WEBVTT - Glencore on Net-Zero Mining 0:00:00.440 --> 0:00:03.200 They sustain a Perkins and you're listening to Switched on 0:00:03.520 --> 0:00:06.840 the BIENNF podcast. If you listen regularly, you'll know that 0:00:06.920 --> 0:00:10.480 we typically interview a bienny F analyst about something they've 0:00:10.480 --> 0:00:14.720 been researching. However, on occasion we mix in external guests 0:00:14.720 --> 0:00:17.319 to provide their perspective from the coal face of the 0:00:17.440 --> 0:00:21.680 energy transition. And yes, that was an intentional pun because 0:00:21.720 --> 0:00:26.120 today I speak with Anna Krutikov, head of Sustainable Development 0:00:26.200 --> 0:00:31.120 at Glencore. Glencore is a multinational commodity trading and mining 0:00:31.360 --> 0:00:35.120 Fortune five company and they have a net zero twenty 0:00:35.159 --> 0:00:38.840 fifty ambition across their mining operations for scope one, two 0:00:39.240 --> 0:00:42.800 and three, meaning not only the mining but the use 0:00:42.840 --> 0:00:47.360 of their products like coal. Anna explains Glencore's targets, the 0:00:47.400 --> 0:00:51.400 opportunities a mining company has in the energy transition around 0:00:51.440 --> 0:00:55.200 things like battery metals, and some of the ethical considerations 0:00:55.240 --> 0:01:00.520 associated with decarbonization timelines, among many other things. Or Bloomberg 0:01:00.520 --> 0:01:02.760 subscribers who want to know about B and F s 0:01:02.800 --> 0:01:06.679 research on the energy transition or on corporate sustainability. This 0:01:06.800 --> 0:01:09.039 can be found on the Bloomberg terminal at b NF 0:01:09.120 --> 0:01:11.680 GO at BNF dot com or on our mobile app. 0:01:12.319 --> 0:01:14.720 As a reminder, B and E F does not provide 0:01:14.720 --> 0:01:17.320 investment or strategy advice, and we have a very complete 0:01:17.319 --> 0:01:20.640 disclaimer at the end of the show. But now I'm 0:01:20.640 --> 0:01:30.000 going to speak with Anna. First of all, thank you 0:01:30.120 --> 0:01:33.080 very much for joining us today on switched On. I 0:01:33.120 --> 0:01:35.200 want to know a little bit more about you as 0:01:35.280 --> 0:01:37.000 we get started. I would love to know how you 0:01:37.080 --> 0:01:39.840 first got involved in the mining industry. Thanks day, and 0:01:39.880 --> 0:01:42.160 it's it's great to be on this podcast. Thank you. 0:01:42.480 --> 0:01:46.480 I probably first got interested in mining in my previous career, 0:01:46.560 --> 0:01:50.440 previous job in the asset managements industry, where I was 0:01:50.600 --> 0:01:52.919 part of what is today called an e s GT. 0:01:53.200 --> 0:01:56.240 We were probably one of the first in London to 0:01:56.320 --> 0:01:59.880 be doing this work, and I just got really fascinated 0:02:00.000 --> 0:02:05.520 by the mining industry and by the scale of the change, 0:02:05.560 --> 0:02:07.880 the positive impact that it could have, and also just 0:02:08.120 --> 0:02:11.160 absolutely the kind of the very essential nature of its 0:02:11.560 --> 0:02:15.359 products that it was producing. So I spent a bit 0:02:15.400 --> 0:02:18.920 of time analyzing companies and looking at them from the 0:02:18.960 --> 0:02:21.720 outside in, and then I thought, well, I'd really love 0:02:21.800 --> 0:02:24.239 to know how it actually works on the inside, How 0:02:24.280 --> 0:02:27.440 does it actually work in practice? How do these issues 0:02:27.480 --> 0:02:31.320 get managed and thought about internally, and so I joined 0:02:32.280 --> 0:02:35.160 Extrata at the time and then following the merger, came 0:02:35.200 --> 0:02:39.640 into Glencore. There's sustainability in the name of your title 0:02:39.680 --> 0:02:42.399 at Glencore, but every company that I talked to who 0:02:42.480 --> 0:02:46.320 has a sustainability or E s G focused role, each 0:02:46.320 --> 0:02:48.280 of them is sort of different. I mean, even then 0:02:48.320 --> 0:02:51.120 I just convoluted the two terms. Sustainability is focused on 0:02:51.160 --> 0:02:52.760 what a business does, in E s G is more 0:02:52.760 --> 0:02:55.800 focused on the reporting. So what does head of Sustainable 0:02:55.840 --> 0:03:00.359 Development mean at Glencore. You're right, it