Glencore Anual Report 2021

Annual Report
2021
Strategic Report | Corporate Governance | Financial Statements | Additional Information
Strategic Report
Our purpose Chairman’s introduction 04
Responsibly sourcing
Chief Executive Officer’s review 05
Investment case 08
Our market drivers 09
Business model 11
Our strategy for a sustainable future 12
the commodities that

Key performance indicators 16
Climate change 19
Sustainability 27
Our people 34
Section 172 and stakeholder engagement 38
advance everyday life

Ethics and compliance 43
Financial review 48
Risk management 68
Corporate Governance
Chairman’s governance statement 85
Directors and officers 86
Glencore.com Corporate governance report 90
ECC Committee report 96
HSEC Committee report 97
Audit Committee report 98
Nomination Committee report 100
Living our values Directors’ Remuneration Report 101
Our values reflect our Directors’ report 119
purpose, our priorities Financial Statements
and the beliefs by which Safety Responsibility Simplicity
Independent Auditor’s Report
we conduct ourselves. We never compromise on We take responsibility for our We work efficiently and focus to the members of Glencore plc 125
They define what it safety. We look out for one actions. We talk and listen to on what’s important. We Consolidated financial statements 143
another and stop work if it’s others to understand what avoid unnecessary complexity
means to work at Additional Information
not safe they expect from us. We work and look for simple,
Glencore, regardless of to improve our commercial, pragmatic solutions Alternative performance measures 234
location or role. They are social and environmental Other reconciliations 241
the heart of our culture performance Production by quarter – Q4 2020 to Q4 2021 243
Resources and reserves 250
and the way we do
business.
◊ Alternative performance measures
Adjusted measures referred to as Alternative
performance measures (APMs) which are not defined or
Integrity Openness Entrepreneurialism specified under the requirements of International
We have the courage to do We’re honest and We encourage new ideas and Financial Reporting Standards; refer to APMs section on
what’s right, even when it’s straightforward when we quickly adapt to change. page 234 for definitions, explanation of use and
communicate. We push We’re always looking for new reconciliations and note 2 of the financial statements for
hard. We do what we say and reconciliation of Adjusted EBIT/EBITDA.
treat each other fairly and ourselves to improve by opportunities to create value
with respect sharing information and and find better and safer ways See Page 234
encouraging dialogue and of working
feedback
Glencore Annual Report 2021 01
Our business at a glance
Where we operate Integrating sustainability Our Financial

throughout our business Highlights
Sustainability Financial review
Page 27 Page 48
Head Office Industrial assets Marketing office/other
CO2e Scope 1 and 2 Adjusted EBITDA◊ (US$ billion)

(Million tonnes)
21.3
25.7
2021
2020
2020: 11.6 2019
2020: 24.2
CO2e Scope 3 Net income/(loss) attributable to

(Million tonnes) equity holders
254
(US$ billion)
2020: 271
5.0
2020: (1.9)
2021
2020
2019
Targeted reductions Cash generated by operating

One of the world’s largest natural resource companies in total emissions activities before working capital
35 c135,000 >40 50%

changes, interest and tax
6
(US$ billion)
continents countries employees and contractors offices

by 2035 16.7
2020: 8.3
2021
2020
2019

Our business at a glance continued
Lost time injury frequency rate

Two business segments per million hours worked
Adjusted EBITDA◊ Industrial 2021

0.83
2020: 0.94
● Metal 70%
● Energy 30%
Total recordable injury frequency rate

per million hours worked
Industrial business
$17.1bn
2020: $7.8bn
Total Adjusted EBITDA◊ 2021
2.4
2020: 2.7
Adjusted EBITDA◊ Marketing 2021 $21.3bn

2020: $11.6bn
Total borrowings
(US$ billion)
2021 34.6
● Metal 61% 2020 37.5

● Energy 39%
2019 37.0
$4.2bn Net debt◊

(US$ billion)
Marketing business 2020: $3.7bn
2021 6.0
2020 15.8
2019 17.6

Chairman’s introduction Dear Shareholders ESG performance such as the relaunch of often disproportionate to such
SafeWork. Although we have seen a contribution.
I was honoured to be appointed as your
significant decline in fatalities, we are
Chairman last year. We continue to focus on our Values based
Transition,
saddened to report that we lost four of our
culture. The Company has invested
colleagues in industrial accidents during
I have spent my entire working life in the significant resources over the last few years
the year. We will continue our efforts to
mining and commodities business, having to build and implement a best-in-class
Renewal,
eliminate such events. We also progressed
started in 1980 with Phelps Dodge Corp. In ethics and compliance programme. To
our continued focus on tailings dams
that time, I have been fortunate to witness provide stakeholders with a better
management.
the industry’s transformation in many understanding of our programme, starting
Progress and ways. For example, Phelps Dodge was then

one of the titans of the global mining
industry while Glencore’s roots were a
The succession to Gary Nagle and an entire
senior business team with a new
generation of leaders was completed last
this year, we will publish a stand-alone
report on this vital area for our business
and reputation.
Performance trading company with no industrial assets.
Today Glencore is one of the industry

year. Gary has hit the ground running and
quickly taken over management of all
facets of the business leading to a smooth
On climate change, we continue to be a
mining industry leader in our approach
giants with large-scale, world-class mining and with our plans for the future. Having
and rapid transition in leadership.
assets and one of the world’s most published our first progress report in
enterprising trading and marketing We continue to rejuvenate our Board, with December 2021, we will be tabling a
businesses, while Phelps Dodge has long the retirements of Tony Hayward and John resolution on our progress for shareholders
since disappeared. Scale usually brings Mack last year and we were pleased to to vote on at our AGM.
bulk and bureaucracy with the stifling of welcome Cynthia Carroll and David
At the date of this report, the conflict in
innovation. What is so remarkable about Wormsley, as well as Gary Nagle as
Ukraine continues. We are looking to see
Glencore is that its entrepreneurial spark Executive Director.
how we can best support humanitarian
still burns brightly. The dislocation in
As reflected in this report, a number of efforts for the people of Ukraine.
markets in the last two years has provided
priorities for the Board were met in 2021,
opportunities for our marketing business ESG topics led by climate continue to
including strengthening our balance sheet
which led to record earnings for this dominate discussion in the industry and
and establishing a robust and transparent
segment. more widely. We are pleased to be able to
shareholder returns framework. Also,
make a meaningful contribution to this
We have initiated various business although we cannot forecast the timing
dialogue as our industry shows its
improvements across our operations, with certainty, we hope to resolve a
increasing importance to the green
ranging from innovations in the processes number of our outstanding historical
economy of the future. Glencore will be a
of individual assets to material new investigations this year and have
key player in providing the metals that are
procurement initiatives on equipment accordingly provisioned for these
the building blocks for the world’s energy
purchases. We are excited by our resolutions.
transformation.
promising and growing recycling business,
Management continued the work that had
which extracts metals from spent electric
been started more than a year ago in
batteries and electronic circuit boards,
simplifying our portfolio and in particular
which we see expanding as an important
looking at disposing of assets that are
part of the transition to a low-carbon
either non-core or are too small to make an
Kalidas Madhavpeddi, Chairman economy. Along with innovation, we have Kalidas Madhavpeddi,
effective contribution, with challenges
relentlessly pursued improvements in our Chairman

Chief Executive In spite of the ongoing challenges of Although 2022 is likely to see a moderation in
global growth, including as authorities seek to
Aided by strong cash generation, Net debt
Covid-19, 2021 was an extraordinary reduced during the year by $9.8 billion to $6.0
Officer’s review year for Glencore, reflecting rising
tame inflation, many commodity markets billion. Net funding also declined, however
currently exhibit low inventories and are down by a lesser $4.6 billion to $30.8 billion,
Progress and
demand for our metals and energy prone to supply disruption, which, when set due to increased readily marketable
products, record Adjusted EBITDA against the significant new investment in inventories on hand, on account of the
and the transition to new leadership. electrification and decarbonisation, should
performance
significantly higher prices noted above. With
support prices for our key metals in 2022 Net debt/Adjusted EBITDA and FFO/Net debt
and beyond. metrics of 0.28x and 282.3% respectively, we
through
As in 2020, the pandemic overshadowed our currently enjoy significant financial headroom
daily lives, remaining an ongoing challenge 2021 Financial scorecard and strength.
for colleagues, our families, our local Reflecting this environment and leveraging
challenge communities and society at large. As a the unique combination of our transition and Shareholder returns
responsible operator, our top priority is to energy commodities, along with the global At our investor update in December 2021, we
protect the safety and health of our people reach and scale of our marketing business, refined our capital allocation policy to
and change and the communities that host our

businesses. Sadly, we experienced four
fatalities in 2021. We believe all fatalities are
the Group has achieved a record Adjusted
EBITDA result of $21.3 billion, up 84% over
prior year. Net income before significant items
manage Net debt, in the ordinary course of
business, to around a c.$10 billion cap, with
deleveraging below such cap (after the base
avoidable, and are committed to our goal of increased 267% to $9.1 billion, while significant distribution), being periodically returned to
zero fatalities. items reduced Net income attributable to shareholders via special cash distributions
equity holders to $5.0 billion, mainly due to and/or share buybacks as appropriate.
While economic activity remained below the required accounting recycling to the
potential in many key global economies, our statement of income of Mopani’s non- In 2021, we delivered c.$2.8 billion of
sector continued to perform well, given its controlling interests upon its disposal, an shareholder returns, comprising a $1.6 billion
critical function in delivering the world’s impairment charge related to our Koniambo base cash distribution (in respect of 2020 cash
energy, food, housing, infrastructure and nickel operation and recording a provision for flows), a c.$500 million special cash
mobility requirements. Against the backdrop costs currently estimated to resolve the distribution and $750 million of share
of material global central bank various government investigations. purchases.
accommodation and government fiscal
In marketing, tight physical commodity For 2022, basis 2021 cash flows, we are
spending, prices for many of our key
markets and supply chain challenges, which recommending to shareholders a $0.26 per
commodities rose to multi-year or record
resulted in elevated levels of volatility, share (c.$3.4 billion) base cash distribution,
highs, reflecting resurgent global demand
generated ideal trading conditions, with payable in two equal instalments, comprising
and widespread supply challenges. Copper
Adjusted EBIT growing 11% to a record $3.7 $1 billion from Marketing cash flows and 25%
prices rose as mine production struggled to
billion. Strong trading performances were ($2.4 billion) of Industrial attributable cash flows.
meet general industrial expansion and new
energy demand. The rapid growth in electric delivered across all commodity departments. The application of our ‘Top up’ returns
vehicle sales supported double-digit demand Agricultural markets also offered favourable framework generates an additional payment
growth for nickel and cobalt, while surging market conditions, with our 49.9% share of of c.$550 million to restore Net debt to our
power costs and environmental controls Viterra’s earnings contributing $473 million. target optimal cap level of c.$10 billion. We are
disrupted zinc and aluminium supply. Industrial Adjusted EBITDA of $17.1 billion was therefore announcing a new $550 million
Thermal coal, oil and gas markets, impacted 118% higher than 2020, primarily reflecting share buyback programme to be completed
by substantial recent underinvestment in strong margin expansion at our copper, before release of our 2022 interim results,
supply capacity, and low inventory levels, ferroalloys and coal assets. Coal (Newc), representing an additional c.$0.04 per share.
were unable to efficiently respond to the rapid cobalt, copper, nickel and zinc average
Gary Nagle, Chief Executive Officer demand growth, significantly lifting prices. year-over-year price increases were 125%, 60%,
51%, 34% and 32% respectively.

Chief Executive Officer’s review

continued
Pathway to succeed in a net zero target lies within the range of IPCC 1.5°C We are committed to upholding a culture of
economy scenarios and our 2035 target is aligned with ethics and compliance across our business.
the IEA NZE 2050 scenario, itself consistent We have taken a number of remedial
During 2021 we identified further carbon
with IPCC. measures in light of what we have learned
reduction opportunities across the portfolio
during the investigations and have dedicated
and significantly expanded our Marginal At our 2021 AGM, we provided our substantial resources over the last few
Abatement Cost Curve. Additionally, our shareholders with their first advisory vote on years to upgrade and implement a best-in-
assessment of the impact of carbon prices on Year end net debt◊ our climate action transition plan, with more class Ethics and Compliance programme.
$6.0bn
industry cost curves for our key commodities than 94% of shareholders voting in favour. I This includes significant investments in
illustrated that our portfolio is resilient to a look forward to continued engagement with compliance personnel, systems and
range of carbon pricing scenarios given our our stakeholders as we progress the external assurance.
assessment that these costs will be passed implementation of our strategy and respond
onto the consumer and the favourable Returns to shareholders
to the global challenges of climate change We have strengthened our Values and Code
$4.0bn
emissions intensity positions that our overall and meeting the UN’s Sustainable of Conduct and rolled these out through a
weighted average industrial portfolio Development Goals. comprehensive global campaign designed to
occupies on these curves. embed them throughout our business. Our
Governance Values of safety, integrity, responsibility,
Reflecting additional work on our emissions
openness, simplicity and entrepreneurialism
profile and opportunities to deliver We continue to cooperate extensively with
guide us in everything that we do. We expect
reductions, we strengthened our medium- the various authorities investigating Glencore
all employees to commit to our Code
term emissions reduction target and in order to resolve these investigations as
regardless of who they are or where they
introduced a new short-term target. We are expeditiously as possible. While we cannot
work. We have also strengthened our policy
now committed to reducing total emissions forecast with certainty the cost, extent, timing
framework which comprises a suite of
(Scope 1+2+3) by 15% by 2026 and 50% by 2035, or terms of the outcomes of the
policies, standards, procedures and
both on 2019 levels. Post 2035, our ambition investigations, we presently expect to resolve
guidelines. The policies are publicly available
remains to achieve net zero total emissions by the US, UK and Brazilian investigations in
on our website and set out the commitments
2050 with a supporting policy environment. 2022. Accordingly, and based on our current
through which we strive to be a responsible
information and understanding, we have
Our targets and ambition reflect our and ethical operator.
recorded a provision as at 31 December 2021
commitment to align our business strategy
of $1,500 million representing the Company’s The safety and security of our workforce and
with the goals of the Paris Agreement. Our
current best estimate of the costs to resolve the communities living around our assets are
strategy of responsibly depleting our coal
these investigations. In addition, we continue a priority recognised across our operational
portfolio over time reflects our belief that the
to cooperate with the previously disclosed activities. Our ambition is to prevent all
energy transition will be non-linear across
investigation by the Office of the Attorney fatalities, occupational diseases and injuries
time and geography, with the responsible
General of Switzerland (OAG) and are also in wherever we operate. We relaunched
decline of our coal portfolio meeting critical
contact with the Dutch authorities in ‘SafeWork’ during the year to address
regional energy needs and affordability
connection with an investigation which has a underlying issues in historical safety
through this evolution.
similar scope to that of the OAG investigation performance. We believe that consistent
Many of our shareholders have expressed the and is being coordinated with the OAG. The application of SafeWork through strong
importance they attach to climate change timing and outcome of these investigations visible leadership will drive a culture of safe
considerations and their expectation for remain uncertain, but we would expect any operating discipline and get our people
Glencore to align its business strategy with possible resolution to avoid duplicative home safe.
the goals of the Paris Agreement. Our 2026 penalties for the same conduct.

Chief Executive Officer’s review

continued
We are also very pleased to have appointed Outlook Our low-carbon advantaged commodities,
Kalidas Madhavpeddi as Chairman of the We are focused on continuing to position our geographies and recycling capabilities give us
Board as well as Cynthia Carroll and David portfolio towards larger, higher-margin, the unique ability to supply the sustainable
Wormsley as new independent Non- longer-life assets essential to the transition. In commodities that our customers increasingly
Executive Directors during the year. this regard, we have progressively announced need. We have the right strategy and the right
a series of transactions (primarily disposals) business model to generate sustainable
Kalidas’ 40 years of experience in the
delivering further portfolio alignment and long-term value for all stakeholders.
international mining industry is instrumental
to Glencore as we focus on achieving our simplification.
objectives of delivering sustainable In January 2022, Viterra announced that,
shareholder returns, playing a leading role in subject to customary regulatory approvals, it
the green energy transition and securing our would acquire Gavilon, a major US based
ambition of being a net zero total emissions origination and handling business, for $1.125
company by 2050. David brings 35 years of billion, plus working capital, with funding Gary Nagle,
extensive experience in investment banking, provided from its own balance sheet. The Chief Executive Officer
both in the UK and internationally. We look acquisition will give scale in this key producing
forward to their continued contribution to region, largely completing Viterra’s coveted
our Board. geographic network coverage.
Our culture
We believe in empowering our

leaders and our people to drive the
performance of our business.
We foster an environment where

our different backgrounds,
cultures and beliefs are supported
and encouraged.
Read more page 34

Investment case
1 2 3 4
A major supplier of energy Our asset portfolio is Unique capability to supply Highly resilient
and transition metals and populated with large, the sustainable commodities and cash generative
solutions that support long-life and low-carbon of the future business model
the journey to Net zero advantaged commodities
emissions
• Our business model covers the

production, recycling, sourcing,
• Wlarger,
e are focusing our portfolio on
higher-margin, longer-life
• Ostrategy
ur Marketing segment’s carbon
is expected to create
• Ostrong
ur diversified business model and
balance sheet support
marketing and distribution of the assets essential to the transition additional value over time as enhanced shareholder payouts
commodities needed by our
suppliers and customers to
• We are a leading producer of key
transition metals, including copper,
markets/demand for carbon
solutions in the commodity supply
• 2021 Adjusted EBITDA up 84% to
$21.3bn; Net Debt down 62% to
decarbonise, while simultaneously cobalt, nickel, zinc and vanadium chain evolves/matures $6.0bn. Shareholder returns basis
reducing our own emissions
• • As a vertically integrated extractive 2021 cash flows: $3.4bn ($0.26/share)
• Leading
Our low-carbon advantaged
climate strategy: targeting commodities, geographies and and marketing business, we will payable in 2022, plus $0.6bn of new
total Scope 1, 2 and 3 reductions recycling capability supply our leverage our own carbon reduction share buybacks
relative to 2019 of 15% by 2026 and
50% by 2035, alongside a total
marketing business with the
products that our customers
efforts and market expertise to meet
the increasing needs for attestable
• We are uniquely positioned to
generate sustainable and growing
emissions net zero ambition by 2050 increasingly need low-carbon products returns in the transition to a low-
• Responsible stewardship of
declining coal business
• Our coal portfolio will supply critical carbon economy
regional energy needs as the
transition evolves along a non-linear
path through time and geography,
in line with our decarbonisation
commitments

Our market drivers
We are dependent upon the supply, demand and pricing for our commodities.
Key market drivers Emerging drivers
Net zero emissions Future commodity Demand for Substitution

by 2050 supply the commodities
we produce
Efforts to limit global temperature Timing within the economic cycle Changes in population and Higher commodity prices and
rises will impact fossil fuel is very important when bringing growth of developing economies resource scarcity increases the
demand new mine supply to market is generally impactful on risk of material substitution
commodity demand
• Momentum to decarbonise the global

economy has accelerated as nations
• The pro-cyclical nature of mining
investment means that new mines are
• The industrialisation and urbanisation of
developing economies over almost two
•
Widespread adoption of renewable energy
sources as a means of decarbonising energy
increasingly coordinate efforts aimed at usually approved when commodity prices decades has driven significant growth supply will create significant new demand
minimising greenhouse gas emissions, are higher in commodity demand for the current key enabling commodities,
including the targeting of net zero
• Given the long development time frames • China’s rapid growth over this period now including copper, nickel and cobalt
emissions by 2050 required to bring new mine supply on line, means that it accounts for up to half of •
The quantum of potential new demand is
• The Paris Agreement aims to keep the timing as to when this becomes global demand for many commodities generally of a size that is large relative to the
the global temperature rise this century
to well below 2ºC
available in the economic cycle is difficult to
predict and could become available at low
• Looking forward, the world is forecast to
add 1.9 billion people by 2050, with much
current annual production and known
defined global resources of that commodity
points in the economic cycle, creating of this growth in highly populous
excess supply in the market industrialising economies
• All potential decarbonisation pathways
require significantly more non-fossil
fuel commodities

Our market drivers continued
Key market drivers Emerging drivers
Net zero emissions Future commodity Demand for the Substitution

by 2050 supply commodities we produce
Impact on our industry
• This transition is likely to increase the cost

for fossil fuels, impose levies for emissions,
• Over-investment creates over-supply and,
with it, potentially prolonged periods of
• Current levels of industrialisation and
urbanisation suggest, in isolation, that
•
Revenue and earnings of substantial parts
of our industrial asset activities, and to a
increase costs for monitoring and reporting low commodity prices demand growth rates for commodities lesser extent, our marketing activities, are
and reduce demand • Although commodity prices have increased could be lower in the future. dependent on prevailing commodity prices
• Third parties, including potential or actual
investors, may introduce policies materially
from the lows seen in early 2020, the
experience of the last economic cycles has
• Lower or negative demand growth could
generate excess supply along with lower
•
Under a rapid decarbonisation scenario, a
significant increase in demand for the
adverse to Glencore due to our interest in increased investor pressure on companies commodity prices. However, post Covid-19, commodities that currently underpin
fossil fuels, particularly coal to be more cautious about investing in large-scale government stimulus, renewable technologies is likely to result in
• Technological advances are making new supply particularly if directed towards general and significantly higher prices for those
renewable energy sources more • Balancing a finite, declining resource base decarbonisation related infrastructure, commodities
competitive with fossil fuels, which is likely
to increase renewable energy’s market
with the need to grow to meet expected
future demand is an inherent challenge for
could be supportive for commodity
demand
•
Higher sustained commodity prices will
increase the risk of accelerating efforts to
share over the longer run companies in the resource sector • Continued population growth, particularly
in Africa and South East Asia could
either reduce the quantity of material
needed for a certain application or
generate additional demand for substitute an alternative that provides
commodities similar performance at a lower price. For
example, demand for cobalt could fall if
newer battery technologies provide similar
How we are responding results with less or no cobalt content
• We recognise our responsibility to

contribute to the global effort to achieve
• Our disciplined approach to capital
allocation seeks to reflect market supply
• Energy transition commodities such as copper,
nickel, cobalt, zinc and vanadium could
•
Diversification of our portfolio of
commodities, currencies, assets and
the goals of the Paris Agreement by and demand dynamics become substantially more important given liabilities is likely to mitigate the financial
decarbonising our own operational
footprint
• Given the unpredictability of costs, risks and
timing of large-scale greenfield projects,
their role in the technologies/infrastructure that
underpin low or no carbon energy sources
impact of a negative demand shift in the
event of a particular commodity
• We believe that our contribution should we prefer to add supply via targeted capital • We are a leading producer of metals that substitution
take a holistic approach and have
considered our commitment through the
efficient/lower risk brownfield expansions
when required
enable low-carbon and carbon-neutral
technologies
•
Our market research teams continue
to assess the underlying demand for our
lens of our total emissions footprint • With the expectation that growth drivers in • We are prioritising capex towards transition commodities as well as the new materials
• Against a 2019 base line, we are committing
to decline our total emissions (Scope 1+2+3)
the global economy will become weighted
towards decarbonisation spending, in
commodities, including our Collahuasi
copper JV, our African copper / cobalt
that could impact current renewable
technology solutions
15% by 2026, 50% by 2035 and we have an addition to the commodities needed for operations and our Canadian INO nickel
ambition of net zero by 2050 everyday life, our large-scale metals' life extension projects
portfolio is well placed to benefit from this
transition
• All energy demand decarbonisation pathways
require our enabling commodities
Our business Outputs and impact

model Our industrial business spans the metals
and energy markets, producing multiple
We move commodities from where they
are plentiful to where they are needed
on key stakeholders:
commodities from over 65 assets
Investors
$21.3bn
Inputs and resources
on which our business
model depends:
2021 Adjusted EBITDA◊
Assets and natural resources
$13.1bn
any long-life and high-quality
M
assets
alue over volume approach
V
mbedded network and
E
Equity free cash flow (FFO◊
knowledge in Marketing
less net purchases of
operations Recycling property, plant and
Our people and partners equipment and dividends
stablished long-term
E to minorities)
relationships with customers
and suppliers Our people
11%
ajor employer with c.135,000
M
people globally Industrial Carbon Marketing
solutions
Financial discipline business business Reduction in Total Recordable
apital deployed in disciplined
C
manner Injury Frequency Rate
arketing hedges out the
M
majority of absolute price risk Climate change
5%
arketing profitability driven by
M
volume-driven activities and
value-added services
Unique market knowledge Reduction in total emissions
inding value at every stage in
F versus 2020
the commodity chain
Payments to governments
$7.6bn
Our purpose Industrial business activities Marketing business activities Strategic priorities
Responsibly sourcing the commodities Exploration, acquisition and development Logistics and delivery esponsible production
R
that advance everyday life. We focus on brownfield opportunities, cost We fulfil customer orders and take advantage and supply
control and synergies. of demand and supply imbalances, aided by
Our values esponsible portfolio
R
the scale of our network.
afety
S I ntegrity Extraction and production management
We diversify our product offering and have
esponsibility
R penness
O Blending and optimisation esponsible product
R
wide geographical presence.
We offer a wide range of product use
ntrepreneurialism
E implicity
S Processing and refining specifications, seeking to meet customer-
We optimise end products to suit a wider specific requirements and provide a high-
customer base. quality service.

Our strategy for

a sustainable future Strategic Priorities
Aligned with our purpose, our portfolio

enables the transition to a low-carbon
economy, while meeting society’s energy
needs as it progresses through the
transition. Responsible Responsible portfolio Responsible
production and supply management product use
Our core values are embedded We will prioritise investment A low-carbon future requires
in everything we do. We are in metals that support the responsibly produced low-carbon
committed to operating ethically, decarbonisation of energy usage metals. We will seek opportunities
Our Strategic responsibly, and to contributing
to socioeconomic development in
as well as help meet demand for
metals needed in everyday life.
to increase the proportion of green
metals we can supply to customers
Purpose objective the countries where we operate. We will also reduce our coal
production in line with our various
from our own operations and
through our extensive marketing
We will continue to focus on
climate action commitments activities. Supporting this, we are
Responsibly sourcing To be a leader in reducing the carbon footprint of
and the electrification and scaling up our power and carbon
our operations and will allocate
the commodities that enabling financial returns towards
decarbonisation of energy systems. trading teams to help provide
carbon solutions for commodity
advance everyday life. decarbonisation of fulfilment of our business strategy. Our capital allocation supports
supply chains as these markets
this strategy through the optimal
energy usage and help Our commitment is delivered evolve and mature.
balance of debt and equity,
meet continued through our operational
distributions to shareholders and We will participate in global
excellence, health and safety
demand for the metals and ethics and compliance
business reinvestment in efforts to improve abatement
transition commodities and value technologies and availability,
needed in everyday life programmes, advancing our
accretive Scope 1+2 abatement as well as resource use efficiency
environmental performance,
while responsibly respecting human rights and
opportunities that help achieve by contributing to the circular
our climate commitments. economy.
meeting the energy by developing, maintaining and
needs of today. strengthening our relationships
with all of our stakeholders.

Our strategy for a sustainable future continued
Climate change Priorities going forward

We recognise our responsibility to contribute
to the global effort to achieve the goals of the KPIs
Paris Agreement by decarbonising our own
operational emissions footprint and
Operational excellence
Continued focus on operational efficiencies
•
Value for our shareholders – Adjusted
EBIT/EBITDA, Net income attributable
responsibly managing the depletion of our and improvements to optimise operating to equity holders
fossil fuels portfolio. costs and margins.
•
Safe and healthy workplace – fatalities,
FFR, TRIFR, LTIFR and occupational
Responsible In line with the ambitions of the 1.5-degree Sustainability
disease cases
•
Celsius (ºC) scenarios set out by the We continue to implement activities that
production Intergovernmental Panel on Climate Change promote integration of sustainability Environmental performance – total
(IPCC), against a 2019 baseline, we have set throughout our business to support our carbon emissions, meeting our
and supply
commitments on climate change
•
ourselves the target of reducing our total commitment to continuously improve our
(Scope 1, 2 and 3) emissions in the shorter standards of health, safety, environmental Long-term value for communities –
term by 15% by 2026, and in the medium term and community and human rights community investment spend
by 50% by 2035. Post-2035, our ambition is to performance.
Performance in 2021 achieve, with a supportive policy See Page 16
environment, net zero total emissions by Managing emissions
2050. We are working with global specialists and
Operational performance draw on local expertise within our operational
Community engagement teams to identify value accretive abatement
Principal risks
•
Solid performance across the asset base.
Our community development programmes opportunities to further reduce our Health, safety and environment
•
Previous voluntary reductions in coal
production, in line with weak demand, were are an integral part of our community and carbon footprint. Climate change
progressively unwound during the year as the
world's energy needs changed. In copper,
stakeholder engagement strategies. In 2021,
we spent $68 million on these support In 2021, we almost doubled the volume of
NPV positive abatement opportunities and
•
Community relations and human rights
Katanga delivered towards its potential, while programmes (2020: $95 million, including
significant amounts on Covid-19 related are working to identify additional MACC See Pages 81 - 84
Mutanda restarted processing operations initiatives to close the remaining gap on
in Q4. initiatives).
meeting our medium-term target and net
Safety zero ambition.
Regrettably, there were four fatalities during TRIFR LTIFR Under all credible scenarios, fossil fuels (coal,
11% 11%
the year. We implemented an enhanced gas and oil) will continue to be a part of the
fatality reduction programme, including via global energy mix for many years to come. We
relaunching our ‘SafeWork’ programme in H1 will responsibly steward the decline of our
2021 to address underlying issues in historical coal business as it meets society’s energy
safety performance. Decrease Decrease
needs through the energy transition.
Our ambition is to prevent all fatalities, Transparency
occupational diseases and injuries wherever We are committed to operating transparently,
we operate. responsibly and meeting or exceeding
Our TRIFR and LTIFR each decreased by 11% applicable laws.
compared to 2020.

Bonds Priorities going forward

We issued $3.4 billion, EUR 1.1 billion
and CHF 150 million of bonds across a range KPIs
of maturities from 5 to 30 years. Maturities are
managed around a cap of c.$3 billion in any
Balance sheet
We are committed to maintaining a strong
•
Returns to shareholders – Funds from
operations, Net funding and Net debt
one year. balance sheet capable of supporting our and annual capital returns/distributions
Reinvestment
Purpose and Strategy.
•
Value for our shareholders – Adjusted
EBIT/EBITDA, Net income attributable
Responsible Our net 2021 cash capital expenditure of $3.8
billion was weighted towards transition
Investment grade rating
We will preserve a robust capital structure
to equity holders
portfolio commodities with c.80% of our expansionary

capital invested in our metals business,
and business portfolio that reflects our
commitment to maintaining a strong BBB/ See Page 16
management including the INO life extension projects

(nickel), Collahuasi desalination infrastructure
Baa investment grade rating.
Our optimal leverage target of a $10bn cap
and the Zhairem zinc project. Principal risks
•
provides significant current rating headroom
Performance in 2021 Credit rating at Net debt/Adjusted EBITDA levels <1x. Supply, demand and prices of
commodities
•
The Group’s credit ratings are currently Baa1
Reinvestment
(stable outlook) from Moody’s and BBB+ Currency exchange rates
Conservatively positioned (stable) from Standard & Poor’s. Prioritise investment in transition
•
Liquidity
The capital structure and credit profile is
managed around a $10bn Net debt cap, with
Credit facility
commodities and value accretive Scope
1+2 abatement opportunities that help •
Counterparty credit and performance
During the year, revolving credit facilities were achieve our medium-term Paris alignment
sustainable deleveraging (after base and 2050 net-zero ambition. See Pages 73 - 78
extended and voluntarily reduced to $11.2
distribution) below the cap periodically
billion, in line with lower financing needs.
returned to shareholders via special
Committed available liquidity of $10.3 billion
distributions/buy backs as appropriate.
at year-end covers more than three years of
The Net debt cap may be flexed temporarily upcoming bond maturities.
up to $16bn for M&A opportunities, subject to
accelerated deleveraging to reposition Net
December 2021 net debt◊
debt back to optimal levels. Year-end Net debt
$6.0bn
and Net debt to Adjusted EBITDA were $6.0
billion and 0.28x, respectively.
This allows for $4.0 billion of shareholder
returns to restore the $10 billion optimal level.
Committed available liquidity
$10.3bn
Performance in 2021 Priorities going forward

KPIs
Collaborating with our value chains
As a vertically integrated extractive and
Partnerships
•
Returns to shareholders – Funds from
operations, Net funding and Net debt
Working with our customers and supply-
marketing business, we are leveraging our and annual capital returns/distributions
•
chain to enable greater use of low-carbon
own carbon reduction efforts and market metals and support progress towards Value for our shareholders – Adjusted
expertise to meet the increasing needs EBIT/EBITDA, Net income attributable
Responsible
technological solutions.
for attestable low-carbon products. to equity holders
Abatement
product use Power and carbon trading
We are scaling up our power and carbon
Supporting uptake and integration of
abatement – an essential contributor to
See Page 16
trading teams, establishing enhanced achieving low or net zero carbon objectives.
transactional expertise and capabilities
in power, low carbon and environmental Circular economy Principal risks
products, and origination and structuring
in relation to both regulatory and
Leveraging our value chain to expand the
volumes of recyclable commodities for
•
Geopolitical, permits and licence
to operate
voluntary products. processing through our global network
•
Laws and enforcement
Strategic partnerships
Recognising the need for strategic
of metallurgical assets.
Responsible sourcing
•
Operating
partnerships between raw material Pursuing strategic long-term agreements See Pages 74 – 80
and battery producers, in 2021 we signed to provide a reliable supply of responsibly-
a number of long-term supply agreements produced commodities essential to the
for responsibly sourced low-carbon low-carbon economy.
aluminium and cobalt.
These include:
• ive-year supply of Century Aluminum’s

F
Natur-Al low-carbon aluminium to
Hammerer of Austria
• Supply of up to 1,500 tonnes of cobalt to
FREYR in the form of cobalt cut cathodes
made from partially recycled cobalt at our
Nikkelwerk facility in Norway
• Investment in and long-term supply of
responsibly sourced cobalt to Britishvolt

Key performance Non-financial key performance indicators*

indicators
Safety: number of fatalities Total carbon emissions (Scope 1, 2 and 3) Community investment
Our financial and non-financial (million tonnes CO2e) (US$ million)
key performance indicators
Four 280 68
(KPIs) provide a measure of
our performance against the
key drivers of our strategy
2020: Eight 2020: 295 2020: 95
Link to strategy Link to strategy Link to strategy
Policy Policy Definition

We take a proactive, preventative approach In line with the ambitions of the 1.5-degree Community investments are our contributions
Strategic priorities to, and financial support of, the broader
towards health and safety. We require an Celsius scenarios set out by the IPCC, against
effective safety management system at each a 2019 baseline, we have set ourselves the communities in the regions where we operate.
asset to ensure the integrity of plant and target of reducing our total (Scope 1, 2 and 3) Funds are set aside to support initiatives
equipment, structures, processes and emissions in the short-term by 15% by 2026, that benefit communities and local
Responsible production protective systems, as well as the monitoring and in the medium term by 50% by 2035. Post sustainable development. We also make
and supply and review of critical controls. 2035, our ambition is to achieve, with a in-kind contributions, such as equipment
supportive policy environment, net zero total and management. We support
We believe that every work-related incident,
emissions by 2050. programmes for community development,
illness and injury is preventable and we are
committed to providing a safe workplace. 2021 Performance enterprise and job creation, health,
Responsible portfolio education and the environment.
management 2021 Performance Our 2021 total emissions decreased by 5%
compared to 2020. This is a 25% reduction on 2021 Performance
We are saddened to report that four people
our 2019 baseline, reflecting pandemic, In 2021, we spent $68 million on community
lost their lives at our operations during 2021
market and weather-related coal and development programmes (2020: $95 million),
(2020: eight). All loss of life is unacceptable
Responsible and we are determined to eliminate fatalities
ferroalloys production cuts across 2020 and including $20.7 million spent during 2020 and
product use across our business.
2021. We expect our total emissions to rise in 2021 on Covid-19 related initiatives. The
2022 with the unwinding of the earlier decrease reflects a number of initiatives being
Our 2021 fatality frequency rate, the total demand-led coal production cuts. We remain temporarily placed on hold due to the global
number of fatalities from incidents and committed to delivering emissions reductions
*Non-financial indicators includes information pandemic, as well as the divestment of
occupational diseases per 1 million man-hours of 15% by 2026 and 50% by 2035.
and data from our industrial activities in respect Mopani and relinquishment of Prodeco.
worked, was 0.014 (2020: 0.027). Through
of assets where we have operational control,
strong safety leadership, we can create and
and excludes investment, marketing and
maintain safe workplaces for all our people.
holding companies.
The vast majority of our assets have been
fatality free for many years.

Key performance indicators continued
Financial key performance indicators
Adjusted EBITDA◊ Net debt◊ Funds from operations (FFO)◊ Net income attributable to equity holders
(US$ billion) (US$ billion) (US$ billion) (US$ billion)
21.3
2020: 11.6
6.0
2020: 15.8
17.1
2020: 8.3
5.0
2020: (1.9)
Link to strategy Link to strategy Link to strategy Link to strategy
Definition Definition Definition Definition

Adjusted EBIT/EBITDA provide insight Net funding/Net debt demonstrates how our Funds from operations (FFO) is a measure Net income attributable to equity
into our overall business performance debt is being managed and is an important that reflects our ability to generate cash for shareholders is a measure of our ability
(a combination of cost management, seizing factor in ensuring we maintain an investment investment, debt servicing and distributions to generate shareholder returns.
market opportunities and growth), and are grade rating status and a competitive cost to shareholders.
the corresponding flow drivers towards our of capital. 2021 Performance
objective of achieving industry-leading returns. It comprises cash provided by operating Net income attributable to equity holders
Net funding is defined as total current and activities before working capital changes, less
Adjusted EBIT is the net result of revenue non-current borrowings less cash and cash before significant items was $9.1 billion.
less cost of goods sold and selling and tax and net interest payments plus dividends
equivalents and related Proportionate Significant items of $4.1 billion principally
administrative expenses, plus share of income received and related Proportionate
adjustments. Net debt is defined as Net comprised:
from associates and joint ventures, dividend adjustments, as appropriate.
funding less readily marketable inventories
income and the attributable share of Adjusted
EBIT of relevant material associates and joint
ventures, which are accounted for internally
and related Proportionate adjustments. 2021 Performance • the required accounting recycling to the
income statement of Mopani's non-
The relationship of Net debt to Adjusted FFO was up $8.7 billion (105%) on 2020, driven
by means of proportionate consolidation, EBITDA is an indication of our financial by strong Adjusted EBITDA. Cash taxes controlling interests on disposal ($1.0
excluding Significant items. billion);
•
flexibility and strength. totalled $2.7 billion and net interest cash flows
Adjusted EBITDA consists of Adjusted EBIT were $0.9 billion, the latter reflecting lower impairment charges of $1.8 billion mainly
2021 Performance attributable to Koniambo; and
plus depreciation and amortisation, including average costs of financing and levels of net
the related Proportionate adjustments. Net funding as at 31 December 2021 decreased
by $4.6 billion to $30.8 billion, while Net debt
funding. • a $1.5 billion provision raised with respect to
regulatory investigations.
2021 Performance decreased by $9.8 billion to $6.0 billion.
Adjusted EBITDA was $21.3 billion, a record level, Net income attributable to equity holders was
underpinned by significantly higher commodity Net debt is being managed around a $10
$5.0 billion in 2021, equivalent to 38¢ per share.
prices with many reaching record or multi-year billion cap, with deleveraging below such cap
highs, amid widespread supply/demand deficits. returned to shareholders.
Marketing's results reflected a strong broad- Year end net debt allows for $4.0 billion of
based performance, as many key markets such returns structured as a $3.4 billion
exhibited strong demand, supply constraints distribution and $0.6 billion share buyback.
and inventory drawdowns.

Stories of the year
Circular copper – ensuring economy with production, use, disposal and

recycling fully integrated.
Traditionally, recycling sits at the end of this
chain, managing the transport of sometimes
“We need to change the
supply through smart value hazardous materials safely to recycling sites and paradigm – if you want to
chain cooperation Recycling is an increasingly important part of
then bringing the recycled and refined metals
The world is facing the challenge of meeting
Glencore’s business and reflects our Purpose
back to market. However, we are increasingly achieve a circular economy,
of responsibly sourcing the commodities that
the increasing energy needs of a growing
population, while drastically reducing its
advance everyday life.
finding opportunities to have ‘Circular
Conversations’ – with big tech, OEMs, recyclers,
you have to think of post-
carbon footprint. As the world reduces One of the key metals needed to support a policy makers, and other stakeholders in this consumer materials as a
dependency on fossil-based fuels, the low carbon future is copper. Copper demand ecosystem to discuss how to best design
demand for refined metals that support is expected to double over the next decades products that can be easily recycled at the resource, not as waste.
end of their lifetime. That is also why Glencore
battery and renewable energy production,
such as copper, cobalt and nickel, is expected
to about 60 million tonnes per year in 2050.
continues to develop, market, and support Copper is a great example.
While mining remains likely the most
to grow markedly.
important source for this additional metal
state-of-the-art technology and is adapting
existing technology. By working together across
It has a dual role to play on
Part of this change will come from a smarter
use of resources, as well as evolving
demand, the current project pipeline for
copper mine production is not sufficient to fill
the entire end-to-end electronics supply chain, the path to net zero. For
we can help upstream stakeholders achieve
technology and changing consumer the gap, meaning recycling has an important their, and eventually the world’s, net zero goals. one, it is vital to powering
behaviours. Although we will still need mining role to play in making up for the shortfall.
to meet global demand, recycling will play an electrification. But it is also
As a founding member of the World
ever more essential role.
Economic Forum-backed Circular Electronics an easily recyclable
Recycling end-of-life electronics has been an
important part of Glencore’s business since
Partnership (CEP), launched in 2021, we are
moving this process along with Dell,
commodity that doesn’t
the 1980s. Further industrialisation and
urbanisation in the developed and developing
Microsoft, Google, Vodafone, Cisco, SIMS, and lose any of its properties in
many other companies and partner
world creates significant demand for energy organisations. the process, meaning we
infrastructure; at the same time nationally-
determined contributions (NDCs) to Where product design used to be linear, can produce more low
today’s environmental targets and future
decarbonisation demand a reduction in
energy intensity. The resulting question for supply shortfalls mean that thinking about carbon copper to fuel the
society is how effectively to incentivise how best to recycle a product after its use
needs to start during the design process.
low carbon energy
circularity, and ultimately a closed-loop
Recycled content has to translate into transition.”
downstream capacity.
Kunal Sinha
Global Lead, Recycling business

Climate change Managing our footprint
As one of the world’s largest diversified natural resource

companies, we have a key role to play in enabling the global
transition to a low carbon economy.
Footprint Reduction Capital

Pathway to net zero Our targets and ambition
Managing our Reducing Scope 3 Allocating
In late 2020, we published our climate change We take a holistic approach to carbon operational footprint emissions capital to prioritise
strategy, Pathway to Net Zero. This set out our reduction, recognising that a meaningful Reducing our Scope 1 Our diverse portfolio transition metals
pathway to delivering our climate-related contribution to addressing climate change is and 2 emissions uniquely allows us to address Investing in the metals
targets and longer-term ambition of becoming only possible through total (Scope 1, 2 and 3) this portion of our footprint that the world needs
a net zero total emissions company by 2050. emissions reductions. through investing in our
In December 2021, we published our Pathway
We recognise the need for action. We have set metals portfolio, reducing
to Net Zero: 2021 Progress Report detailing the
ourselves a short-term target of an absolute our coal production and
steps we took during the year to identify and
15% reduction of our total emissions by 2026 supporting deployment of
implement emission reduction opportunities
and a medium-term target of a 50% reduction low emission technologies
and to make progress in the seven priority
areas we identified in our climate strategy. by 2035, both on our 2019 level of emissions.
This report also includes a full discussion of Post 2035, our ambition is to be a net zero Contributing to global decarbonisation
Glencore's approach to climate change total emissions company by 2050, assuming
governance, risk management and a supportive policy environment.1
engagement with industry organisations. We use the Intergovernmental Panel on
These publications are available on our Climate Change (IPCC) scenarios to illustrate
website at: glencore.com/sustainability/ our compliance with the net zero ambition.
reports-and-presentations Our 2026 target lies within the range of IPCC’s
1.5ºC scenarios and our 2035 target aligns to
This section of the annual report includes a the International Energy Agency’s (IEA) Net Partnership Abatement Technology Transparency
summary of the developments in the year to Zero Emissions by 2050 Scenario (NZE 2050), Collaborating with Supporting uptake Utilising Transparent
provide for concise text. The fuller discussion which is consistent with IPCC Shared Socio- our value chains and integration technology to approach
from our Progress Report has not been economic Pathway 1-1.9. While being aligned Working in of abatement improve resource Reporting on
reproduced. with the respective scenarios, our base case partnership with An essential use efficiency our progress and
Taken together, these publications represent and scenario assumptions take into account our customers and contributor to Contributing to the performance
Glencore's compliance with the requirements the different rates of progression that supply chain to achieving low or circular economy
of Listing Rule 9.8.6R. A cross-reference to the developed and developing economies may enable greater use net zero carbon
TCFD recommendations is included later in achieve in reducing emissions by decreasing of low-carbon objectives
this section. dependency on fossil fuels and shifting to metals and support
renewables energy supply. progress towards
1 Coordinated government policies, including incentives technological
The graphic opposite illustrates our pathway
to drive accelerated uptake of lower carbon and solutions to address
decarbonisation technologies, and market-based to achieve our targets and long-term ambition.
regulations governing industrial practices that drive a climate change
competitive, least-cost emissions reduction approach.

Climate change continued Our focus remains on our total emissions

footprint, including our Scope 3 emissions,
Strategic decisions, including those on
capital allocation and portfolio management,
We work with global
which is critical in order to achieve the goals are decided on by Group management and specialists and draw
of the Paris Agreement. We have linked our the Board.
Our position on climate change capital allocation strategy to the achievement on the local expertise
Our Chief Executive Officer is the named
We recognise climate change science as set of our climate targets.
executive for driving the climate strategy within our operational
out by the IPCC. We support the global
climate change goals outlined in the United Executive oversight and Board
within our Board. This is reflected in his teams to identify ways
remuneration package. Of the scorecard for
Nations Framework Convention on Climate involvement
his annual variable compensation, 30% is for to reduce our Scope
Change (UNFCCC) and the Paris Agreement. During 2021, we revised our internal climate
change governance framework to drive
KPIs relating to HSEC matters: 15% for safety
performance and 15% for progress towards
1 and 2 emissions
We believe that only through collective
implementation of the climate strategy our short- and medium-term absolute
inclusive action can the world achieve the
and the supporting work programmes. emission reduction targets.
goals of the Paris Agreement and limit the
impact of climate change. Our new Climate Change Taskforce (CCT) is Climate change governance including an
accountable to our Board of Directors, to whom organisational chart is further discussed in our
The global response to climate change should
it provides regular progress and status updates. Pathway to Net Zero: 2021 Progress Report.
pursue twin objectives: limiting temperatures
Its members include our Chief Executive Officer,
in line with the goals of the Paris Agreement
Chief Financial Officer, Head of Industrial Assets
and supporting the United Nations
and General Counsel, as well as
Sustainable Development Goals. The chart below illustrates our pathway to achieve our targets and long-term ambition
representatives from key corporate functions
including investor relations, finance and with regard to our own operational footprint
In order to achieve these goals, the world
requires a global transformation in energy sustainable development. Commodity
networks, industrial best practices and how departments, including heads of the Illustrative emissions pathway to net zero (Scope 1 & 2)
land is used and conserved. We believe this departments and nominated representatives, (million tonnes CO2)
transition is a key part of the global response participate in the working groups that Scope 1 and 2 emissions reduction pathway
to the increasing risks posed by climate change. support the CCT.
2019 emissions (1+2)
Mt CO2
In response to the ongoing decarbonisation of The CCT is responsible for overseeing our
climate strategy and progress against our 35.0
global energy supply and electrification of key
sectors, including mobility and its associated climate commitments. In 2021, the CCT 30.0
infrastructure, we expect demand to grow met on four occasions and established four
25.0
exponentially for renewable energy working groups to drive the delivery of our
technologies, and the metals and minerals targets and net zero ambition. 20.0
required to build them. 15.0
The working groups focus on areas specific to
As one of the largest diversified natural our industrial activities, marketing activities, 10.0
resource companies in the world, we can climate-related data and its disclosure and 5.0
support the delivery of the goals by producing, external stakeholder engagement and
advocacy activities. 0.0
recycling, marketing, and supplying the metals 1
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opportunities, design and implement systems
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to support complete, accurate and attestable
2019 2026 2035 2050
reporting and monitor external trends while
coordinating and overseeing advocacy and
communication efforts.
Climate change continued Our performance
Scope 1 (direct emissions)1 Scope 2 location-based2 Scope 3 Total global energy use at our
(CO2e million tonnes) (CO2 million tonnes) (CO2e million tonnes) operated assets3
Reducing our operational footprint
(petajoules)
We work with global specialists and draw on
the local expertise within our operational 18.3 11.1
344 210
10.8
teams to identify ways to reduce our Scope 1 14.8 15.0 9.4 271
180 178
254
and 2 emissions. Our approach has led to the
implementation of initiatives that reduce
these emissions, while continuing to meet our
obligations to our customers.
Our Group-wide marginal abatement cost 2019 2020 2021 2019 2020 2021 2019 2020 2021
2019 2020 2021
curve (MACC) enables an assessment of viable
and economic abatement opportunities, 1 This includes emissions from reductants used in our metallurgical smelters. It also includes CO 2 e of methane emissions from our operations, which is around 20% of our Scope 1
emissions.
supporting our assessment and, when 2 We apply appropriate country-by-country grid emission factors to all of our purchased electricity, regardless of specific renewable electricity contracts.
appropriate, implementation of such 3 Renewable energy sources deliver 13.4% of our total energy needs (2020: 13.3%). In Australia, we use coal seam gas from our mines to supplement power generation at a number of our
opportunities. For example, identifying when assets and have flares installed at those underground coal mines with the necessary supply and concentration of methane.
increases to carbon taxes make the building

of renewable power installations more cost We divide CO2 emissions reporting into three
different scopes, in line with the Greenhouse
• Scope 3 emissions (measured in CO2e) relate
to the indirect greenhouse gas emissions
reductants used in our metallurgical smelters.
It also includes CO2e of methane emissions
effective than purchasing grid-generated
power. Gas Protocol, and measure both the direct further up and down our value chain. These from our coal and oil operations, which is
and indirect emissions generated by the include upstream emissions associated with around 20% of our Scope 1 emissions.
We undertake a uniform approach to MACCs at industrial activities, entities and facilities the products and services we purchase from
a commodity department level. This enables a The consumption of electricity purchased by
where we have operational control, as well as suppliers and downstream emissions that
group-wide aggregation of key decarbonisation our assets, our Scope 2 emissions, is also a
emissions resulting from activities within our include emissions resulting from our
actions, which in turn supports a holistic major action area within our decarbonisation
value chain. customers' use of the fossil fuels that we
plans. In 2021, we emitted 10.8 million tonnes
approach to reviewing the pipeline of initiatives
from concept to execution stages. • Scope 1 (measured in CO2e) includes
emissions from combustion in owned or
produce, their processing of our metals and
concentrates, the emissions resulting from
CO2 of Scope 2 location-based (indirect
emissions) (2020: 9.4 million tonnes).
Through understanding the impact of the time-chartered vessels and emissions
controlled boilers, furnaces, and vehicles/
different carbon prices from the key climate resulting from joint ventures that we do not The increase between 2020 and 2021 Scope 1
vessels, from the use of reductants and
scenarios on our assets’ cost curves and operate. and 2 emissions reflects an increase in some
fugitive emissions from the production of
emission profiles, we can identify where and production volumes, in line with the global
coal and oil (direct emissions). Our performance in 2021
when to make capital expenditure in
abatement opportunities. This ensures that
• Scope 2 location-based emissions
(measured in CO2) principally relate to
During the year, we completed our work on
enhancing our climate governance process.
economic recovery from the Covid-19
pandemic, notably at the grid-powered
we make value-accretive investments Ferroalloys smelters in South Africa, which
purchased electricity for our operations, This included an updated Environmental
thereby incorporating climate change were idled during the national lockdown in
in particular our metals processing assets, Policy with clear commitments on energy
considerations into our business strategy 2020. Our Scope 1 and 2 emissions have
which require secure and reliable energy efficiency and climate change, supported by
rather than considering emissions reduction decreased by 13% from our baseline year of
24 hours a day, 365 days a year. For the global working groups and a new Energy &
as a standalone work stream. 2019, and we remain confident of our progress
calculation of the Scope 2-location-based Climate Change Standard.
in meeting our short-term and medium-term
emissions we apply the relevant grid
During 2021, we emitted 15.0 million tonnes absolute reduction targets.
emission factors to all our purchased
CO2e of Scope 1 (direct emissions) from our
electricity, regardless of specific renewable
consumed fuel (2020: 14.8 million tonnes).
electricity contracts (indirect emissions).
This figure includes emissions from

Climate change continued Our performance in 2021 Investing in transition metals In addition, we are assessing further value-
During 2021, we increased our engagement We recognise the importance of disclosing accretive opportunities within our project
with our key equipment manufacturing how we ensure our material capital expenditure pipeline. We base our investment decisions
suppliers and customers to improve our and investments align with delivering our on several factors, including carbon
Reducing Scope 3 emissions understanding of the emissions within our short- and medium-term targets and longer- considerations and impact on delivering our
Our Scope 3 emissions are the indirect GHG value chain. We are actively looking for term ambition, as well as the goals of the Paris emissions-reductions targets. We test our
emissions across our value chain. They include opportunities to partner with our stakeholders Agreement. This includes transparently investment decisions against Paris-aligned
emissions from upstream supply chains, to drive the uptake of carbon neutral solutions reporting in our annual report on our capital carbon prices which in advanced economies
downstream customer use of our products, and low emission technologies, as well as to expenditure to develop, maintain and expand are projected at $180/t CO2e by 2035.
third-party logistics and transportation, and develop robust and consistent emission the production of metals associated with the
tracking and data collection throughout Our assessment of the acceleration of metals
emissions associated with joint ventures that transition to a low-carbon economy. We also demand under all scenarios has been
we do not operate. While these emissions are our value chain. disclose the costs associated with the corroborated with work completed by the IEA
the result of activities outside of our direct In the short term, we are actively monitoring our responsible depletion of our coal assets. and others. The energy transition relies
control, we can exert an indirect influence stakeholders’ decarbonisation efforts and heavily on the electrification of systems
Our current and forecast capital expenditure
through taking a collaborative approach with exploring partnership opportunities to develop together with rapid adoption of wind, solar
aligns with our emissions-reduction targets,
our value chain stakeholders and by making and commercialise carbon-neutral goods, and energy storage solutions. These solutions
reflecting our commitment to prioritise the
changes to our product portfolio. services, and processes. Over the medium term, are metals intensive and will require
development of our portfolio's transition
For the extractive sector, Scope 3 emissions we plan to systemise the integration of our metals. Running down our coal business will significant investment to new mines and
tend to be the largest proportion of total climate targets into our supplier selection criteria contribute to the reduction of our total expansion of existing assets to access the
emissions. For Glencore, these emissions and to develop internal systems that more emissions. Going forward, we have allocated resources.
represent over 90% of our total carbon accurately track value chain emissions that will capital to deplete our coal business in a
feed into our annual Scope 3 inventory reporting. The IEA shows that by 2050 the metals
footprint and including a reduction in Scope 3 responsible manner that is consistent with our requirements for clean energy technologies
emissions is essential for making a meaningful Our total Scope 3 emissions in 2021 were 254 Values and our climate strategy. We expect will require between 2.1 and 3.4 times more
contribution to reducing global emissions. million tonnes CO2e, compared to 271 million that our capital spend on our coal business will copper than in 2020, between 10.8 and 30.1
tonnes CO2e in 2020. The decrease was decline in line with lower production. times more nickel and between 9.9 and 32.9
The most significant contributor to our Scope
3 emissions is our customers’ usage of the principally due to pandemic-driven lower coal In support of the delivery of our targets, we times more cobalt*.
fossil fuels we produce (predominantly coal). volumes. We expect our Scope 3 emissions to have committed expansionary capital for:
• Responding to carbon pricing

In the Asia-Pacific region, the key destination rise in 2022 with the unwinding of such cuts,
and remain committed to delivering Construction of the next generation of
for our Australian and South African coal We operate successfully in multiple
emissions reductions of at least 15% by 2026. nickel mines in Canada (Onaping Depth
production, coal is generally the largest jurisdictions that have direct and indirect
and Raglan); we expect to commission
source of fuel for power generation and, we Our customers’ usage of the fossil fuels we carbon pricing or regulation. We take a
these in 2024-25;
believe, will remain a vital fuel until such time
as alternative energy infrastructure can be
produced totalled 237 million tonnes CO2e
(2020: 253 million tonnes CO2e), being around • Our attributable share of Collahuasi’s
desalination plant and associated pipeline
systematic approach to local regulation and
carbon price sensitivities as part of our
approved, financed, and constructed. 93% of our total Scope 3 emissions. ongoing business planning for existing
and pumping infrastructure;
•
industrial assets, new investments and as part
Our 2021 Sustainability Report will provide a Progressive ramp-up of the Mutanda of our marketing activities.
full disclosure of all the Scope 3 categories copper/cobalt operation; and
that are relevant and material to our activities. • Feasibility stage work on certain longer-
dated copper and zinc resources.
We use carbon price scenarios to assess the
potential impacts on operating costs arising
from existing and future potential carbon
pricing regulation. We assess these impacts
through applying emission costs to the carbon
emissions and cost curves for the various
* Derived from IEA WEO 2021 figure 6.14

Climate change continued Assuming supply and demand are broadly

balanced, this implies commodity prices
and be passed through to consumers,
resulting in little impact on our business.
Effective and strategic
rising to account for the additional input costs
In fact, current first and second quartile
management of climate
(in this case, carbon). For a fourth-quartile
industries in which we operate. This enables us producer, the increase is unlikely to
emission intensity producers are likely to see change-related risks and
margin expansion, the area of the emission
to understand how underlying cost structures compensate for the additional costs of
intensity curves in which we see our copper/ opportunities across all
will change over time and allows us to identify production; whereas for a top-quartile
where costs can be passed on. In the Radical producer the net financial effect may be
cobalt and zinc portfolio currently residing, aspects of our business
together with our Canadian nickel assets.
Transformation scenario we have assumed the
carbon price assumptions as shown in the
beneficial.
is considered vital to
As carbon border adjustment mechanisms
Carbon Price table.
Most of our assets lie in the lower to middle
part of their respective industry costs curves
are imposed, we expect global supply chains our continued ability
Applying these carbon prices to each of our and would benefit from a higher marginal
to adjust to minimise the exposure to carbon
costs. We are well positioned through our
to operate
major commodities shows marginal supply supply cost. Against a backdrop of rapidly
marketing business to respond to revised
costs (90th percentile) would increase by 10% increasing demand, we anticipate that cost
commodity market flows. nickel (14%). Key projects during the year were
to over 60%. and demand forces will drive prices higher
approval of a major water management project
We anticipate that our thermal coal business, at the Collahuasi JV; progression of the
which primarily delivers high energy coal, will Zhairem zinc mine in Kazakhstan; significant
Carbon price – US$/t 2021 2025 2030 2035 2040 be less impacted than producers of lower fleet replacements at our South American
Advanced economies 80 130 180 200 energy, high moisture coals. copper assets; and development of new nickel
As 2021 capital allocation, including capex mines in Canada.
Emerging markets 40 90 140 160
legislated allocated to coal and oil
Developing economies 5 15 25 35 Our disciplined approach to capital allocation Managing risk and opportunity
Source: Carbon prices reflect Our Radical Transformation Scenario (equivalent to IEA NZE2050) seeks to reflect market supply and demand Climate change-related impacts present both
dynamics. As a major producer of the risks and opportunities to our operations,
commodities that underpin the current which we must identify and manage to
Carbon price impact on industry cost curves* battery chemistry and infrastructure growth ensure the long-term sustainability and
Copper Zinc Thermal coal Nickel initiatives that are expected to power electric resilience of our business.
35% 70% vehicles and energy storage systems, our
Assessing climate change-related risks is part
capital expenditure (currently and into the
30% 60% of our Group risk management and strategy
future) is heavily weighted towards energy
development processes. Effective and
transition metals, including various South
25% 50% strategic management of climate change-
American copper projects, African copper and
related risks and opportunities across all
cobalt, Kazakhstan polymetallic investments
20% 40% aspects of our business is considered vital to
and nickel projects in Canada.
our continued ability to operate.
15% 30% In 2021, industrial capital expenditure was $4.4
We take an integrated approach to risk
billion (2020: $4.1 billion), of which $724 million
10% 20% management throughout our business
or 16% related to coal (2020: $787 million). The
through a structured process that establishes
currently approved capital programme for the
5% 10% a common methodology for identifying,
coal business is limited to stay-in-business
assessing, managing, and monitoring risks.
capital expenditure and extensions at existing
0% 0% We assess climate, operational and financial
2020 2025 2030 2035 2040 2020 2025 2030 2035 2040 2020 2025 2030 2035 2040 2020 2025 2030 2035 2040
mines.
risks holistically.
25th percentile 50th percentile 90th percentile The remaining 84% of our 2021 industrial capital
We require our commodity departments to
expenditure was weighted towards copper
annually update their climate change risk
* Glencore carbon cost analysis and cobalt (together 43%), zinc (20%) and

Climate change continued
assessments. They utilise a bottom-up disclosures for use by lenders, insurers,

approach to consider regulatory risks, investors and other stakeholders.
Scenario testing The scenarios are:
including carbon taxes, project approval
Industry association review We have considered the resilience of our
considerations, impact on license to operate, Current Pathway: Adopting the IEA’s Stated
We take an active and constructive role in public portfolio against scenarios / pathways as set
and physical risks, such as flooding, droughts Energy Policies Scenario (STEPS), which
policy development and participate in relevant out in Climate Report 2020: Pathway to Net
and extreme weather events. Identified takes into account long-term energy and
industry associations. We acknowledge the Zero and summarised on the following
material risks are incorporated into each climate targets only to the extent that they
IIGCC Investor Expectations on Corporate pages.
asset’s lifecycle planning. The risks are are backed up by specific policies and
Climate Lobbying and recognise the importance
assessed and characterised in accordance Our scenarios are defined below. In line with measures. The Current Pathway has been
of ensuring that our membership in relevant
with the Group’s Risk Matrix and consider the TCFD guidance that they be reviewed assessed as being consistent with global
industry associations does not undermine our
period from now until 2035 (or the end of an periodically, we shall review and, if needed, temperatures rising on average by 2.7°C by
support for the Paris Goals.
asset’s lifecycle). update them during 2023. the end of the century.
Our Pathway to Net Zero: 2021 Progress
A detailed analysis of the climate-related risks No single pathway can define how individual
Report includes our annual Review of our Rapid Transition: Adopting the IEA’s
most significant to Glencore, and mitigations economies and the world will transition.
Industry Organisation’s Positions on Climate Sustainable Development Scenario (SDS).
of those risks, is set out in our Pathway to Net These scenarios describe a range of potential
Change. The Review considered these The SDS is based on the same economic
Zero: 2021 Progress Report. outcomes dependent on the rate at which
industry organisations’ advocacy activities outlook as STEPS but works backwards from
During the year, our climate change risk and public statements and whether they transition policies are implemented. While climate, clean air and energy access goals,
assessments utilised the World Bank's Climate aligned with our support for the goals of the our approach draws principally on IEA examining what actions would be necessary
Change Knowledge Portal to assess each of our Paris Agreement. scenarios, our benchmarking of these to achieve those goals. This requires
operating jurisdiction’s risk of material impacts against those of other experts, including accelerated adoption of renewables
Our assessment of these activities identified Bloomberg New Energy Finance and the
from weather-related events. The country delivering global net zero emissions in 2070
three regions/countries with significant International Renewable Energy Agency
profile consolidates the most relevant data and and limiting the rise of global temperatures
discussion on climate policies over the last few (IRENA), shows broad alignment on the
information on climate change, disaster risk to 1.5°C by the end of the century.
years: Australia, Europe, and South Africa. As energy and emissions trajectory being
reduction, and adaptation actions and policies
such, we focused our 2021 review on our direct fashioned by current policy and ambition.
for individual countries, drawing on information Radical Transformation: Adopting the IEA’s
and indirect advocacy activities in these
from the World Bank’s portal as well as the Net Zero Emissions by 2050 Scenario
jurisdictions, recognising the importance of
latest IPCC reports and datasets. (NZE2050), which the IEA states, “sets out
concerted and pragmatic policy action to help
what additional measures would be
This year’s risk assessments found no achieve the goals of the Paris Agreement.
required over the next ten years to put the
fundamental changes to the risks identified or
world as a whole on track for net zero
for the assets that we have assessed as being COP26
emissions by mid-century. Achieving this
most at risk. We welcome the Glasgow Climate Pact that was goal would involve a significant further
agreed during the COP26 proceedings in acceleration in the deployment of clean
Engagement and disclosure November 2021. The Pact signals a continued energy technologies together with wide-
We are committed to reporting transparently ambition to keep the average rise in global ranging behavioural changes.” This Radical
on our progress in meeting our climate change temperatures to below 1.5°C. Our existing Transformation would place the world on a
objectives and data on our total emissions. strategy of responsibly depleting our coal pathway consistent with delivering global
portfolio over time, as we prioritise investment in net zero emissions in 2050 and limiting the
We support the Task Force on Climate-related
metals needed for the transition, is consistent rise of global temperatures to 1.5°C by the
Financial Disclosures (TCFD) framework for the
with the Pact's commitment to phase down the end of the century.
reporting of climate-related financial risk
use of fossil fuels.

Results of scenario testing

Commodity businesses Scenarios as set out in Climate Report 2020: Pathway to Net Zero
and outlook
Current pathway Rapid Transition and Radical Transformation
Copper (37% of 2021 Growth in renewables power generation capacity, electric vehicle sales and The required greater acceleration in investments to decarbonise economies
Adjusted EBITDA) associated infrastructure to underpin our forecasted 15% increase in copper under the Rapid Transition and Radical Transformation could further drive
Outlook: positive demand by 2025 on 2019 levels. The Current Pathway is projected to increase copper demand and support rises of 50% and 100% on 2019 levels in 2035 and
demand by 45% by 2035 and 95% by 2050. 2050 respectively.
Ferroalloys (4%) In South Africa, rising electricity prices and carbon taxes will exacerbate The accelerated adoption of renewable technologies such as solar and wind
Outlook: neutral the pressure currently felt in ferrochrome smelting. Continuing demand power generation, which depend on chrome and vanadium, amongst other
for chrome will support the ongoing operation of ferrochrome mines metals, for the generation, transmission and storage of low-carbon energy
in South Africa. underpins demand growth for our ferroalloys business, balanced by pressures
on ferrochrome smelting in South Africa.
Nickel (4%) Nickel’s use in batteries, EVs and energy storage systems will result in its The adoption of policies needed for the Rapid Transition and Radical
Outlook: positive demand rising in the Current Pathway to 130% of 2019 levels by 2025. By 2035, Transformation could drive a 200% increase in demand growth by 2035
the scenario requires 135% more nickel and by 2050, cobalt displacement on 2019 levels and a continued growth to 270% by 2050.
leads to increases in nickel demand of 250% above 2019 levels.
Zinc (12%) The electrification, industrialisation and urbanisation of developing The major transformation of the global energy system necessary to achieve the
Outlook: positive economies supports demand growth for zinc, due to its anti-corrosive goals of the Paris Agreement is supported by zinc’s use in offshore wind-energy
properties and use as an alloy in materials used in automobiles, electrical generating facilities. These scenarios show zinc demand growing to 150% of
components, and household fixtures. This leads to zinc demand rising to 2019 levels by 2035 and to 200% by 2050.
106% of 2019 levels by 2025. By 2035, the Current Pathway requires 20%
more zinc, and by 2050 demand reaches 145% of 2019 levels.
Coal (24%) Up to 2030, the Current Pathway sees coal demand growth in Asia offsetting Policies supporting the Rapid Transition and Radical Transformation will lead to
Outlook: neutral to further declines in the Atlantic markets and demand exceeding supply significant coal demand decline over the longer term. The ongoing use of
negative capacity in the absence of substantial investment to mine extensions. existing coal power generation facilities will require negative carbon
technologies, including Carbon Capture, Utilisation and Storage and Direct Air
Capture to achieve net zero emissions and limit global temperature increases.
Sensitivity analysis of the carrying values of our coal assets to such scenarios is
presented in note 1 to the financial statements.
Marketing (20%) Marketing remains core to our business model, differentiating Glencore from its mining peers. Marketing and trading margins are expected to adapt with
Outlook: positive climate initiatives. The agility of our marketing business enables it to adapt to changing circumstances and benefit from various trading and arbitrage
opportunities that will inevitably arise as economies transition at different rates. Our marketing business will continue to expand into new areas, as already
evidenced with the addition of LNG and carbon trading into our portfolio. Under any scenario, our marketing business is well-positioned to support the
responsible sourcing and delivery of products needed for the low-carbon economy. Goodwill of circa $1.7 billion has been allocated to the coal marketing
business. Sensitivity analysis of this balance to lower valuation multiples is presented in note 1 to the financial statements.

Cross reference to Task Force on Climate-related Financial Disclosures

Governance Strategy Risk management Metrics and Targets
Disclose the organisation’s governance Disclose the actual and potential impact of Disclose how the organisation identifies, Disclose the metrics and targets used to
around climate-related risks and climate-related risks and opportunities on the assesses and manages climate-related risks assess and manage relevant climate-related
opportunities organisation’s business, strategy, and financial risks and opportunities where such
a) Describe the organisation’s processes for
planning where such information is material information is material
a) Describe the Board’s oversight of climate- identifying and assessing climate-related
related risks and opportunities a) Describe the climate-related risks and risks a) Disclose the metrics used by the
• Corporate governance report: page 93 opportunities the organisation has • Pathway to Net Zero: 2021 Progress organisation to assess climate-related risks
• Strategic Report – Climate change: identified over the short, medium and long
term
Report: pages 9-11 and opportunities in line with its strategy
and risk management process
• •
page 20 b) Describe the organisation’s processes for
• Pathway to Net Zero: 2021 Progress Risk management – Climate change: managing climate-related risks Strategic Report – Climate change:
Report: page 7
b) Describe management’s role in assessing •
pages 82-83
Pathway to Net Zero: 2021 Progress
• Risk management – Climate change:
pages 82-83 •
pages 20-23
Pathway to Net Zero: 2021 Progress
and managing climate-related risks and
opportunities
Report: pages 9-11
b) Describe the impact of climate-related risks
• Pathway to Net Zero: 2021 Progress
Report: pages 9-11
Report: pages 15-21
b) Disclose Scope 1, Scope 2 and, if appropriate,
• Pathway to Net Zero: 2021 Progress and opportunities on the organisation’s
businesses, strategy and financial planning
c) Describe how processes for identifying, Scope 3 greenhouse gas (GHG) emissions,
and the related risks
• •
Report: pages 7-8 assessing and managing climate-related
Strategic Report – Climate change: risks are integrated into the organisation’s Strategic Report – Climate change:
page 25 overall risk management page 21
Report: pages 9-11, 13-31
• Risk management – Climate change:
pages 82-83
c) Describe the targets used by the
organisation to manage climate-related
c) Describe the resilience of the organisation’s
strategy, taking into consideration different
• Pathway to Net Zero: 2021 Progress risks and opportunities and performance
against targets
•
Report: pages 9-11
climate-related scenarios, including a 2°C Strategic Report – Climate change:
lower scenario pages 19-23
• Strategic Report – Climate change:
pages 23-25
Report: pages 1, 5, 6
• Climate Report 2020: Pathway to Net
Zero: pages 12-21
Climate Report 2020: Pathway to Net Zero:

Pathway to Net Zero 2021 Progress Report

Sustainability Governance of our Group sustainability

strategy and framework rests with the
Sustainability framework
Board’s HSEC Committee, who sets the

strategic direction for our sustainability Corporate strategy
Our approach to sustainability activities and oversees the development and
implementation of our strategic Responsible production Responsible portfolio Responsible
reflects our Purpose to responsibly and supply management product use
HSEC&HR programmes.
source the commodities that
advance everyday life. We take our Oversight and ultimate responsibility for our
responsibilities to our people, to Group sustainability strategy and framework
as well as its implementation across the Values
society and to the environment Group rests with our senior management
seriously, and align our activities with team, including the CEO and heads of our
relevant international standards. commodity departments. They take a
hands-on approach to monitoring and Safety Integrity Responsibility Openness Simplicity Entrepreneurialism
Strategic approach managing sustainability activities around the Code of Conduct
Our primary strategic objective is to be a Group.
leader in enabling decarbonisation of energy
Further details on our sustainability strategy,
usage and help meet continued demand for
our approach to its implementation, as well as
the metals needed in everyday life while Group sustainability strategy
its performance and ambitions, are available
responsibly meeting the energy needs of
in our sustainability-related publications.
today. This strategic objective drives our
These include a sustainability report
sustainability strategy.
published annually in accordance with the
Health Safety Environment Community and
Our sustainability strategy sets out our core requirements of the Global Reporting Become a leader in Become a leader in Become a leader in human rights
ambitions against four core pillars: health, Initiative (GRI), as well as the following protecting and safety and create a environmental Foster socio-economic
safety, environment, and community and publications: improving workplace free from performance resilient communities
•
human rights (HSEC&HR) and drives positive the wellness of fatalities and injuries and respect
Sustainability Summary our people
•
change throughout our business. Each pillar human rights
and communities where we operate
has clearly defined strategic imperatives, 2020 Climate Report: Pathway to Net Zero
objectives, policies, priority areas and targets. • Pathway to Net Zero: 2021 Progress Report
We review our approach annually to confirm
• Payments to Governments Report Board HSEC Committee
•
that it continues to fulfil the needs of Material topics Group HSEC-HR
Modern Slavery Statement governance has oversight and ultimate
•
our business. • Internal and external responsibility. It receives
ESG A-Z section on our website regular updates and has
•
materiality assessment
Through our HSEC&HR governance, policies, process to identify oversight of how our
Water microsite
standards, procedures, and guidelines, we material topics business is performing
establish and implement ethical and Our sustainability communications across all our internally
consistent business practices and standards. are available on our website: • Material topics are the focus Policies, Standards, defined, sustainability
glencore.com/sustainability of our sustainability strategy Procedures, Guidelines related material risk areas.
These support our commitment to be a review and reporting
responsible operator and our aspiration to
maintain our reputation for doing things the • Operational activities
right way. focus on addressing
and progressing the
material topics
Metrics, reporting
and assurance

Sustainability continued External commitments material payments made to governments, subject matter experts participate in this
We participate in a wide range of external broken down by country and project. programme.
initiatives, supporting our commitment to As part of our commitment to responsible Multi-disciplinary assessments allow us to
ongoing improvements to our approach product stewardship, we follow the UN audit complex issues from a range of
Strengthening our Group and performance across sustainability topics. globally harmonised system for classification viewpoints for a more robust appraisal. We
policy architecture Our engagement varies from reporting on and labelling of chemicals (GHS), the EU use these assessments to review operations
In 2020, we initiated a cross-functional project our progress to taking a role in driving REACH regulations on the registration, and activities with different risk factors, such
to develop and implement a more strategic change. evaluation, authorisation and restriction of as underground operations, open pit mines
streamlined and consistent approach to our chemicals, and the London Bullion Market and metal processing plants.
We are signatories to the United Nations
Group policy architecture and the underlying Association Responsible Gold guidance.
Global Compact (UNGC), aligning our The HSEC Committee reviews the results of all
policies, standards, procedures, and Where appropriate, we participate in the
strategies and operations with its principles, the audits, together with their key findings,
guidelines. REACH consortia related to the materials we
which cover human rights, labour, observations and good practice.
The project considered the commitments we environment, and anti-corruption. We produce; these include the consortia for zinc,
are required to meet through our recognise the UNGC’s Sustainable cobalt, cadmium, sulphuric acid, lead, and
membership and support for external Development Goals (SDGs) and their precious metals.
organisations such as the UN Global Compact, systematic global approach to society’s Our responsible sourcing strategy considers
International Labour Organization Declaration overall development. We believe that we production, sourcing of metals and minerals
on Fundamental Principles and Rights at can play a role in supporting our host and procuring goods and services. Our
Work, and the UN Guiding Principles on governments to meet the SDGs. Supplier Standards form the basis of our
Business and Human Rights. It also took into risk-based supply chain due diligence
We uphold the International Labour
account the International Council for Mining programme and adheres to the Organization
Organization (ILO) Declaration on
and Metal’s (ICMM) Performance of Economic Cooperation and Development’s
Fundamental Principles and Rights at Work,
Expectations. (OECD) Due Diligence Guidance for
the UN Universal Declaration of Human
During 2021, we conducted a Group-wide roll Rights, and the UN Guiding Principles on Responsible Supply Chains of Minerals from
out of the new and revised Group policies, as Business and Human Rights. Conflict-Affected and High-Risk Areas.
well as their supporting governance
We are members of the Plenary of the Risk management and assurance
documents such as standards and guidelines.
Voluntary Principles on Security and Human
In 2021, we also rolled out nine new standards, Our management of HSEC&HR-related risks
Rights.
covering areas such as Health, Environment, aligns with Glencore’s approach to the
Social performance, and Human Rights. We We have been a member of the ICMM since identification, assessment, and mitigation of
are tracking implementation progress 2014. We endorse its Mining Principles, are risk. Our assets use the risk framework to
through a gap analysis for each asset and active in its working groups and are currently identify hazards, including those with
targeting a substantial implementation by the undertaking work to prepare to report against potentially major or catastrophic
end of 2023. its Performance Expectations in 2023. consequences, and to develop plans to
address and eliminate, or mitigate, the related
Engaging with our stakeholders We strongly support transparency in the risks. For each of the identified catastrophic
redistribution and reinvestment of the hazards we have implemented a standardised
We engage with relevant stakeholder groups
payments we make to local and national approach to identifying and understanding
to build meaningful relationships and
governments. We are active participants, their causes and controls.
understand their expectations and
both in our operating countries and at a
aspirations. Further information on our Our internal HSEC assurance programme
global level, in the Extractive Industries
stakeholder engagement activities is available primarily focuses on our systematic
Transparency Initiative (EITI). We comply with
on page 38 and in our annual sustainability management of the catastrophic hazards
the EU Accounting and Transparency
report. and their controls. Internal and external senior
Directives; in line with those provisions, we
publish a separate report annually, detailing

Sustainability continued
Materiality assessment Group targets 2021 progress

We regularly undertake a sustainability-
related materiality assessment that considers Risk management and governance During 2021 we updated our Enterprise Risk Management Standard
input from within our business and from Implement a proactive risk-based approach to prevent and introduced a number of technical standards to manage our
other stakeholders. We use this assessment HSEC&HR incidents. group material risks.
to inform our HSEC&HR strategic overview
and our sustainability-related disclosures Compliance with Global Industry Standard for Tailings Management We progressed our reporting and auditing platforms to support
and publications. This assessment identifies (GISTM) for ‘Very High’ and ‘Extreme’ consequence by 5 August 2023 implementation and conformance to the requirements of the
topics that are material to our development, (all others by 5 August 2025). GISTM. We are on track to meet the GISTM's deadlines.
performance, and current position as well
as for our future prospects. Health
Year-on-year reduction in the number of new occupational disease During the year, we recorded a decrease in the number of new
We identified the following material topics for cases of occupational disease, 109 cases, compared to 124 in 2020.
cases (excluding new cases from legacy exposures).
the 2019–21 period: catastrophic hazards,
safety and health, climate change (see page Safety We did not achieve our target of zero fatalities. Four people lost their
19), water, land stewardship, human rights, lives at our operations during 2021, compared to eight during 2020.
No fatalities1.
responsible citizenship, responsible sourcing
and supply and our people (see page 34).
Environment
In 2021, we initiated a materiality assessment 15% absolute reduction in Scope 1, 2 and 3 emissions by the end of 2026 Our 2021 total emissions decreased by 5% compared to 2020. This is
that we expect to conclude during the first against a 2019 baseline. a 25% reduction on our 2019 baseline, reflecting pandemic, market
half of 2022. This assessment will determine and weather-related coal and ferroalloys production cuts across
our material topics for the 2022 and 2023 50% absolute reduction in Scope 1, 2 and 3 emissions by the end of 2035 2020 and 2021. We expect our total emissions to rise in 2022 with
reporting periods. against a 2019 baseline. the unwinding of the earlier demand-led coal production cuts. We
remain committed to delivering emissions reductions of 15% by
Performance overview Ambition of achieving net zero for Scope 1, 2 and 3 emissions by the 2026 and 50% by 2035.
end of 2050.
The rollout and implementation of our new
Policies and their supporting standards
By 2023, all managed operations located in water stressed regions2 We are on track for all managed operations located in water
have strengthened our governance for
to finalise the assessment of their material water-related risks, setting stressed regions to finalise the assessment of their material
overseeing the achievement of our Group
local targets and implementing actions to reduce impacts and improve water-related risks, setting local targets and implementing actions
targets. Both the HSEC&HR corporate
performance. to reduce impacts and improve performance by 2023.
team and commodity departments review
progress on a monthly and quarterly No major or catastrophic3 environmental incidents. No major or catastrophic environmental incidents occurred during
basis, depending on the target. 2021.
Community and Human Rights

Do not cause or contribute to incidents resulting in severe4 human During 2021, our operating assets did not cause or contribute to
rights impacts incidents resulting in severe human rights impacts.
1 Refer to the Basis of Reporting on our homepage for how fatalities are defined.
2 Water stressed regions are defined as having a medium to extremely high or arid and low water-use baseline, as per the World Resources Institute definitions.
3 For environment, major or catastrophic incidents refers to incidents causing both widespread irreversible and reversible environmental impact to ecosystems, habitat or species.
4 Severe is the equivalent of Catastrophic and Major on Glencore’s incident classification scale. For human rights, a Catastrophic incident is one with a gross human rights violation or grave
systemic human rights impacts and a Major incident involves an isolated grave or serious systemic abuses on economic, social and cultural rights.

Sustainability continued We have a robust governance process and in We require an effective safety management Performance during 2021
2021 released a new Group Tailings Storage system at each asset to ensure the integrity of We are saddened to report the loss of four
Facilities Policy and updated our Standard to plant and equipment, structures, processes lives at our operations during 2021, compared
align with the Global Industry Standard for and protective systems, as well as the to eight during 2020. All loss of life is
Our material topics Tailings Management. monitoring and review of critical controls. unacceptable and we are determined to
eliminate fatalities across our business.
We monitor our TSFs for integrity and SafeWork is Glencore’s approach to
Catastrophic hazard management structural stability. Our industrial assets eliminating fatalities, however, our overall During the year, both our lost time injury
We define catastrophic events as those with evaluate natural phenomena and incorporate safety performance across our business frequency rate1,2 (LTIFR) and total recordable
a low probability but severe consequences these considerations into their tailings facility signalled that SafeWork had not reached all injury frequency rate3 (TRIFR) were lower than
that could cause widespread loss of life or designs where relevant. Flooding and seismic assets in its full potential and that a step the previous year at 0.83 (2020: 0.94) and 2.4
significant environmental harm, or result in activity are the main natural phenomena that change was needed to achieve our goal. (2020: 2.7) respectively.
major reputational or financial damage. We may affect TSFs. In addition, our TSFs undergo
are committed to eliminating catastrophic To understand our gaps, we conducted In 2021, our high potential risk incidents
regular external inspections.
incidents at our industrial assets. reviews and engaged with the business. The (HPRIs) fell to 385 (2020: 399). The reporting of
We continue to manage closed TSFs results showed that SafeWork was the right HPRIs represents a supportive part of our
We recognise the exceptional nature of such responsibly post-closure. We regularly inspect approach. However, we also identified the strategy to reduce fatalities and, as such, we
events and we have developed specific our facilities and external experts conduct need to clarify and reset expectations around do not target a reduction in this metric. They
programmes to actively identify, monitor and independent inspections and reviews. SafeWork so it reaches every part of our allow the identification of activities that need
mitigate catastrophic hazards within our business. As a result, in 2021, a revised version prioritising in order to advance further our
business. We review our catastrophic risks to Performance during 2021
of SafeWork was launched through a change learning and safety performance. The majority
understand whether they are adequately We target zero major or catastrophic
project called ‘SafeWork 2.0’. It is still of HPRIs related to mobile equipment and
controlled. We require our assets to put in incidents, which we achieved during 2021.
SafeWork, but with more clarity on roles and working at height, ground/strata failure and
place appropriate management and Further information on our approach to accountabilities, defined requirements and nearly 80% resulted in no injuries.
mitigation measures. tailings management is available on our resources that are easier to access and adapt
We recorded a decrease in the number of new
Our HSEC audit programme focuses on website (glencore.com/sustainability/ to the risks in our work environment.
cases of occupational disease, 109 cases (2020:
catastrophic hazards and critical control tailings). It provides an overview of our
SafeWork is built on a set of minimum 124).
management, using both internal and external approach towards managing our TSFs and
expectations and mandatory Fatal Hazard
expert assessors. It gives particular attention to includes details on each of our TSFs.
Protocols, Life-Saving Behaviours, and safety
identifying catastrophic hazards, their critical tools. These must be fully implemented by
controls and management plans, as well as the Safety and health our assets. We believe consistent application
effectiveness of verification and reporting In line with Glencore’s values, our first priority of SafeWork through strong visible leadership
processes. The Board receives and reviews all in the workplace is to protect the safety, will drive a culture of safe operating discipline
assurance findings. health and wellbeing of all our people. We and get our people home safe.
Managing our tailing storage facilities take a proactive, preventative approach
Our occupational health management
Tailings, the fine waste materials left over after towards health and safety. We believe that all
strategy addresses the health risks facing our
the processing of ore, are stored in tailings fatalities, injuries and occupational diseases
workforce, their families and the communities
storage facilities (TSFs). In recent years, a small are preventable. Through strong safety
inside and outside our gates. We use a variety
number of high-profile TSFs failures at the leadership, we can create and maintain safe
of on-site programmes to manage
operations of large mining companies have workplaces for all our people. A large number
occupational diseases and exposure to health
resulted in catastrophic consequences. of our assets have been fatality free for many
hazards; we extend many of these health
years.
programmes to our host communities, to
combat regional health problems and
promote healthy lifestyles.
ost time injuries (LTIs) are recorded when an employee or contractor is unable to work following an incident. We record lost days as beginning on the first rostered day that the worker is
1 L
absent after the day of the injury. The day of the injury is not included. LTIs do not include restricted work injuries (RWIs) and fatalities.
2 The lost time injury frequency rate (LTIFR) is the total number of LTIs recorded per million hours worked. Glencore Annual Report 2021 30
3 The total recordable injury frequency rate (TRIFR) is the sum of fatalities, lost time injuries (LTIs), restricted work injuries (RWIs) and medical treatment injuries (MTIs) per million hours
worked. The metric represents all injuries that require medical treatment beyond first aid.
Sustainability continued Land stewardship As an ICMM member, we commit to not The closure plans align with good practice,
We are committed to managing our land in a conduct any exploration, drilling or mining in such as the ICMM’s Integrated Mine Closure
productive and sustainable manner ensuring World Heritage areas and International Union Good Practice Guide. Our industrial assets are
proactive stewardship of our landholdings, for Conservation of Nature (IUCN) category required to consult with local communities on
Water including those that have not undergone I-IV protected areas (‘no-go’ areas), and not to the development of their closure plans and
Water is an essential resource for many of our industrial activity. We align our approach to put the integrity of such properties at risk. Our monitor the societal risks and opportunities
industrial activities. Some of our assets are cultural heritage and archaeologically industrial assets work to avoid the loss of any associated with closure.
located in areas with high to extremely high sensitive locations on our landholdings with IUCN Red List threatened species.
Glencore has acquired, through mergers and
water baseline stress and share access to local regulatory requirements and best Rehabilitation acquisitions, a number of older mines and
water with other local water users. Other practice. We respect legally designated areas A core component of our operations’ lifecycle legacy operations. We have a specialised
industrial assets manage surplus water that and commit to neither mine nor explore in is progressive rehabilitation. Where active management process for these legacy
may involve dewatering activities and flood World Heritage Sites. operations have ceased, we review operations, which supports the identification
protection measures. Regardless of their opportunities for restoration in the previously and implementation of appropriate
We require our industrial assets to implement
location, our industrial assets undertake operated areas. Progressive rehabilitation has monitoring and responsible restoration.
land stewardship management systems,
detailed assessments of their local many benefits, including reducing an
including progressive land rehabilitation Performance during 2021
environmental conditions during the operation’s footprint, improving the visual
target setting tied to life of asset planning, We actively participated in the development
operational changes in lifecycle, to develop appeal of the landscape and reducing dust,
that includes standard elements such as an and refinement of ICMM's Closure Maturity
water management strategies that maximise erosion and sedimentation, as well as
environmental policy, data collection and Framework, a tool for building a common
the efficient and sustainable use of this improving conditions for local communities
monitoring, adaptive management, and understanding of closure concepts across an
important natural resource. and future land users.
continuous improvement. asset’s lifecycle and across mining disciplines.
We recognise access to safe and clean water To support progressive rehabilitation, our In 2020, as part of the Framework
We are committed to identifying and
and sanitation as a salient human right. We industrial assets may excavate and reserve development process, we conducted pilot
addressing the potential impacts of our
seek to fully understand and minimise our topsoil and overburden from areas prior to testing of the tool at six representative assets.
business on ecosystems services and
operational water footprint and manage our development. In 2021, we expanded testing to include an
achieving no net loss of biodiversity through
activities in a way that protects our shared additional 25 operations, representative of
the application of mitigation hierarchy. We Closure management
water resources. We are committed to various regions, remaining life of assets, and
require all operations to develop risk-based Unlike many other industrial uses of the land,
ensuring good water management is in place across all commodity groups. In addition,
biodiversity action plans and site-level mining has a finite life and transitions to
at all of our assets and undertake detailed requirements related to the implementation
biodiversity targets, to drive progress in this post-mining land use at the end of its
assessments, target setting, monitoring and of the Closure Maturity Framework were
critical area. operational lifecycle. We require our industrial
implementation of corrective actions. Our included in the enhanced Closure Planning
assets consult their host communities and Biodiversity assets to have a closure plan that could be
governance, rolled out in 2021, to advance
other relevant local water users to understand Mining activities directly impact the initiated at any time whether on planned life
consistent performance improvements
local priorities and to collaborate on surrounding land, flora and fauna throughout of asset closure or for an earlier ‘unplanned’ or
across our global operations.
sustainable solutions. their lifecycle; our goal is to minimise and temporary closure. The plans must include
manage those impacts. Our industrial assets’ financial provision and, where possible,
Performance during 2021 progressive rehabilitation, to support a
land stewardship and biodiversity
In 2021, we withdrew 999 million m3 of water responsible exit. Our industrial assets
management plans can include measures for
(2020: 1,033 million m3). The decrease is regularly review their closure plan to ensure it
preliminary clearing works, habitat relocation,
primarily related to the sale of Mopani and remains fit-for-purpose, and aligns with the
flora and fauna conservation, weed and pest
maintenance activities at some sites, as well asset’s lifecycle.
control and fire and grazing management.
as Covid-related impacts.
Where possible, these plans support the
Our total water withdrawal includes 40
continuation of existing land practices,
million m3 moved from one site to another
including grazing and other agricultural
through dedicated sharing networks that
activities.
were installed to increase our overall water
efficiency.
Sustainability continued security. This covers general human rights agreements with Indigenous Peoples who Responsible citizenship
awareness during day-to-day activities for our maintain an interest in, or connection to the Our activities can make a significant
wider workforce, as well as focused training land on which we operate, formalising contribution to the national, regional, and
on the Voluntary Principles on Security and engagement processes and sustainable local economies through the production and
Human rights Human Rights for our security employees and benefits. marketing of commodities that provide
We recognise that we have the potential to contractors. the basic building blocks for development.
Performance during 2021
impact human rights directly through our We provide employment and training,
Enabling complaints and grievance processes During 2021, we commenced an internal
operations, or through our relationships with business partner opportunities, tax and
All our operations are required to have in place campaign to strengthen our management of
joint ventures, contractors, and suppliers. We royalty payments to governments that help
local complaints and grievance processes local-level complaints and grievances. We
are committed to respecting human rights provide essential services, socio-economic,
designed to be legitimate, accessible, conducted a Group-wide desktop review of
and actively support our employees, business development and environmental
predictable, equitable, transparent, rights local processes against the United Nations
partners and others to understand and meet stewardship.
compatible and in line with the United effectiveness criteria. Areas for improvement
this commitment.
Nations Guiding Principles’ effectiveness were identified and assets have a target to We aim to minimise adverse impacts from
We uphold the dignity, fundamental criteria. These processes encourage people to close these gaps by the end of 2021. our activities and to build partnerships to
freedoms and human rights of our people, raise concerns in a manner that respects the support sustainable development and
To support improved understanding of
communities and others potentially affected rights of the complainant. Where people have growth.
challenges and good practices in the
by our activities. complaints or grievances, we aim to
implementation of grievance processes, we Stakeholder engagement
investigate and resolve them at the local level.
We seek to align with relevant international conducted an interactive webinar series in Through meaningful stakeholder
Assets are required to investigate and record
standards to understand, control and mitigate early 2021. Over 150 operational managers and engagement and integration of social
all complaints.
our impacts. Our policies and practices align social, environment and legal professionals performance into our core business, we
with the Universal Declaration of Human We do not allow any form of punishment, attended the sessions that spanned seven support the advancement of the mutual
Rights, the United Nations (UN) Guiding discipline, or retaliatory action to be taken geographical regions and four languages. interests of our host communities, broader
Principles, the UN Global Compact and against people for speaking up or cooperating society, and our assets. With activities ranging
Following events in Western Australia in 2020,
International Labour Organization’s core with an investigation. from exploration to mines and mineral
where mining activities impacted on
conventions and we articulate these in our processing facilities to assets in closure,
Indigenous Peoples significant cultural heritage, we undertook an
Code of Conduct and Group Human Rights we are present in a hugely diverse range
Some of our industrial assets are located on or internal review of our own heritage risks, with
Policy. In addition, we operate in accordance of geographies and cultures around the
near the traditional territories of Indigenous the intent of addressing any deficient areas
with the Voluntary Principles on Security and world. Some of our businesses operate in
Peoples. Our approach aligns with the ICMM during 2021. The review was supported by
Human Rights, and International Finance challenging socio-political contexts and we
Position Statement on Indigenous People and independent cultural heritage experts. In 2021
Corporation’s Standard 5 on Involuntary remain committed to working with others to
Mining, which requires mining projects McArthur River Mine (MRM) in Australia
Resettlement. help find and implement solutions to social
located on lands traditionally owned by or commenced negotiation with Traditional
under customary use of Indigenous Peoples Owners, facilitated by the Northern Land issues and to build resilient and peaceful
We respect the rights, interests and
to respect Indigenous Peoples’ rights, Council (NLC), on an Indigenous Land Use communities.
aspirations of Indigenous Peoples and
acknowledge their right to maintain their interests, special connections to lands and Agreement (ILUA), and commissioned an We work hard to get to know our local
culture, identity, traditions, and customs, and waters, and perspectives. independent third-party review of their communities and identify the individuals,
operate in accordance with the ICMM Position Cultural Heritage Management Plan in line groups, or organisations with an interest in
ICMM Members must adopt and apply
Statement on Indigenous Peoples and with leading practice. our business or who are affected by it. We
engagement and consultation processes that
Mining. implement a range of engagement activities
ensure the meaningful participation of We also developed and launched a Group-
Indigenous communities in decision making, wide Cultural Heritage Standard that requires designed to be relevant and appropriate for
Our assets are required to conduct regular
through a process consistent with their all our industrial assets to identify and review different stakeholders, including vulnerable
human rights training for their workforces,
traditional decision-making processes. We Cultural Heritage risks and opportunities, groups, with access to local level complaints
with a focus on those employees in positions
seek, through good faith negotiation, to reach integrating them into business decision- and grievance processes (see Human Rights).
exposed to human rights concerns, such as
making and managing them effectively and
consistently.

