improvements resulting in 6% decreases in TRIFR and LTIFR vs. three-year
rolling averages, as well as a significant decrease in work-related fatalities compared to pre-2021 performance.
While progress continues to be made, with strong and visible leadership pursuing a proactive safety culture and
operating discipline, Glencore recorded the loss of fourΔ colleagues in work-related incidents at our industrial
assets in 2024, an important reminder that there is still work to do across the business
• Updated 2024-2026 Climate Action Transition Plan received more than 90% support from voting shareholders
at our 2024 AGM
• Implementation of various emissions reduction initiatives between 2019 and 2024, together with new projects
executed in 2024, delivered an estimated 1 million tonnes CO2e abatement, which supports progress against the
target of reducing our scope 1, 2, and 3 industrial emissions by 15% by the end of 2026, 25% by the end of 2030,
and 50% by the end of 2035, each against the restated 2019 baseline (excluding EVR)
• Identified potential future abatement initiatives, which range from certified renewable power purchases and
on-site renewable power generation, through to energy storage systems, operational efficiency initiatives and
electrification
• Active engagement on the formation of the Global Tailings Management Institute (GTMI) which oversees
the assurance of the Global Industry Standard on Tailings Management (GISTM); Tailings Storage Facility
(TSF) framework was updated with additional guidance to support long term recovery planning and climate
change considerations
• Swiss and Dutch investigations resolved; ongoing and constructive engagement with the independent
compliance monitor teams and significant progress made in implementing their first set of recommendations
Effective Capital Management
• Total shareholder returns
• M&A execution
• Portfolio management
• Capital expenditure
• Net debt
• Total returns of c.$23.3 billion to shareholders since July 2021 (including $2.2 billion announced for 2025), executed
through a combination of cash distributions and strategic share buybacks in accordance with the capital
allocation framework
• Strong track record of value accretive portfolio M&A through key transactions, including EVR, Bunge, Alunorte,
MARA, and Polymet, among various other minority stakes in joint venture partnerships
• Ongoing portfolio simplification enables monetisation and recycling of capital from assets that do not fit or align
with Glencore’s strategy. Overall portfolio now upgraded via more than 20 disposals and closures in recent years
of various sub-scale, non-core, and/or shorter mine life assets
• 2024 net debt to adjusted EBITDA ratio◊ of 0.78x (which only includes a half year contribution from EVR since
acquisition in July 2024) provides significant financial headroom and strength
• Led extensive consultation in 2024, which supported the Board’s decision to retain the coal and carbon steel
materials business, which is expected to enhance Glencore's cash-generating capacity to fund opportunities
in the transition metals portfolio, such as our copper growth project pipeline, as well as accelerate and optimise
the return of excess cash flows to shareholders
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Additional Information
Directors’ remuneration report continued
2025 strategic priorities and
performance dimensions
Highlights of actions taken to advance strategy
Strategic execution progress
Limited
Transformational
Strong Operational and
Commercial Performance
• Adjusted EBITDA/EBIT
• Funds from operations
• Production
• Cost management
• Leadership and succession
planning
• EVR successfully integrated into Glencore’s global coal business with performance optimisation initiatives
underway to maximise long-term value, including value chain and plant debottlenecking, group procurement
synergies, and mine plan and permit process optimisation
• Focus on optimising industrial assets enabled Glencore to deliver a strong performance in 2024 and achieve full
year production numbers within their original guidance ranges, which together with the addition of EVR’s
steelmaking coal volumes from July 2024, resulted in a greater than 4% growth in copper equivalent volumes
year-over-year
• Industrial portfolio offers scale and diversification by commodity and geography – we have built a major portfolio
of large, long-life copper assets and projects in key copper producing regions, and completed selective M&A
of high-quality assets in other key commodities, including alumina, bauxite, and steelmaking coal
• Anticipated c.4% compound annual growth rate from 2024 to 2028 in copper equivalents based on current
production plans for existing operations via step change in the steelmaking coal business, and a clear pathway
back to c.1 million tonnes of copper by 2028, with significant growth potential thereafter.
• Strong operational performance supported the generation of adjusted EBITDA◊ of $14.4 billion and funds
from operations◊ of $10.5 billion during 2024, down 6% but up 11%, respectively, compared to 2023
• Strong marketing contribution that delivered for the fifth year in a row at or above the top end of our
long-term guidance range
• Maintained strong cost containment across industrial businesses
• Strong business performance and healthy balance sheet providing significant financial flexibility to
operationalise our key copper growth projects comprising El Pachón, Mutanda sulphides, Coroccohuayaco,
MARA, NewRange and Collahuasi
• Successfully transitioned several key leadership positions, including the Head of Industrial Assets, Industrial
Leads for Zinc and Copper, and Co-Department Heads for Ferroalloys and Nickel Marketing; appointed a new
Head of Capital Projects in 2024 to build a new Capital Projects Group department, bolstering Glencore’s project
execution capabilities
Overall strategic execution
progress
2025 career shares award
500% of salary
(95% of maximum)
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Additional Information
Non-Executive Directors’ fees (audited)
The emoluments of the Non-Executive Directors for 2024 and 2023 were as follows:
Name
2024
Base fees
US$’000
2023
Base fees
US$’000
2024
Committee
fees
US$’000
2023
Committee
fees
US$’000
Total
2024
US$’000
Total
2023
US$’000
Non-Executive
Chairman
Kalidas Madhavpeddi
1,150
1,150
–
–
1,150
1,150
Non-Executive
Directors
Cynthia Carroll1
150
135
145
133
295
268
Peter Coates2
55
135
76
185
131
320
Martin Gilbert3
150
135
138
143
288
278
Patrice Merrin4
–
55
–
64
–
119
Gill Marcus5
215
200
100
108
315
308
David Wormsley6
150
135
85
86
235
221
Liz Hewitt7
150
135
113
106
263
241
John Wallington8
93
–
58
–
152
–
1. Ms Carroll stepped down as Chair of the Remuneration Committee and was appointed as Chair of the
ECC Committee on 26 May 2023.
2. Mr Coates stepped down as a Non-Executive Director on 29 May 2024.
3. Mr Gilbert was appointed Chair of the Remuneration Committee on 26 May 2023.
4. Ms Merrin stepped down as a Non-Executive Director on 26 May 2023.
5. Ms Marcus stepped down as Chair of the Audit Committee on 1 April 2023.
6. Mr Wormsley stepped down as a Non-Executive Director on 31 December 2024.
7. Ms Hewitt was appointed as Chair of the Audit Committee on 1 April 2023 and as a member of the
Investigations Committee on 26 May 2023.
8. Mr Wallington was appointed as an Independent Non-Executive Director on 1 June 2024.
Non-Executive Director fees for 2025
The annual fees are paid in accordance with a Non-Executive Director’s role and
responsibilities. Following a benchmarking exercise in 2024 and taking into consideration
that fees have remained largely unchanged since 2017, the fees for the Non-Executive
Directors and the Senior Independent Director were amended to remain competitive with
market practice and the Group’s peers. The amended fees, effective from 1 June 2024, were
approved by the Board. The fees payable for 2025 compared to 2024 (prior to these
amendments) are as follows:
Non-Executive Directors’ base fees
US$‘000
20251
US$‘000
20242
Chairman
1,150
1,150
Senior Independent Director
225
200
Non-Executive Director
160
135
Committee3 fees:
ECC
Chair
60
60
Member
40
40
Remuneration
Chair
55
55
Member
25
25
Audit
Chair
70
70
Member
40
40
Nomination
Member
20
20
HSEC4
Chair
60
125
Member
40
40
Investigations5
Member
40
40
1. From 1 June 2024.
2. Until 31 May 2024.
3. Fees do not apply to the Chairman when he is a chair or member of a committee.
4. Following the retirement of Peter Coates in 2024, the HSEC Committee was chaired by the Chairman,
who did not receive a separate fee for chairing this committee. From February 2025, the HSEC
Committee is chaired by John Wallington.
5. Committee dissolved on 31 July 2024.
Directors’ remuneration report continued
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Additional Information
Recruitment Remuneration Policy
Non-Executive Director appointment
A new Non-Executive Director would be subject to the terms outlined in the policy table
for Non-Executive Directors above.
Non-Executive Directors’ letters of appointment and re-election
All Non-Executive Directors have letters of appointment with the company for an initial
period of three years from their date of appointment, subject to re-election at each AGM.
The company may terminate each appointment by immediate notice and there are no
special arrangements or entitlements on termination except that the Chairman is entitled
to three months’ notice. Copies of the letter of appointment for Non-Executive Directors
are available for inspection at the company’s registered office address as noted on page 269.
Engagement with colleagues and shareholders
As a global resources company with employees around the world, many of whom
do not have access to the internet, it is not feasible to directly engage with all colleagues
on executive remuneration. The committee is advised of pay and conditions around
the Group and considers such information when considering executive pay.
Directors’ Remuneration Policy
Policy table for Non-Executive Directors
Non-Executive Directors are not eligible to participate in any performance-based pay or pension arrangements. Details of the policy on fees paid to Non-Executive Directors are set
out in the table below:
Element of
remuneration
Purpose and link to
strategy
Policy and operation
Maximum opportunity
Performance
measure(s)
Fees
Reflects time
commitment,
experience, global
nature and size of the
company
The objective in setting the fees paid to the Chairman and the other Non-Executive
Directors is to be competitive with other listed companies of equivalent size and complexity
Fee levels are periodically reviewed by the Board (for Non-Executives) and the committee
(for the Chairman). In both cases, the company does not adopt a quantitative approach to
pay positioning, and exercises judgement as to what it considers to be reasonable in all
the circumstances as regards quantum
Non-Executive Directors and the Senior Independent Director receive a base fee
Additional fees are paid for chairing or membership of a Board committee
The Board Chairman receives a single inclusive fee
Reasonable business-related expenses are reimbursed (including any tax thereon)
Non-Executive Directors are not eligible for any other remuneration or benefits of any nature
The fees are reviewed periodically
Fees are paid monthly
in cash
Aggregate fees for all
Non-Executive
Directors (including the
Chairman) are subject
to the cap set in the
Articles of Association.
This is currently set at
$5,000,000
Not applicable
In 2023 and 2024, we engaged extensively with shareholders as part of the development
of the Remuneration Policy. The committee will continue to monitor the general views
of shareholders and engage directly with them, as appropriate.
Approval
This report in its entirety has been approved by the committee and the Board of Directors
and signed on its behalf by:
Martin Gilbert
Chair of the Remuneration Committee
17 March 2025
Directors’ remuneration report continued
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Additional Information
Introduction
This Annual Report is presented by the
Directors on the affairs of Glencore plc (the
Company) and its subsidiaries (the Group or
Glencore), together with the financial
statements and auditor’s report, for the year
ended 31 December 2024. The Directors’
report includes details of the business, the
development of the Group and likely future
developments as set out in the Strategic
Report, which together form the
management report for the purposes of the
UK Financial Conduct Authority’s Disclosure
and Transparency Rule (DTR) 4.1.8R. The
notice concerning forward-looking
statements is set out at the end of the
Annual Report.
Corporate governance
A report on corporate governance and
compliance with the 2018 UK Corporate
Governance Code is set out in the Corporate
governance report and forms part of this
report by reference.
Health, safety, environment,
social performance and human
rights
An overview of Health, safety, environment,
social performance and human rights
(HSEC&HR) performance is provided in the
Sustainability section of the Strategic
Report. The work of the HSEC Committee is
contained in the Corporate governance
report.
Greenhouse gas emissions
Information on the Group’s industrial
emissions is included on page 25.
Business relationships
Information on the Group’s business
relationships with suppliers, customers and
others is included on pages 21 to 23.
Taxation policy
Our Tax Policy: glencore.com/group-tax-
policy and our most recent Payments to
Governments report: glencore.com/
payments-to-governments-report set out
the Company’s approach to tax and
transparency and disclose the payments
to governments made by the Group on a
country-by-country and project-by-
project basis.
Corporate structure
Glencore plc is a public company limited
by shares, incorporated in Jersey and
domiciled in Baar, Switzerland. Its shares are
listed on the London and Johannesburg
Stock Exchanges.
Financial results and
distributions
The Group’s financial results are set out in
the financial statements section of this
Annual Report.
A total capital distribution of $0.13 per share
was paid in two instalments in 2024. The
Board is recommending to shareholders an
aggregate capital distribution of $0.10 per
share in respect of the 2024 financial year as
further detailed on page 64.
Review of business, future
developments and post balance
sheet events
A review of the business and the future
developments of the Group is presented in
the Strategic Report.
A description of acquisitions, disposals and
material changes to Group companies
undertaken during the year is included in
the Financial review and in note 26 to the
financial statements.
Financial instruments
Descriptions of the use of financial
instruments and financial risk management
objectives and policies, including hedging
activities and exposure to price risk, credit
risk, liquidity risk and cash flow risk, are
included in notes 27 and 28 to the financial
statements.
Exploration and research
and development
The Group’s business units carry out
exploration and research and development
activities that are necessary to support and
expand their operations.
Employee policies
and involvement
Glencore has a range of Group policies and
standards that focus on fair treatment and
diversity and inclusion. Glencore endeavours to
protect its people from any form of unlawful
discrimination including on the basis of
gender, race, ethnicity, disability, religion, or
beliefs. We seek to provide equal opportunities
for career development and promotion as well
as appropriate training opportunities.
If disability occurs during employment, the
Group seeks to accommodate that disability
where reasonably possible, including with
appropriate training.
The Group’s Code of Conduct and other
policies are designed to support and protect
the interests of employees in a number of
ways such as requiring open, fair and
respectful communication, commitment to
respect human rights, fair and equitable
conditions of employment and, above all, a
safe working environment.
Employee communication is mainly provided
through the Group’s intranet, corporate
website and via emails. A range of information
is made available to employees, including all
policies and procedures applicable to them as
well as information on the Group’s financial
performance and the main drivers of its
business. Glencore uses a range of methods to
conduct employee consultation, including
employee engagement during site visits,
Group-wide surveys and focus groups. The
type of consultation undertaken is tailored
Directors’ report
John Burton
Company Secretary
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136
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Additional Information
Directors’ report continued
such that it is appropriate for the location of
the office or industrial asset. In 2024, we
conducted our biennial People Survey, see Our
people section on pages 56 to 57 for further
information.
Directors’ conflicts of interest
Under Jersey law and the Company’s Articles
of Association (Articles) (which mirror section
175 of the UK Companies Act 2006), a
Director must avoid a situation in which the
Director has, or can have, a direct or indirect
interest that conflicts, or possibly may
conflict, with the interests of the Company.
The duty is not infringed if the matter has
been authorised by the Directors. Under the
Articles, the Board has the power to
authorise potential or actual conflict
situations. The Board maintains effective
procedures to enable the Directors to notify
the Company of any actual or potential
conflict situations and for those situations to
be reviewed and, if appropriate, to be
authorised by the Board. Directors’ conflict
situations are reviewed annually. A register
of authorisations is maintained.
Directors’ liabilities
and indemnities
The Company has granted third-party
indemnities to each of its Directors against
any liability that attaches to them in
defending proceedings brought against
them, to the extent permitted by Jersey law.
In addition, Directors and officers of the
Company and its subsidiaries are covered by
directors’ and officers’ liability insurance.
Directors and officers
The names of the Company’s Directors and
officers who were in office at the end of
2024, together with their biographical details
and other information, are shown on pages
102 to 104.
understanding of the interests in 3% or more
of the total voting rights attaching to its
issued ordinary share capital:
Name
Number
of Glencore
shares
Percentage
of Total
Voting
Rights
Ivan Glasenberg
1,211,957,850
9.96
Qatar Holding LLC
1,046,550,951
8.60
BlackRock, Inc.
894,434,891
7.35
The Capital Group
Companies, Inc.
643,190,076
5.291
1. Reportable position of The Capital Group
Companies, Inc. as published by the London
Stock Exchange on August 8, 2023. The
approximate percentage of voting rights was
calculated in relation to the share capital at the
time of the relevant disclosure notification. It
therefore does not reflect changes to this
percentage resulting from changes in the
number of outstanding shares following the
date of the disclosure notification.
Share capital
The rights attaching to the Company’s
ordinary shares, being the only share class of
the Company, are set out in the Company’s
Articles, which can be found at glencore.
com/who-we-are/governance. Subject to
Jersey law, any share may be issued with or
have attached to it such preferred, deferred
or other special rights and restrictions as the
Company may by special resolution decide
or, if no such resolution is in effect, or so far
as the resolution does not make specific
provision, as the Board may decide.
No such resolution is currently in effect.
Subject to the recommendation of the
Board, holders of ordinary shares may
receive a distribution. On liquidation, holders
of ordinary shares may share in the assets of
the Company.
Holders of ordinary shares are also entitled
to receive the Company’s annual report and
accounts and, subject to certain thresholds
Directors’ interests
Details of interests in the ordinary shares of the
Company of those Directors who held office as
at 31 December 2024 are given below:
Name
Number of
Glencore
shares
Percentage
of Total
Voting
Rights
Executive Director
Gary Nagle1
2,402,696
0.02
Non-Executive Directors
Cynthia Carroll
-
-
John Wallington
500
0.00
Martin Gilbert
68,000
0.00
Liz Hewitt
35,049
0.00
Kalidas
Madhavpeddi
-
-
Gill Marcus
-
-
David Wormsley2
20,000
0.00
1. A breakdown of Mr Nagle’s unvested interest in
the Company’s ordinary shares is available in the
Directors’ remuneration report on page 126.
2. Mr Wormsley retired from the Board with effect
from 31 December 2024.
As of the date of this report, the directors’
interests remain unchanged.
Share capital and
shareholder rights
As at 28 February 2025, the issued ordinary
share capital of the Company was
$134,500,000 represented by 13,450,000,000
ordinary shares of $0.01 each, of which
1,286,788,041 shares are held in treasury and
25,448,994 shares are held by Group
employee benefit trusts.
Major interests in shares
Taking into account the information
available to Glencore as at 28 February 2025,
the table below shows the Company’s
being met, may requisition the Board to
convene a general meeting (GM) or submit
resolutions for proposal at annual general
meetings (AGMs). None of the ordinary
shares carry any special rights with regard to
control of the Company.
Holders of ordinary shares are entitled to
attend and speak at GMs of the Company
and to appoint one or more proxies or, if the
holder of shares is a corporation, a corporate
representative. On a show of hands, each
holder of ordinary shares who (being an
individual) is present in person or (being a
corporation) is present by a duly appointed
corporate representative, not being himself
a member, shall have one vote. On a poll,
every holder of ordinary shares present in
person or by proxy shall have one vote for
every share of which he or she is the holder.
Electronic and paper proxy appointments
and voting instructions must be received not
later than 48 hours before a GM. A holder of
ordinary shares can lose the entitlement to
vote at GMs where that holder has been
served with a disclosure notice and has
failed to provide the Company with
information concerning interests held in
those shares. Except as (1) set out above and
(2) permitted under applicable statutes,
there are no limitations on voting rights of
holders of a given percentage, number of
votes or deadlines for exercising voting rights.
The Directors may refuse to register a
transfer of a certificated share which is not
fully paid, provided that the refusal does not
prevent dealings in shares in the Company
from taking place on an open and proper
basis or where the Company has a lien over
that share.
The Directors may also refuse to register a
transfer of a certificated share unless the
instrument of transfer is (i) lodged duly
stamped (if necessary), at the registered
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Corporate Governance
Additional Information
Directors’ report continued
office of the Company or any other place as
the Board may decide accompanied by the
certificate for the share(s) to be transferred
and/or such other evidence as the Directors
may reasonably require as proof of title; or (ii)
in respect of only one class of shares.
Transfers of uncertificated shares must be
carried out using CREST and the Directors can
refuse to register a transfer of an uncertificated
share in accordance with the regulations
governing the operation of CREST.
The Directors may decide to suspend the
registration of transfers, for up to 30 days a
year, by closing the register of shareholders.
The Directors cannot suspend the registration
of transfers of any uncertificated shares
without obtaining consent from CREST.
There are no other restrictions on the
transfer of ordinary shares in the Company
except: (1) certain restrictions may from time
to time be imposed by laws and regulations
(for example insider trading laws); (2)
pursuant to the Company’s Inside
Information and Securities Dealing Policy
and Managing Confidential and Inside
Information Procedure whereby the
Directors and certain employees of the
Company require approval to deal in the
Company’s shares; and (3) where a
shareholder with at least a 0.25% interest in
the Company’s issued share capital has been
served with a disclosure notice and has
failed to provide the Company with
information concerning interests in those
shares. There are no agreements between
holders of ordinary shares that are known to
the Company, which may result in
restrictions on the transfer of securities or on
voting rights.
The rules for appointment and replacement
of the Directors are set out in the Articles.
Directors can be appointed by the Company
by ordinary resolution at a GM or by the
Board upon the recommendation of the
Nomination Committee. The Company can
remove a Director from office, including by
passing an ordinary resolution or by notice
being given by all the other Directors. The
Company may amend its Articles by special
resolution approved at a GM.
The powers of the Directors are set out in the
Articles and provide that the Board may
exercise all the powers of the Company
including to borrow money. The Company
may by ordinary resolution authorise the
Board to issue shares, and increase,
consolidate, sub-divide and cancel shares in
accordance with its Articles and Jersey law.
Purchase of own shares
In February 2025, the Company announced a
buyback programme of up to $1.0 billion,
with completion planned by 6 August 2025.
The programme will be effected in
accordance with the terms of the authority
granted by shareholders at the 2024 AGM, to
acquire no more than 1,828,886,722 shares,
and for the period from the date of the
Company’s 2025 AGM (currently scheduled
for 28 May 2025) is subject to a new authority
being obtained from shareholders at the
AGM. The programme’s purpose is to reduce
the capital of the Company. It is currently
intended that any shares purchased will be
held in treasury.
Going concern
The financial position of the Group, its cash
flows, liquidity position and borrowing
facilities are set out in the Strategic Report.
Furthermore, notes 27 and 28 to the financial
statements include the Group’s objectives
and policies for managing its capital, its
financial risk management objectives, details
of its financial instruments and hedging
activities and its exposure to credit and
liquidity risk. Significant financing activities
that took place during the year are detailed
in the Financial and operational review
section, which starts on page 59.
The results of the Group, principally
pertaining to its industrial activities, are
exposed to fluctuations in both commodity
prices and currency exchange rates whereas
the performance of marketing activities is
primarily physical volume and arbitrage
driven with commodity price risk
substantially hedged.
The Directors have a reasonable expectation,
having made appropriate enquiries, that the
Group has adequate resources to continue in
its operational existence for a period of at least
twelve months from the date of the approval of
the 2024 financial statements. For this reason
they continue to adopt the going concern
basis in preparing the financial statements. The
Directors have made this assessment after
consideration of the Group’s capital
commitments, budgeted cash flows and
related assumptions including appropriate
stress testing of the identified uncertainties
(being primarily commodity prices and
currency exchange rates) and access to
undrawn credit facilities, monitoring of debt
maturities, and after review of the Guidance on
Risk Management, Internal Control and
Related Financial and Business Reporting 2014
as published by the UK Financial Reporting
Council.
Longer-term viability
In accordance with provision 31 of the 2018
UK Corporate Governance Code, the
Directors have assessed the prospects of
Glencore’s viability over a longer period than
the 12 months required by the going
concern assessment above. A summary of
the assessment made is set out on page 91
in the Risk management section.
The Directors considered the Company’s
four-year business plan, which they believe is
an appropriate review period having regard
to the Company’s business model, strategy,
principal risks and uncertainties, sources of
funding and liquidity. Based on the results of
the related analysis, the Directors have a
reasonable expectation that the Company
will be able to continue in operation and
meet its liabilities as they fall due over the
four-year period of this assessment.
The Directors further considered the
prospects of the Company over the long
term under a range of possible scenarios, as
set out on page 26. The long-term view
incorporated, but was not limited to, the
2050 date associated with the Company’s
net zero ambition. The scenarios offer a
reasonable basis to conclude that the
Company’s business model is resilient to
potential uncertainties and that it will be
able to meet its financial liabilities in full.
Auditor
Each of the persons who is a Director at the
date of approval of this Annual Report
confirms that:
1. so far as the Director is aware, there is no
relevant audit information of which the
Company’s auditor is unaware; and
2. the Director has taken all the steps that he
or she ought to have taken as a Director in
order to make himself or herself aware of
any relevant audit information and to
establish that the Company’s auditor is
aware of that information.
Deloitte LLP have expressed their willingness
to continue in office as auditor and a
resolution to reappoint them will be
proposed at the forthcoming AGM.
2024 Glencore Annual Report
138
Strategic Report
Corporate Governance
Additional Information
Information required by UKLR 6.6.4
In compliance with UKLR 6.6.4 the Company discloses the following information:
UK Listing
Rule
Information required
Relevant disclosure
6.6.1(1)
Interest capitalised by the Group
See note 9 to the financial
statements
6.6.1(2)
Unaudited financial information as
required (UKLR 6.2.23)
None
6.6.1(4)
Director waivers of emoluments
None
6.6.1(5)
Director waivers of future emoluments
None
6.6.1(9)
Director interests in significant
contracts
Not applicable
6.6.1(11)
Waivers of dividends
None
6.6.1(12)
Waivers of future dividends
None
6.6.1(13)
Agreement with a controlling
shareholder (UKLR 6.2.3R)
Not applicable
There are no disclosures to be made in respect of the other numbered parts of UKLR 6.6.1.
Confirmation of Directors’ responsibilities
We confirm that to the best of our knowledge:
• the consolidated financial statements, prepared in accordance with United Kingdom
adopted international accounting standards and IFRS Accounting Standards as issued by
the International Accounting Standards Board (“IASB”) and the Companies (Jersey) Law
1991, give a true and fair view of the assets, liabilities, financial position and income of the
Group and the undertakings included in the consolidation taken as a whole;
• the management report, which is incorporated in the Strategic Report, includes a fair
review of the development and performance of the business and the position of the Group
and the undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties they face; and
• the Annual Report and consolidated financial statements, taken as a whole, are fair and
balanced and understandable and provide the information necessary for shareholders to
assess the performance, position, strategy and business model of the Company.
The consolidated financial statements of the Group for the year ended 31 December 2024
were approved on the date below by the Board of Directors.
Signed on behalf of the Board
Kalidas Madhavpeddi
Chairman
Gary Nagle
Chief Executive Officer
17 March 2025
However, the Directors are also required to:
• properly select and apply accounting
policies;
• present information, including accounting
policies, in a manner that provides
relevant, reliable, comparable and
understandable information;
• provide additional disclosures when
compliance with the specific requirements
in IFRS are insufficient to enable users to
understand the impact of particular
transactions, other events and conditions
on the entity’s financial position and
financial performance; and
• make an assessment of the Company’s
ability to continue as a going concern.
The Directors are responsible for keeping
proper accounting records that disclose with
reasonable accuracy at any time the
financial position of the Company and
enable them to ensure that the financial
statements comply with the Companies
(Jersey) Law 1991. They are also responsible
for safeguarding the assets of the Company
and hence for taking reasonable steps for
the prevention and detection of fraud and
other irregularities. The Directors are
responsible for the maintenance and
integrity of the corporate and financial
information included on the Company’s
website. The legislation governing the
preparation and dissemination of the
Company’s financial statements may differ
from legislation in other jurisdictions.
Signed on behalf of the Board
John Burton
Company Secretary
17 March 2025
Statement of Directors’
responsibilities
The Directors are responsible for preparing
the Annual Report and financial statements
in accordance with applicable law
and regulations.
Company law requires the Directors to
prepare financial statements for the
Company for each financial year.
The financial statements are prepared in
accordance with International Financial
Reporting Standards (IFRS) adopted by the
United Kingdom, and IFRS as issued by the
International Accounting Standards Board.
The financial statements are required by law
to be properly prepared in accordance with
the Companies (Jersey) Law 1991.
International Accounting Standard 1 requires
that financial statements present fairly for
each financial year the Company’s financial
position, financial performance and cash
flows. This requires the faithful representation
of the effects of transactions, other events
and conditions in accordance with the
definitions and recognition criteria for assets,
liabilities, income and expenses set out in
the International Accounting Standards
Board’s Framework for the preparation and
presentation of financial statements.
In virtually all circumstances, a fair
presentation will be achieved by compliance
with all applicable IFRS.
The Directors confirm that the Annual
Report and Accounts, taken as a whole,
is fair, balanced and understandable, and
provides the information necessary for
shareholders to assess the performance,
strategy and business model of
the Company.
Directors’ report continued
2024 Glencore Annual Report
139
Strategic Report
Corporate Governance
Additional Information
Our assurance conclusion
Based on our procedures described in this report, and evidence we have obtained, nothing
has come to our attention that causes us to believe that the Selected Information for the
year ended 31 December 2024, and as listed below and indicated with a Δ in the 2024 Annual
Report has not been prepared, in all material respects, in accordance with Glencore’s 2024
Basis of Reporting as set out here: https://www.glencore.com/publications.
Scope of our work
Glencore has engaged us to provide independent limited assurance in accordance with the
International Standard on Assurance Engagements 3000 (Revised) Assurance Engagements
Other than Audits or Reviews of Historical Financial Information (“ISAE 3000”) and the
International Standard on Assurance Engagements 3410 Assurance Engagements on
Greenhouse Gas Statements (“ISAE 3410”) issued by the International Auditing and
Assurance Standards Board (“IAASB”) and our agreed terms of engagement.
Independent Limited Assurance Report to the Directors of Glencore plc
Independent Limited Assurance Report by Deloitte LLP to the Directors of Glencore plc (“Glencore”) on selected Environmental, Social and Governance (“ESG”) metrics (the “Selected Information”) within the Annual
Report for the reporting year ended 31 December 2024 (“2024 Annual Report”).
The Selected Information in scope of our engagement for the year ended 31 December 2024,
as indicated with a Δ in the 2024 Annual Report, is as follows:
Environment
2024
assured
figure
Health and safety
2024
assured
figure
Direct energy consumption (PJ)
114.0
Employee working hours
148,184,612
Indirect energy consumption (PJ)
74.9
Contractor working hours
138,867,771
Scope 1 GHG emissions (million
tonnes of CO2e)
16.2
Number of Lost Time Injuries –
employees
109
Scope 2 GHG emissions (location-
based) (million tonnes of CO2e)
10.4
Number of Lost Time Injuries
– contractors
96
Scope 2 GHG emissions (market-
based) (million tonnes of CO2e)
10.9
Number of Medical Treatment
Injuries – employees
96
Scope 3 category 3 GHG
emissions – Emissions from fuel
and energy-related activities, not
included in Scope 1 and 2 GHG
emissions (million tonnes of CO2e)
4.86
Number of Medical Treatment
Injuries – contractors
147
Scope 3 category 11 GHG
emissions – Emissions from the
use of sold products
(million tonnes of CO2e)
313.30
Number of Restricted Work
Injuries – employees
39
Water input (million m3)
846
Number of Restricted Work
Injuries – contractors
52
Water output (million m3)
426
Number of work-related fatalities
– employees
1
Number of catastrophic (category
5) and major (category 4)
environmental incidents
0
Number of work-related fatalities
– contractors
3
Economic
Total Recordable Injury Frequency
Rate (TRIFR) – employees
1.65
Total Recordable Injury Frequency
Rate (TRIFR) – contractors
2.15
Payments to governments
(millions USD)
7,610
Lost Time Injury Frequency Rate
(LTIFR) – employees
0.74
Lost Time Injury Frequency Rate
(LTIFR) – contractors
0.69
140
2024 Glencore Annual Report
Corporate Governance
Strategic Report
Additional Information
The Selected Information, as listed in
the above table, needs to be read and
understood together with the 2024 Basis
of Reporting as set out here: https://www.
glencore.com/publications.
Inherent limitations of the
Selected Information
We obtained limited assurance over the
preparation of the Selected Information in
accordance with the Basis of Reporting.
Inherent limitations exist in all assurance
engagements.
Any internal control structure, no matter
how effective, cannot eliminate the
possibility that fraud, errors or irregularities
may occur and remain undetected and
because we use selective testing in our
engagement, we cannot guarantee that
errors or irregularities, if present, will
be detected.
The 2024 Basis of Reporting defined by
Glencore, the nature of the Selected
Information, and absence of consistent
external standards allow for different, but
acceptable, measurement methodologies to
be adopted which may result in variances
between entities. The adopted
measurement methodologies may also
impact comparability of the Selected
Information reported by different
organisations and from year to year within
an organisation as methodologies develop.
We draw your attention to the specific
limitations in the Selected Information
related to health and safety incidents, due to
the nature of such incidents, as set out in the
“Key procedures performed” section below.
Directors’ responsibilities
The Directors are responsible for preparing
the Selected Information for the 2024
Annual Report and for being satisfied that
the Selected Information as presented in the
2024 Annual Report, taken as a whole, is fair,
balanced and understandable.
The Directors are also responsible for:
• Selecting and establishing the 2024 Basis
of Reporting.
• Preparing, measuring, presenting and
reporting the Selected Information in
accordance with the 2024 Basis
of Reporting.
• Publishing the 2024 Basis of Reporting
publicly in advance of, or at the same
time as, the publication of the Selected
Information.
• Designing, implementing, and
maintaining internal processes and
controls over information relevant to the
preparation of the Selected Information
to ensure that they are free from material
misstatement, including whether due to
fraud or error.
• Providing sufficient access and making
available all necessary records,
correspondence, information and
explanations to allow the successful
completion of our limited assurance
engagement.
Our responsibilities
We are responsible for:
• Planning and performing procedures to
obtain sufficient appropriate evidence in
order to express an independent limited
assurance conclusion on the Selected
Information.
• Communicating matters that may be
relevant to the Selected Information to
management and the board, as appropriate,
including identified or suspected non-
compliance with laws and regulations, fraud
or suspected fraud, and bias in the
preparation of the Selected Information.
• Reporting our conclusion in the form of an
independent limited Assurance Report to
the Directors.
Our independence and
competence
In conducting our engagement, we
complied with the independence
requirements of the FRC’s Ethical Standard
and the ICAEW Code of Ethics. The ICAEW
Code is founded on fundamental principles
of integrity, objectivity, professional
competence and due care, confidentiality
and professional behaviour.
We applied the International Standard on
Quality Management 1 (“ISQM 1”) issued by
the International Auditing and Assurance
Standards Board. Accordingly, we
maintained a comprehensive system of
quality management including documented
policies and procedures regarding
compliance with ethical requirements,
professional standards and applicable legal
and regulatory requirements.
Key procedures performed
We are required to plan and perform our
work to address the areas where we have
identified that a material misstatement in
respect of the Selected Information is most
likely to arise. The procedures we performed
were based on our professional judgment. In
carrying out our limited assurance
engagement in respect of the Selected
Information, we:
• Performed an assessment of the criteria (the
benchmarks used to measure or evaluate
the underlying information) to determine
whether they were suitable for the
engagement circumstances and discussed
with Glencore the 2024 Basis of Reporting.
• Performed analytical review procedures to
understand the underlying subject matter
and identify areas where a material
misstatement of the Selected Information
is most likely to arise.
• Through inquiries of management,
obtained an understanding of Glencore, its
environment, processes and information
systems relevant to the preparation of the
Selected Information sufficient to identify
and further assess risks of material
misstatement in the Selected Information
and provide a basis for designing and
performing procedures to respond to
assessed risks and to obtain limited
assurance to support a conclusion.
• Through inquiries of management,
obtained an understanding of internal
controls relevant to the Selected
Information, the quantification process
and data used in preparing the Selected
Information, the methodology for
gathering qualitative information, and the
process for preparing and reporting the
Selected Information. We have not
evaluated the design of particular internal
control activities, obtained evidence about
their implementation or tested their
operating effectiveness.
• Inspected documents relating to the
Selected Information, including Health,
Safety, Environment and Communities
(HSEC) Committee meeting minutes to
understand the level of management
awareness and oversight of the Selected
Information.
2024 Glencore Annual Report
141
Corporate Governance
Strategic Report
Additional Information
Independent Limited Assurance Report to the Directors of Glencore plc continued
• Performed procedures over the Selected
Information, including recalculation of
relevant formulae used in manual
calculations and an assessment of
whether the data have been appropriately
consolidated. Performed procedures over
underlying data on a sample basis to
assess whether the data have been
collected and reported in accordance with
the 2024 Basis of Reporting, including
verifying to source documentation.
• Conducted site visits at a sample of
industrial sites and assets, selected on a
judgmental basis to determine
consistency in understanding and
application of the 2024 Basis of Reporting.
• Assessed a sample of management’s
assumptions and estimates in relation to
the Selected Information.
• Accumulated misstatements and control
deficiencies identified and assessed
whether they are material.
• Read the narrative accompanying the
Selected Information with regard to the
2024 Basis of Reporting, and for
consistency with our findings.
• For the restatements made to historical
data, although not part of the scope of our
limited assurance engagement for 2024
on the Selected Information, we enquired
about the rationale. For those over 5% of
the 2023 disclosed metric we also
inspected the supporting calculations
provided by management, and where
appropriate, reviewed against relevant
standards (e.g., GHG Protocol).
The procedures performed in a limited
assurance engagement vary in nature and
timing from, and are less in extent than for,
a reasonable assurance engagement.
Consequently, the level of assurance
obtained in a limited assurance engagement
is substantially lower than the assurance
that would have been obtained had a
reasonable assurance engagement
been performed.
We performed our engagement to obtain
limited assurance over the preparation of
the Selected Information in accordance with
the 2024 Basis of Reporting. We draw your
attention to the following specific limitation:
• Selected Information related to health and
safety incidents is derived from events that
are self-reported by individuals involved in
the health and safety incidents. While
Glencore requires the reporting of this
Selected Information in accordance with
its procedures, there is an inherent
limitation in that our testing may not
identify all misstatements relating to
completeness, for example instances
where an incident may have occurred but
not been reported.
Use of our report
This report is made solely to the Board of
Directors of Glencore in accordance with
ISAE 3000 (Revised), ISAE 3410 and our
agreed terms of engagement. Our work has
been undertaken so that we might state to
the Directors of Glencore those matters we
have agreed to state to them in this report
and for no other purpose.
Without assuming or accepting any
responsibility or liability in respect of this
report to any party other than Glencore and
the Directors of Glencore, we acknowledge
that the Directors of Glencore may choose to
make this report publicly available for others
wishing to have access to it, which does not
and will not affect or extend for any purpose
or on any basis our responsibilities. To the
fullest extent permitted by law, we do not
accept or assume responsibility to anyone
other than Glencore and the Directors
of Glencore as a body, for our work, for
this report, or for the conclusions we
have formed.
Deloitte LLP
London, United Kingdom
17 March 2025
142
2024 Glencore Annual Report
Corporate Governance
Strategic Report
Additional Information
Independent Auditor’s Report to the Members of Glencore Plc
Report on the audit of the financial statements
1. Opinion
In our opinion the financial statements of Glencore plc and its subsidiaries (together “the Group”):
• give a true and fair view of the state of the Group’s affairs as at 31 December 2024 and of the Group’s loss for the year then
ended;
• have been properly prepared in accordance with United Kingdom adopted international accounting standards and IFRS
Accounting Standards as issued by the International Accounting Standards Board (“IASB”), and
• have been properly prepared in accordance with Companies (Jersey) Law 1991.
We have audited the financial statements of the Group which comprise:
• the consolidated statement of income;
• the consolidated statement of comprehensive income;
• the consolidated statement of financial position;
• the consolidated statement of cash flows;
• the consolidated statement of changes of equity; and
• the related notes 1 to 36.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom adopted
international accounting standards and IFRS Accounting Standards as issued by the IASB.
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our
responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial
statements section of our report.
We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the Financial Reporting Council’s (the “FRC’s”) Ethical Standard as applied to listed public
interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit
services provided to the Group for the year are disclosed in note 30 to the financial statements. We confirm that we have
complied with the FRC’s Ethical Standards in providing non-audit services to the Group.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters
The key audit matters that we identified in the current year were:
• Accounting for the acquisition of Elk Valley Resources (EVR);
• Impairments and impairment reversals of non-current assets;
• Potential impact of climate change on the valuation of thermal coal and oil related
non-current assets;
• Revenue recognition - valuation of level 3 financial instruments; and
• Valuation of deferred tax assets and uncertain tax positions.
Our assessment of the Group’s key audit matters is largely consistent with those identified in
2023 except for the inclusion in the current year of accounting for the acquisition of EVR,
which was a material transaction for the Group, and removal of a key audit matter related to
government investigations and related claims following resolution of the investigations by
the Office of the Attorney General of Switzerland and the Dutch Prosecution Service as
disclosed in note 32.
Materiality
The materiality that we used for the Group financial statements in the current year was
$500 million (2023: $600 million), determined on the basis of a 3-year average adjusted profit
before tax benchmark and a net assets benchmark, consistent with the prior year.
Scoping
We focused our Group audit scope to include account balances in 24 components,
representing the Group’s most material marketing operations and industrial assets. These
24 components, which included EVR for the first time, accounted for 81% of the Group’s net
assets, 93% of the Group’s revenue and 84% of the Group’s adjusted EBITDA (refer to
segment information in note 2 to the financial statements).
Significant changes
in our approach
Apart from the change in the key audit matters as explained above, there were no
significant changes to our audit approach when compared to 2023.
Strategic Report
Corporate Governance
Additional Information
2024 Glencore Annual Report
143
Independent Auditor’s Report to the Members of Glencore Plc continued
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
In evaluating the directors’ assessment of the Group’s ability to continue to adopt the going concern basis of accounting:
• We considered the effect of key risks on the Group’s business model as part of our risk assessment and analysed how these
risks might affect the Group’s liquidity position, including access to capital, and thus its ability to continue to operate as a
going concern. The risk we considered to have the greatest impact is the supply, demand and prices of commodities over
the forecast period.
• We assessed the basis for the assumptions used in the forecast information including operational profitability, the Group’s
debt repayment obligations and capital expenditure requirements as well as undrawn facilities.
• We assessed the downside stress scenarios applied by the directors in their analysis, in particular whether the downside
scenarios represented an appropriately robust sensitivity. We evaluated the effect of these scenarios on key metrics such as
liquidity headroom, net debt and net debt to EBITDA over the going concern period and performed additional sensitivities to
further challenge the Group’s forecast position.
• We assessed the directors’ reverse stress scenario and the directors’ conclusion that such a scenario is remote.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group’s ability to continue as a going concern for a period of at
least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to
add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections
of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due
to fraud) that we identified. These matters included those which had the greatest effect on the overall audit strategy, the
allocation of resources in the audit, and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Strategic Report
Corporate Governance
Additional Information
2024 Glencore Annual Report
144
5.1 Accounting for the acquisition of EVR
Description of key audit matter
As described in note 26, Glencore completed the acquisition of 100% of Elk Valley Resources Ltd (“EVR”) in July 2024, which in
turn owns a 77% interest in Elk Valley Mining Limited Partnership, a steelmaking coal business in Canada for $7,152 million,
including working capital balances.
The acquisition was accounted for as a business combination in accordance with IFRS 3: Business Combinations and the Group
has fully consolidated the business from the acquisition date in line with IFRS 10: Consolidated Financial Statements.
The valuation and accounting considerations for such an acquisition are complex, requiring a number of accounting
judgements and estimates to be made by the Group. Key accounting judgements included:
• The assessment of control;
• The functional currency of the EVR Group; and
• Accounting for tax given the partnership structure of EVR.
The acquisition accounting required significant management judgement to evaluate the fair value of identifiable assets and
liabilities, and in particular, in determining the fair value of mineral rights ($8.0 billion), rehabilitation liabilities ($2.2 billion) and
deferred tax balances ($2.6 billion). No goodwill was recognised.
The extent of judgement to determine the fair value of identifiable assets and liabilities increases the risk of fraud from
management bias and, as a result, we identified a key audit matter in respect of the fair value of identifiable assets and
liabilities of EVR. Refer also to the Audit Committee’s report on page 112.
How the scope of our audit responded to the key audit matter
In response to the key audit matter noted above, our audit procedures included but were not limited to the following:
Accounting judgements
• We critically challenged the Group’s conclusions on key accounting judgements, considering the substance of underlying
agreements, relevant accounting literature and benchmarking to industry practice where applicable.
Fair value of identifiable assets and liabilities
• With respect to the Group’s assessment of whether the purchase price reflected fair value and the Group’s estimate of the
fair value of identifiable assets and liabilities, we challenged the significant assumptions used and the evidence on which
these assumptions were based with the support of our in-house valuation specialists. This included challenging forecast
coking coal prices by comparing prices to broker forecasts and recent third party transactions, analysing the Group’s
assumptions against third party forecast data, assessing the Group’s discount rate assumptions by comparison to our own
independently derived assumptions, testing the arithmetical accuracy of the Group’s valuation models, and comparison and
reconciliation of forecast assumptions to latest internal budget information.
• We read the third-party specialist’s report obtained by the Group to support the estimate of EVR’s rehabilitation liability. We
challenged key assumptions used by reference to third party benchmark data where available and to internal management
information. We obtained an understanding of EVR’s regulatory and legal obligations with respect to water treatment, and
challenged the extent to which forecast water treatment costs related to future operations or to the rehabilitation of past
disturbances.
• We assessed the competence, capability and objectivity of the Group’s internal and external specialists used in the
determining the overall fair value of the acquired business and in the assessment of rehabilitation liabilities.
• We challenged the Group’s assessment that no goodwill had arisen having considered any potential drivers of goodwill, the
identification and valuation of identifiable assets and liabilities and whether any residual value in the purchase consideration
over the recognised assets and liabilities required goodwill to be recognised.
Key observations
We concluded that the accounting judgements and estimates arising from the acquisition of EVR were appropriate. We
concluded that the valuation of the identifiable assets and liabilities of EVR on acquisition was appropriate and that the Group’s
assessment that the purchase consideration for EVR reflected the fair value of EVR was reasonable.
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5.2 Impairments and impairment reversals of non-current assets
Description of key audit matter
The carrying value of the Group’s non-current assets within the scope of IAS 36: Impairment of assets includes property, plant
and equipment (“PPE”), which amounted in total to $50,206 million at 31 December 2024 (2023: $39,233 million) and intangible
assets of $5,928 million (2023: $6,002 million) as disclosed in notes 9 and 10 respectively. For indefinite life intangible assets, or
when an impairment or impairment reversal indicator exists in respect of the Group’s material non-current assets and
investments, the Group completes an impairment assessment.
In assessing the recoverability of non-current assets, the Group makes significant assumptions about factors such as:
• expected future prices of commodities (particularly coal, oil, copper, cobalt, zinc, ferroalloys and nickel), discount rates, oil
refining margins, foreign exchange rates, production levels, and operating costs;
• future mining and tax legislation, and political and other macro-economic developments;
• responses to climate change impacts by regulators and consumers, which could negatively impact demand for the Group’s
products, particularly thermal coal (refer to “Potential impact of climate change on the valuation of thermal coal and oil
related non-current assets” key audit matter below); and
• geological and other operational factors that could affect an asset’s performance over time.
As disclosed in note 7, pre-tax impairments totalling $1,942 million were recorded in respect of PPE and intangible assets (2023:
$2,103 million).
The outcome of impairment or impairment reversal assessments can vary significantly if different assumptions are applied as
illustrated in the sensitivity disclosures under “Key sources of estimation uncertainty” in notes 1 and 7, as well as the Audit
Committee Report on page 112.
We considered the potential risk of fraud from management bias given the significant estimation uncertainty in the Group’s
impairment and impairment reversal assessments.
How the scope of our audit responded to the key audit matter
In response to the key audit matter noted above we performed the following:
General procedures
• We considered the Group’s assessment of indicators of impairment or impairment reversal, which included understanding
the inherent subjectivity and complexity of key assumptions, as well as relevant internal controls over the Group’s
impairment and impairment reversal assessment process.
• We performed an independent assessment of impairment and impairment reversal indicators considering the current
economic environment, including the impacts of the higher interest rate environment and volatility in commodity pricing.
• We updated our assessment of the Group’s determination of relevant cash-generating units (“CGUs”) by reference to the
requirements of accounting standards and our understanding of the nature of the Group’s mining operations and the extent
to which active markets are considered to exist for intermediary products.
Challenge of key model assumptions and overall reasonableness of impairment or impairment reversal assessment
• We challenged the significant assumptions used and the evidence on which these assumptions were based. We considered
the risk of management bias in macroeconomic forecast assumptions and estimates with the support of our valuations
specialists by analysing the Group’s inputs against third party forecast data, challenging and recalculating the Group’s
approach and methodology, and comparing assumptions to the Group’s latest internal budget information.
• Where indicators of impairment or impairment reversal were identified, we performed detailed testing of the Group’s
impairment calculations and, where appropriate based on our risk assessment, with the support of our valuation and mining
specialists, we assessed the appropriateness of the Group’s model inputs and assumptions and the basis for technical
mining, operational and financial inputs (e.g. price, discount rate, reserves and resources, production, grade and recovery
rates, resource conversion rates, and operating and capital costs). Production and cost assumptions were analysed against
historical performance as well as approved budgets and life of mine (“LOM”) plans, where applicable, and minable tonnes
assumptions were assessed against reserves and resources estimates.
• We assessed the competence, capability and objectivity of the Group’s internal experts responsible for preparing the reserves
and resources statements.
• We assessed the appropriateness of key asset-specific assumptions and the judgements taken in applying these
assumptions within the impairment models, such as the incorporation of discounts or premiums, changes in tax legislation
or other legal or regulatory assumptions (e.g. rehabilitation costs).
• We evaluated the appropriateness of the carrying values of each CGU in scope for an impairment review.
• We performed a stand back assessment and evaluated management’s impairment or impairment reversal assessment for
any evidence of management bias in the assumptions and judgements applied.
• We evaluated the adequacy of impairment related disclosures in the financial statements, including the key assumptions
used and the completeness and accuracy of sensitivities disclosed.
• For climate related impairment risks, please refer to our key audit matter under 5.3 below.
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Key observations
Based on the results of our assessment of the Group’s methodology for impairment and impairment reversal testing and
modelling, we concluded that the methodology applied complies with accounting standards, and that the Group’s assessment
of indicators of impairment or impairment reversals was appropriate.
We concluded that key assumptions used by the Group in assessing impairment or impairment reversals were reasonable in
comparison to historical actuals achieved, relevant evidence and/or our specialists’ judgements.
Based on the results of our testing, we concluded that the recoverable amounts for the CGUs tested were reasonable. We
considered the Group’s disclosures on impairment or impairment reversal sensitivities to key assumptions and found them to
be appropriate and in compliance with the requirements of IFRS Accounting Standards.