does its lots 0:03:00.400 --> 0:03:03.560 of different things and lots of different companies. In glen Core, 0:03:04.000 --> 0:03:09.960 my responsibility is really engaging with our external stakeholders, hearing 0:03:10.160 --> 0:03:13.920 what does the outside world expect of us, communicating to 0:03:14.000 --> 0:03:16.960 the outside world what we're doing and how we're doing it, 0:03:17.480 --> 0:03:22.200 and then translating those expectations of the outside world into 0:03:22.360 --> 0:03:26.680 our company and thinking about how to translates it into 0:03:26.919 --> 0:03:32.280 the operational landscape. And clearly one of the biggest expectations 0:03:32.280 --> 0:03:36.160 that our stakeholders have today, of us, of of anybody, 0:03:36.280 --> 0:03:40.040 really is the thinking around the transition to a low 0:03:40.120 --> 0:03:42.800 carbon economy. And so that's been something that's been a 0:03:42.880 --> 0:03:46.040 very significant part of my role for the last few years, 0:03:46.080 --> 0:03:48.400 and it looks like it's only going to increase. But 0:03:48.520 --> 0:03:51.160 that is clearly when we look at our at the 0:03:51.200 --> 0:03:54.280 expectations that the outside world has of us. In addition 0:03:54.320 --> 0:03:58.960 to managing our operations responsibly managing our environmental and social footprint, 0:03:59.400 --> 0:04:02.960 it's all so hugely centered around what are we as 0:04:02.960 --> 0:04:07.360 a company doing to as part of the global transition 0:04:07.440 --> 0:04:10.960 to low common economic one. So you noted that one 0:04:10.960 --> 0:04:12.920 of the things that drew you to the mining industry 0:04:13.120 --> 0:04:15.600 was the ability to be part of this transition. And 0:04:16.120 --> 0:04:18.800 when you started or when looking at the company to 0:04:18.839 --> 0:04:21.839 begin with, let's start talking about the emissions. So where 0:04:21.839 --> 0:04:23.880 do the emissions come from and where is the work 0:04:23.920 --> 0:04:27.560 to be done? So there are two primary sources of 0:04:27.600 --> 0:04:30.839 emissions for a company like glanc Core. The first source 0:04:31.080 --> 0:04:34.320 is the emissions arising from its own activities, so the 0:04:34.360 --> 0:04:38.840 so called Scope one and two emissions arising from the 0:04:38.960 --> 0:04:42.120 use of diesel in our trucks or the use of 0:04:42.240 --> 0:04:46.080 electricity in our smell test the emissions that we cause 0:04:46.279 --> 0:04:51.440 directly through our operations. The second source of emissions is 0:04:51.720 --> 0:04:54.320 from the use of our products um and in the 0:04:54.360 --> 0:04:57.440 case of blank row with our portfolio of co operations, 0:04:57.720 --> 0:05:00.920 the majority of those emissions are coming the use of 0:05:00.960 --> 0:05:04.919 the code that we produce by our customers. Yes, so 0:05:05.000 --> 0:05:08.040 this this is the Scope three element. So then that 0:05:08.120 --> 0:05:13.360 leads me next into what our glend cores targets. When 0:05:13.360 --> 0:05:15.960 we think about these three scopes of emissions for a 0:05:16.000 --> 0:05:19.040 company like glenk where with the product portfolio that we have, 0:05:19.600 --> 0:05:23.760 about ten percent of our total emissions footprint comes from 0:05:23.760 --> 0:05:25.919 our Scope one and two emissions, So the emissions that 0:05:26.000 --> 0:05:30.760 are specific to our operations and the remainder comes from 0:05:30.800 --> 0:05:33.400 from the use of our product, and that split is 0:05:33.600 --> 0:05:37.920 fairly consistent across the large diversified mining sector. So when 0:05:37.920 --> 0:05:39.920 we thought about our targets, when we thought about, well, 0:05:39.920 --> 0:05:43.720 what does a meaningful commitment to decorganization look like, we 0:05:43.760 --> 0:05:47.160 realize that it has to include emissions from our products 0:05:47.160 --> 0:05:50.000 as well as those from our own operations. So we 0:05:50.080 --> 0:05:52.760 must think in terms of our operational footprint, but also 0:05:52.800 --> 0:05:57.960 holistically about our portfolio. So our targets are we have 0:05:58.080 --> 0:06:01.719 a short term target of reducing our Scope one, two 0:06:01.800 --> 0:06:08.520 