Sustainability continued For our suppliers of metals and minerals, we Lomas Bayas supports reforestation
conduct due diligence in accordance with the
five-step approach framework defined in
Annex I of the OECD Due Diligence Guidance In October, Lomas Bayas in northern prevention and environmental care.
Social investment for Responsible Supply Chains of Minerals Chile renewed an important Cultural activities are also available,
In addition to our employment, local from Conflict Affected and High Risk Areas agreement between our operation such as storytelling competitions and
procurement and taxes and royalties (CAHRAs) 3rd Edition. and the National Forestry Corporation performances.
payments, we seek to make a positive of Chile, CONAF.
Our risk assessment and management There are more than 2,000 trees in
contribution to social and economic
strategy identifies and assesses risks, In 1996, Compañía Minera Lomas Explora Lomas Park, including
development of our host communities and
including those relating to CAHRAs. We take a Bayas began to develop a reforestation varieties of Prosopis alba – the white
society more broadly through our voluntary
collaborative risk management and and conservation strategy to help carob tree – and Prosopis tamarugo – a
social investment programmes.
mitigation approach to the identified human address the issue of desertification flowering tree from the pea family
Our strategic objective is to support initiatives rights risks within our supply chain. around Calama in northern Chile. known simply as Tamarugo. Both
that build resilient communities and regions Since then, it has supported efforts to species are native to the desert and
As part of our system of controls and conserve the Calama Oasis which
by reducing dependency on our operations. can survive in the most arid regions in
transparency, we have an online platform that includes the 20-hectare Explora
This is challenging when the immediate, the world.
manages due diligence-related information, Lomas Park.
short-term needs in many of our communities
supplier assessment, collection and retention. This next phase of collaboration
are high. Our aim is to focus our efforts on
In 2009, Lomas Bayas established a between Lomas Bayas and CONAF will
developing programmes that contribute to Our responsible sourcing team engages with partnership with CONAF to continue continue to strengthen the traditional
longer-term social objectives through internal stakeholders to increase awareness the park’s conservation efforts and activities of environmental education,
activities such as enterprise and job creation, on the responsible sourcing of metals and offer an extensive environmental research and forestry development, as
education, health and wellbeing and capacity minerals. education programme. Visitors can well as promote a new phase of the
building.
Performance overview 2021 participate in guided tours of the park management of the white carob
Our socio-economic development activities During the year, we reviewed and revised our to learn more about biodiversity, forest, benefiting the local agricultural
are founded on the resources, needs and Supplier Standards and developed efficient water use, forest fire communities.
plans identified at a local or regional level and a Responsible Sourcing Policy. These will be
are informed by relevant data gathering and rolled out Group-wide during 2022.
community engagement.
In 2021, Glencore did not produce, process or
Performance during 2021 market any ‘conflict minerals’ originating from
In 2021, we spent $68 million on community the conflict areas as defined under the
development programmes (2020: $95 million). Dodd-Frank Act (tin, tungsten, tantalum and
$20.7 million was spent during 2020 and 2021 gold from the DRC and adjoining countries).
on specific Covid-19 related initiatives.
All of our sustainability communications are
available on our website: glencore.com/
Responsible sourcing and supply sustainability
Our responsible sourcing strategy considers
the production and sourcing of metals and
minerals and procurement of goods and
services. An integral part of our responsible
sourcing approach is supply chain due
diligence for our metals and minerals supply
chain.

Our People
We are proud of the role we play in Diversity Generating consistent and high A process of assurance against the standards
our industry and our communities standards of performance will be implemented in 2022.
and believe that our strategy is an Our Group policy framework encompasses The Group has a very well established process
17%
our Values, Code of Conduct and a suite of
essential element in the policies, standards, procedures and guidelines
for employees to raise concerns, including our
decarbonisation of our world. Raising Concerns programme, and a
● Male 83% on various key matters and risks to Glencore. committee comprised of the CEO, CFO, Head
We also recognise that our contribution relies
● Female 17% This framework reflects our commitment to of Industrial Assets, General Counsel and
on the skills, behaviours and individual uphold responsible and ethical business Head of Group HR reviews the process and
decisions of our 135,000 workers every day. practices. outcomes relating to concerns received into
Following last year's successful rollout of our 83%
In 2020, we embarked on a comprehensive the programme on a quarterly basis. This
Purpose and Values campaign, our focus this review of our entire Group policy framework. enables management to ensure patterns of
year has shifted from the organisation to the This was a collaborative, cross-functional issues are spotted at the Group level and that
individual; making our expectations clear to Management
Management diversity in 2021 diversity in 2021 project to develop and implement a more disciplinary outcomes are being implemented
our employees and our managers wherever streamlined and consistent approach to consistently. A summary of the material
they are in the world. policy governance at Glencore. Throughout concerns and any associated disciplinary
2021 we have continued to reinforce our action is also regularly reported to and
Our revised Code of Conduct spells out our 20%
commitment to good governance by defining reviewed by the Board.
expectations regarding employee behaviour,
operating responsibly and safely, acting with and implementing a set of Human Resources
integrity and protecting our assets and
● Male 80%
● Female 20% standards across our business. These bring Creating a more diverse and equitable
information. The code operates in conjunction more granularity and clarity to our organisation
with our Group Policies to promote inclusion, overarching policy commitments. We believe that a diverse business is a strong
fairness and equality and prohibits 80%
business. Operating globally requires us to
Whilst maintaining our decentralised and
discrimination based on race, nationality, understand and adapt to different cultures
autonomous culture, the standards ensure we
gender, age, sexual orientation, disability, whilst maintaining our corporate culture and
develop as an organisation with consistently
ancestry, social origin, trade union standards. Around 950 people work at our
high-levels of expectations and performance.
membership, political belief or any other Senior manager* diversity in 2021 corporate headquarters in Switzerland, of
The standards set out the specific
potential bias. whom around half are Swiss and half from 57
requirements we expect our businesses to
other nations. The male:female ratio is 56:44
During the year we transitioned to a new CEO conform to across a range of HR topics
15% and the gender pay gap is 6%. We are keen to
and leadership team and these senior leaders including but not limited to:
further narrow the gender pay gap and this
led our campaign to launch the Code both
• performance management requirements; will remain a central focus of our strategy.
•
internally and externally. As well as global ● Male 85% (359)
video and written messages, a Code of

● Female 15% (61) recruitment practices, including mandatory 20% of managers are women, a modest
Conduct toolbox was developed with 25 reference and background checks for all improvement on previous years. We
new joiners; recognise we are still some way short of the
•
separate communications resources,
translated into 12 languages which could be 85% the measurement of pay equity including 33% target from the Hampton-Alexander
deployed through various channels. 800 gender pay gaps in all of our businesses; review and will continue to look for
individual pieces of content were produced
across the globe and leadership teams in all
2020: 87% male – 13% female
2019: 87% male – 13% female
• transparent disciplinary and grievance
procedures;
opportunities to diversify our most senior
teams.
our business participated in making sure
everyone in our business knows what is
* a senior manager as defined in section 414C of the UK Companies Act 2006 to include
members of the management team and Glencore appointed directors on the boards
of subsidiaries. This definition is only relevant to this data and does not apply to other
• Group reporting requirements.
expected of us. references of ‘senior management’ that are included in this Annual Report.

Our People continued

Our IDEAL
framework Inclusion
I
Our next steps spells out our
How we all behave
commitment
During 2021 we developed a Diversity and The behaviours we consistently and intentionally demonstrate to create a
to creating an collaborative culture that values our differences, encourages our people to be
Inclusion strategy at Group level. Whilst many
of our business units have pursued such environment themselves and enables them to participate and contribute to their full potential.
objectives separately, this is the first time the where
business has come together to develop a employees
unified strategy and framework for the can achieve
coming years. Diversity
their potential,
The objectives of our IDEAL Framework are to:
• Build a culture of intentional inclusion

throughout the organisation
wherever
they are: D Who we all are
The collection of unique visible characteristics that make each of us different
including, but not limited to, sexual orientation, education, age, ethnicity,
• Better reflect society by increasing diversity

of our workforce
cultural background, family status, experience and beliefs.
• Ensure fair treatment and access to

opportunities for all in our programmes,
Equity
E
processes and practices
• Remove perceived barriers and enable all
groups to advance throughout the
How we all succeed
The actions necessary to ensure fair treatment and access to opportunities,
resources, programmes and practices for all, especially those who are under-
organisation represented or have been historically disadvantaged, such that they can participate
In developing this Group strategy, we fully, regardless of their identity.
undertook a review of the work underway in
each of our businesses and assessed their
level of maturity in relation to Diversity and
Advancement
A
Inclusion. This bottom-up process will enable
us to set relevant and contextual targets for How we all grow
each of our businesses and our leaders. The removing of barriers that might prevent any person or group of people
from developing to their full potential. Different steps may be required to
Human Resources is currently finalising the
facilitate growth opportunities for under-represented groups.
global and local actions that will define the
work programme and the specific targets for
each element of the strategy over the coming
year. Most or all businesses are likely to have
gender-based targets in the first wave. Local
The strategy and its delivery will be governed
by a special diversity taskforce with
representatives from management, Human
Resources and staff. Progress against actions
L Where it all happens
There is no ‘one size fits all’. Building a more inclusive work environment and
removing barriers requires that we set some global priorities and a framework
that is customised locally and implemented according to the local context.
will be reviewed quarterly and reported to the
Board and will be disclosed in future Annual
Reports.

Our people by region Employment type

Kazzinc
The majority of our employees work on mine
Kazzinc actively creates and supports an and smelter sites and are employed through Employees: 81,284 Contractors: 53,630
full time employment contracts. Contractors 45,000
environment of equal opportunities across 41,688
its 20,000 strong workforce, and at all represent approximately 35-40% of our 40,000
levels of the organisation. It has workforce, many of which operate alongside
35,000
undertaken a number of initiatives to our full time staff, providing essential service 31,350
attract, retain and grow the number of and specialist maintenance support to our 30,000 27,417
female employees. operations. In Africa our major employment 25,000
hubs are in South Africa and the DRC. In Asia, 19,863
In a traditionally male dominated industry, the majority of our people work in our 20,000
and where legislation in Kazakhstan operations in Kazakhstan. 15,000
prevents certain job roles being staffed by
women, our efforts are showing positive 10,000 8,252
Workforce Composition 6,344
progress. 22% of the total workforce of and Development 5,000
Kazzinc are women, matched by 21%
Our business is deliberately decentralised as 0
representation in line management. Africa Asia Australia Europe North South
we believe this gives greater accountability America America
and ownership to our managers. However, the Employees – permanent Employees – temporary Contractors
decentralised nature of the business creates
McArthur River challenges for the collection and
McArthur River is in the Northern Territory management of Group-wide data and trends.
of Australia. In this remote location, We understand that good data is a central
accepting and celebrating Indigenous element of a diversity strategy and began to Gender balance of employees / Percentage full-time
culture is key to making the workplace a safe capture more data regarding diversity from
and inclusive environment for all its people. 2020. Further work is underway to provide Male: 67,659 Female: 13,625
greater detail in future years.
98% 100% 97% 93% 96% 100%
In 2021, the mine increased its Indigenous 25,000
employment ratio from 18% to 24% of the We have seen a modest increase in the 3,491 percentage full-time
4,980
workforce, with the majority of new representation of female workers in our
employees coming from the local operations but have made greater progress at
20,000
community. The number of Indigenous management levels. Employee turnover in 19,512
employees grew from 80 to 125 while the continuing operations is 9.1%, with statistically 17,256
15,000
number of employees from the local region insignificant differences between the 2,097
almost doubled from 23 to 45. retention rates for men and women. 1,165
10,000 11,257 10,588
1,047
845
5,000
5,374
3,672
0
Africa Asia Australia Europe North South
America America
Male Female

Investing in our people tools such as our Health Needs Assessment COVID
Listening to employees (HNA). Where key health issues, needs and
During the year we completed a seamless Our business and staff continue to operate
transition to a new CEO and completed the interests of workers are identified, we despite the challenges presented by the
Our global Zinc business has focused on change in leadership in a number of our develop and implement a Fit for Life pandemic. Many of our businesses have had
improving the communication of training Marketing departments. The vast majority of wellness strategy. Our businesses are also to continue to operate flexibly in response to
and development opportunities and on the positions have been filled through required to provide health promotion and changing rates of infection and restrictions.
improving the systems and processes that internal succession – testament to the education in line with the HNA including We have participated in vaccination
drive development planning and strength in depth of talent in the business. measures around maintaining work-life programmes and aided governments and
succession. Action plans flowing from the balance. health authorities where appropriate. In some
2020 People Survey are reviewed We completed a global People Survey in
At a Group level our communication locations this included our own vaccination
quarterly to ensure momentum is 2020 which identified a number of shared
strategy has continued to raise awareness of programmes, which complement the efforts
maintained. concerns, including training and
mental health issues throughout the year. of local health authorities.
development opportunities, open
communications with management, and As part of this year's campaign, a global We continue to utilise the expert resources at
At Nikkelverk in Norway, management succession planning. At a Group and webinar was recorded in both English and ISOS to guide our decision making and work
and union representatives collaborated to business unit level, we have reviewed our French with experts from International SOS closely with them to assess current and
prepare Mission 2022; a revitalised training and development offerings to (ISOS) providing practical tips on how to potential impacts on the business. We host
business strategy with the goal of making ensure they deliver value for the business recognise the signs of stress and build regular updates for our global HSEC
Nikkelverk a more attractive workplace. and opportunities for staff. mental resilience in the workplace and at community. The Group has continued to
Status, progress and results are home, and focused in particular on some of communicate with staff to ensure they are
communicated monthly to the Maintaining a strong pipeline of talent to the challenges of working remotely. aware of their obligations in an ever-
management team and quarterly to the staff our operations remains an area of
changing landscape of restrictions.
employees, and periodically to the unions. significant focus for some of our assets,
especially those in developed economies
such as Australia. Each of our business units
The ‘Home from Home’ programme in has targeted recruitment programmes
our Ferroalloys business in South Africa aimed at school leavers and graduates, for
aims to create a more inclusive culture, example bursaries for study and vacation
building on our Openness value. There work experience. We offer apprenticeships
was a significant increase in and graduate employment programmes
communications activities and elevated that equip people with the operational and
levels of visibility and sponsorship from commercial skills they need to be effective
the senior management group. Next steps in business.
in 2022 are enhanced communications
training for leaders and a focus on Mental Health
respectful behaviour and fairness in the Raising awareness of the importance of
workplace. mental health is a continued priority for the
business. Mental health issues arising from
the pandemic provided an additional
challenge. Our newly-updated Health
Standard requires each asset to identify and
assess the physical and psychosocial
wellbeing of workers through the use of

Section 172 Statement and Stakeholder Engagement
Statement regarding Section 172 2022), Climate section from page 19 and returns for business, whilst maintaining our operating responsibly, versus the risk of a new
of the UK Companies Act 2006 and Risk Management section from pages 81 - 84. licence to operate venturer joining, with equal or greater rights,
how the Board complied with its
• t he desirability of the Company maintaining • Has standing agenda items at Board and who might not agree to this approach.
Section 172 duty
The UK Corporate Governance Code (the
a reputation for high standards of business
conduct: see our Ethics and Compliance
Committee meetings that reflect our
different stakeholder groups’ interests.
• This decision was therefore considered to
contribute to the long-term success of the
Code) requires the Board to understand the
views of the Company’s other key
section from page 43, our Ethics and
Compliance report (to be released in March
• Remains focused on its stakeholder
awareness and strengthening its
Company. Further details on key topics
considered and principal decisions taken by
stakeholders and report how their interests 2022), Climate change section from page 19, understanding of the broad range of views the Board in the year are detailed on page 94.
and the matters set out in section 172 of the Sustainability section from page 27 and expressed by Glencore's stakeholders. Unfortunately, as a result of the global
UK Companies Act 2006 have been
considered in Board discussions and decision-
Sustainability Report, and discussion of
risks around permitting, licence to operate, • Holds management to account on their
commitments, particularly in relation to
pandemic, some planned interactions
between the designated Non-Executive
making. The Board considers the interests of a and laws and enforcement on pages 74-76.
range of stakeholders in its discussions,
decision making and implementation of • the need to act fairly between members of
the Company: the Corporate Governance
matters relating to climate, local
communities, and health and safety,
Directors and our workforce had to be
curtailed. However, virtual town hall meetings
strategy, and considers the impact of ensuring they are acting in accordance with were organised, giving our workforce the
section, page 95, outlines the material ways our Purpose and Values. opportunity to engage directly with them (see
decision-making on the long-term success in which the Board and management
of the Group. The Board is aware that some of the decisions Our people and ECC Committee report).
interact with and communicate to
that are made have an adverse impact on In addition, the designated workforce
During the year, the Directors consider that shareholders
certain stakeholder groups, however, those engagement Directors held focus groups with
they have acted in a way, and have made When discharging their duty under Section considerations are integral to decision-
decisions that would most likely promote the a cross section of employees across the Group.
172, the Directors have focussed on mapping making and the Board encourages
success of the Group for the benefit of its The Directors gained valuable insight into
out the Company's key stakeholder groups transparent and constructive stakeholder
members as a whole, with particular company culture and issues that are
and reviewing our level of engagement with engagement and consultation, particularly
regard for: important to the workforce, including
them. We operate assets in 35 countries and where difficult decisions have to be made.
•
diversity, training and development, safety,
have around 135,000 employees and
the likely consequences of any decision in For example, one of the principal decisions and the transition to green energy. The
contractors. Engaging and responding to our
the long term: see Strategy on pages 12-15, made by the Board during the year was the feedback from the sessions was discussed at
stakeholder groups, regardless of their
and Risk Management from page 68. the ECC meetings and fed back to the Board
•
location or opinion, is fundamental to how we acquisition of the remaining two-thirds of
the interests of the Group's employees: see Cerrejon when our joint venture (JV) partners and senior management where follow-up
operate. In addition to direct Board
Our People section from page 34, ECC notified us that they intended to sell their actions were recommended.
engagement, engagement by management
Committee Report on page 96, and at different levels of the Group, with stakes. The options available to Glencore were The following pages outline our key
Directors' Remuneration Report from page appropriate feedback and reporting, enables essentially to buy out the partners, stand to stakeholder groups, how we interact with
101. the Board to understand the perspectives of one side while they sold their stakes, or join
•
them and how the Board considers their
the need to foster the Company's business our stakeholders and consider the likely them in selling. Various stakeholder groups interests and opinions during its discussions
relationships with suppliers, customers and consequences of decisions in the long term. were considered and the Board carefully and decision-making processes.
others: refer to next pages where we reviewed how to respond to the sale notice in
To enable and ensure stakeholder a manner that was consistent with our Paris As a global resources business, we
provide further details on stakeholder
considerations are reflected in our decision- aligned coal depletion strategy, recognising recognise that robust, respectful and
engagement.
•
making, the Board: two‑way relationships with stakeholders are
our obligation to act as a responsible steward
•
the impact of the Company's operations on essential for our social licence to operate.
versees a strategy than can achieve
O of assets. A key consideration was the
the community and environment: see our
lasting success and generate sustainable consolidation of control under our sustainable
Sustainability section from page 27 and our
operating philosophy and commitment to
Sustainability Report (to be released in April

Section 172 Statement and Stakeholder Engagement continued
Stakeholder Why they are important What is important How the Group How the Board takes account of these
to the Company to the stakeholder maintains engagement interests
Our people The success of our industrial • Training, compensation and • Covid-19 engagement • Workforce engagement by
assets and marketing offices career opportunities • Intranet, emails, newsletter designated Non-Executive
would not be possible without • Health, safety and wellbeing updates Directors
the dedication of our workforce
• Company culture and reputation • Posters and leaflets • Regular updates from the Group
• Industrial relations • Virtual town hall meetings and
forums •
Head of Human Resources
Regular updates on progress and
• Pre-shift ‘toolbox’ talks actions on the Raising Concerns
• Culture surveys
programme by the General
• Webinars
•
Counsel
• Raising Concerns platform

Results of culture surveys
Communities Mutually beneficial relationships • Local employment and • Community liaison teams • Group HSEC-HR provides the
with communities are crucial to procurement opportunities • Various meeting formats to reflect Board HSEC Committee with
our Licence to operate within • Socio-economic development local expectations regular updates on Glencore’s
communities projects • Radio and television broadcasts impact on the communities living
• Environmental management • Social media channels and asset’s
•
around its operations
• Operational impacts websites Asset management provide
• Potential site closure • Asset-specific publications

details of community
• Tailings storage facilities

considerationS as input into
• Security and its engagement with

Directors’ discussions on
operational matters
•
civil society
Artisanal and small-scale mining
• Updates on ASM
(ASM)

Investors, financial analysts Our strategy and long-term • Financial and operational • Regular calls, one-on-one • Results meetings
and the media success depends on the support performance meetings and group events/ • AGM
of our investors. Financial • Climate change presentations
•
•
Meetings with shareholders,
analysts and the media are
• Compliance with laws and Corporate Affairs teams regularly analysts and key media
important in ensuring all regulations speak to media at global, national
• Group Investor Relations provide
investors have equal access to
• Presence in developing countries
•
and local levels analysts’ reports and investor
quality information
• Tailings storage management
•
Site visits (Covid permitting) feedback
• Transparent payments to Webinars and online Q&A
sessions
• Following any major
announcements, Group
•
government
• Human rights Annual report, sustainability Corporate Communications
• Industrial relations
report, modern slavery statement,
payments to governments report •
provides feedback to the Board
Board resolution on Climate
and other reports and Change
presentations
• AGM
• Website, social media channels,
media releases, and listing
regulatory announcements
Governments and regulators Governments and regulators • Tax and royalty payments • Provide information and updates • Reports on material regulatory
provide the legal and policy • Compliance with laws and on key topics, either directly or as issues and emerging legislation
framework that supports our regulations part of industry associations • Reports on engagement with
businesses and ensure that our
communities and people are
• Local employment and
procurement
• Participation in multi-stakeholder
organisations, initiatives and
governments and regulators
protected
• Operational environmental
management, including tailings
roundtables, such as the
Voluntary Principles on Security
storage and Human Rights, the OECD and
• Climate change
the Extractive Industries
• Socio-economic development
projects •
Transparency Initiative (EITI)
Direct engagement with national,
• Transparency and human rights

regional and local government on
• Public health
•
key topics
• Security
•
Site visits
Public reporting

Suppliers and customers Well established relationships • Responsible sourcing and supply • Regular meetings and updates • Oversight of the implementation
with suppliers and customers are • Transparency in the supply chain • Customer site visits (Covid of the Group Supplier Standards
essential to the long-term
• Procurement spend permitting) • Discussions as to relationships
viability of the business model
• Human rights • Participation in commodity- with and comments from
and strategy
• Compliance with laws and specific responsible sourcing
initiatives
suppliers and customers
•
regulations
• Competitive pricing Local procurement initiatives
• Performance
Unions Unions provide the workforce • Health, safety and wellbeing • Regular meetings with asset • Periodic updates from the Group
with representation where • Negotiation of workplace management Head of Human Resources and
required and our workforce is agreements • Union participation in asset safety Head of Industrial Assets on
critical to our success
• Industrial relations committees material workforce issues
NGOs and civil society groups Maintaining effective • Human rights • Direct engagement with global • Group Sustainable Development
engagement with NGOs is vital in • Tailings storage facilities and local NGOs and civil society provides regular updates to the
ensuring we continue to operate
• Social incidents
•
groups Directors on the opinions and
ethically and sustainably
• Public health Sustainability Reporting, activities of NGOs and civil society
• Operational and environmental

management
including Sustainability Report,
Modern Slavery Statement, •
groups
Regular discussions on major
• Socio-economic development
Payments to Government Report,
and Human Rights Report
issues of concern to NGOs and
civil society groups and
•
projects
Transparency in payments to • Social media channels and
corporate website
engagement with them
•
governments
Security and its engagement with • External forums and
organisations, such as the
civil society
• Compliance with laws and
regulations
Voluntary Principles on Security
and Human Rights, the OECD
and the EITI

Stories of the year
Mpumalanga Winter Wheat Other partners of the Winter Wheat project

include the ICMM (financial and advocacy),
Pilot Project Kelloggs (technical assistance, access to seed
Glencore’s South African flagship food and market facilitation), and Business for
security social investment is the Mpumalanga Development (project execution, monitoring
Winter Wheat initiative, a pilot project and reporting).
repurposing remediated coal mine land and
using mine water for subsistence and Glencore’s contribution comprises access to
commercial farming in an area not known for land, water for irrigation, funding, and support
winter cropping. This is aimed at improving for communities, with potential to scale to
smallholder subsistence agricultural practices commercial levels. A multi-stakeholder
with facilitated market access for surplus approach, facilitated by the MWCB, is
produce. With an initial one-year time frame expected to yield sustainable transformation
and potential five year extension, the pilot as it leverages collective partner capabilities
aims to test: to address the crop-to-market agricultural
• the feasibility of utilising remediated mine

land and mine water to grow commercially
supply chain.
viable winter wheat crops

• the community desirability of winter wheat
cropping
• the viability of commercial cropping and
capacity to meet market requirements.
The Mpumalanga Winter Wheat pilot is being
undertaken in partnership with the Mine
Water Coordinating Body (MWCB), a multi-
stakeholder organisation formed in 2016 to
incubate collaboration between public and
private stakeholders of the Upper Olifants
Catchment in the Mpumalanga Coalfields, of
which Glencore is a founding financial partner.

Ethics and compliance
We fulfil our purpose and remain a

business partner of choice by Glencore Ethics and Compliance programme
upholding our commitment to
ethical business practices
sight and gover
rd over nan
Our approach
oa ce
We are committed to maintaining a culture of Together with other B Identifying, assessing
ethics and compliance throughout the Group, functions, ensuring an and evaluating
rather than simply performing the minimum appropriate system for compliance risks
required by law. We do not knowingly assist discipline and Discipline and Risk and controls
any third party in breaching the law, or incentives incentives assessments
participate in any criminal, fraudulent or
corrupt practice in any country.
To support this, our Group Ethics and Coordinating objective Establishing
Compliance programme includes risk and consistent
Policies, approaches and
assessments, policies, standards, procedures internal investigations, Investigations VALUES standards, requirements to
and guidelines, training and awareness, whilst maintaining
procedures mitigate compliance
Safety and guidelines
advice, monitoring, speaking openly and confidentiality and risks and reflect
investigations. We consider guidance from protecting against
Integrity ethical and legal
relevant authorities and international retaliation Responsibility expectations and
organisations and work with leading advisers Openness requirements
to ensure we are aligned with international Speaking Simplicity
best practices. openly and Training and
Entrepreneurialism awareness
Our employees, directors and officers, as well raising
as contractors under Glencore’s direct concerns
supervision, working for a Glencore office or
industrial asset directly or indirectly controlled
or operated by Glencore worldwide, must Providing safe channels to Training and raising
comply with our Code and policies, as well as raise concerns regarding awareness on ethics /
potential misconduct Monitoring Advice compliance risks
applicable laws and regulations, regardless of
location. Our Supplier Standards set out the including our Group Raising
expectations we have for all suppliers, Concerns Programme
including expectations regarding ethical
business practices. We assert our influence
over joint ventures we don’t control to Assessing the effectiveness of Providing advice and guidance
encourage them to act in a manner programme implementation and to employees on ethics and
consistent with our Values and Code. identifying opportunities for improvement compliance matters

Ethics and compliance The following management committees Group compliance function structure Group ethics and compliance
continued also support the implementation of our Our Group Compliance team supports the programme
Ethics and Compliance programme and implementation of our Ethics and Compliance Risk assessments
report to the Board: programme and is comprised of our full-time In order to ensure the Ethics and Compliance
Board and management Corporate and Regional teams, as well as local programme is appropriately designed, tailored
oversight and support Compliance Officers in our offices and to our business and that resources are
The Environment, Social and Governance
Our Board of Directors plays a critical role in (ESG) committee, comprises Glencore’s CEO, industrial assets. adequately allocated, we identify, assess and
overseeing and assessing our culture of ethics CFO, Head of Industrial Assets, General evaluate compliance risks faced by our business.
The Corporate Compliance team is
and compliance, and ensuring policies, Counsel, Head of Compliance, Head of Human responsible for designing, monitoring and We achieve this by performing an annual
practices and behaviour are consistent with Resources, Head of HSEC and Human Rights, continuously improving the Ethics and Group Compliance risk assessment to identify,
our Values. Our Board has established a and Head of Sustainability. It also includes Compliance programme. The Corporate team record and assess risks relevant to the entire
separate Ethics, Compliance and Culture senior members of executive management includes subject matter experts for each Group. We document these risks consistently
(ECC) committee, dedicated to overseeing representing marketing and industrial assets element of our programme and the various in the Group Compliance Risk Register which
and approving key ethics, compliance and across different commodities. The ESG compliance risks that it covers. The Regional covers several risk areas, but focuses in
culture-related matters within the Group. committee considers issues relevant to the Compliance teams are responsible for particular on anti-corruption given the nature
The Board’s role in ethics and compliance Group’s corporate functions regarding the implementation of the programme across of our business and the geographies in which
continues to evolve. Members of the Board various ESG programmes and projects regions and commodities. They provide we operate.
regularly engage with Compliance Function implemented across the Group. It also reviews guidance to the business and support the
and approves policies, standards, procedures, In addition, these risks are assessed at
leadership. Members of the Board have also local Compliance Officers and a network of
systems and controls relevant to the appropriate intervals within each office and
been designated as Engagement Directors part-time Compliance Coordinators based in
corporate functions. industrial asset across the Group. These local
who, through ‘town-hall’ engagements with our offices and industrial assets. The
risk assessments help us understand and
employees, promote the Company’s Compliance Coordinators have a compliance
document the specific compliance risks faced
compliance culture, connect with employees role in addition to their primary business or
The Business Approval Committee (BAC), by each of our businesses, as well as identify
through question and answer sessions, and corporate role. We appoint full-time specialist
a sub-committee of the ESG, comprises and assess the controls in place to mitigate
facilitate the Ethics and Compliance local Compliance Officers or part-time
Glencore’s CEO, CFO, General Counsel, Head those risks.
programme. Board members are also Compliance Coordinators depending on the
featured in Company communications on of Sustainable Development and other nature and risks identified at the relevant These risk assessments also form the basis for
specific compliance initiatives and participate relevant corporate or business heads as office or industrial asset and have a formal drafting and updating Group policies,
in events where ethics and compliance topics required. It determines, sets guidance and process for nominating, assessing and standards, procedures and guidelines, as well
are covered. criteria, and reviews business relationships, appointing qualified individuals for the as determining our training programme and
transactions or counterparties that may give Compliance Coordinator role. compliance team resourcing needs.
We provide training to the Board, rise to ethical or reputational concerns.
emphasising to Directors their role in ethics Both roles support our employees in day-to-
and compliance oversight and programme day business considerations, particularly
implementation. Furthermore, the ECC those seeking advice on ethical and lawful
The Raising Concerns Investigations
committee receives regular updates covering behaviour or policy implementation.
Committee (RCIC), comprises Glencore’s
topics such as the Compliance team
CEO, CFO, General Counsel, Head of Industrial
structure, status of risk assessments, policies,
Assets and Head of Human Resources. The
standards, procedures or guidelines under
RCIC oversees the operation of our Raising
development or review, updates on training
Concerns Programme and the conduct of
and awareness activities, overviews of
investigations, ensuring recommendations
monitoring visits and key findings. Board
and sanctions are applied consistently across
members also receive updates on material
the Group.
reports that have come in via our Raising
Concerns platform and the progress of
investigations.

Ethics and compliance Anti-corruption and bribery Policy and are not given or received with the Sanctions and trade controls
intent or prospect of influencing the
continued Our Anti-Corruption and Bribery Policy is
recipient’s decision-making or other conduct.
Our Sanctions Policy sets out our
clear: the offering, providing, authorising, commitment to complying with all applicable
requesting or receiving of bribes is We have requirements for pre-approval of sanctions, appropriately managing sanctions
Group policy framework unacceptable, and we do not engage in gifts and entertainment based on localised risk and not participating in transactions
Our Group policy framework encompasses corruption or bribery, including facilitation thresholds, and additional requirements designed or intended to evade
our Values, Code of Conduct and a suite of payments. We assess corruption risk within regarding public officials. applicable sanctions.
policies, standards, procedures and guidelines our businesses and work to address these Interactions with public officials To manage our sanctions risk exposure and
on various compliance matters and risks. risks through policies, standards, procedures, Dealings with public officials bring a higher ensure compliance, we implement a range of
These include bribery and corruption, and guidelines on various topics. These cover: risk of perceived bribery, so we are especially controls and processes. These include
conflicts of interest, sanctions, anti-money careful in our interactions with them, and
Political contributions screening and conducting due diligence on
laundering, market conduct, the prevention of have various requirements that guide how we
We do not contribute any of our funds or our counterparties and vessels using a
the facilitation of tax evasion, competition law, interact with public officials in order to
resources as contributions to any political risk-based approach to determine whether
fraud and information governance. This mitigate corruption risks.
campaign, political party, political candidate they are a sanctions target, subject to sectoral
framework reflects our commitment to
or any such affiliated organisations. Participation in external sanctions or otherwise attract sanctions risk.
uphold ethical business practices and to
meet, or exceed, applicable laws and Political engagement anti-corruption organisations
external requirements. We are a member of the Partnering Against Anti-money laundering
Although we do not directly participate in
party politics, we do engage in policy debate Corruption Initiative (PACI) whose members Our Anti-Money Laundering Policy sets out
Employees can access our compliance collaborate on collective action and share our approach to ensuring that we comply
on subjects of legitimate concern to our
policies, standards, procedures, and leading practice in organisational compliance. with all applicable laws and regulations to
business, employees, customers, end users
guidelines in up to 11 languages, through The initiative has a commitment of zero prevent tax evasion and money laundering,
and the communities in which we operate. All
various channels, including the Group and tolerance to bribery and requires its members and appropriately manage the related risks.
officers, employees and persons who lobby
local intranets. Our managers and supervisors to implement practical and effective anti- We do not tolerate tax evasion of any kind and
on our behalf must comply with all relevant
are responsible for ensuring employees corruption programmes. We are also an we do not knowingly or wilfully facilitate tax
Glencore policy and procedural requirements
understand and comply with the policies, associate member of the Maritime Anti- evasion.
and all applicable legislation, including, but
standards and procedures. Employees who Corruption Network (MACN).
not limited to, the laws and regulations To manage our money laundering and tax
have access to a work computer must confirm
relating to registration and reporting. We actively participate in PACI and MACN’s evasion risk exposure and ensure compliance,
their awareness and understanding of our
compliance requirements when they begin Sponsorships, charitable contributions annual events and have incorporated we implement a number of controls and
working at Glencore and annually thereafter. and community investments guidelines from both organisations into our processes including in respect of payments to
Our offices and industrial assets are We never make a sponsorship, charitable programme. We are an active supporter of third parties.
responsible for implementing Group contribution or community investment in the Extractive Industries Transparency
procedures in their domains and developing order to disguise a bribe, or to gain an Initiative, which is a multi-stakeholder
and implementing local procedures, improper business advantage. initiative between governments, companies
consistent with Group policies and standards, and civil society, which promotes the open
but adapted for local risks and requirements. We ensure that when we make sponsorships, and accountable management of
We look to implement system and financial charitable contributions or community extractive resources.
controls to ensure that our requirements are investments, we conduct risk-based due
diligence and, when required, monitor the Transparency
operationalised and embedded in
appropriate use of our funds or resources. Each year we report our total payments to
our business.
governments and provide country-by-country
Our policy framework is comprehensive and Gifts and entertainment and project-by-project information.
addresses relevant compliance risks, with a We only give and accept reasonable, Additionally, and where applicable, we have
strong emphasis on key risks such as anti- appropriate and lawful gifts and aligned our reporting on such payments with
corruption, sanctions and money laundering. entertainment that satisfy the general the requirements of Chapter 10 of the
principles of our Anti-Corruption and Bribery European Union accounting directive.

Ethics and compliance present the highest risk to Glencore. This We carefully consider the audience of our Awareness
applies particularly to intermediaries, training and awareness materials to make Awareness-raising activities and initiatives,
continued government facing third parties, charitable the training effective and have established a in addition to online and in-person training,
contributions, sponsorships and community process for assigning employees a are key to reminding employees of the
Business partners investments. The procedure also requires compliance risk rating based on their importance of ethics and compliance.
We work with a range of business partners ongoing training, monitoring and review of function or role, which rating we use when While in-person activities and initiatives
and expect them to share our commitment the relationships. we roll out our training and awareness have been heavily impacted by Covid-19,
to ethical business practices. Business materials. We tailor our training and we have continued to develop awareness
Through our Joint Ventures and Mergers and
partners include our suppliers, customers, awareness materials to the audience and materials in the form of electronic guides,
Acquisitions Procedure, we ensure that our
joint ventures (JVs), JV partners, service make them relevant by including checklists, newsletters, videos and intranet
Ethics and Compliance programme is
providers and other counterparties. We have hypothetical scenarios illustrating how ethics communications.
implemented at all JVs that we control or
a comprehensive framework for managing and compliance dilemmas might manifest
operate. For JVs which we do not control or We also continue to develop content for the
the key risks associated with our business themselves in employees’ daily work.
operate, we seek to influence our JV partners Glencore Ethics and Compliance app which
partners, from onboarding through to to adopt our commitment to responsible New joiners receive in-person compliance supports employees in making choices in
offboarding, and including continuous business practices and implement training sessions on our Values, Code of line with our Values, our Code of Conduct
monitoring. Through this framework, we appropriate compliance programmes. Conduct, and key compliance risks including and the law. It provides easy, user-friendly
seek to comply with applicable laws how to raise concerns. mobile access to key ethics and compliance
(including bribery and corruption, In respect of mergers, acquisitions and
principles, and allows for easy access to our
sanctions and money laundering) and disposals, we conduct thorough pre- A critical element of our training programme
Raising Concerns platform, Conflicts of
to manage the reputational risks that can transaction due diligence. We incorporate is measuring its effectiveness. We do this
Interest declaration platform, and Gifts and
arise from engaging with certain categories acquired or merged entities which we through soliciting post-course feedback
Entertainment register.
of counterparties. control or operate, into our Ethics and from employees themselves and testing
Compliance programme. employees' understanding and retention of
Our framework seeks to ensure that all key messages through various (pre-/post)
counterparties are assessed based on
Training and awareness knowledge quizzes.
their risk and then directed to the most
Training We actively monitor compliance training
appropriate due diligence and
Training on and awareness of our policies, completions. Compliance escalates non-
management process for their risk level
standards, procedures, and guidelines are completions to management. Employees
– either Know Your Counterparty (KYC)
critical components of our Ethics and who fail to complete training may be subject
or Third Party Due Diligence and
Compliance programme. They ensure our to disciplinary action according to the
Management. All our procedures require
employees and relevant contractors Mandatory Compliance Training
beneficial ownership identification.
understand the behaviour expected of them Escalation Procedure.
Our KYC programme differs for our offices and provide guidance on how they can
and industrial assets due to the different risk identify and practically approach ethics and We also train and develop our own
profile of the business, but each applies a compliance dilemmas in their daily work. compliance personnel to increase their
risk-based approach to due diligence for understanding of key compliance risks and
Our training programmes mix eLearning important developments. We encourage
suppliers, customers and service providers.
with live training. eLearning sessions are them to participate in relevant conferences,
Our Third Party Due Diligence and
designed for employees and contractors lectures, webinars and podcasts, where
Management Procedure is a standardised
with regular access to a work computer. possible, to continuously enhance their
procedure across offices and industrial
Where regular access to a work computer knowledge and skills.
assets. It sets out a detailed, risk-based
is not available, employees and contractors
assessment process whereby we identify,
receive training in other ways, including
assess and mitigate the corruption risk
induction sessions, pre-shift training and
exposure of third party relationships that For training statistics please refer to
toolbox talks.
the separately issued Glencore Ethics
and Compliance Report.

Ethics and compliance

continued
Monitoring programme across our Marketing ERP If a concern remains unresolved or a For statistics on our Raising Concerns
We continuously monitor and test the system, trading platforms and expense whistleblower is uncomfortable using local programme, please refer to the
implementation of our Ethics and Compliance management systems to monitor for channels, concerns can also be reported via separately issued Glencore Ethics and
programme in order to determine its transactions and activities that represent an our Raising Concerns programme, our Compliance Report.
effectiveness, and that it is operationalised elevated level of bribery and corruption risk. corporate whistleblowing programme,
and embedded into business operations. We will continue to develop and enhance our managed in Switzerland.
These monitoring activities also enable us to systems analytics capability across the Group.
Raising Concerns allows whistleblowers to
identify opportunities for improvement that raise concerns anonymously in any of 15
help develop and evolve the programme and Speaking openly and raising concerns
languages, by internet or phone. Hotlines are
respond to changes in our business, the We are committed to creating a culture where available in most of the countries where we
environments we operate in and applicable everyone feels free to speak about concerns operate, and details are published on the
laws and regulations. in a secure and confidential way. We do not platform’s website and on posters at offices
tolerate retaliation against anyone who and industrial assets.
We have implemented a number of systems
speaks openly about conduct they believe
across the Group to ensure that we All concerns are taken seriously and handled
is unethical, illegal or not in line with our
consistently manage and track our promptly, using an objective, fact-based
Code and policies, even if the concern is
compliance data across our different rationale. Concerns are investigated either by
not substantiated.
modules. This includes risk assessment, our corporate office in Switzerland, or locally,
training and policies and gives us an overall We have a comprehensive suite of documents depending on factors such as the nature and
picture of the risks in each of our offices and which establish a framework for managing severity of the concern.
industrial assets and the status of concerns, including our Whistleblowing
implementation of our programme. policy. This policy encourages employees Where disciplinary action is taken, this depends
to report concerns, explains the process in each case on the behaviour exhibited, the
Our Annual Monitoring Plan comprises effects of that behaviour and the different
for reporting, escalating, investigating,
on-site and desktop reviews. On-site reviews disciplinary measures applicable to employees,
and remedying concerns, and makes clear
are visits to our offices and/or industrial assets contractors and other third parties on-site.
that retaliation is absolutely prohibited,
to assess the implementation of our Ethics
regardless of whether the reported concern
and Compliance programme. In light of the
is ultimately substantiated.
Covid-19 pandemic, these reviews have been
performed remotely. Desktop reviews focus We encourage whistleblowers to first raise
on the analysis, sampling and transaction concerns with relevant managers or
testing of either compliance processes and supervisors as they are usually best equipped
controls or other business processes, systems to resolve concerns quickly and effectively.
and controls that the Monitoring team can Reporters also have the option of reaching out
access centrally. Over the last few years, we to nominated whistleblowing contacts, who
have worked with external advisers to execute are members of senior management at the
data analytics over our systems. In 2021, we office or industrial asset.
implemented an in-house data analytics

Financial review
Financial results $11,560 million and $4,416 million in 2020. Market conditions
Following Covid-19’s severe economic impacts The positive impact of the higher commodity
prices on Adjusted EBITDA was somewhat Select average commodity prices
in 2020, a recovery in demand, together with Highlights
multiple supply-side issues, resulted in tempered by higher costs (mainly energy), the
generally significant inventory drawdowns effects of a weaker US dollar against most of
our producer currencies, including average Spot Spot
and prices for most of our key commodities 31 Dec 31 Dec Average Average Change in
reaching multi-year highs. These higher year-over-year declines against the Australian
2021 2020 2021 2020 average %
prices, along with our industrial portfolio’s dollar (9%) and the South African rand (10%)
S&P GSCI Industrial Metals Index 499 382 457 318 44
competitive cost structure, gave rise to a and modestly lower production levels.
Adjusted EBITDA mining margins improved S&P GSCI Energy Index 252 164 230 138 67
record Adjusted EBITDA contribution for our
industrial asset segment. Our marketing to 45% (2020: 36%) in our metal operations
segment also delivered a record performance, and to 47% (2020: 17%) in our energy LME (cash) copper price ($/t) 9,741 7,749 9,320 6,186 51
owing to tight physical supply/demand operations. See page 61. LME (cash) zinc price ($/t) 3,590 2,729 3,005 2,269 32
fundamentals for our core commodities and LME (cash) lead price ($/t) 2,338 1,976 2,202 1,826 21
the associated improvement in arbitrage LME (cash) nickel price ($/t) 20,881 16,554 18,474 13,803 34
opportunities. Group net income attributable Group Adjusted EBITDA◊ Gold price ($/oz) 1,829 1,898 1,799 1,771 2
to equity holders improved from a loss of (US$ billion) Silver price ($/oz) 23 26 25 21 19
$1,903 million in 2020 to an income of
$4,974 million in 2021, after recognising 2021 21.3 Metal Bulletin cobalt standard grade, 34 15 24 15 60
in-warehouse Rotterdam ($/lb)
various significant items discussed below.
2020 11.6 Ferro-chrome 50% Cr import, CIF main 114 73 113 70 61
EPS increased from negative $0.14 per share
Chinese ports, contained Cr (¢/lb)
to positive $0.38 per share.
2019 11.6 Iron ore (Platts 62% CFR North China) price 113 154 156 105 49
The economic recovery seen in late 2020 ($/DMT)
continued into 2021, helped significantly 2018 15.8
by major governments and central banks Coal API4 ($/t) 126 93 125 65 92
initiating and sustaining the provision of 2017 14.5 Coal Newcastle (6,000) ($/t) 166 82 137 61 125
material stimulus to the global economy.
Oil price – Brent ($/bbl) 78 52 71 43 65
Average year-over-year price increases for
coal (Newc), cobalt, copper, nickel and zinc
Net income attributable Currency table
were 125%, 60%, 51%, 34% and 32%
to equity holders (US$ billion)
respectively. Owing mainly to such higher Spot Spot
31 Dec 31 Dec Average Average Change in
prices, Adjusted EBITDA set a record of 2021 5.0 2021 2020 2021 2020 average %
$21,323 million and Adjusted EBIT was
AUD : USD 0.72 0.77 0.75 0.69 9
$14,495 million in 2021, compared to 2020 (1.9)
USD : CAD 1.26 1.27 1.25 1.34 (7)
2019 (0.4) EUR : USD 1.14 1.22 1.18 1.14 3
GBP : USD 1.35 1.37 1.37 1.28 7
2018 3.4 USD : CHF 0.91 0.89 0.91 0.94 (3)
USD : KZT 435 421 427 414 3
2017 5.8
USD : ZAR 15.94 14.69 14.79 16.46 (10)

Financial review continued
Marketing activities Industrial activities Adjusted EBITDA/EBIT◊

Marketing delivered record results as the scale Industrial Adjusted EBITDA increased by 118% Adjusted EBITDA by business segment is as follows:
of commodity demand recovery, intersecting to $17,100 million (Adjusted EBIT was $10,800 2021 2020
with numerous primary supply and supply million, compared to $1,077 million in 2020).
chain shocks and constraints, resulted in Marketing Industrial Adjusted Marketing Industrial Adjusted Change
As noted above, the increase was primarily US$ million activities activities EBITDA activities activities EBITDA %
elevated levels of market volatility and rapidly driven by stronger average year-over-year
and materially changing underlying supply Metals and minerals 2,588 12,017 14,605 1,768 7,285 9,053 61
commodity prices, particularly related to our
and demand scenarios. This backdrop Energy products 1,829 5,603 7,432 2,053 1,039 3,092 140
copper, cobalt, ferrochrome, nickel and coal
provided overall supportive physical Corporate and other* (194) (520) (714) (89) (496) (585) 22
operations, driven by recovery of global
commodity marketing conditions, with Total 4,223 17,100 21,323 3,732 7,828 11,560 84
demand and various supply challenges, most
Adjusted EBITDA and EBIT increasing by 13%
notably seen across the energy spectrum
to $4,223 million and by 11% to $3,695 million, Adjusted EBIT by business segment is as follows:
respectively. Metals and minerals Adjusted (gas, coal and oil), impacting product
availability and cost. 2021 2020
EBIT was up 50% with nearly all departments Marketing Industrial Adjusted Marketing Industrial Adjusted Change
contributing double-digit % increases over US$ million activities activities EBIT activities activities EBIT %
the prior year. Energy products Adjusted EBIT Net finance costs
Metals and minerals 2,494 8,128 10,622 1,667 3,054 4,721 125
was down 21% over 2020, with a strong 2021 Net finance costs were $1,140 million during
coal result limiting the net overall reduction, Energy products 1,395 3,252 4,647 1,761 (1,365) 396 1,073
2021, a 22% decrease compared to $1,453
given oil’s lower contribution relative to the million in the comparable reporting period, Corporate and other* (194) (580) (774) (89) (612) (701) 10
prior year, wherein it capitalised on the due to lower average base rates (mainly US$ Total 3,695 10,800 14,495 3,339 1,077 4,416 228
exceptional price movements and Libor) and lower net funding levels year-over- * Corporate and other Marketing activities includes $473 million (2020: $211 million) of Glencore’s equity accounted share of Viterra.
dislocations across crude oil, refined products, year. Interest expense for 2021 was $1,348
storage and logistics. million, down 14% over 2020 and interest
Across 2021, agricultural markets also saw income was $208 million compared to $120
record prices for many commodities. On the million in the prior year. See note 6.
back of strong global demand and solid
production in most major origins, Viterra Income taxes
reported an EBITDA and Net Income of An income tax expense of $3,026 million was
approximately $2.2 billion and $1 billion recognised during 2021, compared to a credit
respectively. Accordingly, our 49.99% share of of $1,170 million in 2020. The effective tax rate
its net earnings (captured within Corporate is 63.6%, and when adjusting for significant
and Other) was $473 million (post-interest
items (primarily impairments, foreign
and tax) compared to $211 million in 2020.
exchange adjustments and tax losses not
Viterra paid Glencore a dividend of $150
recognised), the effective tax rate reduces to
million in H2 2021.
33.5% (29.7% in 2020).

Significant items – $1,640 million (2020: $113 million) relating Earnings

Significant items are items of income and to various legal matters, including the
A summary of the differences between reported Adjusted EBIT and income attributable to equity
expense, which, due to their nature and provision and related costs (legal, expert
holders, including significant items, is set out in the following table:
variable financial impact or the expected and compliance) for the ongoing
infrequency of the events giving rise to them, investigations (see notes 23 and 32). US$ million 2021 2020
are separated for internal reporting, and – $Nil (2020: $214 million) of closure and Adjusted EBIT◊ 14,495 4,416
analysis of Glencore’s results, to aid in severance costs. 2020 related primarily to Net finance and income tax expense in relevant material associates and joint (1,207) (580)
providing an understanding and comparative suspension of operations at Prodeco coal ventures1
basis of the underlying financial performance. in Colombia and the closure of the Aguilar Proportionate adjustment Volcan1 179 (46)
zinc mine in Argentina. Net finance costs (1,140) (1,453)
In 2021, Glencore recognised a net expense,
after tax and non-controlling interests, of • Impairments of $1,838 million (2020: $6,392
million), see note 7. The corresponding net
Income tax expense2
Non-controlling interests
(3,163)
(39)
(306)
454
$4,151 million (2020: $4,388 million) in Income attributable to equity holders of the Parent pre-significant items◊ 9,125 2,485
impact, after income taxes and non-controlling
significant items comprised of:
interests was $1,137 million (2020: $3,805 Earnings per share (Basic) pre-significant items (US$)3◊ 0.68 0.19
• Expenses of $11 million (2020: $92 million)
relating to Glencore’s share of significant
million). The 2021 charge primarily relates to:
– Koniambo ($1,170 million), due to lower Significant items◊
expenses recognised directly by our throughput and higher cost assumptions, Share of Associates’ significant items4 (11) (92)
associates. and the emergence of higher discounts
•
Movement in unrealised inter-segment profit elimination5 (549) (760)
Loss on disposals of non-current assets of on non-battery application nickel relative Net loss on disposals of non-current assets6 (607) (36)
$607 million (2020: $36 million) primarily to the LME benchmark, such having been Other expense – net7 (1,947) (173)
related to the required accounting recycling reassessed following failures at the power Impairments8 (1,838) (6,392)
to the statement of income of Mopani’s plant and a slag leak at the metallurgical Income tax credit2 137 1,476
non-controlling interests upon disposal (see plant over H1 2021. Non-controlling interests’ share of significant items9 664 1,589
note 26), net of gains recognised on disposal – HG Storage ($331 million) our 49% interest Total significant items (4,151) (4,388)
of other investments/operations of $208 in an oil storage and terminals business, Income/(loss) attributable to equity holders of the Parent 4,974 (1,903)
million and gains on disposal of property, following review of the carrying value
Earnings/(loss) per share (Basic) (US$)3 0.38 (0.14)
plant and equipment of $207 million. against valuations benchmarks.
• Income tax credit of $137 million (2020: credit
of $1,476 million) – see income taxes below.
– Net $98 million reversal of impairments
following an improvement in the
1 Refer to note 2 of the financial statements and to APMs section for reconciliations.
2 Refer to other reconciliations section for the allocation
•
of the total income tax expense between pre-significant and significant items.
Other income/(expense) – net expense of underlying financial condition of various 3 Based on weighted average number of shares, refer to note 18 of the financial statements.
4 Recognised within share of income from associates and joint ventures, see note 2 of the financial statements.
$1,947 million (2020: $173 million) see note 5. counterparties and the restructuring of 5 Recognised within cost of goods sold, see note 2 of the financial statements.
Balance primarily comprises: certain loans and physical advances. 6 Refer to note 4 of the financial statements and to APMs section for reconciliations.
7 Recognised within other income/(expense) – net, see note 5 of the financial statements and to APMs section for
– $64 million (2020: $438 million) of – $151 million relating to continued reconciliations.
mark-to-market gains on equity challenge and non-performance by 8 Refer to note 7 of the financial statements and to APMs section for reconciliations.
9 Recognised within non-controlling interests, refer to APMs section.
investments/derivative positions certain government authorities in
accounted for as held for trading, settling long outstanding VAT claims.
including the commodity price linked The 2020 impairment related primarily to the
deferred consideration related to the sale Mopani copper operations ($1,041 million), the
of Mototolo in 2018. Volcan zinc operations ($2,347 million), the
– $187 million net loss (2020: $192 million) of Prodeco coal operations ($835 million), the
net foreign exchange movements. Chad oil operations ($673 million) and the
Astron oil refinery ($480 million).
Statement of financial position Movements relating to current and non- Cash flow and net funding/debt
Current and non-current assets current borrowings are set out below in the Net funding
Total assets were $127,510 million as at 31 net funding and net debt movement
reconciliation and in note 21. US$ million 31.12.2021 31.12.2020
December 2021, compared to $118,000 million
Total borrowings as per financial statements 34,641 37,479
as at 31 December 2020. Current assets
increased from $43,212 million to $57,776 Equity Proportionate adjustment – net funding1 (563) (553)
million, due primarily to an increase in Total equity was $36,917 million as at 31 Cash and cash equivalents (3,241) (1,498)
marketing inventories and receivables, December 2021, compared to $34,402 million Net funding◊ 30,837 35,428
including margin calls paid in respect of the as at 31 December 2020, the movements
1 Refer to APMs section for definition and reconciliations.
Group’s hedging activities, owing mainly to being primarily the income for the year of
the significantly higher year-end commodity $4,349 million, including non-controlling Cash and non-cash movements in net funding
prices compared to prior-year (aluminium, interests and a modest increase in other
US$ million 2021 2020
copper, zinc, nickel and oil-Brent up 42%, 26%, comprehensive income noted below, offset
by shareholder distributions and buybacks Cash generated by operating activities before working capital changes, 16,725 8,568
32%, 26% and 50% respectively). Non-current interest and tax
assets decreased from $74,788 million to ($2,688 million) concluded during the year.
Proportionate adjustment – Adjusted EBITDA1 3,619 1,930
$69,734 million, primarily due to capital
expenditure over the period being below Other comprehensive income/(loss) Non-cash adjustments included within EBITDA – 15
depreciation and amortisation expense, $1,452 An income of $42 million was recognised during Net interest paid1 (853) (1,042)
million of impairments to property, plant and 2021, compared to a loss of $885 million in 2020 Tax paid1 (2,676) (1,189)
equipment and $1,321 million of asset values primarily relating to remeasurements on defined Dividends received from associates1 242 43
reclassified to held for sale (see note 16). benefit plans of $223 million, net of mark-to- Funds from operations◊ 17,057 8,325
market adjustments of $56 million with respect
Current and non-current liabilities
to various minority investments (see note 11) Net working capital changes2 (5,289) (4,318)
Total liabilities were $90,593 million as at 31 and exchange losses on translation of foreign Acquisition and disposal of subsidiaries – net2 252 (222)
December 2021, compared to $83,598 million operations of $87 million, primarily our South Purchase and sale of investments – net2 108 13
as at 31 December 2020. Current liabilities African ZAR-denominated subsidiaries.
increased from $39,441 million to $49,459 Purchase and sale of property, plant and equipment – net2 (3,802) (3,921)
million, primarily due to an increase in Net margin (payments)/receipts in respect of financing related hedging (970) 1,040
Cash and non-cash movements in net activities
accounts payable and fair value of our
funding
derivative hedging instruments (other financial Proceeds received/(paid) on acquisition of non-controlling interests in 10 (56)
The reconciliation in the table adjacent is the subsidiaries
liabilities), on account of the higher commodity
method by which management reviews Distributions paid and transactions of own shares – net (3,024) (127)
prices noted above and a provision for the
movements in net funding and net debt and
on-going investigations of $1,500 million (see Cash movement in net funding 4,342 734
comprises key movements in cash and any
note 5), offset by a decrease in current Change in lease obligations (915) (457)
significant non-cash items.
borrowings (see note 21). Non-current liabilities Foreign currency revaluation of borrowings and other non-cash items 1,164 (1,339)
decreased from $44,157 million to $41,134 Net funding as at 31 December 2021
Total movement in net funding 4,591 (1,062)
million, primarily due to a decrease of non- decreased by $4.6 billion to $30,837 million
current borrowings (see note 21). Net funding◊, beginning of the year (35,428) (34,366)
and net debt (net funding less readily
marketable inventories) decreased by $9.8 Net funding◊, end of year (30,837) (35,428)
billion to $6,042 million, as funds from Less: Readily marketable inventories2 24,795 19,584
operations of $17,057 million significantly Net debt◊, end of year (6,042) (15,844)
exceeded the $3,802 million of net capital
1 Refer to APMs section for definition and reconciliations.
2 Refer to Other reconciliations section.
expenditure and $3,024 million of distribution In March 2021, Glencore extended and Distributions
to shareholders, non-controlling interests and voluntarily cancelled a portion of its committed The Directors have recommended a 2021 Basis of presentation
purchase of own shares. revolving credit facilities, such that as at financial year base cash distribution of $0.26
The financial information in the Financial
31 December 2021, the facilities comprise: per share amounting to some $3.4 billion, Review and sections headed Our Marketing
Business and investment acquisitions accounting for own shares held as at 31 Business and Our Industrial Business is
– a $6,572 million one year revolving credit
and disposals December 2021. Payment will be effected as presented on a segmental measurement
facility with a one-year borrower's basis, including all references to revenue (see
Net inflows from business and investment a $0.13 per share distribution in May 2022 and note 2) and has been prepared on the basis as
term-out option (to May 2023);
disposals/acquisitions were $370 million over a $0.13 per share distribution in September outlined in note 1 of the financial statements,
– a $450 million medium-term revolving 2022 (in accordance with the Company’s with the exception of the accounting
the year, compared to an outflow of $265
credit facility (to May 2025); and announcement of the 2022 Distribution
treatment applied to relevant material
million in 2020. The net inflow comprises associates and joint ventures for which
disposals of a number of minority interest – a $4,200 million medium-term revolving timetable made on 15 February 2022). The Glencore’s attributable share of revenues and
investments, none of which were individually credit facility (to May 2026). Company will also conduct a buy-back of its expenses are presented. In addition, the
Peruvian listed Volcan, while a subsidiary of
material and proceeds from the sale of As at 31 December 2021, Glencore had available own shares to the value of up to $550 million, the Group, is accounted for using the equity
Chemoil Terminals (oil storage facilities in the committed liquidity amounting to $10.3 billion. with intended completion by the time of the method for internal reporting and analysis due
Group’s interim results announcement in to the relatively low economic interest (23%)
US) for $248 million (see note 26). The net held by the Group.
outflow in 2020 was primarily cash Credit ratings August 2022.
derecognised upon disposal of Minera The Group’s results are presented on an
In light of the Group’s extensive funding The cash distribution is to be effected as a “adjusted” basis, using alternative
Alumbera, the acquisition of a 30% interest in performance measures (APMs) which are not
activities, maintaining investment grade credit reduction of the capital contribution reserves
PT CITA Mineral Investindo Tbk and the defined or specified under the requirements
rating status is a financial priority. The Group’s of the Company. As such, this distribution of IFRS, but are derived from the financial
acquisition of the remaining 0.5% minority
credit ratings are currently Baa1 (stable) from would be exempt from Swiss withholding tax. statements, prepared in accordance with IFRS,
interest held in Katanga Mining Limited. reflecting how Glencore’s management
Moody’s and BBB+ (stable) from Standard & As at 31 December 2021, Glencore plc had CHF
assesses the performance of the Group. The
Liquidity and funding activities Poor’s. Glencore’s publicly stated objective, as 25 billion of such capital contribution reserves APMs are provided in addition to IFRS
In 2021, the following significant financing part of its overall financial policy package, is to in its statutory accounts. The distribution is measures to aid in the comparability of
seek and maintain strong Baa/BBB credit subject to shareholders’ approval at information between reporting periods and
activities took place: segments and to aid in the understanding of
•
ratings from Moody’s and Standard & Poor’s Glencore’s AGM on 28 April 2022. the activities taking place across the Group by
In February 2021, issued: respectively. In support thereof, Glencore adjusting for Significant items and by
– 5 year $475 million, 4.375% coupon bond targets a maximum 2x Net debt/Adjusted The distribution is ordinarily paid in US dollars. aggregating or disaggregating (notably in the
(Volcan) EBITDA ratio through the cycle, augmented Shareholders on the Jersey register may elect case of relevant material associates and joint
•
ventures accounted for on an equity basis)
by a Net debt cap objective of c.$10 billion. to receive the distribution in sterling, euros or
In March 2021, issued: certain IFRS measures. APMs are also used to
Swiss francs, the exchange rates of which will approximate the underlying operating cash
– 8 year EUR600 million, 0.75% coupon bond be determined by reference to the rates flow generation of the operations (Adjusted
– 12 year EUR500 million, 1.25% coupon bond EBITDA). Significant items (see reconciliation
•
applicable to the US dollar at the time. above) are items of income and expense,
In April 2021, issued: Shareholder returns Shareholders on the Johannesburg register which, due to their nature and variable
(US$ billion) will receive their distribution in South African financial impact or the expected infrequency
– 5 year $600 million, 1.625% coupon bond
15.8 of the events giving rise to them, are
– 10 year $600 million, 2.85% coupon bond Net debt at 31.12.2020 rand. Further details on distribution separated for internal reporting and analysis of
– 30 year $500 million, 3.875% coupon bond payments, together with currency election Glencore’s results, to aid in providing an
•
(9.8) Net reduction in 2021
and distribution mandate forms, are available understanding and comparative basis of the
In September 2021, issued: underlying financial performance.
6.0 Net debt at 31.12.2021 from the Group’s website (www.glencore.
– 7 year CHF150 million, 0.5% coupon bond com) or from the Company’s Registrars. Alternative performance measures are
– 10 year $750 million, 2.625% coupon bond 4.0 Capacity for shareholder returns denoted by the symbol ◊ and are further
defined and reconciled to the underlying IFRS
– 30 year $500 million, 3.375% coupon bond measures in the APMs section on page 234.
10.0 Optimal net debt

Our Marketing
business Arbitrage opportunities Geographic Arbitrage
Many of the physical commodity markets
We responsibly source the in which we operate are fragmented Disparity
or periodically volatile. This can result Different prices for the same product
commodities that advance everyday in arbitrage: price discrepancies between in different geographic regions, taking
life – this means moving them from the prices for the same commodities in into account transportation and
where they are plentiful to where different geographic locations or time periods. transaction costs.
they are needed Other factors with arbitrage opportunities
include freight and product quality. Execution
Market insight and customer Leverage global relationships
understanding and production, processing and logistical
capabilities to source product in one
Our global scale and presence in more than
location and deliver in another.
60 commodities across 35 countries gives us
extensive market knowledge and insight
to help us fully understand the needs of Product Arbitrage Time Arbitrage
our customers.
Anticipating supply and demand Disparity Disparity

Our strategy seeks to maximise value through Pricing differences between blends, Different prices for a commodity
our integrated marketing and industrial grades or types of commodity, taking depending on whether delivery
businesses working side-by-side to give us into account processing and is immediate or at a future date, taking
presence across the entire supply chain, substitution costs. into account storage and financing costs.
delivering in-depth knowledge of physical
market supply and demand dynamics and Execution Execution
an ability to rapidly adjust to market Ensure optionality with commodity supply Book ‘carry trades’ that benefit from
conditions. contracts, and look to lock-in profitable competitive sources of storage, insurance
price differentials through blending, and financing.
Creating opportunities processing or end-product substitution.
The significant scale of both our own
production and the volumes secured from
third parties allows us to create margin
opportunities from our ability to supply the
exact commodities the market needs through
processing and/or blending and optimisation
of qualities.
Generating returns
We generate returns as a fee-like income from
distribution of physical commodities and
arbitrage, including blending and other
optimisation opportunities. Our use of
hedging instruments results in profitability
being largely determined by these activities
rather than by absolute price movements.
Market review
and outlook
Highlights Financial overview
Commodity markets generally performed Metals and Energy Corporate Metals and Energy Corporate
well throughout the year, bolstered by a US$ million minerals products and other1 2021 minerals products and other1 2020
widespread economic recovery, following the Revenue 74,727 107,037 – 181,764 54,847 69,290 – 124,137
pandemic’s severe economic impacts in 2020, Adjusted EBITDA◊ 2,588 1,829 (194) 4,223 1,768 2,053 (89) 3,732
characterised by the imposition of lengthy
Adjusted EBIT◊ 2,494 1,395 (194) 3,695 1,667 1,761 (89) 3,339
lockdowns. In the context of resurgent
industrial demand and generally low Adjusted EBITDA margin 3.5% 1.7% n.m. 2.3% 3.2% 3.0% n.m. 3.0%
inventory balances, any supply-side issues 1 Corporate and other Marketing activities includes $473 million (2020: $211 million) of Glencore’s equity accounted share of Viterra.
(from primary production and supply chain)
exacerbated the market tightness. The energy Selected marketing volumes sold
supply shortages and price increases that
Units 2021 2020 Change %
intensified in H2 2021 not only required careful
risk (market and counterparty) management Copper metal and concentrates1 mt 3.1 3.4 (9)
by our energy marketing units, but also had Zinc metal and concentrates1 mt 2.7 2.8 (4)
profound indirect impacts on metals Lead metal and concentrates1 mt 1.1 1.0 10
marketing, as smelters globally faced higher Gold moz 1.8 2.0 (10)
energy costs and/or limitations on energy use. Silver moz 65.5 64.9 1
Overall market volatilities, measured both in
Nickel kt 202 149 36
relation to primary commodity prices and
Ferroalloys (including agency) mt 9.3 8.5 9
their associated pricing adjustments, such as
premiums, refining margins, quality Alumina/aluminium mt 8.9 7.2 24
adjustments etc, were extremely elevated Iron ore mt 49.9 57.6 (13)
during 2021. Thermal coal2 mt 67.7 67.1 1
Metallurgical coal2 mt 4.6 1.3 254
In this context, Marketing performed strongly
across all major commodity groups. Crude oil mbbl 706 791 (11)
Marketing Adjusted EBIT was $3,695 million, Oil products mbbl 704 738 (5)
up 11% over the prior period. Metals and
1 Estimated metal unit contained.
minerals Adjusted EBIT increased by 50% to 2 Includes agency volumes.
$2,494 million, while Energy Products was
down 21% on an outsized 2020 result to $1,395
million. Our 49.9% interest in the Viterra
agricultural products business recorded
earnings of $473 million, on a share of net
income basis.

Market review and outlook

continued
Copper Cobalt
LME copper ($/t) MB cobalt ($/lb)
12,000 Spot smelter treatment and refining charges, 40 There is mounting EV investment and adoption.
the fee paid by mines to smelters, reached 35 The Chinese and European EV sales markets
10,000 multi-year lows in 2021, as competition for have developed strongly, while the North
30
available concentrates increased. The 2022 American market is emerging as a major EV
8,000 25
benchmark level, however, increased year- growth region with key manufacturers deploying
over-year, following six years of steady tens of billions of dollars in investment. The
6,000 20
declines, reflecting the market’s anticipation diminishing cobalt per kWh requirement
4,000 of concentrate mine supply growth. 15 through R&D gains is being outstripped by the
10 rate of EV sales growth, underpinning strong
Looking forward, we expect mine supply
2,000 cobalt demand.
growth to be constrained by ageing assets, 5
declining ore grades, a diminished project Various cobalt supply projects are due to
0 pipeline and the measures taken to contain 0 commission over the coming years, however
2019 2020 2021 2019 2020 2021
the spread of Covid-19, with various new elevated execution risk is likely to temper the rate
Starting the year below $8,000/t, copper projects likely to experience delays. In the 2021 started strongly from a demand and at which new cobalt units are available, while
prices set a record high of $10,748/t in May, near term, we expect global demand to pricing perspective, with positive momentum incumbent production may also be impacted by
basis improved physical demand conditions, remain strong, with steady growth rates in Chinese and European EV demand and a continued logistical challenges. As a result, the
continued financial stimulus and high longer term, driven by population growth and level of stockpiling key strategic materials, cobalt market fundamental outlook remains
speculative positioning. Global copper rising living standards in emerging particularly in China. Commencing 2021 at robust.
demand remained strong during H2, economies. Climate change policies will also $15.30/lb, prices rallied 65% through Q1 to
particularly in North America and Europe be a key driver for copper growth sectors, reach a H1 high of $25.30/lb. Prices then
where consumption had recovered to given its crucial role in accelerating the clean cooled off somewhat before a strong recovery
pre-Covid levels. Mine supply growth in 2021, energy transition, from renewable power in H2 saw the year-end price at $33.50/lb.
however, was nominal, given the challenges generation and distribution, to energy storage While the EV sector has been the main
faced in returning to pre-Covid operating and electric vehicles (EVs). demand catalyst for cobalt, a number of
rates. Against this backdrop, refined copper metal demand segments exhibited post-
inventories reached multi-year lows in H2 Covid recovery.
2021, with exchange inventories drawing to
The cobalt hydroxide supply bottlenecks
their lowest levels since 2008. Cathode
witnessed during H2 2020 eased in early 2021,
premiums moved to their highest levels in five
but stronger lithium-ion battery demand
years, while LME cash copper traded at a
from both EV and non-EV applications (e.g.
premium to the three-month price, with a
phones) resulted in hydroxide payables
difference of over $1,000/t in October. During
marking a high of 94% early in the year, with
2021, net imports of refined copper to the USA
major producers having limited spot
were at levels not seen in more than 10 years.
availability. Payables averaged 90% during H1
and remained within a stable band of
c.88-90% for H2.


continued
Zinc Nickel
LME zinc ($/t) LME nickel ($/t)
4,500 Mine supply ex-China is estimated to have 25,000 Nickel demand from alloys and specialty
4,000 grown c.0.5mt–0.6mt, missing higher steels continued to gradually recover towards
3,500 predictions earlier in the year. The 20,000 pre-pandemic levels. Despite signs of
continuation in mine disruptions eroded recovery, commercial aerospace remains
3,000 concentrates spot TCs, which dropped by challenged by travel restrictions and lack of
15,000
2,500 c.$100/dmt to $78/dmt on average in 2021. forward visibility, further delaying the
2,000 recovery in the superalloys segment.
The energy price environment in Europe, 10,000
1,500 where c.2.3mt p.a. of zinc metal is produced EV sales grew strongly, despite a global
(c.17% of global supply), poses risk of further slowdown in total automotive sales amid a
1,000 5,000
metal production cutbacks in the region. shortage of parts and semiconductors.
500 Should these materialise, both zinc price and Automakers have broadly committed to
0 premiums could rise as there is no SRB 0 electric mobility and are actively sourcing
2019 2020 2021 2019 2020 2021
parallel in the EU/US to ease the market. battery cells and raw materials. Stringent ESG
The zinc market recorded a deficit in 2021, Primary nickel consumption rebounded requirements throughout the EV supply chain
Looking ahead into 2022, refined zinc
driven by strong recovery in global demand sharply in 2021 (+17.5%), driven by record levels have resulted in a preference for high-grade
consumption is expected to increase, albeit
(+6%), combined with production disruptions of stainless steel production in China and nickel with a low carbon footprint.
not matching the percentage increase in 2021.
and supply chain bottlenecks. Zinc price, Indonesia and accelerating growth in the
There are risks to demand, including any
metal premiums, market backwardation, battery sector. The nickel market was in a
Chinese construction slowdown and/or
concentrates spot TCs and metal exchange substantial deficit in H1 2021, which narrowed
power-related demand destruction in Europe,
inventory levels all signalled tight market in H2 as Indonesian nickel production
however, there is upside from the potential
conditions at year end. continued to ramp up. Nickel stocks in LME
comeback of the automotive sector as
warehouses fell by 60% in 2021.
Average zinc prices increased 32% from semiconductor shortages recede.
$2,269/t in 2020 to $3,005/t in 2021, closing the Bottlenecks in logistics are expected to Stainless steel production in China,
year at around $3,600/t. Metal premiums were continue in the short and medium-term, accounting for more than half of global
particularly strong outside China (Q4 2021: creating regional differences. primary demand, reached historic highs
USA >$300/mt and EU c.$250/mt). At the driven by strong global demand. Also, in a
Regional differences and supply disruptions
same time, China required a significant policy change aimed at reducing pollution
were also evident in the lead market. LME
amount of metal, with China’s State Reserves and carbon emissions, the Chinese
stocks reduced c.60% since December 2020
Bureau (SRB) releasing 180kt in 2021. At government eliminated tax incentives on
and the average price increased by 20%
year-end, stocks remained at low levels, both stainless steel exports and initiated a tax
year-over-year to $2,204/t.
in visible metal (~350kt or c.10 days of global removal on imports. The resulting increase in
consumption) and concentrates (only c.4 days Indonesian production was particularly
above typical smelter requirements of 30 pronounced, while in other regions, stainless
days). steel production also reached multi-year
highs.


continued
Ferroalloys Iron ore Aluminium

MB ferrochrome (c/lb) Platts iron ore ($/t) LME aluminium ($/t)
160 300 3,500 Supported by physical tightness, Chinese
140 3,000 imports and high logistics costs, premiums
250
across the Americas, Asia and Europe
120 2,500 increased significantly during 2021. The
200
100 Midwest premium rose to an all-time-high of
2,000 35.4c/lb, ending the year at 30c/lb, while the
80 150
1,500 Main Japanese Port premium finished the
60 100 year at $170/t, up from $125/t at the beginning
1,000 of the year.
40
50 Alumina prices in H1 2021 underperformed
20 500
aluminium prices, which supported smelting
0 0 0
2019 2020 2021 2019 2020 2021 2019 2020 2021 margins. A fire at the Jamalco refinery in
August and Chinese energy and emission
Ferrochrome supply from South Africa, India Iron ore prices were extremely volatile The aluminium market continued its strong policies led to price increases during H2, with
and Europe recovered to pre-pandemic levels, throughout the year, driven by shifting policy recovery from the initial Covid-19 shock, ex-China FOB Australia alumina prices
resulting in global production growth of 15% initiatives and supply/demand rebalancing. backed by strong fundamentals, including a increasing by c.60% in less than two months
year-on-year. This supply growth was met by a Global resumption of construction activities supply deficit. The price environment was to peak at c.$480/t before closing the year at
strong increase in global stainless steel melt and Chinese mills’ post winter restocking saw volatile, as a surge in demand during H1 2021 c.$345/t.
rates, with Indonesian stainless steel strong demand in H1 2021, supported by was followed by rising energy costs first in
The global bauxite market continued to be
production increasing by 87% year-on-year to positive steel margins, with iron ore prices China (Q2-Q3 2021) and then Europe during
well-supplied. The military coup in Guinea in
5mt, becoming the world’s second largest reaching 10-year highs in June. Chinese steel Q4 2021. Chinese imports of primary
September raised concerns around supply-
producer. production cuts, instituted in large part to aluminium reached record levels, leading to a
side risks, but these had largely eased by the
achieve annual environmental goals, led to a price rise on the LME, peaking at a decade-
Vanadium demand recovered to pre- end of the year, given alternative sources of
demand decrease in H2 while seaborne high of $3,229/t in mid-October. Prices
pandemic levels with stronger carbon steel supply.
supply improved. Iron ore quickly became retreated after China’s timely and effective
markets absorbing excess inventory. The
over-supplied, resulting in a significant price coal reform, with the rally resuming towards
aerospace demand sector remained weak as
correction. year-end, mainly due to the European power
previously noted.
crisis and subsequent smelter shutdowns.


continued
Coal Oil
FOB coal ($/t) Brent crude oil ($/bbl)
450 2021 saw record high average thermal coal 100 prices impacted throughout the energy chain.
gCNewc Aust HCC
400 prices for gCNewc ($137) and API4 ($125). API2 90 The European TTF natural gas benchmark
350 averaged $120/t, marginally below 2011. Coal 80 price jumped more than 300% to over
prices peaked during October which was also 70 EUR100/MWh and shortages of natural gas,
300
a high point for LNG, as consumers looked to 60 LNG and coal caused some utilities and major
250 restock ahead of the winter period. GCNewc, industrial users to switch to oil as a source of
50
200 API4 and API2 monthly prices peaked at power.
258%, 232% and 341% respectively above 40
150 The oil price forward curve structure
January’s price levels, before closing the year 30
100 remained in varying degrees of
at $170/t (198%), $136/t (150%) and $137/t 20
50 backwardation throughout the year. This
(202%) respectively. 10
steepened considerably during H2 as the
0 0
2019 2020 2021 Although Chinese seaborne coking coal 2019 2020 2021 energy crisis took hold and global inventories
demand declined by 15mt during 2021, Japan, dropped below the closely tracked five-year
Strong demand driven by economic recovery India, Europe and Brazil saw increased 2021 marked another year of elevated volatility range levels.
and constrained supply chains beset by seaborne demand, as record global steel as the recovery from Covid-19 drove strong
Refining margins in all regions continued to
weather, geological and mining incidents prices supported improved blast furnace underlying demand growth for oil and gas.
improve during 2021, largely driven by the
resulted in a substantial draw on coal stocks capacity utilisation. Together with a number Prices were further supported by favourable
recovery in transportation fuel markets as
and record high coal prices. of temporary mine closures, the net overall financial markets and fiscal conditions.
mobility restrictions eased and refined
increase in global seaborne coking coal Further outbreaks of Covid-19 related strains
Global seaborne thermal coal demand rose by product inventories needed to be restocked.
demand, led spot HCC prices higher from in Q3 (Delta) and in Q4 (Omicron) threatened
c.43mt (5%) during 2021. Chinese seaborne Other factors were Hurricane Ida disrupting
$124/t during January to a peak of $398/t in the trajectory of oil demand recovery,
demand increased by 64mt with supply from refining operations in the US, elevated natural
October before moderating to close at $342/t however such concerns proved short-lived,
Australia falling from 31mt to zero as gas input costs in H2 2021 and China curbing
in December, 175% above January price levels. with Brent closing the year at $78 per barrel.
Australian coal restrictions persisted. The bulk oil product exports as part of its reforms to
The rising oil price through the year also
of the 95mt swing in trade flows to China was Forward gas prices are at relatively high levels, reduce carbon emissions and protect
prompted some releases of strategic
supplied by Indonesia (+71mt) and Russia with thermal coal remaining the lowest cost domestic supplies.
petroleum reserves, led by the USA. This was
(+15mt). High gas prices supported increased baseload fuel for power generation in all
absorbed by the market and did little to halt In shipping, tanker freight markets remained
thermal coal demand in Europe (+11mt), Korea major seaborne markets. Weather-related
the price trajectory. depressed for most of the year. Whilst they
(+5mt) and Taiwan (+4mt). supply impacts in Australia during December
lifted in Q4, particularly in the ‘clean’ refined
2021 resulted in production and export In Q3, European and UK energy markets came
products segment, market expectations of a
shortfalls, which together with Indonesia’s under severe pressure due to a multitude of
year-end upward momentum failed to
temporary ban on coal exports, substantially factors including low output from renewable
materialise.
limited spot coal availability in early 2022. energy sources during the summer and
low-running gas inventories heading into
winter. This was the catalyst for further
disruption in global energy markets, with

Our Industrial Production highlights Metals and minerals

business (own sourced) mining margin◊
We are a major producer of

commodities that support the
energy and mobility transition,
including copper, cobalt, nickel
and zinc, while our high-quality
Copper
(kt)
2021 1,195.7
45%
2020: 36%
Resurgent demand in major
coal provides affordable and industrial sectors
reliable energy 2020 1,258.1
2019 1,371.2 Energy products margin◊
Industrial activities
Adjusted EBITDA◊
(US$ billion)
Zinc
(kt)
2021 1,117.8
2021 47%
2020: 17%
2021 Volatility in energy markets
2021 17.1 20% precipitated demand for coal
2020 1,170.4
2020 7.8 ● Copper
2019 20% 32%
1,077.5 37%
Adjusted Zinc
EBITDA
● ◊
weighting
39% ● Coal
2019 9.0
7% ● Copper ● Other industrial
32% 202037% ● Zinc activities
39% ● Coal ● Marketing
Industrial activities capex Coal
7% ● Other industrial
2021
2020
10% activities
(US$ billion) (mt) ● Marketing
19%
2021 4.4
4.4 2021 103.3
24%
10% 12% 20%
2020 4.14.1 2020 19%

106.2 ● Copper
24% 32% 37% ● Zinc
39% Coal
12% ●
2019 5.3 5.3 2019 139.5 7% ● Other industrial
2020 activities
● Marketing
10%
19%
24%
12%

Our Industrial business Metals

and Energy Corporate Metals and Energy Corporate
continued US$ million minerals products and other 2021 minerals products and other 2020
Revenue◊ 41,535 19,269 6 60,810 30,303 11,145 5 41,453
Adjusted EBITDA◊ 12,017 5,603 (520) 17,100 7,285 1,039 (496) 7,828
Adjusted EBIT◊ 8,128 3,252 (580) 10,800 3,054 (1,365) (612) 1,077
Highlights
Adjusted EBITDA mining margin 45% 47% 44% 36% 17% 29%
Industrial Adjusted EBITDA increased by 118%
to a record $17,100 million compared to the Production from own sources – Total1
$7,828 million in 2020. The increase was
2021 2020 Change %
primarily driven by higher commodity prices,
offset by higher costs (mainly energy) and the Copper kt 1,195.7 1,258.1 (5)
effects of a weaker US dollar (on average) Cobalt kt 31.3 27.4 14
against many of our key producer country Zinc kt 1,117.8 1,170.4 (4)
currencies. Lead kt 222.3 259.4 (14)
Adjusted EBITDA contribution from metals Nickel kt 102.3 110.2 (7)
and minerals assets was $12,017 million, up Gold koz 809 916 (12)
65% compared to the prior year, with Silver koz 31,519 32,766 (4)
substantial improvements across most Ferrochrome kt 1,468 1,029 43
operations, owing to higher average
commodity prices over the year. Noteworthy
Coal – coking mt 9.1 7.6 20
were the increased contributions from the
African copper assets (up $1,462 million), Coal – semi-soft mt 4.5 4.6 (2)
aided by higher cobalt production, Collahuasi Coal – thermal mt 89.7 94.0 (5)
(up $832 million) and the Ferroalloys assets Coal mt 103.3 106.2 (3)
(total contribution of $809 million, up 508%
over prior year) owing to higher prices and Oil (entitlement interest basis) kboe 5,274 3,944 34
recovery of production, following South
1 C
ontrolled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the Group’s
Africa’s national Covid lockdown in 2020. attributable share of production is included.
The Mount Isa copper mine, smelter and

Townsville copper refinery were transferred
for management purposes from the Copper Reflecting the above, Adjusted EBITDA
department to the Zinc department, to be mining margins were 45% (2020: 36%) in our
managed as an overall Mount Isa polymetallic metals operations and 47% (2020: 17%) in
integrated complex. our energy operations.
Adjusted EBITDA contribution from Energy Capex of $4,423 million (2020: $4,082
products assets was $5,603 million, up 439% million) was 8% higher year over year
compared to 2020, mainly due to the reflecting a normalisation of sustaining
significant increase in average realised export activities, following delays/deferrals in the
thermal and coking coal prices year over year prior year, brought on by many severe
and to a lesser extent, higher oil and gas pandemic-related restrictions.
prices.

