Glencore publishes Payments to Governmt. Rep. 2021Source: RNS
30 June 2022
Glencore publishes Payments to Governments Report 2021
Today, Glencore published its 2021 Payments to Governments Report on its website. The report aligns with the reporting requirements of Chapter 10 of the EU Accounting Directive.
Through our activities as one of the world's largest resource companies we are present at multiple stages of the commodity supply chain. We are supporting the governments of our host countries in realising value from their natural resources, in line with our purpose, to responsibly source the commodities that advance everyday life.
Our commitment to fiscal transparency
We are strongly supportive of fiscal transparency, recognising the role it plays in encouraging the responsible management of revenues from extractive activities.
· We recognise the importance of company ownership information being publicly available. We provide beneficial ownership information on our operating joint ventures across our industrial business.
· In September 2021, along with four other mining companies, we became a signatory to a statement by companies on beneficial ownership transparency.
· We have also publicly disclosed on our website, for the first time, details of our active marketing sales/purchase agents
· Since 2019, we have publicly stated our commitment towards supporting and encouraging the disclosure of mining and exploration contracts with host governments. We believe this type of contract transparency can support building trust and ensuring accountability in the sector.
· We welcome the EITI Standard's approach for contract transparency for EITI-compliant countries. Similarly, as a member of the International Council of Mining and Metals (ICMM), we support its Transparency of Mineral Revenues Position Statement, which includes a commitment to contract transparency.
· With increasing stakeholder interest in material loans repayable with product (also referred to as 'resource backed loans') we have disclosed relevant information on our resource backed loans, to the extent that the information is not commercially sensitive or confidential.
Our 2021 payments
During 2021, our total payments to governments were more than US$7.6 billion. Approximately $4bn are reported pursuant to the EU Accounting Directive extractive industries' reporting requirements. The difference arises from payments related to refining, processing, marketing and trading, as these are not in the scope of the EU Accounting Directive. This marks a significant increase on the US$5.8 billion and US$2.1 billion under the EU reporting requirements paid in 2020, reflecting the global economy's recovery from the impact of Covid-19.
Our global effective tax rate, adjusted for significant items (primarily impairments, foreign exchanges adjustments and tax losses not recognised), was 33.5% (29.7% in 2020 and 30.5% in 2019).
Our contribution to host countries goes beyond the taxes and royalties we pay. During 2021, we paid US$6 billion in wages and benefits for the 135,000 people working for Glencore (including contractors) and US$68 million on initiatives that benefit the communities living around our operations.
We are committed to operating ethically and responsibly in all aspects of our business and determined to foster a culture of integrity, inclusivity and transparency. This commitment includes implementing high standards of corporate governance and transparency.
For further information please contact:
t: +41 41 709 28 80
m: +41 79 737 56 42
t: +41 41 709 24 62
m: +41 79 904 33 20
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that enable decarbonisation while meeting the energy needs of today.
Glencore companies employ around 135,000 people, including contractors. With a strong footprint in over 35 countries in both established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of more than 40 offices.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.
Glencore recognises our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is to be a net zero total emissions company by 2050. In August 2021, we increased our medium-term emission reduction target to a 50% reduction by 2035 on 2019 levels and introduced a new short-term target of a 15% reduction by 2026 on 2019 levels.
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, "Glencore", "Glencore group" and "Group" are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between the companies. Likewise, the words "we", "us" and "our" are also used to refer collectively to members of the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.