and three emissions by by against nine levels. Then in 0:06:09.520 --> 0:06:12.120 five we have set ourselves a target of reducing our 0:06:12.120 --> 0:06:16.760 missions by and then finally we have an ambition of 0:06:16.800 --> 0:06:21.640 achieving net zero by again across our total footprint. And 0:06:21.640 --> 0:06:24.880 I keep emphasizing that because when we thought about our missions, 0:06:24.880 --> 0:06:28.880 we thought, well, focusing purely on our industrial footprints is important, 0:06:29.279 --> 0:06:31.680 and obviously it's something that we must do, but it's 0:06:31.720 --> 0:06:35.119 really only ten of the total footprints. So we must 0:06:35.160 --> 0:06:37.400 think about everything. We must think about our company as 0:06:37.440 --> 0:06:39.320 a whole. We must think about our portfolio, on our 0:06:39.320 --> 0:06:42.080 business strategy, and to think about what we can do 0:06:42.160 --> 0:06:45.880 to reduce the emissions from our product as well as 0:06:45.920 --> 0:06:49.359 from our own operations. So how were the timelines chosen? 0:06:49.400 --> 0:06:53.640 Were they reverse engineered off of warming projections from the 0:06:53.680 --> 0:06:56.000 I B c C or were they really focused more 0:06:56.040 --> 0:06:59.040 around this is what we think is actually feasible if 0:06:59.080 --> 0:07:03.599 we're going to pivot these operations and really transition them 0:07:03.680 --> 0:07:07.359 rather than offload the assets to different companies. We started 0:07:07.360 --> 0:07:10.400 out looking at the analysis that's been done by the 0:07:10.480 --> 0:07:12.720 I P c C and really thinking about what does 0:07:12.760 --> 0:07:15.000 the range need to look like if we are to 0:07:15.080 --> 0:07:18.720 support the goals of the Paris Agreement. So we started 0:07:18.720 --> 0:07:21.760 out looking at the midpoint, and we looked at the 0:07:21.880 --> 0:07:25.120 range that would be necessary for us to achieve, and 0:07:25.160 --> 0:07:28.600 we then reviewed that against our business portfolio, our business strategy, 0:07:28.800 --> 0:07:32.760 our footprint to understand what would be a stretching but 0:07:33.320 --> 0:07:37.640 possible target for our business. And then we work backwards 0:07:37.640 --> 0:07:40.840 and thought about, well, you know is a key it's 0:07:40.840 --> 0:07:43.800 obviously the midpoint in the journey. It's it's a critical 0:07:44.240 --> 0:07:47.400 milestone for us as a company. But working backwards to 0:07:47.840 --> 0:07:51.080 the more sort of short term horizon, again we thought 0:07:51.080 --> 0:07:54.480 about the different scenarios that have been set out, whether 0:07:54.560 --> 0:07:57.880 by the ib c C or the International Energy Agency, 0:07:57.960 --> 0:08:02.960 and that's how we arvived at our target of by 0:08:03.160 --> 0:08:06.000 again think you also about you know, our own company 0:08:06.080 --> 0:08:09.160 and how how can we set ourselves a target that 0:08:09.280 --> 0:08:13.080 is stretching, that is consistent with the decorganization trajectories that 0:08:13.120 --> 0:08:16.640 have been set out, but also that is meaningful within 0:08:16.720 --> 0:08:21.360 our organization. So these targets were well received, I believe 0:08:21.360 --> 0:08:24.520 by the investment community. And how long ago did you 0:08:24.520 --> 0:08:28.080 announce them? We first announced our targets in December of 0:08:28.160 --> 0:08:30.920 last year, and I think the and and thank you 0:08:30.960 --> 0:08:33.559 for something that they were well received. We're very pleased 0:08:33.600 --> 0:08:37.400 by the very constructive engagement that we've had the important 0:08:37.520 --> 0:08:40.400 components of our targets that I think is different from 0:08:40.520 --> 0:08:43.320 from the industry, and I think was particularly important to 0:08:43.520 --> 0:08:47.800 our investors was the inclusion of Scope three in our commitments, 0:08:48.040 --> 0:08:50.960 So moving beyond purely thinking about our industrial footprints and 0:08:51.000 --> 0:08:54.280 thinking about our portfolio holistically and thinking about the emissions 0:08:54.320 --> 0:08:57.400 from from our products. So we announced our first suite 0:08:57.440 --> 0:09:01.319 of targets in December