Sustainability Report

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Sustainability Report 2010

Sustainability Report 2010 | 1

Cover picture captions:
Prodeco employees, Colombia
Kazzinc employee, Kazakhstan
Minara employee, Australia

Double-hulled oil tanker Alpine Hallie,
part of Glencore’s owned fleet

1 | Company statement


7 | Communities


7.1 | Open dialogue
7.2 | Community development
7.3 | Resettlements
7.4 | Indigenous people and
artisanal mining
7.5 | Economic development
7.6 | Lobbying


8 | Environment


1.1 | Introducing Glencore’s sustainability framework


2 | Glencore: an overview


2.1 | Business structure
2.2 | Ownership
2.3 | Glencore board structure
2.4 | Business segment:
metals & minerals
2.5 | Business segment:
energy products
2.6 | Business segment:
agricultural products


3 | About this report


3.1 | Boundaries and scope
3.2 | Data


9 | Compliance


4 | Materiality


4.1 | Organisation-wide issues
4.2 | Marketing activities
4.3 | Industrial activities


9.1 | Glencore corporate compliance
9.2 | Reporting misconduct


10 | Our customers


5 | Glencore Corporate Practice


10.1 | Quality control
10.2 | Product safety


11 | Glossary


12 | GRI index


5.1 | GCP principles
5.2 | GCP requirements
5.3 | Implementation
5.4 | GCP boundaries
5.5 | GCP objectives



6 | Our people


6.1 | Health & Safety

6.1.1 | Occupational safety

6.1.2 | Training and development

6.1.3 | Health
6.2 | Human resources

6.2.1 | Turnover

6.2.2 | Diversity

6.2.3 | Training and development

6.2.4 | Hiring local workers
6.3 | Human rights


8.1 | Land management
8.2 | Water
8.3 | Energy
8.4 | Air emissions
8.5 | Greenhouse gas emissions
8.6 | Waste

13 | Contact




Sustainability Report 2010 | 5

Entrance to Glencore HQ, Baar, Switzerland


Sustainability Report 2010 | 7

1 | Company statement

1 |
Company statement
Our first sustainability report presents our belief that Glencore has achieved a credible nonfinancial record during 2010, building on the work we have been putting into this area over recent
This report demonstrates that we are serious about our commitments to our people, communities, the environment, our customers and our investors. It summarises where we currently stand in
relation to the achievements and challenges ahead of us. We will use it to guide us as we carry out
the work of continuous improvement and management that are as essential to our non-financial
performance as to other areas of our business.
We encourage our stakeholders to read this report; we look forward to this and subsequent
reports being an important platform for stakeholder engagement.
Glencore in 2010
This past year saw the rollout of Glencore Corporate Practice (GCP), our corporate sustainability
framework. It has been developed and implemented as a set of fundamental commitments,
­internal guidance documents and new group-wide non-financial reporting requirements. It is de­signed to align with internationally agreed standards, formalising and developing sustainability
approaches that we have been working on for many years.
GCP helps us to achieve responsible, sustainable and successful business conduct and to improve our performance every day. It is adhered to by all, from the highest level of Glencore’s
management to individual employees in our operations around the world. Its requirements are
mandatory and help us meet both our own objectives and the public’s expectations.
Key issues
As well as addressing our immediate operational challenges, we consider the global trends that
may influence our business.
As with any industrial operation, our top priority is the safety and wellbeing of all our people. The
deeply regrettable fact that we suffered 18 fatalities across our operations in 2010 reminds us
unambiguously of the work that lies ahead. That is why we are committed to achieving zero harm
across the group and are continually feeding back on and improving our policies and procedures
to achieve this.
We also place great importance on the economic benefits we bring to the communities surrounding our operations. We provide vital employment and income to some areas where economic opportunity can be scarce. We also contribute to local development, in close consultation
with community leaders and stakeholders. We report on our community development initiatives
and programmes extensively in this report.
Another daily priority is to ensure that we protect the environment while conducting large-scale
mining and farming operations and transporting commodities around the world. This requires
continuous monitoring and incremental improvement; the details of our approach are in this

8 | Sustainability Report 2010

1 | Company statement

The issue of climate change is particularly relevant to Glencore as a company with a strong energy division active in liquid and solid fossil fuels. The world is currently seeking the optimum
combination of energy sources that can mitigate climate change while ensuring a secure and
affordable energy supply. While we anticipate new technologies making fossil fuel usage more
efficient and reducing emissions, we also predict increasing use of renewable energy sources.
One of the ways in which Glencore is preparing for these changes is by increasing our biofuel
production and trading activities. We are also examining the extent to which our shipping activities contribute to greenhouse gas emissions, in light of a mooted emissions trading scheme for
the maritime industry.
Future sustainability reporting
This report contains material information on our performance and achievements during 2010 and
the challenges ahead of us. It gives us confidence that our non-financial management and commercial competence together will allow us to continue to take advantage of long-term growth
opportunities throughout our industry and to achieve further sustainable development.
We anticipate that our rigorous corporate governance and management approach will further
raise our sustainability performance over the coming years. For this reason, we have committed
to developing a GCP programme of group-wide targets and objectives during 2011. This will
be based on the commitments we have made in the existing GCP framework and will allow us
to mark our progress towards achieving them. We will detail these targets and objectives in our
2011 sustainability report.
None of this can be achieved without having a great team on board. No corporate programme
can succeed without the talent, professionalism, dedication and motivation of every employee.
Our people are ultimately vital to our success and I want to thank all of them for their contribution.

Ivan Glasenberg

Sustainability Report 2010 | 9

1 | Company statement

1.1 Introducing Glencore’s sustainability framework
We take our non-financial responsibilities seriously and have taken great care in determining a
unified, group-wide framework to ensure consistent long-term sustainability performance.
A new corporate approach
Historically we managed all operational issues locally, including those related to sustainability.
This approach worked well in the past, and resulted in many examples of excellent performance,
some of which we detail in this report. However, over the past few years we have become increasingly convinced that there are opportunities to further improve our performance by adopting a
more co-ordinated approach. This would allow our teams of experts at each operation to be supported by dedicated corporate-level management and internal audit teams, and by each other.
We believe that this conclusion is substantiated by our stakeholders’ increasing interest in our
sustainability management and performance.
Our sustainability framework and programme
For this reason, we created the Glencore Corporate Practice (known within Glencore as GCP)
framework at the end of 2009, rolling it out in 2010. We began with an initial group-wide assess­
ment that focused on our industrial assets. This was followed by the authoring and board approval of our GCP principles, which are founded on seven universal commitments (detailed in
Chapter 5: Glencore Corporate Practice).
We have made these principles available to our people and to the public. We have also defined
and distributed the minimum requirements for GCP compliance in an internal guidance document. Our industrial operations are currently using the principles and guidance to conduct selfassessments, and in 2011 they will report on how they are currently performing. We will use this
information to further shape and implement GCP throughout Glencore.
Our initial sustainability report
The information and data in this report were compiled using the GCP non-financial reporting
system introduced in 2010. It is in line with the Global Reporting Initiative sustainability reporting
guidelines. In most cases we were able to compile data going back to the year 2008, giving us the
detail to track our current sustainability performance.
We considered different stakeholder engagement approaches while developing GCP. We eventually determined that we had sufficient feedback recorded from recent years to be confident
that this report addresses all material issues. We believe that from now on it will provide another
important platform from which to engage with our stakeholders.
Key results for 2010
We assembled a great deal of encouraging data and information while compiling this sustainability report. However, we also found many challenges that must be addressed now and in the
Health & Safety
It is with great sadness and regret that we report 18 fatalities among the employees and contractors working at our operations. The loss of any life is a tragedy. We are committed to eliminating
fatalities as well as any other injuries. Our ultimate aim is to achieve a zero-harm operation.
In 2010 we experienced no serious accidents (classified as “class A: major” within our environmental incident reporting system). We believe that this reflects the robustness of our procedures
and policies, particularly in light of our extensive and extremely complex activities. We are responsible for hundreds of vessels carrying our products. We store and trans-ship thousands of
tons of goods from warehouses and tank farms to vessels, barges, trucks and rail cars. We also
operate many sizeable industrial operations.

10 | Sustainability Report 2010

1 | Company statement

Greenhouse gases
Compiling this report required us to calculate our global greenhouse gas emissions for the first
time. The details are laid out in Chapter 8, but in summary we found it noteworthy that our industrial activities had a smaller carbon footprint than our shipping activities over the past year.
This includes our own vessels and our time charter fleet, but does not include voyage chartering,
which is how we generally ship our metal and coal products.
A considerable proportion of the energy we use is generated from renewable sources, as detailed in Chapter 8. We are also involved in producing renewable energy sources for sale; in 2010
our agricultural products division worked to meet the requirements of the European Renewable
Energy Directive, which concerns the maintenance of a sustainable supply chain for biofuel production. Our agricultural marketing offices and operations will comply with the directive by qualifying for the International Sustainability and Carbon Certification (ISCC) scheme.
Air emissions
2010 was a very important year for improving emission levels at our Kazakhstan operation, as a
complex technical upgrade of various smelters neared completion.
As circumstances can vary so greatly between different communities, the most effective way to
represent our approach is by detailing a range of specific examples. These show how our involvement contributes to the wellbeing of local communities. They outline the day-to-day challenges
of operating in regions with often exceptionally demanding public health, education, infrastructure and logistics issues.
Looking forward
As a rapidly growing organisation, Glencore has had to adapt and change, and we are well aware
of the challenges ahead of us. GCP is our guide to further improving our non-financial performance and meeting our sustainability commitments.
Our next important milestone will be to develop a full GCP programme with objectives and targets that complement the GCP commitments. We intend to present this work in our next sustainability report, along with Glencore’s first achievements against these targets.
We welcome all feedback on this report. This can be sent to [email protected] or by
directly contacting the employees named at the end of this report.

Steven Kalmin

Michael Fahrbach
Corporate Sustainability

Sustainability Report 2010 | 11

2 | Glencore: an overview

2 |
Glencore: an overview
Glencore International plc (“Glencore”) is one of the world’s leading integrated producers and
marketers of commodities. We deal in metals & minerals, energy products and agricultural products. We also produce, refine, process, store and transport these products.
Glencore markets and distributes physical commodities, sourced from third-party producers and
our own production base, to industrial consumers around the world. We have developed great
expertise in the commodities we market and have cultivated long-term relationships with over
7,200 suppliers and customers across many diverse industries (including the automotive, steel,
power generation, oil and food processing industries) and regions.
Our marketing activities are supported by investments in industrial assets that relate to our core
commodities. We have an established record of successful strategic investments in industrial
­assets that have become an important component of our physical marketing activities.
We believe that we are:
‚‚ The largest physical supplier of third-party sourced commodities worldwide for most of the
metals & minerals we market
‚‚ One of the largest non-integrated physical suppliers of crude oil and oil products
‚‚ The largest participant worldwide in the supply of seaborne steam coal (including the
volumes under a number of exclusive advisory and agency agreements with entities such as
‚‚ Among the world’s leading suppliers of sugar
‚‚ One of the leading exporters of grain from Europe, the Commonwealth of Independent
States (CIS) and Australia

2.1 Business structure
We divide our business activities into what we describe as “marketing” and “industrial” activities.
Marketing, which each business segment undertakes for itself, covers our trading and sales activities, as well as the infrastructure and resources needed to store and transport our products.
Industrial activities include the production and processing of our commodities.
Glencore’s main offices are located in Baar (Switzerland), Stamford (Connecticut, USA), London,
Rotterdam, Beijing, Moscow and Singapore. These and our many smaller offices provide significant
worldwide sourcing and distribution capabilities.
Our marketing activities employ over 2,700 people worldwide (directly and indirectly) in around
50 offices across 40 countries. Our industrial activities directly and indirectly employ over 54,800
people in 30 countries.
Glencore’s operations are divided into three business segments:
‚‚ Metals & minerals
‚‚ Energy products
‚‚ Agricultural products

12 | Sustainability Report 2010

2 | Glencore: an overview

Metals & minerals

Energy products

Agricultural products







Ferroalloys/nickel/cobalt/iron ore







Glencore’s business segments are responsible for managing the marketing, sourcing, hedging,
logistics and industrial investment activities for the commodities they deal in.
Each segment reports to management at the corporate level, and is supported by our central
finance, legal, risk, human resources, sustainability and compliance departments.


Founded in 1974 as Marc Rich + Co AG, our
operations initially focused on the physical
marketing of ferrous and non-ferrous metals,
minerals and crude oil. Shortly thereafter our
business expanded into oil products. In 1981,
we acquired a Dutch grain trading company,
then later added coal to our commodities list.
In 1987, we expanded to become a diversified
natural resources group through key acquisi-

tions in mining, smelting, refining and processing. Our first equity investment in an
industrial asset was 27% of the Mt. Holly aluminium smelter in the United States. Our first
controlling interest in an asset was purchased
in 1988, with a 66.7% interest in a Peruvian zinc
and lead mine. In 1994, our founder sold his
stake by way of a management buyout and
the company was renamed Glencore International AG.

2.2 | Ownership
Since our initial public offering (IPO) in May 2011, Glencore International plc has been a public
company with a primary listing on the London Stock Exchange and a secondary listing on the
Hong Kong stock exchange.
During the period covered by this report, Glencore was a private company, wholly owned by
its employees.

Sustainability Report 2010 | 13

2 | Glencore: an overview

2.3 | Glencore board structure
Before the IPO in 2011, Glencore International AG had a governance structure that provided
oversight in compliance with regulations and in line with best practice for a Swiss-based, privately
held company.
Glencore’s highest governance body is the Board of Directors. Our board is headed by an independent Non-Executive Chairman and consists of our Chief Executive Officer, Chief Financial
Officer and five non-executive directors. We regard all of our non-executive directors as independent (as defined within the UK Financial Reporting Council’s Corporate Governance Code
(the Code)), and free from any business or relationship that could materially affect their independent judgement.
Our directors have established an audit committee, a remuneration committee, a nominations
committee, a Health & Safety, Environment and Communities (HSEC) committee. The members of
these committees have the experience and sector-specific expertise to provide robust leader­ship
and oversee the risks to which Glencore is exposed, taking appropriate actions when needed.

Board of Directors
Risk management

Independent Non-Executive Chairman
Executive directors

Independent directors





Internal audit

Legal &

Commodity department heads
Metals & minerals


Energy products




accounting & tax

Human resources

NB: All board committees are chaired by independent directors

The Audit Committee monitors the integrity of Glencore’s financial statements. It also oversees
our external auditing processes, and considers the requirements of all relevant laws and regulations, the Code and the London Stock Exchange listing rules. The committee also reviews the
effectiveness of Glencore’s internal controls and risk management systems.
The Remuneration Committee makes policy recommendations on management remuneration. It
determines the Chairman’s remuneration and specific packages for the executive directors and
management. It also ensures compliance with the Code in this respect. Remuneration is subject
to challenging performance criteria reflecting Glencore’s objectives and commitments.
The Nominations Committee makes recommendations on the composition of the board and its
committees and on the retirements and appointments of additional and replacement directors.
It ensures compliance with the Code and that the board maintains the appropriate balance of
skills and experience to enable members to discharge their duties and responsibilities effectively.

14 | Sustainability Report 2010

2 | Glencore: an overview

The HSEC Committee is chaired by an independent board member, with other members including Glencore’s CEO and Corporate Head of Sustainability. It formulates and recommends policy
on these issues as they affect Glencore operations. In addition, our compliance and business
ethics committee (see section 9.2: Compliance: reporting misconduct) and our group risk management and internal audit teams play key roles in managing GCP activities.
Glencore’s Articles of Association govern the rights of shareholders to require the circulation of
resolutions, statements or other matters for annual general meetings (AGMs). As Glencore will
hold its first AGM in 2012, the opportunity to use these mechanisms to raise such topics was not
available during the period covered by this report.
Glencore’s Articles of Association also require all our directors to disclose whether they, or any
person connected to them, have an interest in any company of the Glencore group.

2.4 | Business segment: metals & minerals
This business segment has three commodity departments, which focus on:
‚‚ Zinc, copper and lead
‚‚ Alumina and aluminium
‚‚ Ferroalloys, nickel, cobalt and iron ore
This segment’s marketing activities are supported by Glencore’s ownership interests in controlled
and non-controlled industrial assets, which include mining, smelting, refining and warehousing
operations. Sales are co-ordinated primarily through our Baar office. The senior managers of each
commodity department are an integral part of Glencore’s senior management team.


A concentrate is a natural
resources commodity,
consisting of extracted and
processed mineral ores.
Concentrates are the first
stage in the life-cycle of
refined minerals and metals.

2.4.1 | Zinc, copper and lead
This department is an integrated business, managing production and global trading of refined
metals and concentrates. In addition to its primary commodities, the department sells tin, silver
and gold (typically mined in conjunction with zinc, copper and lead ores), as well as sulphuric acid,
a by-product of the smelting process. It sells refined metals produced from concentrates processed by Glencore subsidiaries and by others (through tolling arrangements), as well as metals
bought from third parties.
This department has a global presence, sourcing commodities from raw material producers in regions that include Canada, Australia, Africa and South America for consumers in Western Europe,
China, South-East Asia, the US and Japan.
2.4.2 | Alumina and aluminium
This department undertakes the market placement and processing of bauxite, alumina, primary
aluminium and aluminium alloys. Through the sourcing and physical exchange of alumina (which is,
along with other applications, the precursor for aluminium production) and aluminium of different
origins, it has been able to create a global market position.
The department’s supplier and customer bases are well diversified, underlining Glencore’s reputation for strong relationships in both markets. Its activities help optimise the production systems
of a number of integrated aluminium and alumina producers, including assets owned by Glencore
subsidiaries. Its breadth of experience and role in production enable it to provide market-leading
expertise in the flow of these commodities.

Sustainability Report 2010 | 15

2 | Glencore: an overview

2.4.3 | Ferroalloys, nickel, cobalt and iron ore
This department physically markets bulk ferroalloys (including ferrochrome and chrome ore, ferromanganese, silicon manganese, manganese ore and ferrosilicon), noble ferroalloys (vanadium
and molybdenum products), nickel, cobalt (including nickel and cobalt concentrates and ferro­
nickel), steel and iron ore.
It has a global presence, sourcing and supplying products used in the production of stainless,
carbon and speciality steels, as well as super alloys, battery materials and pigments/driers.

2.5 | Business segment: energy products
This business segment has two commodity departments, which focus on:
‚‚ Oil
‚‚ Coal and coke
This segment’s primary marketing activities focus on crude oil and oil products (such as fuel oil,
heating oil, gasoline, naphtha, jet fuel, diesel and liquid petroleum gas), coal and coke.
Oil sales are primarily co-ordinated through our offices in London, Stamford and Singapore, and
coal and coke via Baar, with key support from other locations that include Beijing and Moscow.
The segment’s activities are supported by Glencore’s ownership interests in controlled and
non-controlled coal mining and oil production operations, as well as investments in strategic
handling, storage and freight equipment and facilities.
2.5.1 | Oil
This department markets crude oil, refined products, natural gas and freight, supported by access to a wide range of logistics, storage and industrial assets. Crude oil is its most significant
product by volume. Primary oil products are mid-distillates, gasoline, residuals, naphtha, natural
gas and liquid petroleum gas. Glencore is one of the largest non-integrated crude oil and oil
product suppliers, supplying a volume equivalent to around 3% of the world’s consumption
of oil.
Supplies are partly sourced through long-term contracts from key producing countries, as well
as through traditional short and medium-term purchase agreements. Customers include major
oil companies, government purchasing agencies and industrial end users.
2.5.2 | Coal and coke
This department produces and trades coal products. It is a significant producer of coal in South
Africa and Colombia, as well as a market leader in coal supply for global industrial consumption.
This department’s marketing activities are supported by industrial asset stakes, which provide
both access to supply and market information.
Steam coal sources are generally via purchase contracts with the major coal and coke producers
in Australia, South America, Indonesia, South Africa and Russia, and agency agreements with
major mining companies. There is also a market advisory agreement with Xstrata for export coal
sales. The department supplies the world’s utility companies, steel mills, cement producers and
chemical plants.

16 | Sustainability Report 2010

2 | Glencore: an overview

2.6 | Business segment: agricultural products
This business segment originates, handles and markets grain (including wheat, maize and barley),
oils/oilseeds (including most edible oils, biodiesel and their source seeds or beans), cotton and
The segment’s marketing activities are supported by investments in controlled and non-controlled storage, handling, processing and port facilities in strategic locations. It is a leading exporter of grain from the European Union, Russia, Ukraine, Kazakhstan, Argentina and Australia.
Global markets, particularly on the supply side, are highly fragmented and in many countries it
procures grain directly from farmers. Primary grain export markets are North Africa, the Middle
East and Asia, with trading co-ordinated in Rotterdam. Biodiesel production is located in Germany and the Netherlands.
This segment is also involved in both raw sugar and white sugar sourcing, refining and processing. The sugar is sourced mainly from Brazil, Thailand and India, and sold in Russia, Indonesia,
West Africa and the Middle East, co-ordinated through Glencore’s London office.

