Glencore stands by targeted 30% cut in emissions
JOHANNESBURG – Global mining and metals company Glencore has stood by its target of a 30 percent cut in scope 3 emissions by 2035.
Speaking during the annual general meeting, chairperson Tony Hayward told shareholders that the projection was real and was going to happen.
“I don’t want to get into a debate about systematics between projections and targets. I do want to re-emphasise that the projection we have made is a direct consequence of the capital allocation that we are making. I think it is much more robust than any of the so-called targets that other people have out there. You can actually see that the action we are taking last year, this year and on an ongoing basis will result in the projection we have made,” Hayward said.
In its climate change position published in February, Glencore committed to supporting the transition to a low carbon economy and said that the reduction of scope 3 emissions included the natural depletion of the its oil and coal resource base over time.
It said that it expected the depletion of its coal resource base in Colombia, and to a lesser extent, South Africa and Australia, to contribute to this reduction.
It's expected to achieve a 10 percent reduction in greenhouse gas emissions by 2020 compared to a 2016 base line.
Hayward said Glencore’s capital expenditure reflected investment in materials that supported the low carbon energy transition.
“We have made it clear that our expansionary capital is going into materials that are necessary for the energy transition,” said Hayward.
The company said previously that it was investing towards growth in the production of battery and conductive metals required for the transition to a lower carbon economy.
In 2019 Glencore said its capital expenditure was predominantly spent on key metals’ growth projects, including the development of Katanga copper in the Democratic Republic of Congo, Mopani copper in Zambia, the Zhairem zinc project in Kazakhstan and new nickel mines in Canada, one of which would become the one of the first fully electric mines in the world.
When complete, Katanga was expected to produce approximately 30 000 tons of cobalt per annum, helping supply a market that is expected to grow substantially to more than 200 000 tons by 2025.
The company is expected to announce new longer-term scope 1 and 2 targets that support the Paris goals during the course of the year.