of last year, but we obviously 0:09:01.320 --> 0:09:04.880 we continue to evaluate the work that's being done. We've 0:09:04.920 --> 0:09:07.959 seen a lot of additional modeling being done by the 0:09:08.000 --> 0:09:11.320 i A. For example, they came out with some additional 0:09:11.360 --> 0:09:15.480 scenario modeling earlier this year, and so we reviewed our 0:09:15.520 --> 0:09:20.720 targets and increase them. We moved from by in terms 0:09:20.720 --> 0:09:25.240 of emissions reduction to by five as we continue to 0:09:25.320 --> 0:09:29.920 analyze those uh, those those scenarios and those trajectories and 0:09:30.000 --> 0:09:34.400 continue to ensure that our commitments are tracking to those. 0:09:34.559 --> 0:09:37.800 Let's talk a bit about getting there. How is Glencore's 0:09:37.840 --> 0:09:42.920 business going to change, restructure, reorganized, refocused to meet these 0:09:42.960 --> 0:09:46.040 targets If we move through the different scopes of emissions. 0:09:46.320 --> 0:09:49.240 In terms of our Scope one and two emissions, we 0:09:49.360 --> 0:09:52.480 are doing a lot of work across the organization to 0:09:52.559 --> 0:09:57.440 identify opportunities to reduce our emissions from our operations, whether 0:09:57.600 --> 0:10:03.080 it's looking at lower emission vehicle technologies, whether it's looking 0:10:03.080 --> 0:10:07.839 at automation, or looking at increasing the amounts of renewable 0:10:07.880 --> 0:10:11.400 power that we're purchasing to support our our smelters. So 0:10:11.559 --> 0:10:15.000 there is an industrial decarbonization program that's in place, and 0:10:15.080 --> 0:10:21.440 that is continuously valuating different opportunities and incorporating them into 0:10:21.600 --> 0:10:26.199 our project management frameworks. From a portfolio perspective, and again 0:10:26.240 --> 0:10:30.040 bearing in mind that our total emissions footprints arises from 0:10:30.080 --> 0:10:33.720 the use of our products by our customers. We have 0:10:33.800 --> 0:10:37.920 made a commitment to prioritize capital allocation towards the metals 0:10:37.960 --> 0:10:41.319 that support the transition to a low carbon economy, which 0:10:41.360 --> 0:10:44.960 means that over time, we've made a commitment to decline 0:10:45.080 --> 0:10:48.600 our production of coal across our portfolio, but to do 0:10:48.640 --> 0:10:51.440 so in a responsible manner. So rather than you know, 0:10:51.480 --> 0:10:55.280 pressing the switch as some have asked us, and shutting 0:10:55.280 --> 0:10:57.839 down the mind and walking away from them overnight, we 0:10:58.000 --> 0:11:01.200 recognize that we have a responsibility see to our workforce, 0:11:01.240 --> 0:11:04.000 and to our communities and to the environments in which 0:11:04.040 --> 0:11:08.520 we operate to manage the decline of those operations over 0:11:08.640 --> 0:11:12.560 time and to do so in a responsible, consistent manner. 0:11:13.160 --> 0:11:16.120 So over over time and in line with the targets 0:11:16.120 --> 0:11:19.360 that we've set ourselves, we are looking to decline the 0:11:19.400 --> 0:11:23.160 production of our of our coal operations and that is 0:11:23.280 --> 0:11:27.600 a key contributor to our overall emissions reduction. So you're 0:11:27.600 --> 0:11:31.480 declining your coal operations and looking at these measure saying 0:11:31.559 --> 0:11:35.760 energy transition focused metals, what would which medals are those? 0:11:35.760 --> 0:11:39.520 What would them be? Glencra has a uniquely diversified portfolio, 0:11:39.720 --> 0:11:44.199 so we have a significant copper exposure, a copper portfolio, 0:11:44.320 --> 0:11:47.720 we have a number of nickel producing mines um we're 0:11:47.720 --> 0:11:50.760 one of the largest producers of cobalts, which is obviously 0:11:50.800 --> 0:11:55.760 a critical mineral in um in enabling the transition to 0:11:56.520 --> 0:11:59.520 a low car low carbon economy through the change in 0:11:59.559 --> 0:12:02.880 transfer station and we also have a number of zinc, 0:12:02.960 --> 0:12:06.120 chrome and alloys operations, So we have a very diversified 0:12:06.120 --> 0:12:09.360 portfolio of metals, all of which play a critical role 0:12:09.480 --> 0:12:13.720 either in continuing