Although we observed improvements in controls over impairment and impairment reversals, similar to the prior year, we found
that the level of the Group’s review and documentation retained relating to certain judgements and key assumptions in
complex models requires further improvement and we considered this in our audit response.
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5.3 Potential impact of climate change on the valuation of thermal coal and oil related non-current assets
Description of key audit matter
As described on pages 93 to 94 of the Annual Report, climate change can affect Glencore’s business through currently enacted
and prospective regulations to reduce carbon emissions and ultimately limit extreme climate events. This may impact the
Group through increased costs through carbon pricing mechanisms, potentially reduced access to capital and changes in
energy prices amongst others.
In the Group’s TCFD report on pages 24 to 41, the Group details the steps taken during the year to identify and implement
emission reduction opportunities and to make progress in delivering the Group’s climate strategy.
As set out in note 1, Glencore’s exposure to assets that produce fossil fuels relate mainly to its steelmaking coal businesses,
which include EVR, its thermal coal mining operations in Australia, South Africa and Colombia, and its Astron oil refining asset
in South Africa. The Group also has goodwill related to its coal marketing CGU.
All of these assets are long term in nature. Other than goodwill which is not amortised, the average useful life of thermal coal
and oil assets is 10 years (2023: 7.5 years). There are also rehabilitation liabilities linked to the thermal coal and oil producing
assets totalling $5,965 million ($9,312 million undiscounted), (2023: $3,291 million, $3,419 million undiscounted). At 31 December
2024, the carrying values of thermal coal and oil producing assets and linked rehabilitation liabilities make up 18% of total
non-current assets and 9% of total non-current liabilities respectively (2023: 28% and 9% respectively).
In note 1 to the financial statements, the Group identifies the accounting measurement and disclosure impacts of assets and
liabilities that are most impacted by climate change and Glencore’s climate commitments, including:
• estimation of the carrying value of certain assets exposed to climate change risk impacted by demand and supply for the
Group’s commodities, related commodity pricing and carbon pricing;
• estimation of the remaining useful economic life of assets for depreciation and amortisation purposes; and
• estimation of timing of rehabilitation and decommissioning closure activities.
To assess the possible impact of climate change on the Group’s thermal coal portfolio, the Group has developed a number of
downside sensitivities based on various scenarios published by the International Energy Agency (“IEA”), including a net zero
emissions by 2050 scenario (“NZE”). In addition to the above, the Group has also run downside sensitivities against a Complete
Displacement Scenario. The impact of these sensitivities has been disclosed in note 1. These sensitivities illustrate the combined
effect of assuming weaker short term and long-term thermal coal demand and commodity prices than the Group has
assumed in its base case.
IFRS Accounting Standards require the Group’s financial reporting to be based, amongst other things, on the Group’s best
estimate of assumptions that are reasonable and supportable as at the date of reporting. Those assumptions may not align
with the ways in which the global economy, society and government policies will need to change to meet the targets set out in
the IEA’s NZE scenario or the Group’s stated ambitions.
We identified a key audit matter relating to the financial impacts of climate change on the Group and the impact on key
judgements and estimates within the financial statements, and assessing the consistency of reporting in the Strategic and
Corporate Governance reports on pages 1 – 139, with the financial impacts in the financial statements. Our audit focused on the
following areas in particular:
• Glencore’s coal pricing assumptions used (which differ from the IEA’s pricing assumptions under the respective scenarios) to
assess its coal non-current assets for indicators of impairment or impairment reversals and, where such indicators existed,
the valuation of the coal non-current assets;
• Glencore’s refining margin assumptions used to assess the Astron refinery for indicators of impairment reversal and its
valuation;
• The appropriateness of Glencore’s useful life assessment of thermal coal and oil producing assets based on anticipated
demand for coal and oil in the medium to long term;
• The appropriateness of Glencore’s judgement that carbon costs will likely be passed on to the consumer (refer note 1 for
details);
• The valuation of goodwill relating to its coal marketing cash generating unit which is based on an earnings multiple
approach of 10x (10x in 2023) (refer note 10);
• The appropriateness of the timing of rehabilitation cash flows at operations that produce thermal coal and oil; and
• The consistency between Glencore’s announced climate related targets and net zero 2050 ambition and the above areas.
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How the scope of our audit responded to the key audit matter
In response to the key audit matter noted above we performed the following:
Coal prices
• As the availability of long-term thermal coal price forecasts and demand and supply market data (particularly for the Group‘s
coal produced outside of Australia) is extremely limited, we engaged valuation specialists to analyse historical price
correlations between the three primary coal benchmark prices: Newcastle (the Australian coal benchmark) which has the
largest number of external broker forecasts, API 4 (the South African coal benchmark) and API 2 (the North West Europe coal
benchmark). This assessment was used to extrapolate a forward curve against which we challenged the Group’s forecasted
price assumptions.
• We compared Glencore’s long-term coal price assumptions to forecasts provided by external brokers and the IEA’s Stated
Policies Scenario (“STEPS”) and Announced Pledges Scenario (“APS”) noting that some adjustments were required to the
IEA’s data to ensure comparability, for example, appropriate freight adjustments.
• We considered the Group’s updated illustrative impairment sensitivities in note 1 and challenged whether these presented
contradictory evidence to the Group’s conclusion that there were no impairment indicators relating to the Coal Australia
cash generating unit.
Asset useful lives
• We evaluated Glencore’s coal production profile against the IEA scenarios and evaluated the consistency of the Group’s
internal modelling with its external climate reporting.
• With the support of South African refinery specialists, we challenged the useful life and refining margins of the Astron oil
refinery by evaluating a third-party expert report commissioned by the Group (that covered the period up to 2050), as well as
data on oil demand expectations provided by the IEA up to 2050. We also considered factors such as the refinery’s
geographical location and competitive landscape in our assessment.
• We challenged the Group’s assessment of useful lives and the basis used to depreciate/amortise physical and intangible
assets.
• We assessed whether any assets’ useful lives exceeded the Group’s modelled life of mine/asset of the operation.
Carbon costs
• We confirmed with the Group that their judgement that future increases in carbon costs will be passed through to end-users
has not changed from the prior year.
• We challenged the Group’s logic on carbon pricing being passed onto the user based on the outcome of our independent
sensitivity analysis and observations.
• We benchmarked the Group’s judgement against peer entities.
• We reviewed external reports (IEA and others) for market expectations on the impact of carbon pricing.
Marketing coal goodwill
• We evaluated the appropriateness of Glencore’s use of a price-to-earnings multiple to estimate a market based fair value in
light of an expectation that thermal coal volumes traded and hence earnings are expected to decrease over time.
• We determined an independent range of price-to-earnings multiples based on companies with thermal coal trading,
production or logistics to evaluate the appropriateness of the earnings multiple used by the Group.
Rehabilitation provisions
• We updated our understanding of the current and, where relevant, proposed legislative requirements in the jurisdictions of
the Group’s thermal coal and oil operations with respect to rehabilitation. We considered the impact on the timing of
rehabilitation and related provisions.
• We challenged the timing of planned rehabilitation activities of Glencore’s thermal coal and oil operations and whether
modelled cash flows aligned to the company’s announced climate change commitments and ambition.
• We re-performed the calculation of the Group’s sensitivity analysis which is set out in note 1 which quantifies the impact on
rehabilitation provisions of a 3- and 5-year acceleration in the timing of rehabilitation of thermal coal and oil producing
assets.
Consistency between Glencore’s announced targets and accounting assumptions
• We used Deloitte climate and sustainability specialists to challenge the Group’s climate change narrative and related
disclosures.
• We read the other information included in the annual report and considered whether there was any material inconsistency
between the other information and the financial statements, or whether there was any material inconsistency between the
other information and our understanding of the business based on audit evidence obtained and conclusions reached in the
audit.
• We considered whether the Group’s sensitivity and estimation uncertainty disclosures were appropriate in the context of
climate change risks and uncertainties.
Key observations
With respect to Glencore’s base case assessment of thermal coal pricing assumptions, all long-term prices were in our reasonable
range. When comparing Glencore’s assumptions to the IEA’s data points, we found the assumptions to be higher than the IEA’s
STEPS forecast. Regarding Astron, we concluded that Glencore’s forecast oil refining margin assumptions were reasonable.
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We agree with the sensitivity disclosures in note 1 that the recoverable values of Coal South Africa and Cerrejon CGUs are
sensitive to reasonably possible changes in thermal coal prices. As disclosed in Glencore’s illustrative climate related
sensitivities in note 1, there remains a risk over the longer term of material impairment should forecast fossil fuel prices reduce
significantly and trend towards the IEA’s STEPS, APS and NZE scenarios.
With respect to the illustrative climate related sensitivities provided in note 1, we observed that the sensitivities reflected the
combined effect of adopting the IEA’s long-term price assumptions based on the various IEA climate scenarios, together with
the effect of adopting an average realised 2024 starting point. The short-term price assumptions in the climate sensitivity are
below broker consensus prices. Accordingly, we are satisfied that the sensitivities do not contradict the Group’s assessment
that an impairment in Coal Australia is not reasonably possible within the next financial year.
We consider the Group’s position on the ‘pass through’ of increases in carbon pricing to end-users to be reasonable and concur
that it is appropriate that this judgement is disclosed as a critical accounting judgement in note 1.
We concluded that the assumed timing of anticipated restoration, rehabilitation and decommissioning cash flows associated
with Glencore’s thermal coal and oil related assets was reasonable. We found the sensitivity disclosures in note 1 to be
appropriate.
We found no material inconsistencies between the Group’s thermal coal and oil impairment modelling, rehabilitation forecasts
or asset useful lives as set out in note 1 and the Group’s stated response to climate change as described in the Strategic Report.
We concluded that the Group’s assumptions of the impacts of climate change in estimating the valuation of the Group’s
thermal coal and oil non-current assets were reasonable.
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5.4 Revenue recognition - valuation of level 3 financial instruments
Description of key audit matter
As explained in note 1, revenue and costs of goods sold include unrealised gains and losses on commodity transactions which
meet the definition of derivatives or are classified as financial instruments recorded at fair value through profit or loss. Of these
instruments, as set out in note 29, $1,592 million of financial assets (2023: $1,233 million) and $542 million of financial liabilities
(2023: $485 million) were classified as level 3 valuations as established by the hierarchy set out in IFRS 13: Fair Value
Measurement because the valuation is dependent on one or more unobservable inputs.
Determination of fair values can be a complex and subjective area, requiring significant estimates, particularly where valuations
are classified as level 3 as they use unobservable inputs (e.g. price differentials, medium and long-term LNG pricing
assumptions, credit risk assessments, market volatility and forecast operational estimates). Given the significant number of
judgements, sensitivity of assumptions, and the absolute value associated with certain Level 3 positions, we have identified a
key audit matter in respect of the valuation of Level 3 instruments.
Given long-term LNG prices are not observable in active markets, as disclosed in note 1, the price assumptions used in the
valuation of the Group’s long dated LNG physical forward contracts is a critical accounting judgement. As explained in note 29,
as at 31 December 2024, the Group’s physical forward level 3 assets and liabilities relating to LNG contracts were $1,085 million
(2023: $760 million) and $44 million (2023: $nil) respectively. This was also a key risk area for the Audit Committee; refer to page
112.
How the scope of our audit responded to the key audit matter
• We reviewed Glencore’s accounting policies on revenue recognition and fair value measurements to assess compliance with
the requirements of IFRS Accounting Standards.
• We obtained an understanding of relevant controls surrounding the completeness and accuracy of trade capture and
revenue and, for certain controls we tested their operating effectiveness. Our audit approach was largely substantive in
nature and included agreeing key terms on unrealised trades back to contracts and other supporting evidence on a sample
basis.
• We tested general IT controls over major technology applications and critical interfaces involving revenue recognition and
the completeness and accuracy of trade capture.
• We tested the accuracy and completeness of unrealised trades as of the reporting date by tracing and agreeing a sample of
trades entered into around the year-end from source documents to the trade book system.
• We obtained an understanding of certain relevant internal controls over the Group’s fair value measurement processes and,
where appropriate, we tested their operating effectiveness. Our audit approach for testing the valuation of unrealised trades
was largely substantive in nature and included performing independent valuations of the forward physical and paper trades
on a sample basis.
• We worked with our financial instrument specialists with experience in commodity trading to test the Group’s significant
unobservable inputs used in Level 3 measurements in the fair value hierarchy as set out in notes 28 and 29 to the financial
statements. This work included assessing the Group’s valuation assumptions against independent price quotes, recent
transactions, and/or other relevant documentation. For long-term LNG contracts we assessed the Group’s modelling
techniques used to estimate unobservable inputs through the extrapolation of directly observable inputs.
Key observations
Based on the results of our testing, we are satisfied that the Level 3 fair value measurements are supported by reasonable
assumptions in line with recent transactions and/or externally verifiable information. We found the financial statement
disclosures on fair value measurements to be appropriate. As improvements in controls were either in progress or
implemented during the year, we adopted a largely substantive audit approach in relation to the deal capture and valuation
risks.
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5.5 Valuation of deferred tax assets and uncertain tax positions
Description of key audit matter
The global tax environment is complex, particularly with respect to cross border transactions, and the interpretation and
application of tax legislation in certain jurisdictions in which the Group operates can be unclear and unpredictable.
There is therefore complexity and uncertainty in respect of the calculation of income taxes. In particular, the recognition and
valuation of deferred tax assets and assessing liabilities and contingent liabilities in respect of uncertain tax positions can
involve significant estimation uncertainty. The Group applies accounting interpretation IFRIC 23: Uncertainty over Income Tax
Treatments and IAS 12: Income Taxes.
As disclosed in notes 1 and 8:
• The Group has updated its assessment of uncertain tax positions and the recognition and recoverability of deferred tax
assets. In recognising a liability for uncertain tax positions, consideration was given to the range of possible outcomes to
determine the Group’s best estimate of the amount to provide. As at 31 December 2024, the Group has provided
$1,777 million (2023: $1,425 million) for uncertain tax positions.
• At 31 December 2024 the Group has recorded deferred tax assets of $1,208 million (2023: $1,390 million) and deferred tax
liabilities of $5,207 million (2023: $2,970 million).
• The most significant estimation uncertainty relates to the Democratic Republic of Congo (“DRC”) where the tax authorities
have regularly challenged the Group’s income tax and indirect tax filings and have raised direct tax and customs related
assessments against the Group. A number of these assessments are unresolved. The Group is currently responding to the
challenges and assessments raised.
Further estimation uncertainty arises from the challenges of forecasting future taxable profits in various jurisdictions given the
inherent volatility of trading results impacting the valuation of deferred tax assets.
As a result, we identified a key audit matter in respect of the liability and related disclosures for uncertain tax positions and the
recognition and valuation of deferred tax assets due to the significant estimation uncertainty and subjectivity in certain
judgements and key assumptions applied by the Group. This was also a key risk area for the Audit Committee; refer to page 112.
How the scope of our audit responded to the key audit matter
We engaged Deloitte tax specialists to assist in executing the following audit procedures:
• We reviewed and challenged the Group’s assessment of uncertain tax positions by reviewing correspondence with local tax
authorities and reviewing third party expert tax opinions where appropriate, to assess the adequacy of associated liabilities
and disclosures, having regard to the requirements of IFRIC 23.
• We considered the appropriateness of the Group’s assumptions and estimates to support the recognition of deferred tax
assets with reference to forecast taxable profits. We challenged the appropriateness of the Group’s tax utilisation models by
comparing these forecasts against the relevant entities’ budgets or life of asset plans.
• We assessed the adequacy of disclosures in the financial statements in relation to liabilities for uncertain tax positions and
deferred tax assets, and the respective sensitivity disclosures provided.
• In respect of tax exposures in the DRC:
– We challenged the Group’s position by inspecting correspondence with local tax authorities, reviewing third party expert
tax opinions where appropriate, and working with Deloitte local tax specialists to assess the probability and extent of
potential outflows from challenges or expected challenges from tax authorities.
– We challenged the adequacy of associated liabilities and disclosures having regard to IFRIC 23 and IAS 12, as applicable.
– We assessed the adequacy of disclosures in the financial statements in relation to the DRC tax matters and the respective
estimation uncertainty disclosures provided.
Key observations
Based on our audit work on the Group’s tax liabilities and deferred tax assets recorded at 31 December 2024, we concur that
the recorded liabilities for uncertain tax positions and deferred tax assets and related disclosures are appropriate.
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6. Our application of materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the
scope of our audit work and in evaluating the results of our work.
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group materiality and performance materiality
Group materiality: $500 million (2023: $600 million)
Group performance materiality: $325 million (2023: $390 million)
The decrease in materiality is driven by lower adjusted profit before tax and net assets compared to the prior year.
Basis for determining materiality and performance materiality
We continue to determine materiality by reference to three-year average adjusted profit before tax and net assets. Based on
our professional judgement, we determined materiality to be $500 million which equates to:
• 4.5% of three-year average adjusted profit before tax (2023: 4.2%)
• 1.4% of net assets as at 31 December 2024 (2023: 1.6%).
Performance materiality
Group performance materiality for the 2024 audit has been set at $325 million being 65% of Group materiality (2023:
$390 million being 65% of Group materiality). Component audit procedures are scoped by reference to the component
performance materiality (see ranges applied below).
Component performance materiality
Due to the diversified nature of the Group’s operations, we have historically applied a maximum allowed component
performance materiality such that our component level procedures are set at a level that is commensurate with the
contributions of each component. The maximum permitted performance materiality for individual components was
$195 million (2023: $230 million). The performance materiality applied to individual components ranged from $110 million to
$195 million (2023: $63 million to $230 million).
Rationale for the benchmarks applied
Three-year average adjusted profit before tax
Using a three-year average continues to be an effective approach for audits of companies in the mining industry given a single
year’s profits are highly exposed to cyclical commodity price fluctuations. The average profit before tax benchmark is also
normalised for items which, due to their nature and variable financial impact and/or expected infrequency of the underlying
events, are not considered indicative of the continuing operations of the Group (such as impairment charges). The absence of
normalisation would result in a volatile materiality that may be unrepresentative of the scale of the Group’s operations.
2023
2024
2023
2024
2023
2024
2023
2024
500
600
325
195
230
390
25
30
Group
Performance
Materiality
Audit committee
reporting threshold
Maximum allowed
component performance
materiality
(US$ million)
0
100
200
300
400
500
600
700
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Net assets
Incorporating a net assets metric into our approach to estimating materiality ensures our approach gives due consideration to
the scale of the Group’s business and the strength of the Group’s balance sheet which is important to investors. In addition, as
an emerging risk, the impact of climate change is not necessarily captured in a mining company’s 12-month performance and
hence the use of an additional balance sheet benchmark for estimating materiality is beneficial.
Range approach to determining materiality
We consider a range approach to be appropriate to capture the upper and lower bounds of a reasonable materiality level that
takes into consideration both the benchmarks above. We selected a point within that range that, in our professional
judgement, appropriately reflects the sensitivity of the users of the financial statements to Glencore’s current year performance
and financial position.
Error reporting threshold
We agreed with the Audit Committee that we would report individual audit differences in excess of $25 million (2023:
$30 million), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also
report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial
statements.
7. An overview of the scope of our audit
7.1 The impact of climate change on our audit
Climate change impacts Glencore’s business in a number of ways as set out in the Strategic report on pages 24 – 41 of the
Annual Report and Note 1 on pages 169 - 172 of the financial statements.
In planning our audit, the financial impacts on the Group of climate change and the transition to a low carbon economy were
considered where these factors have the potential to directly or indirectly impact key judgements and estimates and related
assumptions within the financial statements. We worked with our internal specialists in considering potential climate change
risk factors. Our risk assessment was based on:
• enquiries of senior management to understand the potential impact of climate change risk including physical risks to
producing assets, the potential changes to the macro-economic environment and the potential for the transition to a low
carbon environment to occur quicker than anticipated;
• reading and considering Glencore’s climate change report and position papers;
• considering, together with each of our component teams, immediate and possible longer-term impacts of climate change in
each of the Group’s main jurisdictions; and
• reading and considering external publications by recognised authorities on climate change such as the IEA’s World Energy
Outlook amongst others.
The principal audit risk that we have identified for our audit is that coal forecast assumptions (particularly thermal coal price
assumptions and the expected economic lives of these assets) used in impairment testing may not appropriately reflect
anticipated changes in supply and demand due to climate change and the energy transition.
Our response to this principal audit risk and other climate risks that we considered relevant to the audit is summarised in the
Key Audit Matter 5.3 “Potential impact of climate change on the valuation of thermal coal and oil related non-current assets”
above.
7.2 Identification and scoping of components
Our Group audit was scoped by obtaining an understanding of the Group and its environment and assessing the risks of
material misstatement at the Group level. Our scoping considered both quantitative and qualitative factors including a
component’s contribution to financial metrics (revenue, adjusted EBIT, adjusted EBITDA, and non-current assets), production
output and qualitative criteria, such as exhibiting particular risk factors. Based on our assessment, the scope of our audit
comprised 24 components (2023: 22 components), representing the Group’s most material marketing operations and industrial
assets.
Our Group audit used the work of 16 component audit teams (2023: 14 component audit teams) in 12 countries (2023: 12
countries).
The following audit scoping was applied:
• 11 components (2023: 10 components) were subject to an audit of entire financial information, and
• 13 components (2023: 12 components) were in scope for an audit of specified account balances where the extent of our
testing was based on our assessment of the risk of material misstatement of certain specific financial statement balances
and of the materiality of the Group’s operations at those locations.
These 24 components account for 81% of the Group’s net assets (2023: 78%), 93% of the Group’s revenue (2023: 91%) and 84% of
the Group’s adjusted EBITDA (2023: 90%).
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At the parent entity level, we tested the consolidation process and carried out analytical procedures to confirm our conclusion
that there was no risk of material misstatement in the aggregated financial information of the remaining components not
subject to audit or an audit of specified account balances.
7.3 Working with other auditors
Detailed audit instructions were sent to the auditors of each in-scope component. These instructions identified the significant
audit risks, other areas of audit focus, the account balances, classes of transactions and disclosures considered material and
their relevant risks of material misstatement as assessed by the Group audit team. The instructions also set out certain audit
procedures to be performed and the information to be reported back to the Group audit team, and other matters relevant to
the audit.
For all in-scope components, the Group audit team was involved in the audit work performed by component auditors through
a combination of providing referral instructions, regular interaction with component teams during the year (using video
conferencing tools and physical onsite visits for certain components), review and challenge of related component inter-office
reporting, their audit files and of findings from their work, and attendance of component audit closing video conference calls.
7.4 Our consideration of the control environment
Glencore relies on the effectiveness of a number of IT systems and applications to ensure that financial transactions are
recorded completely and accurately. The main financial accounting, reporting, trading and treasury systems were identified as
key IT systems relevant to our audit. The IT systems which are primarily managed from the centralised IT function in
Switzerland were tested by IT specialists who were part of the Group engagement team. Other IT systems were tested by
component IT specialists to determine whether controls within these IT systems could be relied upon. IT control deficiencies
relating to access management including privileged access, change management and interface monitoring controls were
identified in a number of entities within the Group. Where centrally managed IT systems were impacted, mitigating controls
were identified and/or additional procedures were performed in order to adopt a control reliance approach. However, certain
component teams were unable to adopt a controls-based audit approach in the current year and accordingly, these teams
extended the scope of their audit procedures in response to the identified control deficiencies.
As discussed in the Key Audit Matter 5.4 “Revenue recognition – valuation of level 3 financial instruments” above, as
improvements in controls in the Group’s marketing businesses were either in progress or implemented during the year, we
adopted a fully substantive audit approach in relation to testing deal capture and valuation of financial instruments. Industrial
activities are generally decentralised and thus the design of controls and testing approach varied between components.
As described in the Key Audit Matter 5.2 “Impairment and impairment reversals of non-current assets” above, although we
observed improvements in a number of relevant controls over impairment, similar to the prior year, we found that the level of
review and documentation retained relating to certain judgements and key assumptions in complex models requires
improvement. This observation was also noted in other areas of the audit where complex models are prepared.
The Audit Committee has discussed these internal control deficiencies, and the Group’s actions to remediate them on page 111.
As deficiencies in the control environment increase the risk of fraud and error within the financial statements, we performed
additional procedures to respond to the potential risks, including the risk of fraud as outlined in section 11 below.
Net assets
Revenue
Adjusted EBITDA
Audit of entire
financial information
62%
Specific account
balances
19%
Review and
analytical procedures
19%
Audit of entire
financial information
86%
Specific account
balances
7%
Review and
analytical procedures
7%
Audit of entire
financial information
84%
Specific account
balances
0%
Review and
analytical procedures
16%
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8. Other information
The other information comprises the information included in the annual report other than the financial statements and our
auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be
materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s ability to continue as a going
concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
11. Extent to which the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with
our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to
which our procedures are capable of detecting irregularities, including fraud, is detailed below.
11.1 Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance
with laws and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the design of the Group’s
remuneration policies, key drivers for remuneration, bonus levels and performance targets;
• the Group’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
• results of our enquiries of senior management, internal audit, members of the legal, risk and compliance functions, the
directors and the Audit Committee about their own identification and assessment of the risks of irregularities, including
those that are specific to the Group’s sector;
• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures
relating to:
– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-
compliance;
– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
and
– reviewing internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed among the engagement team, including component audit teams, and relevant internal specialists,
including forensic, tax, mining, valuations and IT specialists, regarding how and where fraud might occur in the financial
statements and any potential indicators of fraud.
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As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud
and identified the greatest potential for fraud in the following areas:
• the use of agents and intermediaries in certain higher risk jurisdictions, and other higher risk transaction types;
• the testing of impairment of non-current assets within the scope of IAS 36: Impairment of Non-current Assets;
• estimating the fair value of identifiable assets and liabilities in accounting for the acquisition of EVR;
• the use of supply chain finance arrangements and their classification and disclosure within trade creditors;
• key sources of estimation uncertainty in the recognition and measurement of deferred tax assets and uncertain tax positions;
and
• valuation of level 3 unrealised forward physical contracts.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions
of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this context included Companies (Jersey) Law 1991, UK Listing Rules,
Disclosure Guidance and Transparency Rules and related guidance and relevant tax laws.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements
but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included
the US Foreign Corrupt Practices Act, the US Anti-Money Laundering regulations, the UK Bribery Act 2010 and the Group’s
operating licences and environmental regulations in the jurisdictions in which it operates.
11.2 Audit response to risks identified
As a result of performing the above, we identified “Accounting for the acquisition of EVR”, “Impairments and impairment
reversals of non-current assets”, “Revenue recognition – valuation of level 3 financial instruments” and “Valuation of deferred
tax assets and uncertain tax positions” as key audit matters related to the potential risk of fraud or non-compliance with laws
and regulations. The key audit matters section of our report explains the matters in more detail and the specific procedures we
performed in response to those key audit matters.
In addition, our procedures to respond to risks identified included the following:
• enquiring of management, the Audit Committee, the General Counsel and the Group’s external legal counsel concerning actual and
potential litigation and claims, in particular whether the Group is in compliance with laws and regulations relating to fraud, money
laundering, bribery and corruption;
• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence
with relevant regulatory and taxation authorities, where applicable;
• obtaining an understanding of the Group’s business relationships with agents and intermediaries in certain high-risk jurisdictions
and the rationale for their appointment;
• scrutinising higher risk expense accounts for evidence of improper payments in high risk jurisdictions;
• performing audit procedures to identify and investigate potentially suspicious payments to government officials, agents and
intermediaries; this was done by adding search parameters to our journal entry testing for key words relevant to potentially
fraudulent payments;
• working with our Deloitte forensic specialists to assist in the design of certain audit procedures in response to the risk of fraud;
• challenging the Group’s key judgements and assumptions for determining the recoverable amounts and credit adjustments for
trade advances;
• using analytical tools to identify unrealised forward physical positions of increased audit interest and challenging the method and
inputs to those valuations;
• testing management’s identification of transactions that may have supply chain financing features, and challenging the nature of
such supply chain financing arrangements and whether they qualify for separate disclosure or classification as debt;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
• performing focused analytical procedures on key financial metrics of components to identify any unusual or material transactions
that may indicate a risk of material misstatement and evaluating the business rationale of such transactions;
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct effect on the financial statements; and
• addressing the risk of fraud through management override of controls by testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made by management in making accounting estimates indicate a potential bias,
and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, including
internal specialists and all component audit teams, and remained alert to any indications of fraud or non-compliance with laws and
regulations throughout the audit.
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Report on other legal and regulatory requirements
12. Opinion on other matters prescribed by our engagement letter
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with
the provisions of the UK Companies Act 2006 as if that Act had applied to the company.
13. Corporate Governance Statement
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any
material uncertainties identified (set out on page 138);
• the directors’ explanation as to their assessment of the Group’s prospects, the period this assessment covers and why the
period is appropriate (set out on pages 91 and 138);
• the directors’ statement on fair, balanced and understandable (set out on page 139);
• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks (set out on page 110);
• the section of the annual report that describes the review of effectiveness of risk management and internal control systems
(set out on 86-100); and
• the section describing the work of the audit committee (set out on pages 111-113).
14. Matters on which we are required to report by exception
Adequacy of explanations received and accounting records
Under the Companies (Jersey) Law, 1991 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• proper accounting records have not been kept by the parent company, or proper returns adequate for our audit have not
been received from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1 Auditor tenure
We were appointed by the Board of Directors on 22 August 2011 to audit the financial statements of Glencore plc for the year
ending 31 December 2011 and subsequent financial periods. Following a competitive tender process run by the Audit
Committee in 2021, we were reappointed as auditor of Glencore plc for the year ended 31 December 2022 and subsequent
years. The period of total uninterrupted engagement including previous renewals and reappointments of the firm as auditor of
Glencore plc is 14 years, covering the years ending 31 December 2011 to 31 December 2024. The lead audit partner has rotated
three times during this period, with the most recent rotation being after the 2022 audit.
15.2 Consistency of the audit report with the additional report to the Audit Committee
Our audit opinion is consistent with the additional reporting to the Audit Committee we are required to provide in accordance
with ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body, in accordance with Article 113A of the Companies (Jersey) Law,
1991. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R,
these financial statements form part of the Electronic Format Annual Financial Report filed on the National Storage
Mechanism of the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether
the Electronic Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R. We have
provided assurance on whether the Electronic Format Annual Financial Report has been prepared in compliance with DTR
4.1.15R – DTR 4.1.18R and have publicly reported separately to the members on this.
Robert Topley FCA
for and on behalf of Deloitte LLP
Recognised Auditor
London, United Kingdom
17 March 2025
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Consolidated statement of income
For the year ended 31 December 2024
US$ million
Notes
2024
2023
Revenue
3
230,944
217,829
Cost of goods sold
(224,294)
(207,046)
Net expected credit losses
12/14
(186)
21
Selling and administrative expenses
(2,023)
(2,105)
Share of income from associates and joint ventures
11
1,417
1,337
(Loss)/gain on disposals of non-current assets
4
(337)
850
Other income
5
191
176
Other expense
5
(2,117)
(1,267)
Impairments of non-current assets
7
(2,258)
(2,264)
Impairments of financial assets
7
(8)
(220)
Dividend income
11
7
6
Interest income
6
587
615
Interest expense
6
(2,921)
(2,515)
(Loss)/income before income taxes
(998)
5,417
Income tax expense
8
(1,696)
(2,207)
(Loss)/income for the year
(2,694)
3,210
Attributable to:
Non-controlling interests
(1,060)
(1,070)
Equity holders of the Parent
(1,634)
4,280
(Loss)/earnings per share:
Basic (US$)
18
(0.13)
0.34
Diluted (US$)
18
(0.13)
0.34
All amounts presented are derived from continuing operations. The accompanying notes are an integral part of the consolidated
financial statements.
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Consolidated statement of comprehensive income
For the year ended 31 December 2024
US$ million
Notes
2024
2023
(Loss)/income for the year
(2,694)
3,210
Other comprehensive loss
Items not to be reclassified to the statement of income in subsequent periods:
Defined benefit plan remeasurements
24
71
(14)
Tax charge on defined benefit plan remeasurements
(25)
(19)
Tax charge on performance based share plan
(20)
–
Loss on equity investments accounted for at fair value through other comprehensive
income
11
(67)
(94)
Tax credit on equity investments accounted for at fair value through other
comprehensive income
2
–
Loss due to changes in credit risk on financial liabilities accounted for at fair value
through profit and loss
(5)
(12)
Net items not to be reclassified to the statement of income in subsequent periods
(44)
(139)
Items that have been or may be reclassified to the statement of income in subsequent
periods:
Exchange loss on translation of foreign operations
(179)
(190)
Items recycled to the statement of income1
5/26
345
(3)
(Loss)/gain on cash flow hedges
(86)
203
Tax credit on loss on cash flow hedges
–
2
Cash flow hedges reclassified to the statement of income
84
(151)
Share of other comprehensive (loss)/income from associates and joint ventures
11
(99)
16
Net items that have been or may be reclassified to the statement of income
in subsequent periods
65
(123)
Other comprehensive income/(loss)
21
(262)
Total comprehensive (loss)/income
(2,673)
2,948
Attributable to:
Non-controlling interests
(1,069)
(1,092)
Equity holders of the Parent
(1,604)
4,040
1 Comprises foreign exchange translation losses recycled upon disposal of subsidiaries (2024: $Nil) (2023: $3 million) (see notes 17 and 26) and restructuring of
intragroup debt ($345 million) (2023: $Nil) (see note 5).
All amounts presented are derived from continuing operations. The accompanying notes are an integral part of the consolidated
financial statements.
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Consolidated statement of financial position
As at 31 December 2024
US$ million
Notes
2024
2023
Assets
Non-current assets
Property, plant and equipment
9
50,206
39,233
Intangible assets
10
5,928
6,002
Investments in associates and joint ventures
11
9,304
8,823
Other investments
11
468
513
Advances and loans
12
3,118
2,876
Other financial assets
28
197
367
Inventories
13
517
623
Deferred tax assets
8
1,208
1,390
70,946
59,827
Current assets
Inventories
13
29,580
31,569
Accounts receivable
14
17,781
18,385
Other financial assets
28
4,389
5,187
Income tax receivable
8
1,495
1,229
Prepaid expenses
288
317
Cash and cash equivalents
15
2,389
1,925
55,922
58,612
Assets held for sale
16
3,592
5,430
59,514
64,042
Total assets
130,460
123,869
Equity and liabilities
Capital and reserves – attributable to equity holders
Share capital
17
136
136
Reserves and retained earnings
40,533
43,444
40,669
43,580
Non-controlling interests
34
(5,009)
(5,343)
Total equity
35,660
38,237
Non-current liabilities
Borrowings
21
25,264
21,275
Deferred income
22
1,109
1,294
Deferred tax liabilities
8
5,207
2,970
Other financial liabilities
28
2,033
1,710
Provisions
23
10,714
8,105
Post-retirement and other employee benefits
24
764
800
45,091
36,154
Current liabilities
Borrowings
21
12,843
10,966
Accounts payable
25
28,968
29,289
Deferred income
22
1,786
1,044
Provisions
23
1,326
1,108
Other financial liabilities
28
2,835
3,671
Income tax payable
8
1,951
1,850
49,709
47,928
Liabilities held for sale
16
–
1,550
49,709
49,478
Total equity and liabilities
130,460
123,869
The accompanying notes are an integral part of the consolidated financial statements.
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Consolidated statement of cash flows
For the year ended 31 December 2024
US$ million
Notes
2024
2023
Operating activities
(Loss)/income before income taxes
(998)
5,417
Adjustments for:
Depreciation and amortisation
6,598
5,981
Share of income from associates and joint ventures
11
(1,417)
(1,337)
Streaming revenue and other non-current provisions
(44)
(77)
Loss/(gain) on disposals of non-current assets
4
337
(850)
Unrealised mark-to-market movements on other investments
5
(115)
103
Impairments
7
2,266
2,484
Other non-cash items – net1
2,219
1,496
Interest expense – net
6
2,334
1,900
Cash generated by operating activities before working capital changes, interest
and tax
11,180
15,117
Working capital changes
(Increase)/decrease in accounts receivable2
(80)
7,544
Decrease in inventories
2,770
1,978
Decrease in accounts payable3
(629)
(5,770)
Total working capital changes
2,061
3,752
Income taxes paid
(1,660)
(6,503)
Interest received
533
552
Interest paid
(2,059)
(1,882)
Net cash generated by operating activities
10,055
11,036
Investing activities
Investment in long-term advances and loans
12
(75)
–
Net cash used in acquisition of subsidiaries
26
(6,949)
(494)
Net cash (used)/received from disposal of subsidiaries
26
(22)
838
Purchase of investments
(215)
(946)
Proceeds from sale of investments
192
56
Purchase of property, plant and equipment
(5,611)
(4,484)
Proceeds from sale of property, plant and equipment
143
147
Dividends received from associates and joint ventures
11
812
1,328
Net cash used by investing activities
(11,725)
(3,555)
1 See reconciliation below.
2 Includes movements in other financial assets, prepaid expenses and long-term physically-settled advances and loans.
3 Includes movements in other financial liabilities, provisions and deferred income.
Other non-cash items comprise the following:
US$ million
Notes
2024
2023
Net foreign exchange losses/(gains)
5
445
(46)
Closed sites rehabilitation provisioning
5
870
503
Closure and severance costs
5
194
–
Share based and deferred remuneration costs
20
564
742
Other
146
297
Total
2,219
1,496
All amounts presented are derived from continuing operations. The accompanying notes are an integral part of the consolidated
financial statements.
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Consolidated statement of cash flows continued
For the year ended 31 December 2024
US$ million
Notes
2024
2023
Financing activities1
Proceeds from issuance of capital market notes2
4,797
3,474
Repayment of capital market notes
(2,806)
(3,159)
Proceeds from revolving credit facility
1,995
1,289
Repayment of other non-current borrowings
(137)
(314)
Repayment of lease liabilities
(844)
(616)
Margin (payments)/receipts in respect of financing-related hedging activities
(693)
897
Proceeds from current borrowings
1,916
430
(Repayments of)/proceeds from US commercial papers
(187)
711
Acquisition of non-controlling interests in subsidiaries
(5)
(68)
Distributions to non-controlling interests
(84)
(8)
Purchase of own shares
17
(230)
(3,672)
Distributions paid to equity holders of the Parent
19
(1,580)
(6,450)
Net cash generated/(used) by financing activities
2,142
(7,486)
Increase/(decrease) in cash and cash equivalents
472
(5)
Effect of foreign exchange rate changes
(70)
(6)
Cash and cash equivalents, beginning of year
1,987
1,998
Cash and cash equivalents, end of year
2,389
1,987
Cash and cash equivalents reported in the statement of financial position
15
2,389
1,925
Cash and cash equivalents attributable to assets held for sale
16
–
62
1 Refer to note 21 for reconciliation of movement in borrowings.
2 Amount net of issuance costs relating to capital market notes of $20 million (2023: $26 million).
All amounts presented are derived from continuing operations. The accompanying notes are an integral part of the consolidated
financial statements.
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Consolidated statement of changes in equity
for the year ended 31 December 2024
Retained
earnings
Share
premium
Other
reserves
(Note 17)
Own
shares
(Note 17)
Total
reserves
and
retained
earnings
Share
capital
Total equity
attributable
to equity
holders
Non-
controlling
interests
(Note 34)
Total
equity
1 January 2023
25,246
36,717
(6,833)
(5,861)
49,269
141
49,410
(4,191)
45,219
Income for the year
4,280
–
–
–
4,280
–
4,280
(1,070)
3,210
Other comprehensive loss
(17)
–
(223)
–
(240)
–
(240)
(22)
(262)
Total comprehensive income
4,263
–
(223)
–
4,040
–
4,040
(1,092)
2,948
Own share disposal (see note 17)
(39)
–
–
130
91
–
91
–
91
Own share purchases (see note 17)
–
–
–
(3,672)
(3,672)
–
(3,672)
–
(3,672)
Equity-settled share-based
expenses (see note 20)
137
–
–
–
137
–
137
–
137
Change in ownership interest
in subsidiaries (see note 34)
–
–
24
–
24
–
24
(60)
(36)
Acquisition/disposal of business
(see note 26)
–
–
–
–
–
–
–
20
20
Reclassifications
–
–
–
–
–
–
–
(12)
(12)
Cancellation of shares (see note 20)
–
(1,898)
–
1,903
5
(5)
–
–
–
Distributions (see note 19)
–
(6,450)
–
–
(6,450)
–
(6,450)
(8)
(6,458)
31 December 2023
29,607
28,369
(7,032)
(7,500)
43,444
136
43,580
(5,343)
38,237
Retained
earnings
Share
premium
Other
reserves
(Note 17)
Own
shares
(Note 17)
Total
reserves
and
retained
earnings
Share
capital
Total equity
attributable
to equity
holders
Non-
controlling
interests
(Note 34)
Total
equity
1 January 2024
29,607
28,369
(7,032)
(7,500)
43,444
136
43,580
(5,343)
38,237
Loss for the year
(1,634)
–
–
–
(1,634)
–
(1,634)
(1,060)
(2,694)
Other comprehensive income
(76)
–
106
–
30
–
30
(9)
21
Total comprehensive loss
(1,710)
–
106
–
(1,604)
–
(1,604)
(1,069)
(2,673)
Own share disposal (see note 17)
(43)
–
–
146
103
–
103
–
103
Own share purchases (see note 17)
–
–
–
(230)
(230)
–
(230)
–
(230)
Equity-settled share-based
expenses (see note 20)
(16)
–
–
–
(16)
–
(16)
–
(16)
Change in ownership interest
in subsidiaries (see note 34)
–
–
416
–
416
–
416
(443)
(27)
Acquisition/disposal of business
(see note 26)
–
–
–
–
–
–
–
1,931
1,931
Realisation of FVTOCI movements1
and other reclassifications
(699)
–
699
–
–
–
–
(1)
(1)
Distributions (see note 19)
–
(1,580)
–
–
(1,580)
–
(1,580)
(84)
(1,664)
31 December 2024
27,139
26,789
(5,811)
(7,584)
40,533
136
40,669
(5,009)
35,660
1 Reclassification of cumulative unrealised losses on our investment in PAO NK Russneft designated at FVTOCI following disposal finalisation in Q4 2024.
The accompanying notes are an integral part of the consolidated financial statements.
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Corporate Governance
Additional Information
Notes to the financial statements continued
1. Accounting policies continued
1. Accounting policies
Corporate information
Glencore plc (the ‘Company’, ‘Parent’, the ‘Group’ or ‘Glencore’), is a leading integrated producer and marketer of natural resources,
with worldwide activities in the production, refinement, processing, storage, transport and marketing of metals and minerals and
energy products. Glencore operates on a global scale, marketing and distributing physical commodities sourced from third party
producers and own production to industrial consumers, such as those in the battery, electronic, construction, automotive, steel,
energy and oil industries. Glencore also provides financing, logistics and other services to producers and consumers of commodities.
In this regard, Glencore seeks to capture value throughout the commodity supply chain. Glencore’s long experience as a commodity
producer and merchant has allowed it to develop and build upon its expertise in the commodities which it markets and cultivate
long-term relationships with a broad supplier and customer base across diverse industries and in multiple geographic regions.
Glencore is a publicly traded limited company incorporated in Jersey, 13 Castle Street, St Helier and domiciled in Switzerland. Its
ordinary shares are traded on the London and Johannesburg stock exchanges.
These consolidated financial statements were authorised for issue in accordance with a Directors’ resolution on 17 March 2025.
Statement of compliance
The consolidated financial statements have been prepared in accordance with the recognition and measurement criteria of:
• United Kingdom adopted international accounting standards; and
• IFRS® Accounting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).
Climate change-related considerations
The Group's 2024-2026 Climate Action Transition Plan outlines its industrial emissions (Scope 1, 2 and 3) reduction targets, relative to a
restated 2019 baseline, of 15% by the end of 2026, 25% by the end of 2030 and 50% by the end of 2035, and its ambition to achieve,
subject to a supportive policy environment, net zero industrial emissions by 2050. Following the approval of our 2024-2026 Climate
Action Transition Plan, we completed the acquisition of a 77% interest in Elk Valley Resources (EVR). We are currently assessing how
best to integrate the EVR assets into our climate transition strategy, recognising that the transition away from steelmaking coal for
steel production will be slower than thermal coal, as well as the limitations of existing technology to address Scope 3 emissions in the
steelmaking sector.
We recognise that to achieve our 2050 net zero industrial emissions ambition there is a need for significant global technological
evolution and advancement, and coordinated and supportive government policies, including incentives to drive accelerated uptake
of lower-carbon and decarbonisation technologies, and market-based regulations governing industrial practices that drive a
competitive, least-cost emissions reduction approach, most of which are not within our direct control or ability to materially influence
but are critical to our ability to achieve our net zero industrial emissions ambition by the end of 2050. Our long-term ambition is
therefore subject to such a supportive policy environment and, for that reason, we have expressed it as an ambition rather than a
target, which is more appropriate for activities and actions deemed within our direct control.
The accounting-related measurement and disclosure items that are most impacted by our commitments, and climate change risk
more generally, relate to those areas of the financial statements that are prepared under the historical cost convention and are
subject to estimation uncertainties in the medium to long term. Climate change impacts can also introduce more volatility in assets
and liabilities carried at fair value. Future changes to the Group’s climate change strategy or realisation of global decarbonisation
ambitions quicker than currently anticipated may impact some of the Group’s significant judgements and key estimates and result in
material changes to financial results and the carrying values of certain assets and liabilities in future reporting periods. The Group’s
current climate change strategy is reflected in the Group’s significant judgements and key estimates, and therefore the Financial
Statements, as follows:
(i) Property, plant and equipment and Intangible assets – estimation of the remaining useful economic life of assets for
depreciation and amortisation purposes
Property, plant and equipment and intangible assets are depreciated/amortised to estimated residual values over the estimated
useful lives of the specific assets concerned, or the estimated remaining life of the associated mine, field or lease, using a straight-line
or a units of production over recoverable reserves method. The estimated useful lives of our specific assets and/or operations (and
therefore the rate of depreciation/amortisation) aligns with our climate change commitments and ambition. Property, plant and
equipment and intangible assets policies are further covered below and within impairment and impairment reversal estimation
uncertainties, together with key estimates and sensitivities pertaining to a reasonably possible change in the realisation of global
decarbonisation ambitions, which could also change the useful economic lives of the related assets.
(ii) Restoration, rehabilitation and decommissioning provisions – estimation of the timing of closure and rehabilitation activities
A provision for future restoration, rehabilitation and decommissioning costs requires estimates and assumptions to be made around
the relevant regulatory framework, the magnitude of the possible disturbance and the timing, extent and costs of the required
closure and rehabilitation activities. Many of these rehabilitation and decommissioning events are expected to take place when the
underlying commercial reserves are extracted and the operations move into closure mode. Our current estimates of the timing of
these closure activities align with the trajectory of our industrial emissions reduction targets and ambition.
Sensitivities pertaining to a reasonably possible change in the realisation of global decarbonisation ambitions (i.e. the timing of the
restoration, rehabilitation and decommissioning costs) of our fossil fuel-related obligations are outlined below in the key estimation
uncertainty - restoration, rehabilitation and decommissioning costs.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
(iii) Property, plant and equipment and Intangible assets (including the carrying value of goodwill in our coal marketing CGU) –
estimation of the valuation of assets and potential impairment charges or reversals
The Group acknowledges that there is a wide range of possible energy transition scenarios, including those aligned with the Paris
Agreement goals, that would indicate different outcomes for individual commodities. The decarbonisation transition could result in
increasing or decreasing demand for the Group’s various commodities, due to policy, regulatory (including carbon pricing
mechanisms), legal, technological, market or societal responses to climate change. On the negative side, these may result in some or
all of a cash-generating unit’s reserves becoming uneconomic to extract and/or our coal marketing CGU no longer being able to
generate returns and realise the benefits of its associated goodwill balance.
We use actual carbon prices where they exist to assess the sensitivity of our industrial assets to possible future carbon prices in order
to assess the potential impacts on investment decisions as well as commodity-specific operating cost curves and related supply/
demand outcomes, arising from existing and future potential carbon pricing regulation. A key component of this analysis is to
understand the potential development of a range of underlying cost curve structures over time and to consider, identify and make
reasonable judgements, on the extent to which costs are likely to be passed onto the end user. Our analysis shows that under the
IEA’s NZE2050 scenario, marginal supply costs would increase by at least 10% to potentially over 60%, for the range of our most
relevant and material commodities. We expect the rising cost of carbon will increase operating costs, increasing the cost of
production, which, in turn, would ordinarily be passed on to end users through increased commodity prices. In fact, first and second
quartile (below average) emission intensity producers, where we see the weighted average of our portfolio residing, are likely to see
margin expansion.
Notwithstanding the above, for thermal coal and other fossil fuels, should global decarbonisation ambitions materialise along an
Announced Pledges scenario or other more ambitious net zero scenario, essentially an accelerated displacement of thermal coal and
other fossil fuels as an energy source, the potential impact on the current carrying value of these cash-generating units is outlined
below in the key estimation uncertainty – impairments and impairment reversals (Sensitivity to demand for fossil fuels). It should be
noted that, under accelerated emission reduction scenarios, we would expect to see positive valuation developments within our
industrial production portfolio exposed to the metals currently required to deliver such rapid decarbonisation scenarios, including
copper, nickel and cobalt.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions
are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable and relevant under the circumstances, independent estimates, quoted market prices and common
industry standard modelling techniques. Actual outcomes could result in a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
Glencore has identified the following areas as being critical to understanding Glencore’s financial position as they require
management to make complex and/or subjective judgements, estimates and assumptions about matters that are inherently
uncertain:
Critical accounting judgements
In the process of applying Glencore’s accounting policies, management has made the following judgements based on the relevant
facts and circumstances including macro-economic circumstances and, where applicable, interpretation of underlying agreements,
which have the most significant effect on the amounts recognised in the consolidated financial statements.
(i) Determination of control of subsidiaries and joint arrangements
Judgement is required to determine when Glencore has control of subsidiaries or joint control of joint or other unincorporated
arrangements. This requires an assessment of the relevant activities (those relating to the operating and capital decisions of the
arrangement, such as: the approval of the capital expenditure programme for each year, and appointing, remunerating
and terminating the key management personnel or service providers of the operations) and when the decisions in relation to those
activities are under the control of Glencore or require unanimous consent. See note 26 for a summary of the acquisitions of
subsidiaries completed during 2024 and 2023.