Sustainability Report 2010 | 17

2 | Glencore: an overview

2 | Glencore: an overview

Key global logistics facilities

Commodity production,
marketing and trading
A marketer with integrated production and
processing capabilities




Port facilities and storage

3rd party

Pacorini warehousing assets




Delivery to


Chemoil infrastructure assets
Agriculture storage assets
Other warehouses

Glencore not only produces commodities but offers customers and producers a range of services that include
shipping, logistics, transportation, storage, financing, risk management and marketing. Physical commodity
marketing is a volume-driven business requiring expert risk management, substantial financial resources,
­market knowledge and both product and logistical expertise.
Physical sourcing and marketing requires expert product handling and shipment, including appropriate storage
activities. Typically, our staff handling the physical movement of goods account for a significant proportion of
the headcount for each of our business segments. They work closely with our dedicated shipping and chartering
teams, who actively trade freight to gain market knowledge and volume benefits.

Glencore oil shipping fleet

Storage capacity


freight capabilities

Metals & minerals
iron ore

1.5 million tons
79,000 tons

7,000 tons
2.1 million m3

Coal (excl. Prodeco)
Agricultural products

9.0 million m3
9.5 million tons
4.8 million tons


Agricultural Products


30 vessels under short-term and 60 under
medium-term time charter

4 capesize and 2 panamax vessels on longterm time charter (5 to 15 years)

Origination elevators in Argentina,
Australia, Brazil, Hungary, Kazakhstan,
Paraguay, Poland, Romania, Russia, Ukraine
and Uruguay

2 supramax vessels owned as part of joint



203 owned, leased or commercially
managed vessels handling all grades of
oil products



Access to 100 tank farms

MR tanker


Fuel and storage assets in US, Asia and
Middle East



Operations in LA, Houston, New Orleans,
New York, Panama, ARA, UAE, India and




2010 sales volume = 15.6 million tons

28 sets of paired tugs/barges on long-term
time charter

Port elevators in Argentina, Estonia,
Hungary, Poland, Romania, Russia, Ukraine
and UK
250 wagons and 80 part-owned wagons

203 vessels

(owned, leased or commercially managed)
NB: All figures based on the Glencore prospectus released in May 2011

18 | Sustainability Report 2010

NB: All figures based on the Glencore prospectus released in May 2011

NB: All figures based on the Glencore prospectus released in May 2011

Sustainability Report 2010 | 20

2 | Glencore: an overview

2 | Glencore: an overview

Glencore industrial assets and offices within GCP boundaries



Key commodities

Metals & minerals
Locations of industrial assets:

Zinc/copper Zinc (metal and concentrate)
Copper (metal and concentrate)
Lead (metal and concentrate)
Aluminium Bauxite
Nickel/ferroalloys Nickel
Iron ore

Energy products
Locations of industrial assets:
South Africa
West Africa

Oil Crude oil
Oil products
Natural gas
Coal Thermal coal
Metallurgical coal

Agricultural products
Locations of industrial assets:

21 | Sustainability Report 2010

Metals & minerals asset

Main office

Energy products asset


Agricultural products asset

Independent agent


Grain Barley
Vegetable oil

Sustainability Report 2010 | 23

3 | About this report

3 |
About this report
Our reporting is aligned with internationally recognised standards that include the Global
Reporting Initiative (GRI) G3 Guidelines and its metals and mining sector supplement. We believe
that our reporting has achieved Application Level A, with the exception of our targets and objectives, and performance against those targets, which we commit to report in 2011. The index
published in this report (see the GRI index) documents the extent to which we meet these reporting requirements.

3.1 | Boundaries and scope
This report is an integral part of Glencore’s corporate responsibility management and reporting
framework, known as Glencore Corporate Practice (GCP) (see Chapter 5: Glencore Corporate
Practice). Consequently, this report applies to all Glencore business segments within our boundary
definition (see section 5.4: Glencore Corporate Practice: GCP boundaries), including all exploration, production, logistics, marketing and sales across our operations worldwide.
GCP is based on seven fundamental principles. These are our commitments to our people, the
communities that surround us, the environment, our customers, our investors, compliance and
This report is structured around those commitments (detailed in Chapter 5: Glencore Corporate
Practice), addressing our performance against them in 2010.
This structure is intended to provide a basic understanding of the nature and overall objectives
of our GCP commitments, and of Glencore’s organisational and operational activities and the
related material sustainability issues. In subsequent annual sustainability reports, we intend to
place a greater emphasis on the progress made towards set targets.
The scope of this report includes operations either majority owned and operated by Glencore,
or operated by Glencore as part of a joint venture, during the period 1 January to 31 December
2010. Where jointly owned assets are operated by Glencore, data is reported on a 100% basis,
irrespective of our share of ownership. Joint ventures where we do not have operational control
or own a minority stake are excluded from the scope of this report. However, one of our illustrative case studies features an initiative from a joint venture in West Africa where we are not the
Although not relevant for 2010, this report describes our post-IPO governance structure as
Glencore International plc, rather than our previous, privately owned governance structure.

24 | Sustainability Report 2010

3 | About this report

3.2 | Data
For an organisation of Glencore’s operational scope and geographical reach, it is critical to collect
and consolidate data based on commonly defined reporting elements. That fact is particularly
true for this initial report, as it has required the recent rollout of a reporting system that for the
first time gathers consolidated non-financial data from across Glencore. This rollout took place in
the final quarter of 2010 (with our initial GCP assessment taking place in late 2009). Our intention
is to strengthen our data validation and standardisation processes over the coming years.
As far as possible, we have gathered and consolidated data back to 2008, to give context for the
current results. There have been some limitations on data comparability and completeness, as
information dating from 2008 and 2009 was gathered before our current reporting systems were
We have included data only from operations controlled by Glencore at the end of 2010. Entities
which were under our control in 2008 or 2009 but disposed of by the end of 2010 have been omitted.
In addition, some of our illustrative case studies feature initiatives or projects that were commissioned or commenced before 2010 but were still delivering continuous benefits during 2010.
Collecting sustainability data at a group level allows us to compare figures and consolidate information consistently. We can therefore identify and focus on areas that need improvement or offer
good practice examples for the rest of the group.
Although all data presented is subject to internal documentation and review requirements, our
current processes are not as mature as those used for our financial reporting.
The data metrics in this report are those generally used throughout the industries in which we
operate. They are primarily based on the GRI G3 Guidelines and its metals and mining sector
supplement. Where more specific metrics are applied, these are specified in the relevant section.
As our head offices and satellite marketing offices have comparatively little sustainability impact
compared with our industrial activities, we do not report on measures such as energy consumption
and community issues for these offices.
We reserve the right to change our approach to the inclusion of data in future sustainability reports without prior announcement, along with changes to specific data and its interpretation. In
addition, we are reporting to the public using a newly established reporting system and therefore
we may make future restatements of data already reported, if improvements in our reporting and
verification systems make this appropriate.
All monetary figures stated are in US dollars (USD), unless otherwise indicated.

Sustainability Report 2010 | 25

4 | Materiality

4 |
This report details our performance against the commitments of our corporate responsibility
programme, Glencore Corporate Practice (GCP). We have determined the material issues within
each performance area or issue using experience gained from our industrial and marketing activities, and by interacting with our people, the local communities and other stakeholders. We
have done this according to the following criteria:
1. The impact the matter has on our business and the regions where we work
2. The degree to which the matter is under our direct control or indirect influence
3. The impact or potential impact on local communities, and on our people, customers,
operations or sourcing
4. The relevance to our key stakeholders: we consider these to be our people, local communities,
our customers, our investors and the governments of the countries in which we operate
Once we have established the relevant issues, we develop appropriate policies and approaches.
We take into consideration international and sector-specific standards and guidelines, our own
reporting and risk management systems, our community and investor relations programmes and
the outcomes of regular dialogue between our corporate management and operational staff. We
believe that this first public non-financial report will also help us further engage with our stakeholders and prompt valuable and constructive input for our continuous improvement process.
When examining the issues relevant to us, we find some that are universal to all our business
activities, and others specific to the local circumstances at our different operations. These are
defined by geographical location, type of operation, regulatory environment and the development
levels and resources of the local communities.
This report covers the most significant (material) issues as determined during the implementation of GCP. It does not exhaustively list all potential topics. If a specific issue is omitted, this does
not indicate that it is not on our agenda or otherwise addressed by GCP.

4.1 | Organisation-wide issues
Our first responsibility is to our people, both for their immediate Health & Safety and their overall
wellbeing and satisfaction at work. Prioritising our people is fundamental to attracting and
retaining the best talent, and thus strengthening and maintaining our business.
Other important group-wide issues are our compliance with international and local regulations,
and our respect for human rights in all interactions with our employees, contractors, business
partners and society in general. We also carefully observe the global challenge of climate change,
making relevant adjustments to our activities where we can, and taking care to ensure that we use
resources efficiently and minimise our impact on the environment.
We also believe that our contribution to both the worldwide economy and the local economies
of the communities in which we operate is material. We provide natural resources, needed by
global industry to generate wealth and growth, as well as vital economic support. This creates
opportunities for the countries from which we source, or to which we supply, our commodities.

26 | Sustainability Report 2010

4 | Materiality

4.2 | Marketing activities
Our reputation with our customers is based, in large part, on the quality and reliability of our
sales and logistics functions. We believe these are key to our success, making quality a material
issue at all times.
As we store and move large quantities of materials on land, across the open sea and through
inland waterways, a reliable, safe and timely operation is also material. The same applies to
­ensuring that we comply with all safety and transport regulations.
As we source from almost every part of the world, our supply chain integrity is vital. We seek to
ensure integrity on both the purchase and sales sides for regulatory compliance. We are also
aware that supply chain sustainability is becoming an increasing concern for our customers and
regulators. See Chapter 10: Our customers for more details.

4.3 | Industrial activities
For Glencore, industrial activities comprise mostly mining, metallurgical smelting and refining,
operating beneficiation plants for agricultural products or agricultural production itself. These
operations come with inherent occupational health challenges as well as occupational and industrial safety issues. These will always be among our top priorities, as we aim to protect our people
and the surrounding communities from harm and our operations from business interruptions.
Complex operations such as mines or smelters have an environmental impact. Typically this
includes air emissions, industrial and mining waste, fresh water use and related waste water management, as well as a possible negative impact on biodiversity.
The communities in which we operate generally benefit from our activities in terms of employment and improved infrastructure (eg public water supplies or medical care), but adverse effects
cannot always be prevented, which makes adequate mitigation programmes another important
material factor.

Sustainability Report 2010 | 27

5 | Glencore Corporate Practice

5 |
Glencore Corporate Practice
Glencore’s management approach to non-financial performance and corporate responsibility,
along with our policies, is embedded into the Glencore Corporate Practice (GCP) framework.
This framework represents our commitment to good business conduct, the environment, Health
& Safety, our people and communities.

International law
Best practice standards

GCP principles

It is designed to:
‚‚ Ensure compliance with regulations at international and local levels
‚‚ Meet internationally accepted good practice standards for corporate governance and
managing non-financial activities
‚‚ Allow us to act proactively and continuously improve performance in these areas
‚‚ Allow regular internal and external reporting on our actual performance
GCP is designed and implemented to meet internationally recognised sector-specific good
practice standards.
Glencore supports the Extractive Industries Transparency Initiative (EITI) but is not currently a
signatory to any other external codes of conduct, initiatives or programmes relating to economic,
environmental or social charters, although we observe developments closely. We are a member
of the relevant trade associations for many of the commodities that we produce and trade.

5.1 | GCP principles
The most important non-financial aspects of Glencore’s business activities are addressed in the
GCP principles. These take the form of commitments to:
1. Our people
2. Communities
3. The environment
4. Compliance
5. Our customers
6. Our investors
7. Communication and reporting
These commitments are the foundation from which
we build, shape and implement GCP-related management programmes, procedures, objectives and
controls. They have been developed as the result of
feedback from our key stakeholders over the years.
Although Glencore has a relatively straightforward
business model, each one of our business segments
has both organisation-wide and specific issues
to deal with. Our metals & minerals and coal divisions have extensive mining operations, while our oil
business is mainly involved in trading crude oil and
downstream petroleum products using a large time charter fleet. In contrast, our agricultural division is involved in farming, physical marketing and logistics, and its feed and food industry customers have specific quality and manufacturing practice requirements.

28 | Sustainability Report 2010

GCP management

Group and local

Local law

5 | Glencore Corporate Practice

It is clear that GCP must address and respect a wide range of subjects. For this reason the principles
are supported by specific policies and programmes for individual issues, such as our compliance
programme. We also have appropriate controls in place to allow us to benchmark our performance
against targets, and to provide guidance and indication of where we need to take corrective action.
Glencore has sizeable industrial operations that do not operate under the Glencore name. These
operations issue their own policies (in accordance with the GCP principles) and implement them
using their own programmes adapted to their specific needs, operating environments and products.
All operations have been issued with the GCP principles and minimum requirements and are currently
conducting self-assessments on their compliance. These reports on how they are performing and
their planned actions will help us shape and enhance GCP in the future.

5.2 | GCP requirements
Our GCP guidance document lays out the basic
requirements that must be implemented by all
Glencore operations that fall within the GCP
The basic GCP requirements are as follows.
Our people: Health & Safety
Based on the broad principle of zero harm, our industrial, marketing and corporate activities must
ensure that:
‚‚ Risks to operational integrity, logistical assets
and workplaces are assessed regularly
‚‚ Our people’s exposure to potential hazards is
assessed regularly
‚‚ Suitable personal protective equipment and
instruction on its use are provided
‚‚ A ppropriate emergency response procedures
and equipment are provided
‚‚ All appropriate regulations are complied with
‚‚ Health & Safety management programmes and controls are implemented
‚‚ Sufficient staff and resources are provided to manage Health & Safety
‚‚ The integrity and safety of mobile and stationary equipment, individual workplaces, product
transportation methods and conditions, storage facilities and how products are placed in
the market are reviewed regularly
‚‚ Programmes and targets for continuous improvement are implemented
‚‚ Actual performance is tracked
Our people: human resources
Based on the principles of fair remuneration and zero tolerance for human rights violations, our
industrial, marketing and corporate activities must ensure that:
‚‚ Remuneration and incentive practices are fair and competitive, and in line with local
regulatory requirements as well as with local wages and benefits
‚‚ Our people are reviewed regularly, potential is recognised, and appropriate development
opportunities provided
‚‚ The risk of any human rights violations is assessed regularly and mitigated if necessary
‚‚ Programmes and targets for continuous improvement are implemented
‚‚ Actual performance is tracked

Sustainability Report 2010 | 29

5 | Glencore Corporate Practice

Based on the principles of dialogue and co-operation, contributing to local development and
hazard prevention, our industrial and logistical operations in particular must ensure that:
‚‚ Any local impact from their activities is assessed and, if necessary, mitigated
‚‚ Sufficient staff and infrastructure are provided to manage community relations
‚‚ Complaints are registered and handled effectively
We encourage all our operations to seek additional possibilities for community involvement.
The environment
Based on the principles of compliance and continuous improvement, our industrial and marketing
activities must ensure that:
‚‚ Our environmental impact is identified, assessed and monitored
‚‚ Regulatory requirements are monitored and complied with
‚‚ Environmental management programmes and controls are implemented
‚‚ Sufficient staff and resources are provided
‚‚ Contractors and service providers are involved where necessary
‚‚ Programmes and targets are implemented to improve continuously the efficient use
of resources, protection of biodiversity, climate change impact and pollution prevention
(by addressing the management of water, waste and air emissions and the rehabilitation of land)
‚‚ Actual performance is tracked
Our customers
Based on the principles of assuring quality and contractual performance as well as regulatory
compliance, our corporate marketing and product safety staff work with our suppliers and service
providers to ensure that:
‚‚ Product quality is assured throughout the supply chain
‚‚ Products comply with all regulatory requirements
‚‚ Product information and documentation are provided to ensure safe transport, handling and use
Our investors
Our corporate functions aim to achieve superior long-term financial returns with minimum business
risk, along with strong internal governance and consideration of environmental, health, safety and
community standards. They must support our business segments and their commodity departments and together follow internationally accepted good practice standards and guidelines.
Based on the principles of compliance with all relevant local and international laws and overall
integrity of business conduct, our marketing activities must follow the guidance and instructions
of our corporate compliance programme. Our industrial operations must implement their own
compliance programmes, which address their specific requirements but are consistent with our
overall commitment.
Communication and reporting
The facilitation of fact-based, fair and open communications with parties interested in our operations is an integral part of GCP. GCP is integrated into our corporate reporting structures, adding
a non-financial dimension to our financial reporting. Through our reporting and an open dialogue
regarding the environment, our people, Health & Safety and local communities, our stakeholders
can report issues to the highest level of the organisation and for appropriate action.

5.3 | Implementation
We believe that robust management of the issues addressed by GCP requires guidance, co-­
ordination and control from the corporate level. But our success in meeting both our own ex-

30 | Sustainability Report 2010

Internationally recognised
external standards

Standards such as ISO 9001,
ISO 14001, OSHAS 18001,
NOSA (National Occupational Safety Association)
and ISCC are complementary to GCP and can positively
support GCP’s continuous
improvement manage­ment approach. Where
applicable, we encourage our­
operations to ­comply with
these standards.

5 | Glencore Corporate Practice

pectations and those of our stakeholders is most often determined by how we perform at a local
operational level.
This means that it is vital that our local-level operations embrace these corporate standards and
take responsibility for, and ownership of, GCP issues. They are best able to set priorities and understand where, and with what impact, execution of activities occurs. Our intention for the GCP
framework is to ensure harmonised guidance, facilitation, control, active support and communication; it establishes common ground and understanding within the Glencore group, aligning
our internal expectations and defining minimum requirements.
We used a multi-stage approach to designing and implementing the GCP framework. The first
stage in 2009 comprised an initial questionnaire-based assessment. In 2010, we undertook GCPspecific site visits and two-way consultation with key representatives from each of our business
segments. This was followed by the authoring, reconciliation and final board approval of our
seven GCP principles and commitments in May 2010. We then introduced an internal non-financial reporting system, which forms the database for much of the information presented in this
report. To help facilitate a thorough understanding of GCP and provide guidance throughout the
organisation, we developed the GCP guidance document, which gives background information
on GCP and its objectives.
The next step will require all industrial operations to perform a self-assessment on the minimum
requirements of GCP and report back on the results.

5.4 | GCP boundaries

GCP boundaries

> 50 %
ownership or
operational control

The GCP framework is mandatory within our marketing activities, as well as in all industrial activities
where we own more than 50% of the operation. Although GCP cannot apply directly to customers,
suppliers, agents, service providers or contractors, we encourage employees to ensure that these
partners comply, for example through contractual arrangements, appropriate communication or
We also use our influence to raise awareness of the basic GCP principles within joint ventures and
entities in which we have non-controlling stakes.
GCP reporting
GCP adds non-financial aspects to our internal corporate reporting, covering our social, environ­
mental, community and compliance performance. Depending on the subject matter, routine reports are made either annually or monthly. Major incidents, which we classify as “class A”, must
be reported within 24 hours.
We also publish annual public sustainability reports; this is the first of these publications. These
follow GRI guidelines, including the sector-specific supplement for metals and mining.

5.5 | GCP objectives



Using our 2010 data as a baseline, we intend to establish a series of measurable GCP objectives
during 2011, which will form the GCP programme. This programme will include a set of grouplevel objectives that support implementation of the GCP commitments, to be published in the
2011 GCP report.
Every business within our group will create its own list of objectives, appropriate for its specific
operations, based on the GCP objectives. Each list will be approved by the appropriate management team, which will also carry out periodic assessments, management reviews and corrective action plan approval. Each business’s individual objectives must be distinct and measurable
and designed to contribute to Glencore’s overall group objectives.

Sustainability Report 2010 | 31

Kazzinc employee, Kazakhstan

to our people

Our GCP commitment states: “Hiring and retaining skilled and motivated
employees is important to our continued success. We are committed to fair
remuneration by the provision of competitive wages and benefits.
“We do not tolerate any kind of harassment or discrimination and support
the UN’s Universal Declaration of Human Rights, which prohibits forced,
compulsory or child labour.
“One of our ultimate goals is to ensure the Health & Safety of our employees
and contractors. In order to meet this goal we develop, implement and
maintain Health & Safety management systems and programmes which
meet international standards. These are tailored to the specific needs of
our different operations and activities.”

