Glencore plc has published its second Climate Action Transition Plan (CATP) for 2024-2026, outlining its approach to emissions reduction and its role in supporting the global transition to a low carbon economy. The plan includes a new interim target of a 25% reduction in CO2e emissions for its industrial assets by the end of 2030, in addition to existing targets of 15% reduction by 2026 and 50% reduction by 2035. The company aims to achieve net zero industrial CO2e emissions by 2050, subject to a supportive policy environment.
The CATP focuses on managing the operational footprint, responsibly reducing Scope 3 industrial emissions, advancing transition-enabling commodities, and driving new business models. Glencore is committed to identifying and delivering cost-effective emissions reduction opportunities, responsibly phasing down its thermal coal operations, and investing in transition-enabling commodities to meet the growing demand for clean energy and low-carbon technologies.
In line with its commitment to reducing thermal coal production, Glencore has agreed to acquire a 77% interest in Teck Resources Ltd's steelmaking coal business, Elk Valley Resources (EVR). This acquisition, subject to regulatory approvals, is expected to close by Q3 2024. Steelmaking coal is considered an essential input for the world's steelmaking and is crucial for constructing transportation and infrastructure.
Gary Nagle, Chief Executive Officer of Glencore, emphasized the importance of stakeholder engagement and the company's commitment to continuous dialogue in developing the CATP. He highlighted the need for global coordination and well-designed policies consistent with a just and orderly transition, acknowledging the influence of external economic and political factors on the pace and pathway of decarbonization.
The release of the CATP demonstrates Glencore's dedication to addressing climate-related risks and opportunities while contributing to the global effort to achieve a sustainable, low carbon future.