Judgement is also required in determining the classification of a joint arrangement between a joint venture or a joint operation
through an evaluation of the rights and obligations arising from the arrangement and in particular, if the joint arrangement has been
structured through a separate vehicle, further consideration is required of whether:
(1) the legal form of the separate vehicle gives the parties rights to the assets and obligations for the liabilities;
(2) the contractual terms and conditions give the parties rights to the assets and obligations for the liabilities; and
(3) other facts and circumstances give the parties rights to the assets and obligations for the liabilities.
Joint arrangements in which the primary activity is the provision of output to the shareholders, typically convey substantially all the
economic benefits of the assets to the parties and judgement is required in assessing whether the terms of the offtake agreements
and any other obligations for liabilities of the arrangement result in the parties being substantially the only source of cash flows
contributing to the continuity of the operations of the arrangement.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
Certain joint arrangements that are structured through separate vehicles including Collahuasi and Viterra are accounted for as joint
ventures. The investment in Viterra has been classified as an asset held for sale as at 31 December 2024 (see note 16). The Collahuasi
arrangement is primarily designed for the provision of output to the shareholders sharing joint control, the offtake terms of which are
at prevailing market prices and the parties are not obligated to cover any potential funding shortfalls. In management’s judgement,
Glencore is not the only possible source of funding and does not have a direct or indirect obligation to the liabilities of the
arrangement, but rather shares in its net assets and, therefore, such arrangements have been accounted for as joint ventures.
Differing conclusions around these judgements may materially impact how these businesses are presented in the consolidated
financial statements – under the full consolidation method, equity method or recognition of Glencore’s share of assets, liabilities,
revenue and expenses, including any assets or liabilities held jointly. See note 11 for a summary of these joint arrangements.
(ii) Classification of transactions which contain a financing element (notes 21, 22 and 25)
Transactions for the purchase of commodities may contain a financing element such as extended payment terms. Under such an
arrangement, a financial institution may issue a letter of credit on behalf of Glencore and act as the paying party upon delivery of
product by the supplier and Glencore will subsequently settle the liability directly with the financial institution, generally from 30 up to
90 days after physical supply. Judgement is required to determine the most appropriate classification and presentation of these
transactions within the statements of cash flows and financial position. In determining the appropriate classification, management
considers the underlying economic substance of the transaction and the significance of the financing element to the transaction.
Typically, the economic substance of the transaction is determined to be operating in nature where the financing element is
insignificant and the time frame in which the original arrangement is extended by is consistent and within supply terms commonly
provided in the market up to 90 days. As a result, the entire cash flow is presented as operating in the statement of cash flows with a
corresponding trade payable in the statement of financial position. As at 31 December 2024, all payments to suppliers were settled by
the financial institutions. Accordingly, trade payables include $7,472 million (2023: $6,860 million) of such US dollar denominated
liabilities owing to financial institutions, the weighted average of which extended settlement of the original payable to 78 days (2023:
77 days) after physical supply and are due for settlement 33 days (2023: 24 days) after year end. There was no significant exposure to
any individual financial institution under these arrangements. These payables are not included within net funding and net debt as
defined in the APMs section. Should the substance of the transaction be determined to be financing in nature, it is presented as
short-term borrowings and the resulting cash movements presented as financing in the statement of cash flows.
(iii) Classification of physical liquefied natural gas (LNG) purchase and sale contracts (notes 28 and 29)
Judgement is required to determine the appropriate classification of physical LNG purchase and sale contracts as being measured
within the scope of IFRS 9 at fair value through profit and loss or as executory contracts. This requires an assessment of whether the
contracts to buy or sell LNG (a non-financial item) can be settled net in cash or with another financial instrument, or by exchanging
financial instruments, as if the contracts were financial instruments, and whether there is a past practice of net settling similar
contracts. Those physical LNG contracts that can be net settled, and not entered into for own use, are considered to be derivatives,
measured at fair value through profit or loss (see notes 28 and 29). Contracts that do not meet the definition of derivatives are
considered own-use contracts and are accounted for as executory contracts. Differing conclusions around classification of these
contracts, may materially impact their presentation as financial assets or liabilities and any fair value adjustments recognised through
profit and loss. As at 31 December 2024, the net fair value of physical LNG contracts in the statement of financial position is $1,041
million (2023: $760 million), comprising a $1,085 million forward physical asset and a $44 forward physical liability (2023: $760 million
forward physical asset and $Nil forward physical liability). No physical LNG forward contracts were accounted for as executory
contracts.
(iv) Various legal claims against the company – Critical judgement in relation to whether a present obligation exists (note 32).
(v) Impact of carbon pricing
In determining accounting estimates such as the recoverable amount of non-current assets, the Group has largely assumed that
future increases in carbon costs will be reflected in commodity prices and therefore passed onto the end user - refer to climate
change-related considerations above. No material change to the Group’s related accounting estimates is expected within the next
financial year as a result of this judgement.
Key sources of estimation uncertainty
In the process of applying Glencore’s accounting policies, management has made key estimates and assumptions concerning the
future and other key sources of estimation uncertainty. The key assumptions and estimates at the reporting date that have a
significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year, are
described below. Actual results may differ from these estimates under different assumptions and conditions and may materially
affect financial results or the financial position reported in future periods.
(i) Recognition of deferred tax assets and uncertain tax positions (note 8)
Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an
assessment of when those deferred tax assets are likely to reverse, and a judgement as to whether there will be sufficient taxable
income available to offset the tax assets when they do reverse. These judgements and estimates are subject to risk and uncertainty
and therefore, to the extent assumptions regarding future profitability change, there can be a material increase or decrease in the
amounts recognised in the consolidated statement of financial position within the next financial year, specifically the deferred tax
asset and uncertain tax position of the Group’s DRC operations as outlined in note 8. The recoverability of the Group’s deferred tax
assets and the completeness and accuracy of its uncertain tax positions, including the estimates and assumptions contained therein
are reviewed regularly by management.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
(ii) Impairments and impairment reversals (note 7)
Investments in associates and joint ventures, advances and loans, property, plant and equipment and intangible assets are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying value of an individual asset or a cash-
generating unit (CGU) may not be fully recoverable, or at least annually for CGUs to which goodwill and other indefinite life intangible
assets have been allocated. Indicators of impairment may include changes in the Group’s operating and economic assumptions,
including those arising from changes in reserves or mine planning, updates to the Group’s commodity supply, demand and price
forecasts, or the possible impacts from emerging risks such as those related to climate change and the transition to a low-carbon
economy. If an asset or CGU’s recoverable amount is less than its carrying amount, an impairment loss is recognised in the
consolidated statement of income. For those assets or CGUs which were impaired in prior periods, if their recoverable amount
exceeds their carrying amount, an impairment reversal is recorded in the consolidated statement of income. Future cash flow
estimates which are used to calculate the asset’s or CGU’s recoverable amount are discounted using asset or CGU-specific discount
rates and are based on expectations about future operations (including their alignment with our emissions reduction targets and
long-term ambition), using a combination of internal sources and those inputs available to a market participant, which primarily
comprise estimates about production and sales volumes, commodity prices (considering current and future prices and price trends
including factors such as the current global trajectory of climate change), legally enacted carbon taxes, reserves and resources,
operating costs and capital expenditures. Estimates are reviewed regularly by management. Changes in such estimates and in
particular, deterioration in the commodity pricing outlook, could impact the recoverable amounts of these assets or CGUs, whereby
some or all of the carrying amount may be impaired or the impairment charge reversed (if pricing outlook improves significantly or
the service potential of the asset or CGU has otherwise increased from the time of the previous impairment) with the impact
recorded in the statement of income.
As referred to above and further described below in the ‘impairment or impairment reversals’ accounting policy, the Group carries
out, at least annually, an impairment assessment. Following this review, indicators of impairment or impairment reversal were
identified for various CGUs, including those due to changes in the underlying commodity price environment most influencing the
respective operation. The Group assessed the recoverable amounts of these CGUs and as at 31 December 2024, except for those CGUs
disclosed in note 7, the estimated recoverable amounts exceeded the carrying values. For certain CGUs where no impairment was
recognised, should there be a significant deterioration or improvement in the key assumptions, a material impairment or reversal
could result within the next financial year. A summary of the carrying values, the key/most sensitive assumptions and a sensitivity
impact of potential movements in these assumptions for each such CGU with limited headroom (relative to its estimated recoverable
amount) is shown below. In providing sensitivity analysis (and particularly on commodity price assumptions), a 10% change,
representing a typical deviation parameter common in the industry, has generally been provided. Where a higher or lower
percentage is reasonably possible on an operational assumption, this has been clearly identified.
Potential post-tax impairments/(reversal of impairments)
resulting from changes in key assumptions
US$ million
Capital
employed1
Discount
rate2
Short-to long-term
price assumptions
Decrease/(increase)
in price of 10%3
Increase/(decrease)
in discount rate of 1%
Cash-generating unit
KCC
3,298
14.2%
Cu: 9,500 - 8,730
1,084
–
270
–
Co4: 18,188 - 32,242
326
–
Mutanda
1,333
13.8%
Cu: 9,500 - 8,730
343
–
126
–
Co4: 18,188 - 32,242
309
–
Kazzinc – Smelting
1,127
12.1%
Zn: 2,578 - 2,750
170
(132) 5
127
(132) 5
Ferroalloys
587
9.5%
FeCr: 87-88
218
–
–
–
Cerrejon
1,198
10.4%
COL FOB: 93-91
653
–
35
–
Astron oil
1,008
8.2% Margin $/bbl: 12.4-11.9
293
(37) 5
114
(37) 5
1 Capital employed includes property, plant and equipment, non-current inventory, less rehabilitation provisions and net deferred tax liabilities.
2 Discount rates expressed on a real-terms, post-tax basis.
3 Across the curve.
4 Cobalt hydroxide price.
5 Illustrated impairment reversal capped at level of accumulated historical impairment, adjusted for notional depreciation since the impairment was charged.
In the case of Mutanda, the effect of the passage of time is significant, such that the upsides considered are assessed as unlikely to result in a reversal of
impairment in the next 12 months.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
Climate change (additional illustrative disclosures)
The disclosures in note 7 related to sensitivities to key assumptions for CGUs that have been impaired in the period, together with the
above disclosures related to CGUs with limited headroom, consider the effects of reasonably possible changes in key assumptions for
the next financial year.
All other sensitivities below are reasonably possible changes in assumptions beyond the next financial year, and are therefore not
considered key sources of estimation uncertainty at the reporting date.
Energy fossil fuels industrial operations
Our base case price assessment takes into account the short-, medium- and longer-term seaborne thermal coal demand outlook.
Achieving our net zero ambition by the end of 2050 assumes significant global technological evolution and advancement, and
coordinated and supportive government policies, including incentives to drive accelerated uptake of lower-carbon and
decarbonisation technologies, and market-based regulations governing industrial practices that drive a competitive, least-cost
emissions reduction approach, most of which are not within our direct control or ability to materially influence. In particular, economic
and regulatory incentivisation of such shift, whether through carbon pricing and/or incentives to drive accelerated uptake of lower-
carbon and decarbonisation technologies, could result in different financial results on the same tonnage profile.
Our assessment applies a value in use methodology. Glencore is not progressing thermal coal greenfield investments. However, we
plan to continue to progress selective brownfield coal extensions or expansions at existing mines as included in our life of mine plans,
while continuing to be a responsible steward of these assets, as we progress the phase-down of our global coal portfolio. We assume
that through the remaining life of mines, there will continue to be a market for thermal coal at a real Newcastle FOB export price of
$113/tonne (6,000 NAR), South African FOB export price of $95/tonne and Colombian FOB price of $91/tonne, which represents our
best current estimate of long-term pricing based on our view of projected likely supply and demand fundamentals and the industry
cost structure.
Notwithstanding these assumptions, we present illustrative impairments arising under alternate price scenarios. The 2024 price
sensitivities are informed by the IEA’s latest World Energy Outlook 2024 (WEO 2024) climate scenarios, described below:
• IEA’s Stated Policies Scenario (SPS) (WEO 2024 prices) – a pathway based on full implementation of current policy frameworks;
• IEA’s Announced Pledges Scenario (APS) (WEO 2024 prices) – a pathway based on implementation on time and in full of
governments’ announced policy pledges including commitments made in updated Nationally Determined Contributions;
• IEA’s Net Zero Emissions by 2050 Scenario (NZE) (WEO 2024 prices) – a pathway for the global energy sector to achieve net zero
emissions by 2050.
In addition, for illustrative purposes, we have shown a Complete Displacement Scenario (CDS) – reflecting the impact of fossil fuels
being immediately displaced as an energy source and the resulting immediate fall in commodity prices to zero.
Our life of mine planning reflects operating cash flows which are consistent with achieving our emissions reduction targets and
progression towards our 2050 net zero emissions ambition. Overall our industrial portfolio’s thermal coal production is heavily
weighted towards the earlier part of these time frames. Based on the life of mine plan and remaining thermal coal production as at 31
December 2024, we have illustrated this by showing the year in which 50% and 80% of saleable thermal coal would be expected to be
extracted under our current plans, being 2031 and 2037, respectively. If and while there is demand for coal, and it is economic to do so,
we plan to continue to operate our mines to the end of their economic life and in accordance with our climate commitments.
The sensitivities are presented on price alone and assume no mitigating actions; therefore the impairments in each scenario are likely
higher than would transpire. In practice, in a sustained low price environment, management would alter mine plans to cut operating
and capital costs, potentially at the expense of future volumes, in order to reduce the overall NPV impact.
The SPS, APS and NZE sensitivity prices adopted are those included in the documentation to WEO 2024, except that IEA thermal coal
prices are on a delivered basis. These have been adjusted to FOB pricing on the basis of forward freight costs. Furthermore, in
determining the Colombian FOB price, we have used a weighting of the IEA Japan and IEA European prices to take into account that
Colombian coal sold from Cerrejón is likely to be delivered to a combination of different markets in the future.
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Notes to the financial statements continued
1. Accounting policies continued
Cash-generating unit
US$ million
Thermal
Australia
South Africa
Cerrejón
Total
thermal
coal
Oil E&P
Base case assumptions in life of mine plan:
– LOM saleable tonnes (Glencore consolidated) (million tonnes)
/ (million bbls)
860
290
190
20
– projected year when 50% LOM tonnage / reserves depleted
2031
2032
2029
2031
2028
– projected year when 80% LOM tonnage / reserves depleted
2039
2037
2031
2037
2030
– long-term price (Newcastle FOB / API4 FOB / Col FOB) ($/t) /
(Brent oil price) ($/bbl) (real terms)
113
95
91
70
– discount rate applied (ranges represent opencut /
underground)
8.4-9.2%
9.7%
10.4%
10.0%
Benchmark prices over LOM in selected scenarios ($/t, $/bbl):
2024 - '30 - '50 2024 - '30 - '50 2024 - '30 - '50
2024 - '30
– IEA SPS
139 - 94 -69
111 - 83 - 58
109 - 70 - 56
75 - 83
– IEA APS
139 - 69 - 47
111 - 59 - 36
109 - 66 - 39
75 - 76
– IEA NZE
139 - 53 - 34
111 - 44 - 23
109 - 58 - 30
75 - 44
– CDS
n.a.
n.a.
n.a.
n.a.
Carrying value of non-current capital employed as at 31
December 2024
6,447
1,294
1,198
8,939
41
Impairment arising in selected scenarios:
– IEA SPS
–
550
360
910
–
– IEA APS
2,700
1,294
630
4,624
–
– IEA NZE
5,600
1,294
1,000
7,894
41
– CDS1
8,004
1,414
2,299
11,717
133
Breakdown of non-current capital employed as at 31
December 2024:
Property, plant and equipment and intangible assets
8,278
1,781
2,464
12,523
140
Investments in associates and other investments
498
31
–
529
–
Deferred tax liabilities
(772)
(398)
(165)
(1,335)
(7)
Non-current provisions
(1,457)
(240)
(1,125)
(2,822)
(92)
Other non-current net assets/(liabilities)
(100)
120
24
44
–
1 In this scenario, we assume the impairment of non-current assets (net of deferred tax) while non-current liabilities, including rehabilitation, would be
retained on balance sheet.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
Other fossil fuel-related capital employed NPV sensitivities
Cash-generating unit
US$ million
Australian
steelmaking coal
Canadian
steelmaking coal Astron Energy
Coal
marketing
goodwill
Base case assumptions in life of asset plan:
– LOA saleable tonnes (millions) / Refinery steady-state capacity
(bbls)
81
850
100k bopd
n.a.
– projected year when 50% LOA reserves depleted
2029
2040
n.a.
n.a.
– projected year when 80% LOA reserves depleted
2032
2052
n.a.
n.a.
– long-term price (hard coking coal) ($/t) (real terms) / Refining
margin $/bbl
235
235
12.4 - 11.9
n.a.
– discount rate applied (ranges represent opencut/underground)
8.4-9.2%
8.3%
8.2%
n.a.
– price to earnings multiple
10x
Decrease to long-term pricing/PE multiples:
– $20/t price / $1/bbl refining margin / 2x PE (20%) decrease
215
215
n.a.
8x
– $40/t price / $2/bbl refining margin / 4x PE (40%) decrease
195
195
n.a.
6x
Carrying value of non-current capital employed as at 31
December 2024
1,547
8,709
1,008
1,674
Impairment arising in selected scenarios:
– $20/t price decrease across the curve / $1/bbl refining margin /
2x PE (20%) decrease
–
650
260
–
– $40/t price decrease across the curve / $2/bbl refining margin /
4x PE (40%) decrease
–
4,100
510
–
Breakdown of non-current capital employed as at 31 December
2024:
Property, plant and equipment and intangible assets
1,946
13,328
1,044
1,674
Investments in associates and other investments
3
–
2
–
Deferred tax liabilities
(47)
(2,562)
(11)
–
Non-current provisions
(355)
(2,169)
(4)
–
Other non-current net assets
–
112
(23)
–
Climate change – property, plant and equipment and intangible assets – estimation of the remaining useful economic life of
assets for depreciation and amortisation purposes
Property, plant and equipment and intangible assets are depreciated/amortised to estimated residual values over the estimated
useful lives of the specific assets concerned, or the estimated remaining life of the associated mine, field or lease, using a straight-line
or a units of production over recoverable reserves method. The estimated useful lives of our specific assets and/or operations (and
therefore the rate of depreciation/amortisation) aligns with, and reflects, our emissions reduction commitments and ambition. The
current carrying value of our property, plant and equipment and intangible assets related to our fossil fuels operations is $28,980
million, and the depreciation/amortisation related to these balances recognised in 2024 was $2,672 million, implying an average
accounting-determined useful life of c.10 years.
(iii) Restoration, rehabilitation and decommissioning costs (note 23)
A provision for future restoration, rehabilitation and decommissioning costs requires estimates and assumptions to be made around
the relevant regulatory framework, the magnitude of the possible disturbance and the timing, extent and costs of the required
closure and rehabilitation activities. Most of these rehabilitation and decommissioning events are expected to take place many years
in the future and the currently estimated requirements and costs that will have to be met when the restoration events occur are
inherently uncertain and could materially change over time.
In calculating the appropriate provision for the expected restoration, rehabilitation and/or decommissioning obligations, cost
estimates of the future potential cash outflows based on current studies of the expected rehabilitation activities and timing thereof,
are prepared. These forecasts are then discounted to their present value using a risk-free rate specific to the liability and the functional
currency of the respective operation.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
Any changes in the risk-free rate or expected future costs are initially reflected in both the provision and the asset and subsequently in
the consolidated statement of income over the remaining economic life of the asset. A material change in the provision within the
next financial year could arise from changes in risk-free rates, refer to the sensitivity analysis in note 23. As the actual future costs can
differ from the estimates due to changes in laws, regulations, technology, costs and timing, the provisions, including the estimates
and assumptions contained therein, are reviewed regularly by management. The aggregate effect of changes within the next
financial year as a result of revisions to cost and timing assumptions could be material. It is impracticable to disclose the extent of
possible effects of a change in cost and timing assumptions as the assumptions are specific to individual assets.
Climate change sensitivities
As noted above, while it is not a reasonably possible change we expect over the next financial year, global ambitions seeking to drive
quicker decarbonisation could result in the timing of restoration, rehabilitation and decommissioning costs related to our coal and oil
closure obligations being accelerated. As at 31 December 2024, the non-current rehabilitation provision related to our coal and oil
operations is $9,312 million (undiscounted) and $5,965 million (current carrying value). The weighted average maturity is 27 years.
The portion related to operating energy coal mines is $3,836 million (undiscounted) and $2,694 million (discounted). The weighted
average maturity is 11 years. To illustrate the effect of quicker decarbonisation, a three-year and five-year weighted average
acceleration of energy coal mines rehabilitation, with no changes to the total undiscounted cash flows, would result in an increase to
the provision of $188 million and $306 million, respectively.
(iv) Valuation of Level 3 derivatives related to LNG contracts (note 29)
Adoption of new and revised standards
The following clarification revisions to existing accounting pronouncements became effective as of 1 January 2024 and have been
adopted by the Group.
(i) Classification of Liabilities as current or non-current (Amendments to IAS 1)
The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end
of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer
settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and
introduce a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity
instruments, other assets or services.
(ii) Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
The amendments require an entity to provide additional disclosures about its supplier finance arrangements which enable users of
financial statements to assess how supplier finance arrangements affect an entity’s liabilities and cash flows and to understand the
effect of supplier finance arrangements on an entity’s exposure to liquidity risk and how the entity might be affected if the
arrangements were no longer available to it.
(iii) Non-current Liabilities with Covenants (Amendments to IAS 1)
The amendments specify that only covenants that an entity is required to comply with on or before the end of the reporting period
affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date.
(iv) Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
The amendments to IFRS 16 add subsequent measurement requirements for sale and leaseback transactions that satisfy the
requirements in IFRS 15 Revenue from Contracts with Customers to be accounted for as a sale.
These amendments did not have a material impact on the Group.
(v) International Tax Reform – Pillar Two Model Rules – effective for year ends beginning on or after 1 January 2024
IAS 12 - Income Taxes was amended and requires entities during the period between the legislation being enacted or substantively
enacted and the legislation becoming effective to disclose known or reasonable estimable information to their exposure to Pillar Two
income taxes.
Glencore is within the scope of the Organisation for Economic Co-operation and Development (OECD) Pillar Two model rules. The
Group operates in several jurisdictions where Pillar Two Rules have been enacted, or substantively enacted. In Switzerland, the
jurisdiction in which the ultimate parent company is tax-resident, a gradual implementation of Pillar Two is taking place with the
introduction of a Qualifying Domestic Top-up Tax effective from 1 January 2024 as well as the Income Inclusion Rule (IIR) effective
from 1 January 2025. As provided in the amendments to IAS 12, Glencore applies the mandatory exception to recognising and
disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
Under the Pillar Two Rules, the Group is liable to pay a top-up tax for the difference between its Global Anti-Base Erosion (GloBE)
effective tax rate per jurisdiction and the 15% minimum tax rate. The Group operates in some jurisdictions with a nominal tax rate
below 15% and has assessed the quantitative impact of the enacted or substantively enacted legislation as resulting in a non-
significant exposure to GloBE top-up tax.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
New and revised standards not yet effective
At the date of the authorisation of these consolidated financial statements, the following new and revised IFRS, which are applicable
to Glencore, were issued but not yet effective:
(i) Lack of Foreign Currency Exchangeability (Amendments to IAS 21) – effective for year ends beginning on or after 1 January 2025
The amendments require an entity to apply a consistent approach to assessing whether a currency is exchangeable into another
currency and, when it is not, to determining the exchange rate to use and the disclosures to provide.
No significant changes to presentation, disclosures or measurements within these financial statements are expected following the
adoption of this amendment.
(ii) IFRS 18 Presentation and Disclosure in Financial Statements – effective for year ends beginning on or after 1 January 2027
IFRS 18 replaces IAS 1 Presentation of Financial Statements, carrying forward many of the requirements in IAS 1 unchanged and
complementing them with new requirements. IFRS 18 introduces new requirements for the classification and presentation in the
statement of profit and loss, disclosures on management-defined performance measures in the notes to financial statements and
aggregation and disaggregation of information presented in the primary financial statements or disclosed in the notes.
The Company anticipates that the application of the new standard may have an impact on certain presentational and disclosure
related matters in the Group's consolidated financial statements in future periods.
Basis of preparation
The consolidated financial statements are prepared under the historical cost convention except for certain financial assets, liabilities,
marketing inventories and pension obligations that are measured at revalued amounts or fair values at the end of each reporting
period as explained in the accounting policies below. Historical cost is defined as the amount of cash or cash equivalents paid or the
fair value of the consideration given to acquire them at the time of their acquisition. The principal accounting policies adopted are set
out below.
The Directors have assessed that they have, at the time of approving these consolidated financial statements, a reasonable
expectation that the Group has adequate resources to continue in operational existence for the 12 months from the expected date of
approval of the 2024 Annual Report and Accounts. Therefore, they continue to adopt the going concern basis of accounting in
preparing these financial statements. The Directors have made this assessment after consideration of the Group’s capital
commitments, budgeted cash flows and related assumptions including appropriate stress testing of the identified uncertainties
(being primarily commodity prices and currency exchange rates) and access to undrawn credit facilities and monitoring of debt
maturities. Further information on Glencore’s objectives, policies and processes for managing its capital and financial risks is detailed
in note 27.
All amounts are expressed in millions of United States dollars, the presentation currency of the Group, unless otherwise stated.
Principles of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company
and its subsidiaries.
Control is achieved when Glencore is exposed, or has rights, to variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the investee. Specifically, Glencore controls an investee if, and only if, Glencore
has all of the following:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement with the investee; and
• The ability to use its power over the investee to affect its returns.
When Glencore has less than a majority of the voting rights of an investee or similar rights of an investee, it considers all relevant facts
and circumstances in assessing whether it has power over the investee including:
• The size of Glencore’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
• Potential voting rights held by Glencore, other vote holders or other parties;
• Rights arising from other contractual arrangements; and
• Any additional facts and circumstances that indicate that Glencore has, or does not have, the current ability to direct the relevant
activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control listed above. Consolidation of a subsidiary begins when Glencore obtains control over the
subsidiary and ceases when Glencore loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statement of income and other comprehensive income from the date
Glencore gains control until the date when Glencore ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-
controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-
controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with
the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
Changes in Glencore’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions with any
difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid
or received being recognised directly in equity and attributed to equity holders of Glencore.
When Glencore loses control of a subsidiary, a gain or loss is recognised in the consolidated statement of income and is calculated as
the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and
(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if Glencore had
directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of
equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when
control is lost is regarded as the fair value on initial recognition for subsequent accounting under IFRS 9, when applicable, or the cost
on the initial recognition of an investment in an associate or a joint venture.
Investments in associates and joint ventures
Associates and joint ventures (together ‘Associates’) in which Glencore exercises significant influence or joint control are accounted for
using the equity method. Significant influence is the power to participate in the financial and operating policy decisions of the
investee but is not control or joint control over those policies. Significant influence is presumed if Glencore holds between 20% and
50% of the voting rights, unless evidence exists to the contrary. A joint venture is a joint arrangement whereby the parties that have
joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed
sharing of control over an arrangement, which exists only when decisions about relevant strategic and/or key operating decisions
require unanimous consent of the parties sharing control.
Equity accounting involves Glencore recording its share of the Associate’s net income and equity. Glencore’s interest in an Associate is
initially recorded at cost and is subsequently adjusted for Glencore’s share of changes in net assets of the Associate, less any
impairment in the value of individual investments. Where Glencore transacts with an Associate, unrealised profits and losses are
eliminated to the extent of Glencore’s interest in that Associate.
Changes in Glencore’s interests in Associates are accounted for as a gain or loss on disposal with any difference between the amount
by which the carrying value of the Associate is adjusted and the fair value of the consideration received being recognised directly in
the consolidated statement of income.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement, have rights to the assets and
obligations for the liabilities relating to the arrangement.
When Glencore undertakes its activities under joint operations, Glencore recognises in relation to its interest in a joint operation:
• Its assets, including its share of any assets held jointly;
• Its liabilities, including its share of any liabilities incurred jointly;
• Its revenue from the sale of its share of the output arising from the joint operation;
• Its share of the revenue from the sale of the output by the joint operation; and
• Its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the
IFRSs applicable to the particular assets, liabilities, revenues and expenses.
Where Glencore transacts with a joint operation, unrealised profits and losses are eliminated to the extent of Glencore’s interest
in that joint operation.
Other unincorporated arrangements
In some cases, Glencore participates in unincorporated arrangements where it has the rights to its share of the assets and obligations
for its share of the liabilities of the arrangement, rather than a right to the net returns of the arrangement, but does not share joint
control. In such cases, Glencore accounts for its share of the assets, liabilities, revenues and expenses in accordance with the IFRSs
applicable to the particular assets, liabilities, revenues and expenses and obligations for the liabilities relating to the arrangement,
similar to a joint operation noted above.
Business combinations and goodwill
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method of accounting. The cost of the acquisition
is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets transferred, liabilities incurred
to the former owners of the acquiree and the equity interests issued in exchange for control of the acquiree. The identifiable assets,
liabilities and contingent liabilities (‘identifiable net assets’) are recognised at their fair value at the date of acquisition. Acquisition-
related costs are recognised in the consolidated statement of income as incurred.
Where a business combination is achieved in stages, Glencore’s previously held interests in the acquired entity are remeasured to fair
value at the acquisition date (i.e. the date Glencore attains control) and the resulting gain or loss, if any, is recognised in the
consolidated statement of income.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the
acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date
amounts of the identifiable assets acquired and the liabilities assumed.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing,
goodwill acquired in a business combination is, from the acquisition date, allocated to the CGUs that are expected to benefit from the
synergies of the combination. CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently
when there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the
impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of
the unit pro-rata based on the carrying amount of each asset in the unit.
Any impairment loss is recognised directly in profit or loss. An impairment loss recognised for goodwill is not able to be reversed in
subsequent periods.
On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs,
Glencore reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted
for additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date)
about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognised at
that date.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net
assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share
of the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-
transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in
another IFRS.
Similar procedures are applied in accounting for the purchases of interests in Associates and joint operations. Any goodwill arising
from such purchases is included within the carrying amount of the investment in Associates, but not amortised thereafter. Any excess
of Glencore’s share of the net fair value of the Associate’s identifiable net assets over the cost of the investment is included in the
consolidated statement of income in the period of the purchase.
Non-current assets held for sale and disposal groups
Non-current assets, liabilities and those included in disposal groups are classified as held for sale if their carrying amount will
be recovered principally through a sale transaction rather than through continuing use, they are available for immediate disposal and
the sale is highly probable. Non-current assets, liabilities and those included in disposal groups held for sale are measured at the lower
of their carrying amount or fair value less costs to sell.
Revenue recognition
Revenue is derived principally from the sale of goods (sale of commodities) and in some instances the goods are sold on Cost and
Freight (CFR) or Cost, Insurance and Freight (CIF) Incoterms. When goods are sold on a CFR or CIF basis, the Group is responsible for
providing these services (shipping and insurance) to the customer, sometimes after the date at which Glencore has lost control of the
goods. Revenue is recognised when the performance obligations have been satisfied, which is once control of the goods and/or
services has transferred from Glencore to the buyer. Revenue is measured based on consideration specified in the contract with a
customer and excludes amounts collected on behalf of third parties. The same recognition and presentation principles apply to
revenues arising from physical settlement of forward sale contracts that do not meet the own-use exemption.
Revenue related to the sale of goods is recognised when the product is delivered to the destination specified by the customer, which
is typically the vessel on which it is shipped, the destination port or the customer’s premises and the buyer has gained control
through their ability to direct the use of and obtain substantially all the benefits from the asset. Where the sale of goods is connected
with an agreement to repurchase goods at a later date, revenue is recognised when the purchase terms are at prevailing market
prices, the goods repurchased are readily available in the market, and the buyer gained control of the goods originally sold to them.
Should it be determined that control has not transferred or the buyer does not have the ability to benefit substantially from
ownership of the asset, revenue is not recognised and any proceeds received are accounted for as a financing arrangement.
For certain commodities, the sales price is determined on a provisional basis at the date of sale as the final selling price is subject
to movements in market prices up to the date of final pricing, normally ranging from 30 to 90 days after initial booking (provisionally
priced sales). Revenue on provisionally priced sales is recognised based on the estimated fair value of the total consideration
receivable. The revenue adjustment mechanism embedded within provisionally priced sales arrangements has the character of a
commodity derivative.
Accordingly, the fair value of the final sales price adjustment is re-estimated continuously and changes in fair value are recognised as
an adjustment to revenue. In all cases, fair value is estimated by reference to forward market prices.
Revenue from the sale of material by-products are included within revenue. Where a by-product is not regarded as significant,
revenue may be credited against cost of goods sold.
Revenue related to the provision of shipping and insurance-related activities is recognised over time as the service is rendered.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
Payments received for future metal (primarily gold and silver) deliveries (prepayments) are accounted for as executory contracts
whereby the prepayment is initially recorded as deferred revenue in the consolidated statement of financial position. The initial
deferred revenue amount is unwound and revenue is recognised in the consolidated statement of income as and when Glencore
physically delivers the metal and loses control of it. Where these prepayments are in excess of one year and contain a significant
financing component, the amount of the deferred revenue is adjusted for the effects of the time value of money. Glencore applies the
practical expedient to not adjust the promised amount of consideration for the effects of time value of money if the period between
delivery and the respective payment is one year or less.
Interest income is recognised using the effective interest method for debt instruments measured at amortised cost and at FVTOCI.
For financial assets, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial
asset. For credit-impaired financial assets, interest income is calculated on the net carrying amount of the financial asset.
Dividend income is recognised when the right to receive payment is established, typically when the shareholder's entitlement to the
dividend is confirmed.
Foreign currency translation
Glencore’s reporting currency and the functional currency of the majority of its operations is the US dollar as this is assessed to be the
principal currency of the economic environment in which it operates.
(i) Foreign currency transactions
Transactions in foreign currencies are converted into the functional currency of each entity using the exchange rate prevailing at the
transaction date. Monetary assets and liabilities outstanding at year end are converted at year-end rates. Non-monetary items
measured in terms of historical cost are translated using the exchange rate at the date of the transaction. The resulting exchange
differences are recorded in the consolidated statement of income.
(ii) Translation of financial statements
For the purposes of consolidation, assets and liabilities of Group companies whose functional currency is in a currency other than the
US dollar are translated into US dollars using year-end exchange rates, while their statements of income are translated using average
rates of exchange for the year. Translation adjustments are included as a separate component of shareholders’ equity and have no
consolidated statement of income impact to the extent that no disposal of the foreign operation has occurred. Where an intragroup
balance is, in substance, part of the Group’s net investment in an entity, exchange gains and losses on that balance are taken to the
currency translation reserve. Cumulative translation differences are recycled from equity and recognised as income or expense on
partial disposal of the net investment in an entity, which includes repayments of capital and loans. On such partial disposals, when the
Group’s percentage of equity ownerships do not change, the ‘absolute’ approach is applied. Under this approach, the amounts held in
the foreign currency translation reserve are reclassified to income or expense based on the proportionate share of total cumulative
translation differences recognised in the net investment.
Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated as assets and liabilities of the
foreign operation and are translated at the closing rate.
Borrowing costs
Borrowing costs are expensed as incurred except where they relate to the financing of construction or development of qualifying
assets in which case they are capitalised up to the date when the qualifying asset is ready for its intended use.
Employee and retirement benefits
Wages, salaries, bonuses, social security contributions, paid annual and sick leave are accrued in the period in which the associated
services are rendered by the employees of the Group.
Glencore operates various pension schemes in accordance with local requirements and practices of the respective countries. The
annual costs for defined contribution plans that are funded by payments to separate trustee administered funds or insurance
companies equal the contributions that are required under the plans and accounted for as an expense.
For defined benefit retirement plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at the end of each annual reporting period. Remeasurements comprising actuarial gains and
losses, the effect of the asset ceiling (if applicable) and the return on plan assets (excluding interest) are recognised immediately in the
statement of financial position with a charge or credit to other comprehensive income in the period in which they occur.
Remeasurements recognised in other comprehensive income are not reclassified. Past service cost is recognised in profit or loss
when the plan amendment or curtailment occurs, or when the Group recognises related restructuring costs or termination benefits,
if earlier. Gains or losses on settlement of a defined benefit plan are recognised when the settlement occurs. Net interest is calculated
by applying a discount rate to the net defined benefit liability or asset.
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Additional Information
Notes to the financial statements continued
1. Accounting policies continued
Defined benefit costs are split into three categories:
• service costs, which includes current service cost, past service cost and gains and losses on curtailments and settlements;
• net interest expense or income; and
• remeasurements.
The Group recognises service costs within the consolidated statement of income.
Net interest expense or income is recognised within interest expense or income within the consolidated statement of income.
Any past service cost (or the gain or loss on settlement) is calculated by measuring the defined benefit liability (asset) using updated
assumptions and comparing benefits offered and plan assets before and after the plan amendment (or curtailment or settlement)
but ignoring the effect of the asset ceiling, that may arise when the defined benefit plan is in a surplus position. The Group uses the
updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the reporting
period after the change to the plan. In the case of the net interest for the period post-plan amendment, the net interest is calculated
by multiplying the net defined benefit liability (asset) as remeasured with the discount rate used in the remeasurement, also taking
into account the effect of contributions and benefit payments on the net defined benefit liability (asset).
The retirement benefit obligation recognised in the consolidated statement of financial position represents the deficit or surplus in
the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.
Glencore also provides post-retirement healthcare benefits to certain employees in Canada, South Africa and the United States. These
are accounted for in a similar manner to the defined benefit pension plans, however, are unfunded.
Share-based payments
(i) Equity-settled share-based payments
Equity-settled share-based payments are measured at the fair value of the awards based on the market value of the shares at the
grant date. Fair value excludes the effect of non-market-based vesting conditions. The fair value is charged to the consolidated
statement of income and credited to retained earnings on a straight-line basis over the period the estimated awards are expected
to vest.
At each balance sheet date, the Company revises its estimate of the number of equity instruments expected to vest as a result of the
effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised in the
consolidated statement of income such that the cumulative expense reflects the revised estimate, with a corresponding adjustment
to retained earnings.
(ii) Cash-settled share-based payments
For cash-settled share-based payments, a liability is initially recognised at fair value based on the estimated number of awards that
are expected to vest, adjusting for market and non-market-based performance conditions. Subsequently, at each reporting period
until the liability is settled, it is remeasured to fair value with any changes in fair value recognised in the consolidated statement
of income.
Income taxes
Income taxes consist of current and deferred income taxes. Current taxes represent income taxes expected to be payable based on
enacted or substantively enacted tax rates at the period end on expected current taxable income, and any adjustment to tax payable
in respect of previous years. Deferred taxes are recognised for temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable income, using enacted
or substantively enacted income tax rates which are expected to be effective at the time of reversal of the underlying temporary
difference. Deferred tax assets and unused tax losses are only recognised to the extent that their recoverability is probable. Deferred
tax assets are reviewed at reporting period end and amended to the extent that it is no longer probable that the related benefit will
be realised. To the extent that a deferred tax asset not previously recognised subsequently fulfils the criteria for recognition, an asset is
then recognised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same authority and Glencore has both the
right and the intention to settle its current tax assets and liabilities on a net or simultaneous basis. The tax effect of certain temporary
differences is not recognised principally with respect to the initial recognition of an asset or liability (other than those arising in
a business combination or in a manner that initially impacted accounting or taxable profit) and temporary differences relating
to investments in subsidiaries and Associates to the extent that Glencore can control the timing of the reversal of the temporary
difference and it is probable the temporary difference will not reverse in the foreseeable future. Deferred tax is provided in respect
of fair value adjustments on acquisitions. These adjustments may relate to assets such as extraction rights that, in general, are not
eligible for income tax allowances.
Current and deferred tax are recognised as an expense or income in the consolidated statement of income, except when they relate
to items that are recognised outside the consolidated statement of income (whether in other comprehensive income or directly in
equity) or where they arise from the initial accounting for a business combination.
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1. Accounting policies continued
Royalties, extraction taxes and other levies/taxes are treated as taxation arrangements when they have the characteristics of an
income tax, including being imposed and determined in accordance with regulations established by the respective government’s
taxation authority and the amount payable is based on taxable income – rather than physical quantities produced or as a percentage
of revenues – after adjustment for temporary differences. For such arrangements, current and deferred tax is provided on the same
basis as described above for other forms of taxation. Obligations arising from royalty arrangements that do not satisfy these criteria
are recognised as current provisions and included in cost of goods sold.
Glencore assesses its liabilities and contingencies for all tax years open to audit based upon the latest information available. Inherent
uncertainties exist in estimates of tax contingencies due to complexities of interpretation and changes in tax laws. For those matters
where it is probable that an adjustment will be made, the Group records its best estimate of these tax liabilities, including related
interest charges. Where the amount of tax payable or recoverable is uncertain, due to local tax authority challenges or uncertainty
regarding the appropriate treatment, judgement is required to assess the range of possible outcomes. In accordance with IFRIC 23, if
it is not probable that the treatment will be accepted, the Group accounts for uncertain tax provisions for all matters worldwide based
on the Group’s judgement of the most likely amount of the liability or recovery, or where there is a wide range of possible outcomes,
using the probability-weighted average approach. Generally, uncertain tax treatments are assessed on an individual basis, except
where they are expected to be settled collectively. A change in estimate of the likelihood of a future outflow and/or in the expected
amount to be settled is recognised in the statement of income in the period in which the change occurs. This requires application of
judgement as to the possible outcome, which can change over time depending on facts and circumstances.
Property, plant and equipment
Property, plant and equipment are stated at cost, being the fair value of the consideration given to acquire or construct the asset,
including directly attributable costs required to bring the asset to the location or to a condition necessary for operation and the direct
cost of dismantling and removing the asset, less accumulated depreciation and any accumulated impairment losses.
Property, plant and equipment are depreciated to their estimated residual value over the estimated useful life of the specific asset
concerned, or the estimated remaining life of the associated mine, field or lease.
Depreciation commences when the asset is available for use. The major categories of property, plant and equipment are
depreciated/amortised on a units of production (UOP) and/or straight-line basis as follows:
Buildings
10 – 45 years
Freehold land
not depreciated
Plant and equipment
3 – 30 years/UOP
Right-of-use assets
2 – 20 years
Mineral and petroleum rights
UOP
Deferred mining costs
UOP
(i) Mineral and petroleum rights
Mineral and petroleum reserves, resources and rights (together ‘Mineral and petroleum rights’) which can be reasonably valued,
are recognised in the assessment of fair values on acquisition. Mineral and petroleum rights for which values cannot be reasonably
determined are not recognised. Exploitable Mineral and petroleum rights are amortised using the UOP basis over the commercially
recoverable reserves and, in certain circumstances, other mineral resources. Mineral resources are included in amortisation
calculations where there is a high degree of confidence that they will be extracted in an economic manner.
(ii) Exploration and evaluation expenditure
Exploration and evaluation expenditure relates to costs incurred in the exploration and evaluation of potential mineral and petroleum
resources and includes costs such as exploration and production licences, researching and analysing historical exploration data,
exploratory drilling, trenching, sampling and the costs of pre-feasibility studies. Exploration and evaluation expenditure for each area
of interest, other than that acquired from another entity, is charged to the consolidated statement of income as incurred except
when the expenditure is expected to be recouped from future exploitation or sale of the area of interest and it is planned to continue
with active and significant operations in relation to the area, or at the reporting period end, the activity has not reached a stage which
permits a reasonable assessment of the existence of commercially recoverable reserves, in which case the expenditure is capitalised.
As the intangible component (i.e. licences) represents an insignificant and indistinguishable portion of the overall expected tangible
amount to be incurred and recouped from future exploitation, these costs along with other capitalised exploration and evaluation
expenditure are recorded as a component of property, plant and equipment. Purchased exploration and evaluation assets are
recognised at their fair value at acquisition.
As the capitalised exploration and evaluation expenditure asset is not available for use, it is not depreciated. All capitalised exploration
and evaluation expenditure is monitored for indications of impairment. Where a potential impairment is indicated, an assessment is
performed for each area of interest or at the CGU level. To the extent that capitalised expenditure is not expected to be recovered it is
charged to the consolidated statement of income.
Administration costs that are not directly attributable to a specific exploration area are charged to the consolidated statement of
income.
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1. Accounting policies continued
Development expenditure
When commercially recoverable reserves are determined and such proposed development receives the appropriate approvals,
capitalised exploration and evaluation expenditure is transferred to construction in progress, a component within the plant and
equipment asset sub-category. All subsequent development expenditure is similarly capitalised, provided commercial viability
conditions continue to be satisfied.
Proceeds from the sale of product extracted during the development phase are recognised in the statement of income. Upon
completion of development and commencement of production, capitalised development costs are further transferred, as required, to
the appropriate plant and equipment asset category and depreciated using the unit of production method (UOP) or straight-line
basis.
(iii) Deferred mining costs
Mainly comprises certain capitalised costs related to underground mining as well as pre-production and in-production stripping
activities as outlined below. Deferred mining costs are amortised using the UOP basis over the life of the ore body to which those
costs relate.
Deferred stripping costs
Stripping costs incurred in the development of a mine (or pit) before production commences are capitalised as part of the cost of
constructing the mine (or pit) and subsequently amortised over the life of the mine (or pit) on a UOP basis.
In-production stripping costs incurred to access an identifiable component of the ore body to realise benefits in the form of improved
access to ore to be mined in the future (stripping activity asset), are capitalised within deferred mining costs provided all the following
conditions are met:
(a) it is probable that the future economic benefit associated with the stripping activity will be realised;
(b) the component of the ore body for which access has been improved can be identified; and
(c) the costs relating to the stripping activity associated with the improved access can be reliably measured.
If all of the criteria are not met, the production stripping costs are charged to the consolidated statement of income as they are
incurred.
The stripping activity asset is subsequently depreciated on a UOP basis over the life of the identified component of the ore body that
became more accessible as a result of the stripping activity and is then stated at cost less accumulated depreciation and any
accumulated impairment losses.
Leases
As lessee, the Group assesses whether a contract contains a lease at inception of the contract. The Group recognises a right-of-use
asset and corresponding lease liability in the statement of financial position for all lease arrangements where it is the lessee, except for
short-term leases with a term of 12 months or less and leases of low-value assets. For these leases, the Group recognises the lease
payments as an operating expense on a straight-line basis over the term of the lease.
The lease liability is initially measured at the present value of the future lease payments from the commencement date of the lease.
The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, the asset and company-
specific incremental borrowing rates. Lease liabilities are recognised within borrowings on the statement of financial position. The
lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective
interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability,
with a corresponding adjustment to the related right-of-use assets, whenever:
• The lease term changes or there is a significant event or change in circumstances resulting in a change in the assessment of
exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a
revised discount rate;
• The lease payments change due to the changes in an index or rate or a change in expected payment under a guaranteed residual
value, in which case the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate;
or
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is
remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate
at the effective date of modification.
The right-of-use assets are initially recognised on the balance sheet at cost, which comprises the amount of the initial measurement
of the corresponding lease liability, adjusted for any lease payments made at or prior to the commencement date of the lease, any
lease incentive received and any initial direct costs incurred, and expected costs for obligations to dismantle and remove right-of-use
assets when they are no longer used. Right-of-use assets are recognised within property, plant and equipment on the statement of
financial position. Right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease over the
shorter of the useful life of the right-of-use asset or the end of the lease term.
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Notes to the financial statements continued
1. Accounting policies continued
The Group enters into lease arrangements as a lessor with respect to some of its time charter vessels. Leases for which the Group is an
intermediate lessor are classified as finance or operating leases by reference to the right-of-use asset arising from the head lease.
Income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Amounts due from lessees
under finance leases are recognised as receivables at the amount of the Group’s net investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in
respect of these leases.
Restoration, rehabilitation and decommissioning
Restoration, rehabilitation and decommissioning costs arising from the installation of plant and other site preparation work,
discounted using a risk-free rate specific to the liability and the currency in which they are denominated to their net present value, are
provided for and capitalised at the time such an obligation arises. Capitalised costs are charged to the consolidated statement of
income over the life of the operation through depreciation of the asset together with the unwinding of the discount on the provision.
Costs for restoration of subsequent site disturbance, which is created on an ongoing basis during production, are provided for at their
net present values and charged to the consolidated statement of income as extraction progresses.
Changes in the estimated timing of the rehabilitation or changes to the estimated future costs are accounted for prospectively by
recognising an adjustment to the rehabilitation liability and a corresponding adjustment to the asset to which it relates, provided
a reduction, if any, in the provision is not greater than the depreciated capitalised cost of the related asset, in which case the
capitalised cost is reduced to nil and the remaining adjustment recognised in the consolidated statement of income. In the case of
closed sites, changes to estimated costs are recognised immediately in the consolidated statement of income.
Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortisation (calculated on a straight-line basis over their useful lives) and accumulated impairment losses, if any.
Identifiable intangible assets with a finite life are amortised on a straight-line basis over their expected useful life. The amortisation
method and period are reviewed annually and impairment testing is undertaken when circumstances indicate the carrying amount
may not be recoverable. Other than goodwill, which is not amortised, Glencore has no identifiable intangible assets with an indefinite
life.
The major categories of intangibles are amortised on a units of production (UOP) and/or straight-line basis as follows:
Port allocation rights
UOP
Licences, trademarks and software
3 – 20 years
Customer relationships
5 – 9 years
Goodwill impairment testing
For the purpose of impairment testing, goodwill has been allocated to the CGUs, or groups of CGUs, that are expected to benefit from
the synergies of the business combination and which represent the level at which management monitors and manages the goodwill.
In assessing whether an impairment is required, the carrying value of the CGU is compared with its recoverable amount. The
recoverable amount is the higher of its fair value less costs of disposal (FVLCD) and its value in use (VIU). If the recoverable amount of
the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other assets of the unit on a pro-rata basis of the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognised directly in the consolidated statement of income. An impairment loss recognised
for goodwill cannot be reversed in subsequent periods.
Other investments
Equity investments, other than investments in Associates, are recorded at fair value. Glencore designates investments that are not
held for trading as at fair value through other comprehensive income (FVTOCI). As a result, changes in fair value are recorded in the
consolidated statement of other comprehensive income. Dividends from these investments are recognised in the consolidated
statement of income, unless the dividend represents a recovery of part of the cost of the equity investment. Investments that are held
for trading are subsequently measured at fair value through profit or loss (FVTPL).