Sustainability Report 2010 | 33

6 | Our people

6 |
Our people
One of the key factors in Glencore’s success is a good, trusting relationship with our people. This
priority is reflected in the principles of Glencore Corporate Practice (GCP) and its related guidance,
which require regular, open, fair and respectful communication, zero tolerance for human rights
violations, fair remuneration and, above all, a safe working environment.
We also believe that putting our people first helps us to attract and retain highly qualified and
skilled employees in all disciplines. This is an important driver for sustainable success, especially
given the competitive markets in which we operate. For instance, our marketing activities require
people with a thorough understanding of the commodity markets in nearly every region of the
world. And we need many specialists to plan and manage the logistics required to move and
deliver the products that we buy and sell.
Glencore’s GCP guidance prescribes the minimum requirements that we believe are needed for
our operational managers and staff to contribute to our Health & Safety commitment. This commitment can briefly be summarised as “zero harm”. It requires a skilled, trained and motivated
The engineers at our industrial assets and our other industrial, technical and project experts are
key to our operations. They must often work in remote locations or countries where there is an
overall shortage of skilled workers. We address this issue in many ways, including using strategic
workforce planning as well as targeted programmes and policies to enable skills development.
We believe that the precise approach should be determined by local conditions, so we develop a
unique way forward for each operation, while ensuring that each is consistent with GCP.
The varied nature of Glencore’s operations also means that we recognise a wide range of collective
and individual bargaining arrangements, with the underlying recognition of our people’s right to
freely associate and join trade unions.
Glencore is committed to upholding the United Nations (UN’s) Universal Declaration of Human
Rights and therefore does not tolerate child labour or forced labour at any of our operations. We
also respect the International Labour Organization (ILO) Declaration on Fundamental Principles
and Rights at Work.
Glencore is an equal opportunity employer that employs and promotes people based on merit.
Where we work with contractors, we use our influence along with encouragement and engagement
to ensure that their organisations’ employee relations are consistent with ours.

34 | Sustainability Report 2010

6 | Our people

6.1 | Health & Safety
Our first priority is to protect our people from all injury and make Glencore a zero-harm operation.
To achieve our overall goal of zero harm, we have ten requirements that are mandatory at all
1. Risks to the physical or chemical integrity of operations, logistical assets and individual workplaces are identified, assessed and monitored regularly
2. Employee and contractor exposure to potential health hazards is assessed regularly
3. Suitable personal protective equipment is provided with appropriate instruction on its use
4. Appropriate emergency response procedures and equipment are provided
5. Regulatory obligations are monitored and complied with
6. Adequate Health & Safety management programmes, mitigation measures and controls are
7. Competent staff and sufficient resources are provided to manage Health & Safety
8. The integrity and safety of mobile and stationary equipment, individual workplaces, product
transportation methods and conditions, storage facilities and how products are placed on the
market are reviewed regularly
9. Programmes and targets for continuous improvement in Health & Safety are implemented
10. Actual performance is tracked
6.1.1 | Occupational safety
With the introduction of our GCP reporting system, we now collect and consolidate data 1 on reported Health & Safety incidents centrally, using a single methodology. We have always taken the
safeguarding and welfare of our people seriously, and have striven to create and maintain safe
working environments, long before the rollout of GCP, although information was collected and
managed at the individual operational level.
Sadly there were 18 reported fatalities across the group in 2010, of whom ten were employees
and eight were workers employed as contractors.
We deeply regret the loss of life and believe that any fatality is unacceptable and avoidable.

Figure 1: Glencore group fatality frequency rate (FFR)  2






Total fatalities




NB: Marketing activities not included in these figures

Our internal reporting system provides us with important data that we analyse to help the group
learn from serious incidents and accidents.



 he data reported in this section often refers to the total workforce, ie both employees and contractors.
Wherever data refers only to employees, this is stated clearly.
FFR = total number of fatalities per million hours worked (by both employees and contractors).

Sustainability Report 2010 | 35

6 | Our people

Katanga Mining Limited, DRC
Proactive action to ensure a safe working environment
Katanga Mining Limited (Katanga) develops
and operates high-grade open-pit and underground copper mines through its subsidiary,
Kamoto Copper Company. Katanga’s underground mine has been worked since 1958, but a
lack of capital investment since the early 1990s
has meant significant infrastructural deterioration. Glencore took over management control
of Katanga in 2009.
As the mine is Katanga’s primary source of
sulphide ore, the team recognised the importance of rehabilitation for safe production.
They completed a thorough review of rock
mechanics to identify additional support requirements to minimise the risk of rock fall.
The review showed rock support was generally
poor. The team identified mine sections where
support was insufficient or inadequate and

closed them off pending refurbishment. They
also developed detailed quality standards for
rock support.
Katanga spent USD  9  million on rock support
equipment to ensure that the new standards
could be adopted throughout the mine, plus
USD 2 million to refurbish a hydraulic fill plant
that significantly accelerated backfilling in the
mined stopes, making the entire mine much
more stable.
As a result, 1,900 m of mineshaft roof has been
reinforced and mined-out production chamber
support has been completed. Katanga has also
introduced educational programmes for mine
employees and monitoring programmes that
continuously assess seismic activity to ensure
awareness and swift response on safety issues
associated with rock support.

The lost time injury frequency rate (LTIFR) 3 for Glencore’s metals & minerals and agricultural
divisions was 3.36 in 2010. Our agricultural division started recording Health & Safety indicators
in 2010 and determined the LTIFR to be 2.68.

Figure 2 : LTIFR for Glencore industrial activities






Metals & minerals and coal
Metals & minerals




NB: Neither agricultural activities for 2008 to 2009 nor oil product activities are included, as they started Health &
Safety GCP reporting in 2011

As can be seen from this graph, there have been great improvements in coal LTIFR figures since 2008.
Approximately 90% of the hours worked across all our industrial assets in 2010 can be attributed to
our activities surrounding metals & minerals and coal. The LTIFR for our metals & minerals assets was
3.84, an improvement of 10% compared with 2009 and 14% compared with 2008.
We do not aggregate information on absenteeism at a group level.


LTIFR = total number of injuries per million hours worked (by both employees and contractors).

36 | Sustainability Report 2010

6 | Our people

6.1.2 | Training and development
Each of our industrial sites has its own specific policies and procedures tailored to manage the
risks associated with its particular working environments. Each site is also responsible for developing specialised Health & Safety training programmes.
We do not currently track and record the training provided to our employees and contractors by
role type. However, we know that the majority of their training is on Health & Safety.

Oil shipping activities
Crew safety training
The crew of our time charter fleet must meet
the requirements of the International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers (STCW). 4 Glencore
also requires the officers and crew of both our
time-chartered and our own vessels to meet Oil
Companies International Marine Forum (OCIMF)
and oil majors’ requirements regarding the crew
matrix, a document outlining the makeup of the
team. This is to ensure that the ship’s management team has the appropriate levels of familiarity, expertise and experience with onboard
safety and pollution prevention practices.

We require the managers of our owned fleet to
ensure that their officers and crew undergo the
industry-wide recognised and class-approved
training courses over and above STCW requirements. The safety culture is further enhanced by
crew participation in safety seminars organised
by our ship managers, covering all aspects of
safety and environmental protection. We are
also actively encouraging the training of cadets
on board vessels owned by Glencore.

Figure 3: Average hours of training per employee



Metals Agricultural Energy


Metals & minerals




NB: Information recorded for employees only. Marketing activities not included

Across Glencore, the average hours of training per employee dropped between 2008 and 2009.
This was mainly due to our partial closure of some mines in response to the economic crisis, and
the new 2010 training initiatives at Kazzinc, our Kazakhstan metallurgy operation, which increased
the average training hours significantly.
Kazzinc has started a large-scale safety training project called “Superintendents School”, the retraining of Ridder Sokolny mine engineers and a professional training programme for workers, all
of which contributed to a rise in the average training hours for 2010.
The Iscaycruz opening in Peru also resulted in an increase from 74 hours per employee in 2009 to
84 hours per employee in 2010 for this operation.
Paramount to safe operations is our inclusion of contractors in all our training. On average they
account for a quarter of our people across the Glencore group. In general, our contractors are
obliged to adhere to the same rules and procedures as our employees.

 he International Maritime Organization (IMO’s) International Convention on Standards of Training, Certification
and Watchkeeping for Seafarers (1978 and as amended) sets qualification standards for masters, officers and watch
personnel on seagoing merchant ships.

Sustainability Report 2010 | 37

6 | Our people

Prodeco, Colombia
Golden Rules for safety
The Golden Rules are Prodeco’s minimum
rules, standards and procedures, designed to
prevent fatalities and major accidents based
on the most common hazards of mining. They
are mandatory for all employees, contractors
and visitors at all times, and are intended to:
‚‚ Ensure compliance with safe working
practices and Health & Safety procedures
‚‚ Identify hazards and assess risks before
any task or activity begins
‚‚ Ensure that our people are trained,
qualified and competent for their work
‚‚ Ensure that the specified personal protective equipment for each activity is used

Knowingly breaking any Golden Rule always
results in serious disciplinary action.
Some of the areas covered by the Golden
‚‚ Workplace risk identification
‚‚ Operating equipment and vehicles
‚‚ Working at height and in confined spaces
‚‚ Handling of explosives and blasting areas
‚‚ Working near water
‚‚ Working on electrical systems

We primarily protect our people by minimising their exposure to hazards using engineering controls
or equipment. We use personal protective equipment to supplement these measures, on account of the wide variety of working environments. The most common hazards in our workplaces
are working with heavy loads, noise, silica, diesel exhaust particles, acid mist and particulate matter
containing heavy metals.
Although each operation manages its own Health & Safety locally, our newly implemented GCP
reporting system includes a group-wide requirement to record and report occupational illnesses.
This means illnesses caused by exposure to factors associated with employment, and includes
acute or chronic illnesses or diseases.
Based on the information received in 2010, we saw 278 5 new occupational illnesses reported, representing an occupational diseases rate (ODR) of 3.63, for our metals & minerals, coal and agricultural operations. The vast majority of these reported illnesses (83%) were types of noise-induced
hearing impairment, which accumulates over the long term and was therefore partly incurred at
times when workers’ conditions were outside our control. Other conditions included respiratory
illnesses (12%), musculoskeletal disorders (5%) and skin conditions (0.4%).

 his number does not include Kazzinc, as the latest order of Kazakhstan’s Minister of Public Health, No. 709 dd
16.11.2009, introduced a reclassification of occupational illnesses that is currently being amended. The amended
order is expected to take effect in 2011.

38 | Sustainability Report 2010


6.1.3 | Health
As our group contains such a diversity of locations and types of operation, the health conditions to
be addressed can vary greatly from site to site. We therefore employ a wide range of programmes
adapted to match specific local circumstances, while meeting our general GCP requirements. Local
Health & Safety officers and site managers have day-to-day accountability for the programmes
used at their own sites. Each programme starts with an assessment of the workplace and working
environment to determine the appropriate measures to ensure our people’s long-term wellbeing
and health.


La seguridad,
un compromiso de todos.


Las reglas de oro son obligatorias para todos los empleados,
visitantes y contratistas.
Antes de iniciar un trabajo se identificarán y controlarán los
peligros asociados con el mismo.
Los empleados podrán operar un equipo sólo si poseen la
licencia que acredite su competencia para ello.
Los conductores y operadores, deben entender y seguir las
normas de tránsito establecidas en la legislación
colombiana y las propias de PRODECO.
Siempre que se encuentre en el área de trabajo de un
equipo, debe seguir el procedimiento de etiqueta y candado.
Antes de iniciar cualquier trabajo, se debe identificar y
bloquear todas las fuentes de energía
Todo trabajo en altura superior a los 1.5 metros, requiere
una plataforma de trabajo segura (andamios) o tener un
dispositivo de protección contra caídas correctamente
instalado (arnés y cuerda de vida certificadas).
Ninguna persona debe ingresar a un espacio confinado sin
un permiso especial de entrada.
Para realizar un levantamiento de cargas con equipo de izaje
debe poseer una licencia expedida por PRODECO.

10. La distancia mínima que se debe mantener para efectuar

trabajos cerca de una pared de excavación es de una y media
veces la altura de la pared, a menos que se esté dentro de
un vehículo con estructura protectora contra caída de

11. Ninguna persona o vehículo debe entrar a una área que este
siendo cargada con explosivos, o que ya esté cargada, sin
previo permiso de los dueños o responsables de dicha área.

12. Para trabajar en o sobre aguas con profundidad mayor de un
(1) metro, debe disponer de una plataforma segura de
trabajo y chalecos salvavidas adecuados y a la medida.

6 | Our people

In many of the countries where we operate, we give our people general preventive healthcare and
medical advice. This is particularly important in locations where public healthcare provision is less
well developed, as our support can make a great difference to the general health of our people
and their families.
In addition to onsite medical care, we also run a wide range of health programmes and initiatives.
Their scope and type depend on the specific needs of the local workforce. Our initiatives are
especially relevant in countries with particular health threats, for example, in some countries
where we operate malaria is a major threat, while others have some of the highest HIV/AIDS
infection rates in the world. We try to address these issues with specifically tailored programmes.

Mopani, Republic of Zambia
Malaria and HIV/AIDS intervention programme
Malaria and HIV/AIDS are major public health
and developmental challenges in Zambia. At
the university teaching hospital in Lusaka, 36%
of hospitalisation and outpatient visits are for
malaria; it accounts for a fifth of the country’s
maternal mortality rate. In addition, Zambia’s
HIV prevalence rate was estimated at 16% in the
Zambian government’s national strategic plan.
Beyond the negative effects of malaria and
HIV on individual sufferers, these diseases
have social and economic effects that include
absenteeism, reduced workforce morale,
reduced productivity, increased healthcare
costs and operational risks.
For around ten years, Mopani has been partnering with other stakeholders, including the
Zambian government, to increase the coverage of key malaria and HIV/AIDS interventions.
Objectives are to reduce the malaria incidence
rate from 216 in every 1,000 people at Mopani
mining sites and the surrounding communities
to below 20 per 1,000.

Periodic larviciding of stagnant water where mosquitoes are most likely to breed

By the end of 2010, the incidence rate was
less than 32 per 1,000, a decrease of 85%.
Integrated malaria control activities include
environmental management to eradicate
mosquito breeding areas, the use of larvicide,
indoor residual spraying, distribution of insecticide-treated nets and malaria education programmes.
The HIV/AIDS intervention includes prevention strategies, treatment, care and support
(including HIV counselling and testing), antiretroviral therapy, prevention of mother-tochild transmission and palliative care, along
with education programmes conducted in the
Kitwe and Mufulira communities.
These two medical programmes are co-ordinated and managed by Mopani's two hospitals and seven clinics in the towns of Kitwe and

Malcolm Watson hospital in Mufulira, one of two
owned and operated by Mopani

Sustainability Report 2010 | 39

6 | Our people

Mutanda, DRC
Preventing child mortality
The Mutanda mine is a remote operation.
When Glencore became involved in this
joint venture in 2007, healthcare provision in
the local community was very limited. With
an under-five mortality rate close to 30%,
Mutanda had to act quickly to reverse this
worrying situation. The team initially planned
to build a clinic focusing on Mutanda employees and their dependants, but it became
apparent that this was not expansive enough
to lower the mortality rate.
Mutanda constructed two additional clinics
and formed an alliance with the DRC government to open a vaccination clinic for underfives, operated by the Mutanda team with

One of the new Mutanda clinics

40 | Sustainability Report 2010

vaccines supplied by the government, and a
mother and baby clinic aimed at eliminating
malnutrition in infants. Clinics also sought to
identify local people with illnesses through
weekly open clinics in two of the nearby towns,
they could then be treated in the Mutanda
Progress over the last three years has been
highly encouraging. The team has a register
of some 2,000 mothers and children who are
issued regularly with vitamins and lactic acid.
Coupled with hygiene and healthcare advice,
this has reduced the infant mortality rate to
less than 10%, with no recorded deaths of
under-fives through malnutrition.

6 | Our people

6.2 | Human resources
To meet our GCP standards on human resources and human rights, we have three key requirements that must be observed across the group:
1. Remuneration and incentive practices are fair and competitive, and in line with local regulatory
requirements as well as with local wages and benefits; we make no pay distinctions between
men and women
2. The skills and competencies of our people are reviewed regularly, talent and potential are
recognised, and appropriate education, training, coaching and development opportunities
are provided
3. The risks of failing to achieve zero tolerance on human rights violations are assessed regularly,
and, if necessary, appropriately mitigated
In 2010, Glencore directly employed an average of 57,650 people across the group, of whom
approximately 5% worked on marketing activities and 3.5% had a part-time contract. In addition,
we had over 22,600 contractors working for us, predominantly in industrial activities.

Figure 4: Employees by activity and by region (%)
Marketing activities (2010)


Industrial activities:
Metals & minerals and energy (2010)





Industrial activities:
Agricultural (2010)










Latin America
North America

1 241
2 772

Latin America
North America

12 431
1 381
1 103
24 284
7 142
47 610

Latin America

4 904
1 569
7 274

Figure 5: Total industrial operations workforce by division
60 000
40 000
20 000


Agricultural Energy

Metals & minerals

43 031
7 274
4 579

16 637
5 198

59 668
7 933
9 777

NB: Excludes contractors in oil terminal operations not under Glencore operating control

Sustainability Report 2010 | 41

6 | Our people

6.2.1 | Turnover
Our staff turnover for 2010 was 14% of our total employment figure. The age group with the largest turnover was between 30 and 50 years (7%), followed by the under-30s (4%) and finally the
over-50s (3%). These turnover rates are comparable with those that we observed in 2008 and 2009.
The turnover rate across our industrial activities was 14% in 2010, the same as for marketing.
This rate is slightly lower than that of previous years, due to improved economic conditions. The
average turnover across the last three years within our agricultural division was 33%, a relatively
high figure due to the nature of a business with many short-term seasonal workers.

Figure 6: Turnover by region (%)

Latin America
North America


6.2.2 | Diversity
Consistent with our figures for 2008 and 2009, around a fifth of our employees across the group
were female in 2010. As a London listed company, we also recognise the importance of increasing
the number of women on our board. We will take this into account when making future appointments to the Glencore board of directors.

Figure 7: Women workers by region (%)

Latin America
North America


6.4 %
21.3 %
11.8 %
27.2 %
26.7 %
8.6 %
18.3 %
19.1 %

More than half of all people working for Glencore are aged between 30 and 50; this is in line with
other industries.

Figure 8: Employees by age (%)



42 | Sustainability Report 2010

< 30 years
30 – 50 years
> 50 years




6 | Our people

6.2.3 | Training and development
We undertook a formal performance review process for 71% of our marketing employees in 2010.
We are not currently able to report on training hours per employee for our marketing activities.
For details of our industrial training see section 6.1.2: Our People: Health & Safety: training and
Most of our training and development programmes are developed and implemented at the local
business level, to support local requirements more effectively. This is due not only to the different
nature and requirements of each of our business divisions, but also to the different situations at
each operational asset. For this reason we believe it is more effective to make each business segment and operation responsible for its specific training, as long as this is in line with GCP principles.
6.2.4 | Hiring local workers
As part of our commitment to our local communities (see Chapter 7: Communities), we focus
on employing people from the areas near our operations as much as possible. We believe that
favouring local workers is an important aspect of our economic contribution to our local communities and to our people in general.

Prodeco, Colombia
Local employment
As part of our commitment to the wellbeing of
our local communities, we focus on employing
people from the areas where our operations
are based. We define this as being born in
the regions of La Jagua de Ibirico, Becerril,
El Paso, Codazzi and Chiriguaná (Cesar), or
having lived there for at least five years. We
give first consideration to people from these
municipalities, if they meet the criteria and
standards of our selection policy and process.

employees in our operations came from the
departments of Cesar and Magdalena, where
our mine, port and rail operations are based.

While this is not a legal requirement in Colombia, our environmental management plan
makes reference to this preference for local
From 2008 to 2010, we saw a 40% increase
in local employment. In 2010, 92% of direct

Prodeco employees who helped supply drinking
water for Becerril communities

Sustainability Report 2010 | 43

6 | Our people

Sinchi Wayra, Bolivia
Local employment
In 2008, Sinchi Wayra implemented a policy
of favouring workers from the local Colquiri
mine district. This started with the hiring of
40 ancillary staff, representing 10% of the overall payroll. After a training period the local
workers were promoted to productive positions
inside the mine.
The policy originated from a formal request
by local organisations. Mining is considered
a very good job by local people, as they can
triple their earnings and work in decent and
safe conditions. The other main opportunities
are subsistence agriculture and artisanal mining. Agriculture does not generally provide
enough income to escape poverty, while artisanal mining endangers lives on a daily basis.
Youth migration to cities has therefore affected families and communities.