Our Industrial business Financial information 2021

continued Adjusted
EBITDA Depreciation Capital expenditure
2021 Adjusted mining and Adjusted
1 Represents the Group’s share of these JVs. US$ million Revenue◊ EBITDA◊ margin3,4◊ amortisation EBIT◊ Sustaining Expansionary Total
2 Mount Isa copper operations (including Townsville) Copper assets
previously recorded under copper department Africa 4,256 2,174 51% (504) 1,670 258 42 300
moved to zinc department. Prior year was restated
accordingly. Collahuasi1 2,599 2,133 82% (287) 1,846 292 95 387
3 Adjusted EBITDA mining margin for Metals and Antamina1 1,791 1,416 79% (311) 1,105 287 9 296
Minerals is Adjusted EBITDA excluding non-mining Other South America 2,494 1,400 56% (515) 885 658 26 684
assets as described below ($11,422 million (2020: Australia2 889 477 54% (125) 352 81 – 81
$6,448 million)) divided by Revenue excluding
non-mining assets and intergroup revenue Polymet – (13) – (13) 7 – 7
elimination ($ 25,609 million (2020: $18,139 million) i.e. Custom metallurgical 10,186 325 (159) 166 164 – 164
the weighted average EBITDA margin of the mining Intergroup revenue elimination (249) – – – – – –
assets. Non-mining assets are the Copper custom
metallurgical assets, Zinc European custom
Copper 21,966 7,912 63% (1,901) 6,011 1,747 172 1,919
metallurgical assets, Zinc North America (principally
smelting/ processing), the Aluminium/Alumina Zinc assets
group and Volcan (equity accounted with no relevant
revenue) as noted in the table above.
Kazzinc 3,501 1,103 32% (437) 666 252 90 342
4 E
nergy products EBITDA margin is Adjusted EBITDA Australia2 4,246 946 22% (566) 380 281 2 283
for coal and Oil E&P (but excluding Oil refining) European custom metallurgical 4,035 71 (132) (61) 89 87 176
($5,455 million (2020: $1,144 million)), divided by the North America 1,964 281 (129) 152 33 2 35
sum of coal revenue from own production and Oil
Volcan – 9 – 9 – – –
E&P revenue ($11,504 million (2020: $6,647 million)).
Other Zinc 524 111 21% (102) 9 48 – 48
Intergroup revenue elimination (10) – – – – – –
Zinc 14,260 2,521 26% (1,366) 1,155 703 181 884
Nickel assets
Integrated Nickel Operations 1,811 836 46% (396) 440 258 312 570
Australia 763 196 26% (29) 167 51 – 51
Koniambo 242 (164) (68%) (81) (245) 16 – 16
Nickel 2,816 868 31% (506) 362 325 312 637
Ferroalloys 2,493 809 32% (115) 694 104 24 128

Aluminium/Alumina – (91) (1) (92) 5 – 5
Iron ore – (2) – (2) – – –
Metals and minerals 41,535 12,017 45% (3,889) 8,128 2,884 689 3,573
Coking Australia 1,975 959 49% (229) 730 132 8 140

Thermal Australia 6,976 3,270 47% (1,398) 1,872 279 146 425
Thermal South Africa 1,488 563 38% (438) 125 126 3 129
Prodeco – (18) (11) (29) – – –
Cerrejón1 772 452 59% (89) 363 30 – 30
Coal revenue (own production) 11,211 5,226 47% (2,165) 3,061 567 157 724
Coal other revenue (buy-in coal) 865 – – – – – –
Oil E&P assets 294 229 78% (110) 119 35 – 35
Oil refining assets 6,899 148 (76) 72 60 – 60
Energy products 19,269 5,603 47% (2,351) 3,252 662 157 819
Corporate and other 6 (520) (60) (580) – 31 31

Industrial activities 60,810 17,100 44% (6,300) 10,800 3,546 877 4,423

Our Industrial business Financial information 2020

continued Adjusted
EBITDA Depreciation Capital expenditure
2020 Adjusted mining and Adjusted
1 R
epresents the Group’s share of these JVs. US$ million Revenue◊ EBITDA◊ margin3,4◊ amortisation EBIT◊ Sustaining Expansionary Total
2 Mount Isa copper operations (including Townsville) Copper assets
previously recorded under copper department Africa 3,105 712 23% (564) 148 220 196 416
moved to zinc department. Prior year was restated
accordingly. Collahuasi1 1,732 1,301 75% (290) 1,011 287 44 331
3 Adjusted EBITDA mining margin for Metals and Antamina1 1,055 755 72% (283) 472 180 10 190
Minerals is Adjusted EBITDA excluding non-mining Other South America 2,025 1,042 51% (524) 518 309 12 321
assets as described below ($11,422 million (2020: Australia2 714 317 44% (142) 175 87 – 87
$6,448 million)) divided by Revenue excluding
non-mining assets and intergroup revenue Polymet n.a. (20) – (20) 8 – 8
elimination ($ 25,609 million (2020: $18,139 million) i.e. Custom metallurgical 7,842 336 (174) 162 144 – 144
the weighted average EBITDA margin of the mining Intergroup revenue elimination (308) – – – – – –
assets. Non-mining assets are the Copper custom
metallurgical assets, Zinc European custom
Copper 16,165 4,443 48% (1,977) 2,466 1,235 262 1,497
metallurgical assets, Zinc North America (principally
smelting/ processing), the Aluminium/Alumina Zinc assets
group and Volcan (equity accounted with no relevant
revenue) as noted in the table above.
Kazzinc 3,031 1,228 41% (404) 824 201 193 394
4 Energy products EBITDA margin is Adjusted EBITDA Australia2 2,493 452 18% (611) (159) 294 – 294
for coal and Oil E&P (but excluding Oil refining) European custom metallurgical 2,883 327 (146) 181 80 25 105
($5,455 million (2020: $1,144 million)), divided by the North America 1,746 240 (166) 74 52 – 52
sum of coal revenue from own production and Oil
Volcan – (33) – (33) – – –
E&P revenue ($11,504 million (2020: $6,647 million)).
Other Zinc 317 (21) (7%) (271) (292) 47 – 47
Intergroup revenue elimination – – – – – – –
Zinc 10,470 2,193 28% (1,598) 595 674 218 892
Nickel assets
Integrated Nickel Operations 1,461 670 46% (435) 235 142 306 448
Australia 646 117 18% (25) 92 33 – 33
Koniambo 239 (196) (82%) (102) (298) 38 – 38
Nickel 2,346 591 25% (562) 29 213 306 519
Ferroalloys 1,321 133 10% (94) 39 87 28 115

Aluminium/Alumina 1 (73) – (73) – – –
Iron ore – (2) – (2) – – –
Metals and minerals 30,303 7,285 36% (4,231) 3,054 2,209 814 3,023
Coking Australia5 971 244 25% (245) (1) 138 39 178

Thermal Australia5 4,031 799 20% (1,327) (528) 256 113 368
Thermal South Africa 969 183 19% (347) (164) 147 28 175
Prodeco 357 (72) (61) (133) 44 – 44
Cerrejón1 208 5 2% (110) (105) 22 – 22
Coal revenue (own production) 6,536 1,159 18% (2,090) (931) 607 180 787
Coal other revenue (buy-in coal) 400 – – – – – –
Oil E&P assets 111 (15) (14%) (172) (187) 119 – 119
Oil refining assets 4,098 (105) (142 (247) 125 – 125
Energy products 11,145 1,039 17% (2,404) (1,365) 851 180 1,031
Corporate and other 5 (496) (116) (612) – 28 28

Industrial activities 41,453 7,828 29% (6,751) (1,077) 3,060 1,022 4,082

Our Industrial business

continued
Operating highlights Antamina Production from own sources – Copper assets1

Copper assets Attributable copper production of 150,000 2021 2020 Change %
Own sourced copper production of 1,195,700 tonnes and zinc production of 153,700 tonnes African Copper (Katanga, Mutanda, Mopani)
tonnes was 62,400 tonnes (5%) lower than was respectively 22,300 tonnes (17%) and
Copper metal kt 277.2 301.0 (8)
2020, mainly due to the Mopani disposal 11,300 tonnes (8%) higher than 2020 reflecting
Cobalt2 kt 27.7 23.9 16
(23,800 tonnes), expected lower copper Covid-relating mining suspensions in the
base period. Collahuasi3
grades at Antapaccay (14,800 tonnes) and
lower copper by-products from our mature Copper in concentrates kt 277.2 276.8 –
Other South America
zinc and nickel mines (26,600 tonnes). Silver in concentrates koz 4,219 3,961 7
Own sourced copper production of 235,200
Gold in concentrates koz 45 53 (15)
Own sourced cobalt production of 31,300 tonnes was 24,600 tonnes (9%) lower than
2020, reflecting expected lower copper Antamina4
tonnes was 3,900 tonnes (14%) higher than
2020 due to the limited restart of production grades at Antapaccay and temporarily Copper in concentrates kt 150.0 127.7 17
at Mutanda in 2021. reduced production at Lomas Bayas due to Zinc in concentrates kt 153.7 142.4 8
short-term leach pad issues, now rectified. Silver in concentrates koz 6,135 5,535 11
African Copper
Australia Other South America (Antapaccay, Lomas Bayas)
Own sourced copper production of 277,200
tonnes was 23,800 tonnes (8%) lower than Own sourced copper production of 85,300 Copper metal kt 64.3 74.1 (13)
2020, mainly reflecting the disposal of Mopani. tonnes was 10,100 tonnes (11%) lower than Copper in concentrates kt 170.8 185.6 (8)
The contribution from Mutanda’s limited 2020 due to expected changes in mine Gold in concentrates and in doré koz 90 90 –
restart was largely offset by the impact of sequencing at Ernest Henry and additional Silver in concentrates and in doré koz 1,382 1,298 6
intermittent power outages at Katanga. mine development at Cobar.
Australia (Ernest Henry, Cobar)5
Own sourced cobalt production of 27,700 Copper metal kt 44.8 49.2 (9)
Custom metallurgical assets
tonnes was 3,800 tonnes (16%) higher than Copper in concentrates kt 40.5 46.2 (12)
Copper cathode production of 490,600
2020, reflecting Mutanda’s restart. Gold koz 64 93 (31)
tonnes was in line with 2020.
Collahuasi Silver koz 654 714 (8)
Copper anode production of 454,000 tonnes
Attributable copper production of 277,200 Total Copper department
was 36,100 tonnes (7%) lower than 2020,
tonnes was in line with 2020. Copper kt 1,024.8 1,060.6 (3)
mainly reflecting scheduled maintenance at
Altonorte in July 2021. Cobalt kt 27.7 23.9 16
Zinc kt 153.7 142.4 8
Gold koz 199 236 (16)
Silver koz 12,390 11,508 8
Total production – Custom metallurgical assets1

2021 2020 Change %
Copper (Altonorte, Pasar, Horne, CCR)
Copper metal kt 490.6 482.6 2
Copper anode kt 454.0 490.1 (7)


continued
Zinc assets Australia Production from own sources – Zinc assets1

Own sourced zinc production of 1,117,800 Zinc production of 609,400 tonnes was 24,100 2021 2020 Change %
tonnes was 52,600 tonnes (4%) lower than tonnes (4%) lower than 2020, mainly reflecting Kazzinc
2020, mainly reflecting: (i) the expected Mount Isa processing additional metal from
Zinc metal kt 147.9 167.5 (12)
decline of Maleevsky mine in Kazakhstan, ore stockpile drawdowns in 2020.
Lead metal kt 19.8 25.6 (23)
being lagged by the slower than expected
Lead production of 188,100 tonnes was 28,700 Copper metal6 kt 25.6 37.0 (31)
ramp-up of replacement Zhairem mine
tonnes (13%) down on 2020 reflecting lower Gold koz 595 659 (10)
tonnage (19,600 tonnes); (ii) Mount Isa
Mount Isa grades.
producing additional metal from ore stockpile Silver koz 2,921 4,712 (38)
drawdowns in the base period (24,400 The Mount Isa copper operations are now Australia (Mount Isa, Townsville, McArthur River)5
tonnes); and (iii) Kidd lower grades (13,800 reported within the Zinc business unit. Own Zinc in concentrates kt 609.4 633.5 (4)
tonnes). These factors were partly offset by sourced copper production of 91,500 tonnes Copper metal kt 91.5 89.6 2
stronger zinc production at Antamina, which was broadly in line with 2020, noting that this
Lead in concentrates kt 188.1 216.8 (13)
was suspended for part of 2020 due to Covid figure excludes units from the held-for-sale
restrictions. Ernest Henry mine. Silver koz 625 557 12
Silver in concentrates koz 6,521 7,404 (12)
Kazzinc North America
North America (Matagami, Kidd)
Own sourced zinc production of 147,900 Zinc production of 96,100 tonnes was 18,600
Zinc in concentrates kt 96.1 114.7 (16)
tonnes was 19,600 tonnes (12%) lower than tonnes (16%) lower than 2020, reflecting the
2020, reflecting expected lower grades from reducing production profile of both assets as Copper in concentrates kt 30.3 40.7 (26)
Maleevsky mine (also affecting lead and they approach end of mine life. Silver in concentrates koz 1,383 2,125 (35)
copper noted below). Other Zinc: South America (Argentina, Bolivia,
South America Peru)7
Own sourced lead production of 19,800 Zinc production of 110,700 tonnes was 1,600 Zinc in concentrates kt 110.7 112.3 (1)
tonnes was 5,800 tonnes (23%) lower than tonnes below 2020 mainly reflecting the
Lead in concentrates kt 14.4 17.0 (15)
2020, and own sourced copper production of planned cessation of mining at Aguilar
25,600 tonnes was 11,400 tonnes (31%) down, (Argentina) and Iscaycruz (Peru), partly offset Copper in concentrates kt 1.7 1.6 6
also due to Maleevsky’s progressive depletion. by higher production in Bolivia following Silver in concentrates koz 7,383 6,121 21
Covid-related suspensions in 2020. Total Zinc department
Own sourced gold production of 595,000
ounces was 64,000 ounces (10%) lower than Zinc kt 964.1 1,028.0 (6)
the comparable 2020 period, mainly European custom metallurgical assets Lead kt 222.3 259.4 (14)
reflecting expected lower grades at Zinc metal production of 800,600 tonnes was Copper kt 149.1 168.9 (12)
Vasilkovsky. modestly higher than 2020. Gold koz 595 659 (10)
The new Zhairem zinc/lead mine was Lead metal production of 244,900 tonnes was Silver koz 18,833 20,919 (10)
commissioned in May 2021, with ramp up 46,900 tonnes (24%) higher than 2020, mainly
through 2022 and steady-state annualised reflecting the contribution of the Nordenham Total production – European custom metallurgical assets1
production expected by 2023. Metall lead smelter that was acquired in
2021 2020 Change %
September 2021 (38,200 tonnes).
Zinc (Portovesme, San Juan de Nieva, Nordenham,
Northfleet)
Zinc metal kt 800.6 787.2 2
Lead metal kt 244.9 198.0 24


continued
Nickel assets Production from own sources – Nickel assets1

Nickel production of 102,300 tonnes was 7,900 2021 2020 Change %
tonnes (7%) lower than in 2020, mainly due to Integrated Nickel Operations (INO) (Sudbury,
the lengthy scheduled statutory shutdown Raglan, Nikkelverk)
and maintenance issues at Murrin Murrin Nickel metal kt 55.0 56.5 (3)
earlier in the year.
Nickel in concentrates kt 0.2 0.4 (50)
Integrated Nickel Operations (INO) Copper metal kt 13.5 13.5 –
Own sourced nickel production of 55,200 Copper in concentrates kt 8.3 15.1 (45)
tonnes was 1,700 tonnes (3%) below 2020. Cobalt metal kt 1.1 0.6 83
Murrin Murrin Gold koz 15 21 (29)
Own sourced nickel production of 30,100 Silver koz 296 339 (13)
tonnes was 6,300 tonnes (17%) below 2020, Platinum koz 33 40 (18)
reflecting the lengthy scheduled statutory Palladium koz 83 101 (18)
shutdown in May/June and various
Rhodium koz 4 4 –
maintenance issues earlier in the year.
Murrin Murrin
Koniambo Nickel metal kt 30.1 36.4 (17)
Nickel production of 17,000 tonnes was In line Cobalt metal kt 2.5 2.9 (14)
with 2020 production, following a much
Koniambo
improved Q4 2021 performance.
Nickel in ferronickel kt 17.0 16.9 1
Ferroalloys assets Total Nickel department
Attributable ferrochrome production of Nickel kt 102.3 110.2 (7)
1,468,000 tonnes was 439,000 tonnes (43%) Copper kt 21.8 28.6 (24)
higher than 2020 mainly due to the South Cobalt kt 3.6 3.5 3
African national lockdown in the prior year, Gold koz 15 21 (29)
and a strong operating performance. Silver koz 296 339 (13)
Platinum koz 33 40 (18)
Palladium koz 83 101 (18)
Rhodium koz 4 4 –
Production from own sources – Ferroalloys assets1

2021 2020 Change %
Ferrochrome8 kt 1,468 1,029 43
Vanadium Pentoxide mlb 20.5 19.5 5


continued
Coal assets Coal assets1

Coal production of 103.3 million tonnes was 2.9 2021 2020 Change %
million tonnes (3%) lower than 2020, reflecting Australian coking coal mt 9.1 7.6 20
Prodeco’s care and maintenance status and Australian semi-soft coal mt 4.5 4.6 (2)
lower domestic power demand/export rail
Australian thermal coal (export) mt 55.9 55.7 –
capacity constraints in South Africa, offset by
higher production at Cerrejón, following a Australian thermal coal (domestic) mt 6.0 6.4 (6)
Covid suspension and strike in 2020. South African thermal coal (export) mt 14.7 14.8 (1)
South African thermal coal (domestic) mt 5.3 9.2 (42)
Australian coking
Cerrejón9 mt 7.8 4.1 90
Production of 9.1 million tonnes was 1.5 million
tonnes (20%) higher than 2020 reflecting Prodeco mt – 3.8 (100)
additional coking-quality production from the Total Coal department mt 103.3 106.2 (3)
Collinsville mine, and various planned
Oil assets
maintenance activities in 2020.
2021 2020 Change %
Australian thermal and semi-soft
Glencore entitlement interest basis
Production of 66.4 million tonnes was broadly
Equatorial Guinea kboe 4,141 1,960 111
in line with 2020.
Chad kbbl – 1,112 (100)
South African thermal Cameroon kbbl 1,133 872 30
Production of 20.0 million tonnes was 4.0
Total Oil department kboe 5,274 3,944 34
million tonnes (17%) under 2020, reflecting
lower domestic power demand and export
rail capacity constraints. Gross basis
Equatorial Guinea kboe 20,137 10,435 93
Cerrejón
Chad kbbl – 1,521 (100)
Attributable production of 7.8 million tonnes
Cameroon kbbl 2,866 2,528 13
was 3.7 million tonnes (90%) higher than 2020,
reflecting the base period being disrupted by Total Oil department kboe 23,003 14,484 59
both a Covid-related temporary suspension 1 Controlled industrial assets and joint ventures only. Production is on a 100% basis, except for joint ventures, where the
and strike action. Group’s attributable share of production is included.
2 Cobalt contained in concentrates and hydroxides.
3 The Group’s pro rata share of Collahuasi production (44%).
Oil assets 4 The Group’s pro rata share of Antamina production (33.75%).
5 Mount Isa copper operations (including Townsville) previously recorded under copper department moved to zinc
Exploration and production department.
Entitlement interest production of 5.3 million 6 Copper metal includes copper contained in copper concentrates and blister.
7 South American production excludes Volcan Compania Minera.
boe was 1.3 million boe (34%) higher than 8 The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
2020 mainly due to commencement of the 9 The Group’s pro rata share of Cerrejón production (33.3%).
gas phase of the Alen project in Equatorial
Guinea. There was no production from the
Chad fields in 2021.


continued
Carbon intensity of Industrial Activities Metals mining1 Coal mining

We show the carbon intensity of our 2021 2020 2019 2021 2020 2019
operations as Scope 1 and 2 emissions Reported own sourced metals production Copper kt 1,195.7 1,258.1 1,371.2 Reported coal production mt 103.3 106.2 139.5
compared to production from those Add: minority interests share of managed JVs mt 17.9 18.7 23.0
Zinc kt 1,117.8 1,170.4 1,077.5
operations. We have shown metals mining,
Cobalt kt 31.3 27.4 46.3 Less: Cerrejon JV mt (7.8) (4.1) (8.6)
coal mining, metals smelting and oil refining
Nickel kt 102.3 110.2 120.6 Less: other non-managed JVs mt (5.6) (7.5) (8.5)
separately. Emissions data is collected on a
site-by-site rather than activity-by-activity Lead kt 222.3 259.4 280.0 Relevant coal production mt 107.7 113.2 145.5
basis. Integrated sites with mining and Gold koz 809 916 886 Converted to copper equivalents 3 mt 1,238 1,301 1,671
smelting capability have therefore been Silver koz 31,519 32,766 32,018 CO 2 emissions of managed assets (Scope 1) mt 5.1 5.7 6.7
allocated to the most appropriate category. Converted to copper equivalents 3 kt 2,465 2,592 2,803 CO 2 emissions of managed assets (Scope 2) mt 1.1 1.2 1.2
Less: attributable Cu-equivalent CO2 emissions of managed assets (Scope 1 & 2) mt 6.2 6.8 7.9
Around 40-50% of Glencore's operational CO2 kt (530) (503) (474)
production from JVs
footprint relates to the smelter portfolio. The Carbon intensity of coal mining t CO 2 /t coal 0.058 0.060 0.054
Add: Cu-equivalent production from Volcan kt 157 120 164
South African national lockdown in 2020 Carbon intensity of coal mining t CO 2 /t Cu-equiv 5.0 5.3 4.7
Relevant Cu-equivalent production kt 2,092 2,209 2,493
resulted in significantly lower production and
CO 2 emissions of managed assets (Scope 1) mt 5.0 5.2 5.6
emissions from the Ferroalloys business.
CO 2 emissions of managed assets (Scope 2) Oil refining and distribution
These tonnes and emissions were largely mt 2.4 2.6 2.6
restored in 2021. Power supplies for the CO2 emissions of managed assets (Scope 1 & 2) mt 7.4 7.8 8.3 2021 2020 2019
smelter assets are almost exclusively from Astron Energy oil products sold million litres 6,386 5,149 3,877
national grids and therefore dependent on Carbon intensity of metals mining t CO 2 /t Cu-equiv 3.6 3.5 3.6 CO 2 emissions of Astron Energy (Scope 1) mt – 0.1 0.6
the mix of fuel sources in the respective CO 2 emissions of Astron Energy (Scope 2) mt – – 0.1
jurisdiction. Scope 1 smelter emissions also Metals smelting2 CO2 emissions of Astron Energy (Scope 1 & 2) mt – 0.1 0.7
include reductants which are hard to abate. 2021 2020 2019 Carbon intensity of Astron Energy4 t CO 2 /million
Reported smelter production Copper litres 3.7 27.6 177.2
Mining operations are mainly operated with kt 454.0 490.1 510.7
anode
diesel-fuelled equipment. Lower absolute Copper
Scope 1 emissions in mining operations kt 490.6 482.6 432.9
cathode CO2 emissions of managed assets (Scope 1 & 2)
compared to pre-Covid (2019) levels mainly Lead kt 244.9 198.0 190.5
reflects the closure of mining operations at 2021 2020 2019
Zinc kt 800.6 787.2 805.7
Prodeco and the sale of Mopani copper Ferroalloys kt 1,468.3 1,028.8 1,438.4
Metals mt 7.4 7.8 8.3
mines, plus temporary demand-led Coal mt 6.2 6.8 7.9
Converted to copper equivalents 3
kt 1,573 1,518 1,552
production cuts in the coal portfolio during Smelters mt 12.0 9.3 12.2
Add: minority interests share of managed JVs kt 54 37 52
2020-21. Astron Energy mt 0.0 0.1 0.7
Relevant Cu-equivalent production kt 1,627 1,556 1,605
Add: Chad E&P (held for sale) and other assets mt – 0.1 0.4
Total reported CO2 emissions (Scope 1 & 2) mt 25.7 24.2 29.4
Change vs 2019 baseline -13% -18%
CO2 emissions of managed assets (Scope 1 & 2) mt 12.0 9.3 12.2
Carbon intensity of metals smelting t CO 2 /t Cu-equiv 7.4 6.0 7.6
1 Includes integrated mine/smelter operations: Mount Isa, Kazzinc, INO, Murrin Murrin, 4 Astron Energy's refining operations have been suspended since early 2020. While the
Koniambo, Mopani (disposed 2021). refinery is being repaired and upgraded, Astron Energy has imported refined products
2 Includes integrated mine/smelter operations: Ferroalloys. for distribution in South Africa and Botswana.
3 Converted to Cu-equivalents on the basis of 2019 (baseline year) average prices.

As well as the ongoing work of the Board and

Risk management The Committees' work concerning these
various risks is set out in their reports on its Committees on the various major areas of
Industrial risk management
Responsibilities for business risk
pages 96 to 100. risk, the Board undertakes a complete review
management are decentralised across the
of the Group's principal and emerging risks in
The Board actively manages and monitors the departments and assets and supported by
its main Q4 meeting, which is then updated
Risk management is one of the core Group's risks, financial exposure and related the Industrial Assets' Risk Management
and considered in subsequent meetings for
responsibilities of the Group’s internal controls to mitigate these risks. the purposes of this report and the
teams. We believe that all employees should
leadership and it is central to our Monitoring and reporting are the be accountable for the risks related to their
interim report.
roles. As a result, we encourage our
decision-making processes. The responsibility of the Group Risk Functions and
employees to escalate risks (not limited to
Group leadership's fundamental the Heads of corporate functions who provide Risk management framework
regular updates to the Board and its hazards), whether potential or realised, to their
duties as to risk management are: Committees covering various risks and the
Our Group functions support senior immediate supervisors. This enables risks to
• making a robust assessment of

emerging and principal risks
performance of the relevant controls in place.
These reports cover various topics, including
management and those with
responsibilities for risk within the
be tackled and mitigated at an early stage by
the team with the relevant level of expertise.
•
business, in the development and
monitoring risk management and Group VaR, credit exposure, material risks maintenance of an appropriate Led by the Head of Industrial Assets and the
internal controls from the risk register, internal audit findings, institutional risk culture of managing and Industrial Leads across each commodity
• promoting a risk aware culture compliance monitoring, HSEC-HR matters
and HSEC assurance. The Board also receives
mitigating risk across the Group,
as appropriate.
department, management teams at each
industrial operation are responsible for
updates from the ESG committee and on the
Effective risk management is crucial in Raising Concerns programme.
helping the Group achieve its objectives
of preserving its overall financial strength
for the benefit of all stakeholders and
safeguarding its ability to continue as a Risk management framework
• •
going concern, while generating sustainable
•
long-term returns. Risk culture Board of Directors
Oversight
•
Risk strategy and appetite Tone from
The Board assesses and approves our overall Risk governance the top
risk appetite, monitors our risk exposure and
overall evaluation of internal controls. This
process is supported by the Audit, HSEC and • •
•
Risk organisation Infrastructure Management team
ECC Committees, whose roles include
•
External disclosure
evaluating and monitoring the risks inherent Risk monitoring and reporting People Process Technology
in their respective areas via reporting from the
Group corporate functions:
• • •
•
Risk identification Risk process Business departments
Industrial and Marketing risk functions
and corporate functions
•
Risk assessment Identify Measure Mitigate Control Report
(Group Risk Functions)
• Compliance
Risk management
• Legal
HSEC risk and compliance processes
• Finance Industrial risk process Marketing risk process
• Internal Audit
• HSEC-HR / HSEC audit
• Sustainable Development Industrial Marketing
• Human Resources
• IT

Risk management continued

Value at risk VaR during 2020 was $39 million. There
One of the tools used by Glencore to were no limit breaches during the period.
monitor and limit its primary market risk The Group remains aware of the extent of
implementing processes that identify, assess be published in the Group’s Sustainability Report exposure, namely commodity price risk
and manage risk. for 2021. coverage of risk exposures and their
related to its physical marketing activities, limitations. In addition, VaR does not
The industrial risk process is driven by is the use of a value at risk (VaR) purport to represent actual gains or losses
ongoing risk assessment informing risk
Marketing risk (MR) management computation. VaR is a risk measurement in fair value on earnings to be incurred by
registers maintained at asset, department Glencore’s marketing activities are exposed to technique, which estimates the potential the Group, nor are these VaR results
and Group levels based on risk rating and a variety of risks, such as commodity price, loss that could occur on risk positions as a considered indicative of future market
controls evaluation, with risks owned, basis, volatility, foreign exchange, interest rate, result of movements in risk factors over a movements or representative of any actual
escalated and approved according to credit and performance, liquidity and specified time horizon, given a specific impact on its future results. VaR remains
materiality and following the guidance regulatory. Glencore devotes significant level of confidence. The VaR methodology viewed in the context of its limitations;
contained in the Glencore enterprise resources to developing and implementing is a statistically defined, probability based notably, the use of historical data as a proxy
risk matrix. policies and procedures to identify, monitor approach that takes into account market for estimating future events, market
and manage these risks. volatilities, as well as risk diversification by illiquidity risks and risks associated with
HSEC-HR & sustainability recognising offsetting positions and
Glencore’s MR is managed at an individual, longer time horizons as well as tail risks.
risk management correlations between commodities and
business and central level. Initial responsibility Recognising these limitations, the Group
markets. In this way, risks can be measured complements and refines this risk analysis
These risk management processes are managed for risk management is provided by the
consistently across all markets and through the use of stress and scenario
at asset level, with the support and guidance businesses in accordance with and
commodities and risk measures can be analysis. The Group regularly back-tests its
from the central Sustainability and HSEC and complementing their commercial decision-
aggregated to derive a single risk value. VaR to establish adequacy of accuracy and
Human Rights (HSEC-HR) teams, and subject to making. A support, challenge and verification
Glencore’s Board has set a consolidated to facilitate analysis of significant
the leadership and oversight of the HSEC role is provided by the central MR function
VaR limit (one day 95% confidence level) of differences, if any.
Committee. The Head of Industrial Assets drives headed by the Chief Risk Officer (CRO) via its
$150 million (2020: $100 million)
the risk management framework for all industrial daily risk reporting and analysis which is split
representing less than 0.4% of total equity, The Board has approved the Audit
assets, covering HSEC-HR, and his team by market and credit risk.
which the Board reviews annually. Given Committee’s recommendation of a one
monitors its implementation across the Group.
The MR function monitors and analyses the 2021’s elevated implied market volatilities, day, 95% VaR limit of $150 million for 2022.
Our risk management framework allows us to large transactional flows across many together with statistically higher
identify, assess and mitigate HSEC-HR related locations using its timely and comprehensive commodity correlations and the nature /
$m Metals and minerals Energy
risks. The framework identifies material matters recording and reporting of resultant extent (e.g. increased size and tenor of the
140
and supports our ongoing assessment of what exposures, which provides the encompassing LNG business) of transaction volumes, the
130
matters most to our business and to our positional analysis, and continued assessment Board approved an increase in the VaR 120
stakeholders. The framework is supported by our of universal counterparty credit exposure. limit in H2 2021, initially to $130 million on a 110
HSEC assurance process. On a quarterly basis we temporary basis and then to $150 million 100
monitor and review the progress to close out the The MR team provides a wide array of daily going forward, with effect from 1 January 90
and weekly reporting. For example, daily risk 80
corrective actions and address any outstanding 2022. 70
issues with the local management teams. The reports showing Group Value at Risk (VaR), 60
back testing results and various stress tests Glencore uses a one-day VaR approach 50
Group’s internal HSEC assurance programme
and analysis are distributed to the CEO, CFO based on a Monte Carlo simulation with a 40
focuses on catastrophic risks, assessing and
and CRO. Additionally, business risk weighted data history computed at a 95% 30
monitoring compliance with leading practices. 20
summaries showing positional exposure and confidence level. Average market risk VaR
10
Further information is provided in the report other relevant metrics, together with (1 day 95%) during 2021 was $54 million, 0
from the HSEC Committee on page 97 and will with an observable high of $126 million and
Jan 21
Feb 21
Mar 21
Apr 21
May 21
Jun 21
Jul 21
Aug 21
Sept 21
Oct 21
Nov 21
Dec 21
potential margin call requirements, are also
low of $27 million, while average equivalent

Risk management continued Legal and compliance monitoring takes place across multiple
For legal and compliance risk, see Ethics and organisational levels. 2021 developments and
Compliance section on page 43, and the laws In accordance with UK Financial Reporting overview of principal risks
and enforcement risk on page 75. Council guidance, we define a principal risk as and uncertainties
circulated daily. The MR function strives to
a risk or combination of risks that could
continuously enhance its stress and scenario
Internal audit seriously affect the performance, future Moderate
testing as well as improve measures to
Glencore’s Internal Audit function reports prospects or reputation of Glencore. These impact
capture additional risk exposure within the
directly to the Audit Committee. Its role is to include those risks which would threaten the
specific areas of the business. Major
evaluate and improve the effectiveness of business model, future performance,
impact
The Group makes extensive use of credit business risk management, internal control, solvency, or liquidity of the Group.
enhancement tools, seeking letters of credit, and business governance processes. Severe
The Group understands an emerging risk as a impact
insurance cover, discounting and other means
A risk-based audit approach is applied in risk that has not yet fully crystallised but is at
of reducing credit risk from counterparts. In
addition, mark-to-market exposures in
order to focus on high-risk areas during the an early stage of becoming known and/or 2 1 3 10 8
audit process. It involves discussions with coming into being and expected to grow in
relation to hedging contracts are regularly 4 5 9
management on key risk areas identified in significance in the longer term.
and substantially collateralised (primarily with
the Group’s budgeting process, emerging
cash) pursuant to margining agreements in Emerging risks typically have their origin 6 7
risks, operational changes, new investments
place with such hedge counterparts. outside Glencore and there is often
and capital projects. On an annual basis,
insufficient information for these risks to be
The Group-wide credit risk policy governs Internal Audit also performs reviews at the
fully understood and prevention by the Group
higher levels of credit risk exposure, with an direction of senior management and the 11
may not be possible.
established threshold for referral of credit Audit Committee. Internal Audit reviews these
decisions by business heads to the CRO, CFO areas of potential risk, and suggests controls The Board mandates its ECC, HSEC and Audit
and the CEO (relating to unsecured amounts to mitigate exposures identified. Committees to identify, assess and monitor Risk probability change in 2021 v 2020
in excess of $75 million with BBB- (or the principal and emerging risks relevant to
The Audit Committee considers and approves
equivalent) or lower rated counterparts). At their respective remits. These Committees Increase Stable Decrease
the risk-based Internal Audit plan, areas of
lower levels of materiality, decisions may be usually meet five times a year and are always
audit focus and resources and is regularly
taken by the business heads where key followed by a meeting of the Board to review
updated on audits performed and relevant
strategic transactions or established and discuss their work. Principal risks
findings, as well as the progress on
relationships, together with credit analysis,
implementing the actions arising. In The assessment of our principal risks, 1. Supply, demand and prices
suggest that some level of open account
particular, the Committee considers Internal according to exposure and impact, is detailed of commodities
exposure may be warranted.
Audit’s main conclusions, its KPIs and the on the following pages. 2. Currency exchange rates
effectiveness and timeliness of
Managing risk for joint ventures (JVs) The commentary on the risks in this section 3. Geopolitical, permits and licences
management’s responses to its findings. The
The Board, through the ECC and HSEC should be read in conjunction with the to operate
Audit Committee has concluded that the
Committees, reviews and determines the Internal Audit function remains effective. explanatory text under Understanding our 4. Laws and enforcement
appropriate level of risk management risks information which is set out on page 72. 5. Liquidity
oversight for the Group’s material JVs. We
Principal and emerging risks 6. Counterparty credit and performance
ensure that our material risk management
Our approach is framed by the ongoing 7. Operating
programmes are implemented at the JVs that
understanding of the risks that we are 8. Cyber
we operate. In other JVs, we seek to influence
exposed to, emerging trends that could 9. Health, safety and environment
our JV partners to adopt our commitment to
seriously impact our business model, our risk 10. Climate change
responsible business practices and
appetite in respect of these risks, how these
implement appropriate programmes in 11. Community relations and
risks change over time and ensuring risk
respect of their main business risks. human rights

Evolution in principal and emerging risks Given the importance of Russian/Ukrainian Longer-term viability For the 2022-25 plan these scenarios included:
Covid-19
Globally, Covid-19 has continued to disrupt
supply to a number of key commodities
including oil, natural gas, coal, grain,
In accordance with the requirements of the
UK Corporate Governance Code, the Board • a prolonged downturn in the price and
demand of commodities most impacting
and affect our business. The main issues this aluminium and nickel, volatilities in all of these has assessed the prospects of the Group’s Glencore’s operations. Prices and FX over
year have been: have spiked. Applicable Sanctions are also viability over the four-year period from Q2 2020 (lowest average quarter in recent
•
significantly impacting traditional commodity 1 January 2022. This period is consistent with
the implementation of several new health history, accounting for Covid-19) are assumed
trade flows. the Group’s established annual business to prevail for the outlook period to 2025;
•
and safety measures at our industrial sites
Glencore has no operational footprint in planning and forecasting processes and cycle,
and offices around the globe foreign exchange movements to which the
• further mandatory shutdowns imposed Russia and our trading exposure is not
significant. We are reviewing all our business
which is subject to review and approval each
year by the Board.
Group is exposed as a result of its global
operations;
•
by governments and shifts to
remote working activities in the country including our equity The Board also assessed the medium- and actions at the Group’s disposal to mitigate
• the various restrictions in travel,
domestically and internationally, and
stakes in En+ and Rosneft (see note 35).
Over time, global commodity trade flows will
long-term impact of climate change on the
outlook for our commodity businesses, under
the adverse impacts of the above,
principally the ability to defer or cancel
• strained supply chains. need to adapt to some or all of Russian/

Ukrainian supply being unavailable, whether
a range of possible scenarios, as set out on
pages 24-25. Such impacts are uncertain,
capital expenditure, to manage the
working capital cycle and to reduce or
Notwithstanding these challenges and their being particularly dependent on long-term stop distributions to shareholders; and
•
due to infrastructure damage, sanctions or
related impact on our risks, Covid-19’s impact ethical concerns. changes in the energy mix related to power consideration of the potential impact of
on our industry and the Company has been generation and transportation, as well as adverse movements in macroeconomic
uneven. Global trading flows continue to consumption efficiencies, behavioural change assumptions and their effect on the
2021 update
operate and no critical infrastructure assets and co-ordinated implementation of above key financial KPIs and ratios which
Consistent with the prior year, there are 11
have been suspended. The benefits of global government policy and regulation could increase the Group’s access to or cost
principal risks of the Group, of which the
policy responses to tackle the impacts of the frameworks, which will materially fall outside of funding.
following six are the most significant and may
pandemic have helped reduce the negative the four-year period selected for assessment
potentially give rise to the most material and The scenarios were assessed taking into
consequences on the global economy. of longer term viability. This analysis, however,
adverse effects on the Group: account current risk appetite and any
indicates stable or improving opportunities
This year has also seen significant increases in
• supply, demand, and prices of commodities across the portfolio in the Current Pathway mitigating actions Glencore could take, as
energy prices.
Russia/Ukraine conflict
• geopolitical, permits and licences
to operate
scenario. In the Rapid Transformation and
Radical Transition scenarios, we project
required, in response to the potential
realisation of any of the stressed scenarios.
In February 2022, the Russian government
• laws and enforcement
significant coal demand decline over the Based on the results of the related analysis,
commenced a war against the people of
Ukraine, resulting in a humanitarian crisis and • health, safety, environment, including
catastrophic hazards
longer term, more than compensated
however (from a financial perspective) by
the Directors have a reasonable expectation
that the Group will be able to continue in
significant disruption to financial and
• liquidity, and
materially stronger demand for battery and operation and meet its liabilities as they fall
•
commodity markets. The United States of new energy infrastructure required metals. due over the four-year period of this
America, European Union, Switzerland and climate change risks.
The four-year plan considers Glencore’s assessment. They also believe that the
United Kingdom imposed a series of The pages which follow provide a detailed review period of four years is appropriate
Adjusted EBITDA, capital expenditure, funds
sanctions against the Russian government, analysis of each of the principal risks and having regard to the Group’s business model,
from operations (FFO) and Net debt, and the
various companies, and certain individuals. uncertainties with comments on changes of strategy, principal risks and uncertainties,
key financial ratios of Net debt to adjusted
Glencore complies with all sanctions impact, mitigation, controls, actions, and and viability.
EBITDA and FFO to Net debt over the forecast
applicable to our business activities. other relevant comments. years and incorporates stress tests to simulate
the potential impacts of exposure to the
Group’s principal risks and uncertainties.

Understanding our risks information In this section, we have sought to update the taking out of insurance where it is
our explanations, reflecting our current customary and economic to do so
•
There are many risks and uncertainties
which have the potential to significantly outlook. Mostly this entails emphasising this section should be read as a whole –
impact our business. The order in which certain risks more strongly than other risks often commentary in one section is
these risks and uncertainties appear does rather than the elimination of, or creation of, relevant to other risks
not necessarily reflect the likelihood of their
occurrence or the relative magnitude of
risks. Certain investors may also be familiar
with the risk factors that are published in
• ‘commodity/ies’ will usually refer to those
commodities which the Group produces
their potential material adverse effect on the Group debt or equity prospectuses or or sells
our business. listing documents. These provide in part
• ‘law’ includes regulation of any type
We have sought to provide examples of
specific risks. However, in every case these
some differing descriptions of our
principal risks. • ‘risk’ includes uncertainty and hazard and
together with ‘material adverse effect on
do not attempt to be an exhaustive list. Our latest documentation for debt investors the business’ should be understood as a
These principal risks and uncertainties and their related risk disclosures is available negative change which can seriously
should be considered in connection with at: glencore.com/investors/debt-investors affect the performance, future prospects
any forward looking statements in this or reputation of the Group. These include
In addition, more information on our risks
document as explained on page 259. those risks which would threaten the
is available in the relevant sections of
business model, future performance,
Identifying, quantifying and managing risk our website.
reputation, solvency or liquidity of
is complex and challenging. Although it is To provide for concise text: the Group
our policy to identify and, where appropriate
and practical, actively manage risk, our • where we hold minority interests in • a reference to a note is a note to the 2021
financial statements
policies and procedures may not adequately
identify, monitor and quantify all risks.
certain businesses, although these
entities are not generally subsidiaries and • a reference to the sustainability report is
our 2021 sustainability report to be
would not usually be subject to the
This section describes our attempts to published in April 2022.
Group’s operational control, these
manage, balance or offset risk. Risk is, interests should be assumed to be
however, by its very nature uncertain and subject to these risks. ‘Business’ refers to
inevitably events may lead to our policies these and any business of the Group
and procedures not having a material
mitigating effect on the negative impacts of • where we refer to natural hazards, events
of nature or similar phraseology we are
the occurrence of a particular event. Our
referring to matters such as earthquake,
scenario planning and stress testing may
flood, severe weather and other
accordingly prove to be optimistic,
natural phenomena
particularly in situations where material
negative events occur in close proximity. • where we refer to ‘mitigation’ we do not
intend to suggest that we eliminate the
Since many risks are connected, our analysis
should be read against all risks to which it risk, but rather it refers to the Group’s
may be relevant. attempt to reduce or manage the risk.
Our mitigation of risks will usually include

of and demand for commodities, speculative stakeholders as to the strength of the Group’s changes were the acquisition of the two-
activities by market participants, global balance sheet. thirds of the Cerrejon thermal coal business
Strategic priorities political and economic conditions, related we did not already own, and the restart of the
This risk is more prevalent in fossil fuels, given
industry cycles and production costs in major Mutanda copper/cobalt operation.
the drive towards net zero emissions over the
producing countries.
long term. Net zero emissions requires Marketing operations benefited from
Responsible production The dependence of the Group (especially our demand for unabated coal and other underlying supply/demand tightness and
and supply industrial business) on commodity prices, hydrocarbon fuel sources to materially reduce volatility spikes across a number of
supply, and demand of commodities, make over time, driven on by political pressures, commodities, also leading to the Board
this the Group’s foremost risk. societal expectations, and generally increased approving a temporary (and ultimately
Responsible access to, and cost competitiveness of, lower permanent) increase request to the Group’s
portfolio management We are dependent on the expected volumes
carbon alternatives (i.e. renewables) and the Value at Risk limit.
of supply or demand for commodities which
likelihood of increased and broader
can vary for many reasons, such as competitor The Russia/Ukraine conflict in 2022 has led to
implementation of carbon pricing/taxes
Responsible supply, changes in resource availability, elevated volatility across many asset classes,
across the geographies where the
product use government policies and regulation, costs of including commodities. Depending on the
Group operates.
production, global and regional economic duration of the conflict and the sanctions
conditions and demand in end markets for The new or improved energy production regime, global commodity flows may change
products in which the commodities are used. possibilities and/or technologies are likely to materially from their pre-2022 situation.
Supply and demand volumes can also be reduce the demand for some commodities
impacted by technological developments, such as coal, however, at the same time, are
Mitigating factors
1. Supply, demand, and e.g. commodity substitutions, fluctuations in likely to materially increase demand for We continue to maintain focus on cost
prices of commodities global production capacity, geopolitical other commodities. discipline and achieving greater
events, global and regional weather operational efficiency, and we actively
Any adverse economic developments, manage marketing risk, including daily
conditions, natural disasters, and diseases, all
2021 vs 2020 Risk appetite Link to strategy particularly those impacting China and fast analysis of Group value at risk (VaR).
of which impact global markets and demand
growing developing countries, could lead to
High for commodities. We maintain both a diverse portfolio of
reductions in demand for, and consequently
Future demand for certain commodities price reductions of, commodities, with commodities, geographies, currencies, assets
Medium
might decline (e.g. fossil fuels), whereas others particular risk to commodities used in and liabilities and a global portfolio of
Low might increase (e.g. copper, cobalt, and nickel steelmaking such as iron ore, metallurgical customers and contracts.
for their use in electric vehicles and batteries coal and zinc. We seek to prepare for anticipated shifts in
Being a resources company, we are subject more broadly), taking into consideration the
Developments commodity demand, for example by putting
to the inherent risk of sustained low prices transition to a low carbon economy. a special focus on the parts of the business
of our main commodities, particularly Energy markets tightened significantly in
Furthermore, changes in expected supply that will potentially grow with increases in
affecting our industrial business. H2 2021 leading to energy price increases
and demand conditions impact the expected usage of electric vehicles and battery
across the board. Industrial metals prices
Description and potential impact future prices (and thus the price curve) of each production and recycling, and by closely
remained at strong levels throughout the
The revenue and earnings of substantial parts commodity and significant falls in the prices monitoring fossil fuel (particularly thermal
year.
of our industrial asset activities and, to a lesser of certain commodities (e.g. copper, coal, zinc coal) demands. We can also reduce the
extent, our marketing activities, are and cobalt) can have a severe drag on our In this environment, our long-term plans for production of any commodity within our
dependent upon prevailing commodity financial performance, impede shareholder our industrial operations remained portfolio in response to changing
prices. Commodity prices are influenced by returns and could lead to concerns by external appropriate with no market-driven market conditions.
several external factors, including the supply corrections required. Material portfolio

Developments application and the access to impartial

2. Currency exchange (FX) rates Higher commodity prices supported a level of 3. Geopolitical, permits administrative and judicial redress may be
producer currency strengthening versus the limited. In certain cases, a government
and licences to operate
US dollar in 2021. authority may make material demands
2021 v 2020 Risk appetite Link to strategy without robust justification with a view to
Near term confidence in stability of global negotiating a settlement.
High 2021 v 2020 Risk appetite Link to strategy
demand (and thus indirectly FX rates for
Medium relevant producer countries) hinges on many High The terms attaching to any permit or licence
factors, particularly those that relate to the to operate may be onerous and obtaining
Low Medium these and other approvals, which may be
prospects of global economic recovery and
growth, including U.S./China trade Low revoked, can be particularly difficult.
This affects us as a global company usually relationship, political/economic tension across Furthermore, in certain countries, title to land
selling in US dollars but having costs in a the CIS and the ongoing disruption caused by We operate in many countries across the and rights and permits in respect of resources
large variety of other currencies. the coronavirus pandemic. globe. Regulatory regimes applicable to are not always clear or may be challenged.
Description and potential impact resource companies can often be subject to Adverse actions by governments and others
Mitigating factors
adverse and short-term changes. can result in operational/project delays or loss
FX changes happen all the time but are often Ordinarily, where material, FX exposure to
difficult to predict. Producer country non-operating FX risks is hedged. The inverse Description and potential impact of permits or licences to operate. Policies or
currencies tend to increase in correlation with FX correlation (against USD commodity laws in the countries in which we do business
We operate and own assets in a large number
relevant higher commodity prices. Similarly, prices) usually provides a partial natural FX may change in a manner that may negatively
of geographic regions and countries, some of
decreases in commodity prices are generally hedge for the industrial business. In respect of affect the Group.
which are categorised as developing, complex
associated with increases in the US dollar commodity purchase and sale transactions or having unstable political or social The suspension or loss of our permits or
relative to local producer currencies. denominated in currencies other than US environments. As a result, we are exposed to a licences to operate could have a material
The vast majority of our sales transactions are dollars, the Group’s policy is usually to hedge wide range of political, economic, regulatory, adverse effect on the Group and could also
denominated in US dollars, while operating the specific future commitment through a social and tax environments. The Group preclude Glencore from participating in
costs are spread across many different forward exchange contract. From time to transacts business in locations where it is bids and tenders for future business and
countries, the currencies of which fluctuate time, the Group may hedge a portion of its exposed to a risk of overt or effective projects, therefore affecting the Group’s
against the US dollar. A depreciation in the currency exposures and requirements in an expropriation or nationalisation. Our long-term viability.
value of the US dollar against one or more of attempt to limit any adverse effect of operations may also be affected by political
exchange rate fluctuations. and economic instability, including terrorism, Our licences to operate through mining rights
these currencies will result in an increase in
civil disorder, violent crime, war, and are dependent on a number of factors,
the cost base of the relevant operations in US We continuously monitor and report on
social unrest. including compliance with regulations and
dollar terms. financial impacts resulting from foreign constructive relationships with a wide and
The main currency exchange rate exposure is currency movements. Increased scrutiny by governments and tax diverse range of stakeholders.
through our industrial assets, as a large authorities in pursuit of perceived aggressive
tax structuring by multinational companies The continued operation of our existing assets
proportion of the costs incurred by these
has elevated potential tax exposures for the and future plans are in part dependent upon
operations is denominated in the currency of
Group. Additionally, governments have broad support, our ‘social licence to operate’,
the country in which each asset is located.
sought additional sources of revenue by and a healthy relationship with the respective
increasing rates of taxation, royalties or local communities – see further Community
resource rent taxes or may increase Relations and Operating risks concerning
sustainability obligations. The tax codes of workforce disputes.
some countries can be uncertain in their

Developments Mitigating factors their more stringent enforcement or

The Group has increased its engagement, We endeavour to operate our businesses 4. Laws and Enforcement restrictive interpretation could cause
including due to Covid-19 with employees, according to high legal, ethical, social, and additional significant expenditure to be
relevant governmental authorities, regulators, human rights standards, and to ensure that incurred and/or cause suspensions of
2021 v 2020 Risk appetite Link to strategy operations and delays in the development of
and other stakeholders. our presence in host countries leaves a
positive lasting legacy (see sustainability risks High industrial assets. Failure to obtain or renew a
Resource nationalism continues to be a necessary permit or the occurrence of other
later in this section). This commitment is
challenging issue in many countries. Medium disputes could mean that we would be
essential to enable us to effectively manage
these risks and to maintain our permits and unable to proceed with the development or
Emerging uncertainty regarding global Low
supply of commodities due to the Russia/ licences to operate. continued operation of an industrial asset
Ukraine conflict may disrupt certain global and/or impede our ability to develop new
We operate under a Group Tax Policy, annually Some of our existing industrial and
trade flows and place significant upwards industrial assets.
reviewed by the Board, which sets out the marketing activities are located in countries
pressure on commodity prices and input that are categorised as developing or as As a diversified sourcing, marketing and
Group’s commitment to comply with all
costs as seen through early March 2022. having challenging political or social distribution company conducting complex
applicable tax laws, rules and regulations,
Challenges for market participants may climates or where the legal system is transactions globally, we are particularly
without exception, and to be characterised as
include availability of funding to ensure uncertain, and/or where corruption is exposed to the risks of fraud, corruption,
a ‘good corporate fiscal citizen’.
access to raw materials, ability to finance generally understood to exist, and therefore sanctions, and other unlawful activities both
margin payments and heightened risk of The Group’s industrial assets are diversified there will always be residual risk in relation internally and externally. Our marketing
contractual non-performance. across various countries. The Group has an to our compliance with laws and external activities are large in scale, which may make
active engagement strategy with the requirements. fraudulent, corrupt, or other unlawful
Ongoing scrutiny by governments and tax
governments, regulators, and other transactions difficult to detect.
authorities has maintained potential tax Description and potential impact
stakeholders in the countries in which it
exposures for the Group at elevated levels, We are exposed to extensive laws, including In addition, some of our industrial activities
operates or intends to operate. Through
with some tax authorities taking an those relating to bribery and corruption, are located in countries where corruption is
strong relationships with stakeholders we
aggressive approach to engaging with the sanctions, taxation, anti-trust, financial more prevalent; and some of our
endeavour to secure and maintain our
Group, which has in some cases led markets regulation and rules, environmental counterparties have in the past, and may in
licences to operate.
to litigation. protection, use of hazardous substances, the future, become the targets of sanctions.
In 2021, we published our annual Payments to product safety and dangerous goods Corruption and sanctions risks remain highly
Governments report. This detailed total regulations, development of natural relevant for businesses operating in
government contributions in 2020 of $5.8 resources, licences over resources, international markets, as shown by recent
billion. It also set out details of payments on a exploration, production and post-closure enforcement actions both inside and outside
project by project basis. reclamation, employment of labour and the resources sector.
occupational health and safety standards. The
Also see Community relations and Human Governmental and other authorities have
legal system and dispute resolution
Rights risk below. commenced, and may in the future
mechanisms in some countries in which we
commence, investigations against the Group
operate may be uncertain, meaning that we
(including those listed in note 23 to the
may be unable to enforce our understanding
financial statements) in relation to alleged
of our rights and obligations under these laws.
non-compliance with these laws, and/or may
The costs associated with compliance with bring proceedings against the Group in
these laws and regulations, including the relation to alleged non-compliance. The cost
costs of regulatory permits, are substantial of cooperating with investigations and/or
and increasing. Any changes to these laws or

defending proceedings can be substantial. Developments Mitigating factors

Investigations or proceedings could lead to The Group has been cooperating extensively We seek to ensure compliance through our
reputational damage, the imposition of with the relevant authorities in order to commitment to complying with or exceeding
material fines, penalties, redress or other resolve as expeditiously as possible the the laws and regulations applicable to our
restitution requirements, or other civil or government investigations disclosed in note operations and products and through
criminal sanctions on the Group (and/or on 23 to the financial statements. The monitoring of legislative requirements,
individual employees of the Group), the Investigations Committee (‘Committee’) of engagement with government and
curtailment or cessation of operations, orders the Board manages the Group’s responses to regulators, and compliance with the terms of
to pay compensation, orders to remedy the these investigations. While the Committee permits and licences.
effects of violations and/or orders to take cannot forecast with certainty the cost,
preventative steps against possible future We seek to mitigate the risk of breaching
extent, timing or terms of the outcomes of the
violations. The impact of any monetary fines, applicable laws and external requirements
investigations, the Committee presently
penalties, redress or other restitution through our risk management framework.
expects to resolve the US, UK and Brazilian
requirements, and the reputational damage investigations in 2022. Accordingly, and based We have implemented a Group Ethics and
that could be associated with them as a result on the Company’s current information and Compliance programme that includes risk
of proceedings that are decided adversely to understanding, the Group has raised a assessments, a range of policies, standards,
the Group, could be material. provision as at 31 December 2021 in the procedures, guidelines, training and
In addition, the Group may be the subject of amount of $1.5 billion representing the awareness, monitoring and investigations.
legal claims brought by private parties in Committee’s current best estimate of the See also the Ethics and Compliance section of
connection with alleged non-compliance costs to resolve these investigations (included this report on page 43.
with these laws, including class or collective in other expenses, see note 5).
We have increased in recent years our focus
action suits in connection with governmental Glencore continues to cooperate with a on, and resources dedicated to, the Group
and other investigations and proceedings, previously disclosed investigation by the Ethics and Compliance programme, including
and lawsuits based upon damage resulting Office of the Attorney General of Switzerland through increasing the number of dedicated
from our operations. Any successful claims (OAG) into Glencore International AG for compliance professionals, enhancing our
brought against the Group could result in failure to have the organisational measures in compliance policies and procedures and
material damages being awarded against the place to prevent alleged corruption. The controls, increasing our training and
Group, the cessation of operations, timing and outcome of this investigation awareness activities and strengthening the
compensation and remedial and/or remain uncertain. Group’s Raising Concerns programme and
preventative orders. investigations function. We engage with
Glencore has also been notified by the Dutch
reputable external legal firms and consultants
authorities of a criminal investigation into
as necessary to support these efforts.
Glencore International AG related to potential
corruption pertaining to the DRC and is in However, there can be no assurance that such
contact with the Dutch authorities in respect policies, standards, procedures, and controls
of this investigation. The scope of the will adequately protect the Group against
investigation is similar to that of the OAG fraud, bribery and corruption, market abuse,
investigation. The Dutch authorities are sanctions breaches or other unlawful
coordinating their investigation with the OAG activities.
and we would expect any possible resolution
to avoid duplicative penalties for the same
conduct.

Developments Mitigating factors

5. Liquidity Note 28 details the fair value of our financial It is the Group’s policy to operate a strong
assets and liabilities. Note 27 details our BBB/Baa rated balance sheet and to ensure
financial and capital risk management that a minimum level of cash and/or
2021 v 2020 Risk appetite Link to strategy
including liquidity risk. committed funding is available at any
High given time.
The Group’s strong 2021 profitability and cash
Medium flows led to the reduction of Net debt from Diversification of funding sources is sought
$15.8 billion at 31 December 2020 to $6.0 via bank borrowings, bonds, and trade
Low billion at 31 December 2021. Our net funding finance, further diversified by currency,
at 31 December 2021 was $30.8 billion (31 interest rate and maturity.
Liquidity risk is the risk that we are unable to December 2020: $35.4 billion).
meet our payment obligations when due, or In light of the Group’s extensive funding
are unable, on an ongoing basis, to borrow The Group’s business model relies on ready activities, maintaining investment grade
funds in the market at an acceptable price access to substantial borrowings at credit rating status is a financial priority.
to fund our commitments. reasonable cost, which has continued to be
In support of this, Glencore targets a
forthcoming, noting the Group’s successful
Description and potential impact maximum 2x Net debt/Adjusted EBITDA ratio
issuance of some $4.3 billion of long-term
While we adjust our minimum internal through the cycle, and a c.$10 billion net debt
bonds in 2021 at attractive interest rates, and
liquidity threshold from time to time in cap in the ordinary course of business. The net
the ongoing availability of supplier financing
response to changes in market conditions, debt cap may be extended to $16 billion for
arrangements in the form of extended letters
this minimum internal liquidity target may be M&A opportunities with swift deleveraging
of credit provided by the Group’s various
breached due to circumstances we are unable back to the $10 billion level being a key part of
banks.
to control, such as general market disruptions, our assessment of any such opportunity.
sharp movements in commodity prices or an During 2021 the Group issued $2.95 billion in Deleveraging below the $10 billion cap is
operational problem that affects our suppliers, US markets and EUR 1.1 billion debt under its periodically returned to shareholders. Our
customers or ourselves. EMTN programme. Certain tranches of the financial policies seek to ensure access to
refinancing were longer dated than the funds, even in periods of elevated market
Our failure to access funds (liquidity) would instruments they replaced, up to 30 year volatility.
severely limit our ability to engage in desired maturities. This provided the opportunity to
activities and may mean that we will not have It should be noted that the credit ratings
lock in attractive funding rates for the long
sufficient funds available for our marketing agencies make certain adjustments,
term while maintaining our overall maturity
and industrial activities, both of which employ including a discount to the value of our
profile of no more than approximately $3
substantial amounts of capital. If we do not Readily Marketable Inventories, so that their
billion in any one year.
have funds available for these activities, then calculated net debt is higher.
they will decrease. In September, Moody’s affirmed its Baa1
rating for the Group and changed its outlook
Funding costs may rise owing to ratings to stable from negative. The outlook from S&P
agency downgrades and the possibility of (BBB+) is also stable.
more restricted access to funding.

Open account risk is taken but this is Mitigating factors

. Counterparty credit and
6 governed by the Group-wide Corporate We seek to diversify our counterparties and
Credit Risk Management procedure for
performance to ensure adherence to open account limits.
higher levels of credit risk exposure, with an
established threshold for referral of credit The Group makes extensive use of credit
2021 v 2020 Risk appetite Link to strategy decisions by department heads to the CEO, enhancement tools, seeking letters of credit,
CFO and CRO, relating to unsecured amounts insurance cover, discounting, and other
High in excess of $75 million with BBB- or lower rated means of reducing credit risk with
counterparts. counterparts. Where desirable and possible,
Medium
credit exposures are to be covered through
Low Developments credit mitigation products.
Some of our customers and suppliers are
experiencing financial difficulties particularly We monitor the credit quality of our physical
We are subject to non-performance risk by
arising from Covid-19 or the recent material and hedge counterparties and seek to reduce
our suppliers, customers, and hedging
price volatility in some commodity markets. the risk of customer default or non-
counterparties, in particular via our
However, the overall credit quality of our performance by requiring credit support from
marketing activities.
counterparty portfolio significantly improved creditworthy financial institutions.
Description and potential impact in 2021 as global economic growth improved, Specific credit risk rules apply to open
Financial assets consisting principally of Covid-19 restrictions eased and, in particular, account risk with an established threshold for
receivables and advances, derivative energy prices rebounded strongly. We have referral of credit positions by departments to
instruments and long-term advances and regular contact with our key counterparties central management.
loans can expose us to concentrations of and, in the vast majority of cases, deliveries and
credit risk. payments have continued in the normal course
Non-performance by suppliers, customers of business.
and hedging counterparties may occur and The Group’s accounts receivable balance,
cause losses in a range of situations, such as: including assessment of doubtful accounts,
• a significant increase in commodity prices

resulting in suppliers being unwilling to
is set out in note 14.
honour their contractual commitments to

sell commodities at pre-agreed prices;
• a significant reduction in commodity prices
resulting in customers being unwilling or
unable to honour their contractual
commitments to purchase commodities at
pre-agreed prices; and
• suppliers subject to prepayment may find
themselves unable to honour their
contractual obligations due to financial
distress or other reasons

Many employees, especially at the Group’s Developments Cost control remains a significant area of
7. Operating industrial activities, are represented by labour Businesses continued to be affected by the management focus, noting that in the context
unions under various collective labour Covid-19 pandemic. The response to the of mineral resources, absolute costs tend to
agreements. Their employing company may pandemic has varied by jurisdiction, with increase over time as incremental resources are
2021 v 2020 Risk appetite Link to strategy not be able to satisfactorily renegotiate its likely further away from the processing plant
authorities imposing different requirements,
High collective labour agreements when they often changing as the pandemic evolves. and/or deeper with sometimes decreasing
expire and may face tougher negotiations or Operations sought to develop protocols/ grades. A number of operations have adopted
Medium higher wage demands than would be the working practices to minimise virus structured programmes to analyse their costs
case for non-unionised labour. In addition, transmission risks in the workplace. Some and identify marginal savings which are then
Low
existing labour agreements may not prevent businesses continued to be affected as a implemented. Maintenance and, where possible,
a strike or work stoppage. result of new outbreaks which led to reduction of unit costs is regularly reviewed
Our industrial activities are subject to a level
challenges such as the inability to mobilise by management.
of significant residual risk throughout each The development and operating of assets may
operation’s life cycle, from initiation through lead to future upward revisions in estimated skilled resources when required. Infrastructure availability remains a key risk.
development, operation and/or expansion costs, delays or other operational difficulties or Glencore’s Nickel operations in New Exposures continue to include the delivery of
and ultimate closure damage to properties or facilities. This may Caledonia continued to face particular reliable electrical power to our DRC
cause production to be reduced or to cease operating challenges; in 2021 there was a operations. This has improved over the last
Description and potential impact
and may further result in personal injury or significantly extended shutdown on a furnace several years but is not yet at a consistent level
Notwithstanding our enterprise risk death, third party damage or loss or require of reliability, and management continues to
because of the pandemic leading to an
management practices, some of these risks are greater infrastructure spending. Also, the work with local entities to improve the service.
extended run time on the other furnace
beyond our control. These include a level of realisation of these risks could require Our South African operations have been
resulting in difficulties being experienced
geological risk relating to factors such as significant additional capital and significantly adversely affected by local rail
with this furnace. We continue to experience
structure and grade as well as geotechnical operating expenditures. and power issues. Our Astron Energy refinery
challenges with this complex operation.
and hydrological risks, natural hazards, continues to carry out repairs to the refinery
processing problems, technical malfunctions, Some of the Group’s interests in industrial Following a detailed business review, following the 2020 explosion which tragically
unavailability of materials and equipment, assets do not constitute controlling stakes. Glencore disposed of its majority stake in also resulted in the loss of two lives. Improved
unreliability and/or constraints of Although the Group has various agreements Mopani in Zambia. The structure of the governance and operating management
infrastructure, industrial accidents, labour in place which seek to protect its position transaction should result in some recovery of systems are being developed and
force challenges, disasters, protests, force where it does not exercise control, the other the residual economic value in the asset implemented to address the underlying
majeure factors, cost overruns, delays in shareholders in these entities may have whilst reducing operating and country risks issues that led to the incident.
permitting or other regulatory matters, interests or goals that are inconsistent with that had proven to be challenging.
vandalism and crime. ours and may take action contrary to the Despite the challenges created by the global
Group’s interests or be unable or unwilling to pandemic, we have maintained engagement
The maintenance of positive employee and fulfil their obligations. campaigns with employees to receive direct
union relations and engagement, and the feedback on the Group’s culture and practices.
ability to attract and retain skilled workers, Severe operating or market difficulties may
including senior management, are key to our result in impairments, details of which are
success. This attraction and retention of recorded in note 7.
highly qualified and skilled personnel can be
challenging, especially in locations
experiencing political or civil unrest, or in
which employees may be exposed to other
hazardous conditions.

Mitigating factors learning makes it easier to manipulate audio to ensure administrator rights on critical
Development and operating risks and 8. Cyber content that could be used in phishing or fraud systems are protected. We have multiple layers
hazards are managed through our attacks by impersonating senior executives. of email security and harden our computers and
continuous project status evaluation and servers to protect against malware. Corporate
2021 v 2020 Risk appetite Link to strategy Although Glencore invests heavily to monitor,
reporting processes and ongoing applications and communications are secured
maintain, and regularly upgrade its systems,
assessment, reporting and communication High with multiple layers of security including
processes and networks, absolute security is
of the risks that affect our operations along two-factor authentication and virtual private
Medium not possible.
with updates to the risk register. network (VPN) technology for remote access.
Low Developments We use global IT security platforms to
We publish our production results quarterly
Our cyber security monitoring platforms proactively monitor and manage our cyber
and our assessment of reserves and resources
A cyber security breach, incident or failure frequently detect attempts to breach our risks. We routinely conduct third party
based on available drilling and other data
of Glencore’s IT systems could disrupt our networks and systems. During 2021, none of penetration tests to independently assess the
sources annually. Conversion of resources to
businesses, put employees at risk, result in these events resulted in a significant breach security of our IT systems. We have a dedicated
reserves and, eventually, reserves to
the disclosure of confidential information, of our IT environment nor resulted in any programme to enhance the monitoring and
production is an ongoing process that takes
damage our reputation, and create significant material business impact. security of our Operational Technology
into account technical and operational
factors, economics of the particular financial and legal exposure for the Group. Covid-19 has increased the degree of remote (OT) platforms.
commodities concerned and the impact on Description and potential impact working and the potential attack surface area. Our IT Security Council sets the global cyber
the communities in which we operate. We continue to witness a heightened level of security strategy, conducts regular risk
Cyber risks for firms have increased significantly
in recent years owing in part to the proliferation sophistication and frequency of cyberattacks assessments, and designs cyber security
Local cost control measures are complemented
of new digital technologies (e.g. ransomware), against all firms. solutions that seek to protect against
by global procurement that leverages our scale
to seek to achieve favourable terms on nation-state activity, increasing degree of We anticipate that ‘supply chain cyberattacks’ emerging malware, viruses, vulnerabilities,
high-consumption materials such as fuel, connectivity and a material increase in through which legitimate third party software and other cyber threats. Our Cyber Defence
explosives, and tyres. monetisation of cybercrime. is manipulated in an attempt to spread malware Centre is responsible for day-to-day
or gain access to systems will increase. We also monitoring of cyber vulnerabilities across
One of the key factors in our success is a good Our activities depend on digital capabilities the Group and driving remediation of threats.
for industrial production, efficient operations, expect that ransomware will remain an area of
and trustworthy relationship with our people. We have an incident response team that is
environmental management, health and safety, heightened threat focus.
This priority is reflected in the principles of our accountable for coordinating the response
sustainability programme and related guidance, communications, transaction processing and Mitigating factors in the event of a major cyber incident.
which require regular, open, fair, and respectful risk management. We also depend on third We publish IT security standards and
communication, zero tolerance for human rights parties in long supply chains that are exposed During 2021, we continued to implement
proactively educate our employees in order
violations, fair remuneration and, above all, to the same cyber risks, but which are largely new capabilities to further enhance
to raise awareness of cyber security threats.
a safe working environment as outlined in outside our control. protection against ransomware, enhance
the Our people section on page 34 and our Where possible, cyber exposure risks are perimeter security and enhance the security
The security of long interconnected mitigated through layered cyber security, of our OT platforms.
website at: glencore.com/careers/our-culture
commodity supply chains is an area of proactive monitoring, and independent cyber
concern that we monitor closely to reduce security penetration tests to confirm the
the impact on the Group. security of systems.
The emergence of machine learning and We seek to keep our system software patches
artificial intelligence increases the volume up to date and have global platforms to
and sophistication of fraud attempts. The rise proactively manage patch compliance. We have
of ‘Deepfake’ technology using machine adopted strict privileged access management

Environmental, safety and health regulations communication and response support for our building for our employees in tailings
9. Health, safety, and environment may result in increased costs or, in the event global industrial and marketing teams, management, and environmental, closure,
of non-compliance or incidents causing injury resolving potential threats to business and community-related practices.
or death or other damage at or to our facilities continuity, and focusing on the health and
2021 v 2020 Risk appetite Link to strategy We regret that we have recorded 4 fatalities at
or surrounding areas, may result in significant well-being of our workforce. In June 2021,
our operations (2020: 8). Our Board and senior
High losses. Failure to perform well may have Glencore developed its Covid-19 Vaccination
management are committed to ongoing
long-term negative impacts for host Policy and Guiding Principles, in consultation
Medium efforts to improve practices to provide a safe
communities and erode trust in the integrity with leading medical experts and released it
working environment. No major or
Low of our organisation. Examples include, those to the business.
catastrophic environmental, community or
arising from (1) interruptions in production,
Starting In 2020 and continuing through 2021, human rights incidents have occurred during
litigation and imposition of penalties and
Industrial operations are inherently we conducted a review of our SafeWork the year.
sanctions, (2) having licences and permits
dangerous. Catastrophic events that take programme, which is Glencore’s approach to
withdrawn or suspended while being forced Mitigating factors
place in the natural resource sector can have eliminating fatalities. SafeWork focuses on
to undertake extensive remedial clean-up We are committed to ensuring the safety and
disastrous impacts on workers, identifying and managing the hazards in
action or to pay for government-ordered wellbeing of our people, communities, and
communities, the environment, and every workplace and is built on a set of
remedial clean-up actions, and (3) paying environment around us.
corporate reputation, as well as a substantial minimum expectations and mandatory
compensation and reparations to negatively
financial cost. protocols, standards, behaviours, and safety We implement Health, Safety, Environment,
impacted communities.
tools. Well-led, consistent application of Community and Human Rights (HSEC&HR)
Liability may also arise from the actions of any SafeWork drives operating discipline and policies and standards designed to (1) protect
The success of our business is dependent on a previous or subsequent owners or operators prevents fatal incidents.
safe and healthy workforce. Identifying and our people, communities, and the
of the property, by any past or present owners environment, and (2) ensure we comply with
managing risks to the safety and health of our Reflecting the review’s findings, we launched
of adjacent properties, or by third parties. laws and external regulations.
people is essential for their long-term a refreshed SafeWork in early 2021, which
wellbeing. It also helps us to maintain We operate in some countries characterised included performance expectations and 2022 Our approach to the management of health,
our productivity. with complex and challenging political and/or and 2023 targets. The Group continues to safety and the environment and our
social climates. This results in a residual risk for invest in its sustainability risks assurance expectations of our workers and our business
A number of our assets are in regions with compliance with our HSEC&HR policies and process and its focus continues to be on the
poor approaches towards personal safety, partners, are outlined in our policies and
standards, as well as with external laws Group’s HSEC catastrophic hazards. standards. These underpin our approach
little or no access to health facilities, and poor and regulations.
working conditions, and organisational We continued the implementation of our towards social, environmental, health, safety,
cultures. Developments Group-wide Tailings Storage Facility and Dam and compliance indicators, providing clear
Management Standard throughout the guidance on the standards we expect all our
In response to Covid-19, Glencore focused on
Our operations around the world can have business and participated in the development operations to achieve.
efforts to ensure the resilience of the business,
direct and indirect impacts on the of the new Global Industry Standard on
including daily monitoring of global During 2021, the corporate HSEC&HR team
environment and host communities. Our Tailings Management, in association with
conditions, anticipation of potential impacts, continued its work in enhancing Group-level
ability to manage and mitigate these may International Council on Mining & Metals
and development of action plans and controls HSEC&HR governance and technical
impact maintenance of our operating licences member companies. In collaboration with
to mitigate risks. At the start of the crisis, the standards to ensure an efficient and
as well as affect future projects, acquisitions, industry tailings experts, we also initiated the
corporate Covid-19 Global Response Incident consistent approach to managing HSEC&HR
and our reputation. development of our Tailings Management
Management Team and Steering Committee related issues across the business.
were established to maintain continuous Academy, to provide training and capacity-

We are working towards creating a workplace

without fatalities, injuries, or occupational 10. Climate change
• import duties / carbon taxes in our
customer’s markets potentially affect our
Socio-economic concerns associated with the
transition to a low-carbon economy may
diseases through establishing a positive access to those markets as well as our increase expectations of our closure plans and
safety culture. We strive to achieve our commodities’ delivery costs increase closure liabilities.
ambitions of zero workplace fatalities and no
major or catastrophic environmental incidents.
2021 v 2020 Risk appetite
High
Link to strategy
• increased costs for energy and for
other resources, which may impact
There has been a significant increase in
litigation (including class actions), in which
the productivity of our assets and
Our commitment to complying with or Medium climate change and its impacts are a
associated costs 
exceeding the health, safety and
environmental laws, regulations, and best Low • the imposition of levies related to
greenhouse gas emissions
contributing or key consideration, including
administrative law cases, tortious cases and
•
practice guidelines applicable to our claims brought by investors. In particular, a
operations and products is driven through our Climate change is a material issue that can impacts on the development or number of lawsuits have been brought
sustainability and policies frameworks. affect our business through regulations to maintenance of our assets due to against companies with fossil fuel operations
reduce emissions, carbon pricing restrictions in operating permits, licences, in various jurisdictions seeking damages
We remain focused on the significant risks mechanisms, extreme climatic events, or similar authorisations. related to climate change.
facing our industry arising from operational access to capital, permitting risks and
catastrophic events and take steps to These cost increases are likely to reduce Developments
fluctuating energy costs, as well as
implement appropriate controls to mitigate demand for fossil fuels and could lead to coal The commitments made by a number of
changing demand for the commodities we
them. assets no longer being economically viable. countries, including China, Australia and the
produce and market. We consider our risk
appetite as high due to our significant Variations in commodity use from emerging US, to achieve carbon neutrality by 2050 or
We work with local authorities, local
exposure to coal producing assets. technologies, moves towards renewable 2060, and subsequent introduction of
community representatives and other
energy generation and policy changes may supporting policies, such as import taxes and
partners, such as NGOs, to help overcome Description and potential impact affect demand for our products, both carbon trading mechanisms, are a strong
major public health issues in the regions
A number of governments have already positively and negatively. Some may choose indicator of the pace of change and the
where we work, such as Covid-19, HIV/AIDS,
introduced or are contemplating the not to invest in or transact with us, due to our longer-term global trajectory. New European
malaria and tuberculosis.
introduction of regulatory responses to fossil fuels operations. regulation, particularly the ‘EU Taxonomy’ and
Further details will also be published in our support the achievement of the goals of the the ‘EU Green Deal’ is likely to accelerate the
2021 Sustainability Report. Paris Agreement and the transition to a Climate change may increase physical risks to flow of capital to products and technologies
low-carbon economy. This includes countries our assets and related infrastructure, largely needed in the low-carbon economy, and
There can be no assurances that our policies, where we have assets such as Australia, driven from extreme weather events and place greater scrutiny on the carbon footprint
standards, procedures and guidelines will Canada, Chile, and South Africa, as well as our water related risks such as flooding or of European industrial companies, as well as
protect the Group against health, safety, and customer markets such as China, South water scarcity. on those importing products into the
environmental risks. Korea, Japan, United States and Europe.
Implementing low-carbon processes and Eurozone. This is relevant for Glencore
technologies at our assets may increase our because of the carbon footprint of
A transition to a low-carbon economy and its
operating costs, while also potentially our products.
associated public policy and regulatory
developments may lead to: growing/changing our customer base. While the transition to renewables
• the imposition of new regulations, and

climate change related policies on fossil
Social concerns may increase pressure to
divest our coal assets, limit/stop our access to
technologies continues to accelerate, the
global economic recovery from Covid-19 has
finance, close assets and impact our ability to highlighted the ongoing importance in the
fuels by actual or potential investors,
optimise our portfolio. short term of traditional fuels in meeting
customers, and banks, that potentially
global energy needs.
impacts Glencore’s reputation, access to
capital and financial performance

Mitigating factors We monitor and report our Scope 1, 2 and 3 We have a geographically diverse business,
We seek to integrate climate considerations, emissions, and use this data in managing our 11. Community relations operating in both developed and developing
operational carbon footprint, as well as for the countries in an array of different contexts. In a
such as energy and climate policies in and human rights
countries where we operate and sell our development and tracking of our targets. number of regions where we operate, the
products, expectations of our value chains, socio-political environment is complex which
To better understand and plan for the effects
and the various commitments to achieve 2021 v 2020 Risk appetite Link to strategy presents additional business, social and security
of climate change on our business, we have a
the goals of the Paris Agreement, into our risks if not well understood and managed.
framework for identifying, understanding, High
strategic decisions and day-to-day quantifying and, ultimately, managing The consequences of adverse community
operational management. climate-related challenges and opportunities Medium reactions or allegations of human rights
We balance our ownership of coal assets with facing our portfolio which covers Government Low incidents could also have a material adverse
our interests in our metals’ businesses which policy, lobbying activities, carbon pricing, impact on the cost, profitability, ability to
are considered crucial to the green economy energy costs, physical impacts, access to We have a geographically diverse business, finance or even the viability of an operation
such as copper, nickel, and cobalt. capital, permitting risk, product demand and operating in both developed and developing and the safety and security of our workforce
litigation risks. countries in an array of different contexts. and assets. In addition, global connectivity
Our internal Climate Change Taskforce, led by means that local issues can quickly escalate
Further information is available at: A perception that we are not respecting
our CEO, co-ordinates our analysis and to a regional, national and global level
glencore.com/sustainability/climate-change human rights or generating local sustainable
planning of the effects of climate change on potentially resulting in reputational damage
benefits could have a negative impact on our
our business. and social instability.
ability to operate effectively, our reputation
We have set ourselves a short-term target of with stakeholders, our ability to secure access Some of our mining operations are in remote
an absolute 15% reduction of our total to new resources, our capacity to attract areas where they are a major employer in the
emissions (Scope 1, 2 and 3) by 2026, and a and retain the best talent and ultimately, region. This presents particular social
medium-term target of an absolute 50% our financial performance. challenges when the mine’s resources are
reduction of our total emissions by 2035. Our depleted to an extent that it is no longer
medium-term target is consistent with the economic to operate and must be closed.
midpoint of Intergovernmental Panel on Respecting human rights and building strong
relationships are fundamental to the current Robust planning and stakeholder
Climate Change’s 1.5°C scenarios, and with the engagement are key to mitigating
Net Zero scenario set out by the International and future viability of our business.
environmental and social closure risks.
Energy Agency. Post 2035, we have set Areas that may be affected negatively include
ourselves the ambition to achieve, with a the health and safety of our workforce and The destruction of indigenous cultural heritage
supportive policy environment, net zero total surrounding communities, environmental during mining activities in Australia has
emissions by 2050. damage and interactions with individuals highlighted the need for effective management
and groups who live and work in or near our processes and engagement, to protect areas
local communities. Poor performance can and items of cultural significance, and to avoid
contribute to social instability and the business and reputation risks.
perceived and real value of our assets.

Developments Mitigating factors We seek to apply the UN Voluntary Principles Our approach to ASM considers how ASM and
During 2021, Covid-19 continued to impact Our approach is to minimise the local on Security and Human Rights in regions large-scale mining can sustainably co-exist as
people’s quality-of-life and contributed to detrimental impacts of our business, engage where there is a high risk to human rights distinct yet complementary sectors of a
localised areas of uncertainty around the openly and honestly to build lasting from the deployment of public and private successful mining industry. We believe that
world. Our first and foremost priority during relationships and foster socio-economic security forces. legal ASM can play an important and
the pandemic has been the health and resilient communities. sustainable role in many economies when
We respect communities’ perspectives and
wellbeing of our employees and communities, carried out responsibly and transparently,
In 2021, we enhanced our Closure Planning actively seek to consult with them to inform
especially vulnerable groups. We have sought including the DRC. We partner with the Fair
expectations and governance through our our decision-making. Our ambition is to be a
to support our communities by augmenting Cobalt Coalition, an NGO aiming to positively
new Closure Planning Standard to ensure responsible, engaged and valued company
communication programmes to promote transform ASM in the DRC. It is working
consistent and proactive performance in this wherever we operate and to contribute to
prevention measures, providing basic towards eliminating child and forced labour,
important aspect of our operations’ lifecycle. healthy, resilient communities. We support
sanitation and medical materials and improving work practices in ASM operations
the advancement of the interests of both our
supporting local health systems and services. While our Group policies and standards apply and supporting alternative livelihoods to help
host communities and our assets.
to all our businesses, we tailor our community increase incomes and reduce poverty.
We continue where possible to work to We seek to build enduring and trusting
approach to be relevant and appropriate to We continue to review and implement new or
support local health authorities in encouraging relationships by engaging openly and
the local context. We strive to uphold and revised policies concerning cultural
and delivering vaccines, where needed. honestly and participating as an active
respect the human rights of our workforce, heritage management.
The ensuing economic impacts of Covid-19 local communities and others who may be member of society. We focus our social
have amplified existing inequalities around affected by our activities, in line with the investments on initiatives and programmes Further information is available on our
the world, resulting in an escalation of civil United Nations Guiding Principles on to deliver long-term benefits fostering website at: glencore.com/sustainability/
unrest in many countries. In the Espinar Business and human rights (UNGPs), and socio-economic resilience. community-and-human-rights
region of Peru, social protests impacted our support resilience and capacity within our We implement locally appropriate complaints
Antapaccay operation. The government host communities. We have processes to and grievance processes in line with the UNGPs
deployed public security to return law and identify, prevent and mitigate human rights and welcome feedback and comments on our
order in the region around the operation risks and impacts across our business, and are performance. We review all complaints received
without harm to community members, committed to understanding and and take actions when necessary to address
security forces or our workforce. documenting the social risk and opportunities the issues raised.
in the communities in which we operate. In
Artisanal and small-scale mining (ASM) During late 2020, our Social Performance and
the event that we cause or contribute to a
continues to be a challenge at certain Human Rights policies were updated
negative impact on human rights, we strive to
operations, most notably in the DRC. An area following consultation with external subject
provide appropriate remedy to those affected
of the Mutanda permits, Chabara, has been matter experts and internal and external
in line with the UNGPs.
illegally occupied by ASM cooperatives stakeholders. In 2021 we reviewed and/or
supported by semi-mechanised operators. updated our Social Performance, Human
We have been engaging with DRC authorities Rights and Security Standards.
to try to recover control of Chabara following a
peaceful relocation of the ASM cooperatives.

Chairman’s Governance Statement A complete succession of all the main

department leadership roles which had
We were also the first of our peers to provide
shareholders with a say on our climate policy
started at the beginning of 2019 was also in a similar way as we do on pay: having put
completed last year in concert with Gary’s our policy to a vote at last year’s AGM – on
Dear Shareholders appointment. It says a lot about Glencore’s which there was a 94% vote in favour – we will
The year 2021 has been one of dynamic culture that the original management who this year table our progress report for
change for Glencore. The Company said are major shareholders had remained at the shareholders to advise the Company as to
farewell to Ivan Glasenberg after almost 20 Company for so long after its IPO in 2011. It is whether they support the progress or not, in
years of remarkable leadership. This was also a testament to the strength of the the same way as update votes on the
capped with a long planned and effective Company that the succession was completed implementation of our remuneration policy
succession to Gary Nagle who has seamlessly with all being internal promotions. are tabled every year to shareholders.
stepped into the very demanding role that We announced last month a provision for our It was a pleasure to be able to engage with
being the CEO of Glencore entails. current best estimate of the costs to resolve many of our large shareholders in the autumn,
Shortly afterwards the Board selected me as the U.S., UK and Brazilian investigations of whether in person or on video. I look forward
Tony Hayward’s successor as Chairman. $1.5 billion. We continue to work hard to bring to continuing this dialogue this year as
these and the other investigations in the Glencore seeks to continue to improve in ESG
The Board has also continued its process Group to a close. matters to complement its outstanding
of renewal. Tony left us after more than 10 financial performance. The Board remains
years on the Board. He had originally been The report from the Board HSEC committee
determined to ensure all the Group’s
appointed as the Senior Independent Director sets out a summary of the considerable work
stakeholders see Glencore not only as the
Kalidas Madhavpeddi, Chairman on the IPO in 2011 and succeeded to the Chair that continues across all areas of the Group’s
leading resources company but also as a
two years later following the Xstrata health, safety, environment and communities’
reliable and trusted partner.
acquisition. John Mack retired in April programme. This has always been an area in
following 8 years of service on our Board. We which the Board has demonstrated strong Kalidas Madhavpeddi
thank them again for their dedication to the leadership and this will continue. Chairman
Board and the Company. We are pleased to 15 March 2022
Climate remains centre stage for the Board.
have Cynthia Carroll and David Wormsley join We have established our industry leading
us last year. Cynthia had a long track record in credentials in publishing our Scope 3 targets.
the industry culminating in being the CEO of
Anglo American, while David brings a wealth Reflecting additional work on our emissions
of UK market knowledge and global profile and opportunities to deliver
investment banking experience. Both have reductions, in 2021 we strengthened our
made a strong start. We look forward to medium-term emissions reduction target
making a further appointment to the Board and introduced a new short-term target. We
this year. Diversity remains an important are now committed to reducing total
objective and all except one of our Board emissions (Scope 1+2+3) by 15% by 2026 and
Committees are led by diverse directors. 50% by 2035, both on 2019 levels. Post 2035,
While diversity remains a key aim, Boards our ambition is to be a net zero total emissions
must also not lose sight of the need to by 2050, assuming a supportive policy
concentrate on core skills. environment.

Directors and officers
Directors
Experience Experience
Notes Kalidas Madhavpeddi has Gary Nagle joined Glencore
over 40 years of experience in in 2000 in Switzerland as
All the Directors are non-executive apart from the CEO. the international mining part of the Coal business
The Chairman is considered not to be independent due to industry, including being CEO development team. He was
the nature of his role. Mr Madhavpeddi was independent of CMOC International, the heavily involved in seeding a
up to his appoinrment to the role of Chairman. The remaining operating subsidiary of China portfolio of assets to Xstrata
Non-Executive Directors are designated as independent Molybdenum Co Ltd (China in 2002, in conjunction with
apart from Mr Coates. Moly), from 2008 to 2018. its initial listing on the
London Stock Exchange.
Committee membership is as follows: His career started at Phelps
Dodge, where he worked Mr Nagle worked for five
Kalidas Madhavpeddi from 1980 to 2006, ultimately Gary Nagle years (2008-2013) in
Audit becoming senior VP Colombia as CEO of
A Chairman (66) responsible for the Chief Executive Officer Glencore's Prodeco
company’s global business (47) operation. He then moved to
E Ethics, Compliance and Culture (ECC) H R development, acquisitions South Africa to be Head of
I N
and divestments, as well as Glencore's Ferroalloys assets
Health, Safety, Environment its global exploration (2013-2018). Following that he
H and Communities (HSEC) Appointed in February 2020. programs. Mr Madhavpeddi Joined Glencore in 2000; was the Head of Glencore’s
is currently a director of Chief Executive Officer since Coal Assets based in
Novagold Resources July 2021. Australia. He also served on
I Investigations
(TSX:NG), Trilogy Metals the Board of Lonmin plc from
(TSX:TMQ), and Dundee 2013 - 2015 and has
N Nomination Precious Metals Inc (TSX: represented Glencore on the
DPM). He was formerly Minerals Councils of Australia
director and chair of the and Colombia.
R Renumeration governance committee of
Mr Nagle has commerce and
Capstone Mining (TSX:CS). He
accounting degrees from the
denotes commitee chair has degrees from the Indian
University of the
Institute of Technology,
Witwatersrand, and qualified
Madras, India and the
as a Chartered Accountant in
University of Iowa and has
South Africa in 1999.
completed the Advanced
Management Program at
Board diversity Harvard Business School.
Pages 89 & 95

Directors
Experience Experience Experience

Martin Gilbert is Chairman of Peter Coates worked in Following initial roles with
AssetCo plc (LON:ASTO) and senior positions in a range of Molson and Canadian Pacific,
Revolut Limited. resource companies before Patrice Merrin worked at
joining Glencore’s coal unit as Sherritt for ten years until
Mr Gilbert co-founded
a senior executive in 1994. 2004, latterly as COO. She
Aberdeen Asset
When Glencore sold its then became CEO of Luscar.
Management in 1983, leading
Australian and South African She is currently non-
the company for 34 years and
coal assets to Xstrata in 2002 executive chair of Metals
overseeing its 2017 merger
he became CEO of Xstrata’s Acquisition Corp. and a
with Standard Life. He is also
coal business, stepping down non-executive director of
chair of Toscafund and
in December 2007. Samuel, Son & Co. Limited.
Martin Gilbert Saranac Partners. He was Peter Coates AO Patrice Merrin
deputy chair of the board of He was non-executive She was non-executive chair
Senior Independent Sky PLC until 2018. He was Non-Executive Director chairman of Xstrata Australia Non-Executive Director of Detour Gold Corporation
Director (66) formerly co-CEO of Standard (76) (2008–09), Minara Resources (73) (TSX:DGC) from June 2019 to
Life Aberdeen. Ltd (2008–11) and Santos Ltd January 2020 and non
(2009–13 and 2015–18). He is executive director of
A I N R Mr Gilbert is a member of the E H N E H I N
currently a non-executive Stillwater Mining Company
International Advisory Board
director of Event Hospitality (NYSE:SWC) from 2013 to
of British American Business. Non-Executive Director since Appointed in June 2014.
Senior Independent Director and Entertainment Ltd 2017.
since May 2018; appointed in Mr Gilbert was educated in January 2014; previously (ASX:EVT).
Executive Director from June Ms Merrin chaired CML
May 2017. Aberdeen. He has an LLB, an
to December 2013 and Mr Coates holds a Bachelor of Healthcare and was also a
MA in Accountancy and is a
Non-Executive Director from Science degree in Mining director of Arconic Inc., NB
Chartered Accountant.
April 2011 to May 2013. Engineering from the Power, and the Alberta
University of New South Climate Change and
Wales. Emissions Management
Corporation.
He was appointed as an
Officer of the Order of Ms Merrin is a graduate of
Australia in June 2009 and Queen’s University, Ontario
awarded the Australasian and completed the
Institute of Mining and Advanced Management
Metallurgy Medal for 2010. Programme at INSEAD.

Directors
Experience Experience Experience

Gill Marcus was Governor of Cynthia Carroll has over 30 David Wormsley worked in
the South African Reserve years’ experience in the investment banking for 35
Bank from 2009–14. resources sector. She began years. His last position at
her career as an exploration Citigroup was Chairman, UK
She worked in exile for the
geologist at Amoco before banking and broking when
African National Congress
joining Alcan. She held he retired in March 2021. Mr
from 1970 before returning to
various executive roles there Wormsley led a wide variety
South Africa in 1990. In 1994
culminating in being CEO of of corporate transactions in
she was elected to the South
the Primary Metal Group, the UK and internationally,
African Parliament. In 1996
Alcan’s core business. From including IPOs and equity
she was appointed as the
2007 to 2013 she served as fundraising, both public and
Gill Marcus deputy minister of finance Cynthia Carroll David Wormsley
CEO of Anglo American plc. private, mergers &
and from 1999 to 2004 was
acquisitions and debt
Non-Executive Director deputy governor of the Non-Executive Director Ms Carroll is currently a Non-Executive Director
financing. During his period
(72) Reserve Bank. (65) non-executive director of (61) of management, Citigroup
Hitachi, Ltd (TYO: 6501), Baker
Ms Marcus was the non- successfully acquired and
Hughes Company (NYSE:
A E N executive chair of the Absa H N R H N integrated the majority of
BKR) and Pembina Pipeline
Group from 2007–09 and has ABN Amro’s broking
Corporation (TSE: PPL).
been a non-executive business. Under his
Appointed in January 2018. Appointed in February 2021. Appointed in October 2021.
director of Gold Fields Ltd She is a fellow of the Royal leadership, the Citigroup UK
and Bidvest. She has acted as Academy of Engineers and a M&A franchise was ranked
chair of a number of South Fellow of the Institute of between number 1 and 5 in
African regulatory bodies. Materials, Minerals and the market.
From 2018 to 2019, she was Mining.
Mr Wormsley is currently a
appointed to the Judicial
Ms Carroll holds a Bachelor’s non-executive director of
Commission of Inquiry into
degree in Geology from Stanhope plc and a Governor
allegations of impropriety at
Skidmore College (NY), a of the Museum of London. He
the Public Investment
Master’s degree in Geology holds an economics degree
Corporation.
from the University of Kansas from Downing College,
Ms Marcus is a graduate of and a Masters in Business Cambridge.
the University of South Africa. Administration from Harvard
University.