Impairment or impairment reversals
Glencore conducts, at least annually, an internal review of asset values which is used as a source of information to assess for any
indications of impairment or impairment reversal. Formal impairment tests are carried out, at least annually, for cash-generating units
containing goodwill and for all other non-current assets, when events or changes in circumstances indicate the carrying value may
not be recoverable.
A formal impairment or reversal test involves determining whether the carrying amounts are in excess (or below, as the case may be)
of their recoverable amounts. An asset’s recoverable amount is determined as the higher of its FVLCD and its VIU. Such reviews are
undertaken on an asset-by-asset basis, except where assets do not generate cash flows independent of other assets, in which case
the review is undertaken at the CGU level.
If the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recorded in the consolidated statement of
income to reflect the asset at the lower amount.
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1. Accounting policies continued
For those assets which were impaired in prior periods, if their recoverable amount exceeds their carrying amount, and the change in
their recoverable amount is not solely due to the passage of time, an impairment reversal is recorded in the consolidated statement
of income to reflect the asset at the higher amount to the extent the increased carrying amount does not exceed the carrying value
of the asset that would have been determined had no impairment previously been recognised. Goodwill impairments cannot be
subsequently reversed.
Provisions
Provisions are recognised when Glencore has a present obligation (legal or constructive), as a result of past events, and it is probable
that an outflow of resources embodying economic benefits that can be reliably estimated will be required to settle the liability.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the
balance sheet date, taking into account the risks and uncertainties surrounding the obligation, including interpretation of specific
laws and likelihood of settlement. Where a provision is measured using the cash flow estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
Onerous contracts
An onerous contract is considered to exist where Glencore has a contract under which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received from the contract. Present obligations arising
under onerous contracts are recognised and measured as provisions.
Unfavourable contracts
An unfavourable contract is considered to exist when Glencore, in a business combination, acquires a contract under which the terms
of the contract require Glencore to sell or purchase products or services on terms which are economically unfavourable compared to
current market terms at the time of the business combination. Unfavourable contracts are recognised at the present value of the
economic loss and amortised into the statement of income over the term of the contract.
Inventories
The vast majority of inventories attributable to the marketing activities are valued at fair value less costs of disposal with the
remainder valued at the lower of cost or net realisable value, with costs allocated using the first-in-first-out (FIFO) method. Unrealised
gains and losses from changes in fair value are reported in cost of goods sold.
Inventories held by the industrial activities are valued at the lower of cost or net realisable value. Cost is determined using FIFO or the
weighted average method and comprises material costs, labour costs and allocated production-related overhead costs. Typically raw
materials and consumables are measured using the FIFO method and work in progress inventories using the weighted average
method. Where the production process results in more than one product being produced (joint products), cost is allocated between
the various products according to the ratio of contribution of these metals to gross sales revenue. Financing and storage costs related
to inventory are expensed as incurred.
Non-current inventories primarily relate to stockpiles which are not expected to be utilised within the normal operating cycle.
Physical advances and prepayments
The Group periodically enters into physical advances and prepayment agreements with certain suppliers and customers. Where such
advances and prepayments are separable from contracts to buy or sell commodities and are primarily settled in cash or another
financial asset, they are initially recorded at the amount of the cash paid or received and are subsequently classified and measured as
financial assets or financial liabilities at amortised cost.
Certain physically-settled advances and prepayments which are not separable from contracts to buy or sell commodities and do not
meet the own-use exemption criteria are considered prepaid commodity forward contracts and are accounted for as financial
instruments measured at fair value through profit and loss.
Also see financial instruments section and derivatives and hedging activities section below.
When physically-settled advances and prepayments which are not separable from contracts to buy or sell commodities meet the
own-use exemption criteria, they are classified as non-financial assets or non-financial liabilities. These are initially recorded at the
amount of the cash paid or received and are subsequently reduced by the relevant value of the contractual volumes of physical
deliveries made.
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1. Accounting policies continued
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s consolidated statement of financial position when the Group
becomes a party to the contractual provisions of the instrument. Contractual maturities of such financial assets and financial liabilities
may be longer than one year. However, in the normal course of trading activities, derivative financial instruments are often settled
before their maturity date, and therefore classified as current assets or current liabilities.
Financial assets are classified as either financial assets at amortised cost, at fair value through other comprehensive income (FVTOCI)
or at fair value through profit or loss (FVTPL) depending upon the business model for managing the financial assets and the nature of
the contractual cash flow characteristics of the financial asset. Financial assets are initially recognised at fair value on the trade date,
including, in the case of instruments not subsequently measured at fair value through profit or loss, directly attributable transaction
costs. Trade receivables with no provisional price features and where there is no significant financing component, are initially
recognised at their transaction price. Subsequently, other investments, provisionally priced trade receivables and derivatives are
carried at fair value and trade receivables that do not contain provisional price features, loans and other receivables are carried at
amortised cost.
Financial liabilities, other than derivatives and those containing provisional price features, are initially recognised at fair value of
consideration received net of transaction costs as appropriate and subsequently carried at amortised cost. Financial liabilities that
contain provisional pricing features (accounted for as embedded derivatives) were designated in their entirety as at FVTPL.
Derivatives are carried at FVTPL.
Where a group of financial assets and financial liabilities recognised at fair value is managed and reported to key management
personnel on the basis of its net exposure to either market risks or credit risk, fair value of that group of financial assets and financial
liabilities is measured on the basis of the net price that would be received to sell the long position and to transfer the short position for
a particular risk exposure of the specific financial asset or liability being measured. When the group of financial assets and/or financial
liabilities is not presented on a net basis in the statement of financial position, any portfolio-level adjustments are allocated to the
individual instruments that make up the group on an appropriate basis.
(i) Impairment of financial assets
A loss allowance for expected credit losses is determined for all financial assets (as well as for issued loan commitments and financial
guarantee contracts), other than those at FVTPL and investments in equity instruments measured at FVTOCI, at the end of each
reporting period. The expected credit loss recognised represents a probability-weighted estimate of credit losses over the expected
life of the financial instrument.
The Group applies the simplified approach to measure the loss allowance for trade receivables classified at amortised cost, using the
lifetime expected loss provision. The expected credit losses on these financial assets are estimated using a provision matrix by
reference to past default experience and an equivalent credit rating, adjusted as appropriate for current observable data and forward-
looking information.
For all other financial assets at amortised cost, the Group recognises lifetime expected credit losses when there has been a significant
increase in credit risk since initial recognition, which is determined by:
• A review of overdue amounts;
• Comparing the risk of default at the reporting date and at the date of initial recognition; and
• An assessment of relevant historical and forward-looking quantitative and qualitative information.
For those balances that are beyond 30 days overdue, such is presumed to be an indicator of a significant increase in credit risk.
If the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month expected credit loss, which comprises the expected lifetime
loss from the instrument taking into account the probability of a default occurring within 12 months of the reporting date.
The Group considers an event of default has materialised and the financial asset is credit impaired when information developed
internally or obtained from external sources indicates that the debtor is unlikely to pay the Group without taking into account any
collateral held by the Group or if the financial asset is more than 90 days past due, unless the Group has reasonable and supportable
information to demonstrate that a more lagging default criterion is more appropriate. The Group writes off a financial asset when
there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery.
(ii) Derecognition of financial assets and financial liabilities
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks
and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises
a collateralised borrowing for the proceeds received.
The Group derecognises financial liabilities when the Group’s obligations are discharged, cancelled or have expired.
On derecognition of a financial asset/financial liability in its entirety, the difference between the carrying amount of the financial
asset/financial liability and the sum of the consideration received and receivable/paid and payable is recognised in profit and loss. On
derecognition of equity investments designated and measured at FVTOCI, the cumulative gain or loss recognised in other
comprehensive income is reclassified directly to retained earnings.
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Notes to the financial statements continued
1. Accounting policies continued
Own shares
The cost of purchases of own shares is deducted from equity. Where they are purchased, issued to employees or sold, no gain or loss
is recognised in the consolidated statement of income. Such gains and losses are recognised directly in equity. Any proceeds received
on disposal of the shares or transfers to employees are recognised in equity.
Derivatives and hedging activities
Derivative instruments, which include physical contracts to sell or purchase commodities that do not meet the own-use exemption,
are initially recognised at fair value when Glencore becomes a party to the contractual provisions of the instrument and are
subsequently remeasured to fair value at the end of each reporting period. Fair values are determined using quoted market prices,
dealer price quotations or using models and other valuation techniques, the key inputs for which include current market and
contractual prices for the underlying instrument, time to expiry, yield curves, volatility of the underlying instrument and
counterparty risk.
Gains and losses on derivative instruments for which hedge accounting is not applied, other than the revenue adjustment
mechanism embedded within provisionally priced sales and mark-to-market movements on physical forward sales contracts, are
recognised in cost of goods sold.
Those derivatives qualifying and designated as hedges are either (i) a Fair Value Hedge of the change in fair value of a recognised
asset or liability or an unrecognised firm commitment, or (ii) a Cash Flow Hedge of the change in cash flows to be received or paid
relating to a recognised asset or liability or a highly probable transaction.
At the inception of the hedge and on an ongoing basis, Glencore documents whether the hedging instrument is effective in
offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging
relationship meets the qualifying hedge effectiveness requirements.
Glencore discontinues hedge accounting when the qualifying criteria for the hedged relationship is no longer met.
A change in the fair value of derivatives designated as a Fair Value Hedge is reflected together with the change in the fair value of the
hedged item in the consolidated statement of income.
A change in the fair value of derivatives designated as a Cash Flow Hedge is initially recognised in the consolidated statement of
comprehensive income and accumulated in the cash flow hedge reserve in shareholders’ equity. The deferred amount is then
released to the consolidated statement of income in the same periods during which the hedged transaction affects the consolidated
statement of income. Hedge ineffectiveness is recorded in the consolidated statement of income when it occurs.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative
gain or loss existing in equity at that time remains in shareholders’ equity and is recognised in the consolidated statement of income
when the committed or forecast transaction is ultimately recognised in the consolidated statement of income. However, if a forecast
or committed transaction is no longer expected to occur, the cumulative gain or loss that was recognised in equity is immediately
transferred to the consolidated statement of income.
A derivative may be embedded in a non-derivative ‘host contract’ such as provisionally priced sales and purchases. Such
combinations are known as hybrid instruments. If a hybrid contract contains a host that is a financial asset within the scope of IFRS 9,
then the relevant classification and measurement requirements are applied to the entire contract at the date of initial recognition.
Should the host contract not be a financial asset within the scope of IFRS 9, the embedded derivative is separated from the host
contract, if it is not closely related to the host contract, and accounted for as a standalone derivative. Where the embedded derivative
is separated, the host contract is accounted for in accordance with its relevant accounting policy, unless the entire instrument is
designated at FVTPL in accordance with IFRS 9.
Financial guarantee contracts
Financial guarantee contracts are accounted for in accordance with IFRS 9 as financial liabilities. After initial recognition, any such
contracts are subsequently measured at the higher of the amount of the provision for expected credit losses and the amount initially
recognised less any income recognised in accordance with the principles of IFRS 15.
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2. Segment information
Glencore is organised and operates on a worldwide basis in two core business segments – Marketing activities and Industrial
activities, reflecting the reporting lines and structure used by Glencore’s management to allocate resources and assess the
performance of Glencore.
The business segments’ contributions to the Group are primarily derived from a) the net margin or premium earned from physical
Marketing activities (net sale and purchase of physical commodities) and the provision of marketing and related value-add services
and b) the net margin earned from Industrial asset activities (resulting from the sale of physical commodities over the cost of
production and/or cost of sales). The marketing-related operating segments have been aggregated under the Marketing reportable
segment as their economic characteristics (historical and expected long-term Adjusted EBITDA margins and the nature of the
marketing services provided) are similar. The industrial-related operating segments have been aggregated under the Industrial
reportable segment as the core activities (extracting raw material and/or processing it further into saleable product, as required, and
then selling it at prevailing market prices), the exposure to long-term economic risks (price movements, technology, sovereign and
production substitution) and the longer-term average Adjusted EBITDA margins are similar. The economic and operational
characteristics of our thermal and steelmaking coal operating and commercial units are not expected to change in the foreseeable
future and continue to be included within the industrial activities and marketing activities reporting segments, respectively.
Corporate and other: consolidated statement of income amounts represent Group-related income and expenses (including share of
Viterra earnings and certain variable bonus charges). Statement of financial position amounts represent Group-related balances. In
June 2023, Glencore and its fellow shareholders in Viterra Limited concluded an agreement with Bunge Limited, to merge Bunge
and Viterra in a cash and stock transaction. As a result, the carrying amount of the 49.9% investment in Viterra as at 31 December 2024
and 31 December 2023 is classified as held for sale (see note 16) and, while having this classification, Glencore no longer accounts for its
share of Viterra’s income. However, for segmental reporting purposes, and for internal reporting, Viterra continues to be accounted for
as an equity accounted associate.
The financial performance of the operating segments is principally evaluated by management with reference to Adjusted
EBIT/EBITDA. Adjusted EBIT is the net result, excluding significant items, of segmental revenue (revenue including Proportionate
adjustments as defined in the Alternative performance measure section) less cost of goods sold and selling and administrative
expenses plus dividend income and share of income from associates and joint ventures adjusted for the attributable share of net
finance costs and income tax expense of relevant material associates and joint ventures, which are accounted for internally by means
of proportionate consolidation. Adjusted EBITDA consists of Adjusted EBIT plus depreciation and amortisation, including the related
Proportionate adjustments. In addition, Volcan (prior to its disposal), while a subsidiary of the Group, was accounted for under the
equity method for internal reporting and analysis due to the relatively low economic ownership held by the Group.
The accounting policies of the operating segments are the same as those described in note 2 with the exception of the Antamina
copper/zinc mine, the Collahuasi joint venture and Volcan. Under IAS 28 and IFRS 11, Glencore’s investment in the Antamina
copper/zinc mine (34% owned at 31 December 2024 and 31 December 2023) is considered to be an associate as it is not subject to joint
control and the Collahuasi copper mine (44% owned at 31 December 2024 and 31 December 2023) is considered to be a joint venture.
Associates and joint ventures are required to be accounted for in Glencore’s financial statements under the equity method. For
internal reporting and analysis, Glencore evaluates the performance of these investments under the proportionate consolidation
method, reflecting Glencore’s proportionate share of the revenues, expenses, assets and liabilities of the investments.
In May 2024, Glencore completed the disposal of its 23.3% interest in Volcan (see note 26). The carrying amounts of Volcan assets and
liabilities as at 31 December 2023 were classified as held for sale (see note 16). In the prior period and up to the date of disposal, for
internal reporting and analysis, management evaluated the performance of Volcan under the equity method, reflecting the Group’s
relatively low 23.3% economic ownership in this fully ring-fenced listed entity, with its stand-alone, independent and separate capital
structure. The balances as presented for internal reporting purposes are reconciled to Glencore’s statutory disclosures in the following
tables and/or in the Alternative performance measures section.
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Notes to the financial statements continued
2. Segment information continued
Glencore accounts for intra-segment sales and transfers where applicable as if the sales or transfers were to third parties, i.e. at arm’s
length commercial terms.
2024
Marketing
activities
Industrial
activities
Inter-segment
eliminations
US$ million
Total
Revenue
Metals and minerals
82,819
36,753
(23,317)
96,255
Energy and steelmaking coal
118,504
22,315
(2,664)
138,155
Corporate and other
–
6
–
6
Revenue – segmental
201,323
59,074
(25,981)
234,416
Proportionate adjustment – revenue1
–
(3,472)
–
(3,472)
Revenue – reported measure
201,323
55,602
(25,981)
230,944
Metals and minerals
Adjusted EBITDA
2,436
5,844
–
8,280
Depreciation and amortisation
(61)
(3,307)
–
(3,368)
Proportionate adjustment – depreciation1
–
(822)
–
(822)
Adjusted EBIT
2,375
1,715
–
4,090
Energy and steelmaking coal
Adjusted EBITDA
1,447
5,316
–
6,763
Depreciation and amortisation
(539)
(2,672)
–
(3,211)
Adjusted EBIT
908
2,644
–
3,552
Corporate and other
Adjusted EBITDA2
(92)
(593)
–
(685)
Depreciation and amortisation
–
(19)
–
(19)
Adjusted EBIT
(92)
(612)
–
(704)
Total Adjusted EBITDA
3,791
10,567
–
14,358
Total depreciation and amortisation
(600)
(5,998)
–
(6,598)
Total depreciation Proportionate adjustment
–
(822)
–
(822)
Total Adjusted EBIT3
3,191
3,747
–
6,938
Share of associates' significant items1,4
113
Viterra share in earnings post-held for sale classification2
(165)
Movement in unrealised inter-segment profit elimination
adjustments5
45
EVR inventory fair value adjustment6
(444)
Loss on disposals of non-current assets
(337)
Other expense – net
(1,926)
Impairments
(2,266)
Interest expense – net
(2,334)
Income tax expense
(1,696)
Proportionate adjustment – net finance and income tax expense1
(622)
Loss for the year
(2,694)
1 Refer to segment information on previous page and APMs section for definition.
2 Marketing activities include $165 million (pre-significant items) of Glencore’s equity accounted share of Viterra. In June 2023, Glencore and its fellow
shareholders in Viterra Limited, concluded an agreement with Bunge Limited to merge Bunge and Viterra in a cash and stock transaction. As a result, the
carrying amount of the 49.9% investment in Viterra as at 31 December 2024 is classified as held for sale (see note 16) and, while having this classification,
Glencore no longer accounts for its share of Viterra’s income. However, for segmental reporting purposes, and for internal reporting, Viterra continues to be
accounted for as an equity accounted associate.
3 Comprises share of income from associates, pre-significant items, of $190 million from Marketing activities and $240 million from Industrial activities.
4 Share of associates’ significant items comprise Glencore’s share of significant charges relating to items booked directly by various associates, notably
Century.
5 Represents the required adjustment to eliminate unrealised profit or losses arising on inter-segment transactions, i.e. before ultimate sale to a third party.
For Glencore, such adjustments arise on the sale of product, in the ordinary course of business, from its Industrial to Marketing operations. Management
assesses segment performance prior to any such adjustments, as if the sales were to third parties.
6 Represents the upward fair value related adjustment made in respect of inventory acquired as part of the EVR acquisition (see note 26) which, following the
acquisition, was sold in the ordinary course. For internal reporting and analysis purposes, management assesses EVR’s performance as the inventory is sold,
at the underlying operational margins then realised.
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Additional Information
Notes to the financial statements continued
2. Segment information continued
2023
Marketing
activities
Industrial
activities
Inter-segment
eliminations
US$ million
Total
Revenue
Metals and minerals
69,293
35,556
(22,808)
82,041
Energy and steelmaking coal
117,415
24,858
(3,933)
138,340
Corporate and other
–
7
–
7
Revenue – segmental
186,708
60,421
(26,741)
220,388
Proportionate adjustment – revenue1
–
(2,559)
–
(2,559)
Revenue – reported measure
186,708
57,862
(26,741)
217,829
Metals and minerals
Adjusted EBITDA
1,774
5,445
–
7,219
Depreciation and amortisation
(60)
(3,165)
–
(3,225)
Proportionate adjustment – depreciation1
–
(729)
–
(729)
Adjusted EBIT
1,714
1,551
–
3,265
Energy and steelmaking coal
Adjusted EBITDA
2,098
8,452
–
10,550
Depreciation and amortisation
(390)
(2,320)
–
(2,710)
Adjusted EBIT
1,708
6,132
–
7,840
Corporate and other
Adjusted EBITDA2
28
(695)
–
(667)
Depreciation and amortisation
–
(46)
–
(46)
Adjusted EBIT
28
(741)
–
(713)
Total Adjusted EBITDA
3,900
13,202
–
17,102
Total depreciation and amortisation
(450)
(5,531)
–
(5,981)
Total depreciation Proportionate adjustment
–
(729)
–
(729)
Total Adjusted EBIT3
3,450
6,942
–
10,392
Share of associates' significant items1,4
(90)
Viterra share in earnings post-held for sale classification2
(186)
Movement in unrealised inter-segment profit elimination
adjustments5
258
Gain on disposals of non-current assets
850
Other expense – net
(1,091)
Impairments
(2,484)
Interest expense – net
(1,900)
Income tax expense
(2,207)
Proportionate adjustment – net finance and income tax expense1
(332)
Income for the year
3,210
1 Refer to segment information on previous page and APMs section for definition.
2 Marketing activities include $321 million of Glencore’s equity accounted share of Viterra, of which $186 million relates to the period following the held for sale
classification as at 30 June 2023. In June 2023, Glencore and its fellow shareholders in Viterra Limited, concluded an agreement with Bunge Limited to
merge Bunge and Viterra in a cash and stock transaction. As a result, the carrying amount of the 49.9% investment in Viterra as at 31 December 2024 is
classified as held for sale (see note 16) and, while having this classification, Glencore no longer accounts for its share of Viterra’s income. However, for
segmental reporting purposes, and for internal reporting, Viterra continues to be accounted for as an equity accounted associate.
3 Comprises share of income from associates, pre-significant items, of $326 million from Marketing activities and $279 million from Industrial activities.
4 Share of associates’ significant items comprise Glencore’s share of significant charges relating to impairments and other items booked directly by various
associates.
5 Represents the required adjustment to eliminate unrealised profit or losses arising on inter-segment transactions, i.e. before ultimate sale to a third party.
For Glencore, such adjustments arise on the sale of product, in the ordinary course of business, from its Industrial to Marketing operations. Management
assesses segment performance prior to any such adjustments, as if the sales were to third parties.
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Additional Information
Notes to the financial statements continued
2. Segment information continued
2024
Marketing
activities
Industrial
activities
Corporate
and other
US$ million
Total
Current assets
35,247
18,286
–
53,533
Current liabilities
(27,863)
(9,003)
–
(36,866)
Allocatable current capital employed
7,384
9,283
–
16,667
Property, plant and equipment
1,296
48,910
–
50,206
Intangible assets
5,192
736
–
5,928
Investments in associates and other investments
654
9,118
–
9,772
Non-current advances and loans
1,658
1,460
–
3,118
Inventories
–
517
–
517
Allocatable non-current capital employed
8,800
60,741
–
69,541
Other assets1
7,386
7,386
Other liabilities2
(57,934)
(57,934)
Total net assets
16,184
70,024
(50,548)
35,660
Capital expenditure
Metals and minerals
138
4,769
–
4,907
Energy and steelmaking coal
903
2,270
–
3,173
Corporate and other
–
79
–
79
Capital expenditure – segmental
1,041
7,118
–
8,159
Proportionate adjustment – capital expenditure3
–
(1,345)
–
(1,345)
Capital expenditure – reported measure4
1,041
5,773
–
6,814
2023
Marketing
activities
Industrial
activities
Corporate
and other
US$ million
Total
Current assets
38,010
18,677
–
56,687
Current liabilities
(28,603)
(8,359)
–
(36,962)
Allocatable current capital employed
9,407
10,318
–
19,725
Property, plant and equipment
987
38,246
–
39,233
Intangible assets
5,144
858
–
6,002
Investments in associates and other investments
699
8,637
–
9,336
Non-current advances and loans
1,818
1,058
–
2,876
Inventories
–
623
–
623
Allocatable non-current capital employed
8,648
49,422
–
58,070
Other assets1
9,112
9,112
Other liabilities2
(48,670)
(48,670)
Total net assets
18,055
59,740
(39,558)
38,237
Capital expenditure
Metals and minerals
95
4,492
–
4,587
Energy and steelmaking coal
508
1,521
–
2,029
Corporate and other
–
61
–
61
Capital expenditure – segmental
603
6,074
–
6,677
Proportionate adjustment – capital expenditure3
–
(1,291)
–
(1,291)
Capital expenditure – reported measure4
603
4,783
–
5,386
1 Other assets include non-current financial assets, deferred tax assets, cash and cash equivalents and assets held for sale.
2 Other liabilities include borrowings, non-current deferred income, deferred tax liabilities, non-current provisions, non-current post-retirement and other
employee benefits, non-current financial liabilities and liabilities held for sale.
3 Refer to APMs section for definition.
4 Includes $1,103 million (2023: $821 million), comprising $929 million (2023: $485 million) in Marketing activities and $174 million (2023: $336 million) in
Industrial activities, of ‘right-of-use assets’ capitalised in accordance with IFRS 16 – Leases.
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Additional Information
Notes to the financial statements continued
2. Segment information continued
Geographical information
US$ million
2024
2023
Revenue from third parties1
The Americas
41,543
42,495
Europe
63,308
64,129
Asia
108,762
95,459
Africa
11,695
11,570
Oceania
5,636
4,176
230,944
217,829
Non-current assets2
The Americas
32,894
19,627
Europe
7,921
7,465
Asia
2,715
3,481
Africa
8,692
10,068
Oceania
13,733
14,040
65,955
54,681
1 Revenue by geographical destination is based on the country of incorporation of the sales counterparty, however this may not necessarily be the country of
the counterparty’s ultimate parent and/or final destination of product. Revenue from third parties comprise revenue in Singapore of $27,740 million (2023:
$26,068 million), China of $27,556 million (2023: $21,312 million), UK of $25,264 million (2023: $24,519 million) and USA of $24,505 million (2023: $23,505 million).
2 Non-current assets are non-current assets excluding other investments, advances and loans, other financial assets and deferred tax assets. Non-current
assets comprise assets in Canada of $17,237 million (2023: $4,708 million), Australia of $13,733 million (2023: $13,733 million) and Peru of $5,270 million (2023:
$5,340 million).
3. Revenue
US$ million
2024
2023
Sale of commodities
227,538
214,286
Freight, storage and other services
3,406
3,543
Total
230,944
217,829
Revenue is derived principally from the sale of commodities, recognised once control of the goods has transferred from Glencore to
the buyer. Revenue from sale of commodities was reduced by $519 million (2023: increased by $1,773 million) of mark-to-market
related adjustments on provisionally priced sales arrangements, recognised within our Marketing segment. Revenue derived from
freight, storage and other services is recognised over time as the service is rendered. Revenue is measured based on consideration
specified in the contract with the customer and excludes amounts collected on behalf of third parties. This is consistent with the
revenue information disclosed for each reportable segment (see note 2).
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Additional Information
Notes to the financial statements continued
4. (Loss)/gain on disposals of non-current assets
US$ million
Notes
2024
2023
Loss on derecognition of non-controlling interest on disposal of Volcan
26
(472)
–
Gain on sale of Cobar
26
–
585
Gain on revaluation of MARA
26
–
224
Gain on revaluation of Noranda Income Fund
26
–
18
Net gain on sale of other investments/operations
48
3
Net gain on disposal of property, plant and equipment
87
20
Total
(337)
850
2024
Disposal of Volcan
In May 2024, Glencore completed the disposal of its 23.3% interest in Volcan. The net loss on disposal includes derecognition to the
statement of income of the previously recognised book value of the non-controlling interest equity balance ($282 million), which
largely related to non-controlling interests’ share of historical losses (see note 26).
2023
Disposal of Cobar
In June 2023, Glencore completed the disposal of its interest in the CSA mine, a copper mine in New South Wales, Australia, resulting
in a gain on sale of $585 million (see note 26).
Acquisition of MARA
In September 2023, Glencore completed the acquisition of the remaining 56.25% interest in the MARA project, a copper and gold
brownfield project located in the Caramarca province, Argentina, resulting in a gain on acquisition of $224 million, following the
revaluation of Glencore’s previously recognised interest (see note 26).
Acquisition of Noranda Income Fund
In March 2023, Glencore completed the acquisition of the remaining 75% interest in Noranda Income Fund, an electrolytic zinc
processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec, that it did not previously own, resulting in a gain on
acquisition of $18 million, following the revaluation of Glencore’s previously recognised interest (see note 26).
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Additional Information
Notes to the financial statements continued
5. Other income/(expense)
US$ million
Notes
2024
2023
Net foreign exchange gains
–
46
Net changes in mark-to-market valuations
115
–
Other income
76
130
Total other income
191
176
Net foreign exchange losses
(445)
–
Net changes in mark-to-market valuations
–
(103)
Legal and government proceedings
(295)
(168)
Closed sites rehabilitation provisioning
(870)
(503)
Closure and severance costs
(194)
(40)
Acquisition related expenses
26
(41)
–
Loss on energy contracts
–
(94)
Other expenses
(272)
(359)
Total other expenses
(2,117)
(1,267)
Net other expenses - net
(1,926)
(1,091)
Together with foreign exchange movements and mark-to-market valuations, other net income / (expense) includes other items that,
due to their nature and variable financial impact or infrequency of the events giving rise to these items, are reported separately from
operating segment results.
Net foreign exchange gains/losses
2024 net foreign exchange losses include realised foreign currency losses of $345 million (see page 160) recognised on the
restructuring and partial repayment of ZAR-denominated intragroup debt and return of capital that were part of the Group’s net
investment in its South African operations. These repayments are considered a partial disposal of a net investment in a subsidiary, and
thus a proportionate share of the total accumulated foreign exchange translation losses recognised in the net investment were
recycled to the statement of income upon these repayments.
Net changes in mark-to-market valuations
Primarily relates to movements on interests in investments and loans (see notes 11, 12 and 14) and the ARM Coal non-discretionary
dividend obligation (see note 29), all carried at FVTPL.
Legal and government proceedings
$295 million (2023: $168 million) relating to various legal matters and related costs (legal, expert and compliance), including in respect
of the government investigations (see note 32) and monitorships $85 million (2023: $57 million).
Closed sites rehabilitation provisioning
Comprises movements in restoration, rehabilitation and decommissioning estimates related to sites that are no longer operational
($450 million) or assets that have been fully impaired ($420 million) (see note 7).
Closure and severance costs
Primarily comprises estimated contractual costs and penalties related to early termination of various contractor arrangements and
employee severance provisions, associated with the care and maintenance status of Koniambo’s operations in New Caledonia. Also
see notes 7 and 23. Closure and severance related costs in 2023 were primarily incurred at operations in Australia.
Loss/gain on energy contracts
2023 loss of $94 million related to mark-to-market movements on long-term physically settled electricity contracts entered into by
our European metallurgical operations.
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Additional Information
Notes to the financial statements continued
6. Interest income/(expense)
US$ million
Notes
2024
2023
Bank deposits and other financial assets
569
604
Loans to associates
18
11
Interest income
587
615
Interest expense for financial liabilities not classified at FVTPL
Capital market notes
(1,638)
(1,334)
Revolving credit facilities
(260)
(195)
Lease liabilities
9
(143)
(117)
Other bank loans
(304)
(346)
Less: capitalised interest
9
76
51
Other interest
(264)
(262)
(2,533)
(2,203)
Other interest expense
Post-retirement employee benefits
24
(17)
(21)
Deferred income
22
(84)
(89)
Restoration and rehabilitation
23
(204)
(122)
Other provisions
23
(47)
(43)
Other accretion interest
(36)
(37)
(388)
(312)
Interest expense
(2,921)
(2,515)
7. Impairments
US$ million
Notes
2024
2023
(Impairments)/reversal of impairments of assets
Property, plant and equipment and intangible assets
9/10
(1,942)
(2,103)
Advances and loans – current and non-current
12/14
52
(156)
Inventory and other
(368)
(5)
(2,258)
(2,264)
Impairments of financial assets
Advances and loans – current and non-current
12/14
(8)
(220)
(8)
(220)
Total impairments1
(2,266)
(2,484)
1 Impairments recognised during the year are allocated to Glencore’s operating segments as follows: Marketing activities reversal of impairments of $38
million (2023: impairments of $393 million) and Industrial activities impairments of $2,304 million (2023: $2,091 million).
As part of a regular portfolio review, Glencore carries out an assessment of whether there are indicators of cash-generating unit (CGU)
or asset impairments or whether a previously recorded impairment may no longer be required.
The recoverable amounts of the property, plant and equipment and intangible assets were measured based on fair value less costs of
disposal (FVLCD), or in certain cases value in use (VIU). The FVLCD or VIU of all CGUs are determined by discounted cash flow
techniques based on the most recent approved financial budgets, underpinned and supported by the life of asset plans of the
respective operations. The valuation models use a combination of internal sources and those inputs available to a market participant,
which comprise the most recent reserve and resource estimates, relevant cost assumptions and where possible, market forecasts of
commodity price and foreign exchange rate assumptions, discounted using operation specific post-tax real discount rates (unless
otherwise indicated) ranging from 7.6% – 14.2% (2023: 8.7% – 15.8%). The valuations generally remain most sensitive to price and a
deterioration/improvement in the pricing outlook may result in additional impairments/reversals. The determination of FVLCD and
VIU used Level 3 valuation techniques for both years. A sensitivity analysis was conducted on commodity price assumptions, applying
a 10% change, representing a typical deviation parameter common in the industry. Additionally, a sensitivity analysis on the discount
rate, with a 1% variation was considered, reflecting a reasonable range of potential changes, given current economic conditions and
market expectations. Where a higher percentage is reasonably possible on an operational assumption, that has been clearly
identified.
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Notes to the financial statements continued
7. Impairments continued
As a result of the regular impairment assessment, the following significant impairment charges were recognised:
2024
Property, plant and equipment and intangible assets
2024 impairment/
(reversal of
impairment)
Post-tax impairments/(reversal of
impairments) resulting from changes in key
assumptions
US$ million
pre tax post tax
Capital
employed1
Discount
rate2
Short-to long-term
price assumption
Decrease/(increase)
in price of 10%3
Increase/(decrease)
in discount rate of 1%
Cash-generating unit
Coal South Africa
611
446
1,294
9.7%
API4: 99-95
496
(428) 5
53
(63)
Koniambo4
279
279
(349)
890
725
945
Custom Zinc/Copper metallurgical operations
CEZ4
148
110
(4)
Pasar4
406
406
(281)
CCR / Horne4
847
632
(245)
1,401
1,148
(530)
Zinc/Lead mining operations
Mt Isa - Zinc
(195)
(136)
828
11.0%
Zn: 2,578 - 2,750
371
(102) 5
43
(47)
Mc Arthur River
(288)
(161)
1,019
10.1%
Zn: 2,578 - 2,750
347
(27) 5
77
(27) 5
Kazzinc - Zhairem
(96)
(77)
583
12.1%
Zn: 2,578 - 2,750
139
(104) 5
19
(18)
(579)
(374)
2,430
Various other
230
174
–
1,942
1,673
2,845
1,353
(661)
192
(155)
1 Estimated recoverable capital employed, post impairment. Capital employed includes property, plant and equipment, non-current inventory, less
rehabilitation provisions and net deferred tax liabilities.
2 Discount rates expressed on a real terms, post-tax basis.
3 Across the curve.
4 The estimated recoverable value of Koniambo and Custom Zinc/Copper metallurgical operations is estimated to be de minimis. No reasonably possible
change in assumptions would materially impact this value, hence no sensitivity analysis is presented.
5 Illustrated impairment reversal capped at level of accumulated historical impairment, adjusted for notional depreciation since the impairment was charged.
• $611 million, South Africa Coal CGU (Industrial activities segment). On account of weaker non-Pacific demand, export growth from
Indonesia and stronger LNG supply growth, thermal coal price forecasts trended lower over H1 2024. As a result, our long-term
South African coal export price assumption (API4) reduced from $118/t to $95/t (down 19%). These lower price assumptions, together
with ongoing export logistics challenges, have significantly impacted Coal SA’s expected overall returns.
• $553 million, Koniambo CGU (Industrial activities segment). On 12 February 2024, we announced that Koniambo would transition to
care and maintenance, with Glencore continuing to fund the business over a six-month period to support the critical activities
required to maintain integrity of the assets, while running a process to identify a potential new industrial partner and/or possibly an
outright sale. Given the continuing challenging nickel market environment, the remaining property, plant and equipment ($279
million) and related spare-parts inventory ($140 million) were fully impaired, and we recognised contract termination and employee
severance related costs of $134 million (see note 6).
• $1,487 million, various custom zinc and copper metallurgical operations (Industrial activities segment). Over 2024, zinc and copper
metallurgical economics came under extreme pressure as increasing smelter capacity, coupled with constrained zinc and copper
concentrate markets and mine supply, drove smelter treatment charge (TC) revenue streams to record lows and at times, even
negative. Over the short- to medium-term, it is anticipated that mine supply will continue to be constrained and as a result, the
valuations of the above custom metallurgical operations were fully impaired, with their longer-term business cases being
strategically evaluated. To this effect, property, plant and equipment related balances at each of the operations, totalling $1,401
million, were fully impaired and an inventory impairment of $86 million was recognised.
Reversal of impairment:
• $579 million impairment reversals at various zinc and lead mining operations (Industrial activities segment). As noted above, 2024
was characterised by record low zinc and copper TC realisations. Contrary to custom metallurgical operations, a low TC outlook is a
positive development for zinc/lead and copper concentrate producing mines. As a result, estimated valuations for our zinc mines,
that were previously impaired, increased and partial reversals of the previous years’ impairments were recognised.
• The balance of impairment charges of $230 million on property, plant and equipment (none of which were individually material)
relate to specific assets ($216 million in the Industrial activities segment and $14 million in the Marketing activities segment) where
utilisation is no longer required or to projects no longer progressed due to changes in production and development plans.
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Additional Information
Notes to the financial statements continued
7. Impairments continued
Advances and loans current and non-current
Impairment/reversal of impairments on advances and loans of net $44 million (none of which were individually material) were
recognised following the change in the underlying financial condition of various counterparties and final settlement of certain
outstanding loans (impairment of $8 million in the Industrial activities segment and reversal of impairment of $52 million in the
Marketing activities segment).
2023
Property, plant and equipment and intangible assets
During 2023, many central bank interest rates continued to increase, often leading to higher equity risk and certain country risk
premiums and ultimately an environment of generally higher discount rates. These macro factors, together with a particularly
subdued cobalt hydroxide short-to medium-term pricing outlook and various operational challenges, resulted in a number of
impairments related to metals and minerals CGUs in our Industrial activities segment. The valuations were most sensitive to
commodity price and discount rate assumptions and a deterioration/improvement in these assumptions could have resulted in
additional impairments/reversal of impairments, as set out below.
2023 impairment/
(reversal of
impairment)
Impairments/(reversal of impairments)
resulting from changes in key
assumptions
US$ million
pre tax post tax
Capital
employed1
Discount
rate2
Short-to long-term
price assumption
Decrease/(increase)
in price of 10%3
Increase/(decrease)
in discount rate of 1%
Cash-generating unit
Mutanda copper/cobalt
1,045
762
1,432
15.0%
Cu: 8,196 - 8,500
261
(254)
133
(148)
Co4: 20,668 - 37,203
307
(292)
McArthur River zinc
211
118
758
10.6%
Zn: 2,476 - 2,700
364
(332)
70
(79)
Kazzinc Smelting zinc
156
134
1,265
13.3%
Zn: 2,476 - 2,700
160
(134)
109
(123)
Kazzinc - Zhairem zinc
77
62
522
13.3%
Zn: 2,476 - 2,700
125
(126)
16
(18)
Volcan zinc5
375
340
1,086
–
–
–
–
Nordenham Zinc5
231
191
–
9.2%
Zn: 2,476 - 2,700
–
–
–
–
Astron oil
(190)
(138)
1,056
8.7% Margin $/bbl: 10.9 - 13.7
243
(48)
88
(48)
Various other
198
147
–
–
–
–
–
2,103
1,616
6,119
1,460
(1,186)
525
(539)
1 Estimated recoverable capital employed, post impairment. Capital employed includes property, plant and equipment, non-current inventory, less
rehabilitation provisions and net deferred tax liabilities.
2 Discount rates expressed on a real terms, post-tax basis.
3 Across the curve.
4 Cobalt hydroxide price
5 The estimated recoverable value of Nordenham is estimated to be de minimis. In respect of Volcan, the recoverable value reflects indicative third-party
offers. No reasonably possible change in assumptions would materially impact this value, hence no sensitivity analysis is presented.
• $1,045 million, Mutanda CGU (Industrial activities segment). On account of significantly increased global production, the cobalt
hydroxide market moved further into oversupply during 2023. In response, Mutanda had made certain market-related adjustments
to its short-to medium-term production plans, which, in addition to the Group revising cobalt price assumptions lower over this
period, had significantly impacted Mutanda’s expected overall returns.
• $211 million, McArthur River CGU (Industrial activities segment). Lower modelled saleable production volumes due to revised
processing recovery assumptions and a higher assessed discount rate of 10.6% (2022: 8.7%) were the primary drivers of the
impairment.
• $77 million, Kazzinc Smelting CGU (Industrial activities segment). In addition to the above-noted macro inputs, the Kazzinc
Smelting CGU was incrementally impacted by cost inflation on both capital and operational expenditures as it continued to
manage logistical and supply chain challenges stemming from the Russia/Ukraine war.
• $375 million, Volcan CGU (Industrial activities segment). Volcan is a listed zinc / silver mining entity in Peru, in which the Group held
a 63% controlling (23.2% economic) interest in. As at 31 December 2023, Glencore had classified the assets and liabilities of Volcan as
held for sale (see note 16). The Group had received various proposals to acquire its equity interest and the carrying value as at 31
December 2023 reflected the value indicated by such proposals.
• $231 million, Nordenham CGU (Industrial activities segment). In 2022, Nordenham’s zinc processing operations were put into care
and maintenance, with value being realised through the resale of committed electricity supply into the grid. In 2023, forecast
treatment and refinery fee assumptions over the medium term were insufficient to support the carrying value. A full impairment
was recognised.
• The balance of the impairment charges of $198 million on property, plant and equipment (none of which were individually material)
related to specific assets (Industrial activities segment) where utilisation is no longer required or to projects no longer progressed
due to changes in production and development plans.
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Additional Information
Notes to the financial statements continued
7. Impairments continued
Reversal of impairment:
• $190 million, Astron Energy CGU (Industrial activities segment). The CGU was impaired in 2020, reflecting the global macro-
economic impact of Covid-19 on refined petroleum product demand, the resulting industry overcapacity and lower refining
margins. As demand continued to recover post-Covid, refining margins and their outlook also improved and as a result, a large
portion of the previously recorded impairment was reversed, further enabled by the restart of operations of the Astron Energy
refinery in Cape Town in early 2023, following a multi-year rebuild.
Advances and loans current and non-current
During 2023, the originally expected production rate at Mopani was not achieved, in part due to a lack of funding. The new
shareholder conducted operational and strategic reviews, resulting in Mopani seeking additional equity funding, alongside the
restructuring of our transaction debt (see note 12). As a result, the advance was impaired by $156 million (Marketing activities
segment).
The balance of impairment charges of $220 million (none of which were individually material) were recognised following changes in
the underlying financial conditions of various counterparties and / or non-performance in settling certain obligations.
8. Income taxes
Income taxes consist of the following:
US$ million
2024
2023
Current income tax expense
(1,870)
(2,583)
Adjustments in respect of prior year current income tax
(46)
(282)
Deferred income tax credit
445
697
Adjustments in respect of prior year deferred income tax
(225)
(39)
Total tax expense reported in the statement of income
(1,696)
(2,207)
Deferred income tax recognised directly in other comprehensive income
(43)
(17)
Total tax expense recognised directly in other comprehensive income
(43)
(17)
The effective Group tax rate is different from the statutory Swiss income tax rate applicable to the Company for the following reasons:
US$ million
2024
2023
(Loss)/income before income taxes
(998)
5,417
Less: Share of income from associates and joint ventures
(1,417)
(1,337)
Parent Company’s and subsidiaries’ (loss)/income before income tax and attribution
(2,415)
4,080
Income tax credit/(expense) calculated at the Swiss income tax rate of 12% (2023: 12%)
290
(490)
Tax effects of:
Different tax rates from the standard Swiss income tax rate
(577)
(891)
Tax-exempt income
322
525
Items not tax deductible
(499)
(939)
Foreign exchange fluctuations
(270)
263
Changes in tax rates
(5)
17
Utilisation and changes in recognition of tax losses and temporary differences
3
(198)
Tax losses not recognised
(712)
(255)
Adjustments in respect of prior years
(271)
(321)
Other
23
82
Income tax expense
(1,696)
(2,207)
The non-tax deductible items of $499 million (2023: $939 million) primarily relate to financing costs, impairments and various other
expenses.
The impact of tax-exempt income of $322 million (2023: $525 million) primarily relates to non-taxable dividends, income that is not
effectively connected to the taxable jurisdiction, and various other items.
The tax impact of foreign exchange fluctuations relates to the foreign currency movements on deferred tax balances where the
underlying tax balances are denominated in a currency different to the functional currency determined for accounting purposes.
For significant items, including non-recurring adjustments, refer to APM section.
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Additional Information
Notes to the financial statements continued
8. Income taxes continued
Deferred taxes
Deferred taxes as at 31 December 2024 and 2023 are attributable to the items in the table below:
US$ million
2024
Recognised in
the statement
of income
Recognised in
other
comprehensive
income
Business
combination
and disposal of
subsidiaries
Foreign
currency
exchange
movements
Other
2023
Deferred tax assets1
Tax losses carried forward
878
(291)
–
–
(1)
–
1,170
Other
330
161
(40)
–
(6)
(5)
220
Total
1,208
(130)
(40)
–
(7)
(5)
1,390
Deferred tax liabilities1
Depreciation and
amortisation
(4,723)
474
–
(3,130)
11
19
(2,097)
Mark-to-market valuations
(276)
31
(1)
–
–
–
(306)
Other
(208)
(155)
(2)
512
9
(5)
(567)
Total
(5,207)
350
(3)
(2,618)
20
14
(2,970)
Total Deferred tax - net
(3,999)
220
(43)
(2,618)
13
9
(1,580)
US$ million
2023
Recognised in
the statement
of income
Recognised in
other
comprehensive
income
Business
combination
and disposal of
subsidiaries
Foreign
currency
exchange
movements
Other
2022
Deferred tax assets1
Tax losses carried forward
1,170
(357)
–
11
1
–
1,515
Other
220
(108)
(17)
22
1
–
322
Total
1,390
(465)
(17)
33
2
–
1,837
Deferred tax liabilities1
Depreciation and
amortisation
(2,097)
1,639
–
(438)
61
(60)
(3,299)
Mark-to-market valuations
(306)
(183)
2
–
–
–
(125)
Other
(567)
(333)
(2)
–
(2)
(3)
(227)
Total
(2,970)
1,123
–
(438)
59
(63)
(3,651)
Total Deferred tax - net
(1,580)
658
(17)
(405)
61
(63)
(1,814)
1 Asset and liability positions in the same category reflect the impact of tax assets and liabilities arising in local tax jurisdictions that cannot be offset against
tax assets and liabilities arising in other tax jurisdictions.
Deferred tax assets are net of $272 million (2023: $324 million) of uncertain tax liabilities related to tax estimation and judgement
uncertainties with respect to various open tax disputes discussed below.
Deferred tax assets are recognised for tax losses carried forward only to the extent that realisation of the related tax benefit is
probable. As at 31 December 2024, $1,298 million (2023: $1,665 million) of deferred tax assets related to available loss carry forwards
have been recognised, of which $878 million (2023: $1,170 million) are disclosed as deferred tax assets with the remaining balance
being offset against deferred tax liabilities arising in the same tax entity. This balance is primarily comprised of:
• $195 million (2023: $483 million) in entities domiciled in the DRC;
• $363 million (2023: $416 million) in entities domiciled in Switzerland; and
• $250 million (2023: $255 million) in entities domiciled in the US.
In evaluating whether it is probable that taxable profits will be earned in future accounting periods prior to any tax loss expiry as may
be the case, relevant evidence was considered, including possible changes in the tax legislation, approved budgets, forecasts and
business plans and, in certain cases, analysis of historical operating results. The recognised losses carried forward in the DRC primarily
relate to historical development and financing-related costs at KCC and for those in Switzerland and the US, to non-recurring events.
The forecasts are consistent with those prepared and used internally for business planning and impairment testing purposes.
Following this evaluation, it was determined there would be sufficient taxable income generated to realise the benefit of the deferred
tax assets.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
8. Income taxes continued
Income tax receivable / payable
US$ million
2024
2023
Income tax receivable
1,495
1,229
Income tax payable
(1,951)
(1,850)
Net income tax payable
(456)
(621)
Income tax judgements and uncertain tax liabilities
The current open tax matters are spread across numerous jurisdictions and consist primarily of legacy transfer pricing matters that
have been open for a number of years and may take several years to resolve. In recognising a provision for these taxation exposures,
consideration was given to the range of possible outcomes to determine the Group’s best estimate of the amount to provide. As at 31
December 2024, the Group has recognised $1,777 million (2023: $1,425 million) of uncertain tax liabilities related to possible adverse
outcomes of these open matters, of which $272 million (2023: $324 million) has been recognised net of deferred tax assets, with the
balance of $1,505 million (2023: $1,101 million) recognised as an income tax payable. The change in the total uncertain tax position
during the year reflects the issuance of various new assessments and discussions at the administrative phase.
UK Tax Audit
In previous periods, HMRC have issued formal transfer pricing, unallowable purposes and diverted profits tax assessments for the
2008-2019 and 2021 tax years, amounting to $1,201 million. The Group has appealed against, and continues to vigorously contest, these
assessments, following, over the years, various legal opinions received and detailed analysis conducted, supporting its positions and
policies applied. Therefore, the Group has not fully provided for the amount assessed. The matter is now proceeding through the
Mutual Agreement Process, pursuant to article 24 of the Switzerland – United Kingdom Income Tax Treaty 1977. Management does
not anticipate a significant risk of material changes in estimates in this matter within the next financial year.
DRC Tax Audit
As a matter of course, various tax authorities in the DRC issue draft assessments adjusting revenue and denying costs and other
items, along with customs-related claims for alleged non-compliance or incorrect coding on certain filings. Upon receipt of such draft
assessments, the Group engages with the tax authorities to defend its filing positions. As at 31 December 2024, there are various
ongoing technical discussions and challenges, the ultimate outcome of which remains uncertain, and therefore there remains a risk
that the outcome could materially impact the recognised balances within the next financial year. It is impractical to provide further
sensitivity estimates of potential downside or upside variances.