There has been a significant improvement in
relations between Sinchi Wayra and the local
community, making it easier for the company
to operate in an environment where mining is
not often supported locally. A formerly common practice of local communities blocking
roads has been eliminated, and there has
been a significant reduction in strikes and sitins. This has enabled the company to meet its
production targets as well as support local
development. Because of this success, Sinchi
Wayra is also looking at using local contractors
for civil works.

6.3 | Human rights
One of the key requirements of GCP is zero tolerance for human rights violations.
The managers of our industrial, marketing and central corporate activities are consequently
required to assess our partners regularly for human rights violations, and, if necessary, take
appropriate action.
Human rights awareness is of particular importance for the industrial security providers who protect our people and assets. Where we employ security personnel (either directly or as contractors), we ensure that appropriate human rights training has taken place where indicated, and
monitor compliance. During 2010, we contracted more than 2,300 external security personnel, of
whom over 56% received human rights training based on specific risk assessments.
All our operations, whether corporate or industrial, respect the minimum working age that is
required by local law. According to the data from our reporting systems, the age of our youngest
worker is 18. No occurrences of forced or child labour were identified in our operations or our
supply chain in 2010.
For 2010, we had no indication of any incidents of discrimination taking place or of any action
being required.
Freedom of association
In 2010, our industrial activities within our metals & minerals and coal divisions saw 89% of the
workforce covered by collective bargaining agreements. For our agricultural division the figure
was 82%.

44 | Sustainability Report 2010

6 | Our people

Our people have the right and the ability to negotiate and to organise themselves with respect
to labour conditions and labour rights. Our sites operate a range of different industrial relations
models that include individual site and collective bargaining agreements. We have not identified
any instances of sanctions or warnings on these issues from inspection agencies in 2010.
We consult and communicate with our people on a timely basis during significant organisational
changes as well as offering support where necessary. These changes include closures, restructuring and acquisitions. We also follow all regulatory requirements in relation to minimum notice
periods. Notice periods vary across the group due to the variety of businesses and locations.
There were eight strikes during the year lasting more than five days; the majority of these took
place in South America.

Sustainability Report 2010 | 45

Kazzinc-funded kindergarten, Kazakhstan

Commitment to

Our GCP commitment states: ”Glencore’s global presence and economic
strength has a positive impact on the communities in which we operate.
We provide employment and numerous other benefits, thereby contributing directly and indirectly to the prosperity and development of our host
countries in general and local communities in particular.
“We carry out assessments to define appropriate measures to prevent or
mitigate possible adverse effects on the communities in which we operate.
We are in regular contact with affected parties and have systems in place
to ensure that all requests and concerns are brought to the attention of our
local management who will respond or take action as appropriate.”

Sustainability Report 2010 | 47

7 | Communities

7 |
We understand that our relationships with local communities are important, not only for all our
operations, but for the whole Glencore group. We believe that the best way to manage these vital
relationships is to adhere to the principles of open dialogue and co-operation.
We believe that we should contribute to local communities’ economic and social development
(above and beyond the employment opportunities we provide and the royalties and taxes we pay)
and mitigate as far as possible any adverse impact that might arise from our operations. These
­ideals are an integral part of the Glencore Corporate Practice (GCP) community commitment.
In addition to our direct economic contribution, our operations bring additional value to their
local communities by procuring local products and services, investing in local infrastructure and
contributing to development projects in the region.
This effect is generally more marked at operations in remote regions, which are often underfunded in terms of infrastructure and public amenities. Such communities experience significant
benefit from the economic development, employment and improved infrastructure provided by
our operations. This is particularly relevant for our mining operations, which generally make the
greatest contribution to their surrounding communities’ medium and long-term local development.
To a lesser extent it also applies to our farming operations.
Our community contributions have additional value to Glencore as they can help generate broad
acceptance and respect for our presence. This acceptance helps Glencore run our operations
successfully, not only by retaining our licence to operate in each region, but also when applying
for new projects and maintaining our workforce.
Another issue that affects our local communities is mine closure, when resources become depleted
or no longer economic. Our mining operations develop plans for closure that take the expected
lifetime of each specific mine and the requirements of the relevant licence to operate into
account. We make estimates for future restoration, rehabilitation and decommissioning costs
that necessarily include assumptions regarding the circumstances of closure. These assumptions
include the future regulatory framework, the timing of the closure and rehabilitation activities,
and the impact closure will have on local communities.
GCP outlines and mandates the Glencore group’s general approach to managing community
relationships. But ultimate responsibility lies with local management at each operation, who must
determine their specific priorities through understanding and assessing local needs, concerns
and rights.
We believe that the effectiveness of our programmes will be determined by consistent longterm behaviour. This can deliver a strong track record of benefit to the communities in which we
Across Glencore, there are many examples of such consistent track records, both from operations
that we have run for many years (such as Los Quenuales in Peru or Kazzinc in Kazakhstan) and from
those that we have recently become involved with (eg Mutanda in the DRC).

48 | Sustainability Report 2010

Human rights

Respect for human rights
is another of Glencore’s
fundamental GCP principles.
It is primarily part of our
commitment to our people
(see section 6.3: Our
people: Human rights)
but is also relevant to
the communities in which
we operate and our
business partners. GCP
requires regular assessment of the risk of failing
to achieve zero human
rights violations, and
indi­vidual managers to
undertake any appropriate
mitigation that falls under
their responsibility.

Our industrial activities’
impact on communities

Despite our best efforts,
Glencore cannot always
prevent impacts on our
environment and local
communities. Typical issues include air emissions
from smelters or mining
operations. Mining and ore
processing both have a high
water demand, challenging
us to maintain a sufficient
water supply and preserve
the quality of local surface
or ground water. Project
development requires land
clearance, which can negatively impact biodiversity
and change landscapes.
There are usually large
amounts of waste rock and
tailings; if not used for backfill, they must be disposed
of sustainably. These issues
may occur even though
we comply with local laws,
regulations, permits and
environmental management

7 | Communities

Empresa Minera Los Quenuales, Peru
Adding consistent value to local communities
Empresa Minera Los Quenuales (Los Quenuales)
has a good relationship with its local communities, helping them to improve quality of life
with vital investments.
Drinking water for Curay
Los Quenuales has implemented a water
management system for the community of
Curay. It provided sanitation infrastructure that
ensures household water supplies for around
350  members of the community, who are
enjoying improved hygiene and cleanliness as
well as improved nutrition.
Classrooms and toilets for the Curay
educational complex
The company is helping to expand and improve
this infrastructure with additional classrooms
and toilets. Around 50 students are benefiting
from an improved learning environment, hygiene and wellbeing, helping them to improve
their education.
Building a successful schools programme
Los Quenuales began a project in 2009 that
aimed to improve academic performance
in regional elementary schools and reduce

the number of students repeating school
years. The project directly benefits more than
450 students and 350 families. Educational institutions from six different communities have
formed a network of schools and involved
community authorities. They all contribute
to improving educational and administrative
Technical, pre-university and
university scholarships
This programme assists children from nearby
communities in their personal development
and professional education, including preuniversity preparation. Scholarships cover the
cost of higher education and university studies
(including food and lodging) for more than
20 students every year.
Reducing chronic child malnourishment
This ongoing project targets malnutrition in
children and anaemia in pregnant women, by
educating families about food and nutrition
to combat existing bad habits and promote
protein-rich foods. Around 2,400 families in
Oyon, Pachangara and Checras are benefiting
from the programme.

7.1 | Open dialogue
Glencore’s operations can only fully understand the needs and expectations of the local communities, and build the trust required for productive ongoing relationships, with open and honest
two-way communication. This is also necessary for local communities to gain a realistic understanding of our capabilities and limitations in terms of the support we can offer.
We adopt a systematic approach, with designated community liaison managers to ensure that
this dialogue is effective. In some cases these managers work from offices located within the
communities, either full time or during set periods.
In this way our operations have established relationship-building procedures. We team up with
experienced local partners and foster good working relationships with local and national governments. Formal consultation with local communities includes social impact studies, such as those
carried out at our operations in Australia and Colombia, and developing environmental management plans, exemplified by the work of our assets in the DRC.
GCP now requires all our operations to have a formal system for recording, investigating and
following up local concerns and complaints, including media coverage. This is also how local
people can register queries regarding land use or the customary rights of local communities and
indigenous people.

Sustainability Report 2010 | 49

7 | Communities

By the end of 2010, half of our 14 metals & minerals and coal operations had a formal complaint
management system in place. These systems recorded 173 complaints in 2010, the majority of
which were about water use and odour. We also recorded six disputes regarding land use, all of
which are currently being resolved.
Where we find significant challenges, we address these step by step, using consistent long-term
initiatives to allow for a successful outcome.

Kazzinc, Kazakhstan
Kazzinc’s track record on community involvement
Kazzinc constantly strives to strike a balance
between its economic, social and environmental responsibilities, while making a positive lasting contribution to the communities
in which it operates. Since its inception, over
99.9% of the workforce has consisted of local
citizens and the company offers scholarships
for higher education to local residents, ensuring that the local workforce is fully capable
of supporting modern mining operations.
Kazzinc also proactively seeks feedback by
engaging with both government and non-government stakeholders, particularly residents of
nearby communities, employees, and members
of the unions.

As a company, Kazzinc has integrated into the
community well; local people are proud to
work there. It is committed to making a positive
contribution to community life, including infrastructure support, especially in regions where
it is a major employer. It sponsors educational,
healthcare, cultural and recreation facilities, as
well as sports such as ice hockey, cycling, boxing, basketball, curling and gymnastics.
Special attention is devoted to supporting
the region’s orphanages and homes for older
people. In 2009, Kazzinc received the Kazakh
government’s Paryz Award as Best Socially
Responsible Company, for the Beam of Hope
adoption project.
In 2010, Kazzinc constructed a modern kindergarten for 280  children in Ust-Kamenogorsk,
to tackle a shortage of places. A sports facility constructed in the same year triggered a
healthier lifestyle for many adults and children.

Ust-Kamenogorsk kindergarten

50 | Sustainability Report 2010

The Kazakh government has recognised Kaz­zinc
as one of the country’s most environmentally
responsible metallurgical companies, and in
2010 Kazzinc once again received the Paryz

7 | Communities

Katanga, DRC
Katanga and the local community
Katanga is located in Kolwezi, in the Katanga
province of the Democratic Republic of Congo
(DRC). It is an integral part of the lives of local
communities, both through its social responsibility projects and as the largest employer
in the region, employing approximately 3,100
people directly and 3,000 as contractors.
Since 2008, Katanga has invested over USD
23  million in local community projects and infrastructure, with a further USD 10 million bud­
geted for 2011. Katanga management works with
both local and provincial government to identify
key projects that ensure the most positive social
impact. Education, health services and infrastructure have been targeted. Since 2008, pro­
jects have included those discussed below.
Katanga has contributed financially and supplied raw materials, engineers and labour for
the construction and rehabilitation of schools
that include Nuru Ahenee Royale de Kolwezi,
Mupaja, Walemba, Matendo and Nyumba
nursery school, Jean XXIII College and the
University of Kolwezi.

Katanga has assisted with the rehabilitation
of Mwangeji hospital, provided essential
medicines, and contributed USD  2  million to
constructing a mine hospital to cater for its
employees and dependants: a population of
30,000. It has also commenced work on two
new hospitals, Pweto in the south of Katanga
and Kisangani in Kivu province.

The restored and restocked Mwangeji hospital

School in Kolwezi

Katanga has provided boreholes for drinking
water for several villages in and around Kolwezi,
most notably in Musonoi and Mutoshi, plus five
new boreholes, along with associated equipment and pumps, for Kolwezi. It has paved
19  km of roads in Kolwezi and maintains a further 30  km between nearby villages, along with

investing USD  8  million for refurbishing roads
in Lubumbashi and USD 1.2  million to replace
the heavy vehicle barge on the Lua­laba river.
It is also rehabilitating the power infrastructure for its mining operations, which will have
significant benefits for surrounding towns and

Sustainability Report 2010 | 51

7 | Communities

7.2 | Community development
Glencore takes a holistic approach towards our commitments to our people and local communities,
which means that many of our employment, safety, environmental and community activities are
interconnected. We have designed our community programmes, employment practice, environmental measures and safety precautions to complement and support each other.
While the management of environmental and Health & Safety matters tends to be highly regulated,
we generally have more scope to determine how we implement our community development activities – although in some cases specific details are connected to our mining licences. For this reason the programmes developed by different operations are as diverse as the challenges they face.
They can range from simple financial donations (usually towards infrastructure projects) to in-kind
contributions, technical skills and medical or other specialist support.
Our local communities’ health issues are often related to the basic nature of their medical support,
combined with the threat of widespread diseases such as HIV/AIDS or malaria. We work with
local people, public health authorities and others to help protect against those risks and educate
the public. Although our initiatives can be ambitious and far-reaching, they are never intended
to replace state health programmes, but to complement and support them. See section 6.1:
Our people: Health & Safety for further details.
The main details of how Glencore develops and maintains a skilled workforce can be found in
section 6.2: Our people: human resources. However, in some cases these efforts are intrinsically
linked to our community involvement activities, as community development can be one of the
ways in which we attract and retain highly qualified employees.

Harvesting cabbages at Katanga’s Mukweji farm project

52 | Sustainability Report 2010

7 | Communities

CSA, Australia & Mutanda, DRC
The different roles of local education programmes
“CSA Mine”, managed by Cobar Management
Pty Ltd in Cobar, Australia, ensures that students from the local community are introduced to the mining industry and CSA while
still at school. CSA actively sponsors a number
of these students at university, and during
vacations sponsored students have the opportunity to work at the mine to gain experience.
For several years, CSA has welcomed former
students as new company employees, providing a good news story for CSA and for the
At the other extreme, local communities can
face fundamental education challenges. In 2009,
our greenfield project in Mutanda began to
build a suitable school for 200 pupils of pri-

mary school age. Their original primary school
suffered from a lack of investment, and teachers, although committed and hard-working,
were obliged to teach in dark, poorly ventilated classrooms with no desks or benches.
Mutanda approached the local village chief for
permission and with his blessing built a school,
soccer field and training farm to teach sustainable crop growing.
When the school was finished, Mutanda retained all the original teachers. The company
contributes regularly to educational materials,
salaries and the upkeep of the buildings and
furniture, but has handed the school back to
the DRC Educational Department.

7.3 | Resettlements
On rare occasions, one of our mining operations will be unable to continue without resettling
some local inhabitants; this obviously has a major impact on the surrounding communities. If this
is unavoidable, we collaborate closely with local communities and authorities in alignment with
international standards (such as the International Finance Corporation’s Operational Directive
4.30 on involuntary resettlement).
In 2010, our only operation to be affected by resettlement activity was Prodeco in Colombia. This
will have an impact on communities near our Calenturitas site. The Colombian government has
required the four mining companies operating in this area to resettle three towns; an initial census
shows that about 320 families will need to be resettled. The four companies are still investigating
the possible effects and consulting with local communities to reach a common consensus. This
will establish the appropriate processes for the resettlement.

7.4 | Indigenous people and artisanal mining
In 2010, five of our operations reported sites located near territories belonging to indigenous
populations. Based on our internal inquiries, we estimate that slightly fewer than half of those
sites have formal agreements in place with the indigenous communities.
In 2010, four of our operations reported having artisanal mining on or near their sites. In half the
cases we did not own the land being mined and could not prevent the mining or mitigate the
related risks. However, at our Sinchi Wayra sites in Bolivia we provide technical assistance to the
artisanal miners working near our operations, to minimise the risks. Such mining activities are a
common issue when operating in developing countries that are rich in natural resources.
Since 2009, Katanga, our mining operation in the DRC, has been operating in a complex mining area
alongside other concession owners. There are many artisanal and small-scale mining activities near
Katanga mining concessions, mainly around old stockpiles. Katanga does not have the right to
manage these stockpiles nor can it prevent these miners from accessing them, as the land on which
the stockpiles stand does not form part of Katanga’s concessions.

Sustainability Report 2010 | 53

7 | Communities

Minara, Australia
Supporting local indigenous communities
Minara is committed to supporting local indigenous communities, with a range of initiatives
that cover education and training, economic
development and the protection of indigenous
culture and heritage.
Minara provides support for young indigenous
people to access educational opportunities. A
scholarship programme enables students to
pursue tertiary education through pre-tertiary
placements in residential boarding programmes
at Perth’s leading schools. Support may extend
to accommodation and related costs at university residential colleges. The company also
recognises that most local indigenous children
attend local schools, so in 2010 it contributed
to uniform programmes, nutritional education
and school events at individual local schools.
Minara actively supports indigenous employment opportunities through a pastoral training and employment programme, developed
in consultation with local indigenous stakeholders; this provides a number of entrylevel positions. The company also engages
various indigenous-owned businesses to provide services at Murrin Murrin.

When the Murrin project began, Minara created the Murrin Murrin Aboriginal Environmental
Liaison Committee; this includes Minara community officers, indigenous representatives
and government and agency officials from
the region and Perth. Consultations provide
information on environmental compliance,
sustainability reporting, pastoral updates and
proposed new mining activities. The committee is also a forum to discuss new employment
and training opportunities.
The company also established the Minara
Community Foundation in 2007 to support the
people of the northern goldfields in the long
term. During 2010, grants included contributions to a transport programme to provide
improved access to local townships, and to
an Aboriginal media corporation, to provide
a radio station for indigenous communities.
Additional funds were given to the Laverton
Leonora Cross-Cultural Association to assist
with various services for local indigenous

7.5 | Economic development
7.5.1 | Employment
The essential commodities that we produce and market from natural resources are often part of
long value chains that provide many families with employment and other resources. Our competence in commodities trading, placement and logistics contributes significantly to these value
chains, ensuring secure supply and offering small commodities producers access to global markets.
When examining the economic impact of our industrial activities in our host countries, one of the
most obvious effects is the employment we create. Our direct and indirect employment requirements provide income for numerous families, demand workers with all levels of qualifications and
offer individual challenges and opportunities.
This is highlighted by comparing the number of employees working in Glencore’s marketing
activities (2,772 in 2010) with the number in our industrial activities (54,884). For example, Kazzinc
in Kazakhstan is one of the country’s biggest employers – and the largest in east Kazakhstan – with
approximately 24,300 employees.

54 | Sustainability Report 2010

7 | Communities

Of the 599 managers at our industrial operations, 77% are local people.
But direct employment is only one element. In 2010 our industrial activities required 22,494 contractors and seasonal workers. Our use of local suppliers also provides indirect employment, which
is especially significant in rural or remote locations. In 2010 we worked with 2,534 third-party suppliers at our industrial mining operations, representing a procurement value of USD 1,505 million.
Our agricultural division collects the harvest of many smallholders and family-owned businesses,
who therefore benefit from our extensive infrastructure of silos and port elevators, our trading,
market placement and logistics expertise, and our access to export markets.

Mopani, Zambia
New skills for retired miners
The retirement age in Zambia is 55. As
Mopani's retired miners are relatively young
and eager to continue working, and recognising the opportunity to assist retired miners to
develop skills in agriculture, Mopani established the Makumbi farm project in Mufulira.
Acquired in 2004, this 1,300 hectare farm plot
has been managed as a project for 106 former
employees and their families. The retired miners and their families were provided with an
opportunity to learn farming skills (under the
supervision of a farm manager until August
2010) and take ownership of a viable opera-

tion. Mopani has provided agricultural equipment (including tractors and irrigation equipment) and consulted with an agronomist on
the most effective crops and farming methods
for the area. The farm, which is run as a cooperative, now produces maize, fruit, poultry
and dairy and has proved to be a sustainable
project, which Mopani continues to support as
and when required.
This group has not only developed new skills
in a farming discipline of its choice, but has
also established an additional food supply and
source of income for its families.

7.5.2 | Infrastructure
Through our mining activities we make significant investments in equipment and infrastructure,
which benefit the surrounding communities. See the feature on Katanga in DRC earlier in this
chapter to see how our activities can add to the development of local infrastructure.
Our local mine managers constantly seek out the combination of measures that will help their local
communities most effectively; they follow the general principle of enabling, not simply donating.
Major expenditure on the productive infrastructure of our host countries creates the basis for further
wealth generation and represents our long-term commitment to the surrounding communities.
7.5.3 | Charitable contributions and sponsorship
In addition to our large-scale community programmes, Glencore also actively makes donations and
provides sponsorship. Our people may make charitable donations in Glencore’s name for bona fide
purposes (ie to a charitable or not-for-profit organisation for which no tangible benefit is received, or
expected, by Glencore). This must be in accordance with all applicable laws and regulations.
We believe that charitable contributions and sponsorship should never be used as a substitute for
political contributions. Guidance on Glencore’s policy towards charitable contributions is given
in our corporate ethical guide.
In 2010 Glencore International AG gave USD 9 million in charitable donations and sponsorship
across the group.