to meet the needs of society or 0:12:13.760 --> 0:12:17.920 in enabling that transition to a low carbon economy by 0:12:18.559 --> 0:12:21.800 providing the metals and needed for the energy systems and 0:12:21.800 --> 0:12:25.439 for the transportation industry, and you mentioned your workforce. This 0:12:25.559 --> 0:12:28.200 has definitely been a hot button topic around the coal 0:12:28.240 --> 0:12:34.040 industry around the world because coal mining closures are not uncommon, 0:12:34.480 --> 0:12:37.520 but in several places around the world, not excluding the US, 0:12:37.600 --> 0:12:39.360 and there's been a lot of talk around what do 0:12:39.440 --> 0:12:42.920 we do with this workforce? Do you foresee this workforce 0:12:43.240 --> 0:12:47.360 working in another mining capacity in other parts of the world, 0:12:47.440 --> 0:12:50.520 because I'm even seeing you know, the goal coal Balt 0:12:50.559 --> 0:12:52.920 is a good example of there may not necessarily be 0:12:53.160 --> 0:12:55.720 the same workforce at a coal mine that would then 0:12:55.760 --> 0:12:59.400 be available to mine cobalt. Look your rights, it's I 0:12:59.400 --> 0:13:02.480 think it's one the challenges that we face, not just 0:13:02.520 --> 0:13:04.280 in terms of the workforce, but also in terms of 0:13:04.320 --> 0:13:08.160 the communities that live around these operations and will obviously 0:13:08.240 --> 0:13:13.959 be exposed to um challenges if the operations come to 0:13:13.960 --> 0:13:17.679 come to an end within Blanc or we acquire our 0:13:17.720 --> 0:13:21.360 operations to manage to maintain closure plans, and the closer 0:13:21.480 --> 0:13:25.160 they're getting to that date of closure, the more effort 0:13:25.160 --> 0:13:28.280 there is expected in terms of engaging with the workforce 0:13:28.280 --> 0:13:32.839 and engaging with the community, and some of the opportunities 0:13:32.920 --> 0:13:37.560 might be redeployments to other mining mining operations. Where that's possible, 0:13:37.960 --> 0:13:40.880 it might be retraining um And this is where local 0:13:40.920 --> 0:13:44.079 governments play a critical role, particularly when we're thinking in 0:13:44.120 --> 0:13:49.520 the context of this just transition concept. As local regional 0:13:49.559 --> 0:13:54.360 governments are thinking about transitioning their regions towards a low 0:13:54.400 --> 0:13:58.000 carbon economy, they may be thinking about building up renewables 0:13:58.040 --> 0:14:04.400 capacity or develop innovation opportunities, and so we as as 0:14:04.240 --> 0:14:07.280 as a mining company, will be working very closely with 0:14:07.800 --> 0:14:12.520 those regional authorities to understand how we can support that 0:14:12.600 --> 0:14:17.600 regional development plan through our operational closure planning. So having 0:14:17.679 --> 0:14:21.200 this plan that's clearly defined in terms of when you 0:14:21.240 --> 0:14:24.520 want to achieve certain targets certainly gives government something that 0:14:24.560 --> 0:14:27.400 they can then rely on in terms of to your 0:14:27.400 --> 0:14:30.280 point on the just transition, thinking about what happens to 0:14:30.320 --> 0:14:33.360 these people on the other side, what are you your 0:14:33.440 --> 0:14:37.560 views right now on the existing emissions reduction targets for 0:14:37.640 --> 0:14:42.200 the countries that you're operating and are they realistic or 0:14:42.240 --> 0:14:45.320 some of them too ambitious, And how does this impact 0:14:45.320 --> 0:14:47.760 the way that that you look at achieving these targets. 0:14:48.280 --> 0:14:50.400 I think that that we have to look at these 0:14:50.400 --> 0:14:53.280 targets as as a point in time you know, if 0:14:53.280 --> 0:14:56.960 we think about how much has changed in this space, 0:14:57.080 --> 0:15:00.200 even just in the lost twelve to eighteen months, you know, 0:15:00.240 --> 0:15:02.680 we have all the major economies of the world, including 0:15:02.760 --> 0:15:08.120 China and the US, committing or recommitting to the Paris Agreement, 0:15:08.160 --> 0:15:13.120 committing to achieving net zero by fifty or twenties sixty. 