Available gross tax losses
Available gross tax losses carried forward and deductible temporary differences, for which no deferred tax assets have been
recognised in the consolidated financial statements, are detailed below and will expire as follows:
US$ million
2024
2023
1 year
182
18
2 years
4
217
3 years
7,298
16
Thereafter
4,605
12,193
Unlimited
20,034
17,212
Total
32,123
29,656
As at 31 December 2024, unremitted earnings of $54,975 million (2023: $58,500 million) have been retained by subsidiaries for
reinvestment. Therefore, no deferred income tax liabilities have been recognised for withholding tax and other taxes that would be
payable on the unremitted earnings of certain foreign subsidiaries.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
9. Property, plant and equipment
2024
US$ million
Notes
Freehold
land and
buildings
Plant and
equipment
Right-of-use
assets
Mineral and
petroleum
rights
Exploration
and
evaluation
Deferred
mining costs
Total
Gross carrying amount:
1 January 2024
6,619
47,785
3,510
28,516
813
16,154
103,397
Business combination
26
196
4,710
144
8,040
–
–
13,090
Additions
30
4,231
1,103
25
137
1,268
6,794
Disposals
(13)
(627)
(543)
(64)
–
(35)
(1,282)
Effect of foreign currency
exchange movements
(12)
(161)
(5)
(61)
–
(19)
(258)
Other movements1
245
(970)
(6)
(74)
18
516
(271)
31 December 2024
7,065
54,968
4,203
36,382
968
17,884
121,470
Accumulated depreciation
and impairment:
1 January 2024
3,143
30,677
1,935
16,511
392
11,506
64,164
Disposals
(10)
(574)
(512)
(64)
–
(34)
(1,194)
Depreciation
320
2,451
823
1,482
1
1,364
6,441
Impairment
7
137
1,005
46
1,019
–
(278)
1,929
Effect of foreign currency
exchange movements
(3)
(53)
(3)
(49)
1
(7)
(114)
Other movements1
12
81
7
(40)
(3)
(19)
38
31 December 2024
3,599
33,587
2,296
18,859
391
12,532
71,264
Net book value 31 December 2024
3,466
21,381
1,907
17,523
577
5,352
50,206
1 Primarily consists of decreases in rehabilitation provision of $28 million and reclassifications within the various property, plant and equipment headings and
intangible assets.
Plant and equipment includes expenditure for construction in progress of $5,789 million (2023: $4,640 million). Depreciation expenses
included in cost of goods sold are $6,384 million (2023: $5,805 million) and in selling and administrative expenses, $57 million (2023:
$52 million).
During 2024, $76 million (2023: $51 million) of interest was capitalised. With the exception of project-specific borrowings, the rate used
to determine the amount of borrowing costs eligible for capitalisation was 8.0% (2023: 6.1%).
As at 31 December 2024, with the exception of leases, no property, plant or equipment was pledged as security for borrowings (2023:
$Nil).
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
9. Property, plant and equipment continued
2023
US$ million
Notes
Freehold
land and
buildings
Plant and
equipment
Right-of-use
assets
Mineral and
petroleum
rights
Exploration
and
evaluation
Deferred
mining costs
Total
Gross carrying amount:
1 January 20231
6,504
45,850
3,198
26,947
721
15,094
98,314
Business combination
26
8
541
6
969
–
2
1,526
Disposal of subsidiaries
26
(1)
(71)
–
(133)
–
–
(205)
Additions1
46
3,571
821
65
80
772
5,355
Disposals
(52)
(818)
(491)
(81)
–
(569)
(2,011)
Effect of foreign currency
exchange movements
(8)
(178)
–
(156)
(1)
(31)
(374)
Other movements2
122
(1,110)
(24)
905
13
886
792
31 December 2023
6,619
47,785
3,510
28,516
813
16,154
103,397
Accumulated depreciation
and impairment:
1 January 2023
2,807
29,142
1,726
14,347
362
10,366
58,750
Disposal of subsidiaries
26
–
(56)
–
(105)
–
–
(161)
Disposals
(50)
(721)
(444)
(72)
–
(561)
(1,848)
Depreciation
301
2,179
665
1,440
1
1,271
5,857
Impairment
7
72
334
–
980
29
295
1,710
Effect of foreign currency
exchange movements
(4)
(89)
–
(67)
–
(10)
(170)
Other movements2
17
(112)
(12)
(12)
–
145
26
31 December 2023
3,143
30,677
1,935
16,511
392
11,506
64,164
Net book value 31 December 2023
3,476
17,108
1,575
12,005
421
4,648
39,233
1 $308 million of opening balances and $80 million of additions were reclassified from ‘Mineral and petroleum rights’ to ‘Exploration and evaluation’ to correct
the prior year presentation. Certain exploration and evaluation assets were previously included in mineral and petroleum rights.
2 Primarily consists of increases in rehabilitation provision of $780 million and reclassifications within the various property, plant and equipment headings.
Leases
The Group leases various assets including land and buildings and plant and equipment. As at 31 December 2024, the net book value
of recognised right-of use assets relating to land and buildings was $426 million (2023: $468 million) and plant and equipment
$1,481 million (2023: $1,107 million). The depreciation charge for the period relating to those assets was $59 million (2023: $72 million)
and $764 million (2023: $593 million), respectively.
Disclosure of amounts recognised as lease liabilities in the statement of financial position and cash outflows for leases in the year are
included within note 21 and their maturity analysis within note 27.
Amounts recognised in the statement of income are detailed below:
US$ million
2024
2023
Depreciation on right-of-use assets
(823)
(665)
Interest expense on lease liabilities
(143)
(117)
Expense relating to short-term leases
(974)
(992)
Expense relating to low-value leases
(10)
(17)
Expense relating to variable lease payments not included in the measurement of the lease liability
(13)
(34)
Income from subleasing right-of-use assets
275
187
Total
(1,688)
(1,638)
At 31 December 2024, the Group is committed to $266 million (2023: $407 million) of short-term lease payments and $Nil (2023: $87
million) of capitalised leases not yet commenced.
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Additional Information
Notes to the financial statements continued
10. Intangible assets
2024
US$ million
Notes
Goodwill
Port allocation
rights
Licences,
trademarks
and software
Customer
relationships
and other
Total
Cost:
1 January 2024
13,134
1,049
559
775
15,517
Business combination
26
–
–
7
–
7
Additions
–
–
16
4
20
Disposals
–
(1)
(9)
(7)
(17)
Effect of foreign currency exchange movements
–
(34)
(17)
(32)
(83)
Other movements
–
–
121
1
122
31 December 2024
13,134
1,014
677
741
15,566
Accumulated amortisation and impairment:
1 January 2024
8,134
407
382
592
9,515
Disposals
–
–
(8)
(7)
(15)
Amortisation expense1
–
65
41
51
157
Impairment
7
–
13
–
–
13
Effect of foreign currency exchange movements
–
(16)
(7)
(21)
(44)
Other movements
–
–
12
–
12
31 December 2024
8,134
469
420
615
9,638
Net book value 31 December 2024
5,000
545
257
126
5,928
1 Recognised in cost of goods sold.
2023
US$ million
Notes
Goodwill
Port allocation
rights
Licences,
trademarks
and software
Customer
relationships
and other
Total
Cost:
1 January 2023
13,134
1,128
554
753
15,569
Business combination
26
–
–
–
7
7
Disposal of subsidiaries
26
–
–
(12)
–
(12)
Additions
–
–
5
26
31
Disposals
–
–
(5)
(23)
(28)
Effect of foreign currency exchange movements
–
(79)
6
10
(63)
Other movements
–
–
11
2
13
31 December 2023
13,134
1,049
559
775
15,517
Accumulated amortisation and impairment:
1 January 2023
8,134
381
348
546
9,409
Disposals
–
–
(5)
(12)
(17)
Amortisation expense1
–
52
40
32
124
Impairment
7
–
–
–
18
18
Effect of foreign currency exchange movements
–
(26)
1
6
(19)
Other movements
–
–
(2)
2
–
31 December 2023
8,134
407
382
592
9,515
Net book value 31 December 2023
5,000
642
177
183
6,002
1 Recognised in cost of goods sold.
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Additional Information
Notes to the financial statements continued
10. Intangible assets continued
Goodwill
The carrying amount of goodwill has been allocated to cash-generating units (CGUs), or groups of CGUs as follows:
US$ million
2024
2023
Metals and minerals marketing business
3,326
3,326
Coal marketing business
1,674
1,674
Total
5,000
5,000
Metals and minerals and coal marketing businesses
Goodwill of $3,326 million and $1,674 million was recognised in connection with previous business combinations and was allocated to
the metals and minerals marketing and energy and steelmaking coal marketing CGUs, respectively, based on the annual synergies
expected to accrue to the respective marketing departments as a result of increased volumes, blending opportunities and freight and
logistics arbitrage opportunities.
Goodwill impairment testing
Given the nature of each CGU’s activities, information on its fair value is usually difficult to obtain unless negotiations with potential
purchasers or similar transactions are taking place. Consequently:
• The recoverable amount for each of the marketing CGUs is determined by reference to the FVLCD which utilises a price-to-
earnings multiple approach, based on historical financial performance data, which includes factors such as marketing volumes
handled and operating, interest and income tax charges. The price-to-earnings multiple of 10 times (2023: 10 times) is derived from
observable market data for broadly comparable businesses; and
• Glencore believes that no reasonably possible changes in any of the above key assumptions would cause the recoverable amount
to fall below the carrying value of the CGU over the next 12 months. The determination of FVLCD for each of the marketing CGUs
used Level 3 valuation techniques in both years.
Port allocation rights
Port allocation rights represent contractual entitlements to export certain amounts of thermal coal on an annual basis from Richards
Bay Coal Terminal in South Africa recognised as part of previous business combinations. The rights are amortised on a units of
production basis.
Licences, trademarks and software
Intangibles related to internally developed technology and patents were recognised in previous business combinations and are
amortised over the estimated economic life of the technology which ranges between 3 and 20 years.
Customer relationships
Customer relationships mainly represent intangible assets related to long-standing customer relationships recognised in previous
business combinations. These intangible assets are being amortised on a straight-line basis over their estimated economic life which
ranges between 5 and 9 years.
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Additional Information
Notes to the financial statements continued
11. Investments in associates, joint ventures and other investments
Investments in associates and joint ventures
US$ million
Notes
2024
2023
1 January
8,823
11,878
Additions
83
829
Disposals
(6)
(22)
Share of income from associates and joint ventures
1,417
1,337
Share of other comprehensive (loss)/income from associates and joint ventures
(99)
16
Transfer of previously held equity accounted investments to subsidiaries
26
–
(175)
Reclassification to other investments
(100)
–
Dividends received
(812)
(1,328)
Reclassification to held for sale
16
–
(3,711)
Other movements
(2)
(1)
31 December
9,304
8,823
Of which:
Investments in associates
5,269
5,281
Investments in joint ventures
4,035
3,542
As at 31 December 2024, the carrying value of our listed associates is $668 million (2023: $591 million), mainly comprising Century
Aluminum and PT CITA, which have carrying values of $323 million (2023: $170 million) and $227 million (2023: $199 million),
respectively. The fair value of our listed associates, using published price quotations (a Level 1 fair value measurement) is $1,096 million
(2023: $862 million). As at 31 December 2024, Glencore’s investment in Century Aluminum was pledged under a loan facility, with
proceeds received and recognised in current borrowings of $175 million (2023: $125 million) (see note 21).
Additions
In December 2023, Glencore completed the acquisition of a non-controlling 30% equity stake in Alunorte S.A. and a non-controlling
45% equity stake in Mineracão Rio do Norte S.A. for a combined payment on completion, including earn-in and other adjustments, of
$677 million. The acquisition of the equity stakes provides Glencore with exposure to lower-quartile carbon alumina and bauxite,
enhancing our capability to supply to our customers such critical materials for the ongoing energy transition.
In 2024, Glencore acquired an additional 3.03% non-controlling equity stake in Alunorte S.A. and completed additional investment
funding in Alunorte S.A. and Mineracão Rio do Norte S.A. for combined payments of $81 million.
Transfer of previously held equity accounted investments to subsidiaries
In March 2023, Glencore completed the acquisition of the remaining 75% interest in Noranda Income Fund, an electrolytic zinc
processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec, that it did not previously own. Prior to the
acquisition, Glencore owned a 25% interest in Noranda Income Fund which was accounted for as an associate (see note 26).
In September 2023, Glencore completed the acquisition of the remaining 56.25% interest in the MARA Project, a copper and gold
brownfield project located in Argentina, that it did not previously own. Prior to the acquisition, Glencore owned a 43.75% interest in
the MARA Project which was accounted for as an associate (see note 26).
Reclassification to other investments
In H2 2024, MAC Copper (previously Metals Acquisition) completed a share placement, which resulted in Glencore’s equity interest
being diluted to under 20% and losing its ability to exert significant influence over the investment. As a result, the Group ceased
applying the equity method and recognised the investment as a financial asset at fair value through profit or loss. See below Other
Investments.
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Additional Information
Notes to the financial statements continued
11. Investments in associates, joint ventures and other investments continued
2024 Details of material associates and joint ventures
Summarised financial information in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’
and joint ventures’ relevant figures, is set out below.
US$ million
Antamina
Total
material
associates
Collahuasi
Total
material
joint
ventures
Total
material
associates
and
joint
ventures
Non-current assets
7,011
7,011
8,445
8,445
15,456
Current assets
1,651
1,651
1,931
1,931
3,582
Non-current liabilities
(2,942)
(2,942)
(2,602)
(2,602)
(5,544)
Current liabilities
(978)
(978)
(836)
(836)
(1,814)
The above assets and liabilities include the following:
Cash and cash equivalents
105
105
520
520
625
Current financial liabilities1
(206)
(206)
(21)
(21)
(227)
Non-current financial liabilities1
(1,184)
(1,184)
(1,075)
(1,075)
(2,259)
Net assets 31 December 2024
4,742
4,742
6,938
6,938
11,680
Glencore's ownership interest
33.8%
44.0%
Acquisition fair value and other adjustments
1,499
1,499
982
982
2,481
Carrying value
3,102
3,102
4,035
4,035
7,137
1 Financial liabilities exclude trade, other payables and provisions.
Summarised profit and loss in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’ and
joint ventures’ relevant figures for the year ended 31 December 2024 including Group adjustments relating to alignment of
accounting policies or fair value adjustments, is set out below.
US$ million
Antamina
Total
material
associates
Collahuasi
Total
material
joint
ventures
Total
material
associates
and
joint
ventures
Revenue
4,685
4,685
4,819
4,819
9,504
Income for the year
1,140
1,140
1,507
1,507
2,647
Other comprehensive loss
–
–
(24)
(24)
(24)
Total comprehensive income
1,140
1,140
1,483
1,483
2,623
Glencore's share of dividends paid
430
430
168
168
598
The above income for the year includes the following:
Depreciation and amortisation
(1,557)
(1,557)
(672)
(672)
(2,229)
Interest income1
7
7
74
74
81
Interest expense2
(42)
(42)
(40)
(40)
(82)
Income tax expense
(692)
(692)
(997)
(997)
(1,689)
1 Includes foreign exchange gains and other income of $56 million.
2 Includes foreign exchange losses and other expenses of $8 million.
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Additional Information
Notes to the financial statements continued
11. Investments in associates, joint ventures and other investments continued
2023 Details of material associates and joint ventures
Summarised financial information in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’
and joint ventures’ relevant figures, is set out below.
US$ million
Antamina
Total
material
associates
Collahuasi
Total
material
joint
ventures
Total
material
associates
and
joint
ventures
Non-current assets
6,275
6,275
6,914
6,914
13,189
Current assets
1,596
1,596
2,173
2,173
3,769
Non-current liabilities
(2,488)
(2,488)
(2,662)
(2,662)
(5,150)
Current liabilities
(857)
(857)
(718)
(718)
(1,575)
The above assets and liabilities include the following:
Cash and cash equivalents
71
71
327
327
398
Current financial liabilities1
(106)
(106)
(31)
(31)
(137)
Non-current financial liabilities1
(1,138)
(1,138)
(1,091)
(1,091)
(2,229)
Net assets 31 December 2023
4,526
4,526
5,707
5,707
10,233
Glencore's ownership interest
33.8%
44.0%
Acquisition fair value and other adjustments
1,618
1,618
1,031
1,031
2,649
Carrying value
3,148
3,148
3,542
3,542
6,690
1 Financial liabilities exclude trade, other payables and provisions.
Summarised profit and loss in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’ and
joint ventures’ relevant figures for the year ended 31 December 2023, including Group adjustments relating to alignment of
accounting policies or fair value adjustments, is set out below.
US$ million
Antamina
Total
material
associates
Collahuasi
Total
material
joint
ventures
Total
material
associates
and
joint
ventures
Revenue
4,243
4,243
4,648
4,648
8,891
Income for the year
1,206
1,206
1,471
1,471
2,677
Other comprehensive loss
–
–
(18)
(18)
(18)
Total comprehensive income
1,206
1,206
1,453
1,453
2,659
Glencore's share of dividends paid
452
452
308
308
760
The above (loss)/income for the year includes the following:
Depreciation and amortisation
(1,193)
(1,193)
(741)
(741)
(1,934)
Interest income1
34
34
20
20
54
Interest expense2
(21)
(21)
(18)
(18)
(39)
Income tax expense
(664)
(664)
(761)
(761)
(1,425)
1 Includes foreign exchange gains and other income of $29 million.
2 Includes foreign exchange losses and other expenses of $22 million.
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Additional Information
Notes to the financial statements continued
11. Investments in associates, joint ventures and other investments continued
Aggregate information of associates and joint ventures that are not individually material:
US$ million
2024
2023
The Group's share of income
369
282
The Group's share of other comprehensive (loss)/gain
(88)
24
The Group's share of total comprehensive income
281
306
Aggregate carrying value of the Group's interests
2,167
2,133
The amount of corporate guarantees in favour of associates and joint ventures as at 31 December 2024 was $226 million (2023:
$131 million). No amounts have been claimed or provided as at 31 December 2024. Glencore’s share of joint ventures’ capital
commitments amounts to $202 million (2023: $431 million).
Refer to note 35 for further details of the Group’s principal associates and joint ventures.
Other investments
Other investments comprise equity investments, other than investments in associates, recorded at fair value.
2024
US$ million
FVTOCI1
FVTPL2
Total
1 January
387
126
513
Additions
145
10
155
Disposals
(115)
(121)
(236)
Changes in mark-to-market valuations
(67)
3
(64)
Reclassification from associates and joint ventures
–
100
100
Total
350
118
468
2023
US$ million
FVTOCI1
FVTPL2
Total
1 January
419
37
456
Additions
62
108
170
Disposals
–
(39)
(39)
Changes in mark-to-market valuations
(94)
20
(74)
Total
387
126
513
1 FVTOCI - Fair value through other comprehensive income.
2 FVTPL - Fair value through profit and loss.
During the year, dividend income from equity investments designated at fair value through other comprehensive income amounted
to $7 million (2023: $6 million).
Refer to note 35 for further details of the Group’s principal other investments.
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Additional Information
Notes to the financial statements continued
12. Advances and loans
US$ million
Notes
2024
2023
Financial assets at amortised cost
Loans to associates
133
137
Advances and loans1
1,276
1,363
Deferred consideration
26
32
60
Rehabilitation trust fund2
160
148
1,601
1,708
Financial assets at fair value through profit and loss
Prepaid commodity forward contracts3
28
270
124
Other non-current receivables and loans
28
79
22
Convertible loans
28
171
136
520
282
Non-financial assets
Pension surpluses
24
381
189
Advances repayable with product
360
447
Land rights prepayment
150
150
Other tax and related non-current receivables
106
100
997
886
Total
3,118
2,876
1 Net of $Nil (2023: $261 million) provided by various banks, the repayment terms of which are contingent upon and connected to the future delivery of
contractual production.
2 The balance has been assessed for impairment and is deemed recoverable.
3 Net of $820 million (2023: $572 million) provided by various banks, the repayment terms of which are contingent upon and connected to the future delivery
of contractual production.
Financial assets at amortised cost
Loans to associates
Loans to associates generally bear interest at applicable floating market rates plus a premium.
Advances and loans
Various financing facilities, generally marketing related and secured against certain assets and/or payable from the future sale of
production of the counterparty. Secured financing arrangements are separable from contracts to buy or sell commodities and are
primarily settled in cash or another financial asset. They are interest bearing and on average are to be repaid over a three-year period.
Rehabilitation trust fund
Glencore makes contributions to controlled funds established to meet the costs of its restoration and rehabilitation liabilities, primarily
in South Africa. These funds are not available for the general purposes of the Group, and there is no present obligation to make any
further contributions.
Loss allowances of financial assets at amortised cost
The Group determines the expected credit loss of loans to associates, advances and loans (at amortised cost) and deferred
consideration based on different scenarios of probability of default and expected loss applicable to each of the material underlying
balances. Expected credit losses for these assets are measured as either 12-month expected credit losses, taking into account prior
experience regarding probability of default adjusted for forward-looking information, or as lifetime expected credit losses (when there
is significant increase in credit risk or the asset is credit impaired).
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Additional Information
Notes to the financial statements continued
12. Advances and loans continued
The movement in allowance for credit loss relating to financial assets classified at amortised cost is detailed below:
2024
Loans to associates
Advances and loans and deferred
consideration
US$ million
12-Month
ECL
Lifetime
ECL1
Total
12-Month
ECL
Lifetime
ECL2
Total
Total
Gross carrying value
1 January 2024
16
200
216
522
1,234
1,756
1,972
Increase during the period
3
–
3
217
101
318
321
Decrease during the period
(1)
(26)
(27)
(264)
(175)
(439)
(466)
Effect of foreign currency exchange
movements
–
(9)
(9)
(7)
–
(7)
(16)
Other movements
–
10
10
(4)
81
77
87
31 December 2024
18
175
193
464
1,241
1,705
1,898
Allowance for credit loss
1 January 2024
–
79
79
28
305
333
412
Released during the period3
–
(20)
(20)
(2)
(39)
(41)
(61)
Charged during the period3
–
–
–
19
98
117
117
Effect of foreign currency exchange
movements
–
(1)
(1)
(1)
–
(1)
(2)
Other movements
–
2
2
(1)
(10)
(11)
(9)
31 December 2024
–
60
60
43
354
397
457
Net carrying value 31 December 2024
18
115
133
421
887
1,308
1,441
2023
Loans to associates
Advances and loans and deferred
consideration
US$ million
12-Month
ECL
Lifetime
ECL1
Total
12-Month
ECL
Lifetime
ECL2
Total
Total
Gross carrying value
1 January 2023
15
191
206
364
717
1,081
1,287
Increase during the period
–
17
17
362
31
393
410
Decrease during the period
–
(2)
(2)
(70)
(262)
(332)
(334)
Assumed in business combination
–
–
–
8
–
8
8
Effect of foreign currency exchange
movements
–
(5)
(5)
1
–
1
(4)
Other movements
1
(1)
–
(143)
748
605
605
31 December 2023
16
200
216
522
1,234
1,756
1,972
Allowances for credit loss
1 January 2023
–
76
76
9
350
359
435
Released during the period3
–
(3)
(3)
(3)
(9)
(12)
(15)
Charged during the period3
–
2
2
27
127
154
156
Utilised during the period
–
–
–
–
(203)
(203)
(203)
Effect of foreign currency exchange
movements
–
1
1
(5)
1
(4)
(3)
Other movements
–
3
3
–
39
39
42
31 December 2023
–
79
79
28
305
333
412
Net carrying value 31 December 2023
16
121
137
494
929
1,423
1,560
1 Gross carrying amount comprises stage 2 receivables of $117 million (2023: $126 million) and stage 3 receivables of $58 million (2023: $74 million). Allowance
for credit losses comprises stage 2 credit losses of $31 million (2023: $31 million) and stage 3 credit losses of $29 million (2023: $48 million).
2 Gross carrying amount comprises stage 2 receivables of $840 million (2023: $738 million) and stage 3 receivables of $401 million (2023: $496 million).
Allowance for credit losses comprises stage 2 credit losses of $174 million (2023: $101 million) and stage 3 credit losses $180 million (2023: $204 million).
3 $8 million (2023: $135 million) recognised as impairment (see note 7) and the balancing charge of $48 million (2023: $6 million) recognised in net expected
credit losses.
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Additional Information
Notes to the financial statements continued
12. Advances and loans continued
Financial assets at fair value through profit and loss
Prepaid commodity forward contracts
Certain physically settled advances and prepayments which are not separable from contracts to buy or sell commodities and where
the commodities do not meet the own-use exemption criteria, are accounted for as financial instruments at fair value through profit
and loss.
Other non-current receivables and loans
During 2024, fair value movements of positive $6 million (2023: $7 million) were recognised in net changes in mark-to-market
valuations (see note 5).
Convertible loans
During 2024, fair value movements of negative $48 million (2023: $74 million) were recognised in net changes in mark-to-market
valuations (see note 5).
Non-financial assets
Advances repayable with product
Where physically settled advances and prepayments, which are not separable from contracts to buy or sell commodities, meet the
own-use exemption criteria, they are classified as non-financial assets and assessed for impairment.
Land rights prepayment
In August 2020, KCC advanced $150 million to La Générale des Carrières et des Mines (‘Gécamines’), to acquire a comprehensive land
package covering areas adjacent to KCC’s existing mining concessions for $250 million. If the closing conditions as prescribed in the
agreement are not fulfilled, Glencore has the right to accrue interest on the prepaid amount, terminate the agreement and, if funds
are not returned, offset against future amounts owing to Gécamines. The balance of the consideration is due five days after the
respective closing conditions of each area to be transferred are satisfied. During 2024, activities and discussions to facilitate access to
the land packages continued.
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Additional Information
Notes to the financial statements continued
13. Inventories
US$ million
2024
2023
Inventory at fair value less costs of disposal
13,816
14,441
Raw materials and consumables
5,079
5,827
Semi-finished products
5,046
4,955
Finished goods
5,639
6,346
Inventory at the lower of cost or net realisable value
15,764
17,128
Total current inventory
29,580
31,569
Raw materials and consumables
517
623
Inventory at the lower of cost or net realisable value
517
623
Total non-current inventory
517
623
Current inventory
The amount of inventories and related ancillary costs recognised as an expense during the period was $208,030 million (2023:
$188,291 million).
Fair value of inventories are predominantly a Level 2 fair value measurement using observable market prices obtained from
exchanges, traded reference indices or market survey services adjusted for relevant location and quality differentials. There are no
significant unobservable inputs in the fair value measurement of such inventories.
Inventories of $144 million (2023: $216 million) are a Level 3 fair value measurement using observable market prices obtained from
exchanges, traded reference indices or market survey services, adjusted for significant unobservable inputs such as relevant location
and quality differentials. Movements during the year comprise unrealised losses recognised in cost of goods sold of $5 million (2023:
$121 million), purchases of $196 million (2023: $574 million) and sales of $263 million (2023: $1,099 million). A 10% change in pricing
assumptions would result in a $6 million (2023: $4 million) adjustment to the current carrying value.
Glencore has a number of dedicated financing facilities, which finance a portion of its inventories. In each case, the inventory has not
been derecognised as the Group has not transferred control. The proceeds received are recognised as current borrowings (see note
21). As at 31 December 2024, the total amount of inventory pledged under such facilities was $1,896 million (2023: $1,808 million). The
proceeds received and recognised as current borrowings were $1,611 million (2023: $1,843 million).
Non-current inventory
Non-current inventories valued at lower of cost or net realisable value are not expected to be utilised or sold within the normal
operating cycle and are therefore classified as non-current inventory.
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Additional Information
Notes to the financial statements continued
14. Accounts receivable
US$ million
Notes
2024
2023
Financial assets at amortised cost
Trade receivables
3,083
4,281
Margin calls paid and other broker balances
3,392
3,036
Receivables from associates
194
352
Deferred consideration
26
35
73
Advances and loans1
767
1,050
7,471
8,792
Financial assets at fair value through profit and loss
Trade receivables containing provisional pricing features
28
7,795
6,229
Prepaid commodity forward contracts2
28
499
543
Other receivables and loans
28
122
8
Contingent considerations
28
–
137
8,416
6,917
Non-financial assets
Advances repayable with product
353
624
Other tax and related receivables3
1,541
2,052
1,894
2,676
Total
17,781
18,385
1 Net of $15 million (2023: $181 million) provided by banks, the repayment terms of which are contingent upon and connected to the future delivery of
contractual production over the next 12 months.
2 Net of $355 million (2023: $217 million) provided by banks, the repayment terms of which are contingent upon and connected to the future delivery of
contractual production over the next 12 months.
3 Comprises sales and other tax receivables of $1,393 million (2023: $1,892 million) and other receivables of $148 million (2023: $160 million).
Financial assets at amortised cost
Trade receivables
Trade receivables are separable from contracts to buy or sell commodities and are primarily settled in cash or another financial asset.
The average credit period on sales of goods is 17 days (2023: 20 days). The carrying value of trade receivables approximates fair value.
The Group applies a simplified approach to measure the loss allowance for trade receivables classified at amortised cost, using the
lifetime expected loss provision. The expected credit loss on trade receivables is estimated using a provision matrix by reference to
past default experience and credit rating, adjusted as appropriate for current observable data. Expected credit loss provisions are
recognised in net expected credit losses. During the period, a charge of $133 million (2023: gain of $6 million) was recognised, primarily
in relation to a previous overdue exposure. The following table details the aging risk profile of trade receivables based on the Group’s
provision matrix.
US$ million
Trade receivables – days past due
As at 31 December 2024
Not past due
<30
31 – 60
61 – 90
>90
Total
Gross carrying amount
2,812
113
51
32
89
3,097
Weighted average expected credit loss rate
0.44%
0.63%
0.73%
1.09%
1.16%
Lifetime expected credit loss
(12)
(1)
–
–
(1)
(14)
Total
2,800
112
51
32
88
3,083
US$ million
Trade receivables – days past due
As at 31 December 2023
Not past due
<30
31 – 60
61 – 90
>90
Total
Gross carrying amount
2,865
251
20
42
1,269
4,447
Weighted average expected credit loss rate
0.43%
0.62%
1.01%
1.01%
11.18%
Lifetime expected credit loss
(12)
(2)
–
–
(152)
(166)
Total
2,853
249
20
42
1,117
4,281
The Group determines the expected credit loss of receivables from associates, deferred consideration and other receivables (at
amortised cost) based on different scenarios of probability of default and expected loss applicable to each of the material underlying
balances. Expected credit losses for these assets are measured as either 12-month expected credit losses, taking into account prior
experience regarding probability of default adjusted for forward-looking information, or as lifetime expected credit losses (when there
is significant increase in credit risk or the asset is credit-impaired).
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Notes to the financial statements continued
14. Accounts receivable continued
The movement in allowance for credit loss relating to receivables from associates, deferred consideration and other receivables is
detailed below:
2024
Receivables from associates
Advances and loans and deferred
consideration
US$ million
12-Month
ECL
Lifetime
ECL1
Total
12-Month
ECL
Lifetime
ECL2
Total
Total
Gross carrying value
1 January 2024
342
127
469
929
399
1,328
1,797
Increase during the period
57
–
57
387
34
421
478
Decrease during the period
(199)
(113)
(312)
(512)
(155)
(667)
(979)
Assumed in business combination
–
–
–
6
–
6
6
Effect of foreign currency exchange
movements
–
–
–
(18)
(1)
(19)
(19)
Other movements
(36)
23
(13)
(15)
8
(7)
(20)
31 December 2024
164
37
201
777
285
1,062
1,263
Allowance for credit loss
1 January 2024
–
117
117
21
184
205
322
Released during the period3
–
(15)
(15)
(12)
(5)
(17)
(32)
Charged during the period3
–
–
–
32
16
48
48
Utilised during the period
–
(89)
(89)
(1)
(49)
(50)
(139)
Effect of foreign currency exchange
movements
–
(5)
(5)
(1)
–
(1)
(6)
Other movements
–
(1)
(1)
(2)
77
75
74
31 December 2024
–
7
7
37
223
260
267
Net carrying value 31 December 2024
164
30
194
740
62
802
996
2023
Receivables from associates
Other receivables and deferred
consideration
US$ million
12-Month
ECL
Lifetime
ECL1
Total
12-Month
ECL
Lifetime
ECL2
Total
Total
Gross carrying value
1 January 2023
432
136
568
896
185
1,081
1,649
Increase during the period
77
1
78
491
3
494
572
Decrease during the period
(166)
(16)
(182)
(429)
(84)
(513)
(695)
Assumed in business combination
–
–
–
13
–
13
13
Effect of foreign currency exchange
movements
1
4
5
(8)
3
(5)
–
Other movements
(2)
2
–
(34)
292
258
258
31 December 2023
342
127
469
929
399
1,328
1,797
Allowance for credit loss
1 January 2023
–
127
127
39
104
143
270
Released during the period3
–
(15)
(15)
(30)
–
(30)
(45)
Charged during the period3
–
4
4
11
101
112
116
Utilised during the period
–
–
–
–
(30)
(30)
(30)
Effect of foreign currency exchange
movements
–
4
4
(1)
4
3
7
Other movements
–
(3)
(3)
2
5
7
4
31 December 2023
–
117
117
21
184
205
322
Net carrying value 31 December 2023
342
10
352
908
215
1,123
1,475
1 Gross carrying value comprises stage 2 receivables of $Nil (2023: $9 million) and stage 3 receivables of $37 million (2023: $118 million). Allowance for credit
losses comprises stage 2 credit losses of $Nil (2023: $2 million) and stage 3 credit losses of $7 million (2023: $115 million).
2 Gross carrying value comprises stage 2 receivables of $62 million (2023: $170 million) and stage 3 receivables of $223 million (2023: $229 million). Allowance for
credit loss comprises stage 2 credit losses of $35 million (2023: $37 million) and stage 3 credit losses of $188 million (2023: $147 million).
3 $3 million recognised as impairment (2023: $92 million) (see note 7), $8 million (2023: $Nil) in loss on disposal of non-current assets (see note 4) and the
balancing $5 million charge (2023: $21 million net credit) recognised in net expected credit losses.
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Corporate Governance
Additional Information
Notes to the financial statements continued
14. Accounts receivable continued
Financial assets at fair value through profit and loss
Trade receivables containing provisional pricing features
Trade receivables containing provisional pricing features meet the definition of a derivative and are recorded at fair value through
profit and loss.
Prepaid commodity forward contracts
Certain physically settled advances and prepayments which are not separable from contracts to buy or sell commodities and where
the commodities do not meet the own-use exemption criteria, are accounted for as financial instruments at fair value through profit
and loss.
Other receivables and loans
During 2024, fair value movements of negative $27 million (2023: $Nil) were recognised in net changes in mark-to-market valuations
(see note 5).
Non-financial assets
Advances repayable with product
Where physically settled advances and prepayments, which are not separable from contracts to buy or sell commodities, meet the
own-use exemption criteria, they are classified as non-financial assets and assessed for impairment.
Glencore has a number of dedicated financing facilities, which finance a portion of its receivables. The receivables have not been
derecognised, as the Group retains the principal risks and rewards of ownership. The proceeds received are recognised as current
borrowings (see note 21). As at 31 December 2024, the total amount of trade receivables pledged was $1,235 million (2023: $794 million)
and proceeds received and classified as current borrowings amounted to $1,099 million (2023: $712 million).
15. Cash and cash equivalents
US$ million
2024
2023
Bank and cash on hand
1,700
1,415
Deposits and treasury bills
689
510
Total
2,389
1,925
Cash and cash equivalents comprise cash held at bank, cash in hand and short-term bank deposits with an original maturity of three
months or less. The carrying amount of these assets approximates their fair value.
As at 31 December 2024, $222 million (2023: $249 million) was restricted.
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Notes to the financial statements continued
16. Assets and liabilities held for sale
Net assets held for sale are measured at their carrying amount, being the lower of carrying amount and fair value less costs to sell. As
of 31 December 2024, the carrying amounts of assets and liabilities held for sale were lower than their fair value less costs to sell, hence
no gains or losses were recognised in the statement of income for the period.
The carrying value of the assets and liabilities classified as held for sale are detailed below:
2024
US$ million
Viterra
Total
Non-current assets
Investments in associates and joint ventures
3,592
3,592
Total net assets held for sale
3,592
3,592
Viterra
In June 2023, Glencore and its fellow shareholders in Viterra Limited, concluded an agreement with Bunge Limited to merge Bunge
and Viterra in a cash and stock transaction. Under the terms of the agreement, Glencore will receive c.$3.1 billion in Bunge stock
(based on Bunge’s stock price as at 30 June 2023) and $1.0 billion in cash for its c.50% stake in Viterra (Marketing, corporate activities
segment) resulting in a c.15% holding in the combined group, based on the number of Bunge shares outstanding at the time. The
transaction, subject to satisfaction of customary closing conditions including receipt of regulatory approvals, is expected to close in
the coming months.
2023
US$ million
Viterra
Volcan
Total
Non-current assets
Property, plant and equipment
–
1,245
1,245
Intangible assets
–
10
10
Investments in associates and joint ventures
3,711
148
3,859
Advances and loans
–
72
72
Deferred tax assets
–
37
37
3,711
1,512
5,223
Current assets
Inventories
–
48
48
Accounts receivable
–
65
65
Income tax receivable
–
28
28
Prepaid expenses
–
4
4
Cash and cash equivalents
–
62
62
–
207
207
Total assets held for sale
3,711
1,719
5,430
Non-current liabilities
Borrowings
–
(668)
(668)
Deferred tax liabilities
–
(94)
(94)
Provisions
–
(329)
(329)
Deferred income
–
(3)
(3)
–
(1,094)
(1,094)
Current liabilities
Borrowings
–
(123)
(123)
Accounts payable
–
(300)
(300)
Provisions
–
(18)
(18)
Income tax payable
–
(15)
(15)
–
(456)
(456)
Total liabilities held for sale
–
(1,550)
(1,550)
Total net assets held for sale
3,711
169
3,880
Non-controlling interest
–
302
302
Volcan
In May 2024, Glencore disposed of its 23.3% interest in Volcan, see note 26.
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Corporate Governance
Additional Information
Notes to the financial statements continued
17. Share capital and reserves
Number
of ordinary
shares
(thousand)
Share capital
(US$ million)
Share
premium
(US$ million)
Authorised:
31 December 2024 and 2023 Ordinary shares with a par value of $0.01 each
50,000,000
Issued and fully paid up:
1 January 2023 – Ordinary shares
14,086,200
141
36,717
Own shares cancelled during the year
(536,200)
(5)
(1,898)
Distributions paid (see note 19)
–
–
(6,450)
31 December 2023 – Ordinary shares
13,550,000
136
28,369
Distributions paid (see note 19)
–
–
(1,580)
31 December 2024 – Ordinary shares
13,550,000
136
26,789
Treasury Shares
Trust Shares
Total
Number
of shares
(thousand)
Own
shares
(US$ million)
Number
of shares
(thousand)
Own
shares
(US$ million)
Number
of shares
(thousand)
Own
shares
(US$ million)
Own shares:
1 January 2023
1,265,697
(5,560)
55,646
(301)
1,321,343
(5,861)
Purchased during the year
625,956
(3,672)
–
–
625,956
(3,672)
Transferred to satisfy employee share
awards
(25,000)
75
25,000
(132)
–
(57)
Disposed during the year
–
–
(34,511)
187
(34,511)
187
Cancelled during the year
(536,200)
1,903
–
–
(536,200)
1,903
31 December 2023
1,330,453
(7,254)
46,135
(246)
1,376,588
(7,500)
Purchased during the year
18,835
(110)
25,000
(120)
43,835
(230)
Disposed during the year
–
–
(27,678)
146
(27,678)
146
31 December 2024
1,349,288
(7,364)
43,457
(220)
1,392,745
(7,584)
Own shares
Own shares comprise shares acquired under the Company’s share buyback programmes (‘Treasury Shares’) and shares of Glencore
plc held by Group employee benefit trusts (‘the Trusts’) to satisfy the potential future settlement of the Group’s employee stock plans
(‘Trust Shares’).
The Trusts also coordinate the funding and manage the delivery of Trust Shares and free share awards under certain of Glencore’s
share plans. The Trust Shares have been acquired by either stock market purchases or share issues from the Company. The Trusts
may hold an aggregate of Trust Shares up to 5% of the issued share capital of the Company at any one time and are permitted to sell
them. The Trusts have waived the right to receive distributions from the Trust Shares that they hold. Costs relating to the
administration of the Trusts are expensed in the period in which they are incurred.
During the year, Glencore purchased the remaining $110 million of shares under the $1.2 billion share buyback programme
announced in August 2023.
In line with the policy to reduce and maintain from time to time treasury shares below 10% of total issued share capital, in February
2023 Glencore cancelled 286 million treasury shares, in June 2023 cancelled 100 million treasury shares, in September 2023 cancelled
100 million treasury shares, and in December 2023 cancelled 50 million treasury shares.
As at 31 December 2024, 1,392,745,352 shares (2023: 1,376,588,292 shares), including 1,349,288,041 Treasury Shares (2023: 1,330,453,041
shares), equivalent to 10.28% (2023: 10.16%) of the issued share capital were held at a cost of $7,584 million (2023: $7,500 million) and
market value of $6,163 million (2023: $8,279 million).
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Notes to the financial statements continued
17. Share capital and reserves continued
Other reserves
US$ million
Foreign
currency
translation
reserve
Cash flow
hedge reserve
Net
unrealised
gain/(loss)
Net ownership
changes in
subsidiaries
Total
1 January 2024
(2,846)
(42)
(1,522)
(2,622)
(7,032)
Exchange loss on translation of foreign operations
(170)
–
–
–
(170)
Items recycled to the statement of income on
restructuring of intragroup debt (see note 5)
345
–
–
–
345
Loss on cash flow hedges, net of tax
–
(1)
–
–
(1)
Loss on equity investments accounted for at fair value
through other comprehensive income, net of tax
–
–
(63)
–
(63)
Change in ownership interest in subsidiaries (see note 34)
–
–
3
413
416
Loss due to changes in credit risk on financial liabilities
accounted for at fair value through profit and loss
–
–
(5)
–
(5)
Realisation of FVTOCI movements
–
–
699
–
699
31 December 2024
(2,671)
(43)
(888)
(2,209)
(5,811)
1 January 2023
(2,673)
(97)
(1,417)
(2,646)
(6,833)
Exchange loss on translation of foreign operations
(170)
–
–
–
(170)
Items recycled to the statement of income upon disposal
of subsidiaries (see note 26)
(3)
–
–
–
(3)
Gain on cash flow hedges, net of tax
–
55
–
–
55
Loss on equity investments accounted for at fair value
through other comprehensive income, net of tax
–
–
(93)
–
(93)
Change in ownership interest in subsidiaries (see note 34)
–
–
–
24
24
Loss due to changes in credit risk on financial liabilities
accounted for at fair value through profit and loss
–
–
(12)
–
(12)
31 December 2023
(2,846)
(42)
(1,522)
(2,622)
(7,032)
The translation adjustment reserve is used to capture the cumulative impact of foreign currency translation adjustments arising from
the Group’s non-USD denominated functional currency subsidiaries.
The cash flow hedge reserve is used to accumulate the gains and losses from the effective portion of hedging instruments contained
within hedge relationships until the hedged item impacts profit or loss. Cost of hedging is recorded within the cash flow hedge
reserve due to its immaterial amount.
The net unrealised gain/loss reserve is used to accumulate the gains and losses associated with the remeasurement of the Group’s
investments carried at FVTOCI and changes in credit risk on financial liabilities measured at FVTPL.
The net ownership changes in subsidiaries reserve is used to capture equity movements arising from changes in the Group’s
ownership in its subsidiaries.
2024 Glencore Annual Report
214
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Corporate Governance
Additional Information
Notes to the financial statements continued
18. Earnings per share
US$ million
2024
2023
(Loss)/income attributable to equity holders of the Parent for basic earnings per share
(1,634)
4,280
Weighted average number of shares for the purposes of basic earnings per share (thousand)
12,152,042
12,425,821
Effect of dilution:
Equity-settled share-based payments (thousand)1
120,020
112,115
Weighted average number of shares for the purposes of diluted earnings per share (thousand)
12,272,062
12,537,936
Basic (loss)/earnings per share (US$)
(0.13)
0.34
Diluted (loss)/earnings per share (US$)
(0.13)
0.34
Headline earnings
Headline earnings is a Johannesburg Stock Exchange (JSE) defined performance measure. The calculation of basic and diluted
earnings per share, based on headline earnings as determined by the requirements of the Circular 1/2023 as issued by the
South African Institute of Chartered Accountants (SAICA), is reconciled using the following data:
US$ million
2024
2023
(Loss)/income attributable to equity holders of the Parent for basic earnings per share
(1,634)
4,280
Net loss/(gain) on disposals of non-current assets2
337
(850)
Net loss/(gain) on disposals of non-current assets – non-controlling interest
1
(5)
Net loss/(gain) on disposals of non-current assets – tax
3
192
Impairments3
1,983
2,731
Impairments – non-controlling interest
(239)
(349)
Impairments – tax
(271)
(495)
Headline and diluted earnings for the year
180
5,504
Headline earnings per share (US$)
0.01
0.44
Diluted headline earnings per share (US$)
0.01
0.44
1 These equity-settled share-based payments could potentially dilute basic earnings per share in the future, but did not impact diluted loss per share because
they were anti-dilutive.
2 See note 4.
3 Comprises impairments of property, plant and equipment and intangible assets, investments, advances and loans (see note 7) and Glencore’s share of
impairments booked directly by associates (see note 2).
19. Distributions
US$ million
2024
2023
Paid during the year:
First tranche distribution – $0.065 per ordinary share (2023: $0.22)
790
2,750
Second tranche and additional 2023 distribution – $0.065 per ordinary share (2023: $0.30)
790
3,700
Total
1,580
6,450
The proposed distribution in respect of the year ended 31 December 2024 of $0.10 per ordinary share amounting to some $1.2 billion is
subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial
statements. Such declared distribution is expected to be paid equally ($0.05 each) in June 2025 and September 2025.
A distribution of $0.13 per ordinary share amounting to $1,580 million was paid in 2024.
2024 Glencore Annual Report
215
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Corporate Governance
Additional Information
Notes to the financial statements continued
20. Share-based payments
Number of
awards
granted
(thousands)
Fair value at
grant date
(US$ million)
Number
of awards
outstanding
2024
(thousands)
Number
of awards
outstanding
2023
(thousands)
Expense
recognised
2024
(US$ million)
Expense
recognised
2023
(US$ million)
Deferred awards
2018 Series
12,891
65
1,170
1,170
1
2
2019 Series
10,791
37
–
667
–
–
2021 Series
21,327
94
217
217
–
–
2022 Series
6,719
40
316
2,875
1
1
2023 Series1
37,889
204
33,036
36,915
(1)
198
2024 Series
5,535
34
5,475
–
10
–
95,152
40,214
41,844
11
201
Performance share
awards
2018 Series
28,499
104
833
2,218
1
1
2019 Series
29,705
90
632
690
–
1
2020 Series
33,583
104
466
8,933
1
10
2021 Series
27,012
130
6,651
16,039
13
33
2022 Series
25,580
166
14,430
22,134
38
79
2023 Series1
27,642
157
24,646
20,257
81
3
2024 Series
32,205
155
32,148
–
4
–
204,226
79,806
70,271
138
127
Total
299,378
120,020
112,115
149
328
1 During the current year, 334,101 shares were granted as part of the deferred awards 2023 series and 7,395,236 shares were granted as part of the
performance share awards 2023 series, resulting in an increase of the fair value at grant date amount of $2 million for deferred share awards and $41 million
for performance share awards.
Until 2021, deferred awards were made under the Company’s Deferred Bonus Plan and performance share awards were made under
the Company’s Performance Share Plan. In May 2021, the Company introduced a single Incentive Plan which replaced these plans,
and under which both deferred awards and performance share awards continue to be made.
Deferred awards
Under a deferred award the payment of a portion of a participant’s annual bonus is deferred for a period of one to seven years as an
award of either ordinary shares (a ‘‘Bonus Share Award’’) or cash. Awards vest over a specified period, subject to continued
employment and forfeiture for malus events. The Bonus Share Awards may be satisfied, at Glencore’s option, in shares by the issue of
new ordinary shares, by the transfer of ordinary shares held in treasury or by the transfer of ordinary shares purchased in the market
or in cash, with a value equal to the market value of the award at settlement, including distributions paid between award and settling.
Glencore currently intends to settle all Bonus Share Awards in shares. The associated expense is recorded in the statement of
income/loss as part of the expense for performance bonuses. The fair value at grant date is determined as the monthly volume-
weighted average share price (VWAP) of Glencore plc prior to the respective award date.
Performance share awards
Performance share awards vest in tranches over a specified period, subject to continued employment and forfeiture for malus events.
At grant date, each award is equivalent to one ordinary share of Glencore. Awards vest in one, two or three tranches on 31 January or
30 June of the years following the year of grant, as may be the case. The awards may be satisfied, at Glencore’s option, in shares by the
issue of new ordinary shares, by the transfer of ordinary shares held in treasury or by the transfer of ordinary shares purchased in the
market or in cash, with a value equal to the market value of the award at vesting, including distributions paid between award and
vesting. Glencore currently intends to settle these awards in shares. The fair value at grant date is determined as the monthly VWAP
of Glencore plc prior to the respective award date.
2024 Glencore Annual Report
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Corporate Governance
Additional Information
Notes to the financial statements continued
21. Borrowings
US$ million
Notes
2024
2023
Non-current borrowings
Capital market notes
19,867
18,587
Amount drawn under revolving credit facilities
3,310
1,306
Lease liabilities
1,231
961
EVR partners and JV loan
407
–
Other bank loans
449
421
Total non-current borrowings
25,264
21,275
Current borrowings
Secured inventory/receivables/other facilities
11/13/14
2,885
2,680
Amount drawn under revolving credit facilities
150
150
US commercial paper
857
1,044
Capital market notes
3,163
2,823
Lease liabilities
611
547
Other bank loans1
5,177
3,722
Total current borrowings
12,843
10,966
Total borrowings
38,107
32,241
1 Comprises various uncommitted bilateral bank credit facilities and other financings.
Changes in liabilities arising from financing activities
Liabilities arising from financing activities are those for which cash flows are classified in the Group's consolidated cash flow statement
as cash flows from financing activities. The table below details changes in the Group's liabilities arising from financing activities,
including both cash and non-cash changes.