Sustainability Report 2010 | 55

7 | Communities

7.5.4 | Taxes and royalties
These are the direct annual cash contributions we make to the governments of the host countries
where we operate. They are substantial and often represent a significant source of income for our
host countries. The level of tax and royalty payments is determined by the responsible national,
regional or local government.
We have no influence over whether the taxes and royalties paid to governments are reinvested by
them into our local regions. We are aware of, and welcome, interest in increasing the transparency
of how taxes and royalty payments are redistributed or reinvested into the communities in which
we operate.
Glencore is a supporter of the Extractive Industries Transparency Initiative (EITI); the EITI candidate countries in which we operated during 2010 were the DRC, Zambia, Kazakhstan and
Peru. We believe that transparency in the disbursement of our direct economic contributions
is important, both for us and for those who receive them. This will allow these payments to be
redistributed and invested with maximum efficiency and effectiveness.
In 2010 our metals & minerals assets received no material government grants.

Figure 9: Economic value added by Glencore industrial activities †







(USD million) (USD million) (USD million) (USD million) (USD million) (USD million)

Economic value generated

1 682

3 367

3 686

1 030

1 005

10 771
8 839

Economic value distributed
1 384

2 646

2 990

1 079


Employee wages

Operating costs







Payments to capital providers







Community investments
Net economic value retained/added
before taxes and capital investment
Payments to governments
(taxes and royalties)
(as percentage of value retained
before tax)
Capital expenditure
Economic value retained






– 116



– 124

– 52
















1 360

– 582

– 130

– 311

– 170

– 238

– 1 432

Does not include our oil assets
* Asia includes Kazakhstan, the Russian Federation and the Philippines
** Revenues include sales and other income

56 | Sustainability Report 2010

7 | Communities

7.6 | Lobbying
Anyone who lobbies on Glencore’s behalf must comply with all applicable laws and regulations
(including but not limited to those relating to registration and reporting). Guidance on ­Glencore’s
policy towards lobbying is given in our corporate compliance programme.

IT room and computers donated to the El Cruce New School in Colombia by Prodeco, via their Calenturitas

Sustainability Report 2010 | 57

Exporting coal at Prodeco's harbour, Santa Marta, Colombia

Commitment to
the environment

Our GCP commitment states: “We acknowledge that our global operations,
including exploration, production, reclamation, processing, transportation
and marketing of natural resources, could have a direct, indirect or cumulative impact on the environment. The impact on the environment is often
complex and specific to each commodity group or production site, which
requires that our environmental programmes be tailored to their specific
“In order to manage and limit the environmental impact of our activities, we identify the associated risks at each stage of our supply chain. To
achieve effective short and long-term management, we develop, implement and monitor management systems and programmes in order to meet
international best practice standards and ensure regulatory compliance.
We aim to continually improve performance by setting ambitious goals.
“Furthermore, we participate in a range of supply chains with environmental impacts which are not under our direct control or influence. In this regard, we aim to promote environmental awareness and to partner with our
customers, suppliers and service providers to limit the overall impact along
the entire supply chain.”

Sustainability Report 2010 | 59

8 | Environment

8 |
Glencore’s diverse operations, whether undertaken by our industrial or marketing activities, have
the potential to make an impact on the environment.
We believe that it is vital to identify the associated risks at each stage of our supply chain if we are
to manage and limit the environmental impact of our activities. We have extensive programmes
and management systems in place; and we aim to continually improve our performance wherever
Most of the environmental issues that affect us are best addressed at a local level. Glencore Corporate Practice (GCP) provides our group-wide requirements for good practice in environmental
management. These requirements are implemented by each of our operations in such ways as
best fit their specific circumstances, but overall they require us to:
1. Identify, assess and monitor all environmental impacts
2. Monitor and comply with all national and international regulatory requirements
3. Implement adequate environmental management programmes and controls
4. Provide competent staff and sufficient resources for environmental management
5. Involve contractors and service providers where necessary
6. Implement programmes and targets to continuously improve the efficient use of resources,
protection of biodiversity, climate change impact and pollution prevention (by addressing the
management of fresh and waste water, waste and air emissions and the rehabilitation of land)
7. Track and assess actual performance
We try to optimise the use of materials and energy wherever possible.
In addition to our environmental responsibility for our own activities, we participate in a range
of supply chains whose environmental impacts are not under our direct control or influence. For
example, we use third-party services for maritime shipping of products by voyage charter and for
storing our goods in warehouses or tank farms.
We aim to work in partnership with our customers, suppliers and service providers to promote
environmental awareness and limit the environmental impact along the entire supply chain.
Figure 10: Raw materials used in processing activities

Ore to ore concentrates

(1 000 tons)

(1 000 tons)

(1 000 tons)

19 349

16 649

18 775

Ore directly to metals

3 436

3 729

4 219

Ore concentrates to metals

3 397

3 208

3 390

Bauxite to alumina

3 164

2 627

2 777

Secondary materials to metals

2 167

1 905

1 645

Seeds to crusher

1 567




Vegetable oil to biodiesel*
* Glencore had no investment in biodiesel businesses during 2008 and 2009

60 | Sustainability Report 2010

8 | Environment

Figure 11: Consumption of process materials

Chemicals used for ore processing

(1 000 tons)

(1 000 tons)

(1 000 tons)

1 350

1 287

1 269

Reductants used for smelting




Chemicals used for metal refining












Chemicals used for biodiesel production*


Chemicals used for waste / water treatment




Solvents used in vegetable oil production








* Glencore had no investment in biodiesel businesses during 2008 and 2009

Approximately 1% of our input items consist of recycled materials.
In 2010 we incurred four significant 6 environmental fines with a total monetary value of approximately USD  780,000. These related to encroachment (infringement on protected land) and a
three-day interruption in the licence to operate at one of our production sites in Kazakhstan (this
covered emissions, water discharge and tailings disposal).

8.1 | Land management
The management of land-related issues is of particular importance to Glencore as an organisation
involved in both mining and farming.
8.1.1 | Mining
All mining operations, whether underground or open-pit, have an impact on the local landscape.
This makes land management a complex process that affects the entire lifecycle of a mine. The
challenge is to optimise productivity and operating costs while having the least possible impact
on local communities, biodiversity and the landscape.
We minimise our environmental impact by removing as little topsoil and vegetation as possible,
and by rehabilitating areas as soon as possible after our activities have ceased. Usually the topsoil
and clay are excavated and used on a newly rehabilitated area or carefully stored separately.

Figure 12: Distribution of Glencore mining assets (2010)



Latin America

Glencore considers a fine to be significant when it exceeds a monetary value of USD 10,000.

Sustainability Report 2010 | 61

8 | Environment

Each of our industrial mining sites implements a land management plan, created by local operational management and approved by the local competent authorities. Plans are developed
specifically to suit the geographical location, any nearby protected or high biodiversity areas
and the activities at the site, as well as local regulations. They may include environmental impact
assessments and biodiversity baseline studies to determine and minimise impact and contribute
to the conservation and restoration of biodiversity. This involves the collection of plants and
seeds and their cultivation in nurseries as well as the relocation of wildlife.
We aim to avoid the loss of any International Union for Conservation of Nature (IUCN) Red List
threatened species.
One of our sites is located near part of the Colombian forest reserve called Serranía de los
Motilones. Leasing this area means that approximately 0.7% of our land lies close to protected
areas. In addition, less than 0.1% of our land is within or close to areas of high biodiversity value
(outside protected areas), as defined by the local national governments

Figure 13: Mining land owned, leased and managed

Type of land
Total land owned, leased or managed
Total land under rehabilitation
Total land disturbed
Land with high biodiversity value
Land close to or within protected areas




383 428

375 995

436 730

1 307

1 617

1 982

16 351

17 035

21 035




2 864

2 864

Our mining operations develop plans for closure that depend on the expected life of each mine
and requirements arising from the relevant licence to operate. They make estimates of costs
for future restoration, rehabilitation and decommissioning that necessarily include assumptions
regarding the circumstances of closure (future regulatory framework, the timing of the closure
and rehabilitation activities).

Figure 14: Balance of land management for mining assets

Land newly

Land newly

Land disturbed
(closing balance)


Land disturbed
(opening balance)


16 351


17 035


17 035

4 087


21 035

Biodiversity is an important issue for Glencore, as any mining operation will necessarily have an
impact on the biodiversity of the surrounding area. These impacts may be direct (eg from land
clearing) or indirect (including noise or air emissions). Each of our sites has its own individual
set of issues, although our operations are predominantly in brownfield sites, which have a lower
impact on biodiversity than greenfield operations. If one of our sites has a biodiversity concern,
our specialists undertake to mitigate the problem, as exemplified in the following feature on
Prodeco in Colombia.

62 | Sustainability Report 2010

8 | Environment

Prodeco, Colombia
Calenturitas river diversion project
Prodeco relocated 6 km of the Calenturitas
river to reach 77 million tons of coal. The Colombian Ministry of Environment approved
the environmental management plan. This
included risk assessments on environmental
issues, uses of natural resources, and social
impact, as well as extensive consultation with
the local community.
The maximum, average and minimum flow
rates of the Maracas, Tucuy and Calenturitas

rivers were considered, along with models of
return periods, rain regimes and surface waters.
This diagram shows the previous river route
(solid blue lines) and the relocated position
(dotted lines). Prodeco constructed lateral
dykes and impermeable clay barriers to avoid
flooding and seepage, and disturbed as small
an area as possible and rehabilitated both
sides of the relocated river immediately upon

Sector A Río





Río Tucuy





Zona de

Sector C

Río Calen

Original and relocated paths of the river Calenturitas

The diversion design preserves the river’s
meanders and bends, to help flora and fauna
settle and minimise erosion. Prodeco constantly
collects, monitors and analyses data on water,
solids and morphology to ensure the project’s
long-term success.

Prodeco replanted a wide range of native tree
species along the new route to create an appropriate forest habitat; 20 hectares were restored
with more than 14,000 trees.

Fauna and flora restoration
The environmental management plan included
a programme for the rescue and relocation
of fish: 13,000 from 13 families and 29 species
were relocated. The most represented family
was Loricariidae and the most prevalent by
mass was Curimatidae (1,227 kg). More than
100,000 new bocachico were stocked in the
Ciénaga La Pachita.
The new river course during the rainy season:
confirming design parameters

Sustainability Report 2010 | 63

8 | Environment

8.1.2 | Grain farming
In 2010, Glencore owned (or part-owned on long-term leases) about 270,000 hectares of land.
Our farming assets are mainly concentrated in the CIS, Australia, Paraguay and Argentina. These
locations enable our agricultural division to source its products at local prices, provide valuable
information on the expected crop yields and build closer relationships with other farmers in the

Figure 15: Glencore farming land by location (2010)


Latin America

Our farming operations are located in regions with a long tradition of agriculture, which means
that none of our farm land is located near protected or high biodiversity areas. Our port in Russia
is technically in a protected area; according to the Russian Water Code, every coast must have a
protection belt of 20 m, making the bank of the river Don a protected area.
We use precision agriculture technology and our farming units receive regular in-house and external
training on good practice.
We constantly strive to improve the quality and productivity of our farming assets. We are currently
exploring the use of minimum tillage and no-till technologies that are less harmful and have less
negative impact on the soil.
Our overall aim is to ensure that our arable land is productive over the long term and minimise
our environmental impact.
8.1.3 | Environmental incidents
Glencore’s ultimate aim is to eliminate all significant environmental incidents, and consequently
also any environmental fines, penalties or prosecutions.
Our GCP reporting systems classify environmental incidents to measure their significance, track
remedial responses, and learn from them.

Incident Classification
Class A: major
Class B: moderate
Class C: minor
Near miss incident

Incident or spill with a major environmental impact that has a long-term effect reversible only
by long-term remediation with aftercare
Incident or spill with a significant reversible environmental impact requiring remediation but
not necessarily aftercare
Incident or spill with a minor reversible environmental impact requiring minor to no remediation with no aftercare
Incident that under slightly different circumstances could have caused illness, injury or damage
to individuals, assets, the environment or company reputation, but did not

According to this reporting framework, 297 incidents were reported in 2010, of which none were
classified as major, 11 as moderate and 286 as minor. Furthermore, we experienced 137 NMIs.

64 | Sustainability Report 2010

Precision agriculture

All the resources added,
work performed and
technologies applied to
our agricultural land are
recorded electronically. We
use precision agriculture
technology, a sophisticated
system that allows our
agronomists to optimise
the chemical mix of our
fertilisers, pesticides and
herbicides. This means we
can use the most efficient
application rate for each
piece of land and reduce
the use of these chemicals.

8 | Environment

In total there was a 2,436 m3 volume of spillages. All spills were cleaned up appropriately, and all
the incidents were investigated fully.
The NMI reporting element is to promote a better understanding of the conditions that can
lead to incidents that damage the environment. Over the coming years we will use this reporting
system to systematically develop a group-wide understanding of how environmental incidents
occur and how they are best prevented.

Rio Vermelho Acucar e Alcool, Brazil
Production of sugarcane ethanol

Sugarcane ethanol is the most efficient biofuel
currently available; the US Environmental Protection Agency estimates it to produce 61%
fewer emissions than gasoline.
The plant is in the west of São Paulo state. The
agricultural land used for the plant’s sugarcane
is within the areas permitted under Brazil’s
proposed agro-ecological zoning (over 2,500
km from the Amazon rainforest).
To demonstrate commitment to good agricultural practice, Rio Vermelho is a voluntary
signatory of the “Protocolo Agroambiental”,
a protocol initiated by the Brazilian sugarcane
industry association (UNICA) and the state
government of São Paulo. One of the protocol’s requirements is replacing manual sugar­
cane cutting with mechanical methods, to
prevent the burning of sugarcane straw. Rio
Vermelho plans to increase mechanical sugarcane harvesting to 70% of harvest in 2011, and
to 100% by 2012. This will enable the plant to
meet protocol requirements well in advance of


the 2014 deadline. As well as being more environmentally friendly, this will eliminate labourintensive manual harvesting.
Vinasse (a by-product of ethanol distillation)
and residual water from processing are both
used in fertirrigation, 7 reducing the use of
chemical fertilisers and water. Filter cake (from
the sugarcane juice filtering) and boiler ashes
are both used as organic fertilisers.
The plant’s bagasse (a by-product used as
a biofuel) production currently supplies Rio
Vermelho’s energy requirements. As capacity
increases, any excess bagasse will be used to
produce additional electricity, which will be
sold to Brazil’s national grid.
2,000 km

Glencore recently acquired a majority stake
in ethanol producer Rio Vermelho Açúcar e
Álcool. We plan to increase crushing capacity
over the next four to five years, diversifying the
current product line (hydrous fuel ethanol) to
multiple products including hydrous and anhydrous ethanol, sugar, and electricity (from


Amazon rainforest


2,500 km

Rio Vermelho plant



Sources: NIPE-Unicamp,

Sugarcane-producing regions in Brazil

 n agronomic practice that provides precise timed and spaced supplies of fertilisers and other chemicals during
crop irrigation. It reduces disturbance of the land being farmed and associated labour requirements.

Sustainability Report 2010 | 65

8 | Environment

8.2 | Water
All our business divisions have a special dependency on water. It is a critical input for our metals & minerals and agricultural businesses. In addition, we ship millions of barrels of petroleum
products and crude oil over maritime waters, along coastlines and through inland waterways.
This means that two of our key sustainable development challenges are protecting maritime and
inland waters and maintaining access to high-quality water.
Water reuse or recycling, the efficient use of water, responsible waste water disposal and ensuring
the integrity of any equipment that may pose a hazard to water quality are high-priority activities.
This includes interaction with our local communities, to understand their collective interests
regarding their water needs and the preservation of sources of fresh water.
8.2.1 | Marketing
Here, our concerns centre on maintaining the quality of the bodies of water that we use during transportation. This is of particular relevance for our oil business, as our own fleet and our
chartered vessels transport our products across oceans, around coastlines and along waterways.
It is vital that we take precautions to minimise any spillage that might occur in the event of an
accident during transportation. In 2010, all vessels in the oil division’s time charter fleet were
double-hulled, as were all of the vessels we owned. Together, these represented 40% of our oil
product shipping capacity.
Voyage-chartered vessels are always vetted for safety assurance as per our chartering standards
before each use. All hydrocarbon-carrying time charters participate in our assurance programme
for structural integrity.
Our next most important priority is to ensure that our service providers take a sustainable
approach to managing our vessels and product storage facilities.
We require all tank-cleaning activities to comply with the OCIMF/ICS International Safety Guide
for Oil Tankers and Terminals (ISGOTT). The waste water from washing tanks must be handled
and dealt with in strict compliance with MARPOL 8 regulations. Before tank cleaning is undertaken,
providers must carefully consider factors such as the cargo history, the vessel’s construction and
equipment, the availability of resources and the experience of the cleaning supervisor. This is an
important quality procedure to avoid cargo contamination.
All those managing our time charter and owned vessels must have a class-approved ballast water
and sediments management plan and follow it strictly. They must maintain records of all ballast
water exchanges in accordance with the current Ballast Water Management (BWM) convention
and comply with any country-specific requirements.
8.2.2 | Industrial
Water management for our mining and agricultural activities involves the efficient management
of fresh and process water (ie water that has been used by our operations). This includes water
reconditioning and reuse, and the treatment of waste water before discharge into public sewers
or surface water. Treatment can include the removal of heavy metals, suspended solids and oils
and greases, as well as pH neutralisation.
These factors pose a particular challenge for our metals & minerals activities, as their processes
are water-intensive and also involve managing complex water balances.
As with most of our environmental issues, we take a local or regional approach to water management, due to the wide variation in our operations’ water requirements and the diversity of their


MARPOL is the International Convention for the Prevention of Pollution from Ships 1973.

66 | Sustainability Report 2010

SIRE protocol

The Oil Companies International Marine Forum
(OCIMF) Ship Inspection
Report Programme protocol
is known as SIRE. SIRE
specifically addresses concerns about sub-standard
shipping and is the most
significant safety initiative
accepted across the oil

8 | Environment

geographical environments. Each site tailors its water management plan to local circumstances,
which in turn helps us to build better relationships with other water users and maintain our licence
to operate.
The range of initiatives carried out by our mining operations is represented by the following

Oil shipping activities
Time charter assurance programme for structural integrity
To ensure the integrity of our time charter
fleet, each tanker is screened before use, in
accordance with our chartering standards. The
screening covers key safety and environmental
concerns for each vessel, ie age, type of hull,
flag, class, latest class status report, Port State
Control (PSC) 9 record, oil major inspection
record, the manager’s history and record, intended trade, incident record, the ship’s P&I
(insurance) association, and status of compliance with legislation and regulations.
Our chartering standards are in line with industry practice and any specific requirements
of the oil majors; we review both regularly and
update our standards accordingly.
During the period of charter we monitor PSC
records, vetting records (SIRE inspection
reports) and any incidents that may occur. In
addition to the standard SIRE inspections, our
experienced mariners select vessels for further inspections. These provide constructive
feedback to each ship’s crew and managers
for continual improvement and are conducted
according to the SIRE protocol. Our mariners

Oil shipping product tanker

also visit ship managers’ offices to ensure that
they meet our standards and follow best practice in accordance with TMSA (Tanker Management and Self-Assessment). 10
Our mariners carry out an annual TMSA audit
on each manager of the vessels that we own, in
addition to the oil majors’ TMSA audits.

 SC is primarily responsible for inspecting vessels in national ports to ensure they comply with international
safety regulations, and for ensuring that seafarers operate in a safe working environment.
The TMSA programme helps ship operators to improve and measure their management systems, encouraging
them to assess their safety management systems against listed performance indicators.

Sustainability Report 2010 | 67

8 | Environment

Petroleum storage terminals
Quality control process for new and existing terminals
All new terminals are built to internationally
accredited standards (API 650), 11 with safety
as the main priority. Our team of in-house engineers is actively involved at every stage of a
new build project, from design to commission.
As part of the control process, they liaise closely with the project engineering team, make
regular site visits and meet with contractors.
Our control measures are designed to comply
with all applicable safety and environmental
requirements, and include:
‚‚ A front-end engineering design (FEED)
study for all new builds, plus geotechnical
and environmental studies

‚‚ Tanks built on solid foundations
(with piling as required)
‚‚ Tank safety features that include leak
detection (in both the tank bottom and the
membrane below), pressure relief valves
and flame arrestors
‚‚ Fixed tank roofs and internal floating roofs
for higher vapour products
‚‚ Insulated tanks for heated products
‚‚ Vapour recovery units to control any
vapour release to the atmosphere
‚‚ Firefighting systems, including deluge
(water) and foam
‚‚ Oil and water separation systems for collection and purification of all residual water
‚‚ The latest inventory control technology

Chemoil, a global company
Health, safety, security and environment (HSSE) standards

Terminal in Fujairah, UAE

Chemoil’s HSSE policies emphasise continuous
improvement and encourage all staff to contribute to the best possible practice. Chemoil’s
terminals are constructed to incorporate the
best available technology, for efficient operation, safe turnaround and maximum throughput with the minimum possible environmental
impact. Designs are based on Chemoil’s operating experience and comply with safety and
environmental legislation. Terminals conform
to industrial, local and international regulations by using:
‚‚ Regular safety meetings and Health &
Safety inspections
‚‚ Internal inductions, drills, exercises and
training for all employees


HSSE drill

‚‚ Oil booming of vessels within terminals to
contain any oil spills
‚‚ Fire, pollution and security drills
‚‚ Safety initiative incentives for employees
‚‚ Ship vetting according to OCIMF guidelines
‚‚ Waste water sampling and analysis to
ensure efficient oily water separation
‚‚ A
 ppropriate personal protective equipment
and training for all employees
‚‚ Dialogue with employees to achieve a
safer and healthier workplace
‚‚ Accident investigation to determine root
causes and help prevent future incidents
Chemoil’s HSSE policies have ensured zero accidents, injuries, pollution or lost time injuries
across the operation for 2009 and 2010.