0:15:13.160 --> 0:15:17.200 We've seen some very ambitious targets being put forward by 0:15:17.200 --> 0:15:20.520 by the European Union and by the United Kingdom. So 0:15:20.640 --> 0:15:24.360 we've seen so much happened so quickly in this space 0:15:24.520 --> 0:15:27.680 that it seems clear that the forward momentum is is 0:15:27.760 --> 0:15:31.320 very strong if we look at the individual targets, the 0:15:31.320 --> 0:15:34.800 the nationally determined contributions that have been set forward by 0:15:34.920 --> 0:15:38.240 by various countries around the world. You know, we've seen 0:15:38.320 --> 0:15:40.800 some commentary from the likes of the ib c C 0:15:41.080 --> 0:15:45.520 that they're not sufficiently ambitious or rapid to achieve the 0:15:45.600 --> 0:15:48.840 level of change that is needed. But I think what 0:15:48.960 --> 0:15:51.400 we must also take into account is the dynamics of 0:15:51.520 --> 0:15:54.000 change and the momentum, and the fact that you know, 0:15:54.160 --> 0:15:58.040 to alter eighteen months ago, this home minded focus on 0:15:58.160 --> 0:16:02.040 achieving net zero was not even uh on on on 0:16:02.080 --> 0:16:05.000 our radar. When you think about the pace of change. 0:16:05.320 --> 0:16:09.480 I'm optimistic that we will see continued momentum carry forward 0:16:09.640 --> 0:16:13.960 and and and increase the pace of ambition. In some 0:16:14.080 --> 0:16:17.440 of these contributions, things do seem like they're happening slowly 0:16:17.480 --> 0:16:20.160 and then suddenly quite fast. So see if we can 0:16:20.160 --> 0:16:24.240 continue to accelerate that momentum. When we think about communities 0:16:24.280 --> 0:16:29.040 that are dependent on coal for energy right now various kinds, 0:16:29.600 --> 0:16:32.640 there's energy access, and then there's the fact that oftentimes 0:16:32.640 --> 0:16:37.160 it's the same communities that have will be experiencing outsized 0:16:37.200 --> 0:16:41.680 impacts of climate change. First, how does a company like yours, 0:16:41.720 --> 0:16:44.120 when you're focusing on these scope three emissions kind of 0:16:44.160 --> 0:16:48.560 way up the two regarding energy access and then climate impacts, 0:16:48.600 --> 0:16:50.880 given that you know there's the right now and then 0:16:50.960 --> 0:16:54.640 there's the not so far away future. And that is 0:16:54.680 --> 0:16:58.520 exactly why we looked at the emissions arising from our 0:16:58.560 --> 0:17:01.880 products as well as those from from our operations. When 0:17:01.880 --> 0:17:04.879 we think about the transition to low carbon, when we 0:17:04.920 --> 0:17:09.080 think about the transition to renewable energy, we are cognizant 0:17:09.119 --> 0:17:11.880 that we cannot just flip the switch. Forgive the pun. 0:17:12.280 --> 0:17:17.200 Can't overnight switch to renewables. You are unswitched on after all, 0:17:18.840 --> 0:17:25.639 so there's switching unintentional, but we you know, under any 0:17:25.680 --> 0:17:28.359 scenario that's been set out by the the I A 0:17:28.640 --> 0:17:31.480 and by the others, cole continues to play a role. 0:17:31.880 --> 0:17:35.720 It diminishes, It diminishes very significantly under certain scenarios, but 0:17:35.800 --> 0:17:40.359 it is there. And as we are switching to the renewables, 0:17:40.400 --> 0:17:43.479 as we're increasing the contents of renewables and our energy systems, 0:17:43.520 --> 0:17:47.680 as we're improving the efficiency of energy storage and energy transmission, 0:17:48.160 --> 0:17:53.119 we must continue to maintain that access to energy, particularly 0:17:53.200 --> 0:17:57.400 in the poorer countries that don't necessarily have the capacity 0:17:57.800 --> 0:18:02.680 or the support today to get that that transition to renewables. 0:18:02.680 --> 0:18:05.000 So the coal continues to play a role. It will 0:18:05.000 --> 0:18:07.439 diminish over time, but today it is part of the 0:18:07.520 --> 0:18:10.520 energy mix. So when we thought about our commitments, we 0:18:10.600 --> 0:18:13.560 thought that that was part of our thinking. But we 0:18:13.920 --> 0:18:16.359 as as you say, we realize that there's the needs 0:18:16.359 --> 0:18:18.760 of today, but there's also the needs of tomorrow, and 0:18:18.840 --> 0:18:22.520 so we committed to reduce the production over time so 0:18:22.560 --> 0:18:26.560 that as we are transitioning, we can the coal can 0:18:26.600 --> 0:18:30.840 decline and the proportion of renewables is increasing. Our targets 0:18:30.920 --> 0:18:34.640 have been set, so we are we're committed to that trajectory. 