2024
US$ million
Borrowings
excluding
lease
liabilities
Lease
liabilities
Total
borrowings
Cross currency
and interest
rate swaps and
net margins1
Total
liabilities
arising from
financing
activities
1 January 2024
30,733
1,508
32,241
55
32,296
Cash-related movements2
Proceeds from issuance of capital market notes
4,797
–
4,797
–
4,797
Repayment of capital market notes
(2,829)
–
(2,829)
23
(2,806)
Proceeds from revolving credit facilities
1,995
–
1,995
–
1,995
Repayment of other non-current borrowings
(137)
–
(137)
–
(137)
Repayment of lease liabilities
–
(844)
(844)
–
(844)
Margin payments for financing-related hedging activities
–
–
–
(693)
(693)
Payments of US commercial papers
(187)
–
(187)
–
(187)
Proceeds from current borrowings
1,916
–
1,916
–
1,916
5,555
(844)
4,711
(670)
4,041
Non-cash related movements
Borrowings acquired in business combinations3
411
159
570
–
570
Fair value adjustment to fair value hedged borrowings
(12)
–
(12)
–
(12)
Fair value movement of hedging derivatives
–
–
–
694
694
Foreign exchange movements
(399)
(52)
(451)
–
(451)
Change in lease liabilities
–
1,071
1,071
–
1,071
Interest on convertible bonds
23
–
23
–
23
Other movements
(46)
–
(46)
–
(46)
(23)
1,178
1,155
694
1,849
31 December 2024
36,265
1,842
38,107
79
38,186
1 The currency and interest rate swaps are reported on the statement of financial position within the headings ‘Other financial assets’ and ‘Other financial
liabilities’ (see note 27) and margin calls paid/received within accounts receivable/payable (see notes 14 and 25).
2 See consolidated statement of cash flows.
3 See note 26.
2024 Glencore Annual Report
217
Strategic Report
Corporate Governance
Additional Information
Notes to the financial statements continued
21. Borrowings continued
2023
US$ million
Borrowings
excluding
lease
liabilities
Lease
liabilities
Total
borrowings
Cross currency
and interest
rate swaps and
net margins1
Total
liabilities
arising from
financing
activities
1 January 2023
27,398
1,379
28,777
(154)
28,623
Cash-related movements2
Proceeds from issuance of capital market notes
3,474
–
3,474
–
3,474
Repayment of capital market notes
(2,996)
–
(2,996)
(163)
(3,159)
Proceeds from revolving credit facilities
1,289
–
1,289
–
1,289
Repayment of other non-current borrowings
(314)
–
(314)
–
(314)
Repayment of lease liabilities
–
(616)
(616)
–
(616)
Margin receipts from financing-related hedging activities
–
–
–
897
897
Proceeds from US commercial papers
711
–
711
–
711
Proceeds from current borrowings
430
–
430
–
430
2,594
(616)
1,978
734
2,712
Non-cash related movements
Borrowings acquired in business combinations3
6
9
15
–
15
Fair value adjustment to fair value hedged borrowings
410
–
410
–
410
Fair value movement of hedging derivatives
–
–
–
(525)
(525)
Foreign exchange movements
248
(1)
247
–
247
Change in lease liabilities
–
737
737
–
737
Interest on convertible bonds
22
–
22
–
22
Other movements
55
–
55
–
55
741
745
1,486
(525)
961
31 December 2023
30,733
1,508
32,241
55
32,296
1 The currency and interest rate swaps are reported on the statement of financial position within the headings ‘Other financial assets’ and ‘Other financial
liabilities’ (see note 27) and margin calls paid/received within accounts receivable/payable (see notes 14 and 25).
2 See consolidated statement of cash flows.
3 See note 26.
2024 Glencore Annual Report
218
Strategic Report
Corporate Governance
Additional Information
Notes to the financial statements continued
21. Borrowings continued
Capital market notes
US$ million
Maturity
2024
2023
Euro 750 million 1.75% coupon bonds
Mar 2025
–
799
Euro 500 million 3.75% coupon bonds
Apr 2026
510
534
Euro 500 million 1.50% coupon bonds
Oct 2026
494
512
Euro 950 million 1.125% coupon bonds
Mar 2028
983
1,050
Euro 600 million 0.75% coupon bonds
Mar 2029
549
570
Euro 600 million 4.154% coupon bonds
Apr 2031
629
–
Euro 500 million 1.25% coupon bonds
Mar 2033
402
421
Eurobonds
3,567
3,886
GBP 500 million 3.125% coupon bonds
Mar 2026
599
596
Sterling bonds
599
596
CHF 250 million 0.35% coupon bonds
Sep 2025
–
297
CHF 225 million 1.00% coupon bonds
Mar 2027
249
268
CHF 150 million 0.50% coupon bonds
Sep 2028
161
167
CHF 150 million 2.215% coupon bonds
Jan 2030
171
–
Swiss Franc bonds
581
732
US$ 625 million non-dilutive convertible bonds
Mar 2025
–
596
US$ 500 million 4.00% coupon bonds
Apr 2025
–
481
US$ 1,000 million 1.625% coupon bonds
Sep 2025
–
997
US$ 600 million 1.625% coupon bonds
Apr 2026
572
554
US$ 1,000 million 4.00% coupon bonds
Mar 2027
955
945
US$ 50 million 4.00% coupon bonds
Mar 2027
50
50
US$ 350 million variable coupon bonds
Apr 2027
349
–
US$ 800 million 5.338% coupon bonds
Apr 2027
801
–
US$ 500 million 3.875% coupon bonds
Oct 2027
472
470
US$ 500 million 5.40% coupon bonds
May 2028
487
492
US$ 750 million 6.125% coupon bonds
Oct 2028
755
773
US$ 750 million 4.875% coupon bonds
Mar 2029
701
709
US$ 1,100 million 5.371% coupon bonds
Apr 2029
1,094
–
US$ 1,000 million 2.50% coupon bonds
Sep 2030
995
994
US$ 750 million 6.375% coupon bonds
Oct 2030
756
781
US$ 600 million 2.85% coupon bonds
Apr 2031
506
514
US$ 750 million 2.625% coupon bonds
Sep 2031
628
638
US$ 500 million 5.70% coupon bonds
May 2033
466
485
US$ 1,000 million 6.50% coupon bonds
Oct 2033
1,009
1,059
US$ 1,250 million 5.634% coupon bonds
Apr 2034
1,225
–
US$ 250 million 6.20% coupon bonds
Jun 2035
266
267
US$ 500 million 6.90% coupon bonds
Nov 2037
571
575
US$ 497 million 6.00% coupon bonds
Nov 2041
532
533
US$ 468 million 5.30% coupon bonds
Oct 2042
472
473
US$ 500 million 3.875% coupon bonds
Apr 2051
496
496
US$ 500 million 3.375% coupon bonds
Sep 2051
489
491
US$ 500 million 5.893% coupon bonds
Apr 2054
473
–
US$ bonds
15,120
13,373
Total non-current bonds
19,867
18,587
Euro 600 million 0.625% coupon bonds
Sep 2024
–
663
Euro 750 million 1.75% coupon bonds
Mar 2025
773
–
CHF 175 million 1.25% coupon bonds
Oct 2024
–
205
CHF 250 million 0.35% coupon bonds
Sep 2025
276
–
US$ 974 million 4.125% coupon bonds
Mar 2024
–
974
US$ 990 million 4.625% coupon bonds
Apr 2024
–
981
US$ 625 million non-dilutive convertible bonds
Mar 2025
619
–
US$ 500 million 4.00% coupon bonds
Apr 2025
496
–
US$ 1,000 million 1.625% coupon bonds
Sep 2025
999
–
Total current bonds
3,163
2,823
2024 Glencore Annual Report
219
Strategic Report
Corporate Governance
Additional Information
Notes to the financial statements continued
21. Borrowings continued
2024 Bond activities
• In January 2024, issued:
– 6-year CHF 150 million, 2.215% coupon bond
• In April 2024, issued:
– 7-year EUR 600 million, 4.154% coupon bond
– 3-year $350 million, variable coupon bond
– 3-year $800 million, 5.338% coupon bond
– 5-year $1,100 million, 5.371% coupon bond
– 10-year $1,250 million, 5.634% coupon bond
– 30-year $500 million, 5.893% coupon bond
2023 Bond activities
• In May 2023, issued:
– 5-year $500 million, 5.40% coupon bond
– 10-year $500 million, 5.70% coupon bond
• In October 2023, issued:
– 5-year $750 million, 6.125% coupon bond
– 7-year $750 million, 6.375% coupon bond
– 10-year $1,000 million, 6.50% coupon bond
Committed revolving credit facilities
In March 2024 (effective May 2024), Glencore extended its core syndicated revolving credit facilities.
As at 31 December 2024, the facilities comprise:
• $9,010 million one-year revolving credit facility with a one-year borrower’s term-out option (to May 2026); and
• $3,900 million medium-term revolving credit facility (to May 2029).
As in previous years, these committed unsecured facilities contain no financial covenants, no rating triggers, no material adverse
change clauses and no external factor clauses.
Secured facilities
US$ million
Maturity1
Interest
2024
2023
Syndicated uncommitted metals and oil
inventory/receivables facilities
Jul 2025
SOFR + 65 bps
1,600
712
Other secured facilities1
Feb 2025
5.1%
1,285
1,968
Total
2,885
2,680
Current
2,885
2,680
Non-current
–
–
1 Comprises various facilities. The maturity and interest detail represent the weighted average of the various debt balances outstanding at year end.
2024 Glencore Annual Report
220
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Corporate Governance
Additional Information
Notes to the financial statements continued
22. Deferred income
US$ million
Notes
Unfavourable
contracts
Prepayments
Prepayments
at FVTPL1
(see note 28)
Total
1 January 2024
197
1,253
888
2,338
Additions
–
39
1,595
1,634
Accretion in the year
–
84
–
84
Revenue recognised in the year
(67)
(250)
(853)
(1,170)
Effect of foreign currency exchange difference
(2)
(1)
–
(3)
Mark-to-market
–
–
12
12
31 December 2024
128
1,125
1,642
2,895
Current
33
194
1,559
1,786
Non-current
95
931
83
1,109
1 January 2023
265
1,149
1,193
2,607
Additions
–
113
822
935
Accretion in the year
–
89
–
89
Revenue recognised in the year
(64)
(145)
(1,130)
(1,339)
Acquired in business combination
26
–
39
–
39
Effect of foreign currency exchange difference
(4)
8
–
4
Mark-to-market
–
–
3
3
31 December 2023
197
1,253
888
2,338
Current
73
193
778
1,044
Non-current
124
1,060
110
1,294
1 FVTPL – Fair value through profit and loss.
Unfavourable contracts
In several business combinations, Glencore recognised liabilities related to various assumed contractual agreements to deliver tonnes
of coal over various periods ending until 2032 at fixed prices lower than the prevailing market prices on the respective acquisition
dates.
These amounts are released to revenue as the underlying commodities are delivered to the buyers over the life of the contracts at
rates consistent with the extrapolated forward price curves at the time of the acquisitions.
Prepayments
Prepayments comprise various short- to long-term product supply agreements whereby an upfront prepayment is received in
exchange for the future delivery of a product. The arrangements are accounted for as executory contracts whereby the advance
payment is recorded as deferred revenue. Revenue is recognised in the consolidated statement of income as specific products are
delivered, at the implied forward price curve at the time of transaction execution together with an accretion expense, representing
the time value of the prepayment received.
Prepayments related to long-term streaming agreements for the future delivery of gold and/or silver produced over the life of mine
from our Antamina and Antapaccay operations represent the majority of this balance. In addition to the upfront payments received,
Glencore receives ongoing amounts equal to 20% of the spot silver or gold price, as the case may be. Once certain delivery thresholds
have been met at Antapaccay, the ongoing cash payment increases to 30% of the spot gold price. As at 31 December 2024, $959
million (2023: $990 million) of product delivery obligations remain, of which $63 million (2023: $30 million) are due within 12 months.
Prepayments at FVTPL
Prepayments at FVPTL comprise various short- to long-term product supply agreements accounted for as financial instruments,
whereby an upfront prepayment is received in exchange for the future delivery of a specific product or financial asset which is not
separable from the contract to sell the commodities. Revenue is recognised in the consolidated statement of income as specific
products are delivered or the financial obligation is settled.
2024 Glencore Annual Report
221
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Corporate Governance
Additional Information
Notes to the financial statements continued
23. Provisions
US$ million
Notes
Rehabilitation
costs
Onerous
contracts
Other
provisions
Total
1 January 2024
8,180
320
713
9,213
Utilised
(520)
(147)
(243)
(910)
Released
(126)
(55)
(56)
(237)
Accretion
204
25
22
251
Assumed in business combination
26
2,202
66
75
2,343
Additions
992
173
298
1,463
Effect of foreign currency exchange movements
(45)
–
(38)
(83)
31 December 2024
10,887
382
771
12,040
Current
812
189
325
1,326
Non-current
10,075
193
446
10,714
1 January 2023
6,963
530
1,095
8,588
Utilised
(366)
(157)
(576)
(1,099)
Released
(20)
(100)
(29)
(149)
Accretion
122
35
8
165
Assumed in business combination
26
213
–
46
259
Disposal of subsidiaries
26
(33)
–
–
(33)
Additions
1,350
12
153
1,515
Effect of foreign currency exchange movements
(49)
–
16
(33)
31 December 2023
8,180
320
713
9,213
Current
680
153
275
1,108
Non-current
7,500
167
438
8,105
Rehabilitation costs
Rehabilitation provision represents the accrued costs required to provide adequate restoration and rehabilitation upon the
completion of production activities. These amounts will be settled when rehabilitation is undertaken, generally at the end of a
project’s life, which ranges from sites already being rehabilitated to in excess of 50 years with an average for all sites, weighted by
closure provision, of some 26 years (2023: 18 years). Discount rates were determined by reference to the average annual real-terms
return on a relevant government security with a tenor of 20 years.
As at 31 December 2024, the discount rates applied in calculating the restoration and rehabilitation provision are pre-tax risk free rates
specific to the liability and the functional currency of operations and are as follows: US dollar 2.0% (2023: 1.85%) and South African rand
7.2% (2023: 7.3%).
The sensitivity of the rehabilitation costs provision to changes in the discount rate assumptions as at 31 December 2024, assuming
that all other assumptions are held constant, is set out below:
Discount rate
US$ million
Increase 1%
Decrease 1%
Decrease/(increase) in overall rehabilitation provision
1,397
(1,907)
(Decrease)/increase in property, plant and equipment
(1,016)
1,429
Net increase/(decrease) in statement of income
381
(478)
Effect in the following year
Decrease/(increase) in depreciation expense
39
(55)
(Increase)/decrease in interest expense
(17)
34
Net increase/(decrease) in statement of income
22
(21)
Onerous contracts
Onerous contracts represent liabilities related to contractual take or pay commitments for securing coal logistics capacity over various
periods ending until 2039 at fixed prices and quantities higher than the acquisition date forecasted usage and prevailing market
price. The provision is released to costs of goods sold as the underlying commitments are incurred.
Other provisions
Other comprises provisions for possible demurrage, closure and severance, mine concession and construction-related claims and
various other individually immaterial legal matters. This balance comprises no individually material provisions.
2024 Glencore Annual Report
222
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Corporate Governance
Additional Information
Notes to the financial statements continued
24. Personnel costs and employee benefits
US$ million
Notes
Post-
retirement
employee
benefits
Other
employee
entitlements
Total
1 January 2024
551
249
800
Utilised
(109)
(7)
(116)
Released
(6)
(7)
(13)
Accretion
17
–
17
Assumed in business combination
26
47
–
47
Additions
122
2
124
Actuarial loss
(71)
–
(71)
Effect of foreign currency exchange movements
(15)
(9)
(24)
31 December 2024
536
228
764
1 January 2023
488
189
677
Utilised
(78)
(6)
(84)
Released
(1)
(4)
(5)
Accretion
21
–
21
Additions
96
71
167
Actuarial gain
14
–
14
Effect of foreign currency exchange movements
11
(1)
10
31 December 2023
551
249
800
The provision for post-retirement employee benefits includes pension plan liabilities of $186 million (2023: $220 million) and post-
retirement medical plan liabilities of $350 million (2023: $331 million).
The other employee entitlements provision represents the value of employee entitlements due to employees upon their termination
of employment. The associated expenditure will occur in a pattern consistent with when employees choose to exercise their
entitlements.
Total personnel costs, which include salaries, wages, social security, other personnel costs and share-based payments, incurred for the
years ended 31 December 2024 and 2023, were $6,429 million and $5,969 million, respectively. Personnel costs related to consolidated
industrial subsidiaries of $4,943 million (2023: $4,478 million) are included in cost of goods sold. Other personnel costs, including
deferred bonus and performance share plans, are included in selling and administrative expenses.
The Company and certain subsidiaries sponsor various pension schemes in accordance with local regulations and practices. Eligibility
for participation in the various plans is either based on completion of a specified period of continuous service, or date of hire. Among
these schemes are defined contribution plans as well as defined benefit plans.
Defined contribution plans
Glencore’s contributions under these plans amounted to $191 million in 2024 (2023: $176 million).
Post-retirement medical plans
The Company participates in a number of post-retirement medical plans in Canada, USA and South Africa, which provide coverage
for prescription drugs, medical, dental, hospital and life insurance to eligible retirees. Almost all of the post-retirement medical plans
in the Group are unfunded.
2024 Glencore Annual Report
223
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Corporate Governance
Additional Information
Notes to the financial statements continued
24. Personnel costs and employee benefits continued
Defined benefit pension plans
The Company operates defined benefit plans in various countries, the main locations being Canada, Switzerland, UK and the US.
Approximately 69% of the present value of the pension obligations accrued relates to the defined benefit plans in Canada, which are
pension plans that provide benefits to members in the form of a guaranteed level of pension payable for life. Contributions to the
Canadian plans are made to meet or exceed minimum funding requirements based on provincial statutory requirements and
associated federal taxation rules.
The majority of benefit payments are from trustee-administered funds; however, there are also a number of unfunded plans where
Glencore meets the benefit payments as they fall due. Plan assets held in trusts are governed by local regulations and practices in
each country. Responsibility for governance of the plans – overseeing all aspects of the plans including investment decisions and
contribution schedules – lies with Glencore. Glencore has set up committees to assist in the management of the plans and has also
appointed experienced, independent professional experts such as investment managers, actuaries, custodians, and trustees.
The movement in the defined benefit pension and post-retirement medical plans over the year is as follows:
Defined benefit pension plans
US$ million
Notes
Post-
retirement
medical plans
Present value
of defined
benefit
obligation
Fair value
of plan
assets1
Net liability
for defined
benefit
pension plans
1 January 2024
331
2,119
(2,088)
31
Current service cost
8
51
–
51
Past service cost – plan amendments
–
3
–
3
Settlement of pension plan
–
(123)
119
(4)
Interest expense/(income)
23
90
(96)
(6)
Total expense recognised in consolidated statement of
income
31
21
23
44
Gain on plan assets, excluding amounts included
in interest expense – net
–
–
(78)
(78)
Gain from change in demographic assumptions
–
(2)
–
(2)
Loss from change in financial assumptions
2
13
–
13
Gain from actuarial experience
(4)
(2)
–
(2)
Actuarial (gains)/losses recognised in consolidated
statement of comprehensive income
(2)
9
(78)
(69)
Employer contributions
–
–
(90)
(90)
Employee contributions
–
4
(4)
–
Benefits paid directly by the Company
(19)
(7)
7
–
Benefits paid from plan assets
–
(110)
110
–
Net cash (outflow)/inflow
(19)
(113)
23
(90)
Acquisition of business
26
37
408
(532)
(124)
Exchange differences
(28)
(160)
173
13
31 December 2024
350
2,284
(2,479)
(195)
Of which:
Pension surpluses
12
–
(381)
Pension deficits
350
186
1 Fair value of plan assets are presented net of $20 million of irrevocable surplus relating to asset ceiling.
The actual return on plan assets in respect of defined benefit pension plans amounted to a gain of $1 million (2023: $260 million),
comprising interest income and the re-measurement of plan assets, including exchange differences.
During the next financial year, the Group expects to make a contribution of $66 million in respect of the defined benefit pension and
post-retirement medical plans across all countries, including current service costs and contributions required by pension legislation.
Contributions over the next five years for the Canadian plans only, based on the most recently filed actuarial reports, approximate $93
million. Future funding requirements and contributions are reviewed and adjusted on an annual basis.
2024 Glencore Annual Report
224
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Corporate Governance
Additional Information
Notes to the financial statements continued
24. Personnel costs and employee benefits continued
Defined benefit pension plans
US$ million
Notes
Post-
retirement
medical plans
Present value
of defined
benefit
obligation
Fair value
of plan
assets
Net liability
for defined
benefit
pension plans
1 January 2023
310
1,912
(1,882)
30
Current service cost
4
41
–
41
Past service cost – plan amendments
–
9
–
9
Interest expense/(income)
18
91
(88)
3
Total expense/(income) recognised in consolidated
statement of income
22
141
(88)
53
Gain on plan assets, excluding amounts included
in interest expense – net
–
–
(107)
(107)
Gain from change in demographic assumptions
(9)
(3)
–
(3)
Loss from change in financial assumptions
19
99
–
99
Loss from actuarial experience
3
12
–
12
Actuarial losses/(gains) recognised in consolidated
statement of comprehensive income
13
108
(107)
1
Employer contributions
–
–
(60)
(60)
Employee contributions
–
4
(4)
–
Benefits paid directly by the Company
(18)
(8)
8
–
Benefits paid from plan assets
–
(110)
110
–
Net cash (outflow)/inflow
(18)
(114)
54
(60)
Exchange differences
4
72
(65)
7
31 December 2023
331
2,119
(2,088)
31
Of which:
Pension surpluses
12
–
(189)
Pension deficits
331
220
The defined benefit obligation accrued in Canada represents the majority for the Company. The breakdown below provides details of
the Canadian plans for both the statement of financial position and the weighted average duration of the defined benefit obligation
as at 31 December 2024 and 2023. The net liability of any of the Group’s defined benefit plans outside of Canada as at 31 December
2024 does not exceed $97 million (2023: $74 million).
2024 Glencore Annual Report
225
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Corporate Governance
Additional Information
Notes to the financial statements continued
24. Personnel costs and employee benefits continued
2024
US$ million
Canada
Other
Total
Post-retirement medical plans
Present value of defined benefit obligation
307
43
350
of which: amounts owing to active members
107
8
115
of which: amounts owing to pensioners
200
35
235
Defined benefit pension plans
Present value of defined benefit obligation
1,584
700
2,284
of which: amounts owing to active members
411
419
830
of which: amounts owing to non-active members
28
128
156
of which: amounts owing to pensioners
1,145
153
1,298
Fair value of plan assets
(1,874)
(605)
(2,479)
Net defined benefit (asset)/liability at 31 December 2024
(290)
95
(195)
Of which:
Pension surpluses
(344)
(37)
(381)
Pension deficits
54
132
186
Weighted average duration of defined benefit obligation – years
12
12
12
2023
US$ million
Canada
Other
Total
Post-retirement medical plans
Present value of defined benefit obligation
287
44
331
of which: amounts owing to active members
87
7
94
of which: amounts owing to pensioners
200
37
237
Defined benefit pension plans
Present value of defined benefit obligation
1,292
827
2,119
of which: amounts owing to active members
290
449
739
of which: amounts owing to non-active members
15
104
119
of which: amounts owing to pensioners
987
274
1,261
Fair value of plan assets
(1,398)
(690)
(2,088)
Net defined benefit (asset)/liability at 31 December 2023
(106)
137
31
Of which:
Pension surpluses
(159)
(30)
(189)
Pension deficits
53
167
220
Weighted average duration of defined benefit obligation – years
11
11
11
Estimated future benefit payments of the Canadian plans, which reflect expected future services but exclude plan expenses, up until
2034 are as follows:
US$ million
Post-retirement
medical plans
Defined benefit
pension plans
Total
2025
18
107
125
2026
18
107
125
2027
18
106
124
2028
18
105
123
2029
18
104
122
2030-2034
91
506
597
Total
181
1,035
1,216
2024 Glencore Annual Report
226
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Corporate Governance
Additional Information
Notes to the financial statements continued
24. Personnel costs and employee benefits continued
The plan assets consist of the following:
2024
2023
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Cash and short-term investments
23
–
–
23
10
–
–
10
Fixed income
952
–
–
952
779
–
–
779
Equities
820
–
–
820
533
–
–
533
Real estate
–
–
209
209
–
–
213
213
Other
342
–
133
475
402
–
151
553
Total
2,137
–
342
2,479
1,724
–
364
2,088
The fair value of plan assets includes none of Glencore’s own financial instruments and no property occupied by or other assets used
by Glencore. For many of the plans, representing a large portion of the global plan assets, asset-liability matching strategies are in
place, where the fixed income assets are invested broadly in alignment with the duration of the plan liabilities, and the proportion
allocated to fixed income assets is raised when the plan funding level increases. The asset mix for each plan reflects the nature,
expected changes in, and size of the liabilities and the assessment of long-term economic conditions, market risk, expected
investment returns as considered during a formal asset mix study, including sensitivity analysis and/or scenario analysis, conducted
periodically for the plans.
Through its defined benefit plans, Glencore is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility: The plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if plan assets
underperform this yield, this will create a deficit. The funded plans hold a significant proportion of equities, which are expected to
outperform bonds in the long term while contributing volatility and risk in the short term. Glencore believes that due to the long-term
nature of the plan liabilities, a level of continuing equity investment is an appropriate element of Glencore’s long-term strategy to
manage the plans efficiently.
Change in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the
value of the plans’ bond holdings.
Inflation risk: Some of the plans’ benefit obligations are linked to inflation, and higher inflation will lead to higher liabilities, although,
in most cases, caps on the level of inflationary increases are in place to protect the plan against extreme inflation.
Life expectancy: The majority of the plans’ obligations are to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the plans’ liability.
Salary increases: Some of the plans’ benefit obligations related to active members are linked to their salaries. Higher salary increases
will therefore tend to lead to higher plan liabilities.
The principal weighted-average actuarial assumptions used were as follows:
Post-retirement medical plans
Defined benefit pension plans
2024
2023
2024
2023
Discount rate
5.4%
5.7%
4.2%
4.3%
Future salary increases
–
–
2.5%
2.6%
Future pension increases
–
–
0.4%
0.4%
Ultimate medical cost trend rate
4.4%
4.6%
–
–
Mortality assumptions are based on the latest available standard mortality tables for the individual countries concerned. As at
31 December 2024, these tables imply expected future life expectancy, for employees aged 65, 16 to 23 years for males (2023: 16 to 24)
and 20 to 25 years for females (2023: 20 to 25). The assumptions for each country are reviewed regularly and are adjusted where
necessary to reflect changes in fund experience and actuarial recommendations.
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Additional Information
Notes to the financial statements continued
24. Personnel costs and employee benefits continued
The sensitivity of the defined benefit obligation to changes in principal assumptions as at 31 December 2024 is set out below,
assuming that all other assumptions are held constant and the effect of interrelationships is excluded.
Increase/(decrease) in pension obligation
US$ million
Post-
retirement
medical plans
Defined
benefit
pension plans
Total
Discount rate
Increase by 100 basis points
(38)
(229)
(267)
Decrease by 100 basis points
47
277
324
Rate of future salary increase
Increase by 100 basis points
–
33
33
Decrease by 100 basis points
–
(31)
(31)
Rate of future pension benefit increase
Increase by 100 basis points
–
27
27
Decrease by 100 basis points
–
(21)
(21)
Medical cost trend rate
Increase by 100 basis points
36
–
36
Decrease by 100 basis points
(30)
–
(30)
Life expectancy
Increase in longevity by one year
10
46
56
25. Accounts payable
US$ million
Notes
2024
2023
Financial liabilities at amortised cost
Trade payables
4,905
4,669
Margin calls received and other broker balances
667
597
Associated companies
794
992
Other payables and accrued liabilities
709
754
7,075
7,012
Financial liabilities at fair value through profit and loss
Trade payables containing provisional pricing features
28
19,967
20,423
Other payables
28
15
24
19,982
20,447
Non-financial liabilities
Other payables and accrued liabilities1
1,356
1,322
Other tax and related payables
555
508
1,911
1,830
Total
28,968
29,289
1 Primarily comprised of employee benefit accruals.
Trade payables are obligations to pay for goods and services. Trade payables typically have maturities up to 90 days depending on the
type of material and the geographic area in which the purchase transaction occurs and the agreed terms. The carrying value of trade
payables approximates fair value.
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Additional Information
Notes to the financial statements continued
26. Acquisition and disposal of subsidiaries and other entities
2024 Acquisitions
In 2024, Glencore completed the acquisition of 100% of Elk Valley Resources Ltd, which in turn owns a 77% interest in Elk Valley
Mining Limited Partnership (EVR) and various other businesses, none of which are individually material. The fair values are provisional
pending final valuations expected to be finalised within 12 months of the acquisitions. It is expected that adjustments could be made
to the fair values of acquired plant and equipment, rehabilitation and other provisions and deferred taxes.
The net cash used in the acquisition of subsidiaries and the provisional fair value of assets acquired and liabilities assumed on the
acquisition date are detailed below:
US$ million
EVR
Other
Total
Non-current assets
Property, plant and equipment
13,088
2
13,090
Intangible assets
7
–
7
Advances and loans1
157
–
157
13,252
2
13,254
Current assets
Inventories
1,092
–
1,092
Accounts receivable2
482
1
483
Prepaid expenses
31
–
31
Cash and cash equivalents
189
–
189
1,794
1
1,795
Non-controlling interest
(1,652)
–
(1,652)
Non-current liabilities
Borrowings3
(508)
–
(508)
Deferred tax liabilities
(2,618)
–
(2,618)
Provisions
(2,122)
(8)
(2,130)
Post-retirement and other employee benefits
(47)
–
(47)
(5,295)
(8)
(5,303)
Current liabilities
Borrowings3
(62)
–
(62)
Accounts payable
(678)
(3)
(681)
Provisions
(207)
(6)
(213)
(947)
(9)
(956)
Total fair value of net assets acquired
7,152
(14)
7,138
Consideration (paid)/received
(7,152)
14
(7,138)
Net (gain)/loss on acquisition
–
–
–
Cash and cash equivalents (paid)/received
(7,152)
14
(7,138)
Cash and cash equivalents acquired
189
–
189
Net cash used in acquisition of subsidiaries
(6,963)
14
(6,949)
1 Includes $134 million of pension surpluses.
2 There is no material difference between the gross contractual amounts for accounts receivable and their fair value.
3 Comprises EVR partners and JV loan of $411 million and lease liabilities of $159 million.
EVR
In July 2024, Glencore completed the acquisition of 100% of Elk Valley Resources Ltd, which in turn owns a 77% interest in EVR, a
steelmaking coal business primarily located in Southeast British Columbia, Canada for $7,152 million, including working capital
balances. The operations complement our other energy and steelmaking coal assets located in Australia, Colombia and South Africa.
The acquisition has been accounted for as a business combination in accordance with IFRS 3. As Glencore has the ability to control
the key strategic, operating and capital decisions of EVR, it is required to account for the acquisition using the full consolidation
method in accordance with IFRS 10. The 23% non-controlling interest has been measured at its proportionate share of the net
identifiable assets acquired.
Had the acquisition taken place effective 1 January 2024, the operation would have contributed additional revenue of $3,523 million
and additional profit after tax of $537 million. From the date of acquisition, the operation contributed $2,258 million of revenue and
$65 million of losses after tax for the period ended 31 December 2024.
Acquisition-related costs amounted to $41 million (see note 5).
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Additional Information
Notes to the financial statements continued
26. Acquisition and disposal of subsidiaries and other entities continued
2023 Acquisitions
In 2023, Glencore acquired the remaining 75% interest in Noranda Income Fund and the remaining 56.25% interest in the MARA
copper project that it did not already own. The acquisition accounting for Noranda and MARA has now been finalised, with no
adjustments to the previously reported provisional fair values.
The net cash used in the acquisition of subsidiaries and the fair value of assets acquired and liabilities assumed on the acquisition date
are detailed below:
US$ million
Noranda
Income Fund
MARA
Other
Total
Non-current assets
Property, plant and equipment
64
1,461
1
1,526
Intangible assets
–
–
7
7
Advances and loans
–
8
–
8
Deferred tax assets
33
–
–
33
97
1,469
8
1,574
Current assets
Inventories
213
2
–
215
Accounts receivable1
14
16
–
30
Other financial assets
23
–
–
23
Cash and cash equivalents
5
187
1
193
255
205
1
461
Non-current liabilities
Borrowings
–
(8)
–
(8)
Deferred income
(34)
–
–
(34)
Deferred tax liabilities
–
(436)
(2)
(438)
Provisions
(18)
(204)
–
(222)
(52)
(648)
(2)
(702)
Current liabilities
Borrowings
(6)
(1)
–
(7)
Accounts payable
(66)
(77)
–
(143)
Deferred income
(5)
–
–
(5)
Provisions
(1)
(35)
(1)
(37)
(78)
(113)
(1)
(192)
Total fair value of net assets acquired
222
913
6
1,141
Consideration paid
(204)
(477)
(6)
(687)
Contingent consideration
–
(37)
–
(37)
Amounts previously recognised as investments
–
(175)
–
(175)
Gain on revaluation of previously recognised investments
18
224
–
242
Cash and cash equivalents paid
(204)
(477)
(6)
(687)
Cash and cash equivalents acquired
5
187
1
193
Net cash used in acquisition of subsidiaries
(199)
(290)
(5)
(494)
1 There is no material difference between the gross contractual amounts for accounts receivable and their fair value.
Noranda Income Fund
In March 2023, Glencore completed the acquisition of the remaining 75% interest in Noranda Income Fund, which in turn owns 100%
of Canadian Electrolytic Zinc Ltd, an electrolytic zinc processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec,
that it did not previously own for $54 million and settled outstanding debt of $150 million. As Glencore holds 100% of the voting shares,
providing it the ability to control the key strategic, operating and capital decisions of the business, it is required to account for the
acquisition using the full consolidation method in accordance with IFRS 10.
Prior to the acquisition, Glencore owned a 25% interest in Noranda Income Fund which was accounted for as an associate. In
accordance with IFRS 3 Business Combinations, the equity interest is required to be revalued, at the date of acquisition, to its fair
value with any resulting gain or loss recognised in the statement of income. On the date of acquisition, the fair value of 100% of the
net assets acquired was determined to be $222 million and as a result, a gain of $18 million was recognised on the revaluation of the
original 25% equity interest.
If the acquisition had taken place effective 1 January 2023, the operation would have contributed additional revenue of $207 million
and additional profit after tax of $3 million. From the date of acquisition, the operation contributed $531 million of revenue and $15
million of losses after tax for the period ended 31 December 2023.
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Additional Information
Notes to the financial statements continued
26. Acquisition and disposal of subsidiaries and other entities continued
MARA Project
In September 2023, Glencore completed the acquisition of the remaining 56.25% interest in the MARA project, a copper and gold
brownfield project located in the Caramarca province, Argentina, that it did not previously own for $477 million of cash on closing and
a Net Smelter Return (NSR) copper royalty of 0.75%. As Glencore holds 100% of the voting shares, providing it the ability to control the
key strategic, operating and capital decisions of the business, it is required to account for the acquisition using the full consolidation
method in accordance with IFRS 10.
Prior to the acquisition, Glencore owned a 43.75% interest in the MARA project which was accounted for as an associate. In
accordance with IFRS 3 Business Combinations, the equity interest is required to be revalued, at the date of acquisition, to its fair
value with any resulting gain or loss recognised in the statement of income. On the date of acquisition, the fair value of 100% of the
net assets acquired was determined to be $913 million and as a result, a gain of $224 million was recognised on the revaluation of the
original 43.75% equity interest.
If the acquisition had taken place effective 1 January 2023, the operation would have contributed additional revenue of $Nil and
additional attributable losses after tax of $5 million. From the date of acquisition, the operation contributed $Nil of revenue and $13
million of attributable losses after tax for the period ended 31 December 2023.
2024 Disposals
Volcan
In May 2024, Glencore disposed of its 23.3% interest in Volcan (Industrial activities segment), a listed zinc/silver mining entity in Peru
for $20 million in cash. The net loss on disposal includes the derecognition to the statement of income of the previously recognised
non-controlling interests’ equity balance, largely relating to the non-controlling interests’ share of historical impairments and losses.
The carrying value of the assets and liabilities over which control was lost and the consideration receivable from the disposal are
detailed below:
US$ million
Volcan1
Non-current assets
Property, plant and equipment
1,284
Intangible assets
10
Investments in associates and joint ventures
148
Other investments
34
Advances and loans
31
Deferred tax assets
47
1,554
Current assets
Inventories
51
Accounts receivable
86
Income tax receivable
20
Prepaid expenses
4
Cash and cash equivalents
42
203
Non-current liabilities
Borrowings
(631)
Deferred tax liabilities
(98)
Provisions
(361)
(1,090)
Current liabilities
Borrowings
(161)
Accounts payable
(273)
Deferred income
(7)
Provisions
(12)
Income tax payable
(4)
(457)
Carrying value of net assets disposed
210
Cash and cash equivalents received
(20)
Non-controlling interest share of loss
190
Derecognition of non-controlling interest and items recycled to the statement of income
282
Net loss on disposal
472
Cash and cash equivalents received
20
Less: cash and cash equivalents disposed
(42)
Net cash used in disposal
(22)
1 As at 31 December 2023, total assets and liabilities were presented as current assets and liabilities ‘held for sale’ (see note 16).
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Additional Information
Notes to the financial statements continued
26. Acquisition and disposal of subsidiaries and other entities continued
2023 Disposals
The carrying value of the assets and liabilities over which control was lost and the consideration receivable from the 2023 disposals are
detailed below:
US$ million
Cobar
Other
Total
Non-current assets
Property, plant and equipment
499
44
543
Intangible assets
1
12
13
Advances and loans
–
9
9
500
65
565
Current assets
Inventories
25
6
31
Accounts receivable
3
66
69
Income tax receivable
4
–
4
Prepaid expenses
1
1
2
Cash and cash equivalents
–
6
6
33
79
112
Non-controlling interest
–
20
20
Non-current liabilities
Deferred tax liabilities
(25)
–
(25)
Non-current provisions
(44)
(32)
(76)
Post-retirement and other employee benefits
(1)
–
(1)
(70)
(32)
(102)
Current liabilities
Borrowings
(8)
–
(8)
Accounts payable
(31)
(24)
(55)
Provisions
–
(1)
(1)
(39)
(25)
(64)
Carrying value of net assets disposed
424
107
531
Cash and cash equivalents received
(749)
(95)
(844)
Items recycled to the statement of income
–
(3)
(3)
Retained interest recognised as investment in associate (MAC)
(100)
–
(100)
Deferred interest bearing consideration
(75)
–
(75)
Contingent future considerations
(64)
–
(64)
NSR royalty
(21)
–
(21)
Net (gain)/loss on disposal
(585)
9
(576)
Cash and cash equivalents received
749
95
844
Less: cash and cash equivalents disposed
–
(6)
(6)
Net cash received in disposal
749
89
838
Cobar
In June 2023, Glencore disposed of its 100% interest in the CSA Copper mine, located near Cobar, New South Wales, to Metals
Acquisition Corp (MAC). As consideration, Glencore received:
• $749 million in cash, after closing adjustments;
• $100 million in shares of MAC (a 20.7% underlying interest as at June 2023);
• $75 million deferred interest-bearing consideration to be settled within 12 months;
• $75 million contingent future consideration when daily copper prices average >US$4.25/lb for 18 continuous months over the life of
mine; plus $75 million contingent future consideration when daily copper prices average >US$4.50/lb for 24 continuous months
over the life of mine; and
• $21 million, being the discounted value of a 1.5% life of mine Net Smelter Return (NSR) royalty.
The fair value of the deferred interest-bearing consideration was determined to be $75 million using a discounted cash flow model of
the projected amount and timing of receipts, using an asset-specific discount rate of 12.5%. The contractual terms of the deferred
consideration give rise to cash flows that are not solely payments of principal and interest as the margin between 8 and 12% is
dependent on the quarterly copper price and is thus accounted for as a financial asset at fair value through profit and loss.
The combined fair value of the two contingent future consideration amounts was determined to be $64 million. As the nature of the
deferred future consideration is analogous to a financial option, the fair value was determined using a Monte Carlo option pricing
methodology which incorporated a copper spot price of $8,110/mt, a volatility factor of 19.3%, a life of mine period of 8.6 years and a
discount rate that ranged between 5.9 and 11.5%.
The fair value of the 1.5% NSR royalty over the life of the mine was determined to be $21 million, using a discounted cash flow model of
the forecast royalty payments, discounted using an asset-specific discount rate of 8.5%.
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Additional Information
Notes to the financial statements continued
27. Financial and capital risk management
Financial risks arising in the normal course of business from Glencore’s operations comprise market risk (including commodity price
risk, interest rate risk and currency risk), credit risk (including performance risk) and liquidity risk. It is Glencore’s policy and practice to
identify and, where appropriate and practical, actively manage such risks (for management of ‘margin’ risk within Glencore’s
extensive and diversified industrial portfolio, refer to net present value at risk below) to support its objectives in managing its capital
and future financial security and flexibility. Glencore’s overall risk management programme focuses on the unpredictability of
financial markets and seeks to protect its financial security and flexibility by using derivative financial instruments where possible to
substantially hedge these financial risks. Glencore’s finance and risk professionals, working in coordination with the commodity
departments, monitor, manage and report regularly to senior management and the Board of Directors on the approach and
effectiveness in managing financial risks along with the financial exposures facing the Group.
Glencore’s objectives in managing its ‘capital attributable to equity holders’ include preserving its overall financial health and strength
for the benefit of all stakeholders, maintaining an optimal capital structure in order to provide a high degree of financial flexibility at
an attractive cost of capital and safeguarding its ability to continue as a going concern, while generating sustainable, appropriately
risk-adjusted, long-term profitability. Central to meeting these objectives is maintaining investment grade credit rating status.
Glencore’s current credit ratings are A3 from Moody’s and BBB+ from S&P.
Distribution policy and other capital management initiatives
Glencore’s base cash distribution policy comprises two components: (1) a fixed $1 billion component and (2) a variable element
representing 25% of adjusted equity free cash flow generated by our industrial assets during the preceding year. Distributions are
expected to be formally declared by the Board annually (with the preliminary full-year results). Distributions, when declared, will be
settled equally in May/June and September of the year in which they are declared. In addition, reflecting the Group’s through the
cycle net debt objective of c.$10 billion (excluding Marketing lease liabilities), and consideration of the cyclical nature of the industry
and other relevant factors, the Board could declare additional distributions to be included with the distribution confirmed with
respect to the prior year, consider top-up distributions during the year and/or initiate or continue share buyback
programmes. Notwithstanding that the cash distribution is declared and paid in US dollars, shareholders will be able to elect to
receive their distribution payments in Pounds Sterling, Euros or Swiss Francs based on the exchange rates in effect around the date of
payment. Shareholders on the JSE will receive their distributions in South African Rand.
Commodity price risk
Glencore is exposed to price movements for the inventory it holds and the products it produces which are not held to meet forward-
priced contract obligations and forward-priced purchase or sale contracts. Glencore manages a significant portion of this exposure
through futures and options transactions on worldwide commodity exchanges or in over the counter (OTC) markets, to the extent
available. Commodity price risk management activities are considered an integral part of Glencore’s physical commodity marketing
activities and the related assets and liabilities are included in other financial assets from and other financial liabilities to derivative
counterparties, including clearing brokers and exchanges. While it is Glencore’s policy to substantially hedge its commodity price
risks, there remains the possibility that the hedging instruments chosen may not always provide effective mitigation of the
underlying price risk. The hedging instruments available to the marketing businesses may differ in specific characteristics to the risk
exposure to be hedged, resulting in an ongoing and unavoidable basis risk exposure. Residual basis risk exposures represent a key
focus point for Glencore’s commodity department teams who actively engage in the management of such.
Value at risk
One of the tools used by Glencore to monitor and limit its primary market risk exposure, principally commodity price risk related to its
physical marketing activities, is the value at risk (VaR) computation. VaR is a risk measurement technique which estimates a
threshold for potential loss that could occur on risk positions as a result of movements in risk factors over a specified time horizon,
given a specific level of confidence and based on a specific price history. The VaR methodology is a statistically defined, probability-
based approach that takes into account market volatilities, as well as risk diversification by recognising offsetting positions and
correlations between commodities and markets. In this way, risks can be measured consistently across markets and commodities
and risk measures can be aggregated to derive a single risk value.
Glencore uses a VaR approach based on Monte Carlo simulations computed at a 95% confidence level and utilising a weighted data
history for a one-day time horizon. Glencore’s Board, as part of its annual review process in H2 2024, approved maintaining the
Group’s consolidated VaR limit (one day 95% confidence level) at $200 million, which represents approximately 0.6% of total equity.
There were no limit breaches in 2024.
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Additional Information
Notes to the financial statements continued
27. Financial and capital risk management continued
Position sheets are regularly distributed and monitored and daily Monte Carlo simulations are applied to the various business groups’
net marketing positions to determine potential losses.
Market risk VaR (one-day 95% confidence level) ranges and year-end positions were as follows:
US$ million
2024
2023
Year-end position
28
42
Average during the year
53
92
High during the year
76
156
Low during the year
28
42
VaR does not purport to represent actual gains or losses in fair value in earnings to be incurred by Glencore, nor does Glencore claim
that these VaR results are indicative of future market movements or representative of any actual impact on its future results. VaR
should always be viewed in the context of its limitations; notably, the use of historical data as a proxy for estimating future events,
market illiquidity risks and tail risks. Glencore recognises these limitations, and thus complements and continuously refines its VaR
results by analysing forward-looking stress scenarios, benchmarking against an alternative VaR computation based on historical
simulations and back testing calculated VaR against the hypothetical portfolio returns arising in the next business day.
As of 31 December 2024, Glencore’s VaR computation covered its business in the key base metals, bulks, freight, and energy products
(including, but not limited to, aluminium, nickel, copper, zinc, cobalt, thermal and steelmaking coal, iron ore, gold, silver, oil, gas and
related products) and assesses the open priced positions which are subject to price risk, including inventories of these commodities.
Due to the lack of a liquid terminal market, Glencore does not include a VaR calculation for products such as alumina and some risks
associated with metal concentrates. Alternative measures are used to monitor exposures related to these products.
Net present value at risk
Glencore’s future cash flows related to its forecast Industrial production activities are also exposed to commodity price movements.
Glencore manages this exposure through a combination of portfolio diversification, occasional shorter-term hedging via futures and
options transactions, insurance products and continuous internal monitoring, reporting and quantification of the underlying
operations’ estimated cash flows and valuations.
Interest rate risk
Glencore is exposed to various risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its
assets and liabilities and cash flows. Matching of assets and liabilities is utilised as the main method to hedge interest rate risks; other
methods include the use of interest rate swaps and similar derivative instruments with the same critical terms as the underlying
interest rate exposures. See details on swap instruments used below.
Floating rate debt, predominantly used to fund fast-turning working capital (interest is internally charged on the funding of this
working capital) is primarily based on Secured Overnight Funding Rate (SOFR) plus an appropriate premium. Accordingly, prevailing
market interest rates are continuously factored into transactional pricing and terms.
Assuming the amount of floating rate liabilities at the reporting period end were outstanding for the whole year, interest rates were
100 basis points higher/lower and all other variables held constant, Glencore’s income for the year ended 31 December 2024 would
decrease/increase by $290 million (2023: $226 million).
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Additional Information
Notes to the financial statements continued
27. Financial and capital risk management continued
Currency risk
The US dollar is the predominant functional currency of the Group. Currency risk is the risk of loss from movements in exchange rates
related to transactions and balances in currencies other than the US dollar. Such transactions include operating expenditure, capital
expenditure and to a lesser extent purchases and sales in currencies other than the functional currency. Purchases or sales of
commodities concluded in currencies other than the functional currency, apart from certain limited domestic sales at industrial
operations which act as a hedge against local operating costs, are ordinarily economically hedged through forward exchange
contracts. Consequently, foreign exchange movements against the US dollar on recognised transactions would have an immaterial
financial impact. Glencore enters into currency hedging transactions with leading financial institutions.
Glencore’s debt-related payments (both principal and interest) are primarily denominated in or swapped using hedging instruments
into US dollars. Glencore’s operating expenses, being a small portion of its revenue base, are incurred in a mix of currencies of which
the US dollar, Swiss franc, British pound, Canadian dollar, Australian dollar, Euro, Kazakhstan tenge, Colombian peso, Peruvian sol,
Chilean peso and South African rand are the predominant currencies.
Glencore has issued Euro, Swiss Franc and Sterling denominated bonds (see note 21). Cross-currency swaps were concluded to hedge
the currency risk on the principal and related interest payments of these bonds. These contracts were designated as fair value or cash
flow hedges of the associated foreign currency risks. The critical terms of these swap contracts and their corresponding hedged items
are matched and the Group expects a highly effective hedging relationship with the swap contracts and the value of the
corresponding hedged items to change systematically in opposite direction in response to movements in the underlying exchange
rates. Sources of ineffectiveness on cash flow and fair value hedges stem from fluctuations in credit risk spreads that may not align
with the designated hedging instruments. The corresponding fair value and notional amounts of these derivatives is as follows:
Notional amounts
Average FX
rates
Carrying amount
Assets
(Note 29)
Carrying amount
Liabilities
(Note 29)
Average maturity1
US$ million
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Cross-currency swap agreements
Cash flow hedges – currency risk
Eurobonds
1,130
1,790
1.19
1.16
–
–
111
66
2028
2026
Swiss franc bonds
504
504
1.06
1.06
37
73
–
–
2026
2026
Fair value hedges – currency and
interest rate risk
Eurobonds
4,045
3,405
1.18
1.20
–
–
822
588
2028
2027
Sterling bonds
663
663
1.33
1.33
–
–
86
64
2026
2026
Swiss franc bonds
341
347
1.14
1.07
–
21
19
–
2029
2026
6,683
6,709
37
94
1,038
718
Interest rate swap agreements
Fair value hedges – interest rate
risk
US$ bonds
11,850
9,200
–
–
36
128
781
533
2030
2029
18,533
15,909
73
222
1,819
1,251
1 Refer to note 21 for details.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
27. Financial and capital risk management continued
The carrying amounts of the fair value hedged items are as follows:
Carrying amount of the
hedged item
(Note 21)
Of which,
accumulated fair value
hedge adjustments and FX
US$ million
2024
2023
2024
2023
Foreign exchange and interest rate risk
Eurobonds
3,358
2,837
(820)
(587)
Swiss franc bonds
333
372
(19)
20
Sterling bonds
599
596
(85)
(62)
US$ bonds
11,398
8,884
(744)
(404)
15,688
12,689
(1,668)
(1,033)
Credit risk
Credit risk arises from the possibility that counterparties may not be able to settle obligations due to Glencore within their agreed
payment terms. Financial assets which potentially expose Glencore to credit risk consist principally of cash and cash equivalents,
receivables and advances, derivative instruments and non-current advances and loans. Glencore’s credit management process
includes the assessment, monitoring and reporting of counterparty exposure on a regular basis. Glencore’s cash and cash equivalents
are placed overnight with a diverse group of highly credit-rated financial institutions. Margin calls paid are similarly held with
appropriately rated financial institutions. Glencore determines these instruments to have low credit risk at the reporting date. Credit
risk with respect to receivables and advances is mitigated by the large number of customers comprising Glencore’s customer base,
their diversity across various industries and geographical areas, as well as Glencore’s policy to mitigate these risks through letters of
credit, netting, collateral and insurance arrangements where appropriate. Additionally, it is Glencore’s policy that transactions and
activities in trade-related financial instruments be concluded under master netting agreements or long form confirmations to enable
offsetting of balances due to/from a common counterparty in the event of default by the counterparty. Glencore actively and
continuously monitors the credit quality of its counterparties through internal reviews and a credit scoring process, which includes,
where available, public credit ratings. Balances with counterparties not having a public investment grade or equivalent internal rating
are typically enhanced to investment grade through the extensive use of credit enhancement products, such as letters of credit or
insurance products. Glencore has a diverse customer base, with no customer representing more than 3.8% (2023: 8.5%) of its trade
receivables (taking into account credit enhancements) or accounting for more than 3.2% of its revenues over the year ended
31 December 2024 (2023: 3.3%) (see notes 3 and 14).
The maximum exposure to credit risk (including performance risk – see below), without considering netting agreements or without
taking account of any collateral held or other credit enhancements, is equal to the carrying amount of Glencore’s financial assets
(see note 28) and physically settled advances (see notes 12 and 14).