 PI Std 650: Welded Steel Tanks for Oil Storage is a standard from the American Petroleum Institute that
establishes minimum requirements for material, design, fabrication, erection and testing of storage tanks for
petroleum, petroleum products and other liquid products.

68 | Sustainability Report 2010

8 | Environment

FEATURE: Aguilar mine, Argentina
Treatment of tailing dam decant water
With regard to treating effluent before
discharge, management at the Aguilar mine
investigated several alternatives in collaboration
with the relevant administrative authorities, in
order to adapt to changing local regulatory
requirements. They selected a reverse osmosis
process as it guaranteed that the parameters
under consideration would be within the limits
laid down by regulations.
The process involves three steps: filtration of
larger particles; ultrafiltration to remove the
finer particles (solids in suspension); and finally
reverse osmosis, which removes the dissolved
metals and anion salt added as part of the concentration process at the mine concentrator.
The effluent treatment plant has a computerised system that automatically monitors and
controls discharge quality.

Reverse osmosis plant

Murrin Murrin Operations (Murrin), Australia
Murrin heap leach

New Murrin heap leach facilities

Murrin’s full-scale commercial heap leach operation was commissioned in 2007 and fully integrated with existing facilities. This allowed
production of both nickel and cobalt metal directly from heap leach facilities, and has led to
a number of significant operational improvements.

Murrin’s previous nickel recovery rate from
run-of-mine (ore in its unprocessed, as-mined
state) was around 79%. The heap leach treats
mill scats, which were previously discarded as
waste, boosting nickel recovery by approximately 5%, to a total of 84%. Murrin can also
use heap leach residue to backfill old mining
pits and voids. Heap leaching also has lower
operating costs and consumes 50% less water
per ton of product than standard high-pressure
acid leach (HPAL) production, a figure further
improved by using recycled effluent water. This
is particularly significant as the operation is in
an arid region. The water requirement reduction is derived from recycling the acid used and
reducing the necessary neutralisation steps;
this not only consumes less of the required neutralising agents, but also produces less CO2.
The heap leach at Murrin has generated over
5,000 tons of nickel and 350 tons of cobalt to
date, in a safe and efficient manner.

Sustainability Report 2010 | 69

8 | Environment

In 2010, the total volume of water withdrawn by our industrial activities for metals & minerals and
coal products was 300 million m3.

Figure 16: Metals & minerals and coal water withdrawal, by source
160 000

Thousand m3

120 000

80 000




(thousand (thousand (thousand

40 000



Ground Rainwater


water from
3rd parties

Surface water
Ground water
Rainwater collected
Public water supply
Waste water from 3rd parties

145 801
97 784
3 930
32 143
2 101

147 382
100 410
4 321
36 556
4 198

147 858
106 200
6 252
35 896
3 895

Furthermore, we recycled 309  million  m3 of water in our production processes (compared with
294 million m3 in 2009 and 301 million m3 in 2008). This means that on average we have reused our
water 2.1 times.
In total we discharged 147 million m3 of treated waste water to inland water courses.

Figure 17: Total load within waste water from metals & minerals and coal
16 000


12 000
8 000
4 000




Total suspended solids
Biological oxygen demand (BOD)

12 874
1 436

15 623
3 496

9 510
3 866

NB: Data from one mining asset is not included as the waste water management and treatment were in the process
of being technically upgraded during 2010

Our agricultural division’s farming activities used 45 million m3 of water for irrigation in 2010, while
our biodiesel facilities, crushing plants and logistics facilities consumed 942,000 m3.

Monitoring ground water at Minara, Australia

70 | Sustainability Report 2010

8 | Environment

Kazzinc, Kazakhstan
Water recycling at Zyryanovsk and Ridder concentrator plants
One of Kazzinc’s objectives is to improve
the process water recycling system and so
minimise intake from natural water sources
and reduce effluent discharge. Kazzinc’s water
consumption is mostly used by ore processing:
the concentrators at Zyryanovsk and Ridder
each use around 80,000 m3 per day.
Installing water recycling systems at these concentrator plants led to a significant improvement in the quality of local river water, which
had previously been affected by discharge
from their tailing dams. The recycling systems
now include ponds for water sedimentation
and the settling of solids, plus biological water
purification to remove metals and other components, after which the treated water is returned
to the concentrators.
Kazzinc has water quality monitoring stations
at the rivers and observation wells around
their concentrators, tailing dams and biologic­
al ponds to monitor, analyse and forecast any
alterations in the recycling system’s water
balance. These stations measured a significant
reduction in the impact of effluents, with river
water now complying with the highest fishery
water standards.
The Ridder concentrator water recycling system started work to modify the tailing dam

Sedimentation pond

beach deposition process in 2010. Zyryanovsk
concentrator’s water recycling system was implemented in stages, from reconstruction of
the tailing dam in 2005/06 to the elimination of­
over-the-surface drainage to the water basin
and interception of underground drainage
from the tailing dam in 2009.
While these projects were commenced a number of years ago, there are still ongoing major
improvements taking place, with benefits still
being seen today.

8.3 | Energy
Glencore’s energy consumption comprises a mix of direct (including fuel oil, gasoil and natural
gas) and indirect (mostly electricity bought from external suppliers) energy use. Our different
business segments and marketing activities have a wide variance in energy requirements, due to
the difference in the work they undertake.

Figure 18: Total direct and indirect energy use






Indirect energy
Direct energy




Sustainability Report 2010 | 71

8 | Environment

Figure 19: Energy use by business segment (2010)
4% 4%



Agricultural products
Marketing activities
Metals & minerals
Energy products

8.3.1 | Marketing
Our marketing activities’ energy consumption mainly takes the form of the maritime fuel oils used
to drive approximately 300 time charter and 40 owned vessels, which transport our oil, grain and
coal. 12
We do not report energy consumption for other transportation activities, such as maritime transportation by voyage charter, inland waterway shipping and truck or rail transportation. This is
because we primarily use third-party services, which do not fall within our reporting boundaries.
We are currently observing the increased transparency in energy efficiency reporting for vessels
closely. As these initiatives progress, we will evaluate the extent to which they can be used to assist
in reducing the overall energy consumption of our transportation activities.

Figure 20: Maritime bunker fuel consumption


60 000
45 000
30 000
15 000




Bunker fuel

46 288

50 097

59 122

Our bunker fuel consumption has increased in line with our business expansion.
8.3.2 | Industrial
Our engineers’ main day-to-day objectives are to make our operations as energy-efficient as
possible and to maintain security of supply. This is especially true for our energy-intensive metallurgical operations.
Overall, 9% of Glencore’s direct energy consumption comes from renewable sources, mainly
from our hydropower station in Kazakhstan (see also section 8.5: Environment: greenhouse gas
emissions). When contributions from maritime shipping are excluded from consideration, the
percentage of energy from renewable sources rises to 21%; this in principle represents the energy consumption of our land-based operations.


 etals & minerals are not included as this division uses only third-party voyage charter vessels, which are
excluded from this scope.

72 | Sustainability Report 2010

8 | Environment

Figure 21: Direct energy consumption by source, including Scope 1 maritime shipping (2010)





Natural gas
Oil products
Reductants and others
Renewables (hydropower, etc)

Figure 22: Direct energy consumption by source, excluding maritime shipping (2010)



Natural gas
Oil products
Reductants and others
Renewables (hydropower, etc)


In 2010, our indirect energy consumption was approximately 40 petajoules.
According to the information available to us, about half of that indirect energy use (approximately 19 petajoules) was generated from renewable sources, which include hydro and geothermal
power stations.
We estimate that to supply the other 21 petajoules, generated from non-renewables, our electricity suppliers used approximately 59 petajoules of primary energy. This is calculated by taking
the global average efficiency of electricity production from fossil fuel to be 36%. 13

Figure 23: Indirect energy consumption by source (2010)





Worldwide Trends in Energy Use and Efficiency, International Energy Agency, 2008.

Sustainability Report 2010 | 73

8 | Environment

Equatorial Guinea, West Africa
Offshore oil and gas exploration and production
Glencore has non-controlling equity stakes in
four oil and gas production-sharing contracts
based in offshore Equatorial Guinea, where
exploration and appraisal drilling has uncovered significant oil and gas reserves since
2005. The two development fields are operated by Noble Energy Inc.
The Aseng field is under development, with
first oil expected in early 2012. This will comprise a sub-sea tieback of production wells to a
fixed floating production, storage and off-take
vessel (FPSO) with oil export by tanker. At its
peak, Aseng’s expected production is 50,000
barrels of oil a day. The project is subject to
Equatorial Guinea’s environmental regulations,
including many international treaties and conventions for oil and gas operations, eg the UN
Framework Convention on Climate Change,
the Kyoto Protocol, MARPOL and the London
Convention, 14 as Equatorial Guinea is a signatory of these treaties.
An environmental impact assessment (EIA) has
been undertaken on the physical, biologic­al
and socio-economic environment, assessing
the nature and magnitude of impacts and developing mitigation measures that include:

‚‚ Air discharges: emissions from engines,
generators, compressors and turbines to
undergo air quality reviews that follow best
practices in the Gulf of Mexico and comply
‚‚ FPSO operations:
– Planned discharges must comply with
– O
 il concentration in water discharged from
machinery restricted to 15 ppm ­maximum,
with an alarm to ensure this is not exceeded
– A system to collect produced water (water removed from oil during processing)
and remove crude oil, with oil concentration in discharged water not to exceed
42 mg/l in any one day, or an average of
29 mg/l over any 30 days
‚‚ Waste disposal: the types, volumes and
management/disposal techniques employed to be tracked and documented,
with all discharges to comply with MARPOL
During development and operation many environmental performance indicators will be
measured and reported and all activities will
be subject to regular environmental audits to
ensure compliance with all applicable laws,
guidelines and standards.

8.4 | Air emissions
8.4.1 | Marketing
Our marketing activities’ sulphur dioxide (SO2) and nitrogen oxides (NOX) emissions originate mostly
from transport.
For our industrial activities, regulations usually require individual permits that specify applicable
limit values for sulphur emissions. In contrast, regulations for transport are generally fuel derived
and controlled by monitoring the input of sulphur into fuel oil supply chains, as opposed to endof-pipe technology such as scrubbers.
For example, our maritime SO2 emissions are regulated via maximum sulphur content levels for
different fuel types. The general limit is currently around 4.5%; it will be regulated by MARPOL
from 2012 and reduced further throughout this decade. In addition, the North and Baltic seas are
emission control areas with a further limit of 1.0%, while the EU limit is 0.1% while in port. Similar
limits will come into effect for the waters 200 miles off USA and Canada on 1 August 2012.
Based on the fuel oil consumption for our oil, coal and agricultural businesses, and the mix of high and
low sulphur fuel oil consumed during operations, we calculate that we emitted 70,261 tons of SO2 in
2010. At the same time, our shipping activities released a calculated 110,793 tons of NOX.

 he Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 (the London
Convention) is one of the first global conventions to protect the marine environment from human activities,
promoting the control of all sources of marine pollution.

74 | Sustainability Report 2010

8 | Environment

Figure 24: SO2 and NOX emissions from maritime shipping
100 000


80 000
60 000
40 000
20 000





54 827
86 750

59 396
93 892

70 261
110 793

8.4.2 | Industrial
Glencore local operations managers and environmental specialists regularly assess our air emission
performance. They co-operate closely with relevant authorities and local communities to find the best
ways to lower their impact on the surrounding communities and to stay within permissible emission
The air emissions most relevant to our industrial activities are SO2, dust or particulate matter (PM)
and to a lesser extent NOX. At our metallurgical smelters SO2 and PM are typically emitted as either
stack or fugitive emissions. Stack or point emissions emanate regularly from a fixed source (such as a
flue, chimney or stack) and are therefore generally measurable. Fugitive emissions emanate irregularly
from many diffuse sources, such as gas leakage from equipment, and, in the case of PM emissions, the
movements of trucks and machinery in dusty areas.
Stack emissions are predominantly controlled by capturing exhaust gas as it is emitted and undertaking mechanical filtering and/or exhaust gas treatment.
For our mining activities, fugitive PM emissions are considered most relevant. These are caused by the
blasting, excavating, moving and crushing of ore rock, or the removal of topsoil, overburden or waste
rock. Stationary filter equipment cannot eliminate them due to their fugitive nature. Instead, each
operation undertakes a range of different initiatives to minimise emissions, including regular spraying
of mine access roads, stockpiles and mining areas (mostly with recycled water).
The combustion engines of our land-based mobile machinery (excavators, off-road trucks, generators,
etc) emit SO2, NOX and PM.
The local conditions for each operation determine the best way to reduce its air emissions and
manage mitigation programmes. In some cases this might involve significant investments in new installations or technical upgrades of existing plant to include integrated environmental protection.
In 2010 our industrial activities reported 202,545 tons of SO2 emissions. 15 Our smelters showed a
sulphur capture rate of 80%. 16

Figure 25: SO2 emissions from industrial activities

200 000


150 000
100 000
50 000






Land-based mobile machinery
Stationary operations

174 485

227 238

202 110

 he emissions from land-based mobile machinery were calculated using the emission factors presented in the
EMEP/EEA air pollutant emission inventory guidebook 2009.
 his figure does not include Murrin, as the complexity of sulphur balance does not currently allow reliable data

Sustainability Report 2010 | 75

8 | Environment

The 80% capture rate is mainly due to ongoing major work to install sulphur dioxide capture
facilities at our Zambian operation, where SO2 had been emitted freely into the atmosphere for
decades before our arrival. This project will be completed in 2015, in line with the plan agreed
with the Zambian government. The challenge the government has set has been to redevelop
our facilities to improve their environmental performance while still securing and expanding the
significant employment Mopani provides. We have invested heavily to meet this challenge.
In addition, the PM emissions from our stationary industrial activities totalled 2,925 tons. PM
emissions from our mobile machinery totalled 1,020 tons.
The figure for our stationary industrial activities represents the PM emissions from point sources.
We do not monitor fugitive emissions continuously. Instead, we measure PM10 emissions at various hot spots, to ensure that the preventive measures we have in place to suppress dust are
­effective, and to allow continuous improvement.

Figure 26: PM emissions from industrial activities
4 000


3 000
2 000
1 000




Land-based mobile machinery
Stationary operations

2 540

2 144

1 020
2 925

NB: PM emissions from point sources and land-based mobile machinery

The NOX emissions from our land-based mobile machinery amounted to 8,341 tons in 2010.

Figure 27: NOX emissions from land-based mobile machinery
8 000


6 000
4 000
2 000




76 | Sustainability Report 2010


6 790

2 656

8 341

8 | Environment

Ust-Kamenogorsk metallurgical complex (UKMC), Kazakhstan
Lead smelter modernisation
The UKMC lead smelter currently uses concentrate sintering with further smelting of
sintered concentrate and incompletely processed material (reverts) in a flash furnace, as
well as pyrometallurgical refining of lead bullion. These activities produce large volumes
of low-concentration SO2, which makes it very
difficult to reduce SO2 emissions – a common
problem in the industry. Another targeted
emission is lead PM.
Modernisation has been in progress since
2006, with fully integrated zinc, lead and copper production processes in which wastes from
one production area are used as feed at the
next stage downstream. Sintering and roasting of lead concentrates will be replaced with
Isasmelt™ technology in late 2011, which will
result in low-volume, high-concentration SO2
emissions, making it possible to completely
convert them into sulphuric acid. The technology also offers low-energy consumption and

generally fewer emission leaks. UKMC has also
upgraded the fine gas cleaning area of the
dust collection plant with an impulse blowing system offering a higher filtration rate and
better off-gas cleaning efficiency. The dust
collected is recycled into the production process as feed for lead, zinc and other metals
So far we have seen a reduction of annual SO2
emission rates from 31,000  tons in 2006 to
14,000 tons in 2010. The upgrade will ultimately
result in a reduction in the rates within city limits, from 0.075 mg/m3 to below 0.005 mg/m3. In
parallel, lead PM emissions have also dropped
from 28.6 tons in 2006 to 17.1 tons in 2010. By
completion, emissions should fall to 11 tons per
year. Lead emissions are currently significantly
below state-approved limits (0.00030  mg/m3)
with an average atmospheric lead concentration of 0.00016 mg/m3 in 2010.

Sherwin Alumina, USA
New bauxite discharging to mitigate dust emissions
intended lifetimes and needed high levels of
maintenance to operate at diminished capacity with poor dust management. SAC wished
to reduce its environmental impact of dust
emissions as well as its discharge time. The
selected solution was the equilibrium crane.

SAC equilibrium cranes

The Sherwin Alumina Company LLC (SAC) near
Corpus Christi, Texas, has converted bauxite
into alumina for almost 60 years. Since 1986,
it has used continuous ship unloaders (CSUs)
to load alumina and discharge bauxite at the
port. By 2008, the CSUs had exceeded their

The new hydraulic system led to fewer system
failures and spills and the dust management
system was designed to reduce point source
and fugitive emissions. It uses a dry fog system
and porous wind screens (similar to the original SAC design) to control dust at the hoppers
and along the 700 ft conveyor. The cranes
became fully operational in August 2010 and
discharge efficiency increased dramatically,
with ships discharged in under half the time.
The local communities of Gregory, Corpus
Christi and Portland have seen a reduction in
dust emissions.

Sustainability Report 2010 | 77

8 | Environment

8.5 | Greenhouse gas emissions
Climate change is widely assumed to be caused by anthropogenic greenhouse gas (GHG) emissions,
of which the most widely known is carbon dioxide (CO2). Due to the diversity of our business
activities, Glencore encounters the global climate change challenge on many different fronts.
Glencore’s ability to monitor, control and reduce its GHG emissions is largely determined by its
spheres of influence.
We divide GHG emissions into three different types, or scopes, following the Greenhouse Gas
Protocol, a commonly used accounting and reporting standard.

Figure 28: Greenhouse Gas Protocol for identifying GHG emissions
Scope 1:
Direct emissions

Scope 2:
Indirect emissions
Scope 3:
Indirect emissions

Glencore’s main GHG sources
‚‚ Fuel combustion in boilers, furnaces or generators at mining and metallurgical operations
‚‚ Fuel oil used by our time charter fleet and own vessels
‚‚ Diesel and gasoline combustion by mobile machinery for mining
‚‚ Coal seam methane emissions
‚‚ Reductants used in metallurgical smelters
‚‚ Rice cultivation in farming assets that we own
‚‚ Consumption of purchased electricity, steam or heat at our mining, metallurgical, oil
and agricultural operations
‚‚ Emissions from outsourced activities such as maritime and inland shipping and land
‚‚ End use of our products (coal, oil products and biofuels)

With the introduction of GCP we started to undertake GHG emission accounting at a corporate level.

Figure 29: Scope 1 GHG emissions from industrial activities and maritime shipping (2010)





Industrial activities
Oil shipping
Grain shipping
Coal shipping

NB: There are no scope 1 emissions for shipping in metals & minerals

8.5.1 | Marketing
A study by the IMO estimates GHG emissions from international shipping to amount to 870 million
tons. This represents around 2.7% of the global emissions of CO2 in 2007. 17 These emissions are
projected to increase considerably in the years to come.
The majority of GHG emissions from international shipping is composed of CO2, with other GHG
emissions being of less importance.
Glencore requires extensive shipping activities to deliver our products to customers. As we
mostly use third-party contractors for land and inland waterway transportation, the GHG generated from these activities are scope 3 emissions, which we do not account for. This also applies to
the vast majority of our maritime shipping of metals & minerals and coal products.


 econd IMO GHG Study 2009, published in 2009. Considering other studies, the emissions may vary significantly,
from about 400 to 900 million tons of CO2, accounting for 2% to 4% of global CO2 emissions.