Officers
Experience Experience
Mr Kalmin joined Glencore in From 2006 to 2011, Mr Burton Board tenure
September 1999 as general was company secretary and
manager of finance and general counsel of Informa
treasury functions at plc, where he established the
Glencore’s coal industrial unit group legal function and a
0-2 yrs
in Sydney. He moved to new company secretarial
Glencore’s head office in team. Before that he had 3-6 yrs
2003 to oversee Glencore’s been a partner of CMS in 7-9 yrs
9+ yrs
accounting function, London for 8 years, advising
becoming CFO in June 2005. on a broad range of corporate
From November 2017 to June and securities law matters.
Steven Kalmin 2020 he was a director of John Burton
Mr Burton holds a B.A.
Katanga Mining Limited (TSX:
Chief Financial Officer Company Secretary degree in Law from Durham
KAT).
(51) (57) University. He was admitted
Mr Kalmin holds a Bachelor as a Solicitor in England and Board diversity
Appointed as Chief Financial of Business (with distinction) Appointed Company Wales in 1990.
Officer in June 2005. from the University of Secretary in September 2011. 37.5%
Technology, Sydney and is a
member of Chartered
Accountants Australia and Male
New Zealand and the Female
Financial Services Institute of
Australasia.
Before joining Glencore, Mr
Kalmin worked for nine years 62.5%
at Horwath Chartered
Accountants.

Corporate governance report In accordance with provision 19 of the Code,

the following serves as explanation for the
Division of responsibilities
As a Jersey incorporated company, Glencore
extended tenure of Dr Hayward until 30 July has a unitary Board, meaning all Directors
2021. In early 2020, we consulted with our share equal responsibility for decisions taken.
This report should be read in conjunction with largest institutional shareholders regarding Glencore has established a clear division
the Directors’ report and the remainder of the his tenure on the Board which was to exceed between the respective responsibilities of the
nine years in May 2020. This had clear support Non-Executive Chairman and the Chief
Governance section. and the shareholders vote at the 2020 AGM in Executive Officer, which are set out in a
favour of his reappointment exceeded 96% of schedule of responsibilities approved by the
those cast. The Board reconsidered his Board and reviewed annually. While the
position prior to the 2021 AGM and continued Non-Executive Chairman is responsible for
Board governance and structure
This Governance report, along with the
• Provision 21, regarding externally facilitated
Board evaluation – during the year there
to believe that, until the management
succession was complete, it was in the
leading the Board’s discussions and decision-
making, the CEO is responsible for
Strategic report and the Directors’ report, sets were broad changes to the Board: shareholders’ interest that he remained as implementing and executing strategy and for
out how Glencore has complied with the Chairman for a final period. Following further leading Glencore’s operating performance
– the previous Chairman, Tony Hayward,
principles and provisions of the 2018 UK consultation, shareholders remained and day-to-day management. The Company
retired from the Board and was replaced
Corporate Governance Code (the Code) in a supportive and so he was nominated again at Secretary is responsible for ensuring that
by Mr Madhavpeddi;
manner which enables shareholders to the 2021 AGM, receiving a 94% vote in favour. there is clear and effective information flow to
– the CEO, Ivan Glasenberg, retired from He retired on 30 July. the Non-Executive Directors.
evaluate how these principles have been
the Board and was replaced as CEO and
applied. The Board believes that the Company During 2021, due to the changes listed below, The CEO, CFO and General Counsel have line
Director by Mr Nagle;
has throughout the year complied with all the Board comprised either six, seven or eight of sight across the Group. Together with the
relevant provisions contained in the Code – John Mack retired from the Board;
Non-Executive Directors (including the Head of Industrial Assets, they lead our
except for: – Ms Carroll and Mr Wormsley were
Chairman) and one Executive Director. A list of management team supported by the heads
•
appointed to the Board; and
Provision 24, regarding membership of the current Directors, with their brief of each marketing and industrial department
– there were significant changes to the
Audit Committee – Mr Madhavpeddi biographical details and other significant and the heads of corporate functions.
Committees including a change of Chair
became Chairman of the Board on 30 July commitments, is provided in the previous
of all the Board Committees except for
2021 and had been Chair of the Audit pages.
HSEC (see below).
Committee since August 2020. He
Therefore, the Directors agreed that it was Retirements Appointments
remained Chair of the Audit Committee
more appropriate to delay the external John Mack, Cynthia Carroll,
until 1 October 2021 when Ms Marcus was
evaluation by one year. 29 April 2021 2 February 2021
appointed as Chair.
• Provision 17 regarding membership of the
Nomination Committee – from 1 October
A revamped internal evaluation was
conducted instead (see page 94).
Ivan Glasenberg,
30 June 2021
Gary Nagle,
1 July 2021
until 31 December 2021 the Committee Anthony Hayward, David Wormsley,
comprised Mr Madhavpeddi (designated 30 July 2021 15 September 2021
independent on appointment), Mr Coates
(considered non-independent), and Ms The Chief Financial Officer attends all
Marcus (independent). From 1 January 2022, meetings of the Board and Audit Committee.
all other remaining Non-Executive Directors
The Company Secretary attends all meetings
(all of whom are independent) were
of the Board and its Committees.
appointed as members of the Nomination
Committee.

Corporate governance report continued
Roles and responsibilities

Board attendance throughout the year
Chairman Other Non-Executive Directors
• Leading the Board • Challenging the Chief Executive Officer
Attendance during the year for all scheduled full agenda Board and all permanent Board
•
Committee meetings is set out in the table below:
Shaping the culture in the boardroom and senior management constructively
• Promoting sound and effective Board
governance
• Bringing an independent mindset and a
variety of backgrounds and experience
Board
of 5
HSEC
of 5
ECC
of 5
Audit
of 4
Rem
of 4
Nom
of 3
• Ensuring effective communication with

shareholders •
around the Board table
Providing leadership and challenge as
Cynthia Carroll¹
Peter Coates3
6
6
4
5 5
2
2
• Leading the annual performance evaluation

of the Board
chairs or members of the Board
Committees, which comprise only Non-
Martin Gilbert
Ivan Glasenberg²
6
3 2
4 4
Executive Directors
•
Anthony Hayward² 3 2 2
Assisting the Senior Independent Director John Mack² 1 2 1
in assessing the Chairman’s performance
Kalidas Madhavpeddi3 6 2 1 3 4 3
and leadership
Gill Marcus3 6 5 4 1
Patrice Merrin3 6 5 5 2
Senior Independent Director Company Secretary
• •
Gary Nagle¹ 3
Acting as confidant of the Chairman and, Ensuring that Board procedures are David Wormsley¹ 2 1
when appropriate, as an intermediary for complied with and that papers are provided
1 Ms Carroll, Mr Nagle and Mr Wormsley attended all relevant meetings from their appointments on 2 February, 1 July and
other independent Directors in sufficient detail and on time
• •
15 September 2021 respectively.
Acting as Chair of the Board if the Chairman Informing and advising the Board on all 2 Mr Mack, Mr Glasenberg and Dr Hayward attended all relevant meetings until their retirements on 29 April, 30 June and
30 July 2021 respectively.
is unable to attend governance matters
• •
3 Mr Coates, Mr Madhavpeddi, Ms Marcus and Ms Merrin attended all meetings of the relevant Board Committees following
Leading the Chairman’s performance Informing the Board on all matters reserved their respective appointments as Chair or member.
appraisal along with other independent to it

Directors • Assisting the Chairman and the Board There were another 7 limited agenda meetings of the Board, 4 additional Audit Committee
• Answering shareholders’ queries when
usual channels of communication are
regarding the annual performance
evaluation process
meetings and one additional HSEC meeting. Most Directors also attend, by invitation, the
meetings of the Committees of which they are not members.
unavailable
Chief Executive Officer

• Leading the management team
• Executing the Group’s strategy developed
in conjuction with the Board
• Implementing the decisions of the Board
and its Committees
• Delivering on the Group’s commercial
objectives
• Developing Group policies and ensuring
effective implementation

Corporate governance report continued Management of conflicts of interest

All Directors endeavour to avoid any situation
of conflict of interest with the Company.
Potential conflicts can arise and therefore
Board diversity and experience processes and procedures are in place
Kalidas Gary Martin Cynthia Peter Gill Patrice David requiring Directors to identify and declare any
Madhavpeddi Nagle Gilbert Carroll Coates Marcus Merrin Wormsley actual or potential conflict of interest. Any
American S. African British American Australian S. African Canadian British
notifications are required to be made by the
Experience Directors prior to, or at, a Board meeting and
Resources all Directors have a duty to update the whole
Non-executive directorship Board of any changes in circumstances.
C-suite Glencore’s Articles of Association and Jersey
law allow for the Board to authorise potential
Global transactions
conflicts and the potentially conflicted
Technical Skills* Director must abstain from any vote
Leadership & Strategy accordingly. During the year, no abstention
Financial Expertise procedures for conflicts had to be activated.
Ethics & Governance Related Party Transactions
Health & Safety In the course of its business, the Group enters
Investor Relations into transactions with organisations which
Communications & Reputation may constitute related parties.
Risk Management All material related party transactions are
* The majority of these skills have been acquired through exposure and experience at leadership level, rather than as part of a formal education. required to be reviewed and approved by the
Board. If a conflict exists for a Director, they
will not be allowed to vote on the resolution
approving the transaction. The Company also
Senior Independent Director Non-Executive Directors in May 2011 and the Chairman, all are regarded
seeks advice whenever an assessment is to be
Mr Gilbert is the Senior Independent Non- The Company’s Non-Executive Directors by the Board as Independent Non-Executive
made as to whether any material transaction
Executive Director. He is available to meet provide a broad range of skills and experience Directors within the meaning of
may be a related party transaction under the
with shareholders and acts as an intermediary to the Board (see table above), which assists in ‘independent’ as defined in the Code and free
terms of FCA Listing Rule 11.
between the Chairman and other their roles in formulating the Company’s from any business or other relationship which
independent Directors when required. This strategy and in providing constructive could materially interfere with the exercise of During the year the Board reviewed the
division of responsibilities, coupled with the challenge to senior management. their independent judgement. Mr purchase from BHP and Anglo-American of
schedule of reserved matters for the Board, Madhavpeddi was considered independent at their one-third interest each in Cerrejon.
Independence of Non-Executive Directors
ensures that no individual has unfettered the time of his appointment as Chairman.
Glencore regularly assesses its Non‑Executive Transactions between the Group and its
powers of decision. Further details of these
Directors’ independence. Except for Peter significant joint ventures and associates are
responsibilities are set out on page 91.
Coates, who was first appointed to the Board summarised in note 33 to the Financial
Statements.

Corporate governance report continued departments and nominated representatives, Corporate governance
participate in the working groups that
support the CCT.
In recognition of the desire of shareholders to
Acquisition and disposal of assets Each Committee reports to, and has its terms
have the opportunity directly to advise the
The Board reviews and approves all material of reference approved by, the Board and the Shareholders
Company of their opinion on its plans and
proposed transactions, including acquisitions minutes of the Committee meetings are
their implementation, the Board resolved in
and disposals of assets. Additionally, there is circulated to the Board. Each Committee
2021 to follow the same shareholder
an assessment as to whether material regularly reviews its terms of reference to Chief Executive
engagement model which it uses for Elect Officer and
transactions comply with FCA Listing Rule 10 ensure they reflect the Board’s expectations Directors
remuneration by which a policy is issued at Chief Financial
requirements. as to the Committee’s role as well as the latest Officer
least every three years and a report is
corporate governance requirements and
If required, the Board may engage an published annually on the implementation of Ongoing
recommended practices. engagement
independent third-party adviser to review the that policy, each of which is put to an advisory
proposed transaction and provide an Investigations vote.
independent opinion for the Board to assist in In July 2018, following receipt of a subpoena
Board meetings
its decision making in addition to the from the U.S. Department of Justice (DOJ), the Audit
The Board has approved a schedule that sets Board of Committee
requirements to have advice from a sponsor Board reconstituted the then existing
out the matters reserved for its approval, Directors
under the FCA Listing Rules. Investigations Committee to direct the
including Group strategy, financial statements
Company’s response. The Investigations
Board Committees and annual budget, and material acquisitions Renumeration
Committee’s mandate has continued and
The following permanent Committees are in and disposals. Meetings are usually held at Committee
includes oversight and responsibility for
place to assist the Board in exercising its the Company’s headquarters in Baar, Investigations
material decision making as to the Company’s
functions: Audit, Nomination, Remuneration, Switzerland. However, during 2021, due to Committee
response to all the investigations listed in Nomination
HSEC and ECC. The Board is provided with travel restrictions, some or all Non-Executive
notes 23 and 32. It also monitors the Group’s ECC
Committee
technical and commercial updates as Directors were often unable to attend
exposure arising from the investigations and Committee HSEC
appropriate during the year, including as to meetings in person. Committee
concludes on the appropriate disclosure in
our Raising Concerns programme and
the financial statements. The Board and its Committees have standing
relevant investigations. The Board may also
agenda items to cover their proposed
establish temporary committees for specific Oversight of management of climate-
business at their scheduled meetings. The
purposes, such as the Investigations related risks and opportunities
Chairman seeks to ensure that the very
Committee. As each Committee reports to Climate change is a Board-level standing
significant work of the Committees feeds into,
the Board, meetings are held prior to Board agenda item. During 2021, we revised our
and benefits through feedback from, the full
meetings, during which the chair of each internal climate change governance
Board. The Board and Committee meetings
Committee leads a discussion concerning the framework to drive implementation of the
seek to cover all aspects of the Group and, for
Committee’s activities since the previous climate strategy and the supporting work
this purpose, receive input and support from
Board meeting. programmes. Our new Climate Change
senior management through reports and
Taskforce (CCT) is accountable to the Board, to
A report from each chair of the permanent presentations, which among others cover
whom it provides regular progress and status
Committees is set out later in this Corporate operational, financial, audit, risk, legal and
updates. It is led by the CEO and other
Governance report. compliance, governance, and investor
members include the CFO, Head of Industrial
relations. These reports and presentations
All permanent Committees’ terms of Assets, and General Counsel, as well as
allow Directors to further their understanding
reference are available at: representatives from key corporate functions
of the business and provide the insights
including investor relations, finance and
glencore.com/who-we-are/governance necessary for defining the Company’s
sustainable development. Commodity
strategy and objectives, in turn contributing
departments, including heads of the
to a more effective Board.

Corporate governance report continued
Board and Committees’ main Governance & Stakeholders Other activities Board performance and effectiveness
activities and decisions during 2021 •
Revised Code of Conduct • Covid-19 related activities including analysis
•
For 2021, a performance evaluation was
Below are details of the main topics which Annual report of impact on health & safety, business and conducted internally. As part of this process,
were reviewed, discussed, and when required, •
AGM, voting results and outcomes
•
audit risks each Director completed questionnaires that
approved during 2021:
•
Investor relations reports External Audit tender covered various key indicators of Board and
•
Analysts updates Appointment of Non-Executive Directors
Committee performance and effectiveness,
•
Regular updates
• Reports from Committee Chairs Corporate governance framework All the Non-Executive Directors have letters of
including the findings from the previous
• Reports from CEO, CFO, Company •

Stakeholder engagement appointment and the details of their terms are
evaluation (summarised in the 2020 Annual
•
Report). Results were provided to the
Secretary, General Counsel and senior Board and Directors’ evaluation set out in the Directors’ remuneration report.
•
Chairman and the Senior Independent
management, including climate strategy No other contract with the Company or any
•
Chairman’s performance Director by the Company Secretary.
Group Strategy, including M&A and capital subsidiary undertaking of the Company in
Legal, Regulatory & Compliance which any Director was materially interested
•
expenditure, including: Final results were presented to the Board
Group policies existed during or at the end of the financial collectively for discussion.
– acquisition of 66.6% of Cerrejon,
• Legal matters updates year.
– sale of Ernest Henry Mine, and
• Regulatory & Compliance updates
Issues of focus raised by the Directors
•
– review of Nickel Canadian Onaping Depth Information, management meetings, site included:
•
Group Ethics and Compliance Programme visits and professional development
•
project and Koniambo operations
• Group performance report
•
Raising Concerns reports and analysis It is considered essential that the Non- need to resume meetings in person and
site visits whenever permitted
•
Analysis of legal risks concerning climate Executive Directors attain a good knowledge
Financial & Risk health and safety, and fatalities elimination
• •
change of the Company and its business and allocate
Finance reports, forecasts and capital
• Board training sufficient time to Glencore to discharge their
•
resolving the investigations
•
position updates
2022 budget and 2023–25 business plan, life • Material permitting and licences
responsibilities effectively. The Board calendar
is planned to ensure that Directors are briefed
•
government relations/country risks
refreshment of the Board with an emphasis
Health, Safety, Environment & Communities
•
of asset planning and costs analysis on a wide range of topics. on greater ethnic and geographic diversity,
• Capital management, debt and returns Fatalities, major incidents and other safety
issues
During 2021, similarly to the previous year, strong resource industry experience, and
•
analysis accounting expertise
• •
there were no site visits due to the global
Tailings Storage Facilities reviews
•
Financial statements senior management transition
• •
pandemic. However, various virtual site
Environmental incidents reports
•
Group risk appetite engagements took place. succession planning, including for
• Group risk management framework, HSEC and Human-Rights policy framework
•
corporate functions
including new ERM policies Human Rights and Communities analysis
All Directors have access to the advice and
• workforce diversity and inclusion
• Tax policies and provisions •
Supply chain traceability
services of the Company Secretary, who is
• more active remuneration committee
•
Cultural heritage
responsible to the Board for ensuring that
• more work on ESG and carbon strategy
•
Governmental investigations Board procedures are complied with and have
•
Regular scheduled and ad hoc meetings of Succession and Remuneration access to independent and professional risk management, compliance, culture and
the Investigations Committee to review • Succession planning for Board and senior advice at the Company’s expense, where they
judge this to be necessary to discharge their
internal audit/controls and whistleblowing
arrangements
•
progress and receive updates on management
interactions with relevant authorities
•
Decisions concerning ongoing
• Tender and appointment for Remuneration
Committee advisor
responsibilities as Directors. divestments of ‘tail’ assets
investigations and accounting disclosures

• Senior management remuneration

Corporate governance report continued Risk management and internal control of locations where we meet institutional
The Board has complied with provisions 28 to shareholders. We also regularly meet with
31 of the Code by establishing an ongoing existing and prospective shareholders. Absent
process for identifying, evaluating and Covid-19 related travel restrictions, we
Director induction and information strategy – see further on page 35. While we managing the risks that are considered regularly facilitate visits to parts of the
New Directors receive a full, formal and support the aims of diversity, we do not significant by the Group in accordance with business to give analysts and major
tailored induction on joining the Board, believe that a one size fits all policy is the Guidance on Risk Management, Internal shareholders a better understanding of how
including meetings with management and a appropriate or currently achievable. Still today, Controls and Related Financial and Business we manage our operations. These visits and
comprehensive introduction to the main we find it challenging to find female Reporting published by the Financial meetings are principally undertaken by a
aspects of the Group, its business and candidates for senior positions in remote Reporting Council, as detailed on pages 68-71. combination of the CEO, CFO, Head of
functions, the roles and responsibilities of a mining locations and for the marketing of This process has been in place for the period Industrial Assets and Head of Investor
UK premium listed company director, and the commodities. under review and up to the date of approval of Relations.
Company’s Purpose, Values and Code of the Annual Report and financial statements.
In addition, many major shareholders have
Conduct. Accountability and audit The process is designed to manage and
meetings with the Chairman and appropriate
Financial reporting mitigate rather than eliminate risk, and can
The Directors receive training on legal and senior personnel, including other
The Group has in place a comprehensive only provide reasonable and not absolute
compliance topics and regular updates on Non‑Executive Directors, the Company
financial review cycle, which includes a assurance against material misstatement or
relevant business and governance matters. Secretary and senior members of the
detailed annual planning/budgeting process loss. This review excludes associates of the
Sustainability team. The matters covered by
Ms Carroll and Mr Wormsley both completed where business units prepare budgets for Group as Glencore does not have the ability to
meetings with the Chairman and Company
their induction during the year. overall consolidation and approval by the dictate or modify the internal controls of these
Secretary include the work of the Board’s
Board. The Group uses many performance entities. The Directors confirm that they have
Committees. Unfortunately, in 2021, due to
indicators to measure both operational and carried out a robust assessment of the
Diversity Covid-19 related restrictions, some of these
financial activity in the business. Depending principal and emerging risks facing the Group
The diversity policy which is applied to engagements have taken place virtually.
on the measure, these are reported and and have reviewed the effectiveness of the
appointments to governance bodies with
reviewed on a daily, weekly or monthly basis. risk management and internal control For minor shareholders, the AGM is often the
regard to aspects such as age, gender, or
In addition, management in the business systems, and concluded that there are no only time when direct interaction with the
education and professional backgrounds is
receives weekly and monthly reports of significant failings or weaknesses in internal Board and Management is possible. As we
the same as for all Group employees.
indicators which are the basis of regular controls other than certain internal control again could not hold an AGM in person this
The Board is very cognisant of the ongoing operational meetings, where corrective action deficiencies noted by the external auditor, see year, and in an attempt to stay close to the
desire from stakeholders for greater diversity is taken if necessary. At a Group level, a page 98. spirit of a traditional AGM, all shareholders
in senior management and boards. well-developed management accounts pack, were able to submit questions, live or in
In particular, leading UK institutional including income statement, balance sheet, Interactions with shareholders writing, to the Chairman and CEO. Members
shareholders have set a target for women to cash flow statement as well as key ratios is The Board aims to present a balanced and of the public were able to listen without
comprise 33% of senior management and prepared and reviewed monthly by clear view of the Group in communications restrictions and the record of these virtual
boards of FTSE 100 companies by the end management. As part of the monthly with shareholders and believes that being sessions were published on our website.
of 2020. This board target was achieved on reporting process, a reforecast of the current transparent in describing how we see the
2 February 2021 and we remain compliant year projections is performed. To ensure market and the prospects for the business is AGM
at the date of this report. consistency of reporting, the Group has a extremely important. The Company’s next AGM is due to be held on
global consolidation system as well as a 28 April 2022. Full details of the meeting will
The Board acknowledges that much more We communicate with shareholders in a
common accounting policies and procedures be set out in the AGM notice of meeting. All
needs to be done to achieve greater diversity number of different ways. The formal
manual. Management monitors the documents relating to the AGM will be
in the senior management of the Group, reporting of our full- and half-year results and
publication of new reporting standards and available on the Company’s website at:
including through the development of an quarterly production reports is achieved
works closely with our external auditor in glencore.com/agm
internal pipeline of candidates. Accordingly through a combination of releases,
evaluating any impact.
during 2021 it has overseen development of presentations, group calls and individual
the Group’s first Diversity and Inclusion meetings. The full- and half-year reporting is
followed by investor meetings across a variety

Ethics, Compliance and Culture (ECC) Committee • Reviewed our ESG engagement, including
with NGOs and multi-stakeholder
ensuring there is a clear and concise
understanding by the workforce of our
report organisations that invest or engage on ESG Purpose, Values and Code of Conduct.
controls for the prevention of unethical

issues, and track the development of
reporting on ESG related topics.
• As part of the Committee’s role in assessing
and monitoring Group culture, individual
business practices and misconduct. • Considered the significant matters on Non-Executive Directors held a series of
• Reviewing reports and the activities of
relevant management committees: ESG
which the Group has made political
representations and our use of lobbyists
forums with a cross section of employees in
different parts of the business, representing
and Business Approval Committees – see and the conduct and positions of our different commodities and different levels
page 44. member organisations during 2021 on of responsibility. These forums were
• Assessing and monitoring culture to ensure
alignment with the Company’s Purpose
material issues in accordance with our
Political Engagement Policy. This included a
attended in-person where possible with
virtual engagements being held where
and Values. detailed analysis of activities in the main travel was still difficult. Discussions were
• Monitoring the Group’s stakeholder
engagement. •
countries in which the Group operates.
Considered regulatory developments in
focused on topics such as diversity and
inclusion, health and safety, climate change,
relation to responsible sourcing and the compliance and Glencore’s strategy,
Main activities Group’s proposed planned actions. Purpose and Values and the feedback from
During the year, the Committee’s activities employees was shared with the Committee
Workforce Engagement
included the following:
Ethics and Compliance
•
Considered management of health related
and notes provided to the Board. Further
forums are planned for 2022 given the
•
Patrice Merrin, Chair concerns, policies and communications positive feedback received from employees
Provided oversight of the key elements of with a focus on mental health and on this type of Director engagement.
the Ethics and Compliance Programme, wellbeing and providing accurate Covid-19
including risk assessments, policy health advice and support. The Board considers having designated
Other members
implementation, training and awareness,
internal monitoring, and reviews conducted
•
Considered Group HR policies, standards,
legislative compliance around the globe
workforce engagement Directors as the most
constructive method of workforce
Gill Marcus
by third party specialists. engagement. In order for this role to be
•
and greater use of technology.
Peter Coates
The Committee met five times during the

Reviewed the implementation and
effectiveness of the Ethics and Compliance
•
Reviewed policies on Equality of
Opportunity, and Diversity and Inclusion,
effective, given the vast geographic reach of
the Group, the Board has chosen for all
Programme. members of this Committee to be such
•
year. Mr Madhavpeddi temporarily chaired the and the related standards.
Committee upon Dr Hayward’s retirement on
30 July. On 1 October Ms Merrin was
Reviewed the compliance structure and
resourcing to assess whether it is sufficient
•
Consideration of the employee campaign
and launch of the new Code of Conduct, the
workforce engagement directors. Each
Director uses the forum of this Committee to
for the Group. provide feedback to the Board on the
•
appointed as Chair. Remaining Committee Group’s Purpose and Values and ensuring
concerns of the workforce and ensure that
members served throughout the year and Considered a variety of other material ethics these are aligned with the Group's culture
employees' voices are heard in the
attended all of the meetings. Nicola Leigh is and compliance issues. – see the Ethics and Compliance section
the secretary of this Committee. • Reviewed and recommended to the Board starting on page 43.
Boardroom.
Responsibilities
policies for Information Governance and
Market Conduct.
•
Reporting on culture surveys: Employee
attitudes toward the Group’s Values, its
Engagement by the Board and senior
management is covered in the Our people
The main responsibilities of the Committee section starting on page 34.
commitment to ethical behaviour and
Stakeholder engagement
•
are:
scores covering the compliance
• Overseeing the implementation of the
Group Ethics and Compliance Programme
Reviewed and recommended to the Board
the new Code of Conduct and received
programme were considered in particular.
The Value and Culture index is reviewed by
Patrice Merrin
Chair of the ECC Committee
feedback on rollout. 15 March 2022
including Group policies, standards, the Committee and, where necessary,
procedures, guidelines, systems and corrective actions are taken. Examples in
the last year include promoting mental
health wellbeing and awareness and

Health, safety, environment

& communities (HSEC) report
Responsibilities
The main responsibilities of the Committee
Main activities
During the year, the Committee engaged in
• Social and human rights: monitoring the
Group’s strategy and reviewing serious
incidents
•
are: the following activities:
• Ensuring that appropriate Group policies

are developed in line with our Values and
• HSEC & Human Rights Strategy: reviewing
the Group’s annual HSEC & Human Rights
Assurance: reviewing work of the HSEC
Audit function including its training
activities
Code of Conduct for the identification and
management of current and emerging •
strategy and its implementation
Governance: approved 5 new or updated • Enterprise Risk Management: overseeing
the development of a revised ERM standard
health, safety, environmental, community HSEC and human rights policies: for the industrial business
•
and human rights risks
Ensuring that the policies are effectively
– Health and Safety Policy
– Environmental Policy
• Tailings storage facilities: overseeing the
work on the new Tailings Management
communicated throughout the Company
– Social Performance Policy Policy Framework and updated Tailings
and that appropriate processes and
– Human Rights Policy Storage Facility Standard which is now
procedures are developed at an operational
– Tailings Storage Facility Policy aligned to the Global Industry Standard for
•
level to implement and evaluate the
Health and Safety: overseeing the Group’s Tailings Management and the internal work
effectiveness of these policies through:
fatality reduction programme including on the Group’s facilities, particularly those
Peter Coates, Chair – assessment of operational performance designated as high risk
•
SafeWork which is Glencore’s approach to
– review of updated internal and external External affairs: monitoring the Group’s
eliminating fatalities. In 2021, a revised
reports external HSEC reporting, continuing
SafeWork was launched through a change
– independent audits and reviews of engagement on material issues and
Other members project called ‘SafeWork 2.0’. There was a
performance with regard to HSEC stakeholder and investor engagement
•
detailed review of KCC given certain
Patrice Merrin matters, and action plans developed by
challenging issues that had arisen relating Other matters: Considering a variety of
Cynthia Carroll management in response to issues raised
• to safety and tailings management other material HSEC issues.
Kalidas Madhavpeddi Evaluating and overseeing the quality and
integrity of any reporting to external • Health and Safety: review of each fatality
occurring with emphasis on lessons to be
Peter Coates
The Committee met five times during the stakeholders concerning HSEC matters Chair of the HSEC Committee
year. Ivan Glasenberg retired on 30 June 2021
and Anthony Hayward retired on 30 July 2021.
• Reporting to the Board
learned across the Group; oversight of a
revamping of leadership of fatality
15 March 2022
investigations including a training

Cynthia Carroll joined the Committee on
programme; reviews of critical incidents
2 February 2021 and Kalidas Madhavpeddi
and trends in TRIFR, LTIFR, HPRIs and other
joined the Committee on 1 October 2021. Each
relevant statistics
Committee member attended all meetings
during their period of appointment. Every • Environment: assessing the Group’s
strategy concerning GHG emissions,
scheduled meeting had a substantial agenda,
reflecting the Committee’s objective of energy, water and stewardship and other
impacts
•
monitoring the achievement by management
of ongoing improvements in HSEC Communities: reviewing material issues,
performance. investigations and complaints
John Burton is the Secretary of this

Committee.

Audit Committee report • Reviewing the global audit plan, scope and
fees of the audit work to be undertaken by
Risk management and internal
controls review process
the external auditor
•
The Committee receives reports and
Reviewing the Internal Audit department’s presentations at each meeting on
The Committee usually invites the CEO, CFO, annual audit plan management of marketing and other risks
General Counsel, Group Financial Controller,
Chief Risk Officer and Head of Internal Audit
• Monitoring the progress made in
remediating the internal control
(excluding operational and sustainability risks
which are reviewed by the HSEC Committee
and the lead partner from the external auditor deficiencies noted by the external auditor and compliance risks which are reviewed by
to attend each meeting. Other members of (IT access controls and certain review the ECC) and at least once a year considers an
management and the external auditor may controls over journal entries and complex in-depth study of the perceived main and
attend as and when required. Other Directors valuation models). The Committee regularly emerging risks and uncertainties and the
also usually attend its meetings. discusses these matters, the actions to Group’s risk management framework as a
Additionally, the Committee holds closed remediate them and the progress being whole.
sessions with the external auditors and the made with management and the external
The Board's internal controls review processes
Head of Internal Audit without members of auditor, refer to point 3 below Internal
are outlined under Risk management and
management being present. The Committee Controls Review – UK SOX readiness
internal control on page 95 and detailed on
programme
•
has adopted guidelines allowing certain pages 68-71.
non-audit services to be contracted with the Reviewing and agreeing the preparation
external auditors. and scope of the year-end reporting External audit tender
process The Audit Committee oversaw a formal and
Gill Marcus, Chair Role and responsibilities
The primary function of the Committee is to
• Considering applicable regulatory changes
to reporting obligations
competitive tender process during 2021 in
relation to the Group’s external auditor. The
assist the Board in fulfilling its responsibilities
with regard to financial risk management and • Considering the scope and methodologies
to determine the Company’s going concern
process started in January with a review of
potential audit firms that were independent
Other members internal controls, financial reporting, and
and longer-term viability statements and could therefore participate in a tender
Martin Gilbert
David Wormsley
oversight of external and internal audit.
During the year, the Committee’s principal
• Reviewing the full-year and half-year
financial statements with management
process. After this review, two firms were
selected, KPMG LLP and Deloitte LLP, and
work included the following: and the external auditor each was sent a Request for Proposal (RFP).
•
The Committee met eight times during the
•
They each met with a number of members of
year, four of which related to the audit tender Evaluating the Group’s procedures for
Reviewing the Group’s internal financial senior management, including regional
only. In October 2021, Gill Marcus replaced ensuring that the Annual Report and
controls and financial risk management finance directors and heads of departments
Kalidas Madhavpeddi as Chair of the accounts, taken as a whole, are fair,
systems and corporate functions. The firms were also
Committee and David Wormsley was
appointed as a member of the Committee. • Reviewing the Group’s financial and
accounting policies and practices including •
balanced and understandable
Monitoring the independence of the
invited to present their capabilities that would
complement the audit in relation to IT,
Each Committee member attended all of the external auditor and the operation of the compliance and sustainability. Written
discussing material issues with
meetings during their period of appointment. Company’s policy for the provision of responses to the RFP were submitted to a
management and the external auditor,
All current Committee members are non-audit services by the external auditor
•
especially matters that influence or could steering committee which comprised
considered by the Board to be Independent affect the presentation of accounts and key Conducting a competitive tender for the members of the Finance and Company
Non-Executive Directors and to be financially figures appointment of an external auditor, details Secretarial teams and the Audit Committee
literate by virtue of their relevant financial
experience. As a whole, the Committee has • Considering the output from the Group-
wide processes used to identify, evaluate •
noted below
Recommending to the Board a resolution
Chair. Areas of consideration included
individual and firm audit quality scores,
the skills and experience relevant to the to be put to the shareholders for their cultural fit, a demonstrable understanding of
and mitigate financial risks, including credit
sector. approval on the appointment of the the Group’s business, technical expertise and
and performance risks, across the industrial
John Burton is the Secretary to the and marketing activities external auditor and to authorise the Board proposed fee structure and development. The
Committee. to fix the remuneration and terms of tender was further used as an opportunity to
engagement of the external auditor

Audit Committee report continued Future performance assumptions used are considered material continuing exposures,
derived from the Board-approved business the robustness of processes followed to
plan. As part of the process for approval of this evaluate recoverability and whether the
plan, the Committee considered the feasibility amounts recorded in the financial statements
seek input on the approach to the audit and controls, scaling up of LNG commercial of strategic plans underpinning future are reasonable.
the Company’s external reporting given the activities, ongoing government performance expectations, and whether they
The Committee was satisfied with the
changes in legislation and the enhanced role investigations and acquisition of the remain achievable. Considerable focus was
positions adopted by management.
of the Audit Committee. In relation to the remaining 66.66% interest in Cerrejon. applied to management’s commodity price
outcome of the tender, the Audit Committee and exchange rate assumptions and their 8. Other material issues
2. S
ignificant accounting matters
recommended to the Board that Deloitte LLP sensitivities within the models. The Group’s These included going concern and long-term
The Committee considered a number of
be reappointed as the Company’s external interest in the Cerrejon coal asset (with the viability assessments. The Committee was
current or prospective significant accounting
auditor while identifying certain opportunities remaining two-thirds interests to be acquired) satisfied with the going concern and longer-
matters including relating to the disposal of
for improvement by them. The Board and the Koniambo nickel asset in New term viability conclusions reached as set out
Mopani, TCFD disclosure requirements,
approved the Audit Committee’s Caledonia have been subject to particular on page 71.
accounting for LNG contracts as well as a
recommendation and the Directors will be scrutiny. In relation to coal, there continues to
number of key judgements and estimates. Internal and external audit
proposing the reappointment of Deloitte LLP be particular focus around price outlook and
for the financial year ending 31 December 3. Internal Controls Review – UK SOX climate change related risks. The Committee monitored the internal audit
2022 and the setting of its fees at the readiness programme function as described under Internal Audit on
The Committee was satisfied with the page 70.
Company’s 2022 AGM. Deloitte LLP are In response to the Corporate Reform changes
required to rotate the audit partner being considered in the UK regarding, The Committee's assessment of the quality
responsible for the Group audit every five amongst other proposals, a Sarbanes-Oxley 6. Taxation and effectiveness of the external audit
years and therefore the current lead audit type internal controls attestation regime, the Due to its global reach, including operating in process was considered as part of the audit
partner, Geoff Pinnock, having served since Committee is overseeing an intensive many higher-risk jurisdictions, the Group is tender process (see previous page).
the 2018 accounting year, will rotate after the management review, supported by Ernst & subject to enhanced complexity and
2022 year end. Young, of the Group’s internal controls. uncertainty in accounting for income taxes, The application of the FRC’s Revised Ethical
Initially this focused on compliance related particularly the evaluation of tax exposures Standard 2019, from 1 January 2021, has
Significant issues introduced significantly extended restrictions
financial controls and then broadened to and recoverability of deferred tax assets. The
The Committee assesses whether suitable regarding the use of the Company’s external
internal controls related to financial reporting. Committee has engaged with management
accounting policies, including the auditor for non-audit services, to preserve the
to understand the potential tax exposures
implementation of new accounting 4. Covid-19 auditor’s independence and the Group’s
globally and the key estimates taken in
standards, have been adopted and whether The Committee continued to consider the non-audit services policy has been amended
determining the positions recorded, including
management has made appropriate risks to management accounting and internal accordingly.
the status of communications with local tax
estimates and judgements. It also reviews the controls processes due to the effects of Covid,
authorities and the carrying values of deferred
external auditor’s reports outlining audit work including relocation of staff and inaccessibility For 2021, fees paid to the external auditor were
tax assets. The African copper assets and tax
performed and conclusions reached in of some business locations. approximately $26 million. These included
risk exposures in the UK have been particular
respect of key judgements, as well as audit related assurance services of $3 million
5. Impairments areas of focus.
identifying any issues in respect of these and non-audit fees of $1 million; further details
The Committee considered whether the are contained in note 30 to the financial
reports. The Committee was satisfied with the
carrying value of goodwill, industrial assets, statements.
During the year, the Committee has focused physical trade positions and material loans
in particular on these key matters: and advances may be impaired as a result of 7. Counterparty exposures Gill Marcus
commodity price volatility and some asset The Group’s global operations expose it to Chair of the Audit Committee
1. Audit plan review 15 March 2022
specific factors including the impact of credit and performance risk, which result in
The Committee reviewed key developments
climate change. The Committee reviewed the requirement to make estimates around
and audit risks central to planning for the half
management’s reports, outlining the basis for recoverability of receivables, loans, trade
year review and annual audit. These included
the key assumptions used in calculating the advances and contractual non-performance.
asset valuations, DRC matters, internal
recoverable value for the Group’s assets. As part of an ongoing review, the Committee

Nomination Committee Report Secondly, prior to the notice of 2021 AGM

being compiled, the Committee considered
the performance of each Director. It
concluded that (other than Mr Mack who had
Role and responsibilities announced his intention not to seek re-
The main responsibilities of the Nomination election) that each Director is effective in their
Committee are to assist the Board with role and continues to demonstrate the
succession planning and with the selection commitment required to remain on the
process for the appointment of new Directors, Board. Accordingly, it recommended to the
both Executive and Non-Executive, including Board that re-election resolutions be put for
the Chair, and overseeing succession plans for each continuing Director at the 2021 AGM.
senior management. Thirdly, the Committee considered the
This involves: appointment of a successor to Dr Hayward as
•
Chairman, which led to the appointment of
Evaluating the balance of skills, knowledge Kalidas Madhavpeddi who was already a
and experience of the Board and identifying member of the Board
the capabilities required for a particular
appointment Finally, the Committee oversaw overall Board
• Overseeing the search process refreshment which led to the appointment of
Kalidas Madhavpeddi, Chair

• Evaluating the need for Board rejunevation
and succession planning generally
David Wormsley, reflecting the desire for
additional financial and UK markets
• Overseeing planning for CEO and CFO

succession
experience.
The Committee acknowledged the
Other members • Monitoring the CEO’s planning for senior
management succession to seek to ensure
recommendations of the Hampton-Alexander
Review on gender and the Parker Review on
All other Non-Executive Directors
that the Company has a suitable pipeline of ethnic diversity. It is part of the Committee’s
During the year, the Committee’s candidates policy when making new Board appointments
composition was initially Patrice Merrin, John
Mack and Kalidas Madhavpeddi. Mr Coates
• Considering diversity in appointments to consider the importance of diversity on the
Board, including gender and ethnicity, which
replaced Mr Mack on his retirement from the Main activities is considered in conjunction with experience
Board. Following his appointment as The Committee focused on four main tasks and qualifications. While the Board satisfies
Chairman, Mr Madhavpeddi became chair of during this year. the diversity targets set by the Hampton-
the Committee and Ms Marcus replaced Ms Alexander and Parker Reviews, it is
Firstly, the Committee oversaw the acknowledged that more work needs to be
Merrin. From 1 January 2022, all Non-Executive completion of the senior management
Directors became members of the done to address diversity at senior
succession upon the retirement of Mr management level.
Committee. Glasenberg and the departure of the
The Committee met three times during the remaining Marketing department heads such Kalidas Madhavpeddi
year. that the CEO and all such business leaders Chair of the Nomination Committee
were replaced during the period from the 15 March 2022
John Burton is the Secretary of this beginning of 2019 to 30 June 2021.
Committee.

Directors’ Remuneration Report Introduction Remuneration policy

2021 was a year of leadership transition for 2021 represents the first year of application of
For the year ended 31 December 2021 Glencore as Ivan Glasenberg retired as CEO the Remuneration Policy for the new CEO,
and as a member of the Glencore Board on 30 which was developed following extensive
On behalf of the Board, I am pleased to June 2021 and Gary Nagle succeeded him in consultation with major shareholders and
present Glencore’s Remuneration Report for the role of CEO and a member of the Glencore investor bodies in mid-2020. The changes to
the financial year ended 31 December 2021, Board on 1 July 2021. the Remuneration Policy were guided by a
my first as Chair of Glencore’s Remuneration need to support the Company’s transition to a
Committee. A key focus for the Committee’s work during
more market aligned CEO remuneration
the year was therefore the implementation of
This report is presented to reflect the package, as well as its future needs as a major
the Remuneration Policy for the new CEO,
reporting requirements on remuneration global miner and one of the world’s largest
including reviewing shareholders’ feedback
matters for companies with a UK governance commodity trading companies.
and the development of frameworks,
profile, particularly the UK’s Large and processes and structures for the While the Policy was approved by 74.2% of
Medium-sized Companies and Groups measurement and assessment of shareholders at the 2021 Annual General
(Accounts and Reports) (Amendment) performance given the unusual nature of the Meeting, the Committee and Board recognise
Regulations 2013, unless stated otherwise. former CEO’s pay package. the views of those shareholders who felt they
The report also describes how the Board has could not support the resolution. Reflecting
complied with the provisions set out in the We have been guided in our decision making
the Board’s philosophy on shareholder
UK Corporate Governance Code relating by the principles of responsible pay and
engagement, the Board Chairman consulted
to remuneration matters. Our auditors believe that our remuneration policy achieves
extensively with the largest shareholders who
Cynthia Carroll, Chair its intended objectives to provide due
have reported on certain parts of the voted against to discuss their feedback
Directors’ Remuneration Report and stated recognition and to support Glencore’s growth
relating to CEO pay quantum compared to
whether, in their opinion, those parts of the now and into the future. A number of
predecessor pay levels and the performance
report have been properly prepared. Those important considerations have informed our
orientation of the Restricted Share Plan. The
Other members sections of the report which have been decisions this year, including:
diversity of feedback received was
Kalidas Madhavpeddi subject to audit are clearly indicated.
• financial and non-financial performance; underpinned by an acknowledgement that
Martin Gilbert
Our report is divided into three sections: • the views and expectations of our the Company had sought to implement a
• stakeholders; fit-for-purpose remuneration policy and an

This letter from me as Chair of the
• the Company’s sustainability commitment;
expectation for transparent disclosure of the
•
Remuneration Committee
Glencore’s Remuneration at a Glance • our continued focus on capital projects and
operation of the Policy in 2021.
• Our Annual Report on Remuneration

maintaining production to meet higher
levels of global demand;
detailing the outcomes from 2021 and how
we will implement our Remuneration Policy • the ongoing impact of the Covid-19
pandemic; and
in 2022.
• Glencore’s leadership transition against a
challenging operating backdrop.

Directors’ Remuneration Report continued deleveraged its balance sheet (see page 48). The formulaic outcome was therefore 98.5%
Additionally, Funds from Operations in 2021 of maximum opportunity. However, it was
significantly exceeded Glencore’s three-year noted that despite the strong overall
average. In consideration of all those factors, it performance delivered and value creation for
The Company believes the Policy reflects a Performance and incentive outcomes was determined that a full payout in respect shareholders, as well as a significant year-
more market aligned, competitive, and in 2021 of the financial measures was warranted. The over-year improvement in health and safety
fit-for-purpose remuneration, comprising: The social, economic, and political problems Committee also considered performance indicators across the business, including
• a total remuneration package that is

positioned competitively but not
presented by the Covid-19 pandemic are
without precedent in recent history. In these
against the non-financial categories for which
a 96.7% payout was deemed appropriate,
LTIFR and TRIFR, there were unfortunately
four tragic fatalities recorded in 2021. Any loss
challenging circumstances, under the including considerations such as: of life is unacceptable and this is an important
excessively versus the FTSE30 and a peer
group that represents the internationality,
complexity, and scale of our operations,
leadership of Gary Nagle who assumed his
role as CEO on 1 July 2021, Glencore navigated • Demonstrable progress to advance
Glencore’s safety culture, promote climate
reminder that there is still work to do to
further improve safety across all operations.
with agility and resiliency to deliver Additionally, whilst 2021 was a hallmark year of
taking into account Glencore’s continued change leadership, and embed its climate
exceptionally strong performance in 2021, earnings for Glencore, there is work to be
growth; strategy across its global operations
• an appropriate mix of rewards for short-
and long-term performance, with a
while protecting the safety and health of our
people and host communities. • Continued portfolio simplification to focus
on larger, higher-margin, longer-life assets
done to further bolster production levels
globally. Reflecting on Glencore’s safety
commitment and accountability for
mandatory three-year deferral of 50% of any The Committee recognises that a record year essential to the transition to a low-carbon sustainable value creation, beyond superior
bonus earned; for Adjusted EBITDA depended on economy, including:
•
financial returns, the Committee applied
a Restricted Share Plan that rewards management and employees around the downwards discretion to reduce the overall
– the sales of Ernest Henry and Mopani;
sustainable value creation and commercial world during a challenging period. bonus outcome by 5%, resulting in a bonus
– a commitment to responsible ownership
effectiveness, rather than short-term share outcome of 93.6% of maximum. Further
In addition, Glencore remained steadfastly and depletion through the Cerrejon
price volatility primarily driven by details of how the Committee assessed the
focused on shaping the business for the acquisition; and
commodity price cycles, with vesting 2021 annual bonus scorecard for the CEO are
future, aligning the Company’s sustainability – investment in energy transition
subject to the Committee’s assessment of provided in the Annual Report on
ambitions with tangible actions throughout exemplified by various recycling
robust performance underpins aligned Remuneration.
the business. initiatives.
with the stakeholder experience;
• one of the longest LTIP time horizons in
the FTSE to reinforce our ownership ethos,
In line with the new annual bonus scorecard
outlined in the Remuneration Policy, which
• The roll out of a revised Code of Conduct
that set out the business principles and
The vesting outcome for the new RSP will be
disclosed for the first time in the 2024
provides consideration for financial, safety, Remuneration Report. Vesting is subject to a
as the CEO is unable to realise value from values critical to Glencore’s success as a
climate and individual performance initiatives, holistic assessment of performance
restricted shares until the later of five years responsible and ethical Company and
the Remuneration Committee considered underpins (shareholder distributions, overall
from the date of award or two years maintenance of a best-in-class Ethics and
Glencore’s performance and the CEO’s company performance, and ESG
post-departure; and Compliance programme
• Annual bonus and Restricted Share awards
are subject to malus and clawback
leadership during 2021 and determined that a
93.6% outcome is warranted in respect of the • The CEO’s leadership during the 2021
transition year to advance Glencore’s
performance) which ensures that vesting
outcomes are entirely consistent with the
outstanding performance delivered in 2021. stakeholder experience over the vesting
provisions to mitigate excessive risk-taking strategic priorities; in particular, his role in period. Further details of the Committee’s
and payment for failure. In reaching this decision, the Committee installing new executive leadership and interim assessment of these underpins are
considered the formulaic outcome against management across operations and provided in the section of this report headed
The Committee strives to implement the
the stretching targets for each financial developing a new diversity and inclusion ‘RSP awards vesting in 2021’.
Policy in a considered way and will continue to
measure (see below) set at the start of the strategy to attract and retain the next
monitor the views of shareholders and
year. In 2021, Glencore delivered record generation of leaders for Glencore globally. Wider workforce considerations
engage directly with them as appropriate.
Adjusted EBITDA and significantly The Committee is advised of pay and
conditions around the Group and considers
such information when considering executive
pay. The Head of Group HR also attends
meetings by invitation and is able to share

Directors’ Remuneration Report continued Engaging with shareholders

We remain committed to delivering a
transparent remuneration framework,
supported by strong governance processes,
information about the wider workforce. In Remuneration for the Chairman and designed to drive the right behaviours across
2021, several virtual focus groups were also Non-Executive Directors the whole organisation and deliver long-term
conducted with the aim of promoting Fees for the Chairman and Non-executive success, meeting the needs of our
employee engagement and facilitating direct Directors are reviewed annually and are stakeholders. As demonstrated by our Board
communication between employees and benchmarked against peer companies. Chairman’s leadership in consulting
Board members. Topics and issues discussed Based on our latest review, no changes to the extensively with shareholders following our
include diversity and inclusion, safety, Chairman or Non-Executive Directors' base last AGM, we welcome an open dialogue with
business and strategy, executive and wider fees will be made for 2022. In October 2021, shareholders and look forward to receiving
workforce pay, compliance, our Purpose and adjustments were made to Committee your feedback and support at the upcoming
Values, and the Code of Conduct. membership fees for some Committees - see AGM.
page 117.
Remuneration in 2022 Summary and priorities for 2022
2021 was a year of significant change for Glencore during which a more market aligned, In closing, I would like to thank the
competitive, and fit-for-purpose remuneration structure was introduced for the CEO, following Committee for its support during the
extensive consultation with shareholder and investor bodies. Given that Mr Nagle was appointed challenging year and our shareholders for
on 1 July, the Committee was mindful of the fact that his remuneration package has only been in their constructive engagement and feedback.
place for 6 months. As a result, no changes to the remuneration are being proposed for the Thanks also to our management team for
following year. their decisive leadership and relentless efforts
to continue to deliver exceptional value to our
Fixed Remuneration Annual Bonus Long Term Incentive stakeholders and driving positive change, and
• $1.8m Base Salary • 125% target, 250% • 225% RSUs per year to our employees who worked tirelessly
• Benefits/Pension maximum bonus • Comprehensive underpin throughout the year. Finally, I would like to
• 50% deferred into shares
vesting on the third
focused on a holistic review
of the overall business and
express my gratitude to John Mack, the
former Chair of the Remuneration
anniversary, subject to ESG performance Committee, for his invaluable input and
continuing employment • Test of underpin and, subject contributions during his tenure and for
• Scorecard comprises:
– 55% Financial
to satisfactory performance
based on the assessment of
ensuring an orderly transition.
The Committee’s priorities for 2022 will
– 15% Safety the underpin, cliff vesting on remain the continued implementation of our
the third anniversary. remuneration policy and ensuring that our
– 15% Climate
Requirement to hold all approach to executive remuneration is fair,
– 15% Individual targets
vested restricted stock until responsible, and provides a dynamic
the later of 5-years from the framework that can accommodate the
date of grant or 2 years evolving demands of a changing business
post-employment environment and the priorities of our
shareholders and other stakeholders.
Cynthia Carroll
Chair of Remuneration Committee
15 March 2022

Directors’ Remuneration Report continued promoting and/or rewarding behaviours that $96,243 (September to December 2021).
are not aligned with the Group Values, culture Neither FIT or Mercer have any connection
and policies. with the Company or individual Directors.
Advisers to the Remuneration Committee The Head of Group HR also attends meetings
Remuneration committee Its principal responsibilities are to:
At the start of the year, the Committee at the invitation of the Committee.
Remuneration Committee meetings in 2021
The Committee formally met 4 times during • Regularly review the appropriateness and
relevance of the Remuneration Policy
received remuneration advice from FIT
Remuneration Consultants LLP (‘FIT’). During
AGM Shareholder Voting
the year and considered, amongst other
matters, the Remuneration Policy and the • Determine and agree with the Board the
framework for the remuneration of the
the year, the Committee conducted a formal
tender process following which it appointed
The votes cast to approve the Directors’
remuneration report, for the year ended 31
packages applicable to the Chairman, the December 2020 at the AGM, held on 29 April
Company’s Chairman and the Chief and received independent remuneration
CEO and senior management, the content 2021, were as follows. The factors
Executive Officer advice from Mercer UK Limited (‘Mercer’), its
and approval of the remuneration report and
the appointment of new independent • Establish the remuneration package for the
CEO including the scope of pension
new independent external adviser. Mercer is a
member of the Remuneration Consultants
underpinning the votes against the policy are
discussed in the introductory letter from the
advisers. Chair of the Remuneration Committee.
benefits Group (the UK professional body for
All Committee members were considered
independent on their appointment to the
• Determine the remuneration package for
the Chairman, in consultation with the CEO
Remuneration Consultants) and adheres to its
code of conduct. The Committee is satisfied
Board. Further details concerning
independence of the Non-Executive Directors
• Determine the policy for senior
management remuneration
that the advice provided by Mercer was
objective and independent.
are contained on page 92.
The CEO and CFO are usually invited to attend
• Oversee schemes of performance related
remuneration (including share incentive
The fees paid for advice in respect of 2021
were: FIT $92,919 (2020: $59,554) and Mercer
some or all of the proceedings of plans), and determine awards for the CEO
Remuneration Committee meetings; (as appropriate)
•
Votes ‘For’ Votes ‘Against’ Votes ‘Withheld1’
however, they do not participate in any Ensure that the contractual terms on
Directors’ remuneration policy 74.21% 25.79%
decisions concerning their own remuneration. termination for the CEO are fair and not
Similarly the Chairman is not involved in excessive (7,295,913,840 ) (2,535,818,550 ) (229,047,152 )
discussions regarding his own fees.
The philosophy of the Remuneration Directors’ remuneration report 91.30% 8.70%
Membership and experience of the Committee is to set the Company’s (9,174,048,114 ) (873,699,107 ) (13,032,321 )
Remuneration Committee remuneration policies and practices to
The members of the Committee provide a promote the long‑term success of the 1 A vote withheld is not counted in the calculation of the proportion of votes for and against the resolution.
useful balance of skills, experience and Company and support the implementation of
perspectives to provide the critical analysis the Group’s strategy, while aligning the
required in carrying out the Committee’s interests of the Executive Directors and
function. Each Committee Member has had a executives with those of shareholders
long career in the management of large generally. This policy has consistently
organisations and therefore provides underpinned our approach to executive
considerable experience of remuneration remuneration.
analysis, design and implementation.
The Committee considers corporate
Role of the Remuneration Committee performance on ESG and governance issues
The terms of reference of the Committee set when setting remuneration for the Executive
out its role. They are available on the Director. Additionally, the Committee seeks to
Company’s website at: ensure that the incentive structure for the
Group’s senior management does not raise
glencore.com/who-we-are/governance
ESG or governance risks by inadvertently

Directors’ Remuneration Report continued
UK corporate governance code considerations

The Committee has considered the factors set out in provision 40 of the Corporate Governance Code. In our view, the Remuneration Policy which was approved by shareholders at the 2021 AGM
addresses those factors as set out below:
Clarity: remuneration arrangements should be transparent and Our remuneration policy and pay arrangements are clearly disclosed each year in the Annual Report. The
promote effective engagement with shareholders and the Remuneration Committee proactively seeks engagement with shareholders on remuneration matters.
workforce.
Simplicity: remuneration structures should avoid complexity Our remuneration structure comprises fixed and variable remuneration, with the performance conditions for
and their rationale and operation should be easy to understand. variable elements clearly communicated to, and understood by, participants. The RSP provides a simple and
transparent mechanism for aligning Executive Director and shareholder interests.
Risk: remuneration arrangements should ensure reputational The rules of the annual bonus scheme and RSP provide suitable mechanisms for the Committee to reduce
and other risks from excessive rewards, and behavioural risks award levels and are subject to malus and clawback provisions. The RSP reduces the risk of unintended
that can arise from target-based incentive plans, are identified remuneration outcomes associated with complex performance conditions associated with other forms of
and mitigated. long-term incentive. The comprehensive RSP underpins also mitigate the risk of payments for failure.
Predictability: the range of possible values of rewards to The RSP increases the predictability of reward values (removing the risk of potentially unintended outcomes).
individual directors and any other limits or discretions should be Maximum award levels and discretions are set out in the policy tables and the policy includes scenario charts
identified and explained at the time of approving the policy. showing the potential outcomes on a range of assumptions.
Proportionality: the link between individual awards, the delivery Variable performance-related pay represents a significant proportion of the total remuneration opportunity. The
of strategy and the long-term performance of the Company Committee considers the appropriate financial and personal performance measures each year to ensure that
should be clear. Outcomes should not reward poor performance. there is a clear link to strategy. Discretion is available to the Committee with the ability to reduce awards if
necessary, to ensure that formulaic outcomes do not reward poor performance.
Alignment to culture: incentive schemes should drive The Committee seeks to ensure that personal performance measures under the annual bonus scheme
behaviours consistent with company purpose, values and incentivise behaviours consistent with the Company’s Purpose, Values and culture. The RSP will clearly align the
strategy. Executive Director’s interests with those of shareholders by ensuring a focus on delivering against strategy
including strategy related to environmental, social and governance factors to generate long-term value for
shareholders.

Remuneration at a glance/Policy 2021-22 implementation

Pay Element Purpose and link to strategy Details for Gary Nagle CEO
Summary of Remuneration Policy
The table below summarises Glencore’s Base Salary Provides market competitive fixed Reviewed annually and any From 1 July 2021: US$1.8m
remuneration policy which was approved by remuneration that rewards increases take account of those 2022: $1.8m (no change)
shareholders at the 2021 AGM, how we have relevant skills, responsibilities and applied across the wider
applied this policy for the CEO for the year contribution workforce
ending 31 December 2021 and how we will
apply the policy for 2022. The Policy for the Pension and Provides basic retirement and The pension opportunity and Non-monetary benefits include salary loss,
Executive Directors currently only applies to benefits non-monetary benefits which retirement age (65) are aligned (long-term sickness) and accident/travel
Mr Nagle as he is the only Executive Director. reflect local market practice with the requirements set for insurance. For the retirement benefits, an
Mr Nagle was appointed to the Board on 1 July other employees based in annual cap of $150k has been set
2021. Our policy is based on an extensive Switzerland.
external benchmarking exercise focused on Annual Bonus Supports delivery of short-term On-target/maximum 125%/250%
our UK-listed peer group comprising of Anglo operational, financial and opportunity (% of salary)
American, BHP, BP, Rio Tinto and Shell. This strategic goals Performance conditions (and • Funds From Operations (30%)
group was chosen because the mining
weightings) • Net debt (15%)
•
companies are the best comparators for our
Capex (10%)
•
industrial business while, for the oil
companies, the combined industrial and Safety (15%)
marketing business model is closely aligned • Progress towards 2035 CO2 targets (15%)
to Glencore’s activities. The full text of the
policy can be found in our 2020 Annual
• Individual targets (15%)
Report on the Company’s website at Bonus deferral 50% of annual bonus deferred in shares for three
years
glencore.com/investors/reports-
results/2020-annual-report
Restricted Incentivises the creation of Grant (% of salary) 225%
Share Plan shareholder value over the longer
Vesting conditions Vesting subject to satisfactory performance
term
assessed with a comprehensive underpin which
is based on a holistic review of overall business
and ESG performance over the vesting period
Vesting period Three years

Holding period The latter of five years after the date of grant or
two years post-employment
Minimum Provides long-term alignment In-post (% of pre-tax salary) 500%

Shareholding with shareholders
Post-exit shareholding The lower of the shareholding at departure or
Requirement
requirement (% salary) 500% of salary for a period of two years


Termination Policy Summary
In practice, the facts surrounding any termination do not always fit neatly into defined
categories for good or bad leavers. Therefore, it is appropriate for the Committee to consider
Malus & clawback
Awards subject to the applicable plan rules
• the determination of a good/bad leaver for
incentive plan purposes and the treatment
the suitable treatment on a termination having regard to all of the relevant facts and
circumstances available at that time. This Policy applies both to any negotiations linked to
governing the annual bonus and RSP are of pro-rating and holding periods; notice periods on a termination and any treatment which the Committee may choose to apply
subject to malus and clawback provisions that
allow the Committee to reduce or clawback
• adjustments required in certain
circumstances (e.g. rights issues, corporate
under the discretions available to it under the terms of the annual bonus and long-term
incentive arrangements. The potential treatments on termination under these plans are
awards and may be applied in certain reorganisation and/or change to capital summarised below.
circumstances, such as material failures in the structure); and
financial, operational, compliance, or HSEC
and HR performance of the Company and a
• determining the appropriate performance
conditions, underpins, weightings and
Incentives
Definition
Good leaver
If a leaver is deemed to be a
Bad leaver
If a leaver is deemed to be a
failure to identify and/or report such failure(s); ‘good leaver’; i.e. leaving ‘bad leaver’; typically, voluntary
targets for the annual bonus scheme and
and any other circumstances that are deemed through serious ill health or resignation or leaving for
LTI.
to have a significant impact on the reputation death or otherwise at the disciplinary reasons
or financial prospects of the Company. These The holistic, qualitative judgement, which is discretion of the Committee
provisions apply irrespective whether an applied as an underpin test before final Annual Bonus Pro-rated bonus, typically No awards made and any
award is made in cash or equity. vesting of restricted stock is confirmed, is an with the normal proportion unvested awards would lapse
important aspect to ensure that vesting is not subject to deferral
The Committee may, in its discretion, decide simply driven by a formula or the passage of
to delay vesting and therefore extend the Deferred element of Typically retained for the May be retained or forfeited at
time that may give unexpected or unintended
period during which malus and clawback may bonuses earned balance of the deferral period Committee discretion
remuneration outcomes.
be applied if facts come to light within the previously (although the Committee
period warranting an investigation. The exercise of any discretion will be fully may exceptionally approve
disclosed in the applicable statement of early release)
Discretion and vesting subject to the implementation of the policy. Restricted Share Plan Will receive a pro-rated All unvested awards would
underpin vesting (if applicable, subject normally lapse
In addition to the specific discretions set out Directors’ service contracts
to the application of the
in the policy table on the preceding page, the Executive Director’s Contract underpin at the normal
Committee may exercise various discretions The table below summarises the key features measurement date)
related to the operation of the policy. In of the service contract for Mr Nagle.
particular, these include, but are not limited The Committee retains the
A copy of the service contract of Mr Nagle is
to, the following: discretion to disapply
available for inspection at the Company’s
• the participants of the respective incentive
plans;
registered office as noted on page 258 or as
otherwise indicated in the Notice of 2022
pro-rating however it does
not expect to use this other
• the timing of award grants, vesting and/or

payment;
AGM. than in exceptional
circumstances
• the size of an award and/or payment (subject

to the limits set out in the policy table);
Provision
Notice period
Service contract terms
Twelve months’ notice by
In the event of a change of control or similar event, awards may become payable or vest early
with treatment broadly in line with that for good leavers. Rules permit a roll-over of awards in
• the determination of vesting;
either party appropriate circumstances.
• dealing with a change of control or corporate
restructuring;
Contract date
Expiry date
01 July 2021
Rolling service contract
The UK legislation does not require the inclusion of a cap or limit in relation to payments for loss
of office. The Committee will take all relevant factors into account in deciding whether any
discretion should be exercised in an individual’s favour in these circumstances, and the
Committee will aim to ensure that any payments made are, in its view, appropriate having

regard to prevailing best practice guidelines. The Committee may also, after taking appropriate Annual report on Remuneration
legal advice, sanction the payment of additional sums in the settlement of potential legal The Annual Report on Remuneration and the Annual Statement will be put to an advisory
claims and/or the provision of outplacement and similar services. Shareholder vote at the AGM on 28 April 2022. Sections of the report are subject to audit and
External appointments these have been flagged where applicable.
None currently. The appropriateness of any future appointment will be considered as part of a Implementation report – audited information
wider review of Directors’ interests/potential conflicts. Executive Director remuneration
Potential rewards under various scenarios The emoluments of the Executive Directors for 2021 were as follows:
The chart below is based on the following scenarios, in accordance with UK reporting
regulations: Ivan Glasenberg1 Gary Nagle2
•
Single figure table (US$’000) 2021 2020 2021
Minimum: Mr Nagle’s salary of $1.8m and 2021 benefits of $80k
•
Salary 723 1,447 900
Target pay: as Minimum plus bonus at 50% of maximum plus the LTI grant
• Maximum pay: as Target pay except bonus payable at maximum
Benefits3 4 4 14
• Maximum plus 50%: as Maximum pay except the share price on the LTI is assumed
to increase by 50%
Pension
Other4
29
0
57
–
24
165
Total fixed remuneration 756 1,508 1,103
US$’000
Annual Bonus – – 2,105
$14 Long-term incentives – – –
12,455
Total variable remuneration – – 2,105
$12 2,025
10,430 Total 756 1,508 3,208
$10 4,050 4,050 1 Mr Glasenberg retired as Chief Executive Officer on 30 June 2021 and his salary was pro rated accordingly in 2021.
8,180 2 Mr Nagle was appointed Chief Executive Officer on 1 July 2021 and his 2021 remuneration was pro rated accordingly.
$8 3 Lunch card and unemployment insurance covered by employer, in line with all other Swiss-based employees.
4,050 4 Comprises one-time relocation benefits consisting of household goods shipment, airfare, temporary accommodation and
tax assistance.
$6 The aggregate fees for all Non-Executive Directors for 2021 were $2,756,000 (2020: $2,884,000).
4,500 4,500
The total emoluments of all Directors for 2021 (including pension contributions) were
$4 $6,720,000 (2020: $4,392,000). The variance between 2020 and 2021 is largely due to Mr
1,880 2,250 Glasenberg never participating in the Company’s bonus scheme and share plans, and he did
$2 not receive any shares as part of a compensation scheme during his tenure.
1,880 1,880 1,880 1,880
$0 Incentive outcomes for 2021
Annual Bonus
Minimum Target Maximum Maximum Plus The Company has designed a bonus scorecard for Mr Nagle with a mix of financial and non-
financial measures which the Committee believes appropriately supports the achievement of
Fixed Remuneration LTI Grant Glencore’s financial and strategic ambitions. For 2021, the annual bonus scorecard comprised
Target Bonus LTI + 50% 55% financial measures, 30% HSEC (safety and climate), and 15% individual targets.

The financial targets were set at the start of the financial year based on the comprehensive 2021 Percentage
Financial Actual of maximum
annual business planning process and in anticipation of Mr Nagle succeeding as Chief Measures Weighting Threshold Target Maximum Performance opportunity
Executive Officer on 1 July 2021. These financial targets were set to reflect challenging levels of
Funds From 30% $11.1 bn $12.3 bn $13.5 bn $17.1 bn 100%
performance across a number of operating scenarios and price assumptions, including
Operations
historical performance delivered and the expected impact of the Covid-19 pandemic. The
non-financial targets were developed by the Board in consultation with Mr Nagle, following his Net debt 15% $16.0 bn $13.0 bn $10.0 bn $6.0 bn 100%
appointment as Chief Executive Officer.
The financial measures selected include Funds from Operations (FFO), Net Debt, and Capital Capex 10% $5.6 bn $5.1 bn $4.6 bn $4.5 bn1 100%
Expenditure (Capex). These financial measures are in line with the key metrics tracked by
Glencore’s four-year plan (2021 to 2024) developed as part of its longer-term viability
assessment. FFO was selected to measure Glencore’s ability to deliver margins and generate Total Financial 100%
cash that may be returned to shareholders or further invested in the business for growth. Net 1 Segmental basis as shown in note 2 to the financial statements, adjusted for Marketing segment lease capex and proceeds
Debt was selected to evaluate the actions taken to continuously strengthen Glencore’s balance from sales of Industrial PP&E
sheet and capital structure. Capex was selected to evaluate Glencore’s capital allocation and
progress towards pursuing business reinvestment opportunities that support the pathway to Bonus scorecard – Non-Financial Measures
net zero emissions. Collectively, these financial measures reinforce the importance of Non-financial performance categories include safety, climate, and individual initiatives that
advancing multiple strategies and objectives in parallel to support the Company’s long-term reflect short-term operational and strategic priorities of the business that are critical to our
viability. continued success and are assessed based on performance in line with our business plan and
the contributions of the CEO for the six-month period from the date of his appointment. These
The non-financial measures selected include HSEC (safety and progress towards CO2 reduction
measures comprise a total weighting of 45%. The table below sets out the performance
targets), and individual objectives which, for 2021, considers individual contributions towards
delivered against these non-financial performance categories.
portfolio simplification; maintaining a culture of ethics and compliance throughout Glencore,
and developing and nurturing Glencore’s next generation of leadership, including through the
development of a diverse and inclusive culture. Reference 2021 achievements
The Committee’s assessment of year-end performance is further described below.

Safety • Drove significant year-over-year improvements in all key
health and safety indicators across the business
Bonus scorecard – Financial measures
The table below sets out the 2021 performance delivered against the financial targets under the
Weighting
15% • Positive multi-year trend with year-on-year improvement
exceeding 10% for Lost Time Injury Frequency Rates (LTIFR)
annual bonus scorecard which comprise a total weighting of 55%. and Total Recordable Injury Frequency Rates (TRIFR)
As detailed in the Strategic Report, 2021 was an extraordinary year for Glencore. Amid the
2021 Outturn
90% • Decrease in number of fatalities, in line with multi-year
trend, and a year-on-year improvement exceeding 45% for
ongoing challenges of Covid-19 and under the new leadership team, surging demand for
the Fatality Frequency Rate (FFR)
•
metals and energy products combined with swift and decisive management action enabled
Glencore to achieve record cash generation. FFO delivered in 2021 significantly exceeded the Led the relaunch of the ‘SafeWork’ programme to identify
trailing three year average of $9.3 billion and a sharp focus on achieving the optimal capital and address underlying issues in safety performance and
structure for Glencore drove the reduction of net debt to $6.0 billion, from $15.8 billion in 2020, reinvigorate the safety culture across all operations. In 2021,
significantly deleveraging Glencore’s balance sheet. The financial flexibility also enabled a all assets were assessed against the SafeWork framework.
continued focus on investing in sustaining and expansionary capital projects, as well as Identified gaps are captured in action plans, with regular
transition metals and value accretive Scope 1 and 2 reduction opportunities, in line with and status update reporting to the Board of Directors
supporting the Company’s Paris-aligned total emissions reduction commitments. 2021 actual
performance delivered against each of the financial metrics exceeds the maximum level of
performance based on the performance ranges set at the beginning of the year.

Reference 2021 achievements Reference 2021 achievements

Progress towards
2035 CO2 reduction
• Continued to strengthen and demonstrate climate change
including the establishment of a CEO-led taskforce and
Individual objectives,
comprising:
• Ongoing portfolio simplification through efficient and
commercially attractive disposals of Ernest Henry, Chemoil
targets further embedding a climate change governance structure • Portfolio US terminals, and the Enyo oil downstream business
across the organisation simplification • Acquisition of Cerrejon and investments in energy
Weighting
• Strengthened medium-term total emissions (Scope 1, 2, 3) • Compliance transition, illustrated by the Britishvolt joint venture, are
15%
reduction target and introduced a new short-term target:
15% reduction by 2026 and 50% reduction by 2035 (both
• People consistent with Glencore's climate change strategy and its
stated emissions reduction targets
2021 Outturn
100%
against 2019 baseline levels), in line with the goals of the
Paris Agreement, identifying detailed pathways for
Weighting
15% • Rolled out a strengthened Code of Conduct through a
comprehensive global campaign designed to embed our
achievement. Values of safety, integrity, responsibility, openness,
• Progressed the identification of carbon abatement
2021 Outturn
simplicity and entrepreneurialism throughout our business
opportunities to support the achievement of Glencore’s
emissions reductions targets across the portfolio and
100%
• Strengthened our Group policy framework, setting out the
commitments through which we strive to be a responsible
significantly expanded our Marginal Abatement Cost Curve and ethical operator. In addition to our Values and Code,
(MACC) our Group policy framework comprises a suite of policies,
• Assessment of the impact of carbon prices on industry cost
curves for our key commodities illustrated that our
standards, procedures and guidelines on various key
matters and risks to Glencore
portfolio is resilient to a range of carbon pricing scenarios
given the favourable positions that the majority of our
• Led the development of a diversity and inclusion strategy
to help Glencore attract, develop, and retain the best talent.
assets occupy on these curves Year-over-year improvement and progress in line with the
Hampton-Alexander Review targets (see Our People
section, page 34)
• Defined a new executive leadership team to bolster
leadership and management capability across the
business
• Collaborated effectively with leadership in operations and
all functions across the Group to ensure seamless transition
to CEO role and decisively navigate the impacts of Covid-19
• Continued to strengthen a culture of ethics and
compliance across the business by driving top-down
accountability, investing in personnel, systems, and
external assurance
Total Non-Financial 96.7%

2021 annual bonus outcomes for the CEO Bonus deferral

The Committee conducted a comprehensive assessment in respect of the progress achieved The Remuneration Policy states that 50% of any Annual Bonus plan outcome is deferred into
against the financial and non-financial measures. As discussed above, full payout was shares for a period of up to three years unless otherwise determined by the Committee. The
determined to be appropriate for the financial objectives as well as the individual and climate following table sets out the number of shares that were awarded as a result of the 50% deferral.
objectives. A 90% payout was determined to be appropriate for the safety objective. The
combined formulaic result from the scorecard assessment was 98.5%. Face value
of award1
Date of grant (US$) No. shares Vesting date
The Committee also noted that despite the strong overall performance delivered and value
created for shareholders in 2021, there were also four tragic fatalities. Whilst that is the lowest Gary Nagle 14 March 2022 $1.053m 216,667 13 March 2025
fatality rate recorded in our business since IPO, safety is of paramount importance and this is 1 B
ased on a share price of $4.86 which is the Volume Weighted Average Price (VWAP) of December 2021.
reflected in Glencore’s ultimate ambition of zero fatalities. Therefore, any loss of life is
unacceptable and an important reminder that there is still work to do to improve Glencore’s RSP Awards vesting in 2021
safety across the business. Given the scale of Glencore’s operations, maintaining the There were no RSP awards due to vest during the year.
momentum with driving the global roll out of SafeWork 2.0 remains a key priority to thoroughly
embed structures, systems, and standards to reinforce the requisite safety culture across the To provide insight into the performance orientation embedded in our Restricted Share Plan
business. Additionally, it was noted that whilst 2021 was a hallmark year of earnings for and to ensure that the performance underpins remain appropriate in the context of market
Glencore, there is work to be done to deliver targeted production levels in respect of various developments and the Company’s strategy, the Committee conducted a review of the
projects underway. Reflecting on Glencore’s safety commitment and accountability for performance delivered to date versus the RSP underpins for outstanding awards.
sustainable value creation beyond superior financial returns, the Committee applied downward
The performance underpins are designed to mitigate the risk of payments for failure by
discretion to reduce the overall bonus outcome by 5%, resulting in a bonus outcome of 93.6% of
enabling a reduction in vesting when: (1) shareholders do not receive the minimum distribution
maximum.
required under the Company’s stated distribution policy; (2) absolute and relative shareholder
The following table sets out the outcome of the 2021 annual bonus for Mr Nagle. Note that the performance over the vesting period is deemed unsatisfactory; or (3) progress against ESG
CEO was appointed on the 1 July 2021 and therefore the bonus award has been pro-rated for the initiatives, including the implementation of Company’s Ethics and Compliance programme
period for which Mr Nagle has been in office, resulting in an award of 50% of the annual and the ambitious climate action transition plan is considered to be unsatisfactory. These
opportunity. Consistent with prior periods, no bonus awards have been made to Mr Glasenberg. performance underpins enable a more holistic consideration of performance to reward
sustainable value creation and commercial effectiveness, rather than short-term share price
Formulaic volatility primarily driven by commodity price cycles that is characteristic of traditional total
Max opportunity Performance Outturn
(% of salary) measures Weighting (% of max) shareholder return-based measures commonly used in long-term incentive plans by other
Gary Nagle 250% Financial 55% 100% mining companies.
Non-financial 45% 96.7% Overall, the Committee is pleased with the performance of the company against the underpins
set at the grant of the awards which remain appropriate. A summary of the main considerations
Total formulaic bonus outturn 100% 98.5% is provided on the next page.
Discretion applied - 5%
2021 Annual Bonus Outturn (% of maximum opportunity) 93.6%
2021 Outturn1 $2.105 million

1 For 2021, the maximum opportunity was 250% applied to $900,000, being Mr Nagle's base salary for six months’ service.

Weighting Performance considerations 2021 Restricted share plan awards

Distributions to During 2021, in line with our record cash generation, we completed c.$2.8 During the year ended 31 December 2021, Mr Nagle received an award of restricted shares
shareholders billion of shareholder returns, being c.$1.6 billion of base distribution (in which may vest after a three-year period ending on 30 June 2024, subject to the achievement
respect of 2020 cash flows), a $500 million special distribution and $746 of three stretching performance underpins as discussed above. The award is set out in the table
million of share repurchases. below. The value of the award has been pro-rated to reflect the period of the year that the new
For 2022, based on 2021 cash flows, we are recommending to shareholders a CEO has been in the role since the 1st of July 2021 (i.e. 6 months). This has resulted in an award
$0.26 per share ($3.4 billion) base distribution, payable in two equal with a value equal to half of the normal annual award.
instalments. No RSP awards were made to Mr Glasenberg.
Additionally a new buyback programme of $550 million (c.$0.04 per share)
has been announced. Grant Face value
(% of of award1
annual salary) (US$’000) No. shares2 Vesting date3 Holding Period4
Company 2021 was a year marked by continuing Covid-19 challenges, surging demand Gary Nagle 225% 2,025 461,108 30 June 2024 5-years after grant
performance for our metals and energy products, record cash flow generation for or 2-years
over the year Glencore and the transition to a new leadership team. The Group achieved post-employment
record results, with Adjusted EBITDA rising 84% to $21.3 billion. Net income
1 Face value of award based on the 225% award opportunity multiplied by the pro-rated annual salary of $900k.
before significant items increased 267% to $9.1 billion, while significant items 2 Based on a share price of $4.39 which was the VWAP of the month prior to award, June 2021.
reduced Net income attributable to equity holders to $5.0 billion. 3 Vesting subject to underpins described in the RSP Awards vesting in 2021 section.
For Marketing, Adjusted EBIT grew 11% to a record $3.7 billion. 4 Whichever occurs latest.
For Industrial, Adjusted EBITDA of $17.1 billion was 118% higher compared to
2020, primarily reflecting strong margin growth from our copper, ferroalloys
and coal assets.
Our balance sheet health increased during the year demonstrated by
current Net debt/Adjusted EBITDA and FFO/Net debt metrics of 0.28x and
282.3% respectively, as well as significant rating headroom at our BBB+/Baa1
credit ratings.
ESG Our strong environmental performance has continued with no major or

performance catastrophic events.
Our safety performance has been strong, resulting in significant year-
over-year improvements in all key health and safety indicators across the
business. We have continued to demonstrate climate change leadership by
strengthening the medium-term total emissions reduction targets and
introduced a new short-term target. We have also made progress towards
the carbon footprint reduction goals.
From a governance perspective, we are committed to ensuring a culture of
ethics and compliance across the Group.
Reflecting this, we have dedicated substantial resources over the last few
years to build and implement a best-in-class Ethics and Compliance
programme and during 2021 we rolled out our strengthened Values and
Code of Conduct through a comprehensive global campaign.

Statement of Directors’ shareholdings and interests in shares

As at 31 December 2021 the Executive Director’s shareholding in the Company is as follows:
Total of all scheme

interests as at
Outstanding scheme interests at 31 December 2021 Vested scheme interests 31 Dec 2021
Unvested scheme Unvested scheme Total
interests subject to interests not subject outstanding scheme
performance1 to performance2 interests As at 31 Dec 2020 As at 31 Dec 2021
Gary Nagle 461,108 – 461,108 – – 461,108
1 Includes awards under the Restricted Share Plan.
2 Exclude awards under the deferred bonus plan issued in the course of 2022.
Former Executive Director and CEO, Ivan Glasenberg, waived his rights under the Company’s share plan and did not receive any shares as part of a compensation scheme during his tenure.
Non-Executive Directors do not participate in the Company’s share plan and their interest in shares of the Company is included in the Directors’ report, page 120.
Between 1 January 2022 and the date of this 2021 Annual Report, the Executive and Non-Executive Directors' beneficial interests in the table above remained unchanged, except for the portion of
the Executive Director's 2021 bonus deferred into shares, which was granted in 2022 as disclosed above.
Interests at Interests awarded Interests vested Interests lapsed Interests outstanding Date at which award
Plan Date of award1 1 January 2021 during the year during the year during the year at 31 December 2021 vests
Gary Nagle 21 LTIP 1 July 2021 – 461,108 – – 461,108 30 June 2024
Share Ownership Guidelines Beneficially owned Shareholding

shares as at requirement Current shareholding Shareholding
Glencore is founded on an ownership ethos and the Committee therefore promotes the critical Director 31 Dec 2021 (as % of salary) (as % of salary)1 requirement met?
importance of aligning the interests of the CEO with those of shareholders. The aim is to
Gary Nagle 2,000,000 500% 564% Yes
encourage the build-up of a meaningful shareholding in the Company over time by retaining
shares received through the RSP, pursuant to which vested shares cannot be sold until the later 1 The share price of £3.75 and the exchange rate of £1=US$1.35 as at 31 December 2021 has been used for the purpose of
calculating the current shareholding as a percentage of salary. Unvested awards do not count towards the satisfaction of
of five years from the date award or two years post-departure, or from purchases in the market. the shareholding guidelines.
The in-post shareholding requirement for the CEO is 500% of salary. The CEO will be required to
retain the lower of: (1) actual shareholding on stepping down from the Board and (2) such
shares as then represents the policy level of 500% of salary for 2 years after stepping down
(although the Board may relax this requirement in appropriate cases) with such policy
enforceable through a requirement to lodge such shares at the Company’s request.

CEO pay ratio Relative importance of remuneration spend

The table below shows the ratio of CEO single figure remuneration for 2021 to the comparable, The table below illustrates the change in total remuneration, distributions paid and net profit
indicative, full-time equivalent total remuneration for employees globally, whose pay is ranked from 2020 to 2021.
at the 25th percentile, median and 75th percentile. As we are a global group, which is not 2021 US$m 2020 US$m
headquartered in the UK and whose UK employees represent less than one percent of all our
Distributions and buy-backs attributable to equity holders 2,861 –
employees worldwide, we have decided to amend this comparison to all employees. Our
methodology is fully compliant with the UK Remuneration Regulations except that we have Net income/(loss) attributable to equity holders 4,974 (1,903)
substituted all of our employees for just the UK employees as specified in the Regulations on
the basis that this is a more meaningful comparison. The increase between 2020 and 2021 is Total remuneration 6,012 5,403
due to the change of CEO and the application of the renewed remuneration policy, as noted The figures presented have been calculated on the following bases:
•
earlier in this report.
Distributions and buy-backs – distributions paid and shares bought back during the year
Year Method (A)
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio • Net income/(loss) attributable to equity holders – our reported net income/loss in respect of
the financial year
2021 A $10,404
381:1
$23,530
169:1
$67,734
59:1 • Total remuneration – represents total personnel costs as disclosed in note 24 to the financial
statements which includes salaries, wages, social security, other personnel costs and
2020 A $8,525 $21,212 $65,025 share-based payments receivable by all employees of the Group
177:1 71:1 23:1
Loss of office payments
Additional UK remuneration disclosures No additional payments for loss were made.
Under UK laws and remuneration regulations, UK companies are also required to disclose
Payments to past Directors
various data comparing the percentage change in Directors’ year-on-year remuneration
No payments to past Directors.
compared with employees of the listed company itself, i.e. not on a Group-wide basis. As
Glencore plc has no direct employees, there would be no non-director data to disclose. The Fees retained for external Non-Executive Directorships
changes relative to the Executive Director solely relate to the change of CEO, to whom the new Not applicable.
policy applied for the second half of the year, and all the relevant information is included in this
report. Minor adjustments relating to Non-Executive Directors’ Committee fees are listed
below. On this basis, it was considered unnecessary to include such data.

Alignment between pay and performance The UK reporting regulations also require that a TSR performance graph is supported by a table
Total shareholder return (“TSR”) performance summarising aspects of CEO remuneration, as shown below for the same period as the TSR
This graph shows the value to 31 December 2021, on a total shareholder return (TSR) basis, of performance graph:
£100 invested in Glencore plc on 31 December 2011 compared with the value of £100 invested in History of CEO remuneration
the FTSE 350 Mining Index.
Annual
The Committee believes that the FTSE 350 Mining Index is an appropriate comparator as it variable Long-term
element incentive
includes companies listed in London in the same sector as Glencore. Single figure award rates vesting rates
of total against against
remuneration1 maximum maximum
80 (US$’000) opportunity opportunity
60 2021 Gary Nagle2 3,208 93.6% n/a
40 2021 Ivan Glasenberg3 756 – –
20 21.7
2020 Ivan Glasenberg 1,508 – –
0
(3.8)
(20)
(40) 2018 Ivan Glasenberg 1,503 – –

(60) 2017 Ivan Glasenberg 1,513 _ _
(80)
2016 Ivan Glasenberg 1,509 _ _
(100)
2015 Ivan Glasenberg 1,510 _ _
May-11 Dec-12 Dec-13 Dec-14 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21
FTSE100
Glencore FTSE350 Mining 2013 Ivan Glasenberg 1,509 – –
1 T he figures in this table are reported in US dollars and have been translated to US dollars where applicable at the exchange
rates used for the preparation of the financial statements in each relevant financial year. The value of benefits and pension
provision in the single figure vary as a result of the application of exchange rates.
2 Mr Nagle was appointed Chief Executive Officer on 1 July 2021 and his salary was prorated accordingly in 2021.
3 Mr Glasenberg retired as Chief Executive Officer on 30 June 2021 and his salary was prorated accordingly in 2021.

Implementation report – unaudited information

Non-Executive Director fees Implementation of Remuneration Policy in FY2022
The emoluments of the Non-Executive Directors for 2021 and 2020 were as follows: This section provides details of how the Remuneration Policy will be implemented for 2022.
2021 2020 Fixed remuneration

2021 2020 Committee Committee
Base Fees Base Fees Fees Fees Total 2021 Total 2020 Base salary Effective date Increase % Reason
Name US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gary Nagle US$1,800k 1 January 2022 0% The pay package for the CEO
Non-Executive Chairman has only been in place for 6
months and therefore the
Kalidas Madhavpeddi1 558 122 77 66 635 188
Committee decided to not
Anthony Hayward2 671 1,150 n/a n/a 671 1,150 make any adjustments .
Non-Executive Directors
Glencore's annual pension provision for the CEO is fully aligned with the Swiss requirements
Cynthia Carroll3 123 n/a 61 n/a 184 n/a and that of other employees based in Switzerland, where the CEO is located, which at present
Peter Coates 135 135 186 175 321 310 amounts to a maximum of c.$65,000 per annum.
Martin Gilbert 4
200 200 101 100 301 300 Annual bonus
As the annual bonus scorecard has only been in place for 6 months, the structure of the annual
Patrice Merrin 135 135 163 165 298 300
bonus will remain largely unchanged for 2022; the CEO will continue to have a maximum
Gill Marcus 135 135 96 87 231 222 opportunity of 250% of salary; 50% of any bonus earned will be deferred into shares for 3 years. A
combination of financial, safety and climate measures, as well as individual initiatives that align
David Wormsley5 40 n/a 10 n/a 50 n/a with Glencore’s strategy will continue to apply.
John Mack6 44 135 21 65 65 200 The Committee considers that the detailed performance targets for the 2022 bonus are
Leonhard Fischer7 n/a 135 n/a 79 n/a 214 commercially sensitive and that disclosing precise targets in advance would not be in the
interest of shareholders. Actual targets, performance achieved, and outturns will be disclosed
1 Mr Madhavpeddi was appointed as Non-Executive Chairman on 30 July 2021, from which date he was paid the Chairman’s in the 2022 Annual Report so that shareholders can fully assess the basis for any payouts.
fee that encompasses all Committee memberships.
From 1 January to 30 July 2021, he was paid the same base fee as other Non-Executive Directors plus Committee fees. For Financial Funds From Operations 30%
this period he received $156k, corresponding to a prorated base fee of $79k plus prorated committee fees of $77k. From
31 July to 31 December 2021, he received a prorated Chairman fee of $479k. Net debt 15%
2 Mr Hayward has stepped down as Non-Executive Chairman on 30 July 2021.
3 Ms Carroll was appointed as Non-Executive director on 2 February 2021.
Capex 10%
4 Mr Gilbert is the Senior Independent Director. ESG Safety 15%
5 Mr Wormsley was appointed as Non-Executive Director on 15 September 2021.
Progress towards 2035 CO2 targets 15%
6 Mr Mack stepped down as a Non-Executive Director on 29 April 2021.
7 Mr Fischer stepped down as a Non-Executive Director on 31 December 2020. Individual initiatives 15%

Restricted share plan Non-Executive Director fees for 2022

For 2022, the LTIP will continue to operate on the same basis as in 2021. Awards will be granted The annual fees are paid in accordance with a Non‑Executive Director’s role and responsibilities.
in January 2022 to the CEO under the RSP. When considering grant levels each year, the The Chairman’s fee is inclusive of all his committee responsibilities. The Committee reviewed
Committee takes account of share price performance over the preceding year. Given the share Non-Executive Director fees in October 2021 and determined that adjustments were required
price growth during 2021, the Committee has decided to make no adjustment to the size of the for some Committee membership fees, mostly due to the increased workload required of
award which will be maintained at 225% of salary. Committee members. The Committee believes that the fees remain competitively positioned
against the market. The notes to the table below shows the changes to the Committees' fees.
Shares will only be released (other than to meet tax obligations) on the later of five years from
grant and two years post-employment. There was no change to the base fees.
In line with the approach taken in 2021, the Committee will retain discretion to approve the As a result, the fees payable for 2022 are as follows:
vesting of these awards, subject to the satisfaction of the performance underpins following the US$‘000
third anniversary of the grant, and will carefully evaluate the overall performance of the
Non-Executive Directors base fees
company to ensure there is no reward for failure. In reaching its decision, the Committee will
look at both financial and non-financial performance noting that there may be short-term Chairman 1,150
trade-offs between different factors. In particular, it will consider reducing the level of vesting if Senior Independent Director 200
any of the following occur: Non-Executive Director 135
• Failure to pay the minimum distribution required under the Company’s stated distribution
policy;
Committee1 Fees:
•
ECC
The overall performance and outcomes, both on absolute and relative basis, is considered by
Chair2 60
the Committee unsatisfactory to permit full vesting;
• ESG performance (including climate) is considered unsatisfactory to permit full vesting.
Member3
Remuneration
40
Given the complexity of the Group structure and its clear exposure to commodity price Chair4 55
movements, the underpin deliberately does not apply a formula driven approach to
Member 25
determining vesting levels. Instead, broad discretion has been reserved to consider the position
in the round and to reduce vesting levels if the overall company financial or ESG performance is Audit
not at an adequate level. The Remuneration Committee will make use of all relevant data points Chair4 70
for its review, including the Company’s Ethics and Compliance programme and climate action Member 35
transition plan to assess the progress across the Group concerning material ESG matters. In Nomination
reaching any decision, it will balance both the design principle that the default for restricted
Chair 40
stock is to accept lower awards levels for greater certainty of vesting and, therefore, there
should be a default to full vesting while ensuring that the Remuneration Committee considers Member 20
the overall outcome and avoids payments for failure. HSEC
Chair 125
Member 40
Investigations
Member 40
1 Fees do not apply to the Chairman when he is a member of a Committee.
2 There were no fees previously assigned for the Chair of the ECC Committee as the role was previously fulfilled by the
Chairman.
3 Fees for members of the ECC Committee were decreased by $10k, effective 1 October 2021.
4 Fees for the Chairs of the Remuneration Committee and Audit Committee increased by $10k each, effective 1 October 2021.

