Glencore Plc

Glencore Plc is a senior copper producer headquartered in Baar, Switzerland, operating primarily in Australia, South America, and Africa. The company's portfolio consists of 17 projects, comprising 14 operating mines, 2 development, and 1 suspended project. Key assets include Collahuasi, Elk Valley Resources (Evr), Kamoto Copper Company (Kcc), and El Pachón. The organization's business model is founded on the integration of two distinct but complementary segments: industrial activities and marketing activities. This structure creates an enhanced entrepreneurial focus on value generation across the entire supply chain. The industrial business, comprising approximately 50 assets, emphasizes a value-over-volume approach in its production activities. The marketing segment, one of the world's largest, sources, markets, and distributes over 60 commodities, leveraging its global scale, logistics capabilities, and in-depth market knowledge to generate returns. Profitability in this segment is driven by volume-based economies of scale, value-added services like blending and optimization, and arbitrage opportunities arising from price discrepancies in different geographic locations, time periods, or product grades. A key differentiator is the synergistic relationship between the two segments, where the industrial assets provide a consistent source of volumes for marketing operations, which in turn provides valuable market intelligence back to the production side. The business model also incorporates a recycling business to support the circular economy.

Strategic priorities are centered on three core pillars: responsible and ethical business practices, effective capital management, and strong operational and commercial performance. The capital management framework is structured around a net debt cap, which may be temporarily flexed for M&A opportunities, with a commitment to return excess cash flow to shareholders through distributions and buybacks. Investment is prioritized for transition-enabling commodities over fossil fuels, with a preference for targeted brownfield expansions, which are considered more capital-efficient and lower-risk than large-scale greenfield projects. A disciplined supply approach may involve the proactive curtailment of production in response to market oversupply. The enterprise actively manages its portfolio through strategic acquisitions and disposals of non-core or sub-scale assets to enhance overall quality and diversification. A key long-term objective is to progress a suite of organic growth options, particularly in transition metals, to meet future demand, subject to supportive market conditions and investment considerations.

Board composition includes 8 directors, with 4 women as of February 2025. The Chairman is not independent, while the remaining Non-Executive Directors are designated as independent. Board oversight is structured through 5 permanent committees: Audit; Nomination; Remuneration; Health, Safety, Environment and Communities (HSEC); and Ethics, Compliance and Culture (ECC). All members of the ECC Committee are designated as workforce engagement directors. The CEO, Gary Nagle, has been with the organization since 2000 and was appointed to his current role in July 2021. A key governance feature is the ongoing engagement with 2 independent compliance monitors mandated under resolutions with the US Department of Justice. These monitors, appointed in June 2023, are assessing the effectiveness of the ethics and compliance program and internal controls. The organization is actively implementing the monitors' recommendations following their first report in March 2024 and their second review period. The Board conducts an annual performance evaluation, which was performed internally in 2024.

The sustainability approach is guided by the 2024-2026 Climate Action Transition Plan (CATP), which was approved by over 90% of voting shareholders. This plan establishes targets to reduce scope 1, 2, and 3 industrial emissions by 15% by the end of 2026, 25% by the end of 2030, and 50% by 2035, against a restated 2019 baseline, while maintaining an ambition for net-zero industrial emissions by 2050. A core component of this strategy is the responsible managed decline of the thermal coal portfolio. Workplace safety is managed through the 'SafeWork' program, which sets minimum expectations and mandatory Fatal Hazard Protocols to prevent incidents. In 2024, the organization initiated a review of its salient human rights risks to inform due diligence across its assets and sourcing practices, aligning with the UN Guiding Principles on Business and Human Rights. A new Social Contribution Framework was launched in 2024 to guide community partnerships and social investment, aiming to build local resilience and reduce dependency on operations. Significant investments continue to be made in the Ethics and Compliance Programme, enhancing processes and systems in response to external recommendations.

A significant structural development in 2024 was the acquisition of a 77% interest in Elk Valley Resources from Teck Resources, which closed in July 2024. Following extensive shareholder consultation, the Board decided to retain its combined coal and carbon steel materials business. The organization is party to an agreement for its 49.9% owned joint venture, Viterra, to merge with Bunge Limited in a cash and stock transaction, which is awaiting final regulatory approvals. The disposal of the company's interest in Volcan was completed in May 2024. As of February 2025, major shareholders with interests of 3% or more include Ivan Glasenberg with 9.96%, Qatar Holding LLC with 8.60%, BlackRock, Inc. with 7.35%, and The Capital Group Companies, Inc. with 5.29%. In February 2025, the company announced a share buyback program of up to $1.0 billion, with intended completion by August 2025.