Management information used to monitor credit risk indicates that the prima facie risk profile % categories of financial assets which
are subject to review for impairment under IFRS 9, is as set out below. The total balance for those assets as at 31 December 2024 is
$8,378 million (2023: $8,144 million) (see notes 12, 14 and 15).
in %
2024
2023
AAA to AA-
4
10
A+ to A-
51
39
BBB+ to BBB-
10
15
BB+ to BB-
8
8
B+ to B-
10
13
CCC+ and below
17
15
Movements in credit losses for accounts receivable and advances and loans are shown in notes 12 and 14.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
27. Financial and capital risk management continued
Performance risk
Performance risk (part of the broader credit risk subject matter, discussed above) is inherent in contracts, with agreements in the
future, to physically purchase or sell commodities with fixed price attributes, and arises from the possibility that counterparties may
not be willing or able to meet their future contractual physical sale or purchase obligations to/from Glencore. Glencore undertakes
the assessment, monitoring and reporting of performance risk within its overall credit management process. Glencore’s market
breadth, diversified supplier and customer base as well as the standard pricing mechanism in the vast majority of Glencore’s
commodity portfolio which does not fix the primary commodity price beyond three months, ensure that performance risk is
adequately mitigated. The commodity industry has trended towards shorter-term fixed price contract periods, in part to mitigate
against such potential performance risk, but also due to the continuous development of transparent and liquid spot commodity
markets, with their associated derivative products and indexes.
Liquidity risk
Liquidity risk is the risk that Glencore is unable to meet its payment obligations when due, or that it is unable, on an ongoing basis, to
borrow funds in the market on an unsecured or secured basis at an acceptable price to fund actual or proposed commitments.
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and availability of adequate committed
funding facilities. Glencore has set itself an internal minimum liquidity threshold to maintain at all times, including via available
committed undrawn credit facilities, of $3 billion (2023: $3 billion), which has purposely been substantially exceeded in recent years,
accounting for the more volatile market backdrop. Glencore’s credit profile, diversified funding sources and committed credit
facilities, ensure that sufficient liquid funds are maintained to meet its liquidity requirements. As part of its liquidity management,
Glencore closely monitors and plans for its future capital expenditure, working capital needs and proposed investments, as well as
credit facility refinancing/extension requirements, well ahead of time (see notes 1, 12, 21, 22 and 25).
As at 31 December 2024, Glencore had available committed undrawn credit facilities and cash amounting to $11,547 million (2023:
$12,853 million), refer to Other reconciliations section. The maturity profile of Glencore’s financial liabilities based on the contractual
terms is presented in the table below.
The liquidity risk related to physical forward purchase obligations represents the gross contractual cash outflows expected to be paid
upon transfer of control of the underlying physical commodity. Gross cash inflows expected from physical forward sales are not
presented in the below table, but would approximate the expected gross cash outflows related to forward purchase obligations plus
an appropriate margin.
The gross liquidity risk relating to cross-currency swaps entered into for the purposes of hedging foreign currency and interest rate
risks arising from the Group’s non-US dollar denominated bonds is also presented below. The amounts reflect the expected gross
settlement of the US dollar pay leg of these swaps. The inflows from the related foreign currency receive leg of these swaps are not
presented in the below table, but would approximate the foreign currency equivalent of the US dollar pay leg. Counterparty
settlement date risk related to these swaps is limited, as the Group has entered into margining arrangements for both the outflow
and inflow legs of the swap.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
27. Financial and capital risk management continued
2024
US$ million
After 5 years Due 3 - 5 years Due 2 - 3 years Due 1 - 2 years
Due 0 - 1 year
Total
Non-derivative financial liabilities
Borrowings excluding lease liabilities, fair
value hedge adjustments and other non-
cash items
10,716
5,137
2,970
6,539
12,274
37,636
Expected future interest payments
3,765
1,247
809
963
1,040
7,824
Lease liabilities – undiscounted
607
319
293
439
746
2,404
Securities lending arrangements1
–
–
–
–
728
728
Accounts payable
–
–
–
–
27,057
27,057
Derivative financial liabilities
Physical forward purchases
7,012
29,786
28,209
42,878
102,570
210,455
Cross-currency swaps
1,588
2,246
406
2,126
1,363
7,729
Other financial liabilities
914
224
162
75
2,035
3,410
Total
24,602
38,959
32,849
53,020
147,813
297,243
2023
US$ million
After 5 years Due 3 - 5 years Due 2 - 3 years Due 1 - 2 years
Due 0 - 1 year
Total
Non-derivative financial liabilities
Borrowings excluding lease liabilities, fair
value hedge adjustments and other non-
cash items
9,578
4,304
2,539
4,892
10,404
31,717
Expected future interest payments
3,225
771
675
1,017
783
6,471
Lease liabilities – undiscounted
707
267
222
396
707
2,299
Securities lending arrangements1
–
–
–
–
400
400
Accounts payable
–
–
–
–
27,459
27,459
Derivative financial liabilities
Physical forward purchases
6,380
25,018
25,224
38,192
80,645
175,459
Cross-currency swaps
1,476
1,717
2,059
1,284
1,124
7,660
Other financial liabilities
471
111
195
493
2,582
3,852
Total
21,837
32,188
30,914
46,274
124,104
255,317
1 Glencore enters into financial instruments which require posting of cash collateral with brokers. As part of its working capital management, Glencore has
satisfied certain of its cash collateral obligations with US treasury bills acquired through securities lending arrangements. As at 31 December 2024, $728
million (2023: $400 million) of US treasury bills were held in respect of such arrangements.
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Additional Information
Notes to the financial statements continued
28. Financial instruments
Fair value of financial instruments
The following tables present the carrying values and fair values of Glencore’s financial instruments. Fair value is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (most advantageous) market at the
measurement date under current market conditions. Where available, market values have been used to determine fair values. When
market values are not available, fair values have been calculated by discounting expected cash flows at prevailing market interest and
exchange rates. The estimated fair values have been determined using market information and appropriate valuation
methodologies, but are not necessarily indicative of the amounts that Glencore could realise in the normal course of business.
The financial assets and liabilities are presented by class in the tables below at their carrying values, which generally approximate the
fair values with the exception of $36,265 million (2023: $30,733 million) of borrowings, the fair value of which at 31 December 2024 was
$36,091 million (2023: $30,555 million). $5,842 million (2023: $6,080 million) represents the listed portion of the borrowing portfolio,
based on quoted prices on active markets (a Level 1 fair value measurement), and $30,249 million (2023: $24,475 million) is based on
observable market prices (a Level 2 fair value measurement).
2024
Amortised
cost
FVTPL1
FVTOCI2
US$ million
Total
Assets
Other investments
–
118
350
468
Non-current other financial assets
–
197
–
197
Advances and loans
1,601
520
–
2,121
Accounts receivable
7,471
8,416
–
15,887
Other financial assets
–
4,389
–
4,389
Cash and cash equivalents
2,389
–
–
2,389
Total financial assets
11,461
13,640
350
25,451
Liabilities
Borrowings
38,107
–
–
38,107
Non-current other financial liabilities
–
2,033
–
2,033
Accounts payable
7,075
19,982
–
27,057
Deferred income
–
1,642
–
1,642
Other financial liabilities
–
2,835
–
2,835
Total financial liabilities
45,182
26,492
–
71,674
2023
Amortised
cost
FVTPL1
FVTOCI2
Total
US$ million
Assets
Other investments
–
126
387
513
Non-current other financial assets
–
367
–
367
Advances and loans
1,708
282
–
1,990
Accounts receivable
8,792
6,917
–
15,709
Other financial assets
–
5,187
–
5,187
Cash and cash equivalents
1,925
–
–
1,925
Total financial assets
12,425
12,879
387
25,691
Liabilities
Borrowings
32,241
–
–
32,241
Non-current other financial liabilities
–
1,710
–
1,710
Accounts payable
7,012
20,447
–
27,459
Deferred income
–
888
–
888
Other financial liabilities
–
3,671
–
3,671
Total financial liabilities
39,253
26,716
–
65,969
1 FVTPL – Fair value through profit and loss.
2 FVTOCI – Fair value through other comprehensive income.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
28. Financial instruments continued
Offsetting of financial assets and liabilities
In accordance with IAS 32 the Group reports financial assets and liabilities on a net basis in the consolidated statement of financial
position only if there is a legally enforceable right to set off the recognised amounts and there is intention to settle on a net basis, or to
realise the asset and settle the liability simultaneously. The financial assets and liabilities subject to offsetting, enforceable master
netting and similar agreements as at 31 December 2024 and 2023 were as follows:
Amounts
not subject
to netting
agreements
Total as
presented
in the
consolidated
statement
of financial
position
Amounts eligible for set off
under netting agreements
Related amounts not set off
under netting agreements
2024
Gross
amount
Amounts
offset
Net
amount
Financial
instruments
Financial
collateral
Net
amount
US$ million
Derivative assets1
11,215
(8,766)
2,449
(1,196)
(527)
726
2,137
4,586
Derivative liabilities1
(12,583)
8,766
(3,817)
1,196
2,455
(166)
(1,051)
(4,868)
Accounts receivable
2,952
(211)
2,741
Accounts payable
(6,239)
211
(6,028)
Amounts
not subject
to netting
agreements
Total as
presented
in the
consolidated
statement
of financial
position
Amounts eligible for set off
under netting agreements
Related amounts not set off
under netting agreements
2023
Gross
amount
Amounts
offset
Net
amount
Financial
instruments
Financial
collateral
Net
amount
US$ million
Derivative assets1
15,909
(12,338)
3,571
(1,936)
(511)
1,124
1,983
5,554
Derivative liabilities1
(16,127)
12,338
(3,789)
1,936
1,471
(382)
(1,592)
(5,381)
Accounts receivable
2,639
(363)
2,276
Accounts payable
(5,737)
363
(5,374)
1 Presented within current and non-current other financial assets and other financial liabilities.
For the financial assets and liabilities subject to enforceable master netting or similar arrangements above, each agreement between
the Group and the counterparty allows for net settlement of the relevant financial assets and liabilities in the ordinary course of
business. Where practical reasons may prevent net settlement, financial assets and liabilities may be settled on a gross basis, however,
each party to the master netting or similar agreement will have the option to settle all such amounts on a net basis in the event of
default of the other party. Per the terms of each agreement, an event of default includes failure by a party to make payment when
due, failure by a party to perform any obligation required by the agreement (other than payment) if such failure is not remedied
within periods of 30 to 60 days after notice of such failure is given to the party or bankruptcy.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
29. Fair value measurements
Fair values are primarily determined using quoted market prices or standard pricing models using observable market inputs where
available and are presented to reflect the expected gross future cash in/outflows. Glencore classifies the fair values of its financial
instruments into a three-level hierarchy based on the degree of the source and observability of the inputs that are used to derive the
fair value of the financial asset or liability as follows:
Level 1
Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that Glencore can assess at the
measurement date; or
Level 2 Inputs other than quoted inputs included in Level 1 that are observable for the assets or liabilities, either directly or
indirectly; or
Level 3 Unobservable inputs for the assets or liabilities, requiring Glencore to make market-based assumptions.
Level 1 classifications primarily include futures with a tenor of less than one year and options that are exchange traded, whereas Level
2 classifications primarily include futures with a tenor greater than one year, OTC options, swaps and physical forward transactions
which derive their fair value primarily from exchange quotes and readily observable broker quotes. Level 3 classifications primarily
include physical forward transactions which derive their fair value predominantly from models that use broker quotes and applicable
market-based estimates surrounding location, quality and credit differentials and financial liabilities linked to the fair value of certain
mining operations. In circumstances where Glencore cannot verify fair value with observable market inputs (Level 3 fair values), it is
possible that a different valuation model could produce a materially different estimate of fair value.
It is Glencore’s policy that transactions and activities in trade-related financial instruments be concluded under master netting
agreements or long form confirmations to enable balances due to/from a common counterparty to be offset in the event of default,
insolvency or bankruptcy by the counterparty.
The following tables show the fair values of the derivative financial instruments including trade-related financial and physical forward
purchase and sale commitments by type of contract and non-current other financial assets and liabilities as at 31 December 2024 and
2023. Other assets and liabilities which are measured at fair value on a recurring basis are marketing inventories, other investments,
cash and cash equivalents. There are no non-recurring fair value measurements requiring disclosure under IFRS.
Financial assets
2024
US$ million
Level 1
Level 2
Level 3
Total
Financial assets
Trade receivables
–
7,795
–
7,795
Prepaid commodity forward contracts
–
499
–
499
Other receivables and loans
–
93
29
122
Non-current prepaid commodity forward contracts
–
270
–
270
Other non-current receivables and loans
–
61
18
79
Non-current convertible loan
–
–
171
171
Other investments
356
112
–
468
Financial assets
356
8,830
218
9,404
Other financial assets
Commodity-related contracts
Futures
1,250
313
–
1,563
Options
38
71
–
109
Swaps
286
447
–
733
Physical forwards
–
739
1,229
1,968
Financial contracts
Cross-currency swaps
–
21
–
21
Foreign currency and interest rate contracts
–
176
–
176
Derivative netting
(181)
Current other financial assets
1,574
1,767
1,229
4,389
Non-current other financial assets
Cross-currency swaps
–
16
–
16
Foreign currency and interest rate contracts
–
36
–
36
Other financial derivative assets
–
–
145
145
Non-current other financial assets
–
52
145
197
Total
1,930
10,649
1,592
13,990
2024 Glencore Annual Report
241
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Additional Information
Notes to the financial statements continued
29. Fair value measurements continued
2023
US$ million
Level 1
Level 2
Level 3
Total
Financial assets
Trade receivables
–
6,229
–
6,229
Prepaid commodity forward contracts
–
543
–
543
Contingent considerations
–
75
62
137
Other receivables and loans
–
–
8
8
Non-current prepaid commodity forward contracts
–
124
–
124
Other non-current receivables and loans
–
–
22
22
Convertible loan
–
–
136
136
Other investments
390
123
–
513
Financial assets
390
7,094
228
7,712
Other financial assets
Commodity-related contracts
Futures
1,978
205
–
2,183
Options
33
61
–
94
Swaps
416
661
5
1,082
Physical forwards
–
851
936
1,787
Financial contracts
Cross currency swaps
–
20
–
20
Foreign currency and interest rate contracts
–
21
–
21
Current other financial assets
2,427
1,819
941
5,187
Non-current other financial assets
Cross-currency swaps
–
73
–
73
Foreign currency and interest rate contracts
–
127
–
127
Other financial derivative assets
–
–
64
64
Purchased call options over Glencore shares1
–
103
–
103
Non-current other financial assets
–
303
64
367
Total
2,817
9,216
1,233
13,266
1 Call options over the Company’s shares in relation to conversion rights of the $625 million non-dilutive convertible bond, due in 2025.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
29. Fair value measurements continued
Financial liabilities
2024
US$ million
Level 1
Level 2
Level 3
Total
Financial liabilities
Accounts payable
–
19,967
–
19,967
Non-discretionary dividend obligation1
–
–
15
15
Financial liabilities
–
19,967
15
19,982
Other financial liabilities
Commodity-related contracts
Futures
1,383
281
–
1,664
Options
150
1
–
151
Swaps
189
94
32
315
Physical forwards
–
629
94
723
Financial contracts
Cross-currency swaps
–
77
–
77
Foreign currency and interest rate contracts
–
86
–
86
Derivative netting
(181)
Current other financial liabilities
1,722
1,168
126
2,835
Non-current other financial liabilities
Cross-currency swaps
–
962
–
962
Foreign currency and interest rate contracts
–
753
–
753
Non-discretionary dividend obligation1
–
–
135
135
Other financial derivative liabilities
–
–
61
61
Contingent consideration
–
–
122
122
Non-current other financial liabilities
–
1,715
318
2,033
Deferred income
Current deferred income
–
1,559
–
1,559
Non-current deferred income
–
–
83
83
Deferred income
–
1,559
83
1,642
Total
1,722
24,409
542
26,492
2023
US$ million
Level 1
Level 2
Level 3
Total
Financial liabilities
Accounts payable
–
20,423
–
20,423
Non-discretionary dividend obligation1
–
–
24
24
Financial liabilities
–
20,423
24
20,447
Other financial liabilities
Commodity-related contracts
Futures
1,592
285
–
1,877
Options
104
29
–
133
Swaps
130
331
1
462
Physical forwards
–
1,019
66
1,085
Financial contracts
Cross-currency swaps
–
4
–
4
Foreign currency and interest rate contracts
–
110
–
110
Current other financial liabilities
1,826
1,778
67
3,671
Non-current other financial liabilities
Cross-currency swaps
–
714
–
714
Foreign currency and interest rate contracts
–
499
–
499
Non-discretionary dividend obligation1
–
–
285
285
Contingent consideration
–
–
109
109
Embedded call options over Glencore shares2
–
103
–
103
Non-current other financial liabilities
–
1,316
394
1,710
Deferred income
Current deferred income
–
778
–
778
Non-current deferred income
–
110
–
110
Deferred income
–
888
–
888
Total
1,826
24,405
485
26,716
1 A ZAR-denominated derivative liability payable to ARM Coal, a partner in one of the Group’s principal coal joint operations based in South Africa. The liability
arises from ARM Coal’s rights as an investor to a share of agreed free cash flows from certain coal operations in South Africa and is valued based on those
cash flows using a risk-adjusted discount rate. The derivative liability is settled over the life of those operations with a modelled mine life of 13 years as at
31 December 2024 (2023: modelled mine life of 13 years).
2 Embedded call option bifurcated from the 2025 convertible bond.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
29. Fair value measurements continued
The following table shows the net changes in fair value of Level 3 other financial assets and other financial liabilities:
US$ million
Contingent
consideration
Convertible
loan
Physical
forwards
Swaps
Other
Total
Level 3
1 January 2024
(47)
136
870
4
(215)
748
Total loss recognised in revenue
–
–
(21)
(8)
–
(29)
Total gain/(loss) recognised in cost of
goods sold
–
–
637
(26)
44
655
Acquisition
–
75
–
–
(141)
(66)
Fair value recognised in other
income/(expense)
(19)
(40)
–
–
210
151
Realised
(56)
–
(351)
(2)
–
(409)
31 December 2024
(122)
171
1,135
(32)
(102)
1,050
1 January 2023
157
168
2,836
18
(248)
2,931
Total (loss)/gain recognised in revenue
–
–
(219)
65
–
(154)
Total loss recognised in cost of goods sold
–
–
(1,167)
(66)
–
(1,233)
Acquisition
(39)
25
–
–
64
50
Fair value recognised in other
income/(expense)
(37)
(57)
–
–
20
(74)
Realised
(128)
–
(580)
(13)
(51)
(772)
31 December 2023
(47)
136
870
4
(215)
748
During the year, no amounts were transferred between Level 1 and Level 2 of the fair value hierarchy and no amounts were
transferred into or out of Level 3 of the fair value hierarchy for either other financial assets or other financial liabilities.
Fair value of financial assets/financial liabilities
Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period.
Futures, options and swaps classified as Level 1 financial assets and liabilities are measured using quoted prices in an active market.
Accounts receivable and payables, and certain futures, options, swaps, physical forwards, cross-currency swaps, foreign currency,
interest rate contracts and deferred income classified as Level 2 financial assets and liabilities are measured using discounted cash
flow models. Key inputs include observable quoted prices sourced from exchanges or traded reference indices in active markets for
identical assets or liabilities. Prices are adjusted by a discount rate which captures the time value of money and counterparty credit
considerations, as required.
Call options over Glencore shares classified as Level 2 financial assets and liabilities are measured using an option pricing model. Key
inputs include the current price of Glencore shares, strike price, maturity date of the underlying convertible debt security, risk-free
rate and volatility.
Given the extent to which the Group recognises financial instrument assets and liabilities at fair value, the preparation of the Group’s
consolidated financial statements requires management to consider on an ongoing basis, the key valuation metrics and judgements
involved in the determination of the fair value of financial instruments. To the extent that valuation is based on models or inputs that
are less observable or unobservable in the market, the determination of fair value requires more judgement. Management reviewed
the key valuation metrics, assumptions and methodologies involved in the determination of the Level 3 fair value of financial
instruments and determined that the valuations were materially reasonable.
The following table provides information on the valuation techniques and inputs used to determine the fair value of Level 3 financial
assets of $1,592 million (2023: $1,233 million) and financial liabilities of $542 million (2023: $485 million).
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Notes to the financial statements continued
29. Fair value measurements continued
US$ million
2024
2023
Other receivables and loans
Assets
47
30
Liabilities
–
–
Valuation techniques and key inputs:
Discounted cash flow model
Significant and other unobservable inputs: – Discount rates specific to the operation; and
– Underlying business plans and forecasts.
The valuation remains sensitive to repayment of cash flows dependent upon the
underlying business plans and forecasts. A one-year delay in the underlying cash flows
would result in a $3 million (2023: $1 million) reduction to the current carrying value of
the asset while bringing forward repayments by one year would result in a $1 million
(2023: $7 million) increase.
Convertible loans
Assets
171
136
Liabilities
–
–
Valuation techniques and key inputs:
Discounted cash flow and option pricing models
Significant and other unobservable inputs: – Share price, risk-free rate, credit spread and volatility.
The valuation remains sensitive to the credit spread and discount rate. A 10% increase in
the discount rate would result in a $16 million (2023: $29 million) reduction to the current
carrying value. A 10% increase/decrease in share price assumptions would result in an $3
million (2023: $1 million) adjustment to the current carrying value.
Contingent considerations
Assets
–
62
Liabilities
(122)
(109)
Valuation techniques and key inputs:
Discounted cash flow models
Significant and other unobservable inputs: – Estimated production plans;
– Forecast commodity prices (coal, platinum group metals and copper); and
– Discount rates specific to the operation.
The valuation remains sensitive to forecast production estimates and coal prices. Should
production volumes increase/decrease by 10% the value of the liability would
increase/decrease by $6 million (2023: $6 million), and for any given quarter, should coal
prices be lower than the royalty trigger, no amounts would be due under the price
contingent royalty arrangement. A 10% increase/decrease in copper and platinum group
metals price assumptions would result in a $7 million (2023: $8 million) adjustment to
the contingent consideration.
Other financial derivative assets
Assets
145
64
Liabilities
–
–
Valuation techniques and key inputs:
Discounted cash flow and option pricing models
Significant and other unobservable inputs: – Estimated sale and production plans;
– Forecast copper prices, historical prices and observed volatility; and
– Discount rates specific to the operation.
The contingent future consideration assets' valuation remains sensitive to production
volumes and an 8 year (2023: 8 year) increase in the life of mine assumptions would
result in a $5 million (2023: $5 million) increase to the current carrying value. A 10%
increase/decrease in copper price assumptions would result in a $9 million adjustment
to the current asset carrying value.
Swaps
Assets
–
5
Liabilities
(32)
(1)
Valuation techniques and key inputs:
Discounted cash flow model
Significant and other unobservable inputs: – Long-term aluminium and alumina prices.
The significant unobservable inputs represent the long-term aluminium and alumina
prices to which the valuation remains sensitive. A 10% increase/decrease in price
assumptions would result in a $3 million (2023: $1 million) adjustment to the current
carrying value.
Deferred income and other financial derivative liabilities
Assets
–
–
Liabilities
(144)
–
Valuation techniques and key inputs:
Discounted cash flow model
Significant and other unobservable inputs: – Forecast nickel prices, historical prices and observed volatility;
– Tenor of option expiry beyond market liquidity; and
– Discount rate based on risk-free rate adjusted for asset specific risks.
The significant unobservable inputs represent the long-term nickel price to which the
valuation remains sensitive. A 10% increase/decrease in nickel price assumptions would
result in a $9 million adjustment to the current carrying values.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
29. Fair value measurements continued
US$ million
2024
2023
Physical Forwards
Assets
1,229
936
Liabilities
(94)
(66)
Valuation techniques and key inputs:
Discounted cash flow model
Significant and other unobservable inputs: Valuation of the Group’s commodity physical forward contracts categorised within this
level is based on observable market prices that are adjusted by unobservable
differentials, as required, including:
– quality;
– geographic location;
– local supply and demand;
– customer requirements; and
– counterparty credit considerations.
These unobservable inputs generally represent 1%–30% of the overall value of the
instruments. The valuation prices are applied consistently to value physical forward sale
and purchase contracts, and changing a particular input to reasonably possible
alternative assumptions does not result in a material change in the underlying value of
the portfolio.
As at 31 December 2024, physical forward Level 3 assets relating to LNG contracts
amount to $1,085 million (2023: $760 million) and liabilities of $44 million (2023: $Nil).
Valuation of these contracts is based on observable oil and global gas prices that are
adjusted by unobservable differentials which collectively represent, but are not limited
to, transportation, storage, liquefication and regasification premiums.
The value of our Level 3 long-term LNG physical supply contracts reflects the price
dislocation between Europe and other international markets and uncertainty of pricing
inputs beyond the observable range. There is limited observable LNG pricing data
beyond 2027 and an estimation uncertainty exists over global gas supply and demand
and the extent to which the current dislocation impacts long-term LNG pricing. For the
longer-dated portion of the curve, complex modelling techniques are also required
where there is limited observable market data. Extrapolation of observable pricing is
applied and correlated to third-party long-term forecast macro pricing assumptions for
various oil and global gas indices, on which the long-term LNG prices are based. Given
the resulting inherent estimation uncertainty, reasonable valuation ranges are
developed to reflect the expected transfer value of these arrangements to another
market participant in accordance with IFRS 13. The Group considers the risks associated
with realising market value from unobservable long-term prices in selecting pricing
from within those ranges.
The potential impact of a 10% favourable and unfavourable change in the unobservable
valuation inputs could result in a gain and loss of $0.1 billion (2023: a gain and loss of $0.1
billion), respectively, both of which would be reflected in the consolidated statement of
income.
Non-discretionary dividend obligation
Assets
–
–
Liabilities
(150)
(309)
Valuation techniques and key inputs:
Discounted cash flow model
Significant and other unobservable inputs: – Long-term forecast coal prices;
– Discount rates using weighted average cost of capital methodology;
– Production models;
– Operating costs; and
– Capital expenditures.
The resultant liability is essentially a discounted cash flow valuation of the underlying
mining operation. Increases/decreases in forecast coal prices will result in an
increase/decrease to the value of the liability though this will be partially offset by
associated increases/decreases in the assumed production levels, operating costs and
capital expenditures, which are inherently linked to forecast coal prices. The significant
unobservable inputs represent the long-term forecast commodity prices to which the
valuation remains sensitive. A 10% increase/decrease in coal price assumptions would
result in a $81 million (2023: $92 million) adjustment to the current carrying value.
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Notes to the financial statements continued
30. Auditor’s remuneration
US$ million
2024
2023
Remuneration in respect of the audit of Glencore's consolidated financial statements
31
28
Other audit fees, primarily in respect of audits of accounts of subsidiaries
6
5
Audit-related assurance services1
3
5
Total audit and related assurance fees
40
38
Other assurance services2
1
3
Total non-audit fees
1
3
Total professional fees
41
41
1 Audit-related assurance services primarily related to interim reviews of the Group’s half-year accounts as well as bond issuances and comfort letters.
2 Other assurance services primarily comprises assurance in respect of certain aspects of the Group’s sustainability reporting.
31. Future commitments
Capital expenditure for the acquisition of property, plant and equipment is generally funded through the cash flow generated by the
respective industrial entities. As at 31 December 2024, $1,598 million (2023: $1,433 million), of which 92% (2023: 94%) relates to
expenditure to be incurred over the next year, was contractually committed for the acquisition of property, plant and equipment.
Certain of Glencore’s exploration tenements and licences require it to spend a minimum amount per year on development activities,
a significant portion of which would have been incurred in the ordinary course of operations. As at 31 December 2024, $202 million
(2023: $187 million) of such development expenditures are to be incurred, of which 40% (2023: 42%) are for commitments to be settled
over the next year.
As part of Glencore’s ordinary sourcing and procurement of physical commodities and other ordinary marketing obligations, the
selling party may request that a financial institution act as either a) the paying party upon the delivery of product and qualifying
documents through the issuance of a letter of credit or b) the guarantor by way of issuing a bank guarantee accepting responsibility
for Glencore’s contractual obligations. Similarly, Glencore is required to post rehabilitation and pension guarantees in respect of some
of these future, primarily industrial, long-term obligations. As at 31 December 2024, $6,974 million (2023: $7,207 million) of
procurement and $5,739 million (2023: $4,667 million) of rehabilitation and pension commitments have been issued on behalf of
Glencore, which will generally be settled simultaneously with the payment for such commodity and rehabilitation and pension
obligations.
Astron-related commitments
As part of the regulatory approval process relating to the acquisition of Astron Energy, Glencore and Astron Energy entered into
certain commitments (subject to variation for good cause) with the South Africa Competition Tribunal and the South African
Economic Development Department, including the investment of ZAR 6.0 billion ($318 million) in the Cape Town oil refinery and
related projects, in line with which Astron Energy has made several investments amounting to ZAR 3.5 billion ($185 million) in
qualifying expenditure as at 30 September 2024, being the most recent reporting cycle against the commitment. The timeline for
fulfilment of this expenditure is September 2027.
Acquisition of a 20% interest in an integrated oil refining and petrochemicals operation
In May 2024, Shell Singapore Pte Ltd, a subsidiary of Shell plc, reached an agreement to sell its Energy and Chemicals Park in
Singapore, which comprises an integrated oil refining and petrochemicals business, to CAPGC Pte. Ltd. (‘CAPGC’). Glencore owns a
20% equity stake in CAPGC, a joint venture formed with Chandra Asri Group for the transaction. Glencore’s initial funding associated
with the transaction and working capital is expected to be c.$500 million. The transaction, subject to regulatory approvals, is expected
to close in Q1 2025.
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Additional Information
Notes to the financial statements continued
32. Contingent liabilities
There were no corporate guarantees in favour of third parties as at 31 December 2024 (2023: None), except those disclosed in note 11.
The Group is subject to various legal and government proceedings as detailed below. These contingent liabilities are reviewed on a
regular basis and where appropriate an estimate is made of the potential financial impact on the Group. As at 31 December 2024 and
2023, it was not feasible to make such an assessment.
Legal and government proceedings
Under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, a provision is recognised when Glencore has a present
obligation (legal or constructive), as a result of a past event, and it is probable that an outflow of resources embodying economic
benefits, that can be reliably estimated, will be required to settle the liability. A contingent liability is a possible obligation that arises
from a past event and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of Glencore. If it is not clear whether there is a present obligation, a past event is deemed to give
rise to a present obligation if, taking account of all available evidence, it is more likely than not that a present obligation exists at the
end of the reporting period. When a present obligation arises but it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability, a
contingent liability is disclosed.
Investigations by regulatory and enforcement authorities
On 5 August 2024, the Group announced that Office of the Attorney General of Switzerland (‘OAG‘) closed its criminal investigation
against Glencore International AG (‘GIAG‘) with a summary penalty order and an abandonment order. GIAG was sentenced to a fine of
CHF 2 million and the OAG imposed a compensation claim in the amount of $150 million. The parallel investigation by the Dutch
Prosecution Service was also concluded, and the case was dismissed following the resolution of the OAG investigation. These
resolutions follow the resolutions of the investigations of the US Department of Justice and UK Serious Fraud Office in 2022.
The Group notes that other authorities may commence investigations against the Group in connection with the resolved
investigations. In September 2024, the Company was notified by the Economic Crime and Confiscation Unit (ECCU) of the Law
Officers’ Department, Jersey that it was investigating the Company in respect of (i) the corrupt activities and related money
laundering of the Group; and (ii) the accuracy of assurances, representations and warranties given to all parties involved in the
approval, issuance and promotion of the initial public offering prospectus of the Company in 2011. The investigation appears to be
related to the same underlying facts as the concluded resolutions with the other authorities.
At 31 December 2024, taking account of all available evidence, the Board concluded that, with respect to the Jersey investigation and
other potential investigations, it is not probable that a present obligation existed at the end of the reporting period. The timing and
amount, if any, of the possible financial effects (such as fines, penalties or damages, which could be material) or other consequences,
including external costs, from the Jersey investigation and any other potential investigations and any change in their scope is not
currently possible to predict or estimate.
On 10 July 2024, Environment and Climate Change Canada laid five charges against EVR Operations Limited (formerly Teck Coal
Limited) for contraventions of subsection 36(3) of the Fisheries Act over the period of 1 January 2018 to 30 September 2023. Under the
Fisheries Act, each day on which a contravention occurs, or continues constitutes, a separate offence and the applicable fine range for
this case is a minimum of CAD 1,000,000 per offence and a maximum of CAD 12,000,000 per offence. At 31 December 2024, taking
account of all available evidence, the Board concluded that, with respect to the charges, it is not probable that a present obligation
existed at the end of the reporting period. The timing and amount, if any, of the possible financial effects (such as fines or damages,
which could be material) or other consequences, including external costs, from the charges is not currently possible to predict or
estimate.
Claims against the Company in connection with investigations by regulatory and enforcement
authorities
Claims are being pursued against the Group in the United Kingdom in connection with the various government investigations,
constituting claims on behalf of current and former shareholders. The claims are, inter alia, made under s90 of the Financial Services
and Markets Act 2000 (‘FSMA’) relating to prospectus liability, while certain claimants currently include s90A FSMA claims relating to
misstatements in other information published by the Company and/or dishonest delay in publishing information. The bases for the
claims are that the prospectuses issued in 2011 and 2013 and other published information by the Company were untrue, misleading or
contained omissions.
The Group may be the subject of further legal claims brought by other parties in connection with the government investigations,
including collective, group or representative actions.
In respect of these claims, taking into account all available evidence, the Board does not consider it probable that a present obligation
existed in relation to these claims or potential claims as at the balance sheet date, and the amount of any financial effects, which
could be material, is not currently possible to predict or estimate.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
32. Contingent liabilities continued
Claims in respect of Horne smelter
In October 2023, two individuals (Plaintiffs) filed Motion for Authorization of a Class Action and to Obtain the Status of Representatives
against Glencore and the Attorney General of Québec, as representative of the Government of the Province of Québec (the ‘Québec
Government’) (together, the ‘Defendants’) regarding Glencore’s Horne Smelter situated in the city of Rouyn-Noranda, in the Province
of Québec, Canada. The Plaintiffs allege that Glencore caused prejudice to the proposed class by releasing contaminants into the
environment, while fully aware of the risks and dangers to public health. The Plaintiffs also allege that the Québec Government
committed a fault and caused prejudice to the proposed class in that it tolerated and authorised these emissions. Taking into account
all available evidence, the Board does not consider it probable that a present obligation existed at the balance sheet date in relation to
this claim, and the amount of any financial effects, which could be material, is not currently possible to predict or estimate.
Other legal proceedings
Other claims and unresolved disputes are pending against Glencore. However, based on the Group’s current assessment of these
matters any future individually material financial obligations are considered to be remote.
Environmental contingencies
Glencore’s operations are subject to various environmental laws and regulations. Glencore is not aware of any material non-
compliance with those laws and regulations. Glencore accrues for environmental contingencies when such contingencies are
probable and reasonably estimable. Such accruals are adjusted as new information develops or circumstances change. Recoveries of
environmental remediation costs from insurance companies and other parties are recorded as assets when the recoveries are
virtually certain. At this time, Glencore is unaware of any material environmental incidents at its locations. Any potential liability arising
from environmental incidents in the ordinary course of the Group’s business would not usually be expected to have a material
adverse effect on its consolidated income, financial position or cash flows.
33. Related party transactions
In the normal course of business, Glencore enters into various arm’s length transactions with related parties, including fixed price
commitments to sell and to purchase commodities, forward sale and purchase contracts, agency agreements and management
service agreements. Outstanding balances at period end are unsecured and settlement occurs in cash (see notes 12, 14 and 25). There
have been no guarantees provided or received for any related party receivables or payables.
All transactions between Glencore and its subsidiaries are eliminated on consolidation along with any unrealised profits and losses
between its subsidiaries, associates and joint ventures. In 2024, sales and purchases with associates and joint ventures amounted to
$2,591 million (2023: $3,289 million) and $6,324 million (2023: $5,850 million), respectively.
Remuneration of key management personnel
Glencore’s key management personnel are the members of the Board of Directors, CEO, and the following members of our Group
Leadership: our CFO, General Counsel, Head of Industrial Assets, Head of Corporate Affairs, Head of Human Resources and Head of
Sustainability. The remuneration of Directors and other members of key management personnel recognised in the consolidated
statement of income including salaries and other current employee benefits amounted to $29 million (2023: $36 million). Amounts
expensed relating to long-term benefits or share-based payments to key management personnel amounted to $8 million (2023: $9
million).
34. Principal subsidiaries with material non-controlling interests
Non-controlling interest is comprised of the following:
US$ million
2024
2023
EVR
1,688
–
Kazzinc
1,125
1,087
Koniambo
(7,231)
(6,419)
KCC
(969)
(185)
Volcan1
–
(302)
Other
378
476
Total
(5,009)
(5,343)
1
In 2024, Glencore disposed of its 23.3% interest in Volcan (see note 26).
Renewal of KCC’s mining licence and 5% dilution
In 2024, KCC renewed its mining permits for an additional period of 15 years. The renewal of the mining permits triggered the transfer
of 5% of Glencore’s equity interest in KCC to the DRC government in accordance with the DRC Mining Code, which resulted in an
equal and opposite movement in non-controlling interests and change in ownership interests in subsidiaries of $454 million.
2024 Glencore Annual Report
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Additional Information
Notes to the financial statements continued
34. Principal subsidiaries with material non-controlling interests continued
Summarised financial information in respect of Glencore’s subsidiaries that have material non-controlling interest as at
31 December 2024 and 2023, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below.
US$ million
EVR
Kazzinc
Koniambo
KCC
31 December 2024
Non-current assets
13,486
2,372
–
3,768
Current assets
1,730
2,047
99
1,179
Total assets
15,216
4,419
99
4,947
Non-current liabilities
9,251
200
17,059
10,107
Current liabilities
1,070
498
91
2,483
Total liabilities
10,321
698
17,150
12,590
Net assets/(liabilities)
4,895
3,721
(17,051)
(7,643)
Equity attributable to owners of the Company
3,207
2,596
(9,820)
(6,674)
Non-controlling interest
1,688
1,125
(7,231)
(969)
Non-controlling interest %
23.0%
30.3%
51.0%
30.0%
2024
Revenue
2,258
4,199
143
1,949
Expenses
(2,289)
(3,891)
(1,735)
(3,102)
Net gain/(loss) for the year
(31)
308
(1,592)
(1,153)
Gain/(loss) attributable to owners of the Company
(65)
246
(780)
(1,010)
Gain/(loss) attributable to non-controlling interests
34
62
(812)
(143)
Total comprehensive gain/(loss) for the year
(31)
308
(1,592)
(1,153)
Dividends paid to non-controlling interests
–
(61)
–
–
Net cash inflow/(outflow) from operating activities
339
1,037
(124)
263
Net cash outflow from investing activities
(534)
(237)
–
(385)
Net cash inflow/(outflow) from financing activities
251
(431)
109
103
Total net cash inflow/(outflow)
56
369
(15)
(19)
US$ million
Kazzinc
Koniambo
KCC
31 December 2023
Non-current assets
2,750
307
4,414
Current assets
1,920
420
1,308
Total assets
4,670
727
5,722
Non-current liabilities
200
16,072
9,867
Current liabilities
876
114
2,250
Total liabilities
1,076
16,186
12,117
Net assets/(liabilities)
3,594
(15,459)
(6,395)
Equity attributable to owners of the Company
2,507
(9,040)
(6,210)
Non-controlling interest
1,087
(6,419)
(185)
Non-controlling interest %
30.3%
51.0%
25.0%
2023
Revenue
3,685
415
1,816
Expenses
(3,891)
(1,736)
(2,864)
Net loss for the year
(206)
(1,321)
(1,048)
Loss attributable to owners of the Company
(173)
(647)
(575)
Loss attributable to non-controlling interests
(33)
(674)
(473)
Total comprehensive loss for the year
(206)
(1,321)
(1,048)
Dividends paid to non-controlling interests
1
–
–
Net cash inflow/(outflow) from operating activities
224
(388)
(239)
Net cash outflow from investing activities
(337)
–
(465)
Net cash inflow/(outflow) from financing activities
43
384
749
Total net cash (outflow)/inflow
(70)
(4)
45
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Additional Information
Notes to the financial statements continued
35. Principal operating, finance and industrial subsidiaries and investments
Country of
incorporation
% interest
2024
% interest
2023
Main activity
Principal subsidiaries
Industrial activities
Glencore El Pachon Limited
Argentina
100.0
100.0
Copper production
Minera Agua Rica Alumbrera Limited
Argentina
100.0
100.0
Copper production
Compania Minera Lomas Bayas
Chile
100.0
100.0
Copper production
Complejo Metalurgico Altonorte SA
Chile
100.0
100.0
Copper production
Compania Minera Antapaccay S.A.
Peru
100.0
100.0
Copper production
Pasar Group
Philippines
78.2
78.2
Copper production
Glencore Recycling LLC
USA
100.0
100.0
Copper production
Kamoto Copper Company SA
DRC
70.0
75.0
Copper/Cobalt production
Mutanda Group
DRC
95.0
95.0
Copper/Cobalt production
Mount Isa Mines Limited
Australia
100.0
100.0 Copper/Zinc/Lead production
Kazzinc Ltd
Kazakhstan
69.7
69.7 Copper/Zinc/Lead production
Zhayremsky Gorno-Obogatitelny Kombinat JSC
Kazakhstan
69.7
69.7 Copper/Zinc/Lead production
Altyntau Kokshetau JSC
Kazakhstan
69.7
69.7
Gold production
Britannia Refined Metals Limited
UK
100.0
100.0
Lead production
Murrin Murrin Operations Pty Ltd
Australia
100.0
100.0
Nickel production
Koniambo Nickel S.A.S.1
New Caledonia
49.0
49.0
Nickel production
Glencore Nikkelverk AS
Norway
100.0
100.0
Nickel production
Mcarthur River Mining Pty. Ltd.
Australia
100.0
100.0
Zinc production
Canadian Electrolytic Zinc Limited
Canada
100.0
100.0
Zinc production
Nordenhamer Zinkhütte GmbH
Germany
100.0
100.0
Zinc production
Asturiana de Zinc S.A.U.
Spain
100.0
100.0
Zinc production
Volcan Companja Minera S.A.A.2
Peru
–
23.3
Zinc production
Portovesme S.r.L.
Italy
100.0
100.0
Zinc/Lead production
1 The Group has control of Koniambo Nickel S.A.S. as a result of the ability to direct the key activities of the operation and to appoint key management
personnel provided by the terms of the financing arrangements underlying the Koniambo project.
2 In 2024, Glencore completed the sale of its stake in Volcan Companja Minera S.A.A. (refer to note 26).
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Additional Information
Notes to the financial statements continued
35. Principal operating, finance and industrial subsidiaries and investments continued
Country of
incorporation
% interest
2024
% interest
2023
Main activity
Industrial activities
Enex Liddell Pty Limited3
Australia
100.0
67.5
Coal production
Mangoola Coal Operations Pty Limited
Australia
100.0
100.0
Coal production
Mt Owen Pty Limited
Australia
100.0
100.0
Coal production
NC Coal Company Pty Limited
Australia
100.0
100.0
Coal production
Oakbridge Pty Limited
Australia
98.2
98.2
Coal production
Ravensworth Operations Pty Limited
Australia
100.0
100.0
Coal production
Rolleston Coal Holdings Pty Limited
Australia
100.0
100.0
Coal production
Ulan Coal Mines Pty Limited
Australia
100.0
100.0
Coal production
Elk Valley Mining Limited Partnership4
Canada
77.0
–
Coal production
Prodeco Group
Colombia
100.0
100.0
Coal production
Umcebo Mining (Pty) Ltd5
South Africa
48.7
48.7
Coal production
ARM Coal (Proprietary) Limited6
South Africa
49.0
49.0
Coal production
Carbones del Cerrejón Limited
Anguilla
100.0
100.0
Coal production
Glencore Exploration Cameroon Ltd.
Bermuda
100.0
100.0
Oil production
Glencore Exploration (EG) Limited
Bermuda
100.0
100.0
Oil production
Astron Energy (Pty) Ltd
South Africa
68.0
72.0
Oil refining / distribution
Marketing activities and other operating and finance
Xstrata Limited
UK
100.0
100.0
Holding
Glencore Australia Investment Holdings Pty Ltd
Australia
100.0
100.0
Holding
Glencore Operations Australia Pty Limited
Australia
100.0
100.0
Holding
Glencore Queensland Pty Limited
Australia
100.0
100.0
Holding
Glencore Investment Pty Limited
Australia
100.0
100.0
Holding
Glencore Australia Holdings Pty Limited
Australia
100.0
100.0
Finance
Glencore Finance (Bermuda) Ltd.
Bermuda
100.0
100.0
Finance
ALE Combustíveis S.A.
Brazil
100.0
100.0
Oil distribution
Glencore Finance (Canada) Limited
Canada
100.0
100.0
Finance
Glencore Finance (Europe) Limited
Jersey
100.0
100.0
Finance
Glencore Capital Finance Designated Activity Company
Ireland
100.0
100.0
Finance
Finges Investment B.V.
Netherlands
100.0
100.0
Finance
Glencore (Schweiz) AG
Switzerland
100.0
100.0
Finance
Glencore Group Funding AG (Ltd/SA)
Switzerland
100.0
100.0
Finance
Glencore Funding LLC
USA
100.0
100.0
Finance
Glencore Australia Oil Pty Limited
Australia
100.0
100.0
Operating
Glencore Canada Corporation
Canada
100.0
100.0
Operating
Glencore Chile SpA
Chile
100.0
100.0
Operating
Glencore China Ltd.
China
100.0
100.0
Operating
Glencore Singapore Pte. Ltd.
Singapore
100.0
100.0
Operating
ST Shipping and Transport Pte. Ltd.
Singapore
100.0
100.0
Operating
Glencore AG (Ltd/SA)
Switzerland
100.0
100.0
Operating
Glencore International AG (Ltd/SA)
Switzerland
100.0
100.0
Operating
Glencore Commodities Ltd
UK
100.0
100.0
Operating
Glencore Energy UK Ltd.
UK
100.0
100.0
Operating
Glencore UK Ltd.
UK
100.0
100.0
Operating
3 In 2024, Glencore completed the acquisitions of the remaining 32.5% in the Liddell Group and Foybrook Tenements Pty Limited.
4 In 2024, Glencore completed the acquisition of 77% of the Elk Valley Resources Group (refer to note 26).
5 Although Glencore holds less than 50% of the voting rights, it has the ability to exercise control over Umcebo as a result of shareholder agreements which
provide Glencore the ability to control the board of directors.
6 Although Glencore holds 47.5% (2023: 47.5%) of the voting rights, it has the ability to exercise control over ARM as a result of shareholder agreements which
provide Glencore the ability to control the board of directors.
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Additional Information
Notes to the financial statements continued
35. Principal operating, finance and industrial subsidiaries and investments continued
Country of
incorporation
% interest
2024
% interest
2023
Main activity
Principal joint ventures7
Viterra Group
Jersey
49.9
49.9
Agriculture business
Compania Minera Dona Ines de Collahuasi SCM
Chile
44.0
44.0
Copper production
Principal joint operations and other unincorporated
arrangements8
Bulga Joint Venture
Australia
85.9
85.9
Coal production
Hail Creek Joint Venture
Australia
84.7
84.7
Coal production
Hunter Valley Operations Joint Venture
Australia
49.0
49.0
Coal production
Oaky Creek Coal Joint Venture
Australia
55.0
55.0
Coal production
United Wambo Joint Venture
Australia
47.5
47.5
Coal production
Neptune Bulk Terminals (Canada) Ltd.
Canada
35.7
–
Coal terminal
Goedgevonden Joint Venture9
South Africa
74.0
74.0
Coal production
Glencore Merafe Chrome Pooling and Sharing Joint
Venture
South Africa
79.5
79.5
Ferroalloys production
Rhovan Pooling and Sharing Joint Venture9
South Africa
74.0
74.0
Vanadium production
NewRange Copper Nickel LLC
USA
50.0
50.0
Copper production
7 The principal joint arrangements are accounted for as joint ventures as the shareholder agreements do not provide the Group the ability to solely control
the entities.
8 Classified as joint operations under IFRS 11, as these joint arrangements convey a direct right to a share of the underlying operations’ assets, liabilities,
revenues and expenses. The Hail Creek interest is an ‘other unincorporated arrangement’ accounted for similar to a joint operation.
9 Glencore has the ability to exercise control over Goedgevonden Joint Venture and Rhovan Joint Venture as a result of shareholder agreements which
results in the joint ventures being fully consolidated.