Non-Executive Directors' letters of appointment and re-election

All Non-Executive Directors have letters of appointment with the Company for an initial period
of three years from their date of appointment, subject to re-election at each AGM. The Company
may terminate each appointment by immediate notice and there are no special arrangements
or entitlements on termination except that the Chairman is entitled to three months’ notice.
Copies of the letter of appointment for Non-Executive Directors are available for inspection at
the Company’s registered office address as noted on page 258.
Approval
This report in its entirety has been approved by the Committee and the Board of Directors and
signed on its behalf by:
Cynthia Carroll
Chair of the Remuneration Committee
15 March 2022

Directors’ Report Corporate governance opportunities for career development and

promotion.
A report on corporate governance and
compliance with the UK Corporate If disability occurs during employment, the
Governance Code is set out in the Corporate Group seeks to accommodate that disability
Corporate structure Governance report and forms part of this where reasonably possible, including with
Glencore plc is a public company limited by report by reference. appropriate training.
shares, incorporated in Jersey and domiciled
in Baar, Switzerland. Its shares are listed on
Health, safety, environment & The Group’s Code of Conduct and other
the London and Johannesburg Stock
communities (HSEC) policies support and protect the interests of
Exchanges. An overview of health, safety and employees in a number of ways such as
environmental performance and community requiring open, fair and respectful
Financial results and distributions participation is provided in the Sustainability communication, commitment to respect
The Group’s financial results are set out in section of the Strategic report. The work of the human rights, fair and equitable conditions of
the financial statements section of this HSEC Board committee is contained in the employment and, above all, a safe working
Annual Report. Corporate Governance report. environment.
A total capital distribution of US$0.16 per share Greenhouse gas emissions Employee communication is mainly provided
was paid in two instalments in 2021 in respect A summary of the Group’s greenhouse gas through the Group’s intranet, corporate
of the 2020 financial year. The Board is emissions is included on page 21. website and via emails. A range of information
recommending to shareholders an aggregate is made available to employees, including all
capital distribution of US$0.26 per share in Taxation policy
policies and procedures applicable to them as
John Burton, Company Secretary respect of the 2021 financial year as further Our Tax Policy: glencore.com/group-tax- well as information on the Group’s financial
detailed on page 52. policy and our most recent Payments to performance and the main drivers of its
Governments report: glencore.com/ business. Employee consultation depends
Review of business, future payments-to-governments-report set out the
developments and post balance upon the type and location of assets or office
Company’s approach to tax and transparency but includes Group-wide surveys – see the
Introduction sheet events and disclose the payments to governments Our people section on page 34.
This Annual Report is presented by the A review of the business and the future made by the Group on a country-by-country
Directors on the affairs of Glencore plc (the developments of the Group is presented in and project-by-project basis. Directors’ conflicts of interest
‘Company’) and its subsidiaries (the ‘Group’ the Strategic Report. Under Jersey law and the Company’s Articles
or ‘Glencore’), together with the financial Exploration and research and
A description of acquisitions, disposals, and of Association (which mirror section 175 of the
statements and auditor’s report, for the year development
material changes to Group companies UK Companies Act 2006), a Director must
ended 31 December 2021. The Directors’ The Group’s business units carry out avoid a situation in which the Director has, or
undertaken during the year is included in the exploration and research and development
Report includes details of the business, the can have, a direct or indirect interest that
Financial review and in note 26 to the financial activities that are necessary to support and
development of the Group and likely future conflicts, or possibly may conflict, with the
statements. expand their operations.
developments as set out in the Strategic interests of the Company. The duty is not
Report, which together form the Financial instruments Employee policies and involvement infringed if the matter has been authorised by
management report for the purposes of the Descriptions of the use of financial the Directors. Under the Articles, the Board
Glencore has diversity and recruitment
UK Financial Conduct Authority’s Disclosure instruments and financial risk management has the power to authorise potential or actual
policies that aim to treat individuals fairly and
and Transparency Rule (DTR) 4.1.8R. The objectives and policies, including hedging conflict situations. The Board maintains
not to discriminate on the basis of gender,
notice concerning forward-looking activities and exposure to price risk, credit risk, effective procedures to enable the Directors
race, ethnicity, disability, religion or beliefs, or
statements is set out at the end of the Annual liquidity risk and cash flow risk are included in to notify the Company of any actual or
on any other basis. Applications for
Report. notes 27 and 28 to the financial statements. potential conflict situations and for those
employment and promotion are fully
considered on their merits, and employees situations to be reviewed and, if appropriate,
are given appropriate training and equal to be authorised by the Board. Directors’
conflict situations are reviewed annually.
A register of authorisations is maintained.

Directors’ Report continued distribution. On liquidation, holders of The Directors may also refuse to register a
ordinary shares may share in the assets of the transfer of a certificated share unless the
Company. instrument of transfer is:
Holders of ordinary shares are also entitled to (i)6 lodged, duly stamped (if necessary), at the
Directors’ liabilities and indemnities Share capital and shareholder rights
receive the Company’s Annual Report and registered office of the Company or any
The Company has granted third party As at 28 February 2022, the issued ordinary Accounts (or a summarised version) and, other place as the Board may decide
indemnities to each of its Directors against share capital of the Company was subject to certain thresholds being met, may accompanied by the certificate for the
any liability that attaches to them in $145,862,001 represented by 14,586,200,066 requisition the Board to convene a general share(s) to be transferred and/or such other
defending proceedings brought against ordinary shares of $0.01 each, of which meeting (GM) or submit resolutions for evidence as the Directors may reasonably
them, to the extent permitted by Jersey law. 1,401,241,158 shares are held in treasury and proposal at AGMs. None of the ordinary shares require as proof of title; or
In addition, Directors and Officers of the 33,541,915 shares are held by Group employee carry any special rights with regard to control
Company and its subsidiaries are covered by benefit trusts. (ii)6in respect of only one class of shares.
of the Company.
directors & officers liability insurance.
Major interests in shares Holders of ordinary shares are entitled to
Transfers of uncertificated shares must be
Directors and officers Taking into account the information available attend and speak at GMs of the Company and
carried out using CREST and the Directors can
The names of the Company’s Directors and to Glencore as at 28 February 2022, the table refuse to register a transfer of an
to appoint one or more proxies or, if the holder
Officers who were in office at the end of 2021, below shows the Company’s understanding uncertificated share in accordance with the
of shares is a corporation, a corporate
together with their biographical details and of the interests in 3% or more of the Total regulations governing the operation of CREST.
representative. On a show of hands, each
other information, are shown on pages 86-89. Voting Rights attaching to its issued ordinary holder of ordinary shares who (being an The Directors may decide to suspend the
share capital: individual) is present in person or (being a registration of transfers, for up to 30 days a
Directors’ interests Percentage corporation) is present by a duly appointed year, by closing the register of shareholders.
Details of interests in the ordinary shares of Number of Total
of Glencore Voting corporate representative, not being himself a The Directors cannot suspend the registration
the Company of those Directors who held
Name Shares Rights member, shall have one vote. On a poll, every of transfers of any uncertificated shares
office as at 31 December 2021 are given below:
Qatar Holding 1,221,497,099 9.26 holder of ordinary shares present in person or without obtaining consent from CREST.
Number Percentage Ivan Glasenberg 1,211,957,850 9.19 by proxy shall have one vote for every share of
of Glencore of Total Voting which he or she is the holder. Electronic and There are no other restrictions on the transfer
Name Shares Rights BlackRock, Inc. 1,070,599,712 8.12 of ordinary shares in the Company except: (1)
paper proxy appointments and voting
Executive Director Aristotelis Mistakidis 435,175,134 3.30 certain restrictions may from time to time be
instructions must be received not later than
Gary Nagle 2,000,000 0.01 Share capital 48 hours before a GM. A holder of ordinary imposed by laws and regulations (for example
shares can lose the entitlement to vote at GMs insider trading laws); (2) pursuant to the
The rights attaching to the Company’s
Non-Executive Directors Company’s share dealing code whereby the
ordinary shares, being the only share class of where that holder has been served with a
Cynthia Carroll – – disclosure notice and has failed to provide the Directors and certain employees of the
the Company, are set out in the Company’s
Peter Coates 1,665,150 0.01 Company with information concerning Company require approval to deal in the
Articles of Association (the ‘Articles’), which
interests held in those shares. Except as (1) set Company’s shares; and (3) where a
Martin Gilbert 50,000 0.00 can be found at glencore.com/who-we-are/
out above and (2) permitted under applicable shareholder with at least a 0.25% interest in
Kalidas – – governance. Subject to Jersey law, any share
statutes, there are no limitations on voting the Company’s issued share capital has been
Madhavpeddi may be issued with or have attached to it such
rights of holders of a given percentage, served with a disclosure notice and has failed
preferred, deferred or other special rights and
Gill Marcus – – to provide the Company with information
restrictions as the Company may by special number of votes or deadlines for exercising
Patrice Merrin 60,000 0.00 voting rights. concerning interests in those shares. There
resolution decide or, if no such resolution is in
are no agreements between holders of
David Wormsley – – effect, or so far as the resolution does not
The Directors may refuse to register a transfer ordinary shares that are known to the
make specific provision, as the Board may
of a certificated share which is not fully paid, Company, which may result in restrictions on
decide.
provided that the refusal does not prevent the transfer of securities or on voting rights.
No such resolution is currently in effect. dealings in shares in the Company from
taking place on an open and proper basis or The rules for appointment and replacement
Subject to the recommendation of the Board,
where the Company has a lien over that share. of the Directors are set out in the Articles.
holders of ordinary shares may receive a
Directors can be appointed by the Company

Directors’ Report continued Longer-term viability

In accordance with provision 31 of the Code,
the Directors have assessed the prospects of
the Group’s viability over a longer period than
by ordinary resolution at a GM or by the Board Going concern the 12 months required by the going concern
upon the recommendation of the Nomination The financial position of the Group, its cash assessment above. A summary of the
Committee. The Company can remove a flows, liquidity position and borrowing assessment made is set out on page 71 in the
Director from office, including by passing an facilities are set out in the Strategic Report. Risk Management section.
ordinary resolution or by notice being given Furthermore, notes 27 and 28 to the financial
by all the other Directors. The Company may Based on the results of the related analysis,
statements include the Group’s objectives
amend its Articles by special resolution the Directors have a reasonable expectation
and policies for managing its capital, its
approved at a GM. that the Group will be able to continue in
financial risk management objectives, details
operation and meet its liabilities as they fall
The powers of the Directors are set out in the of its financial instruments and hedging
due over the four-year period of this
Articles and provide that the Board may activities and its exposure to credit and
assessment. They also believe that the review
exercise all the powers of the Company liquidity risk. Significant financing activities
period of four years is appropriate having
including to borrow money. The Company that took place during the year are detailed in
regard to the Group’s business model,
may by ordinary resolution authorise the the Financial review section, which starts on
strategy, principal risks and uncertainties,
Board to issue shares, and increase, page 48.
sources of funding and liquidity.
consolidate, sub-divide and cancel shares in The results of the Group, principally pertaining
accordance with its Articles and Jersey law. to its industrial asset base, are exposed to
Auditor
fluctuations in both commodity prices and Each of the persons who is a Director at the
Purchase of own shares date of approval of this Annual Report
currency exchange rates whereas the
In August 2021, the Company announced the confirms that:
performance of marketing activities is
commencement of a buyback programme of
primarily physical volume driven with a.6 s o far as the Director is aware, there is no
up to $650 million that terminated on 7
commodity price risk substantially hedged. relevant audit information of which the
January 2022, and pursuant to which the
Company purchased 135,120,406 of its own The Directors have a reasonable expectation, Company’s auditor is unaware; and
ordinary shares. The authority to purchase having made appropriate enquiries, that the b.6 t he Director has taken all the steps that he
own shares was approved by the shareholders Group has adequate resources to continue in or she ought to have taken as a director in
on 29 April 2021. its operational existence for the foreseeable order to make himself or herself aware of
future. For this reason they continue to adopt any relevant audit information and to
As announced on 15 February 2022, the
the going concern basis in preparing the establish that the Company’s auditor is
Company launched a new buyback
financial statements. The Directors have aware of that information.
programme of $550 million, which started on
made this assessment after consideration of
21 February 2022. Deloitte LLP have expressed their willingness
the Group’s budgeted cash flows and related
The Directors will seek a similar authority at assumptions including appropriate stress to continue in office as auditor and a
the Company’s AGM on 28 April 2022. testing of the identified uncertainties (being resolution to reappoint them will be proposed
primarily commodity prices and currency at the forthcoming AGM.
exchange rates) and undrawn credit facilities,
monitoring of debt maturities, and after
review of the Guidance on Risk Management,
Internal Control and Related Financial and
Business Reporting 2014 as published by the
UK Financial Reporting Council.

Directors’ Report continued
Statement of Directors’ responsibilities However, the Directors are also required to:
The Directors are responsible for preparing
the Annual Report and financial statements in • Properly select and apply accounting
policies
accordance with applicable law and
regulations. • Present information, including accounting
policies, in a manner that provides relevant,
Company law requires the Directors to reliable, comparable and understandable
prepare financial statements for the Company information
for each financial year. • Provide additional disclosures when
compliance with the specific requirements
The financial statements are prepared in
in IFRSs are insufficient to enable users to
accordance with International Financial
understand the impact of particular
Reporting Standards (IFRS) adopted by the
transactions, other events and conditions
United Kingdom, and IFRS as issued by the
on the entity’s financial position and
International Accounting Standards Board.
financial performance
The financial statements are required by law
to be properly prepared in accordance with • Make an assessment of the Company’s
ability to continue as a going concern
the Companies (Jersey) Law 1991. International
Accounting Standard 1 requires that financial The Directors are responsible for keeping
statements present fairly for each financial proper accounting records that disclose with
year the Company’s financial position, reasonable accuracy at any time the financial
financial performance and cash flows. This position of the Company and enable them to
requires the faithful representation of the ensure that the financial statements comply
effects of transactions, other events and with the Companies (Jersey) Law 1991. They
conditions in accordance with the definitions are also responsible for safeguarding the
and recognition criteria for assets, liabilities, assets of the Company and hence for taking
income and expenses set out in the reasonable steps for the prevention and
International Accounting Standards Board’s detection of fraud and other irregularities. The
Framework for the preparation and Directors are responsible for the maintenance
presentation of financial statements. and integrity of the corporate and financial
In virtually all circumstances, a fair information included on the Company’s
presentation will be achieved by compliance website. The legislation governing the
with all applicable IFRSs. preparation and dissemination of the
Company’s financial statements may differ
The Directors confirm that the Annual Report from legislation in other jurisdictions.
and accounts taken, as a whole, is fair,
balanced and understandable, and provides Signed on behalf of the Board
the information necessary for shareholders to John Burton
assess the performance, strategy and Company Secretary
business model of the Company. 15 March 2022

Directors’ Report continued Confirmation of Directors’

Responsibilities
We confirm that to the best of our knowledge:
Information required by Listing Rule LR 9.8.4C • The consolidated financial statements,

prepared in accordance with International
In compliance with UK Listing Rule 9.8.4C the Company discloses the following information:
Financial Reporting Standards (IFRS)
Listing Rule Information required Relevant disclosure adopted by the United Kingdom, and IFRS
as issued by the International Accounting
9.8.4(1) Interest capitalised by the Group See note 9 to the financial statements
Standards Board and the Companies
9.8.4(2) Unaudited financial information as See Chief Executive Officer’s review (Jersey) Law 1991, give a true and fair view of
required (LR 9.2.18) the assets, liabilities, financial position and
9.8.4(5) Director waivers of emoluments See Directors’ remuneration report income of the Group and the undertakings
9.8.4(6) Director waivers of future emoluments See Directors’ remuneration report included in the consolidation taken as a
whole
•
9.8.4(12) Waivers of dividends See note 19 to the financial statements
9.8.4(13) Waivers of future dividends See note 19 to the financial statements The management report, which is
incorporated in the Strategic Report,
9.8.4(14) Agreement with a controlling Not applicable
includes a fair review of the development
shareholder (LR 9.2.2A)
and performance of the business and the
There are no disclosures to be made in respect of the other numbered parts of LR 9.8.4. position of the Group and the undertakings
included in the consolidation taken as a
whole, together with a description of the
principal risks and uncertainties they face
• The Annual Report and consolidated
financial statements, taken as a whole, are
fair and balanced and understandable and
provide the information necessary for
shareholders to assess the performance,
position, strategy and business model of
the Company
The consolidated financial statements of the
Group for the year ended 31 December 2021
were approved on the date below by the
Board of Directors.
Signed on behalf of the Board
Kalidas Madhavpeddi
Chairman
Gary Nagle
Chief Executive Officer
15 March 2022

Useful links
Latest Glencore 2021 production tables

financial reports (Excel format)
2021 Resources and Climate Report 2020:

Reserves report Pathway to Net Zero
Pathway to Net Zero: Sustainability

2021 Progress Report Summary - 2020
Payments to Governments Modern Slavery

Report - 2020 Statement - 2020
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Financial
Statements
2021
Independent Auditor’s report to the members of Glencore plc
Report on the audit of the financial statements
1. Opinion
In our opinion the financial statements of Glencore plc and its subsidiaries (together “the Group”):
• give a true and fair view of the state of the Group’s affairs as at 31 December 2021 and of the Group’s profit for the year then
ended;
• have been properly prepared in accordance with United Kingdom adopted international accounting standards; and
International Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”), and
• have been properly prepared in accordance with Companies (Jersey) Law 1991.
We have audited the financial statements of the Group which comprise:
•the consolidated statement of income;
•the consolidated statement of comprehensive income;
•the consolidated statement of financial position;
•the consolidated statement of cash flows;
•the consolidated statement of changes of equity; and
•the related notes 1 to 36.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom adopted
international accounting standards and IFRSs as issued by the IASB.
2. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our
responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial
statements section of our report.
We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the Financial Reporting Council’s (the “FRC’s”) Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services
provided to the Group for the year are disclosed in note 30 to the financial statements. We confirm that we have not provided any
non-audit services prohibited by the FRC’s Ethical Standard to the Group.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independent Auditor’s report to the members of Glencore plc continued
3. Summary of our audit approach
Key audit matters The key audit matters that we identified in the current year were:
• Government investigations;
• Impairments of non-current assets;
• Potential impact of climate change on non-current assets;
• Classification of trading contracts and arrangements which contain a financing element;
• Marketing revenue recognition and fair value measurements; and
• Taxation: Uncertain tax positions and the recognition and recoverability of deferred taxes.
Our assessment of the Group’s key audit matters is consistent with those identified in 2020.
Materiality The materiality that we used for the Group financial statements in the current year was $300 million
(2020: $175 million). We have enhanced our approach to determining materiality by adding a balance
sheet metric (net assets) in addition to our previous approach of using a 3-year average adjusted profit
before tax metric.
Scoping We focused our Group audit scope primarily on the audit work at 25 components, representing the
Group’s most material marketing operations and industrial assets. These 25 components account for
77% of the Group’s net assets, 87% of the Group’s revenue and 83% of the Group’s adjusted EBITDA
(refer to segment information in note 2 to the financial statements).
We have enhanced the description of our climate-related considerations in the scoping section in this
report providing additional background and context to our climate change risk assessment and
scoping of our audit procedures.
Significant Other than the above and the enhancement of our approach to determining materiality, there were no
changes in our significant changes to our audit approach when compared to 2020.
approach
4. Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the Group’s ability to continue to adopt the going concern basis of accounting
included:
• We considered the effect of key risks on the Group’s business model as part of our risk assessment and analysed how these
risks might affect the Group’s liquidity position, including access to capital, and thus its ability to continue to operate as a going
concern. The risks we considered to have the greatest impact are commodity prices over the forecast period, and the unutilised
funding facilities available.
• We assessed the basis for the assumptions used in the forecast information including operational profitability, the Group’s debt
repayment obligations and capital expenditure requirements as well as undrawn facilities.
• We assessed the downside stress scenarios applied by the directors in their analysis, in particular whether the downside
scenarios represented an appropriately robust sensitivity. We evaluated the effect of these scenarios on key metrics such as
liquidity headroom, net debt and net debt to Adjusted EBITDA over the going concern period and performed additional
sensitivities to further challenge the Group’s forecast position.
• We assessed whether the investigations settlement and contingent liabilities could have a material effect on the Group’s ability
to continue as a going concern.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group’s ability to continue as a going concern for a period of at least
twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
126 Glencore Annual Report 2021

5. Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation
of resources in the audit, and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
5.1 Government investigations
Description of key audit matter
The Group remains the subject of certain investigations by regulatory and enforcement authorities as disclosed in notes 23 and
32 to the financial statements. The Board discussions on this matter are set out in the Corporate Governance Report on page 93
and the Group’s discussion on the Laws and enforcement principal risk in the Strategic Report set out on pages 75-76.
The Investigations Committee of the Board is overseeing the Group’s response to these investigations. The Group has engaged
external legal counsel and forensic experts (“the advisors”) to assist the Group in responding to the various investigations, to
represent it in litigation and to perform additional investigations at the request of the Investigations Committee covering
various aspects of the Group’s business.
In accordance with the accounting criteria set out under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, the
judgement of the Investigations Committee (guided by the General Counsel and the Group’s external legal counsel) is required in:
• determining whether the Group’s provision estimate to resolve the U.S., UK and Brazilian investigations is complete and
accurate, and that the related disclosures made by the Group on the nature, timing and associated uncertainties relating to the
provision as required by IAS 37 are adequate; and
• evaluating whether a present obligation exists for the ongoing Swiss and Dutch investigations and potential additional
follow-on investigations or claims, and whether the disclosure of these as contingent liabilities is adequate.
On 15 February 2022, the Group announced that it presently expects to resolve the U.S., UK and Brazilian investigations in 2022.
Accordingly, and based on the Company’s current information and understanding, the Group has recognised a provision as at 31
December 2021 in the amount of $1,500 million representing the Company’s current best estimate of the costs to resolve these
investigations – refer note 23.
At 31 December 2021, taking all available evidence into account, with respect to the Swiss and Dutch investigations and any
potential additional investigations or claims, the Investigations Committee concluded that it is not probable that a present
obligation existed at the end of the reporting period. The timing and amount, if any, of financial effects (such as fines, penalties
or damages, which could be material) or other consequences, including external costs, from any of the various investigations or
claims and any change in the investigations’ scope is not possible to predict or estimate. Consequently, no liability has been
recognised, nor has any estimate of the contingent liability been disclosed, in relation to these matters in the consolidated
statement of financial position at 31 December 2021. The Group continues to cooperate with the Swiss and Dutch authorities –
refer note 32.
We identified the following matters that led us to consider this to be a key audit matter:
•
the risk that the provision made by the Group is not complete and accurate, and the related disclosure made by the Group on
the nature, timing and associated uncertainties relating to the provision as required by IAS 37 is inadequate; and
•
the risk that the judgement on the probability that a present obligation did not exist for the Swiss and Dutch investigations
and potential additional investigations or claims is inappropriate, and the disclosure of these as contingent liabilities may not
be adequate.
How the scope of our audit responded to the key audit matter
In response to the investigations by regulatory and enforcement authorities we performed the following:
General procedures
•
We gained an understanding of the Investigations Committee’s and General Counsel’s process and internal controls for
reviewing the IAS 37 assessment and review of the disclosures in the Annual Report.
•
We attended regular briefings from the General Counsel and the Group’s external legal counsel during the year.
•
We assessed the competence, capability and objectivity of all the key advisors used by the Group.
•
We considered whether the advisors’ scope and outcomes were sufficient to inform the Investigations Committee’s
assessment and representation of whether a present obligation exists and the adequacy of the provision made at
31 December 2021.
•
We reviewed documents from the investigating authorities and the internal meeting minutes of the Investigations Committee.
•
We obtained an understanding of the stage of each investigation and process being followed by each regulatory and
enforcement authority in reaching resolution with Glencore from the Glencore General Counsel and gave direct challenge to
and sought confirmation from external counsel on each matter.
•
We performed a benchmark of Glencore’s disclosure against announced resolutions of similar magnitude with similar
regulatory and enforcement authorities.


Completeness and accuracy of provision made in respect of the U.S., UK and Brazilian investigations
• We agreed the provision amount to supporting documents from relevant authorities, where available. In the absence of these,
we sought independent confirmation from relevant external legal counsel on the status of engagement with the authorities
and a confirmation of the provision amounts under negotiation.
• In our challenge of the provision calculation prepared by management’s experts, we utilised Deloitte forensic specialists and
audit team members familiar with the relevant trading businesses to:
• challenge the use of the methods selected, the significant assumptions applied, and the sources of data used by
management and its advisors, including testing the reconciliation to documents from the enforcement authorities;
• directly challenge the work performed by management’s experts by performing walk through procedures on a sample of
items included in the calculation and reperforming the provision calculation; and
• challenge the assumptions adopted for those assumptions where a range of outcomes is possible and reperform the range
of outcomes calculation.
• We enquired of the General Counsel and reviewed a memorandum prepared by the Group’s independent external counsel to
determine whether the conduct currently taken into account in the provision calculation is complete based on known
information to date.
• We challenged the adequacy of the Group’s disclosure in describing the nature, timing and associated uncertainties relating to
the provision recognised.
Appropriateness of contingent liability assessment and relevant disclosures in relation to the ongoing Swiss and Dutch
investigations, and potential additional follow-on investigations or claims
• We enquired of the Investigations Committee, the General Counsel and the Group’s external legal counsel as to their
awareness of known or likely non-compliance with laws and regularions from the Swiss and Dutch investigations to date which
could indicate the existence of a present obligation at 31 December 2021, and whether any such non-compliance could result in
a potential material outflow (penalty or fine).
• We obtained direct written confirmation from Swiss and Dutch legal counsel as to the current stage of the Swiss and Dutch
investigations respectively, and their assessment of the probability of a present obligation existing at the reporting date.
• Having regard to potential additional follow-on investigations or claims, we enquired of the General Counsel and obtained
written confirmation from external legal counsel on the potential for additional follow-on investigations or claims, and their
assessment of the probability of a present obligation existing at the reporting date.
• Working with our Deloitte forensic specialists, we considered whether the Investigations Committee’s conclusions were
reasonable that a present obligation did not exist at the end of the reporting period and that the timing and amount, if any, of
financial effects from any of these investigations and any change in their scope is not possible to predict or estimate.
Key observations
Based on the results of our procedures, we concluded that:
• the provision recognised in respect of the U.S., UK and Brazilian investigations is reasonable and in accordance with the
requirements of IAS 37;
• the financial statement disclosures relating to the investigations by regulatory and enforcement authorities (note 23),
including key judgement and estimation uncertainty sensitivities, are appropriate and in accordance with the requirements
of IAS 37 and IAS 1; and
• the contingent liability disclosures made covering the ongoing Swiss and Dutch investigations, and potential future
investigations and/or claims (note 32), are complete, appropriate and in accordance with the requirements of IAS 37 and
IAS 1.

5.2 Impairments of non-current assets

The carrying value of the Group’s non-current assets within the scope of IAS 36 Impairment of assets includes intangible assets,
property, plant and equipment (“PPE”), non-current advances and loans, and investments in associates and joint ventures,
which amounted in total to $65,215 million at 31 December 2021. Refer to notes 7, 9, 10, 11 and 12.
In assessing the recoverability of non-current assets, management must make significant assumptions about factors such as:
• expected future prices of commodities key to the Group (particularly coal, oil, copper, cobalt, zinc, ferroalloys and nickel), foreign
exchange rates, production levels, operating costs and discount rates;
• future mining and tax legislation, and political and other macro-economic developments;
• responses to climate change impacts by regulators and consumers, which could negatively impact demand for the Group’s
products, particularly coal (refer to ‘Potential impact of climate change on non-current assets’ key audit matter below); and
• geological and other operational challenges that could negatively affect an asset’s performance over time.
For non-current advances and loans, the Group is also exposed to credit and performance risk arising from risks related to
non-performance by the counterparty, particularly in markets demonstrating significant price volatility with limited liquidity
and terminal markets, where suppliers may be incentivised to default on delivery and customers may be unwilling to take
contracted deliveries or be unable to pay. Assessing counterparty performance, solvency and liquidity risks can be highly
subjective.
When an impairment or impairment reversal indicator exists in the Group’s significant assets and investments, management
completes an impairment review.
As disclosed in note 7, pre-tax impairments totalling $1,452 million were recorded in PPE and intangible assets and $484 million
of impairments were recognised in investments and non-current VAT receivables. In addition, $98 million of pre-tax impairment
reversals were recognised in advances and loans.
The outcome of impairment or impairment reversal assessments can vary significantly if different assumptions are applied as
further described in the sensitivity disclosures made by the Group within “Key sources of estimation uncertainty” in notes 1 and
note 7, as well as the Audit Committee Report on page 99.
We have identified a potential risk of fraud through management bias due to the significant estimation uncertainty and
subjectivity in certain judgements and key assumptions applied by management in its impairment and impairment reversal
assessment.
General procedures
•
We considered management’s assessment of impairment risk and its assessment of the indicators of impairment or
impairment reversal, and performed an independent assessment of impairment and impairment reversal indicators.
•
We analysed management’s determination of relevant cash-generating units (“CGUs”) by reference to the requirements of the
accounting standards and our understanding of the nature of the mining operations and the extent to which active markets
are considered to exist for intermediary products.
•
We obtained an understanding of the methodology applied by management in developing its impairment and impairment
reversal assessments, which included understanding the inherent subjectivity and complexity of underlying key assumptions,
as well as relevant controls in management’s impairment and impairment reversal assessment process.
•
For non-current advances and loans, we obtained an understanding of management’s method of assessing these assets for
impairment, which included obtaining an understanding of relevant controls in the Group’s centralised and local credit and
performance risk monitoring processes.
Challenge of key model assumptions and overall reasonableness of impairment or impairment reversal assessment
• We challenged the significant macroeconomic assumptions used and the data sources on which these assumptions were
based.
• We considered the risk of management bias in macroeconomic forecast assumptions and estimates with the support of
Deloitte valuations specialists by analysing management’s inputs against third party forecast data, Deloitte’s independent
assessment of discount rates, and reconciliations to latest internal budget information.
• Where indicators of impairment or impairment reversal were identified, we performed detailed testing on management’s
impairment calculations and where appropriate based on our risk assessment, we utilised Deloitte valuation and mining
specialists to assess the reasonableness of management’s underlying model inputs and key assumptions, and the basis for
technical mining, operational and financial inputs (e.g. price, discount rate, reserve and resource estimation, production
parameters, grade and recovery rates, resource conversion rates, and operating and capital costs). Production and cost
assumptions were analysed against historical performance as well as approved budgets and life of mine (“LOM”) plans, where
applicable, and minable tonnes assumptions were assessed against reserves and resources estimates.
• We assessed the competence, capability and objectivity of management’s experts responsible for preparing the resources and
reserves statements.

• We assessed the appropriateness of key mine-specific assumptions and the judgements taken in applying these assumptions
within the LOM models, such as the incorporation of price-specific discounts or premiums, changes in tax legislation or other
legal or regulatory assumptions (e.g. rehabilitation provisions).
• We performed a stand back assessment and evaluated management’s impairment or impairment reversal assessment for any
evidence of management bias in assumptions and judgements applied.
• We challenged management’s assessment of recoverability of advances and loans by reviewing supporting agreements and
obtaining evidence of current performance, historical patterns of trading and settlement, correspondence with the third party
and any other information we are aware of that may influence the third party’s ability to perform.
• We evaluated the adequacy of impairment related disclosures in the financial statements, including the key assumptions used
and the completeness and accuracy of sensitivities disclosed.
• For climate related impairment matters, please refer to our key audit matter under 5.3 below.
Key observations
Based on the results of our assessment of management’s methodology for impairment and impairment reversal testing and
modelling, we concluded that the methodology applied complies with the accounting framework, and that management’s
assessment of impairment indicators was appropriate. We found that the level of management review and documentation
retained relating to certain judgements and key assumptions in complex models requires improvement and considered this
finding in our audit response.
We concluded that key assumptions to which impairment or impairment reversal outcomes were sensitive were reasonable in
comparison to historical actuals achieved, third party evidence and/or our specialists’ judgements.
Based on the results of our testing, we concluded that the recoverable amounts for the CGUs tested were within an acceptable
range of outcomes, although certain assumptions applied are subject to high levels of estimation uncertainty. We considered
management’s disclosures on key assumptions and impairment or impairment reversal sensitivities and found them to be in
compliance with IFRS requirements.
We concluded that the Group’s impairment charge in relation to non-current loans and advances and non-current VAT
receivables was appropriate.
5.3 Potential impact of climate change on non-current assets

As described on pages 82-83 and 19-26 of the Annual Report, climate change is a material issue that can affect Glencore’s
business through currently enacted and prospective regulations to reduce carbon emissions and ultimately limit extreme
climate events. This may impact the company through increased costs through carbon pricing mechanisms, access to capital
and changes in energy prices amongst others.
In December 2020, the Group published its climate change strategy, Pathway to Net Zero which set out the pathway to
delivering its climate-related targets and longer-term ambition of becoming a net-zero total emissions company by 2050. In
December 2021, the Group published its Pathway to Net Zero: 2021 Progress Report detailing the steps taken during the year to
identify and implement emission reduction opportunities and to make progress in the seven priority areas identified in the
Group’s climate strategy.
As outlined in Note 1, Glencore’s exposure to assets that produce fossil fuels relates mainly to its coal mining operations in
Australia, South Africa and Colombia and its Astron oil refining asset in South Africa. It also has goodwill in its coal marketing
CGU. All of these assets are long-term in nature and, other than goodwill which is not required to be amortised, none are being
depreciated or amortised over a period that extends beyond 2050. There are also rehabilitation liabilities linked to the coal and
oil producing assets and the Astron refinery totalling $1,996 million ($3,843 million undiscounted). At 31 December 2021, the
carrying values of fossil fuel producing assets and linked rehabilitation liabilities make up 26% of total non-current assets and 5%
of total non-current liabilities respectively.
In note 1 to the financial statements, the Group identifies the accounting measurement and disclosure impacts of assets and
liabilities that are most impacted by climate change and Glencore’s climate commitments, including:
• estimation of the carrying value of certain assets exposed to climate change risk impacted by demand and supply for the
Group’s commodities, related commodity pricing and carbon pricing;
• estimation of the remaining useful economic life of assets for depreciation and amortisation purposes; and
• estimation of timing of rehabilitation and decommissioning closure activities.
To test the resilience of its portfolio to the impacts of climate change, the Group has developed a number of downside scenarios
including:
• Current Pathway scenario, consistent with the IEA Stated Policies scenario (STEPS);
• Rapid Transition scenario, consistent with IEA Sustainable Development scenario (SDS); and
• Radical Transformation scenario, consistent with the IEA Net Zero Emissions by 2050 scenario (NZE2050).

In addition to the above, the Group has also run downside scenarios against the IEA’s Announced Pledges Scenario (APS) and its
own Complete Displacement Scenario (CDS).
In note 1, Glencore has presented illustrative climate related sensitivities based on IEA pricing assumptions for 2020, 2030 and
2050 which differ from management’s best estimate of forecast pricing and has applied the 2020 IEA price as a starting point.
Management’s sensitivity therefore illustrates the combined effect of assuming weaker short term prices (than management has
assumed in its base case), together with weaker long-term prices as a result of decarbonisation as illustrated in the respective IEA
scenarios. We identified a key audit matter relating to the financial impacts of climate change on the Group and the impact on
key judgements and estimates within the financial statements, and the consistency of reporting in the Strategic and Corporate
Governance reports on pages 1-124 with the financial impacts in the financial statements. Our audit focused on the following
areas in particular:
• Glencore’s coal pricing assumptions used to asssess its coal producing assets for impairment or impairment reversals;
• the appropriateness of Glencore’s useful life assessment of fossil fuel producing assets based on anticipated demand for coal
and oil in the medium to long term;
• the appropriateness of Glencore’s judgement that carbon costs will likely be passed on to the consumer (refer pages 22-23 and
the climate change related considerations in note 1 for details);
• the valuation of goodwill relating to its coal marketing cash generating unit which is based on an earnings multiple approach of
12x (down from 15x in 2020) (refer note 10);
• the appropriateness of the timing of rehabilitation cash flows at operations that produce fossil fuels; and
• the consistency between Glencore’s announced climate related targets and the above areas.
Coal pricing
• As the availability of long-term (“LT”) coal pricing and demand and supply market data (particularly for coal produced outside of
Australia) is extremely limited, we engaged valuation experts to analyse historical price correlations between the three primary
coal benchmark prices: Newcastle (Australian coal benchmark) which has the largest number of brokers forecasting data, API 4
(South African coal benchmark) and API 2 (North West Europe coal benchmark for the sale of the Group’s Colombian coal). This
assessment was used to extrapolate a forward curve against which we challenged Glencore’s forecast price assumptions.
• We compared Glencore’s LT coal pricing to pricing assumptions provided by brokers and the IEA’s STEPS scenario noting that
some adjustments were required to the IEA’s data to ensure comparability (e.g. appropriate freight adjustments, etc).
• We considered management’s updated illustrative sensitivities in note 1, and challenged whether these presented
contradictory evidence to management’s conclusion that there were no further impairment indicators relating to the Group’s
thermal coal assets.
Asset useful lives
• We evaluated Glencore’s coal production profile against the IEA scenarios and evaluated the consistency of management’s
internal modelling with its external climate reporting.
• With the support of South African refinery specialists, we challenged the useful life of the Astron’s oil refinery by evaluating a
third party expert report commissioned by management (that covered the period up to 2035), as well as data on oil demand
expectations provided by the IEA up to 2050. We also considered factors such as the refinery’s geographical and competitive
landscape in our assessment.
• We challenged management’s assessment of useful lives and the basis used to depreciate/amortise physical and intangible
assets.
• We assessed whether any assets’ useful lives exceeded management’s modelled life of mine/asset of the operation.
Carbon costs
• We analysed the IEA’s World Energy Outlook 2021 report and evaluated management’s position on carbon pricing against the
IEA’s assessment of carbon costs.
• We challenged the consistency of management’s modelling of carbon costs with commodity price assumptions, evaluating
whether forecast assumptions included or excluded these anticipated increases in costs.
• We reviewed management’s position paper on global demand and supply balance and the impact that carbon costs would
have on the highest cost producers and challenged management’s position that carbon costs are likely to be passed on to the
end consumer.
• We performed our own sensitivities analysis on carbon costs.
Marketing coal goodwill
•
We determined an independent range of price to earnings multiples based on companies with coal trading, coal production or
coal logistics exposure to evaluate the reasonableness of management’s use of the earnings multiple approach.
•
We obtained management’s value in use calculation which is based on a bottom-up assessment of forecast trading volumes
and margins. We challenged management’s assumptions on coal volumes with reference to Glencore’s declining volume
production and scenarios provided by the IEA.


Rehabilitation provisions
• We updated our understanding of the current and any proposed legislative requirements and considered the impact on the
timing of the rehabilitation provision.
• We challenged the timing of planned rehabilitation activities of Glencore’s fossil fuel operations and whether modelled cash
flows aligned with management’s announced plans of winding down coal production by 2050.
• We re-performed the calculations behind management’s sensitivity analysis to assess the impact of management’s 3 and 5
year accelerations to forecast cash flows of all rehabilitation provisions impacting fossil fuel producing CGUs.
Consistency between Glencore’s announced targets and accounting policies
• We have used Deloitte climate and sustainability specialists to challenge the Group’s climate change narrative and related
disclosures.
• We have read the other information included in the annual report and considered whether there was any material
inconsistency between the other information and the financial statements, or whether there was any material inconsistency
between the other information and our understanding of the business based on audit evidence obtained and conclusions
reached in the audit.
• We considered whether management’s sensitivity and estimation uncertainty disclosures were adequate in the context of
climate change risks and uncertainties.
Key observations
With respect to Glencore’s base case assessment of coal pricing assumptions we found Glencore’s longer term Newcastle
pricing assumptions to be above broker ranges, and the API 4 and API 2 prices were at the upper end of our acceptable range.
When comparing Glencore’s assumptions to the IEA’s data points, we found their assumptions to be higher than the IEA’s
STEPS forecast. Aligning Glencore’s base case commodity pricing assumption within our acceptable range did not result in
impairment.
In light of the current pricing environment for thermal coal, we concur with management’s disclosure in Note 1 that no
reasonably possible change in key assumptions would result in a material impairment in the next financial year.
With respect to the illustrative climate related sensitivities provided in note 1, and whether these contradict management’s
impairment conclusions and our related audit conclusions, we observed that management’s illustrative sensitivities reflect the
combined effect of adopting the IEA’s long term price assumptions based on the various IEA climate scenarios, together with
the effect of adopting the 2020 IEA price as a starting point for short term price assumptions. The short term price assumptions
in these sensitivities do not therefore reflect the benefit of the current pricing environment which has increased significantly
over the 2020 price assumptions referenced in the IEA’s report, and accordingly we are satisfied that these do not contradict
management’s assessment that an impairment is not reasonably possible within the next financial year. We further calculated
that applying Glencore’s contemporary short to medium price assumption up to 2025 instead of the IEA STEPS sensitivity price
assumptions as described in Note 1, and then reverting to the IEA STEPS price assumptions from 2026 onwards, would not
result in an impairment for thermal coal assets. We consider management’s position on carbon pricing to be reasonable and
concur with management that it is a key judgement (refer “Climate change related considerations” within note 1).
We concluded that the assumed timing of anticipated restoration, rehabilitation and decommissioning cash flows associated
with Glencore’s fossil fuel related assets was reasonable. We found management’s sensitivity disclosures in note 1 to be
appropriate.
We found no material inconsistencies between management’s coal and oil impairment modelling, rehabilitation forecasts or
asset useful lives as set out in note 1 and its stated response to climate change as described in the Strategic Report.
We concluded that reasonable consideration and weight had been given by management to the likely impacts of climate
change in the valuation for impairment testing purposes of its coal assets, Coal marketing business CGU and oil refining assets
at 31 December 2021.

5.4 Classification of trading contracts and arrangements which contain a financing element
Glencore trades a diverse portfolio of commodities and utilises a wide variety of trading strategies in order to profit from
volatility in market prices, differentials and spreads whilst maximising flexibility and optionality.
The classification of contracts relating to the Group’s Marketing segment can be complex, particularly distinguishing the
Group’s regular marketing contracts, which are measured at fair value through profit or loss, from those sales contracts where
the Group physically delivers its own production to a third party with no history or intention of net settlement (“own use”), which
are exempt from fair value measurement (i.e. mark-to-market accounting).
During 2021 the Group entered into a number of long term liquified natural gas (“LT LNG”) supply contracts. As these contracts
are entered into for trading of LNG and there is an established practice of net settlement in LNG trades, these contracts have
been classified as derivatives under IFRS 9 Financial Instruments and are required to be measured at fair value through profit or
loss.
Transactions for the sale or purchase of commodities may contain a financing element, such as prepayments or extended
payment terms, which may require judgement in determining the most appropriate accounting classification, presentation
and disclosure.
Refer to notes 1, 21, 22 and 25.
• We obtained an understanding of the trading strategies and associated product flows within the Group’s marketing
departments, including gaining an understanding of the relevant controls over market risk management using financial
instrument specialists embedded within the audit team with experience in commodity trading.
• We analysed the trade books to understand unusual or complex derivatives open at year-end. We also analysed the trading
results for portfolios designated as “own use” for evidence of any net settlements, which may indicate potential tainting of the
IFRS 9 Financial Instruments “own use” criteria.
• We challenged management’s judgement and conclusion associated with the classification and accounting for the new
longer term LNG contracts by evaluating the key characteristics of Glencore’s business model to confirm whether it is to trade
LNG rather than act as a physical distributor/wholesaler and confirmed that there is a past practice of net settling certain
contracts.
• We challenged management’s judgement and conclusions associated with the classification and accounting for new
significant arrangements and/or significant changes to existing arrangements containing a financing element. Our challenge
included evaluation of the commercial substance of the arrangements in the context of applicable IFRS guidance and
industry practice.
• We assessed the adequacy of related disclosures in the financial statements in accordance with the requirements of IFRS.
Key observations
Based on our procedures, we are satisfied that the significant judgements applied in the classification of contracts, and
arrangements with a financing element, were appropriate, and the respective accounting treatment and disclosures are in
accordance with the requirements of IFRS.


5.5 Marketing revenue recognition and fair value measurements
Marketing revenue for the year (prior to inter-segment eliminations) was $181,764 million (2020: $124,137 million). Refer to note 1
for the revenue recognition accounting policies and note 2 for segment information. The increase in revenues year-on-year is
principally due to the impact of higher commodity prices amid resurgent global demand and widespread supply challenges.
Glencore generates revenue as a fee-like income from physical asset handling and arbitrage, as well as blending and trade
optimisation opportunities. Judgement is required to determine when control is transferred under certain contractual
arrangements with third parties, and there is a particular risk in transactions that occur close to period end which contain
complex terms and have a significant gross margin impact and/or may be reversed in a subsequent period.
Marketing related activities depend on the reliability of the trade capture systems and their IT infrastructure environment. As
the majority of the Group’s trades and marketing inventories are measured at fair value through profit or loss (through either
revenue or cost of goods sold), a complete and accurate trade capture process that includes all specific and bespoke terms
within the commodity contracts is critical for accurate financial reporting and monitoring of trade book exposures and
performance.
Determination of fair values can be a complex and subjective area, requiring significant estimates, particularly where valuations
utilise unobservable inputs and are classified as ‘Level 3’ as established by the hierarchy set out in IFRS 13 Fair value
measurements (e.g. price differentials, medium and long term LNG pricing assumptions, credit risk assessments, market
volatility and forecast operational estimates).
At 31 December 2021, total ‘Level 3’ financial assets and liabilities amounted to $996 million and $454 million respectively. We
refer readers to “Critical accounting judgements” within note 1 and additionally notes 28 and 29.
Due to the abovementioned key judgement and estimation uncertainty areas, as well as the fact that substantially all output
from industrial assets is sold by the Group’s marketing divisions, we have identified revenue recognition and fair value
measurements in the Marketing segment as a key audit matter.
• We reviewed Glencore’s accounting policies on revenue recognition and fair value measurements to assess compliance with
the requirements of IFRS.
• We tested relevant controls surrounding the completeness and accuracy of trade capture and the revenue and trade cycle.
• We tested general IT controls surrounding major technology applications and critical interfaces involving revenue recognition
and the completeness and accuracy of trade capture.
• We utilised data analytics tools to enhance audit effectiveness over large transaction volumes tracing realised revenue to
cash receipts.
• We traced, on a sample basis, recorded sales occurring on or around 31 December 2021 per the trade book system to relevant
shipping documents to assess whether the IFRS revenue recognition criteria were met for recorded sales.
• We tested the accuracy and completeness of unrealised trades as of the reporting date by tracing and agreeing a sample of
trades entered into around the year-end from source documents to the trade book system.
• We tested relevant internal controls over management’s fair value measurement processes and performed detailed
substantive testing of the related fair value measurements on a sample basis.
• We have embedded financial instrument specialists with experience in commodity trading within our team, and tested
management significant unobservable inputs utilised in ‘Level 3’ measurements in the fair value hierarchy as set out in notes
28 and 29 to the financial statements. This work included assessing management’s valuation assumptions against
independent price quotes, recent transactions, and other relevant documentation. For the LT LNG contracts we assessed
management’s modelling techniques used in extrapolating the directly observable inputs.
Key observations
Based on the results of our testing, we are satisfied that the revenue recognition policies are in line with IFRS and were
appropriately applied throughout the period. In addition, we are satisfied that the ‘Level 3’ fair value measurements are
supported by reasonable assumptions in line with recent transactions and/or externally verifiable information. We found the
financial statement disclosures on fair value measurements to be appropriate.

5.6 Taxation: Uncertain tax positions and the recognition and recoverability of deferred taxes
The global tax environment is complex, particularly with respect to cross border transactions. Furthermore, the interpretation
and application of tax legislation in certain jurisdictions in which the Group operates can be unclear and unpredictable. There
continues to be an increase in enforcement activities, and increasingly stringent interpretations of existing legislation by local
revenue authorities.
These developments give rise to complexity and uncertainty in respect of the calculation of income taxes and deferred tax
assets and consideration of contingent liabilities associated with tax years open to audit and other exposures. The accounting
interpretation IFRIC 23 Uncertainty over Income Tax Treatments is used by the Group together with IAS 12 Income Taxes to
assess and measure the uncertainty over income tax treatments.
As disclosed in notes 1 and 8:
• Management has updated its assessment of uncertain tax positions and the recognition and recoverability of deferred taxes. In
recognising a liability for these taxation exposures, consideration was given to the range of possible outcomes to determine the
Group’s best estimate of the amount to provide. As at 31 December 2021, the Group has provided $880 million (2020: $1,189
million) for uncertain tax liabilities related to possible adverse outcomes of these matters.
• At 31 December 2021 the Group has recorded total deferred tax liabilities of $4,469 million (2020: $4,721 million) and total
deferred tax assets of $1,779 million ($2,252 million).
The most significant estimation uncertainty relates to the DRC:
• During 2018, the DRC parliament adopted a new mining code (2018 Mining Code) which introduced wide-ranging reforms
including the introduction of higher royalties, a new Super Profits Tax regime and further regulatory controls. The uncertainties
of the 2018 Mining Code, specifically the application and interpretation of the Super Profits Tax, remain.
• During 2020 and 2021, tax authorities in the DRC have challenged the tax filings; some matters have subsequently been agreed
while others are still outstanding. The Group is currently responding to the challenges raised.
Further estimation uncertainty arises from the challenges of forecasting future taxable profits in various jurisdictions given the
inherent volatility of trading results.
As a result, we have identified a risk of material misstatement of the liability for uncertain tax positions and the valuation of
deferred tax assets due to the significant estimation uncertainty and subjectivity in certain judgements and key assumptions
applied by management, whether arising from management bias or unintentional error. Refer Audit Committee reporting on
page 99.
We engaged Deloitte tax specialists to assist in executing the following audit procedures:
•
We challenged management’s assessment of uncertain tax positions by reviewing correspondence with local tax authorities
and reviewing third party expert tax opinions where appropriate, to assess the adequacy of associated liabilities and disclosures
having consideration of the IFRIC 23 guidance.
•
We considered the appropriateness of management’s assumptions and estimates to support the recognition of deferred tax
assets with reference to forecast taxable profits. We challenged the appropriateness of management’s tax utilisation models by
comparing these forecasts against the relevant entities’ budgets or underlying asset LOM plans.
•
We assessed the adequacy of disclosures in the financial statements in relation to deferred tax assets, and liabilities for
uncertain tax positions, and the respective sensitivity disclosures provided.
•
In respect of tax exposures in the DRC:
•
we challenged management’s position by inspecting correspondence with local tax authorities, reviewing third party expert
tax opinions where appropriate, and utilising Deloitte local DRC tax specialists to assess the probability and extent of
outflows from the challenges or expected challenges from the various tax authorities;
•
we challenged the adequacy of associated liabilities and disclosures having consideration of IFRIC 23 guidance;
•
in respect of the recognition of a full deferred tax asset in Kamoto Copper Company (“KCC”), we challenged management’s
position regarding uncertainties arising from the application of the 2018 Mining Code and current challenges received from
the DRC tax authorities on open tax years; and
•
we assessed the adequacy of disclosures in the financial statements in relation to the KCC deferred tax asset and the
respective sensitivity disclosures provided.
Key observations
Based on our audit work, we concur that the recorded liabilities for uncertain tax positions and deferred tax assets and related
disclosures are appropriate.

6. Our application of materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope
of our audit work and in evaluating the results of our work.
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group materiality Group materiality: $300 million (2020: $175 million, 2019: $250 million)
and performance
Group performance materiality: $195 million (2020: $114 million, 2019: $175 million)
materiality
The increase in materiality is driven by significantly higher adjusted profit before tax compared to the
prior year.
300
250
195
175 175
US$ million
136
114
105
68
12 9 12
2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019
Group materiality Performance materiality Maximum allowed component Audit Committee
performance materiality reporting threshold
Basis for We have enhanced our approach to determining materiality by adding a balance sheet metric (net
determining assets) to our previous approach of using a 3-year average adjusted profit before tax metric. Based on our
materiality and professional judgement, we determined materiality to be $300 million which is:
performance • 5.9% of three-year average adjusted profit before tax
materiality
• 0.8% of net assets
Performance materiality
Group performance materiality for the 2021 audit has been set at $195 million being 65% of Group
materiality (2020: $114 million being 65% of Group materiality). We maintained a factor of 65% to
determine performance materiality based on our past experience and low number of uncorrected
misstatements identified in the prior years as well as the ongoing risks associated with remote working
on the company’s internal control environment. Component audit procedures are scoped with
reference to the component performance materiality (see ranges applied below).
Component materiality
Due to the diversified nature of the Group’s operations, we have historically applied a maximum
allowed component performance materiality such that our component level procedures are set at a
level that is commensurate with the contributions of each component. The maximum permitted
performance materiality for individual components which were of a significant size to the Group was
$136 million (2020: $68 million). The actual performance materiality applied to individual components
ranged from $13 million to $136 million.

Rationale for the 3-year average adjusted PBT (unchanged from prior years)
benchmark Using a 3-year average continues to be an effective approach in the mining industry to normalise a
applied profit orientated benchmark that is highly exposed to cyclical commodity price fluctuations. This
benchmark is further normalised for items, which due to their nature and variable financial impact and
/ or expected infrequency of the underlying events, are not considered indicative of the continuing
operations of the Group (such as impairment charges, losses disposals of businesses, and the
government investigations provision). The absence of these normalisation steps results in a volatile
materiality that may not represent the scale of the Group’s operations. In evaluating the changes in
Glencore’s environment and the evolving stakeholder focus areas, net debt and the impact of climate
change on asset valuations have become important metrics for stakeholders. As an emerging risk,
we’ve observed that the impact of climate change is not necessarily captured in a mining company’s 12
month performance but rather on the company’s business model and long-term decision making,
which includes access to capital. Incorporating a net assets metric into our approach improves the
alignment of our materiality with the scale of the business and focus areas of investors.
Net assets as an additional benchmark
In evaluating the changes in Glencore’s environment and the evolving stakeholder focus areas, net debt
and the impact of climate change on asset valuations have become important metrics for stakeholders.
As an emerging risk, the impact of climate change is not necessarily captured in a mining company’s 12
month performance but rather on the company’s business model and long-term decision making,
which includes access to capital. Incorporating a net assets metric into our approach improves the
alignment of our materiality with the scale of the business and focus areas of investors.
Range approach to determining materiality
We consider a range approach to be appropriate to capture the upper and lower bounds of a
reasonable materiality level that takes into consideration both of the above benchmarks. We then
selected a point within that range that, in our professional judgement, appropriately reflects the
sensitivity of the users of the financial statements to Glencore’s current year performance and financial
position.
The selected group materiality of $300 million amounts to 2.5% of current year adjusted pre-tax profit
without the effect of averaging (2020: 11.4%).
Error reporting We agreed with the Audit Committee that we would report all individual audit differences in excess of
threshold $15 million (2020: $9 million), as well as differences below that threshold that, in our view, warranted
reporting on qualitative grounds. We also report to the Audit Committee on disclosure matters that we
identified when assessing the overall presentation of the financial statements.

7. An overview of the scope of our audit

7.1 Identification and scoping of components
Our Group audit was scoped by obtaining an understanding of the Group and its environment and assessing the risks of material
misstatement at the Group level. Our scoping considered both quantitative and qualitative factors including a component’s
contribution to financial metrics (Revenue, Adjusted EBIT, Adjusted EBITDA, and non-current assets), production output and
qualitative criteria, such as being a significant development project or exhibiting particular risk factors. Based on our assessment,
we scoped in audit work at 25 components (2020: 38 components), representing the Group’s most material marketing operations
and industrial assets.
Our Group audit utilised the work of 14 component audit teams (2020: 22 component audit teams) in 12 countries (2020: 16
countries). The decrease in the number of components and component teams compared to the prior period is primarily due to
the aggregation of 7 components into one single Copper Group component, following a change in the Group’s reporting
structure in 2021.
The following audit scoping was applied:
• 12 components (2020: 19 components) were subject to a full scope audit; and
• 13 components (2020: 19 components) were subject to specified audit procedures where the extent of our testing was based on
our assessment of the risk of material misstatement of certain specific financial balances and / or processes and of the
materiality of the Group’s operations at those locations.
These 25 components account for 77% of the Group’s net assets (2020: 80%), 87% of the Group’s revenue (2020: 88%) and 83% of
the Group’s Adjusted EBITDA (2020: 91%).
At the parent entity level, we tested the consolidation process and carried out analytical procedures to confirm our conclusion
that there was no reasonable possibility of a risk of material misstatement in the aggregated financial information of the
remaining components not subject to audit or audit of specified account balances.
13% 17%
23% 3%
● Full audit scope

Adjusted ● Specific audit procedures
Net assets 60% Revenue
EBITDA ● Review and
17%
analytical procedures
84% 83%
7.2 Working with other auditors

Detailed audit instructions were sent to the auditors of these in-scope components. These instructions identified the significant
audit risks, other areas of audit focus, the account balances, classes of transactions and disclosures considered material and their
relevant risks of material misstatement as assessed by the Group audit team. The instructions also set out the audit procedures to
be performed and set out the information to be reported back to the Group audit team and other matters relevant to the audit.
Due to the global Covid-19 pandemic and the resulting travel restrictions, on-site meetings were limited to component teams in
Switzerland. As a result, the Group audit team increased the frequency of phone and video calls with component auditors, and
performed a virtual online programme of detailed reviews of the component audit teams’ files.
For all in-scope components, the Group audit team was involved in the audit work performed by the component auditors
through a combination of provision of referral instructions, regular interaction with the component teams during the year, review
and challenge of related component inter-office reporting and of findings from their work (which included the audit procedures
performed to respond to risks of material misstatement), and attendance during component audit closing conference calls.
7.3 The impact of climate change on our audit
Climate change impacts Glencore’s business in a number of ways as set out in the Strategic report on pages 19-26 of the Annual
Report and Note 1 to the financial statements.
In planning our audit, the financial impacts on the Group of climate change and the transition to a low carbon economy were
considered where these factors have the potential to directly or indirectly impact key judgements and estimates and related
assumptions within the financial statements. We worked with Deloitte internal environmental specialists in considering potential
climate change risk factors. Our risk assessment was based on:
• enquiries of senior management to understand the potential impact of climate change risk including physical risks to
producing assets, the potential changes to the macro economic environment and the potential for the transition to a low
carbon environment to occur quicker than anticipated;
• reading and considering Glencore’s climate change report and position papers;

• consideration together with each of our component teams of immediate and possible longer-term impacts of climate change
in their jurisdiction; and
• reading and considering external publications by recognised authorities on climate change such as the IEA’s World Energy
Outlook amongst others.
The principal audit risk that we have identified for our audit is that coal forecast assumptions (particularly coal price assumptions
and the expected economic lives of these assets) used in management’s impairment testing may not appropriately reflect
anticipated changes in supply and demand due to climate change and the energy transition.
Our response to this principal audit risk and other climate risks that we considered relevant to the audit have been summarised in
the Key Audit Matter, ‘Potential impact of climate change on non-current assets’ above.
7.4 Our consideration of the control environment
Glencore relies on the effectiveness of a number of IT systems and applications to ensure that financial transactions are recorded
completely and accurately. The main financial accounting, reporting, trading and treasury systems were identified as key IT
systems relevant to our audit. For the marketing business we planned to test and rely on key manual and automated controls
over the revenue business process, as discussed in the “Marketing revenue recognition and fair value measurements” key audit
matter above. Industrial activities are generally decentralised and thus the design of controls and testing approach varies
between components, except for revenue where a controls reliance approach was adopted for third-party revenue across all
components which was new in 2021.
The IT systems which are primarily managed from the centralised IT function in Switzerland were evaluated by IT specialists who
were part of the Group audit team. Other IT systems were evaluated by component IT specialists to determine whether these IT
systems could be relied upon. IT control deficiencies relating to the review of user access rights and the management of
privileged access accounts were identified in a number of entities within the Group. As a result of these deficiencies, certain
component teams were unable to adopt a controls-based audit approach in the current year. Accordingly, these teams extended
the scope of audit procedures in response to the identified control deficiencies. Where centrally managed IT systems were
similarly impacted, mitigating controls were identified and / or additional procedures were performed in order to adopt a control
reliance approach.
At certain components of the Group, we observed insufficient segregation of duties around the posting of manual journal entries
and a lack of evidence and precision of review and approval of manual journal entries. We modified our approach to auditing
manual journal entries by assessing compensating controls and by enhancing our selection criteria in the testing of manual
journal entries.
As described in the Impairment of non-current assets key audit matter above, we found that the level of review and
documentation retained relating to certain judgements and key assumptions in complex models requires improvement.
The Audit Committee has discussed these internal control deficiencies, and management`s actions to remediate them on
page 98. As deficiencies in the control environment increase the risk of fraud and error within the financial statements, we
performed additional procedures to respond to the potential risks, including the risk of fraud as outlined below.
8. Other information
The other information comprises the information included in the annual report other than the financial statements and our
auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be
materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s ability to continue as a going
concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

10. Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.
org.uk/auditorsresponsibilities. This description forms part of our auditor’s report..
11. Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including fraud, is detailed below.
11.1 Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with
laws and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the design of the Group’s
remuneration policies, key drivers for remuneration, bonus levels and performance targets;
• the Group’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
• the results of our enquiries of senior management, internal audit, members of the legal, risk and compliance functions, and the
Audit and Investigations Committees about their own identification and assessment of the risks of irregularities, including
obtaining and reviewing the Group’s documentation of its policies and procedures relating to:
• identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-
compliance;
• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
and
• reviewing internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed among the engagement team, including significant component audit teams, and relevant internal
specialists, including forensic, tax, mining, valuations and IT, regarding how and where fraud might occur in the financial
statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud
and identified the greatest potential for fraud in the following areas:
• the use of agents and intermediaries in certain higher-risk jurisdictions, and other higher-risk transaction types;
• key sources of estimation uncertainty within management’s provisioning for ongoing regulatory investigations and the testing
of impairment of non-current assets within the scope of IAS 36 Impairment of Non-current Assets;
• the use of supply chain finance arrangements and their classifications and disclosure within trade creditors;
• key sources of estimation uncertainty in management’s recognition and measurement of deferred tax assets and uncertain tax
positions;
• the judgement that LNG forward physical transactions meet the definition of a derivative and are accordingly accounted for at
fair value through profit and loss; and
• valuation of unrealised forward physical positions.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of
those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this context included Companies (Jersey) Law 1991, Primary and
Secondary Listing Rules, Disclosure Guidance and Transparency rules, the UK Corporate Governance code and related guidance
and relevant tax laws.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements
but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included
the US Foreign Corrupt Practices Act, the US Anti-Money Laundering regulations, the UK Bribery Act 2010 and the Group’s
operating licences and environmental regulations in the jurisdictions in which it operates.

11.2 Audit response to risks identified

As a result of performing the above, we identified “Government investigations”, “Impairments of non-current assets”,
“Classification of trading contracts and arrangements which contain a financing element“, “Marketing revenue recognition and
fair value measurements” and “Taxation: Uncertain tax positions and the recognition and recoverability of deferred taxes” as key
audit matters related to the potential risk of fraud or non-compliance with laws and regulations. The key audit matters section of
our report explains the matters in more detail and also describes the specific procedures we performed in response to those key
audit matters.
In addition, our procedures to respond to risks identified included the following:
• enquiring of management, the Audit Committee, the Investigations Committee, General Counsel and the Group’s external
legal counsel concerning actual and potential litigation and claims;
• enquiring of management, the Audit Committee, the Investigations Committee, General Counsel and the Group’s external
legal counsel regarding whether the Group is in compliance with laws and regulations relating to fraud, money laundering,
bribery and corruption;
• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing
correspondence with relevant regulatory and taxation authorities, where applicable;
• obtaining an understanding of the Group’s business relationships with agents and intermediaries in certain high risk
jurisdictions and rationale for appointment;
• scrutinising higher risk expense accounts for evidence of improper payments in high risk jurisdictions;
• performing audit procedures to identify and investigate suspicious payments to government officials, agents and
intermediaries by means of adding search parameters to our journal entry testing for key words relevant to potential fraudulent
payments;
• working with our Deloitte forensic specialists to evaluate fraud risk factors and support the engagement team in performing
certain audit procedures as required;
• challenging management’s key judgements and assumptions for determining the recoverable amounts and credit
adjustments for trade advances, and provisioning for uncertain tax positions;
• used analytical tools to identify unrealised forward physical positions of increased audit interest and challenged the method
and inputs to those valuations;
• used analytical tools to confirm the completeness of management’s identification of transactions that may indicate supply
chain financing features, and challenged the nature of such supply chain financing arrangements and whether they qualify for
separate disclosure or classification as debt;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
• performing focused analytical procedures on key financial metrics of non-significant components to identify any unusual or
material transactions that may indicate a risk of material misstatement and evaluating the business rationale of such
transactions;
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions
of relevant laws and regulations described as having a direct effect on the financial statements; and
• addressing the risk of fraud through management override of controls by testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made by management in making accounting estimates indicate a
potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal
course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members,
including internal specialists and all component audit teams, and remained alert to any indications of fraud or non-compliance
with laws and regulations throughout the audit.

Report on other legal and regulatory requirements

12. Opinion on other matters prescribed by our engagement letter
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the
provisions of the UK Companies Act 2006 as if that Act had applied to the company.
13. Corporate Governance Statement

The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of
the Corporate Governance Statement relating to the group’s compliance with the provisions of the UK Corporate Governance
Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any
material uncertainties identified (set out on page 121);
• the directors’ explanation as to their assessment of the Group’s prospects, the period this assessment covers and why the
period is appropriate (set out on page 121);
• the directors’ statement on fair, balanced and understandable (set out on page 122);
• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks (set out on page 95);
• the section of the annual report that describes the review of effectiveness of risk management and internal control systems (set
out on pages 68-84); and
• the section describing the work of the audit committee (set out on pages 98-99).
14. Matters on which we are required to report by exception

Adequacy of explanations received and accounting records
Under the Companies (Jersey) Law, 1991 we are required to report to you if, in our opinion:
•
we have not received all the information and explanations we require for our audit; or
•
proper accounting records have not been kept by the parent company, or proper returns adequate for our audit have not been
received from branches not visited by us; or
•
the financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address

15.1 Auditor tenure
Following the recommendation of the Audit Committee, we were initially appointed by the Board of Directors on 22 August 2011
to audit the financial statements of Glencore plc for the year ending 31 December 2011 and subsequent financial periods.
Following a competitive tender process, we were reappointed as auditor of Glencore plc for the period ending 31 December 2023
and subsequent financial periods. The period of total uninterrupted engagement including previous renewals and
reappointments of the firm as auditor of Glencore plc is 11 years, covering the years ending December 2011 to December 2021. The
Engagement Partner has rotated twice during this period, with the most recent rotation being after the 2017 audit.
15.2 Consistency of the audit report with the additional report to the Audit Committee
Our audit opinion is consistent with the additional report to the audit committee we are required to provide in accordance with
ISAs (UK).
16 Use of our report
This report is made solely to the company’s members, as a body, in accordance with Article 113A of the Companies (Jersey) Law,
1991. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for
the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.14R, these financial
statements form part of the ESEF-prepared Annual Financial Report filed on the National Storage Mechanism of the UK FCA in
accordance with the ESEF Regulatory Technical Standard ((‘ESEF RTS’). This auditor’s report provides no assurance over whether
the annual financial report has been prepared using the single electronic format specified in the ESEF RTS.
We have provided assurance on whether the annual financial report has been prepared using the single electronic format
specified in the ESEF RTS and have reported separately to the members on this.
Geoffrey Pinnock, CA (SA)

for and on behalf of Deloitte LLP
Recognised Auditor
London, UK
15 March 2022

Consolidated statement of income

For the year ended 31 December 2021
ncome statement
US$ million Notes 2021 2020
Revenue 3 203,751 142,338
Cost of goods sold (191,370) (138,640)
Selling and administrative expenses (2,115) (1,681)
Share of income from associates and joint ventures 11 2,618 444
Loss on disposals of non-current assets 4 (607) (36)
Other income 5 186 438
Other expense 5 (2,133) (611)
Impairments of non-current assets 7 (1,905) (5,715)
Reversal of impairments/(impairments) of financial assets 7 67 (232)
Dividend income 11 23 32
Interest income 6 208 120
Interest expense 6 (1,348) (1,573)
Income/(loss) before income taxes 7,375 (5,116)
Income tax (expense)/credit 8 (3,026) 1,170
Income/(loss) for the year 4,349 (3,946)
Attributable to:
Non-controlling interests (625) (2,043)
Equity holders of the Parent 4,974 (1,903)
Earnings/(loss) per share:

Basic (US$) 18 0.38 (0.14)
Diluted (US$) 18 0.37 (0.14)
The accompanying notes are an integral part of the consolidated financial statements.

Consolidated statement of comprehensive income


Income/(loss) for the year 4,349 (3,946)
Other comprehensive income/(loss)

Items not to be reclassified to the statement of income in subsequent periods:
Defined benefit plan remeasurements 24 284 (20)
Tax (charge)/credit on defined benefit plan remeasurements (61) 3
Loss on equity investments accounted for at fair value through other comprehensive income 11 (52) (629)
Tax charge on equity investments accounted for at fair value through other comprehensive
income (4) (1)
(Loss)/gain due to changes in credit risk on financial liabilities accounted for at fair value
(7) 19
through profit and loss
Net items not to be reclassified to the statement of income in subsequent periods 160 (628)
Items that have been or may be reclassified to the statement of income in subsequent
periods:
Exchange loss on translation of foreign operations (87) (189)
(Loss)/gain on cash flow hedges1 (212) 200
Cash flow hedges reclassified to the statement of income1 241 (258)
Tax (charge)/credit on cash flow hedges reclassified to the statement of income (2) 4
Share of other comprehensive loss from associates and joint ventures 11 (58) (14)
Net items that have been or may be reclassified to the statement of income
in subsequent periods (118) (257)
Other comprehensive income/(loss) 42 (885)
Total comprehensive income/(loss) 4,391 (4,831)
Attributable to:
Non-controlling interests (645) (2,067)
Equity holders of the Parent 5,036 (2,764)
1 Certain prior year balances have been restated to conform with current year presentation to show gross movements in the cash flow hedge reserve.

Consolidated statement of financial position

As at 31 December 2021

Assets
Non-current assets
Property, plant and equipment 9 43,159 47,110
Intangible assets 10 6,235 6,467
Investments in associates and joint ventures 11 12,294 12,400
Other investments 11 1,620 1,733
Advances and loans 12 3,527 3,042
Other financial assets 28 458 1,106
Inventories 13 662 678
Deferred tax assets 8 1,779 2,252
69,734 74,788
Current assets
Inventories 13 28,434 22,852
Accounts receivable 14 19,493 15,154
Other financial assets 28 4,636 1,998
Income tax receivable 8 364 444
Prepaid expenses 287 220
Cash and cash equivalents 15 3,241 1,498
56,455 42,166
Assets held for sale 16 1,321 1,046
57,776 43,212
Total assets 127,510 118,000
Equity and liabilities

Capital and reserves – attributable to equity holders
Share capital 17 146 146
Reserves and retained earnings 17 39,785 37,491
39,931 37,637
Non-controlling interests 34 (3,014) (3,235)
Total equity 36,917 34,402
Non-current liabilities
Borrowings 21 26,811 29,227
Deferred income 22 2,088 2,590
Deferred tax liabilities 8 4,469 4,721
Other financial liabilities 28 710 688
Provisions1 23 6,117 5,770
Post-retirement and other employee benefits1 24 939 1,161
41,134 44,157
Current liabilities
Borrowings 21 7,830 8,252
Accounts payable 25 29,313 24,038
Deferred income 22 1,573 1,070
Provisions 23 2,093 693
Other financial liabilities 28 6,077 4,276
Income tax payable 8 1,785 927
48,671 39,256
Liabilities held for sale 16 788 185
49,459 39,441
Total equity and liabilities 127,510 118,000
1 In the current year, post-retirement and other employee benefits have been disaggregated from provisions. The prior year balances have been restated to conform with current year
presentation.

Consolidated statement of cash flows


Operating activities
Adjustments for:
Depreciation and amortisation 6,335 6,671
Share of income from associates and joint ventures 11 (2,618) (444)
Streaming revenue and other non-current provisions (280) (205)
Loss on disposals of non-current assets 4 607 36
Unrealised mark-to-market movements on other investments2 5 (64) (438)
Impairments 7 1,838 5,947
Other non-cash items – net1,2 2,392 664
Interest expense – net 6 1,140 1,453
Cash generated by operating activities before working capital changes, interest and tax 16,725 8,568
Working capital changes
Increase in accounts receivable3 (5,888) (385)
Increase in inventories (5,660) (3,189)
Increase/(decrease) in accounts payable4 6,423 (436)
Total working capital changes (5,125) (4,010)
Income taxes paid (1,837) (820)
Interest received 100 100
Interest paid (1,003) (1,174)
Net cash generated by operating activities 8,860 2,664
Investing activities
Net cash received from/(used in) disposal of subsidiaries 26 252 (222)
Purchase of investments (86) (122)
Proceeds from sale of investments 194 135
Purchase of property, plant and equipment (3,618) (3,569)
Proceeds from sale of property, plant and equipment 342 52
Dividends received from associates and joint ventures 11 2,375 1,015
Net cash used by investing activities (541) (2,711)
1 See reconciliation below.
2 Prior year balances relating to mark-to-market movements on other investments of $379 million previously included in ‘other non-cash items’ have been reclassified to unrealised
mark-to-market movements on other investments.
3 Includes movements in other financial assets, prepaid expenses and long-term advances and loans.
4 Includes movements in other financial liabilities, provisions and deferred income.
Other non-cash items comprise the following:

Net foreign exchange losses 5 187 192
Closed site rehabilitation costs 5 177 80
Closure and severance costs 5 – 183
Share based and deferred remuneration costs 20 476 207
Legal and regulatory proceedings 5/23 1,556 –
Other (4) 2
Total 2,392 664

Consolidated statement of cash flows continued


Financing activities1
Proceeds from issuance of capital market notes2 4,877 3,362
Repayment of capital market notes (2,807) (4,017)
Repurchase of capital market notes (125) (72)
Repayment of revolving credit facility (2,244) (870)
Proceeds from other non-current borrowings 231 392
Repayment of other non-current borrowings (493) (44)
Repayment of lease liabilities (634) (560)
Margin (payments)/receipts in respect of financing related hedging activities (970) 1,040
(Repayment of)/proceeds from current borrowings (2,016) 217
Proceeds from U.S. commercial papers 675 415
Proceeds received on acquisition of non-controlling interests in subsidiaries 55 –
Payments on acquisition of non-controlling interests in subsidiaries (45) (56)
Return of capital/distributions to non-controlling interests (163) (127)
Purchase of own shares 17 (746) –
Distributions paid to equity holders of the Parent 19 (2,115) –
Net cash used by financing activities (6,520) (320)
Increase/(decrease) in cash and cash equivalents 1,799 (367)
Effect of foreign exchange rate changes 11 (36)
Cash and cash equivalents, beginning of year 1,498 1,901
Cash and cash equivalents, end of year 3,308 1,498
Cash and cash equivalents reported in the statement of financial position 3,241 1,498
Cash and cash equivalents attributable to assets held for sale 16 67 –
1 Refer to note 21 for reconciliation of movement in borrowings.
2 Net of issuance costs relating to capital market notes of $48 million (2020: $20 million).

Consolidated statement of changes of equity

Total
reserves Total equity Non-
Other Own and attributable controlling
Retained Share reserves shares retained Share to equity interests Total
earnings premium (Note 17) (Note 17) earnings capital holders (Note 34) equity
1 January 2020 4,742 45,794 (4,971) (5,437) 40,128 146 40,274 (1,038) 39,236
Loss for the year (1,903) – – – (1,903) – (1,903) (2,043) (3,946)
Other comprehensive
(32) – (829) – (861) – (861) (24) (885)
(loss)/income
Total comprehensive loss (1,935) – (829) – (2,764) – (2,764) (2,067) (4,831)
Own share disposal1 (32) – – 133 101 – 101 – 101
Equity-settled share-based
expenses2 57 – – – 57 – 57 – 57
Change in ownership interest
in subsidiaries3 – – (31) – (31) – (31) (3) (34)
Reclassifications 17 – (17) – – – – – –
Distributions paid5 – – – – – – – (127) (127)
31 December 2020 2,849 45,794 (5,848) (5,304) 37,491 146 37,637 (3,235) 34,402
Total
reserves Total equity Non-
Other Own and attributable controlling
Retained Share reserves shares retained Share to equity interests Total
earnings premium (Note 17) (Note 17) earnings capital holders (Note 34) equity
1 January 2021 2,849 45,794 (5,848) (5,304) 37,491 146 37,637 (3,235) 34,402
Income for the year 4,974 – – – 4,974 – 4,974 (625) 4,349
Other comprehensive income 164 – (102) – 62 – 62 (20) 42
Total comprehensive income 5,138 – (102) – 5,036 – 5,036 (645) 4,391
Own share disposal1 (78) – – 173 95 – 95 – 95
Own share purchases1 – – – (746) (746) – (746) – (746)
Equity-settled share-based
expenses2 30 – – – 30 – 30 – 30
Change in ownership interest
in subsidiaries3 – – (6) – (6) – (6) 14 8
Acquisition/disposal of business4 – – – – – – – 1,017 1,017
Reclassifications (25) – 25 – – – – (2) (2)
Distributions paid5 – (2,115) – – (2,115) – (2,115) (163) (2,278)
31 December 2021 7,914 43,679 (5,931) (5,877) 39,785 146 39,931 (3,014) 36,917
1 See note 17.
2 See note 20.
3 See note 34.
4 See note 26.
5 See note 19.

Notes to the financial statements
1. Accounting policies
Corporate information
Glencore plc (the “Company”, “Parent”, the “Group” or “Glencore”), is a leading integrated producer and marketer of natural
resources, with worldwide activities in the production, refinement, processing, storage, transport and marketing of metals and
minerals and energy products. Glencore operates on a global scale, marketing and distributing physical commodities sourced from
third party producers and own production to industrial consumers, such as those in the battery, electronic, construction,
automotive, steel, energy and oil industries. Glencore also provides financing, logistics and other services to producers and
consumers of commodities. In this regard, Glencore seeks to capture value throughout the commodity supply chain. Glencore’s
long experience as a commodity producer and merchant has allowed it to develop and build upon its expertise in the commodities
which it markets and cultivate long-term relationships with a broad supplier and customer base across diverse industries and in
multiple geographic regions.
Glencore is a publicly traded limited company incorporated in Jersey and domiciled in Switzerland, at Baarermattstrasse 3, 6340
Baar. Its ordinary shares are traded on the London and Johannesburg stock exchanges.
These consolidated financial statements were authorised for issue in accordance with the Directors’ resolution on 15 March 2022.
Statement of compliance
The consolidated financial statements have been prepared in accordance with:
• International Financial Reporting Standards (IFRS) adopted by the United Kingdom; and
• IFRS as issued by the International Accounting Standards Board (IASB).
Climate change related considerations

The Group has committed to total emissions (Scope 1, 2 and 3) reductions, relative to 2019, of 15% by 2026 and 50% by 2035 and has
an ambition to achieve net zero total emissions by 2050. The accounting related measurement and disclosure items that are most
impacted by our commitments, and climate change risk more generally, relate to those areas of the financial statements that are
prepared under the historical cost convention and are subject to estimation uncertainties in the medium to long term. Climate
change impacts can also introduce more volatility in assets and liabilities carried at fair value. Future changes to the Group’s climate
change strategy or realisation of global decarbonisation ambitions quicker than currently anticipated may impact some of the
Group’s significant judgements and key estimates and result in material changes to financial results and the carrying values of
certain assets and liabilities in future reporting periods. The Group’s current climate change strategy is reflected in the Group’s
significant judgements and key estimates, and therefore the Financial Statements, as follows:
(i) Property, plant and equipment and Intangible assets – estimation of the remaining useful economic life of assets
for depreciation and amortisation purposes
Property, plant and equipment and intangible assets are depreciated / amortised to estimated residual values over the estimated
useful lives of the specific assets concerned, or the estimated remaining life of the associated mine, field or lease, using a straight-
line or a units of production over recoverable reserves method. The estimated useful lives of our specific assets and / or operations
(and therefore the rate of depreciation / amortisation) aligns with our climate change commitments and ambition. Property, plant
and equipment and intangible assets policies are further covered below and within impairment and impairment reversal
estimation uncertainties, together with key estimates and sensitivities pertaining to a reasonably possible change in the realisation
of global decarbonisation ambitions, which could also change the useful economic lives of the related assets.
(ii) Restoration, rehabilitation and decommissioning provisions – estimation of the timing of closure and
rehabilitation activities
A provision for future restoration, rehabilitation and decommissioning costs requires estimates and assumptions to be made around
the relevant regulatory framework, the magnitude of the possible disturbance and the timing, extent and costs of the required
closure and rehabilitation activities. Many of these rehabilitation and decommissioning events are expected to take place when the
underlying commercial reserves are extracted and the operations move into closure mode. Our current estimates of the timing of
these closure activities align with the trajectory of our climate change emission reduction commitments and ambition. Sensitivities
pertaining to a reasonably possible change in the realisation of global decarbonisation ambitions (i.e. the timing of the restoration,
rehabilitation and decommissioning costs) of our fossil fuel related obligations are outlined below in the key estimation uncertainty -
restoration, rehabilitation and decommissioning costs.

Notes to the financial statements continued
1. Accounting policies continued
(iii) Property, plant and equipment and Intangible assets (including the carrying value of goodwill in our coal
marketing CGU) – estimation of the valuation of assets and potential impairment charges or reversals
The Group acknowledges that there is a wide range of possible energy transition scenarios, including those aligned with the Paris
Agreement goals, that would indicate different outcomes for individual commodities. The decarbonisation transition could result in
increasing or decreasing demand for the Group’s various commodities, due to policy, regulatory (including carbon pricing
mechanisms), legal, technological, market or societal responses to climate change, which, on the negative side, may result in some
or all of a cash-generating unit’s reserves becoming uneconomic to extract and / or our coal marketing CGU no-longer being able to
generate returns and realise the benefits of its associated goodwill balance. While not currently the Group’s central planning case,
the resilience of the Group’s portfolio to 1.5°C aligned and net zero ambition scenarios have been considered.
We use carbon price scenarios to assess the potential impacts on commodity specific operating cost curves and related supply /
demand outcomes, arising from existing and future potential carbon pricing regulation. A key component of this analysis is to
understand the potential development of a range of underlying cost curve structures over time and to consider, identify and make
reasonable judgments, on the extent to which costs are likely to be passed onto the end-consumer. Our analysis shows that in our
Radical Transformation scenario, marginal supply costs would increase by 10% to over 60%, for the range of our most relevant and
material commodities. Against a backdrop of generally healthy expected increasing metals demand to support decarbonisation, we
anticipate that cost (via carbon) and demand forces (lower supply in the case of coal) will drive those commodity prices higher, such
increases being passed through to consumers, resulting in no expected overall materially negative impacts on our business. In fact,
first and second quartile (below average) emission intensity producers, where we see the weighted average of our portfolio residing,
are likely to see margin expansion. Sensitivities pertaining to a reasonably possible change in the recoverable value of our assets are
outlined below in the key estimation uncertainty – impairments and impairment reversals.
Notwithstanding the above, for coal and other fossil fuels, should global decarbonisation ambitions materialise along a Paris-aligned
scenario or other more ambitious net zero scenarios, essentially an accelerated displacement of coal and other fossil fuels as an
energy source, the potential impact on the current carrying value of these cash generating units is outlined below in the key
estimation uncertainty – impairments and impairment reversals (Sensitivity to demand for fossil fuels). It should be noted, that in
these scenarios, we would expect to see positive valuation developments within our industrial production portfolio exposed to the
metals currently required to deliver such rapid decarbonisation scenarios, including copper, nickel and cobalt.
Critical accounting judgements and key sources of estimation uncertainty

The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions
are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable and relevant under the circumstances, independent estimates, quoted market prices and common
industry standard modelling techniques. Actual outcomes could result in a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
Glencore has identified the following areas as being critical to understanding Glencore’s financial position as they require
management to make complex and/or subjective judgements, estimates and assumptions about matters that are inherently
uncertain:
Critical accounting judgements

In the process of applying Glencore’s accounting policies, management has made the following judgements based on the relevant
facts and circumstances including macro-economic circumstances and, where applicable, interpretation of underlying agreements,
which have the most significant effect on the amounts recognised in the consolidated financial statements.
(i) Determination of control of subsidiaries and joint arrangements
Judgement is required to determine when Glencore has control of subsidiaries or joint control of joint or other unincorporated
arrangements. This requires an assessment of the relevant activities (those relating to the operating and capital decisions of the
arrangement, such as: the approval of the capital expenditure programme for each year, and appointing, remunerating
and terminating the key management personnel or service providers of the operations) and when the decisions in relation to those
activities are under the control of Glencore or require unanimous consent. See note 26 for a summary of the acquisitions of
subsidiaries completed during 2021 and 2020 and the key judgements made in determining control thereof.
Judgement is also required in determining the classification of a joint arrangement between a joint venture or a joint operation
through an evaluation of the rights and obligations arising from the arrangement and in particular, if the joint arrangement has
been structured through a separate vehicle, further consideration is required of whether:
(1) the legal form of the separate vehicle gives the parties rights to the assets and obligations for the liabilities;
(2) the contractual terms and conditions give the parties rights to the assets and obligations for the liabilities; and
(3) other facts and circumstances give the parties rights to the assets and obligations for the liabilities.

Joint arrangements in which the primary activity is the provision of output to the shareholders, typically convey substantially all the
economic benefits of the assets to the parties and judgement is required in assessing whether the terms of the offtake agreements
and any other obligations for liabilities of the arrangement result in the parties being substantially the only source of cash flows
contributing to the continuity of the operations of the arrangement.
Certain joint arrangements that are structured through separate vehicles including Collahuasi and Viterra are accounted for as joint
ventures. The Collahuasi arrangement is primarily designed for the provision of output to the shareholders sharing joint control, the
offtake terms of which are at prevailing market prices and the parties are not obligated to cover any potential funding shortfalls. In
management’s judgement, Glencore is not the only possible source of funding and does not have a direct or indirect obligation to
the liabilities of the arrangement, but rather shares in its net assets and, therefore, such arrangements have been accounted for as
joint ventures.
Differing conclusions around these judgements may materially impact how these businesses are presented in the consolidated
financial statements – under the full consolidation method, equity method or recognition of Glencore’s share of assets, liabilities,
revenue and expenses, including any assets or liabilities held jointly. See note 11 for a summary of these joint arrangements and the
key judgements made in determining the applicable accounting treatment for any material joint arrangements entered during the
year.
(ii) Classification of transactions which contain a financing element (notes 21, 22 and 25)
Transactions for the purchase of commodities may contain a financing element such as extended payment terms. Under such an
arrangement, a financial institution may issue a letter of credit on behalf of Glencore and act as the paying party upon delivery of
product by the supplier and Glencore will subsequently settle the liability directly with the financial institution, generally from 30 up
to 90 days after physical supply. Judgement is required to determine the most appropriate classification and presentation of these
transactions within the statements of cash flows and financial position. In determining the appropriate classification, management
considers the underlying economic substance of the transaction and the significance of the financing element to the transaction.
Typically, the economic substance of the transaction is determined to be operating in nature as the financing element is
insignificant and the time frame in which the original arrangement is extended by, is consistent and within supply terms commonly
provided in the market. As a result, the entire cash flow is presented as operating in the statement of cash flows with a
corresponding trade payable in the statement of financial position. As at 31 December 2021, trade payables include $8,565 million
(2020: $7,178 million) of such liabilities arising from supplier financing arrangements, the weighted average of which extended
settlement of the original payable to 77 days (2020: 91 days) after physical supply and are due for settlement 33 days (2020: 46 days)
after year end. There was no significant exposure to any individual financial institution under these arrangements. These payables
are not included within net funding and net debt as defined in the APMs section.
(iii) Classification of physical liquefied natural gas (LNG) purchase and sale contracts at amortised cost or fair value
through profit and loss (notes 28 and 29)
Judgement is required to determine the appropriate IFRS 9 classification of physical LNG purchase and sale contracts as being
measured at amortised cost or fair value through profit and loss. This requires an assessment of whether the contracts to buy or sell
LNG (a non-financial item) can be settled net in cash or with another financial instrument, or by exchanging financial instruments, as
if the contracts were financial instruments, and whether there is a past practise of net settling similar contracts. Those physical LNG
contracts that can be net settled are considered to be derivatives, measured at fair value through profit or loss (see notes 28 and 29).
Contracts that do not meet the definition of derivative are considered own use contacts and are to be accounted for as executory
contracts measured at amortised cost.
Differing conclusions around classification of these contracts, may materially impact their presentation as financial assets or
liabilities and any fair value adjustments recognised through profit and loss. As at 31 December 2021, the net fair value of physical
LNG contracts on the statement of financial position is $912 million ($1,786 million forward physical asset and $874 million forward
physical liability).
(iv) Investigations by regulatory and enforcement authorities – Critical judgement in relation to whether a present
obligation exists (note 32) and key estimation uncertainty in relation to the measurement of the provision recognised
for such investigations (note 23).
(v) Impact of carbon pricing – refer to climate change related considerations above

Key sources of estimation uncertainty

In the process of applying Glencore’s accounting policies, management has made key estimates and assumptions concerning the
future and other key sources of estimation uncertainty. The key assumptions and estimates at the reporting date that have a
significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year, are
described below. Actual results may differ from these estimates under different assumptions and conditions and may materially
affect financial results or the financial position reported in future periods.
(i) Recognition of deferred tax assets and uncertain tax positions (note 8)
Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an
assessment of when those deferred tax assets are likely to reverse, and a judgement as to whether there will be sufficient taxable
income available to offset the tax assets when they do reverse. These judgements and estimates are subject to risk and uncertainty
and therefore, to the extent assumptions regarding future profitability change, there can be a material increase or decrease in the
amounts recognised in the consolidated statement of income in the period in which the change occurs, notably the deferred tax
asset and uncertain tax position of the Group’s DRC operations as outlined in note 8. The recoverability of the Group’s deferred tax
assets and the completeness and accuracy of its uncertain tax positions, including the estimates and assumptions contained
therein are reviewed regularly by management.
(ii) Impairments and impairment reversals (note 7)
Investments in associates and joint ventures, advances and loans, property, plant and equipment and intangible assets are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying value of an individual asset or a cash-
generating unit (CGU) may not be fully recoverable, or at least annually for CGUs to which goodwill and other indefinite life
intangible assets have been allocated. Indicators of impairment may include changes in the Group’s operating and economic
assumptions, including those arising from changes in reserves or mine planning, updates to the Group’s commodity supply,
demand and price forecasts, or the possible impacts from emerging risks such as those related to climate change and the transition
to a lower carbon economy. If an asset or CGU’s recoverable amount is less than its carrying amount, an impairment loss is
recognised in the consolidated statement of income. For those assets or CGUs which were impaired in prior periods, if their
recoverable amount exceeds their carrying amount, an impairment reversal is recorded in the consolidated statement of income.
Future cash flow estimates which are used to calculate the asset’s or CGU’s recoverable amount are discounted using asset or CGU
specific discount rates and are based on expectations about future operations, using a combination of internal sources and those
inputs available to a market participant, which primarily comprise estimates about production and sales volumes, commodity prices
(considering current and future prices and price trends including factors such as the current global trajectory of climate change),
reserves and resources, operating costs and capital expenditures. Estimates are reviewed regularly by management. Changes in
such estimates and in particular, deterioration in the commodity pricing outlook, could impact the recoverable amounts of these
assets or CGUs, whereby some or all of the carrying amount may be impaired or the impairment charge reversed (if pricing outlook
improves significantly) with the impact recorded in the statement of income.
As noted above and further described below in the ‘impairment or impairment reversals’ accounting policy, the Group carries out, at
least annually, an impairment assessment. Following this review, indicators of impairment or impairment reversal were identified for
various CGUs, including those due to an improvement in the underlying commodity price environment most influencing the
respective operation. The Group assessed the recoverable amounts of these CGUs and as at 31 December 2021, except for those
CGUs disclosed in note 7, the estimated recoverable amounts exceeded the carrying values. For certain CGUs where no impairment
was recognised, should there be a significant deterioration or improvement in the key assumptions, a material impairment or
reversal could result within the next financial year. A summary of the carrying values, the key / most sensitive assumptions and a
sensitivity impact of potential movements in these assumptions for each such CGU with limited headroom (relative to its estimated
recoverable amount) is shown below. In providing sensitivity analysis (and particularly on commodity price assumptions), a 10%
change, representing a typical deviation parameter common in the industry, has generally been provided. Where a higher or lower
percentage is reasonably possible on an operational assumption, this has been clearly identified.