0:18:35.000 --> 0:18:37.960 We as as as we said, we do anticipate that 0:18:38.040 --> 0:18:42.000 coal will remain some part of the conversation, but our 0:18:42.040 --> 0:18:45.240 reductions are are put in place in line with the 0:18:45.359 --> 0:18:48.080 scenarios that have been set by the by the I 0:18:48.320 --> 0:18:50.600 A and by the I P c C. Well, so 0:18:51.000 --> 0:18:54.080 you're saying that coal will still remain part of the 0:18:54.119 --> 0:18:57.199 portfolio in the future. And if we're thinking about the 0:18:57.280 --> 0:19:00.199 mining industry and this net zero ambition that you have, 0:19:01.000 --> 0:19:04.520 other than buying offsets, which I don't believe Glencore does, 0:19:05.200 --> 0:19:08.760 how does or maybe what are the technologies that may 0:19:08.800 --> 0:19:12.080 get Glencore to net zero. When we looked at our 0:19:12.560 --> 0:19:15.800 when we look at our trajectory of our of our targets, 0:19:16.119 --> 0:19:20.600 we made the decision not to use offsets as part 0:19:20.600 --> 0:19:23.639 of our day organization trajectory. It may be something that 0:19:23.680 --> 0:19:26.040 we look at for commercial purposes, but in terms of 0:19:26.080 --> 0:19:30.240 reducing our emissions footprint, we believe that we will be 0:19:30.280 --> 0:19:36.800 able to achieve our target of reduction by without without 0:19:36.920 --> 0:19:39.800 using offsets. And one of the reasons for that is, well, 0:19:39.840 --> 0:19:42.480 there's a couple of reasons for that. One based on 0:19:42.560 --> 0:19:45.760 our assessment of the Paris rule book. The rules around 0:19:45.800 --> 0:19:49.080 offsets remain very unclear, and we've seen some criticism come 0:19:49.160 --> 0:19:54.480 up of less scrupulous scrupulous treatments of offsets globally, um, 0:19:54.600 --> 0:19:58.720 you know, instances of double counting, or instances of just 0:19:58.760 --> 0:20:03.719 a lot of confusion around how offsets are treated, accounted 0:20:03.840 --> 0:20:08.600 for and managed. So we were concerned by this level 0:20:08.600 --> 0:20:12.240 of uncertainty and we didn't want to rely on something 0:20:12.240 --> 0:20:14.040 where there's still so much work that needs to be 0:20:14.080 --> 0:20:17.400 done as a pillar of our dec organization. We're also 0:20:17.600 --> 0:20:21.320 very conscious that the expectation is that offsets can be 0:20:21.440 --> 0:20:25.000 used for those hard to abate emissions. So we put 0:20:25.040 --> 0:20:27.119 on ourselves the expectation to do as much as we 0:20:27.200 --> 0:20:30.720 can on our own, on our own efforts, UM, and 0:20:30.760 --> 0:20:34.080 then look at what is left and consider whether perhaps 0:20:34.160 --> 0:20:37.440 in the future, with greater regulatory certainty, we may look 0:20:37.440 --> 0:20:40.119 at usets as a possible option. What are some of 0:20:40.119 --> 0:20:42.800 the technologies that we can that we're looking at. You know, 0:20:42.880 --> 0:20:45.320 there is a lot of work that we are we 0:20:45.359 --> 0:20:46.960 can do, and we think it's very interesting in the 0:20:47.000 --> 0:20:53.240 renewable space, in increasing the proportional renewable energy in our 0:20:54.160 --> 0:20:57.840 in our purchases of energy globally, for our operations. There 0:20:57.840 --> 0:21:00.560 are a number of technologies around which U seeing the 0:21:00.600 --> 0:21:04.520 emissions from vehicles, sort of reducing the diesel the amount 0:21:04.560 --> 0:21:08.320 of diesel that we use in our operations to either 0:21:08.359 --> 0:21:10.960 reduce emissions or even zero emissions. I think that technology 0:21:11.000 --> 0:21:13.320 is still a little bit further off in the future, 0:21:13.520 --> 0:21:16.560 but certainly there's a lot of work being done towards it, 0:21:17.200 --> 0:21:20.160 greater deployment of battery vehicles. I think there's a lot 0:21:20.200 --> 0:21:23.600 of different opportunities that that we're looking at, and I 0:21:23.640 --> 0:21:27.280 think that's an important point. You