Country of
incorporation
% interest
2024
% interest
2023
Main activity
Principal associates
Newcastle Coal Shippers Pty Limited10
Australia
64.4
52.6
Coal terminal
GS Coal Holdings Pty Ltd
Australia
50.0
50.0
Coal production
Century Aluminum Company11
USA
45.9
46.0
Aluminium production
Alumina do Norte do Brasil S.A
Brazil
33.0
30.0
Alumina production
Mineração Rio do Norte S.A.
Brazil
45.0
45.0
Bauxite production
PT CITA Mineral Investindo Tbk
Indonesia
31.7
31.7
Alumina production
Aquarius Energy Limited
Jersey
49.0
49.0
Oil storage
Compania Minera Antamina S.A.
Peru
33.8
33.8
Zinc/Copper production
10 Glencore holds 61.5% (2023: 50.2%) of the voting rights.
11 Represents the Group’s economic interest in Century, comprising 42.9% (2023: 42.9%) voting interest and 2.9% non-voting interest (2023: 3.0%). Century is
publicly traded on NASDAQ under the symbol CENX.
Country of
incorporation
% interest
2024
% interest
2023
Main activity
Other investments
Shenzhen Energy Gas Investment Holding Co. Ltd
China
7.8
7.8
Energy distribution
MAC Copper Limited. (previously Metals Acquisition
Limited)12
Jersey
12.1
19.9
Zinc/Copper production
PT Amman Mineral Internasional Tbk
Indonesia
–
1.2
Copper production
PT Trimegah Bangun Persada Tbk
Indonesia
3.9
0.9
Nickel production
12 In 2024, the Group’s investment in MAC Copper Limited, previously classified as associate, was reclassified to other investments following the loss of
significant influence (refer to note 11).
36. Subsequent events
• On 19 February 2025, the Group announced the commencement of a new $1.0 billion share buyback programme, with the
intended completion by the time of the Group’s interim results announcement in August 2025.
• On 20 February 2025, the Group cancelled 100,000,000 of treasury shares amounting to $304 million. Following the cancellation,
the total number of issued ordinary shares is 13,450,000,000 and the number of ordinary shares in treasury was 1,259,288,041.
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Additional Information
Alternative performance measures
Alternative performance measures are denoted by the symbol ◊.
When assessing and discussing the Group’s reported financial performance, financial position and cash flows, Glencore makes
reference to Alternative performance measures (APMs), which are not defined or specified under the requirements of IFRS, but are
derived from the financial statements prepared in accordance with IFRS. The APMs are consistent with how business performance is
measured and reported within the internal management reporting to the Board and management, and assist in providing
meaningful analysis of the Group’s results both internally and externally in discussions with the financial analyst and investment
community.
The Group uses APMs to aid the comparability of information between reporting periods and segments and to aid the understanding
of the activity taking place across the Group by adjusting for items that are of an infrequent nature and by aggregating or
disaggregating (notably in the case of relevant material associates and joint ventures accounted for on an equity basis) certain IFRS
measures. APMs are also used to approximate the underlying operating cash flow generation of the operations (Adjusted EBITDA).
Investments in the extractive industry are typically significant and the initial spend generally occurs over several years, ‘upfront’, prior
to the operations generating cash. As a result, the investments are sometimes made with partners and an assessment to
approximate the operating cash flow generation/pay-back of the investment (Adjusted EBITDA) is required. Against this backdrop,
the key APMs used by Glencore are Adjusted EBITDA, Net funding/Net debt and the disaggregation of the equivalent key APMs of
our relevant material associates and joint ventures (‘Proportionate adjustment’) to enable a consistent evaluation of the financial
performance and returns attributable to the Group.
Adjusted EBITDA is a useful approximation of the operating cash flow generation by eliminating depreciation and amortisation
adjustments. Adjusted EBITDA is not a direct measure of our liquidity, which is shown by our cash flow statement and needs to be
considered in the context of our financial commitments.
Proportionate adjustments are useful to enable a consistent evaluation of the financial performance and returns available to the
Group, irrespective of the differing accounting treatments required to account for our minority/joint ownership interests of our
relevant material investments.
Net funding is an aggregation of IFRS measures (Borrowings less cash and cash equivalents) and Net debt is Net funding less Readily
marketable inventories and provides a measure of our financial leverage and, through Net debt to Adjusted EBITDA relationships,
provides an indication of relative financial strength and flexibility.
APMs used by Glencore may not be comparable with similarly titled measures and disclosures by other companies. APMs have
limitations as an analytical tool, and a user of the financial statements should not consider these measures in isolation from, or as a
substitute for, analysis of the Group’s results of operations; and they may not be indicative of the Group’s historical operating results,
nor are they meant to be a projection or forecast of its future results.
Listed below are the definitions and reconciliations to the underlying IFRS measures of the various APMs used by the Group.
Proportionate adjustment
For internal reporting and analysis, management evaluates the performance of Antamina copper/zinc mine (34% owned) and
Collahuasi copper mine (44% owned) under the proportionate consolidation method reflecting Glencore’s proportionate share of the
revenues, expenses, assets and liabilities of these investments.
The carrying amounts of Volcan assets and liabilities as at 31 December 2023 were classified as held for sale (see note 16). In May 2024,
the disposal completed (see note 26). Although Glencore had a voting interest in Volcan of 63%, its total economic interest was only
23.3%. For internal reporting and analysis, management evaluated the performance of Volcan under the equity method, reflecting the
Group’s relatively low 23.3% economic ownership until its disposal in May 2024 (see note 26). The impact was that, prior to its disposal,
23.3% of Volcan’s net income was reflected in the Group’s Adjusted EBIT/EBITDA, and its consolidated results were excluded from all
other APMs, including production data.
The Viterra joint venture is a stand-alone group with a fully independent capital structure, governance and credit profile, supporting a
global business, across many geographies, products and activities. Glencore’s management evaluates this investment’s financial
performance on a net return basis, as opposed to an Adjusted EBITDA basis. In June 2023, Glencore and its fellow shareholders in
Viterra Limited, concluded an agreement with Bunge Limited to merge Bunge and Viterra in a cash and stock transaction. As a result,
the carrying amount of the 49.9% investment in Viterra as at 31 December 2024 and as at 31 December 2023 is classified as held for
sale (see note 16) and, while having this classification, Glencore no longer accounts for its share of Viterra’s income. However, for
segmental reporting purposes, and for internal reporting, Viterra continues to be accounted for as an equity accounted associate,
pending completion of the transaction.
See reconciliation of revenue and relevant material associates’ and joint ventures’ Adjusted EBIT to ‘Share of net income from
associates and joint ventures’ below.
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Additional Information
Alternative performance measures continued
APMs derived from the statement of income
Revenue
Segmental revenue (see note 2 of the financial statements) represents revenue as reported on the face of the statement of income
plus the relevant Proportionate adjustments. See reconciliation table below.
US$ million
2024
2023
Revenue – Marketing activities
201,323
186,708
Revenue – Industrial activities
59,074
60,421
Inter-segment eliminations
(25,981)
(26,741)
Revenue – segmental
234,416
220,388
Proportionate adjustment material associates and joint ventures – revenue
(3,702)
(3,477)
Proportionate adjustment Volcan – revenue
230
918
Revenue – reported measure
230,944
217,829
Share of income from relevant material associates and joint ventures
US$ million
2024
2023
Associates’ and joint ventures’ Adjusted EBITDA
2,540
2,338
Depreciation and amortisation
(822)
(729)
Associates’ and joint ventures’ Adjusted EBIT
1,718
1,609
Net finance costs
3
5
Income tax expense
(673)
(559)
(670)
(554)
Share of income from relevant material associates and joint ventures
1,048
1,055
Share of income from other associates and joint ventures
369
282
Share of income from associates and joint ventures
1,417
1,337
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Additional Information
Alternative performance measures continued
Adjusted EBIT/EBITDA
Adjusted EBIT/EBITDA provide insight into our overall business performance (a combination of cost management, seizing market
opportunities and growth), and are the corresponding flow drivers towards our objective of achieving strong returns.
Adjusted EBIT is the net result, excluding significant items, of revenue less cost of goods sold, net expected credit losses on financial
assets and selling and administrative expenses, plus dividend income and share of income from associates and joint ventures
adjusted for the attributable share of net finance costs and income tax expense of relevant material associates and joint ventures,
which are accounted for internally by means of proportionate consolidation.
Adjusted EBITDA consists of Adjusted EBIT plus depreciation and amortisation, including the related Proportionate adjustments. See
reconciliation table below.
US$ million
2024
2023
Reported measures
Revenue
230,944
217,829
Cost of goods sold
(224,294)
(207,046)
Net expected credit losses
(186)
21
Selling and administrative expenses
(2,023)
(2,105)
Share of income from associates and joint ventures
1,417
1,337
Dividend income
7
6
5,865
10,042
Adjustments to reported measures
Share of associates’ significant items
(113)
90
Viterra share in earnings post held for sale classification
165
186
Movement in unrealised inter-segment profit elimination
(45)
(258)
EVR inventory fair value adjustment
444
–
Proportionate adjustment material associates and joint ventures – net finance and income tax
expense
670
554
Proportionate adjustment Volcan – net finance, income tax expense and non-controlling interests
(48)
(222)
Adjusted EBIT
6,938
10,392
Depreciation and amortisation
6,598
5,981
Proportionate adjustment material associates and joint ventures – depreciation
822
729
Adjusted EBITDA
14,358
17,102
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Additional Information
Alternative performance measures continued
Significant items
Significant items of income and expense which, due to their variable financial impact or the expected infrequency of the events
giving rise to them, are separated for internal reporting and analysis of Glencore’s results to aid in an understanding and comparative
basis of the underlying financial performance. Refer to reconciliation below.
Reconciliation of net significant items 2024
US$ million
Gross
significant
charges
Non-
controlling
interests’ share
Significant
items tax
Equity
holders’ share
Share of Associates' significant items1
113
–
–
113
Viterra share in earnings post-held for sale classification
(165)
–
–
(165)
Movement in unrealised inter-segment profit elimination1
45
–
(6)
39
EVR inventory fair value adjustment1
(444)
102
–
(342)
Net loss on disposals of non-current assets2
(337)
–
–
(337)
Other expense – net3
(1,926)
101
–
(1,825)
Tax-significant items in their own right4
–
99
(1,253)
(1,154)
(2,714)
302
(1,259)
(3,671)
Impairments attributable to equity holders
Impairments5
(2,266)
299
312
(1,655)
(2,266)
299
312
(1,655)
Total significant items
(4,980)
601
(947)
(5,326)
1 See note 2 of the financial statements.
2 See note 4 of the financial statements.
3 See note 5 of the financial statements.
4 Relates to tax losses not recognised ($712 million), adjustments in respect of prior years ($271 million) and foreign exchange fluctuations ($270 million), see
note 8 of the financial statements.
5 See note 7 of the financial statements.
Reconciliation of net significant items 2023
US$ million
Gross
significant
charges
Non-
controlling
interests’ share
Significant
items tax
Equity
holders’ share
Share of Associates' significant items1
(90)
–
–
(90)
Viterra share in earnings post held for sale classification
(186)
–
–
(186)
Movement in unrealised inter-segment profit elimination1
258
–
(35)
223
Gain on disposals of non-current assets2
850
–
(197)
653
Other expense – net3
(1,091)
45
13
(1,033)
Tax-significant items in their own right4
–
–
(313)
(313)
(259)
45
(532)
(746)
Impairments attributable to equity holders
Impairments5
(2,109)
56
460
(1,593)
Impairment Volcan5
(375)
261
35
(79)
(2,484)
317
495
(1,672)
Total significant items
(2,743)
362
(37)
(2,418)
1 See note 2 of the financial statements.
2 See note 4 of the financial statements.
3 See note 5 of the financial statements.
4 Relates to tax losses not recognised ($255 million) and adjustments in respect of prior years ($321 million) less foreign exchange fluctuations ($263 million),
see note 8 of the financial statements.
5 See note 7 of the financial statements.
Net income attributable to equity holders pre-significant items
Net income attributable to equity holders pre-significant items is a measure of our ability to generate shareholder returns. The
calculation of tax items to be excluded from Net income, includes the tax effect of significant items and significant tax items
themselves. Refer to reconciliation below.
US$ million
2024
2023
(Loss)/income for the year attributable to equity holders of the Parent
(1,634)
4,280
Significant items
5,326
2,418
Income attributable to equity holders of the Parent pre-significant items
3,692
6,698
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Additional Information
Alternative performance measures continued
APMs derived from the statement of financial position
Net funding/Net debt and Net debt to Adjusted EBITDA
Net funding/debt demonstrates how our debt is being managed and is an important factor in ensuring we maintain investment-
grade credit rating status and a competitive cost of capital. Net funding is defined as total current and non-current borrowings less
cash and cash equivalents and related Proportionate adjustments. Net debt is defined as Net funding less readily marketable
inventories and related Proportionate adjustments. Furthermore, the relationship of Net debt to Adjusted EBITDA provides an
indication of financial flexibility. See reconciliation table below.
Readily marketable inventories (RMI)
RMI, comprising the core inventories which underpin and facilitate Glencore’s marketing activities, represent inventories that, in
Glencore’s assessment, are readily convertible into cash in the short term due to their liquid nature, widely available markets and the
fact that price risk is primarily covered either by a forward physical sale or hedge transaction. Glencore regularly assesses the
composition of these inventories and their applicability, relevance and availability to the marketing activities. As at 31 December 2024,
$25,238 million (2023: $26,145 million) of inventories were considered readily marketable. This comprises $13,816 million (2023:
$14,441 million) of inventories carried at fair value less costs of disposal and $11,422 million (2023: $11,704 million) carried at the lower of
cost or net realisable value. Total readily marketable inventories includes $155 million (2023: $113 million) related to the relevant
material associates and joint ventures (see note 2) presented under the proportionate consolidation method, comprising inventory
carried at lower of cost or net realisable value. Given the highly liquid nature of these inventories, which represent a significant share
of current assets, the Group believes it is appropriate to consider them together with cash equivalents in analysing Group net debt
levels and computing certain debt coverage ratios and credit trends.
Net funding/net debt at 31 December 2024
US$ million
Reported
measure
Proportionate
adjustment
material
associates and
joint ventures
Adjusted
measure
Non-current borrowings
25,264
872
26,136
Current borrowings
12,843
79
12,922
Total borrowings
38,107
951
39,058
Less: cash and cash equivalents
(2,389)
(264)
(2,653)
Net funding1
35,718
687
36,405
Less: Readily marketable inventories
(25,083)
(155)
(25,238)
Net debt1
10,635
532
11,167
Adjusted EBITDA
14,358
Net debt to Adjusted EBITDA
0.78
Net funding/net debt at 31 December 2023
US$ million
Reported
measure
Proportionate
adjustment
material
associates and
joint ventures
Adjusted
measure
Non-current borrowings
21,275
864
22,139
Current borrowings
10,966
50
11,016
Total borrowings
32,241
914
33,155
Less: cash and cash equivalents
(1,925)
(168)
(2,093)
Net funding1
30,316
746
31,062
Less: Readily marketable inventories
(26,032)
(113)
(26,145)
Net debt1
4,284
633
4,917
Adjusted EBITDA
17,102
Net debt to Adjusted EBITDA
0.29
1 Includes $1,072 million (2023: $705 million) of Marketing lease liabilities.
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Additional Information
Alternative performance measures continued
Capital expenditure (‘Capex’)
Capital expenditure is expenditure capitalised as property, plant and equipment. For internal reporting and analysis, Capex includes
related Proportionate adjustments. See reconciliation table below.
US$ million
2024
2023
Capital expenditure – Marketing activities
1,041
603
Capital expenditure – Industrial activities
7,118
6,074
Capital expenditure – segmental
8,159
6,677
Proportionate adjustment material associates and joint ventures – capital expenditure
(1,345)
(1,291)
Capital expenditure – reported measure
6,814
5,386
APMs derived from the statement of cash flows
Net purchase and sale of property, plant and equipment
Net purchase and sale of property, plant and equipment is cash purchase of property, plant and equipment, net of proceeds from sale
of property, plant and equipment. For internal reporting and analysis, Net purchase and sale of property, plant and equipment
includes Proportionate adjustments. See reconciliation table below.
2024 US$ million
Reported
measure
Proportionate
adjustment
material
associates and
joint ventures
Adjusted
measure
Purchase of property, plant and equipment
(5,611)
(1,269)
(6,880)
Proceeds from sale of property, plant and equipment
143
–
143
Net purchase and sale of property, plant and equipment
(5,468)
(1,269)
(6,737)
2023 US$ million
Reported
measure
Proportionate
adjustment
material
associates and
joint ventures
Adjusted
measure
Purchase of property, plant and equipment
(4,484)
(1,229)
(5,713)
Proceeds from sale of property, plant and equipment
147
5
152
Net purchase and sale of property, plant and equipment
(4,337)
(1,224)
(5,561)
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Additional Information
Alternative performance measures continued
Funds from operations (FFO) and FFO to Net debt
FFO is a measure that reflects our ability to generate cash for investment, debt servicing and returns to shareholders. It comprises
cash provided by operating activities before working capital changes, less tax and net interest payments plus dividends received and
related Proportionate adjustments. Furthermore, the relationship of FFO to net debt is an indication of our financial flexibility and
strength. See reconciliation table below.
2024 US$ million
Reported
measure
Proportionate
adjustment
material
associates and
joint ventures
Proportionate
adjustment
Volcan
EVR inventory
fair value
adjustment1
Adjusted
measure
Cash generated by operating activities before working
capital changes, interest and tax
11,180
–
–
–
11,180
Addback EBITDA of relevant material associates and joint
ventures
–
2,540
(30)
–
2,510
Adjustments included within EBITDA
–
26
(25)
444
445
Adjusted cash generated by operating activities before
working capital changes, interest and tax
11,180
2,566
(55)
444
14,135
Income taxes paid
(1,660)
(648)
4
–
(2,304)
Interest received
533
10
(1)
–
542
Interest paid
(2,059)
(20)
21
–
(2,058)
Dividends received from associates and joint ventures
812
(598)
–
–
214
Funds from operations (FFO)
8,806
1,310
(31)
444
10,529
Net debt
11,167
FFO to net debt
94.3%
1 See note 2 of the financial statements.
2023 US$ million
Reported
measure
Proportionate
adjustment
material
associates and
joint ventures
Proportionate
adjustment
Volcan
EVR inventory
fair value
adjustment
Adjusted
measure
Cash generated by operating activities before working
capital changes, interest and tax
15,117
–
–
–
15,117
Addback EBITDA of relevant material associates and joint
ventures
–
2,338
(270)
–
2,068
Adjustments included within EBITDA
–
46
–
–
46
Adjusted cash generated by operating activities before
working capital changes, interest and tax
15,117
2,384
(270)
–
17,231
Income taxes paid
(6,503)
(589)
23
–
(7,069)
Interest received
552
10
(6)
–
556
Interest paid
(1,882)
(15)
63
–
(1,834)
Dividends received from associates and joint ventures
1,328
(760)
–
–
568
Funds from operations (FFO)
8,612
1,030
(190)
–
9,452
Net debt
4,917
FFO to net debt
192.2%
2024 Glencore Annual Report
260
Strategic Report
Corporate Governance
Additional Information
Other reconciliations
Available committed liquidity1
US$ million
2024
2023
Cash and cash equivalents – reported
2,389
1,925
Proportionate adjustment – cash and cash equivalents
264
168
Headline committed core revolving credit facilities
12,911
12,960
Other committed facilities
300
300
Amount drawn under revolving credit facilities
(3,460)
(1,456)
Amounts drawn under US commercial paper programme
(857)
(1,044)
Total
11,547
12,853
1 Presented on an adjusted measure basis.
Cash flow-related adjustments 2024
US$ million
Reported
measure
Proportionate
adjustment
material
associates and
joint ventures
Proportionate
adjustment
Volcan
EVR inventory
fair value
adjustment1
Adjusted
measure
Funds from operations (FFO)
8,806
1,310
(31)
444
10,529
Working capital changes
2,061
93
49
(444)
1,759
Investment in long-term advances and loans
(75)
–
–
–
(75)
Net cash used in acquisitions of subsidiaries
(6,949)
–
–
–
(6,949)
Net cash used in disposal of subsidiaries
(22)
–
42
–
20
Purchase of investments
(215)
–
–
–
(215)
Proceeds from sale of investments
192
–
–
–
192
Purchase of property, plant and equipment
(5,611)
(1,269)
–
–
(6,880)
Proceeds from sale of property, plant and equipment
143
–
–
–
143
Margin payments in respect of financing-related hedging
activities
(693)
–
–
–
(693)
Acquisition of non-controlling interests in subsidiaries
(5)
–
–
–
(5)
Distributions to non-controlling interests
(84)
–
–
–
(84)
Purchase of own shares
(230)
–
–
–
(230)
Distributions paid to equity holders of the Parent
(1,580)
–
–
–
(1,580)
Cash movement in net funding
(4,262)
134
60
–
(4,068)
1 See note 2 of the financial statements.
Cash flow-related adjustments 2023
US$ million
Reported
measure
Proportionate
adjustment
material
associates and
joint ventures
Proportionate
adjustment
Volcan
EVR inventory
fair value
adjustment
Adjusted
measure
Funds from operations (FFO)
8,612
1,030
(190)
–
9,452
Working capital changes
3,752
159
194
–
4,105
Net cash used in acquisitions of subsidiaries
(494)
–
–
–
(494)
Net cash received from disposal of subsidiaries
838
–
–
–
838
Purchase of investments
(946)
–
–
–
(946)
Proceeds from sale of investments
56
–
–
–
56
Purchase of property, plant and equipment
(4,484)
(1,229)
–
–
(5,713)
Proceeds from sale of property, plant and equipment
147
5
–
–
152
Margin receipts in respect of financing-related hedging
activities
897
–
–
–
897
Proceeds paid on acquisition of non-controlling interests
in subsidiaries
(68)
–
–
–
(68)
Distributions to non-controlling interests
(8)
–
–
–
(8)
Purchase of own shares
(3,672)
–
–
–
(3,672)
Distributions paid to equity holders of the Parent
(6,450)
–
–
–
(6,450)
Cash movement in net funding
(1,820)
(35)
4
–
(1,851)
2024 Glencore Annual Report
261
Strategic Report
Corporate Governance
Additional Information
Other reconciliations continued
Applicable tax rate
The applicable tax rate represents the effective tax rate which is computed based on the income tax expense, pre-significant items
and related Proportionate adjustments, divided by the earnings before tax, pre-significant items and related Proportionate
adjustments. See reconciliation table below.
Reconciliation of tax expense 2024
US$ million
Total
Adjusted EBIT, pre-significant items
6,938
Net finance costs
(2,334)
Adjustments for:
Net finance costs from material associates and joint ventures
3
Proportionate adjustment and net finance costs – Volcan
41
Share of income from other associates pre-significant items
(256)
Profit on a proportionate consolidation basis before tax and pre-significant items
4,392
Income tax expense, pre-significant items
(749)
Adjustments for:
Tax expense from material associates and joint ventures
(673)
Tax expense from Volcan
(1)
Tax expense on a proportionate consolidation basis
(1,423)
Applicable tax rate
32.4%
US$ million
Pre-significant
tax expense
Significant
items tax1
Total
tax expense
Tax expense on a proportionate consolidation basis
1,423
947
2,370
Adjustment in respect of material associates and joint ventures – tax
(673)
–
(673)
Adjustment in respect of Volcan – tax
(1)
–
(1)
Tax expense on the basis of the income statement
749
947
1,696
1 See table above.
Reconciliation of tax expense 2023
US$ million
Total
Adjusted EBIT, pre-significant items
10,392
Net finance costs
(1,900)
Adjustments for:
Net finance costs from material associates and joint ventures
5
Proportionate adjustment and net finance costs – Volcan
16
Share of income from other associates pre-significant items
(372)
Profit on a proportionate consolidation basis before tax and pre-significant items
8,141
Income tax expense, pre-significant items
(2,170)
Adjustments for:
Tax expense from material associates and joint ventures
(559)
Tax credit from Volcan
(3)
Tax expense on a proportionate consolidation basis
(2,732)
Applicable tax rate
33.6%
US$ million
Pre-significant
tax expense
Significant
items tax1
Total
tax expense
Tax expense on a proportionate consolidation basis
2,732
72
2,804
Adjustment in respect of material associates and joint ventures – tax
(559)
–
(559)
Adjustment in respect of Volcan – tax
(3)
(35)
(38)
Tax expense on the basis of the income statement
2,170
37
2,207
1 See table above.
2024 Glencore Annual Report
262
Strategic Report
Corporate Governance
Additional Information
Production by quarter – Q4 2023 to Q4 2024
Metals and minerals
Production from own sources – Total1
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
2024
2023
Change
2024 vs
2023
%
Change
Q4 24 vs
Q4 23
%
Copper
kt 274.3
239.7
222.9
242.6
246.4
951.6
1,010.1
(6)
(10)
Cobalt
kt
8.8
6.6
9.3
10.6
11.7
38.2
41.3
(8)
33
Zinc
kt 246.4
205.6
211.6
226.4
261.4
905.0
918.5
(1)
6
Lead
kt
49.1
43.8
44.1
48.3
49.7
185.9
182.7
2
1
Nickel
kt
29.2
23.8
20.4
18.1
20.0
82.3
97.6
(16)
(32)
Gold
koz
203
201
168
174
195
738
747
(1)
(4)
Silver
koz 5,501
4,520
4,597
4,848
5,321 19,286
20,011
(4)
(3)
Ferrochrome
kt
289
297
302
295
272
1,166
1,162
–
(6)
Steelmaking coal
mt
2.3
1.4
2.0
7.7
8.8
19.9
7.5
165
283
Energy coal
mt
27.4
25.2
22.0
25.9
26.5
99.6
106.1
(6)
(3)
Oil (entitlement interest basis)
kboe 1,229
1,153
1,001
899
920
3,973
4,743
(16)
(25)
2024 Glencore Annual Report
263
Strategic Report
Corporate Governance
Additional Information
Production by quarter – Q4 2023 to Q4 2024 continued
Metals and minerals
Production from own sources – Copper assets1
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
2024
2023
Change
2024 vs
2023
%
Change
Q4 24 vs
Q4 23
%
African Copper (KCC, Mutanda)
KCC
Copper metal
kt
44.2
46.9
41.6
46.2
55.9
190.6
206.4
(8)
26
Cobalt2
kt
5.6
4.9
6.8
7.5
8.0
27.2
27.6
(1)
43
Mutanda
Copper metal
kt
8.2
5.0
7.1
8.9
12.9
33.9
35.1
(3)
57
Cobalt2
kt
2.4
1.0
1.7
2.3
2.9
7.9
11.2
(29)
21
Total Copper metal
kt
52.4
51.9
48.7
55.1
68.8
224.5
241.5
(7)
31
Total Cobalt2
kt
8.0
5.9
8.5
9.8
10.9
35.1
38.8
(10)
36
Collahuasi3
Copper in concentrates
kt
71.7
64.7
60.3
64.7
56.1
245.8
252.2
(3)
(22)
Silver in concentrates
koz
1,178
911
946
937
863
3,657
4,032
(9)
(27)
Gold in concentrates
koz
12
10
13
12
10
45
41
10
(17)
Antamina4
Copper in concentrates
kt
39.6
35.9
40.4
37.1
31.3
144.7
142.4
2
(21)
Zinc in concentrates
kt
37.4
21.5
20.7
20.5
29.4
92.1
156.6
(41)
(21)
Silver in concentrates
koz
1,044
806
1,016
932
1,081
3,835
3,912
(2)
4
South America (Antapaccay, Lomas Bayas)
Antapaccay
Copper in concentrates
kt
56.5
42.9
26.5
35.9
40.5
145.8
173.0
(16)
(28)
Gold in concentrates
koz
25
30
8
15
27
80
97
(18)
8
Silver in concentrates
koz
423
343
177
246
311
1,077
1,267
(15)
(26)
Lomas Bayas Copper metal
kt
20.5
18.5
18.7
17.6
19.3
74.1
65.8
13
(6)
Total Copper metal
kt
20.5
18.5
18.7
17.6
19.3
74.1
65.8
13
(6)
Total Copper in
concentrates
kt
56.5
42.9
26.5
35.9
40.5
145.8
173.0
(16)
(28)
Total Gold in concentrates
and in doré
koz
25
30
8
15
27
80
97
(18)
8
Total Silver in concentrates
and in doré
koz
423
343
177
246
311
1,077
1,267
(15)
(26)
Australia (Cobar)
Cobar
Copper in concentrates
kt
–
–
–
–
–
–
15.0
(100)
n.m.
Silver in concentrates
koz
–
–
–
–
–
–
180
(100)
n.m.
Total Copper department
Copper
kt
240.7
213.9
194.6
210.4
216.0
834.9
889.9
(6)
(10)
Cobalt
kt
8.0
5.9
8.5
9.8
10.9
35.1
38.8
(10)
36
Zinc
kt
37.4
21.5
20.7
20.5
29.4
92.1
156.6
(41)
(21)
Gold
koz
37
40
21
27
37
125
138
(9)
–
Silver
koz
2,645
2,060
2,139
2,115
2,255
8,569
9,391
(9)
(15)
2024 Glencore Annual Report
264
Strategic Report
Corporate Governance
Additional Information
Production by quarter – Q4 2023 to Q4 2024 continued
Metals and minerals
Production from own sources – Zinc assets1
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
2024
2023
Change
2024 vs
2023
%
Change
Q4 24 vs
Q4 23
%
Kazzinc
Zinc metal
kt
32.7
32.3
31.7
29.0
35.3
128.3
113.8
13
8
Zinc in concentrates
kt
21.8
16.3
16.5
32.4
34.0
99.2
60.1
65
56
Lead metal
kt
4.7
8.6
7.5
6.5
14.8
37.4
18.7
100
215
Lead in concentrates
kt
6.1
1.7
0.6
2.2
–
4.5
16.9
(73)
(100)
Copper metal5
kt
5.4
4.4
4.6
4.2
4.2
17.4
14.8
18
(22)
Gold
koz
163
158
145
144
156
603
598
1
(4)
Silver
koz
860
762
789
684
1,105
3,340
2,727
22
28
Silver in concentrates
koz
142
27
13
50
–
90
548
(84)
(100)
Kazzinc – total smelter production including third-party feed
Zinc metal
kt
71.1
64.7
68.0
67.3
69.0
269.0
262.3
3
(3)
Lead metal
kt
24.6
29.4
27.9
28.8
24.6
110.7
98.0
13
–
Copper metal
kt
13.0
12.8
12.3
12.0
9.8
46.9
42.1
11
(25)
Gold
koz
318
273
249
227
251
1,000
1,124
(11)
(21)
Silver
koz
3,634
3,524
3,203
2,982
2,462
12,171
17,566
(31)
(32)
Australia (Mount Isa, McArthur River)
Mount Isa
Zinc in concentrates
kt
81.1
63.7
76.7
70.6
77.7
288.7
287.2
1
(4)
Copper metal
kt
17.9
13.7
15.0
21.1
17.6
67.4
69.1
(2)
(2)
Lead in concentrates
kt
24.7
21.2
22.9
27.0
21.1
92.2
96.7
(5)
(15)
Silver
koz
143
105
121
136
124
486
615
(21)
(13)
Silver in concentrates
koz
987
842
817
1,051
813
3,523
3,837
(8)
(18)
Mount Isa, Townsville – total production including third-party feed
Copper metal
kt
49.4
45.5
53.2
49.0
44.1
191.8
197.2
(3)
(11)
Gold
koz
50
36
59
61
46
202
168
20
(8)
Silver
koz
475
303
862
647
377
2,189
1,751
25
(21)
McArthur
River
Zinc in concentrates
kt
65.8
61.3
58.6
65.6
74.2
259.7
262.2
(1)
13
Lead in concentrates
kt
13.6
12.3
13.1
12.6
13.8
51.8
50.4
3
1
Silver in concentrates
koz
403
374
483
402
501
1,760
1,292
36
24
Total Zinc in concentrates
kt
146.9
125.0
135.3
136.2
151.9
548.4
549.4
–
3
Total Copper
kt
17.9
13.7
15.0
21.1
17.6
67.4
69.1
(2)
(2)
Total Lead in concentrates
kt
38.3
33.5
36.0
39.6
34.9
144.0
147.1
(2)
(9)
Total Silver
koz
143
105
121
136
124
486
615
(21)
(13)
Total Silver in concentrates
koz
1,390
1,216
1,300
1,453
1,314
5,283
5,129
3
(5)
North America
Kidd
Zinc in concentrates
kt
7.6
10.5
7.4
8.3
10.8
37.0
38.6
(4)
42
Copper in concentrates
kt
6.1
4.5
5.1
4.1
4.6
18.3
22.6
(19)
(25)
Silver in concentrates
koz
255
294
189
376
484
1,343
1,378
(3)
90
Total Zinc department
Zinc
kt
209.0
184.1
190.9
205.9
232.0
812.9
761.9
7
11
Lead
kt
49.1
43.8
44.1
48.3
49.7
185.9
182.7
2
1
Copper
kt
29.4
22.6
24.7
29.4
26.4
103.1
106.5
(3)
(10)
Gold
koz
163
158
145
144
156
603
598
1
(4)
Silver
koz
2,790
2,404
2,412
2,699
3,027 10,542 10,397
1
8
2024 Glencore Annual Report
265
Strategic Report
Corporate Governance
Additional Information
Production by quarter – Q4 2023 to Q4 2024 continued
Metals and minerals
Production from own sources – Nickel assets1
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
2024
2023
Change
2024 vs
2023
%
Change
Q4 24 vs
Q4 23
%
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
Nickel metal
kt
13.7
10.6
11.7
8.8
11.8
42.9
39.1
10
(14)
Nickel in concentrates
kt
0.1
–
–
–
0.1
0.1
0.2
(50)
–
Copper metal
kt
2.8
2.4
2.7
2.3
2.8
10.2
8.9
15
–
Copper in concentrates
kt
1.4
0.8
0.9
0.5
1.2
3.4
4.8
(29)
(14)
Cobalt metal
kt
0.2
0.2
0.1
0.1
0.2
0.6
0.4
50
–
Gold
koz
3
3
2
3
2
10
11
(9)
(33)
Silver
koz
66
56
46
34
39
175
223
(22)
(41)
Platinum
koz
7
6
8
6
5
25
24
4
(29)
Palladium
koz
18
15
18
17
20
70
65
8
11
Rhodium
koz
1
1
–
1
1
3
3
–
–
Integrated Nickel Operations – total production including third party feed
Nickel metal
kt
24.0
23.8
23.4
25.8
25.4
98.4
95.0
4
6
Nickel in concentrates
kt
0.1
–
0.1
–
–
0.1
0.2
(50)
(100)
Copper metal
kt
5.1
4.3
4.7
4.3
5.0
18.3
20.1
(9)
(2)
Copper in concentrates
kt
1.9
0.8
2.2
0.6
1.7
5.3
6.2
(15)
(11)
Cobalt metal
kt
1.0
0.8
0.8
0.7
0.7
3.0
3.5
(14)
(30)
Gold
koz
8
6
7
6
5
24
27
(11)
(38)
Silver
koz
122
108
96
73
83
360
407
(12)
(32)
Platinum
koz
15
14
18
13
10
55
51
8
(33)
Palladium
koz
58
51
62
50
47
210
201
4
(19)
Rhodium
koz
–
1
1
1
–
3
3
–
–
Murrin Murrin
Total Nickel metal
kt
8.0
8.2
8.7
9.3
8.1
34.3
31.1
10
1
Total Cobalt metal
kt
0.6
0.5
0.7
0.7
0.6
2.5
2.1
19
–
Murrin Murrin – total production including third-party feed
Total Nickel metal
kt
9.9
8.9
9.7
10.4
8.7
37.7
36.4
4
(12)
Total Cobalt metal
kt
0.7
0.7
0.6
0.9
0.6
2.8
2.4
17
(14)
Koniambo
Nickel in ferronickel
kt
7.4
5.0
–
–
–
5.0
27.2
(82)
(100)
Total Nickel department
Nickel
kt
29.2
23.8
20.4
18.1
20.0
82.3
97.6
(16)
(32)
Copper
kt
4.2
3.2
3.6
2.8
4.0
13.6
13.7
(1)
(5)
Cobalt
kt
0.8
0.7
0.8
0.8
0.8
3.1
2.5
24
–
Gold
koz
3
3
2
3
2
10
11
(9)
(33)
Silver
koz
66
56
46
34
39
175
223
(22)
(41)
Platinum
koz
7
6
8
6
5
25
24
4
(29)
Palladium
koz
18
15
18
17
20
70
65
8
11
Rhodium
koz
1
1
–
1
1
3
3
–
–
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Additional Information
Production by quarter – Q4 2023 to Q4 2024 continued
Metals and minerals
Production from own sources – Ferroalloys assets1
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
2024
2023
Change
2024 vs
2023
%
Change
Q4 24 vs
Q4 23
%
Ferrochrome6
kt
289
297
302
295
272
1,166
1,162
–
(6)
Vanadium pentoxide
mlb
4.6
5.3
2.7
4.9
5.4
18.3
19.5
(6)
17
Total production – Custom metallurgical assets1
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
2024
2023
Change
2024 vs
2023
%
Change
Q4 24 vs
Q4 23
%
Copper (Altonorte, Pasar, Horne, CCR)
Copper metal
kt
130.2
129.5
115.7
92.8
125.6
463.6
507.3
(9)
(4)
Copper anode
kt
95.2
106.5
109.4
97.2
127.7
440.8
443.3
(1)
34
Zinc (Portovesme, Asturiana, Nordenham, Northfleet, CEZ Refinery)
Zinc metal
kt
206.8
210.1
230.0
229.7
204.7
874.5
752.6
16
(1)
Lead metal
kt
60.0
48.0
49.2
50.6
50.1
197.9
244.6
(19)
(17)
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group’s attributable share of
production is included.
2 Cobalt contained in concentrates and hydroxides.
3 The Group’s pro-rata share of Collahuasi production (44%).
4 The Group’s pro-rata share of Antamina production (33.75%).
5 Copper metal includes copper contained in copper concentrates and blister.
6 The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
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Additional Information
Production by quarter – Q4 2023 to Q4 2024 continued
Energy and steelmaking coal
Production from own sources – Coal assets1
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
2024
2023
Change
2024 vs
2023
%
Change
Q4 24 vs
Q4 23
%
Canadian steelmaking coal2
mt
–
–
–
5.7
6.8
12.5
–
n.m.
n.m.
Australian steelmaking coal
mt
2.3
1.4
2.0
2.0
2.0
7.4
7.5
(1)
(13)
Steelmaking coal
mt
2.3
1.4
2.0
7.7
8.8
19.9
7.5
165
283
Australian semi-soft coal
mt
1.3
0.8
0.6
0.9
1.0
3.3
4.1
(20)
(23)
Australian thermal coal (export)
mt
14.2
13.1
11.1
14.7
15.2
54.1
55.2
(2)
7
Australian thermal coal (domestic)
mt
1.8
2.0
1.7
1.4
1.4
6.5
7.0
(7)
(22)
South African thermal coal (export)
mt
3.3
2.8
2.5
2.9
3.5
11.7
13.7
(15)
6
South African thermal coal (domestic)
mt
1.2
1.2
1.4
1.2
1.1
4.9
4.1
20
(8)
Cerrejón thermal coal
mt
5.6
5.3
4.7
4.8
4.3
19.1
22.0
(13)
(23)
Energy coal
mt
27.4
25.2
22.0
25.9
26.5
99.6
106.1
(6)
(3)
Total Coal department
mt
29.7
26.6
24.0
33.6
35.3
119.5
113.6
5
19
Oil assets (non-operated)
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
2024
2023
Change
2024 vs
2023
%
Change
Q4 24 vs
Q4 23
%
Glencore entitlement interest basis
Equatorial Guinea
kboe
1,109
1,072
914
891
895
3,772
4,135
(9)
(19)
Cameroon
kbbl
120
81
87
8
25
201
608
(67)
(79)
Total Oil department
kboe
1,229
1,153
1,001
899
920
3,973
4,743
(16)
(25)
Gross basis
Equatorial Guinea
kboe
6,399
5,923
4,911
5,104
5,329
21,267 23,347
(9)
(17)
Cameroon
kbbl
302
266
241
146
162
815
1,562
(48)
(46)
Total Oil department
kboe
6,701
6,189
5,152
5,250
5,491 22,082 24,909
(11)
(18)
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group’s attributable share of
production is included.
2 On an annualised basis, <2% of EVR’s production is non-steelmaking quality coal, ordinarily sold into energy coal markets. Given the de minimis size, these
volumes are not disaggregated from Canadian steelmaking coal volumes.
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Additional Information
Shareholder Information
Share registrars
Jersey (for London listing)
Computershare Investor Services
(Jersey) Limited
13 Castle Street
St Helier, Jersey
JE1 1ES
Channel Islands
Tel: +44 (0) 370 707 4040
Johannesburg
Computershare Investor Services (Pty)
Ltd
Rosebank Towers,
15 Biermann Avenue,
Rosebank, 2196,
South Africa
Tel: +27 (0) 11 370 5000
Glencore plc is registered in Jersey,
is headquartered in Switzerland
and its Group has operations around
the world.
Headquarters
Baarermattstrasse 3
6340 Baar
Switzerland
Registered office
13 Castle Street
St Helier, Jersey
JE1 1ES
Channel Islands
The Company has a primary listing
on the London Stock Exchange (LSE)
and a secondary listing on the
Johannesburg Stock Exchange (JSE).
Our website contains further
information on our business and for
shareholders including as to share
transfer and distributions: glencore.
com/investors/shareholder-centre
Enquiries
Corporate Services
Glencore plc
Baarermattstrasse 3
6340 Baar
Switzerland
Tel: +41 41 709 2000
Fax: +41 41 709 3000
Email: info@glencore.com
Strategic Report
Corporate Governance
Additional Information
2024 Glencore Annual Report
269
Important notice
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe
for any securities. This document does not purport to contain all of the information you may wish to consider.
Cautionary statement regarding forward-looking information
Certain descriptions in this document are oriented towards future events
and therefore contains statements that are, or may be deemed to be,
“forward-looking statements” which are prospective in nature. Such
statements may include, without limitation, statements in respect of
trends in commodity prices and currency exchange rates; demand for
commodities; reserves and resources and production forecasts;
expectations, plans, strategies and objectives of management;
expectations regarding financial performance, results of operations and
cash flows, climate scenarios; sustainability (including, without limitation,
environmental, social and governance) performance-related goals,
ambitions, targets, intentions and aspirations; approval of certain projects
and consummation and impacts of certain transactions (including,
without limitation, acquisitions and disposals); closures or divestments of
certain assets, operations or facilities (including, without limitation,
associated costs); capital costs and scheduling; operating costs and supply
of materials and skilled employees; financings; anticipated productive lives
of projects, mines and facilities; provisions and contingent liabilities; and
tax, legal and regulatory developments.
These forward-looking statements may be identified by the use of
forward-looking terminology, or the negative thereof including, without
limitation, “outlook”, “guidance”, “trend”, “plans”, “expects”, “continues”,
“assumes”, “is subject to”, “budget”, “scheduled”, “estimates”, “aims”,
“forecasts”, “risks”, “intends”, “positioned”, “predicts”, “projects”,
“anticipates”, “believes”, or variations of such words or comparable
terminology and phrases or statements that certain actions, events or
results “may”, “could”, “should”, “shall”, “would”, “might” or “will” be taken,
occur or be achieved. The information in this document provides an
insight into how we currently intend to direct the management of our
businesses and assets and to deploy our capital to help us implement our
strategy. The matters disclosed in this document are a ‘point in time’
disclosure only. Forward-looking statements are not based on historical
facts, but rather on current predictions, expectations, beliefs, opinions,
plans, objectives, goals, intentions and projections about future events,
results of operations, prospects, financial conditions and discussions
of strategy, and reflect judgments, assumptions, estimates and other
information available as at the date of this document or the date of the
corresponding planning or scenario analysis process.
By their nature, forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause actual results,
performance or achievements to differ materially from any future events,
results, performance, achievements or other outcomes expressed or
implied by such forward-looking statements. Important factors that could
impact these uncertainties include, without limitation, those disclosed in
the risk management section of our latest Annual Report and/or Half-Year
Report, which can each be found on our website. These risks and
uncertainties may materially affect the timing and feasibility of particular
developments. Other factors which may impact risks and uncertainties
include, without limitation: the ability to produce and transport products
profitably; demand for our products and commodity prices; development,
efficacy and adoption of new or competing technologies; changing or
divergent preferences and expectations of our stakeholders; events giving
rise to adverse reputational impacts; changes to the assumptions
regarding the recoverable value of our tangible and intangible assets;
inadequate estimates of resources and reserves; changes in
environmental scenarios and related regulations, including, without
limitation, transition risks and the evolution and development of the global
transition to a low carbon economy; recovery rates and other operational
capabilities; timing, quantum and nature of certain acquisitions and
divestments; delays, overruns or other unexpected developments in
connection with significant projects; the ability to successfully manage the
planning and execution of closure, reclamation and rehabilitation of
industrial sites; health, safety, environmental or social performance
incidents; labor shortages or workforce disruptions; natural catastrophes
or adverse geological conditions, including, without limitation, the physical
risks associated with climate change; effects of global pandemics and
outbreaks of infectious disease; the outcome of litigation or enforcement
or regulatory proceedings; the effect of foreign currency exchange rates
on market prices and operating costs; actions by governmental
authorities, such as changes in taxation or laws or regulations or changes
in the decarbonisation policies and plans of other countries; breaches of
Glencore’s policy framework, applicable laws or regulations; the availability
of sufficient credit and management of liquidity and counterparty risks;
changes in economic and financial market conditions generally or in
various countries or regions; political or geopolitical uncertainty; and wars,
political or civil unrest, acts of terrorism, cyber attacks or sabotage.
Readers, including, without limitation, investors and prospective investors,
should review and consider these risks and uncertainties (as well as the
other risks identified in this document) when considering the information
contained in this document. Readers should also note that the high
degree of uncertainty around the nature, timing and magnitude of
climate-related risks, and the uncertainty as to how the energy transition
will evolve, makes it particularly difficult to determine all potential risks and
opportunities and disclose these and any potential impacts with precision.
Neither Glencore nor any of its affiliates, associates, employees, directors,
officers or advisers, provides any representation, warranty, assurance or
guarantee as to the accuracy, completeness or correctness, likelihood of
achievement or reasonableness of any forward-looking information
contained in this document or that the events, results, performance,
achievements or other outcomes expressed or implied in any forward-
looking statements in this document will actually occur. Glencore cautions
readers against reliance on any forward-looking statements contained in
this document, particularly in light of the long-term time horizon which
this document discusses in certain instances and the inherent uncertainty
in possible policy, market and technological developments in the future.
No statement in this document is intended as any kind of forecast
(including, without limitation, a profit forecast or a profit estimate),
guarantee or prediction of future events or performance and past
performance cannot be relied on as a guide to future performance.
Except as required by applicable rules or laws or regulations, Glencore is
not under any obligation, and Glencore and its affiliates expressly disclaim
any intention, obligation or undertaking, to update or revise any forward-
looking statements, whether as a result of new information, future events
or otherwise. This document shall not, under any circumstances, create
any implication that there has been no change in the business or affairs of
Glencore since the date of this document or that the information
contained herein is correct as at any time subsequent to its date.
Cautionary statement regarding climate strategy
Glencore operates in a dynamic and uncertain market and external
environment. Plans and strategies can and must adapt in response to
dynamic market conditions, changing preferences of our stakeholders,
joint venture decisions, changing weather and climate patterns, new
opportunities that might arise or other changing circumstances. Investors
should assume that our climate strategy will evolve and be updated as
time passes. Additionally, a number of aspects of our strategy involve
developments or workstreams that are complex and may be delayed,
more costly than anticipated or unsuccessful for many reasons, including,
without limitation, reasons that are outside of Glencore’s control. Our
strategy will also necessarily be impacted by changes in our business.
Due to the inherent uncertainty and limitations in measuring greenhouse
gas (GHG) emissions and operational energy consumption under the
calculation methodologies used in the preparation of such data, all CO2e
emissions and operational energy consumption data or volume references
(including, without limitation, ratios and/or percentages) in this document
are estimates. GHG emissions calculation and reporting methodologies
may change or be progressively refined over time resulting in the need to
restate previously reported data. There may also be differences in the
manner that third parties calculate or report such data compared to
Glencore, which means that third-party data may not be comparable to
Glencore’s data. For information on how we calculate our emissions and
operational energy consumption data, see our latest Basis of Reporting,
which is available on our website.
Sources
Certain statistical and other information included in this document is
sourced from publicly available third-party sources. This information has
not been independently verified and presents the view of those third
parties, and may not necessarily correspond to the views held by Glencore
and Glencore expressly disclaims any responsibility for, or liability in
respect of, and makes no representation or guarantee in relation to, such
information (including, without limitation, as to its accuracy, completeness
or whether it is current). Glencore cautions readers against reliance on any
of the industry, market or other third-party data or information contained
in this document.
Information preparation
In preparing this document, Glencore has made certain estimates and
assumptions that may affect the information presented. Certain
information is derived from management accounts, is unaudited and
based on information Glencore has available to it at the time. Figures
throughout this document are subject to rounding adjustments. The
information presented is subject to change at any time without notice and
we do not intend to update this information except as required.
This document contains alternative performance measures which reflect
how Glencore’s management assesses the performance of the Group,
including results that exclude certain items included in our reported
results. These alternative performance measures should be considered in
addition to, and not as a substitute for, or as superior to, measures of
financial performance or position reported in accordance with IFRS. Such
measures may not be uniformly defined by all companies, including those
in Glencore’s industry. Accordingly, the alternative performance measures
presented may not be comparable with similarly titled measures disclosed
by other companies. Further information can be found in our reporting
suite available at glencore.com/publications.
Subject to any terms implied by law which cannot be excluded, Glencore
accepts no responsibility for any loss, damage, cost or expense (whether
direct or indirect) incurred by any person as a result of any error, omission
or misrepresentation in information in this document.
Other information
The companies in which Glencore plc directly and indirectly has an interest
are separate and distinct legal entities. In this document, “Glencore”,
“Glencore group” and “Group” are used for convenience only where
references are made to Glencore plc and its subsidiaries in general. These
collective expressions are used for ease of reference only and do not imply
any other relationship between the companies. Likewise, the words “we”,
“us” and “our” are also used to refer collectively to members of the Group or
to those who work for them. These expressions are also used where no
useful purpose is served by identifying the particular company or companies.
Glencore plc
Baarermattstrasse 3
6340 Baar
Switzerland
info@glencore.com