Sensitivity to project execution and ramp-up (reasonably possible within the next financial year)
Mutanda
Mutanda’s non-current capital employed is carried at approximately $2,200 million net of an accumulated impairment of
$955 million. Following care and maintenance status since 2019, a limited restart of operations commenced in 2021, utilising
stockpiles of oxide ore. The valuation includes value attributable to the long-term copper / cobalt sulphide resource potential. The
valuation is sensitive to price and eventual commercialisation of the sulphide resources, and deteriorations or improvements in
these key assumptions may result in additional impairments or reversals.
The short to long-term copper and cobalt price assumptions were $8,500-$7,000/t and $24-$25/lb respectively. A 10% reduction in
the copper and cobalt price assumptions is not expected to result in a further impairment. Should the copper and cobalt
assumptions rise by 10% (across the curve), the previously recognised impairment could be reversed in its entirety. Any such
adjustment would also be considered in light of the remaining development risks relating to sulphide resources. Similarly, at such
time as the sulphides resources may be commercialised, the balance of the historical impairment could be reversed.
Volcan
Volcan’s non-current capital employed is carried at approximately $1,300 million net of an accumulated impairment of $1,903 million.
Impairments principally related to value attributable to the future potential of various projects / resources. The valuation is sensitive
to price and eventual commercialisation of the projects / resources, and deteriorations or improvements in these key assumptions
may result in additional impairments or reversals.
The short to long-term zinc and silver price assumptions were $2,750-$2,400/t and $24-$20/oz respectively. Should the zinc and
silver assumptions reduce by 10% (across the curve) or production reduce by 10%, an additional impairment of $470 million or $530
million, respectively, could be recognised. Should the zinc and silver assumptions rise by 10% (across the curve) an impairment
reversal of $570 million could be recognised.
Climate change (additional illustrative disclosures)
Based on the current pricing environment, we do not consider there to be a reasonably possible change in key assumptions that
would result in a material change in carrying values of any of our coal CGUs in the next financial year. With respect to our oil CGUs, a
change in oil refining margin assumptions (across the curve) of $1/bbl is reasonably possible and could result in a $240 million
change (increase or decrease) to the carrying value of the Astron Energy CGU.
All other sensitivities below are therefore illustrative of changes in assumptions beyond the next financial year.
Energy fossil fuels industrial operations
Our base case assessment takes into account the short-, medium- and longer-term seaborne coal demand outlook. While we have
aligned our operational objectives and resulting emissions with a net zero by 2050 pathway, any such projected global pathway
relies on additional efforts by governments, corporations and individuals to shift from a “business as usual” trajectory to a lower
emissions trajectory. In particular, economic incentivisation of such shift, whether through carbon pricing and / or incentives to drive
accelerated uptake of lower carbon and decarbonisation technologies, could result in different financial results on the same
tonnage profile.
Our assessment applies a value in use methodology and assumes that, beyond the next 3 years when shorter term pricing
assumptions have been used, through the remaining life of mine, there will continue to be a market for thermal coal at a real
Newcastle FOB export price of $83/tonne (6,000 NAR), South African FOB export price of $83/tonne and Colombian CIF price
(destination: Rotterdam) of $67/tonne, which represents our best estimate of long term pricing based on our view of projected likely
supply and demand fundamentals and the industry cost structure.
Notwithstanding these assumptions, we present illustrative impairments arising under alternate price scenarios which are
consistent with our IEA aligned climate scenarios. The IEA scenarios are described below:
• IEA’s Stated Policies scenario (STEPS) – the impact of existing policy frameworks and announced policy intentions, subject to the
IEA’s assessment of the likelihood of such ambitions being implemented (consistent with our “Current Pathway” scenario);
• IEA’s Announced Pledges scenario (APS) – the impact of all major national announcements of 2030 targets and longer term net
zero and other pledges, regardless of whether these have been anchored in legislation or nationally determined contributions;
• IEA’s Sustainable Development scenario (SDS) – the impact should additional policy mechanisms be implemented sufficient for
full alignment with the Paris Goals of less than 2 degrees (consistent with our “Rapid Transition” scenario);
• IEA’s Net zero emissions by 2050 scenario (NZE) – a pathway for the global energy sector to achieve net zero emissions by 2050
(consistent with our “Radical Transformation” scenario) and price assumptions for this scenario; and
In addition, for illustrative purposes, we have shown a Complete Displacement Scenario (CDS) – reflecting the impact of fossil fuels
being immediately displaced as an energy source and the resulting immediate fall in commodity prices to zero.

Our life of mine planning reflects operating cash flows from Cerrejon and the E&P oil portfolio until 2032, and some South African
and Australian mines until 2043 and around 2050, respectively. Overall portfolio production is heavily weighted towards the earlier
part of these mine lives and is broadly aligned with the IEA’s SDS outlook for reducing coal demand. We have illustrated this by
showing the year in which 50% and 80% of saleable coal would be extracted under the current plan, by 2029 and 2037 respectively.
The sensitivities are presented on price alone and assume no mitigating actions, therefore the impairments in each scenario are
likely higher than would transpire. In practice, in a sustained lower price environment, management would alter mine plans to cut
operating and capital costs, potentially at the expense of future volumes, in order to reduce the overall NPV impact.
The STEPS, APS, SDS and NZE sensitivity prices adopted are those included in the documentation to the IEA’s World Energy Model
2021, except that IEA thermal coal prices are on a delivered basis. These have been adjusted to FOB pricing on the basis of forward
freight costs. Furthermore, in determining the Colombian CIF price, we have used a weighting of the IEA Japan and IEA European
prices to take into account that Colombian coal sold from Cerrejon is likely to be delivered to a combination of different markets in
the future as coal demand in Europe declines.
The IEA assumes, in each scenario, additional decarbonisation measures leading to declining fossil fuel prices by the years 2030 and
2050, anchored in each case in a 2020 baseline. For the purpose of our climate change sensitivities below, we have assumed linear
progression of prices between these points. Our base case thus reflects significantly higher short-term prices informed by more
recent market prices than were available in the World Energy Model 2021, and higher longer-term prices than in each of the IEA’s
climate scenarios reflecting our assessment of the supply and demand outlook and the industry cost structure.
Cash-generating unit
Thermal South Total thermal
US$ million Thermal Australia Africa Cerrejon coal Oil E&P
Base case assumptions in life of mine plan:

– LOM saleable tonnes (Glencore consolidated)
(million tonnes)/ (million bbls) 1,100 340 74 44
– projected year when 50% LOM tonnage /
reserves depleted 2029 2029 2026 2029 2024
– projected year when 80% LOM tonnage /
reserves depleted 2038 2034 2029 2037 2027
– long-term price (Newcastle FOB / API4 FOB /
API2 CIF) ($/t) / (Brent oil price) ($/bbl) (real terms) 83 83 67 60
– discount rate applied (ranges represent opencut
/ underground) 6.8-7.4% 9.3-9.8% 8.6% 11.5%
Benchmark prices over LOM in selected scenarios

($/t, $/bbl): 2020 - '30 - '50 2020 - '30 - '50 2020 - '30 - '50 2022 - '30
– IEA STEPS 64 - 72 - 63 72 - 72 - 65 61 - 76 - 70 85 - 80
– IEA APS 64 - 68 -55 72 - 66 - 55 61 - 75 - 63 85 - 70
– IEA SDS 64 - 61 - 55 72 -61 -55 61 - 67 - 63 85 - 58
– IEA NZE 64 - 52 - 42 72 - 49 - 42 61 - 60 - 50 85 - 38
– CDS n.a. n.a. n.a. n.a.
Carrying value of non-current capital employed as

at 31 December 2021 7,742 2,286 567 10,595 419
Illustrative impairment arising:

– IEA STEPS 3,400 1,200 62 4,700 –
– IEA APS 4,400 1,600 81 6,100 –
– IEA SDS 6,000 1,900 230 8,100 –
– IEA NZE 7,000 2,286 340 9,600 –
– CDS 7,742 2,286 567 10,595 419
$151 million of the Oil E&P non-current capital employed relates to Chad upstream oil operations in the “held for sale” classification,
shown in note 16.

No impairment is projected for Oil E&P in any of the IEA’s scenarios. Glencore’s central price case for Oil E&P is $60/bbl, hence no
adverse impact in the STEPS and APS scenarios which assume higher prices throughout. For the more aggressive price reductions
envisaged in the SDS and NZE scenarios ($58/bbl and $38/bbl, respectively, by 2030, such prices having been adjusted to real terms
2021), we assumed $85/bbl in 2022, reducing by $10/bbl each year until the noted long-term price in each scenario was reached.
Since 80% of extraction is expected by 2027, the impact of the lower prices on the balance is not projected to result in an
impairment.
Other fossil fuel related capital employed NPV sensitivities
Cash-generating unit
Coal
marketing
US$ million Coking coal Astron Energy goodwill
Base case assumptions in life of asset plan:

– LOA saleable tonnes (millions) / Refinery steady-state capacity ('000 bbls) 140 100k bopd n.a.
– projected year when 50% LOA reserves depleted 2028 n.a. n.a.
– projected year when 80% LOA reserves depleted 2034 n.a. n.a.
– long-term price (hard coking coal) ($/t) (real terms) 163 n.a. n.a.
– discount rate applied (ranges represent opencut / underground) 6.8-7.4% 10.6% n.a.
– price to earnings multiple 12x
Percentage decrease to long-term pricing/PE multiples:

– 25% price / $1/bbl refining margin1 / 2x PE (17%) decrease 122 n.a. 10x
– 30% price / $2/bbl refining margin / 4x PE (33%) decrease 114 n.a. 8x
Carrying value of non-current capital employed as at 31 December 2021 1,768 781 1,674
Illustrative impairment arising:

– 25% price decrease across the curve / $1/bbl refining margin1 / 2x PE (17%) decrease 130 240 –
– 30% price decrease across the curve / $2/bbl refining margin / 4x PE (33%) decrease 360 500 100
1 The change in refining margin by $1/bbl is considered to be a reasonably possible change in our assumptions for Astron Energy within the next financial year.
(iii) Restoration, rehabilitation and decommissioning costs (note 23)

A provision for future restoration, rehabilitation and decommissioning costs requires estimates and assumptions to be made around
the relevant regulatory framework, the magnitude of the possible disturbance and the timing, extent and costs of the required
closure and rehabilitation activities. Most of these rehabilitation and decommissioning events are expected to take place many years
in the future and the currently estimated requirements and costs that will have to be met when the restoration event occurs are
inherently uncertain and could materially change over time.
In calculating the appropriate provision for the expected restoration, rehabilitation or decommissioning obligations, cost estimates
of the future potential cash outflows based on current studies of the expected rehabilitation activities and timing thereof, are
prepared. These forecasts are then discounted to their present value using a risk-free rate specific to the liability and the currency in
which they are denominated.
Any changes in the expected future costs or risk-free rate are initially reflected in both the provision and the asset and subsequently
in the consolidated statement of income over the remaining economic life of the asset. As the actual future costs can differ from the
estimates due to changes in laws, regulations, technology, costs and timing, the provisions including the estimates and
assumptions contained therein are reviewed regularly by management. A material change in the provision within the next financial
year could arise from changes in risk-free rates. The aggregate effect of changes within the next financial year as a result of revisions
to cost and timing assumptions is not expected to be material.
Climate change sensitivities
As noted above, while it is not a reasonably possible change we expect over the next financial year, global ambitions seeking to drive
quicker decarbonisation, could result in the timing of restoration, rehabilitation and decommissioning costs related to our coal and
oil closure obligations being accelerated. The undiscounted and current carrying value of our closure and monitoring provisions
related to these operations is $3,843 million and $1,996 million, respectively. The weighted average maturity of the relevant closure
provisions is 17 years. To illustrate the effect of accelerating these cash flows, we have presented a three-year and five-year weighted
average acceleration in forecast cash flows of these provisions, which in isolation, would result in an increase to the provision of
$217 million and $350 million, respectively.

Adoption of new and revised standards

In the current year, Glencore has adopted all new and revised IFRS standards that became effective as of 1 January 2021, the changes
being:
(i) Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
The amendments introduce a practical expedient for modifications required by the reform, provide an exception that hedge
accounting is not discontinued solely because of the IBOR reform, and introduces disclosures that allow users to understand the
nature and extent of risks arising from the IBOR reform to which the entity is exposed to and how the entity manages those risks as
well as the entity’s progress in transitioning from IBOR’s to alternative benchmark rates, and how the entity is managing this
transition.
These amendments did not have a material impact on the Group.
Revised standards not yet effective

At the date of the authorisation of these consolidated financial statements, the following revised IFRS standards, which are
applicable to Glencore, were issued but not yet effective:
(i) Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) – effective for year ends beginning on or
after 1 January 2022
The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that
relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly
to fulfilling contracts. The Group will apply the amendments to contracts for which the Group has not yet fulfilled all its obligations at
the beginning of the annual reporting period in which the entity first applies the amendments. Comparatives will not be restated.
(ii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) – effective
for year ends beginning on or after 1 January 2023
The amendments specify how companies should account for deferred tax on transactions such as leases and decommissioning
obligations, and clarify that the initial recognition exception does not apply to transactions where both an asset and a liability are
recognised in a single transaction. Accordingly, deferred tax is required to be recognised on such transactions.
(iii) Definition of Accounting Estimates (Amendments to IAS 8) – effective for year ends beginning on or after
1 January 2023
The amendments introduce the definition of accounting estimates and include other amendments to IAS 8 to help entities
distinguish changes in accounting estimates from changes in accounting policies.
(iv) Materiality of Accounting Policy Disclosure (Amendments to IAS 1) – effective for year ends beginning on or after
1 January 2023
The amendments require companies to disclose their material accounting policy information rather than their significant
accounting policies.
No significant changes to presentation or disclosures within these financial statements are expected following the adoption of these
amendments.
Basis of preparation
The financial statements are prepared under the historical cost convention except for certain financial assets, liabilities, marketing
inventories and pension obligations that are measured at revalued amounts or fair values at the end of each reporting period as
explained in the accounting policies below. Historical cost is defined as the amount of cash or cash equivalents paid or the fair value
of the consideration given to acquire them at the time of their acquisition. The principal accounting policies adopted are set out
below.
The Directors have assessed that they have, at the time of approving these financial statements, a reasonable expectation that the
Group has adequate resources to continue in operational existence for the 12 months from the expected date of approval of the 2021
Annual Report and Accounts. Therefore, they continue to adopt the going concern basis of accounting in preparing these financial
statements. The Directors have made this assessment after consideration of the Group’s budgeted cash flows and related
assumptions including appropriate stress testing of the identified uncertainties (being primarily commodity prices and currency
exchange rates) and access to undrawn credit facilities and monitoring of debt maturities. Further information on Glencore’s
objectives, policies and processes for managing its capital and financial risks are detailed in note 27.
All amounts are expressed in millions of United States Dollars, the presentation currency of the Group, unless otherwise stated.

Principles of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company
and its subsidiaries.
Control is achieved when Glencore is exposed, or has rights, to variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the investee. Specifically, Glencore controls an investee if, and only if, Glencore
has all of the following:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement with the investee; and
• The ability to use its power over the investee to affect its returns.
When Glencore has less than a majority of the voting rights of an investee or similar rights of an investee, it considers all relevant
facts and circumstances in assessing whether it has power over the investee including:
• The size of Glencore’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
• Potential voting rights held by Glencore, other vote holders or other parties;
• Rights arising from other contractual arrangements; and
• Any additional facts and circumstances that indicate that Glencore has, or does not have, the current ability to direct the relevant
activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control listed above. Consolidation of a subsidiary begins when Glencore obtains control over the
subsidiary and ceases when Glencore loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statement of income and other comprehensive income from the date
Glencore gains control until the date when Glencore ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-
controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-
controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with
the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
Changes in Glencore’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions with any
difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid
or received being recognised directly in equity and attributed to equity holders of Glencore.
When Glencore loses control of a subsidiary, a gain or loss is recognised in the consolidated statement of income and is calculated as
the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and
(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if Glencore had
directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category
of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date
when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IFRS 9, when applicable,
or the cost on the initial recognition of an investment in an associate or a joint venture.
Investments in associates and joint ventures

Associates and joint ventures (together “Associates”) in which Glencore exercises significant influence or joint control are accounted
for using the equity method. Significant influence is the power to participate in the financial and operating policy decisions of the
investee but is not control or joint control over those policies. Significant influence is presumed if Glencore holds between 20% and
50% of the voting rights, unless evidence exists to the contrary. A joint venture is a joint arrangement whereby the parties that have
joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed
sharing of control over an arrangement, which exists only when decisions about relevant strategic and/or key operating decisions
require unanimous consent of the parties sharing control.
Equity accounting involves Glencore recording its share of the Associate’s net income and equity. Glencore’s interest in an Associate
is initially recorded at cost and is subsequently adjusted for Glencore’s share of changes in net assets of the Associate, less any
impairment in the value of individual investments. Where Glencore transacts with an Associate, unrealised profits and losses are
eliminated to the extent of Glencore’s interest in that Associate.

Changes in Glencore’s interests in Associates are accounted for as a gain or loss on disposal with any difference between the
amount by which the carrying value of the Associate is adjusted and the fair value of the consideration received being recognised
directly in the consolidated statement of income.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement, have rights to the assets and
obligations for the liabilities relating to the arrangement.
When Glencore undertakes its activities under joint operations, Glencore recognises in relation to its interest in a joint operation:
• Its assets, including its share of any assets held jointly;
• Its liabilities, including its share of any liabilities incurred jointly;
• Its revenue from the sale of its share of the output arising from the joint operation;
• Its share of the revenue from the sale of the output by the joint operation; and
• Its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with
the IFRSs applicable to the particular assets, liabilities, revenues and expenses.
Where Glencore transacts with a joint operation, unrealised profits and losses are eliminated to the extent of Glencore’s interest
in that joint operation.
Other unincorporated arrangements

In some cases, Glencore participates in unincorporated arrangements where it has the rights to its share of the assets and
obligations for its share of the liabilities of the arrangement, rather than a right to the net returns of the arrangement, but does not
share joint control. In such cases, Glencore accounts for its share of the assets, liabilities, revenues and expenses in accordance with
the IFRSs applicable to the particular assets, liabilities, revenues and expenses and obligations for the liabilities relating to the
arrangement, similar to a joint operation noted above.
Business combinations and goodwill

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method of accounting. The cost of the
acquisition is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets transferred,
liabilities incurred to the former owners of the acquiree and the equity interests issued in exchange for control of the acquiree. The
identifiable assets, liabilities and contingent liabilities (“identifiable net assets”) are recognised at their fair value at the date of
acquisition. Acquisition related costs are recognised in the consolidated statement of income as incurred.
Where a business combination is achieved in stages, Glencore’s previously held interests in the acquired entity are remeasured to
fair value at the acquisition date (i.e. the date Glencore attains control) and the resulting gain or loss, if any, is recognised in the
consolidated statement of income.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the
acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-
date amounts of the identifiable assets acquired and the liabilities assumed.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment
testing, goodwill acquired in a business combination is, from the acquisition date, allocated to the CGUs that are expected to benefit
from the synergies of the combination. CGUs to which goodwill has been allocated are tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less than its carrying
amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the
other assets of the unit pro-rata based on the carrying amount of each asset in the unit.
Any impairment loss is recognised directly in profit or loss. An impairment loss recognised for goodwill is not able to be reversed in
subsequent periods.
On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the profit or loss
on disposal.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination
occurs, Glencore reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are
adjusted for additional information obtained during the “measurement period” (which cannot exceed one year from the acquisition
date) about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts
recognised at that date.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net
assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share
of the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-
transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in
another IFRS.
Similar procedures are applied in accounting for the purchases of interests in Associates and joint operations. Any goodwill arising
from such purchases is included within the carrying amount of the investment in Associates, but not amortised thereafter. Any
excess of Glencore’s share of the net fair value of the Associate’s identifiable net assets over the cost of the investment is included
in the consolidated statement of income in the period of the purchase.
Non-current assets held for sale and disposal groups

Non-current assets, liabilities and those included in disposal groups are classified as held for sale if their carrying amount will
be recovered principally through a sale transaction rather than through continuing use, they are available for immediate disposal
and the sale is highly probable. Non-current assets, liabilities and those included in disposal groups held for sale are measured at the
lower of their carrying amount or fair value less costs to sell.
Revenue recognition
Revenue is derived principally from the sale of goods (sale of commodities) and in some instances the goods are sold on Cost and
Freight (CFR) or Cost, Insurance and Freight (CIF) Incoterms. When goods are sold on a CFR or CIF basis, the Group is responsible for
providing these services (shipping and insurance) to the customer, sometimes after the date at which Glencore has lost control of
the goods. Revenue is recognised when the performance obligations have been satisfied, which is once control of the goods and/or
services has transferred from Glencore to the buyer. Revenue is measured based on consideration specified in the contract with a
customer and excludes amounts collected on behalf of third parties. The same recognition and presentation principles apply to
revenues arising from physical settlement of forward sale contracts that do not meet the own use exemption.
Revenue related to the sale of goods is recognised when the product is delivered to the destination specified by the customer,
which is typically the vessel on which it is shipped, the destination port or the customer’s premises and the buyer has gained control
through their ability to direct the use of and obtain substantially all the benefits from the asset. Where the sale of goods is
connected with an agreement to repurchase goods at a later date, revenue is recognised when the repurchase terms are at
prevailing market prices, the goods repurchased are readily available in the market, and the buyer gained control of the goods
originally sold to them. As at 31 December 2021, the outstanding repurchase commitments under such agreements were $Nil (2020:
approximately $300 million). Should it be determined that control has not transferred or the buyer does not have the ability to
benefit substantially from ownership of the asset, revenue is not recognised and any proceeds received are accounted for as a
financing arrangement. For certain commodities, the sales price is determined on a provisional basis at the date of sale as the final
selling price is subject to movements in market prices up to the date of final pricing, normally ranging from 30 to 90 days after initial
booking (provisionally priced sales). Revenue on provisionally priced sales is recognised based on the estimated fair value of the total
consideration receivable. The revenue adjustment mechanism embedded within provisionally priced sales arrangements has the
character of a commodity derivative.
Accordingly, the fair value of the final sales price adjustment is re-estimated continuously and changes in fair value are recognised
as an adjustment to revenue. In all cases, fair value is estimated by reference to forward market prices.
Revenue from the sale of material by-products are included within revenue. Where a by-product is not regarded as significant,
revenue may be credited against cost of goods sold.
Revenue related to the provision of shipping and insurance related activities is recognised over time as the service is rendered.
Payments received for future metal (primarily gold and silver) deliveries (prepayments) are accounted for as executory contracts
whereby the prepayment is initially recorded as deferred revenue in the consolidated statement of financial position. The initial
deferred revenue amount is unwound and revenue is recognised in the consolidated statement of income as and when Glencore
physically delivers the metal and loses control of it. Where these prepayments are in excess of one year and contain a significant
financing component, the amount of the deferred revenue is adjusted for the effects of the time value of money. Glencore applies
the practical expedient to not adjust the promised amount of consideration for the effects of time value of money if the period
between delivery and the respective payment is one year or less.
Royalty, interest and dividend income is recognised when the right to receive payment has been established, it is probable that the
economic benefits will flow to Glencore and the amount of income can be measured reliably. Royalty revenue is recognised on an
accruals basis in accordance with the substance of the relevant agreement. Interest income is accrued on a time basis, by reference
to the principal outstanding and the applicable effective interest rate.

Foreign currency translation

Glencore’s reporting currency and the functional currency of the majority of its operations is the U.S. dollar as this is assessed to be
the principal currency of the economic environment in which it operates.
(i) Foreign currency transactions
Transactions in foreign currencies are converted into the functional currency of each entity using the exchange rate prevailing at the
transaction date. Monetary assets and liabilities outstanding at year-end are converted at year-end rates. Non-monetary items
measured in terms of historical cost are translated using the exchange rate at the date of the transaction. The resulting exchange
differences are recorded in the consolidated statement of income.
(ii) Translation of financial statements
For the purposes of consolidation, assets and liabilities of group companies whose functional currency is in a currency other than the
U.S. dollar are translated into U.S. dollars using year-end exchange rates, while their statements of income are translated using
average rates of exchange for the year. Translation adjustments are included as a separate component of shareholders’ equity and
have no consolidated statement of income impact to the extent that no disposal of the foreign operation has occurred. Where an
intragroup balance is, in substance, part of the Group’s net investment in an entity, exchange gains and losses on that balance are
taken to the currency translation reserve. Cumulative translation differences are recycled from equity and recognised as income or
expense on disposal of the operation to which they relate.
Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated as assets and liabilities of the
foreign operation and are translated at the closing rate.
Borrowing costs
Borrowing costs are expensed as incurred except where they relate to the financing of construction or development of qualifying
assets in which case they are capitalised up to the date when the qualifying asset is ready for its intended use.
Employee and retirement benefits

Wages, salaries, bonuses, social security contributions, paid annual and sick leave are accrued in the period in which the associated
services are rendered by the employees of the Group.
Glencore operates various pension schemes in accordance with local requirements and practices of the respective countries. The
annual costs for defined contribution plans that are funded by payments to separate trustee administered funds or insurance
companies equal the contributions that are required under the plans and accounted for as an expense.
For defined benefit retirement plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at the end of each annual reporting period. Remeasurements comprising actuarial gains and
losses, the effect of the asset ceiling (if applicable) and the return on plan assets (excluding interest) are recognised immediately in
the statement of financial position with a charge or credit to other comprehensive income in the period in which they occur.
Remeasurements recognised in other comprehensive income are not reclassified. Past service cost is recognised in profit or loss
when the plan amendment or curtailment occurs, or when the Group recognises related restructuring costs or termination benefits,
if earlier. Gains or losses on settlement of a defined benefit plan are recognised when the settlement occurs. Net interest is
calculated by applying a discount rate to the net defined benefit liability or asset.
Defined benefit costs are split into three categories:
• service costs, which includes current service cost, past service cost and gains and losses on curtailments and settlements;
• net interest expense or income; and
• remeasurements.
The Group recognises service costs within the consolidated statement of income.
Net interest expense or income is recognised within interest expense or income within the consolidated statement of income.
Any past service cost (or the gain or loss on settlement) is calculated by measuring the defined benefit liability (asset) using updated
assumptions and comparing benefits offered and plan assets before and after the plan amendment (or curtailment or settlement)
but ignoring the effect of the asset ceiling (that may arise when the defined benefit plan is in a surplus position). The Group uses the
updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the
reporting period after the change to the plan. In the case of the net interest for the period post-plan amendment, the net interest is
calculated by multiplying the net defined benefit liability (asset) as remeasured with the discount rate used in the remeasurement
(also taking into account the effect of contributions and benefit payments on the net defined benefit liability (asset)).
The retirement benefit obligation recognised in the consolidated statement of financial position represents the deficit or surplus in
the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.

Glencore also provides post-retirement healthcare benefits to certain employees in Canada, South Africa and the United States.
These are accounted for in a similar manner to the defined benefit pension plans, however are unfunded.
Share-based payments
(i) Equity-settled share-based payments
Equity-settled share-based payments are measured at the fair value of the awards based on the market value of the shares at the
grant date. Fair value excludes the effect of non-market-based vesting conditions. The fair value is charged to the consolidated
statement of income and credited to retained earnings on a straight-line basis over the period the estimated awards are expected
to vest.
At each balance sheet date, the Company revises its estimate of the number of equity instruments expected to vest as a result of the
effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised in the
consolidated statement of income such that the cumulative expense reflects the revised estimate, with a corresponding
adjustment to retained earnings.
(ii) Cash-settled share-based payments
For cash-settled share-based payments, a liability is initially recognised at fair value based on the estimated number of awards that
are expected to vest, adjusting for market and non-market-based performance conditions. Subsequently, at each reporting period
until the liability is settled, it is remeasured to fair value with any changes in fair value recognised in the consolidated statement
of income.
Income taxes
Income taxes consist of current and deferred income taxes. Current taxes represent income taxes expected to be payable based on
enacted or substantively enacted tax rates at the period end on expected current taxable income, and any adjustment to tax
payable in respect of previous years. Deferred taxes are recognised for temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable income, using
enacted or substantively enacted income tax rates which are expected to be effective at the time of reversal of the underlying
temporary difference. Deferred tax assets and unused tax losses are only recognised to the extent that their recoverability is
probable. Deferred tax assets are reviewed at reporting period end and amended to the extent that it is no longer probable that the
related benefit will be realised. To the extent that a deferred tax asset not previously recognised subsequently fulfils the criteria for
recognition, an asset is then recognised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same authority and Glencore has both
the right and the intention to settle its current tax assets and liabilities on a net or simultaneous basis. The tax effect of certain
temporary differences is not recognised principally with respect to the initial recognition of an asset or liability (other than those
arising in a business combination or in a manner that initially impacted accounting or taxable profit) and temporary differences
relating to investments in subsidiaries and Associates to the extent that Glencore can control the timing of the reversal of the
temporary difference and it is probable the temporary difference will not reverse in the foreseeable future. Deferred tax is provided
in respect of fair value adjustments on acquisitions. These adjustments may relate to assets such as extraction rights that, in general,
are not eligible for income tax allowances.
Current and deferred tax are recognised as an expense or income in the consolidated statement of income, except when they relate
to items that are recognised outside the consolidated statement of income (whether in other comprehensive income or directly in
equity) or where they arise from the initial accounting for a business combination.
Royalties, extraction taxes and other levies/taxes are treated as taxation arrangements when they have the characteristics of an
income tax, including being imposed and determined in accordance with regulations established by the respective government’s
taxation authority and the amount payable is based on taxable income – rather than physical quantities produced or as a
percentage of revenues – after adjustment for temporary differences. For such arrangements, current and deferred tax is provided
on the same basis as described above for other forms of taxation. Obligations arising from royalty arrangements that do not satisfy
these criteria are recognised as current provisions and included in cost of goods sold.
Glencore assesses its liabilities and contingencies for all tax years open to audit based upon the latest information available. Inherent
uncertainties exist in estimates of tax contingencies due to complexities of interpretation and changes in tax laws. For those matters
where it is probable that an adjustment will be made, the Group records its best estimate of these tax liabilities, including related
interest charges, taking into account the range of possible outcomes.
Property, plant and equipment

Property, plant and equipment are stated at cost, being the fair value of the consideration given to acquire or construct the asset,
including directly attributable costs required to bring the asset to the location or to a condition necessary for operation and
the direct cost of dismantling and removing the asset, less accumulated depreciation and any accumulated impairment losses.
Property, plant and equipment are depreciated to their estimated residual value over the estimated useful life of the specific asset
concerned, or the estimated remaining life of the associated mine (LOM), field or lease.

Depreciation commences when the asset is available for use. The major categories of property, plant and equipment are
depreciated/amortised on a units of production (UOP) and/or straight-line basis as follows:
Buildings 10 – 45 years
Freehold land not depreciated
Plant and equipment 3 – 30 years/UOP
Right-of-use assets 2 – 30 years
Mineral and petroleum rights UOP
Deferred mining costs UOP
(i) Mineral and petroleum rights

Mineral and petroleum reserves, resources and rights (together “Mineral and petroleum rights”) which can be reasonably valued,
are recognised in the assessment of fair values on acquisition. Mineral and petroleum rights for which values cannot be reasonably
determined are not recognised. Exploitable Mineral and petroleum rights are amortised using the UOP basis over the commercially
recoverable reserves and, in certain circumstances, other mineral resources. Mineral resources are included in amortisation
calculations where there is a high degree of confidence that they will be extracted in an economic manner.
(ii) Exploration and evaluation expenditure
Exploration and evaluation expenditure relates to costs incurred in the exploration and evaluation of potential mineral and
petroleum resources and includes costs such as exploration and production licences, researching and analysing historical
exploration data, exploratory drilling, trenching, sampling and the costs of pre-feasibility studies. Exploration and evaluation
expenditure for each area of interest, other than that acquired from another entity, is charged to the consolidated statement of
income as incurred except when the expenditure is expected to be recouped from future exploitation or sale of the area of interest
and it is planned to continue with active and significant operations in relation to the area, or at the reporting period end, the activity
has not reached a stage which permits a reasonable assessment of the existence of commercially recoverable reserves, in which
case the expenditure is capitalised. As the intangible component (i.e. licences) represents an insignificant and indistinguishable
portion of the overall expected tangible amount to be incurred and recouped from future exploitation, these costs along with other
capitalised exploration and evaluation expenditure are recorded as a component of property, plant and equipment. Purchased
exploration and evaluation assets are recognised at their fair value at acquisition.
As the capitalised exploration and evaluation expenditure asset is not available for use, it is not depreciated. All capitalised
exploration and evaluation expenditure is monitored for indications of impairment. Where a potential impairment is indicated, an
assessment is performed for each area of interest or at the CGU level. To the extent that capitalised expenditure is not expected to
be recovered it is charged to the consolidated statement of income.
Administration costs that are not directly attributable to a specific exploration area are charged to the consolidated statement of
income. Licence costs paid in connection with a right to explore in an existing exploration area are capitalised and amortised over
the term of the permit.
Development expenditure
When commercially recoverable reserves are determined and such proposed development receives the appropriate approvals,
capitalised exploration and evaluation expenditure is transferred to construction in progress, a component within the plant and
equipment asset sub-category. All subsequent development expenditure is similarly capitalised, provided commercial viability
conditions continue to be satisfied. Proceeds from the sale of product extracted during the development phase are netted against
development expenditure. Upon completion of development and commencement of production, capitalised development costs
are further transferred, as required, to the appropriate plant and equipment asset category and depreciated using the unit of
production method (UOP) or straight-line basis.
Deferred mining costs
Mainly comprises certain capitalised costs related to underground mining as well as pre-production and in-production stripping
activities as outlined below. Deferred mining costs are amortised using the UOP basis over the life of the ore body to which those
costs relate.
Deferred stripping costs

Stripping costs incurred in the development of a mine (or pit) before production commences are capitalised as part of the cost of
constructing the mine (or pit) and subsequently amortised over the life of the mine (or pit) on a UOP basis.
In-production stripping costs related to accessing an identifiable component of the ore body to realise benefits in the form of
improved access to ore to be mined in the future (stripping activity asset), are capitalised within deferred mining costs provided all
the following conditions are met:

(a) it is probable that the future economic benefit associated with the stripping activity will be realised;
(b) the component of the ore body for which access has been improved can be identified; and
(c) the costs relating to the stripping activity associated with the improved access can be reliably measured.
If all of the criteria are not met, the production stripping costs are charged to the consolidated statement of income as they are
incurred.
The stripping activity asset is subsequently depreciated on a UOP basis over the life of the identified component of the ore body that
became more accessible as a result of the stripping activity and is then stated at cost less accumulated depreciation and any
accumulated impairment losses.
Leases
As lessee, the Group assesses whether a contract contains a lease at inception of the contract. The Group recognises a right-of-use
asset and corresponding lease liability in the statement of financial position for all lease arrangements where it is the lessee, except
for short-term leases with a term of twelve months or less and leases of low value assets. For these leases, the Group recognises the
lease payments as an operating expense on a straight-line basis over the term of the lease.
The lease liability is initially measured at the present value of the future lease payments from the commencement date of the lease.
The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, the asset and
company specific incremental borrowing rates. Lease liabilities are recognised within borrowings on the statement of financial
position. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using
the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the
lease liability, with a corresponding adjustment to the related right-of-use assets, whenever:
• The lease term changes or there is a significant event or change in circumstances resulting in a change in the assessment of
exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a
revised discount rate;
• The lease payments change due to the changes in an index or rate or a change in expected payment under a guaranteed residual
value, in which case the lease liability is remeasured by discounting the revised lease payments using an unchanged discount
rate; or
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is
remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount
rate at the effective date of modification.
The right-of-use assets are initially recognised on the balance sheet at cost, which comprises the amount of the initial measurement
of the corresponding lease liability, adjusted for any lease payments made at or prior to the commencement date of the lease, any
lease incentive received and any initial direct costs incurred, and expected costs for obligations to dismantle and remove right-of-
use assets when they are no longer used. Right-of-use assets are recognised within property, plant and equipment on the
statement of financial position. Right-of-use assets are depreciated on a straight-line basis from the commencement date of the
lease over the shorter of the useful life of the right-of-use asset or the end of the lease term.
The Group enters into lease arrangements as a lessor with respect to some of its time charter vessels. Leases for which the Group is
an intermediate lessor are classified as finance or operating leases by reference to the right-of-use asset arising from the head lease.
Income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Amounts due from lessees
under finance leases are recognised as receivables at the amount of the Group’s net investment in the leases. Finance lease income
is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in
respect of these leases.
Restoration, rehabilitation and decommissioning

Restoration, rehabilitation and decommissioning costs arising from the installation of plant and other site preparation work,
discounted using a risk-free rate specific to the liability and the currency in which they are denominated to their net present value,
are provided for and capitalised at the time such an obligation arises. The costs are charged to the consolidated statement of
income over the life of the operation through depreciation of the asset and the unwinding of the discount on the provision.
Costs for restoration of subsequent site disturbance, which is created on an ongoing basis during production, are provided for at
their net present values and charged to the consolidated statement of income as extraction progresses.
Changes in the estimated timing of the rehabilitation or changes to the estimated future costs are accounted for prospectively by
recognising an adjustment to the rehabilitation liability and a corresponding adjustment to the asset to which it relates, provided
a reduction, if any, in the provision is not greater than the depreciated capitalised cost of the related asset, in which case the
capitalised cost is reduced to Nil and the remaining adjustment recognised in the consolidated statement of income. In the case of
closed sites, changes to estimated costs are recognised immediately in the consolidated statement of income.

Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortisation (calculated on a straight-line basis over their useful lives) and accumulated impairment losses, if any.
Internally generated intangibles are not capitalised. Instead, the related expenditure is recognised in the consolidated statement of
income in the period in which the expenditure is incurred.
Identifiable intangible assets with a finite life are amortised on a straight-line basis over their expected useful life. The amortisation
method and period are reviewed annually and impairment testing is undertaken when circumstances indicate the carrying amount
may not be recoverable. Other than goodwill which is not amortised, Glencore has no identifiable intangible assets with an
indefinite life.
The major categories of intangibles are amortised on a units of production (UOP) and/or straight-line basis as follows:
Port allocation rights UOP

Licences, trademarks and software 3 – 20 years
Customer relationships 5 – 9 years
Goodwill impairment testing

For the purpose of impairment testing, goodwill has been allocated to the CGUs, or groups of CGUs, that are expected to benefit
from the synergies of the business combination and which represent the level at which management monitors and manages the
goodwill. In assessing whether an impairment is required, the carrying value of the CGU is compared with its recoverable amount.
The recoverable amount is the higher of its fair value less costs of disposal (FVLCD) and its value in use (VIU). If the recoverable
amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount
of any goodwill allocated to the unit and then to the other assets of the unit on a pro-rata basis of the carrying amount of each asset
in the unit. Any impairment loss for goodwill is recognised directly in the consolidated statement of income. An impairment loss
recognised for goodwill can not be reversed in subsequent periods.
Other investments
Equity investments, other than investments in Associates, are recorded at fair value. Glencore designated investments that are not
held for trading as at fair value through other comprehensive income (FVTOCI). As a result, changes in fair value are recorded in the
consolidated statement of other comprehensive income. Dividends from these investments are recognised in the consolidated
statement of income, unless the dividend represents a recovery of part of the cost of the equity investment. Investments that are
held for trading are subsequently measured at fair value through profit or loss (FVTPL).
Impairment or impairment reversals

Glencore conducts, at least annually, an internal review of asset values which is used as a source of information to assess for any
indications of impairment or impairment reversal. Formal impairment tests are carried out, at least annually, for cash-generating
units containing goodwill and for all other non-current assets, when events or changes in circumstances indicate the carrying value
may not be recoverable.
A formal impairment or reversal test involves determining whether the carrying amounts are in excess (or below, as the case may
be) of their recoverable amounts. An asset’s recoverable amount is determined as the higher of its FVLCD and its VIU. Such reviews
are undertaken on an asset-by-asset basis, except where assets do not generate cash flows independent of other assets, in which
case the review is undertaken at the CGU level.
If the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recorded in the consolidated statement of
income to reflect the asset at the lower amount.
For those assets which were impaired in prior periods, if their recoverable amount exceeds their carrying amount, an impairment
reversal is recorded in the consolidated statement of income to reflect the asset at the higher amount to the extent the increased
carrying amount does not exceed the carrying value of the asset that would have been determined had no impairment previously
been recognised. Goodwill impairments cannot be subsequently reversed.

Provisions
Provisions are recognised when Glencore has a present obligation (legal or constructive), as a result of past events, and it is probable
that an outflow of resources embodying economic benefits that can be reliably estimated will be required to settle the liability.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the
balance sheet date, taking into account the risks and uncertainties surrounding the obligation, including interpretation of specific
laws and likelihood of settlement. Where a provision is measured using the cash flow estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
Onerous contracts
An onerous contract is considered to exist where Glencore has a contract under which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received from the contract. Present obligations arising
under onerous contracts are recognised and measured as provisions.
Unfavourable contracts
An unfavourable contract is considered to exist when Glencore, in a business combination, acquires a contract under which the
terms of the contract require Glencore to sell or purchase products or services on terms which are economically unfavourable
compared to current market terms at the time of the business combination. Unfavourable contracts are recognised at the present
value of the economic loss and amortised into the statement of income over the term of the contract.
Inventories
The vast majority of inventories attributable to the marketing activities are valued at fair value less costs of disposal with the
remainder valued at the lower of cost or net realisable value, with costs allocated using the first-in-first-out (FIFO) method.
Unrealised gains and losses from changes in fair value are reported in cost of goods sold.
Inventories held by the industrial activities are valued at the lower of cost or net realisable value. Cost is determined using FIFO or
the weighted average method and comprises material costs, labour costs and allocated production related overhead costs. Typically
raw materials and consumables are measured using the FIFO method and work in progress inventories using the weighted
average method. Where the production process results in more than one product being produced (joint products), cost is allocated
between the various products according to the ratio of contribution of these metals to gross sales revenue. Financing and storage
costs related to inventory are expensed as incurred.
Non-current inventories primarily relate to stockpiles which are not expected to be utlised within the normal operating cycle.
Non-financial instruments (physical advances or prepayments)

The Group enters into physical advances and prepayment agreements with certain suppliers and customers. When such advances
and prepayments are primarily settled in cash or another financial asset, they are classified as financial instruments (see below).
When settlement is satisfied primarily through physical delivery or receipt of an underlying product they are classified as non-
financial instruments. Such advances and prepayments are initially recorded at the amount of the cash paid or received and are
subsequently reduced by the relevant contractual volumes of physical deliveries made.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s consolidated statement of financial position when the Group
becomes a party to the contractual provisions of the instrument.
Financial assets are classified as either financial assets at amortised cost, at fair value through other comprehensive income (FVTOCI)
or at fair value through profit or loss (FVTPL) depending upon the business model for managing the financial assets and the nature
of the contractual cash flow characteristics of the financial asset. Financial assets are initially recognised at fair value on the trade
date, including, in the case of instruments not subsequently measured at fair value through profit or loss, directly attributable
transaction costs. Trade receivables with no provisional price features and where there is no significant financing component, are
initially recognised at their transaction price. Subsequently, other investments, provisionally priced trade receivables and derivatives
are carried at fair value and trade receivables that do not contain provisional price features, loans and other receivables are carried at
amortised cost.
Financial liabilities, other than derivatives and those containing provisional price features, are initially recognised at fair value of
consideration received net of transaction costs as appropriate and subsequently carried at amortised cost. Financial liabilities that
contain provisional pricing features (accounted for as embedded derivatives) were designated in their entirety as at FVTPL.
Derivatives are carried at FVTPL.

Where financial assets and financial liabilities recognised at fair value are managed and reported to key management personnel on
the basis of its net exposure to either market risks or credit risk, fair value of that group of financial assets and financial liabilities is
measured on the basis of the net price that would be received to sell the long position and to transfer the short position for a
particular risk exposure of the specific financial asset or liability being measured. When the group of financial assets and/or financial
liabilities are not presented on a net basis in the statement of financial position, any portfolio level adjustments are allocated to the
individual instruments that make up the group on an appropriate basis.
(i) Impairment of financial assets
A loss allowance for expected credit losses is determined for all financial assets (as well as for issued loan commitments and financial
guarantee contracts), other than those at FVTPL and investments in equity instruments measured at FVTOCI, at the end of each
reporting period. The expected credit loss recognised represents a probability-weighted estimate of credit losses over the expected
life of the financial instrument.
The Group applies the simplified approach to measure the loss allowance for trade receivables classified at amortised cost, using the
lifetime expected loss provision. The expected credit losses on these financial assets are estimated using a provision matrix by
reference to past default experience and an equivalent credit rating, adjusted as appropriate for current observable data and
forward-looking information.
For all other financial assets at amortised cost, the Group recognises lifetime expected credit losses when there has been a
significant increase in credit risk since initial recognition, which is determined by:
• A review of overdue amounts;
• Comparing the risk of default at the reporting date and at the date of initial recognition; and
• An assessment of relevant historical and forward-looking quantitative and qualitative information.
For those balances that are beyond 30 days overdue it is presumed to be an indicator of a significant increase in credit risk.
If the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month expected credit loss, which comprises the expected lifetime
loss from the instrument were a default to occur within 12 months of the reporting date.
The Group considers an event of default has materialised and the financial asset is credit impaired when information developed
internally or obtained from external sources indicates that the debtor is unlikely to pay the Group without taking into account any
collateral held by the Group or if the financial asset is more than 90 days past due, unless the Group has reasonable and supportable
information to demonstrate that a more lagging default criterion is more appropriate. The Group writes off a financial asset when
there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery.
(ii) Derecognition of financial assets and financial liabilities
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks
and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises
a collateralised borrowing for the proceeds received.
The Group derecognises financial liabilities when the Group’s obligations are discharged, cancelled or have expired.
On derecognition of a financial asset/financial liability in its entirety, the difference between the carrying amount of the financial
asset/financial liability and the sum of the consideration received and receivable/paid and payable is recognised in profit and loss. On
derecognition of equity investments designated and measured at FVTOCI, the cumulative gain or loss recognised in other
comprehensive income is reclassified directly to retained earnings.
Own shares
The cost of purchases of own shares is deducted from equity. Where they are purchased, issued to employees or sold, no gain or loss
is recognised in the consolidated statement of income. Such gains and losses are recognised directly in equity. Any proceeds
received on disposal of the shares or transfers to employees are recognised in equity.
Derivatives and hedging activities

Derivative instruments, which include physical contracts to sell or purchase commodities that do not meet the own use exemption,
are initially recognised at fair value when Glencore becomes a party to the contractual provisions of the instrument and are
subsequently remeasured to fair value at the end of each reporting period. Fair values are determined using quoted market prices,
dealer price quotations or using models and other valuation techniques, the key inputs for which include current market and
contractual prices for the underlying instrument, time to expiry, yield curves, volatility of the underlying instrument and
counterparty risk.

Gains and losses on derivative instruments for which hedge accounting is not applied, other than the revenue adjustment
mechanism embedded within provisionally priced sales and mark-to-market movements on physical forward sales contracts, are
recognised in cost of goods sold.
Those derivatives qualifying and designated as hedges are either (i) a Fair Value Hedge of the change in fair value of a recognised
asset or liability or an unrecognised firm commitment, or (ii) a Cash Flow Hedge of the change in cash flows to be received or paid
relating to a recognised asset or liability or a highly probable transaction.
At the inception of the hedge and on an ongoing basis, Glencore documents whether the hedging instrument is effective in
offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging
relationship meets the qualifying hedge effectiveness requirements.
Glencore discontinues hedge accounting when the qualifying criteria for the hedged relationship is no longer met.
A change in the fair value of derivatives designated as a Fair Value Hedge is reflected together with the change in the fair value of
the hedged item in the consolidated statement of income.
A change in the fair value of derivatives designated as a Cash Flow Hedge is initially recognised in the consolidated statement of
comprehensive income and accumulated in the cash flow hedge reserve in shareholders’ equity. The deferred amount is then
released to the consolidated statement of income in the same periods during which the hedged transaction affects the
consolidated statement of income. Hedge ineffectiveness is recorded in the consolidated statement of income when it occurs.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative
gain or loss existing in equity at that time remains in shareholders’ equity and is recognised in the consolidated statement of
income when the committed or forecast transaction is ultimately recognised in the consolidated statement of income. However, if a
forecast or committed transaction is no longer expected to occur, the cumulative gain or loss that was recognised in equity is
immediately transferred to the consolidated statement of income.
A derivative may be embedded in a non-derivative “host contract” such as provisionally priced sales and purchases. Such
combinations are known as hybrid instruments. If a hybrid contract contains a host that is a financial asset within the scope of IFRS
9, then the relevant classification and measurement requirements are applied to the entire contract at the date of initial recognition.
Should the host contract not be a financial asset within the scope of IFRS 9, the embedded derivative is separated from the host
contract, if it is not closely related to the host contract, and accounted for as a standalone derivative. Where the embedded
derivative is separated, the host contract is accounted for in accordance with its relevant accounting policy, unless the entire
instrument is designated at FVTPL in accordance with IFRS 9.
Financial guarantee contracts

Financial guarantee contracts are accounted for in accordance with IFRS 9 as financial liabilities. After initial recognition, any such
contracts are subsequently measured at the higher of the amount of the provision for expected credit losses and the amount
initially recognised less any income recognised in accordance with the principles of IFRS 15.

2. Segment information
Glencore is organised and operates on a worldwide basis in two core business segments – Marketing activities and Industrial
activities, reflecting the reporting lines and structure used by Glencore’s Management to allocate resources and assess the
performance of Glencore.
The business segments’ contributions to the Group are primarily derived from a) the net margin or premium earned from physical
Marketing activities (net sale and purchase of physical commodities) and the provision of marketing and related value-add services
and b) the net margin earned from Industrial asset activities (resulting from the sale of physical commodities over the cost of
production and/or cost of sales). The marketing related operating segments have been aggregated under the Marketing reportable
segment as their economic characteristics (historic and expected long-term Adjusted EBITDA margins and the nature of the
marketing services provided) are similar. The industrial related operating segments have been aggregated under the Industrial
reportable segment as the core activities (extracting raw material and / or processing it further into saleable product, as required,
and then selling it at prevailing market prices), the exposure to long-term economic risks (price movements, technology, sovereign
and production substitution) and the longer-term average Adjusted EBITDA margins are similar. The economic and operational
characteristics of our coal operating and commercial units are not expected to change in the foreseeable future and continue to be
included within the industrial assets and marketing reporting segments respectively.
Corporate and other: consolidated statement of income amounts represent Group related income and expenses (including share of
Viterra earnings and certain variable bonus charges). Statement of financial position amounts represent Group related balances.
The financial performance of the operating segments is principally evaluated by management with reference to Adjusted
EBIT/EBITDA. Adjusted EBIT is the net result of segmental revenue (revenue including Proportionate adjustments as defined in the
Alternative performance measure section) less cost of goods sold and selling and administrative expenses plus share of income
from associates and joint ventures, dividend income and the attributable share of Adjusted EBIT of relevant material associates and
joint ventures, which are accounted for internally by means of proportionate consolidation, excluding significant items. Adjusted
EBITDA consists of Adjusted EBIT plus depreciation and amortisation, including the related Proportionate adjustments. In addition,
Volcan, while a subsidiary of the Group, is accounted for under the equity method for internal reporting and analysis due to the
relatively low economic ownership held by the Group.
The accounting policies of the operating segments are the same as those described in note 1 with the exception of relevant material
associates, the Collahuasi joint venture and Volcan. Under IAS 28 and IFRS 11, Glencore’s investments in the Antamina copper/zinc
mine (34% owned) and the Cerrejón coal mine (33% owned) are considered to be associates as they are not subject to joint control
and the Collahuasi copper mine (44% owned) is considered to be a joint venture. Associates and joint ventures are required to be
accounted for in Glencore’s financial statements under the equity method. For internal reporting and analysis, Glencore evaluates
the performance of these investments under the proportionate consolidation method, reflecting Glencore’s proportionate share of
the revenues, expenses, assets and liabilities of the investments. For internal reporting and analysis, management evaluates the
performance of Volcan under the equity method, reflecting the Group’s relatively low 23.3% economic ownership in this fully ring-
fenced listed entity, with its stand-alone, independent and separate capital structure. The balances as presented for internal
reporting purposes are reconciled to Glencore’s statutory disclosures in the following tables and/or in the Alternative performance
measures section.

2. Segment information continued
Glencore accounts for intra-segment sales and transfers where applicable as if the sales or transfers were to third parties, i.e. at arm’s
length commercial terms.
2021 Marketing Industrial Inter-segment

US$ million activities activities eliminations Total
Revenue
Metals and minerals 74,727 41,535 (29,915) 86,347
Energy products 107,037 19,269 (4,727) 121,579
Corporate and other – 6 – 6
Revenue - segmental 181,764 60,810 (34,642) 207,932
Proportionate adjustment – revenue1 – (4,181) – (4,181)
Revenue – reported measure 181,764 56,629 (34,642) 203,751
Metals and minerals

Adjusted EBITDA 2,588 12,017 – 14,605
Depreciation and amortisation (94) (3,485) – (3,579)
Proportionate adjustment – depreciation1 – (404) – (404)
Adjusted EBIT 2,494 8,128 – 10,622
Energy products
Adjusted EBITDA 1,829 5,603 – 7,432
Adjusted EBIT 1,395 3,252 – 4,647
Corporate and other
Adjusted EBITDA2 (194) (520) – (714)
Depreciation and amortisation – (60) – (60)
Adjusted EBIT (194) (580) – (774)
Total Adjusted EBITDA 4,223 17,100 – 21,323
Total depreciation and amortisation (528) (5,807) – (6,335)
Total depreciation proportionate adjustment – (493) – (493)
Total Adjusted EBIT 3,695 10,800 – 14,495
Share of associates' significant items1,3 (11)

Movement in unrealised inter-segment profit elimination adjustments4 (549)
Loss on disposals of non-current assets (607)
Other income/(expense) – net (1,947)
Impairments (1,838)
Interest expense – net (1,140)
Income tax expense (3,026)
Proportionate adjustment – net finance, impairment and income tax
(1,028)
expense1
Income for the year 4,349
1 Refer to APMs section for definition.
2 Marketing activities include $473 million of Glencore’s equity accounted share of Viterra.
3 Share of associates’ significant items comprise Glencore’s share of significant charges relating to impairments and other items booked directly by various associates.
4 Represents the required adjustment to eliminate unrealised profit or losses arising on inter-segment transactions, i.e. before ultimate sale to a third party. For Glencore, such
adjustments arise on the sale of product, in the ordinary course of business, from its Industrial to Marketing operations. Management assesses segment performance prior to any such
adjustments, as if the sales were to third parties.

2020 Marketing Industrial Inter-segment

US$ million activities activities eliminations Total
Revenue
Metals and minerals 54,847 30,303 (18,859) 66,291
Energy products 69,290 11,145 (1,944) 78,491
Revenue - segmental 124,137 41,453 (20,803) 144,787
Proportionate adjustment – revenue1 – (2,449) – (2,449)
Revenue – reported measure 124,137 39,004 (20,803) 142,338
Metals and minerals

Adjusted EBIT 1,667 3,054 – 4,721
Energy products
Adjusted EBIT 1,761 (1,365) – 396
Corporate and other
Adjusted EBITDA2 (89) (496) – (585)
Depreciation and amortisation – (116) – (116)
Adjusted EBIT (89) (612) – (701)
Total Adjusted EBITDA 3,732 7,828 – 11,560
Total depreciation and amortisation (393) (6,278) – (6,671)
Total depreciation proportionate adjustment – (473) – (473)
Total Adjusted EBIT 3,339 1,077 – 4,416
Share of associates' significant items1,3 (92)

Movement in unrealised inter-segment profit elimination adjustments4 (760)
Loss on disposals of non-current assets (36)
Other income/(expense) – net (173)
Impairments (5,947)
Interest expense – net (1,453)
Income tax expense 1,170
Proportionate adjustment – net finance, impairment and income tax
(1,071)
expense1
Loss for the year (3,946)
2 Marketing activities include $211 million of Glencore’s equity accounted share of Viterra.
3 Share of associates’ significant items comprise Glencore’s share of significant charges relating to impairments and other items booked directly by various associates, notably Trevali
($36 million) and HG Storage ($20 million).
4 Represents the required adjustment to eliminate unrealised profit or losses arising on inter-segment transactions, i.e. before ultimate sale to a third party. For Glencore, such
adjustments arise on the sale of product, in the ordinary course of business, from its Industrial to Marketing operations. Management assesses segment performance prior to any such
adjustments, as if the sales were to third parties.

2021 Marketing Industrial Corporate

US$ million activities activities and other Total
Current assets 38,080 15,134 – 53,214
Current liabilities (33,553) (7,288) – (40,841)
Allocatable current capital employed 4,527 7,846 – 12,373
Property, plant and equipment 961 42,198 – 43,159
Intangible assets 5,149 1,086 – 6,235
Investments in associates and other investments 5,565 8,349 – 13,914
Non-current advances and loans 1,943 1,584 – 3,527
Inventories 5 657 – 662
Allocatable non-current capital employed 13,623 53,874 – 67,497
Other assets1 6,799 6,799
Other liabilities2 (49,752) (49,752)
Total net assets 18,150 61,720 (42,953) 36,917
Capital expenditure
Metals and minerals 145 3,573 – 3,718
Energy products 656 819 – 1,475
Capital expenditure - segmental 801 4,423 – 5,224
Proportionate adjustment – capital expenditure3 – (516) – (516)
Capital expenditure - reported measure4 801 3,907 – 4,708
2020 Marketing Industrial Corporate

US$ million activities activities and other Total
Current assets 27,273 13,395 – 40,668
Current liabilities (23,906) (7,098) – (31,004)
Allocatable current capital employed 3,367 6,297 – 9,664
Property, plant and equipment 978 46,132 – 47,110
Intangible assets 5,188 1,279 – 6,467
Investments in associates and other investments 5,708 8,425 – 14,133
Non-current advances and loans 1,733 1,309 – 3,042
Inventories – 678 – 678
Allocatable non-current capital employed 13,607 57,823 – 71,430
Other assets1 5,902 5,902
Other liabilities2 (52,594) (52,594)
Total net assets 16,974 64,120 (46,692) 34,402
Capital expenditure
Metals and minerals 68 3,023 – 3,091
Energy products 420 1,031 – 1,451
Capital expenditure - segmental 488 4,082 – 4,570
Proportionate adjustment – capital expenditure3 – (426) – (426)
Capital expenditure – reported measure4 488 3,656 – 4,144
1 Other assets include non-current financial assets, deferred tax assets, cash and cash equivalents and assets held for sale.
2 Other liabilities include borrowings, non-current deferred income, deferred tax liabilities, non-current provisions, non-current post-retirement and other employee benefits, non-
current financial liabilities and liabilities held for sale.
4 Includes $1,006 million (2020: $575 million), comprising $648 million (2020: $415 million) in Marketing activities and $358 million (2020: $160 million) in Industrial activities, of ‘right-of-use
assets’ capitalised in accordance with IFRS 16 – Leases.

Geographical information
Revenue from third parties1
The Americas 37,930 25,762
Europe 64,284 42,682
Asia 86,576 60,360
Africa 9,991 6,701
Oceania 4,970 6,833
203,751 142,338
Non-current assets2
The Americas 16,963 17,347
Europe 11,152 11,051
Asia 4,683 4,802
Africa 12,389 13,798
Oceania 17,163 19,657
62,350 66,655
1 Revenue by geographical destination is based on the country of incorporation of the sales counterparty, however this may not necessarily be the country of the counterparty’s
ultimate parent and/or final destination of product.
2 Non-current assets are non-current assets excluding other investments, advances and loans, other financial assets and deferred tax assets. Non-current assets comprise assets in
Australia of $16,714 million (2020: $18,047 million), in Peru of $7,243 million (2020: $7,271 million) and the DRC of $6,555 million (2020: $6,849 million).
3. Revenue

Sale of commodities 201,113 139,486
Freight, storage and other services 2,638 2,852
Total 203,751 142,338
Revenue is derived principally from the sale of commodities, recognised once control of the goods has transferred from Glencore to
the buyer. Revenue from sale of commodities includes $710 million (2020: $1,217 million) of mark-to-market related adjustments on
provisionally priced sales arrangements. Revenue derived from freight, storage and other services is recognised over time as the
service is rendered. Revenue is measured based on consideration specified in the contract with the customer and is presented net
of amounts prepaid as incentives and/or rebates paid to customers, and excludes amounts collected on behalf of third parties. This is
consistent with the revenue information disclosed for each reportable segment (see note 2).
4. Loss on disposals of non-current assets

Derecognition of non-controlling interest on disposal of Mopani 26 (1,022) –
Gain on sale of Chemoil Terminals 26 110 –
Net gain on sale of other investments/operations 98 9
Gain/(loss) on disposal of property, plant and equipment 207 (45)
Total (607) (36)
Disposal of Mopani
On 31 March 2021, Glencore completed the disposal of its 90% interest in Mopani to ZCCM Investments Holdings plc. The net loss on
disposal reflects the derecognition to the statement of income of the previously recognised book value of the non-controlling
interest equity balance, which largely related to the non-controlling interests’ share of historical impairments and losses, and net
liabilities in Mopani (see note 26).
Disposal of Chemoil Terminals

On 17 December 2021, Glencore completed the disposal of its 100% interest in Chemoil Terminals LLC, which owns the Long Beach
and Carson oil products storage terminals in California, resulting in a gain of $110 million (see note 26).

5. Other income/(expense) – net

Net changes in mark-to-market valuations on investments 64 438
Release of unfavourable contract provision 22 122 –
Total other income 186 438
Net foreign exchange losses (187) (192)
Legal and regulatory proceedings (1,640) (113)
Closed site rehabilitation costs (177) (80)
Closure and severance costs – (214)
Other expenses – net (129) (12)
Total other expenses (2,133) (611)
Total other (expense)/income - net (1,947) (173)
Together with foreign exchange movements and mark-to-market movements on investments, other net income/(expense)
includes other items that, due to their nature and variable financial impact or infrequency of the events giving rise to these items,
are reported separately from operating segment results.
Net changes in mark-to-market valuations on investments

Primarily relates to movements on interests in investments (see note 11), the ARM Coal non-discretionary dividend obligation (see
note 29) and deferred consideration related to Mototolo stake sale in 2018 (see notes 12 and 14), all carried at fair value.
Legal and regulatory proceedings

Comprises various investigations (legal, expert and compliance) related costs and a provision for the on-going investigations of
$1,584 million (2020: $95 million)(see notes 23 and 32).
In 2020, a dispute with the Strategic Fuel Fund Association of South Africa was settled, resulting in an expense of $18 million.
Closed site rehabilitation costs

Comprises movements in restoration, rehabilitation and decommissioning estimates related to sites that are no longer operational
(see note 23).
Closure and severance related costs

In 2020, closure and severance related costs were primarily incurred in respect of the suspension of operations at Prodeco coal in
Colombia ($147 million), the Aguilar zinc mine in Argentina ($43 million) and the Lydenburg chrome smelter in South Africa
($24 million).
6. Interest income/(expense) – net

Bank deposits and other financial assets 110 101
Accretion on certain advances repayable with product 12 90 –
Loans to associates 8 19
Interest income 208 120
Capital market notes (733) (889)
Revolving credit facilities (55) (102)
Post-retirement employee benefits 24 (23) (26)
Deferred income 22 (115) (127)
Lease liabilities 9 (98) (96)
Restoration and rehabilitation 23 (153) (144)
Other provisions 23 (33) (45)
Bank loans (93) (98)
Less: capitalised interest 9 33 33
Other interest (78) (79)
Interest expense (1,348) (1,573)
Total interest income/(expense) - net (1,140) (1,453)

7. Impairments

Property, plant and equipment and intangible assets 9/10 (1,452) (5,508)
Investments 11 (333) (96)
Advances and loans - current and non-current 12/14 98 (343)
VAT receivable - non-current (151) –
Total impairments1 (1,838) (5,947)
1 Impairments recognised during the year are allocated to Glencore’s operating segments as follows: Marketing activities $270 million (2020: $228 million) and Industrial activities
$1,568 million (2020: $5,719 million).
As part of a regular portfolio review, Glencore carries out an assessment of whether there are indicators of cash-generating unit
(CGU) or asset impairments or whether a previously recorded impairment may no longer be required.
The recoverable amounts of the property, plant and equipment and intangible assets were measured based on fair value less costs
of disposal (FVLCD), or in certain cases value in use (VIU). In particular, market pressures relating to investments in Coal mining
operations has impacted the availability of an active market for acquiring such operations, and thus the recoverable amounts of our
Coal CGUs have been measured using a VIU approach. The FVLCD or VIU of all CGUs are determined by discounted cash flow
techniques based on the most recent approved financial budgets, underpinned and supported by the life of asset plans of the
respective operations. The valuation models use a combination of internal sources and those inputs available to a market
participant, which comprise the most recent reserve and resource estimates, relevant cost assumptions and where possible, market
forecasts of commodity price and foreign exchange rate assumptions, discounted using operation specific post-tax real discount
rates (unless otherwise indicated) ranging from 6.7% – 15.5% (2020: 6.1% – 13.5%). The valuations generally remain most sensitive to
price and a deterioration / improvement in the pricing outlook may result in additional impairments/reversals. The determination of
FVLCD used Level 3 valuation techniques for both years. In providing sensitivity analysis (and particularly on commodity price
assumptions), a 10% change, representing a typical deviation parameter common in the industry, has been provided. Where a
higher percentage is reasonably possible on an operational assumption, that has been clearly identified.
As a result of the regular impairment assessment, the following significant impairment charges were recognised:
2021
Property, plant and equipment and intangible assets
• In H1 2021, Koniambo incurred failures at its power plant and suffered a slag leak in line 2 of its metallurgical plant, resulting in a
suspension of production. Extensive investigation into the cause of the leak ensued, following which it was determined to target
lower throughput, revise certain grade and process recovery assumptions and increase the frequency of major maintenance
shut-downs, with the intention of delivering more sustainable long-term operations. These revised changes in volume and cost
assumptions and the emergence of higher discounts on non-battery application nickel relative to the LME nickel benchmark
price, resulted in a reduction of Koniambo’s estimated recoverable value (Industrial activities segment) to $550 million and an
impairment of $1,170 million. The valuation assumed a long-term realised nickel price of approximately $13,700/t and an operation
specific discount rate of 9.8%. Further revisions to the operating plans are possible. A 10% reduction in either the long-term
realised nickel price or life of mine production could result in the remaining carrying value being fully impaired. A 10% increase in
variable operating costs could result in an additional impairment of $170 million. Conversely, a 10% increase in the long-term
realised nickel price could result in an impairment reversal of $450 million.
• The balance of the impairment charges on property, plant and equipment (none of which were individually material) relate to
specific assets where utilisation is no longer required or to projects no longer progressed due to changes in production and
development plans. As a result, the full carrying amount of these assets/projects was impaired, with $282 million recognised in our
Industrial activities segment.
Investments
Primarily comprises an impairment charge of $331 million in respect of our 49% investment in HG Storage (Marketing activities
segment), to an estimated recoverable value of $189 million following a review of the carrying value against valuation benchmarks.
The valuation of this investment is not considered to be a significant source of estimation uncertainty as no change in assumptions
reasonably possible within the next 12 months would materially affect the carrying value. 2020 primarily comprised an impairment
charge in respect of our investment in Century Aluminum ($73 million).
Advances and loans – current and non-current
In 2021, impairment reversals on advances and loans of $98 million (none of which were individually material) were recognised
following an improvement in the underlying financial condition of various counterparties, with $63 million recognised in our
Marketing activities segment and $35 million recognised in our Industrial activities segment. Of the total $98 million of impairment
reversals, $67 million relate to financial assets and $31 million relate to non-financial assets.
VAT receivable – non-current
As a result of continued challenge and non-performance by certain government authorities in settling long outstanding VAT claims,
an impairment charge of $151 million was recognised in our Industrial activities segment.

7. Impairments continued
2020
Property, plant and equipment and intangible assets
• Volcan is a listed zinc / silver mining entity in Peru, in which the Group acquired a 63% controlling (23% economic) interest at the
end of 2017 (Industrial activities segment). The operations primarily comprise two cash-generating units (Yauli and Chungar) and
at the time of the acquisition, approximately one third of the value was ascribed to realising the future potential of various projects
/ resources. Due to the impact Covid-19 had on the long-term outlook of the global economy a review of the life of mine plan and
related expansion projects was carried out in Q2 2020.
It was determined that the related risk / confidence levels in deploying capital to longer-term greenfield projects and the
probability of approving development and realisation of these projects had reduced. This, along with the shift in long-term zinc
pricing, led to an impairment of $2,347 million (and related deferred tax obligations of $716 million were released) to its estimated
recoverable value of $1,503 million. The valuation assumed a long-term zinc and silver price of $2,400/t and $20.00/lb, respectively
and an operation specific discount rate of 9.2%. As at 31 December 2020, had the zinc and silver price assumptions fallen by 10%
(across the curve), a further impairment of $450 million would have been recognised. A 10% reduction in estimated annual
production over the life of mine would have resulted in an additional impairment of $540 million.
• As a result of persistent operational challenges, further technical analysis resulting in a reduced life of mine forecast, delays in key
development projects and cost increases owing to inflation, tax and other regulatory pressures, a decision was made, in Q2 2020,
to place the Mopani copper operations in Zambia (Industrial activities segment) on care and maintenance subject to government
approval. As a consequence of the operational, technical and cost factors, the Mopani operations were impaired by $1,041 million,
to their estimated recoverable value of $861 million, including tax receivables. In January 2021, an agreement was reached to sell
Mopani to ZCCM (see note 16).
• During H1 2020, pressure on the API 2 European coal market (primary price reference market for our Colombian coal operations)
increased as European economies continue to shift to a decarbonised environment, exacerbated by the significant drop in oil and
gas prices (supply and demand factors). A review of Prodeco’s operations determined that, in addition to a deteriorating market
environment, there were increasing challenges with respect to obtaining several key approvals from government agencies and
other key stakeholders. In Q2 2020, an application was therefore made to place Prodeco operations on extended care and
maintenance until these conditions improve. In Q4, the application was rejected and it was subsequently decided to relinquish
the mining licenses.
Consequently, the full carrying value of the mining operations related to such licenses ($835 million) (Industrial activities segment)
were fully impaired (property, plant and equipment - $789 million and non-current advances and loans - $46 million).
• As noted above, oil prices were significantly impacted by demand destruction from Covid-19 and the lack of timely effective
supply response from OPEC+ and the longer term outlook for oil prices also deteriorated due to updated expectations
surrounding decarbonisation. In addition, Covid-19 disrupted and restricted international mobility, which had a particularly
significant impact on our workforce arrangements in Chad, resulting in these fields being placed on care and maintenance in
March. As a result, in Q2 2020, the Chad oil operations (Industrial activities segment) were impaired by $673 million to their
estimated recoverable amount of $145 million. The valuation remained sensitive to Covid-19 related disruptions on international
mobility and a timely restart of the operations in a safe and economic manner. Should such restart have been prolonged for an
extended period of time, an additional future impairment could have resulted.
• In June 2020, it was determined to keep the Lydenburg chrome smelter (Industrial activities segment) on care and maintenance.
This decision reflected the challenging operating and market environment across the South African ferrochrome industry,
including unsustainably increasing electricity tariffs / supply interruption and other sources of real cost inflation. These macro
factors outweigh the significant efforts made over the past years to make the operation more competitive, rendering its
estimated fair value as negative. As a result, the entire carrying value of the Lydenburg smelter ($116 million) was impaired.
• The global macro-economic impact of Covid-19 on refined petroleum product demand and resulting global refinery overcapacity
had a negative effect on refining margins. As a result, Astron (Industrial activities segment) lowered its long term through-the-
cycle outlook on refining margins by approximately 30% and the Astron oil refinery was impaired by $480 million to its estimated
recoverable amount of $1,015 million, including its related downstream supply business. The operation specific discount rate used
in the valuation was a pre-tax nominal discount rate of 12.3%. The valuation remained most sensitive to refining margins and a
deterioration in these assumptions could have resulted in additional impairments. As at 31 December 2020, had the margin
assumptions fallen by $1/bbl (across the curve), a further $243 million of impairment would have been recognised. Had the
discount rate increased by 1%, a further $88 million of impairment would have been recognised.
• The balance of the impairment charges on property, plant and equipment (none of which were individually material) relate to
specific assets where utilisation is no longer required or to projects no longer progressed due to changes in production and
development plans. As a result, the full carrying amount of these assets/projects was impaired, with $62 million recognised in our
Industrial activities segment.

7. Impairments continued
Advances and loans – current and non-current

In 2020, loans of $103 million were impaired in full due to financial difficulties faced by one of the Group’s associates (Marketing
activities segment). The balance of the impairment charges on advances and loans classified as non-financial instruments (none of
which were individually material) were recognised in our Marketing activities segment ($125 million) and our Industrial activities
segment ($115 million), following the restructuring of certain loans and physical advances due to various non-performance factors.
8. Income taxes
Income taxes consist of the following:

Current income tax expense (2,923) (931)
Adjustments in respect of prior year current income tax 158 88
Deferred income tax (expense)/credit (92) 2,005
Adjustments in respect of prior year deferred income tax (169) 8
Total tax (expense)/credit reported in the statement of income (3,026) 1,170
Deferred income tax (expense)/credit recognised directly in other comprehensive income (67) 6
Total tax (expense)/credit recognised directly in other comprehensive income (67) 6
The effective Group tax rate is different from the statutory Swiss income tax rate applicable to the Company for the
following reasons:

Less: Share of income from associates and joint ventures (2,618) (444)
Parent Company’s and subsidiaries’ income/(loss) before income tax and attribution 4,757 (5,560)
Income tax (expense)/credit calculated at the Swiss income tax rate of 12% (2020: 12%) (571) 667
Tax effects of:
Different tax rates from the standard Swiss income tax rate (1,486) 1,572
Tax-exempt income ($207 million (2020: $206 million) from recurring items
and $25 million (2020: $4 million) from non-recurring items) 232 210
Items not tax deductible ($987 million (2020: $589 million) from recurring items
and $378 million (2020: $280 million) from non-recurring items) (1,365) (869)
Foreign exchange fluctuations 52 (76)
Changes in tax rates 15 (9)
Utilisation and changes in recognition of tax losses and temporary differences 101 (249)
Tax losses not recognised 15 (169)
Adjustments in respect of prior years (11) 96
Other (8) (3)
Income tax (expense)/credit (3,026) 1,170
The non-tax deductible items of $1,365 million (2020: $869 million) primarily relate to financing costs, impairments and various other
expenses.
The impact of tax-exempt income of $232 million (2020: $210 million) primarily relates to non-taxable intra-group dividends, income
that is not effectively connected to the taxable jurisdiction, and various other items.
The tax impact of foreign exchange fluctuations relates to the foreign currency movements on deferred tax balances where the
underlying tax balances are denominated in a currency different to the functional currency determined for accounting purposes.

8. Income taxes continued
Deferred taxes
Deferred taxes as at 31 December 2021 and 2020 are attributable to the items in the table below:
Recognised in Business Foreign

Recognised in other combination currency
the statement comprehensive and disposal of exchange
US$ million 2021 of income income subsidiaries movements Other 2020
Deferred tax assets1
Tax losses carried forward 1,418 (532) – – – (1) 1,951
Other 361 115 (10) – (2) (43) 301
Total 1,779 (417) (10) – (2) (44) 2,252
Deferred tax liabilities1

Depreciation and amortisation (4,156) (150) – 19 98 – (4,123)
Mark-to-market valuations (127) 7 (6) – – – (128)
Other (186) 299 (51) – (3) 39 (470)
Total (4,469) 156 (57) 19 95 39 (4,721)
Total Deferred tax - net (2,690) (261) (67) 19 93 (5) (2,469)
Recognised in Business Foreign

Recognised in other combination currency
the statement comprehensive and disposal of exchange
US$ million 2020 of income income subsidiaries movements Other 2019
Deferred tax assets1
Tax losses carried forward 1,951 741 – – (2) – 1,212
Other 301 33 3 – (13) 13 265
Total 2,252 774 3 – (15) 13 1,477
Deferred tax liabilities1

Depreciation and amortisation (4,123) 1,550 – – 75 (68) (5,680)
Mark-to-market valuations (128) (56) – – (1) – (71)
Other (470) (255) 3 – 3 122 (343)
Total (4,721) 1,239 3 – 77 54 (6,094)
Total Deferred tax - net (2,469) 2,013 6 – 62 67 (4,617)
1 Asset and liability positions in the same category reflect the impact of tax assets and liabilities arising in local tax jurisdictions that cannot be offset against tax assets and liabilities
arising in other tax jurisdictions.
Deferred tax assets are net of $287 million (2020: $579 million) of uncertain tax liabilities related to tax estimation and judgement
uncertainties with respect to various open tax disputes discussed below.
Deferred tax assets are recognised for tax losses carried forward only to the extent that realisation of the related tax benefit is
probable. As at 31 December 2021, $2,016 million (2020: $2,998 million) of deferred tax assets related to available loss carry forwards
have been brought to account, of which $1,418 million (2020: $1,951 million) are disclosed as deferred tax assets with the remaining
balance being offset against deferred tax liabilities arising in the same tax entity. This balance is primarily comprised of:
• $629 million (2020: $843 million) in entities domiciled in the DRC;
• $482 million (2020: $658 million) in entities domiciled in Switzerland; and
• $238 million (2020: $365 million) in entities domiciled in the U.S.
In evaluating whether it is probable that taxable profits will be earned in future accounting periods prior to any tax loss expiry as may
be the case, all available evidence was considered, including approved budgets, forecasts and business plans and, in certain cases,
analysis of historical operating results. These forecasts are consistent with those prepared and used internally for business planning
and impairment testing purposes. Following this evaluation, it was determined there would be sufficient taxable income generated
to realise the benefit of the deferred tax assets. With the exception of the deferred tax assets raised in respect of the Group’s DRC
operations (see below), no reasonably possible change in any of the key assumptions would result in a material reduction in forecast
headroom of tax profits so that the recognised deferred tax asset would not be realised.

The recognised losses carried forward in the DRC primarily relate to historical development, ramp-up and financing related costs at
KCC. The losses carried forward have an unlimited carry forward period, but are subject to annual utilisation limitation. Following
KCC’s successful ramp-up of its operations to near name plate capacity, deferred taxation assets have been recognised for the full
estimated available tax losses at 31 December 2021 as sufficient future taxable profits are expected to fully utilise the recognised carry
forward tax losses. In recognising these deferred tax assets, consideration was given to the range of possible outcomes to determine
the expected value of the tax losses available for future offset, including to what extent previously incurred tax losses would be
available to offset future taxable profits. Any adverse challenge by the DRC tax authorities could materially impact the currently
recognised tax losses and could result in a reversal of part or all of the recognised deferred tax assets.
The recognised losses carried forward in Switzerland primarily relate to non-recurring events. Based on the core business activities
conducted in Switzerland and taxable income forecasts going forward, sufficient taxable profits are expected to fully utilise the
recognised tax losses prior to expiration.
The recognised losses carried forward in the U.S. primarily relate to non-recurring events in 2011 and have a carry forward period of
20 years. The U.S. entities comprise our core U.S. marketing activities and based on taxable income forecasts going forward,
sufficient taxable profits are expected to fully utilise the recognised tax losses prior to expiration.
Income tax receivable / payable

Income tax receivable 364 444
Income tax payable (1,785) (927)
Net income tax payable (1,421) (483)
Income tax judgements and uncertain tax liabilities

Glencore assesses its liabilities and contingencies for all tax years open to audit based upon the latest information available. Inherent
uncertainties exist in estimates of tax contingencies due to complexities of interpretation and changes in tax laws. For those matters
where it is probable that an adjustment will be made, the Group records its reasoned estimate of these tax liabilities, including
related interest charges. These current open tax matters are spread across numerous jurisdictions and consist primarily of legacy
transfer pricing matters that have been open for a number of years and may take several more years to resolve. In recognising a
provision for these taxation exposures, consideration was given to the range of possible outcomes to determine the Group’s best
estimate of the amount to provide. As at 31 December 2021, the Group has recognised $880 million (2020: $1,189 million) of uncertain
tax liabilities related to possible adverse outcomes of these open matters, of which, $287 million (2020: $579 million) has been
recognised net of deferred tax assets, with the balance of $593 million (2020: $610 million) recognised as an income tax payable. The
change in the total uncertain tax position during the year reflects the outcome of certain settlements and court rulings.
UK Tax Audit
In previous periods, HMRC have issued formal transfer pricing, unallowable purposes and diverted profits tax assessments for the
2008-2018 tax years, amounting to $837 million. The Group has appealed against, and continues to vigorously contest, these
assessments, following, over the years, various legal opinions received and detailed analysis conducted, supporting its positions and
policies applied. Therefore, the Group has not fully provided for the amount assessed. The matter is now proceeding through the
Mutual Agreement Process, pursuant to article 24 of the Switzerland – United Kingdom Income Tax Treaty 1977. Management does
not anticipate a significant risk of material changes in estimates in this matter over the following 12 months.
DRC Tax Audit
As a matter of course, various tax authorities in the DRC issue draft assessments adjusting revenue and denying costs and other
items, along with customs related claims for alleged non-compliance or incorrect coding on certain filings. Upon receipt of such
draft assessments, the Group engages with the tax authorities to defend its filing positions. As at 31 December 2021, there are various
ongoing technical discussions, the ultimate outcome of which remains uncertain, and therefore there remains a risk that the
outcome could materially impact the recognised balances within the next financial year. It is impractical to provide further
sensitivity estimates of potential downside variances.

Available gross tax losses

Available gross tax losses carried forward and deductible temporary differences, for which no deferred tax assets have been
recognised in the consolidated financial statements, are detailed below and will expire as follows:

1 year 1,024 1,155
2 years 425 496
3 years 41 530
Thereafter 11,095 11,099
Unlimited 10,335 8,366
Total 22,920 21,646
As at 31 December 2021, unremitted earnings of $50,116 million (2020: $56,677 million) have been retained by subsidiaries for
reinvestment. No provision is made for income taxes.
9. Property, plant and equipment
2021
Mineral and Exploration
Freehold land Plant and Right-of-use petroleum and Deferred
US$ million Notes and buildings equipment assets rights evaluation mining costs Total
Gross carrying amount:
1 January 2021 6,576 44,514 2,576 30,495 1,974 17,462 103,597
Disposal of subsidiaries 26 (100) (352) (12) (132) – (101) (697)
Additions 114 2,936 1,006 75 – 566 4,697
Disposals (73) (668) (301) (50) – (171) (1,263)
Effect of foreign currency
(18) (250) (17) (211) – (47) (543)
exchange movements
Reclassification to held for sale 16 (86) (760) (207) (783) (1,320) (2,576) (5,732)
Other movements1 441 (840) 3 625 11 419 659
31 December 2021 6,854 44,580 3,048 30,019 665 15,552 100,718
Accumulated depreciation and

impairment:
1 January 2021 2,626 25,438 1,004 14,838 1,884 10,697 56,487
Disposals (9) (600) (213) (48) – (171) (1,041)
Depreciation 341 2,553 639 1,354 – 1,293 6,180
Impairment 7 16 902 3 495 – 36 1,452
(5) (118) (6) (74) – (13) (216)
exchange movements
Reclassification to held for sale 16 (31) (524) (80) (651) (1,317) (2,246) (4,849)
Other movements1 38 (30) 1 (11) 10 57 65
31 December 2021 2,940 27,361 1,343 15,777 577 9,561 57,559
Net book value 31 December 2021 3,914 17,219 1,705 14,242 88 5,991 43,159
1 Primarily consists of increases in rehabilitation costs of $634 million and reclassifications within the various property, plant and equipment headings.
Plant and equipment includes expenditure for construction in progress of $3,387 million (2020: $3,247 million). Mineral and
petroleum rights include biological assets of $24 million (2020: $19 million). Depreciation expenses included in cost of goods sold are
$6,128 million (2020: $6,385 million) and in selling and administrative expenses, $52 million (2020: $74 million).
During 2021, $33 million (2020: $33 million) of interest was capitalised. With the exception of project specific borrowings, the rate
used to determine the amount of borrowing costs eligible for capitalisation was 3% (2020: 3%).
As at 31 December 2021, with the exception of leases, no property, plant or equipment was pledged as security for borrowings (2020:
$Nil).

9. Property, plant and equipment continued
2020
Mineral and Exploration
Freehold land Plant and Right-of-use petroleum and Deferred
US$ million Notes and buildings equipment assets rights evaluation mining costs Total
Gross carrying amount:
1 January 2020 6,211 46,065 2,313 30,763 2,248 17,629 105,229
Additions 32 2,746 575 58 – 721 4,132
Disposals (28) (1,260) (265) (42) (274) (90) (1,959)
(13) (121) (2) (114) – (1) (251)
exchange movements
Reclassification to held for sale 16 (111) (1,833) – (692) – (1,002) (3,638)
Reclassification from held for sale 16 176 36 1 16 1 8 238
Other movements1 344 (798) (30) 530 (1) 430 475
31 December 2020 6,576 44,514 2,576 30,495 1,974 17,462 103,597
Accumulated depreciation and

impairment:
1 January 2020 2,017 24,646 633 11,060 2,158 9,358 49,872
Disposals (22) (1,173) (135) (29) (274) (88) (1,721)
Depreciation 375 2,680 519 1,363 – 1,522 6,459
Impairment 7 278 1,120 – 2,860 – 992 5,250
– (14) 1 (9) – 6 (16)
exchange movements
Reclassification to held for sale 16 (89) (1,405) – (461) – (938) (2,893)
Reclassification from held for sale 16 27 – – 14 1 – 42
Other movements1 75 (95) (11) 64 (1) 79 111
31 December 2020 2,626 25,438 1,004 14,838 1,884 10,697 56,487
Net book value 31 December 2020 3,950 19,076 1,572 15,657 90 6,765 47,110
1 Primarily consists of increases in rehabilitation costs of $399 million and reclassifications within the various property, plant and equipment headings.
Leases
The Group leases various assets including land and buildings and plant and equipment. As at 31 December 2021, the net book value
of recognised right-of use assets relating to land and buildings was $450 million (2020: $519 million) and plant and equipment
$1,255 million (2020: $1,053 million). The depreciation charge for the period relating to those assets was $89 million (2020: $101 million)
and $550 million (2020: $418 million), respectively.
Disclosure of amounts recognised as lease liabilities in the statement of financial position and cash outflows for leases in the year are
included within note 21 and their maturity analysis within note 27.
Amounts recognised in the statement of income are detailed below:

Depreciation on right-of-use assets (639) (519)
Interest expense on lease liabilities (98) (96)
Expense relating to short-term leases (493) (863)
Expense relating to low-value leases (3) (4)
Expense relating to variable lease payments not included in the measurement of the lease
(5) (3)
liability
Income from subleasing right-of-use assets 304 349
Total (934) (1,136)
At 31 December 2021, the Group is committed to $209 million of short-term lease payments and $56 million related to capitalised
leases not yet commenced.

10. Intangible assets
2021
Licences, Customer
Port allocation trademarks relationships
US$ million Notes Goodwill rights and software and other Total
Cost:
1 January 2021 13,293 1,312 585 693 15,883
Additions – – 4 7 11
Disposals – – (33) (3) (36)
Effect of foreign currency exchange movements – (109) (6) (12) (127)
Reclassification to held for sale 16 – – (19) (5) (24)
Other movements – – 30 (11) 19
31 December 2021 13,293 1,203 561 669 15,726
Accumulated amortisation and impairment:

1 January 2021 8,293 247 342 534 9,416
Disposals – – (22) (3) (25)
Amortisation expense1 – 89 37 29 155
Reclassification to held for sale 16 – – (16) (4) (20)
Other movements – – 2 (2) –
31 December 2021 8,293 308 341 549 9,491
Net book value 31 December 2021 5,000 895 220 120 6,235
1 Recognised in cost of goods sold.
2020
Licences, Customer
Port allocation trademarks relationships
US$ million Notes Goodwill rights and software and other Total
Cost:
1 January 2020 13,293 1,374 596 720 15,983
Additions – – 5 7 12
Disposals – – (16) (9) (25)
Other movements – – 18 16 34
31 December 2020 13,293 1,312 585 693 15,883
Accumulated amortisation and impairment:

1 January 2020 8,293 198 315 171 8,977
Disposals – – (16) (9) (25)
Amortisation expense1 – 52 44 116 212
Impairment 7 – – 5 253 258
Other movements – – (5) 10 5
31 December 2020 8,293 247 342 534 9,416
Net book value 31 December 2020 5,000 1,065 243 159 6,467
1 Recognised in cost of goods sold.

10. Intangible assets continued
Goodwill
The carrying amount of goodwill has been allocated to cash-generating units (CGUs), or groups of CGUs as follows:

Metals and minerals marketing business 3,326 3,326
Coal marketing business 1,674 1,674
Total 5,000 5,000
Metals and minerals and coal marketing businesses

Goodwill of $3,326 million and $1,674 million was recognised in connection with previous business combinations and was allocated
to the metals and minerals marketing and coal marketing CGUs respectively, based on the annual synergies expected to accrue to
the respective marketing departments as a result of increased volumes, blending opportunities and freight and logistics arbitrage
opportunities.
Port allocation rights

Port allocation rights represent contractual entitlements to export certain amounts of coal on an annual basis from Richards Bay
Coal Terminal in South Africa recognised as part of previous business combinations. The rights are amortised on a units of
productions basis.
Licences, trademarks and software

Intangibles related to internally developed technology and patents were recognised in previous business combinations and are
amortised over the estimated economic life of the technology which ranges between 3 – 20 years.
Customer relationships
Customer relationships mainly represent intangible assets related to long-standing customer relationships recognised in previous
business combinations. These intangible assets are being amortised on a straight-line basis over their estimated economic life
which ranges between 5 – 9 years.
Goodwill impairment testing

Given the nature of each CGU’s activities, information on its fair value is usually difficult to obtain unless negotiations with potential
purchasers or similar transactions are taking place. Consequently:
• The recoverable amount for each of the marketing CGUs is determined by reference to the FVLCD which utilises a price to
earnings multiple approach based on the 2022 approved financial budget which includes factors such as marketing volumes
handled and operating, interest and income tax charges, generally based on past experience. The price to earnings multiple of 12
times (2020: 15 times) is derived from observable market data for broadly comparable businesses; and
• Glencore believes that no reasonably possible changes in any of the above key assumptions would cause the recoverable amount
to fall below the carrying value of the CGU over the next 12 months. The determination of FVLCD for each of the marketing CGUs
used Level 3 valuation techniques in both years.