know this, this challenge 0:21:27.320 --> 0:21:30.399 is so enormous and so complex, it requires all the 0:21:30.480 --> 0:21:34.439 different solutions. There's no single solution, there's no single technology, 0:21:34.440 --> 0:21:38.119 there's no single kind of magic pill that just solves 0:21:38.160 --> 0:21:41.040 the whole problems. So for a company as complex as ours, 0:21:41.080 --> 0:21:45.080 is diversified as ours, we're looking at multiple strategies, multiple 0:21:45.080 --> 0:21:49.080 opportunities that will all come together to help us drive 0:21:49.160 --> 0:21:52.560 that decorganization forward. Now for a very short break, stay 0:21:52.600 --> 0:21:58.760 with us, let's pivot a little bit, and let's talk 0:21:58.800 --> 0:22:03.359 about your publicly listed company. You know this, the reality 0:22:03.480 --> 0:22:07.120 of the investment community and their influence on the way 0:22:07.160 --> 0:22:13.160 companies behave is ever present, as investors are increasingly focused 0:22:13.240 --> 0:22:15.600 on E s G metrics and we've seen this by 0:22:15.640 --> 0:22:19.159 several funds just closing over the just the last month alone, 0:22:19.680 --> 0:22:22.960 very good size. How do you think the investment community 0:22:22.960 --> 0:22:25.919 should look at companies that I would consider really at 0:22:25.920 --> 0:22:29.080 the heart of the energy transition, those that have fairly 0:22:29.240 --> 0:22:32.760 large emissions profiles and have a long space to go, 0:22:32.880 --> 0:22:34.920 but then you know, a lot of opportunity, a lot 0:22:34.920 --> 0:22:37.639 of opportunity to make a big difference. How do you 0:22:37.680 --> 0:22:40.399 think that they should look at these companies in terms 0:22:40.440 --> 0:22:43.600 of time horizon? How should they look at these companies 0:22:43.640 --> 0:22:46.639 in terms of how quickly these companies are transitioning and 0:22:46.680 --> 0:22:50.320 the work that needs to be done. I think what's 0:22:50.359 --> 0:22:56.800 important in analyzing companies commitments to decorbonization is understanding to 0:22:56.840 --> 0:22:59.720 which to the the center which these commitments are holistic. 0:23:00.200 --> 0:23:03.720 So again I talked about this before. I'll give you 0:23:03.760 --> 0:23:07.760 an example. Our industrial emissions footprint is ten percent of 0:23:07.800 --> 0:23:12.080 our total footprint, So if we were to focus only 0:23:12.280 --> 0:23:16.600 on that portion of our footprint, we would be dismissing, 0:23:16.600 --> 0:23:19.760 would be ignoring the majority of the emissions that our 0:23:20.000 --> 0:23:25.320 company contributes to. So looking holistically at the emissions footprints, 0:23:25.320 --> 0:23:29.000 both from an operational perspective, but also from a portfolio perspective, 0:23:29.040 --> 0:23:34.280 I think is critical to assessing the company's commitment. I 0:23:34.320 --> 0:23:37.679 think also the way that these commitments are going to 0:23:37.760 --> 0:23:42.000 be achieved. You know, we get us sometimes well, why 0:23:42.040 --> 0:23:43.880 don't you just press the button? Why don't you just 0:23:44.280 --> 0:23:47.200 close these minds? Why don't you just stop operations that 0:23:47.280 --> 0:23:52.000 contribute significantly to to TO to the car global carbon footprints? 0:23:52.560 --> 0:23:55.000 And I understand where people are coming from with that question, 0:23:55.359 --> 0:23:57.720 But the challenge that we have is, you know, by 0:23:57.720 --> 0:24:01.840 pressing that button, we're putting thousands or tens of thousands 0:24:01.840 --> 0:24:04.360 of people out of jobs. We're impacting their families, were 0:24:04.359 --> 0:24:08.280 impacting those communities. By walking away from those operations, were 0:24:08.280 --> 0:24:11.639 potentially leaving them for somebody else to operate them, perhaps 0:24:11.680 --> 0:24:14.880 in a less responsible way. So the manner in which 0:24:14.920 --> 0:24:20.320 we achieve the decorganization, the ensuring that the decorganization is 0:24:20.359 --> 0:24:25.479 managed responsibly, that the transition is supported and enabled, and 0:24:25.600 --> 0:24:28.520 thoughts about also from the perspective of those people who 0:24:28.640 --> 0:24:31.840