78 | Sustainability Report 2010

8 | Environment

CO2e is the universal unit of
measurement for the global
warming potential (GWP)
of GHG, where one unit of
CO2e is the GWP for one
unit of carbon dioxide. This
unit allows us to discuss the
equivalence of different
GHGs in terms of their
GWP. The GWPs used in
this report are 1 for CO2,
25 for CH4 (methane) and
298 for N2O (nitrous oxide). 18

Our oil and grain products are primarily transported by time-chartered fleets or vessels owned
or partly owned via our shipping division.
To calculate the GHG emissions from our shipping operations we used the annual bunker fuel
consumption figures for our owned and time charter vessels and the emission factors published
by the IMO. 19 Based on this, our emissions were 4.3 million tons of CO2e in 2010 (compared with
3.7 million tons in 2009 and 3.4 million tons in 2008). This represents 57% of our overall GHG emissions.
We undertook a second analysis of our oil division’s shipping activities in 2010 using a different
calculation methodology, 20 which produced deviations in the range of 6%. Applying this method
would mean that our annual scope 1 GHG emissions from maritime shipping equalled 4  million tons.

Oil shipping activities
Carbon reduction initiatives
We continuously monitor the fuel consumption
of both our time-chartered fleet and the vessels
that we own. We use this data to calculate our
emissions using IMO guidelines.
We strive to reduce our carbon emissions using voyage planning techniques that include
optimised weather routing to achieve reductions in fuel consumption. Our vessels also use
economical speeds and agree planned arriv-

als for cargo based on these speeds, where
All newly built vessels belonging to Glencore
have propulsion and cargo handling and
­safety equipment that meet or exceed current
international requirements. The application of
advanced hull-coating systems improves performance and allows further reductions in fuel
consumption and carbon emissions.

8.5.2 | Industrial
Scope 1 GHG emissions from Glencore’s industrial activities equalled 3.3  million  tons in 2010,
2.8 million tons in 2009 and 3.9 million tons in 2008.

Figure 30: Scope 1 GHG emissions from industrial activities
4 000

Thousand tons GHG

Carbon dioxide equivalent

3 000
2 000
1 000




Agricultural products
Energy products
Metals & minerals







2 859

2 426

2 160

Our main source of GHG emissions is the burning of fossil fuels, whether by stationary installations and mobile hauling equipment in our open-pit operations, or by the agricultural machinery
used in our farming operations.

According to the Fourth Assessment Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC),
Protocol MEPC 60/WP.6 of the Marine Environment Protection Committee, IMO, published on 22 March 2010.
CH4 and N2O emissions are based on the Second IMO GHG Study 2009, published in 2009.
T he emissions were calculated using the Energy Efficiency Operational Indicator (EEOI), which refers to the
mass of CO2 per ton of cargo carried per nautical mile (ton mile).

Sustainability Report 2010 | 79

8 | Environment

We also estimated 21 that our open-pit coal mines emitted 15,251 tons of coal seam methane in 2010,
resulting in 381,280 tons of CO2e (compared with 426,071 tons in 2009 and 434,128 tons in 2008).
Our rice cultivation released 391 tons 22 of CH4 in 2010, corresponding to 9,774 tons of CO2e.
8.5.3 | Renewable energy
A considerable proportion of the energy we use is generated from renewable sources (see section 8.3: Environment: energy).
Most of the renewable energy we use is generated by our Bukhtarma hydroelectric plant in
Kazakhstan, which is located on the Irtysh river, 5  km upstream from Serebryansk. Bukhtarma
has nine 75 MW turbines with a total generating capacity of 675 MW. It is operated by Kazzinc
under a long-term concession, and integrated into Kazakhstan’s national electricity grid as a
peak producer to regulate supply. Bukhtarma generates 2.4  billion  kW of electricity per year,
covering approximately 80% of Kazzinc’s electricity needs.

The amount of energy produced every year would release the equivalent of 1.1 million tons CO2e
if we were using a conventional fossil fuel-based power plant 23.
In a smaller example, we burn approximately 20,000 tons of sunflower hulls in our agricultural
plant in Argentina every year. The heat generated is converted to steam, which is used in our
production processes in a form of thermal recycling. If this energy were produced by burning
coal, it would emit 25,000 tons of CO2 per year.

Bukhtarma hydroelectric plant, Kazakhstan

C alculated according to 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy.
C alculated according to 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 4 – Agriculture,
Forestry and Other Land Use.
C alculated on the basis of the country-specific emission factor for Kazakhstan for the generation of electricity and
heat as presented in CO2 Emissions from Fuel Combustion: Highlights, International Energy Agency, 2010 edition.


80 | Sustainability Report 2010

8 | Environment

As stated in section 8.3.2: Environment: Energy: industrial, our total indirect (scope 2) energy
consumption for 2010 was 40 petajoules, of which 21 petajoules originated from non-renewable
sources. Bringing this into the context of CO2 emissions, we calculate that this equated to 2.8 million tons 24 of CO2. This compares with emissions of 2.8 million tons in 2009 and 2.9 million tons
in 2008.
Approximately 19 petajoules of our indirect energy was generated from renewable sources, such
as hydro and geothermal power. We estimate that this would represent 1.7 million tons 25 of CO2
emissions if it had been generated from non-renewable sources.

Figure 31: Direct and indirect GHG emissions

Thousand tons

16 000
12 000
8 000
4 000












2 892
7 261

2 790
6 435

2 779
7 607

Figure 32: Direct and indirect GHG emissions by source (2010)





Direct – maritime shipping
Direct – industrial activities

8.6 | Waste
All waste generated by Glencore is stored and disposed of safely if it cannot be reprocessed,
regardless of whether it is classified as non-hazardous or hazardous.
The majority of our waste, in terms of both volume and tonnage, consists of various types of
mineral, which is typical for mining and metallurgical operations. For this reason, local waste
management is an integral part of each of our mining operations, and varies depending on the
local conditions and the internal and external disposal facilities available.
Mineral waste from mining can be broadly divided into overburden (the rock, soil and ecosystem
that lies above a coal seam or ore body), waste rock and tailings (waste from ore processing), all
of which usually remain at the site that generated them.
Some, such as topsoil (which is a subsection of overburden from open-pit mining), are valuable
resources, and are carefully stored and protected from erosion to be used in later rehabilitation
projects. In addition, as much waste rock as possible is reused to backfill mining areas. Where this
is not possible, waste rock is disposed of in special areas and under special conditions to prevent
adverse environmental impact such as erosion or acid rock drainage.

C alculation is based on the specific energy mixes for the national electricity supply of the countries discussed,
according to CO2 Emissions from Fuel Combustion: Highlights, International Energy Agency, 2010 edition.
C alculation is based on the specific energy mixes for the natio nal electricity supply of the countries discussed,
according to CO2 Emissions from Fuel Combustion: Highlights, International Energy Agency, 2010 edition.

Sustainability Report 2010 | 81

8 | Environment

Figure 33: Proportion of waste rock used for landfill and backfill (2010)




Our copper and zinc mining operations typically produce tailings (ore residues), which are
disposed of in tailings dams. These are specially designed ponds filled with a suspension
consisting of tailings and water, which comes via pipeline from our mine concentrator plants.
Through sedimentation of the suspended solids the tailings gradually fill the dam, where they are
disposed of. Excess water is either recycled back into the plant or discharged into surface water
in a way that meets local regulatory requirements. Once the capacity of a tailing dam is reached,
the entire structure is rehabilitated, generally by drying out the contents and covering the structure
with topsoil.
Maintaining the integrity of a tailing dam is one of the most important tasks at each mining
operation, as a failure can result in an unintended release of tailings and negative effects on
the surrounding environment and communities. For this reason our tailing dams are regularly
inspected by our own staff and independent surveyors.

Figure 34: Total amount of waste rock, tailings and slags & sludges

Million tons





Slags & sludges
Waste rock










Figure 35: Hazardous and non-hazardous waste

Million tons















Our next most common waste comes from our metallurgical operations. Although we produce a
smaller volume and tonnage of this type of waste, some of it is classified as hazardous. This calls
for additional measures to ensure secure disposal, either through a careful choice of disposal
location or by special treatment such as inertisation.

82 | Sustainability Report 2010

8 | Environment

Some metallurgical waste can be treated in specialised recovery plants. Our new smelter complex in Kazakhstan (see section 8.4: Environment: air emissions) is a good example of what can
be achieved if opportunities for waste recovery are systematically explored and integrated into
the production process.
In 2010 we were able to recycle 11.3 % of the waste from our metallurgical plants.
The large volumes and tonnages of waste from our mining and metallurgical operations are disposed of in installations that belong to our premises or mining concessions.
For certain waste streams, such as domestic or workshop waste (eg waste oils), disposal is outsourced to local waste disposal companies. This also applies to waste from our owned fleet and
oil storage activities. While most of these wastes are sent for recycling (eg waste oils) or landfilled
(if recycling is not possible), some are incinerated.

Mutanda, DRC
Secure tailings storage and disposal

Tailings disposal at Mutanda

Mutanda’s tailings disposal facility is one of
the few such operations in the DRC to include
a double-lined storage facility. This features
an acid-resistant high-density polyethylene
liner overlying a 300 mm compacted clay

layer and leak detection drains. The facility
also reuses water deposited with the tailings,
minimising the intake from the DRC’s rivers,
with a raw water requirement of approximately 30 m3 per hour.

Sustainability Report 2010 | 83

Glencore HQ, Baar, Switzerland

to compliance

Our GCP commitment states: “We comply with or exceed the laws, regulations and best practice guidelines applicable to our operations and products
in the jurisdictions in which we operate.
“Along the entire supply chain, our employees and contractors are required
to act in strict adherence to these principles to ensure the satisfaction of our
business partners and the quality and safety attributes of our products.
“We will not assist any third party in violating the law in any country, nor
pay or receive bribes, nor participate in any other criminal, fraudulent or
corrupt practice. We seek to prevent such misconduct through strong leadership, internal policies and procedures.
“Glencore’s employees and contractors are obliged to comply with appli­
cable law and applicable corporate policies, and it is the obligation of
our managers and supervisors to ensure employees and contractors act
accordingly. Additionally, they are obliged to prevent, detect and report
any violations of the law or our corporate policies.
“Our employees are encouraged to avoid situations that could cause conflicts of interest between the company and the employee.”

Sustainability Report 2010 | 85

9 | Compliance

9 |
Our commitment to compliance is based on the relevant Glencore Corpoarte Practice (GCP)
principle. This covers compliance with the laws, regulations and good practice guidelines
­applicable to our operations and products in the jurisdictions in which we operate. It also
­covers our overall integrity of business conduct.
Our aim is not just to establish a set of rules for compliance with laws and regulations, but to
develop and maintain a culture of compliance and ethical behaviour within the Glencore group.

9.1 | Glencore corporate compliance programme
Our corporate compliance programme consists of various policies, manuals and guidelines. It
also covers training for new and existing employees, which includes prevention of bribery and
money-laundering, and a requirement that they sign a compliance confirmation every year.
Our compliance programme and documentation are accessible to our employees on the corporate intranet.
Our employees (and contractors as appropriate) must comply with the laws, regulations and
corporate policies applicable to their activities. It is the responsibility of our managers and supervisors to ensure that our people act according to these requirements.
Our managers and supervisors are also obliged to prevent, detect and report any violations of
the law or our corporate policies.
We will not assist any third party in violating the law in any country, pay or receive bribes, or participate in any other criminal, fraudulent or corrupt practice. We seek to prevent such misconduct
through strong leadership, internal policies and procedures. Our position on the issues of bribery
and corruption is clear: offering, paying, authorising, soliciting or accepting bribes is unacceptable to Glencore.
Our principles, commitments and management approach are stipulated in our global anticorruption policy.

86 | Sustainability Report 2010

9 | Compliance

9.2 | Reporting misconduct
If employees are concerned that any conduct or proposed course of action might be improper or
in breach of any applicable laws or regulations, they must refer that concern to a member of our
Business Ethics Committee (BEC) or the local compliance co-ordinator.
The BEC includes representatives from our external counsels, to whom misconduct can be reported independently.
Glencore is of the view that, in the context of the Glencore group as a whole, there have been no
material breaches of any applicable laws or regulations.
Our industrial operations must implement their own compliance programmes, designed to
address their specific requirements, but consistent with our overall compliance commitment.

Figure 36: Compliance within the Glencore Group

Marketing activities
Business Ethics Committee (BEC)
BEC sub-committee




Internal audit


Local compliance management

Industrial activities

External regulations and the results of our internal audits feed into the work of both our group compliance
managers and the local compliance managers at each of our industrial operations. Our group compliance and
business ethics committees interact together and with our trading, traffic, logistics and administration functions
to create our compliance policies and manuals. They also feed training and consultation results back into our
compliance policies in a process of continual improvement.

Sustainability Report 2010 | 87

Export vessel loading agricultural products, Rotterdam
88 | Sustainability Report 2010

Commitment to
our customers

Our GCP commitment states: “We aim to maintain high standards of service wherever we operate, honour all business obligations undertaken and
develop long-term relationships with commercial counterparties based on
trust and integrity.
“We carry out management policies and programmes to ensure our products meet regulatory requirements and provide documentation to customers to allow safe transport, handling and use.”

Sustainability Report 2010 | 89

10 | Our customers

10 |
Our customers
We are proud of our strong customer base and aim to meet their expectations at every step of
our service and product delivery. Consequently the Glencore Corporate Practice (GCP) commitment to our customers aims to maintain high standards of service wherever we operate, honour
all business obligations and develop long-term relationships based on trust and integrity.
To ensure adherence to our customer commitment we have implemented management policies
and programmes assuring the quality of our products throughout the supply chain. This is supported by an ongoing dialogue with our suppliers and customers.
Our policies and programmes are also designed to ensure that our products comply with regulatory
requirements and that we provide supporting information and documentation that allows their
safe transport, handling and use.
Glencore operates within complex supply chains that are distributed around the world. We have
recently observed an increasing demand for transparency of supply chains in global trade.
Regulators have already taken action on certain aspects of transparency. Examples include the
commodities referred to as “conflict minerals”, which originate in the DRC and neighbouring
countries, and the supply chain requirements stipulated in the EU’s Renewable Energy Directive
In other cases consumer alliances establish criteria, either in support of existing regulatory initiatives or to manage matters before any action has been taken by regulators. We work closely with
our customers on such matters and give their supply chain integrity concerns and requirements
the same consideration as quality or timeliness factors.
We regard supply chain developments in sustainability as a joint effort between producers,
suppliers, marketers and consumers.

90 | Sustainability Report 2010

10 | Our customers

Figure 37: Quality control and product safety within the Glencore group







Delivery in time
Security of supply

Quality control
Product safety
Centred on our product value chain, this figure shows how our customers’ requirements feed into our trading
function and sourcing structure. Our traffic function deals with the allocation of products, whether produced
or sourced by Glencore, to fit customer requirements. Chartering deals with the logistics of delivering product
orders. This entire process must be efficient and effective to deliver customer satisfaction; where required,
it is monitored by quality control at control points that include the supply point and the load/discharge port.
Throughout the chain, our product safety function manages the regulatory compliance of our products.

10.1 | Quality control
The satisfaction of our customers depends on their products being delivered according to
agreed specifications.
On the journey to end users, our products move through the hands of many different service
providers, such as warehouses, land freight forwarders and shipping lines. Each of these supply
chain participants can have an impact on product quality, and so we have quality controls at
specific steps of the supply chain, especially at the load and discharge locations. These controls
form the backbone of our quality assurance programmes.
Strict quality controls are particularly important for bulk commodities, such as crude oil and
petroleum products, grain, coal and ores, and ore concentrates. Our procedures follow applicable
international standards and internationally accepted practice; such requirements are generally
stated within the commercial contracts agreed with our customers and suppliers.
These controls are typically conducted either by independent surveyors or by suitably qualified
and trained Glencore people, witnessed by an internationally accredited inspection organisation.
This is also the case for critical transport parameters, for example the moisture content of grain,
coal or ore concentrates.
All documentation of these proceedings is recorded and archived by Glencore, to be readily
retrievable in case of enquiries.
In the event of a customer complaint, any reported problem is investigated jointly by our trading,
traffic and chartering functions. They aim to resolve issues with customers and suppliers as
quickly as possible. They also investigate the underlying cause and take appropriate corrective
measures to prevent similar cases if necessary. All of these measures are tailored to the specific
requirements of each commodity that we supply.

Sustainability Report 2010 | 91

10 | Our customers

Some specific products may also require supplementary quality assurance measures. Examples
from the agricultural sector are GMP+ standards for EU food and feed product trading, and the
International Sustainability and Carbon Certification (ISCC) requirements for renewable fuels.

Good manufacturing practice (GMP) for our EU grain feed products
As a major feed ingredient supplier to the
European compound feed industry, Glencore
has signed up to a quality assurance programme developed specifically for the agricultural industry. Based on a Dutch initiative,
Feed for Food, the programme treats animal
feed safety as a component of overall food
safety, with the assumption that animal feed
and food for human consumption cannot be
viewed separately.
The programme includes proactive quality assurance based on Hazard Analysis and Critical
Control Points (HACCPS) and complements
the US Food and Drug Administration’s exist-

ing GMP standards. These integrated GMP
and HACCP standards are known as GMP+.
The programme covers the entire supply chain
from feed ingredient producers, via transport
companies, to livestock farmers. Independent
inspectors monitor compliance; companies
that fail to comply may lose their GMP+ certification.
The system currently has more than 12,000
participants worldwide and has proven its
value by securing the integrity of the supply
chains for feed production. Glencore has been
an active participant since 2003, and successfully renewed its registration in 2010.

EU RED compliance
Ensuring sustainable biomass production
As one of the relevant renewable energy
sources, biomass is a crucial component of a
climate-friendly energy supply. It is an essential
alternative to fossil fuels but public attention
has focused on the potential negative impact
of the growing use of biomass fuel.
The European Renewable Energy Directive
(2009/28/EC or EU RED) sets requirements to
limit any negative impact. It requires that biomass for biofuel or bioenergy must be sustainably produced, with proof that biofuels emit
significantly less greenhouse gas than fossil
fuels. The current target for biodiesel, for example, is 35% less.
The European Commission is implementing
RED compliance by requiring external verification of whether the complex RED requirements
are met. Our agricultural division decided to
do this by adopting the ISCC scheme, the first
nationally approved international certification
system for biomass sustainability and greenhouse gas savings.

92 | Sustainability Report 2010

Management and control of EU biomass
import and export are managed at a corporate level by our renewable fuels compliance
department, which also maintains Glencore’s
ISCC certification. This department also maintains Glencore’s overall RED compliance, including its joint management and control at
the purchase and sale level with the relevant
trading desks and field offices.
By May 2011 more than 300 entities were participating in the ISCC certification scheme,
including 14 from the Glencore group (with
further entities planning to follow).

Glencore’s ISCC-certificated
operations, as of summer

‚‚ Glencore Polska
‚‚ Glencore Grain UK Limited
‚‚ Glencore Céréales France
‚‚ Glencore Grain Hungary
‚‚ SERNA Ukraine
‚‚ Glencore Grain BV
‚‚ B
 IOPETROL Marketing BV
‚‚ Glencore Bulgaria
‚‚ Glencore Romania
‚‚ BIOPETROL Rostock
‚‚ B
 IOPETROL Rotterdam BV
‚‚ Dutch Biodiesel BV
‚‚ Lubmin Oils GmbH

10 | Our customers

10.2 | Product safety
Physically transporting products around the world requires Glencore to adhere to applicable local and international rules. We created a corporate product safety function in 2009 to co-ordinate
this task; it monitors global product safety laws and regulations and initiates any necessary activities.
Product safety monitors developments in global product safety regulations and identifies those
that are relevant for implementation across the Glencore group. The most recent example
was the EU’s chemical control act, REACH. Our product safety function ensured that Glencore
successfully completed the first implementation stage before expiry of the main deadline for
high-volume (1,000+ tons) chemical importers and manufacturers. This included registration of
around 70 substances with the European Chemicals Agency (ECHA), in close collaboration with
relevant trade associations and consortia.
In 2010 we also began consolidation of our database of safety data sheets (SDS). This informs
our customers and service providers about the nature of each substance, and potential hazards
and risks. We initiated an automated system for SDS distribution in 2010, which will be rolled out
across Glencore marketing activities in 2011.
We have a 24-hour emergency hotline that provides information on our products, and our product
safety specialists can be reached at [email protected] by any customers or service
providers with questions about the regulatory status and requirements for our products.
In 2010 our systems recorded no product safety incidents.