11. Investments in associates, joint ventures and other investments
Investments in associates and joint ventures

1 January 12,400 12,984
Additions 53 102
Disposals (2) (14)
Share of income from associates and joint ventures 2,618 444
Share of other comprehensive loss from associates and joint ventures (58) (14)
Impairments 7 (333) (96)
Dividends received (2,375) (1,015)
Reclassification to held for sale 16 (11) –
Other movements 2 9
31 December 12,294 12,400
Of which:
Investments in associates 5,567 6,038
Investments in joint ventures 6,727 6,362
As at 31 December 2021, the carrying value of our listed associates is $406 million (2020: $508 million), mainly comprising Century
Aluminum and PT CITA, which have carrying values of $165 million (2020: $261 million) and $177 million (2020: $170 million),
respectively. The fair value of our listed associates, using published price quotations (a Level 1 fair value measurement) is $967 million
(2020: $737 million). As at 31 December 2021, Glencore’s investment in Century Aluminum was pledged under a loan facility, with
proceeds received and recognised in current borrowings of $120 million (2020: $100 million)(see note 21).

11. Investments in associates, joint ventures and other investments continued
2021 Details of material associates and joint ventures

Summarised financial information in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’
and joint ventures’ relevant figures, is set out below.
Total
material
Total associates
Total material and
material joint joint
US$ million Cerrejón Antamina associates Collahuasi Viterra ventures ventures
Non-current assets 2,033 5,288 7,321 5,398 6,118 11,516 18,837
Current assets 1,030 1,607 2,637 1,913 13,399 15,312 17,949
Non-current liabilities (690) (1,875) (2,565) (1,758) (5,031) (6,789) (9,354)
Current liabilities (509) (973) (1,482) (994) (9,682) (10,676) (12,158)
The above assets and liabilities include the following:
Cash and cash equivalents 511 134 645 354 472 826 1,471
Current financial liabilities1 (27) (45) (72) (21) (4,516) (4,537) (4,609)
Non-current financial liabilities1 (14) (847) (861) (402) (4,409) (4,811) (5,672)
Net assets 31 December 2021 1,864 4,047 5,911 4,559 4,804 9,363 15,274
Glencore's ownership interest 33.3% 33.8% 44.0% 49.9%
Acquisition fair value and other adjustments (54) 1,756 1,702 1,059 1,265 2,324 4,026
Carrying value 567 3,124 3,691 3,065 3,662 6,727 10,418
1 Financial liabilities exclude trade, other payables and provisions.
Summarised profit and loss in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’ and
joint ventures’ relevant figures for the year ended 31 December 2021 including group adjustments relating to alignment of
accounting policies or fair value adjustments, is set out below.
Total
material
Total associates
Total material and
Revenue 2,317 5,307 7,624 5,906 39,704 45,610 53,234
Income for the year 636 1,992 2,628 2,777 947 3,724 6,352
Other comprehensive (loss)/income – – – (13) (94) (107) (107)
Total comprehensive income 636 1,992 2,628 2,764 853 3,617 6,245
Glencore's share of dividends paid 240 749 989 1,144 150 1,294 2,283
The above income for the year includes the following:

Depreciation and amortisation (267) (919) (1,186) (653) (776) (1,429) (2,615)
Interest income1 – – – 66 55 121 121
Interest expense2 (18) (38) (56) (13) (229) (242) (298)
Income tax expense (435) (1,241) (1,676) (1,470) (282) (1,752) (3,428)
1 Includes foreign exchange gains and other income of $114 million.
2 Includes foreign exchange losses and other expenses of $58 million.

2020 Details of material associates and joint ventures

Summarised financial information in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’
and joint ventures’ relevant figures, is set out below.
Total
material
Total associates
Total material and
Non-current assets 2,302 4,755 7,057 5,141 5,846 10,987 18,044
Current assets 455 1,584 2,039 1,407 10,529 11,936 13,975
Non-current liabilities (707) (1,538) (2,245) (1,380) (3,057) (4,437) (6,682)
Current liabilities (102) (698) (800) (845) (9,041) (9,886) (10,686)
Cash and cash equivalents 99 91 190 99 327 426 616
Current financial liabilities1 (20) (53) (73) (288) (4,351) (4,639) (4,712)
Non-current financial liabilities1 (15) (476) (491) (100) (2,547) (2,647) (3,138)
Net assets 31 December 2020 1,948 4,103 6,051 4,323 4,277 8,600 14,651
Glencore's ownership interest 33.3% 33.8% 44.0% 49.9%
Acquisition fair value and other adjustments (54) 1,813 1,759 1,089 1,237 2,326 4,085
Carrying value 595 3,200 3,795 2,991 3,371 6,362 10,157
Summarised profit and loss in respect of Glencore’s associates and joint ventures, reflecting 100% of the underlying associates’ and
joint ventures’ relevant figures for the year ended 31 December 2020, including group adjustments relating to alignment of
accounting policies or fair value adjustments, is set out below.
Total
material
Total associates
Total material and
Revenue 626 3,126 3,752 3,936 28,342 32,278 36,030
(Loss)/income for the year (1,613) 794 (819) 1,414 414 1,828 1,009
Other comprehensive loss – – – (19) 4 (15) (15)
Total comprehensive (loss)/income (1,613) 794 (819) 1,395 418 1,813 994
Glencore's share of dividends paid 11 363 374 598 – 598 972
The above (loss)/income for the year includes the following:

Depreciation and amortisation (329) (843) (1,172) (659) (548) (1,207) (2,379)
Interest income1 – – – 2 13 15 15
Interest expense2 (21) (51) (72) (71) (176) (247) (319)
Impairment, net of tax3 (1,969) – (1,969) – – – (1,969)
Income tax credit/(expense) 692 (553) 139 (815) (143) (958) (819)
1 Includes foreign exchange gains and other income of $4 million.
2 Includes foreign exchange losses of $87 million.
3 Glencore’s attributable share of impairment relating to Cerrejón amounts to $445 million, net of taxes of $211 million.

Aggregate information of associates that are not individually material:

The Group's share of income/(loss) 38 (120)
The Group's share of other comprehensive loss (5) (8)
The Group's share of total comprehensive income/(loss) 33 (128)
Aggregate carrying value of the Group's interests 1,876 2,243
The amount of corporate guarantees in favour of associates and joint ventures as at 31 December 2021 was $611 million (2020:
$560 million). No amounts have been claimed or provided as at 31 December 2021. Glencore’s share of joint ventures’ capital
commitments amounts to $213 million (2020: $105 million).
Refer to note 36 for further details of the Group’s principal associates and joint ventures.
Other investments
Fair value through other comprehensive income1
EN+ GROUP PLC 789 701
PAO NK Russneft2 50 309
Yancoal 160 164
OSJC Rosneft 485 357
Other 136 116
1,620 1,647
Fair value through profit and loss
Century Aluminum Company cash-settled equity swaps3 – 49
Champion Iron Ore Limited share warrants3 – 37
– 86
Total 1,620 1,733
1 Fair value through other comprehensive income includes net acquisitions of $25 million (2020: $12 million net disposals) for the period.
2 In December 2021, Glencore agreed to the sale of its interest in PAO NK Russneft. Completion of the sale is conditional on receipt of certain regulatory approvals and is expected to
occur in H1 2022. Glencore’s investment in PAO NK Russneft is pledged under a loan facility issued to OAO NK Russneft.
3 During the year, the swaps settled and the warrants were exercised.
During the year, dividend income from equity investments designated as at fair value through other comprehensive income
amounted to $23 million (2020: $32 million).

12. Advances and loans

Financial assets at amortised cost
Loans to associates 128 246
Other non-current receivables and loans 519 600
Rehabilitation trust fund 148 148
Financial assets at fair value through profit and loss
Other non-current receivables and loans 28 28 102
Deferred consideration 28 135 302
Non-financial instruments
Pension surpluses 24 125 40
Advances repayable with product1 1,673 1,334
Land rights prepayment 150 150
Other tax and related non-current receivables2 621 120
Total 3,527 3,042
1 Net of $1,074 million (2020: $1,534 million) provided by various banks, the repayment terms of which are contingent upon and connected to the future delivery of contractual
production.
2 As a result of continued challenge and non-performance by certain government authorities in settling long outstanding VAT claims, certain VAT receivable balances amounting to
$646 million were reclassified to non-current during the period (see note 7).

Loans to associates
Loans to associates generally bear interest at applicable floating market rates plus a premium.
Other non-current receivables and loans
Other non-current receivables and loans comprise the following:

Secured financing arrangements 511 585
Other 8 15
Total 519 600
Various financing facilities, generally marketing related and secured against certain assets and/or payable from the future sale of
production of the counterparty. The non-current receivables and loans are interest-bearing and on average are to be repaid over a
three-year period.
Rehabilitation trust fund
Glencore makes contributions to controlled funds established to meet the costs of its restoration and rehabilitation liabilities,
primarily in South Africa. These funds are not available for the general purposes of the Group, and there is no present obligation to
make any further contributions.
Loss allowances of financial assets at amortised cost
The Group determines the expected credit loss of loans to associates and other non-current receivables and loans (at amortised
cost) based on different scenarios of probability of default and expected loss applicable to each of the material underlying balances.
Expected credit losses for these assets are measured as either 12-month expected credit losses, taking into account prior experience
regarding probability of default adjusted for forward looking information, or as lifetime expected credit losses (when there is
significant increase in credit risk or the asset is credit-impaired). The movement in loss allowance for financial assets classified at
amortised cost is detailed below:

12. Advances and loans continued
Other non- Other non-

Loans to current Loans to current
associates receivables and associates receivables and
US$ million loans 2021 loans 2020
Gross carrying value 31 December 190 773 963 308 940 1,248
Of which:
12-month expected credit losses 31 529 560 156 626 782
Lifetime expected credit losses (credit
impaired) 159 244 403 152 314 466
Loss allowances
1 January 62 340 402 31 355 386
Released during the period1 – (28) (28) – – –
Charged during the period1 – 15 15 31 33 64
Utilised during the period – (48) (48) – (48) (48)
Reclassifications – (25) (25) – – –
31 December 62 254 316 62 340 402
Of which:
12-month expected credit losses – 14 14 – 37 37
impaired) 62 240 302 62 303 365
Net carrying value 31 December 128 519 647 246 600 846
1 $22 million (2020: $45 million impairment) recognised as a reversal of impairment (see note 7) and the balancing charge of $9 million (2020: $19 million) recognised in cost of goods
sold.

Other non-current receivables and loans
During 2021, fair value movements of positive $35 million were recognised (2020: negative $18 million)(see note 7). Fair value was
determined using a Level 3 discounted cash flow model technique, with the key unobservable inputs being a discount rate specific
to the operation of 12% and a repayment profile dependent upon the underlying business plans and forecasts over the next 6 years.
The valuation is sensitive to the timing of the underlying cash flows and could result in a $5 million reduction of fair value if the
repayment schedule is extended by an additional 4 years.
Deferred consideration
In 2021, fair value movements of net positive $39 million (2020: $379 million) were recognised (see note 5).
Advances repayable with product
Counterparty
Mopani transaction debt 881 –
Société Nationale d'Electricité (SNEL) power advances 304 312
Chad State National Oil Company 293 347
Société Nationale des Pétroles du Congo 129 156
Other1 66 519
Total 1,673 1,334
1 Comprises no individually material items.
Mopani
On 31 March 2021, Glencore completed the disposal of its 90% interest in Mopani to ZCCM Investments Holdings plc, the holder of
the remaining 10% interest in Mopani, in exchange for $1 and the rights to offtake copper and other metals from Mopani until $1.5
billion of existing intercompany debt (the “transaction debt”) has been repaid to Glencore. The transaction debt attracts interest at a
floating benchmark rate plus 3%. The repayment of the transaction debt is in substance based on Glencore receiving physical
product deliveries from Mopani through its offtake rights and retaining defined percentages of Mopani’s annual gross revenues
until the transaction debt is fully repaid. On the date of completion, the fair value of the transaction debt was determined to be $838
million (see note 26). As at 31 December 2021, $904 million of debt is outstanding, of which $881 million is due after 12 months and is
presented above and $23 million is due within 12 months and is included in Accounts receivable.

12. Advances and loans continued
SNEL power advances

In early 2012, a joint agreement with Société Nationale d’Électricité (SNEL), the Democratic Republic of the Congo’s (DRC) national
electricity utility, was signed whereby Glencore’s operations would contribute $375 million to a major electricity infrastructure
refurbishment programme, including transmission and distribution systems. This facilitated a progressive increase in power
availability to 450 megawatts by the end of Q1 2020. Funding commenced in the second quarter of 2012 and completed Q4 2021.
The loans are being repaid via discounts on electricity purchases.
Chad State National Oil Company
Glencore has provided a net $321 million (2020: $359 million) to the Chad State National Oil Company (SHT) to be repaid through
future oil deliveries over ten years. As at 31 December 2021, the advance is net of $604 million (2020: $714 million) provided by a
syndicate of lenders, the repayment terms of which are contingent upon and connected to the receipt of oil due from SHT under
the prepayment. Of the net amount advanced, $293 million (2020: $347 million) is receivable after 12 months and is presented within
Other non-current receivables and loans and $31 million (2020: $12 million) is due within 12 months and included within Accounts
receivable.
Société Nationale des Pétroles du Congo (SNPC)
Glencore has provided a net $156 million (2020: $156 million) to SNPC repayable through future oil deliveries over five years. As at 31
December 2021, the advance is net of $498 million (2020: $498 million) provided by the lenders, the repayment terms of which are
contingent upon and connected to the future receipt of oil contractually due from SNPC. Of the net amount advanced, $129 million
(2020: $156 million) is due after 12 months and is presented within Other long-term receivables and loans and $27 million (2020: $Nil)
is due within 12 months and included within Accounts receivable.
Land rights prepayment
In 2019, Kamoto Copper Company (“KCC”) entered into an agreement with La Générale des Carrières et des Mines (“Gécamines”),
Glencore’s 25% joint venture partner in KCC, to acquire from Gécamines a comprehensive land package covering areas adjacent to
KCC’s existing mining concessions for $250 million. The package includes multiple blocks for construction of a new long-term
tailings facility and the possible exploitation of additional resources that will enhance KCC’s ability to more efficiently operate its
mines, facilities and other key infrastructure requirements.
In addition to the above consideration, the agreement includes the following key additional undertakings:
• obligations on KCC to remove tailings (estimated at circa 15m dmt), currently in a sub-section of these areas, to another suitable
location;
• contingent obligations to pay “Pas de Porte” payments to Gécamines if KCC declares a JORC compliant reserve or otherwise
elects to mine any resources in the Resource Areas; and
• a new royalty to Gécamines of 2.5% of net sales from the acquired land areas if KCC elects to mine any resources in such areas.
In August 2020, KCC advanced $150 million to Gécamines as an agreed prepayment of the consideration due. If the closing
conditions as prescribed in the agreement are not fulfilled, Glencore has the right to accrue interest on the prepaid amount,
terminate the agreement and, if funds are not returned, offset against future amounts owing to Gécamines. The balance of the
consideration is due 5 days after the respective closing conditions of each area to be transferred are satisfied.
13. Inventories
Current inventory
Inventories of $28,434 million (2020: $22,852 million) comprise $16,073 million (2020: $12,260 million) of inventories carried at fair value
less costs of disposal and $12,361 million (2020: $10,592 million) valued at the lower of cost or net realisable value. The amount of
inventories and related ancillary costs recognised as an expense during the period was $177,704 million (2020: $124,037 million).
Fair value of inventories is a Level 2 fair value measurement (see note 29) using observable market prices obtained from exchanges,
traded reference indices or market survey services adjusted for relevant location and quality differentials. There are no significant
unobservable inputs in the fair value measurement of such inventories.
Glencore has a number of dedicated financing facilities, which finance a portion of its inventories. In each case, the inventory has not
been derecognised as the Group has not transferred control. The proceeds received are recognised as current borrowings (see note
21). As at 31 December 2021, the total amount of inventory pledged under such facilities was $17 million (2020: $804 million). The
proceeds received and recognised as current borrowings were $2 million (2020: $679 million) and $80 million (2020: $80 million) as
non-current borrowings.
Non-current inventory
$662 million (2020: $678 million) of inventories valued at lower of cost or net realisable value are not expected to be utilised or sold
within the normal operating cycle and are therefore classified as non-current inventory.

14. Accounts receivable

Trade receivables 4,943 3,360
Margin calls paid 5,914 3,692
Receivables from associates 413 288
Other receivables1 402 356
Trade receivables containing provisional pricing features 28 5,267 4,459
Finance lease receivable 28 2 9
Other receivables 28 79 –
Deferred consideration 28 175 130
Advances repayable with product2 876 922
Other tax and related receivables 1,422 1,938
Total 19,493 15,154
1 Includes current portion of non-current loans receivable of $296 million (2020: $241 million).
2 Includes advances, net of $409 million (2020: $298 million) provided by banks, the repayment terms of which are contingent upon and connected to the future delivery of contractual
production over the next 12 months.
The average credit period on sales of goods is 16 days (2020: 24 days). The carrying value of trade receivables approximates fair value.
The Group applies a simplified approach to measure the loss allowance for trade receivables classified at amortised cost, using the
lifetime expected loss provision. The expected credit loss on trade receivables is estimated using a provision matrix by reference to
past default experience and credit rating, adjusted as appropriate for current observable data. Expected credit loss provisions are
recognised in cost of goods sold and during the period, $11 million (2020: credit of $3 million) of such losses were recognised. The
following table details the risk profile of trade receivables based on the Group’s provision matrix.
US$ million Trade receivables – days past due

As at 31 December 2021 Not past due <30 31 – 60 61 – 90 >90 Total
Gross carrying amount 4,034 287 157 152 337 4,967
Expected credit loss rate 0.27% 0.55% 0.82% 1.10% 2.33%
Lifetime expected credit loss (11) (2) (1) (2) (8) (24)
Total 4,023 285 156 150 329 4,943
US$ million Trade receivables – days past due

As at 31 December 2020 Not past due <30 31 – 60 61 – 90 >90 Total
Gross carrying amount 2,941 224 44 21 143 3,373
Expected credit loss rate 0.27% 0.54% 0.82% 1.09% 2.31%
Lifetime expected credit loss (8) (1) (1) – (3) (13)
Total 2,933 223 43 21 140 3,360
The Group determines the expected credit loss of receivables from associates and other receivables (at amortised cost) based on
different scenarios of probability of default and expected loss applicable to each of the material underlying balances. Expected credit
losses for these assets are measured as either 12-month expected credit losses, taking into account prior experience regarding
probability of default adjusted for forward looking information, or as lifetime expected credit losses (when there is significant
increase in credit risk or the asset is credit-impaired). The movement in allowance for credit loss relating to receivables from
associates and other receivables is detailed below:

14. Accounts receivable continued
Receivables Other Receivables Other

US$ million from associates receivables 2021 from associates receivables 2020
Gross carrying value 31 December 529 531 1,060 410 488 898
Of which:
12-Month expected credit losses 391 387 778 271 357 628
impaired) 138 144 282 139 131 270
Allowance for credit loss

1 January 122 132 254 10 79 89
Released during the period1 – (10) (10) (1) (3) (4)
Charged during the period1 3 30 33 103 62 165
Utilised during the period – (48) (48) – (6) (6)
Effect of foreign currency exchange
movements (9) – (9) 10 – 10
Reclassifications – 25 25 – – –
31 December 116 129 245 122 132 254
Of which:
12-Month expected credit losses – 23 23 – 51 51
impaired) 116 106 222 122 81 203
Net carrying value 31 December 413 402 815 288 356 644
1 $7 million (2020: $123 million impairment) recognised as a reversal of impairment (see note 7) and the balancing $30 million (2020: $38 million) net charge recognised in cost of goods
sold
Glencore has a number of dedicated financing facilities, which finance a portion of its receivables. The receivables have not been
derecognised, as the Group retains the principal risks and rewards of ownership. The proceeds received are recognised as current
borrowings (see note 21). As at 31 December 2021, the total amount of trade receivables pledged was $Nil (2020: $693 million) and
proceeds received and classified as current borrowings amounted to $Nil (2020: $567 million).
15. Cash and cash equivalents

Bank and cash on hand 2,403 1,387
Deposits and treasury bills 838 111
Total 3,241 1,498
Cash and cash equivalents comprise cash held at bank, cash in hand and short-term bank deposits with an original maturity of
three months or less. The carrying amount of these assets approximates their fair value.
As at 31 December 2021, $547 million (2020: $82 million) was restricted, including $477 million (2020: $Nil) held in on-shore accounts
in our DRC operations, currently available to effect payment to on-shore counterparts only.

16. Assets and liabilities held for sale
The carrying value of the assets and liabilities classified as held for sale are detailed below:
2021 2020
Total
US$ million Ernest Henry Bolivia Access World E&P Chad Total Mopani
Non-current assets
Property, plant and equipment 311 161 171 240 883 745
Intangible assets – 2 2 – 4 –
Investments – – 11 – 11 –
Advances and loans – – 10 – 10 5
Deferred tax assets 30 10 4 – 44 –
341 173 198 240 952 750
Current assets
Inventories 16 36 – 22 74 187
Accounts receivable 26 82 93 14 215 106
Income tax receivable – – 1 – 1 –
Prepaid expenses 2 – 10 – 12 3
Cash and cash equivalents 1 21 45 – 67 –
45 139 149 36 369 296
Total assets held for sale 386 312 347 276 1,321 1,046
Borrowings – (3) (111) – (114) –
Deferred income (138) – – – (138) –
Deferred tax liabilities – (4) (1) (4) (9) –
Provisions (74) (29) (1) (85) (189) (54)
Post-retirement and other employee benefits (1) (17) (1) – (19) (10)
(213) (53) (114) (89) (469) (64)
Current liabilities
Borrowings – (7) (17) – (24) (26)
Accounts payable (32) (55) (95) (6) (188) (58)
Deferred income (53) – – – (53) –
Provisions (1) (35) (3) – (39) (24)
Income tax payable – (14) (1) – (15) (13)
(86) (111) (116) (6) (319) (121)
Total liabilities held for sale (299) (164) (230) (95) (788) (185)
Non-controlling interest – – (2) – (2) –
Total net assets held for sale 87 148 115 181 531 861
Ernest Henry
In November 2021, Glencore agreed to dispose of its 100% interest in Ernest Henry Mining Pty Ltd, a copper-gold mine in
Queensland, Australia for AUD $1 billion (c.US$720 million), comprising AUD $800 million on closing and the balance (AUD $200
million) due 12 months post closing. The transaction closed in January 2022 and a gain on disposal of some $630 million is expected.
Bolivia
In October 2021, Glencore agreed to sell its Bolivian zinc assets (Sinchi Wayra and Illapa), to Santacruz Silver Mining Ltd, for
approximately $110 million and a 1.5% NSR royalty over the life of the mines. $20 million is due on completion with the balance (c.$90
million) due over the following 4 years. The transaction is expected to close in H1 2022.
Access World
At 31 December 2021, Glencore was in advanced negotiations with a prospective buyer to dispose of its 100% interest in the Access
World Group, a global metals and softs commodities storage and logistics group, for $180 million. The share purchase agreement
was subsequently signed on 31 January 2022, completion of the sale is conditional on receipt of certain regulatory approvals, which is
expected to occur in 2022.
E&P Chad
In August 2021, Glencore agreed to dispose 100% of its Chad upstream oil operations to Perenco S.A.. Completion of the sale is
conditional on receipt of certain regulatory approvals, which is expected to occur in H1 2022.

16. Assets and liabilities held for sale continued
Mopani
In March 2021, Glencore completed the sale of its controlling interest in Mopani to the minority shareholder, ZCCM Investments
Holding plc (ZCCM) for $1, leaving $1.5 billion of Glencore loans outstanding, where the pace and size of repayment instalments is
linked to Mopani’s future production and copper prices (see notes 12 and 26).
17. Share capital and reserves
Number
of ordinary Share
shares Share capital premium
(thousand) (US$ million) (US$ million)
Authorised:
31 December 2021 and 2020 Ordinary shares with a par value of $0.01 each 50,000,000
Issued and fully paid up:
1 January 2020 and 31 December 2020 14,586,200 146 45,794
Distributions paid (see note 19) – – (2,115)
31 December 2021 14,586,200 146 43,679
Treasury Shares Trust Shares Total

Number Own Number Own Number Own
of shares shares of shares shares of shares shares
(thousand) (US$ million) (thousand) (US$ million) (thousand) (US$ million)
Own shares:
1 January 2020 1,261,887 (4,801) 129,992 (636) 1,391,879 (5,437)
Own shares disposed during the year – – (26,991) 133 (26,991) 133
31 December 2020 1,261,887 (4,801) 103,001 (503) 1,364,888 (5,304)
1 January 2021 1,261,887 (4,801) 103,001 (503) 1,364,888 (5,304)
Own shares purchased during the year 128,501 (616) 32,000 (130) 160,501 (746)
Own shares disposed during the year – – (35,788) 173 (35,788) 173
31 December 2021 1,390,388 (5,417) 99,213 (460) 1,489,601 (5,877)
Own shares
Own shares comprise shares acquired under the Company’s share buy-back programmes (“Treasury Shares”) and shares of
Glencore plc held by Group employee benefit trusts (“the Trusts”) to satisfy the potential future settlement of the Group’s employee
stock plans (“Trust Shares”).
The Trusts also coordinate the funding and manage the delivery of Trust Shares and free share awards under certain of Glencore’s
share plans. The Trust Shares have been acquired by either stock market purchases or share issues from the Company. The Trusts
may hold an aggregate of Trust Shares up to 5% of the issued share capital of the Company at any one time and are permitted to sell
them. The Trusts have waived the right to receive distributions from the Trust Shares that they hold. Costs relating to the
administration of the Trusts are expensed in the period in which they are incurred.
In August 2021, Glencore announced a $650 million share buy-back programme to be completed by February 2022, effected in
accordance with the terms of the authority granted by shareholders at the 2021 Annual General Meeting. As at 31 December 2021,
$616 million of shares have been purchased.
As at 31 December 2021: 1,489,601,292 shares (2020: 1,364,888,033 shares), including 1,390,388,731 Treasury Shares, equivalent to 10.21%
(2020: 9.36%) of the issued share capital were held at a cost of $5,877 million (2020: $5,304 million) and market value of $7,559 million
(2020: $4,341 million).

17. Share capital and reserves continued
Other reserves
Foreign
currency Net Net ownership
translation Cash flow unrealised changes in
US$ million reserve hedge reserve gain/(loss) subsidiaries Total
1 January 2021 (2,832) (147) (266) (2,603) (5,848)
Exchange loss on translation of foreign operations (66) – – – (66)
Gain on cash flow hedges, net of tax – 23 – – 23
Loss on equity investments accounted for at fair value
– – (52) – (52)
through other comprehensive income, net of tax
Change in ownership interest in subsidiaries (see note 34) – – – (6) (6)
Loss due to changes in credit risk on financial liabilities
– – (7) – (7)
accounted for at fair value through profit and loss
Reclassifications – – 25 – 25
31 December 2021 (2,898) (124) (300) (2,609) (5,931)
1 January 2020 (2,665) (97) 364 (2,573) (4,971)
Exchange gain on translation of foreign operations (167) – – – (167)
Loss on cash flow hedges, net of tax – (50) – – (50)
Loss on equity investments accounted for at fair value
– – (631) – (631)
through other comprehensive income, net of tax
Change in ownership interest in subsidiaries (see note 34) – – – (31) (31)
Gain due to changes in credit risk on financial liabilities
– – 19 – 19
accounted for at fair value through profit and loss
Reclassifications – – (18) 1 (17)
31 December 2020 (2,832) (147) (266) (2,603) (5,848)
The translation adjustment reserve is used to capture the cumulative impact of foreign currency translation adjustments arising
from the Group’s non-USD denominated functional currency subsidiaries.
The cash flow hedge reserve is used to accumulate the gains and losses from the effective portion of hedging instruments
contained within hedge relationships until the hedged item impacts profit or loss. Cost of hedging is recorded within the cash flow
hedge reserve due to its immaterial amount.
The net unrealised gain/loss reserve is used to accumulate the gains and losses associated with the remeasurement of the Group’s
investments carried at FVTOCI and changes in credit risk on financial liabilities measured at FVTPL.
The net ownership changes in subsidiaries reserve is used to capture equity movements arising from changes in the Group’s
ownership in its subsidiaries.

18. Earnings per share

Income/(loss) attributable to equity holders of the Parent for basic earnings per share 4,974 (1,903)
Weighted average number of shares for the purposes of basic earnings per share (thousand) 13,204,101 13,216,886
Effect of dilution:
Equity-settled share-based payments (thousand)1 132,503 139,989
Weighted average number of shares for the purposes of diluted earnings per share (thousand) 13,336,604 13,216,886
Basic earnings/(loss) per share (US$) 0.38 (0.14)

Diluted earnings/(loss) per share (US$) 0.37 (0.14)
Headline earnings:
Headline earnings is a Johannesburg Stock Exchange (JSE) defined performance measure. The calculation of basic and diluted
earnings per share, based on headline earnings as determined by the requirements of the Circular 1/2021 as issued by the
South African Institute of Chartered Accountants (SAICA), is reconciled using the following data:

Income/(loss) attributable to equity holders of the Parent for basic earnings per share 4,974 (1,903)
Net loss on disposals2 652 36
Net credit/(expense) on disposals – tax 75 (11)
Impairments3 1,906 6,693
Impairments – non-controlling interest (689) (1,596)
Impairments – tax (34) (1,214)
Headline and diluted earnings for the year 6,884 2,005
Headline earnings per share (US$) 0.52 0.15

Diluted headline earnings per share (US$) 0.52 0.15
1 These equity-settled share-based payments could potentially dilute basic earnings per share in the future, but did not impact diluted loss per share in 2020 because they were anti-
dilutive.
2 See note 4.
3 Comprises impairments of property, plant and equipment, investments, advances and loans, VAT receivable (see note 7) and Glencore’s share of impairments booked directly by
associates (see note 2).
19. Distributions

Paid during the year:
First tranche distribution - $0.06 per ordinary share (2020: $Nil) 794 –
Second tranche and additional distribution - $0.10 per ordinary share (2020: $Nil) 1,321 –
Total 2,115 –
The proposed distribution in respect of the year ended 31 December 2021 of $0.26 per ordinary share amounting to some $3.4 billion
is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial
statements. These distributions declared are expected to be paid equally ($0.13 each) in May 2022 and September 2022.
In 2020, it was determined that no distribution would be made.

20. Share-based payments
Number Number
Number of of awards of awards Expense Expense
awards Fair value at outstanding outstanding recognised recognised
granted grant date 2021 2020 2021 2020
US$ million (thousands) (US$ million) (thousands) (thousands) (US$ million) (US$ million)
Deferred awards
2018 Series 12,891 65 3,535 4,316 – –
2019 Series 10,791 37 667 7,914 – –
2020 Series 45,798 85 31,538 45,798 (2) 85
2021 Series 20,565 91 20,565 – 90 –
90,045 56,305 58,028 88 85
Performance share awards

2015 Series 79,787 109 – 9,509 2 –
2016 Series 23,984 84 – – – 3
2017 Series 19,750 95 400 5,965 1 10
2018 Series 28,499 104 9,823 18,396 12 29
2019 Series 29,705 90 18,504 28,330 23 55
2020 Series 33,583 104 31,466 19,761 55 –
2021 Series 16,005 76 16,005 – 8 –
231,313 76,198 81,961 101 97
Total 321,358 132,503 139,989 189 182
Between 2011-2021 deferred awards were made under the Company’s Deferred Bonus Plan and performance share awards were
made under the Company’s Performance Share Plan. In May 2021 the Company introduced a single Incentive Plan which replaced
both of these plans and under which both deferred awards and performance share awards continue to be made.
Deferred awards
Under a deferred award the payment of a portion of a participant’s annual bonus is deferred for a period of one to seven years as an
award of either ordinary shares (a ‘‘Bonus Share Award’’) or cash. Awards vest over a specified period, subject to continued
employment and forfeiture for malus events. The Bonus Share Awards may be satisfied, at Glencore’s option, in shares by the issue
of new ordinary shares, by the transfer of ordinary shares held in treasury or by the transfer of ordinary shares purchased in the
market or in cash, with a value equal to the market value of the award at settlement, including distributions paid between award
and settling. Glencore currently intends to settle all Bonus Share Awards in shares. The associated expense is recorded in the
statement of income/loss as part of the expense for performance bonuses. The fair value at grant date is determined as the monthly
volume-weighted average share price (VWAP) of Glencore plc prior to the respective award date.
Performance Share awards

Performance share awards vest in annual tranches over a specified period, subject to continued employment and forfeiture for
malus events. At grant date, each award is equivalent to one ordinary share of Glencore. Awards vest in one, two and three tranches
on 31 January or 30 June of the years following the year of grant, as may be the case. The fair value of the awards is determined by
reference to the monthly volume-weighted average share price (VWAP) of Glencore plc prior to the respective award date. The
awards may be satisfied, at Glencore’s option, in shares by the issue of new ordinary shares, by the transfer of ordinary shares held in
treasury or by the transfer of ordinary shares purchased in the market or in cash, with a value equal to the market value of the award
at vesting, including distributions paid between award and vesting. Glencore currently intends to settle these awards in shares. The
fair value at grant date is determined with respect to the monthly volume-weighted average share price (VWAP) of Glencore plc
prior to the respective award date.
Share-based awards assumed in previous business combinations

Weighted
Total options average
outstanding exercise
(thousands) price (GBP)
1 January 2021 71,667 4.25
Lapsed (27,130) 4.80
Exercised – –
31 December 2021 44,537 3.91
1 January 2020 102,623 3.98
Lapsed (30,956) 3.38
Exercised – –
31 December 2020 71,667 4.25

20. Share-based payments continued
As at 31 December 2021, a total of 44,536,755 options (2020: 71,667,011 options) were outstanding and exercisable, having an exercise
price of GBP3.91 (2020: GBP3.91 to GBP4.80) and a weighted average exercise price of GBP3.91 (2020: GBP4.25). Since the share price
leading up to the expiry date of 17 February 2022 was above the exercise price, all of these options were exercised. Glencore settled
these awards by the transfer of ordinary shares held as Trust Shares.
21. Borrowings

Non-current borrowings
Capital market notes 22,376 22,353
Committed syndicated revolving credit facilities 2,543 4,766
Lease liabilities 1,093 1,008
Other bank loans 799 1,100
Total non-current borrowings 26,811 29,227
Current borrowings
Secured inventory/receivables/other facilities 11/13/14 122 1,346
U.S. commercial paper 1,764 1,090
Capital market notes 2,884 2,018
Lease liabilities 525 513
Other bank loans1 2,535 3,285
Total current borrowings 7,830 8,252
Total borrowings 34,641 37,479
1 Comprises various uncommitted bilateral bank credit facilities and other financings and is net of $Nil million (2020: $135 million) of funds advanced by the Group under a netting
arrangement with a bank and a subsidiary.

21. Borrowings continued
Changes in liabilities arising from financing activities

Liabilities arising from financing activities are those for which cash flows are classified in the Group's consolidated cash flow
statement as cash flows from financing activities. The table below details changes in the Group's liabilities arising from financing
activities, including both cash and non-cash changes.
2021
Borrowings Cross currency Total liabilities
excluding and interest arising from
lease Lease Total rate swaps and financing
US$ million liabilities liabilities borrowings net margins1 activities
1 January 2021 35,958 1,521 37,479 91 37,570
Cash related movements2
Proceeds from issuance of capital market notes 4,877 – 4,877 – 4,877
Repayment of capital market notes (2,807) – (2,807) – (2,807)
Repurchase of capital market notes (125) – (125) – (125)
Repayment of revolving credit facilities (2,244) – (2,244) – (2,244)
Proceeds from other non-current borrowings 231 – 231 – 231
Repayment of other non-current borrowings (493) – (493) – (493)
Repayment of lease liabilities – (634) (634) – (634)
Margin payments in respect of financing related hedging
activities – – – (970) (970)
Proceeds from U.S. commercial papers 675 – 675 – 675
Repayment of current borrowings (2,016) – (2,016) – (2,016)
(1,902) (634) (2,536) (970) (3,506)
Non-cash related movements
Borrowings (disposed of)/acquired in business combinations3 (1) (7) (8) – (8)
Borrowings reclassified to held for sale4 – (138) (138) – (138)
Fair value adjustment to fair value hedged borrowings (499) – (499) – (499)
Fair value movement of hedging derivatives – – – 902 902
Foreign exchange movements (599) (45) (644) – (644)
Change in lease liabilities – 922 922 – 922
Interest on convertible bonds 21 – 21 – 21
Other movements 45 (1) 44 – 44
(1,033) 731 (302) 902 600
31 December 2021 33,023 1,618 34,641 23 34,664
1 The currency and interest rate swaps are reported on the balance sheet within the headings ‘Other financial assets’ and ‘Other financial liabilities’ (see note 27) and margin calls
paid/received within accounts receivable/payable (see notes 14 and 25).
2 See consolidated statement of cash flows.
3 See note 26.
4 See note 16.

2020
Borrowings Cross currency Total liabilities
excluding and interest arising from
lease Lease Total rate swaps and financing
US$ million liabilities liabilities borrowings net margins 1
activities
1 January 2020 35,401 1,642 37,043 199 37,242
Cash related movements2
Proceeds from issuance of capital market notes 3,362 – 3,362 – 3,362
Repayment of capital market notes (4,017) – (4,017) – (4,017)
Repurchase of capital market notes (72) – (72) – (72)
Repayment of revolving credit facilities (870) – (870) – (870)
Proceeds from other non-current borrowings 392 – 392 – 392
Repayment of other non-current borrowings (44) – (44) – (44)
Repayment of lease liabilities – (560) (560) – (560)
Margin receipts in respect of financing related hedging
activities – – – 1,040 1,040
Proceeds from U.S. commercial papers 415 – 415 – 415
Proceeds from current borrowings 217 – 217 – 217
(617) (560) (1,177) 1,040 (137)
Non-cash related movements
Borrowings (disposed of)/acquired in business combinations3 – (13) (13) – (13)
Borrowings reclassified to held for sale4 (26) – (26) – (26)
Fair value adjustment to fair value hedged borrowings 344 – 344 – 344
Fair value movement of hedging derivatives – – – (1,148) (1,148)
Foreign exchange movements 792 20 812 – 812
Change in lease liabilities – 435 435 – 435
Interest on convertible bonds 20 – 20 – 20
Other movements 44 (3) 41 – 41
1,174 439 1,613 (1,148) 465
31 December 2020 35,958 1,521 37,479 91 37,570
1 The currency and interest rate swaps are reported on the balance sheet within the headings ‘Other financial assets’ and ‘Other financial liabilities’ (see note 27) and margin calls
paid/received within accounts receivable/payable (see notes 14 and 25).
2 See consolidated statement of cash flows.
3 See note 26.
4 See note 16.

Capital Market Notes

US$ million Maturity 2021 2020
Euro 700 million 1.625% coupon bonds Jan 2022 – 865
Euro 1,000 million 1.875% coupon bonds Sep 2023 1,136 1,219
Euro 400 million 3.70% coupon bonds Oct 2023 467 520
Euro 600 million 0.625% coupon bonds Sep 2024 682 732
Euro 750 million 1.75% coupon bonds Mar 2025 862 951
Euro 500 million 3.75% coupon bonds Apr 2026 598 680
Euro 500 million 1.50% coupon bonds Oct 2026 566 632
Euro 950 million 1.125% coupon bonds Mar 2028 1,079 1,159
Euro 600 million 0.75% coupon bonds Mar 2029 653 –
Euro 500 million 0.75% coupon bonds Mar 2033 526 –
Eurobonds 6,569 6,758
JPY 10 billion 1.075% coupon bonds May 2022 – 97
GBP 500 million 6.00% coupon bonds Apr 2022 – 685
GBP 500 million 3.125% coupon bonds Mar 2026 677 724
Sterling bonds 677 1,409
CHF 175 million 1.25% coupon bonds Oct 2024 194 202
CHF 250 million 0.35% coupon bonds Sep 2025 274 283
CHF 225 million 1.00% coupon bonds Mar 2027 248 256
CHF 150 million 0.50% coupon bonds Sep 2028 160 –
Swiss Franc bonds 876 741
US$ 600 million 5.375% coupon bonds Feb 2022 – 535
US$ 250 million LIBOR plus 1.65% coupon bonds May 2022 – 250
US$ 1,000 million 4.25% coupon bonds Oct 2022 – 1,002
US$ 500 million 3.00% coupon bonds Oct 2022 – 461
US$ 1,500 million 4.125% coupon bonds May 2023 1,538 1,580
US$ 1,000 million 4.125% coupon bonds Mar 2024 970 969
US$ 1,000 million 4.625% coupon bonds Apr 2024 1,029 1,069
US$ 625 million non-dilutive convertible bonds Mar 2025 552 532
US$ 500 million 4.00% coupon bonds Apr 2025 510 531
US$ 1,000 million 1.625% coupon bonds Sep 2025 994 992
US$ 475 million 4.375% coupon bonds Feb 2026 469 –
US$ 600 million 1.625% coupon bonds Apr 2026 587 –
US$ 1,000 million 4.00% coupon bonds Mar 2027 1,043 1,103
US$ 50 million 4.00% coupon bonds Mar 2027 50 50
US$ 500 million 3.875% coupon bonds Oct 2027 522 553
US$ 750 million 4.875% coupon bonds Mar 2029 811 864
US$ 1,000 million 2.50% coupon bonds Sep 2030 992 991
US$ 600 million 2.65% coupon bonds Sep 2031 745 –
US$ 250 million 6.20% coupon bonds Jun 2035 269 270
US$ 500 million 6.90% coupon bonds Nov 2037 582 586
US$ 500 million 6.00% coupon bonds Nov 2041 536 537
US$ 500 million 5.55% coupon bonds Oct 2042 473 473
US$ 500 million 3.375% coupon bonds Sep 2051 488 –
US$ bonds 14,254 13,348
Total non-current bonds 22,376 22,353

US$ million Maturity 2021 2020

GBP 500 million 6.00% coupon bonds Apr 2022 677 –
JPY 10 billion 1.075% coupon bonds May 2022 87 –
Euro 600 million 2.75% coupon bonds Apr 2021 – 724
CHF 250 million 2.25% coupon bonds May 2021 – 284
US$ 1,000 million 4.95% coupon bonds Nov 2021 – 1,010
US$ 600 million 5.375% coupon bonds Feb 2022 410 –
US$ 250 million LIBOR plus 1.65% coupon bonds May 2022 250 –
US$ 1,000 million 4.25% coupon bonds Oct 2022 999 –
US$ 500 million 3.00% coupon bonds Oct 2022 461 –
Total current bonds 2,884 2,018
2021 Bond activities

• In February 2021, issued:
– 5 year $475 million, 4.375% coupon bond (Volcan)
• In March 2021, issued:
– 8 year EUR600 million, 0.75% coupon bond
– 12 year EUR500 million, 1.25% coupon bond
• In April 2021, issued:
• In September 2021, issued:
– 7 year CHF150 million, 0.5% coupon bond
2020 Bond activities

• In September 2020, issued:
– 7.5 year EUR 850 million, 1.125% coupon bond
– 5.5 year CHF 225 million, 1.00% coupon bond
– 5 year $1,000 million, 1.625% coupon bond
– 10 year $1,000 million, 2.50% coupon bond
• In December 2020, issued 7.5 year EUR 100 million, 1.125% coupon bond
Committed syndicated revolving credit facilities

In March 2021, Glencore extended its revolving credit facilities. The margins on these facilities remained unchanged, namely US$
LIBOR plus 40bps flat for the one-year, and US$ LIBOR plus 27.5bps, subject to a ratings grid, for the medium term. During the
period, certain amounts were voluntarily cancelled, determined as being in excess of the Group’s liquidity headroom requirements.
As at 31 December 2021, the facilities comprise:
• a $6,572 million one year revolving credit facility with a one-year borrower’s term-out option (to May 2023);
• a $450 million medium-term revolving credit facility (to May 2025); and
• a $4,200 million medium-term revolving credit facility (to May 2026).
As in previous years, these committed unsecured facilities contain no financial covenants, no rating triggers, no material adverse
change clauses and no external factor clauses.

Secured facilities
US$ million Maturity1 Interest 2021 2020
Syndicated committed metals
Nov 2024 3.2% 82 81
inventory/receivables facilities2
Syndicated uncommitted metals and oil
– 1,245
inventory/receivables facilities
Other secured facilities Apr 2022 US$ LIBOR + 72 bps 120 100
Total 202 1,426
Current 122 1,346
Non-current 80 80
1 Uncommitted facilities are re-drawn several times until actual expiry of the facility contract.
2 Comprises various facilities. The maturity and interest detail represent the weighted average of the various debt balances outstanding at year end.

22. Deferred income
Unfavourable
US$ million Notes contracts Prepayments Total
1 January 2021 529 3,131 3,660
Additions – 1,336 1,336
Accretion in the year – 115 115
Revenue recognised in the year (70) (1,066) (1,136)
Released in the year 5 (122) – (122)
Reclassification to held for sale 16 – (191) (191)
Effect of foreign currency exchange difference (1) – (1)
31 December 2021 336 3,325 3,661
Current 56 1,517 1,573
Non-current 280 1,808 2,088
1 January 2020 609 2,619 3,228

Additions – 1,047 1,047
Accretion in the year – 127 127
Revenue recognised in the year (66) (663) (729)
Effect of foreign currency exchange difference (14) 1 (13)
31 December 2020 529 3,131 3,660
Current 79 991 1,070
Non-current 450 2,140 2,590
Unfavourable contracts
In several business combinations, Glencore recognised liabilities related to various assumed contractual agreements to deliver
tonnes of coal over various periods ending until 2032 at fixed prices lower than the prevailing market prices on the respective
acquisition dates.
These amounts are released to revenue as the underlying commodities are delivered to the buyers over the life of the contracts at
rates consistent with the extrapolated forward price curves at the time of the acquisitions.
During the year, certain contractual terms were renegotiated and related unfavourable contract provisions in the amount of
$122 million were released (see note 5).
Prepayments
Prepayments comprise various short to long-term product supply agreements whereby an upfront prepayment is received in
exchange for the future delivery of a specific product, such as gold, silver or cobalt. The arrangements are accounted for as executory
contracts whereby the advance payment is recorded as deferred revenue. The revenue from the advance payment is recognised as
the specific product identified in the contract is delivered consistent with the implied forward price curve at the time of the
transaction and an accretion expense, representing the time value of the upfront deposit, is also recognised.
Prepayments predominantly comprise:
• Life of mine arrangements - long-term streaming agreements for the future delivery of gold and/or silver produced over the life of
mine from our Antamina and Antapaccay operations. In addition to the upfront payment received, for product delivered from the
Antamina and Antapaccay operations, Glencore receives an ongoing amount equal to 20% of the spot silver and gold price. Once
certain delivery thresholds have been met at Antapaccay, the ongoing cash payment increases to 30% of the spot gold and silver
prices. As at 31 December 2021, post Ernest Henry being reclassified to ‘held for sale’, $1,068 million (2020: $1,391 million) of product
delivery obligations remain, of which $35 million (2020: $118 million) are due within 12 months.
• Silver supply arrangement – Various silver prepayment arrangements for the future delivery of an average of 14 million ounces of
silver per annum, over a remaining 4 year period. As at 31 December 2021, $784 million (2020: $841 million) of product delivery
obligations remain, of which $408 million (2020: $292 million) are due within 12 months.
• Palladium supply arrangement – Various palladium prepayment arrangements for the future delivery of an average of 37
thousand ounces of palladium per annum, over a remaining 4 year period. As at 31 December 2021, $141 million (2020:
$200 million) of product delivery obligations remain, of which $58 million (2020: $63 million) are due within 12 months.
• Gold supply arrangement – Various gold supply arrangements for the future delivery of 518 thousand ounces (2020: 228 thousand
ounces) of gold over a 1-year period. As at 31 December 2021, $765 million (2020: $360 million) of product delivery obligations
remain, which are due within 12 months.

22. Deferred income continued
• Cobalt supply arrangement – In March 2019, Glencore signed a six year cobal prepayment arrangement in exchange for an
upfront advance payment of $100 million. Under the terms of the arrangement, Glencore is required to deliver an average of 1,621
metric tons of cobalt per annum, over a four year period starting 2021. As at 31 December 2021, $94 million (2020: $100 million) of
product delivery obligations remain, of which $26 million (2020: $5 million) are due within 12 months.
• Iron ore supply arrangement – In November 2021, Glencore signed a 18 month iron ore prepayment arrangement in exchange for
an upfront advance payment of $200 million. Under the terms of the arrangement, Glencore is required to deliver an average of
3,600,000 metric tons of iron ore per annum. As at 31 December 2021, $200 million (2020: $Nil) of product delivery obligations
remain of which, $117 million (2020: $Nil) are due within 12 months.
23. Provisions
Rehabilitation Onerous Legal Other

US$ million Notes costs contracts investigations provisions Total
1 January 2021 5,182 535 – 746 6,463
Utilised (190) (122) – (276) (588)
Released (14) (103) – (31) (148)
Accretion 153 31 – 2 186
Disposal of subsidiaries 26 (67) – – (10) (77)
Additions 918 116 1,500 137 2,671
Reclassification to held for sale 16 (191) – – (37) (228)
(60) (2) – (7) (69)
movements
31 December 2021 5,731 455 1,500 524 8,210
Current 337 109 1,500 147 2,093
Non-current 5,394 346 – 377 6,117
1 January 2020 4,847 595 – 633 6,075

Utilised (189) (124) – (37) (350)
Released – (174) – (42) (216)
Accretion 144 40 – 4 188
Disposal of subsidiaries 26 (208) – – (15) (223)
Additions 614 200 – 247 1,061
Reclassification to held for sale 16 (54) – – (24) (78)
Reclassification from held for sale 16 45 – – 7 52
(17) (2) – (27) (46)
movements
31 December 2020 5,182 535 – 746 6,463
Current 297 143 – 253 693
Non-current 4,885 392 – 493 5,770
Rehabilitation costs
Rehabilitation provision represents the accrued costs required to provide adequate restoration and rehabilitation upon the
completion of production activities. These amounts will be settled when rehabilitation is undertaken, generally at the end of a
project’s life, which ranges from two to in excess of 50 years with an average for all sites, weighted by closure provision, of some 23
years (2020: 23 years).
As at 31 December 2021, the discount rate applied in calculating the restoration and rehabilitation provision is a pre-tax risk free rate
specific to the liability and the currency in which they are denominated as follows: US dollar 1.5% (2020: 1.6%), South African rand
3.75% (2020: 3.6%), Australian dollar 2.0% (2020: 2.3%), Canadian dollar 1.5% (2020: 1.7%), and Chilean peso 2.5% (2020: 2.6%).
The sensitivity of the rehabilitation costs provision to changes in the discount rate assumptions as at 31 December 2021, assuming
that all other assumptions are held constant, is set out below:

23. Provisions continued
Discount rate
US$ million Increase 0.5% Decrease 0.5%
Decrease/(increase) in overall rehabilitation provision 416 (484)
(Decrease)/increase in property, plant and equipment (352) 409
Net increase/(decrease) in statement of income 64 (75)
Effect in the following year
Decrease/(increase) in depreciation expense 15 (18)
(Increase)/decrease in interest expense (6) 8
Net increase/(decrease) in statement of income 9 (10)
Onerous contracts
Onerous contracts represent liabilities related to contractual take or pay commitments for securing coal logistics capacity and LNG
re-gasification capacity at fixed prices and quantities higher than the acquisition date forecasted usage and prevailing market price.
The provision is released to costs of goods sold as the underlying commitments are incurred.
Investigations by regulatory and enforcement authorities

The Group is subject to a number of investigations by regulatory and enforcement authorities including:
• The United States Department of Justice is investigating the Group with respect to compliance with various criminal statutes,
including the Foreign Corrupt Practices Act, United States money laundering statutes and fraud statutes related to the Group’s
business in certain overseas jurisdictions.
• The United States Commodity Futures Trading Commission ("CFTC") is investigating whether the Group may have violated
certain provisions of the Commodity Exchange Act and/or CFTC Regulations including through corrupt practices in connection
with commodities trading.
• The United Kingdom Serious Fraud Office is investigating the Group in respect of suspicions of bribery in the conduct of business
of the Group.
• The Brazilian authorities are investigating the Group in relation to “Operation Car Wash”, which relates to bribery allegations
concerning Petrobras.
• The Office of the Attorney General of Switzerland (“OAG”) is investigating Glencore International AG for failure to have the
organisational measures in place to prevent alleged corruption.
The Board has appointed a committee, the Investigations Committee (“the Committee”), to oversee the response to the
investigations on behalf of the Board. The Committee has engaged external legal counsel and forensic experts to assist in
responding to the various investigations and to perform additional investigations at the request of the Committee covering various
aspects of the Group’s business. The Group continues to cooperate fully with the above authorities.
The Group has also been notified by the Dutch authorities of a criminal investigation into Glencore International AG related to
potential corruption pertaining to the DRC and is in contact with the Dutch authorities in respect of this investigation. The scope of
the investigation is similar to that of the OAG investigation. The Dutch authorities are coordinating their investigation with the OAG
and we would expect any possible resolution to avoid duplicative penalties for the same conduct.
While the Committee cannot forecast with certainty the cost, extent, timing or terms of the outcomes of the investigations, the
Committee presently expects to resolve the U.S., UK and Brazilian investigations in 2022. Accordingly, and based on the Company’s
current information and understanding, the Group has raised a provision as at 31 December 2021 in the amount of $1,500 million
representing the Committee’s current best estimate of the costs to resolve these investigations (included in other expenses, see
note 5). As the investigations are still ongoing and their ultimate outcome remains uncertain, there remains a significant risk that
the final outcome could materially impact the recognised balance within the next financial year. It is impractical to provide further
sensitivity estimates of potential downside variances.
The timing and outcome of the OAG and Dutch investigations remains uncertain – see note 32.
Other
Other comprises provisions for possible demurrage, mine concession and construction related claims. This balance comprises no
individually material provisions.

24. Personnel costs and employee benefits
Post-retirement Other
employee employee
US$ million Notes benefits entitlements Total
1 January 2021 980 181 1,161
Utilised (84) (9) (93)
Released (1) (7) (8)
Accretion 23 – 23
Additions 151 14 165
Actuarial (gain)/loss (284) – (284)
Effect of foreign currency exchange movements (3) (3) (6)
31 December 2021 782 157 939
1 January 2020 958 228 1,186

Utilised (106) (71) (177)
Accretion 26 – 26
Disposal of subsidiaries 26 – (9) (9)
Additions 74 38 112
Actuarial loss/(gain) 20 – 20
Effect of foreign currency exchange movements 8 5 13
31 December 2020 980 181 1,161
The provision for post-retirement employee benefits includes pension plan liabilities of $352 million (2020: $504 million) and post-
retirement medical plan liabilities of $430 million (2020: $476 million).
The other employee entitlements provision represents the value of governed employee entitlements due to employees upon their
termination of employment. The associated expenditure will occur in a pattern consistent with when employees choose to exercise
their entitlements.
Total personnel costs, which include salaries, wages, social security, other personnel costs and share-based payments, incurred for
the years ended 31 December 2021 and 2020, were $6,012 million and $5,403 million, respectively. Personnel costs related to
consolidated industrial subsidiaries of $4,188 million (2020: $3,944 million) are included in cost of goods sold. Other personnel costs,
including deferred bonus and performance share plans, are included in selling and administrative expenses.
The Company and certain subsidiaries sponsor various pension schemes in accordance with local regulations and practices.
Eligibility for participation in the various plans is either based on completion of a specified period of continuous service, or date of
hire. Among these schemes are defined contribution plans as well as defined benefit plans.
Defined contribution plans

Glencore’s contributions under these plans amounted to $173 million in 2021 (2020: $122 million).
Post-retirement medical plans

The Company participates in a number of post-retirement medical plans, principally in Canada, which provide coverage for
prescription drugs, medical, dental, hospital and life insurance to eligible retirees. Almost all of the post-retirement medical plans in
the Group are unfunded.

24. Personnel costs and employee benefits continued
Defined benefit pension plans

The Company operates defined benefit plans in various countries, the main locations being Canada, Switzerland, UK and the U.S..
Approximately 64% of the present value of the pension obligations accrued relates to the defined benefit plans in Canada, which are
pension plans that provide benefits to members in the form of a guaranteed level of pension payable for life. Contributions to the
Canadian plans are made to meet or exceed minimum funding requirements based on provincial statutory requirements and
associated federal taxation rules.
The majority of benefit payments are from trustee-administered funds; however, there are also a number of unfunded plans where
Glencore meets the benefit payments as they fall due. Plan assets held in trusts are governed by local regulations and practices in
each country. Responsibility for governance of the plans – overseeing all aspects of the plans including investment decisions and
contribution schedules – lies with Glencore. Glencore has set up committees to assist in the management of the plans and has also
appointed experienced, independent professional experts such as investment managers, actuaries, custodians, and trustees.
The movement in the defined benefit pension and post-retirement medical plans over the year is as follows:

Present value Net liability
of defined Fair value for defined
Post-retirement benefit of plan benefit
US$ million Notes medical plans obligation assets pension plans
1 January 2021 476 3,138 (2,674) 464
Current service cost 7 62 – 62
Past service cost - plan amendments (6) – – –
Settlement of pension plan disposal – (137) 138 1
Interest expense/(income) 18 64 (59) 5
Total expense/(income) recognised in consolidated
statement
of income 19 (11) 79 68
Gain on plan assets, excluding amounts included
in interest expense - net – – (46) (46)
Gain from change in demographic assumptions – (12) – (12)
Gain from change in financial assumptions (37) (188) – (188)
(Gain)/loss from actuarial experience (4) 3 – 3
Actuarial (gains)/losses recognised in consolidated
statement of comprehensive income (41) (197) (46) (243)
Employer contributions – – (63) (63)
Employee contributions – 1 (1) –
Benefits paid directly by the Company (22) (8) 8 –
Benefits paid from plan assets – (165) 166 1
Net cash (outflow)/inflow (22) (172) 110 (62)
Exchange differences (2) 2 (2) –
31 December 2021 430 2,760 (2,533) 227
Of which:
Pension surpluses 12 – (125)
Pension deficits 430 352
The actual return on plan assets in respect of defined benefit pension plans amounted to a gain of $107 million (2020: $273 million),
comprising interest income and the re-measurement of plan assets.
During the next financial year, the Group expects to make a contribution of $84 million in respect of the defined benefit pension and
post-retirement medical plans across all countries, including current service costs and contributions required by pension legislation.
Contributions over the next five years for the Canadian plans only, based on the most recently filed actuarial reports, approximate
$117 million. Future funding requirements and contributions are reviewed and adjusted on an annual basis.


Present value Net liability
of defined Fair value for defined
Post-retirement benefit of plan benefit
US$ million Notes medical plans obligation assets pension plans
1 January 2020 512 2,951 (2,547) 404
Current service cost 8 59 – 59
Past service cost - plan amendments – 2 – 2
Settlement of pension plan disposal – (41) 48 7
Interest expense/(income) 19 75 (68) 7
Total expense/(income) recognised in consolidated
statement
of income 27 95 (20) 75
Gain on plan assets, excluding amounts included
in interest expense - net – – (150) (150)
Gain from change in demographic assumptions (75) (3) – (3)
Loss from change in financial assumptions 28 211 – 211
Loss from actuarial experience 4 5 – 5
Actuarial losses/(gains) recognised in consolidated
statement of comprehensive income (43) 213 (150) 63
Employer contributions – – (83) (83)
Employee contributions – 1 (1) –
Benefits paid directly by the Company (23) (8) 8 –
Benefits paid from plan assets – (174) 174 –
Net cash (outflow)/inflow (23) (181) 98 (83)
Exchange differences 3 60 (55) 5
31 December 2020 476 3,138 (2,674) 464
Of which:
Pension surpluses 12 – (40)
Pension deficits 476 504
The defined benefit obligation accrued in Canada represents the majority for the Company. The breakdown below provides details
of the Canadian plans for both the statement of financial position and the weighted average duration of the defined benefit
obligation as at 31 December 2021 and 2020. The net liability of any of the Group’s defined benefit plans outside of Canada as at
31 December 2021 does not exceed $70 million (2020: $92 million).

2021
US$ million Canada Other Total
Present value of defined benefit obligation 379 51 430
of which: amounts owing to active members 123 11 134
of which: amounts owing to pensioners 256 40 296
Present value of defined benefit obligation 1,753 1,007 2,760
of which: amounts owing to non-active members 25 167 192
of which: amounts owing to pensioners 1,294 356 1,650
Fair value of plan assets (1,772) (761) (2,533)
Net defined benefit liability(asset) at 31 December 2021 (19) 246 227
Of which:
Pension surpluses (115) (10) (125)
Pension deficits 96 256 352
Weighted average duration of defined benefit obligation - years 13 15 13
2020
US$ million Canada Other Total
Present value of defined benefit obligation 415 61 476
of which: amounts owing to pensioners 273 50 323
Present value of defined benefit obligation 2,041 1,097 3,138
of which: amounts owing to active members 501 533 1,034
of which: amounts owing to non-active members 37 192 229
of which: amounts owing to pensioners 1,503 372 1,875
Fair value of plan assets (1,917) (757) (2,674)
Net defined benefit liability at 31 December 2020 124 340 464
Of which:
Pension surpluses (38) (2) (40)
Pension deficits 162 342 504
Weighted average duration of defined benefit obligation - years 13 16 14
Estimated future benefit payments of the Canadian plans, which reflect expected future services but exclude plan expenses, up
until 2031 are as follows:
Post-retirement Defined benefit

US$ million medical plans pension plans Total
2022 19 99 118
2023 19 98 117
2024 19 98 117
2025 19 135 154
2026 19 95 114
2027-2031 92 470 562
Total 187 995 1,182

The plan assets consist of the following:
2021 2020
Non-active Non-active
Active market market Active market market
Cash and short-term investments 40 – 24 21
Fixed income 823 195 844 213
Equities 851 – 979 –
Other 416 208 393 200
Total 2,130 403 2,240 434
The fair value of plan assets includes none of Glencore’s own financial instruments and no property occupied by or other assets used
by Glencore. For many of the plans, representing a large portion of the global plan assets, asset-liability matching strategies are in
place, where the fixed-income assets are invested broadly in alignment with the duration of the plan liabilities, and the proportion
allocated to fixed-income assets is raised when the plan funding level increases. The asset mix for each plan reflects the nature,
expected changes in, and size of the liabilities and the assessment of long-term economic conditions, market risk, expected
investment returns as considered during a formal asset mix study, including sensitivity analysis and/or scenario analysis, conducted
periodically for the plans.
Through its defined benefit plans, Glencore is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility: The plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if plan assets
underperform this yield, this will create a deficit. The funded plans hold a significant proportion of equities, which are expected to
outperform bonds in the long term while contributing volatility and risk in the short term. Glencore believes that due to the long-
term nature of the plan liabilities, a level of continuing equity investment is an appropriate element of Glencore’s long-term strategy
to manage the plans efficiently.
Change in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in
the value of the plans’ bond holdings.
Inflation risk: Some of the plans’ benefit obligations are linked to inflation, and higher inflation will lead to higher liabilities, although,
in most cases, caps on the level of inflationary increases are in place to protect the plan against extreme inflation.
Life expectancy: The majority of the plans’ obligations are to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the plans’ liability.
Salary increases: Some of the plans’ benefit obligations related to active members are linked to their salaries. Higher salary increases
will therefore tend to lead to higher plan liabilities.
The principal weighted-average actuarial assumptions used were as follows:
Post-retirement medical plans Defined benefit pension plans

2021 2020 2021 2020
Discount rate 4.1% 3.6% 2.7% 2.2%
Future salary increases – – 2.6% 2.6%
Future pension increases – – 0.5% 0.4%
Ultimate medical cost trend rate 4.6% 4.6% – –
Mortality assumptions are based on the latest available standard mortality tables for the individual countries concerned. As at
31 December 2021, these tables imply expected future life expectancy, for employees aged 65, 16 to 23 years for males (2020: 16 to 23)
and 20 to 25 years for females (2020: 20 to 25). The assumptions for each country are reviewed regularly and are adjusted where
necessary to reflect changes in fund experience and actuarial recommendations.

The sensitivity of the defined benefit obligation to changes in principal assumptions as at 31 December 2021 is set out below,
assuming that all other assumptions are held constant and the effect of interrelationships is excluded.
Increase/(decrease) in pension obligation

Post-retirement Defined benefit
US$ million medical plans pension plans Total
Discount rate
Increase by 50 basis points (28) (170) (198)
Decrease by 50 basis points 32 186 218
Rate of future salary increase
Increase by 100 basis points – 34 34
Decrease by 100 basis points – (33) (33)
Rate of future pension benefit increase
Increase by 100 basis points – 56 56
Decrease by 100 basis points – (46) (46)
Medical cost trend rate
Increase by 100 basis points 51 – 51
Decrease by 100 basis points (41) – (41)
Life expectancy
Increase in longevity by one year 12 69 81
25. Accounts payable

Financial liabilities at amortised cost
Trade payables 10,397 8,021
Margin calls received 729 1,033
Associated companies 1,124 1,209
Other payables and accrued liabilities 889 850
Financial liabilities at fair value through profit and loss
Trade payables containing provisional pricing features 28 13,806 11,264
Advances settled in product 459 289
Other payables and accrued liabilities 1,460 994
Other tax and related payables 449 378
Total 29,313 24,038
Trade payables are obligations to pay for goods and services. Trade payables typically have maturities up to 90 days depending on
the type of material and the geographic area in which the purchase transaction occurs and the agreed terms. As at 31 December
2021, Nil (2020: 10%) of total trade payables of $24,203 million (2020: $19,285 million) include liabilities under supplier financing
arrangements with maturities beyond 91 days (refer to note 1 for critical judgements associated with classification of liabilities which
contain a financing element). The carrying value of trade payables approximates fair value.

26. Acquisition and disposal of subsidiaries and other entities
2021 & 2020 Acquisitions

In 2021 and 2020, there were no material acquisitions.
2021 Disposals
The carrying value of the assets and liabilities over which control was lost and consideration receivable from the 2021 disposals are
detailed below:
Chemoil
US$ million Mopani1 Terminals Others Total
Non-current assets
Property, plant and equipment 748 158 20 926
Advances and loans 5 – – 5
753 158 20 931
Current assets
Inventories 168 – – 168
Accounts receivable 99 3 14 116
Prepaid expenses 3 – – 3
Cash and cash equivalents – 10 10 20
270 13 24 307
Non-current borrowings – (6) – (6)
Deferred tax liabilities – (18) (1) (19)
Non-current provisions (55) – (61) (116)
Post-retirement and other employee benefits (9) – – (9)
(64) (24) (62) (150)
Current liabilities
Borrowings – (1) (1) (2)
Accounts payable (81) (8) – (89)
Provisions (23) – (16) (39)
Income tax payable (12) – – (12)
(116) (9) (17) (142)
Carrying value of net assets disposed 843 138 (35) 946
Cash and cash equivalents received – (248) (24) (272)
Future consideration (838) – – (838)
Net loss/(gain) on disposal before non-controlling interest 5 (110) (59) (164)
Derecognition of non-controlling interest 1,017 – – 1,017
Net loss/(gain) on disposal after non-controlling interest 1,022 (110) (59) 853
Cash and cash equivalents received – 248 24 272
Less: cash and cash equivalents disposed – (10) (10) (20)
Net cash received/(used) in disposal – 238 14 252
1 As at 31 December 2020, total assets and liabilities were presented as current assets and liabilities “held for sale“ (see note 16).
Mopani
On 31 March 2021, Glencore completed the disposal of its 90% interest in Mopani to ZCCM Investments Holdings plc, the holder of
the remaining 10% interest in Mopani, in exchange for $1 and the rights to offtake copper and other metals from Mopani until
$1.5 billion of existing intercompany debt (the “transaction debt”) has been repaid to Glencore. The repayment of the transaction
debt is based on Glencore receiving physical commodities from Mopani through its offtake rights and applying fixed percentages of
annual gross revenues generated from the sale of such commodities against the transaction debt until it is fully repaid. As Glencore
is no longer able to unilaterally direct the key strategic, operating and capital decisions of Mopani, it was deemed to have disposed
of its controlling interest at the fair value of the transaction debt on the date of completion, being $838 million. Fair value was
determined using a discounted cash flow model of the projected amount and timing of metal volumes received from Mopani
under the offtake rights and market forecasts of commodity prices, discounted using an asset specific discount rate of 11.4%.
The net loss on disposal reflects the derecognition to the statement of income of the previously recognised book value of the non-
controlling interest equity balance, which largely related to the non-controlling interests’ share of historical impairments and losses,
and resulting net liabilities in Mopani.
Chemoil Terminals
On 17 December 2021, Glencore completed the disposal of its 100% interest in Chemoil Terminals LLC, which owns the Long Beach
and Carson oil products storage terminals in California, for a consideration of $248 million.

26. Acquisition and disposal of subsidiaries and other entities continued
2020 Disposals
In 2020, Glencore disposed of its controlling interest in Minera Alumbrera Limited. The carrying value of the assets and liabilities over
which control was lost and the net cash used in the disposal are detailed below:
US$ million Alumbrera

Non-current assets
Property, plant and equipment 12
12
Current assets
Inventories 2
Accounts receivable 14
Cash and cash equivalents 222
238
Non-controlling interest 2
Provisions (182)
(182)
Current liabilities
Borrowings (13)
Accounts payable (9)
Provisions (50)
(72)
Carrying value of net assets disposed (2)
Net gain on disposal (2)
Cash and cash equivalents received –

Less: cash and cash equivalents disposed (222)
Net cash used in disposal (222)
Minera Alumbrera Limited

In December 2020, Glencore disposed of its 50% interest in Minera Alumbrera Limited, a copper-gold operation in Argentina, in
return for a 24.99% interest in Minera Agua Rica Alumbrera Limited. Glencore is no longer able to unilaterally direct the key strategic,
operating and capital decisions of Minera Alumbrera Limited and was deemed to have disposed of its controlling interest at fair
value. The difference to the net carrying value was recognised through the statement of income, with Glencore subsequently
accounting for its share in Minera Agua Rica Alumbrera Limited using the equity method in accordance with IAS 28.

27. Financial and capital risk management
Financial risks arising in the normal course of business from Glencore’s operations comprise market risk (including commodity price
risk, interest rate risk and currency risk), credit risk (including performance risk) and liquidity risk. It is Glencore’s policy and practice
to identify and, where appropriate and practical, actively manage such risks (for management of “margin” risk within Glencore’s
extensive and diversified industrial portfolio, refer net present value at risk below) to support its objectives in managing its capital
and future financial security and flexibility. Glencore’s overall risk management programme focuses on the unpredictability of
financial markets and seeks to protect its financial security and flexibility by using derivative financial instruments where possible to
substantially hedge these financial risks. Glencore’s finance and risk professionals, working in coordination with the commodity
departments, monitor, manage and report regularly to senior management and the Board of Directors on the approach and
effectiveness in managing financial risks along with the financial exposures facing the Group.
Glencore’s objectives in managing its “capital attributable to equity holders” include preserving its overall financial health and
strength for the benefit of all stakeholders, maintaining an optimal capital structure in order to provide a high degree of financial
flexibility at an attractive cost of capital and safeguarding its ability to continue as a going concern, while generating sustainable
long-term profitability. Central to meeting these objectives is maintaining an investment grade credit rating status. Glencore’s
current credit ratings are Baa1 (stable) from Moody’s and BBB+ (stable) from S&P.
Distribution policy and other capital management initiatives

Glencore’s base cash distribution policy comprises two components: (1) a fixed $1 billion component and (2) a variable element
representing 25% of free cash flow generated by our industrial assets during the proceding year. Distributions are expected to be
formally declared by the Board annually (with the preliminary full-year results). Distributions, when declared, will be settled equally in
May and September of the year they are declared in. In addition, reflecting the Group’s through the cycle Net debt objective of
c.$10 billion, and consideration of the cyclical nature of the industry and other relevant factors, the Board could declare additional
distributions to be included with the distribution confirmed with respect to the prior year, consider top-up distributions during the
year and/or initiate or continue share buy-back programmes. Notwithstanding that the cash distribution is declared and paid in U.S.
dollars, shareholders will be able to elect to receive their distribution payments in Pounds Sterling, Euros or Swiss Francs based on
the exchange rates in effect around the date of payment. Shareholders on the JSE will receive their distributions in South African
Rand.
Commodity price risk

Glencore is exposed to price movements for the inventory it holds and the products it produces which are not held to meet priced
forward contract obligations and forward priced purchase or sale contracts. Glencore manages a significant portion of this exposure
through futures and options transactions on worldwide commodity exchanges or in over the counter (OTC) markets, to the extent
available. Commodity price risk management activities are considered an integral part of Glencore’s physical commodity marketing
activities and the related assets and liabilities are included in other financial assets from and other financial liabilities to derivative
counterparties, including clearing brokers and exchanges. Whilst it is Glencore’s policy to substantially hedge its commodity price
risks, there remains the possibility that the hedging instruments chosen may not always provide effective mitigation of the
underlying price risk. The hedging instruments available to the marketing businesses may differ in specific characteristics to the risk
exposure to be hedged, resulting in an ongoing and unavoidable basis risk exposure. Residual basis risk exposures represent a key
focus point for Glencore’s commodity department teams who actively engage in the management of such.
Value at risk
One of the tools used by Glencore to monitor and limit its primary market risk exposure, principally commodity price risk related to
its physical marketing activities, is a value at risk (VaR) computation. VaR is a risk measurement technique which estimates a
threshold for potential loss that could occur on risk positions as a result of movements in risk factors over a specified time horizon,
given a specific level of confidence and based on a specific price history. The VaR methodology is a statistically defined, probability-
based approach that takes into account market volatilities, as well as risk diversification by recognising offsetting positions and
correlations between commodities and markets. In this way, risks can be measured consistently across markets and commodities
and risk measures can be aggregated to derive a single risk value.
Glencore uses a VaR approach based on Monte Carlo simulations computed at a 95% confidence level and utilising a weighted data
history for a one-day time horizon. Glencore’s Board has set a consolidated VaR limit (one day 95% confidence level) of $150 million
(2020: $100 million) representing less than 0.4% of total equity, which the Board reviews annually. Given 2021’s elevated implied
market volatilities, together with statistically higher commodity correlations and the nature / extent (e.g. increased size and tenor of
LNG business) of transaction volumes, the Board approved an increase in the VaR limit in H2 2021, initially to $130 million on a
temporary basis and then to $150 million going forward, with effect from 1 January 2022.
Position sheets are regularly distributed and monitored and daily Monte Carlo simulations are applied to the various business
groups’ net marketing positions to determine potential losses.

27. Financial and capital risk management continued
Market risk VaR (one-day 95% confidence level) ranges and year-end positions were as follows:

Year-end position 72 33
Average during the year 54 39
High during the year 126 102
Low during the year 27 14
VaR does not purport to represent actual gains or losses in fair value in earnings to be incurred by Glencore, nor does Glencore claim
that these VaR results are indicative of future market movements or representative of any actual impact on its future results. VaR
should always be viewed in the context of its limitations; notably, the use of historical data as a proxy for estimating future events,
market illiquidity risks and tail risks. Glencore recognises these limitations, and thus complements and continuously refines its VaR
analysis by analysing forward looking stress scenarios, benchmarking against an alternative VaR computation based on historical
simulations and back testing calculated VaR against the hypothetical portfolio returns arising in the next business day.
Glencore’s VaR computation currently covers its business in the key base metals (including aluminium, nickel, zinc, copper and
lead), coal, iron ore and oil/natural gas/LNG and assesses the open priced positions which are subject to price risk, including
inventories of these commodities. Due to the lack of a liquid terminal market, Glencore does not include a VaR calculation for
products such as alumina, molybdenum, freight and some risk associated with metals’ concentrates as it does not consider the
nature of these markets to be suited to this type of analysis. Alternative measures are used to monitor exposures related to these
products.
Net present value at risk

Glencore’s future cash flows related to its forecast Industrial production activities are also exposed to commodity price movements.
Glencore manages this exposure through a combination of portfolio diversification, occasional shorter-term hedging via futures and
options transactions, insurance products and continuous internal monitoring, reporting and quantification of the underlying
operations’ estimated cash flows and valuations.
Interest rate risk

Glencore is exposed to various risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its
assets and liabilities and cash flows. Matching of assets and liabilities is utilised as the dominant method to hedge interest rate risks;
other methods include the use of interest rate swaps and similar derivative instruments with the same critical terms as the
underlying interest rate exposures. See details on swap instruments used below.
Floating rate debt which is predominantly used to fund fast turning working capital (interest is internally charged on the funding of
this working capital) is primarily based on US$ LIBOR plus an appropriate premium. Accordingly, prevailing market interest rates are
continuously factored into transactional pricing and terms.
Assuming the amount of floating rate liabilities at the reporting period end were outstanding for the whole year, interest rates were
50 basis points higher/lower and all other variables held constant, Glencore’s income for the year ended 31 December 2021 would
decrease/increase by $98 million (2020: $112 million).
Interest rate benchmark reform
Whereas initially the UK FCA announced that they would not compel the 20 panel banks to submit into the LIBOR interest rate
setting mechanism by the end of 2021, in November 2020 they issued a revised timetable, with the consequence that overnight, 1, 3
and 6 month USD LIBOR’s will continue to be quoted until 30 June 2023.
To cater for the envisaged transition of interest rate hedging arrangements, which have an accelerated timetable, the Group has
already agreed to align with the ISDA fall-back protocol. Therefore, all existing and new derivative arrangements referencing LIBORs,
will be amended in line with the timelines and announcements made by regulators in the respective currency jurisdiction.
The Group has additionally established a multidisciplinary working group, to prepare and implement a LIBOR transition plan. This
working group is assessing on an ongoing basis the potential impact of LIBOR reform. This transition plan includes updating
policies, systems and processes, in order to anticipate the appropriate changes as and when deemed necessary.
During the year, the Group already also transitioned some of its non-derivative contractual exposures from LIBOR based to
alternative fixed rates. However the Group’s remaining non-derivative LIBOR linked contracts do not yet include adequate and
robust fall-back provisions for cessation of the referenced benchmark interest rate.
The Group continues to monitor the market and the output from various industry groups managing the transition to new
benchmark interest rates, and will look to implement a new benchmark, which is expected to be based broadly around the US
Secured Overnight Financing Ratee (SOFR), or at the very least, implement robust fall-back language for different instruments and
LIBORs, when appropriate.

The following table sets out the hedging relationships as at 31 December 2021, which include IBOR benchmarks and are yet to be
transitioned to risk-free rate benchmarks.
Carrying amount
Interest rate
US$ million Notional Assets Liabilities benchmark Hedged item Hedge relationship
Hedging instruments
Interest rate swaps 4,950 224 (11) LIBOR US$ bonds Fair value hedge
Cross-currency interest rate swaps 4,792 110 (284) LIBOR EMTN Fair value hedge
Basis swaps 9,142 3 – LIBOR US$ bonds/EMTN Fair value hedge
Non-derivative financial liabilites – – –
Committed syndicated revolving
LIBOR
credit facilities1 – – (2,543)
Secured facilities1 – – (120) LIBOR
1 See note 21.
Currency risk
The U.S. dollar is the predominant functional currency of the Group. Currency risk is the risk of loss from movements in exchange
rates related to transactions and balances in currencies other than the U.S. dollar. Such transactions include operating expenditure,
capital expenditure and to a lesser extent purchases and sales in currencies other than the functional currency. Purchases or sales of
commodities concluded in currencies other than the functional currency, apart from certain limited domestic sales at industrial
operations which act as a hedge against local operating costs, are ordinarily economically hedged through forward exchange
contracts. Consequently, foreign exchange movements against the U.S. dollar on recognised transactions would have an immaterial
financial impact. Glencore enters into currency hedging transactions with leading financial institutions.
Glencore’s debt related payments (both principal and interest) are primarily denominated in or swapped using hedging
instruments into U.S. dollars. Glencore’s operating expenses, being a small portion of its revenue base, are incurred in a mix of
currencies of which the U.S. dollar, Swiss Franc, Pound Sterling, Canadian dollar, Australian dollar, Euro, Kazakhstan Tenge,
Colombian Peso and South African Rand are the predominant currencies.
Glencore has issued Euro, Swiss Franc, Sterling and Yen denominated bonds (see note 21). Cross currency swaps were concluded to
hedge the currency risk on the principal and related interest payments of these bonds. These contracts were designated as fair
value or cash flow hedges of the associated foreign currency risks. The critical terms of these swap contracts and their
corresponding hedged items are matched and the Group expects a highly effective hedging relationship with the swap contracts
and the value of the corresponding hedged items to change systematically in opposite direction in response to movements in the
underlying exchange rates. The corresponding fair value and notional amounts of these derivatives is as follows:
Carrying amount Carrying amount

Average FX Assets Liabilities Average
Notional amounts rates (Note 29) (Note 29) maturity1
US$ million 2021 2020 2021 2020 2021 2020 2021 2020
Cross currency swap agreements
Cash flow hedges - currency risk
Eurobonds 2,907 2,907 1.14 1.14 3 164 42 – 2025
Sterling bonds 798 798 1.60 1.60 – – 129 126 2022
Swiss franc bonds 504 504 1.06 1.06 12 16 – – 2026
Fair value hedges - currency and interest
rate risk
Eurobonds 3,947 4,323 1.22 1.27 67 232 285 120 2027
Yen bonds 81 81 0.01 0.01 5 16 – – 2022
Sterling bonds 663 663 1.33 1.33 33 81 – – 2026
Swiss franc bonds 347 440 1.07 1.04 11 48 5 – 2026
9,247 9,716 131 557 461 246
Interest rate swap agreements
Fair value hedges - interest rate risk
US$ bonds 6,450 5,250 – – 272 525 12 4 2026
15,697 14,966 403 1,082 473 250
1 Refer to note 21 for details.

The gross liquidity risk relating to the above cross currency swaps entered into for the purposes of hedging foreign currency and
interest rate risks arising from the Group’s non-U.S. dollar denominated bonds is presented below. The amounts reflect the expected
gross settlement of the U.S. dollar pay leg of these swaps. The inflows from the related foreign currency receive leg of these swaps
are not presented in the below table, but would approximate the foreign currency equivalent of the US dollar pay leg. Counterparty
settlement date risk related to these swaps is limited, as the Group has entered into margining arrangements for both the outflow
and inflow legs of the swap.
US$ million After 5 years Due 3 - 5 years Due 2 - 3 years Due 1 - 2 years Due 0 - 1 year Total
2021 3,088 3,242 1,034 1,895 1,109 10,368
2020 3,381 2,123 1,823 1,970 1,305 10,602
The carrying amounts of the fair value hedged items are as follows:
Of which,
Carrying amount of the accumulated
hedged item amount of fair value
(Note 21) hedge adjustments
US$ million 2021 2020 2021 2020
Foreign exchange and interest rate risk
Eurobonds 3,672 4,372 (255) 56
Yen bonds 87 97 5 16
Swiss franc bonds 354 486 38 45
Sterling bonds 677 724 22 64
US$ bonds 6,638 5,702 226 489
11,428 11,381 36 670
Credit risk
Credit risk arises from the possibility that counterparties may not be able to settle obligations due to Glencore within their agreed
payment terms. Financial assets which potentially expose Glencore to credit risk consist principally of cash and cash equivalents,
receivables and advances, derivative instruments and non-current advances and loans. Glencore’s credit management process
includes the assessment, monitoring and reporting of counterparty exposure on a regular basis. Glencore’s cash and cash
equivalents are placed overnight with a diverse group of highly credit rated financial institutions. Margin calls paid are similarly held
with credit rated financial institutions. Glencore determines these instruments to have low credit risk at the reporting date. Credit
risk with respect to receivables and advances is mitigated by the large number of customers comprising Glencore’s customer base,
their diversity across various industries and geographical areas, as well as Glencore’s policy to mitigate these risks through letters of
credit, netting, collateral and insurance arrangements where appropriate. Additionally, it is Glencore’s policy that transactions and
activities in trade related financial instruments be concluded under master netting agreements or long form confirmations to
enable offsetting of balances due to/from a common counterparty in the event of default by the counterparty. Glencore actively and
continuously monitors the credit quality of its counterparties through internal reviews and a credit scoring process, which includes,
where available, public credit ratings. Balances with counterparties not having a public investment grade or equivalent internal
rating are typically enhanced to investment grade through the extensive use of credit enhancement products, such as letters of
credit or insurance products. Glencore has a diverse customer base, with no customer representing more than 4.7% (2020: 5.1%) of its
trade receivables (on a gross basis taking into account credit enhancements) or accounting for more than 3.6% of its revenues over
the year ended 31 December 2021 (2020: 3.1%)(see notes 3 and 14).
The maximum exposure to credit risk (including performance risk – see below), without considering netting agreements or without
taking account of any collateral held or other credit enhancements, is equal to the carrying amount of Glencore’s financial assets
(see note 28) and physically-settled advances (see notes 12 and 14).
Management information used to monitor credit risk indicates that the prima facie risk profile % categories of financial assets which
are subject to review for impairment under IFRS 9, is as set out below. Total balance for those assets as at 31 December 2021 is
$10,765 million (2020: $6,828 million) (see notes 12, 14 and 15).

in % 2021 2020
AAA to AA- 8 10
A+ to A- 59 47
BBB+ to BBB- 11 23
BB+ to BB- 3 2
B+ to B- 8 8
CCC+ and below 11 10
Movements in credit losses for accounts receivable and advances and loans are shown in notes 12 and 14.
Performance risk
Performance risk (part of the broader credit risk subject matter, discussed above) is inherent in contracts, with agreements in the
future, to physically purchase or sell commodities with fixed price attributes, and arises from the possibility that counterparties may
not be willing or able to meet their future contractual physical sale or purchase obligations to/from Glencore. Glencore undertakes
the assessment, monitoring and reporting of performance risk within its overall credit management process. Glencore’s market
breadth, diversified supplier and customer base as well as the standard pricing mechanism in the vast majority of Glencore’s
commodity portfolio which does not fix the primary commodity price beyond three months, ensure that performance risk is
adequately mitigated. The commodity industry has trended towards shorter term fixed price contract periods, in part to mitigate
against such potential performance risk, but also due to the continuous development of transparent and liquid spot commodity
markets, with their associated derivative products and indexes.
Liquidity risk
Liquidity risk is the risk that Glencore is unable to meet its payment obligations when due, or that it is unable, on an ongoing basis,
to borrow funds in the market on an unsecured or secured basis at an acceptable price to fund actual or proposed commitments.
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and availability of adequate
committed funding facilities. Glencore has set itself an internal minimum liquidity target to maintain at all times, including via
available committed undrawn credit facilities, of $3 billion (2020: $3 billion), which has purposely been substantially exceeded in
recent years, accounting for the more volatile market backdrop. Glencore’s credit profile, diversified funding sources and committed
credit facilities, ensure that sufficient liquid funds are maintained to meet its liquidity requirements. As part of its liquidity
management, Glencore closely monitors and plans for its future capital expenditure, working capital needs and proposed
investments, as well as credit facility refinancing/extension requirements, well ahead of time (see notes 1, 12, 21, 22 and 25).
As at 31 December 2021, Glencore had available committed undrawn credit facilities and cash amounting to $10,296 million (2020:
$10,259 million), refer to Other reconciliations section. The maturity profile of Glencore’s financial liabilities based on the contractual
terms is as follows:
2021
Borrowings excluding lease liabilities, fair value
hedge adjustments and other non-hedged 10,310 6,365 3,014 6,106 7,496 33,291
items
Expected future interest payments 3,219 861 547 716 830 6,173
Lease liabilities - undiscounted 730 257 209 345 596 2,137
Accounts payable – – – – 26,945 26,945
Other financial liabilities 195 131 21 32 5,850 6,229
Total 14,454 7,614 3,791 7,199 41,717 74,775
Current assets 57,776 57,776
2020
Borrowings excluding lease liabilities, fair value
hedge adjustments and other non-hedged 8,473 6,306 3,536 9,215 7,814 35,344
items
Expected future interest payments 2,415 782 550 690 846 5,283
Lease liabilities - undiscounted 592 209 209 378 593 1,981
Accounts payable – – – – 22,377 22,377
Other financial liabilities 381 52 31 53 4,200 4,717
Total 11,861 7,349 4,326 10,336 35,830 69,702
Current assets 43,212 43,212

28. Financial instruments
Fair value of financial instruments

The following tables present the carrying values and fair values of Glencore’s financial instruments. Fair value is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (most advantageous) market at the
measurement date under current market conditions. Where available, market values have been used to determine fair values.
When market values are not available, fair values have been calculated by discounting expected cash flows at prevailing market
interest and exchange rates. The estimated fair values have been determined using market information and appropriate valuation
methodologies, but are not necessarily indicative of the amounts that Glencore could realise in the normal course of business.
The financial assets and liabilities are presented by class in the tables below at their carrying values, which generally approximate
the fair values with the exception of $33,023 million (2020: $35,958 million) of borrowings, the fair value of which at 31 December 2021
was $34,169 million (2020: $37,150 million) based on observable market prices applied only to the listed portion of the borrowing
portfolio (a Level 2 fair value measurement).
2021 Amortised
US$ million cost FVTPL1 FVTOCI2 Total
Assets
Other investments (see note 29) – – 1,620 1,620
Non-current other financial assets (see note 29) – 458 – 458
Advances and loans (see note 12) 795 163 – 958
Accounts receivable (see note 14) 11,672 5,523 – 17,195
Other financial assets (see note 29) – 4,636 – 4,636
Cash and cash equivalents (see note 15) 3,241 – – 3,241
Total financial assets 15,708 10,780 1,620 28,108
Liabilities
Borrowings (see note 21) 34,641 – – 34,641
Non-current other financial liabilities (see note 29) 87 623 – 710
Accounts payable (see note 25) 13,139 13,806 – 26,945
Other financial liabilities (see note 29) – 6,077 – 6,077
Total financial liabilities 47,867 20,506 – 68,373
1 FVTPL – Fair value through profit and loss.
2 FVTOCI – Fair value through other comprehensive income.
2020 Amortised
US$ million cost FVTPL1 FVTOCI2 Total
Assets
Other investments (see note 29) – 86 1,647 1,733
Non-current other financial assets (see note 29) – 1,106 – 1,106
Advances and loans (see note 12) 994 404 – 1,398
Accounts receivable (see note 14) 7,696 4,598 – 12,294
Other financial assets (see note 29) – 1,998 – 1,998
Cash and cash equivalents (see note 15) 1,498 – – 1,498
Total financial assets 10,188 8,192 1,647 20,027
Liabilities
Borrowings (see note 21) 37,479 – – 37,479
Non-current other financial liabilities (see note 29) 100 588 – 688
Accounts payable (see note 25) 11,113 11,264 – 22,377
Other financial liabilities (see note 29) – 4,276 – 4,276
Total financial liabilities 48,692 16,128 – 64,820
1 FVTPL – Fair value through profit and loss.
2 FVTOCI – Fair value through other comprehensive income.

