Water sampling at Alumbrera, Argentina 2015 Sustainable Development roadshow London, 18 May 2015
Agenda • Opening comments Tony Hayward, Chairman • Overview of Sustainable Development (SD) Peter Coates, Non-Executive Director, Chair HSEC • 2014 Performance highlights and next steps Ivan Glasenberg, Chief Executive Officer • Q&A 2 2
Ernest Henry copper mine, Cloncurry, Australia Opening comments Tony Hayward, Chairman
Our Values and who we are What we stand for Safety Entrepreneurialism Simplicity Responsibility Openness Our first priority in the Our approach fosters the We aim to achieve our key We recognise that our work can We value relationships and workplace is to protect the highest level of professionalism, deliverables as a path to have an impact on our society communication based on health and wellbeing of all our personal ownership and industry-leading returns, while and the environment. We can integrity, co-operation, workers. We take a proactive entrepreneurial spirit in all our maintaining a clear focus on profoundly about our transparency and mutual approach to health and safety. employees while never excellence, quality, performance in compliance, benefit, with our people, our Our goal is continuous compromising on the safety sustainability and continuous environmental protection, customers, our suppliers, improvement in preventing and wellbeing of our people. improvement in everything we human rights and health and investors, governments and fatalities, occupational disease This is important to our success do safety with society in general and injuries and the superior returns we aim to achieve for all our stakeholders Who we are One of the largest diversified vertically-integrated producers, processors and marketers of commodities We work with diverse customer base, including industrial, automotive, construction, steel, power generation, oil and food processing 4
SD strategy: we address the actual and potential impacts of our activities • We are committed to operating transparently and responsibly • Our values and Code of Conduct lay out our approach to sustainability and embody our expectations of our people and our business partners • Our policies and procedures support good business practice and we meet or exceed applicable laws and external requirements 5
A strong board – composition and roles Anthony Hayward Leonhard Fischer Non-Executive Director A(C), N, R Chairman H • CEO of BHF Kleinwort Benson • Former CEO of BP Group S.A. (formerly RHJ • CEO of Genel Energy (LON) International S.A) (EBR) • Chairman of Kleinwort Benson Bank Ltd and BHF-Bank AG William Macaulay Ivan Glasenberg, CEO Non-Executive Director A, R Executive Director H • Chairman and CEO of First • CEO of Glencore since 2002 Reserve • 30 years with Glencore • Chairman of Dresser-Rand • NED of Rusal (HKG) (NYSE) • NED of Pirelli (MI) • NED of Weatherford International (NYSE) John Mack Peter Coates Non-Executive Director H(C) Non-Executive Director R(C),N • 40 years of experience in the • Former CEO of Morgan Stanley resource industry • Member of the Advisory Board of CIC, • Non-executive Chairman of of International Business Council of Santos and NED of WEF, of NYC Financial Services Amalgamated Holdings (both Advisory Committee and of Shanghai ASX) International Financial Advisory Council Patrice Merrin Peter Grauer Non-Executive Director H Senior Independent • Former COO of Sherritt and former CEO of Non-Executive Director N(C), A Luscar (Canada’s largest coal company) • Chairman of Bloomberg • Former Chair of CML Healthcare (then TSX) • NED of Davita Healthcare • NED of Stillwater Mining (NYSE) and of (NYSE) Novadaq Technologies (NASDAQ, TSX) • Member of International Business Council of WEF 6 Committees: A Audit; H HSEC; N Nomination; R Remuneration; C Chair
Board’s focus in 2014 • Launch of HSEC policies addressing all material issues Ensuring that our values are upheld • Review and launch of new Code of Conduct that addresses the throughout the group needs of the organisation and reflects stakeholder feedback Safety is a top priority • Chair the annual Fatality Prevention Summit for safety professionals and heads of departments • Review all fatalities with operational managers • Reporting of High Potential Risk Incidents fully rolled out • Launch project to better understand and manage our contribution Creating value for on the ground society • Meetings with investors, industry organisations, media Engaging with internal and external • Site visits and discussions with senior management stakeholders External recognition • Key external memberships and commitments: • International Council on Mining & Metals • Voluntary Principles on Security & Human Rights • UN Global Compact • Extractive Industries Transparency Initiative • Partnering Against Corruption Initiative 7
Looking ahead Our objective is to ensure that systems are in place to enable us to act in accordance with our values and the expectations of our stakeholders 2015 priorities: • Maintain focus on eliminating fatalities and improving the safety record at our operations • Engage in informing the climate change agenda • Focus on addressing catastrophic hazards at our sites • Strengthen stakeholder partnerships to support our work on the ground 8
Newlands coal mine, Australia Overview of Sustainable Development Peter Coates, Non-Executive Director, Chair HSEC
Approach to SD: Glencore Corporate Practice (GCP) Our Values: fundamental principles by which we conduct our business Values Code of Conduct: how we work Code of in accordance with these Conduct principles Group policies : 1. Health and Safety Group policies: operational 2. Emergency response and crisis management 3. Catastrophic and fatal hazards management guidance detailing expectation of 4. Environmental management 5. Communities and stakeholder engagement key management processes 6. Human rights 7. Product stewardship 8. HSEC assurance 9. HSEC management framework 10. Risk management framework 11. Global anti-corruption Operational policies: commodity, asset or segment Operational policies specific operational standards Performance and alignment: data reporting, risk management Performance and alignment and assurance used to track performance 10
SD Performance – 2014 milestones Policies Code of Climate Conduct change on key HSEC issues launched revised and launched position published in early 2015 40% Improved Contribution reduction in transparency record fatalities on internal reporting project launched to mechanisms and indicates that we are better understand focusing on the right payments to and manage our areas governments impact on the ground Water Positions SD report strategy on key redesigned and enhanced issues in progress published on the website 11
Safety – Board involvement • We are committed to creating a strong safety culture at all levels of the organisation • Board continues to review all fatal incidents and share the learning across the group • In 2014, Chairman of the HSEC Committee chaired the first safety summit, bringing together our CEO, department heads and safety professionals from around the group to share learnings and agree the way forward • Following the launch of SafeWork in 2013, we recorded a 40% reduction in fatalities in 2014 and 42% reduction in LTIFR since 2010; – we are committed to improving performance further • Focus on Catastrophic Hazard Management across all departments using a common methodology aligned with ICMM guidelines 12
HSEC assurance Following the launch of the HSEC policies, our HSEC assurance process is designed to ensure compliance with policies and management of material risks • Annual cycle Board HSEC Committee • Risk-driven • High acceptance Inputs Execution Reporting • Catastrophic risks; • Site level • Findings, • Incidents; • 2 nd party recommendations and • External independence corrective actions stakeholders; • Delivered by reported to the Board; • HSEC performance subject matter • Corrective actions are experts identified and followed • Complemented by up departmental • Annual Board review ; Annual Board- internal assurance approved assurance programme Assurance criteria Aligned with international standards, HSEC policies and subject matter expertise 13
Stakeholder engagement • Engaging with stakeholders is a key part of our decision-making process and essential to our accountability • In 2014, the Board HSEC Committee engaged with the following groups: Internal External Site visits : 1:1 dialogue with Canada, Colombia, investors Kazakhstan Safety summit: Engagement with department heads and ICMM safety professionals Presentations and input from HSEC professionals in the organisation on key issues 14
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