Sustainability Report 2010 | 93


Sustainability Report 2010 | 95

11 | Glossary

11 |
brownfield site
A potential development site in an urban
area that has had previous development.
See greenfield site.
The Classification, Labelling and Packaging
Regulation is a European Union regulation
that aligns the EU system of classification, labelling and packaging chemical
substances and mixtures to the Globally
Harmonised System (see GHS).
CO2e is the universal unit of measurement
for the global warming potential (GWP)
of greenhouse gas (GHG), where one unit
of CO2e is the GWP for one unit of carbon
dioxide. This unit allows us to discuss the
equivalence of different GHGs in terms of
their GWP. The GWPs used in this report
are 1 for CO2, 25 for CH4 (methane) and
298 for N2O (nitrous oxide).
downstream / upstream
Terms referring to relative positions in a
supply chain, meaning respectively: further
down the chain towards supplying a product to customers, or further up the chain
towards production of products.
The Extractive Industries Transparency
Initiative aims to strengthen governance by
improving transparency and accountability
in the extractives sector (oil, gas and mining). EITI promotes revenue transparency
by monitoring and reconciling company
payments and government revenues at the
country level.
The European Commission’s Renewable
Energy Directive outlines the European
Union’s renewable strategy and targets
including regulation of sustainability
criteria for biofuels and their precursors
(eg soy and rape).
European Chemicals Agency (ECHA)
The ECHA is an agency of the European
Union that works to improve the general
quality of life by ensuring the safe use of
chemicals and fostering innovation.
Various iron alloys that have a high proportion of one or more other element, for
example manganese, chrome or silicon.
A fatality frequency rate is the total number of fatalities recorded per million hours

96 | Sustainability Report 2010

fugitive emissions
Emissions that emanate irregularly from
many diffuse sources, such as gas leakages
from equipment, and, in the case of Particulate Matter emissions, the movements
of trucks and machinery in dusty areas.
Glencore Corporate Practice, our corporate responsibility framework and management programme.
The United Nations Globally Harmonised
System of Classification and Labelling of
Chemicals is an international agreement on
chemical classification and communication.
greenfield site
A previously undeveloped site for commercial development or exploitation. See
brownfield site.
Greenhouse Gas Protocol
Standards and guidance for corporate
accounting and reporting on GHG emissions, helping governments and business
leaders to understand, quantify, and
manage GHG emissions (eg CO2).
The Global Reporting Initiative is a
network-based organisation that develops
and disseminates voluntary sustainability
reporting guidelines; there is a specific
supplement for the mining and metals
Hazard Analysis and Critical Control Point
HACCP is a management system in which
food safety is addressed through the
analysis and control of biological, chemical
and physical hazards from raw material
production, procurement and handling, to
manufacturing, distribution and consumption of the finished product.
Heap leaching
An industrial mining process to extract
compounds from ore. The ore is usually
crushed and heaped on an impermeable
leach pad, then irrigated with a leach
solution to dissolve the metals. The solution containing the dissolved minerals is
treated to recover the target mineral and
then recycled.
The International Finance Corporation is
part of the World Bank Group that finances
and provides advice and guidelines for
private sector ventures and projects in
developing countries.

IFC EHS guidelines
Environmental, health and safety guidelines, including social aspects, adopted by
the IFC.
The International Labour Organization is a
United Nations agency that seeks the promotion of social justice and internationally
recognised human and labour rights.
ILO Declaration
The Declaration on Fundamental Principles
and Rights at Work adopted by the ILO in
1988, with the core categories of collective
bargaining, discrimination, forced labour,
and child labour.
The International Maritime Organization is
the United Nations agency with responsibility for the safety and security of shipping
and the prevention of marine pollution by
“industrial activities”
Glencore term covering assets and activities related to commodity production and
processing, as separate from marketing
activities. See “marketing activities”.
The Intergovernmental Panel on Climate
Change assesses scientific, technical and
socio-economic information on the risk
of human-induced climate change. It was
established by the United Nations Environment Programme (UNEP) and the World
Meteorological Organization (WMO).
International Sustainability and Carbon
Certification is an international certification system for biomass and biofuels.
ISO 9001
A quality management system standard
(not a performance standard) issued by the
International Organization for Standardization (ISO). It is a voluntary standard that
can be independently audited by certifying
ISO 14001
A management system standard, similar
to ISO 9001, but covering environmental
impacts and risk.
ISO 26000
A management system standard covering
social responsibility.
The International Union for Conservation
of Nature is a professional global environmental network with over 1,000 member
organisations in 140 countries.

11 | Glossary

A lost time injury is a work-related injury
resulting in an employee or contractor
being unable to attend work on the next
calendar day after the day of the injury,
according to professional medical advice.
A lost time injury frequency rate is the total
number of injuries recorded per million
hours worked.
“marketing activities”
Glencore term covering trading and sales
activities as well as the infrastructure and
resources used transporting products from
industrial sites to customers. See “industrial activities”.
The main international convention for
preventing ships from polluting the marine
environment, whether by operational or
accidental causes.
nitrogen oxides
A range of related chemical compounds,
collectively indicated as NOX, which can
react to form greenhouse gases. Examples
are nitric oxide and nitrogen oxide.
The Oil Companies International Marine
Forum is a voluntary association of oil
companies with an interest in the shipment
of crude oil and products.
The Organisation for Economic Co-operation and Development is an international
organisation that provides a forum in which
governments can work together to share
experiences and seek solutions to tackle
economic, social, environmental and governance challenges.
Gas emitted as a result of industrial
processes or the combustion of fuels such
as natural gas, gasoline/petrol, diesel fuel,
fuel oil or coal.
oil majors
Vertically integrated oil and gas companies
involved in all stages of the oil industry:
exploration, production, refining, trading,
marketing, and sometimes transportation.

A measure of energy equivalent to a thousand trillion joules, or 1,000,000,000,000,000
joules, usually used to express energy
consumption by cities or major industries.
Particulate matter, or dust, usually from
industrial sources.
Particles of 10 micrometres or less in size,
the particulate on which the US Environmental Protection Agency’s air quality
standard is now measured.
process water
Water used in any industrial process to
produce a product or affect the process.
produced water
Water removed from crude oil during
protected area
A location that receives protection because of its natural, ecological or cultural
REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is the
European Union’s chemicals control act.
The Ship Inspection Report Programme
is an OCIMF tanker risk assessment tool
intended to address safety concerns about
sub-standard shipping.
sulphur dioxide
A chemical compound (SO2) produced by
various industrial processes, including the
combustion of sulphur-containing fuels.
SO2 is a pollutant gas and a precursor
to particulates in the atmosphere. It can
be captured and converted to saleable
sulphuric acid.
The residue of an industrial process, especially residue that contains mineral ore.
thermal coal
Any coal suitable for use in steam boilers.
Also known as steam or energy coal.

OSHAS 18001
The internationally recognised assessment
specification for occupational Health &
Safety management systems.

Sustainability Report 2010 | 97

Staircase at the Dutch biodiesel plant (DBD), Rotterdam

GRI Index

Sustainability Report 2010 | 99

12 | GRI Index

12 |
GRI index
Profile Disclosures
Indicator Description of indicator


Level of
reporting Comment

1. Strategy
Statement from the most senior decision-maker of the organization.
Description of key impacts, risks, and opportunities.

Chapter 1
Section 1.1

Chapter 2
Section 2.1
Section 2.1

Section 2.1
Chapter 2

Section 2.2
Sections 2.4, 2.5, 2.6

2. Organizational Profile
Name of the organization.
Primary brands, products, and / or services.
Operational structure of the organization, including main divisions,
operating companies, subsidiaries, and joint ventures.
Location of organization’s headquarters.
Number of countries where the organization operates, and names of
countries with either major operations or that are specifically relevant
to the sustainability issues covered in the report.
Nature of ownership and legal form.
Markets served (including geographic breakdown, sectors served, and
types of customers/beneficiaries).
Scale of the reporting organization.
Significant changes during the reporting period regarding size, structure,
or ownership.
Awards received in the reporting period.

Chapter 2
Section 2.2

Chapter 7

3. Report Parameters
Reporting period (e.g., fiscal/calendar year) for information provided.

Section 3.1


Section 3.1
Chapter 13
Chapter 4
Section 3.1


Section 3.1

Section 3.1

Section 3.2





Date of most recent previous report (if any).
Reporting cycle (annual, biennial, etc.)
Contact point for questions regarding the report or its contents.
Process for defining report content.
Boundary of the report (e.g., countries, divisions, subsidiaries, leased
facilities, joint ventures, suppliers). See GRI Boundary Protocol for further
State any specific limitations on the scope or boundary of the report
(see completeness principle for explanation of scope).
Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affect
comparability from period to period and/or between organizations.
Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to the
compilation of the Indicators and other information in the report. Explain
any decisions not to apply, or to substantially diverge from, the GRI
Indicator Protocols.
Explanation of the effect of any re-statements of information provided
in earlier reports, and the reasons for such re-statement (e.g. mergers/
acquisitions, change of base years/periods, nature of business, measurement methods).
Significant changes from previous reporting periods in the scope,
boundary, or measurement methods applied in the report.
Table identifying the location of the Standard Disclosures in the report.
Policy and current practice with regard to seeking external assurance
for the report.


Chapter 12
Chapter 3

 Fully reported GRI Indicator  Partially reported GRI Indicator  Not reported GRI Indicator n/a Not applicable

100 | Sustainability Report 2010

Targets and objectives
will be defined for the
Glencore group in 2011

It is intended to get
external assurance
for the 2011 report

12 | GRI Index

Indicator Description of indicator
4. Governance, Commitments and Engagement
Governance structure of the organization, including committees under
the highest governance body responsible for specific tasks, such as setting
strategy or organizational oversight.
Indicate whether the Chair of the highest governance body is also an
executive officer.
For organizations that have a unitary board structure, state the number
of members of the highest governance body that are independent
and/or non-executive members.
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
Linkage between compensation for members of the highest governance
body, senior managers, and executives (including departure arrangements),
and the organization’s performance (including social and environmental
Processes in place for the highest governance body to ensure conflicts
of interest are avoided.
Process for determining the qualifications and expertise of the members
of the highest governance body for guiding the organization’s strategy
on economic, environmental, and social topics.
Internally developed statements of mission or values, codes of conduct,
and principles relevant to economic, environmental, and social performance
and the status of their implementation.
Procedures of the highest governance body for overseeing the organi­
zation’s identification and management of economic, environmental,
and social performance, including relevant risks and opportunities, and
adherence or compliance with internationally agreed standards, codes
of conduct, and principles.
Processes for evaluating the highest governance body’s own
performance, particularly with respect to economic, environmental,
and social performance.
Explanation of whether and how the precautionary approach or
principle is addressed by the organization.




Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes or
Memberships in associations (such as industry associations) and/or
national/international advocacy organizations in which the organization:
* Has positions in governance bodies; * Participates in projects or
committees; * Provides substantive funding beyond routine membership
dues; or * Views membership as strategic.
List of stakeholder groups engaged by the organization.
Basis for identification and selection of stakeholders with whom to
Approaches to stakeholder engagement, including frequency of
engagement by type and by stakeholder group.
Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key
topics and concerns, including through its reporting.


Level of
reporting Comment

Section 2.3

Section 2.3

Section 2.3

Section 2.3

Section 2.3

Section 2.3

Section 2.3

Chapter 5

Section 2.3;
Chapter 5

Section 2.3;
Chapter 5

Chapter 5

Chapters 5, 6, 10

Chapters 5, 6, 10

Chapter 4
Chapter 4, 5

Chapter 5;
Section 7.1
Chapter 5;
Section 7.1

Embedded in our GCP
principles (see Chapter 5
of this report). Also
included in various
sections throughout the

 Fully reported GRI Indicator  Partially reported GRI Indicator  Not reported GRI Indicator n/a Not applicable

Sustainability Report 2010 | 101

12 | GRI Index

Performance Indicators
Indicator Description of indicator


Level of
reporting Comment

Economic indicators
DMA EC Management approach to Economic Aspects, goals and performance,
policy, additional contextual information.

Chapters 1, 7


Section 7.5

Chapter 1

Annual Report 2010
Section 7.5
Section 7.5

Section 7.5

Section 7.5

Chapters 1, 8

Chapter 8
Chapter 8
Section 8.3
Section 8.3
Section 8.2.2
Section 8.2.2
Section 8.1

Section 8.1.1

Section 8.1.1

Section 8.1.1

Section 8.5



Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other
community investments, retained earnings, and payments to capital
providers and governments.
Financial implications and other risks and opportunities for the
organization’s activities due to climate change.
Coverage of the organization’s defined benefit plan obligations.
Significant financial assistance received from government.
Policy, practices, and proportion of spending on locally-based suppliers
at significant locations of operation.
Procedures for local hiring and proportion of senior management hired
from the local community at significant locations of operation.
Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind,
or pro bono engagement.

Environmental indicators
DMA EN Management approach to Environmental Aspects, goals and performance, policy, organizational responsibility, training and awareness,
monitoring and follow-up, additional contextual information.
Materials used by weight or volume.
Percentage of materials used that are recycled input materials.
Direct energy consumption by primary energy source.
Indirect energy consumption by primary source.
Total water withdrawal by source.
EN10 (A) Percentage and total volume of water recycled and reused.
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
Description of significant impacts of activities, products, and services
on biodiversity in protected areas and areas of high biodiversity value
outside protected areas.
Amount of land (owned or leased, and managed for production
activities or extractive use) disturbed or rehabilitated.
The number and percentage of total sites identified as requiring
biodiversity management plans according to stated criteria, and the
number (percentage) of those sites with plans in place.
Total direct and indirect greenhouse gas emissions by weight.
Other relevant indirect greenhouse gas emissions by weight.
Emissions of ozone-depleting substances by weight.
NOX, SOX, and other significant air emissions by type and weight.
Total water discharge by quality and destination.
Total weight of waste by type and disposal method.
Total amounts of overburden, rock, tailings, and sludges and their
associated risks.
Total number and volume of significant spills.
Initiatives to mitigate environmental impacts of products and services,
and extent of impact mitigation.
Percentage of products sold and their packaging materials that are
reclaimed by category.
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations.

Section 8.4
Section 8.2.2
Section 8.6
Section 8.6
Section 8.1.3
Section 8.5.3;
Chapter 10


Chapter 8

 Fully reported GRI Indicator  Partially reported GRI Indicator  Not reported GRI Indicator n/a Not applicable

102 | Sustainability Report 2010

Targets and objectives
will be defined for the
Glencore group in 2011;
refer also to the Annual
Report 2010

12 | GRI Index

Indicator Description of indicator
Social performance indicators: Labor Practices and Decent Work
DMA LA Management approach to Labor Practices Aspects, goals and performance, policy, organizational responsibility, training and awareness,
monitoring and follow-up, additional contextual information.
Total workforce by employment type, employment contract, and region.
Total number and rate of employee turnover by age group, gender,
and region.
Percentage of employees covered by collective bargaining agreements.
Minimum notice period(s) regarding significant operational changes,
including whether it is specified in collective agreements.
Number of strikes and lock-outs exceeding one week’s duration,
by country.
Rates of injury, occupational diseases, lost days, and absenteeism,
and number of work-related fatalities by region.
Education, training, counseling, prevention, and risk-control programs
in place to assist workforce members, their families, or community
members regarding serious diseases.
Average hours of training per year per employee by employee category.
Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership,
and other indicators of diversity.
Ratio of basic salary of men to women by employee category.
Social performance indicators: Human Rights
DMA HR Management approach to Human Rights Aspects, goals and performance,
policy, organizational responsibility, training and awareness, monitoring
and follow-up, additional contextual information.
Percentage and total number of significant investment agreements
that include human rights clauses or that have undergone human rights
Percentage of significant suppliers and contractors that have
undergone screening on human rights and actions taken.
Total number of incidents of discrimination and actions taken.
Operations identified in which the right to exercise freedom of
association and collective bargaining may be at significant risk,
and actions taken to support these rights.
Operations identified as having significant risk for incidents of child
labor, and measures taken to contribute to the elimination of child labor.
Operations identified as having significant risk for incidents of forced
or compulsory labor, and measures to contribute to the elimination of
forced or compulsory labor.
Percentage of security personnel trained in the organization’s policies
or procedures concerning aspects of human rights that are relevant to
Total number of operations taking place in or adjacent to indigenous
peoples’ territories, and number and percentage of operations or sites
where there are formal agreements with indigenous peoples’ communities.


Level of
reporting Comment

Chapters 1, 6;
Sections 6.1, 6.2

Section 6.2
Section 6.2.1

Section 6.3
Section 6.3

Section 6.3

Section 6.1.1

Section 6.1.2;
Chapter 7

Section 6.1.2
Section 6.2

Section 6.2

Chapter 5;
Sections 6.2, 6.3

Section 6.3

Section 6.3
Section 6.3

Section 6.3

Section 6.3

Section 6.3

Section 7.4

 Fully reported GRI Indicator  Partially reported GRI Indicator  Not reported GRI Indicator n/a Not applicable

Sustainability Report 2010 | 103

12 | GRI Index

Indicator Description of indicator
Social performance indicators: Society
DMA SO Management approach to Society Aspects, goals and performance,
policy, organizational responsibility, training and awareness, monitoring
and follow-up, additional contextual information.
Nature, scope, and effectiveness of any programs and practices
that assess and manage the impacts of operations on communities,
including entering, operating, and exiting.
Number and description of significant disputes relating to land use,
customary rights of local communities and indigenous peoples.
The extent to which grievance mechanisms were used to resolve
disputes relating to land use, customary rights of local communities
and indigenous peoples, and the outcomes.
Number (and percentage) of company operating sites where artisanal
and small-scale mining (ASM) takes place on, or adjacent to, the
site; the associated risks and the actions taken to manage and mitigate
these risks.
Sites where resettlements took place, the number of households
resettled in each, and how their livelihoods were affected in the process.
Number and percentage of operations with closure plans.
Percentage and total number of business units analyzed for risks related
to corruption.
Percentage of employees trained in organization’s anti-corruption policies
and procedures.
Actions taken in response to incidents of corruption.
Public policy positions and participation in public policy development
and lobbying.
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations.
Product Responsibility
DMA PR Management approach to Product Responsibility Aspects, goals and
performance, policy, organizational responsibility, training and
awareness, monitoring and follow-up, additional contextual information.
Programs and progress relating to materials stewardship.
Life cycle stages in which health and safety impacts of products and
services are assessed for improvement, and percentage of significant
products and services categories subject to such procedures.
Type of product and service information required by procedures,
and percentage of significant products and services subject to such
information requirements.
Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising, promotion,
and sponsorship.
Monetary value of significant fines for non-compliance with laws and
regulations concerning the provision and use of products and services.


Level of
reporting Comment

Chapter 1;
Section 5.2;
Chapter 7
Section 5.2;
Chapter 7

Section 7.1

Section 7.1

Section 7.4

Section 7.3

Chapter 7
Chapter 9

Chapter 9

Chapter 9
Section 7.6

Chapters 8, 9

Section 5.2;
Chapter 10

Sections 10.1, 10.2
Sections 10.1, 10.2

Section 10.2


Chapter 9

 Fully reported GRI Indicator  Partially reported GRI Indicator  Not reported GRI Indicator n/a Not applicable

104 | Sustainability Report 2010

12 | GRI Index

Sustainability Report 2010 | 105

Prodeco employees in front of the truck fleet


Sustainability Report 2010 | 107

13 | Contact

13 |
We welcome feedback on this report or on any other aspect of sustainability at Glencore.
You can send general comments to [email protected].
Otherwise you can contact:
Corporate sustainability
Michael Fahrbach
Tel: +31 (0) 10 40 44 406
[email protected]
Corporate communications
Simon Buerk
Tel: +41 (0) 41 709 2679/2878
[email protected]

Baarermattstrasse 3
P.O. Box 777
CH– 6341 Baar

108 | Sustainability Report 2010

13 | Contact

This report may include statements that are, or may be deemed to be, “forward looking statements”, beliefs or opinions, including statements with respect to the business, prospects, strategies and plans of Glencore. These forward looking statements
involve known and unknown risks and uncertainties, many of which are beyond Glencore’s control and all of which are based on
the Glencore board of directors’ current beliefs and expectations about future events. These forward looking statements may
be identified by the use of forward looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “will”, “could”, or “should” or in each case, their negative or other variations thereon or comparable terminology, or by
discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters
that are not historical facts. Forward looking statements may and often do differ materially from actual results. Glencore is not
under any obligation and Glencore and its affiliates expressly disclaim any intention or obligation to update or revise any forward
looking statements, whether as a result of new information, future events or otherwise.
No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of
risks and uncertainties facing Glencore. Such risks and uncertainties could cause actual results to vary materially from the future
results indicated, expressed or implied in such forward looking statements. Forward looking statements speak only as of the
date of this report.

Baarermattstrasse 3
P. O. Box 777
CH – 6341 Baar
110 | Sustainability Report 2010

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