28. Financial instruments continued
Offsetting of financial assets and liabilities

In accordance with IAS 32 the Group reports financial assets and liabilities on a net basis in the consolidated statement of financial
position only if there is a legally enforceable right to set off the recognised amounts and there is intention to settle on a net basis, or
to realise the asset and settle the liability simultaneously. The financial assets and liabilities subject to offsetting, enforceable master
netting and similar agreements as at 31 December 2021 and 2020 were as follows:
Total as
presented
in the
Amounts eligible for set off Related amounts not set off Amounts consolidated
under netting agreements under netting agreements not subject statement
2021 Gross Amounts Net Financial Financial Net to netting of financial
US$ million amount offset amount instruments collateral amount agreements position
Derivative assets1 19,327 (17,846) 1,481 (437) (315) 729 3,613 5,094
Derivative liabilities1 (22,166) 17,846 (4,320) 437 3,522 (361) (2,467) (6,787)
1 Presented within current and non-current other financial assets and other financial liabilities.
Total as
presented
in the
Amounts eligible for set off Related amounts not set off Amounts consolidated
under netting agreements under netting agreements not subject statement
2020 Gross Amounts Net Financial Financial Net to netting of financial
US$ million amount offset amount instruments collateral amount agreements position
Derivative assets1 11,575 (9,678) 1,897 (246) (925) 726 1,207 3,104
Derivative liabilities1 (12,941) 9,678 (3,263) 246 2,389 (628) (1,701) (4,964)
1 Presented within current and non-current other financial assets and other financial liabilities.
For the financial assets and liabilities subject to enforceable master netting or similar arrangements above, each agreement
between the Group and the counterparty allows for net settlement of the relevant financial assets and liabilities in the ordinary
course of business. Where practical reasons may prevent net settlement, financial assets and liabilities may be settled on a gross
basis, however, each party to the master netting or similar agreement will have the option to settle all such amounts on a net basis
in the event of default of the other party. Per the terms of each agreement, an event of default includes failure by a party to make
payment when due, failure by a party to perform any obligation required by the agreement (other than payment) if such failure is
not remedied within periods of 30 to 60 days after notice of such failure is given to the party or bankruptcy.
29. Fair value measurements
Fair values are primarily determined using quoted market prices or standard pricing models using observable market inputs where
available and are presented to reflect the expected gross future cash in/outflows. Glencore classifies the fair values of its financial
instruments into a three level hierarchy based on the degree of the source and observability of the inputs that are used to derive the
fair value of the financial asset or liability as follows:
Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that Glencore can assess at the
measurement date; or
Level 2 Inputs other than quoted inputs included in Level 1 that are observable for the assets or liabilities, either directly or
indirectly; or
Level 3 Unobservable inputs for the assets or liabilities, requiring Glencore to make market-based assumptions.
Level 1 classifications primarily include futures with a tenor of less than one year and options that are exchange traded, whereas
Level 2 classifications primarily include futures with a tenor greater than one year, over the counter options, swaps and physical
forward transactions which derive their fair value primarily from exchange quotes and readily observable broker quotes. Level 3
classifications primarily include physical forward transactions which derive their fair value predominantly from models that use
broker quotes and applicable market-based estimates surrounding location, quality and credit differentials and financial liabilities
linked to the fair value of certain mining operations. In circumstances where Glencore cannot verify fair value with observable
market inputs (Level 3 fair values), it is possible that a different valuation model could produce a materially different estimate of fair
value.

29. Fair value measurements continued
It is Glencore’s policy that transactions and activities in trade related financial instruments be concluded under master netting
agreements or long form confirmations to enable balances due to/from a common counterparty to be offset in the event of default,
insolvency or bankruptcy by the counterparty.
The following tables show the fair values of the derivative financial instruments including trade related financial and physical
forward purchase and sale commitments by type of contract and non-current other financial assets and liabilities as at 31 December
2021 and 2020. Other assets and liabilities which are measured at fair value on a recurring basis are marketing inventories, other
investments, cash and cash equivalents. There are no non-recurring fair value measurements.
Financial assets
2021
US$ million Level 1 Level 2 Level 3 Total
Financial assets
Accounts receivable (see note 14) – 5,269 175 5,444
Deferred consideration (see note 12) – – 135 135
Other investments (see note 11) 1,536 84 – 1,620
Financial assets 1,536 5,353 310 7,199
Other financial assets
Commodity related contracts
Futures 180 118 – 298
Options 133 31 – 164
Swaps 256 254 40 550
Physical forwards – 2,878 646 3,524
Financial contracts
Cross currency swaps – 5 – 5
Foreign currency and interest rate contracts – 95 – 95
Current other financial assets (see note 28) 569 3,381 686 4,636
Non-current other financial assets
Purchased call options over Glencore shares1 – 61 – 61
Non-current other financial assets (see note 28) – 458 – 458
Total 2,105 9,192 996 12,293
2020
Financial assets
Accounts receivable (see note 14) – 4,468 130 4,598
Deferred consideration (see note 12) – – 302 302
Other investments (see note 11) 1,691 42 – 1,733
Financial assets 1,691 4,510 432 6,633
Other financial assets
Futures 107 75 – 182
Options 19 13 – 32
Swaps 142 249 – 391
Physical forwards – 916 258 1,174
Financial contracts
Current other financial assets (see note 28) 268 1,472 258 1,998
Non-current other financial assets
Purchased call options over Glencore shares1 – 8 – 8
Non-current other financial assets (see note 28) – 1,106 – 1,106
Total 1,959 7,088 690 9,737
1 Call options over the Company’s shares in relation to conversion rights of the $500 million non-dilutive convertible bond, due in 2025.

Financial liabilities
2021
Accounts payable (see note 25) – 13,806 – 13,806
Current financial liabilities – 13,806 – 13,806
Other financial liabilities
Futures 1,993 344 – 2,337
Options 52 92 – 144
Swaps 999 175 – 1,174
Physical forwards – 1,872 235 2,107
Financial contracts
Current other financial liabilities (see note 28) 3,044 2,798 235 6,077
Non-current other financial liabilities
Non-discretionary dividend obligation1 – – 148 148
Option over non-controlling interest in Ale – – 22 22
Deferred consideration – – 49 49
Embedded call options over Glencore shares2 – 61 – 61
Non-current other financial liabilities (see note 28) – 404 219 623
Total 3,044 17,008 454 20,506
2020
Accounts payable (see note 25) – 11,264 – 11,264
Current financial liabilities – 11,264 – 11,264
Other financial liabilities
Futures 2,652 264 – 2,916
Options 29 14 – 43
Swaps 228 224 – 452
Physical forwards – 537 252 789
Financial contracts
Current other financial liabilities (see note 28) 2,909 1,115 252 4,276
Non-current other financial liabilities
Non-discretionary dividend obligation1 – – 150 150
Option over non-controlling interest in Ale – – 22 22
Deferred consideration – – 56 56
Embedded call options over Glencore shares2 – 8 – 8
Non-current other financial liabilities (see note 28) – 360 228 588
Total 2,909 12,739 480 16,128
1 A ZAR denominated derivative liability payable to ARM Coal, a partner in one of the Group’s principal coal joint operations based in South Africa. The liability arises from ARM Coal’s
rights as an investor to a share of agreed free cash flows from certain coal operations in South Africa and is valued based on those cash flows using a risk-adjusted discount rate. The
derivative liability is settled over the life of those operations (modelled mine life of 11 years as at 31 December 2021) and has no fixed repayment date and is not cancellable within 12
months.
2 Embedded call option bifurcated from the 2025 convertible bond.

The following table shows the net changes in fair value of Level 3 other financial assets and other financial liabilities:
Accounts Physical Total

US$ million Receivable forwards Swaps Other Level 3
1 January 2021 130 6 – 74 210
Total gain recognised in revenue – 117 337 – 454
Total gain/(loss) recognised in cost of goods sold – 389 (297) – 92
Non-discretionary dividend obligation – – – 2 2
Fair value movement of deferred consideration 186 – – (160) 26
Realised (141) (101) – – (242)
31 December 2021 175 411 40 (84) 542
1 January 2020 37 109 – (211) (65)

Total gain recognised in revenue – 1 – – 1
Total loss recognised in cost of goods sold – (63) – – (63)
Non-discretionary dividend obligation – – – 11 11
Option over non-controlling interest – – – 14 14
Fair value movement of deferred consideration 133 – – 260 393
Realised (40) (41) – – (81)
31 December 2020 130 6 – 74 210
During the year, no amounts were transferred between Level 1 and Level 2 of the fair value hierarchy and no amounts were
transferred into or out of Level 3 of the fair value hierarchy for either other financial assets or other financial liabilities.
Fair value of financial assets / financial liabilities

Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period.
Futures, options and swaps classified as Level 1 financial assets and liabilities are measured using quoted prices in an active market.
Accounts receivable and payables, and certain futures, options, swaps, physical forwards, cross currency swaps, foreign currency and
interest rate contracts classified as Level 2 financial assets and liabilities are measured using discounted cash flow models. Key
inputs include observable quoted prices sourced from exchanges or traded reference indices in active markets for identical assets or
liabilities. Prices are adjusted by a discount rate which captures the time value of money and counterparty credit considerations, as
required.
Call options over Glencore shares classified as Level 2 financial assets and liabilities are measured using an option pricing model. Key
inputs include the current price of Glencore shares, strike price, maturity date of the underlying convertible debt security, risk-free
rate and volatility.
The following table provides information on the valuation techniques and inputs used to determine the fair value of Level 3 financial
assets and financial liabilities.


Swaps – Level 3 Assets 40 –
Liabilities – –
Valuation techniques and key inputs: Discounted cash flow model
Significant and other unobservable inputs: - Long term commodity prices
The significant unobservable inputs represent the long-term commodity prices to which the
valuation remains sensitive to. A 10% increase/decrease in commodity price assumptions
would result in a $4 million adjustment to the current carrying value.
Physical Forwards – Level 3 Assets 646 258
Liabilities (235) (252)
Significant and other unobservable inputs: Valuation of the Group’s commodity physical forward contracts categorised within
this level is based on observable market prices that are adjusted by unobservable differentials,
as required, including:
– Quality;
– Geographic location;
– Local supply & demand;
– Customer requirements; and
– Counterparty credit considerations.
These unobservable inputs generally represent 1%–30% of the overall value of the instruments.
The valuation prices are applied consistently to value physical forward sale and purchase
contracts, and changing a particular input to reasonably possible alternative assumptions does
not result in a material change in the underlying value of the portfolio.
Deferred consideration (Mototolo) – Level 3 Assets 282 391
Liabilities – –
Significant and other unobservable inputs: – Long-term forecast commodity prices;
– Discount rates using weighted average cost
of capital methodology;
The significant unobservable inputs represent the long-term forecast commodity prices to
which the valuation remains sensitive to. A 10% increase/decrease in commodity price
assumptions would result in a $27 million adjustment to the current carrying value.
Deferred consideration (Orion) – Level 3 Assets 28 41
Liabilities – –
Significant and other unobservable inputs: – Estimated production plan;
– Long-term forecast commodity prices;
– Discount rates using weighted average cost
of capital methodology;
The significant unobservable inputs represent the long-term forecast commodity prices to
which the valuation remains sensitive to. A 10% increase/decrease in gold price would result in
no adjustment to the current carrying value of the asset, while a 10% decrease in gold price
would result in a $9 million negative adjustment


Non-discretionary dividend obligation – Level 3 Assets – –
Valuation
techniques: Discounted cash flow model
Significant and
other unobservable
inputs: – Long-term forecast commodity prices;
– Discount rates using weighted average cost of capital methodology;
– Production models;
– Operating costs; and
– Capital expenditures.
The resultant liability is essentially a discounted cash flow valuation of the underlying mining operation.
Increases/decreases in forecast commodity prices will result in an increase/decrease to the value of the liability though
this will be partially offset by associated increases/decreases in the assumed production levels, operating costs and capital
expenditures, which are inherently linked to forecast commodity prices. The significant unobservable inputs represent
the long-term forecast commodity prices to which the valuation remains sensitive to. A 10% increase/decrease in
commodity price assumptions would result in an $94 million adjustment to the current carrying value.
Option over non-controlling interest in Ale – Level 3 Assets – –
Valuation
techniques and key
inputs: Discounted cash flow model
Significant The resultant liability is the value of the remaining minority stake in the subsidiary, measured as the higher value of the
unobservable acquisition date valuation of the shares, and a discounted future earnings based valuation. The valuation is additionally
inputs: sensitive to movement in the spot exchange rates between the Brazilian Real and US Dollar.

30. Auditor’s remuneration

Remuneration in respect of the audit of Glencore's consolidated financial statements 3 3
Other audit fees, primarily in respect of audits of accounts of subsidiaries 19 19
Audit-related assurance services1 3 2
Total audit and related assurance fees 25 24
Transaction services – 1
Taxation compliance services – 1
Other taxation advisory services – 1
Other assurance services2 1 1
Total non-audit fees 1 4
Total professional fees 26 28
1 Audit-related assurance services primarily related to interim reviews of the Group’s half-year accounts as well as bond issuances and comfort letters.
2 Other assurance services primarily comprises assurance in respect of certain aspects of the Group’s sustainability reporting.
31. Future commitments
Capital expenditure for the acquisition of property, plant and equipment is generally funded through the cash flow generated by
the respective industrial entities. As at 31 December 2021, $1,111 million (2020: $859 million), of which 86% (2020: 87%) relates to
expenditure to be incurred over the next year, was contractually committed for the acquisition of property, plant and equipment.
Certain of Glencore’s exploration tenements and licences require it to spend a minimum amount per year on development
activities, a significant portion of which would have been incurred in the ordinary course of operations. As at 31 December 2021,
$118 million (2020: $128 million) of such development expenditures are to be incurred, of which 27% (2020: 27%) are for commitments
to be settled over the next year.
As part of Glencore’s ordinary sourcing and procurement of physical commodities and other ordinary marketing obligations, the
selling party may request that a financial institution act as either a) the paying party upon the delivery of product and qualifying
documents through the issuance of a letter of credit or b) the guarantor by way of issuing a bank guarantee accepting responsibility
for Glencore’s contractual obligations. Similarly, Glencore is required to post rehabilitation and pension guarantees in respect of
some of these future, primarily industrial, long-term obligations. As at 31 December 2021, $8,965 million (2020: $6,334 million) of
procurement and $4,353 million (2020: $4,138 million) of rehabilitation and pension commitments have been issued on behalf of
Glencore, which will generally be settled simultaneously with the payment for such commodity and rehabilitation and pension
obligations.
Astron related commitments

As part of the regulatory approval process relating to the acquisition of a 75% shareholding in Astron Energy, Glencore and Astron
Energy entered into certain commitments (subject to variation for good cause) with the South Africa Competition Tribunal and the
South African Economic Development Department. These commitments include investment expenditure of up to ZAR 6.5 billion
($410 million) over the period to 2024 so as to debottleneck and improve the performance of the Cape Town oil refinery, contribute
to the rebranding of certain retail sites and establish a development fund to support small and black-owned businesses in Astron
Energy’s value chain.
Cerrejon acquisition commitments

In June 2021, Glencore entered into agreements to acquire the remaining 66.67% interest in the Cerrejón joint venture that it does
not own. The transaction closed in January 2022, refer to note 35. The purchase price consideration of $588 million was based on an
economic effective date of 31 December 2020 then being subject to purchase price adjustments calculated at closing. After taking
into account the dividends generated during 2021, together with certain other adjustments, the completion cash payment by
Glencore amounted to $101 million.

32. Contingent liabilities
There were no corporate guarantees in favour of third parties as at 31 December 2021 (2020: None), except those disclosed in note 11.
The Group is subject to various legal and regulatory proceedings as detailed below. These contingent liabilities are reviewed on a
regular basis and where appropriate an estimate is made of the potential financial impact on the Group. As at 31 December 2021 and
2020, it was not feasible to make such an assessment.
Legal and regulatory proceedings

Under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, a provision is recognised when Glencore has a present
obligation (legal or constructive), as a result of a past event, and it is probable that an outflow of resources embodying economic
benefits, that can be reliably estimated, will be required to settle the liability. A contingent liability is a possible obligation that arises
from a past event and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of Glencore. If it is not clear whether there is a present obligation, a past event is deemed to give
rise to a present obligation if, taking account of all available evidence, it is more likely than not that a present obligation exists at the
end of the reporting period. When a present obligation arises but it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient
reliability, a contingent liability is disclosed.
Investigations by regulatory and enforcement authorities

As described in note 23 the Group is subject to various legal and regulatory proceedings and as at December 2021 a provision for
certain of these matters of $1,500 million has been recognised.
At 31 December 2021, taking account of all available evidence, the Committee concluded that, with respect only to the OAG and
Dutch investigations, it is not probable that a present obligation existed at the end of the reporting period. In addition, the timing
and amount, if any, of the possible financial effects (such as fines, penalties or damages, which could be material) or other
consequences, including external costs, from the OAG and Dutch investigations and any change in their scope are not currently
possible to predict or estimate.
In addition to any pending investigations as described, other authorities may commence investigations or bring proceedings
against the Group in connection with the matters under investigation and the Group may be the subject of legal claims brought by
other parties in connection with these matters, including class action suits. Taking into account all available evidence, the
Committee does not consider it probable that a present obligation existed in relation to these potential additional investigations or
claims as at the balance sheet date, and the amount of any financial effects, which could be material, is not currently possible to
predict or estimate.
Other legal proceedings

Other claims and unresolved disputes are pending against Glencore. However, based on the Group’s current assessment of these
matters any future individually material financial obligations are considered to be remote.
Environmental contingencies
Glencore’s operations are subject to various environmental laws and regulations. Glencore is not aware of any material non-
compliance with those laws and regulations. Glencore accrues for environmental contingencies when such contingencies are
probable and reasonably estimable. Such accruals are adjusted as new information develops or circumstances change. Recoveries
of environmental remediation costs from insurance companies and other parties are recorded as assets when the recoveries are
virtually certain. At this time, Glencore is unaware of any material environmental incidents at its locations. Any potential liability
arising from environmental incidents in the ordinary course of the Group’s business would not usually be expected to have a
material adverse effect on its consolidated income, financial position or cash flows.
33. Related party transactions
In the normal course of business, Glencore enters into various arm’s length transactions with related parties, including fixed price
commitments to sell and to purchase commodities, forward sale and purchase contracts, agency agreements and management
service agreements. Outstanding balances at period end are unsecured and settlement occurs in cash (see notes 12, 14 and 25).
There have been no guarantees provided or received for any related party receivables or payables.
All transactions between Glencore and its subsidiaries are eliminated on consolidation along with any unrealised profits and losses
between its subsidiaries, associates and joint ventures. In 2021, sales and purchases with associates and joint ventures amounted to
$3,828 million (2020: $2,710 million) and $6,469 million (2020: $5,033 million) respectively.

33. Related party transactions continued
Remuneration of key management personnel

Glencore’s key management personnel are the members of the Board of Directors, CEO, CFO, General Counsel and Head of the
Industrial activities segment. The remuneration of Directors and other members of key management personnel recognised in the
consolidated statement of income including salaries and other current employee benefits amounted to $27 million (2020:
$19 million). Amounts expensed relating to long-term benefits or share-based payments to key management personnel amounted
to $1 million (2020: $Nil). Further details on remuneration of Directors are set out in the Directors’ remuneration report on page 101.
34. Principal subsidiaries with material non-controlling interests
Non-controlling interest is comprised of the following:

Volcan (106) (136)
Kazzinc 1,368 1,362
Koniambo (5,180) (4,098)
Kamoto Copper Company (KCC) 474 232
Mopani1 – (1,009)
Other2 430 414
Total (3,014) (3,235)
1 See note 26.
2 Other comprises various subsidiaries in which no individual balance attributable to non-controlling interests is material.

34. Principal subsidiaries with material non-controlling interests continued
Summarised financial information in respect of Glencore’s subsidiaries that have material non-controlling interest as at
31 December 2021 and 2020, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below.
US$ million Mopani1 Kazzinc Koniambo KCC Volcan

31 December 2021
Non-current assets – 4,210 434 5,266 1,796
Current assets – 1,515 461 1,135 400
Total assets – 5,725 895 6,401 2,196
Non-current liabilities – 721 13,822 9,313 980
Current liabilities – 480 104 804 789
Total liabilities – 1,201 13,926 10,117 1,769
Net assets – 4,524 (13,031) (3,716) 427
Equity attributable to owners of the Company – 3,156 (7,851) (4,190) 533
Non-controlling interest – 1,368 (5,180) 474 (106)
Non-controlling interest % 0.0% 30.3% 51.0% 25.0% 76.7%
2021
Revenue 125 3,502 242 3,899 981
Expenses (1,155) (2,940) (2,364) (2,820) (941)
Net (loss)/profit for the year (1,030) 562 (2,122) 1,079 40
(Loss)/profit attributable to owners of the Company (1,027) 392 (1,040) 837 9
(Loss)/profit attributable to non-controlling interests (3) 170 (1,082) 242 31
Total comprehensive (loss)/income for the year (1,030) 562 (2,122) 1,079 40
Dividends paid to non-controlling interests – (150) – – –
Net cash inflow/(outflow) from operating activities 56 837 (165) 1,708 318
Net cash outflow from investing activities (4) (318) (13) (301) (174)
Net cash (outflow)/inflow from financing activities (26) (394) 193 (1,294) (28)
Total net cash inflow 26 125 15 113 116
1 See note 26.
US$ million Mopani Kazzinc Koniambo KCC Volcan

31 December 2020
Non-current assets – 4,407 1,594 5,194 1,793
Current assets 1,083 1,167 307 1,668 293
Total assets 1,083 5,574 1,901 6,862 2,086
Non-current liabilities 4,601 737 12,719 9,983 1,350
Current liabilities 197 333 91 1,566 348
Total liabilities 4,798 1,070 12,810 11,549 1,698
Net assets (3,715) 4,504 (10,909) (4,687) 388
Equity attributable to owners of the Company (2,706) 3,142 (6,811) (4,919) 524
Non-controlling interest (1,009) 1,362 (4,098) 232 (136)
Non-controlling interest % 26.9% 30.3% 51.0% 25.0% 76.7%
2020
Revenue 731 3,032 239 2,431 547
Expenses (1,649) (2,418) (1,201) (2,080) (2,307)
Net (loss)/profit for the year (918) 614 (962) 351 (1,760)
(Loss)/profit attributable to owners of the Company (616) 428 (471) 256 (413)
(Loss)/profit attributable to non-controlling interests (302) 186 (491) 95 (1,347)
Total comprehensive (loss)/income for the year (918) 614 (962) 351 (1,760)
Dividends paid to non-controlling interests – (120) – – –
Net cash (outflow)/inflow from operating activities (19) 1,010 (194) 144 129
Net cash outflow from investing activities (84) (388) (36) (472) (117)
Net cash inflow/(outflow) from financing activities 103 (597) 233 146 67
Total net cash inflow/(outflow) – 25 3 (182) 79

35. Subsequent events
• On 11 January 2022, the Group completed the acquisition of the remaining 66.67% interest in Cerrejon that it did not own. The
purchase price consideration of $588 million was based on an economic effective date of 31 December 2020. After taking into
account the dividends generated during 2021, together with certain other adjustments, the completion cash payment made by
Glencore amounted to $101 million.
The acquisition increases Glencore’s total ownership to 100% providing it with the ability to exercise control. As a result, effective
the acquisition date, Glencore will fully consolidate Cerrejon which as at 31 December 2021 reported assets and liabilities of:
US$ million Cerrejón

Non-current assets 2,033
Current assets 1,030
Non-current liabilities (690)
Current liabilities (509)
Cash and cash equivalents 511
Current financial liabilities1 (27)
Non-current financial liabilities1 (14)
Net assets 31 December 2021 1,864
Due to the timing of the transaction, management is in the preliminary stages of determining fair values of the assets and
liabilities acquired and the associated accounting for the acquisition. Certain disclosures in terms of IFRS 3 relating to the business
combination such as the estimated fair value of net assets acquired have not been presented. Notwithstanding these
circumstances, should the above book value of net assets approximate fair value and, adjusting for the consideration paid and the
31 December 2021 carrying value of our 33.33% interest (see note 11), a gain on acquisition of some $1.2 billion could result.
• In February 2022, the Russian government commenced a war against the people of Ukraine, resulting in a humanitarian crisis and
significant disruption to financial and commodity markets. A number of countries, including, the United States of America,
European Union, Switzerland and United Kingdom imposed a series of sanctions against the Russian government, various
companies, and certain individuals. Glencore complies with all sanctions applicable to our business activities. As noted in our
announcement on 1 March 2022, we have no operational footprint in Russia and our trading exposure is not material. We are
reviewing all our business activities in the country including our equity stakes in En+ and Rosneft – refer note 11. As at close of
trading on 28 February 2022, the fair value of these equity investments was $645 million and $183 million respectively. On 3 March
2022, both companies were suspended from trading on the London Stock Exchange.

36. Principal operating, finance and industrial subsidiaries and investments
Country of % interest % interest

incorporation 2021 2020 Main activity
Principal subsidiaries
Cobar Management Pty Limited Australia 100.0 100.0 Copper production
Compania Minera Lomas Bayas Chile 100.0 100.0 Copper production
Complejo Metalurgico Altonorte S.A. Chile 100.0 100.0 Copper production
Compania Minera Antapaccay S.A. Peru 100.0 100.0 Copper production
Pasar Group Philippines 78.2 78.2 Copper production
Glencore Recycling Inc USA 100.0 100.0 Copper production
Mopani Copper Mines plc Zambia – 73.1 Copper production
Polymet Mining Corp. Canada 71.4 71.6 Copper production
Kamoto Copper Company SA1 DRC 75.0 75.0 Copper/Cobalt production
Mutanda Group DRC 100.0 100.0 Copper/Cobalt production
Mount Isa Mines Limited Australia 100.0 100.0 Copper/Zinc/Lead production
Kazzinc Ltd Kazakhstan 69.7 69.7 Copper/Zinc/Lead production
Zhairemsky GOK JSC Kazakhstan 69.7 69.7 Copper/Zinc/Lead production
Altyntau Kokshetau JSC Kazakhstan 69.7 69.7 Gold production
African Carbon Producers (Pty) Ltd South Africa 100.0 100.0 Char production
African Fine Carbon (Pty) Ltd South Africa 100.0 100.0 Char production
Char Technology (Pty) Ltd South Africa 100.0 100.0 Char production
Sphere Minerals Limited Australia 100.0 100.0 Iron Ore exploration
Britannia Refined Metals Limited UK 100.0 100.0 Lead production
Access World Group Switzerland 100.0 100.0 Logistics services
Murrin Murrin Operations Pty Limited Australia 100.0 100.0 Nickel production
Koniambo Nickel S.A.S.2 New Caledonia 49.0 49.0 Nickel production
Glencore Nikkelverk AS Norway 100.0 100.0 Nickel production
McArthur River Mining Pty Ltd Australia 100.0 100.0 Zinc production
Nordenhamer Zinkhütte GmbH Germany 100.0 100.0 Zinc production
Asturiana de Zinc S.A.U Spain 100.0 100.0 Zinc production
Volcan Companja Minera S.A.A.3 Peru 23.3 23.3 Zinc production
AR Zinc Group Argentina – 100.0 Zinc/Lead production
Portovesme S.r.L. Italy 100.0 100.0 Zinc/Lead production
Empresa Minera Los Quenuales S.A. Peru 97.6 97.6 Zinc/Lead production
Sinchi Wayra Group Bolivia 100.0 100.0 Zinc/Tin production
1 Refer to note 34.
2 The Group has control of Koniambo Nickel S.A.S. as a result of the ability to direct the key activities of the operation and to appoint key management personnel provided by the terms
of the financing arrangements underlying the Koniambo project.
3 The Group has control of Volcan Compania Minera S.A.A. as a result of the ability to control the entity through the voting of its 63.0% of the voting shares (Class A); the economic interest
is diluted by the outstanding non-voting shares (Class B).

36. Principal operating, finance and industrial subsidiaries and investments continued

Oakbridge Pty Limited Australia 98.2 83.0 Coal production
Rolleston Coal Holdings Pty Limited Australia 100.0 100.0 Coal production
Mangoola Coal Operations Pty Limited Australia 100.0 100.0 Coal production
Mt Owen Pty Limited Australia 100.0 100.0 Coal production
NC Coal Company Pty Limited Australia 100.0 100.0 Coal production
Ravensworth Operations Pty Ltd Australia 100.0 100.0 Coal production
Ulan Coal Mines Ltd Australia 100.0 100.0 Coal production
Prodeco group Colombia 100.0 100.0 Coal production
Izimbiwa Coal (Pty) Ltd4 South Africa 50.0 49.9 Coal production
Umcebo Mining (Pty) Ltd5 South Africa 48.7 48.7 Coal production
Tavistock Collieries (Pty) Ltd South Africa 100.0 100.0 Coal production
Glencore Exploration Cameroon Ltd Bermuda 100.0 100.0 Oil production
Glencore Exploration (EG) Ltd Bermuda 100.0 100.0 Oil production
Petrochad (Mangara) Limited Bermuda 100.0 100.0 Oil exploration/production
Astron Energy (Pty) Ltd South Africa 72.0 75.0 Oil refining / distribution
Astron Energy Botswana (Pty) Ltd Botswana 100.0 100.0 Oil distribution
Marketing activities and other operating and finance
Xstrata Limited UK 100.0 100.0 Holding
Glencore Australia Investment Holdings Pty Ltd Australia 100.0 100.0 Holding
Glencore Operations Australia Pty Limited Australia 100.0 100.0 Holding
Glencore Queensland Limited Australia 100.0 100.0 Holding
Glencore Investment Pty Ltd Australia 100.0 100.0 Holding
Glencore Australia Holdings Pty Ltd Australia 100.0 100.0 Finance
Glencore Finance (Bermuda) Ltd Bermuda 100.0 100.0 Finance
Alesat Combustiveis S.A. Brazil 88.0 88.0 Oil distribution
Topley Corporation B.V.I. 100.0 100.0 Ship owner
Glencore Finance (Europe) Limited Jersey 100.0 100.0 Finance
Glencore Capital Finance DAC Ireland 100.0 100.0 Finance
Finges Investment B.V. Netherlands 100.0 100.0 Finance
Glencore (Schweiz) AG Switzerland 100.0 100.0 Finance
Glencore Group Funding Limited UAE 100.0 100.0 Finance
Glencore Funding LLC USA 100.0 100.0 Finance
Glencore Australia Oil Pty Limited Australia 100.0 100.0 Operating
Glencore Canada Corporation Canada 100.0 100.0 Operating
Glencore Singapore Pte Ltd Singapore 100.0 100.0 Operating
ST Shipping & Transport Pte Ltd Singapore 100.0 100.0 Operating
Glencore AG Switzerland 100.0 100.0 Operating
Glencore International AG Switzerland 100.0 100.0 Operating
Glencore Commodities Ltd UK 100.0 100.0 Operating
Glencore Energy UK Ltd UK 100.0 100.0 Operating
Glencore UK Ltd UK 100.0 100.0 Operating
4 Glencore has the ability to exercise control over Izimbiwa through the ability to direct the key activities of the operations and to appoint key management personnel provided by the
terms of the shareholder’s agreement.
5 Although Glencore holds less than 50% of the voting rights, it has the ability to exercise control over Umcebo as a result of shareholder agreements which provide Glencore the ability
to control the Board of Directors.

36. Principal operating, finance and industrial subsidiaries and investments continued

Principal joint ventures6
Viterra Group Jersey 49.9 49.9 Agriculture business
Clermont Coal Joint Venture Australia 37.1 37.1 Coal production
BaseCore Metals LP Canada 50.0 50.0 Copper production
Compania Minera Dona Ines de Collahuasi Chile 44.0 44.0 Copper production
El Aouj Joint Venture Mauritania 50.0 50.0 Iron Ore production
Principal joint operation and other unincorporated
arrangement7
Bulga Joint Venture Australia 85.9 72.6 Coal production
Cumnock Joint Venture Australia 90.0 90.0 Coal production
Hail Creek Joint Venture Australia 84.7 84.7 Coal production
Hunter Valley Operations Joint Venture Australia 49.0 49.0 Coal production
Liddell Joint Venture Australia 67.5 67.5 Coal production
Oaky Creek Coal Joint Venture Australia 55.0 55.0 Coal production
United Wambo Joint Venture Australia 47.5 47.5 Coal production
ARM Coal (Pty) Ltd South Africa 49.0 49.0 Coal production
Goedgevonden Joint Venture South Africa 74.0 74.0 Coal production
Ernest Henry Mining Pty Ltd Australia 70.0 70.0 Copper production
Glencore Merafe Pooling and Sharing Joint Venture South Africa 79.5 79.5 Ferroalloys production
Rhovan Pooling and Sharing Joint Venture South Africa 74.0 74.0 Vanadium production
6 The principal joint arrangements are accounted for as joint ventures as the shareholder agreements do not provide the Group the ability to solely control the entities.
7 Classified as joint operations under IFRS 11, as these joint arrangements convey a direct right to a share of the underlying operations’ assets, liabilities, revenues and expenses. The Hail
Creek interest is an ‘other unincorporated arrangement’ accounted for similar to a joint operation.

Principal associates
Carbones del Cerrejon LLC Colombia 33.3 33.3 Coal production
Port Kembla Coal Terminal Limited Australia 16.4 13.9 Coal terminal
Newcastle Coal Shippers Pty Ltd Australia 50.2 35.7 Coal terminal
Wiggins Island Coal Export Terminal Australia 25.0 25.0 Coal terminal
Richards Bay Coal Terminal Company Limited South Africa 19.3 19.3 Coal terminal
Century Aluminum Company8 USA 46.4 47.0 Aluminium production
PT CITA Mineral Investindo Tbk Indonesia 31.7 30.2 Alumina production
HG Storage International Limited Jersey 49.0 49.0 Oil storage
Noranda Income Fund Canada 25.0 25.0 Zinc production
Trevali Mining Corporation Canada 26.3 26.3 Zinc production
Compania Minera Antamina S.A. Peru 33.8 33.8 Zinc/Copper production
Recylex S.A. France 29.8 29.8 Zinc/Lead production
Minera Agua Rica Alumbrera Limited Argentina 25.0 25.0 Copper production
8 Represents the Group’s economic interest in Century, comprising 42.9% (2020: 42.9%) voting interest and 3.4% non-voting interest (2020: 4%). Century is publicly traded on NASDAQ
under the symbol CENX.

Other investments
EN+ GROUP IPJSC Russia 10.6 10.6 Aluminium production
PAO NK RussNeft9 Russia 25.0 25.0 Oil production
9 In December 2021, Glencore agreed to the sale of its interest in PAO NK Russneft. Completion of the sale is conditional on receipt of certain regulatory approvals and is expected to
occur in H1 2022.

Alternative performance measures

Alternative performance measures are denoted by the symbol ◊
When assessing and discussing the Group’s reported financial performance, financial position and cash flows, Glencore makes
reference to Alternative performance measures (APMs), which are not defined or specified under the requirements of IFRS, but are
derived from the financial statements prepared in accordance with IFRS. The APMs are consistent with how business performance
is measured and reported within the internal management reporting to the Board and management and assist in providing
meaningful analysis of the Group’s results both internally and externally in discussions with the financial analyst and investment
community.
The Group uses APMs to aid the comparability of information between reporting periods and segments and to aid the
understanding of the activity taking place across the Group by adjusting for items that are of an infrequent nature and by
aggregating or disaggregating (notably in the case of relevant material associates and joint ventures accounted for on an equity
basis) certain IFRS measures. APMs are also used to approximate the underlying operating cash flow generation of the operations
(Adjusted EBITDA).
Investments in the extractive industry are typically significant and the initial spend generally occurs over several years, “upfront”,
prior to the operations generating cash. As a result, the investments are sometimes made with partners and an assessment to
approximate the operating cash flow generation/pay-back of the investment (Adjusted EBITDA) is required. Against this backdrop,
the key APMs used by Glencore are Adjusted EBITDA, Net funding/Net debt and the disaggregation of the equivalent key APMs of
our relevant material associates and joint ventures (“Proportionate adjustment”) to enable a consistent evaluation of the financial
performance and returns attributable to the Group.
Adjusted EBITDA is a useful approximation of the operating cash flow generation by eliminating depreciation and amortisation
adjustments. Adjusted EBITDA is not a direct measure of our liquidity, which is shown by our cash flow statement and needs to be
considered in the context of our financial commitments.
Proportionate adjustments are useful to enable a consistent evaluation of the financial performance and returns available to the
Group, irrespective of the differing accounting treatments required to account for our minority/joint ownership interests of our
relevant material investments.
Net funding is an aggregation of IFRS measures (Borrowings less cash and cash equivalents) and Net debt is Net funding less
Readily marketable inventories and provides a measure of our financial leverage and, through Net debt to Adjusted EBITDA
relationships, provides an indication of relative financial strength and flexibility.
APMs used by Glencore may not be comparable with similarly titled measures and disclosures by other companies. APMs have
limitations as an analytical tool, and a user of the financial statements should not consider these measures in isolation from, or as a
substitute for, analysis of the Group’s results of operations; and they may not be indicative of the Group’s historical operating results,
nor are they meant to be a projection or forecast of its future results.
Listed below are the definitions and reconciliations to the underlying IFRS measures of the various APMs used by the Group.
Proportionate adjustment
For internal reporting and analysis, management evaluates the performance of Antamina copper/zinc mine (34% owned), Cerrejón
coal mine (33% owned) and Collahuasi copper mine (44% owned) under the proportionate consolidation method reflecting
Glencore’s proportionate share of the revenues, expenses, assets and liabilities of these investments.
Although Glencore has a voting interest in Volcan of 63%, its total economic interest is only 23.3%. For internal reporting and analysis,
management evaluates the performance of Volcan under the equity method, reflecting the Group’s relatively low 23.3% economic
ownership in this fully ring-fenced listed entity, with its stand-alone, independent and separate capital structure. The impact is that
we reflect 23.3% of Volcan’s net income in the Group’s Adjusted EBIT/EBITDA and its consolidated results are excluded from all other
APM’s, including production data.
The Viterra joint venture is a stand-alone group with a fully independent capital structure, governance and credit profile, supporting
a global business, across many geographies, products and activities. Glencore’s management evaluates this investment’s financial
performance on a net return basis, as opposed to an Adjusted EBITDA basis and thus, the financial results of Viterra are presented
on a basis consistent with its underlying IFRS treatment (equity accounting).
See reconciliation of revenue and relevant material associates’ and joint ventures’ Adjusted EBIT to “Share of net income from
associates and joint ventures” below.

Alternative performance measures continued

APMs derived from the statement of income
Revenue
Revenue represents revenue by segment (see note 2 of the financial statements), as reported on the face of the statement
of income plus the relevant Proportionate adjustments. See reconciliation table below.

Revenue – Marketing activities 181,764 124,137
Revenue – Industrial activities 60,810 41,453
Intersegment eliminations (34,642) (20,803)
Revenue - segmental 207,932 144,787
Proportionate adjustment material associates and joint ventures – revenue (5,162) (2,996)
Proportionate adjustment Volcan – revenue 981 547
Revenue – reported measure 203,751 142,338
Share of income from material associates and joint ventures

Associates’ and joint ventures’ Adjusted EBITDA 4,001 2,061
Depreciation and amortisation (687) (683)
Associates’ and joint ventures’ Adjusted EBIT 3,314 1,378
Impairment, net of tax1 – (445)

Net finance costs 4 (56)
Income tax expense (1,211) (524)
(1,207) (1,025)
Share of income from relevant material associates and joint ventures 2,107 353
Share of income from other associates and joint ventures 511 91
Share of income from associates and joint ventures2 2,618 444
1 In 2020, Industrial activities segment comprised an impairment of $445 million, net of taxes of $211 million, relating to Cerrejón, resulting from lower API2 coal price assumptions and
reduced production estimates, including updated mine-life approval expectations.
2 Comprises share in earnings of $492 million (2020: $197 million) from Marketing activities and share in earnings of $2,126 million (2020: $247 million) from Industrial activities.
Adjusted EBIT/EBITDA
Adjusted EBIT/EBITDA provide insight into our overall business performance (a combination of cost management, seizing market
opportunities and growth), and are the corresponding flow drivers towards our objective of achieving industry-leading returns.
Adjusted EBIT is the net result of revenue less cost of goods sold and selling and administrative expenses, plus share of income from
associates and joint ventures, dividend income and the attributable share of Adjusted EBIT of relevant material associates and joint
ventures, which are accounted for internally by means of proportionate consolidation, excluding Significant items, see below.

Adjusted EBITDA consists of Adjusted EBIT plus depreciation and amortisation, including the related Proportionate adjustments.
See reconciliation table below.

Reported measures
Revenue 203,751 142,338
Cost of goods sold (191,370) (138,640)
Selling and administrative expenses (2,115) (1,681)
Share of income from associates and joint ventures 2,618 444
Dividend income 23 32
12,907 2,493
Adjustments to reported measures
Share of associates’ significant items 11 92
Movement in unrealised inter-segment profit elimination 549 760
Proportionate adjustment material associates and joint ventures – net
finance, impairment and income tax expense 1,207 1,025
Proportionate adjustment Volcan – net finance, income tax expense
(179) 46
and non-controlling interests
Adjusted EBIT 14,495 4,416
Depreciation and amortisation 6,335 6,671
Proportionate adjustment material associates and joint ventures –
depreciation 687 683
Proportionate adjustment Volcan - depreciation (194) (210)
Adjusted EBITDA 21,323 11,560
Significant items
Significant items of income and expense which, due to their variable financial impact or the expected infrequency of the events
giving rise to them, are separated for internal reporting and analysis of Glencore’s results to aid in an understanding and
comparative basis of the underlying financial performance. Refer to reconciliation below.
Reconciliation of net significant items 2021
Gross
significant Non-controlling Significant Equity
US$ million charges interests’ share items tax holders’ share
Share of Associates' significant items1 (11) – – (11)
Movement in unrealised inter-segment profit elimination1 (549) – 77 (472)
Loss on disposals of non-current assets2 (607) – (23) (630)
Other expense – net3 (1,947) (4) (6) (1,957)
Tax significant items in their own right4 – – 56 56
(3,114) (4) 104 (3,014)
Impairments attributable to equity holders
Impairments5 (1,838) 668 33 (1,137)
(1,838) 668 33 (1,137)
Total significant items (4,952) 664 137 (4,151)
1 See note 2 of the financial statements.
4 Relates to foreign exchange fluctuations ($52 million) and tax losses not recognised ($15 million) less adjustments in respect of prior years ($11 million), see note 8 of the financial
statements.


Reconciliation of net significant items 2020
Gross
significant Non-controlling Significant Equity
US$ million charges interests’ share items tax holders’ share
Share of Associates' significant items1 (92) – – (92)
Movement in unrealised inter-segment profit elimination1 (760) – 80 (680)
Loss on disposals of non-current assets2 (36) – – (36)
Other expense – net3 (173) (12) (69) (254)
Tax significant items in their own right4 – – 479 479
(1,061) (12) 490 (583)
Impairments attributable to equity holders
Impairments5 (3,600) 350 270 (2,980)
Impairment Volcan5 (2,347) 1,251 716 (380)
Impairments - net, related to material associates and joint ventures6 (445) – – (445)
(6,392) 1,601 986 (3,805)
Total significant items (7,453) 1,589 1,476 (4,388)
4 Tax expenses related to certain recognition of tax adjustments ($724 million), offset by tax expenses related to foreign exchange fluctuations ($76 million) and tax losses not recognised
($169 million), see note 8 of the financial statements.
6 See Proportionate adjustment reconciliation above.
Net income attributable to equity shareholder pre-significant items

Net income attributable to equity shareholders pre-significant items is a measure of our ability to generate shareholder returns.
The calculation of tax items to be excluded from Net income, includes the tax effect of significant items and significant tax items
themselves. Refer to reconciliation below.

Income/(loss) attributable to equity holders of the Parent 4,974 (1,903)
Significant items 4,151 4,388
Income attributable to equity holders of the Parent pre-significant items 9,125 2,485
APMs derived from the statement of financial position
Net funding/Net debt and Net debt to Adjusted EBITDA

Net funding/debt demonstrates how our debt is being managed and is an important factor in ensuring we maintain investment
grade credit rating status and a competitive cost of capital. Net funding is defined as total current and non-current borrowings less
cash and cash equivalents and related Proportionate adjustments. Net debt is defined as Net funding less readily marketable
inventories and related Proportionate adjustments. Consistent with the general approach in relation to our internal reporting and
evaluation of Volcan, its consolidated net debt has also been adjusted to reflect the Group’s relatively low 23.3% economic ownership
(compared to its 63% voting interest) in this still fully ring-fenced listed entity, with its standalone, independent and separate capital
structure. Furthermore, the relationship of Net debt to Adjusted EBITDA provides an indication of financial flexibility. See
reconciliation table below.
Readily marketable inventories (RMI)
RMI comprising the core inventories which underpin and facilitate Glencore’s marketing activities, represent inventories, that in
Glencore’s assessment, are readily convertible into cash in the short term due to their liquid nature, widely available markets and the
fact that price risk is primarily covered either by a forward physical sale or hedge transaction. Glencore regularly assesses the
composition of these inventories and their applicability, relevance and availability to the marketing activities. As at 31 December 2021,
$24,795 million (2020: $19,584 million) of inventories were considered readily marketable. This comprises $16,073 million (2020:
$12,260 million) of inventories carried at fair value less costs of disposal and $8,722 million (2020: $7,324 million) carried at the lower of
cost or net realisable value. Total readily marketable inventories includes $125 million (2020: $128 million) related to the relevant
material associates and joint ventures (see note 2) presented under the proportionate consolidation method, comprising inventory
carried at lower of cost or net realisable value. Given the highly liquid nature of these inventories, which represent a significant share
of current assets, the Group believes it is appropriate to consider them together with cash equivalents in analysing Group net debt
levels and computing certain debt coverage ratios and credit trends.


Net funding/net debt at 31 December 2021
Proportionate
adjustment
material Proportionate
Reported associates and adjustment Adjusted
US$ million measure joint ventures Volcan measure
Non-current borrowings 26,811 467 (485) 26,793
Current borrowings 7,830 29 (434) 7,425
Total borrowings 34,641 496 (919) 34,218
Less: cash and cash equivalents (3,241) (371) 231 (3,381)
Net funding 31,400 125 (688) 30,837
Less: Readily marketable inventories (24,670) (125) – (24,795)
Net debt 6,730 – (688) 6,042
Adjusted EBITDA 21,323

Net debt to Adjusted EBITDA 0.28
Net funding/net debt at 31 December 2020

Proportionate
adjustment
Non-current borrowings 29,227 210 (889) 28,548
Current borrowings 8,252 151 (33) 8,370
Total borrowings 37,479 361 (922) 36,918
Less: cash and cash equivalents (1,498) (107) 115 (1,490)
Net funding 35,981 254 (807) 35,428
Less: Readily marketable inventories (19,456) (128) – (19,584)
Net debt 16,525 126 (807) 15,844
Adjusted EBITDA 11,560

Net debt to Adjusted EBITDA 1.37
Capital expenditure (“Capex”)

Capital expenditure is expenditure capitalised as property, plant and equipment. For internal reporting and analysis, Capex includes
related Proportionate adjustments. See reconciliation table below.

Capital expenditure – Marketing activities 801 488
Capital expenditure – Industrial activities 4,423 4,082
Capital expenditure - segmental 5,224 4,570
Proportionate adjustment material associates and joint ventures – capital expenditure (713) (543)
Proportionate adjustment Volcan – capital expenditure 197 117
Capital expenditure – reported measure 4,708 4,144


APMs derived from the statement of cash flows
Net purchase and sale of property, plant and equipment

Net purchase and sale of property, plant and equipment is cash purchase of property, plant and equipment, net of proceeds from
sale of property, plant and equipment. For internal reporting and analysis, Net purchase and sale of property, plant and equipment
includes proportionate adjustments. See reconciliation table below.
Proportionate
adjustment
2021 US$ million measure joint ventures Volcan measure
Purchase of property, plant and equipment (3,618) (695) 174 (4,139)
Proceeds from sale of property, plant and equipment 342 3 (8) 337
Net purchase and sale of property, plant and equipment (3,276) (692) 166 (3,802)
Proportionate
adjustment
Proceeds from sale of property, plant and equipment 52 4 – 56
Net purchase and sale of property, plant and equipment (3,517) (509) 105 (3,921)
Funds from operations (FFO) and FFO to Net debt

FFO is a measure that reflects our ability to generate cash for investment, debt servicing and returns to shareholders. It comprises
cash provided by operating activities before working capital changes, less tax and net interest payments plus dividends received
and related Proportionate adjustments. Furthermore, the relationship of FFO to net debt is an indication of our financial flexibility
and strength. See reconciliation table below.
2021
Proportionate
adjustment
Cash generated by operating activities before working capital changes,
interest and tax 16,725 – – 16,725
Addback EBITDA of relevant material associates and joint ventures – 4,001 (382) 3,619
Adjusted cash generated by operating activities before working capital
changes, interest and tax 16,725 4,001 (382) 20,344
Income taxes paid (1,837) (855) 16 (2,676)
Interest received 100 – (1) 99
Interest paid (1,003) (9) 60 (952)
Dividends received from associates and joint ventures 2,375 (2,133) – 242
Funds from operations (FFO) 16,360 1,004 (307) 17,057
Net debt 6,042

FFO to net debt 282.3%


Proportionate
adjustment
Cash generated by operating activities before working capital changes,
interest and tax 8,568 – – 8,568
Addback EBITDA of relevant material associates and joint ventures – 2,061 (131) 1,930
Non-cash adjustments included within EBITDA – 15 – 15
Adjusted cash generated by operating activities before working capital
changes, interest and tax 8,568 2,076 (131) 10,513
Income taxes paid (820) (383) 14 (1,189)
Interest received 100 1 (1) 100
Interest paid (1,174) (12) 44 (1,142)
Dividends received from associates and joint ventures 1,015 (972) – 43
Funds from operations (FFO) 7,689 710 (74) 8,325
Net debt 15,844

FFO to net debt 52.5%

Other reconciliations
Available committed liquidity1
Cash and cash equivalents – reported 3,241 1,498
Proportionate adjustment – cash and cash equivalents 140 (8)
Headline committed syndicated revolving credit facilities 11,222 14,625
Amount drawn under syndicated revolving credit facilities (2,543) (4,766)
Amounts drawn under U.S. commercial paper programme (1,764) (1,090)
Total 10,296 10,259
1 Presented on an adjusted measured basis.
Cash flow related adjustments 2021

Proportionate
adjustment
Funds from operations (FFO) 16,360 1,004 (307) 17,057
Working capital changes (5,125) (179) 15 (5,289)
Net cash received from disposal of subsidiaries 252 – – 252
Purchase of investments (86) – – (86)
Proceeds from sale of investments 194 – – 194
Proceeds from sale of property, plant and equipment 342 3 (8) 337
Margin payments in respect of financing related hedging activities (970) – – (970)
Proceeds received on acquisition of non-controlling interests in subsidiaries 10 – – 10
Return of capital/distributions to non-controlling interests (163) – – (163)
Purchase of own shares (746) – – (746)
Distributions paid to equity holders of the Parent (2,115) – – (2,115)
Cash movement in net funding 4,335 133 (126) 4,342
Cash flow related adjustments 2020

Proportionate
adjustment
Funds from operations (FFO) 7,689 710 (74) 8,325
Working capital changes (4,010) (314) 6 (4,318)
Net cash received from disposal of subsidiaries (222) – – (222)
Purchase of investments (122) – – (122)
Proceeds from sale of investments 135 – – 135
Proceeds from sale of property, plant and equipment 52 4 – 56
Margin receipt in respect of financing related hedging activities 1,040 – – 1,040
Proceeds paid on acquisition of non-controlling interests in subsidiaries (56) – – (56)
Return of capital/distributions to non-controlling interests (127) – – (127)
Cash movement in net funding 810 (113) 37 734

Other reconciliations continued

Applicable tax rate
The applicable tax rate represents the effective tax rate which is computed based on the income tax expense, pre-significant items
and related Proportionate adjustments, divided by the earnings before tax, pre-significant items and related Proportionate
adjustments. See reconciliation table below.
Reconciliation of tax expense 2021

US$ million Total
Adjusted EBIT, pre-significant items 14,495
Net finance costs (1,140)
Adjustments for:
Net finance costs from material associates and joint ventures 4
Proportional adjustment and net finance costs - Volcan 55
Share of income from other associates pre-significant items (522)
Profit on a proportionate consolidation basis before tax and pre-significant items 12,892
Income tax expense, pre-significant items (3,163)
Adjustments for:
Tax expense from material associates and joint ventures (1,211)
Tax expense from Volcan 54
Tax expense on a proportionate consolidation basis (4,320)
Applicable tax rate 33.5%
Pre-significant Significant Total

US$ million tax expense items tax1 tax expense
Tax expense/(income) on a proportionate consolidation basis 4,320 (137) 4,183
Adjustment in respect of material associates and joint ventures – tax (1,211) – (1,211)
Adjustment in respect of Volcan – tax 54 – 54
Tax expense/(income) on the basis of the income statement 3,163 (137) 3,026
1 See table above.
Reconciliation of tax expense 2020

US$ million Total
Adjusted EBIT, pre-significant items 4,416
Net finance costs (1,453)
Adjustments for:
Net finance costs from material associates and joint ventures (56)
Proportional adjustment and net finance costs - Volcan 84
Share of income from other associates pre-significant items (183)
Profit on a proportionate consolidation basis before tax and pre-significant items 2,808
Income tax expense, pre-significant items (306)
Adjustments for:
Tax expense from material associates and joint ventures (524)
Tax credit from Volcan (3)
Tax expense on a proportionate consolidation basis (833)
Applicable tax rate 29.7%
Total
Pre-significant Significant tax expense
US$ million tax expense items tax1
Tax expense/(credit) on a proportionate consolidation basis 833 (971) (138)
Adjustment in respect of material associates and joint ventures – tax (524) 211 (313)
Adjustment in respect of Volcan – tax (3) (716) (719)
Tax expense/(credit) on the basis of the income statement 306 (1,476) (1,170)
1 See table above.

Production by quarter – Q4 2020 to Q4 2021
Metals and minerals
Production from own sources – Total1

Change Change
Q4 Q1 Q2 Q3 Q4 YTD 21 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 YTD 20 Q4 20
% %
Copper kt 323.4 301.2 296.8 297.5 300.2 1,195.7 1,258.1 (5) (7)
Cobalt kt 5.8 6.8 8.0 8.6 7.9 31.3 27.4 14 36
Zinc kt 310.3 282.6 299.2 274.0 262.0 1,117.8 1,170.4 (4) (16)
Lead kt 65.1 55.3 61.7 56.4 48.9 222.3 259.4 (14) (25)
Nickel kt 28.4 25.2 22.5 23.4 31.2 102.3 110.2 (7) 10
Gold koz 261 224 199 170 216 809 916 (12) (17)
Silver koz 9,546 7,761 8,223 7,810 7,725 31,519 32,766 (4) (19)
Ferrochrome kt 378 399 374 298 397 1,468 1,029 43 5
Coal mt 22.7 24.5 24.2 27.6 27.0 103.3 106.2 (3) 19
Oil (entitlement interest basis) kbbl 584 1,071 1,486 1,588 1,129 5,274 3,944 34 93
Production from own sources – Copper assets1

Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
African Copper (Katanga, Mutanda, Mopani)
Katanga Copper metal kt 68.8 64.3 67.3 71.8 61.0 264.4 270.7 (2) (11)
Cobalt2 kt 5.0 5.8 6.1 6.9 5.0 23.8 23.9 – –
Mutanda Copper metal kt – – – – 6.3 6.3 – – n.m.
Cobalt2 kt – – 1.1 1.0 1.8 3.9 – – n.m.
Mopani Copper metal kt 10.3 6.5 – – – 6.5 30.3 (79) (100)
Total Copper metal kt 79.1 70.8 67.3 71.8 67.3 277.2 301.0 (8) (15)
Total Cobalt2 kt 5.0 5.8 7.2 7.9 6.8 27.7 23.9 16 36
Collahuasi3 Copper in concentrates kt 59.2 71.7 74.2 65.3 66.0 277.2 276.8 – 11
Silver in concentrates koz 893 1,081 1,170 978 990 4,219 3,961 7 11
Gold in concentrates koz 9 10 12 11 12 45 53 (15) 33
Antamina4 Copper in concentrates kt 40.7 35.8 37.4 38.1 38.7 150.0 127.7 17 (5)
Zinc in concentrates kt 44.9 38.0 42.2 38.9 34.6 153.7 142.4 8 (23)
Silver in concentrates koz 2,017 1,577 1,558 1,548 1,452 6,135 5,535 11 (28)
Other South America (Antapaccay, Lomas Bayas)

Antapaccay Copper in concentrates kt 51.5 43.5 40.5 41.3 45.5 170.8 185.6 (8) (12)
Gold in concentrates koz 32 28 24 16 22 90 90 – (31)
Silver in concentrates koz 355 327 303 336 416 1,382 1,298 6 17
Lomas Bayas Copper metal kt 18.0 15.8 16.4 15.6 16.5 64.3 74.1 (13) (8)
Total Copper in concentrates kt 51.5 43.5 40.5 41.3 45.5 170.8 185.6 (8) (12)
Total Gold in concentrates
and in doré koz 32 28 24 16 22 90 90 – (31)
Total Silver in concentrates
and in doré koz 355 327 303 336 416 1,382 1,298 6 17

Production by quarter – Q4 2020 to Q4 2021 continued
Metals and minerals
Production from own sources – Copper assets1 continued

Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
Australia (Ernest Henry, Cobar)5
Ernest Henry
Copper metal kt 12.0 11.0 10.9 12.2 10.7 44.8 49.2 (9) (11)
Gold koz 25 18 21 10 15 64 93 (31) (40)
Silver koz 48 53 46 51 45 195 198 (2) (6)
Cobar Copper in concentrates kt 12.7 8.9 10.3 9.5 11.8 40.5 46.2 (12) (7)
Silver in concentrates koz 144 95 111 117 136 459 516 (11) (6)
Total Gold koz 25 18 21 10 15 64 93 (31) (40)
Total Silver koz 192 148 157 168 181 654 714 (8) (6)
Total Copper department

Copper kt 273.2 257.5 257.0 253.8 256.5 1,024.8 1,060.6 (3) (6)
Cobalt kt 5.0 5.8 7.2 7.9 6.8 27.7 23.9 16 36
Zinc kt 44.9 38.0 42.2 38.9 34.6 153.7 142.4 8 (23)
Gold koz 66 56 57 37 49 199 236 (16) (26)
Silver koz 3,457 3,133 3,188 3,030 3,039 12,390 11,508 8 (12)

Metals and minerals
Production from own sources – Zinc assets1

Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
Kazzinc
Zinc metal kt 38.7 37.8 33.2 34.2 42.7 147.9 167.5 (12) 10
Lead metal kt 7.6 4.3 4.9 5.7 4.9 19.8 25.6 (23) (36)
Copper metal6 kt 8.9 8.7 4.9 4.7 7.3 25.6 37.0 (31) (18)
Gold koz 190 164 139 129 163 595 659 (10) (14)
Silver koz 1,714 816 485 640 980 2,921 4,712 (38) (43)
Kazzinc – total production including third party feed

Zinc metal kt 75.2 76.2 70.6 68.2 76.4 291.4 298.2 (2) 2
Lead metal kt 30.1 28.7 26.4 27.1 28.9 111.1 125.0 (11) (4)
Copper metal kt 14.7 15.2 11.0 10.1 15.9 52.2 60.7 (14) 8
Gold koz 294 233 211 212 269 925 965 (4) (9)
Silver koz 6,399 5,759 5,132 5,185 6,378 22,454 22,140 1 –
Australia (Mount Isa, McArthur River)5

Mount Isa Zinc in concentrates kt 88.2 85.0 86.4 82.8 75.6 329.8 354.2 (7) (14)
Copper metal kt 21.9 19.9 20.7 25.9 25.0 91.5 89.6 2 14
Lead in concentrates kt 38.9 36.2 39.4 32.8 24.5 132.9 161.9 (18) (37)
Silver koz 178 116 115 159 235 625 557 12 32
Silver in concentrates koz 1,295 1,176 1,427 1,246 869 4,718 5,790 (19) (33)
Mount Isa, Townsville – total production including third party feed

Copper metal kt 54.5 54.2 55.5 65.2 51.9 226.8 217.2 4 (5)
Gold koz 41 41 43 35 42 161 158 2 2
Silver koz 372 323 366 440 700 1,829 1,417 29 88
McArthur River Zinc in concentrates kt 76.4 63.5 74.2 69.9 72.0 279.6 279.3 – (6)
Lead in concentrates kt 15.0 10.9 14.2 14.4 15.7 55.2 54.9 1 5
Silver in concentrates koz 487 270 471 460 602 1,803 1,614 12 24
Total Zinc in concentrates kt 164.6 148.5 160.6 152.7 147.6 609.4 633.5 (4) (10)
Total Copper kt 21.9 19.9 20.7 25.9 25.0 91.5 89.6 2 14
Total Lead in concentrates kt 53.9 47.1 53.6 47.2 40.2 188.1 216.8 (13) (25)
Total Silver koz 178.0 116 115 159 235 625 557 12 32
Total Silver in concentrates koz 1,782 1,446 1,898 1,706 1,471 6,521 7,404 (12) (17)
North America (Matagami, Kidd)

Matagami Zinc in concentrates kt 13.5 14.1 11.0 12.3 10.0 47.4 52.2 (9) (26)
Copper in concentrates kt 1.9 1.6 1.6 2.2 1.7 7.1 6.7 6 (11)
Kidd Zinc in concentrates kt 12.7 12.3 15.8 9.9 10.7 48.7 62.5 (22) (16)
Copper in concentrates kt 9.5 7.6 6.8 5.7 3.1 23.2 34.0 (32) (67)
Silver in concentrates koz 517 362 405 309 307 1,383 2,125 (35) (41)
Total Zinc in concentrates kt 26.2 26.4 26.8 22.2 20.7 96.1 114.7 (16) (21)
Total Silver in concentrates koz 517 362 405 309 307 1,383 2,125 (35) (41)

Metals and minerals
Production from own sources – Zinc assets1 continued

Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
Other Zinc: South America (Argentina, Bolivia, Peru)7
Zinc in concentrates kt 35.9 31.9 36.4 26.0 16.4 110.7 112.3 (1) (54)
Lead in concentrates kt 3.6 3.9 3.2 3.5 3.8 14.4 17.0 (15) 6
Copper in concentrates kt 0.5 0.5 0.4 0.3 0.5 1.7 1.6 6 –
Silver in concentrates koz 1,832 1,809 2,051 1,889 1,634 7,383 6,121 21 (11)
Total Zinc department

Zinc kt 265.4 244.6 257.0 235.1 227.4 964.1 1,028.0 (6) (14)
Lead kt 65.1 55.3 61.7 56.4 48.9 222.3 259.4 (14) (25)
Copper kt 42.7 38.3 34.4 38.8 37.6 149.1 168.9 (12) (12)
Gold koz 190 164 139 129 163 595 659 (10) (14)
Silver koz 6,023 4,549 4,954 4,703 4,627 18,833 20,919 (10) (23)

Metals and minerals
Production from own sources – Nickel assets1

Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
Nickel metal kt 15.1 14.2 13.7 12.8 14.3 55.0 56.5 (3) (5)
Nickel in concentrates kt 0.2 0.1 – 0.1 – 0.2 0.4 (50) (100)
Copper metal kt 3.8 3.4 3.2 3.2 3.7 13.5 13.5 – (3)
Cobalt metal kt 0.2 0.4 0.2 0.2 0.3 1.1 0.6 83 50
Gold koz 5 4 3 4 4 15 21 (29) (20)
Silver koz 66 79 81 77 59 296 339 (13) (11)
Platinum koz 10 10 6 8 9 33 40 (18) (10)
Palladium koz 23 21 18 21 23 83 101 (18) –
Rhodium koz 1 1 1 1 1 4 4 – –
Nickel metal kt 23.5 22.6 22.8 24.0 21.8 91.2 92.1 (1) (7)
Nickel in concentrates kt 0.1 0.1 0.1 – 0.1 0.3 0.4 (25) –
Copper metal kt 5.5 4.9 4.9 5.1 5.2 20.1 20.5 (2) (5)
Cobalt metal kt 1.2 1.0 1.0 1.0 1.0 4.0 4.4 (9) (17)
Gold koz 8 7 8 6 8 29 36 (19) –
Silver koz 89 132 137 121 121 511 545 (6) 36
Platinum koz 16 22 14 17 20 73 72 1 25
Palladium koz 48 58 47 57 58 220 238 (8) 21
Rhodium koz 1 1 1 1 1 4 5 (20) –
Murrin Murrin
Total Nickel metal kt 9.1 7.5 5.6 7.4 9.6 30.1 36.4 (17) 5
Total Cobalt metal kt 0.6 0.6 0.6 0.5 0.8 2.5 2.9 (14) 33
Murrin Murrin – total production including third party feed

Total Nickel metal kt 9.8 8.2 6.1 8.4 11.0 33.7 40.8 (17) 12
Total Cobalt metal kt 0.7 0.7 0.6 0.6 0.9 2.8 3.3 (15) 29
Koniambo Nickel in ferronickel kt 4.0 3.4 3.2 3.1 7.3 17.0 16.9 1 83
Total Nickel department

Nickel kt 28.4 25.2 22.5 23.4 31.2 102.3 110.2 (7) 10
Copper kt 7.5 5.4 5.4 4.9 6.1 21.8 28.6 (24) (19)
Cobalt kt 0.8 1.0 0.8 0.7 1.1 3.6 3.5 3 38
Gold koz 5 4 3 4 4 15 21 (29) (20)
Silver koz 66 79 81 77 59 296 339 (13) (11)
Platinum koz 10 10 6 8 9 33 40 (18) (10)
Palladium koz 23 21 18 21 23 83 101 (18) –
Rhodium koz 1 1 1 1 1 4 4 – –

Metals and minerals
Production from own sources – Ferroalloys assets1

Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
Ferrochrome8 kt 378 399 374 298 397 1,468 1,029 43 5
Vanadium pentoxide mlb 5.9 5.5 5.5 4.2 5.3 20.5 19.5 5 (10)
Total production – Custom metallurgical assets1
Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
Copper (Altonorte, Pasar, Horne, CCR)
Copper metal kt 116.0 127.2 127.6 121.5 114.3 490.6 482.6 2 (1)
Copper anode kt 134.4 126.7 109.5 94.4 123.4 454.0 490.1 (7) (8)
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)

Zinc metal kt 203.6 202.6 195.8 206.7 195.5 800.6 787.2 2 (4)
Lead metal kt 45.8 49.9 52.3 62.3 80.4 244.9 198.0 24 76

Energy products
Production from own sources – Coal assets1

Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
Australian coking coal mt 2.0 2.4 1.7 2.5 2.5 9.1 7.6 20 25
Australian semi-soft coal mt 1.0 1.2 1.4 0.9 1.0 4.5 4.6 (2) –
Australian thermal coal (export) mt 12.8 12.0 13.0 15.5 15.4 55.9 55.7 – 20
Australian thermal coal (domestic) mt 1.5 1.4 1.2 1.6 1.8 6.0 6.4 (6) 20
South African thermal coal (export) mt 3.3 4.0 3.7 3.9 3.1 14.7 14.8 (1) (6)
South African thermal coal (domestic) mt 1.8 1.7 1.4 1.2 1.0 5.3 9.2 (42) (44)
Cerrejón9 mt 0.3 1.8 1.8 2.0 2.2 7.8 4.1 90 633
Prodeco mt – – – – – – 3.8 (100) n.m.
Total Coal department mt 22.7 24.5 24.2 27.6 27.0 103.3 106.2 (3) 19
Oil assets
Change Change
Q4 Q1 Q2 Q3 Q4 2021 vs Q4 21 vs
2020 2021 2021 2021 2021 2021 2020 2020 Q4 20
% %
Glencore entitlement interest basis
Equatorial Guinea kboe 345 784 1,245 1,294 818 4,141 1,960 111 137
Chad kbbl – – – – – – 1,112 (100) n.m.
Cameroon kbbl 239 287 241 294 311 1,133 872 30 30
Total Oil department kboe 584 1,071 1,486 1,588 1,129 5,274 3,944 34 93
Gross basis
Equatorial Guinea kboe 1,871 3,777 6,041 6,233 4,086 20,137 10,435 93 118
Chad kbbl – – – – – – 1,521 (100) n.m.
Cameroon kbbl 693 708 699 729 730 2,866 2,528 13 5
Total Oil department kboe 2,564 4,485 6,740 6,962 4,816 23,003 14,484 59 88
1 Controlled industrial assets and joint ventures only. Production is on a 100% basis except for joint ventures, where the Group’s attributable share of production is included.
2 Cobalt contained in concentrates and hydroxides.
3 The Group’s pro-rata share of Collahuasi production (44%).
4 The Group’s pro-rata share of Antamina production (33.75%).
5 Mount Isa copper operations (including Townsville) previously recorded under copper department moved to zinc department.
6 Copper metal includes copper contained in copper concentrates and blister.
7 South American production excludes Volcan Compania Minera.
8 The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
9 The Group’s pro-rata share of Cerrejón production (33.3%).

Resources and reserves
The resource and reserve data in the following tables comprise summary extracts of the Glencore Resources and Reserves report as at
31 December 2021, as published on the Glencore website on 2 February 2022. The Glencore Resources and Reserves report was
publicly reported, as appropriate for individual components, in accordance with the 2012 edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2016 edition of the South African Code for
Reporting of Mineral Resources and Mineral Reserves (SAMREC), the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and Reserves (2014 edition) and the Petroleum Resources Management System (PRMS) for reporting
of oil and natural gas reserves and resources.
Data is reported as at 31 December 2021, unless otherwise noted. For comparison purposes, data for 2020 has been included. Metric
units are used throughout, and all data is presented on a 100% asset basis with the exception of Oil assets which are shown on a
working interest basis. All tonnage information has been rounded to reflect the relative uncertainty in the estimates; there may
therefore be small differences in the totals.
Metals and minerals: Copper
Copper mineral resources

Measured Mineral Indicated Mineral Measured and Inferred
Resources Resources Indicated Resources Mineral Resources
Name of operation Commodity 2021 2020 2021 2020 2021 2020 2021 2020
African copper
Katanga (Mt) – – 269 290 269 290 76 99
Copper (%) – – 4.71 4.73 4.71 4.73 1.70 1.56
Cobalt (%) – – 0.56 0.55 0.56 0.55 0.50 0.47
Mutanda (Mt) 371 368 97 96 468 464 17 17

Copper (%) 1.39 1.39 0.96 0.97 1.31 1.31 0.72 0.72
Cobalt (%) 0.55 0.55 0.44 0.44 0.53 0.53 0.53 0.54
Collahuasi (Mt) 883 876 4,713 4,729 5,695 5,605 4,811 4,898
Copper (%) 0.79 0.79 0.79 0.8 0.79 0.80 0.73 0.73
Molybdenum 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
(%)
Antamina (Mt) 306 329 619 642 925 971 1,260 1,272
Copper (%) 0.83 0.82 0.88 0.89 0.87 0.86 1.00 1.01
Zinc (%) 0.61 0.64 0.73 0.72 0.69 0.69 0.57 0.58
Silver (g/t) 10 9 11 12 11 11 11 11
Molybdenum 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01
(%)
Other South America (Mt) 556 509 2,231 2,131 2,787 2,639 1,072 654
Copper (%) 0.42 0.44 0.38 0.39 0.39 0.41 0.27 0.29
Gold (g/t) 0.04 0.04 0.04 0.04 0.04 0.04 0.01 0.01
Silver (g/t) 0.8 0.8 0.8 0.8 0.8 0.8 0.1 0.1
Cobar (Mt) 3.9 4.5 3.5 3.4 7.4 7.9 4.0 3.8
Copper (%) 5.74 5.77 4.92 5.14 5.36 5.50 5.41 5.66
Silver (g/t) 24 25 20 21 22.0 23.0 20 22
Other projects1 (Mt) 852 853 2,309 2,319 3,161 3,171 3,180 3,023
(El Pachon, West Wall,
Polymet) Copper (%) 0.51 0.51 0.45 0.45 0.47 0.47 0.39 0.39
1 The above listed Copper projects also include other metallic content, as noted in the Resources and Reserves report published on 2 February 2022.

Resources and reserves continued

Copper ore reserves
Proved Ore Reserves Probable Ore Reserves Total Ore Reserves
Name of operation Commodity 2021 2020 2021 2020 2021 2020
African copper
Katanga (Mt) – – 128 143 128 143
Copper (%) – – 3.86 3.66 3.86 3.66
Cobalt (%) – – 0.51 0.49 0.51 0.49
Mutanda (Mt) 52 48 81 82 134 130

Copper (%) 1.43 1.36 1.64 1.59 1.52 1.15
Cobalt (%) 0.64 0.62 0.78 0.75 0.70 0.70
Collahuasi (Mt) 476 491 3,691 3,685 4,167 4,176

Copper (%) 1.00 1.01 0.77 0.78 0.80 0.80
Molybdenum (%) 0.02 0.02 0.02 0.02 0.02 0.02
Antamina (Mt) 186 206 150 176 336 382

Copper (%) 0.92 0.90 0.98 0.92 0.94 0.91
Zinc (%) 0.66 0.77 1.01 1.06 0.81 0.91
Silver (g/t) 9 9 11 10 10 9
Molybdenum (%) 0.03 0.03 0.02 0.02 0.03 0.02
Other South America (Mt) 352 328 454 510 806 838
Copper (%) 0.50 0.41 0.35 0.34 0.37 0.37
Gold (g/t) 0.04 0.05 0.05 0.04 0.05 0.04
Silver (g/t) 0.6 0.7 0.7 0.6 0.7 0.6
Australia (Cobar) (Mt) 4.2 4.9 2.6 2.8 6.8 7.7

Copper (%) 4.00 3.95 3.60 3.65 3.80 3.84
Silver (g/t) 16.4 16.3 14.1 15.0 15.6 15.8
Other projects1 (Mt) 157 157 106 106 264 264

(El Pachon, West Wall, Copper (%)
Polymet) 0.29 0.29 0.29 0.29 0.29 0.29
1 The above listed Copper projects also include other metallic content, as noted in the Resources and Reserves report published on 2 February 2022.


Zinc mineral resources
Kazzinc
Kazzinc Polymetallic (Mt) 94 111 113 123 208 234 166 172
Zinc (%) 2.7 2.8 1.3 1.4 2.0 2.0 2.0 2.2
Lead (%) 0.9 0.9 0.4 0.4 0.6 0.6 1.2 1.2
Copper (%) 0.3 0.3 0.2 0.2 0.3 0.3 0.3 0.3
Silver (g/t) 18 18 13 13 15 15 21 21
Gold (g/t) 1.2 1.1 1.0 1.0 1.1 1.0 0.8 0.8
Kazzinc Gold (Vasilkovskoye) (Mt) 64 73 53 53 117 126 2.0 2.0

Gold (g/t) 1.9 1.9 2.1 2.1 2.0 2.0 1.7 1.8
Australia
Mount Isa – Zinc bearing (Mt) 83 85 310 310 393 395 286 290
Zinc (%) 9.1 9.2 6.3 6.3 6.9 6.9 5 5
Lead (%) 4.0 4.1 3.4 3.4 3.5 3.6 2 3
Silver (g/t) 77 78 67 67 69 69 48 48
Mount Isa – Copper bearing (Mt) 58 57 110 111 166 169 12 12

Copper (%) 2.1 2.1 1.6 1.6 1.8 1.8 1.5 1.5
McArthur River (Mt) 103 106 49 57 152 162 – –

Zinc (%) 9.7 9.5 10.5 10.2 9.9 9.7 – –
Lead (%) 4.2 4.1 5.0 4.8 4.5 4.4 – –
Silver (g/t) 42 40 53 52 46 45 – –
Mount Margaret (Mt) 5 5 8 8 13 13 0.5 0.5

Copper (%) 0.6 0.6 0.8 0.8 0.7 0.7 0.9 0.9
Gold (g/t) 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3
North America
Zinc North America (Mt) 21 21 41 33 62 54 73 77
Zinc (%) 4.0 4.3 4.4 4.6 4.2 4.4 3.5 4.1
Lead (%) 0.5 0.5 0.5 0.6 0.5 0.6 0.4 0.8
Copper (%) 1.4 1.4 0.8 0.6 1.0 0.9 0.6 0.7
Silver (g/t) 46 46 100 114 81 88 102 124
Gold (g/t) 0.4 0.4 0.3 0.3 0.3 0.4 0.2 0.2
Copper North America (Mt) 75 75 255 255 330 330 120 120
Copper (%) 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Gold (g/t) 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Volcan
Lead/zinc/silver deposits (Mt) 25 26 75 115 99 141 146 215
Zinc (%) 5.9 5.3 4.4 3.6 4.8 3.9 4.5 4.4
Lead (%) 1.5 1.5 1.2 1.1 1.3 1.1 1.4 1.5
Silver (g/t) 87 84 87 82 87 82 85 83
Copper deposits (Mt) 18.4 18.4 34.3 34.3 53 53 148 148

Gold (g/t) – – – – – – 0.2 0.2
Copper (%) 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4
Other Zinc (Mt) 12.0 13.0 19 21 30 35 74 75

Zinc (%) 5.6 5.5 4.2 4.1 4.7 4.3 6.6 6.3
Lead (%) 1.1 1.6 1.1 1.6 1.1 1.5 1.2 1.2
Copper (%) 0.3 0.3 0.3 0.3 0.3 0.3 0.1 0.1
Silver (g/t) 132 129 134 125 133 124 84 83


Zinc ore reserves
Kazzinc
Kazzinc Polymetallic (Mt) 70 68 15.1 23.8 85 92
Zinc (%) 3.4 3.5 3.1 3.5 3.3 3.5
Lead (%) 1.0 1.0 0.3 0.6 0.9 0.9
Copper (%) 0.1 0.2 0.4 0.3 0.2 0.2
Silver (g/t) 17 18 14 15 16 17
Gold (g/t) 0.7 0.6 1.3 0.8 0.8 0.7
Kazzinc Gold (Vasilkovskoye) (Mt) 35 43 36 36 71 79

Gold (g/t) 2.0 2.0 1.8 1.8 1.9 1.9
Australia
Mount Isa – Zinc bearing (Mt) 22 26 47 46 68 72
Zinc (%) 8.0 7.8 7.1 6.9 7.5 7.3
Lead (%) 3.6 3.9 3.5 3.5 3.6 3.7
Silver (g/t) 66 72 62 64 63 67
Mount Isa – Copper bearing (Mt) 5.9 9.5 17 17 23 27

Copper (%) 2.3 2.3 2.0 1.9 2.0 2.1
McArthur River (Mt) 71 74 20.0 12.7 91 87

Zinc (%) 9.1 9.4 7.8 7.8 8.8 9.2
Lead (%) 4.1 4.3 4.0 3.8 4.1 4.2
Silver (g/t) 41 43 42 39 41 42
North America (Mt) 2.3 4.5 1.5 1.7 4 6

Zinc (%) 3.13 4.04 4.5 4.0 3.6 4.0
Copper (%) 1.74 1.67 1.7 1.6 1.7 1.6
Silver (g/t) 41 41 43 38 42 40
Gold (g/t) 0.09 0.20 – – 0.1 0.1
Volcan (Mt) 6 7 17 21 24 28
Zinc (%) 6.0 4.3 4.1 4.6 4.6 4.6
Lead (%) 1.1 1.1 0.9 1.1 1.0 1.1
Silver (g/t) 82 80 81 91 81 88
Other Zinc (Mt) 3.4 3.6 9.5 9.0 12.8 13.0

Zinc (%) 6.0 5.6 2.9 2.8 3.6 3.5
Lead (%) 1.0 1.4 0.7 1.0 0.8 1.1
Copper (%) 0.1 0.2 0.2 0.2 0.2 0.2
Silver (g/t) 136 151 104 113 110 122


Nickel mineral resources
INO (Mt) 9.1 9.6 42.8 36.7 51.9 46.2 47 49
Nickel (%) 2.43 2.59 2.50 2.55 2.49 2.55 1.4 1.6
Copper (%) 0.81 0.85 1.79 1.95 1.61 1.72 1.9 1.8
Cobalt (%) 0.05 0.06 0.05 0.06 0.05 0.06 0.03 0.03
Platinum (g/t) 0.73 0.73 0.93 0.92 0.89 0.88 0.8 0.8
Palladium (g/t) 1.46 1.47 1.61 1.59 1.58 1.57 1.3 1.4
Murrin Murrin (Mt) 139.7 144.1 52.2 74.6 192.0 218.8 9 17

Nickel (%) 1.02 1.00 0.98 1.00 1.01 1.00 1.0 0.9
Cobalt (%) 0.088 0.074 0.070 0.084 0.083 0.077 0.06 0.07
Koniambo (Mt) 11.0 11.5 43.8 44.0 54.8 55.5 84 84

Nickel (%) 2.47 2.47 2.41 2.41 2.42 2.42 2.5 2.5
Nickel ore reserves

INO (Mt) 7.60 8.30 21.20 19.90 28.8 28.2
Nickel (%) 2.01 1.93 2.07 2.33 2.06 2.21
Copper (%) 0.68 0.67 0.90 0.95 0.84 0.87
Cobalt (%) 0.05 0.04 0.04 0.06 0.05 0.05
Platinum (g/t) 0.62 0.57 0.48 0.53 0.52 0.54
Palladium (g/t) 1.22 1.05 0.78 0.95 0.90 0.99
Murrin Murrin (Mt) 59.5 103.0 9.0 33.9 68.5 136.8

Nickel (%) 1.09 1.02 1.07 1.04 1.09 1.03
Cobalt (%) 0.113 0.081 0.091 0.109 0.110 0.088
Koniambo (Mt) 11.0 11.0 26.0 26.0 37.0 37.2

Nickel (%) 2.23 2.23 2.19 2.17 2.20 2.20


Ferroalloys mineral resources
Western Chrome Mines
Western Chrome Mines (Mt) 60.000 58.347 64.42 58.55 124.42 116.89 93.3 101.4
Cr2O3 (%) 42.05 42.05 41.5 41.4 41.8 41.7 42 42
Tailings (Mt) – – – – – – 3.1 2.9

Cr2O3 (%) – – – – – – 18 17
Eastern Chrome Mines

Eastern Chrome Mines (Mt) 68.813 72.017 43.98 44.73 112.80 116.76 181.3 180.7
Cr2O3 (%) 39.99 41.36 40.1 40.2 40.0 40.9 39 39
Tailings (Mt) – – – – – – 4.9 4.9

Cr2O3 (%) – – – – – – 20 20
Vanadium (Mt) 51.662 49.754 33.49 35.56 85.15 85.31 91 93

V2O5 (%) 0.47 0.47 0.5 0.5 0.5 0.5 0.5 0.5
Manganese (Mt) 26.229 27.186 19.55 19.55 45.78 46.74 3 3

Mn (%) 37.56 37.24 36.4 36.5 37.1 36.9 36 36
Ferroalloys ore reserves

Western Chrome Mines (Mt) 10.249 10.418 1.97 3.13 12.22 13.56
Cr2O3 (%) 30.41 30.23 28.3 29.0 30.1 29.9
Eastern Chrome Mines (Mt) 23.147 27.701 5.08 4.43 28.22 32.13
Cr2O3 (%) 34.39 33.55 32.7 33.8 34.1 33.6
Vanadium (Mt) 19.993 22.223 8.18 9.45 28.17 31.67

V2O5 (%) 0.46 0.47 0.43 0.43 0.5 0.5
Manganese (Mt) 20.490 21.650 5.66 4.10 26.15 25.75

Mn (%) 36.27 36.34 35.9 35.9 36.2 36.3
Metals and minerals: Aluminium/Alumina
Alumina mineral resources

Aurukun (Mt) 96 96 331 352 427 448 3 4
Al2O3 (%) 53.5 53.3 49.9 49.7 50.7 50.5 49.4 48.8


Iron ore mineral resources
El Aouj Mining Company S.A. (Mt) 470 470 1,435 1,435 1,905 1,905 2,520 2,520
Iron (%) 36 36 36 36 36 36 35 35
Sphere Mauritania S.A. (Mt) 215 215 190 190 405 405 251 251
(Askaf) Iron (%) 36 36 35 35 36 36 35 35
Sphere Lebtheinia S.A. (Mt) – – 2,180 2,180 2,180 2,180 560 560
Iron (%) – – 32 32 32 32 32 32
Jumelles Limited (Mt) 2,300 2,300 2,500 2,500 4,800 4,800 2,100 2,100
(Zanaga) Iron (%) 34 34 30 30 32 32 31 31
Iron ore reserves

El Aouj Mining Company S.A. (Mt) 380 380 551 551 931 931
Iron (%) 35 35 35 35 35 35
Jumelles Limited (Mt) 770 770 1,290 1,290 2,070 2,070

(Zanaga) Iron (%) 37 37 32 32 34 34
Energy products: Coal
Coal resources
Measured Indicated Inferred
Coal Resources Coal Resources Coal Resources
Australia
New South Wales Coking/Thermal Coal (Mt) 3,570 3,671 3,653 3,644 7,491 7,591
Queensland Coking/Thermal Coal (Mt) 3,986 3,852 5,247 5,203 9,220 9,000
South Africa Thermal Coal (Mt) 2,256 2,314 837 839 344 344
Prodeco Thermal Coal (Mt) – 190 – 155 – 60
Cerrejón Thermal Coal (Mt) 3,250 3,300 1,250 1,250 600 600
Canada projects
(Suska, Sukunka) Coking/Thermal Coal (Mt) 45 45 113 113 130 130


Coal reserves
Marketable
Coal Reserves Coal Reserves Total Marketable
Proved Probable Proved Probable Coal Reserves
Australia
New South Wales Coking/Thermal Coal (Mt) 1,079 579 784 414 1,214 1,266
Queensland Coking/Thermal Coal (Mt) 326 184 298 151 452 528
South Africa Thermal Coal (Mt) 522 236 334 129 463 508
Prodeco Thermal Coal (Mt) – – – – – –
Cerrejón Thermal Coal (Mt) 200 130 190 120 320 350
Energy products: Oil
Net reserves (Proven and Probable)1

Working Interest Basis
Equatorial Guinea Chad Cameroon Total
Combined
Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf mmboe
31 December 2020 11 152 97 – 4 – 112 152 138
Revisions 1 32 – – – – 1 32 7
Production (2) (20) – – (1) – (3) (20) (6)
31 December 2021 10 164 97 – 3 – 110 164 139
Net contingent resources (2C)1

Working Interest Basis
Equatorial Guinea Chad Cameroon Total
Combined
Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf mmboe
31 December 2020 26 434 61 – 2 – 89 434 164
31 December 2021 27 310 – – – – 27 310 80
1 “Net” reserves or resources are equivalent to Glencore’s working interest in the asset/property.

Shareholder Information
Glencore plc is registered in Jersey, is

headquartered in Switzerland and has
operations around the world.
Headquarters Share registrars Enquiries

Baarermattstrasse 3 Jersey (for London listing) Corporate Services
P.O. Box 1363 Computershare Investor Services Glencore plc
CH-6341 Baar (Jersey) Limited Baarermattstrasse 3
Switzerland 13 Castle Street P.O. Box 1363
St Helier, Jersey CH-6341 Baar
Registered office JE1 1ES Switzerland
13 Castle Street Channel Islands
St Helier, Jersey Tel: +44 (0) 370 707 4040 Tel: +41 41 709 2000
JE1 1ES Fax: +41 41 709 3000
Channel Islands Johannesburg Email: info@glencore.com
Computershare Investor Services
The Company has a primary listing on (Pty) Ltd
the London Stock Exchange (LSE) Rosebank Towers,
and a secondary listing on the 15 Biermann Avenue,
Johannesburg Stock Exchange (JSE). Rosebank, 2196,
Our website contains further South Africa
information on our business and for Tel: +27 (0) 11 370 5000
shareholders including as to share
transfer and distributions: glencore.
com/investors/shareholder-centre

Important notice concerning this report

including forward looking statements
This document contains statements that are, or may be Neither Glencore nor any of its associates or directors, officers
deemed to be, “forward looking statements” which are or advisers, provides any representation, assurance or
prospective in nature. These forward looking statements may guarantee that the occurrence of the events expressed or
be identified by the use of forward looking terminology, or the implied in any forward- looking statements in this document
negative thereof such as “outlook”, “plans”, “expects” or “does will actually occur. You are cautioned not to place undue
not expect”, “is expected”, “continues”, “assumes”, “is subject reliance on these forward-looking statements which only
to”, “budget”, “scheduled”, “estimates”, “aims”, “forecasts”, speak as of the date of this document.
“risks”, “intends”, “positioned”, “predicts”, “anticipates” or “does
Except as required by applicable regulations or by law,
not anticipate”, or “believes”, or variations of such words or
Glencore is not under any obligation and Glencore and its
comparable terminology and phrases or statements that
affiliates expressly disclaim any intention, obligation or
certain actions, events or results “may”, “could”, “should”, “shall”,
undertaking, to update or revise any forward looking
“would”, “might” or “will” be taken, occur or be achieved.
statements, whether as a result of new information, future
Forward-looking statements are not based on historical facts,
events or otherwise. This document shall not, under any
but rather on current predictions, expectations, beliefs,
circumstances, create any implication that there has been no
opinions, plans, objectives, goals, intentions and projections
change in the business or affairs of Glencore since the date of
about future events, results of operations, prospects, financial
this document or that the information contained herein is
condition and discussions of strategy.
correct as at any time subsequent to its date.
By their nature, forward-looking statements involve known
No statement in this document is intended as a profit forecast
and unknown risks and uncertainties, many of which are
or a profit estimate and past performance cannot be relied on
beyond Glencore’s control. Forward looking statements are not
as a guide to future performance. This document does not
guarantees of future performance and may and often do differ
constitute or form part of any offer or invitation to sell or issue,
materially from actual results. Important factors that could
or any solicitation of any offer to purchase or subscribe for any
cause these uncertainties include, but are not limited to, those
securities.
disclosed in the Risk Management section of this report.
The companies in which Glencore plc directly and indirectly
For example, our future revenues from our assets, projects or
has an interest are separate and distinct legal entities. In this
mines will be based, in part, on the market price of the
document, “Glencore”, “Glencore group” and “Group” are used
commodity products produced, which may vary significantly
for convenience only where references are made to Glencore
from current levels. These may materially affect the timing and
plc and its subsidiaries in general. These collective expressions
feasibility of particular developments. Other factors include
are used for ease of reference only and do not imply any other
(without limitation) the ability to produce and transport
relationship between the companies. Likewise, the words “we”,
products profitably, demand for our products, changes to the
“us” and “our” are also used to refer collectively to members of
assumptions regarding the recoverable value of our tangible
the Group or to those who work for them. These expressions
and intangible assets, the effect of foreign currency exchange
are also used where no useful purpose is served by identifying
rates on market prices and operating costs, and actions by
the particular company or companies.
governmental authorities, such as changes in taxation or
regulation, and political uncertainty.

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Annual Report

the commodities that

advance everyday life

Our business at a glance

Where we operate Integrating sustainability Our Financial

Head Ofﬁce Industrial assets Marketing ofﬁce/other

CO2e Scope 1 and 2 Adjusted EBITDA◊ (US$ billion)

CO2e Scope 3 Net income/(loss) attributable to

Targeted reductions Cash generated by operating

35 c135,000 >40 50%

continents countries employees and contractors offices

Glencore Annual Report 2021 02

Our business at a glance continued

Lost time injury frequency rate

Adjusted EBITDA◊ Industrial 2021

Total recordable injury frequency rate

Adjusted EBITDA◊ Marketing 2021 $21.3bn

● Metal 61% 2020 37.5

$4.2bn Net debt◊

Glencore Annual Report 2021 03

Progress and ways. For example, Phelps Dodge was then

Performance trading company with no industrial assets.

Today Glencore is one of the industry

Glencore Annual Report 2021 04

and change and the communities that host our

Glencore Annual Report 2021 05

Chief Executive Officer’s review

Glencore Annual Report 2021 06

Chief Executive Officer’s review

We believe in empowering our

We foster an environment where

Read more page 34

Glencore Annual Report 2021 07

• Our business model covers the

Glencore Annual Report 2021 08

Our market drivers

Key market drivers Emerging drivers

Net zero emissions Future commodity Demand for Substitution

• Momentum to decarbonise the global

Glencore Annual Report 2021 09

Our market drivers continued

Key market drivers Emerging drivers

Net zero emissions Future commodity Demand for the Substitution

• This transition is likely to increase the cost

• We recognise our responsibility to

Our business Outputs and impact

Glencore Annual Report 2021 11

Our strategy for

Aligned with our purpose, our portfolio

Glencore Annual Report 2021 12

Our strategy for a sustainable future continued

Climate change Priorities going forward

Glencore Annual Report 2021 13

Our strategy for a sustainable future continued

Bonds Priorities going forward

portfolio commodities with c.80% of our expansionary

management including the INO life extension projects

Committed available liquidity

Our strategy for a sustainable future continued

Performance in 2021 Priorities going forward

• ive-year supply of Century Aluminum’s