Performance Score
Glencore's climate plan seems to lack ambition, in particular because of its lack of commitment to a trajectory validated by a scientific scenario. While most of the group's emissions are linked to the use of its products (particularly coal), Glencore does not envisage a gradual abandonment of its coal production and is continuing to invest in existing mines. The company will also probably buy 77% of Teck Resources' metallurgical coal production and supply activities (Canada) in the coming months and this next acquisition is not yet taken into account in the Climate Action Plan 2024-2026. Glencore's lack of information on its action plan and its investments in clean energy does not reflect a transformation of the core of its business model. In addition, the objectives it has set for 2026 and 2030 were fully and almost fully achieved respectively in 2023 while its decarbonisation strategy relies heavily on certificates (power purchase agreements and carbon credits) to achieve these objectives.
Narrative Score
Glencore's climate transition action plan is not considered aligned with a 1.5°C goal according to the ACT. The company lacks ambitious targets and does not present credible actions to reduce its emissions. In particular, the company does not plan to phase out its coal-related activities, which account for the largest share of its total emissions, and it relies mainly on certificates (power purchase agreements and carbon credits) to achieve its targets. Overall, the company does not plan to change its extractive-based business model to a circular one.
Trend score
The company should develop a credible and ambitious transition plan including the phase-out of coal from its portfolio and planned and measurable actions to reduce its emissions along its value chain, which do not rely primarily on the purchase of certificates. The company is also expected to evolve its extractive business model towards one based on circularity and recycling.
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